05 Financial performance 2024 consolidated financial statements Note 7 OTHER OPERATING ITEMS 7.1 Other operating income and expenses ACCOUNTING POLICIES Other operating income and expenses records items that are not taken into account by management when measuring the performance of the operating segments due to their nature or their significant, unusual or abnormal characteristics. They include, in particular, the costs related to the reorganization and adaptation of activities and those related to major litigation (and the adjustments in the corresponding provisions), as well as impairment of goodwill and acquisition-related costs. The amortization of trademarks and customer relationships recognized as part of a business combination is also included in "Other operating income and expenses". They also include gains and losses on disposals and changes in impairment of property, plant and equipment and intangible assets, acquisition price adjustments, as well as gains and losses related to post-employment benefit plan amendments, curtailments or settlements. Other operating income and expenses are detailed in the table below: (in € millions) 2024 2023 Amortization of acquired trademarks and customer relationships (102) (91) Reorganizations and adaptation of activities (382) (522) Impairment of non-current assets (174) (272) Employee benefit obligations (19) (4) Other (70) (31) OTHER OPERATING INCOME AND EXPENSES (747) (920) 7.1.1 Amortization of acquired trademarks and customer relationships Amortization of intangible assets recognized in the course of a business combination amounted to €102 million in 2024 (2023: €91 million): n €33 million related to amortization of brands or trademarks (2023: €39 million); n €69 million related to amortization of customer relationships (2023: €52 million). 7.1.2 Reorganizations and adaptation of activities The amount reported for reorganizations and adaptation of activities in 2024 mainly comprises: n €251 million in closure costs for the Vannes and Cholet plants in France (note 3); n a €38 million increase in the estimated closure costs for the Ardmore site in the United States and the Trier, Karlsruhe and Hamburg sites in Germany; n adaptation projects in China and Poland for €34 million. The €522 million cost recorded in 2023 corresponded mainly to the recognition of provisions for closure costs at the Karlsruhe, Hamburg and Trier sites in Germany for €316 million and at the Ardmore site in the United States for €122 million. Impairment losses recognized on assets affected by reorganization projects are presented below. 7.1.3 Impairment of non-current assets Impairment losses were recognized in 2024 on assets concerned by the restructuring of the Vannes and Cholet plants in France for €81 million and the adaptation of activities in China and Poland for €45 million. In 2023, recognized impairment losses mainly concerned the restructuring of the Ardmore site in the United States and the German sites, for a total of €168 million. The Group also booked €92 million in impairment losses on property, plant and equipment, mainly on its plantations. 7.1.4 Employee benefit obligations No material events occurred in 2024 or 2023. 7.1.5 Other No individually material events occurred in 2024. In 2023, €68 million was recognized in other operating income on reclassification of Watèa as a joint venture and an additional loss of €54 million was recognized in other operating expense on disposal of the Group’s Russian operations. 375 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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