SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017
9
Financial and accounting information 2017 Consolidated financial statements
Other intangible assets 5.2. Other intangible assets primarily include patents, brands, software and development costs. They are measured at historical cost less accumulated amortization and impairment. Acquired retail brands and certain manufacturing brands are treated as intangible assets with indefinite useful lives as they have a strong national and/or international reputation. These brands are not amortized but are tested systematically for impairment on an annual basis. Other brands are amortized over their useful lives, not exceeding 40 years.
Costs incurred to develop software in-house – primarily configuration, programming and testing costs – are recognized as intangible assets. Patents and purchased computer software are amortized over their estimated useful lives, not exceeding 20 years for patents and three to five years for software. Research costs are expensed as incurred. Development costs meeting the recognition criteria under IAS 38 are included in intangible assets and amortized over their estimated useful lives (not exceeding five years) from the date when the products to which they relate are first marketed.
Changes in other intangible assets during 2017 and 2016 are analyzed below:
Non-amortizable brands
Development costs
Patents
Software
Other
Total
(inɸ€ millions)
At Januaryb1, 2016 Gross value
162
2,872 (587) 2,285
1,000 (806)
131 (97)
425
4,590
Accumulated amortization and impairment
(138)
(214)
(1,842)
NET VALUE
24
194
34
211
2,748
Changes during the year Acquisitions
5 0 1
0 0
91
17
38 (1)
151 (13)
Disposals
(12)
0 1
Translation adjustments
(140)
3
0
(135)
Amortization and impairment
(4)
0
(68)
(13)
(12)
(97)
Changes in Group structure and other
0 2
(1)
12 26
(3)
0
8
TOTAL CHANGES
(141)
2
25
(86)
At Decemberb31, 2016 Gross value
165
2,731 (587) 2,144
1,066 (846)
147
451
4,560
Accumulated amortization and impairment
(139)
(111)
(215)
(1,898)
NET VALUE
26
220
36
236
2,662
Changes during the year Acquisitions
0 0
0 0
97 (3) (9)
8 0
79 (1)
184
Disposals
(4)
Translation adjustments
(2) (4)
(55) (80)
(2)
(11) (11)
(79)
Amortization and impairment
(74)
(13)
(182)
Changes in Group structure and other
0
6
8
2
6
22
TOTAL CHANGES
(6)
(129)
19
(5)
62
(59)
At Decemberb31, 2017 Gross value
149
2,682 (667) 2,015
1,093 (854)
119 (88)
505
4,548
Accumulated amortization and impairment
(129)
(207)
(1,945)
NET VALUE
20
239
31
298
2,603
Impairment of non-amortizable brands in 2017 concerned Lapeyre.
The breakdown of non-amortizable brands by sector is provided in the segment information tables in Note 3 "Information concerning the Group’s operating activities".
244 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017
Made with FlippingBook flipbook maker