Saint-Gobain // Universal Registration Document 2021

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Financial and accounting information 2021 Consolidated Financial Statements

Intangible assets, property, plant and equipment, NOTE 7 and right-of-use assets

Goodwill 7.1 When an entity is acquired by the Group, its identifiable assets and assumed liabilities are recognized at their fair value. IFRS allows a 12-month period after the acquisition date (“measurement period”) to identify the assets and liabilities of the acquired entity that were not recognized in the initial accounting for the combination, and to retroactively modify the amounts initially allocated. The final acquisition price (“consideration transferred” in IFRS 3R), including, as appropriate, the estimated fair value of any earn-out payments or other deferred consideration (“contingent consideration” in IFRS 3R), is determined in the 12 months following the acquisition. Under IFRS 3R, any adjustments to the acquisition price beyond this 12-month period are recorded in the income statement. Directly attributable acquisition costs are expensed as incurred. In addition, goodwill is recognized only at the date that control is achieved. Any subsequent increase in ownership

interest (without change of control) is recorded as a change in equity without adjusting goodwill. Goodwill is recorded in the consolidated balance sheet as the difference between (i) the acquisition-date fair value plus the amount of any non-controlling interests in the acquiree – measured either at fair value (full goodwill method) or at the proportionate interest in the fair value of the net identifiable assets acquired (partial goodwill method) – and (ii) the net amount of assets and liabilities acquired at their fair value at the acquisition date. The Group generally applies the partial goodwill method and the amount of goodwill calculated under the full goodwill method is not therefore material. Any excess of the cost of an acquisition over the fair value of the Group’s share of the assets and liabilities of the acquired entity is recorded as goodwill. If the fair value of the net assets acquired and liabilities assumed exceeds their acquisition cost, this negative difference is recognized in the income statement in the year of acquisition.

Changes in goodwill in 2021 and 2020 are detailed below:

Dec. 31, 2021

Dec. 31, 2020

(in EUR millions) At January 1 Gross value

12,229 (2,201) 10,028

12,495 (2,466) 10,029

Accumulated impairment

NET VALUE

Changes during the year Impairment

(30) 354

(201) (484)

Translation adjustments and restatement for hyperinflation

Changes in Group structure

815

719

Assets held for sale TOTAL CHANGES At December 31 Gross value

14

(35)

1,153

(1)

13,399 (2,218)

12,229 (2,201) 10,028

Accumulated impairment

NET VALUE

11,181

In 2021, changes in Group structure mainly reflect first-time consolidations following the acquisition of Chryso (see note 4.2.1) for €722 million and of Equflow and Duraziv for €20 million and €17 million, respectively, as well as adjustments to purchase price accounting in progress. Impairment losses were recognized for €30 million, mainly against assets sold in the period. Currency translation adjustments primarily reflect the impacts of fluctuations in the US dollar, pound sterling, Norwegian krone and Brazilian real. In 2020, changes in Group structure mainly reflected first-time consolidations following the acquisition of Continental Building Products for €637 million and of MS Techniques and Transluminal. These changes also resulted from acquisitions carried out at the end of 2019

(consolidated in 2020), in particular High Tech Metal Seals (HTMS) and Sonex. Impairment losses were recognized for €201 million, mainly against the United Kingdom Distribution business and assets held for sale. Currency translation adjustments primarily reflected the impacts of fluctuations in the US dollar, pound sterling, Brazilian real, Norwegian krone, Thai baht and South African rand. 7.2 Other intangible assets primarily include brands, customer relationships, intellectual property, software, patents and development costs. They are measured at historical cost less accumulated amortization and impairment. Other intangible assets

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 306

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