Company: MT
Filing Date: 2025-03-10
Form Type: 20-F
Source: 0001243429-25-000017
Chunk: 460

Company: ArcelorMittal
Filing Date: 2025-03-10
Form: 20-F
Chunk 460
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 Short-term provisions                      |                      1,101 |     |            |     |                     |     |                                               |     |                        588 |
| Long-term provisions                       |                      1,306 |     |            |     |                     |     |                                               |     |                      1,477 |
|                                            |                      2,407 |     |            |     |                     |     |                                               |     |                      2,065 |

1. Additions exclude provisions reversed or utilized during the same year.

290

| Consolidated financial statements                          |
| (millions of U.S. dollar, except share and per share data) |

There are uncertainties regarding the timing and amount of the provisions above. Changes in underlying facts and circumstances for each provision could result in differences in the amounts provided for and the actual outflows. In general, provisions are presented on a non-discounted basis due to the uncertainties regarding the timing or the short period of their expected consumption. Environmental provisions have been estimated based on internal and third-party estimates of contamination, available remediation technology, and environmental regulations. Estimates are subject to revision as further information develops or circumstances change. Provisions for emission obligations are recognized to cover the shortage between the Company's CO 2 emissions and the allowances granted, based on the market value of the CO 2 allowances as of the reporting date or purchase price of the acquired CO 2 emission rights. In 2024, provisions for emission obligations increased due to higher production in Europe as compared to 2023, which was impacted by outages of blast furnaces . The Company uses derivative financial instruments and spot purchases to manage its exposure to fluctuations in prices of emission rights allowances. See note 6.3 for the details of the cash flow hedging in place for emission rights, note 4.5 for CO 2 emission rights held as current assets and note 5.1 for CO 2 emission rights held as Intangible non-current assets. The Company also receives indirect compensation through rebates on its energy tariffs. Provisions for site restoration are related to costs in connection w ith the dismantling of site facilities, mainly in France, of which 61 a nd 66 at December 31, 2024 and 2023, respectively, with respect to the dismantling of the Florange liquid phase. Provisions for staff related obligations primarily concern Brazil and are related to various employees’ compensation. Provisions for voluntary separation plans primarily relate to plans in South Africa, Spain, France and Belgium, which are