Income taxes, broken down into current and deferred income taxes, are as follows:

Income Taxes  

in € millions20152014
Earnings before income taxes (total)1,454861
Current income taxes from continuing operations(287)(299)
Deferred income taxes from continuing operations(59)13
Income taxes from continuing operations(346)(286)
Current income taxes from discontinued operations
Deferred income taxes from discontinued operations(3)
Income taxes from discontinued operations(3)
Total income taxes(346)(289)
Net income after income taxes (total)1,108572

Tax loss carryforwards of €446 million (previous year: €352 million) were utilized in the financial year 2015, reducing current tax expenses by €104 million (previous year: €71 million). Of the tax loss carryforwards utilized, €172 million (previous year: €175 million) was due to German corporate income tax, €25 million (previous year: €29 million) was due to German trade tax and €249 million (previous year: €148 million) was due to foreign income taxes. These amounts include €88 million (previous year: €34 million) for tax loss carryforwards for which no deferred tax assets were recognized in the past. These relate to German corporate tax in the amount of €1 million (previous year: €1 million), German trade tax in the amount of €5 million (previous year: €2 million) and foreign income taxes in the amount of €82 million (previous year: €31 million). This led to a reduction in current tax expense of €24 million (previous year: €8 million).

Deferred tax assets and liabilities resulted from the following items and factors; the presentation of the table has been adjusted compared to the prior year for clarification:

Deferred Taxes  

in € millions12/31/2015


Equity and Liabilities
thereof recognized in profit or loss12/31/2014


Equity and Liabilities
thereof recognized in profit or loss
Intangible assets3015691131754626
Property, plant and equipment6446949469
Financial assets521772812
Advance payments and other assets118165(46)110119(27)
Financial debt2232(13)2523(8)
Advance payments and other liabilities5440(4)5648(14)
Loss carryforwards/tax credits384(32)390(20)
Carrying amount9611601,076157

No deferred tax liabilities were recognized for temporary differences in connection with investments in subsidiaries in the amount of €657 million (previous year: €424 million) as Bertelsmann can control their reversal, and it is probable that these temporary differences will not be reversed in the foreseeable future. Current and deferred tax assets and liabilities are offset against each other if they relate to the same tax authority and meet the criteria for offsetting. The term of the deferred taxes on temporary differences is mostly long term.

Information on amounts of income tax relating to other comprehensive income is presented in note 18 “Equity”.

Valuation allowances for deferred tax assets are recognized on temporary differences, tax loss carryforwards and tax credits when it is unlikely that they can be utilized in the foreseeable future. The need to recognize valuation allowances is assessed primarily based on existing deferred tax liabilities from temporary differences and projected taxable income within a planning period.

Temporary differences, tax loss carryforwards and tax credits for which no deferred taxes have been recognized can be carried forward as follows:


in € millions12/31/201512/31/2014
Tax loss carryforwards
To be carried forward for more than 5 years6,7336,800
To be carried forward for up to 5 years13170
Temporary differences121417
Tax credits
To be carried forward for more than 5 years6867
To be carried forward for up to 5 years33

A reconciliation of expected tax result to actual tax result is shown in the following table:

Reconciliation to Actual Tax Expense  

in € millions20152014
Earnings before income taxes from continuing operations1,451854
Income tax rate applicable to Bertelsmann SE & Co. KGaA30.70%30.70%
Expected tax expense from continuing operations(445)(262)
The tax effects of the following items led to differences between the expected and actual tax expense:
Adjustment to different national tax rates(23)(31)
Effect of changes in tax rate and tax law5(4)
Non-tax-deductible impairment of goodwill(19)
Tax effects in respect of results from disposals of investments(6)(37)
Current income taxes for previous years2220
Deferred income taxes for previous years5580
Change in valuation allowance on deferred tax assets4(52)
Permanent differences5121
Other adjustments(9)(2)
Total of adjustments99(24)
Actual tax expense from continuing operations(346)(286)

The income tax rate applied at Bertelsmann SE & Co. KGaA consists of corporate income tax, the solidarity surcharge and trade tax.

Effective Income Tax Rate  

Corporate income tax including solidarity surcharge15.83%15.83%
Trade tax14.87%14.87%
Effective income tax rate30.70%30.70%