RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

NOTE 4. Notes to the balance sheet

4.1 PROPERTY, PLANT AND EQUIPMENT

ACCOUNTING POLICIES The gross amount of property, plant and equipment corresponds to its acquisition cost. Maintenance and repair costs are recorded as expenses as soon as they are incurred, except for those, posted as fixed assets, incurred to extend the useful life of the property. Fixed assets financed through finance leases are presented as assets at the discounted value of future payments or at the market value, if lower. The corresponding liability is recorded as borrowings. These fixed assets are depreciated according to the method and useful lives described below. Depreciation is calculated according to the straight-line method for the estimated useful life of the various categories of fixed assets, as follows:

Duration

Buildings

10 to 40 years 10 to 20 years 5 to 30 years

Technical facilities Equipment and tools

Transportation equipment

4 to 5 years

Facilities and fixtures

10 years

Office equipment and furniture

5 to 10 years

Borrowing costs are included in fixed asset costs when significant. Property acquired under finance leases is capitalized when, according to the terms of the lease, substantially all the risks and benefits inherent in owning the property are transferred to the Group. The criteria used to assess these contracts are primarily based on:

• the ratio between the term of the asset lease and the assets’ lifetime; • total future payments versus the fair value of the financed asset; • whether ownership is transferred at the end of the lease; • whether there is a preferential purchase option; • the specific nature of the leased asset.

Assets held under finance leases are depreciated over their useful lives or over the term of the corresponding lease, if shorter. Tangible fixed assets are given an impairment test whenever events or changes in circumstances indicate that their book values may not be recoverable.

Foreign exchange differences

Gross value (in thousands of euros)

Changes in consolidation

12/31/2016

Increases

Decreases Reclassifications

12/31/2017

Other property, plant and equipment Prepayments and down payments on property, plant and equipment

237,493

9,726

18,057

(7,403)

9,672

(6,004)

261,541

252

215

706

(189)

(30)

(71)

883

Assets in progress

166,648

10,379 299,069 143,694 463,083

70,817 64,526 38,390 192,496

(3,121) (35,518) (5,746) (51,977)

(118,535)

(3,888) (84,218) (23,005)

122,300

Machinery and equipment and tools

1,745,301

76,889 32,473

2,066,049

Land and buildings

612,535

798,341

2017 Registration Document I RUBIS

TOTAL

2,762,229

469 (117,186)

3,249,114

Foreign exchange differences

Depreciation (in thousands of euros)

Change in consolidation

12/31/2016

Increases

Decreases Reclassifications

12/31/2017

Other property, plant and equipment

(119,601)

(7,037)

(13,702) (90,210) (19,156) (123,068)

7,048

(4,939)

3,753 (134,478) 43,755 (1,289,068) 5,760 (350,185) 53,268 (1,773,731)

Facilities and equipment

(1,151,664) (298,624) (1,569,889) 1,192,340

(130,836) (39,777) (177,650) 285,433

32,472

7,415

Land and buildings

5,153

(3,541) (1,065)

TOTAL

44,673 (7,304)

NET VALUE

69,428

(596)

(63,918)

1,475,383

195