Hermès - Registration Document 2016

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

COST OF SALES

NOTE 4

Cost of sales mainly comprises purchases, the cost of labour for production, the portion of depreciation that is allocated to the production cost, impairment of inventories, losses on inventories and variable selling expenses.

SELLING, MARKETING AND ADMINISTRATIVE EXPENSES

NOTE 5

2016

2015

In millions of euros

Communication

(242.3)

(214.6)

Other selling, marketing and administrative expenses

(1,303.0) (1,545.3)

(1,204.3) (1,418.9)

TOTAL

OTHER INCOME AND EXPENSES

NOTE 6

2016

2015

Notes

In millions of euros

Amortisation

3

(168.1)

(147.3) (21.8) (16.8) (38.6) (15.5) (36.4) (19.6)

Net change in recurring provisions Cost of defined-benefit plans

(23.2) (16.6) (39.8) (28.0) (60.6) (15.1)

25

Sub-total

Impairment losses

Expenses linked to bonus share allocation plans and similar expenses

30

Other expenses (including impairment of goodwill)

Other products

33.1

18.5

(53.0)

Sub-total

(70.6)

(238.9)

TOTAL

(278.5)

The other expenses include depreciation of goodwill (refer to Note 10).

Total depreciation and amortisation of tangible and intangible assets included in operating expenses (“Other income and expenses” and “Cost of sales”) amounted to €201.8 million in 2016, compared with €178.6 million in 2015.

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2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL