_346 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE Report of the Managers 5.1.4 l) Provisions Provisions and other non-current liabilities rose by €165 million over the year as reported, to €860 million from €695 million at December 31, 2022. Excluding the negative €8 million in translation adjustments, the €173 million increase was attributable to the recognition in 2023 of new provisions for the restructuring programs announced late in the year, which mainly concerned the United States and Germany. At the same time, payments out of restructuring provisions set aside in prior years, in particular for the French simplification and competitiveness plan, were lower than the new provisions written in 2023. 5.1.4 m) Employee benefit obligations CHANGE IN THE FAIR VALUE OF THE NET DEFINED BENEFIT OBLIGATION (in € millions) Pension plans Other plans 2023 2022 At January 1 1,005 1,325 2,330 3,030 Contributions paid to the funds (11) - (11) (19) Benefits paid directly to the beneficiaries (39) (57) (96) (102) Other movements - 3 3 2 ITEMS RECOGNIZED IN OPERATING INCOME Current service cost 18 52 70 107 Actuarial (gains) or losses recognized on other long-term benefit plans - 1 1 (8) Effect of plan amendments, curtailments or settlements (13) 12 (1) (116) Other items 18 - 18 9 ITEMS RECOGNIZED OUTSIDE OPERATING INCOME Net interest on employee benefit obligations 37 58 95 39 ITEMS RECOGNIZED IN OTHER COMPREHENSIVE INCOME Translation adjustments (15) (23) (38) 60 Actuarial (gains) or losses 20 38 58 (655) Unrecognized assets due to the effect of the asset ceiling (7) (1) (8) (17) AT DECEMBER 31 1,013 1,408 2,421 2,330 The net defined benefit obligation recognized at December 31, 2023 stood at €2,421 million, a year-on-year increase of €91 million as reported and of €129 million excluding translation adjustments. The increase reflected the following main factors: ● the total €107 million in contributions and benefits paid in 2023 (2022: €121 million), of which: ● €11 million in contributions paid to fund management institutions (2022: €19 million), ● €96 million in benefits paid directly to employees (2022: €102 million); ● a €70 million expense recognized in operating income in 2023 (2022: €107 million), which resulted from the cost of defined benefit plans; ● a €1 million gain recognized in operating income (2022: €116 million, of which €118 million stemming from the French simplification and competitiveness plan announced on January 6, 2021); ● the €95 million in net interest expense on the net defined benefit obligation, recognized outside of operating income (2022: €39 million); ● the €58 million in actuarial losses recorded in 2023 (2022: actuarial gains of €655 million), which corresponded to: ● €93 million in actuarial losses on defined benefit obligations, resulting mainly from decreases in discount rates, ● €35 million in actuarial gains on plan assets, due to the fact that the actual rate of return on plan assets was higher than the discount rate. In addition, contributions paid by the Group to defined contribution plans amounted to €256 million in 2023, up €3 million on 2022.
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