SAPPI LIMITED

SAPPI
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS (Continued)
for the year ended September 2010
11. DEFERRED TAX (Continued)
Deferred tax assets recognized on the balance sheet
The recognized deferred tax assets relate mostly to available unused tax losses. It is expected that
there will be sufficient future taxable profits against which these losses can be recovered. In the
estimation of future taxable profits, future product pricing and production capacity utilization, are taken
into account.
Unrecognized deferred tax assets
Deferred tax assets are not recognized for carry-forward of unused tax losses when it cannot be
demonstrated that it is probable that taxable profits will be available against which deductible temporary
differences can be utilized.
2010 2009
(US$ million)
Unrecognized deferred tax assets relate to the following:
Other non-current liabilities ............................. 74 66
Tax losses ......................................... 630 634
704 700
Attributable to the following tax jurisdictions:
Belgium ........................................... 63 49
Netherlands ........................................ 8 10
Finland ............................................ 47 39
United Kingdom ..................................... 64 65
United States of America ............................... 198 222
Swaziland .......................................... 32 28
South Africa ........................................ 3 2
Austria ............................................ 289 285
704 700
Expiry between two and five years ........................ 2 —
Expiry after five years ................................. 205 152
Indefinite life ........................................ 497 548
704 700
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