18. Deferred income taxes

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.

The offset amounts are as follows:

In CHF'000	31.12.2009	31.12.2008
Deferred tax assets	57 206	51 856
Deferred tax liabilities	-5 693	-5 088

	51 513	46 768

The movement on the deferred income tax account is as follows:

In CHF'000	Note	2009	2008
At January 1		46 768	35 280
Exchange differences		-154	-234
Impact of business combinations		–	-276
Income statement (expense)/income	12	4 899	11 998

At December 31		51 513	46 768

The movement in deferred tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

In CHF'000	At January 1, 2009	Income statement effect	Business combinations	Exchange differences	At December 31, 2009
Deferred tax assets associated with
– intangibles	18 399	8 234	–	71	26 704
– employee benefits	4 396	819	–	-5	5 210
– tax losses	19 992	-3 423	–	-16	16 553
– provisions and other elements tax deductible when paid	4 976	1 387	–	-222	6 141
– inter-company profit elimination	3 756	-303	–	-48	3 405
– others	565	-148	–	-3	414

Total deferred tax assets (gross)	52 084	6 566	–	-223	58 427

Deferred tax liabilities associated with
– affiliates and allowances for Group companies	-3 638	446	–	-12	-3 204
– provisions & accelerated tax depreciation	-835	-1 524	–	66	-2 293
– others	-843	-589	–	15	-1 417

Total deferred tax liabilities (gross)	-5 316	-1 667	–	69	-6 914

Net deferred tax asset/(liability)	46 768	4 899	–	-154	51 513

And for the past year:

In CHF'000	At January 1, 2008	Income statement effect	Business combinations	Exchange differences	At December 31, 2008
Deferred tax assets associated with
– intangibles	16 748	1 681	–	-30	18 399
– employee benefits	3 926	496	41	-67	4 396
– tax losses	15 049	4 944	–	-1	19 992
– provisions and other elements tax deductible when paid	1 086	4 032	–	-142	4 976
– inter-company profit elimination	3 623	471	–	-338	3 756
– others	29	558	–	-22	565

Total deferred tax assets (gross)	40 461	12 182	41	-600	52 084

Deferred tax liabilities associated with
– affiliates and allowances for Group companies	-4 567	695	–	234	-3 638
– provisions & accelerated tax depreciation	-594	–	-317	76	-835
– others	-20	-879	–	56	-843

Total deferred tax liabilities (gross)	-5 181	-184	-317	366	-5 316

Net deferred tax asset/(liability)	35 280	11 998	-276	-234	46 768

Unrecognized tax losses carried forward

At the balance sheet date, the Group has unused tax losses and temporary differences of CHF 789.1 million (2008: 775.0 million) available for offset against future profits. A deferred tax asset has been recognized in respect of CHF 242.2 million (2008: CHF 205.2 million) of such losses and temporary differences. No deferred tax asset has been recognized in respect of the remaining CHF 546.9 million (2008: CHF 569.8 million) due to the unpredictability of future profits streams. The amount of unused tax losses carry forward which has not been capitalized as deferred tax assets, with their expiry dates, is as follows:

In CHF million	2009	2008
Expiration within:
One year	0.2	0.2
Two years	1.3	0.2
Three years	0.8	–
Four years	1.7	–
Five years	5.6	5.2
More than five years	537.3	564.2

Total	546.9	569.8