Income Statement Disclosures
|in million €||2017||2016|
|Current tax expense||-136.4||-385.2|
|of which: taxes on income for the financial year||-137.7||-281.9|
|of which: taxes on income for previous years||1.3||-103.3|
|Total taxes on income||-133.0||-396.1|
|in million €||31 Dec. 2017||31 Dec. 2016|
|Deferred tax assets||Deferred tax liabilities||Deferred tax assets||Deferred tax liabilities|
|Property, plant and equipment||253.3||377.1||122.5||374.5|
|Non-current financial assets||14.1||8.7||33.0||36.8|
|Receivables and other assets||58.0||20.4||58.5||44.5|
|Other off-balance sheet transactions||0.8||0.0||1.6||0.0|
|Total deferred tax assets/liabilities||1,168.5||744.1||1,121.1||745.6|
|Amount recognised in the balance sheet||465.3||40.9||446.7||71.2|
To the extent that the realisation of the deferred tax asset depends on future taxable profits exceeding the earnings impact from the reversal of existing taxable temporary differences, deferred tax assets were recognised only if there were sufficient substantial indications for their realisation in future periods.
Deferred tax assets on tax loss carryforwards and temporary differences were recognised based on medium-term planning approved by management, reflecting tax adjustments. For one company, the realisation of the deferred tax asset depends on future taxable profits exceeding the earnings impact from the reversal of existing taxable temporary differences. Furthermore, the Company reported a negative corporation tax result for the current period. The deferred corporation tax asset was recognised based on a twelve-year planning horizon. Calculations based on the extending planning period were made on the basis of internal forecasts, the earnings effects of which will however not be felt by the respective companies until in the future.
The increase in deferred tax assets in relation to tax loss carryforwards was due primarily to the recognition of deferred tax assets, which had previously been impaired, in relation to loss carryforwards due to improved earnings and likelihoods of utilisation by domestic and foreign travel and tourism operators as well as the Italian consolidated tax group. This was offset by the reversal of deferred taxes due to the utilisation of loss carryforwards by RZF. The increase in deferred tax assets and liabilities in respect of property, plant and equipment primarily also consisted of additions in the context of acquisitions.
|in milion €||2017||2016|
|Corporate tax - loss carryforwards as at 31 Dec.||910.1||1,017.2|
|Corporate tax - unrecognised loss carryforwards as at 31 Dec.||647.4||842.6|
|Corporate tax - unrecognised loss carryforwards - expiration within 1 year||0.0||15.6|
|Corporate tax - unrecognised loss carryforwards - expiration within 2 years||0.0||14.7|
|Corporate tax - unrecognised loss carryforwards - expiration within 3 years||0.0||11.0|
|Corporate tax - unrecognised loss carryforwards - expiration within 4 years||0.0||8.9|
|Corporate tax - unrecognised loss carryforwards - expiration within 5 years||0.0||43.9|
|Corporate tax - unrecognised loss carryforwards - expiration after 5 years or no expiration||647.4||748.5|
|Trade tax - loss carryforwards as at 31 Dec.||442.3||364.3|
|Trade tax - unrecognised loss carryforwards as at 31 Dec.||315.6||239.3|
|Trade tax - unrecognised loss carryforwards - no expiration||315.6||239.3|
|Losses pursuant to § 15a EStG as at 31 Dec.||9.4||9.6|
|Losses pursuant to § 15a EStG - unrecognised loss carryforwards as at 31 Dec.||9.4||9.6|
|Losses pursuant to § 15a EStG - unrecognised loss carryforwards - no expiration||9.4||9.6|
|Corporate tax - interest carryforwards as at 31 Dec.||13.0||18.5|
|Corporate tax - unrecognised interest carryforwards as at 31 Dec.||0.7||4.4|
|Corporate tax - unrecognised interest carryforwards - no expiration||0.7||4.4|
|Trade tax - interest carryforwards as at 31 Dec.||10.3||14.1|
|Off-balance sheet tax benefit as at 31 Dec.||2.4||5.1|
The decrease in corporation tax loss carryforwards was due primarily to the utilisation of loss carryforwards at RZF and the German travel and tourism operators. In addition, loss carryforwards were utilised by the Italian consolidated tax group. The increase in trade tax loss carryforwards was due mainly to Supermärkte Nord Vertriebs GmbH & Co. KG, Kiel.
