5 _459 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE Financial statements Note 14. EXTERNAL CHARGES (in € thousands) 2023 2022 Outsourcing expenses (1,062,405) (155,403) Research and development expenses (398,887) (357,991) Miscellaneous (45,699) (42,715) TOTAL (1,506,991) (556,109) The increase in outsourcing expenses reflects the application of the new transfer pricing policy (note 2.1). Note 15. INCOME TAX Compagnie Générale des Établissements Michelin is the parent company of a tax group that also comprises 17 French subsidiaries that are at least 95%-owned directly or indirectly. Under the terms of the group relief agreement, each subsidiary in the tax group continues to record the income tax expense that it would have paid if it had been taxed on a stand-alone basis and any group relief is recorded at the level of Compagnie Générale des Établissements Michelin. Income tax recognized in the Company's financial statements comprises the following: (in € thousands) 2023 2022 Current tax due by the Company on a stand-alone basis (28,690) (31,777) Group relief 17,455 74,545 Other (7,877) 5,468 TOTAL (19,112) 48,236 Note 16. SHARE-BASED PAYMENTS Share grants and performance share plans Changes in the number of share grants and performance share rights outstanding are as follows: 2023 2022(1) At January 1 5,949,494 5,214,472 Granted 3,257,003 1,899,470 Forfeited (1,061,855) (714,388) Exercised (840,812) (450,060) AT DECEMBER 31 7,303,830 5,949,494 (1) Data for 2022 have been restated to reflect the four-for-one stock split on June 16, 2022. Excellence Plan In November 2023, 2,679,985 rights to performance shares were granted to Group employees and the Managers. The rights are subject to a four-year vesting period ending in November 2027 without any lock-up period. The shares will vest at the end of this period if the performance objectives are met (stock market performance, environmental performance of manufacturing operations, employee engagement rate, sales growth and ROCE).
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