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Consolidated Financial Statements as of December 31, 2015
Notes to the Consolidated Financial Statements
Number of employees, employee compensation and benefits
Note 10
Accounting policies
Group employees receive short-term benefits (such as paid vacation,
are classified as current liabilities (under "Other payables") and
paid sick leave and statutory profit-sharing bonuses), long-term recorded as an expense for the year in which the employees render the
benefits (such as long-service awards and seniority bonuses) and related services (Note
5.2.2). Postemployment benefits and other
post-employment benefits (such as length-of-service awards and long-term benefits are measured and recognized as described in
supplementary pension benefits). Post-employment benefits may be Note 10.1.
paid under defined contribution or defined benefit plans.
Two types of share-based payment plans have been set up for
All of these benefits are accounted for in accordance with IAS
19 – management and selected employees – stock option plans and stock
Employee Benefits
. Short-term benefits (
i.e.
,
benefits expected to be grant plans. These plans fall within the scope of IFRS
2 –
Share-based
settled wholly before twelve months after the end of the annual
Payment
and are accounted for as described in Note 10.2.
reporting period in which the employees render the related services)
Pension and other post-employment benefits
10.1
Accounting policies
Post-employment benefits are employee benefits that are payable The defined benefit obligation is calculated annually using the
after the completion of employment. The Group's post-employment
projected unit credit method, taking into account actuarial
benefit plans include both defined contribution plans and defined assumptions concerning future salary levels, retirement age, mortality,
benefit plans.
staff turnover and the discount rate.
Defined contribution plans
The discount rate corresponds to the interest rate observed at the
period-end for investment grade corporate bonds with a maturity close
Defined contribution plans are post-employment benefit plans under
to that of the defined benefit obligation. The calculations are
which the Group pays fixed contributions into a separate entity that is
performed by a qualified actuary.
responsible for the plan’s administrative and financial management as
well as for the payment of benefits, such that the Group has no The net liability recorded for defined benefit plans corresponds to the
obligation to pay further contributions if the plan assets are present value of the defined benefit obligation less the fair value of
insufficient. Examples include government-sponsored pension plan assets (if any). The cost recognized in the income statement
schemes, defined contribution supplementary pension plans and comprises:
defined contribution pension funds.
current service cost, past service cost and the gain or loss on plan
●
The contributions are recorded as an expense for the period in which
amendments or settlements (if any), recorded in operating expense;
they become due.
net interest on the net defined benefit liability, recorded in financial
●
expense.
Defined benefit and long-term benefit plans
Remeasurements of the net defined benefit liability (comprising
A liability is recognized for defined benefit obligations that are
actuarial gains and losses, the return on plan assets and any change in
determined by reference to the plan participants’ years of service with
the effect of the asset ceiling) are recognized immediately in "Other
the Group.
comprehensive income".
Description of the main defined
10.1.1
The award is measured as a multiple of the individual’s monthly salary
for the last twelve months before retirement, determined by reference
benefit plans
to his or her years of service.
The main defined benefit plans concern supplementary pension In 2009, the Group set up a supplementary pension plan. The main
benefits paid annually in some countries to retired employees of the terms of this defined benefit plan, which was amended in 2015, are as
Group, and length-of-service awards provided for in collective follows:
bargaining agreements that are paid to employees upon retirement.
eligibility: plan participants must have completed at least three
●
The plans, which are presented below, mainly concern France, Belgium
years’ service at the time of retirement and their annual
and Italy.
compensation must be greater than 18 times the annual ceiling for
French plans
Social Security contributions;
Group employees in France are entitled to a length-of-service award
benefits: 2.75% of the reference compensation per year of service,
●
when they retire, determined in accordance with the law and the
subject to the applicable performance conditions being met for each
applicable collective bargaining agreement.
year. No benefits are paid if a minimum number of years has not
been validated in connection with the performance conditions;
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2015 REGISTRATION DOCUMENT