Note 11
-
-
Effective income tax rate
Ahold's effective tax rates in the consolidated statements of operations differ from the statutory income tax rates of the
Netherlands, which were 29.6 percent, 31.5 percent and 34.5 percent for 2006, 2005 and 2004, respectively. The following
table reconciles the statutory income tax rate of the Netherlands with the effective income tax rate as shown in the
consolidated statements of operations:
EUR
2006
EUR
2005
EUR
2004
Income (loss) before income taxes continuing operations
927
(279)
801
Income tax benefit (expense) at statutory tax rate
(274)
29.6%
88
31.5%
(276)
34.5%
Adjustments to arrive at effective income tax rate:
Rate differential (local statutory rates versus the statutory rate of the Netherlands)
12
(1.3%)
22
7.9%
(3)
0.4%
Deferred tax income (expense) due to changes in tax rates and the
imposition of new taxes
(3)
0.3%
(4)
(1.4%)
Deferred tax income (expense) related to (reversal of)
impairment of deferred tax assets
50
(5.4%)
(6)
(2.2%)
108
(13.5%)
Group Support Office costs and financing
45
(4.8%)
114
40.9%
28
(3.5%)
Share-based payments
(1)
0.1%
(5)
(1.8%)
(6)
0.7%
Participation exemption and group relief provisions
45
(4.9%)
31
11.1%
34
(4.2%)
Reserves and discrete items
35
(3.8%)
(26)
(9.3%)
(25)
3.1%
Total income taxes
(91)
9.8%
214
76.7%
(140)
17.5%
Group Support Office costs and financing include the result of Ahold's intercompany finance activities, which are carried out
from the treasury center in Geneva, Switzerland.
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 December 31, 2006 and January 1, 2006 are as follows:
December 31,
January 1,
2006
2006
Deferred tax assets
Leases and financings
210
227
Benefit plans
276
275
Other provisions
61
123
Derivatives and loans
6
30
Other
26
71
Total gross deferred tax assets
579
726
Unrecognized deferred tax assets
(15)
(29)
Total recognized deferred tax assets
564
697
Tax losses and tax credits
803
667
Unrecognized tax losses and tax credits
(510)
(375)
Total recognized tax losses and tax credits
293
292
Total net tax assets position
857
989
Deferred tax liabilities
Property, plant and equipment and intangible assets
244
245
Inventories
99
105
Other
59
24
Total deferred tax liabilities
402
374
Net deferred tax assets
455
615
Ahold Annual Report 2006 81
