Financial performance Report of the Managers 05 5.1.4 l) Provisions Provisions and other non-current liabilities rose by €68 million over the year as reported, to €928 million from €860 million at December 31, 2023. Excluding translation adjustments, the €63 million increase was attributable to the recognition in 2024 of new provisions for the restructuring programs announced during the year, which mainly concerned the plants in Cholet and Vannes, France. At the same time, payments out of restructuring provisions set aside in prior years, notably in Germany, were lower than the new provisions written in 2024. 5.1.4 m) Employee benefit obligations Change in the fair value of the net defined benefit obligation (in € millions) Pension plans Other plans 2024 2023 At January 1 1,013 1,408 2,421 2,330 Contributions paid to the funds (8) (8) (16) (11) Benefits paid directly to the beneficiaries (42) (66) (108) (96) Other movements - (3) (3) 3 ITEMS RECOGNIZED IN OPERATING INCOME Current service cost 18 61 79 70 Actuarial (gains) or losses recognized on other long-term benefit plans - 3 3 1 Effect of plan amendments, curtailments or settlements (1) (26) (27) (1) Other items 19 - 19 18 ITEMS RECOGNIZED OUTSIDE OPERATING INCOME Net interest on employee benefit obligations 32 52 84 95 ITEMS RECOGNIZED IN OTHER COMPREHENSIVE INCOME Translation adjustments 8 23 31 (38) Actuarial (gains) or losses 183 (39) 144 58 Unrecognized assets due to the effect of the asset ceiling (3) (3) (6) (8) AT DECEMBER 31 1,219 1,402 2,621 2,421 The net defined benefit obligation recognized at December 31, 2024 stood at €2,621 million, a year-on-year increase of €200 million as reported and of €169 million excluding translation adjustments. The change reflected the following main factors: n the total €124 million in contributions and benefits paid in 2024 (2023: €107 million), of which: l €16 million in contributions paid to fund management institutions (2023: €11 million), l €108 million in benefits paid directly to employees (2023: €96 million); n a €79 million expense recognized in operating income in 2024 (2023: €70 million), which resulted from the cost of defined benefit plans; n the €84 million in net interest expense on the net defined benefit obligation, recognized outside of operating income (2023: €95 million); n the €144 million in actuarial losses recorded in 2024 (2023: actuarial losses of €58 million), which corresponded to: l €309 million in actuarial gains on defined benefit obligations, resulting mainly from increases in discount rates, l €453 million in actuarial losses on plan assets, stemming largely from the buy-in agreement signed with the Aviva insurance company in the United Kingdom, which generated a loss when the assets were transferred. In addition, contributions paid by the Group to defined contribution plans amounted to €288 million in 2024, compared with €256 million in 2023. 344 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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