Notes to the consolidated financial statements
94
10 Income taxes (continued)
Income taxes in equity and comprehensive income
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2015
Deferred income tax assets and liabilities are offset on the balance sheet when there is a legally enforceable right to offset current tax assets against current tax liabilities
taxes levied by the same fiscal authority. The deferred tax assets and 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
January 3,
2016
December 28,
2014
Deferred tax assets
628
494
Deferred tax liabilities
(110)
(150)
Net deferred tax assets
518
344
As of January 3, 2016, Ahold had operating and capital loss carryforwards of a total nominal amount of €2,110 million, mainly expiring between 2019 and 2034 (December 28, 2014: €1,949 million). The following table
specifies the years in which Ahold's operating and capital loss carryforwards and tax credits are scheduled to expire:
million
2016
2017
2018
2019
2020
2021-2025
2026-2030
After 2030
Does not
expire
Total
Operating and capital losses (nominal value)
11
28
50
458
57
684
518
258
46
2,110
Operating and capital losses (tax value)
2
8
14
104
18
46
29
15
10
246
Tax credits
6
6
6
5
3
4
7
37
Tax losses and tax credits
8
14
20
109
21
50
29
15
17
283
Unrecognized tax losses and tax credits
(4)
(2)
(3)
(83)
(1)
(7)
(5)
(1)
(5)
(111)
Total recognized tax losses and tax credits
4
12
17
26
20
43
24
14
12
172
Operating and capital loss carryforwards related to one jurisdiction may not be used to offset income taxes in other jurisdictions. Of the loss carryforwards, €1,629 million relates to U.S. state taxes, for which a weighted
average tax rate of 5.63% 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 and comprehensive income are as follows:
million
2015
2014
Share-based compensation
19
6
Cash flow hedges
(3)
16
Currency translation differences in foreign interests
(1)
Remeasurement of defined benefit pension plans
11
21
Total
26
43
