Daimler Annual Report 2011 - Alle jaarverslagen

7.19
Reconciliation of expected income tax expense
to actual income tax
In millions of euros
2011 2010
Expected income tax expense -2,520 -1,977
Foreign tax rate differential -71 -65
Trade tax rate differential 32 38
Tax law changes -35 -22
Change of valuation allowance
on deferred tax assets 182 259
Tax-free income and non-deductible expenses 56 -143
Other -64 -44
Actual income tax expense -2,420 -1,954
7.20
Split of tax assets and liabilities before offset
In millions of euros
At December 31,
2011 2010
Intangible assets 49 81
Property, plant and equipment 453 673
Equipment on operating leases 819 917
Inventories 762 695
Investments accounted for using the
equity method 26 16
Receivables from financial services 209 168
Other financial assets 3,803 3,336
Tax loss and tax credit carry forwards 4,102 4,970
Provisions for pensions and similar obligations 642 607
Other provisions 2,043 2,048
Liabilities 1,543 1,427
Deferred income 1,011 863
Other 111 78
15,573 15,879
Valuation allowances -3,516 -3,578
Deferred tax assets, gross 12,057 12,301
Development costs -1,992 -1,795
Other intangible assets -100 -88
Property, plant and equipment -1,192 -1,066
Equipment on operating leases -1,934 -2,582
Inventories -53 -142
Receivables from financial services -656 -727
Other financial assets -169 -181
Other assets -344 -296
Provisions for pensions and similar obligations -3,458 -2,882
Other provisions -202 -235
Taxes on undistributed earnings
of non-German subsidiaries – -50
Other -266 -319
Deferred tax liabilities, gross -10,366 -10,363
Deferred tax assets, net 1,691 1,938
Table 7.19 includes a reconciliation of expected income
tax expense to actual income tax expense determined using
the applicable German combined statutory rate of 29.825%
(2010: 29.825%).
In 2011 and 2010, the Group released valuation allowances
on deferred tax assets of foreign subsidiaries. The resulting tax
benefits are included in the line “Change of valuation allowance
on deferred tax assets.”
Tax-free income and non-deductible expenses include all
other effects at foreign and German companies relating
to tax-free income and non-deductible expenses, for instance
tax-free gains included in net periodic pension costs at the
German companies and tax-free results of our equity-method
investments. Moreover, in 2010, the line also includes taxfree
gains realized on the sale of Daimler’s equity interest in
Tata Motors.
In respect of each type of temporary difference and in
respect of each type of unutilized tax losses and unutilized
tax credits, the deferred tax assets and liabilities before
offset are summarized in table 7.20.
Deferred tax assets and deferred tax liabilities were offset
if the deferred tax assets and liabilities relate to income
taxes levied by the same taxation authority and if there is
the right to set off current tax assets against current tax
liabilities. In the statement of financial position, the deferred
tax assets and liabilities are not divided into current and
non-current.
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