HSBC 2010 Annual Report Download - page 297

295
Overview Operating & Financial Review Governance Financial Statements Shareholder Information
reduced the deferred tax assets by US$1.2bn. 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 crystallising deferred tax assets
related to such losses at 31 December 2009 by approximately US$1.6bn. Currently, it has been determined that the
US operations primary tax planning strategy, in combination with other tax planning strategies, provides support for
the realisation of the net deferred tax assets recorded for the US operations. Such determination is based on HSBC’s
business forecasts and assessments as to the most efficient and effective deployment of HSBC capital, most
importantly including the length of time such capital will need to be maintained in the US for purposes of the tax
planning strategy.
The deferred tax assets relating to HSBC’s Brazil operation is US$0.9bn (2009: US$1.3bn) and the Mexican
operation is US$0.7bn (2009: US$0.6bn). On the evidence available, including management projections of income
and the state of the Brazilian and Mexican economies, there will be sufficient taxable income generated by the
businesses to support these assets.
HSBC Holdings
Deferred tax assets/(liabilities)
2010 2009
US$m US$m
Temporary differences:
– short-term timing differences ............................................................................................................ 1 1
– available-for-sale investments ........................................................................................................... (21) (99)
– fair valued assets and liabilities ........................................................................................................ 61 76
– share-based payments ........................................................................................................................ 16 8
57 (14)
11 Dividends
Dividends to shareholders of the parent company
2010 2009 2008
Per
share
US$
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 1,733 838 0.10 1,210 624 0.39 4,620 2,233
In respect of current year:
– first interim dividend ........................... 0.08 1,394 746 0.08 1,384 190 0.18 2,158 256
– second interim dividend ...................... 0.08 1,402 735 0.08 1,385 696 0.18 2,166 727
– third interim dividend .......................... 0.08 1,408 205 0.08 1,391 160 0.18 2,175 380
0.34 5,937 2,524 0.34 5,370 1,670 0.93 11,119 3,596
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 0.508 44 – –
April coupon ............................................... 0.508 45 0.508 45 – –
July coupon ................................................. 0.508 45 0.508 45 0.541 47
September coupon ...................................... 0.450 68 – – – –
October coupon ........................................... 0.508 45 0.508 45 0.508 45
December coupon ....................................... 0.500 76 – – – –
2.982 323 2.032 179 1.049 92
1 HSBC Holdings issued Perpetual Subordinated Capital Securities of US$3,800m in June 2010 and US$2,200m in April 2008, which are
classified as equity under IFRSs.