SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

9

Financial and accounting information 2017 Consolidated financial statements

Other intangible assets 5.2. Other intangible assets primarily include patents, brands, software and development costs. They are measured at historical cost less accumulated amortization and impairment. Acquired retail brands and certain manufacturing brands are treated as intangible assets with indefinite useful lives as they have a strong national and/or international reputation. These brands are not amortized but are tested systematically for impairment on an annual basis. Other brands are amortized over their useful lives, not exceeding 40 years.

Costs incurred to develop software in-house – primarily configuration, programming and testing costs – are recognized as intangible assets. Patents and purchased computer software are amortized over their estimated useful lives, not exceeding 20 years for patents and three to five years for software. Research costs are expensed as incurred. Development costs meeting the recognition criteria under IAS 38 are included in intangible assets and amortized over their estimated useful lives (not exceeding five years) from the date when the products to which they relate are first marketed.

Changes in other intangible assets during 2017 and 2016 are analyzed below:

Non-amortizable brands

Development costs

Patents

Software

Other

Total

(inɸ€ millions)

At Januaryb1, 2016 Gross value

162

2,872 (587) 2,285

1,000 (806)

131 (97)

425

4,590

Accumulated amortization and impairment

(138)

(214)

(1,842)

NET VALUE

24

194

34

211

2,748

Changes during the year Acquisitions

5 0 1

0 0

91

17

38 (1)

151 (13)

Disposals

(12)

0 1

Translation adjustments

(140)

3

0

(135)

Amortization and impairment

(4)

0

(68)

(13)

(12)

(97)

Changes in Group structure and other

0 2

(1)

12 26

(3)

0

8

TOTAL CHANGES

(141)

2

25

(86)

At Decemberb31, 2016 Gross value

165

2,731 (587) 2,144

1,066 (846)

147

451

4,560

Accumulated amortization and impairment

(139)

(111)

(215)

(1,898)

NET VALUE

26

220

36

236

2,662

Changes during the year Acquisitions

0 0

0 0

97 (3) (9)

8 0

79 (1)

184

Disposals

(4)

Translation adjustments

(2) (4)

(55) (80)

(2)

(11) (11)

(79)

Amortization and impairment

(74)

(13)

(182)

Changes in Group structure and other

0

6

8

2

6

22

TOTAL CHANGES

(6)

(129)

19

(5)

62

(59)

At Decemberb31, 2017 Gross value

149

2,682 (667) 2,015

1,093 (854)

119 (88)

505

4,548

Accumulated amortization and impairment

(129)

(207)

(1,945)

NET VALUE

20

239

31

298

2,603

Impairment of non-amortizable brands in 2017 concerned Lapeyre.

The breakdown of non-amortizable brands by sector is provided in the segment information tables in Note 3 "Information concerning the Group’s operating activities".

244 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017