SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

Financial and accounting information 2017 Consolidated financial statements

Trade and other accounts receivable a) Trade and other accounts receivable can be analyzed as follows: (inɸ€ millions) Dec. 31, 2017 Dec.b31, 2016 Gross value 5,527 5,361 Provision for impairment (393) (426) TRADE ACCOUNTS RECEIVABLE 5,134 4,935 Discounts and advances to suppliers 637 567 Prepaid payroll taxes 25 24 Other prepaid and recoverable taxes (other than income tax) 372 348 Miscellaneous operating receivables 250 248 Other non-operating receivables and provisions 117 339 Provision for impairment of other operating receivables (6) (11) OTHER RECEIVABLES 1,395 1,515 Movements in impairment provisions for trade accounts receivable in 2017 primarily reflect €98 million in additions (2016: €84 million) and €111 million in reversals (2016: €98 million), resulting from recoveries as well as write-offs. Bad debt write-offs are also reported under this caption for €78 million (2016: €69 million). Trade accounts receivable at December 31, 2017 are analyzed below by maturity: (inɸ€ millions) Gross value Impairment Net value TRADE ACCOUNTS RECEIVABLE NOT YET DUE 4,318 (30) 4,288 Trade account receivables past due Less than 1 month 478 (12) 466 1-3 months 201 (21) 180 More than 3 months 530 (330) 200 TRADE ACCOUNTS RECEIVABLE PAST DUE 1,209 (363) 846 TRADE ACCOUNTS RECEIVABLE 5,527 (393) 5,134 Trade and other accounts payable b) Trade and other accounts payable and accrued expenses can be analyzed as follows: (inɸ€ millions) Dec.b31, 2017 Dec.b31, 2016 TRADE ACCOUNTS PAYABLE 6,027 5,805 Customer deposits 1,133 1,056 Payables to suppliers of non-current assets 367 277 Grants received 78 88 Accrued personnel expenses 1,231 1,178 Accrued taxes (other than on income) 423 416 Other operating payables 499 521 Other non-operating payables 92 100 OTHER PAYABLES 3,823 3,636

As of December 31, 2017 and 2016, inventories were as follows: (inɸ€ millions) Dec.b31, 2017 Dec.b31, 2016 Gross value Raw materials 1,391 1,327 Work in progress 330 318 Finished goods 4,770 4,678 GROSS INVENTORIES 6,491 6,323 Provision for impairment Raw materials (139) (143) Work in progress (12) (11) Finished goods (299) (294) TOTAL PROVISION FOR IMPAIRMENT (450) (448) NET VALUE 6,041 5,875 The net value of inventories was €6,041 million at December 31, 2017 compared with €5,875 million at December 31, 2016. Impairment losses on inventories recorded in the 2017 income statement totaled €207 million (2016: €176 million). Reversals of impairment losses on inventories amounted to €183 million in 2017 (2016: €176 million). Operating and non-operating 3.5.2. receivables and payables Trade accounts receivable and payable and other receivables and payables are stated at their carrying amount which approximates their fair value as they generally have maturities of less than three months. Provisions for impairment are booked to cover the risk of total or partial non-recovery. The Group deems that its exposure to concentrations of credit risk is limited due to its diversified business line-up, broad customer base and global presence. Past-due trade receivables are regularly monitored and analyzed, and provisions are set aside when appropriate. For trade receivables transferred under securitization programs, the contracts concerned are analyzed and if substantially all the risks associated with the receivables are not transferred in substance to the financing institutions, they remain on the balance sheet and a corresponding liability is recognized in short-term debt (further information is provided in Note 8.3.8).

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