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FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
215
SAINT-GOBAIN
- REGISTRATION DOCUMENT 2016
Changes in the number of consolidated companies
2.3
At December 31, 2016, the number of consolidated companies was as follows:
France Outside France
Total
Fully consolidated companies
AT JANUARY 1, 2016
149
606
755
Newly consolidated companies
8
38
46
Merged companies
(13)
(18)
(31)
Deconsolidated companies
(3)
(25)
(28)
Change in consolidation method
2
2
AT DECEMBER 31, 2016
141
603
744
Equity-accounted companies and joint arrangements
AT JANUARY 1, 2016
3
93
96
Newly consolidated companies
1
6
7
Merged companies
0
Deconsolidated companies
(6)
(6)
Change in consolidation method
(2)
(2)
AT DECEMBER 31, 2016
4
91
95
TOTAL AT JANUARY 1, 2016
152
699
851
TOTAL AT DECEMBER 31, 2016
145
694
839
consolidation
Off-balance sheet commitments related to companies within the scope of
2.4
Group for the amount of €2,398 million.
As of December 31, 2016, commitments for irrevocable purchases included the commitment on the equity interests of the Sika
INFORMATION CONCERNING THE GROUP’S OPERATING
NOTE 3
ACTIVITIES
Income statement items
3.1
Revenue recognition
3.1.1
the customer, or (ii) when the service has been rendered, or
the risks and rewards of ownership have been transferred to
recognized net of rebates, discounts and sales taxes (i) when
Revenue generated by the sale of goods or services is
be provided.
(iii) by reference to the stage of completion of the services to
probable that total contract costs will exceed total contract
costs incurred that it is probable will be recovered. When it is
contract revenue is recognized only to the extent of contract
immediately.
revenue, the expected loss is recognized as an expense
of a construction contract cannot be estimated reliably,
explained below. When the outcome of a construction
companies using the percentage-of-completion method, as
Construction contracts are accounted for by the Group’s
activity at the end of the reporting period. When the outcome
by reference to the stage of completion of the contract
costs are recognized as revenue and expenses, respectively,
contract can be estimated reliably, contract revenue and
total consolidated net sales.
Construction contract revenues are not material in relation to
Operating income
3.1.2
income, as are changes in the fair value of financial
Foreign exchange gains and losses are included in operating
external and internal management indicator for many years.
different sectors and has been used by the Group as its key
operating income.
business equity-accounted companies is also posted under
they relate to operating items. The share of income of core
instruments that do not qualify for hedge accounting when
Operating income is a measure of the performance of the
automatically, based on the supplier invoices. Consequently,
product type to volumes purchased. The calculation is made
calculated by applying a contractually guaranteed rate by
goods distribution sector. These discounts are mostly
based on a step mechanism linked to specified targets,
statement for these discounts. Other discounts are calculated
determining the amounts to be recognized in the income
the judgment of the management is immaterial when
supplier discounts are common practice in the industrial
business are included in operating income. Contractual
Discounts granted by suppliers to the Building Distribution
and consistently from one period to the next.
statement. Such judgment is exercised in a prudent manner
to determine the discount to be recognized in the income
historical data, past performance and future trends in order
the judgment of the management is required based on
achieves the various targets over a given period. In this case,
whereby the percentage discount increases as the entity