Hornbach-Baumarkt-AG Group

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Notes on the Consolidated Income Statement 115
The gains and losses from foreign currency exchange for the 2012/2013 financial year chiefly result from the
measurement of foreign currency receivables and liabilities. This resulted in net income of € 4,265k
(2011/2012: expenses of € 3,444k). Furthermore, this item also includes realized exchange rate gains of
€ 3,629k (2011/2012: € 7,555k) and realized exchange rate losses of € 8,246k (2011/2012: € 7,048k).
(8) Taxes on income
The taxes on income reported include the taxes on income paid or payable in the individual countries, as well
as deferred tax accruals.
As in the previous year, the German companies included in the HORNBACH-Baumarkt-AG Group are subject
to an average trade tax rate of approximately 14% of their trading income. The corporate income tax rate
continues to amount to 15%, plus 5.5% solidarity surcharge.
As in the previous year, all domestic deferred tax items have been valued at an average tax rate of 30%. The
calculation of foreign income taxes is based on the relevant laws and regulations in force in the individual
countries. The income tax rates applied to foreign companies range from 16% to 31%.
The actual income tax charge of € 22,066k (2011/2012: € 29,074k) is € 244k lower (2011/2012: € 2,862k)
than the expected tax charge of € 22,310k (2011/2012: € 31,936k) which would have been payable by applying
the average tax rate of 30% at HORNBACH-Baumarkt-AG (2011/2012: 30%) to the Group’s pre-tax earnings
of € 74,365k (2011/2012: € 106,452k).
Deferred tax assets have been stated for as yet unutilized losses carried forward amounting to € 23,918k
(2011/2012: € 19,524k). HORNBACH-Baumarkt-AG expects it to be possible to offset the tax losses carried
forward, which in some cases are attributable to start-up losses in individual countries, against future
earnings in full.
No deferred tax assets have been reported in the case of losses carried forward amounting to € 4,330k
(2011/2012: € 7,120k), as future realization of the resultant benefit is not expected. Of these, losses carried
forward of € 3,481k are due to expire within the next 6 years. The previous year’s figures included losses
carried forward of € 1,663k and € 4,808k whose use is limited to 5 and 7 years respectively. There are no
time limits on the utilization of all other losses carried forward for which no deferred tax assets have been
stated.
In the 2012/2013 financial year, no deferred tax assets were recognized for the first time for losses carried
forward whose utilization was previously not viewed as likely (2011/2012: € 163k). Furthermore, no deferred
tax assets were derecognized in the 2012/2013 financial year for losses carried forward whose utilization is
no longer deemed likely (2011/2012: € 182k). In the previous year, the income from first-time recognition and
expenses for derecognition of these deferred tax items were included in deferred tax income.