Hydro Annual Report 2011b

F36
FINANCIAL STATEMENTS
Note 17 - Income tax expense
Reconciliation of Norwegian nominal statutory tax rate to effective tax rate
Amounts in NOK million 2011 2010
Expected income taxes at statutory tax rate 1)
2 391 1 038
Hydro­electric power surtax 2)
584 447
Equity accounted investments 73 170
Foreign tax rate differences (389) (41)
Tax free income (1 622) (135)
Losses, other tax benefits and deductions with no tax benefits, net 753 110
Income tax expense (benefit) 1 790 1 588
Effective tax rate 21.0% 42.9%
1) Norwegian nominal statutory tax rate is 28 percent.
2) A surtax of 30 percent is applied to taxable income, with certain adjustments, for Norwegian hydro-electric power plants. The surtax comes in addition to
the normal corporate taxation.
Note 18 - Short-term investments
Amounts in NOK million 2011 2010
Equity securities 845 860
Debt securities 456 462
Other 479 ­
Total short­term investments 1 780 1 321
Note 19 - Accounts receivable
Amounts in NOK million 2011 2010
Trade receivables 10 749 10 663
Allowance for credit losses (392) (452)
VAT receivables 880 825
Other receivables 1 980 1 747
Accounts receivable 13 217 12 783
Note 20 - Inventories
Amounts in NOK million 2011 2010
Raw materials 6 103 4 097
Work in progress 3 002 2 307
Finished goods 5 052 4 567
Inventories 14 157 10 971
Raw materials include spare parts with a minor amount. All amounts are net of any write-downs. The total of write-downs
included is NOK 273 million in 2011 and NOK 121 million in 2010.