Deferred tax assets and liabilities

12 Months Ended

Dec. 31, 2021

17.	Deferred tax assets and liabilities

The amount of deferred tax assets and liabilities by type of temporary difference can be detailed as follows:


	2021
Million US dollar	Assets			Liabilities			Net
Property, plant and equipment		91			(2 113	)		(2 023	)
Intangible assets		60			(9 796	)		(9 736	)
Inventories		88			(66	)		22
Trade and other receivables		48			—			48
Interest-bearing loans and borrowings		905			(628	)		277
Employee benefits		577			(8	)		569
Provisions		511			(19	)		492
Derivatives		11			(118	)		(107	)
Other items		407			(1 198	)		(792	)
Loss carry forwards		1 015			—			1 015

Gross deferred tax assets/(liabilities)		3 713			(13 947	)		(10 235	)

Netting by taxable entity		(1 743	)		1 743			—

Net deferred tax assets/(liabilities)		1 969			(12 204	)		(10 235	)


	2020
Million US dollar	Assets			Liabilities			Net
Property, plant and equipment		398			(2 487	)		(2 089	)
Intangible assets		106			(10 007	)		(9 901	)
Inventories		86			(65	)		22
Trade and other receivables		62			—			62
Interest-bearing loans and borrowings		858			(603	)		255
Employee benefits		648			(8	)		640
Provisions		525			(30	)		495
Derivatives		13			(46	)		(33	)
Other items		312			(1 152	)		(840	)
Loss carry forwards		782			—			782

Gross deferred tax assets/(liabilities)		3 790			(14 398	)		(10 607	)

Netting by taxable entity		(1 771	)		1 771			—

Net deferred tax assets/(liabilities)		2 019			(12 627	)		(10 607	)

The change in net deferred taxes recorded in the consolidated statement of financial position can be detailed as follows:


Million US dollar	2021			2020			2019
Balance at 1 January		(10 607	)		(11 105	)		(11 648	)

Recognized in profit or loss		348			32			19
Recognized in other comprehensive income		(166	)		361			109
Acquisitions through business combinations		—			(6	)		(18	)
Reclassified as held for sale		—			(1	)		363
Other movements and effect of changes in foreign exchange rates		190			112			70

Balance at 31 December		(10 235	)		(10 607	)		(11 105	)

Most of the temporary differences are related to the fair value adjustment on intangible assets with indefinite useful lives and property, plant and equipment acquired through business combinations. The realization of the temporary differences on intangible assets acquired through business combinations is unlikely to revert within 12 months as they would be realized upon impairment or disposal of these intangibles which is currently not expected. The net deferred tax liabilities attributable to the US business and mainly related to purchase price accounting amount

to 6.5 billion US dollar as of 31 December 2021.

As of 31 December 2021, the total amount of unrecognized tax attributes amounts to 27.9 billion US dollar compared to 27.0 billion US dollar as of 31 December 2020

. These unrecognized tax attributes include tax losses carry forward, capital losses, foreign and withholding tax credits, excess dividend received deduction, excess interest carry forward, amongst others. 24.9 billion US dollar of these tax attributes do not have an expiration date, 0.2 billion US dollar, 0.3 billion US dollar and 0.2 billion US dollar expire within respectively 1, 2 and 3 years, while 2.3 billion US dollar have an expiration date of more than 3 years. Deferred tax assets

1	2020 restated to include all tax attributes.

have not been recognized on these items because it is not probable that future taxable profits will be available against which these tax losses and deductible temporary differences can be utilized and the company has no tax planning strategy currently in place to utilize these tax losses and deductible temporary differences.