Annual report 2009 - Dexia.com

Notes to the annual fi nancial statementsManagement reportConsolidatedfinancial statementsAnnual financial statementsAdditional informationBecause the commitments subscribed by Dexia Crédit Local andits subsidiaries allow Dexia, through its permanent establishment,to lock in temporary tax savings, it was agreed that theresources produced by the permanent establishment will be lentto the tax consolidation Group’s subsidiaries that made it possibleto realise these tax savings through advances called “taxdeferred advances”.Tax deferred advances granted by the permanent establishmentwith contractual maturity after 31 December 2010 amountedto EUR 40.5 million as at 31 December 2009.4.2.6. AMOUNTS RECEIVABLE WITHIN ONEYEARTrade debtorsThe item “Trade debtors” relates to commercial receivablesfor services rendered to subsidiaries of the Group (EUR2.1 million), non Group receivables (EUR 0.3 million) andadvances paid to suppliers (EUR 0.1 million).Other amounts receivablesIn 2000, the acquisition of the US group Financial SecurityAssurance by head office was partially hedged by a currencyand interest-rate swap contract concluded with Dexia CréditLocal for an amount of USD 134.2 million (EUR 93.2 millionsas at 31 December 2009) against EUR 141.2 million maturingon 12 July 2010.Following the value reduction on the holding in Dexia HoldingsInc., shareholder of the Dexia FP Holdings group andin order to hedge the risk arising from that swap, the headoffice of Dexia SA concluded a transaction to purchase USD134.2 million forward for EUR 97.8 million, also maturing on12 July 2010.The result from this specific hedge is definitively fixed andgives rise to a receivable claim of EUR 43.4 million.The permanent establishment of Dexia SA in Paris is the headof the tax consolidation group in France. In this regard it issolely liable for corporation tax and the lump-sum annualtaxation due from the Group in relation to its fiscal integration,given that taxes due from companies which form partof the fiscal consolidation must be paid to the permanentestablishment. As at 31 December 2009, the tax receivableof the permanent establishment in Paris to the French taxauthorities as the head of the tax consolidation group inFrance amounted to EUR 0.7 million.Furthermore, as from 1 January 2007, the permanent establishmentof Dexia SA in Luxembourg is the head of theGroup within the scope of tax integration in Luxembourg.As a consequence, it alone is also liable for corporation taxand local commercial tax on group companies integrated inLuxembourg.The companies forming part of the Group fiscally integratedin Luxembourg are:• BIL Ré SA• Dexia Banque Internationale à Luxembourg SA• Dexia SA, Luxembourg branch• Dexia Participation Luxembourg SA• Experta Corporate and Trust Services SA• Société Luxembourgeoise de Leasing BIL Lease.As at 31 December 2009, the permanent Luxembourg establishmenthad a claim of EUR 3.4 million on the companiestaking part in the tax consolidation in Luxembourg, whichcorresponds to the tax due from those companies on theirshare of the consolidated tax result.For its part, the head office has a tax claim to the Belgian fiscalauthorities corresponding to EUR 0.3 million professionalwithholding tax.The work rules state that salary is to be paid in advance.These represent a claim of EUR 0.9 million as at 31 December2009.Moreover, the permanent establishment in Paris has a claimresulting from the attribution of dividends on the shares inAssured Guaranty Ltd which it holds in its investment portfolio(EUR 0.7 million). This is combined with claims on Groupsubsidiaries in an amount of EUR 0.3 million.4.2.7. CURRENT INVESTMENTSOther investments and depositsThe permanent establishment in Paris has in its portfolioshares in Assured Guaranty Ltd, representing 11.87% of itscapital, for a value of EUR 256.6 million. These shares originatefrom the disposal of Financial Security Assurance HoldingsLtd by Dexia Holdings Inc. to Assured Guaranty Ltd andwere sold by Dexia Holdings Inc. to the permanent establishmentof Dexia SA in Paris.This heading also includes a term deposit from the headoffice representing EUR 58.7 million and VVPR Dexia stripsworth EUR 0.2 million.4.2.8. CASH AT BANK AND IN HANDAvailable cash at banks and in hand totalled EUR 18.1 million.4.2.9. DEFERRED CHARGES AND ACCRUEDINCOMEDeferred charges totalled EUR 0.5 million and accrued incomewas EUR 9.4 million.Among accrued income are the interest pro ratas relating tosubordinated loans granted to Group entities (EUR 8.9 million),to a currency and interest-rate swap with Dexia CréditLocal (EUR 0.2 million), to tax deferred advances (EUR 0.1million) and services rendered to other entities of the Group(EUR 0.2 million).4.3. Shareholders’ equity and liabilitiesSHAREHOLDERS’ EQUITYAs at 31 December 2009, the holding company’s shareholderequity including 2009 net result before profit appropriationtotalled EUR 24,371 million and is composed of the followingitems.222Dexia Annual report 2009