_404 2023 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN 5 FINANCIAL PERFORMANCE 2023 consolidated financial statements The change in the net deferred tax asset over the period is as follows: (in € millions) 2023 2022 At January 1 89 248 Translation adjustments (1) 6 Deferred tax benefit/(expense) (note 11) 342 (22) Tax recognized in other comprehensive income 20 (139) Changes in scope of consolidation (15) (3) Other - (1) AT DECEMBER 31 435 89 In 2023, the increase in the net deferred tax asset was due mainly to the restructuring announced during the year and the increase in employee benefit obligations. The deferred income tax recognized in other comprehensive income is as follows: (in € millions) December 31, 2023 December 31, 2022 Post-employment benefits 113 95 Unconsolidated equity investments and other financial instruments (37) (39) Financial instruments 2 2 TOTAL DEFERRED TAX RECOGNIZED IN OTHER COMPREHENSIVE INCOME 78 58 In 2023, the change in deferred tax recognized in other comprehensive income primarily reflects increased pension benefit obligations. Unrecognized deferred tax assets break down as follows: (in € millions) December 31, 2023 December 31, 2022 Deductible temporary differences 111 55 Tax losses: of which expiring in less than one year 3 15 of which expiring between one to five years 38 20 of which expiring in more than five years 23 17 of which evergreen 420 427 Total tax losses 484 479 Tax credits 9 9 TOTAL UNRECOGNIZED DEFERRED TAX ASSETS 604 543 Unrecognized deferred tax assets in the amount of €604 million mainly concern the tax losses of certain companies in the United Kingdom and India that are not certain of generating sufficient taxable profit in the coming years and that are subject to certain restrictions concerning the use of the losses: ● in the United Kingdom, tax losses can be carried forward indefinitely but only 50% of the loss can be set off against taxable profit in excess of £5 million; ● in India, operating tax loss carryforwards expire after eight years but there is no limit on the utilization of the remaining balance.
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