o www.ahold.com/reports2009
Notes to the consolidated financial statements
10 Income taxes
-
Financials
Income taxes on continuing operations
The following table specifies the current and deferred tax components of income taxes on continuing operations in the income statement:
million 2009 20081
Current income taxes
Domestic taxes
(68)
(122)
Foreign taxes
United States
(38)
Europe - Other
(11)
(13)
Total current tax expense
(117)
(135)
Deferred income taxes
Domestic taxes
(52)
(33)
Foreign taxes
United States
(4)
(59)
Europe - Other
25
1
Total deferred tax expense
(31)
(91)
Total income taxes on continuing operations
(148)
(226)
1 Comparative amounts have been adjusted from amounts previously reported to reflect the effect of the changes in accounting policies and retrospective amendments (see Note 3).
Effective income tax rate on continuing operations
Ahold's effective tax rates in the consolidated income statement differ from the statutory income tax rate of the Netherlands of 25.5 percent
in both 2009 and 2008. The following table reconciles these statutory income tax rates with the effective income tax rates in the
consolidated income statement:
2009
20081
million
million
Income before income taxes
1,014
989
Income tax expense at statutory tax rates
(259)
25.5%
(252)
25.5%
Adjustments to arrive at effective income tax rates
Rate differential (local rates versus the statutory rate of the Netherlands)
(12)
1.2%
25
(2.5)%
Deferred tax income (expense) due to changes in tax rates
12
(1.2)%
(4)
0.4%
Deferred tax income related to recognition of deferred tax assets - net
101
(9.9)%
4
(0.4)%
Reserves, (non-)deductibles and discrete items
10
(1.0)%
1
(0.1)%
Total income taxes
(148)
14.6%
(226)
22.9%
1 Comparative amounts have been adjusted from amounts previously reported to reflect the effect of recategorizing the tax rate benefits of financing related items from "Financing
and related costs" to "Rate differential" (€48 million) and "Reserves, (non-)deductibles and discrete items" (€9 million). Comparative amounts furthermore reflect the changes
in accounting policies and retrospective amendments as disclosed in Note 3.
"Rate differential" indicates the effect of Ahold's taxable income being generated and taxed in jurisdictions where tax rates, either the local
statutory rates or the rate Ahold has been granted by the taxing authorities, differ from the statutory tax rate in the Netherlands. "Deferred
tax income related to recognition of deferred tax assets" results from a change in the estimate of recoverability of net losses generated in
prior years.
Income taxes on discontinued operations
Current and deferred income tax related to discontinued operations amounted to a benefit of €50 million in 2009 and a benefit of
€14 million in 2008 and has been applied against income from discontinued operations. Included in the 2009 tax benefit is €47 million
related to the provisions Ahold recognized in relation to the financial obligations under various lease guarantees that the Company had
previously provided to landlords of its former BI-LO and Bruno's subsidiaries. For further information, see Note 34.
Ahold Annual Report 2009 74
