sain t-gobain annu al report 2008 annual report

In 2006, the Group launched a process to sell its Flasks
business (Saint-Gobain Desjonquères group) and the assets
and liabilities of the business were therefore classified as held
for sale in the consolidated balance sheet at
December 31, 2006. The sale was completed at the end
of the first quarter of 2007.
In accordance with IAS 12, a deferred tax liability relating to
the cumulative reserves carried in respect of the Saint-Gobain
Desjonquères business was recognized in 2006 for an amount
of €10 million, and subsequently reversed when the sale was
completed on March 31, 2007.
Changes in assets and liabilities held for sale over the last two
years were as follows:
(in € millions) Assets Liabilities Provisions
At December 31, 2006 548 249 0
Reclassifications to held for sale 950 278
Additions to provisions 161
Disposals, reclassifications
and other movements (1,333) (486) (101)
At December 31, 2007 165 41 60
Reclassifications to held for sale
Additions to provisions
Disposals, reclassifications
and other movements (165) (41) (60)
At December 31, 2008 0 0 0
Assets and liabilities held for sale break down as follows:
Dec 31, Dec 31, Dec 31,
(in € millions) 2008 2007 2006
Goodwill and other intangible assets 0 3 6
Property, plant and equipment, net 0 89 220
Other non-current assets 0 2 9
Inventories, trade accounts receivable
and other accounts receivable 0 71 298
Cash and cash equivalents 0 0 15
Total assets held for sale 0 165 548
Provisions for pensions
and other employee benefits 0 3 18
Deferred tax liabilities
and other non-current liabilities 0 11 29
Trade accounts payable,
other payables and accrued expenses,
and other current liabilities 0 17 158
Short-term debt and bank overdrafts 0 10 44
Total liabilities held for sale 0 41 249
NOTE 3
Goodwill
(in € millions) 2008 2007 2006
At January 1
Gross value 9,440 9,481 9,756
Accumulated impairment (200) (154) (38)
Net 9,240 9,327 9,718
Movements during the year
Changes in Group structure 2,076 540 28
Impairment (68) (82) (125)
Translation adjustments (577) (469) (289)
Reclassification
to assets held for sale 0 (76) (5)
Total 1,431 (87) (391)
At December 31
Gross value 10,924 9,440 9,481
Accumulated impairment (253) (200) (154)
Net 10,671 9,240 9,327
Movements in goodwill during 2008 were due mainly to the
acquisition of the Maxit group (acquisition cost:
€2,087 million including assumed net debt; provisional goodwill:
€1,539 million – see Note 2) and of various Building
Distribution companies, mainly in Scandinavia, the United
Kingdom, the Baltic countries and France (see Note 2).
Movements in goodwill in 2007 mainly reflected the
acquisition of Izocam (acquisition cost: €111 million, including
€42 million in 2007; goodwill: €67 million); Norandex in the
United States (acquisition cost: €273 million, goodwill:
€152 million); and various other acquisitions in the Building
Distribution Sector, mainly in France, the United Kingdom,
Germany, the Netherlands and Spain.
Movements in goodwill in 2006 concerned several acquisitions
in the Building Distribution Sector, mainly in France, the
United Kingdom and Scandinavia, partly offset by decreases
stemming from divestments made in the year (see Note 2).
Impairment losses recognized in 2006 concerned mainly the
North American Bottles and Jars business for €89 million.
145 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Saint-Gobain – Financial Report 2008