Annual Report

10 Financial expense
Notes to Group Financial Statements
HUBER+SUHNER Annual Report 2010 · Part 2
2010 2009
Interest expense (65) (58)
Foreign exchange losses 1) (11 895) (4 112)
Change in fair value of derivative financial instruments 0 (1 200)
Other financial expense (977) (1 004)
Total financial expense (12 937) (6 374)
1) Of which CHF –0.9 million (previous year, CHF –0.16 million) exchange differences on Group loans with an equity nature that
were paid back, reclassified or reduced by debt forgiveness.
11 Income taxes
2010 2009
Current income taxes (20 931) (14 669)
Deferred income taxes 761 6 375
Total income taxes (20 170) (8 294)
The differences between the expected and the effective income tax expense were as follows:
2010 2009
Net income before taxes 99 180 56 650
Expected income tax rate 20.7% 22.3%
Expected income tax expense (20 519) (12 617)
Effect of utilisation of non-recognised tax loss carry-forward 939 744
Effect of non-tax-deductible expenses and non-taxable income (1 012) (493)
Effect of non-recognition of current tax losses (57) (62)
Effect of reduced allowance on deferred tax assets (5) 85
Effect of changes in tax rates on deferred tax positions 442 2 791
Effect of tax credits from previous year and other effects 42 1 258
Effective income taxes (20 170) (8 294)
Effective income tax rate 20.3% 14.6%
The expected Group tax rate corresponds to the weighted average tax rate based on the income/(loss) before taxes and
the tax rate of each individual Group company. In China the expected income tax rate for the period under review has
further increased. Due to the higher profitability in the parent company the expected income tax rate could be reduced
from 22.3% in 2009 to 20.7% in 2010.
Unrecognised tax loss carry-forward 2010 2009
Expiring within 1 year 220 222
Expiring within 2 years 19 –
Expiring within 3 years 1 297 71
Expiring within 4 years 649 1 387
Expiring within 5 years 359 667
Expiring thereafter 15 145 19 606
Total unrecognised tax loss carry-forward 17 689 21 953
The unrecognised tax loss carry-forward was CHF 17.7 million (previous year, CHF 22.0 million). This corresponds to
a potential tax asset of CHF 7.0 million (previous year, CHF 8.1 million). The main part of the loss carry-forwards was
incurred by a few Group companies. In 2010 a deferred tax asset was recognised in one additional subsidiary.
In 2010 no tax losses carry-forward expired (previous year, CHF 1.6 million).
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