Notes to the financial statements

for the year ended 3 January 2009

32.Deferred income taxes

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. The following amounts, determined after appropriate offsetting, are shown in the consolidated balance sheet:

	2008 €'000	2007 €'000
Deferred tax assets	(25,380)	(21,672)
Deferred tax liabilities	59,056	37,587
Net deferred tax liability	33,676	15,915

The gross movement on the deferred income tax account is as follows:

	2008 €'000	2007 €'000
At the beginning of the year	15,915	14,688
Income statement - pre exceptional charge (note 11)	1,416	2,609
Income statement - exceptional charge/(credit)	181	(2,592)
Acquisition of subsidiary and purchase of intellectual property	20,631	462
Deferred tax (credit)/charge to the fair value reserve (note 24)	(964)	3,028
Deferred tax credit relating to the actuarial loss in the year	(7,084)	(1,102)
Exchange differences	3,581	(1,178)
At the end of the year	33,676	15,915

The movement in deferred tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

Deferred tax liabilities	Accelerated tax depreciation €'000	Fair value gains €'000	Deferred development costs €'000	Other €'000	Total €'000
At 30 December 2006	32,861	905	376	4,469	38,611
(Credited)/charged to income statement	(4,230)	-	209	1,695	(2,326)
Charged against equity (note 25)	-	3,028	-	-	3,028
Acquisition of subsidiaries and intellectual property	-	-	-	462	462
Exchange differences	(1,978)	-	(53)	(157)	(2,188)
At 29 December 2007	26,653	3,933	532	6,469	37,587
(Credited)/charged to income statement		-	309	2,147	658
Credited to equity (note 25)	-	(964)	-	-	(964)
Acquisition of subsidiaries and intellectual property	-	-	-	20,631	20,631
Exchange differences	831	-	45	268	1,144
At 3 January 2009	25,686	2,969	886	29,515	59,056

Deferred tax assets	Retirement obligations €'000	Tax losses €'000	Total €'000
At 30 December 2006	(11,667)	(12,256)	(23,923)
Charged to income statement	1,570	773	2,343
Credited to equity (note 23)	(1,102)	-	(1,102)
Exchange differences	-	1,010	1,010
At 29 December 2007	(11,199)	(10,473)	(21,672)
Charged/(credited) to income statement	1,196	(257)	939
Credited to equity (note 23)	(7,084)	-	(7,084)
Exchange differences	-	2,437	2,437
At 3 January 2009	(17,087)	(8,293)	(25,380)

The deferred tax credited to equity during the year is as follows:

	2008 €'000	2007 €'000
Fair value reserve in equity
- Available for sale investments	(752)	3,503
- Hedging reserve	(212)	(475)
Impact of increase in retirement benefit obligations	(7,084)	(1,102)
	(8,048)	1,926

The increase in the retirement benefit obligation has given rise to an increase in the related deferred tax asset. A deferred tax asset has been recognised on the basis that the realisation of the related tax benefit through future taxable profits is probable. Deferred tax assets are recognised for tax losses carry forwards to the extent that realisation of the related tax benefit through the future taxable profits is probable. The Group has unrecognised tax losses of €11.1 million (2007: €20.7 million) to carry forward against future taxable income. Deferred tax liabilities have not been recognised for withholding tax and other taxes that would be payable on the unremitted earnings of certain subsidiaries, associates and joint ventures.