registration document France Telecom 2009 - Orange.com

financial information concerning the issuer’s assets and liabilities, financial position and profits and losses
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS OF FRANCE TELECOM S.A.
4.9 Exceptional Income and Expense
(in millions of euros)
Note
Year ended
Dec. 31, 2009 Dec. 31, 2008
General Court of the European Union’s ruling of November 30, 2009 8.1 (964)
Senior Employee Part Time Working 6.3.1 (563)
Changes in provisions - disposals and write-offs and other exceptional items (1) 4.8 (398) (276)
Accelerated depreciation (104) (1)
TOTAL (2,029) (277)
(1) The heading “Changes in provisions - disposals and write-offs and other exceptional items” for an amount of (398) million euros comprises mainly the impact of the sale of ASB shares
(net of reversals) for an amount of (263) million euros
4.10 Employee Profit-Sharing
An employee profi t-sharing plan was agreed on November 19,
1997 covering employees of France Telecom S.A. and all its
direct and indirect French subsidiaries. On February 1, 2000,
the agreement was amended to eliminate the impact on the
profi t-sharing plan of certain exceptional items not forming
part of the company’s ordinary business activities. A second
amendment was signed on June 29, 2001.
The provision for the employee profi t-sharing plan amounted to
(234) million euros at December 31, 2009 (versus (267) million
euros at December 31, 2008).
4.11 Income Tax
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The following income taxes were recorded in the income statement:
Year ended
(in millions of euros)
Dec. 31, 2009 Dec. 31, 2008
Income tax benefi t/(charge) net of benefi ts generated by group tax relief and tax loss carry-backs 1,274 1,517
France Telecom S.A. has elected for group tax relief with various
subsidiaries. At December 31, 2009, the tax group comprised
76 companies (including France Telecom S.A.), compared to
60 companies at December 31, 2008.
At December 31, 2009, France Telecom S.A. recognized a net
tax benefi t of 1,274 million euros. This amount mainly comprises
a 1,225 million euros benefi t arising from group tax relief, which
is defi nitively attributable to France Telecom S.A., as the parent
company of the tax group.
France Telecom S.A.’s net future tax relief (excluding tax loss
carryforwards) was 856 million euros at December 31, 2009
(990 million euros at 31 December, 2008), and is primarily linked
to early retirement provisions. This relief will be applied mostly
during the period from 2009 to 2011.
France Telecom S.A.’s tax expense without group tax relief
would have been nil, taking into account tax loss carryforwards
(amounting to 8,810 million euros at December 31, 2009 versus
13,797 million euros at December 31, 2007).
France Telecom S.A. has been subject to tax audits for the
years 2000 to 2006 inclusive.
These audits have been completed and the tax adjustments
which were accepted did not have a material impact on France
Telecom’s 2009 fi nancial statements. As regards the tax
adjustments which were contested, the Company has made its
comments and is awaiting a fi nal decision by the tax authorities.
2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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