Reebok 2013 Annual Report Download - page 234

adidas Group
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2013 Annual Report
Consolidated Financial Statements
230
2013
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04.8
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Notes
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Notes to the Consolidated Income Statement
The movement of deferred taxes are as follows:
Movement of deferred taxes
(€ in millions) 2013 2012
Deferred tax assets, net as at January 1 160 54
Deferred tax income 14 80
Change in consolidated companies 1) 0 3
Change in deferred taxes attributable to effective portion of qualifying hedging
instruments recorded in other comprehensive income 2) (1) 23
Currency translation differences (24) (9)
Change in deferred taxes attributable to remeasurements of defined benefit plans
recorded in other comprehensive income 3) (1) 9
Deferred tax assets, net as at December 31 148 160
1) See Note 03.
2) See Note 28.
3) See Note 23.
Gross Group deferred tax assets and liabilities after valuation allowances, but before appropriate offsettings, are
attributable to the items detailed in the table below:
Deferred taxes
(€ in millions) Dec. 31, 2013 Dec. 31, 2012
Non-current assets 145 135
Current assets 166 132
Accrued liabilities and provisions 198 260
Accumulated tax loss carry-forwards 69 75
Deferred tax assets 578 602
Non-current assets 303 374
Current assets 72 44
Accrued liabilities and provisions 55 24
Deferred tax liabilities 430 442
Deferred tax assets, net 148 160
Deferred tax assets are recognised only to the extent that the realisation of the related benefit is probable. For
the assessment of probability, in addition to past performance and the respective prospects for the foreseeable
future, appropriate tax structuring measures are also taken into consideration.
Deferred tax assets for which the realisation of the related tax benefits is not probable decreased on a
currency-neutral basis from € 508 million to € 435 million for the year ending December 31, 2013. These amounts
mainly relate to tax losses carried forward and unused foreign tax credits of the US tax group, which begin to
expire in 2026. The remaining unrecognised deferred tax assets relate to subsidiaries operating in markets where
the realisation of the related tax benefit is not considered probable.
The Group does not recognise deferred tax liabilities for unremitted earnings of non-German subsidiaries
to the extent that they are expected to be permanently invested in international operations. These earnings, the
amount of which cannot be practicably computed, could become subject to additional tax if they were remitted as
dividends or if the Group were to sell its shareholdings in the subsidiaries.