ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...

GROUP
2010 2009
Reconciliation SEK M % SEK M %
Earnings after financial items 639.3 588.4
Income tax calculated at standard
rate in Sweden, 26.3 percent
–168.1 26.3 –154.8 26.3
Effect of different tax rates
in other countries
62.1 –9.7 70.1 –11.9
Tax effect of tax-exempt income
and non-deductible expenses
–10.5 1.6 –28.1 4.8
Unrecognized tax assets
pertaining to loss carryforwards
Utilized previously unrecognized
–56.1 8.8 –99.3 16.9
tax assets pertaining to loss
carryforwards
5.9 –0.9 2.6 –0.4
Adjustments to previous
years and other
–20.6 3.2 61.7 –10.6
Total tax on net earnings
for the year
–187.3 29.3 –147.8 25.1
Unrecognized tax assets for loss carryforwards relate to the positive tax effect
during the year, which arise through utilization of loss carryforwards that had
never previously been recognized as deferred tax assets, and the negative tax
effect during the year that is due to losses in countries where there has been
no recognition of deferred tax assets as it is not likely enough that sufficient
taxable surpluses will arise within a foreseeable future. Adjustments to previous
years and other includes the two above-mentioned non-recurring items.
Corresponding reconciliation for the Parent Company:
PARENT COMPANY
2010 2009
Reconciliation SEK M % SEK M %
Earnings after financial items –339.8 1 116.7
Income tax calculated at standard
rate in Sweden, 26.3 percent
89.4 26.3 –293.7 26.3
Tax effect of tax-exempt income
and non-deductible expenses
Effect on deferred tax assets of
change in tax rate in Sweden
Total tax on net earnings
for the year
–66.0 –19.4 –294.6 26.4
–7.4 2.2 663.1 –59.4
16.0 4.7 74.8 –6.7
Tax-exempt income in the Parent Company consists of share dividends and
similar transfers from subsidiaries as well as gains on intra-Group share sales.
The Parent Company has accumulated loss carryforwards of SEK 1,100.0
M (715.6) at year-end 2010 as a result of both income items and unrealized
translation differences recognized in other comprehensive income.
When differences arise between the tax value and carrying value of assets
and liabilities, a deferred tax asset or tax liability is recognized. Such temporary
differences arise mainly for provisions for pensions and fixed assets.
Deferred tax assets include the value of loss carryforwards in the instances
where they are likely to be utilized to offset taxable surpluses within the foreseeable
future.
Asset/
Liability
GROUP
2010 2009
Income/
Expense
Asset/
Liability
Income/
Expense
Legal outlays 14.2 –1.6 15.8 1.5
Purchased debt –12.8 1.5 16.0 22.8
Intangible assets –27.9 –0.1 –22.9 5.7
Loss carryforwards 39.1 –42.9 82.0 –15.7
Provisions for pensions 4.8 –0.5 5.3 –0.4
Other –20.8 17.7 –14.0 1.8
Total –3.4 –25.9 82.2 15.7
Deferred tax assets 75.9 –43.1 117.2 –12.3
Deferred tax liabilities –79.3 17.2 –35.0 28.0
Total –3.4 –25.9 82.2 15.7
NOTE 9
EARNINGS PER SHARE
Net earnings for the year attributable to
Parent Company’s shareholders (SEK M)
Number of shares outstanding
at beginning of year
Increase in share capital through
exercise of employee stock options
Number of shares outstanding
at year-end
Weighted average number of
shares during the year before dilution
Dilution effect attributable to employee
stock option program
Weighted average number of shares
during the year after dilution
Notes
The deferred tax assets and income tax liabilities are expected to be due for
payment in over one year.
The Group has loss carryforwards that can be utilized against future
earnings totaling SEK 2,289.2 M (1,962.6). Of this amount, SEK 129.5 M
(287.7) serves as the basis of the deferred tax assets of SEK 39.1 M (82.0)
recognized in the balance sheet, since the tax loss carryforwards are expected
to be utilized against taxable earnings in the years ahead. Deferred tax
assets are recognized for companies in Germany, Belgium, Denmark, Norway
and Slovakia. The recognition is based on an assessment of the possibility
of achieving positive taxable earnings again over the next few years.
The loss carryforwards for which no deferred tax assets are recognized
relate to the UK and other countries, totaling SEK 326.7 M (359.2).
Tax items reported in other
comprehensive income or directly against shareholders’ equity
GROUP PARENT COMPANY
SEK M 2010 2009 2010 2009
Current tax attributable to
Group contributions received
– – –16.1 –143.3
Total 0.0 0.0 –16.1 –143.3
GROUP
2010 2009
452.0 440.5
79,744,651 79,342,171
– 402,480
79,744,651 79,342,171
79,744,651 79,658,944
– 23,029
79,744,651 79,681,973
Earnings per share before dilution (SEK) 5.67 5.53
Earnings per share after dilution (SEK) 5.67 5.53
The Group’s Employee Stock Option Program 2003/2009 entailed new share
issues during the year when option holders exercised their options. The last
options were exercised in May 2009 and the program has thus been concluded.
The dilution effect has been calculated according to the rules in IAS 33
Earnings per Share and consists of the difference between the number of shares
added through the option program and the number of shares at market value
that correspond to the subscription proceeds.
The Group also has a Performance-Based Share Program introduced in
2008, where up to 136,710 shares can be subscribed by employees of the
Group during the periods May 15, 2010–May 15, 2012 and May 15, 2011–
May 15, 2013. The shares can be purchased by employees provided that certain
performance conditions have been met, including in terms of growth in
earnings per share. The performance conditions were not met for the shares
in any part of the program and the rights expired without value. They did not
imply any dilution effect in 2009 or 2010.
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