Loreal 2011 Annual Report Download - page 159

157REGISTRATION DOCUMENT − L’ORÉAL 2011
2011 parent company Financial Statements
5
Notes to the parent company  nancial statements
NOTE8 Income tax
The tax income for the year breaks down as follows:
€ millions 12.31.2011 12.31.2010 12.31.2009
Tax on profit before tax and exceptional items 37.6 90.0 95.2
Tax on exceptional items and employee Profit Sharing 13.7 14.6 11.3
Other - - 8.4
Income tax 51.3 104.6 114.9
NOTE9 Increases or reductions in future tax liabilities
€ millions
12.31.2009 12.31.2010 Changes 12.31.2011
Asset Liability Asset Liability Asset Liability Asset Liability
Temporary differences
Regulated provisions - 17.0 - 18.4 6.9 10.7 - 22.2
Temporarily non-deductible charges 58.6 - 44.4 - 26.4 19.5 51.3 -
Charges deducted (or revenue taxed)
fortax purposes but not yet recognised - 2.3 - 1.3 7.3 8.3 - 2.3
Temporarily non-taxable revenue
Deductible items
Tax losses, deferred items
Potentially taxable items
Special reserve for long-term capital gains - 176.8 - 176.8 - - - 176.8
The figures have been calculated taking account of 3.3% social contribution which increases income tax at both statutory and
reduced tax rates.
NOTE10 Research costs
Amounts invested in Research activities in2011 totalled €619.4million compared with €596.0million in2010 and €537.5million
in2009.
The tax income booked by L’OréalS.A. in2011 takes account
of savings of €72.8million resulting from tax consolidation
(€117.9million in2010 and €128.5million in2009). These
savings mainly result from the utilisation of tax losses booked
by companies in the tax group.
The application of tax legislation led to an increase of
€50.3million in net profit for 2011, mainly reflecting the net
charge to regulated provisions along with tax credits on research,
corporate sponsorship activities and employee Profit Sharing .
Income tax has been calculated taking account of the
additional 5% contribution, in accordance with the 2011
Amended Finance law.