Mercedes 2010 Annual Report Download - page 196

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8. Interest income and expense
2010 2009
In millions of euros
Interest income
Expected return on pension and other
post-employment benefit plan assets
622
671
Interest and similar income 203 465
825 1,136
Interest expense
Interest cost for pension and other
post-employment benefit plans
-1,011
-950
Interest and similar expense -460 -971
-1,471 -1,921
9. Income taxes
Profit/loss before income taxes consists of the following:
2010 2009
In millions of euros
Germany 2,318 -2,543
Non-German countries 4,310 245
6,628 -2,298
The profit/loss before income taxes in Germany includes the
income/loss from investments accounted for using the equity
method if the shares of those companies are held by German
companies.
Income taxes are comprised of the following components:
2010 2009
In millions of euros
Current taxes
Germany -464 -423
Non-German countries -1,237 -472
Deferred taxes
Germany -376 883
Non-German countries 123 -334
-1,954 -346
The current tax expense includes tax benefits at German and
foreign companies of €101 million (2009: tax expense of €237
million) recognized for prior periods.
The deferred tax expense (2009: tax benefit) is comprised of the
following components:
2010 2009
In millions of euros
Deferred taxes -253 549
due to temporary differences 1,205 218
due to tax loss carry forwards and tax credits -1,458 331
For German companies, the deferred taxes were calculated using
a federal corporate tax rate of 15%, a solidarity tax surcharge
of 5.5% for each year on federal corporate taxes, plus a trade tax
of 14%. In total, the tax rate applied for the calculation of German
deferred taxes amounted to 29.825%. For non-German companies,
the deferred taxes at period-end were calculated using the tax
rates of the respective countries.