9. Income taxes
Income taxes in the income statement
EUR million |
2012 |
2011 |
Current year income taxes |
-20.7 |
-17.8 |
Prior year income taxes |
-0.1 |
0.2 |
Change in deferred taxes |
-0.7 |
12.1 |
Income taxes total |
-21.5 |
-5.5 |
|
|
|
|
|
|
| | | | | |
Reconciliation of income taxes
EUR million |
2012 |
2011 |
Tax rate for the parent company |
24.5% |
26.0% |
Profit before taxes |
196.7 |
161.8 |
Income tax using the domestic corporation tax rate |
-48.2 |
-42.1 |
Effect of tax rates in foreign jurisdictions |
-4.0 |
-2.3 |
Income tax for prior years |
-0.1 |
0.2 |
Impact of associate |
10.8 |
11.1 |
Effect of sales of Wärtsilä shares |
22.9 |
18.2 |
Other tax exempt items |
1.0 |
1.6 |
Effect of disposals |
|
1.0 |
Non-deductible expenses |
-0.9 |
-2.0 |
Effect of change of tax rates |
0.0 |
2.0 |
Tax booked against unbooked tax assets and unrecognized tax on loss |
-3.5 |
-2.9 |
Change in valuation of tax assets |
0.5 |
9.7 |
Other items |
0.0 |
-0.1 |
Income taxes recognized in profit and loss |
-21.5 |
-5.5 |
|
|
|
|
|
|
| | | | | |
Taxes in other comprehensive income
2012
EUR million |
Total |
Tax |
Net |
Translation differences |
-1.0 |
|
-1.0 |
Change in associate recognized directly in other comprehensive income |
0.1 |
|
0.1 |
Cash flow hedges |
-1.1 |
0.3 |
-0.8 |
Defined benefit plan actuarial gains (losses) |
-0.8 |
0.3 |
-0.5 |
Other comprehensive income for the period, total |
-2.8 |
0.6 |
-2.2 |
|
|
|
|
|
|
| | | | | |
2011
EUR million |
Total |
Tax |
Net |
Translation differences |
3.5 |
|
3.5 |
Change in associate recognized directly in other comprehensive income |
-2.4 |
|
-2.4 |
Cash flow hedges |
-0.7 |
0.2 |
-0.5 |
Defined benefit plan actuarial gains (losses) |
-0.5 |
0.2 |
-0.3 |
Other comprehensive income for the period, total |
-0.1 |
0.4 |
0.2 |
| | | | | |
Deferred income taxes in the balance sheet
2012
|
|
Recognized |
Recognized |
Transfers |
|
Deferred tax assets |
|
in |
in other |
and |
|
|
Jan 1, |
income |
comprehensive |
translation |
Dec 31, |
EUR million |
2012 |
statement |
income |
difference |
2012 |
Post-employment benefit |
2.6 |
0.0 |
0.2 |
0.0 |
2.7 |
Provisions |
10.0 |
0.2 |
|
0.0 |
10.1 |
Effects on consolidation and eliminations |
1.3 |
-0.6 |
|
-0.2 |
0.5 |
Property, plant & equipment |
0.7 |
-0.1 |
|
0.0 |
0.6 |
Tax losses and tax credits carried forward |
15.7 |
-1.1 |
|
-0.1 |
14.6 |
Valuation allowance of deferred tax assets |
-8.6 |
1.7 |
|
0.9 |
-6.0 |
Other temporary differences |
6.1 |
0.8 |
0.2 |
-1.0 |
6.1 |
Total deferred tax assets |
27.8 |
0.8 |
0.4 |
-0.4 |
28.6 |
Offset against deferred tax liabilities |
-0.8 |
-2.1 |
0.0 |
0.0 |
-2.9 |
Net deferred tax assets |
27.0 |
-1.3 |
0.4 |
-0.4 |
25.8 |
|
|
|
|
|
|
|
|
Recognized |
Recognized |
Transfers |
|
Deferred tax liabilities |
|
in |
in other |
and |
|
|
Jan 1, |
income |
comprehensive |
translation |
Dec 31, |
EUR million |
2012 |
statement |
income |
difference |
2012 |
Property, plant & equipment |
4.5 |
-0.6 |
|
-0.4 |
3.6 |
Fair value adjustments |
11.5 |
1.5 |
|
|
13.0 |
Effects on consolidation and eliminations* |
26.4 |
