Note 11
Deferred income tax assets and liabilities
Deferred income tax assets and liabilities reflect the tax effects of temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant
components of deferred income tax assets and liabilities at January 1, 2006 and January 2, 2005 are as follows:
Deferred tax assets
Leases and financings
Benefit plans
Other provisions
Derivatives and loans
Other
January 1,
2006
227
274
122
30
47
January 2,
2005
219
318
142
Total gross deferred tax assets
Impairments
700
(29)
679
(84)
Total net deferred tax assets
671
595
Tax losses and tax credits
Impairments
667
(375)
613
(237)
Total net tax losses and tax credits
292
376
Total net tax assets position
963
971
Deferred tax liabilities
Property, plant and equipment and intangible assets
Inventories
Derivatives and loans
278
105
340
78
6
Total deferred tax liabilities
383
424
Net deferred tax assets
580
547
As of January 1, 2006, Ahold had operating loss carryforwards of a total nominal amount of approximately EUR 4,193,
expiring between 2006 and 2024 (January 2, 2005: EUR 4,101). Such operating loss carryforwards and tax credits may not
be used to offset income taxes in other jurisdictions.
Ahold determines whether deferred tax assets are realizable on the basis of expected taxable profits arising from the reversal of
recognized deferred tax liabilities and on the basis of budgets, cash flow forecasts and impairment models. Where utilization of
deferred tax assets is not considered probable, a valuation allowance is established. Included in 2005 net deferred tax assets
is a total of EUR 292 (2004: EUR 376) which relates to deferred tax assets of group companies that have suffered tax losses
in the current or prior year and where the realization of the deferred tax assets will be fully dependent upon the availability of
future taxable profits and the taxable income due to the reversal of deferred tax liabilities by those companies.
Deferred income tax assets and liabilities are offset in the consolidated balance sheets when there is a legally enforceable right
to offset current tax assets against current tax liabilities and when the deferred income taxes are levied by the same fiscal
authority. Deferred tax assets and liabilities are presented as non-current deferred tax assets and liabilities in the consolidated
balance sheets.
AHOLD ANNUAL REPORT 2005 125
