Mercedes 2009 Annual Report Download - page 200

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In 2009 and 2008, the Group recorded additional valuation
allowances on deferred tax assets of foreign subsidiaries. In 2007,
tax expenses were recorded as a result of a valuation allowance
on deferred tax assets related to the deconsolidated Chrysler
activities. These deferred tax assets continued to be allocated
to the Daimler Group, but as a result of the Chrysler transaction,
the conditions for using these deferred taxes had changed.
Furthermore, as a result of the Chrysler transaction, a valuation
allowance on foreign tax credits was required in 2007. In 2009
and 2008, the Group reversed a part of this valuation allowance
due to the conversion of those assets into taxable losses attrib-
utable to the Daimler Group. The resulting tax expenses and ben-
efits are included in the line “change of valuation allowance on
deferred tax assets.”
Tax-free income and non-deductible expenses include all other
effects at foreign and German companies due to tax-free income
and non-deductible expenses, for instance tax-free gains includ-
ed in net periodic pension costs at the German companies and
tax-free results of our equity-method investments. Moreover,
the line also includes the following effects:
In 2009, adjustments regarding transfer pricing risks at our for-
mer investment Chrysler in Canada caused an additional tax
expense. Daimler Group has to account for this obligation. Further-
more, additional tax expenses relating to tax assessments and
estimations for prior years are included.
In 2008 and 2007, Daimler realized a largely tax-free gain due to
the transfer of interest in EADS. Furthermore, in 2007 a largely
tax-free gain was realized on financial transactions to hedge price
risks of EADS shares. The calculated expected income taxes on
the tax-free gains were reversed in 2008 and 2007 in the line
“tax-free income and non-deductible expenses” with an amount
of €34 million and €582 million, respectively.
In respect of each type of temporary difference and in respect of
each type of unutilized tax losses and unutilized tax credits, the
deferred tax assets and liabilities before offset are summarized
as follows:
Deferred tax assets and deferred tax liabilities were offset if the
deferred tax assets and liabilities relate to income taxes levied
by the same taxation authority and if there is the right to set off
current tax assets against current tax liabilities. In the statement
of financial position, the deferred tax assets and liabilities are not
divided into current and non-current.
At December 31,
2008
2009
84
646
659
562
15
117
3,324
5,770
620
1,874
882
751
74
15,378
(3,096)
12,282
(1,598)
(67)
(999)
(3,159)
(132)
(805)
(110)
(257)
(2.851)
(264)
(46)
(270)
(10,558)
1,724
120
559
953
701
2,357
89
3,622
3,703
610
1,729
1,351
552
49
16,395
(3,510)
12,885
(1,406)
(88)
(1,239)
(3,775)
(140)
(1,403)
(158)
(522)
(2,640)
(193)
(48)
(170)
(11,782)
1,103
Intangible assets
Property, plant and equipment
Equipment on operating leases
Inventories
Investments accounted for using the equity method
Receivables from financial services
Other financial assets
Tax loss and tax credit carry forwards
Provisions for pensions and similar obligations
Other provisions
Liabilities
Deferred income
Other
Valuation allowances
Deferred tax assets, gross
Development costs
Other intangible assets
Property, plant and equipment
Equipment on operating leases
Inventories
Receivables from financial services
Other financial assets
Other assets
Provisions for pensions and similar obligations
Other provisions
Taxes on undistributed earnings of
non-German subsidiaries
Other
Deferred tax liabilities, gross
Deferred tax assets, net
in millions of €