2001 Annual Report - Unibail-Rodamco

CONSOLIDATED FINANCIAL STATEMENTS
Note 20 - Goodwill on acquisitions
At year-end 2000, this item corresponded to the amortization of Espace Expansion’s goodwill of € 18.7m over 20 years. After allocating the
first consolidation difference for Paris Expo, recognized within the one-year time limit following the acquisition, property services activities
have been valued at € 59.8m, amortized over 26 years (i.e. the residual life of the concession granted by the City of Paris).
Net balance sheet
Goodwill on acquisitions Gross value Amortization value at year-end 2001
Doria (Espace Expansion) 18.7 -6.4 12.3
Paris Expo 59.8 -4.2 55.6
Other 2.2 -0.6 1.6
Total 80.7 -11.2 69.5
Note 21 - Corporate income tax
1999 2000 2001
Current income tax - 5.9 -7.0
Deferred income tax -1.4 -36.0 -23.9
Total income tax -1.4 -41.9 -30.9
• Income tax due in 2000 and 2001 related to subsidiaries that are not part of the tax consolidation group (Paris Expo and Nice Etoile) and,
to a lesser extent, fixed annual tax charges.
• Deferred taxes are determined according to the rules in §3-7.
Due to the difficulty in establishing a reliable schedule for the use of Unibail’s tax credits and liabilities, they have not been discounted.
The tax charge booked can also be broken down as follows:
Tax charge booked Taxable basis Tax Effective rate
Net capital gains on sales of properties and exceptional items 22.2 -8.1 36.4%
Use of tax-loss carry forwards 17.0
Value of deferred tax assets 3.2
Provision for disputed tax adjustment -2.6
Recurring profit 130.1 -40.4 31.1%
Total 152.3 -30.9 20.3%
Tax calculation:
The following table shows the reconciliation of income tax computed at the domestic statutory rates (36.43%) to income tax expense
(20.3%).
Reported pre-tax profit 152.3
Income tax computed at the domestic statutory rates (36.43%) -55.5
Difference between effective tax charge and theoretical tax charge:
Use of tax-loss carry forwards not valued on the balance sheet 17.0
Impact of changes in statutory tax rate on the valuation of Unibail’s parent company tax loss carry forwards 0.7
Permanent differences
Tax-exempt finance leasing income 2.4
Goodwill amortization -1.4
Tax provision (Omnifinance) -2.6
Temporary differences not covered by a differed tax charge 2.5
Impact of tax in fiscally transparent fully consolidated companies (1) 4.2
Other 1.7
Effective tax charge -30.9
Effective tax rate 20.3%
(1)
The tax expense of fiscally transparent companies is incurred directly by the partners according to their share in said-company.
Note 22 - Minority interests
Minority interests mainly comprise the share of profits from 'Les Quatre Temps' shopping center (€ 6.5m), the Forum des Halles (€ 2.3m) and
Tanagra-Coeur Défense (€ 3.1m).
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Note 23 - Diluted net profit per share (Group share)
Diluted net profit per share (Group share) is calculated based on the ‘share buy-back’ method (in accordance with Notice No.25 of the OEC
and IAS 33 standards). Based on this method, it is assumed that the funds raised from the exercise of warrants or options will initially be used
to buy back the company’s shares at market prices.This market price corresponds to Unibail’s average monthly share price, weighted according
to its traded volumes. The theoretical number of shares that the company could purchase at the market price is deducted from the total
number of shares resulting from the exercise of the shares and warrants. This figure is added to the average number of shares outstanding and
used as the denominator.