HSBC 2009 Annual Report Download - page 412

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 11, 12 and 13
410
investments. No amount is disclosed for the unrecognised deferred tax or the 2009 temporary differences associated
with such investments, as it is impracticable to determine the amount of income taxes that would be payable when
any temporary differences reverse.
Of the total net deferred tax assets of US$8.6 billion at 31 December 2009 (2008: US$7.0 billion), US$5.1 billion
(2008: US$5.1 billion) arose in respect of HSBC’s US operations where there has been a recent history of losses.
Management’s analysis of the recognition of these deferred tax assets significantly discounts any future expected
profits from the US operations and relies to a greater extent on capital support to the US operations from HSBC,
including tax planning strategies implemented in relation to such support. US legislation enacted on 6 November
2009 allowed for an extended carryback period for certain federal tax net operating losses. This had the effect of
reducing the net deferred tax assets related to such losses at 31 December 2009 by approximately US$1.6 billion.
Management’s updated analysis is consistent with the assumption that it is probable that there will be sufficient
taxable income to support the resulting deferred tax assets that have been recognised in respect of the US operations
as at 31 December 2009.
The deferred tax asset relating to HSBC’s Brazil operation is US$1.3 billion (2008: US$0.9 billion). On the evidence
available, including management projections of income and the state of the Brazilian economy, there will be
sufficient taxable income generated by the business to support this asset.
HSBC Holdings
Deferred tax asset/(liability)
2009 2008
US$m US$m
Temporary differences:
– short-term timing differences ........................................................................................................... 1 1
– fair valued assets and liabilities ....................................................................................................... (23) 30
– share-based payments ....................................................................................................................... 8 11
(14) 42
12 Dividends
Dividends to shareholders of the parent company were as follows:
2009 2008 2007
Per
share
US$
Total
US$m
Settled
in scrip
US$m
Per
share
US$
Total
US$m
Settled
in scrip
US$m
Per
share
US$
Total
US$m
Settled
in scrip
US$m
Dividends declared on ordinary shares
In respect of previous year:
– fourth interim dividend ....................... 0.10 1,210 624 0.39 4,620 2,233 0.36 4,161 2,116
In respect of current year:
– first interim dividend ........................... 0.08 1,384 190 0.18 2,158 256 0.17 1,986 712
– second interim dividend ...................... 0.08 1,385 696 0.18 2,166 727 0.17 1,997 912
– third interim dividend .......................... 0.08 1,391 160 0.18 2,175 380 0.17 2,007 614
0.34 5,370 1,670 0.93 11,119 3,596 0.87 10,151 4,354
Quarterly dividends on preference
shares classified as equity
March dividend ........................................... 15.50 22 15.50 22 15.50 22
June dividend .............................................. 15.50 23 15.50 23 15.50 23
September dividend .................................... 15.50 22 15.50 22 15.50 22
December dividend ..................................... 15.50 23 15.50 23 15.50 23
62.00 90 62.00 90 62.00 90
Quarterly coupons on capital
securities classified as equity1
January coupon ........................................... 0.508 44 – – – –
April coupon ............................................... 0.508 45 – – – –
July coupon ................................................. 0.508 45 0.541 47 – –
October coupon ........................................... 0.508 45 0.508 45 – –
2.032 179 1.049 92 – –
1 During April 2008, HSBC Holdings issued US$2,200 million of Perpetual Subordinated Capital Securities, which are classified as
equity under IFRSs.