Electrolux 2005 Annual Report Download - page 64

Notes
60 Electrolux Annual Report 2005
Amounts in SEKm, unless otherwise stated
Note 9 Financial income and expenses
Group Parent Company
2005 2004 2005 2004
Financial income
Interest income
From subsidiaries — — 593 422
From others 233 580 36 106
Dividends
From subsidiaries — — 2,151 3,891
From others 3 3 3 9
Other financial income 4 — — —
Total financial income 240 583 2,783 4,428
Financial expenses
Interest expenses
To subsidiaries — — –380 –337
To others –986 –1,003 –703 –718
Exchange-rate differences
On loans and forward contracts
as hedges for foreign
net investments — — –615 –101
On other loans and
borrowings, net 42 65 69 66
Other financial expenses –23 — — —
Total financial expenses –967 –938 –1,629 –1,090
Interest income includes income from the Group’s Customer Financ-
ing operations in the amount of SEK 102m (108). Interest expenses to
others (for the Group and the Parent Company) include premiums on
forward contracts intended as hedges for foreign net investments that
have been amortized as interest in the amount of SEK –311m (–327).
Note 10 Taxes
Group Parent Company
2005 2004 2005 2004
Current taxes –1,016 –1,305 423 419
Deferred taxes –436 117 –120 15
Other — –5 — —
Total –1,452 –1,193 303 434
Current taxes include reduction of costs of SEK 13m (96) related to
previous years. Deferred taxes include a positive effect of SEK 1m
(26) due to changes in tax rates.
The deferred tax assets in the Parent Company amounted to
SEK 0m (120) and relate to temporary differences. The Group
accounts include deferred tax liabilities of SEK 227m (230) related to
untaxed reserves in the Parent Company.
Theoretical and actual tax rates
Group
% 2005 2004
Theoretical tax rate 34.1 34.4
Losses for which deductions have not been made 26.4 6.5
Non-taxable income statement items, net 4.3 –0.2
Timing differences 4.1 –3.5
Utilized tax loss carry-forwards –10.7 –1.0
Dividend tax 0.5 0.4
Other –13.4 –11.5
Actual tax rate 45.2 27.8
Note 10 continued
The decision to close the Nuremberg factory results in a tax loss
carry-forward of SEK 1,504m, which has not been included in the
computation of deferred tax assets in 2005, but increases the losses
for which deductions have not been made with 20% in 2005.
The theoretical tax rate for the Group is calculated on the basis of
the weighted total Group net sales per country, multiplied by the local
statutory tax rates. There are no major changes in statutory tax rates
during 2005.
Tax loss carry-forwards
As of December 31, 2005, the Group had tax loss carry-forwards and
other deductible temporary differences of SEK 4,854m (4,245), which
have not been included in computation of deferred tax assets. Of
those tax loss carry-forwards will expire as follows:
2005
2006 42
2007 49
2008 117
2009 342
2010 352
And thereafter 17
Without time limit 3,935
Total 4,854
As of December 31, 2005, the Group had deferred taxes recognized
in equity of SEK 0m (26). Deferred taxes recognized in the income
statement amounted to SEK –436m (117). Exchange-rate differences
amounted to SEK 300m (–133).
Changes in deferred taxes
2005 2004
Net deferred tax assets and
liabilities, Dec. 31, 2004 1,669 1,659
Recognized in equity — 26
Liquid funds — 26
Recognized in the income statement –436 117
Fixed assets –121 37
Inventories –30 15
Current receivables –14 6
Provision for pensions and similar commitments –219 38
Other provisions –34 10
Financial and operating liabilities –18 11
Exchange-rate differences 300 –133
Fixed assets 84 –42
Inventories 20 –17
Current receivables 10 –6
Provision for pensions and similar commitments 151 –43
Other provisions 23 –12
Financial and operating liabilities 12 –13
Net deferred tax assets and
liabilities, Dec. 31, 2005 1,533 1,669