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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
181
CONSOLIDATED FINANCIAL STATEMENTS
5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9
NET EARNINGS PER SHARE
In accordance with the definitions set out in Note 1.20, the calculation and reconciliation of basic earnings per share and diluted earnings per share
is as follows:
2016
2015
Numerator
in millions of euros
Basic net income
1,100.3
972.6
Adjustments
-
-
Diluted net income
1,100.3
972.6
Denominator
in number of shares
Weighted average number of ordinary shares
104,518,900 104,395,884
Basic earnings per share
10.53
9.32
Weighted average number of shares resulting from options
Weighted average number of shares resulting from bonus shares
600,449
692,884
Weighted average number of diluted ordinary shares
105, 119,349 105,088,768
Diluted earnings per share
10.47
9.26
Annual average price per share
€345.52
€325.14
NOTE 10
GOODWILL
10.1
Change in the year
In millions of euros
31/12/2015
Increases
Decreases
Exchange rate
impact
Others
31/12/2016
Goodwill
143.9
-
-
2.2
-
146.1
TOTAL GROSS VALUES
143.9
-
-
2.2
-
146.1
Amortisation recognised before 1 January 2004
31.6
-
1.3
32.9
Impairment losses
74.4
-
(0.1)
2.3
76.5
TOTAL AMORTISATION AND IMPAIRMENT
106.0
-
-
1.3
2.3
109.5
TOTAL NET VALUES
37.9
-
-
0.9
(2.3)
36.6
As at 31 December 2016, the net value of goodwill was equal to €36.6million, primarily relating to the CGUs of the distribution entities (€27.3million)
and the Group’s production CGUs (€9.3 million).
There was no material change in the net value of goodwill during the year.
10.2
Impairment tests
CGUs of the distribution entities
Within this CGU, themain goodwill is that of Hermès Japon, which stands
at €16.1 million.
The pre-tax discount rate applied to projected cash flows for Japan is
9.6%; for other countries, it varies from9.3% to 38.5%. The annual asset
impairment test of this asset as well as those of the other non-significant
goodwill of this CGU do not bring to light any probable scenario according
to which the CGU’s recoverable amount becomes lower than the net
carrying amount.
Other CGUs
Individually, the above goodwill figures are not significant and do not
bring to light any reasonably possible impairment scenario.