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FINANCIAL INFORMATION
4.2 Consolidated financial statements
4
202
Registration Document 2016 — Capgemini
Recognized deferred tax assets
Deferred tax assets and movements therein break down as follows:
in millions of euros
Note
Tax loss
carry-
forwards
on
amortizable
goodwill
Temporary
differences
Provisions
for pensions
and other
post-
employment
benefits
deductible
temporary
differences
Other
Total
deferred
tax assets
At January 1, 2015
562
90
315
98
1,065
Business combinations
13
-
4
(66)
(49)
Translation adjustments
28
(2)
7
(9)
24
Deferred tax recognized in the Income Statement
10
440
(48)
(13)
43
422
Deferred tax recorded in income and expense
recognized in equity
(1)
-
7
11
17
Other movements, including offset with deferred
tax liabilities
(98)
-
(24)
55
(68)
At December 31, 2015
944
40
296
132
1,412
Business combinations
-
-
-
2
2
Translation adjustments
20
9
(17)
(1)
11
Deferred tax recognized in the Income Statement
10
(46)
120
(15)
(24)
35
recognized in equity
Deferred tax recorded in income and expense
(27)
-
22
12
7
Other movements
1
-
(5)
10
6
A
U DECEMBER 31, 2016
892
169
281
131
1,473
Recognized tax loss carry-forwards total €895 million at
amount of €638 million (US$672 million) and France in the amount
December 31, 2016 and primarily concern the United States in the
of €237 million.
carry-forwards
US deferred tax assets and tax loss
The acquisition of Ernst & Young’s North American consulting
over a period of 15 years, of the difference between the
business in 2000 gave rise to the amortization for tax purposes,
and liabilities acquired. Since 2000 and up to May 2015, the
acquisition price of the business and the tax base of the assets
annual amortization charge has been deducted each year from US
of 20 years.
tax profits. Annual tax losses can be carried forward for a period
At December 31, 2016, the cumulative amount of US tax losses
carried forward totaled €2,695 million (US$2,840 million).
Following the use and recognition in 2016 of net deferred tax
and US$21 million (€19 million), respectively, the balance was
assets on other timing differences of US$138 million (€125 million)
remeasured resulting in the recognition of a net deferred tax asset
unchanged on December 31, 2015, including tax loss
of US$695 million (€659 million) at December 31, 2016,
base of US$1,736 million (€1,647 million).
carryforwards of US$672 million (€638 million) representing a tax
of US$1,104 million (€1,048 million).
Unrecognized deferred tax assets therefore represent a tax base