FINANCIAL AND ACCOUNTING INFORMATION 25. Operating leases 26. Related party transactions The following table details the Group’s obligations in Executive compensation relation to operating lease contracts, representing Expenses relating to compensation of the Executive the minimum payments under non-cancel lable Committee members of the Group are as follows: leases: FOR THE YEAR ENDED PAYMENTS DECEMBER 31, OUTSTANDING AS OF DECEMBER 31, (in millions of euros) 2017 2016 (in millions of euros) 2017 2016 Salaries and other short-term benefits 8.8 7.4 DUE WITHIN Post-employment benefits One year 201.8 212.4 (service costs) 0.3 0.3 Two years 155.8 169.4 Indemnities at termination Three years 123.4 128.1 of contract 2.1 6.9 Free shares and stock options (1) 1.8 1.5 Four years 94.8 96.6 Thereafter 185.2 170.0 (1)Hare-based payment expense is detailed in Note 18 Share based payments. Total 761.0 776.5 Salaries and other short-term benefits comprise the The total expense under operating lease contracts social security contributions and payroll taxes paid was €218.6 million for the year ended December 31, by the Group. 2017 (€214.5 million as of December 31, 2016). In the event of a breach of employment contract, the Group could have to compensate the Executive Committee members a total amount of €9.6 million. 5 27. Statutory Auditors fees The table below is provided in accordance with regulation n° 2016-09 of the French Accounting Standard Authority (ANC) and sets forth the fees paid to Statutory Auditors in connection with their engagement in the parent company and the French subsidiaries. Amounts are exclusive of VAT and out-of-pocket expense. PWC AUDIT KPMG AUDIT TOTAL (in millions of euros) 2017 2016 2017 2016 2017 2016 Audit services 1.0 1.2 0.9 0.9 1.9 2.1 Audit related services 0.2 0.2 0.1 – 0.3 0.2 TOTAL 1.2 1.4 1.0 0.9 2.2 2.3 Other related services include the fees related to The principal proceedings are set out below. mandatory services performed in accordance with French regulation, as wel l as comfort letters and Asbestos litigation CSR report. The Group is party to several proceedings relating to exposure to asbestos-containing materials in 28. Litigation & other contingencies the United States. The Group bel ieves that the risk of it being ordered to pay significant amounts 28.1 Litigation in connection with these proceedings is l imited, Rexel Group is subject to legal, administrative and and that these lawsuits wil l not therefore have, regulatory proceedings in the normal course of its individually or as a whole, a material adverse effect business. A provision is recognized in the balance on its financial condition or results of operations, sheet when it is probable that an outflow of economic since the claims may be rejected or settled benefits from Rexel or one of its subsidiaries wil l for amounts partial ly or ful ly covered by Rexel’s be required to settle the obligation and when the insurance policies. Considering the wide range of amount can be estimated reliably. these claims, the different stages in the proceedings, REXEL 2017 – REGISTRATION DOCUMENT 265