25. 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

2014

2013

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

At 1 January

48,356

55,258

Acquisitions

5

4,875

-

Income Statement charge

17,857

1,220

Change because of income rate change

- 138

308

Processed through Other comprehensive income

5,747

- 5,116

Reclassification

5,067

- 1,858

Exchange differences

- 852

- 1,456

At 31 December

80,912

48,356

Analysis of the deferred income tax assets is as follows:

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

65,141

35,123

- Deferred income tax asset to be recovered within 12 months

15,771

13,233

80,912

48,356

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

At 1 January

117,086

127,472

Acquisitions

5

17,831

1,205

Income Statement charge

2,338

- 3,545

Change because of income rate change

- 446

- 2,817

Processed through other comprehensive income

94

- 2,217

Reclassification

4,963

-

Exchange differences

- 488

- 3,012

At 31 December

141,378

117,086

Analysis of the deferred income tax liabilities is as follows:

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

132,912

110,674

- Deferred income tax liability to be recovered within 12 months

8,466

6,412

141,378

117,086

Net deferred income taxes

60,466

68,730

Deferred income tax assets

in thousands of EUR

31 December 2014

31 December 2013

Property, plant and equipment

4,787

3,079

Inventories

4,483

3,029

Other intangible assets

6,726

4,629

Post-employment benefits

16,359

9,147

Derivative financial instruments

1,011

1,443

Goodwill

914

38

Provisions

4,538

2,034

Deferred revenue and to be invoiced amounts

4,375

4,061

Trade and other payables

11,603

5,748

Deferred taxes on temporary differences

54,796

33,208

Deferred taxes on carry forward losses

26,116

15,148

Total deferred income tax assets

80,912

48,356

Deferred income tax liabilities

in thousands of EUR

31 December 2014

31 December 2013

Property, plant and equipment

12,882

12,382

Inventories

16

23

Other intangible assets

85,840

76,449

Post-employment benefits

25

135

Derivative financial instruments

198

294

Goodwill

31,088

24,872

Provisions

2,469

471

Deferred revenue and to be invoiced amounts

1,145

836

Trade and other payables

7,715

1,624

Total deferred income tax liabilities

141,378

117,086

Deferred income tax assets on carryforward losses have been recognized for an amount of €26,116 (2013: €15,148). The related income tax losses amount to €99,799, estimated during budget and forecast planning process.

Unrecognized income tax losses amount to €222,037. These tax losses expire as follows:

in thousands of EUR

31 December 2014

31 December 2013

Expiring within one year

11,234

11,990

Expiring between one and two years

5,031

4,432

Expiring between two and five years

26,111

14,554

Expiring after more than five years

6,726

34,816

Offsettable for an unlimited period

172,935

130,950

222,037

196,742