Saint-Gobain // Universal Registration Document 2021

8

Financial and accounting information 2021 Consolidated Financial Statements

Property, plant and equipment 7.3 Land, buildings and equipment are carried at historical cost less accumulated depreciation and impairment. Cost may also include incidental expenses directly attributable to the acquisition, as well as the impact of transfers from equity of any gains/losses on qualifying cash flow hedges of property, plant and equipment purchases. Expenses incurred in exploring and evaluating mineral resources are included in property, plant and equipment when it is probable that associated future economic benefits will flow to the Group. They include mainly the costs of topographical or geological studies, drilling costs, sampling costs and all costs incurred in assessing the technical feasibility and commercial viability of extracting the mineral resource. Material borrowing costs incurred for the construction and acquisition of property, plant and equipment are included in the cost of the related asset if they are significant. Property, plant and equipment are considered as having no residual value, as they chiefly consist of industrial assets that are intended to be used until the end of their useful lives. Property, plant and equipment other than land are depreciated using the components approach on a straight-line basis over the following estimated useful lives, which are regularly reviewed:

Major factories and offices ■

30-40 years 15-25 years

Other buildings ■

Production machinery and equipment ■

5-16 years 3-5 years 4-16 years

Vehicles ■

Furniture, fixtures, office and computer equipment ■

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

Changes in property, plant and equipment in 2021 and 2020 are analyzed below:

Total property, plant and equipment

Land and quarries

Machinery and equipment

Assets under construction

Buildings

(in EUR millions)

At January 1, 2020 Gross value

2,485 (719) 1,766

8,444

20,031

1,552 (45) 1,507

32,512

Accumulated depreciation and impairment

(5,232)

(14,809)

(20,805)

NET VALUE

3,212

5,222

11,707

Changes during the year Acquisitions

13

47

216

846

1,122 (124) (692)

Disposals

(61) (70) (31)

(28)

(30)

(5)

Translation adjustments and restatement for hyperinflation

(201) (242)

(330) (819)

(91)

Depreciation Impairment

(1,092)

(11)

(19) 266

(60)

(5)

(95)

Transfers

723 118 (6)

(989)

0

Changes in Group structure and other

46 (11)

83

31

278 (32)

Assets held for sale TOTAL CHANGES At December 31, 2020 Gross value

(15)

0

(125)

(109)

(188)

(213)

(635)

2,293 (652) 1,641

7,925

19,169

1,312 (18)

30,699 (19,627)

Accumulated depreciation and impairment

(4,822)

(14,135)

NET VALUE

3,103

5,034

1,294

11,072

Changes during the year Acquisitions

46

70

249 (34)

1,116

1,481 (95)

Disposals

(32)

(26)

(3) 53 (2) (5)

Translation adjustments and restatement for hyperinflation

49

104

166

372

Depreciation Impairment

(33)

(241) (30)

(837)

(1,113) (104)

(5)

(64) 668

Transfers

185

(853)

0

Changes in Group structure and other

38 (1) 62

12

29

(2) (3)

77

Assets held for sale TOTAL CHANGES At December 31, 2021 Gross value

(14)

(9) 168

(27) 591

60

301

2,380 (677) 1,703

8,161

19,848

1,611 (16)

32,000 (20,337)

Accumulated depreciation and impairment

(4,998)

(14,646)

NET VALUE

3,163

5,202

1,595

11,663

SAINT-GOBAIN UNIVERSAL REGISTRATION DOCUMENT 2021 308

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