Michelin couv courteGB

Firm contracts are recorded in the balance sheet upon inception.
They are not revalued at market value.
Premiums paid on options contracts are immediately written in
the consolidated statement of income.
j) Investment grants
Investment grants are recorded in liabilities under “Other
payables, deferred income and accrued expenses” and are
written back to the income statement over periods not exceeding
the depreciation period of the assets financed by the grants.
k) Foreign currency receivables and payables
Foreign currency receivables and payables are converted into
euros at the exchange rate ruling on the transaction date. Their
value is adjusted at year-end based on the then ruling exchange
rate and the resulting exchange difference is recorded in the
income statement.
l) Post-retirement and other employee benefit
obligations
A summary of related significant accounting policies is provided
in note 13.
m) Income tax
The income tax charge includes both current and deferred taxes.
Deferred taxes are calculated by the liability method, on a
company-by-company basis, on:
• time differences between the book value of assets and liabilities
and their tax basis,
q) List of consolidated companies
1. Parent Company
• tax loss carry-forwards, to the extent that their future utilization
is considered probable.
Deferred tax assets and liabilities are not discounted.
n) Research and development costs
Research and development costs are expensed in the year in
which they are incurred.
o) Net non-recurring income and expenses
Non-recurring items correspond to income and expenses
not arising in connection with the Group’s ordinary operations,
including reorganization costs and gains and losses on disposals
of fixed assets.
p) Basic earnings per share
Basic earnings per share are calculated by dividing net income
Group share by the weighted average number of shares outstanding
during the year, including Compagnie Générale des
Etablissements Michelin shares carried on the assets side of the
balance sheet under “Short-term investments”, less any shares
canceled during the year.
Diluted earnings per share are calculated by adjusting net income
and the weighted average number of shares for the effects of
dilutive potential shares. Where the proceeds from exercise of
dilutive potential shares are received upon exercise of the corresponding
rights, the proceeds are assumed to be used to purchase
shares at the average market price for the period, in accordance
with the treasury stock method.
Registered office Country % stake
• Compagnie Générale des Établissements Michelin Clermont-Ferrand France
2. Fully-consolidated companies
Manufacturing companies
• Manufacture Française des Pneumatiques Michelin Clermont-Ferrand France 99.99
• Michelin Roues France La Chapelle Saint Luc France 99.99
• Pneu Laurent Avallon France 99.99
• Pneumatiques Kléber Toul France 99.99
• Simorep et Cie - Société du Caoutchouc Synthétique Michelin Bassens France 99.99
• Société de Développement Mécanique Wattignies France 99.99
• S.O.D.G. Clermont-Ferrand France 99.99
• Michelin Algérie SPA Algiers Algeria 70.00
• Laurent Reifen GmbH Oranienburg Germany 100.00
• Michelin Kronprinz Werke GmbH Solingen Germany 100.00
• Michelin Reifenwerke KGaA Karlsruhe Germany 100.00
• Sociedade Michelin de Participações, Indústria e Comércio Ltda. Rio de Janeiro Brazil 100.00
• Michelin North America (Canada) Inc. Laval Canada 100.00
• Michelin Shenyang Tire Co., Ltd. Liaoning Province China 100.00
• Shanghai Michelin Warrior Tire Co., Ltd. Shanghai China 70.00
• Industria Colombiana de Llantas S.A. Cali Colombia 99.92
• Michelin España Portugal, S.A. Tres Cantos Spain 99.79