ArcelorMittal Annual Report 2008

Deferred tax assets not recognized by the Company as of December 31, 2008 were as follows:
Recognized Unrecognized
Total deferred deferred deferred
Gross amount tax assets tax assets tax assets
Tax losses carried forward 11,370 3,557 3,164 393
Tax credits 719 719 424 295
Other temporary differences 15,915 5,018 4,773 245
Total 9,294 8,361 933
ArcelorMittal had unrecognized deferred tax assets relating to tax loss carry forwards and other temporary differences, amounting
to 933 as of December 31, 2008 (1,116 as of December 31, 2007). As of December 31, 2008, most of these temporary differences
relate to tax loss carry forwards attributable to our Operating Subsidiaries in Belgium, Brazil, Luxembourg, Mexico and the United States.
The majority of unrecognized tax losses have no expiration date. The utilization of tax loss carry forwards is, however, restricted to the
taxable income of the subsidiary or tax consolidated group to which it belongs.
At December 31, 2008, based upon the level of historical taxable income and projections for future taxable income over the periods
in which the deductible temporary differences are anticipated to reverse, management believes it is probable that ArcelorMittal
will realize the benefits of the total deferred tax assets of 751 recognized. The amount of future taxable income required to be
generated by ArcelorMittal’s Operating Subsidiaries to utilize the total deferred tax assets is approximately 2,540. For each of the
years ended December 31, 2007 and 2008, these Operating Subsidiaries generated approximately 29% and 62%, respectively,
of the Company’s income before tax of 14,888 and 11,537, respectively. Historically, the Company has been able to generate taxable
income in sufficient amounts to permit it to utilize tax benefits associated with net operating loss carry forwards and other deferred
tax assets that have been recognized in its consolidated financial statements. However, the amount of the deferred tax asset considered
realizable could be adjusted in the future if estimates of taxable income are revised.
In 2007, ArcelorMittal has recorded approximately 35 of deferred income tax liabilities on the undistributed earnings of its foreign
subsidiaries for income taxes due if these earnings would be distributed. There was no material change to these liabilities as of
December 31, 2008. Investments in our subsidiaries are not expected to reverse in the foreseeable future and therefore capital gains
are not anticipated. The aggregate amount of deferred tax liabilities relating to investments in subsidiaries, branches and associates
and investments that is not recognized is approximately 892.
Tax loss carry forward
At December 31, 2008, the Company had total estimated net tax loss carry forwards of 11,370.
Such amount includes net operating losses of 2,527 primarily related to Operating Subsidiaries in Canada, Mexico, Romania, Spain and
the United States, which expire as follows:
Year expiring Amount
2009 17
2010 40
2011 85
2012 35
2013 17
Thereafter 2,333
Total 2,527
The remaining tax loss carry forwards of 8,843 are indefinite and primarily attributable to the Company’s operations in Belgium,
Brazil, France, Luxembourg and Trinidad and Tobago.
Tax loss carry forwards are denominated in the currency of the countries in which the respective subsidiaries are located and operate.
Fluctuations in currency exchange rates could reduce the U.S. dollar equivalent value of these tax loss carry forwards in future years.
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2008 Consolidated Financial Statements continued
ArcelorMittal Annual Report 2008