Page 251 - 2012 Annual Report

251
VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
III - CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 6 Income taxes
6.4. EFFECTIVE TAX RATE
(in millions of euros, except %) Note
Year ended December 31,
2012 2011
Earnings from continuing operations before provision for income taxes 2,108 5,105
Elimination:
Income from equity affiliates 38 18
Earnings before provision for income taxes 2,146 5,123
French statutory tax rate 36.10% 36.10%
Theoretical provision for income taxes based on French statutory tax rate (775) (1,849)
Reconciliation of the theoretical and effective provision for income taxes
Permanent differences 42 133
Of which other differences from tax rates 66 88
impacts of the changes in tax rates (4) 6
Vivendi SA’s French Tax Group System and Consolidated Global Profit Tax System 6.1 333 436
Of which current tax savings 381 565
changes in related deferred tax assets (48) (129)
Other tax losses and tax credits (3) (11)
Of which use of current losses of the period 4 -
use of unrecognized losses and tax credits 31 56
unrecognized losses (38) (67)
Other temporary differences (341) 19
Of which reserve accrual regarding the Liberty Media Corporation litigation in the United States (341) -
Adjustments to prior year’s tax expense (65) (248)
Of which consideration of risks related to previous years’ income taxes (62) (253)
Capital gain or loss on the divestiture of or downside adjustments on financial investments or businesses (313) (140)
Of which impairment of Canal+ France goodwill (240) (137)
impairment of Canal+ Group’s N-Vision equity affiliate (43) -
Other (37) 282
Effective provision for income taxes (1,159) (1,378)
Effective tax rate 54.0% 26.9%
6.5. DEFERRED TAX ASSETS AND LIABILITIES
Changes in deferred tax assets/(liabilities), net
(in millions of euros)
Year ended December 31,
2012 2011
Opening balance of deferred tax assets/(liabilities) 693 880
Provision for income taxes (6) (157)
Charges and income directly recorded in equity (a) (3) (25)
Business combinations (278) (1)
Changes in foreign currency translation adjustments and other 3 (4)
Closing balance of deferred tax assets/(liabilities) 409 693
(a) Includes +€1 million recognized in other items of charges and income directly recognized in equity for the year ended December 31, 2012 (compared
to -€24 million as of December 31, 2011).