_384 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE 2023 consolidated financial statements Note 5. SEGMENT REPORTING Segment information is presented according to the following three operating segments: ● automotive and related distribution; ● road transportation and related distribution; ● specialty businesses and related distribution. The Specialty businesses include the Mining, Beyond-road, Two‑wheel and Aircraft tire activities as well as the Conveyor Belts and High-Tech Materials activities. The Services & Solutions businesses are included for the most part in the “Road transportation and related distribution” segment. Operating segment performance is measured primarily on the basis of sales and segment operating income, calculated according to the same measurement principles used in the consolidated income statement. Segment assets consist of property, plant and equipment, rightof-use assets, goodwill, other intangible assets, finished product inventories and trade receivables. Corporate intangible assets and property, plant and equipment are allocated to each segment in proportion to the amount of their directly attributed assets. The amounts provided to the Group's management in respect of operating segment assets are measured in a manner consistent with the consolidated financial statements. Capital expenditure consists of additions of property, plant and equipment and intangible assets. No operating liabilities are allocated to the segments in the internal report provided to the Group's management. Segment information is as follows: (in € millions) 2023 2022 Automotive and related distribution Road transportation and related distribution Specialty businesses and related distribution Total Automotive and related distribution Road transportation and related distribution Specialty businesses and related distribution Total PROFIT AND LOSS INFORMATION Sales 14,339 6,975 7,029 28,343 14,138 7,462 6,990 28,590 Segment operating income 1,959 456 1,157 3,572 1,711 641 1,044 3,396 As a percentage of sales 13.7% 6.5% 16.5% 12.6% 12.1% 8.6% 14.9% 11.9% SEGMENT ASSETS Goodwill, other intangible assets, PP&E and right-of-use assets 8,125 3,925 6,068 18,118 8,100 3,920 5,359 17,379 Finished product inventories 1,520 814 1,003 3,337 1,708 951 1,129 3,788 Trade receivables 1,867 1,096 887 3,850 1,789 1,328 1,088 4,205 Total segment assets 11,512 5,835 7,958 25,305 11,597 6,199 7,576 25,372 OTHER INFORMATION Capital expenditure 1,234 578 424 2,236 1,150 560 431 2,141 Sales recognized at the time when control of the goods or services is transferred to the customer represented 97.3% of Group sales in 2023 (2022: 97.5%). These sales totaled €27,565 million (2022: €27,873 million). They mainly include sales of tires for the original equipment market and the replacement market, as well as sales of Fenner conveyor belts. In 2023, the amount recognized in sales for performance obligations satisfied over time stood at €778 million, representing 2.7% of total sales for the year (2022: €717 million and 2.5%). This amount corresponds for the most part to revenue derived from commercial fleet tire management contracts and contracts for the supply of telematics services, as described in note 3.8.
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