-
-
The following reconciles Delhaize Group's Belgian statutory income tax rate to the Group's effective income tax rate:
2012(1)
2011
2010
Belgian statutory income tax rate
34.0%
34.0%
34.0%
Items affecting the Belgian statutory income tax rate:
Different statutory tax rates in jurisdictions outside Belgium
25.7(2)
(1.2)
1.0
Non taxable income
(25.9)
(0.6)
(0.8)
Non deductible expenses
21.6
1.2
1.0
Tax charges on dividend income
6.5
0.7
n (3)
Deductions from taxable income
(35.6)
(10.0)
(5.9)
(Recognition) non recognition of tax assets
18.7
0.4
0.3
Taxes related to prior years recorded in current year
(40.5)(4)
(0.5)
Changes in tax rate or imposition of new taxes
10.7
0.1
0.5
Oth e r
2.4
0.1
0.2
Effective tax rate
17.6%
24.7%
29.8%
(1) The weight of each item affecting the Belgian statutory incom e tax rate is higher in 2012 due to the lower profit befo
(2) The increase is mainly due to tax losses incurred in the Balkan countries at a lower tax rate.
(3) Deductions from taxable incom e relate to notional interest deduction in Belgium and tax credits in other countries.
(4) Primarily related to the resolution of several tax matters in the U.S. which resulted in the recognition of an income ta
x benefit.
The aggregated amount of current and deferred tax charged or (credited) directly to equity wa
s as fo llows
(in millions of
2012
2011
2010
C u rre nt ta x
2
(1)
(2)
Deferred tax
(5)
(9)
5
Total tax charged (credited) directly to equity
(3)
(10)
3
Delhaize Group has not recognized income taxes on undistributed earnings of its subsidiai
"ies and proportionally consolidated
joint venture as the undistributed earnings will not be distributed in the foreseeable future. The cumulative an
undistributed earnings on which the Group has not recognized income taxes was approximately €4.1 billion at Decei
2012, €4.2 billion at December 31, 2011 and €3.6 billion at December 31, 2010.
n ount of
■n ber 31,
Deferred income tax assets and liabilities are offset when there is a legally enforceable ric
ht to offset and
when the
deferred
income taxes relate to the same fiscal authority. Deferred income taxes recognized on the bal
ance sheet were
Dec
as follows
ember 31,
(in millions of
2012
2011(9
2010
Deferred tax liabilities
570
624
543
Deferred tax assets
89
97
95
Net deferred tax liabilities
481
527
448
(1) 2011 was revised to reflect the effects of the com pletion in the second quarter of 2012 of the purchase price allocati
on of the Delta Maxi a
cquisition.
DELHAIZE GROUP FINANCIAL STATEMENTS'12 143
