sain t-gobain annu al report 2008 annual report

Provisions for claims and litigation
In 2008, provisions for claims and litigation covered potential
costs arising from investigations by the competition authorities
involving the Innovative Materials Sector - Flat Glass
and from asbestos-related litigation. These provisions are
described in further detail in Note 26.
In view of developments in the competition authorities’ investigation
and the appeal lodged by the Group, as well as the
estimated duration of the appeal procedure and the period
covered by the financial guarantee, the provision at December
31, 2008 is classified in “Other non-current liabilities” and the
provision at December 31, 2007 has been reclassified in “Other
non-current liabilities” in the 2007 comparative financial
information.
Investment-related liabilities
In 2008, changes in investment-related liabilities primarily
concerned additional purchase consideration and deferred
payments on acquisitions.
In 2007, changes in this item mainly reflected buyouts of
minority interests in the Innovative Materials Sector - Flat
Glass. Investment-related liabilities at end-2007 included
additional purchase consideration and deferred payments
on acquisitions in the Building Distribution, Packaging
and Construction Products Sectors.
At December 31, 2006, investment-related liabilities included
mainly additional purchase consideration and put options
granted to minority interests in the Innovative Materials
Sector-Flat Glass and Packaging Sectors.
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Provisions for environmental risks
Provisions for environmental risks cover costs relating to environmental
protection measures, as well as site rehabilitation
and clean-up costs (see Note 27).
Provisions for restructuring costs
Provisions for restructuring costs came to €141 million at
December 31, 2008 (December 31, 2007: €160 million;
December 31, 2006: €201 million), including net additions of
€58 million during the year. The provisions primarily concern
Germany (€32 million), the United Kingdom (€24 million),
Benelux (€23 million) and the United States (€17 million).
Provisions for personnel costs
These provisions primarily cover indemnities due to
employees that are unrelated to the Group’s reorganization
plans.
Provisions for customer warranties
These provisions cover the Group’s commitments under the
warranties granted to customers.
Provisions for other contingencies
At December 31, 2008, provisions for other contingencies
amounted to €352 million and mainly concerned France
(€108 million), the United States (€74 million), Germany
(€59 million), Latin America (€36 million), Italy (€23 million)
and Spain (€22 million).
NOTE 16
Trade and other accounts payable
and accrued expenses
Dec. 31, Dec. 31, Dec. 31,
(in € millions) 2008 2007 2006
Trade accounts payable 5,613 5,752 5,519
Customer deposits 641 647 591
Payable to suppliers
of non-current assets 400 478 402
Grants received 63 54 53
Accrued personnel expenses 1,022 1,023 1,006
Accrued taxes other than on income 421 410 378
Other 843 813 906
- France 221 166 139
- Germany 65 76 73
- United Kingdom 90 136 153
- Other Western European countries 193 167 214
- North America 76 82 109
- Emerging countries and Asia 198 186 218
Total other payables
and accrued expenses 3,390 3,425 3,336
Trade and other accounts payable are due mainly within one
year, with the result that their carrying amount approximates
fair value.
Saint-Gobain – Financial Report 2008