Consolidated Financial Statements and Consolidated Management ...
Consolidated Financial Statements and Consolidated Management ... Consolidated Financial Statements and Consolidated Management ...
The reconciliation between the accounting profit or loss, the corporation tax base, current and deferred tax for the year, is as follows (in thousand euros): Consolidated profit (loss) before tax Adjustments to accounting profit (loss): Accounting consolidation adjustments (1) Spain Germany (2) Romania Poland Switzerland Luxembourg 2011 2010 Latin America (3) Italy Netherlands (4) Portugal TOTAL Spanish Companies Other Companies (59,766) 25,889 349 58 (708) 2,943 14,135 2,147 19,155 100 4,301 (32,142) (20,413) - (32,407) - - - - - - 25,000 - (7,407) - 43,500 Due to permanent differences 24,661 11,700 157 (4) 1,080 (2,684) (16,212) (10,003) (8,266) (32) 397 (25,573) (29,412) Due to temporary differences 2,998 (4,995) - - - (46) 10,156 38,249 6,089 - 52,451 31,536 (35,120) Tax base (Taxable profit or loss) (32,107) 187 506 54 372 213 8,079 30,393 41,978 68 49,742 (26,178) (128,445) Current taxes to be refunded / (pay) 509 1,885 - (1) - 6 (3,576) (529) (3,316) - (5,021) - - Total current tax income / (expense) 10,530 (1,727) (81) (10) (55) (71) 578 2,466 (8,972) (16) 2,642 10,136 (17,667) Total deferred tax income 417 - - - - - 2,799 496 1,522 - 5,234 9,461 3,179 Total deferred tax expense - (1,664) - - - (12) - - - - (1,676) - - Total Corporation Tax income / (expense) 10,947 (3,391) (81) (10) (55) (83) 3,377 2,962 (7,450) (16) 6,200 19,597 (14,488) (1) Accounting adjustments for the asset repurchase and sale transaction in Germany and incorporation of the dividends received in Holland, which is eliminated in tax consolidation. (2) The Germany business area consolidates the profits and losses of France and the Czech Republic. (3) The Latin America business area includes the profits and losses obtained by the Group in Argentina, Mexico, Uruguay, the Dominican Republic, Colombia, Chile, Panama and Brazil. (4) The Netherlands business area includes Belgium and South Africa. Financial years subject to tax inspection The last four financial years of the Tax Consolidation Group are open to inspection in accordance with Spanish tax legislation. Regarding the financial years open to inspection, contingent liabilities not susceptible to objective quantification may exist, which are not significant in the opinion of the Group’s Directors. Write-offs applied by the consolidated tax group of the Parent Company Write offs generated during the financial year are essentially due to export activity investments, double taxation and donations. No write offs for investments in environmental impact reduction measures were applied or credited to calculate Corporation Tax. At 31 December 2011, the Tax Group held the following tax incentive carry forwards (in thousand euros): Year of Origin Write-off pending Amount 2002 to 2010 Investment in export activity 29,047 2006 to 2011 Tax write off to avoid double taxation 14,493 2002 to 2010 Others 4,104 47,644 Similarly, the consolidated tax group of the Parent Company took advantage in prior years of the “Deferral of extraordinary profits for re-investment” scheme. The essential characteristics of such re-investment are as follows (thousands of euros): Amount offset Year of origin Revenue subject to deferral Prior years 2011 Outstanding Amount Last year of deferral 1999 75,145 48,711 682 25,752 2049 2001 4,335 3,715 620 - 2011 All these revenues were reinvested through various financial interests, except for those originating in 1999, which were re-invested in the acquisition of real estate. Revenue from previous year written off for the re-investment of extraordinary profits in accordance with the provisions set forth in Article 42 of the Revised Text of the Company Tax act is shown below (thousands of euros). Financial year Date of transfer Revenue Write-off Company generating the subject Applied Outstanding capital gain Company reinvesting 2008 June 7,021 - 843 NH Hoteles España S.L. NH Hotel Rallye, S.A. 2008 June 19,630 - 2.356 NH Hotel Rallye, S.A. NH Hotel Rallye, S.A. 2008 June 3,627 - 435 Hotelera Onubense, S.A. NH Hotel Rallye, S.A. 2008 June 1,583 - 190 Gran Círculo de Madrid, S.A. NH Hotel Rallye, S.A. The capital gains obtained in 2008 were re-invested in 2009 through the Group’s acquisition of new shares in its Italian subsidiary through NH Hotel Rallye, S.A. These shares were issued as a result of an increase of capital amounting to 73 million euros allocated to acquire new hotels and refurbish existing hotels. There is an obligation to maintain the investment during a three year period. 94 REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
