Annual report 2004 (English) - PDF 3546K - Imperial Tobacco

108
Altadis Group 2004 Financial Information
Notes to 2004
Consolidated Financial Statements
b) Legal reserve
Under the revised Corporations Law, 10% of the
Parent Company’s income for each year must be
transferred to the legal reserve until the balance of
this reserve reaches at least 20% of capital stock.
The legal reserve can be used to increase capital
provided that the remaining reserve balance does
not fall below 10% of the increased capital stock
amount. Otherwise, until the legal reserve exceeds
20% of capital stock, it can only be used to offset
losses, provided that sufficient other reserves are
not available for this purpose.
c) Revaluation reserve
Altadis, S.A. revalued its tangible fixed assets by
€55,113 thousand pursuant to Royal Decree-Law
7/1996 and paid the single 3% tax on the net
amount of the revaluation.
The balance of the “Revaluation Reserve” account
can be used, free of tax, to offset the recorded
losses of Altadis, S.A. (both prior years’
accumulated losses and current year losses) or
losses which might arise in the future, and to
increase capital stock. From January 1, 2007, the
balance of this account can be taken to
unrestricted reserves, provided that the monetary
surplus has been realized. The surplus will be
deemed to have been realized in respect of the
portion on which depreciation has been taken for
accounting purposes or when the revalued assets
have been transferred or retired from the
accounting records. If this balance were used in a
manner other than that provided for in Royal
Decree-Law 7/1996, it would be subject to tax.
d) Reserves for treasury stock
The Group includes under the “Reserves for
Treasury Stock” caption in the accompanying
consolidated balance sheet the legally required
restricted reserve of €16,188 thousand, equal to
the acquisition cost, net of allowances, of the
Parent Company treasury stock (see Note 8).
e) Reserves at consolidated companies
The detail of the “Reserves at Consolidated
Companies” caption as of December 31, 2004, is
as follows:
Thousands
of Euros
SEITA Subgroup 474,507
Altadis Holdings USA Subgroup 5,531
LOGISTA Subgroup 83,618
Tabacos Canary Islands, S.A. (TACISA) 10,612
Urex Inversiones, S.A. 29,058
CITA, Tabacos de Canarias, S.L. 12,135
Corporación Habanos Subgroup (72,230)
TCI Subgroup 38,226
Other, net 81,952
Total 663,409
The reserves at consolidated companies include the
undistributed earnings at the beginning of the year
of the consolidated companies, net of amortization
of goodwill and other consolidation adjustments.
f) Translation differences
The detail, by consolidated company, of this
account under the “Shareholders’ Equity” caption
as of December 31, 2004, is as follows:
Thousands
of Euros
Corporación Habanos Subgroup (141,089)
Altadis Holdings USA Subgroup (167,657)
Other, net 785
Total (307,961)