Food Lion 2012 Annual Report Download - page 145

DELHAIZE GROUP FINANCIAL STATEMENTS’12 // 143
The following reconciles Delhaize Group’s Belgian statutory income tax rate to the Group’s effective income tax rate:
2012(1)
2011
2010
Belgian statutory income tax rate
34.0%
34.0%
34.0%
Items affecting the Belgian statutory income tax rate:
Different statutory tax rates in jurisdictions outside Belgium
25.7(2)
(1.2)
1.0
Non taxable income
(25.9)
(0.6)
(0.8)
Non deductible expenses
21.6
1.2
1.0
Tax charges on dividend income
6.5
0.7
-
Deductions from taxable income(3)
(35.6)
(10.0)
(5.9)
(Recognition) non recognition of tax assets
18.7
0.4
0.3
Taxes related to prior years recorded in current year
(40.5)(4)
-
(0.5)
Changes in tax rate or imposition of new taxes
10.7
0.1
0.5
Other
2.4
0.1
0.2
Effective tax rate
17.6%
24.7%
29.8%
______________
(1) The weight of each item affecting the Belgian statutory income tax rate is higher in 2012 due to the lower profit before tax.
(2) The increase is mainly due to tax losses incurred in the Balkan countries at a lower tax rate.
(3) Deductions from taxable income relate to notional interest deduction in Belgium and tax credits in other countries.
(4) Primarily related to the resolution of several tax matters in the U.S. which resulted in the recognition of an income tax benefit.
The aggregated amount of current and deferred tax charged or (credited) directly to equity was as follows:
(in millions of €)
2012
2011
2010
Current tax
2
(1)
(2)
Deferred tax
(5)
(9)
5
Total tax charged (credited) directly to equity
(3)
(10)
3
Delhaize Group has not recognized income taxes on undistributed earnings of its subsidiaries and proportionally consolidated
joint venture as the undistributed earnings will not be distributed in the foreseeable future. The cumulative amount of
undistributed earnings on which the Group has not recognized income taxes was approximately €4.1 billion at December 31,
2012, €4.2 billion at December 31, 2011 and €3.6 billion at December 31, 2010.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred
income taxes relate to the same fiscal authority. Deferred income taxes recognized on the balance sheet were as follows:
(in millions of €)
December 31,
2012
2011(1)
2010
Deferred tax liabilities
570
624
543
Deferred tax assets
89
97
95
Net deferred tax liabilities
481
527
448
______________
(1) 2011 was revised to reflect the effects of the completion in the second quarter of 2012 of the purchase price allocation of the Delta Maxi acquisition.