EDF / 2019 Universal registration document

6. Financial statements

Notes to the consolidated financial statements

17.3

Change in deferred tax assets and liabilities

2019

2018

(in millions of euros)

Deferred tax assets Deferred tax liabilities

978

1,220

(1,987) (1,009)

(2,362) (1,142)

Net deferred taxes at 1 January

Change in net income

28

508

Change in equity

(402)

(354)

Translation adjustments

(66)

23

Changes in scope of consolidation  (1)

(275)

(28) (16)

Other movements  (2)

(14)

NET DEFERRED TAXES AT 31 DECEMBER

(1,738)

(1,009)

Deferred tax assets Deferred tax liabilities

557

978

(2,295)

(1,987)

Changes in the scope of consolidation essentially concern the reclassification of E&P concession assets as assets held for sale. (1) This includes the reclassification of the provision for tax litigation as deferred tax liabilities in the amount of €235 million, in compliance with IFRIC 23 (see (2) note 35) and a deferred tax asset relating to the tax inspections of EDF International (see note 50.1).

In 2019, €(69) million of the change in deferred tax assets included in equity results

in 2018), and €(233) million corresponds to changes in the fair value of commodity

from actuarial gains and losses on post-employment benefits (€(309) million hedges (€(11) million in 2018).

17.4

Breakdown of deferred tax assets and liabilities by nature

31/12/2019

31/12/2018

(in millions of euros)

Deferred taxes: Fixed assets

(6,141)

(5,627)

Provisions for employee benefits Other provisions and impairment

5,018

4,493

561

557 172

Financial instruments

74

Tax loss carryforwards and unused tax credits

1,292

1,448

Other

333

187

Total deferred tax assets and liabilities

1,137

1,230

Unrecognised deferred tax assets

(2,875) (1,738)

(2,239) (1,009)

NET DEFERRED TAXES

At 31 December 2019, unrecognised deferred tax assets represent a potential tax saving of €2,875 million (€2,239 million at 31 December 2018), mainly relating to France and the United States. In France, this potential tax saving, which amounts to €2,091 million (€1,449 million at 31 December 2018), 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 €473 million (€485 million in 2018) and relates to negative taxable earnings generating losses which can be carried forward until dates between 2030 and 2037.

Recognised deferred tax assets on tax loss carryforwards amount to €395 million (€662 million in 2018) and principally concern the United States (€197 million in 2019, €230 million in 2018), France (€37 million in 2019, €214 million in 2018). 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.

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EDF | Universal registration document 2019

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