Philips 2014 Annual Report Download - page 137

Group nancial statements 12.9
Annual Report 2014 137
Deferred tax assets and liabilities relate to the balance
sheet captions, as follows:
Philips Group
Deferred tax assets and liabilities in millions of EUR
2013 - 2014
assets liabilities net
2014
Intangible assets 114 (1,094) (980)
Property, plant and equipment 120 (47) 73
Inventories 317 (6) 311
Prepaid pension costs 99 (1) 98
Other receivables 58 (9) 49
Other assets 45 (21) 24
Provisions:
- pensions 562 – 562
- guarantees 4 – 4
- termination benets 109 – 109
- other postretirement 71 – 71
- other 791 (8) 783
Other liabilities 226 (17) 209
Deferred tax assets on tax loss
carryforwards (including tax
credit carryforwards) 1,040 – 1,040
Total allocations 3,556 (1,203) 2,353
Set-o of deferred tax positions (1,096) 1,096 –
Net deferred tax assets 2,460 (107) 2,353
2013
Intangible assets 116 (987) (871)
Property, plant and equipment 107 (49) 58
Inventories 271 (7) 264
Prepaid pension costs 1 (2) (1)
Other receivables 60 (10) 50
Other assets 48 (16) 32
Provisions:
- pensions 426 – 426
- guarantees 29 – 29
- termination benets 97 – 97
- other postretirement 57 – 57
- other 581 (14) 567
Other liabilities 213 (21) 192
Deferred tax assets on tax loss
carryforwards (including tax
credit carryforwards) 699 – 699
2,705 (1,106) 1,599
Set-o of deferred tax positions (1,030) 1,030 –
Net deferred tax assets 1,675 (76) 1,599
Deferred tax assets are recognized for temporary
dierences, unused tax losses, and unused tax credits
to the extent that realization of the related tax benets
is probable. The ultimate realization of deferred tax
assets is dependent upon the generation of future
taxable income in the countries where the deferred tax
assets originated and during the periods when the
deferred tax assets become deductible. Management
considers the scheduled reversal of deferred tax
liabilities, projected future taxable income, and tax
planning strategies in making this assessment.
The net deferred tax assets of EUR 2,353 million (2013:
EUR 1,599 million) consist of deferred tax assets of EUR
2,460 million (2013: EUR 1,675 million) in countries with
a net deferred tax asset position and deferred tax
liabilities of EUR 107 million (2013: EUR 76 million) in
countries with a net deferred tax liability position. Of the
total deferred tax assets of EUR 2,460 million at
December 31, 2014, (2013: EUR 1,675 million), EUR 1,352
million (2013: EUR 543 million) is recognized in respect
of scal entities in various countries where there have
been scal losses in the current or preceding period.
Management’s projections support the assumption that
it is probable that the results of future operations will
generate sucient taxable income to utilize these
deferred tax assets.
At December 31, 2014 and 2013, there were no
recognized deferred tax liabilities for taxes that would
be payable on the unremitted earnings of certain
foreign subsidiaries of Philips Holding USA since it has
been determined that undistributed prots of such
subsidiaries will not be distributed in the foreseeable
future. The temporary dierences associated with the
investments in subsidiaries of Philips Holding USA, for
which a deferred tax liability has not been recognized,
aggregate to EUR 47 million (2013: EUR 32 million).
At December 31, 2014, operating loss carryforwards
expire as follows:
Philips Group
Expiry year operating loss carryforwards in millions of EUR
Total 2015 2016 2017 2018 2019
2020/
2024 later
un-
limi-
ted
5,889 – – 5 4 14 817 1,114 3,935
The Company also has tax credit carryforwards of EUR
174 million, which are available to oset future tax, if
any, and which expire as follows:
Philips Group
Expiry year tax credit carryforwards in millions of EUR
Total 2015 2016 2017 2018 2019
2020/
2024 later
un-
limi-
ted
174 1 – 4 3 26 104 29 7
At December 31, 2014, operating loss and tax credit
carryforwards for which no deferred tax assets have
been recognized in the balance sheet, expire as follows:
Philips Group
Operating loss and tax credit carryforwards for which
no deferred tax asset has been recognized in millions of EUR
Total 2015 2016 2017 2018 2019
2020/
2024 later
un-
limi-
ted
2,136 – – 1 3 2 55 18 2,057
At December 31, 2014, the amount of deductible
temporary dierences for which no deferred tax asset
has been recognized in the balance sheet is EUR 190
million (2013: EUR 151 million).