27. Deferred Income Taxes

Deferred income taxes are calculated in full on temporary differences arising, in the various countries, between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. The liability method is applied, using tax rates prevailing at the balance sheet dates in the different jurisdictions.

in thousands of EUR

Notes

2016

2015

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

At 1 January

67,186

80,912

Acquisitions

6

128

2,407

Income Statement charge

4,744

- 8,374

Change because of income rate change

- 1,856

- 318

Processed through Other comprehensive income

3,607

- 2,246

Reclassification

6

- 2,864

Exchange differences

802

- 2,331

At 31 December

74,617

67,186

Analysis of the deferred income tax assets is as follows:

- Deferred income tax asset to be recovered after more than 12 months

51,279

42,466

- Deferred income tax asset to be recovered within 12 months

23,338

24,720

74,617

67,186

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

At 1 January

142,565

141,378

Acquisitions

6

3,130

9,046

Income Statement charge

- 3,664

- 2,473

Change because of income rate change

- 8,980

- 970

Processed through Other Comprehensive Income

1,179

- 105

Reclassification

- 50

- 2,394

Exchange differences

- 140

- 1,917

At 31 December

134,040

142,565

Analysis of the deferred income tax liabilities is as follows:

- Deferred income tax liability to be settled after more than 12 months

121,189

130,389

- Deferred income tax liability to be settled within 12 months

12,851

12,176

134,040

142,565

Net deferred income taxes

59,423

75,379

Deferred income tax assets

in thousands of EUR

31 December 2016

31 December 2015

Property, plant and equipment

5,449

4,878

Goodwill

224

1,249

Other intangible assets

5,738

5,075

Inventories

3,758

4,698

Post-employment benefits

14,419

11,587

Provisions

9,466

9,453

Derivative financial instruments

1,197

391

Deferred revenue and to be invoiced amounts

6,787

7,552

Trade and other payables

4,242

3,073

Deferred taxes on temporary differences

51,280

47,956

Deferred taxes on carry forward losses

23,337

19,230

Total deferred income tax assets

74,617

67,186

Deferred income tax liabilities

in thousands of EUR

31 December 2016

31 December 2015

Property, plant and equipment

10,248

10,839

Goodwill

38,476

33,524

Other intangible assets

74,951

90,804

Inventories

28

1

Post-employment benefits

77

49

Provisions

7,926

5,107

Derivative financial instruments

1,202

3

Deferred revenue and to be invoiced amounts

842

842

Trade and other payables

290

1,396

Total deferred income tax liabilities

134,040

142,565

Deferred income tax assets on carryforward losses have been recognized for an amount of €23,337 (2015: €19,230). The losses are recognized based on taxable temporary differences or future expected results taking into consideration the expiration date of historical losses and other tax regulations. The related income tax losses amount to €80,317.

Unrecognized income tax losses amount to €251,882 (2015: €208,401). These tax losses expire as follows:

in thousands of EUR

31 December 2016

31 December 2015

Expiring within one year

5,890

6,607

Expiring between one and two years

5,782

4,056

Expiring between two and five years

22,840

25,695

Expiring after more than five years

10,726

8,337

Offsettable for an unlimited period

206,644

163,706

251,882

208,401

The unrecognized tax losses offsettable for an unlimited period mainly relate to entities in Spain and Brazil. Based on their history of recent losses and the Group's assessment of the availability of expected future taxable results, deferred tax assets have been recognized only to the extent of taxable temporary differences.