Reebok 2014 Annual Report Download - page 240

adidas Group
/
2014 Annual Report
Consolidated Financial Statements
236
2014
/
04.8
/
Notes
/
Notes to the Consolidated Income Statement
Interest expense on financial instruments measured at amortised cost mainly includes interest on borrowings
and effects from using the ‘effective interest method’.
Interest expense on other provisions and non-financial liabilities particularly includes effects from
measurement of other provisions at present value and interest on non-financial liabilities such as tax payables.
Other financial expenses include impairment losses on other financial assets amounting to € 2 million for the
year ending December 31, 2014 (2013: € 3 million).
Information regarding the Group’s available-for-sale investments, borrowings and financial instruments is
also included in these Notes
/
SEE NOTES 06, 15, 18 AND 29.
adidas AG and its German subsidiaries are subject to German corporate and trade taxes. For the years ending
December 31, 2014 and 2013, the statutory corporate income tax rate of 15% plus a surcharge of 5.5% thereon is
applied to earnings. The municipal trade tax is approximately 11.4% of taxable income.
For non-German subsidiaries, deferred taxes are calculated based on tax rates that have been enacted or
substantively enacted by the closing date.
Deferred tax assets and liabilities
Deferred tax assets and liabilities are offset if they relate to the same fiscal authority. The following deferred tax
assets and liabilities, determined after appropriate offsetting, are presented in the consolidated statement of
financial position:
Deferred tax assets/liabilities
(€ in millions) Dec. 31, 2014 Dec. 31, 2013
Deferred tax assets 577 486
Deferred tax liabilities (390) (338)
Deferred tax assets, net 186 148
The movements of deferred taxes are as follows:
Movement of deferred taxes
(€ in millions) 2014 2013
Deferred tax assets, net as at January 1 148 160
Deferred tax income 43 14
Change in consolidated companies 1) (1) 0
Change in deferred taxes on assets classified as held for sale 2) 27 0
Change in deferred taxes attributable to remeasurements of defined benefit plans
recorded in other comprehensive income 3) 21 (1)
Change in deferred taxes attributable to effective portion of qualifying hedging
instruments recorded in other comprehensive income 4) (37) (1)
Currency translation differences (13) (24)
Deferred tax assets, net as at December 31 186 148
1) See Note 04.
2) See Note 03 and 11.
3) See Note 24.
4) See Note 29.
34
Income taxes