27. Income Taxes

Deferred income taxes are calculated in full on temporary differences arising, in the various countries, between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. The liability method is applied, using tax rates prevailing at the balance sheet dates in the different jurisdictions.

in thousands of EUR

Notes

2015

2014

The gross movement on the deferred income tax assets is as follows:

At 1 January

80,912

48,356

Acquisitions

6

2,407

4,875

Income Statement charge

- 8,374

17,857

Change because of income rate change

- 318

- 138

Processed through Other comprehensive income

- 2,246

5,747

Reclassification

- 2,864

5,067

Exchange differences

- 2,331

- 852

At 31 December

67,186

80,912

Analysis of the deferred income tax assets is as follows:

- Deferred income tax asset to be recovered after more than 12 months

42,466

65,141

- Deferred income tax asset to be recovered within 12 months

24,720

15,771

67,186

80,912

The gross movement on the deferred income tax liability is as follows:

At 1 January

141,378

117,086

Acquisitions

6

9,046

17,831

Income Statement charge

- 2,473

2,338

Change because of income rate change

- 970

- 446

Processed through Other comprehensive income

- 105

94

Reclassification

- 2,394

4,963

Exchange differences

- 1,917

- 488

At 31 December

142,565

141,378

Analysis of the deferred income tax liabilities is as follows:

- Deferred income tax liability to be recovered after more than 12 months

130,389

132,912

- Deferred income tax liability to be recovered within 12 months

12,176

8,466

142,565

141,378

Net deferred income taxes

75,379

60,466

Deferred income tax assets

in thousands of EUR

31 December 2015

31 December 2014

Property, plant and equipment

4,878

4,787

Inventories

4,698

4,483

Other intangible assets

5,075

6,726

Post-employment benefits

11,587

16,359

Derivative financial instruments

391

1,011

Goodwill

1,249

914

Provisions

9,453

4,538

Deferred revenue and to be invoiced amounts

7,552

4,375

Trade and other payables

3,073

11,603

Deferred taxes on temporary differences

47,956

54,796

Deferred taxes on carry forward losses

19,230

26,116

Total deferred income tax assets

67,186

80,912

Deferred income tax liabilities

in thousands of EUR

31 December 2015

31 December 2014

Property, plant and equipment

10,839

12,882

Inventories

1

16

Other intangible assets

90,804

85,840

Post-employment benefits

49

25

Derivative financial instruments

3

198

Goodwill

33,524

31,088

Provisions

5,107

2,469

Deferred revenue and to be invoiced amounts

842

1,145

Trade and other payables

1,396

7,715

Total deferred income tax liabilities

142,565

141,378

Deferred income tax assets on carryforward losses have been recognized for an amount of €19,230 (2014: €26,116).The losses are recognized based on future expected results taking into consideration the expiration date of historical losses and other tax regulations. The related income tax losses amount to €71,799, estimated during budget and forecast planning process.

Unrecognized income tax losses amount to €208,401. These tax losses expire as follows:

in thousands of EUR

31 December 2015

31 December 2014

Expiring within one year

6,607

11,234

Expiring between one and two years

4,056

5,031

Expiring between two and five years

25,695

26,111

Expiring after more than five years

8,337

6,726

Offsettable for an unlimited period

163,706

172,935

208,401

222,037