Mercedes 2012 Annual Report Download - page 204

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7 | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
In 2012 and 2011, the Group released valuation allowances
on deferred tax assets of foreign subsidiaries. The resulting tax
benefits are included in the line “Change of valuation allow-
ance on deferred tax assets.”
Tax-free income and non-deductible expenses include all
other effects at foreign and German companies relating
to tax-free income and non-deductible expenses, for instance
tax-free gains included in net periodic pension costs at the
German companies and tax-free results of our equity method
investments. Moreover in 2012, the line also includes tax
free gains realized on the sale of EADS shares and tax benefits
relating to tax assessments for prior years.
Deferred tax assets and deferred tax liabilities are offset
if the deferred tax assets and liabilities relate to income taxes
levied by the same taxation authority and if there is the right
to set off current tax assets against current tax liabilities. In the
statement of financial position, the deferred tax assets and
liabilities are presented as shown in table  7.21.
In respect of each type of temporary difference and in respect
of each type of unutilized tax losses and unutilized tax
credits, the deferred tax assets and liabilities before offset
are summarized in table  7. 22 .
7. 21
Deferred tax assets and liabilities
2012 2011
In millions of euros
Deferred tax assets 2,274 2,772
Deferred tax liabilities -1,979 -1,081
Deferred tax assets, net 295 1,691
Split of tax assets and liabilities before offset
At December 31,
2012 2011
In millions of euros
Intangible assets 40 49
Property, plant and equipment 288 453
Equipment on operating leases 1,122 819
Inventories 729 762
Investments accounted for using the
equity method
23
26
Receivables from financial services 280 209
Other financial assets 3,199 3,803
Tax loss and tax credit carryforwards 4,718 4,102
Provisions for pensions and similar obligations 601 642
Other provisions 1,865 2,043
Liabilities 1,402 1,543
Deferred income 836 1,011
Other 280 111
15,383 15,573
Valuation allowances -2,288 -3,516
Deferred tax assets, gross 13,095 12,057
Development costs -2,141 -1,992
Other intangible assets -135 -100
Property, plant and equipment -1,301 -1,192
Equipment on operating leases -4,294 -1,934
Inventories -50 -53
Receivables from financial services -672 -656
Other financial assets -172 -169
Other assets -125 -344
Provisions for pensions and similar obligations -3,548 -3,458
Other provisions -123 -202
Other -239 -266
Deferred tax liabilities, gross -12,800 -10,366
Deferred tax assets, net 295 1,691
7. 2 2