Notes to the
consolidated
financial statements
continued
10 Income taxes continued
5ÖT
154 577
1,022 437
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
52
18
52
18
(373)
(5)
(6)
(88)
(1)
(6)
(12)
(9)
(9)
(237)
Unrecognized tax losses and tax credits
Total recognized tax losses and tax credits
11
16
25
21
23
23
43
9
191
362
As of January 1, 2017, Ahold Delhaize had operating and capital loss carryforwards of a total nominal amount of €4,245 million, mainly expiring
between 2019 and 2034 (January 3, 2016: €2,110 million). The following table specifies the years in which Ahold Delhaize’s operating and capital loss
carryforwards and tax credits are scheduled to expire:
The majority of the abovementioned deferred tax assets relate to tax jurisdictions in which Ahold Delhaize 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 Delhaize 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.
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 and when the deferred income taxes relate to income 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:
Operating and capital loss carryforwards related to one jurisdiction may not be used to offset income taxes in other jurisdictions. Of the loss
carryforwards, €2,506 million relates to U.S. state taxes, for which a weighted average tax rate of 5.14% applies.
No deferred income taxes are recognized on undistributed earnings of Ahold Delhaize’s 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
deferred income taxes was approximately €4,713 million at January 1, 2017.
Operating and capital losses (tax value)
Tax credits
Tax losses and tax credits
15
7
22
2019
106
7
113
18
4
22
30
5
35
January 1,
2017
7oo
(1,596)
(896)
692
43
735
million
Deferred tax assets
Deferred tax liabilities
Net deferred tax assets
million
Operating and capital losses (nominal value)
2017
78
10
6
16
2018
97
2020
58
23
6
29
420
8
428
January 3,
2016
628"
(110)
518
Total
4,245
Does not
expire
1,321
2021 2022-2026
2027-2031 After 2031
