financial report and registration document 2011 - Groupe SEB

NOTE 8 INCOME TAXES
Note 8.1. INCOME TAX EXPENSE
Financial Report and Registration Document 2011
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Consolidated fi nancial statements
Notes to the consolidated fi nancial statements
(in € millions) 2011 2010 2009
Current taxes 97.7 92.0 73.2
Deferred taxes, net 14.7 (2.5) (15.1)
INCOME TAX EXPENSE 112.4 89.5 58.1
Current income tax expense corresponds to taxes paid or payable in the
short term on profi t for the year, based on local tax rates and tax laws in the
Group’s host countries.
Group companies in France, Germany, Italy and the United States have
elected for group relief. The companies in each tax group record in their
Note 8.2. EFFECTIVE TAX RATE
accounts the income tax charge or benefi t that they would have paid or
received if they had been taxed on a stand-alone basis (Note 32). Tax savings
resulting from the election for group relief are not material; the main benefi t
lies in the fact that any tax losses can be set off immediately against the
taxable income of other companies in the tax group.
The following table provides a reconciliation between the Group’s effective tax rate of 30.1% (29.6% in 2010 and 26.3% in 2009) and the statutory French
tax rate of 36.10%:
(in %) 2011 2010 2009
STATUTORY FRENCH TAX RATE 36.1 34.4 34.4
Effect of different tax rates (12.3) (8.4) (12.4)
Unrecognised and unrelieved tax loss carryforwards 2.0 2.0 2.3
Prior period tax loss carryforwards recognised and utilised during the period (0.9) (4.0) (2.7)
Other (a) 5.2 2.9 4.7
EFFECTIVE TAX RATE 30.1 26.9 26.3
(a) The caption “Other” primarily includes unrecognised deferred tax assets other than for tax losses, changes in deferred tax assets not recognised in prior periods, and the impact of the nondeductibility
of the impairment loss on All-Clad goodwill (0.7% in 2011, 1.5% in 2010 and 3.1% in 2009).
Note 8.3. DEFERRED TAX ASSETS AND LIABILITIES
(in € millions) 2011 2010 2009
Intangible assets (brands) (104.7) (91.6) (80.2)
Capitalised development costs (5.2) (5.8) (6.3)
Property, plant and equipment (37.7) (24.4) (24.6)
Net tax loss carryforwards 16.9 19.6 11.8
Provisions for pensions and other employee-related liabilities 31.0 32.1 32.7
Elimination of intra-group gains 19.3 16.5 14.5
Other temporary differences (net) 39.6 38.9 34.9
NET DEFERRED TAX ASSET/(LIABILITY)
Of which:
(40.8) (14.7) (17.2)
Deferred tax assets 38.2 40.2 38.1
Deferred tax liabilities 79.0 54.9 55.3
Deferred taxes arising on other temporary differences essentially include deferred taxes on the non-deductible portion of provisions.
GROUPE SEB
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