EDF / 2018 Reference document

FINANCIAL STATEMENTS Income Statement

16.3

CHANGE IN DEFERRED TAX ASSETS AND LIABILITIES

2018

2017

(in millions of euros) Deferred tax assets Deferred tax liabilities

1,220

1,641

(2,362) (1,142)

(2,272)

Net deferred taxes at 1 January

(631) (189) (437)

Change in net income

508

Change in equity

(354)

Translation adjustments

23

61 22 32

Changes in scope of consolidation

(28) (16)

Other movements

NET DEFERRED TAXES AT 31 DECEMBER

(1,009)

(1,142)

Deferred tax assets Deferred tax liabilities

978

1,220

(1,987)

(2,362)

€(309) million of the change in 2018 in deferred tax assets included in equity results from actuarial gains and losses on post-employment benefits (€(349) million in 2017).

16.4

BREAKDOWN OF DEFERRED TAX ASSETS AND LIABILITIES BY NATURE

6.

31/12/2018

31/12/2017

(in millions of euros) Deferred taxes: Fixed assets

(5,627)

(5,419)

Provisions for employee benefits Other provisions and impairment

4,493

5,203

557 172

378 163

Financial instruments

Tax loss carryforwards and unused tax credits

1,448

1,289

Other

187

132

Total deferred tax assets and liabilities

1,230

1,746

Unrecognised deferred tax assets

(2,239) (1,009)

(2,888) (1,142)

NET DEFERRED TAXES

At 31 December 2018, unrecognised deferred tax assets represent a potential tax saving of €2,239 million (€2,888 million at 31 December 2017), mainly relating to France and the United States. In France, this potential tax saving, which amounts to €1,449 million at 31 December 2018 (€2,043 million at 31 December 2017), essentially concerns deferred tax assets on employee benefits. These deferred tax assets have no expiry date. In the United States, this potential tax saving amounts to €485 million (€499 million in 2017) and relates to negative taxable earnings generating losses which can be carried forward until dates between 2029 and 2039.

Recognised deferred tax assets on tax loss carryforwards amount to €662 million (€497 million in 2017) and principally concern the United States (€230 million in 2018, €199 million in 2017), France (€214 million in 2018, €51 million in 2017), Canada and Belgium. They have been recognised due to the existence of deferred tax liabilities on the same tax entities that will reverse over the same time horizon, or because there are prospects of taxable profits.

363

EDF I Reference Document 2018