Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

Property, plant and equipment 5.3

less accumulated depreciation and impairment. Land, buildings and equipment are carried at historical cost flow hedges of property, plant and equipment purchases. transfers from equity of any gains/losses on qualifying cash attributable to the acquisition, as well as the impact of Cost may also include incidental expenses directly will flow to the Group. They include mainly the costs of when it is probable that associated future economic benefits resources are included in property, plant and equipment Expenses incurred in exploring and evaluating mineral costs and all costs incurred in assessing the technical topographical or geological studies, drilling costs, sampling feasibility and commercial viability of extracting the mineral resource. the cost of the related asset if they are significant. acquisition of property, plant and equipment are included in Material borrowing costs incurred for the construction and are intended to be used until the end of their useful lives. residual value, as they chiefly consist of industrial assets that Property, plant and equipment are considered as having no

Property, plant and equipment other than land are straight-line basis over the following estimated useful lives, depreciated using the components approach on a

which are regularly reviewed:

Major factories and offices ‹

30-40 years

Other buildings ‹

15-25 years

5-16 years

Production machinery and equipment ‹

Vehicles ‹

3-5 years

4-16 years

computer equipment Furniture, fixtures, office and ‹

year compared with extraction capacity. lives, based on the quantity of gypsum extracted during the Gypsum quarries are depreciated over their estimated useful Provisions for site restoration are recognized as components periodically and may be discounted over the expected useful deterioration in site conditions. These provisions are reviewed determined conditions or in the event of a sudden obligation to restore a site in accordance with contractually of assets whenever the Group has a legal or constructive over the same useful life as that used for mines and quarries. lives of the assets concerned. The component is depreciated the income statement over the estimated useful lives of the equipment are recorded under “Other payables” and taken to Government grants for purchases of property, plant and relevant assets.

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016

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