registration document France Telecom 2009 - Orange.com

20 CONSOLIDATED
financial information concerning the issuer’s assets and liabilities, financial position and profits and losses
STATEMENTS
France Telecom Group tax proof
The applicable income tax rate in France is 33.33%, plus an
additional contribution which increases it to 34.43%.
The reconciliation between the theoretical tax calculated based
on the French statutory tax rate and effective income tax
expense on continuing operations is as follows:
(in millions of euros) 2009 2008 2007
Net income of continuing operations before tax 5,560 6,988 7,893
Impairment of goodwill 449 270 26
Net income from continuing operations before tax and impairment
of goodwill 6,009 7,258 7,919
Statutory income tax rate 34.43% 34.43% 34.43%
Theoretical tax (2,069) (2,499) (2,727)
Share of profi ts (losses) of associates 8 (73) 1
Recognition of share-based compensation (3) (9) (30)
Reassessment of deferred tax assets (200) (268) 809
Difference in tax rates 239 309 267
Change in local tax rate - (3) 84
Capital gains and losses of equity investments not taxable
at the current tax rate - 1 283
Permanent differences (270) (357) 68
Effective tax on continuing operations (2,295) (2,899) (1,245)
Effective tax on assets held for sale (43) 107 (85)
10.2 Corporate income tax on components of other comprehensive income
(in millions of euros)
December 31, 2009 December 31, 2008 December 31, 2007
Gross
amount
Tax
Net
amount
Gross
amount
Tax
Net
amount
Gross
amount
Tax
Net
amount
Assets available for sale 32 - 32 (54) - (54) (38) - (38)
Cash fl ow hedges (173) 62 (111) 405 (145) 260 319 (108) 211
Net investment hedges - - - (26) - (26) - - -
Translation adjustments (136) - (136) (1,001) - (1,001) 255 - 255
Components of comprehensive
income of associates (5) - (5) - - - - - -
TOTAL (282) 62 (220) (676) (145) (821) 536 (108) 428
400
2009 REGISTRATION DOCUMENT / FRANCE TELECOM