14. DEFERRED TAX ASSETS AND PROVISION FOR DEFERRED TAX LIABILITIES
This item is broken down as follows:
(in thousands of euro) | ||
12/31/2011 | 12/31/2010 | |
---|---|---|
Deferred tax assets | 198,748 | 69,642 |
Provision for deferred tax liabilities | (21,298) | (33,733) |
177,450 | 35,909 |
The increase in deferred tax assets from December 31, 2010 stems almost entirely (euro 128,092 thousand) from the deferred taxes recognised by the parent company Pirelli & C. S.p.A. for residual tax losses carried forward under the tax consolidation programme, following the amendment to tax law governing the use of losses that, on the one hand, limited their use to 80% of taxable income every year but, on the other hand, extended the period for use of those losses indefinitely.
In particular, most of the prior period tax losses carried forward by the parent company, which underlie these deferred tax assets, would have expired at December 31, 2012 without this change in tax law.
Deferred tax assets and liabilities have been recognised on the balance sheet if they satisfied the applicable conditions and considering the offsets made for each legal entity. They are broken down as follows, gross of offsets:
(in thousands of euro) | ||
|
12/31/2011 | 12/31/2010 |
---|---|---|
Deferred tax assets | 299,992 | 170,799 |
- of which recoverable in 12 months | 70,985 | 56,889 |
- of which recoverable after 12 months | 229,007 | 113,910 |
Provision for deferred tax liabilities | (122,542) | (134,890) |
- of which recoverable in 12 months | (1,328) | (4,448) |
- of which recoverable after 12 months | (121,214) | (130,442) |
|
177,450 | 35,909 |
The tax effect of temporary differences and of tax losses carried forward which make up the item at December 31, 2011 and at December 31, 2010 is shown in the following table:
(in thousands of euro) | ||
12/31/2011 | 12/31/2010 | |
---|---|---|
Deferred tax assets: | ||
Provisions for future liabilities and charges | 26,739 | 30,204 |
Provisions for employee benefits | 39,893 | 38,236 |
Stocks | 14,195 | 11,727 |
Tax losses carried forward | 156,958 | 43,649 |
Amortisation and depreciation | 3,765 | 865 |
Trade receivables and other receivables | 4,499 | 5,800 |
Trade payables and other payables | 42,534 | 31,602 |
Derivatives | 9,618 | 7,565 |
Other |
1,791 | 1,151 |
Total | 299,992 | 170,799 |
Fondo imposte differite: | ||
Ammortamenti | (113,980) | (123,971) |
Other | 8,562) | (10,919) |
Total | (122,542) | (134,890) |
At December 31, 2011 unrecognised deferred tax assets relating to temporary differences amounted to euro 139,645 thousand (euro 139,228 thousand at December 31, 2010), and those relating to tax losses amounted to euro 172,515 thousand (euro 318,556 thousand at December 31, 2010). These amounts refer to situations where recovery is not probable at this time.
Tax losses broken down by maturities, against which no deferred tax assets were recognised, are shown below:
(in thousands of euro) | ||
Year of expiry | 12/31/2011 | 12/31/2010 |
---|---|---|
2011 | - | 86 |
2012 | - | 495,421 |
2013 | - | 43,548 |
2014 | 285 | 8,378 |
2015 | 1,437 | 7,031 |
2016 | 3,799 | 4,129 |
2017 | 3,989 | 2,433 |
2018 | 1,162 | 1,162 |
2019 | 1,239 | 1,239 |
2020 | 3,254 | - |
2021 | 9,565 | - |
2022 | 6,491 | 20,305 |
2023 | 4,235 | - |
2024 | 10,631 | 343 |
2025 | 12,690 | 12,690 |
2026 | 1,477 | - |
with no expiry | 524,769 | 515,953 |
|
585,023 | 1,112,718 |
The tax effect of gains and losses recognised directly in equity was a positive euro 9,232 thousand (a positive euro 2,810 thousand at December 31, 2010), and is shown in the Statement of Comprehensive Income. These changes were mainly due to the tax effects associated with actuarial gains/losses on employee benefits and to the adjustment to fair value of derivatives in cash flow hedges.
