Saint Gobain - Registration document 2016

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9 FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
226 SAINT-GOBAIN - REGISTRATION DOCUMENT 2016
Actuarial gains and losses 4.3.3.4
arising on pension obligations owing to changes in actuarial
The €366 million actuarial gain breaks down as €1,474 million
relating to a decrease in the asset ceiling.
corresponding to the increase in plan assets and €2 million
assumptions and experience adjustments, €1,106 million
Plan assets 4.3.3.5
primarily in the United States, the United Kingdom and
Plan assets have been progressively built up by contributions,
the United States in September 2016.
one-off contribution of USD 640 million (€578 million) paid in
2016 totaled €732 million (€116 million in 2015), including a
Germany. Contributions paid by the Group into these plans in
calculated using the discount rate.
United Kingdom) than the estimated return of €278 million
€1,106 million higher (including €1,016 million arising in the
decrease of €94 million in 2015. This actual return is
increase of €1,384 million in plan assets, compared with a
Actual returns on equity and bond markets generated an
equity.
assets would have an impact of approximately €46 million on
A 0.5-point increase or decrease in the actual return on plan
(55%), with the remaining 18% invested in other asset classes.
Plan assets are mainly composed of equities (27%) and bonds
Projected contributions to pension plans for 2017 are
estimated at around €130 million.
Employee benefit expense 4.3.3.6
benefit plans (excluding other employee benefits) is as
The cost of the Group’s pension and other post-employment
follows:
(in € millions) 2016 2015
Service cost 189 211
Interest cost 382 390
Return on plan assets (278) (296)
and settlements
Past service cost, plan curtailments
(14) (44)
administration costs
Employee contributions and plan
(1) (1)
PENSIONS, LENGTH-OF-SERVICE AWARDS
AND OTHER POST-EMPLOYMENT BENEFITS 278 260
Defined contribution plans 4.3.4
incurred.
Contributions to defined contribution plans are expensed as
represented an estimated €628 million (€600 million in 2015),
Contributions to defined contribution plans for 2016
corporate-sponsored supplementary pension plans
mainly in France (€129 million in 2015), and €79 million for
government-sponsored supplementary pension schemes,
pension schemes (€399 million in 2015), €131 million for
including €418 million for government-sponsored basic
(€72 million in 2015).
Share-based payments 4.4
Group Savings Plan 4.4.1
setting the subscription price to the Chief Executive Officer of
events. The Board of Directors delegates authorization for
ten-year lock-up, except following the occurrence of certain
on local legislation, and are subject to a mandatory five- or
employee stock purchase plan open to all Group employees
The Group Savings Plan (Plan Épargne Groupe) is an
through the employee saving plan’s mutual funds, depending
subscription price. These shares are held either directly or
able to invest in Saint-Gobain shares at a preferential
of three months’ service in the Group. Eligible employees are
present. Eligible employees must have completed a minimum
in France and most other countries where the Group is
decision, subject to a 20% discount, in accordance with
Paris over the 20 trading days preceding the date of the
the opening prices for the Saint-Gobain share on Euronext
Compagnie de Saint-Gobain. It corresponds to the average of
deliberations of the Board of Directors.
applicable laws, the Shareholders’ Meeting resolutions and the
rate that would be charged by a bank to an individual with an
purchase with debt. The borrowing cost is estimated at the
number of shares on the spot market and financing the
stock forward five or ten years and then purchasing the same
two-step strategy that involves first selling the restricted
recognized in full at the end of the subscription period.
consumer loan repayable at maturity. The cost of the plans is
average risk profile for a general-purpose, five- or ten-year
of the lock-up for the employee is defined as the cost of a
on restricted stock (i.e., stock subject to a lock-up). The cost
measured by reference to the fair value of a discount offered
The compensation cost recorded in accordance with IFRS 2 is
issued to employees under the PEG at an average
In 2016, 4,653,810 new shares with a par value of €4 were
transaction fees.
capital increase of €136 million (€144 million in 2015), net of
subscription price of €32.44 in 2015), representing a share
subscription price of €29.42 (4,449,939 shares at an average
2016 and 2015, net of the lock-up cost of €26 million
The cost recorded in the income statement amounted to nil in
(€24 million in 2015).