Merck 2014 Annual Report Download - page 203

198 CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
The reconciliation between deferred taxes in the balance sheet and
deferred taxes in the income statement is presented in the follow-
ing table:
€ million 2014 2013
Change in deferred tax assets (balance sheet) 256.5 – 210.2
Change in deferred tax liabilities (balance sheet) –152.9 526.5
Deferred taxes credited / debited to equity –177.4 42.0
Changes in scope of consolidation / currency translation / other changes 295.9 0.7
Deferred taxes (income statement) 222.1 359.0
Tax loss carryforwards were structured as follows:
Dec. 31, 2014 Dec. 31, 2013
€ million Germany Abroad Total Germany Abroad Total
Tax loss carryforwards 8.0 948.4 956.4 3.4 437.4 440.8
thereof:
Including deferred tax asset 3.1 292.5 295.6 0.8 102.5 103.3
Deferred tax asset 0.5 71.5 72.0 0.2 20.6 20.8
thereof:
Excluding deferred tax asset 4.9 655.9 660.8 2.6 334.9 337.5
Theoretical deferred tax asset 0.8 106.5 107.3 0.4 77.5 77.9
The increase in non-German tax loss carryforwards and the higher
deferred tax assets compared to 2013 was mainly the result of the
acquisition of AZ Electronic Materials S.A., Luxembourg.
Deferred tax assets are recognized for tax loss and interest
carryforwards only if for tax loss carryforwards of less than €5.0
million realization of the related tax benefits is probable within
one year, and for tax loss carryforwards of more than €5.0 mil-
lion realization of the related tax benefits is probable within the
next three years.
The vast majority of the tax loss carryforwards either has no
expiry date or can be carried forward for up to 20 years.
The tax loss carryforwards accumulated in Germany for corpora-
tion and trade tax amounted to €8.0 million (2013: €3.4 million).
The additional theoretically possible deferred tax assets
amounted to €107.3 million (2013: €77.9 million).
In 2014, the income tax expense was reduced by €18.5 mil-
lion (2013: €0.4 million) due to the utilization of tax loss carry-
forwards from prior years for which no deferred tax asset had
been recognized in prior periods.