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Friday, February 19, 2016
period of up to 20-years and tax credits can be carried forward for a period of up to 10-years. No tax credit will mature prior to
December 31, 2022 and $16 million tax credits matured in 2015.
d. These tax liabilities, generated by asset revaluations following purchase allocations were terminated upon the amortization or
divestiture of the underlying asset and generated no current tax charge.
6.5 Tax audits
The fiscal year ended on December 31, 2015 and prior years are open to tax audits by the respective tax authorities in the jurisdictions in
which Vivendi has or had operations. Various tax authorities have proposed adjustments to the taxable income reported for prior years. It is
not possible, at this stage of the current tax audits, to accurately assess the impact that could result from an unfavorable outcome of these
audits. Vivendi Management believes that these tax audits should not have a material unfavorable impact on the financial position or
liquidity of the group.
Regarding Vivendi SA, in respect of the Consolidated Global Profit Tax System, the tax audit for fiscal years 2006, 2007 and 2008 is still
ongoing and, likewise, the tax audits for fiscal years 2009 and 2010 are still ongoing. Finally, the audit of Vivendi SA’s Tax Group System for
fiscal years 2011 and 2012 began in July 2013. As of December 31, 2015, all of these tax audits were ongoing. Vivendi Management
believes that it has solid legal grounds to defend its positions for determining the taxable income for the fiscal years under audit. In any
event, Vivendi has accrued a provision for the impact of the Consolidated Global Profit Tax System in 2011 (€409 million), notwithstanding
the decision of the Administrative Court of Montreuil of October 6, 2014, subject to the appeal filed by the Tax Authorities (please refer to
Note 6.1), as well as a provision for the impact in relation to the use of tax credits in 2012 (€228 million).
In respect of the US Tax Group, the fiscal years 2008, 2009 and 2010 are under audit and the final outcome has not materially impacted the
amount of tax attributes reported. In June 2014, the US tax authorities began a tax audit for fiscal years 2011 and 2012, and in December
2014, they undertook a tax audit for fiscal year 2013. As of December 31, 2015, these audits were ongoing. Vivendi Management believes
that it has solid legal grounds to defend its positions for determining the taxable income for the fiscal years under audit.
Note 7
Earnings per share
Year ended December 31,
2015 2014
Basic Diluted Basic Diluted
Earnings (in millions of euros)
Earnings from continuing operations attributable to Vivendi SA shareowners 699 699 (290) (290)
Earnings from discontinued operations attributable to Vivendi SA shareowners 1,233 1,233 5,034 5,034
Earnings attributable to Vivendi SA shareowners 1,932 1,932 4,744 4,744
Number of shares (in millions)
Weighted average number of shares outstanding (a) 1,361.5 1,361.5 1,345.8 1,345.8
Potential dilutive effects related to share-based compensation (b) - 5.3 - 5.5
Adjusted weighted average number of shares 1,361.5 1,366.8 1,345.8 1,351.3
Earnings per share (in euros)
Earnings from continuing operations attributable to Vivendi SA shareowners per share 0.51 0.51 (0.22) (0.22)
Earnings from discontinued operations attributable to Vivendi SA shareowners per share 0.91 0.90 3.74 3.73
Earnings attributable to Vivendi SA shareowners per share 1.42 1.41 3.52 3.51
a. Net of the average number of treasury shares: 1.6 million shares in 2015, compared to 0.4 million in 2014 (please refer to Note 15).
b. Do not include accretive instruments, which could be potentially dilutive; the overall balance of common shares in connection with
Vivendi SA’s share-based compensation plans is presented in Note 18.1.
Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2015 Vivendi /63