Review of 2012 – EUR - Skanska

Note16ContinuedTax assets and tax liabilitiesDec 31, 2012 Dec 31, 2011Tax assets 66.1 48.9Tax liabilities 27.9 29.5Net tax assets (+), tax liabilities (–) 38.2 19.4Tax assets and tax liabilities refer to the difference between estimated income tax forthe year and preliminary tax paid, as well as income taxes for prior years that havenot yet been settled.Deferred tax assets and deferred tax liabilitiesDec 31, 2012 Dec 31, 2011Deferred tax assets according to the statementof financial position 146.2 187.4Deferred tax liabilities according to the statementof financial position 66.6 104.0Net deferred tax assets (+), deferred tax liabilities (–) 79.5 83.4Dec 31, 2012 Dec 31, 2011Deferred tax assets for loss carryforwards 75.5 41.6Deferred tax assets for other assets 62.8 56.5Deferred tax assets for provisions for pensions 97.0 105.2Deferred tax assets for ongoing projects 42.2 49.6Other deferred tax assets 115.1 124.6Total before net accounting 392.5 377.5Net accounting of offset table deferred tax assets/liabilities–246.3 –190.1Deferred tax assets according to the statement offinancial position 146.2 187.4Dec 31, 2012 Dec 31, 2011Deferred tax liabilities for other non-current assets 46.8 37.1Deferred tax liabilities for ongoing projects 174.3 128.4Deferred tax liabilities for other current assets 41.5 47.9Other deferred tax liabilities 50.3 80.6Total before net accounting 312.9 294.0Net accounting of offset table deferred taxassets/liabilities –246.3 –190.1Deferred tax liabilities according to the statement offinancial position 66.6 104.0Deferred tax assets arise, for example, when a recognized depreciation/amortization/impairment loss on assets becomes deductible for tax purposes only in a later period,when eliminating intra-Group profits, when the provisions for defined-benefit pensionsdiffer between local rules and IAS 19, when the required provisions becometax-deductible in a later period and when advance payments to ongoing projects aretaxed on a cash basis.Deferred tax liabilities on other assets and other deferred tax liabilities refer totemporary differences between carrying amounts for tax purposes and carryingamounts in the statement of financial position. These differences arise, among otherthings, when the Group’s valuation principles diverge from those applied locally bya Group company. These deferred tax liabilities are expected to be mostly realizedwithin five years.For example, deferred tax liabilities arise when depreciation/amortization for taxpurposes in the current period is larger than the required economic depreciation/amortization and when accrued profits in ongoing projects are taxed only when theproject is completed.Temporary differences attributable to investments in Group companies, branches,associated companies and joint ventures for which deferred tax liabilities were notrecognized totaled EUR 0.0 M (0.0).In Sweden and a number of other countries, divestments of holdings in limitedcompanies are tax-exempt under certain circumstances. Temporary differences thusdo not normally exist for shareholdings by the Group’s companies in these countries.Temporary differences and loss carryforwards that are not recognized asdeferred tax assetsDec 31, 2012 Dec 31, 2011Loss carryforwards that expire within one year 0.1 0.2Loss carryforwards that expire in more than one yearbut within three years 21.0 21.1Loss carryforwards that expire in more than three years 136.8 127.4Total 157.9 148.7Skanska has loss carryforwards in a number of different countries. In some of thesecountries, Skanska currently has no operations or limited ones. In certain countries,current earnings generation is at such a level that the likelihood that a loss carryforwardcan be utilized is difficult to assess. There may also be limitations on the rightto offset loss carryforwards against income. In these cases, no deferred tax asset isreported for these loss carryforwards.Change in net deferred tax assets (+), liabilities (–)2012 2011Net deferred tax liabilities/assets, January 1 83.4 –18.3Divestments of companies 2.5Recognized under other comprehensive income –10.3 96.1Deferred tax expenses/benefits –9.8 10.1Reclassifications 16.4Exchange-rate differences –0.2 –7.0Net deferred tax assets, December 31 79.5 83.4Deferred tax assets other than for loss carryforwards refer to temporary differencesbetween carrying amounts for tax purposes and carrying amounts recognized in thestatement of financial position.These differences arise, among other things, when the Group’s valuation principlesdiverge from those applied locally by a Group company. These deferred taxassets are mostly expected to be realized within five years.Skanska Review of 2012 – EUR version Notes, including accounting and valuation principles 131