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Income Tax (Tables)
 12 Months Ended
Dec. 31, 2017
Text block1 [abstract]  
Summary of Current and Deferred Components of Income Tax

The current and deferred components of income tax are as follows:

 

(in millions of Euros)

    Year ended
December 31,
2017		      Year ended
December 31,
2016		      Year ended
December 31,
2015		  

Current tax expense

      (26 )       (19 )       (21 ) 

Deferred tax (expense) / benefit

      (54 )       (50 )       53  
  

 

 

     

 

 

     

 

 

  

Total Income tax (expense) / benefit

      (80 )       (69 )       32  
  

 

 

     

 

 

     

 

 

  
Summary of Income Tax Reconciliation Using Composite Statutory Income Tax Rate Applicable by Tax Jurisdictions

Using a composite statutory income tax rate applicable by tax jurisdictions, the income tax can be reconciled as follows:

 

(in millions of Euros)

    Year ended
December 31,
2017		     Year ended
December 31,
2016		     Year ended 
December 31,
2015		  

Income / (Loss) before income tax

      49       65       (584 ) 
  

 

 

    

 

 

    

 

 

  

Composite statutory income tax rate applicable by tax jurisdiction

      31.9 %      24.9 %      38.2 % 
  

 

 

    

 

 

    

 

 

  

Income tax (expense) / benefit calculated at composite statutory tax rate applicable by tax jurisdictions

      (16 )      (16 )      223  

Tax effect of:

       

Changes in recognized and unrecognized deferred tax assets(A)

      (61 )      (45 )      (177 ) 

Change in tax rate(B)

      (11 )      (6 )      —    

Other

      8       (2 )      (14 ) 
  

 

 

    

 

 

    

 

 

  

Income tax (expense) / benefit

      (80 )      (69 )      32  
  

 

 

    

 

 

    

 

 

  

Effective income tax rate

      163 %      106 %      5 % 
  

 

 

    

 

 

    

 

 

  

 

(A) Change in recognized and unrecognized deferred tax assets mainly relates to unrecognized tax losses carried forward for the years ended December 31, 2017 and 2016 and to impairment of long term assets of one of our main entities for the year ended December 31, 2015 (see NOTE 18—Deferred income taxes).

 

(B) For the year ended December 31, 2017, change in tax rate relates mainly to the U.S. income tax rate decrease from 40% to 27% for €16 million applicable from January 1, 2018 and to the gradual decrease in French tax rate to 25.82% as from 2022. For the year ended December 31, 2016, change in tax rate relates to French income tax decrease from 34,43% to 28,92% starting in 2020, enacted by 2016 Financial Tax bill.