Financial performance 2024 consolidated financial statements 05 12.1.2 Intangible assets In 2024, additions to intangible assets, amounted to €290 million (2023: €276 million), breaking down as follows: n software: €251 million; n CO2 emission allowances: €12 million; n other: €27 million. Software The net carrying amount of software at December 31, 2024 was €775 million (2023: €704 million). Software is initially recognized at cost, including the cost of acquisition or production and other costs directly attributable to the acquisition or production of the software. Brands and trademarks At December 31, 2024 the net carrying amount of trademarks was €303 million (2023: €294 million), of which €7 million related to trademarks with indefinite useful lives. These amounts correspond mainly to the value of brands and trademarks recognized as part of business combinations. Customer relationships At December 31, 2024, the net carrying amount of customer relationships in the consolidated statement of financial position was €866 million (2023: €602 million). These amounts correspond primarily to the value of customer lists recognized in connection with business combinations (mainly Fenner, Camso and Flex Composite Group). CO2 emission allowances (EU ETS) At December 31, 2024 the net carrying amount of emission allowances was €89 million (2023: €105 million) for 1.8 million tonnes (2023: 2.1 million tonnes). Development costs No tire development costs were capitalized in 2024 or 2023 as the criteria for recognition as intangible assets were not met. To be recognized as an asset, the development costs incurred for a new product or a significant product renewal project must fulfill six criteria. One of these criteria requires the entity to demonstrate the existence of a market for the output of the intangible asset. The existence of a market is demonstrated only when the Group has obtained OEM approval and when the margin generated by the purchase volumes proposed by the manufacturers is in line with Group objectives. In practice, the corresponding development costs are incurred at a stage of the project which is prior to OEM approval. 404 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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