Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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ADJUSTMENTS TO OPERATING INCOME<br />
2004 (in M€) Upstream Downstream Chemicals Corporate <strong>Total</strong><br />
Inventory valuation effect - 487 232 - 719<br />
Restructuring charges - (50) - - (50)<br />
Asset impairment charges - (34) (244) - (278)<br />
Other - - (55) - (55)<br />
<strong>Total</strong> - 403 (67) - 336<br />
ADJUSTMENTS TO NET INCOME<br />
2004 (in M€) Upstream Downstream Chemicals Corporate <strong>Total</strong><br />
Inventory valuation effect - 349 157 - 506<br />
TOTAL’s equity share of special items recorded by Sanofi-Aventis<br />
(dilution in<strong>com</strong>e included) - - - 2,399 2,399<br />
Adjustment related to Sanofi-Aventis merger - - - (113) (113)<br />
Restructuring charges - (31) (112) - (143)<br />
Asset impairment charges (114) (21) (637) - (772)<br />
Gains/(Losses) on sales of assets - - - 53 53<br />
Other (34) (26) (197) 64 (193)<br />
<strong>Total</strong> (148) 271 (789) 2,403 1,737<br />
D) Additional information on impairments<br />
In the Chemicals segment, impairments of assets (property, plant<br />
and equipment and intangible assets) have been recognized for<br />
the year ended December 31, 2006, with an impact of -61 M€ in<br />
operating in<strong>com</strong>e and -40 M€ in net in<strong>com</strong>e, Group share. These<br />
items are identified in the paragraph C above as adjusting items<br />
in heading “Asset impairment charges”.<br />
These impairment losses impact certain Cash Generating Units<br />
(CGU) of the Chemicals segment for which there were indications<br />
that assets may be impaired, due mainly to changes in the<br />
economic environment of their specific businesses. CGUs of the<br />
Chemicals segment are worldwide business units, including<br />
activities or products with <strong>com</strong>mon strategic, <strong>com</strong>mercial and<br />
industrial characteristics.<br />
Appendix 1 – Consolidated financial statements<br />
Notes to the consolidated financial statement<br />
In addition,<br />
9<br />
• the recoverable amount of CGUs has been based on their<br />
value in use, as defined in note 1L to the consolidated financial<br />
statements “Impairment of long-lived assets”;<br />
• future cash flows including specific risks attached to CGU<br />
assets have been discounted using a 8% after tax discount rate.<br />
For the years ended December 31, 2005 and 2004, changes in<br />
the economic environment of certain business units of the<br />
Chemicals segment had triggered the recognition of impairments<br />
of assets for respectively -71 M€ and -244 M€ in operating<br />
in<strong>com</strong>e and -215 M€ and -637 M€ in net in<strong>com</strong>e, Group share.<br />
No reversal of impairment losses has been recognized in 2004,<br />
2005 and 2006.<br />
TOTAL – <strong>Registration</strong> Document 2006 193