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FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
219
SAINT-GOBAIN
- REGISTRATION DOCUMENT 2016
Performance indicators
3.4
EBITDA
3.4.1
intangible assets.
and amortization of property, plant and equipment and
EBITDA corresponds to operating income plus depreciation
EBITDA amounted to €3,998 million in 2016 (€3,844 million in
2015), calculated as follows:
(in € millions)
2016
2015
Operating income
2,818
2,636
and equipment and intangible assets
Depreciation/amortization of property, plant
1,180
1,208
EBITDA
3,998
3,844
3.4.2 Return on capital employed
and equipment, working capital, net goodwill and other
intangible assets, but exclude deferred tax assets arising on
non-amortizable brands and land.
Return on capital employed (ROCE) corresponds to
annualized operating income adjusted for changes in the
scope of consolidation, expressed as a percentage of total
assets at year-end. Total assets include net property, plant
Recurring net income
3.4.3
tax and minority interests.
Recurring net income corresponds to income after tax and
minority interests but before disposal gains or losses, asset
impairment, material non-recurring provisions and the related
December 31
(554,624,285 shares
in
2016
and
562,001,188 shares in 2015), recurring earnings per share
amounted to €2.52 in 2016 and €2.07 in 2015.
Recurring net income from continuing operations totaled
€1,398 million in 2016 (€1,165 million in 2015). Based on the
weighted average number of shares outstanding at
The difference between net income and recurring net income
corresponds to the following items:
(in € millions)
2016
2015
GROUP SHARE OF NET INCOME FROM
CONTINUING OPERATIONS
1,311
374
Less:
Gains and losses on disposals of assets
(2)
(70)
combinations
Impairment of assets and acquisition fees
incurred in connection with business
(201)
(928)
Changes in provision for anti-trust litigation
and other non-recurring provisions
(4)
(34)
Impact of minority interests
(1)
0
Tax on disposal gains and losses, asset
impairment and non-recurring charges to
provisions
121
241
GROUP SHARE OF RECURRING NET INCOME
FROM CONTINUING OPERATIONS
1,398
1,165
Cash flow from operations
3.4.4
and deferred taxes. Cash flow from operations is adjusted for
the effect of material non-recurring provision charges.
from operating activities before the impact of changes in
working capital requirements, changes in current taxes and
changes in provisions for pensions and other employee
benefit obligations as well as for other liabilities and charges
Cash flow from operations corresponds to net cash generated
losses and non-recurring provisions corresponds to cash flow
from operations less the tax effect of asset disposals, asset
impairment and non-recurring provisions.
Cash flow from operations before tax on disposal gains and
These amounts are calculated as follows:
in 2016 (€2,562 million in 2015) and cash flow from operations
excluding income tax on disposal gains and losses and
non-recurring provisions from continuing operations
amounted to €2,628 million in 2016 (€2,321 million in 2015).
Cash flow from continuing operations totaled €2,749 million
(in € millions)
2016
2015
GROUP SHARE OF NET INCOME
FROM CONTINUING OPERATIONS
1,311
374
Minority interests in net income
41
43
Share in net income of equity-accounted
companies, net of dividends received
(20)
(29)
Amortization and impairment of assets
1,369
2,085
Gains and losses on disposals of assets
2
70
other non-recurring provisions
Changes in provision for anti-trust litigation and
4
34
Unrealized gains and losses arising from
changes in fair value and share-based payments
42
(15)
CASH FLOW FROM OPERATIONS
OF CONTINUING OPERATIONS
2,749
2,562
Tax on disposal gains and losses, asset
impairment and non-recurring charges to
provisions
(121)
(241)
CASH FLOW FROM OPERATIONS BEFORE
TAX ON DISPOSAL GAINS AND LOSSES AND
NON-RECURRING PROVISIONS OF
CONTINUING OPERATIONS
2,628
2,321
Working capital
3.5
Inventories
3.5.1
include the transfer from equity of any gains/losses on
qualifying cash flow hedges of foreign currency purchases of
raw materials. Net realizable value is the selling price in the
ordinary course of business, less estimated completion and
weighted-average cost method, and in some cases the
First-In-First-Out (FIFO) method. Inventory costs may also
condition. Cost is generally determined using the
Inventories are stated at the lower of cost and net realizable
value. The cost of inventories includes purchase costs (net of
supplier discounts), processing costs and other costs incurred
in bringing the inventories to their present location and
selling costs. No account is taken in the inventory valuation
process of the impact of below-normal capacity utilization
rates.