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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
199
CONSOLIDATED FINANCIAL STATEMENTS
5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The discount rates applied are obtained by reference to the yield on
investment grade (AA) corporate bonds with the same maturity as that
of the obligation. In accordance with IAS 19 revised, rates of return on
assets are determined by reference to discount rates on the obligations.
A 0.50 point increase or decrease in the discount rate would lead to a
€16.1 million decrease or a €18.0 million increase in Hermès Group’s
pension provision respectively, with the balancing entry recognised in
equity.
More specifically, for pension plans in Switzerland, a 0.50 point increase
or decrease in the applied interest rate would lead to a €1.2 million
increase or a €1.2 million decrease in the pension provision, with the
balancing entry recognised in equity.
As at 31 December 2016, contributions paid for the coming year
(including contributions paid to a fund and benefits paid directly by the
employer) totalled €5.6 million, compared with €4.8 million in 2015.
25.3
Change in provisions recognised in the statement of financial position
In millions of euros
Defined-benefit
pension plans
Other defined-
benefit plans
2016
Defined-benefit
pension plans
Other defined-
benefit plans
2015
Provisions as at 1 January
149.0
10.8
159.8
120.7
8.2
128.9
Foreign currency adjustments
2.1
0.1
2.2
4.3
0.2
4.5
Cost according to statement of profit or loss
16.2
2.9
19.1
14.5
2.8
17.3
Benefits/contributions paid
(4.1)
(0.7)
(4.8)
(4.5)
(0.6)
(5.1)
Actuarial gains and losses
14.4
-
14.4
12.7
-
12.7
Change in scope
0.2
0.0
0.2
1.1
0.0
1.1
Others
(1.8)
(0.1)
(1.9)
0.2
0.2
0.4
Provisions as at 31 December
176.0
13.0
189.0
149.0
10.8
159.8
25.3.1 Reconciliation of the value of post-employment and other employee benefit obligations
In millions of euros
Defined-benefit
pension plans
Other defined-
benefit plans
2016
Defined-benefit
pension plans
Other defined-
benefit plans
2015
Present value of obligations at 1 January
219.9
10.8
230.7
186.0
8.2
194.2
Foreign currency adjustments
2.5
0.1
2.6
8.0
0.2
8.2
Service cost
14.5
1.2
15.7
13.2
0.9
14.2
Interest cost
2.9
0.2
3.1
2.9
0.1
3.1
Benefits paid
(3.9)
(0.7)
(4.6)
(6.2)
(0.6)
(6.9)
Employee contributions
1.7
-
1.7
1.7
-
1.7
Experience gains and losses
2.0
0.2
2.2
7.4
0.7
8.1
Actuarial gains and losses from demographic assumptions
(2.6)
0.0
(2.6)
0.6
0.1
0.8
Actuarial gains and losses from financial assumptions
15.6
0.4
16.0
5.8
(0.2)
5.5
Plan changes
(0.5)
0.8
0.3
(0.8)
1.2
0.4
Change in scope
0.2
0.0
0.2
1.1
-
1.1
Others
(1.8)
-
(1.8)
0.2
0.2
0.4
Present value of obligations as at 31 December
250.3
13.0
263.3
219.9
10.8
230.7