TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

EMPLOYEE BENEFIT NOTE 9. [G4-EC1] [GA-EC3]-[G4-LA2] GRI Information on employees 9.1. The total headcount of the Group consolidated entities as of December 31, 2017 is 16,307 employees (17,017 as of December 31, 2016). Please refer to Chapter 5.1 of the Registration Document for more detail on employees of the Group. The employee benefits expenses (including only employees in the consolidated entities) are detailed below:

2017

2016

(in million euros)

Wages and salaries Social security costs

778 121

878 125

Compensation expenses linked to share-base payments granted to Directors and employees (note 9.3.3)

10

8

Pension costs - defined benefit plans (note 9.2.2)

9

9

Termination benefits

34

48

TOTAL EMPLOYEE BENEFITS EXPENSES (EXCLUDING DEFINED CONTRIBUTION PLANS)

952

1,068

Pension costs - defined contribution plans

21

21

The termination benefits are presented in restructuring expenses within continuing operations in the consolidated statement of operations.

Post-employment & long-term benefits 9.2. POST-EMPLOYMENT OBLIGATIONS

The Group operates various post-employment schemes for some employees. Contributions paid and related to defined contribution plans, i.e. pension plans under which the Group pays fixed contributions and has no legal or constructive obligation to pay further contributions (for example if the fund does not hold sufficient assets to pay to all employees the benefits related to employee service in the current and prior periods), are recorded as expenses when employees have rendered services entitling them to the contributions. The other pension plans are analyzed as defined benefit plans (i.e. pension plans that define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation) and are recognized in the balance sheet based on an actuarial valuation of the defined benefit obligations being carried out at the end of each annual reporting period. The method used for determining employee benefits obligations is based on the Projected Unit Credit Method. The present value of the Group benefit obligations is determined by attributing the benefits to employee services in accordance with the benefit formula of each plan. The provisions for these benefits are determined annually by independent qualified actuaries based on demographic and financial assumptions such as mortality, employee turnover, future salaries, benefit levels and discount rates. Remeasurement, comprising actuarial gains and losses, the effect of changes in asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the statement of financial position with a charge or credit recognized in OCI. Remeasurement recognized in OCI is reflected immediately in retained earnings and will not be classified in profit or loss. Defined benefit costs are classified as follows: service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements) to be recognized in ■ profit or loss; net interest expense or income, to be recognized as financial expense and financial income (note 8.4). ■

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TECHNICOLOR

REGISTRATION DOCUMENT 2017