Ubisoft 2014 Annual Report Download - page 151

Financial statements
2014
146
Deferred tax assets
Taxes on capitalized/non-capitalized losses:
03/31/14
03/31/13
In thousands of euros
Capitalized
losses
Non-
capitalized
losses
TOTAL
Capitalize
d losses
Non-
capitalized
losses
TOTAL
Tax group France
(1)
25,096
441
25,537
-
441
441
Hybride Technologies Inc.
723
723
63
63
Ubisoft Music Publishing Inc.
41
41
82
82
Shanghaï Bi Han
-
82
82
-
-
Ubisoft Nordic A/S
-
-
60
60
Ubisoft Motion Pictures
73
73
97
97
Ubisoft Mobile Games
1,333
1,333
Ubisoft SA (Spain)
-
-
327
327
Ubisoft SPA( Italy)
100
100
398
398
Ubisoft GmbH
740
740
1,203
1,203
Other
245
245
16
16
TOTAL
28,351
523
28,874
2,246
441
2,687
(1)
Deferred tax on accelerated depreciation has been reclassified under loss carryforwards.
Deferred income tax assets are recognized if their recovery is likely, particularly when taxable profit is
expected during the period of validity of the deferred tax assets.
The forecast period used to determine taxes on capitalized losses is 4 to 7 years, a period which is
considered reasonable by management. The entire loss carryforwards of the French tax group over
the past year were therefore capitalized at March 31, 2014.
Because of a transfer price policy implemented by the Group, the distribution companies and
companies fulfilling support functions systematically report operating profits. Similarly, the studios
invoice salaries with a margin that includes their overheads.
The use of tax losses is not limited in time.
Investment tax credits:
03/31/14
03/31/13
Capitalized investment tax credit
51,908
55,959
TOTAL
51,908
55,959
Ubisoft Divertissements Inc. benefits from tax credits contingent upon the generation of taxable
income. These tax credits recoverable on future income taxes have a life of 20 years. The future use
of these tax credits is subject to tax planning at the local level and at the Group level. They are
recognized as assets of the Group since their recoverability horizon is reasonable.
The Group shall ensure that, at each annual accounting period, the deferred tax assets relating to tax
losses and tax credits recoverable only by deduction from future tax, shall be recovered within a
reasonable timeframe based on its forecasts of future taxable income. The assumptions used for tax
planning are consistent with those of the business plans made by management of the Group for the
implementation of impairment testing of intangible assets with indefinite lives.