Daimler Annual Report 2011 - Alle jaarverslagen

7 | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
8. Interest income and interest expense
Table 7.15 shows the components of interest income
and interest expense.
9. Income taxes
Profit before income taxes is comprised as shown in table
7.16.
Profit before income taxes in Germany includes the income/
loss from investments accounted for using the equity
method if the shares of those companies are held by German
companies.
Table 7.17 shows the components of income taxes.
The current tax expense includes tax benefits at German
and foreign companies of €469 million (2010: €101 million)
recognized for prior periods.
The deferred tax expense is comprised of the components
in table 7.18.
For German companies, in 2011 and 2010, deferred taxes
were calculated using a federal corporate tax rate of 15%,
a solidarity tax surcharge of 5.5% on each year’s federal corporate
taxes, plus a trade tax of 14%. In total, the tax rate
applied for the calculation of German deferred taxes in both
years amounted to 29.825%. For non-German companies,
the deferred taxes at period-end were calculated using the tax
rates of the respective countries.
7.15
Interest income and interest expense
In millions of euros
Interest income
2011 2010
Expected return on pension and other
post-employment benefit plan assets 670 622
Interest and similar income 285 203
955 825
Interest expense
Interest cost for pension and other
post-employment benefit plans -1,029 -1,011
Interest and similar expense -232 -460
-1,261 -1,471
7.16
Profit before income taxes
In millions of euros
2011 2010
German companies 3,976 2,318
Non-German companies 4,473 4,310
7.17
Components of income taxes
8,449 6,628
In millions of euros
2011 2010
Current taxes
German companies -731 -464
Non-German companies -1,213 -1,237
Deferred taxes
German companies -468 -376
Non-German companies -8 123
-2,420 -1,954
7.18
Components of deferred tax expense
In millions of euros
2011 2010
Deferred taxes -476 -253
due to temporary differences 160 1,205
due to tax loss carry forwards and tax credits -636 -1,458
197