Taxation (Tables)

12 Months Ended

Dec. 31, 2014

Year to December 31,
		2014	2013	2012
		$’M	$’M	$’M
		___________	___________	___________
Income from continuing operations before income taxes and equity in earnings of equity method investees		3,336.2	1,693.6	1,007.8
		___________	___________	___________
Statutory tax rate⁽¹⁾		25.0%	25.0%	25.0%

Non-deductible items:
	US R&D credit	(2.5%)	(4.5%)	(2.6%)
	Effect of the convertible bond	-	0.5%	0.8%
	Intra-group items⁽²⁾	(6.3%)	(9.2%)	(16.0%)
	Recognition of foreign tax credits	-	-	(6.6%)
	Other permanent items	0.7%	(0.7%)	0.8%
Other items:
Change in valuation allowance		0.8%	0.9%	3.4%
Impact of RESOLOR impairment		-	-	4.9%
Difference in taxation rates		3.4%	7.8%	7.6%
Change in provisions for uncertain tax positions		0.2%	3.8%	1.1%
Prior year adjustment		0.1%	(3.4%)	0.8%
Change in fair value of contingent consideration		0.3%	(3.6%)	-
Change in tax rates		0.5%	(0.2%)	0.8%
Receipt of break fee		(12.3%)	-	-
Settlement with Canadian revenue authorities		(7.0%)	-	-
Other		(1.2%)	-	0.1%
		___________	___________	___________
Provision for income taxes on continuing operations		1.7%	16.4%	20.1%
		___________	___________	___________

	2014	2013	2012
	$’M	$’M	$’M
	___________	___________	___________
Balance at January 1	355.2	278.7	265.5
Increases based on tax positions related to the current year	20.3	56.8	20.5
Decreases based on tax positions taken in the current year	-	(0.5)	-
Increases for tax positions taken in prior years	64.2	34.5	0.4
Decreases for tax positions taken in prior years	(211.0)	(0.8)	(3.3)
Decreases resulting from settlements with the taxing authorities	(9.4)	-	(10.6)
Decreases as a result of expiration of the statute of limitations	(0.6)	(0.6)	(0.3)
Foreign currency translation adjustments⁽¹⁾	(10.9)	(12.9)	6.5
	___________	___________	___________
Balance at December 31⁽²⁾	207.8	355.2	278.7
	___________	___________	___________

	December 31,	December 31,
	2014	2013
	$’M	$’M
	____________	____________
Deferred tax assets:
Deferred revenue	3.2	5.2
Inventory & warranty provisions	28.8	48.6
Losses carried forward (including tax credits)¹	686.3	500.6
Provisions for sales deductions and doubtful accounts	166.7	151.8
Intangible assets	5.8	10.7
Share-based compensation	29.5	25.5
Excess of tax value over book value of assets	13.4	22.1
Accruals and provisions	51.5	55.1
Other	14.0	2.6
	____________	____________
Gross deferred tax assets	999.2	822.2
Less: valuation allowance	(324.7)	(282.4)
	____________	____________
	674.5	539.8
Deferred tax liabilities:
Intangible assets	(1,196.5)	(586.8)
Excess of book value over tax value of assets and investments	(231.8)	(56.9)
	____________	____________
Net deferred tax liabilities	(753.8)	(103.9)
	____________	____________

Balance sheet classifications:
Deferred tax assets - current	344.7	315.6
Deferred tax assets - non-current	112.1	141.1
Deferred tax liabilities - non-current	(1,210.6)	(560.6)
	____________	____________
	(753.8)	(103.9)
	____________	____________