sain t-gobain annu al report 2008 annual report

NOTE 11
Provisions
At January 1, Charge Write-backs Write-backs Other At December 31,
2008 for of utilized of surplus (transfers) 2008
(in € thousands) the year provisions provisions
Untaxed provisions
Reinvested capital gains 6,427 6,427
Other 12 12
Provisions for contingencies
6,439 – – – – 6,439
Provisions for taxes 86,221 4,239 (10,593) 1,636 81,503
Provisions for stock options – –
Provisions
for other contingencies 2,105 531 (66) (25) 2,545
88,326 4,770 (66) (10,593) 1,611 84,048
Provisions for charges
Provisions for pensions
and other post-employment
benefit obligations 61,876 16,434 (11,309) 67,001
Other provisions for charges 317 132 (16) 433
62,193 16,566 (11,325) – – 67,434
Provisions for impairment of:
Investments in subsidiaries
and affiliates 639 639
Other investment securities 51,209 17,944 (2,659) 66,494
Doubtful receivables 254 (254) –
Marketable securities 127 (127) –
52,229 17,944 (3,040) – – 67,133
Impact on operating income 16,442 (11,579)
Impact on net financial income 17,944 (2,825)
Impact on exceptional items 4,894 (27) (10,593)
The Company’s obligations with respect to pensions and other
post-employment benefits are measured using the projected
unit credit method based on end-of-career salaries and
employees’ vested rights at the measurement date.
Actuarial gains and losses arising in the year under defined
benefit plans are recognized immediately in the income
statement. The discount rate used was 6.25% in 2008 versus
5.50% in 2007.
In 2008, Compagnie de Saint-Gobain shares held for
allocation upon exercise of stock options were written down
by €17,940 thousand. Write-downs were recorded in all cases
where the weighted average share price (€33.33) was less
than the option exercise price.
NOTES THE PARENT COMPANY FINANCIAL STATMENTS
201
Saint-Gobain – Financial Report 2008