|in million €||2017||2016|
|Change in deferred taxes on items recognised directly in equity (IAS 39, IAS 19)||22.9||9.9|
|Change in deferred taxes from acquisitions/divestments recognised directly in equity||24.3||15.6|
|Change in deferred taxes from exchange rate changes recognised directly in equity||-2.4||-1.0|
|Change in deferred taxes due to temporary differences recognised through profit and loss||-14.4||78.5|
|Change in deferred taxes due to loss and interest carryforwards recognised through profit and loss||17.8||-89.4|
|Reclassification of changes in deferred taxes recognised through profit or loss in respect of discontinued operations||0.3||6.5|
|Reclassification of amount recognised in the balance sheet for deferred taxes recognised in respect of discontinued operations||0.4||-5.5|
The change in deferred taxes due to loss and interest carryforwards recognised through profit and loss was due primarily to the recognition of deferred tax assets, which had previously been impaired, in relation to loss carryforwards due to improved earnings and likelihoods of utilisation by domestic and foreign travel and tourism operators as well as the Italian consolidated tax group. Likewise, the recognition of deferred tax assets on new loss carryforwards also resulted in an increase in deferred tax income. This was offset by the reversal of deferred tax assets for the loss carryforwards utilised by RZF.
The change in deferred taxes relating to cash flow hedges which are recognised directly in equity (IAS 39) amounted to 15.9 million euros and the change in pension and similar obligations recognised directly in equity (IAS 19) amounted to 7.0 million euros. The change in deferred taxes recognised directly in equity relating to acquisitions and disposals concerned primarily the formation of the joint venture REWE Dortmund SE & Co. KG, Dortmund, and the acquisition of 64 store locations from the Kaiser's Tengelmann Group, including K-LOG Kaiser’s Tengelmann Logistik- und Dienstleistungsgesellschaft mbH, Berlin (now operating under the name REWE Berlin Logistik GmbH, Berlin).
|in million €||2017||2016|
|Earnings before taxes, continuing operations||474.8||888.4|
|Earnings before taxes, discontinued operations||-2.9||-35.9|
|Profit before taxes on income: profit (+)/loss (-)||471.9||852.5|
|Anticipated tax rate||30.0%||30.0%|
|Anticipated tax expense||-141.6||-255.8|
|Effects of different tax rates on the tax rate||31.4||8.9|
|Effects from tax rate changes||13.7||15.5|
|Effects from taxes from previous years recognised in the financial year||33.4||-108.7|
|Effects of non-allowable income taxes (withholding and foreign taxes)||-0.6||-3.0|
|Effects from non-deductible operating expenses||-15.7||-18.2|
|Effects of tax-free income||4.5||21.0|
|Effects from trade tax add-backs/reductions||-44.4||-38.4|
|Effects of permanent effects||-28.7||-36.0|
|Effects from transfers of assessment bases from/to non-consolidated companies||-5.2||2.9|
|Effects from recognition adjustments and write-downs of deferred tax assets||17.7||15.9|
|Effects from equity consolidation||1.4||5.9|
|Total tax income (+)/tax expense (-) as per reconciliation||-134.1||-390.0|
|of which: from continuing operations||-133.0||-396.1|
|of which: from discontinued operations||-1.1||6.1|
The Group tax rate for 2017 remains unchanged at 30.0 per cent, consisting of the corporate income tax with a tax rate of 15.0 per cent and the solidarity surcharge, which is levied at 5.5 per cent on the corporate income tax, in addition to the trade income tax.
The effective tax rate in the financial year was 28.4 per cent (previous year: 45.7 per cent). The year-on-year change in the tax rate was due mainly to the fact that the high tax burden of previous years no longer exists.
As at 31 December 2017, as on the previous year's balance sheet date, no deferred tax liabilities on undistributed profits of subsidiaries, joint ventures or associates were recognised because a distribution of these profits in the foreseeable future is not intended or discernible. Instead, these profits are continually reinvested.
The temporary differences in connection with investments in subsidiaries, joint ventures and associates, for which no deferred tax liabilities were recognised, were 658.9 million euros (previous year: 676.9 million euros) as at the balance sheet date.