Registration document 2007 - Total.com

In 2006, gains and losses on sales of assets are mainly related to
sales of financial assets. The “Other” heading is comprised of:
• 188 M€ of restructuring charges in the Chemicals segment;
• 32 M€ increase related to various antitrust investigations as
described in the note 30 to the consolidated financial
statement “Other risks and contingent liabilities”.
8) Other financial income and expense
Appendix 1 – Consolidated financial statements
Notes to the consolidated financial statement
9
In 2004, the deterioration of the economic cycle generated
impairment losses on intangible assets in the Chemicals
segment. As a consequence, an impairment loss of 118 M€ had
been recorded in 2004 to adjust the carrying amount of the
intangible assets to their recoverable amount. The gains (losses)
on sales of assets included a pre-tax dilution gain on the Sanofi-
Aventis merger of 2,969 M€ in 2004. The “Other” heading mainly
included early retirement plans and restructuring costs for 18 M€,
and other allowances for various litigation reserves for 46 M€.
As of December 31 (in M€) 2006 2005 2004
Dividend income on non-consolidated companies 237 164 154
Capitalized financial expenses 236 101 34
Other 119 131 133
Other financial income 592 396 321
Accretion of asset retirement obligation (182) (162) (143)
Other (95) (98) (84)
Other financial expense (277) (260) (227)
9) Income taxes
Since 1966, the Group has been taxed in accordance with the
consolidated income tax treatment approved on a renewable
basis by the French Ministry of Economy, Finance and Industry.
The renewal of the agreement has been granted for the period
2005-2007.
French income and foreign withholding taxes do not provide for
the temporary differences between the financial statement
carrying amount and tax bases of investments in foreign
subsidiaries which are considered to be permanent investments.
Undistributed earnings of foreign subsidiaries considered to be
reinvested indefinitely amounted to 21,717 M€ as of December
31, 2006. The determination of the tax effect relating to such
reinvested income is not reliably feasible.
In addition, no provision for income taxes on unremitted earnings
(approximately 8,491 M€) of the Group’s French subsidiaries has
been made since the remittance of such earnings would be tax
exempt for the subsidiaries in which the Company owns 95% or
more of the outstanding shares.
TOTAL – Registration Document 2006 195