Airbus 2015 Annual Report Download - page 213

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 31 l
Notes to the IFRSConsolidatedFinancialStatements
2.
2.4 Group Performance
The following table shows a reconciliation from the theoretical income tax (expense) using the Dutch corporate tax rate to the
reported income tax (expense):
(In € million) 2015 2014
Profit before income taxes 3,375 3,213
* Corporate income tax rate 25.0% 25.0%
Expected (expense) for income taxes (844) (803)
Effects from tax rate differentials (329) (270)
Income from investments/ associates 412 265
Tax credit 66 77
Change of tax rate (90) (47)
Change in valuation allowances 96 (72)
Non-deductible expenses and tax-free income 12 (25)
Other 012
Reported tax (expense) (677) (863)
Changes in valuation allowances represent reassessments of the recoverability of deferred tax assets based on future taxable
profits of certain companies mainly for Airbus in Germany and Airbus Defence and Space in the United Kingdom (“UK”). The
amount of change in valuation allowances of € 96million in 2015 (2014: € -72million) excludes a positive impact of € 1million (2014:
€ 4million) from a change in tax rates which is presented in the line “change of tax rate”.
As the Group controls the timing of the reversal of temporary
differences associated with its subsidiaries (usually referred to as
“outside basis differences”) arising from yet undistributed profits
and changes in foreign exchange rates, it does not recognise
a deferred tax liability. For temporary differences arising from
investments in associates the Group recognises deferred tax
liabilities. The rate used reflects the assumptions that these
differences will be recovered from dividend distribution unless
a management resolution for the divestment of the investment
exists at the closing date. For joint ventures, the Group assesses
its ability to control the distribution of dividends based on
existing shareholder agreements and recognises deferred tax
liabilities accordingly.
As of 31December 2015, the aggregate amount of temporary
differences associated with investments in subsidiaries,
branches and associates and interests in joint arrangements,
for which deferred tax liabilities have not been recognised,
amounts to € 117million.
Companies in deficit situations in two or more subsequent years
recorded a total deferred tax asset balance of € 52million (in
2014: € 115million). Assessments show that these deferred
tax assets will be recovered in future through either (i)own
projected profits, or (ii)profits of other companies integrated in
the same fiscal group (“régime d’intégration fiscale” in France,
“steuerliche Organschaft” in Germany) or (iii)via the “loss
surrender-agreement” in UK.
Deferred taxes on net operating losses (“NOL”), trade tax loss carry forwards and tax credit carry forwards:
(In € million) France Germany Spain UK Other countries 31December
2015
31December
2014
NOL 701 1,945 384 2,984 489 6,503 6,410
Trade tax loss carry forwards 01,955 0 0 0 1,955 2,240
Tax credit carry forwards 0 0 317 0 6 323 398
Tax effect 241 560 413 537 98 1,849 2,080
Valuation allowances (3) (244) (100) (65) (11) (423) (440)
Deferred tax assets on NOL’s
and tax credit carry forwards 238 316 313 472 87 1,426 1,640
NOLs, capital losses and trade tax loss carry forwards are indefinitely usable in France, Germany, UK and in Spain. In Spain,
tax credit carry forwards still expire after 18years. The first tranche of tax credit carry forwards (€ 14million) will expire in 2023.
Financial Statements 2015
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QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
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