SAINT_GOBAIN_REGISTRATION_DOCUMENT_2017

9

Financial and accounting information 2017 Consolidated financial statements

Deferred tax liabilities recognized in other countries represented considerably smaller amounts.

The Group recognized deferred income tax assets on loss carry-forwards for a net amount of €633 million at December 31, 2017 and €765 million at December 31, 2016. This principally relates to the United States, for which the recovery period is shorter than the maximum utilization period of 20 years, and to France, Germany and Spain, where tax consolidation ensures that deferred tax can be recovered. In these countries, tax losses may be carried forwards indefinitely. Nevertheless, after analyzing each situation, the Group may decide not to recognize them. At December 31, 2017, deferred tax assets whose recovery is not considered probable totaled €330 million (December 31, 2016: €393 million) and a provision had been accrued for the full amount. Unrecognized deferred tax assets chiefly relate to China, Spain, Germany and the United States.

Tax loss carry-forwards 10.3. Deferred tax assets are recognized only if it is considered probable that there will be sufficient future taxable income against which the temporary difference can be utilized. They are reviewed at the end of each reporting period and written down to the extent that it is no longer probable that there will be sufficient taxable income against which the temporary difference can be utilized. In determining whether to recognize deferred tax assets for tax loss carry-forwards, the Group applies a range of criteria that take into account the probable recovery period based on business plan projections and the strategy for the long-term recovery of tax losses applied in each country.

NOTE 11

SUBSEQUENT EVENTS

None.

NOTE 12

FEES PAID TO THE STATUTORY AUDITORS

Total fees paid to the Statutory Auditors and recognized in the income statement in 2017 and 2016 are detailed in the "Additional information and cross-reference tables" section of the Registration Document.

266 SAINT-GOBAIN - REGISTRATION DOCUMENT 2017