THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

6.8.Financial Result
T€
Interest income:
from bank deposits
from derivatives
Other interest income
Other finance income
Finance income
Interest expense on bank
loans and overdrafts
Other interest expense
Foreign currency losses/gains,
primarily from external and internal
group-lending
Change in value of financial assets
on the basis of effective performance
evaluation at fair value
Other financial expenses
Financial expenses
Financial results
Changes in the fair value measurement of derivative financial instruments
(interest swaps) impacted results by a total of € -1.7
million (2007: € -1.4 million).
Other interest expenses amounting to € -15.0 million (2007: € -
14.2 million) include unwinding of discount on pension liabilities
amounting to € 10.7 million (2007: € 9.9 million).
6.9.Income Taxes
T€
Current tax expense
Deferred tax income/expense:
from loss carry forward
from temporary differences
Subtotal deferred tax
Income tax expense
Annual Report 2008 Symrise AG 119
2007
1,004
5,113
688
119
6,924
-31,932
-14,152
-14,534
-1,397
-410
-62,425
-55,501
2007
-39,812
-33,290
30,276
-3,014
-42,826
2008
653
4,396
869
152
6,070
-32,122
-15,001
-9,102
-1,695
-324
-58,244
-52,174
2008
-33,949
-15,144
4,697
-10,447
-44,396
A reconciliation of the income tax expense to the tax expense determined
on the basis of local tax rates produces the following picture
for the fiscal years ending December 31, 2008 and 2007:
T€
Group profit/(loss) before tax
Tax expense/income calculated
at local tax rates
Tax effect on tax-free income
Tax effect of nondeductible expenses
Tax effect of adjustments on
deferred tax assets
Effects from tax losses for which
no deferred tax asset was set up
Taxes saved by the utilization of tax losses for
which no deferred tax asset was set up
Effect from the change of tax rate
Non-recoverable withholding tax
Tax effect from prior periods
Other tax effects
Tax expense/income
2007
140,262
-48,450
1,084
-6,718
4,027
The effect deriving from non-deductible expenses mainly derives
from interest expenses incurred in Germany and Singapore. In
2008, there was a significant reduction in this effect as compared
to the previous year because it was possible, to a large extent, to
avoid non-deductible interest expenses and also foreign exchange
impacts following a realignment of the financing arrangements for
the companies in Singapore.
The positive tax effect, arising from utilization of loss carry forwards
for which no deferred tax asset was set up, mainly results
from France, where taxable income was earned through the sale
of real estate and equipment deriving from discontinued operations.
Additional tax payments relating to previous years, arising from tax
audits in some countries, increased the tax expense by € 5.2 million.
6.10. Depreciation and Amortization
Further information regarding amortization of intangible assets and
depreciation of property, plant and equipment is contained in the
schedules showing movements in noncurrent assets (see notes
8.10, 8.11 and 8.12).
-47
117
18,310
-2,633
-8,637
121
-42,826
2008
134,782
-38,589
252
-2,845
-463
-18
3,754
-32
-257
-5,848
-350
-44,396
Notes