Hydro Annual Report 2011b

Reconciliation of nominal statutory tax rate to effective tax rate
Amounts in NOK million 2011 2010
Income (loss) before taxes 3 386 2 380
Expected income taxes at statutory tax rate 948 666
Permanent differences and other, net (175) 2
Income taxes 773 668
Effective tax rate 22.82% 28.06%
Components of income tax
FINANCIAL STATEMENTS
Note 7 - Income taxes F73
Current income tax 504 584
Change in deferred tax 269 84
Income tax 773 668
See note 17 Income tax expense and note 33 Deferred tax in the consolidated financial statements for further information.
Tax effect of share issue costs of NOK 1 million and NOK 42 million, were credited directly to equity in 2011 and 2010,
respectively.
Taxes payable as of December 31, 2011 and 2010 were NOK 1,100 million and NOK 1,153 million, respectively.
Note 8 - Shares in subsidiaries
Company name Currency
Percentage of
shares owned by
Norsk Hydro ASA
Total share
capital of the
company
(1,000’s)
Book value
(NOK million)
Hydro Aluminium AS NOK 100.00 14 472 252 50 826
Norsk Hydro Produksjon AS NOK 100.00 880 000 5 603
Grenland Industriutvikling AS NOK 100.00 26 750 111
Hydro Aluminium Deutschland GmbH 1)
EUR 25.04 73 894 92
Norsk Hydro Plastic Pipe AS NOK 100.00 10 000 39
Industriforsikring AS NOK 100.00 20 000 20
Hydro Kapitalforvaltning AS NOK 100.00 2 500 4
Norsk Hydro Kraft OY EUR 100.00 34 ­
Total 56 695
1) The company is owned 74.96 percent by Norsk Hydro Deutschland GmbH & Co. KG, which is a subsidiary of Hydro Aluminium AS, and 25.04 percent by
Norsk Hydro ASA.
Percentage of shares owned equals percentage of voting shares owned. The location of subsidiaries is indicated by the currency
code used in the table or by the name of the subsidiary. Several of the above-mentioned companies also own shares in other
companies.
Note 9 - Related party information
See note 45 Related party information in the notes to the consolidated financial statements for identification of related parties
and primary relationships with those parties.
The Norwegian state and Vale S.A are related parties to Norsk Hydro ASA. Both shareholdings represent significant influence
in Norsk Hydro ASA. Following the acquisition of Vale Aluminium Norsk Hydro ASA received share holdings in certain
subsidiaries as contribution for the shares issued to Vale. These share holdings were immediately sold to subsidiaries of Norsk
Hydro ASA in 2011 for an amount of NOK 20.1 billion. In addition, Norsk Hydro ASA made a NOK 26.4 billion capital
contribution to Hydro Aluminium AS in 2011 to finance investments mainly related to the Vale Aluminium acquisition.