Negative tax bases At 31 December 2011, the consolidated tax group of which NH Hoteles, S.A. is the parent company had the following tax loss carry-forwards: Financial year Thousand euros Maturity 2007 8,992 2025 2008 20,424 2026 2009 96,752 2027 2010 74,173 2028 2011 47,415 2029 Total 247,756 At the year-end, the Italian Business Unit had negative tax bases available to carry forward for the amount of 7,475,000 euros, which do not have an expiry date due to a recent amendment to Italian legislation. NH Central Reservation Office, S.L. (formerly called Retail Invest, S.A.); Latinoamericana de Gestión Hotelera, S.A.; Hoteles Hesperia, S.A.; Nuevos Espacios Hoteleros, S.A; and Explotaciones Hoteleras Cóndor, S.L. obtained negative tax bases before their incorporation into the Group of which NH Hoteles, S.A. is the parent company. The amounts of the above mentioned tax loss carry-forwards that can only offset positive results of the aforementioned companies when the Group obtains a positive tax base, are as follows (thousands of euros): Year of origin Amount Offsetting Deadline 1997 11,107 2015 1998 4,119 2016 1999 - 2017 2000 - 2018 2001 17,713 2019 2002 19,037 2020 2003 25,900 2021 2004 8,438 2022 2005 1,595 2023 2006 15,240 2024 2007 2,332 2025 2008 2,621 2026 2009 850 2027 2010 330 2028 109,283 22. TRADE CREDITORS The breakdown of this item in the consolidated balance sheet at 31 December 2011 and 2010 is as follows (thousands of euros): Thousand euros 2011 2010 Trade creditors 214,826 207,307 Advance payments from customers 20,852 19,573 235,678 226,880 The “Trade creditors” item reflects the accounts payable arising from the Group’s regular trading activities. The “Advance payments from customers” item mainly includes customer deposits arising from the Group’s hotel and real estate businesses. Sotogrande, S.A. included advance payments from customers for the amount of 1.74 million euros in 2011 (2.66 million euros at 31 December 2010). REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 95
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Negative tax bases<br />
At 31 December 2011, the consolidated tax group of which NH Hoteles, S.A. is the parent company had the following tax loss carry-forwards:<br />
<strong>Financial</strong> year Thous<strong>and</strong> euros Maturity<br />
2007 8,992 2025<br />
2008 20,424 2026<br />
2009 96,752 2027<br />
2010 74,173 2028<br />
2011 47,415 2029<br />
Total 247,756<br />
At the year-end, the Italian Business Unit had negative tax bases available to carry forward for the amount of 7,475,000 euros, which do not have an expiry<br />
date due to a recent amendment to Italian legislation.<br />
NH Central Reservation Office, S.L. (formerly called Retail Invest, S.A.); Latinoamericana de Gestión Hotelera, S.A.; Hoteles Hesperia, S.A.; Nuevos Espacios<br />
Hoteleros, S.A; <strong>and</strong> Explotaciones Hoteleras Cóndor, S.L. obtained negative tax bases before their incorporation into the Group of which NH Hoteles, S.A.<br />
is the parent company.<br />
The amounts of the above mentioned tax loss carry-forwards that can only offset positive results of the aforementioned companies when the Group obtains<br />
a positive tax base, are as follows (thous<strong>and</strong>s of euros):<br />
Year of origin Amount Offsetting Deadline<br />
1997 11,107 2015<br />
1998 4,119 2016<br />
1999 - 2017<br />
2000 - 2018<br />
2001 17,713 2019<br />
2002 19,037 2020<br />
2003 25,900 2021<br />
2004 8,438 2022<br />
2005 1,595 2023<br />
2006 15,240 2024<br />
2007 2,332 2025<br />
2008 2,621 2026<br />
2009 850 2027<br />
2010 330 2028<br />
109,283<br />
22. TRADE CREDITORS<br />
The breakdown of this item in the consolidated balance sheet at 31 December 2011 <strong>and</strong> 2010 is as follows (thous<strong>and</strong>s of euros):<br />
Thous<strong>and</strong> euros<br />
2011 2010<br />
Trade creditors 214,826 207,307<br />
Advance payments from customers 20,852 19,573<br />
235,678 226,880<br />
The “Trade creditors” item reflects the accounts payable arising from the Group’s regular trading activities.<br />
The “Advance payments from customers” item mainly includes customer deposits arising from the Group’s hotel <strong>and</strong> real estate businesses. Sotogr<strong>and</strong>e, S.A.<br />
included advance payments from customers for the amount of 1.74 million euros in 2011 (2.66 million euros at 31 December 2010).<br />
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 95
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