ANNUAL REPORT 2021 slide image

ANNUAL REPORT 2021

LUNDBECK ANNUAL REPORT 2021 E CONTENTS CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 5 INCOME TAXES - CONTINUED Deferred (tax assets)/tax liabilities Intangible assets Property, plant and equipment Inventories Provisions Other items Tax loss carryforwards etc. Research and development incentives Deferred (tax assets)/tax liabilities Offset within legal tax entities and jurisdictions Total net deferred (tax assets)/tax liabilities 63/111 2021 2021 2021 2020 2020 2020 Deferred tax assets Deferred tax liabilities Deferred tax Net assets Deferred tax liabilities Net DKKm DKKm DKKm DKKm DKKm DKKm (107) 3,175 3,068 (105) 3,156 3,051 (5) 187 182 (8) 179 171 (96) 53 (43) (94) 68 (26) (384) (384) (339) (339) (202) 39 (163) (195) 53 (142) (1,318) (1,318) (1,330) (1,330) (87) (87) (2,199) 3,454 1,255 (4) (2,075) (4) 3,456 1,381 2,006 (2,006) (193) 1,448 1,255 1,842 (233) (1,842) 1,614 1,381 Management estimates future income according to budgets, forecasts, business plans and initiatives scheduled for the coming years, which supports the recognition of deferred tax assets. When forecasting the utilization of tax assets, the Group applies the same assumptions as for impairment testing. See note 6 Intangible assets. Accordingly, at 31 December 2021, all deferred tax assets relating to tax losses carried forward in Denmark from 2015, 2016, 2018 and 2021 were capitalized in the amount of DKK 884 million (DKK 777 million in 2020). U.S. tax losses and tax credits stemming from acquisitions have been recognized at an amount of DKK 521 million (DKK 553 million in 2020) equalling the expected utilization within a foreseeable future, whereas an amount of DKK 56 million (DKK 132 million in 2020) has not been recognized in the balance sheet. Unrecognized deferred tax assets Unrecognized deferred tax assets at 1 January Additions through acquisitions Prior-year adjustments Additions Recognized Unrecognized deferred tax assets at 31 December 2021 2020 DKKm DKKm 184 507 (37) 8 1 (90) (287) 102 184 Unrecognized deferred tax assets primarily relate to net operating losses and tax credits not expected to be utilized within a foreseeable future.
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