Transfers (to) from other accounts
Delhaize Group Annual Report 2014 145
Delhaize Group has not recognized income taxes on undistributed earnings of its subsidiaries and joint ventures, as the
undistributed earnings will not be distributed in the foreseeable future. The cumulative amount of undistributed earnings on which
the Group has not recognized income taxes was approximately €4.6 billion at December 31, 2014, €4.0 billion at December 31,
2013 and €4.0 billion at December 31, 2012.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred
income taxes relate to the same fiscal authority. Deferred income taxes recognized on the balance sheet were as follows:
December 31,
(in millions of
2014
2013
2012
Deferred tax liabilities
302
443
566
Deferred tax assets
46
71
89
Net deferred tax liabilities
256
372
477
The changes in the overall net deferred tax liabilities were as follows:
(in millions of
Accelerated
Tax
Depreciation
Closed
Store
Provision
Leases
Pension
Other
Total
Net deferred tax liabilities at January 1, 2012
586
(18)
(76)
(41)
73
524
Charge (credit) to equity for the year
(4)
(1)(1)
(5)
Charge (credit) to profit or loss for the year
(45)
(26)
1
(3)
27
(46)
Effect of change in tax rates
13
13
Divestiture
(1)
1
(1)
1
Currency translation effect
(10)
1
1
(1)
(9)
Net deferred tax liabilities at December 31, 2012
542
(43)
(74)
(48)
100
477
Charge (credit) to equity for the year
4
(2)
2
Charge (credit) to profit or loss for the year
(61)
(5)
2
(2)
(19)
(85)
Effect of change in tax rates
(3)
(2)
(3)
(8)
Divestiture
2
2
Transfers (to) from other accounts
(1)
1
(2)
(2)
Currency translation effect
(17)
2
2
2
(3)
(14)
Net deferred tax liabilities at December 31, 2013
462
(45)
(70)
(46)
71
372
Charge (credit) to equity for the year
(4)
(1)
(5)
Charge (credit) to profit or loss for the year
(86)
10
8
4
(76)(2)
(140)
Effect of change in tax rates
(2)
(1)
(1)
(4)
Divestiture
1
(1)
Currency translation effect
41
(5)
(8)
(5)
10
33
Net deferred tax liabilities at December 31, 2014
415
(40)
(70)
(51)
2
256
(1) 2012 included €2 million in relation to the cash flow hedge reserve (terminated in 2013).
(2) Relates primarily to both the carryforward of exempted dividend income and the reorganization expenses in Belgium.
At December 31, 2014, Delhaize Group did not recognize deferred tax assets of €250 million, of which:
€40 million relates to U.S. tax loss carry-forwards of €1 044 million and U.S. state tax credits, which if unused would expire
at various dates between 2015 and 2034;
€8 million relates to tax credits in Europe, which if unused would expire at various dates between 2015 and 2023;
€177 million relates to several deferred tax assets (primarily tax loss carry-forwards of €563 million) in Europe which can be
utilized without any time limitation;
€17 million relates to capital losses that can only be offset against capital gains in Europe, which if unused would expire in
2018 and 2019;
€1 million relates to impairment in Europe that could result in capital losses which will probably not be offset against realized
capital gains within the applicable time limitations;
€7 million relates to U.S. state deferred tax assets which can be utilized without any time limitation.
The unused tax losses and unused tax credits may not be used to offset taxable income or income taxes in other jurisdictions.
Delhaize Group recognized deferred tax assets only to the extent that it is probable that future taxable profit will be available
against which the unused tax losses, the unused tax credits and deductible temporary differences can be utilized. At December
31, 2014, the recognized deferred tax assets relating to unused tax losses and unused tax credits amounted to €71 million.
