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FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
243
SAINT-GOBAIN
- REGISTRATION DOCUMENT 2016
Default Swap) level of each counterparty.
reasonable levels, taking into account the relative CDS (Credit
To limit the Group’s exposure to credit risk, the Treasury and
with a long-term rating of A- or above from Standard &
Financing Department deals primarily with counterparties
risk are also closely monitored to ensure that they remain at
Poor’s or A3 or above from Moody’s. Concentrations of credit
Net financial expense
8.2
costs, income from cash and cash equivalents, interest cost for
Net financial expense includes borrowing and other financing
the return on plan assets, and other financial income and
pension and other post-employment benefit obligations, net of
expense such as exchange gains and losses and bank charges.
(in € millions)
2016
2015
Borrowing costs, gross
(376)
(444)
Income from cash and cash equivalents
27
25
BORROWING COSTS, NET
(349)
(419)
Interest cost – pension and other
post-employment benefit obligations
(387)
(393)
Return on plan assets
278
297
BENEFIT OBLIGATIONS, NET
OTHER POST-EMPLOYMENT
INTEREST COST – PENSION AND
(109)
(96)
Other financial expense
(111)
(131)
Other financial income
28
17
AND EXPENSE
OTHER FINANCIAL INCOME
(83)
(114)
NET FINANCIAL EXPENSE
(541)
(629)
Net debt
8.3
Long- and short-term debt
8.3.1
Long-term debt
a)
liabilities and the fair value of interest rate hedging derivatives.
Long-term debt includes bonds, perpetual bonds,
types of long-term financial liabilities, including finance lease
participating securities, long-term securitizations and all other
securities are classified as debt.
rather than their legal form. As a result, participating
equity is based on the substance of the contracts concerned
Under IAS 32, the distinction between financial liabilities and
interest rate derivatives) is measured at amortized cost.
At the end of the reporting period, long-term debt (excluding
effective interest method.
Premiums and issuance costs are amortized using the
Short-term debt
b)
derivatives related to debt, and accrued interest on borrowings.
described above, short-term financing programs such as
Short-term debt includes the current portion of long-term debt
and other short-term bank borrowings, the fair value of
commercial paper, short-term securitizations, bank overdrafts
Short-term debt, excluding derivatives related to debt, is
period. Premiums and issuance costs are amortized using the
measured at amortized cost at the end of the reporting
effective interest rate method.
Cash and cash equivalents
c)
Cash and cash equivalents mainly consist of bank accounts
with maturities of less than three months), highly liquid
and marketable securities that are short-term (i.e., generally
and subject to an insignificant risk of changes in value.
investments readily convertible into known amounts of cash
profit or loss.
Marketable securities are measured at fair value through