Saint Gobain - Registration document 2016

9 FINANCIAL AND ACCOUNTING INFORMATION 1. 2016 Consolidated Financial Statements

Changes in property, plant and equipment in 2016 and 2015 are analyzed below:

equipment Machinery and

construction Assets under

Land and quarries

Buildings

Total

(in € millions)

At January 1, 2015 Gross value

2,476

8,806

21,413

1,114

33,809

Accumulated depreciation and impairment

(490)

(5,050)

(15,561)

(51)

(21,152)

NET

1,986

3,756

5,852

1,063

12,657

Movements during the year Acquisitions

27

69

273

977

1,346

Disposals

(21)

(26)

(17)

(14)

(78)

Translation adjustments

32

24

(1)

4

59

Depreciation and impairment

(42)

(316)

(1,021)

(1)

(1,380)

Transfers

261

649

(910)

0

Changes in Packaging Sector

(1)

(4)

56

(29)

22

Changes in Group structure and other

(21)

(175)

(762)

(81)

(1,039)

TOTAL MOVEMENTS

(26)

(167)

(823)

(54)

(1,070)

At December 31, 2015 Gross value

2,493

8,500

19,549

1,064

31,606

Accumulated depreciation and impairment

(533)

(4,911)

(14,520)

(55)

(20,019)

NET

1,960

3,589

5,029

1,009

11,587

Movements during the year Acquisitions

50

63

329

928

1,370

Disposals

(41)

(18)

(19)

(7)

(85)

Translation adjustments

(7)

(7)

30

(3)

13

Depreciation and impairment

(35)

(264)

(958)

(2)

(1,259)

Transfers

199

709

(908)

0

Changes in Group structure and other

23

(23)

28

0

28

TOTAL MOVEMENTS

(10)

(50)

119

8

67

At December 31, 2016 Gross value

2,510

8,607

19,744

1,067

31,928

Accumulated depreciation and impairment

(560)

(5,068)

(14,596)

(50)

(20,274)

NET

1,950

3,539

5,148

1,017

11,654

Finance leases and operating leases 5.4 and equipment). They are recorded at the inception of the Assets held under finance leases that transfer to the Group substantially all of the risks and rewards of ownership are recognized as property, plant and equipment (land, buildings lease term at the lower of the fair value of the leased assets and the present value of the minimum lease payments. Property, plant and equipment acquired under finance leases are depreciated on a straight-line basis over the shorter of the estimated useful life of the asset - determined using the same criteria as for assets owned by the Group - or the lease term.

The corresponding liability is shown in the balance sheet net of related interest. Rental payments under operating leases are expensed as incurred. In 2016, other movements in property, plant and equipment included assets acquired under finance leases for an amount of €21 million (€17 million at December 31, 2015). These finance leases are not included in the cash flow statement, in accordance with IAS 7. At December 31, 2016, total property, plant and equipment acquired under finance leases amounted to €71 million (€67 million at December 31, 2015).

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016