Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

Other business income and expense 3.1.3 movements in provisions for claims and litigation and Other business income and expense mainly include reduction measures. discontinuation of operations and the costs of workforce impairment, restructuring costs incurred upon the disposal or environmental matters, disposal gains and losses, asset follows: Other business income and expense can be analyzed as

3.1.4

Business income

and income taxes. income of non-core business equity-accounted companies, financial income and expense, the Group’s share in net Business income includes all income and expenses other than Business income is detailed by type below:

2016

2015

(in € millions)

NET SALES

39,093 39,623

Personnel expenses:

2016

2015

(in € millions)

Salaries and payroll taxes

(7,819) (7,746)

Restructuring costs (a)

(144)

(179)

Share-based payments (a)

(30)

(21)

Provisions and expenses relating to claims and litigation (b)

(134)

(125)

Pensions and employee benefit obligations (a)

(197)

(180)

(34)

(40)

Other (c)

Depreciation and amortization

(1,180) (1,208)

NON-OPERATING INCOME AND EXPENSE

(312)

(344)

Share in net income of core business equity-accounted companies

31

43

Impairment of assets (d)

(200)

(929)

(27,080) (27,875)

Other (b)

(63)

(118)

Other business expense (e)

OPERATING INCOME

2,818 2,636

IMPAIRMENT OF ASSETS AND OTHER BUSINESS EXPENSE AND EQUIPMENT AND INTANGIBLE ASSETS GAINS ON DISPOSALS OF PROPERTY, PLANT AND IMPAIRMENT OF ASSETS OTHER BUSINESS INCOME AND EXPENSE

(263) (1,047)

Other business income

61

49

Other business expense

(575)

(1,391)

61

49

OTHER BUSINESS INCOME AND EXPENSE

(514) (1,342)

(202)

(998)

BUSINESS INCOME

2,304 1,294

OTHER BUSINESS INCOME AND EXPENSE

(514) (1,342)

employee benefit obligations”. benefit expense are detailed in Note 4 “Employees, personnel expenses and Share-based payments (IFRS 2 expense) and details of changes in employee (a) 2015). operating expenses, amounting to €440 million in 2016 (€435 million in This item also includes research and development costs recorded under costs, raw materials costs, and other production costs for the other sectors. and selling expenses for the Building Distribution Sector, and to transport The “Other” operating income line relates to cost of sales, supplier discounts (b)

€76 million (€106 million in 2015). Restructuring costs in 2016 mainly consist of retirement benefits totaling (a) concerned asbestos-related litigation. liabilities and provisions, contingent liabilities and litigation” chiefly litigation as detailed and explained in Note 7 “Other current and non-current In both 2016 and 2015, movements in provisions and expenses relating to (b) In 2016, the “Other” line as detailed and explained in Note 7 “Other current (c) mainly relates to environmental litigation costs. and non-current liabilities and provisions, contingent liabilities and litigation” combinations (€52 million in 2015). current assets and acquisition fees incurred in connection with business intangible assets (€720 million in 2015), and €11 million on financial assets, (€157 million in 2015), €176 million on property, plant and equipment and Impairment losses on assets in 2016 include €13 million on goodwill (d) losses on assets divested or scrapped. Other business expense in both 2016 and 2015 relates primarily to capital (e)

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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