| All figures in £ millions | 2010 | 2009 |
|---|---|---|
| Deferred income tax assets | ||
| Deferred income tax assets to be recovered after more than 12 months | 276 | 374 |
| Deferred income tax assets to be recovered within 12 months | – | 13 |
| 276 | 387 | |
| Deferred income tax liabilities | ||
| Deferred income tax liabilities to be settled after more than 12 months | (471) | (473) |
| Deferred income tax liabilities to be settled within 12 months | – | – |
| (471) | (473) | |
| Net deferred income tax | (195) | (86) |
Deferred income tax assets to be recovered within 12 months relate to the utilisation of losses in the US.
Deferred income tax assets and liabilities may be offset when there is a legally enforceable right to offset current income tax assets against current income tax liabilities and when the deferred income taxes relate to the same fiscal authority. The Group has unrecognised deferred income tax assets of £14m at 31 December 2010 in respect of UK losses, and approximately £16m in respect of losses in other territories. None of the unrecognised UK losses have expiry dates associated with them.
The recognition of the deferred income tax assets is supported by management’s forecasts of the future profitability of the relevant business units.
The movement on the net deferred income tax account is as follows:
| All figures in £ millions | Notes | 2010 | 2009 |
|---|---|---|---|
| At beginning of year | (86) | (75) | |
| Exchange differences | (4) | 10 | |
| Income statement charge | 7 | (72) | (51) |
| Acquisition through business combination | 29 | (37) | (45) |
| Disposal through business disposal | 30 | 47 | – |
| Tax (charge)/benefit to other comprehensive income or equity | (43) | 75 | |
| At end of year | (195) | (86) |
Included in the income statement charge above is a £5m credit relating to discontinued operations (2009: £4m charge).
The movement in deferred income tax assets and liabilities during the year is as follows:
| All figures in £ millions | Trading losses | Goodwill and intangibles | Returns provisions | Retirement benefit obligations | Other | Total |
|---|---|---|---|---|---|---|
| Deferred income tax assets | ||||||
| At 1 January 2009 | 73 | 20 | 106 | 7 | 166 | 372 |
| Exchange differences | (5) | (2) | (10) | (1) | (17) | (35) |
| Acquisition through business combination | – | – | – | – | – | – |
| Income statement (charge)/benefit | (46) | (7) | (4) | (6) | 42 | (21) |
| Tax benefit to other comprehensive income or equity | – | – | – | 68 | 3 | 71 |
| At 31 December 2009 | 22 | 11 | 92 | 68 | 194 | 387 |
| Exchange differences | 1 | – | 3 | – | 5 | 9 |
| Acquisition through business combination | – | – | – | – | 4 | 4 |
| Disposal through business disposal | – | – | – | – | (7) | (7) |
| Income statement (charge)/benefit | (18) | (7) | 1 | (9) | (35) | (68) |
| Tax (charge)/benefit to other comprehensive income or equity | – | – | – | (53) | 4 | (49) |
| At 31 December 2010 | 5 | 4 | 96 | 6 | 165 | 276 |
Other deferred income tax assets include temporary differences on share-based payments, inventory and other provisions.
| All figures in £ millions | Goodwill and intangibles | Other | Total |
|---|---|---|---|
| Deferred income tax liabilities | |||
| At 1 January 2009 | (318) | (129) | (447) |
| Exchange differences | 30 | 15 | 45 |
| Acquisition through business combination | (41) | (4) | (45) |
| Income statement benefit/(charge) | 10 | (40) | (30) |
| Tax benefit to other comprehensive income or equity | – | 4 | 4 |
| At 31 December 2009 | (319) | (154) | (473) |
| Exchange differences | (9) | (4) | (13) |
| Acquisition through business combination | (41) | – | (41) |
| Disposal through business disposal | 25 | 29 | 54 |
| Income statement benefit/(charge) | 10 | (14) | (4) |
| Tax benefit to other comprehensive income or equity | – | 6 | 6 |
| At 31 December 2010 | (334) | (137) | (471) |
Other deferred income tax liabilities include temporary differences in respect of depreciation and royalty advances.