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