5 _387 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE 2023 consolidated financial statements 9.2 Reorganizations and adaptation of activities 9.2.1 Year ended December 31, 2023 On October 26, the Group announced its intention to wind down passenger car tire production activities at its Ardmore plant in the United States. The wind-down, which impacts approximately 1,400 people, should be completed by the end of 2025. At December 31, a provision expense of €194 million was recorded, primarily covering closure costs of €122 million and impairment losses of €72 million (Impairment of non-current assets presented in note 9.3). On November 28, the Group announced its decision to cease production at the Karlsruhe and Trier sites, as well as the manufacture of new tires and semi-finished products at Homburg. The sites concerned mainly produce truck tires. Michelin will also transfer the Customer Contact Center from Karlsruhe to Poland. A total of 1,532 employees will be impacted by these operations, which should be completed by the end of 2025. At December 31, a provision expense of €412 million was recorded, covering closure costs of €316 million and impairment losses of €96 million (Impairment of non-current assets presented in note 9.3). 9.2.2 Year ended December 31, 2022 The net amount set aside in provisions in 2022 for the competitiveness plan’s third Collective Settlement Agreement (Accord de Rupture Conventionnelle Collective 3) in France amounted to €24 million. In addition, various provisions totaling €49 million were set aside to further improve the Group's manufacturing and service competitiveness in a number of countries, including the United States, Italy and Germany. 9.3 Impairment of non-current assets 9.3.1 Year ended December 31, 2023 Impairment losses of €168 million were recognized on assets concerned by the restructuring of the Ardmore production plant in the United States and the German plants (note 9.2.1). In addition, impairment losses were recognized on: ● intangible assets, for €12 million; ● property, plant and equipment, for €92 million, mainly on plantations. 9.3.2 Year ended December 31, 2022 This amount includes impairment losses on intangible assets for €21 million and on property, plant and equipment for €15 million. 9.4 Employee benefit obligations No material events occurred in 2023 or 2022. 9.5 Other 9.5.1 Year ended December 31, 2023 The amount reported under this caption includes income of €68 million corresponding to the fair value adjustment of Watèa's net assets retained by the Group (note 4.1.3), a loss of €54 million corresponding to the additional loss recognized on disposal of the Group’s operations in Russia and consisting for the most part of the translation reserve reclassified to the income statement (note 4.1.5), and a cost of €24 million relating to Group perimeter changes. 9.5.2 Year ended December 31, 2022 The amount of €176 million mainly included impairment losses and provisions related to the Group’s operations in Russia, for €139 million (note 4.1.5) and a €13 million provision for the restructuring of Fenner’s conveyor belt business in the United Kingdom which is heavily exposed to the Russian market.
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