EDF / 2020 Universal Registration Document

6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

9.3

Change in deferred tax assets and liabilities

2020

2019

(in millions of euros)

Deferred tax assets Deferred tax liabilities

557

978

(2,295) (1,738)

(1,987) (1,009)

Net deferred taxes at 1 January

Change in net income

(198) (215)

28

Change in equity

(402)

Translation adjustments

72 69 45

(66)

Changes in scope of consolidation*

(275)

Other movements

(14)

NET DEFERRED TAXES AT 31 DECEMBER

(1,965)

(1,738)

Deferred tax assets Deferred tax liabilities

1,150

557

(3,115)

(2,295)

Changes in the scope of consolidation essentially concern the reclassification of E&P concession assets as assets held for sale. *

In 2020, €(238) million of the change in deferred tax assets included in equity results from actuarial gains and losses on post-employment benefits (€(69) million in 2019).

9.4

Breakdown of deferred tax assets and liabilities by nature

31/12/2020

31/12/2019

(in millions of euros)

Deferred taxes: Fixed assets

(6,194)

(6,141)

Provisions for employee benefits Other provisions and impairment

5,222

5,018

321 290

561

Financial instruments

74

Tax loss carryforwards and unused tax credits

1,172

1,292

Other

711

333

Total deferred tax assets and liabilities

1,523

1,137

Unrecognised deferred tax assets

(3,489) (1,965)

(2,875) (1,738)

NET DEFERRED TAXES

At 31 December 2020, unrecognised deferred tax assets represent a potential tax saving of €3,489 million (€2,875 million at 31 December 2019), mainly relating to France and the United States. In France, this potential tax saving, which amounts to €2,900 million (€2,091 million at 31 December 2019), 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 €428 million (€473 million in 2019) and relates mainly to negative taxable earnings generating losses which can be carried forward until dates between 2030 and 2037 (in the case of losses generated before 31 December 2017), or for an unlimited period (in the case of losses generated after that date).

Recognised deferred tax assets on tax loss carryforwards and unused tax credits amount to €584 million (€543 million in 2019) and principally concern the United States (€151 million in 2020, €197 million in 2019), United Kingdom (€173 million in 2020, €118 million in 2019), France (€52 million in 2020, €37 million in 2019) and in Germany (€47 million in 2020, €26 million in 2019). 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.

335

EDF - UNIVERSAL REGISTRATION DOCUMENT 2020