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Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 6. Income taxes
6.4. Effective tax rate
(in millions of euros, except%)
Year ended December 31,
2014
2013
Earnings (before non-controlling interests)
5,025
2,779
Elimination:
Income from equity affiliates
18
21
Earnings from discontinued operations
(5,262)
(2,633)
Provision for income taxes
130
(17)
Earnings from continuing operations before provision for income taxes
(89)
150
French statutory tax rate
38.00%
38.00%
Theoretical provision for income taxes based on French statutory tax rate
34
(57)
Reconciliation of the theoretical and effective provision for income taxes
Permanent differences
74
(28)
of which other differences from tax rates on earnings
12
4
impacts of the changes in tax rates
-
34
Changes in deferred tax assets related to Vivendi SA’s French Tax Group System
and to the Consolidated Global Profit Tax System
(37)
(161)
Other tax losses and tax credits
(175)
(205)
of which use of unrecognized losses and tax credits
46
-
unrecognized losses
(221)
(205)
Other temporary differences
42
317
of which reserve accrual regarding the Liberty Media Corporation litigation in the United States
-
341
Adjustments to prior year’s tax expense
(33)
130
of which consideration of risks related to previous years’ income taxes
(3)
145
Capital gain or loss on the divestiture of or downside adjustments on financial investments
or businesses
(35)
(2)
of which impairment of Digitick goodwill
(17)
-
impairment of Wengo goodwill
(18)
-
Other
-
23
Provision for income taxes
(130)
17
Effective tax rate
-146.1%
-11.3%
6.5. Deferred tax assets and liabilities
Changes in deferred tax assets/(liabilities), net
(in millions of euros)
Year ended December 31,
2014
2013
Opening balance of deferred tax assets/(liabilities)
53
454
Provision for income taxes
(a)
(53)
(437)
Charges and income directly recorded in equity
54
-
(b)
Business combinations
9
163
Divestitures in progress or completed
(20)
(206)
Changes in foreign currency translation adjustments and other
10
79
Closing balance of deferred tax assets/(liabilities)
53
53
(a)
Includes income/(charges) related to taxes from discontinued operations: in accordance with IFRS 5, these amounts were reclassified to the line
“Earnings from discontinued operations” in the 2014 and 2013 Consolidated Statement of Earnings.
(b)
Includes -€43 million recognized in other items of charges and income directly recognized in equity for the year ended December 31, 2013 (please
refer to Note 8).
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Annual Report 2014