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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
198
CONSOLIDATED FINANCIAL STATEMENTS
5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Changes to actuarial assumptions and experience effects give rise to
actuarial gains and losseswhichareall recorded inequity over theperiod
during which they were recognised.
For the Group, the main defined-benefit plans apply mainly to:
s
retirement benefits in France, Italy, Turkey, Greece, India, Japan and
Taiwan: these are calculated based on employee length of service
and annual salary upon reaching retirement age. These obligations
are partially or entirely externalised depending on the country;
s
long-service awards in France: these are awards for long-standing
service or outstanding initiatives taken by employees or persons
treated as employees during their careers, or for skills enhancement.
The awards are issued with a bonus, under the terms of a collective
agreement, company-wide agreement or decision by the relevant
company or works council;
s
long-term bonuses in Japan, Asia-Pacific, Switzerland and England:
within certain foreign subsidiaries, seniority is rewarded by means of
bonuses on specific anniversary dates;
s
a supplementary plan for the directors in France or abroad
(Switzerland, Canada).
In millions of euros
< 1 year
> 1 year
2016
< 1 year
> 1 year
2015
Post-employment and similar benefit obligations
5.6
183.4
189.0
4.8
155.0
159.8
TOTAL
5.6
183.4
189.0
4.8
155.0
159.8
25.2
Actuarial assumptions
For 2016, the following actuarial assumptions were used for the countries to which the Hermès Group’s main commitments apply:
France
Italy
Switzerland
Japan
Taiwan
Rest of Asia **
Retirement age
62 to 65 years 62 to 69.6 years 63 to 64 years
60 years 60 to 66 years 50 to 65 years
Increase in salaries
3.0%
1.2%
2.0%
2.5% 3.5% - 5% 3.50% - 8.25%
Increase in social security ceiling
2.50%
n/a
n/a
n/a
n/a
n/a
Discounting rate
1.21% - 0.95% *
1.2%
0.4%
0.4%
1.02% 0.3% - 7.05%
n/a: not applicable.
* Rates according to the duration of the plans.
** Integration of India, Malaysia and Thailand compared with 2015.
2015 assumptions:
France
Italy
Switzerland
Japan
Taiwan
Rest of Asia
Retirement age
62 to 65 years 62 to 69.6 years 63 to 64 years
60 years 60 to 65 years 50 to 66 years
Increase in salaries
3.0%
2.0%
2.0%
2.5%
3.5% 4.75% - 7.0%
Increase in social security ceiling
2.75%
n/a
n/a
n/a
n/a
n/a
Discounting rate
1.9% - 1.49% *
1.9%
0.8%
0.9%
1.3% 0.4% - 3.0%
n/a: not applicable.
* Rates according to the duration of the plans.