Note 10 - Taxes

	Group		Parent Company
	2009	2008	2009	2008
Current taxes	–515	–1,033	7	38
Deferred taxes	–362	746	167	—
Total	–877	–287	174	38

Deferred taxes include a negative effect of SEK –5m (–5) due to changes in tax rates. The current tax reduction in 2009 mainly relates to the effect of an extended period for tax loss carry-back in the US. As a result of amended legislation a tax refund will be received during Q1, 2010 amounting to SEK 370m. This change has had no effect on the Group’s effective tax rate since the tax loss was already recognized as a deferred tax asset. The Group accounts include deferred tax liabilities of SEK 205m (0) related to untaxed reserves in the Parent Company.

Theoretical and actual tax rates
%	2009	2008
Theoretical tax rate	31.2	31.5
Non-recognized tax losses carried forward	11.2	45.1
Non-taxable/non-deductible income statement items, net	1.0	21.5
Changes in estimates relating to deferred tax	–1.5	–6.1
Utilized tax losses carried forward	–12.6	–6.7
Withholding tax	0.4	4.9
Change in recognition of US tax credits	2.9	–46.0
Other	–7.4	–0.2
Actual tax rate	25.2	44.0

The theoretical tax rate for the Group is calculated on the basis of the weighted total Group net sales per country, multiplied by the local statutory tax rates. The effective tax rate for 2009 has been positively impacted by reversal of a tax provision following a tax settlement in a European country. The effective tax rate in 2008 was negatively impacted by the low level of earnings.

Non-recognized deductible temporary differences

As of December 31, 2009, the Group had tax loss carry-forwards and other deductible temporary differences of SEK 6,720m (6,273), which have not been included in computation of deferred tax assets. The non-recognized deductible temporary differences will expire as follows:

	December 31,
	2009
2010	466
2011	312
2012	402
2013	242
2014	389
And thereafter	1,989
Without time limit	2,920
Total	6,720

Changes in deferred tax assets and liabilities

The table below shows net deferred tax assets and liabilities. Deferred tax assets and deferred tax liabilities amounted to the net deferred tax assets and liabilities in the balance sheet.

Net deferred tax assets and liabilities
	Excess of deprecia- tion	Provision for war- ranty	Provision for pen- sion	Provision for restruc- turing	Obsole-scense allow- ance	Unrea- lized profit in stock	Recog- nized unused tax losses	Other	Total deferred tax assets and liabilities	Set-off tax	Net deferred tax assets and liabilities
Opening balance, January 1, 2008	–758	245	894	61	72	85	34	573	1,206	—	1,206
Recognized in the income statement	–55	8	76	–6	18	–40	294	451	746	—	746
Divested operations	—	—	—	—	—	—	—	71	71	—	71
Exchange differences	65	13	47	2	5	4	13	168	317	—	317
Closing balance, December 31, 2008	–748	266	1,017	57	95	49	341	1,263	2,340	—	2,340
Of which deferred tax assets	16	293	1,093	57	107	63	341	2,262	4,232	–1,052	3,180
Of which deferred tax liabilities	–764	–27	–76	—	–12	–14	—	–999	–1,892	1,052	–840

Opening balance, January 1, 2009	–748	266	1,017	57	95	49	341	1,263	2,340	—	2,340
Recognized in the income statement	44	1	–575	183	14	—	–11	–18	–362	—	–362
Divested operations	—	—	—	—	—	—	—	—	—	—	—
Exchange differences	28	7	–38	–12	–2	–2	–15	–70	–104	—	–104
Closing balance, December 31, 2009	–676	274	404	228	107	47	315	1,175	1,874	—	1,874
Of which deferred tax assets	4	299	631	228	120	50	315	2,085	3,732	–1,039	2,693
Of which deferred tax liabilities	–680	–25	–227	—	–13	–3	—	–910	–1,858	1,039	–819

Deferred tax assets amounted to SEK 2,693m (3,180), whereof SEK 923m (736) will be recovered within 12 months. Deferred tax liabilities amounted to SEK 819m (840), whereof SEK 88m (228) will be recovered within 12 months. Other deferred tax assets include tax credits related to production of energy efficient appliances amounting to SEK 753m (910).

Produced by Solberg