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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
197
CONSOLIDATED FINANCIAL STATEMENTS
5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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-
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.
NOTE 24
EMPLOYEES
A geographical breakdown of the workforce is as follows:
31/12/2016
31/12/2015
France
7,881
7,461
Europe (excluding France)
1,351
1,308
Other geographical areas
3,602
3,475
TOTAL
12,834
12,244
A breakdown by category is as follows:
31/12/2016
31/12/2015
Production
5,917
5,591
Sales
4,865
4,636
Other (design, communication and administration)
2,052
2,017
TOTAL
12,834
12,244
Employee expenses in 2016 totalled €983.8 million, compared with €932.9 million in 2015.
NOTE 25
POST-EMPLOYMENT AND OTHER EMPLOYEE BENEFIT OBLIGATIONS
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.