The income tax breaks down as follows:
| € millions | 31.12.2022 | 31.12.2021 | 31.12.2020 |
|---|---|---|---|
| Tax on profit before tax and exceptional items | -262.5 | -82.3 | -39.8 |
| Tax on exceptional items and employee Profit Sharing | 12.1 | 80.6 | 17 |
| INCOME TAX | -250.4 | -1.7 | -22.8 |
In 2022, the tax charge recognised by L’Oréal included a tax consolidation loss of €65.0 million.
In 2021, the tax charge recognised by L’Oréal reflected €53.3 million in savings resulting from tax consolidation.
In 2020, the tax charge recognised by L’Oréal included a tax consolidation loss of €0.3 million.
| 31.12.2020 | 31.12.2021 | Changes | 31.12.2022 | |||||
|---|---|---|---|---|---|---|---|---|
| € millions | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities |
| Temporary differences | ||||||||
| Regulated provisions | - | 10.2 | - | 7.6 | 3.3 | 1.2 | - | 5.6 |
| Temporarily non-deductible charges | 116.3 | - | 132.8 | - | 14.0 | 46.4 | 100.5 | - |
| Charges deducted (or revenue taxed) for tax purposes but not yet recognised | - | 0.2 | - | 43.8 | 4.7 | -43.8 | 4.7 | - |
| Temporarily non-taxable revenue | - | - | - | - | - | - | - | - |
| Deductible items | ||||||||
| Tax losses, deferred items | - | - | - | - | - | - | - | - |
| Potentially taxable items | ||||||||
| Special reserve for long-term capital gains | - | 150.7 | - | 137.0 | - | - | - | 137.0 |
These figures factor in the social contribution of 3.3% which is added to corporate income tax, both at normal and reduced rates,and the reduction in the tax rate in 2022.
Expenses booked for Research activities in 2022 totalled €1,188.3 million, compared with €1,040.7 million in 2021 and €976.6 million in 2020.
| € millions | 31.12.2020 | 31.12.2021 | Acquisitions/Depreciation | Disposals/Reversals | Other movements | 31.12.2022 |
|---|---|---|---|---|---|---|
| Patents and trademarks(1) | 1,003.0 | 1,147.6 | 49.2 | - | - | 1,196.7 |
| Business goodwill(2) | 2,860.4 | 2,981.7 | 160.3 | -9.4 | - | 3,132.7 |
| Software | 559.1 | 602.8 | 17.8 | -25.0 | 69.4 | 665.0 |
| Other intangible assets | 551.0 | 551.0 | - | - | - | 551.0 |
| Tangible assets in progress | 259.3 | 260.8 | 208.9 | -22.2 | -70.1 | 377.4 |
| Gross value | 5,232.9 | 5,543.9 | 436.2 | -56.6 | -0.8 | 5,922.6 |
| Patents and trademarks | 181.6 | 193.4 | 16.6 | - | - | 210.0 |
| Business goodwill | 2.0 | 2.5 | 2.7 | -5.0 | - | 0.1 |
| Software | 388.5 | 438.1 | 73.5 | -20.0 | -0.2 | 491.4 |
| Other intangible assets | 69.0 | 72.3 | 2.3 | - | 0.2 | 74.8 |
| Amortisation | 641.1 | 706.3 | 95.1 | -25.0 | 0.0 | 776.3 |
| Patents and trademarks | 69.9 | 74.7 | 2.8 | -1.4 | - | 76.1 |
| Business goodwill(3) | 149.7 | 150.1 | 45.7 | -6.5 | - | 189.3 |
| Software | 2.7 | 1.9 | 0.6 | -1.5 | - | 1.0 |
| Other intangible assets | 3.5 | 3.6 | - | - | - | 3.6 |
| Impairment | 225.8 | 230.2 | 49.1 | -9.4 | - | 269.9 |
| NET VALUE | 4,366.0 | 4,607.4 | 292.0 | -22.2 | -0.8 | 4,876.4 |
(1) In 2022, the increase in patents and trademarks is mainly related to the acquisition of the Skinbetter Science and Youth to the People brands, following the final setting of the purchase price.
(2) In 2022, the increase in business goodwill was related to the acquisition of Skinbetter Science. In 2021, the increase in business goodwill was related to the acquisition of Youth to the People.
(3) In 2022, the increase in the impairment of other intangible assets was related mainly to the Decléor brand.
