Saint Gobain - Registration document 2016

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9 FINANCIAL AND ACCOUNTING INFORMATION
1. 2016 Consolidated Financial Statements
246 SAINT-GOBAIN - REGISTRATION DOCUMENT 2016
Receivables securitization programs 8.3.8
The Group has set up two receivables securitization
Saint-Gobain Receivables Corporation.
programs, one through its French subsidiary GIE Point.P
Finances, and the other through its US subsidiary,
a maximum amount of €500 million (€600 million previously).
At December 31, 2016, it amounted to €500 million
The French program was renewed on November 10, 2016 for
(€578 million at December 31, 2015). Based on past seasonal
as non-current and the balance as current.
fluctuations in receivables included in the program and on the
contract’s features, €350 million of this amount was classified
The US program was renewed on October 21, 2015 for a
December 31, 2015).
maximum amount of USD 350 million. Its euro-equivalent
value at December 31, 2016 was €173 million (€178 million at
Collateral 8.3.9
by various non-current assets (real estate and securities).
At December 31, 2016, €14 million of Group debt was secured
Financial instruments 8.4.
interest rates, exchange rates and commodity prices that may
arise in the normal course of business.
The Group uses interest rate, foreign exchange and
commodity derivatives to hedge its exposure to changes in
under IAS 39.
value, irrespective of whether or not they are part of a
hedging relationship that qualifies for hedge accounting
In accordance with IAS 32 and IAS 39, all such instruments
are recognized in the balance sheet and measured at fair
However, in the case of derivatives that qualify as cash flow
hedges, the effective portion of the gain or loss arising from
the ineffective portion is recognized in the income statement.
changes in fair value is recognized directly in equity, and only
and qualified as fair value hedges and derivatives that do not
qualify for hedge accounting during the period are taken to the
Changes in the fair value of both derivatives that are designated
derivatives not qualifying for hedge accounting, and in net
financial income and expense for all other derivatives).
income statement (in business income and expense for
operational foreign exchange derivatives and commodity
Fair value hedges a)
Fair value hedge accounting is applied by the Group mainly for
hedge fixed-rate debts exposed to a fair value risk. In
accordance with hedge accounting principles, debt included in a
derivative instruments which swap fixed rates against variable
rates (fixed-for-floating interest rate swaps). These derivatives
designated fair value hedging relationship is remeasured at fair
gain or loss on the fair value hedge, the income statement is only
impacted by the ineffective portion of the hedge.
value and to the extent of the risk hedged. As the loss or gain on
the underlying hedged item offsets the effective portion of the
Cash flow hedges b)
them in a hedging reserve in equity. This reserve is reclassified
to the income statement when the hedged transaction occurs
impact on the income statement of the effective portion of
changes in the fair value of these derivatives by recording
exposure to changes in the fair value of these derivatives to
and the hedged item itself affects income. In the same way as
for fair value hedges, cash flow hedging limits the Group’s
instruments are qualified as highly probable. The application
of cash flow hedge accounting allows the Group to defer the
exchange forwards). Transactions hedged by these
Cash flow hedge accounting is applied by the Group mainly
equipment) and the price of future purchases, mostly gas and
fuel oil (commodity swaps) or foreign currencies (foreign
for derivative instruments which fix the cost of future
investments (financial assets or property, plant and
the ineffective portion of the hedge.
Derivatives that do not qualify for hedge accounting c)
Instruments concerned are primarily foreign exchange swaps
and foreign exchange forwards.
Changes in the fair value of derivatives that do not qualify for
hedge accounting are recognized in the income statement.
Fair value of financial instruments d)
based on observable market inputs. This represents level 2 in
the fair value hierarchy defined in IFRS 7 and IFRS 13.
in IFRS 7 and IFRS 13. The fair value of instruments not quoted
valuation techniques such as the fair value of another recent
and similar transaction, or discounted cash flow analysis
in an active market, such as derivatives or financial assets and
liabilities, is determined by reference to commonly used
The fair value of financial assets and financial liabilities
corresponds to their quoted price on an active market (if
any): this represents level 1 in the fair value hierarchy defined
The fair value of short-term financial assets and liabilities is
considered as being the same as their carrying amount due to
their short maturities.