- General Information
- Directors' Report
- Consolidated Financial Statements
DATAHIGHLIGHTS
(in millions of euro) |
|||||
2011 | 2010 | 2009 : | 2008 | 2007 | |
---|---|---|---|---|---|
GROUP INCOME STATEMENT | |||||
Net sales | 5,655 | 4,848 | 4,067 | 4,660 | 6,076 |
Net sales (excluding DGAG - PRE) * | 4,660 | 4,780 | |||
Gross operating profit | 807 | 629 | 453 | 252 | 573 |
% of net sales | 14.3% | 13.0% | 11.1% | 5.4% | 9.4% |
Operating income | 582 | 408 | 250 | 43 | 364 |
% of net sales - ROS | 10.3% | 8.4% | 6.1% | 0.9% | 6.0% |
Net income (loss) from continuing operations | 313 | 228 | 77 | ||
Net income (loss) from discontinued operations | - | (224) | (100) | ||
Prior period deferred tax assets - Italy | 128 | - | - | ||
Total net income (loss) | 441 | 4 | (23) | (413) | 324 |
Net income attributable to owners of Pirelli & C. S.p.A. | 452 | 22 | 23 | (348) | 165 |
Total net earnings (losses) per share attributable to owners of Pirelli & C. S.p.A. (in euro) | 0.926 | 0.045 | 0.047 °° | (0.065) | 0.031 |
TYRE INCOME STATEMENT | |||||
Net sales | 5,602 | 4,772 | 3,993 | 4,100 | 4,162 |
Gross operating profit | 858 | 661 | 501 | 341 | 549 |
% of net sales | 15.3% | 13.9% | 12.5% | 8.3% | 13.2% |
Operating income | 644 | 453 | 309 | 151 | 358 |
% of net sales - ROS | 11.5% | 9.5% | 7.7% | 3.7% | 8.6% |
GROUP BAlANCE SHEET | |||||
Non-current assets | 3,558 | 3,164 | 3,596 | 3,665 | 3,815 |
Net working capital | 399 | 303 | 427 | 600 | 551 |
% of net sales | 7.1% | 6.2% | 10.5% | 12.9% | 11.5% |
Total net working capital | 155 | 117 | 222 | 418 | 298 |
% of net sales | 2.7% | 2.4% | 5.5% | 9.0% | 6.2% |
Net invested capital | 3,713 | 3,281 | 3,818 | 4,083 | 4,113 |
Equity | 2,192 | 2,028 | 2,495 | 2,374 | 3,804 |
Provisions | 784 | 797 | 795 | 681 | 611 |
Net financial (liquidity)/debt position | 737 | 456 | 529 | 1,028 | (302) |
Equity attributable to owners of Pirelli & C. S.p.A. | 2,146 | 1,991 | 2,175 | 2,172 | 2,980 |
Equity per share attributable to owners of Pirelli & C. S.p.A. (in euro) | 4.40 | 4.08 | 4.46°° | 0.40 | 0.56 |
OTHER GROUP INFORMATION | |||||
Net operating cash flow | 156 | 310 | 496 | (147) | 299 |
Depreciation and amortization | 221 | 217 | 198 | 199 | 214 |
Capital expenditure - tangible | 618 | 433 | 225 | 311 | 287 |
Capital expenditure/depreciation | 2.80 | 2.00 | 1.14 | 1.56 | 1.34 |
Research and development expenses | 170 | 150 | 137 | 156 | 173 |
% of net sales | 3.0% | 3.1% | 3.4% | 3.3% | 3.6% |
Headcount (at 12/31) | 34,259 | 29,573 | 29,570 | 31,056 | 30,823 |
of whom temporary workers | 2,649 | 2,426 | 2,245 | 2,913 | 3,642 |
Sales * per employee (in thousands of euro) | 181 | 160 | 138 | 148 | 155 |
Operating income/Net invested capital ** - ROI | 16.64% | 11.49% | 6.33% | 1.05% | 6.33% |
Net income (loss)/Equity ** - ROE | 20.89% | 0.18% | (0.94%) | (13.37%) | 7.63% |
Net financial position/Equity - Gearing | 0.34 | 0.22 | 0.21 | 0.43 | n.s. |