-0.3 |
|
|
26.0 |
Other temporary differences |
3.5 |
0.9 |
-0.2 |
0.4 |
4.6 |
Total deferred tax liabilities |
45.8 |
1.6 |
-0.2 |
0.0 |
47.1 |
Offset against deferred tax assets |
-0.8 |
-2.1 |
0.0 |
0.0 |
-2.9 |
Net deferred tax liabilities |
45.0 |
-0.5 |
-0.2 |
0.0 |
44.3 |
|
|
|
|
|
|
Deferred tax assets (+) / liabilities (-), net |
-18.0 |
|
|
|
-18.5 |
|
|
|
|
|
|
* Consist mainly of adjustments to fair value in acquisitions. |
| | | | | |
2011
Deferred tax assets |
|
Recognized |
Recognized |
Transfers |
|
|
|
in |
in other |
and |
|
|
Jan 1, |
income |
comprehensive |
translation |
Dec 31, |
EUR million |
2011 |
statement |
income |
difference |
2011 |
Post-employment benefit |
1.3 |
1.1 |
0.1 |
0.0 |
2.6 |
Provisions |
8.5 |
1.2 |
|
0.2 |
10.0 |
Effects on consolidation and eliminations |
1.3 |
-0.1 |
|
0.0 |
1.3 |
Property, plant & equipment |
0.9 |
-0.2 |
|
0.0 |
0.7 |
Tax losses and tax credits carried forward |
19.2 |
-2.9 |
|
-0.6 |
15.7 |
Valuation allowance of deferred tax assets |
-20.2 |
11.8 |
|
-0.2 |
-8.6 |
Other temporary differences |
4.7 |
1.1 |
0.2 |
0.1 |
6.1 |
Total deferred tax assets |
15.9 |
12.0 |
0.3 |
-0.4 |
27.8 |
Offset against deferred tax liabilities |
-0.7 |
0.0 |
0.0 |
-0.1 |
-0.8 |
Net deferred tax assets |
15.2 |
12.0 |
0.3 |
-0.5 |
27.0 |
|
|
|
|
|
|
Deferred tax liabilities |
|
Recognized |
Recognized |
Transfers |
|
|
|
in |
in other |
and |
|
|
Jan 1, |
income |
comprehensive |
translation |
Dec 31, |
EUR million |
2011 |
statement |
income |
difference |
2011 |
Property, plant & equipment |
4.3 |
0.1 |
|
0.0 |
4.5 |
Fair value adjustments |
11.2 |
0.3 |
|
|
11.5 |
Effects on consolidation and eliminations* |
30.0 |
-3.0 |
|
-0.6 |
26.4 |
Other temporary differences |
0.9 |
2.5 |
-0.1 |
0.1 |
3.5 |
Total deferred tax liabilities |
46.4 |
-0.1 |
-0.1 |
-0.4 |
45.8 |
Offset against deferred tax assets |
-0.7 |
0.0 |
0.0 |
-0.1 |
-0.8 |
Net deferred tax liabilities |
45.8 |
-0.1 |
-0.1 |
-0.6 |
45.0 |
|
|
|
|
|
|
Deferred tax assets (+) / liabilities (-), net |
-30.6 |
|
|
|
-18.0 |
|
|
|
|
|
|
| | | | | |
* Consist mainly of adjustments to fair value in acquisitions.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred taxes relate to the same fiscal authority. The Group has full control of dividend distribution in subsidiaries and therefore no deferred tax liability has been recorded. Associate Wärtsilä is a public company and its distribution of profit is tax exempt for Fiskars. Taxes relating to cash flow hedges and actuarial gains and losses have been recorded into other comprehensive income. The deferred tax on tax losses carried forward amounted to EUR 14.6 million (15.7) at the end of financial year. Deferred tax allowance is recorded to offset deferred tax assets in order to recognize the deferred tax assets only to the extent that it is probable that future taxable profits will be available. The tax losses carried forward, net of allowance will not expire in the following five years. Income taxes recorded in the income statement and in other comprehensive income are specified earlier in this note 9.