AIRBUS - 2019 Financial Statements

2.4 Airbus Performance Notes to the IFRS Consolidated Financial Statements / 2 As of 31 December 2019, the aggregate amount of temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements, for which deferred tax liabilities have not been recognised, amounts to €152 million. Deferred tax on net operating losses (“NOLs”), trade tax loss carry forwards and tax credit carry forwards are: (In € million) France Germany Spain UK Other countries 31 December 2019 31 December 2018 NOL 600 2,432 110 1,520 2,300 6,962 6,307 Trade tax loss carry forwards 0 2,544 0 0 0 2,544 2,020 Tax credit carry forwards 0 0 287 10 2 299 332 Tax effect 155 745 314 269 590 2,073 1,868 Valuation allowances (131) (711) (182) (52) (512) (1,588) (1,015) Deferred tax assets on NOLs and tax credit carry forwards 24 34 132 217 78 485 853 NOLs, capital losses and trade tax loss carry forwards are indefinitely usable under certain restrictions in France, Germany, the UK and Spain. They are usable for 20 years in Canada. In Spain, R&D tax credit carry forwards still expire after 18 years. The first tranche of tax credit carry forwards (€1 million) will expire in 2020. No deferred tax has been recognised for this tranche. Roll forward of deferred tax: (In € million) 2019 2018 Net deferred tax assets at 1 January 3,516 3,560 Deferred tax expense in income statement 514 (797) Deferred tax recognised directly in AOCI 308 754 Deferred tax on remeasurement of the net defined benefit pension plans 442 (28) Others (170) 27 Net deferred tax assets at 31 December 4,610 3,516 Details of deferred tax recognised cumulatively in equity are as follows: (In € million) 2019 2018 Financial assets at fair value through OCI (151) (75) Cash flow hedges 830 446 Deferred tax on remeasurement of the net defined benefit pension plans 2,136 1,694 Total 2,815 2,065 33 Airbus / Financial Statements 2019