Anglo American Annual Report 2012

FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS27. DEFERRED TAX continuedThe amount of deferred tax credited/(charged) to the income statement is as follows:US$ million 2012 2011Capital allowances in excess of depreciation (22) (615)Fair value adjustments (133) (118)Tax losses 11 167Derivatives 99 36Provisions 41 82Chilean withholding taxes 86 (137)Other temporary differences(1)1,008 351,090 (550)(1)In 2012 this principally relates to Minas-Rio ($960 million credit). This is made up of a deferred tax credit of $1,360 million in relation to the impairment of Minas-Rio and a deferred tax charge of$400 million in relation to the partial derecognition of a deferred tax asset for enhanced tax depreciation in Minas-Rio.The current expectation regarding the maturity of deferred tax balances is as follows:US$ million 2012 2011Deferred tax assetsRecoverable within one year 131 52Recoverable after one year 1,092 4781,223 530Deferred tax liabilitiesPayable within one year (368) (505)Payable after one year (5,701) (5,225)(6,069) (5,730)The Group has the following balances in respect of which no deferred tax asset has been recognised:Taxlosses –revenueTaxlosses –capitalOthertemporarydifferences2012 2011Taxlosses –revenueTaxlosses –capitalOthertemporarydifferencesUS$ millionTotalTotalExpiry dateWithin one year 17 – – 17 – – – –Greater than one year, less than five years 286 – – 286 – – – –Greater than five years 3 – 2,997 3,000 111 – – 111No expiry date 4,467 1,097 1,953 7,517 3,082 1,067 403 4,5524,773 1,097 4,950 10,820 3,193 1,067 403 4,663The Group also has unused tax credits of $16 million (2011: $18 million) for which no deferred tax asset is recognised in the balance sheet. All of these creditsexpire within five years.No deferred tax has been recognised in respect of temporary differences associated with investments in subsidiaries, branches and associates and interestsin joint ventures where the Group is in a position to control the timing of the reversal of the temporary differences and it is probable that such differenceswill not reverse in the foreseeable future. The aggregate amount of temporary differences associated with such investments in subsidiaries, branches andassociates and interests in joint ventures is represented by the contribution of those investments to the Group’s retained earnings and amounted to$22,442 million (2011: $25,876 million).28. RETIREMENT BENEFITSThe Group operates a number of defined contribution and defined benefit pension plans. It also operates post employment medical arrangements,principally in southern Africa.Defined contribution plansThe defined contribution pension and medical cost represents the actual contributions payable by the Group to the various plans. At 31 December 2012 therewere no material outstanding or prepaid contributions and so no accrual or prepayment has been disclosed in the balance sheet in relation to these plans.The assets of the defined contribution plans are held separately in independently administered funds. The charge in respect of these plans is calculated on thebasis of the contribution payable by the Group in the financial year. The charge for the year for defined contribution pension plans (net of amounts capitalised)was $262 million (2011: $254 million) and for defined contribution medical plans (net of amounts capitalised) was $69 million (2011: $57 million).Defined benefit pension plans and post employment medical plansFollowing the Group’s acquisition of De Beers on 16 August 2012, the Group has consolidated the defined benefit pension and post employment healthcareplans of De Beers.The majority of the defined benefit pension plans are funded. The assets of these plans are held separately from those of the Group, in independentlyadministered funds, in accordance with statutory requirements or local practice throughout the world. The unfunded liabilities are principally in relation totermination indemnity plans in South America.The post employment medical arrangements provide health benefits to retired employees and certain dependants. Eligibility for cover is dependent uponcertain criteria. The majority of these plans are unfunded, and are principally in southern Africa.The Group’s provision of anti-retroviral therapy to HIV positive staff has not significantly impacted the post employment medical plan liability.Independent qualified actuaries carry out full valuations every three years using the projected unit credit method. The actuaries have updated the valuationsto 31 December 2012.174 Anglo American plc Annual Report 2012