17. Deferred tax assets and liabilities
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following items:
| Assets | Liabilities | Net | ||||
| In millions of EUR | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 |
| Property, plant & equipment | 21 | 21 | (387) | (381) | (366) | (360) |
| Intangible assets | 79 | 27 | (41) | (42) | 38 | (15) |
| Investments | 9 | 16 | (2) | (2) | 7 | 14 |
| Inventories | 12 | 4 | (2) | 5 | 10 | 9 |
| Loans and borrowings | (3) | 3 | – | – | (3) | 3 |
| Employee benefits | 134 | 144 | 1 | (5) | 135 | 139 |
| Provisions | 73 | 56 | 5 | 4 | 78 | 60 |
| Other items | 72 | 65 | (58) | (41) | 14 | 24 |
| Tax losses carry-forwards | 13 | 19 | (2) | – | 11 | 19 |
| Tax assets/(liabilities) | 410 | 355 | (486) | (462) | (76) | (107) |
| Set-off of tax | (15) | (69) | 15 | 69 | – | – |
| Net tax assets/(liabilities) | 395 | 286 | (471) | (393) | (76) | (107) |
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
| In millions of EUR | 2006 | 2005 |
| Tax losses | 77 | 140 |
The tax losses expire in different years. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which Heineken can utilise the benefits therefrom.
Tax losses
Heineken has for an amount of €119 million (2005: €190 million), losses carry forward as per 31 December 2006 which expire in the following years:
| In millions of EUR | 2006 | 2005 |
| 2006 | – | 8 |
| 2007 | 23 | 42 |
| 2008 | 24 | 42 |
| 2009 | 13 | 15 |
| 2010 | 7 | 10 |
| 2011 | 3 | – |
| After 2011 respectively 2010 but not unlimited | 36 | 33 |
| Unlimited | 13 | 40 |
| 119 | 190 | |
| Recognised as deferred tax assets | (42) | (50) |
| Unrecognised | 77 | 140 |
Movement in temporary differences during the year
| In millions of EUR | Balance 1 January 2005 | Changes in consolidation | Effect of movements in foreign exchange | Recognised in income | Recognised in equity | Balance 31 December 2005 |
| Property, plant & equipment | (341) | (18) | (16) | 15 | – | (360) |
| Intangible assets | (18) | 6 | – | (3) | – | (15) |
| Investments | 5 | – | – | 4 | 5 | 14 |
| Inventories | 11 | – | 1 | (3) | – | 9 |
| Loans and borrowings | 1 | – | – | – | 2 | 3 |
| Employee benefits | 157 | 1 | – | (19) | – | 139 |
| Provisions | 51 | – | 2 | 7 | – | 60 |
| Other items | (3) | 1 | (2) | 17 | 11 | 24 |
| Tax losses carry-forwards | 22 | – | 2 | (6) | 1 | 19 |
| (115) | (10) | (13) | 12 | 19 | (107) | |
| In millions of EUR | Balance 1 January 2006 | Changes in consolidation | Effect of movements in foreign exchange | Recognised in income | Recognised in equity | Balance 31 December 2006 |
| Property, plant & equipment | (360) | (3) | 9 | (13) | 1 | (366) |
| Intangible assets | (15) | 6 | – | 47 | – | 38 |
| Investments | 14 | – | – | (6) | (1) | 7 |
| Inventories | 9 | – | (1) | 2 | – | 10 |
| Loans and borrowings | 3 | (6) | – | – | – | (3) |
| Employee benefits | 139 | – | (1) | (3) | – | 135 |
| Provisions | 60 | – | – | 19 | (1) | 78 |
| Other items | 24 | (7) | 1 | 9 | (13) | 14 |
| Tax losses carry-forwards | 19 | – | (1) | (7) | – | 11 |
| (107) | (10) | 7 | 48 | (14) | (76) |
