TELEPERFORMANCE_Registration_document_2017

CONSOLIDATED FINANCIAL STATEMENTS

7

7.6 Notes to the consolidated financial statements

The Board of Directors’ meeting on Juneb23 rd , 2017bapproved free awards of 11,600 incentive plan shares to a company officer of a subsidiary, under the authorization given at the shareholders’ general meeting of Aprilb28 th , 2016. Vesting of these free share awards is conditional on the beneficiary remaining with the Group until at least the end of the vesting period and on meeting certain performance conditions. The related expense in respect of this plan amounted to €0.2bmillion in 2017. Following the resignation of Mr. Paulo César Salles Vasques from all of his appointments, with the exception of those of NOTE C.5 Short-term employee benefits Liabilities for short-term benefits are measured on an undiscounted basis and recognized when the corresponding service is rendered. A provision is recognized for the amount the Group expects to pay under short-term cash-settled profit-sharing and bonus NOTE C.6 Employee termination payments Termination payments are recognized as expenses when the Group is committed, with no realistic possibility of withdrawal, to a formal detailed plan to lay off employees before their normal retirement date.

non-executive Chairman and director of Teleperformance CRM SA, the Group’s Brazilian subsidiary, he has renounced his entitlement to 70,959 shares out of the total award of 175,000 shares granted to him under the long-term incentive plan set up at the Board meeting on Aprilb28 th , 2016. This has resulted in the immediate recognition of expense of €1.8bmillion relating to the residual vesting period of the renounced shares. Half of his remaining share awards, representing 52,021 shares, are subject to additional non-market performance conditions in respect of his assignments in Brazil.

schemes if the Group has a present legal or constructive obligation to make such payments as a result of past services by an employee and if the obligation can be reliably estimated.

Termination payments for voluntary redundancies are recognized if the Group has offered an incentive to encourage voluntary redundancies, if it is probable that such an offer will be accepted and if the number of individuals accepting the offer can be reliably estimated.

NOTE C.7 Employee benefits – Defined contribution plans

Obligations for contributions to defined contribution plans are recognized as an expense as incurred.

Such expenses totaled €12.2bmillion in 2017bcompared with an amount of €9.8bmillion in 2016.

NOTE C.8 Other long-term employee benefits

The only long-term employee benefits of the Group are the post-employment benefits that are described in notebI.3 Post-employment benefits: defined benefit plans.

NOTE C.9 Accounts payable – Trade and Other current liabilities

Accounts payableb– Trade and Other current liabilities are recognized initially at fair value, and subsequently at amortized cost.

12/31/2017

b

12/31/2016

Accounts payableb– Trade

141 162

126 158

Other payables Taxes payable

57

56

Accrued expenses

173

160

Other operating liabilities

33

68

TOTAL

566

568

Other operating liabilities at Decemberb31 st , 2017binclude the negative fair values of derivative financial instruments entered into for the purpose of hedging foreign currency exposures, for €5.7bmillion, compared with €23.9bmillion at the end of 2016.

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Teleperformance bb - bb Registration documentbb 2017