Hermès // 2021 Universal Registration Document

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Deferred taxes 6.3 The net change in deferred tax assets and liabilities breaks down as follows:

2021 475

2020 511

In millions of euros

Deferred tax assets at 1 January Deferred tax liabilities at 1 January Net deferred tax assets at 1 January

22

25

453

486

Income statement impact

14

5

Scope impact

-

(1)

Exchange rate impact

15 49

(15) (21) 453 475

Equity impact

Net deferred tax assets as at 31 December

531 546

Balance of deferred tax assets at the end of the period Balance of deferred tax liabilities at the end of the period

15

22

The impact on equity mainly concerns the change in deferred taxes related to: revaluations recognised in equity (investments and financial investments and hedging of future cash flows); s actuarial gains and losses on employee benefit obligations; s the change in service cost allocation method in the calculation of post-employment benefit obligations (see Note 1.2). s These movements had no impact on net income for the year (see Note 11.5). Deferred taxes mainly relate to the following adjustments:

31/12/2021

31/12/2020

In millions of euros

Internal margins on inventories and provisions for inventories

325

334

5

Employee benefits

61 19 35

84

Derivatives

(38)

Impairment losses Regulated provisions

29

(17) 109 531

(34)

Other TOTAL

77

453

Deferred tax assets linked to tax loss carry-forwards were not material as at 31 December 2021 and 2020. As at 31 December 2021, tax loss carry-forwards that did not lead to the recognition of deferred tax assets represented potential tax savings of €40 million (compared with €46 million in 2020).

2021 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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