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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
222
PARENT COMPANY FINANCIAL STATEMENTS
6
NOTE TO THE FINANCIAL STATEMENTS
NOTE 5
INCOME TAX
5.1
Breakdown of income tax
In millions of euros
2016
2015
Net income before tax
1,097.0
871.0
Net income before tax and employee profit-sharing
1,100.9
874.9
Employee profit-sharing
(3.9)
(3.9)
Income tax
(5.8)
(28.3)
Tax (parent company only)
(28.5)
(55.6)
s
o/w tax on net extraordinary income
(5.9)
(0.1)
s
o/w tax on other items
(22.6)
(55.5)
Tax arising from tax consolidation
22.8
27.3
NET INCOME
1,091.2
842.8
Hermès International recognised a tax expense of €5.8 million in 2016,
compared with €28.3 million in 2015. In addition, Hermès International
is jointly liable for payment of the tax of the fiscally consolidated group,
which amounted to €211.6 million in 2016 compared with €221.1 mil-
lion in 2015.
The income tax expense takes into account the additional tax contribu-
tions of 3.30% and the tax on dividends. The additional contribution of
10.7% was abolished at the end of 2015.
Hermès International’s income tax expense only includes applicable
exemptions under the terms of the parent-subsidiary regime for income
from investments in subsidiaries. The income tax credit takes into
account the effect of the Group tax consolidation arising from tax losses
for certain subsidiaries and from the capital gains on disposals of pro-
perty, plant and equipment and non-current financial assets, where
relevant.
5.2
Increases or decreases in future tax liability
As at 31 December 2016, the future tax receivable was equal to
€14.5 million, versus €11.4 million as at 31 December 2015. This
mainly consists of temporarily non-deductible expenses. The increases
or decreases of the future tax liability were calculated taking into account
additional contributions of 3.30%.
NOTE 6
INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT
In millions of euros
Gross
value as at
31/12/2015
Increases
Decreases
Others
Gross
value as at
31/12/2016
Amortisation
Net value as at
31/12/2016
Intangible assets
25.8
6.3
-
-
32.1
(26.5)
5.5
Concessions, patents and brands
-
-
-
-
Others
25.8
6.3
32.1
(26.5)
5.5
Property, plant and equipment
39.4
3.8
(0.1)
-
43.0
(24.3)
18.7
Land
0.2
-
(0.0)
0.2
-
0.2
Buildings
0.5
(0.1)
0.4
(0.4)
-
Other assets
38.7
3.8
42.5
(23.9)
18.5
INTANGIBLE ASSETS AND PROPERTY,
PLANT AND EQUIPMENT
65.2
10.1
(0.1)
-
75.1
(50.9)
24.2