Notes to the Consolidated Financial Statements

1. Basic information and principles of the report

2. Changes in Group structure

3. Summary of significant accounting policies

4. Risk assessment and management

5. Management of capital

6. Trade accounts receivable

7. Other current assets and current financial assets

8. Inventories

9. Property, plant and equipment

10. Other non-current assets and non-current financial assets

11. Goodwill and intangible assets

12. Short-term debt

13. Other current liabilities and provisions

14. Long-term debt

15. Financial instruments

16. Retirement benefit plans

17. Participation plans

18. Deferred tax assets and liabilities

19. Other non-current liabilities and provisions

20. Contingencies

21. Capital stock and treasury shares

22. Earnings per share

23. Other operating expenses, net

24. Financial result, net

25. Income tax expenses

  2019 2018
Current taxes 103.9 101.2
Deferred taxes -8.0 -11.2
Total income tax expenses 95.9 90.0

The differences between income tax expenses computed at the weighted-average applicable tax rate of the Group of 15.1% (PY: 13.9%) and the effective income tax expenses were as follows:

  2019 2018
Income tax expenses, at applicable rate 112.1 95.7
Operating losses with no current tax benefit 0.0 0.1
Offsetting of current profits against loss carryforwards without tax assets -1.6 -4.8
Changes in future tax rates 1 -3.4 0.1
Non-deductible expenses and non-taxable income, net 2.5 2.5
Other -13.7 -3.6
Total income tax expenses 95.9 90.0
1 This item mainly includes adjustments due to the Swiss tax reform (TRAF)  

The increase in "Income tax expenses, at applicable rate" is driven by a higher profit before tax in 2019 and the change in the composition of the Group's taxable income. The tax reduction in "Other" is caused by reversal of several tax provisions, which were no longer used, and capitalised loss carryforwards.

Swiss tax reform

On 19 May 2019, the Swiss electorate passed the Federal Act on Tax Reform and AHV Financing (TRAF). With this vote, the new tax law in the Canton of St. Gallen also entered into force. This reform comprises the abolishment of the tax regimes for holding companies, domiciliary companies and mixed companies, which are no longer accepted internationally. Some Swiss Geberit companies are also affected by this. In return, the cantons are reducing the ordinary corporate tax rates and are introducing internationally acceptable tax benefits. The ordinary tax rate for the Group companies domiciled in the Canton of St. Gallen will be reduced from 17.4% to 14.5% as of 1 January 2020. The deferred taxes of these companies were adjusted accordingly as at 31 December 2019. The adjustment had an immaterial impact on the consolidated financial statements as of 31 December 2019.

26. Leases

27. Research and development cost

28. Free Cashflow

29. Segment reporting

30. Related party transactions

31. Foreign exchange rates

32. Subsequent events

33. Group companies as of 31 December 2019


Download center
Mark page
Graphics collection
Forward content
Compare to 2018