PRODUCTOS Y EFECTOS
II. E.1 ESPACIOS CULTUALES.
The decline in taxation diff erences compared with the previous year results from the changed tax rate in Germany. This now amounts to 29.5 percent, following 38.9 percent.
Other
The rise in other eff ects mainly results from tax reimbursements for prior years.
Deferred taxes
The table below provides a breakdown of deferred tax assets and liabilities by maturity:
Deferred tax assets and liabilities are netted if an enforceable right to off set actual tax assets against actual tax liabilities exists and if the deferred tax relates to income tax levied by the same tax authority.
(K EUR) 12/31/2008 12/31/2007
Current deferred tax assets 62,306 52,393
Non-current deferred tax assets 252,050 312,517
Total deferred tax assets 314,356 364,910
Current deferred tax liabilities 42,675 35,704
Non-current deferred tax liabilities 45,720 51,515
Total deferred tax liabilities 88,395 87,219
Net deferred tax assets 225,961 277,691
Notes to the Consolidated Financial Statements
The table below shows the stock of deferred taxes, without netting:
Deferred tax assets Deferred tax liabilities
(K EUR) 2008 2007 2008 2007
Property, plant and equipment 5,767 4,226 23,917 25,863
Intangible assets 1,265 1,835 26,942 16,451
Goodwill 75,782 85,112 41,347 39,489
Investments in enterprises reported at equity 19 - 213 116
Other fi nancial assets 10,741 10,088 3,648 5,496
Non-current assets 93,574 101,261 96,067 87,415
Inventories 22,810 22,156 3,314 5,046
Trade receivables 11,680 16,525 26,522 25,461
Other fi nancial assets 9,394 12,717 6,132 7,497
Cash and cash equivalents 113 13 96 11
Current assets 43,997 51,411 36,064 38,015
Assets held for sale 107 585 793 156
Total assets 137,678 153,257 132,924 125,586
Provisions 17,079 28,646 1,149 515
Obligations to employees 38,600 46,030 901 222
Financial liabilities 3,317 1,393 732 -
Other fi nancial liabilities 917 1,082 10,002 15,430
Non-current liabilities 59,913 77,151 12,784 16,167
Provisions 27,804 25,619 5,954 4,250
Obligations to employees 7,840 7,958 213 1,300
Financial liabilities 6,727 2,087 1,565 987
Trade payables 2,329 1,453 492 7,037
Other fi nancial liabilities 7,844 294 33,538 24,806
Current liabilities 52,544 37,411 41,762 38,380
Total equity and liabilities 112,457 114,562 54,546 54,547
Valuation allowances applied to temporary differences -4,266 -968 - -
Deferred taxes relating to temporary differences 245,869 266,851 187,470 180,133
Tax loss carryforwards 992,011 1,113,034 - -
Valuation allowances applied to tax loss carryforwards -824,449 -922,061 - -
Deferred tax balance -99,075 -92,914 -99,075 -92,914
As of December 31, 2008, GEA Group recognized deferred tax assets of K EUR 167,562 on tax loss carryforwards:
The reduction of deferred tax assets relating to foreign loss carryforwards is based mainly on the utilization of loss carryforwards in the USA. Deferred tax assets relating to German tax loss carryforwards are almost unchanged since the utilization of tax loss carryforwards in the past year is off set by a revaluation by almost the same amount.
A tax rate of 29.5 percent is applied to Group companies in Germany. This includes the standard rate of corporate tax, the Solidarity Surcharge and the average rate of trade tax. As in the previous year, the tax rates applicable to companies outside Germany vary from 12.5 percent (Ireland) to 41.7 percent (Japan).
No deferred tax assets were accrued on corporate tax loss carryforwards of K EUR 2,233,060 (previous year: K EUR 2,354,155) and on trade tax loss carryforwards of K EUR 1,761,522 (previous year: K EUR 2,001,537) because their utilization was not suffi ciently certain. The German companies’ losses can be carried forward indefi nitely. The foreign companies’ losses can usually only be carried forward for a limited period. The majority of the foreign companies’ loss carryforwards will probably expire in 2011.
