BIC - 2020 Universal Registration Document

FINANCIAL STATEMENTS

Consolidated financial statements

Reconciliation between theoretical income tax expense and effective income tax expense:

December 31, 2020

December 31, 2019

(in thousand euros)

Income before tax

251,445

155,336

Tax rate

34.43%

32.02%

Theoretical tax expense

86,572

49,739

Effects of: differences in tax rates •

(16,942)

(11,196)

income taxed at reduced rate •

(10)

(64)

initial recognition exemptions •

10,490

20,784

intra-Group accruals eliminations •

(3,588)

139

tax assets not recognized on tax losses •

6,135

6,663

tax assets/liabilities not recognized on prior years •

5,698

615

tax assets recognized on prior year tax losses •

327

71

tax credits •

(13,914)

(5,417)

foreign exchange differences •

582

277

INCOME TAX EXPENSE

75,350

61,611

EFFECTIVE TAX RATE

29.97%

39.66%

In addition, as of December 31, 2020, the BIC Group has 42 million euros of unrecognized deferred tax assets relating to unused tax losses, versus 40.0 million euros in 2019.

7-2

Deferred and current tax recognized in other comprehensive income

Accounting policies See: Note 13.

Deferred and current taxes recognized in other comprehensive income result from the following items:

December 31, 2020

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on defined-benefit plans (1)

(13,823)

3,075

Other comprehensive income (2)

(119,538)

(5,842)

Cash flow hedge

22,763

(6,775)

Foreign exchange impact

(142,303)

933

Other

3

-

TOTAL (1)+(2)

(133,361)

(2,767)

December 31, 2019

Other comprehensive income

Deferred taxes

(in thousand euros)

Actuarial differences on defined-benefit plans (1)

(8,092)

1,809

Other comprehensive income (2)

6,637

1,805

Cash flow hedge

872

(434)

Foreign exchange impact

5,761

2,239

Other

5

(1)

TOTAL (1)+(2)

(1,455)

3,614

229

• BIC GROUP - 2020 UNIVERSAL REGISTRATION DOCUMENT •

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