Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

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

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

Acquired retail brands and certain manufacturing brands are years for software.

Changes in other intangible assets during 2016 and 2015 are analyzed below:

brands Non-amortizable

costs Development

Patents

Software

Other

Total

(in € millions)

At January 1, 2015 Gross value

149

2,821

969

121

365

4,425

Accumulated amortization and impairment

(125)

(146)

(795)

(81)

(193)

(1,340)

NET

24

2,675

174

40

172

3,085

Movements during the year Acquisitions

0

0

89

8

32

129

Disposals

0

0

(1)

0

(4)

(5)

Translation adjustments

2

70

0

1

4

77

Amortization and impairment

(4)

(451)

(65)

(12)

(16)

(548)

Changes in Packaging Sector

0

0

1

0

0

1

Changes in Group structure and other

2

(9)

(4)

(3)

23

9

TOTAL MOVEMENTS

0

(390)

20

(6)

39

(337)

At December 31, 2015 Gross value

162

2,872

1,000

131

425

4,590

Accumulated amortization and impairment

(138)

(587)

(806)

(97)

(214)

(1,842)

NET

24

2,285

194

34

211

2,748

Movements during the year Acquisitions

5

0

91

17

38

151

Disposals

0

0

(12)

0

(1)

(13)

Translation adjustments

1

(140)

3

1

0

(135)

Amortization and impairment

(4)

0

(68)

(13)

(12)

(97)

Changes in Group structure and other

0

(1)

12

(3)

0

8

TOTAL MOVEMENTS

2

(141)

26

2

25

(86)

At December 31, 2016 Gross value

165

2,731

1,066

147

451

4,560

Accumulated amortization and impairment

(139)

(587)

(846)

(111)

(215)

(1,898)

NET

26

2,144

220

36

236

2,662

housing market. against the Lapeyre brand due to difficulties in the French Impairment of non-amortizable brands in 2015 was charged The breakdown of non-amortizable brands by sector is “Information concerning the Group’s operating activities”. provided in the segment information tables in Note 3

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016