EDF_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS Income Statement

16.3

CHANGE IN DEFERRED TAX ASSETS AND LIABILITIES

2017

2016

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

1,641

2,713

(2,272)

(4,122) (1,409)

Net deferred taxes at 1 January

(631) (189) (437)

Change in net income

498

Change in equity

33

Translation adjustments

61 22 32

185

Changes in scope of consolidation

60

Other movements

2

NET DEFERRED TAXES AT 31 DECEMBER

(1,142)

(631) 1,641

Deferred tax assets Deferred tax liabilities

1,220

(2,362)

(2,272)

€(349) million of the change in 2017 in deferred tax assets included in equity results in 2016), and €(294) million of this change concerns fair value movements on from actuarial gains and losses on post-employment benefits (€(191) million financial instruments and financial assets held for sale (€224 million in 2016).

6.

16.4

BREAKDOWN OF DEFERRED TAX ASSETS AND LIABILITIES BY NATURE

31/12/2017

31/12/2016

(in millions of euros) Deferred taxes: Fixed assets

(5,419)

(5,344)

Provisions for employee benefits Other provisions and impairment

5,203

6,051

378 163

377 232

Financial instruments

Tax loss carryforwards and unused tax credits

1,289

1,279

Other

132

48

Total deferred tax assets and liabilities

1,746

2,643

Unrecognised deferred tax assets

(2,888) (1,142)

(3,274)

(631)

NET DEFERRED TAXES

At 31 December 2017, unrecognised deferred tax assets represent a potential tax saving of €2,888 million (€3,274 million at 31 December 2016), mainly relating to France and the United States. In France, this potential tax saving, which amounts to €2,043 million at 31 December 2017 (€2,385 million at 31 December 2016), 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 €499 million (€734 million in 2016) and mainly corresponds to losses carried forward, with expiry dates between 2029 and 2036. Recognised deferred tax assets on tax loss carryforwards amount to €497 million (€438 million in 2016) and principally concern the United States (€199 million in 2017, €135 million in 2016), France (€51 million in 2017, €111 million in 2016), Canada and Italy. 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 in view of prospects for taxable profits.

343

EDF I Reference Document 2017