(K EUR) 12/31/2008 12/31/2007
Deferred taxes on domestic loss carryforwards
- Corporation income tax 41,198 42,296
- Trade taxes 35,106 36,109
Deferred taxes on loss carryforwards outside Germany 91,258 112,568
Total 167,562 190,973
Notes to the Consolidated Financial Statements
8.8 Earnings per share
Earnings per share are calculated as follows:There were no dilutive eff ects in either 2008 or 2007.
8.9 Appropriation of earnings
The annual fi nancial statements of GEA Group Aktiengesellschaft, prepared according to the German Commercial Code, report annual net profi t of K EUR 258,368. According to § 23 Section 3 of the Articles of Association, the Supervisory and Executive Boards, on adopting the annual fi nancial statements, are authorized to transfer either part or the entirety of the net income for the year to retained earnings in consideration of § 58 Section 2 Clause 3 of the German Stock Corporation Act (AktG), and to the extent that the total of other retained earnings do not exceed half of the issued share capital. The Supervisory and Executive Boards have transferred K EUR 184,367 to retained earnings.
The Executive and Supervisory Boards propose that the Annual General Meeting appropri- ate the net earnings of K EUR 74,001 as follows:
The dividend payment corresponds to a dividend payment of 40 cents per share, given a total of 183,807,845 shares. The payment of the dividend is made without deducting local withholding tax and the Solidarity Surcharge.
(K EUR)
1/1/2008 - 12/31/2008
1/1/2007 - 12/31/2007
Net income after minority interest 99,630 282,400
of which on continuing operations 348,975 237,170
of which on discontinued operations -247,998 46,343
Weighted average number of shares in outstanding (thousands) 183,942 187,285
Earnings per share (EUR)
On net income 0.54 1.51
of which on continuing operations 1.89 1.26
of which on discontinued operations -1.35 0.25
Appropriation K EUR
Dividend payment to shareholders 73,523
Profi t carried forward 478
9. Contingent Liabilities, Other Financial
Obligations, Contingent Assets and
Litigation
9.1 Contingent liabilities
GEA Group Aktiengesellschaft has issued or has mandated the issue of bank and Group guarantees in favor of customers or lenders. The obligations presented in the table below relate to contingencies where the primary creditor is not a consolidated company.
Most of the bank and Group guarantees relate to Lurgi and Lentjes. As back-to-back col- lateral, GEA Group Aktiengesellschaft received from the purchasers bank guarantees at a total volume of K EUR 343,000 (previous year: K EUR 343,000) and group guarantees of K EUR 20,000 (previous year: K EUR 20,000) (please refer to Section 3).
The other guarantees mainly relate to customers of non-consolidated companies, banks and employees of former subsidiaries. The benefi ciaries are entitled to use the guarantees if the primary debtor fails to satisfy contractual obligations e.g. delayed or improper deliv- ery, the failure to comply with performance guarantee parameters, or the improper repay- ment of loans.
Durations vary depending on the type of guarantee. The weighted average duration of the Group guarantees amounts to 3.5 years (previous year: 1.7 years).
All guarantees are mandated or issued by GEA Group Aktiengesellschaft by order of or Bank guarantees Group guarantees
(K EUR) 2008 2007 2008 2007
Guarantees for advances 15,316 16,892 312 15,994
Warranty guarantees 20,453 44,057 402 407
Contract performance guarantees 280,759 344,761 398,753 412,953
Other warranty declarations 11,344 10,255 30,698 41,204
Total 327,872 415,965 430,165 470,558
of which relating to Lurgi / Lentjes 278,819 367,904 409,344 448,202
Notes to the Consolidated Financial Statements
9.2 Other fi nancial liabilities
The table below provides a breakdown of other fi nancial liabilities as of December 31, 2008: