Notes to the consolidated financial statements
88
10 Income taxes (continued)
Income taxes in equity
-
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual
Report 2014
Deferred income tax assets and liabilities are offset on the balance
taxes levied by the same fiscal authority. The deferred tax assets ai
sheet when there is a legally enforceable right to offset current tax assets against current tax liabilities
nd liabilities are presented as non-current assets and liabilities on the balance sheet as follows:
and when the deferred income taxes relate to
income
millior
December 28,
2014
December 29,
2013
Deferred tax assets
494
411
Deferred tax liabilities
(150)
(123)
Net deferred tax assets
344
288
As of December 28, 2014, Ahold had operating and capital loss carryforwards of a total nominal amount of €1,949 million, ma
table specifies the years in which Ahold's operating and capital loss carryforwards and tax credits are scheduled to expire:
inly expiring between 2019 and 2034 (December 29, 2013: €1,239 million). The following
million
2015
2016
2017
2018
2019
2020-2024 2025-2029
After 2029
Does not
expire
Total
Operating and capital losses (nominal value)
48
21
40
51
391
515
375
469
39
1,949
Operating and capital losses (tax value)
9
5
10
14
89
49
21
27
9
233
Tax credits
7
6
6
5
5
4
6
39
Tax losses and tax credits
16
11
16
19
94
53
21
27
15
272
Unrecognized tax losses and tax credits
(9)
(4)
(2)
(3)
(73)
(7)
(4)
(9)
(4)
(115)
Total recognized tax losses and tax credits
7
7
14
16
21
46
17
18
11
157
Operating and capital loss carryforwards related to one jurisdiction may not be used to offset income taxes in other jurisdictions. Of the loss carryforwards, €1,480 million relates to U.S. state taxes, for which a weighted
average tax rate of 5.59% applies.
The majority of the above mentioned deferred tax assets relate to tax jurisdictions in which Ahold has suffered a tax loss in the current or a preceding period. Significant judgment is required in determining whether deferred
tax assets are realizable. Ahold determines this 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 is not considered probable, deferred tax assets are not recognized.
Current and deferred income taxes recognized in and transferred from equity are as follows:
million
2014
2013
Share-based compensation
6
12
Cash flow hedges
16
(15)
Currency translation differences in foreign interest
1
Remeasurement of defined benefit pension plans
21
(83)
Total
43
(85)
