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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
178
CONSOLIDATED FINANCIAL STATEMENTS
5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4
COST OF SALES
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.
NOTE 5
SELLING, MARKETING AND ADMINISTRATIVE EXPENSES
In millions of euros
2016
2015
Communication
(242.3)
(214.6)
Other selling, marketing and administrative expenses
(1,303.0)
(1,204.3)
TOTAL
(1,545.3)
(1,418.9)
NOTE 6
OTHER INCOME AND EXPENSES
In millions of euros
Notes
2016
2015
Amortisation
3
(168.1)
(147.3)
Net change in recurring provisions
(23.2)
(21.8)
Cost of defined-benefit plans
25
(16.6)
(16.8)
Sub-total
(39.8)
(38.6)
Impairment losses
(28.0)
(15.5)
Expenses linked to bonus share allocation plans and similar expenses
30
(60.6)
(36.4)
Other expenses (including impairment of goodwill)
(15.1)
(19.6)
Other products
33.1
18.5
Sub-total
(70.6)
(53.0)
TOTAL
(278.5)
(238.9)
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.
The other expenses include depreciation of goodwill (refer to Note 10).