2020 Annual Financial Report

/Effective tax rate

The effective tax rate is obtained as follows:

(in millions of euros)		2020	2019
Pre-tax income of consolidated companies	Pre-tax income of consolidated companies	Pre-tax income of consolidated companies 2020 768	Pre-tax income of consolidated companies 2019 1 154
Impairment losses	Impairment losses	Impairment losses 2020 15	Impairment losses 2019 27
Revaluation of earn-out payments	Revaluation of earn-out payments	Revaluation of earn-out payments 2020 17	Revaluation of earn-out payments 2019 22
(Gains)/losses on disposals	(Gains)/losses on disposals	(Gains)/losses on disposals 2020 (5)	(Gains)/losses on disposals 2019 16
Restated pre-tax income of consolidated companies	Restated pre-tax income of consolidated companies A	Restated pre-tax income of consolidated companies 2020 795	Restated pre-tax income of consolidated companies 2019 1 219
French tax rate applicable to the parent company	French tax rate applicable to the parent company	French tax rate applicable to the parent company 2020 32,00%	French tax rate applicable to the parent company 2019 34,43%
Expected tax expense on pre-tax income of consolidated companies	Expected tax expense on pre-tax income of consolidated companies	Expected tax expense on pre-tax income of consolidated companies 2020 (254)	Expected tax expense on pre-tax income of consolidated companies 2019 (420)
Impact of:	Impact of:	Impact of: 2020	Impact of: 2019
The difference between the French tax rate and foreign tax rates	The difference between the French tax rate and foreign tax rates	The difference between the French tax rate and foreign tax rates 2020 138	The difference between the French tax rate and foreign tax rates 2019 184
Changes in unrecognized deferred tax assets	Changes in unrecognized deferred tax assets	Changes in unrecognized deferred tax assets 2020 (41)	Changes in unrecognized deferred tax assets 2019 (7)
Other impacts⁽¹⁾	Other impacts⁽¹⁾	Other impacts⁽¹⁾ 2020 (39)	Other impacts⁽¹⁾ 2019 (62)
Income tax in the income statement	Income tax in the income statement	Income tax in the income statement 2020 (196)	Income tax in the income statement 2019 (305)
Current tax on reserves accumulated abroad	Current tax on reserves accumulated abroad	Current tax on reserves accumulated abroad 2020 -	Current tax on reserves accumulated abroad 2019 -
Income tax in the restated income statement	Income tax in the restated income statement B	Income tax in the restated income statement 2020 (196)	Income tax in the restated income statement 2019 (305)
Effective tax rate	Effective tax rate B/A	Effective tax rate 2020 24.7%	Effective tax rate 2019 25.0 %

(1) Other impacts mainly include those related to permanent differences, income taxed at reduced rates, adjustments to previous financial years.

/ Tax effect on other comprehensive income

	December 31, 2020			December 31, 2019
(in millions of euros)	Gross	Tax	Net	Gross	Tax	Net
Fair value adjustments to available-for-sale investments	Fair value adjustments to available-for-sale investments December 31, 2020 -	Fair value adjustments to available-for-sale investments December 31, 2019 -	-	-	-	-
Actuarial gains (and losses) on defined benefit plans	Actuarial gains (and losses) on defined benefit plans December 31, 2020 (20)	Actuarial gains (and losses) on defined benefit plans December 31, 2019 3	(17)	(29)	5	(24)
Effect of translation adjustments and other	Effect of translation adjustments and other December 31, 2020 (767)	Effect of translation adjustments and other December 31, 2019 45	(722)	(6)	0	(6)
Total	Total December 31, 2020 (787)	Total December 31, 2019 48	(739)	(35)	5	(30)