Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

Changes in working capital requirement 3.5.3 Changes in working capital requirement can be analyzed as follows:

Future payment commitments under finance leases are as follows:

Dec. 31, 2016 Dec. 31, 2015

(in € millions)

Future minimum lease payments Due within 1 year

Dec. 31, 2016 Dec. 31, 2015

(in € millions)

17

17

INVENTORIES, NET

5,875

5,715

Due in 1 to 5 years

40

44

TRADE ACCOUNTS RECEIVABLE, NET

4,935

4,751

Due beyond 5 years

12

8

Other operating receivables

1,176

1,079

TOTAL FUTURE MINIMUM LEASE PAYMENTS

Other non-operating receivables

339

326

69

69

OTHER RECEIVABLES

1,515

1,405

Less finance charge

(10)

(7)

CURRENT TAX RECEIVABLES

445

296

LEASE PAYMENTS PRESENT VALUE OF FUTURE MINIMUM

59

62

TRADE ACCOUNTS PAYABLE

5,805

5,716

Other operating payables

3,171

2,994

commitments represented €56 million under equipment and machinery leases and €13 million under land and buildings leases. At December 31, 2016, future finance lease payment Obligations under operating leases 3.6.2 manufacturing and warehouse space under various non-cancelable operating leases. Lease terms generally range from one to nine years. The liability for total future minimum payments over the lease terms is discounted. The leases The Group leases equipment, vehicles and office, contain rollover options for varying periods of time and some include clauses covering the payment of real estate taxes and insurance. In most cases, management expects that these leases will be rolled over or replaced by other leases in the normal course of business. In 2016, rental expenses amounted to €844 million, including €563 million for land and buildings, and revenue from subleases represented €17 million. Net rental expense was €827 million.

Other non-operating payables

465

454

OTHER PAYABLES

3,636

3,448

CURRENT TAX LIABILITIES

148

150

Operating working capital requirements

3,010

2,835

Non-operating working capital requirements (including current tax receivables and liabilities)

171

18

WORKING CAPITAL REQUIREMENTS

3,181

2,853

Off-balance sheet commitments 3.6 related to operating activities Obligations under finance leases 3.6.1 Non-current assets acquired under finance leases are recognized as an asset and a liability in the balance sheet (see Note 5.4 for further information).

Payments due under non-cancelable operating leases are as follows:

Total 2016

Payments due by period

Total 2015

Due within 1 year Due in 1 to 5 years Due beyond 5 years

(in € millions)

Rental expense

3,185

714

1,534

937

3,215

Subletting revenue

(76)

(16)

(30)

(30)

(77)

TOTAL

3,109

698

1,504

907

3,138

Non-cancelable purchase commitments 3.6.3

firm orders for property, plant and equipment and intangible assets. Non-cancelable purchase commitments include contractual commitments to purchase raw materials and services along with

Total 2016

Payments due by period

Total 2015

Due within 1 year Due in 1 to 5 years Due beyond 5 years

(in € millions)

Property, plant and equipment and intangible assets

9

49

47

2

0

46

Commodities and energy

1,080

338

545

197

1,321

Services

184

82

82

20

262

TOTAL

1,313

467

629

217

1,629

221

SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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