Michelin couv courteGB

11. Provisions for contingencies and charges
(in € thousand)
Dec. 31, 2003 Translation Movements Reversals Reversals Dec. 31, 2004
adjustments (utilized (non-utilized
and other allowances) allowances)
Post-retirement and
other employee
benefit obligations (1) 2,292,621 (68,500) 236,754 (183,141) – 2,277,734
Deferred taxes 41,531 (54) 12,693 (10,009) – 44,161
Reorganization 421,673 7,419 34,821 (143,424) (370) 320,119
Other (2) 250,535 (283) 229,953 (125,175) (8,323) 346,707
Total 3,006,360 (61,418) 514,221 (461,749) (8,693) 2,988,721
Ventilation by nature:
Operating income 319,700 (8,323)
Interest income and expense 1,405 –
Net non-recurring income and expense 180,423 (370)
Income taxes 12,693 –
Total 514,221 (8,693)
(1) Benefit obligations and other deferred benefits
Note 13 to the consolidated accounts describes the Group’s benefit obligations, their amount, the valuation methods applied,
their accounting treatment and the annual cost.
(2) Other provisions for risks and charges
The €229 million provision includes in particular an amount of €108 million for the potential loss resulting from the
contemplated transfer of Michelin’s wheel businesses. This loss was estimated on the basis of the bids made at the end of 2004.
At the end of 1999, Wolber laid off 451 employees after it wound up its Soissons plant. Former Wolber employees had challenged the
lay off before the courts, and various proceedings are pending against Wolber before the Amiens Court of Appeal and before the Cour
de Cassation (Supreme Court), and against Compagnie Générale des Etablissements Michelin and Manufacture Française des
Pneumatiques Michelin before the Tribunal de Grande Instance (Court of First Instance) of Clermont-Ferrand.
Based on the status of proceedings as at December 31, 2004 a provision was made in Wolber’s accounts for the different proceedings
concerning it. The Group moreover does not believe it necessary to make any provision in either of Compagnie Générale des
Etablissements Michelin and Manufacture Française des Pneumatiques Michelin, in so far as to the best of its knowledge, no French
jurisdiction ever ordered reopening of a plant as is being sought in the current legal action.
12. Income taxes
Income taxes reported in the income statement can be analyzed as follows:
(in € thousand)
Dec. 31, 2004 Dec. 31, 2003
Current taxes 274,839 143,540
Deferred taxes 18,212 99,627
Sub-total 293,051 243,167
Withholding taxes 22,747 18,268
Total 315,798 261,435