Hermès - Registration Document 2016

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

visions, the amount of which is revised in line with recommendations received from our advisors, in accordance with the criteria laid down in IAS 37 and IAS 12. As of 31 December 2016, the Group considers that it is not exposed to risks liable, on an individual basis, to have a significant effect on its financial position and profitability.

The provisions correspond to the estimated consequences to assets of actual or probable risks, litigation and disputes on the Group’s activities. Current provisions relate notably to provisions for items returned in the normal course of business. Moreover, the Group’s entities in France and internationally may be involved in disputes with tax, social security or customs authorities. Such disputes are the subject of appropriate pro-

EMPLOYEES

NOTE 24

A geographical breakdown of the workforce is as follows:

31/12/2016

31/12/2015

France

7,881 1,351 3,602

7,461 1,308 3,475

Europe (excluding France) Other geographical areas

TOTAL

12,834

12,244

A breakdown by category is as follows:

31/12/2016

31/12/2015

Production

5,917 4,865 2,052

5,591 4,636 2,017

Sales

Other (design, communication and administration)

5

TOTAL

12,834

12,244

Employee expenses in 2016 totalled €983.8 million, compared with €932.9 million in 2015.

POST-EMPLOYMENT AND OTHER EMPLOYEE BENEFIT OBLIGATIONS

NOTE 25

25.1 Description of plans HermèsGroup employees are eligible for short-termbenefits (paid leave, sick leave, profit-sharing), long-term benefits (long-service awards) and post-employment benefits under defined contribution/defined benefit plans (mainly retirement benefits, and supplemental pension plans). Post-employment benefits are awarded either through defined contribu- tion plans or through defined-benefit plans. 25.1.1 Defined contribution plans Under these plans, regular payments aremade to outside organisations, which are responsible for their administrative and financial manage- ment. These plans release the employer fromany subsequent obligation,

as the outside organisation takes responsibility for paying amounts due to employees (basic social security old-age plan, ARRCO/AGIRC supple- mental pension plans, defined contribution pension funds). 25.1.2 Defined benefit plans Under these plans, the employer assumes an obligation vis-à-vis its employees. If these plans are not entirely funded in advance, a provision is recorded. Post-employment and similar benefit obligations (Defined Benefit Obligations or DBOs) are measured using the projected credit unit method, based on actuarial assumptions that take into consideration specific conditions, primarily macroeconomic conditions, in the different countries in which the Group operates.

2016 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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