SCH2017_DRF_EN_Livre.indb

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Consolidated financial statements at December 31, 2017 Notes to the consolidated financial statements

10.2 – Tax proof

Full year 2017

Full year 2016*

Profit attributable to owners of the parent Income of discontinued operations, net of income tax

2,150

1,750

(94)

(17)

Income tax (expense)/benefit Non-controlling interests Share of profit of associates

(600)

(719)

(60)

(61)

61

34

Profit before tax

2,843 27.5%

2,513 27.0%

Geographical weighted average Group tax rate

Reconciling items: Theoretical income tax expense

(782)

(679)

Difference between theoretical and effective tax rates Tax credits and other tax reductions

126 (31)

97

Impact of tax losses

(29)

Other permanent differences

75

11

Income tax (expense)/benefit before impact from tax reforms EFFECTIVE TAX RATE BEFORE IMPACT FROM TAX REFORMS

(612) 21.5%

(600) 23.9% (119) (719) 28.6%

Impact from the USA, French and Belgian tax reform in 2017 and French tax reform in 2016**

12

INCOME TAX (EXPENSE)/BENEFIT

(600) 21.1%

EFFECTIVE TAX RATE

* 2016 figures were restated for discontinued operations disclosed in note 1. ** Cf. note 10.1.

Theoretical tax expense from continuing operations is reconciled above from the Company’s weighted-average global tax rate (rather than from the French domestic statutory tax rate), as the Company’s consolidated income from continuing operations is predominantly generated outside of France.

NOTE 11 Goodwill 11.1 – Main items of goodwill Group goodwill is broken down by business as follows:

Dec. 31, 2017, net

Dec. 31, 2016, net

Low Voltage (Building)

5,647 5,763 3,136 1,877

5,518 6,383 3,353 2,531

Industrial Automation (Industry)

Secure Power (IT)

Medium Voltage (Infrastructure)

TOTAL

16,423

17,785

2017 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC

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