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2016 REGISTRATION DOCUMENT
HERMÈS INTERNATIONAL
231
PARENT COMPANY FINANCIAL STATEMENTS
6
NOTE TO THE FINANCIAL STATEMENTS
Moreover, two “umbrella” sureties have been granted to the HSBC and
BNP Paribas banks for a maximum amount of €75 million and €100 mil-
lion to give subsidiaries designatedbyHermès International access to an
aggregate group banking facility. The amounts drawn by the subsidiaries
are re-invoiced on the basis of a rate that aligns with the market banking
conditions.
As at 31 December 2016, the amounts drawn on these credit facilities
amounted to €11 million and €30 million, respectively.
Also,theamountofthesubsidiaries’tax lossesthatHermèsInternational
is liable for refunding to its subsidiaries under the Group tax consolida-
tion agreement amounted to €132.6 million as at 31 December 2016,
versus €109.4 million as at 31 December 2015.
NOTE 16
EMPLOYEES
The Company’s average number of employees is broken down as follows:
31/12/2016
31/12/2015
Executives and managers
355
339
Non-management staff
29
30
TOTAL
384
369
As part of the reformof professional training, the individual training entit-
lement has been replaced by the personal training account with effect
from 1 January 2015. Entitlements under the personal training account
are now attached to each employee and follow employees throughout
their working lives, irrespective of employer.
NOTE 17
POST-EMPLOYMENT BENEFIT OBLIGATIONS
As at 31 December 2016, the value of post-employment benefit obliga-
tions amounted to €92.0million versus €78.1million as at 31December
2015. Amounts due in respect of statutory retirement benefits and sup-
plemental pension plans have been paid over to an insurance company;
the value of the funds is €23.8 million. A provision of €15.4 million has
been accrued to cover the remainder of these obligations.
After applying the “corridor” method, actuarial gains and losses
amounted to €65.3 million as at 31 December 2016 compared with
€61.9 million as at 31 December 2015.
For FY 2016, the following actuarial assumptions were used:
s
retirement age:
62 to 65 years of age
s
increase in salaries:
3 to 4%
s
discounting rate:
1.0% to 1.2%
s
expected rate of return on plan assets
3.0%
NOTE 18
COMPENSATION OF CORPORATE OFFICERS
Gross aggregate compensation paid to Corporate Officers in respect of 2016 amounted to €4.2 million, including €0.4 million in directors’ fees.