Saint Gobain - Registration document 2016

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9 FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
238 SAINT-GOBAIN - REGISTRATION DOCUMENT 2016
Provisions for claims and litigation 7.1.1
At December 31, 2016 and 2015, provisions for claims and
against the Group. These provisions are described in further
litigation mainly covered asbestos-related lawsuits filed
detail in Note 7.2 “Contingent liabilities and litigation”.
Provisions for environmental risks 7.1.2
clean-up costs.
protection measures, as well as site rehabilitation and
These provisions cover costs relating to environmental
Provisions for restructuring costs 7.1.3
Provisions for restructuring costs amounted to €99 million at
including net additions of €32 million during the year. The
December 31, 2016 (€139 million at December 31, 2015),
(€21 million), the United Kingdom (€12 million), and France
provisions primarily concern Benelux (€33 million), Germany
(€10 million).
Provisions for personnel expenses 7.1.4
employees that are unrelated to the Group’s reorganization
These provisions primarily cover indemnities due to
plans.
Provisions for customer warranties 7.1.5
They are determined on a statistical basis using a range of
warranties granted to customers mainly in the United States.
made in prior years in the business and region concerned. In
criteria and take into account contractual warranty payments
risks.
addition, specific provisions may be set aside for identified
These provisions cover the Group’s commitments under
Provisions for other contingencies 7.1.6
amounted to €281 million (€307 million at December 31, 2015)
At December 31, 2016, provisions for other contingencies
States (€60 million), France (€40 million) and Brazil
and mainly concerned Germany (€98 million), the United
(€41 million).
Investment-related liabilities 7.1.7
purchase minority interests, liabilities relating to the
Investment-related liabilities correspond to commitments to
shareholder puts.
acquisition of shares in Group companies, and minority
In 2016, changes in investment-related liabilities primarily
concerned minority shareholder puts.
Contingent liabilities and litigation 7.2
Asbestos-related litigation 7.2.1
described below.
The situation regarding ongoing asbestos-related litigation is
Asbestos-related litigation in France 7.2.1.1
Inexcusable fault lawsuits a)
In France, further individual lawsuits were filed in 2016 by
former employees (or persons claiming through them) of
out fiber-cement operations for asbestos-related
Everite and Saint-Gobain PAM which in the past had carried
2016, a total of 805 such lawsuits had been issued against the
occupational diseases they have or had. As at December 31,
supplementary compensation over and above the amounts
two companies since 1996 with the aim of obtaining
paid by the French Social Security authorities in this respect.
As of December 31, 2016, 761 of these 805 lawsuits had been
cases, the employers were held liable on the grounds of
completed in terms of both liability and quantum. In all these
“inexcusable fault”.
settlement of these lawsuits totaled approximately
Compensation paid by Everite and Saint-Gobain PAM in
€1.7 million.
of these 44 lawsuits have been completed in terms of both
yet been made, pending Appeal Court rulings. A further four
liability and quantum, but liability for the payment of
compensation has not yet been assigned.
Concerning the 44 lawsuits outstanding against Everite and
have been decided but the compensation awards have not
Saint-Gobain PAM at December 31, 2016, the merits of three
Out of the 37 remaining lawsuits, at December 31, 2016 the
stages, with four in the process of being investigated by the
procedures relating to the merits of 33 cases were at different
Social Security courts. The last four actions have been
French Social Security authorities and 29 pending before the
any time within a two-year period.
canceled but the plaintiffs may request their restoration at
filed since the outset of the litigation by current or former
In addition, as of December 31, 2016, 221 similar suits had been
the Group), in particular by current or former employees who
(excluding suits against companies that are no longer part of
against heat from furnaces.
used equipment containing asbestos to protect themselves
employees of thirteen other French companies of the Group
89 of these cases, the employer was held liable for
As of December 31, 2016, 164 lawsuits had been completed. In
“inexcusable fault”.
totaled approximately €2.5 million.
The compensation definitively paid by these companies
restoration at any time within a two-year period.
including 25 pending before the Social Security courts and 16
Social Security authorities, 41 were being investigated -
completed in terms of liability but are still pending with regard
before the Appeal Courts. In addition, seven suits had been
which one was pending before the French Social Security
to the quantum or liability for paying the compensation, of
suits have been canceled but the plaintiffs may request their
court and five before the Appeal Courts. The seven remaining
two cases were still at the investigation stage by the French
With regard to the 57 suits outstanding at December 31, 2016,
Anxiety claims b)
operate or have operated facilities classified as containing
Eight of the Group’s French companies, including six that
from those described above.
asbestos, are subject of damages claims that are different