FINANCIAL REPORT 2017

2.6.7. DEPRECIATION, AMORTISATION AND IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

31.12.2017

31.12.2016

(in thousands of euros)

DEPRECIATION AND AMORTISATION

-22158

-23571

• property, plant & equipment

-3241

-4192

• intangible assets

-18916

-19379

TOTAL

-22158

-23571

2.6.8. COST OF RISK

31.12.2017

31.12.2016

(in thousands of euros)

CHARGE TO PROVISIONS AND IMPAIRMENT

-134

-180

Fixed income available-for-sale financial assets Other assets

-134

-180

WRITE-BACKS OF PROVISIONS AND IMPAIRMENT

119

168

Fixed income available-for-sale financial assets Other assets

119

168

NET CHARGE TO IMPAIRMENT AND PROVISIONS

-15

-12

Recoveries on bad debts written off OTHER NET LOSSES

-14

COST OF RISK

-29

-12

2.6.9. INCOME TAX EXPENSE

2.6.9.1. Tax expense

31.12.2017

31.12.2016

(in thousands of euros)

Current tax expense

-47904

-46640

Deferred tax expense

-1702

8008

TAX EXPENSE FOR THE PERIOD

-49606

-38632

2.6.9.2. Reconciliation of theoretical tax rate and effective tax rate

31.12.2017 Base Tax rate

(in thousands of euros)

Tax

Income before tax, goodwill impairment, discontinued operations and share of profit in equity-accounted entities

202622 34.43% -69763

Impact of permanent differences

-13298

Impact of different tax rates on foreign subsidiaries

10025

Impact of losses of the year, utilisation of tax loss carryforwards and temporary differences

-231

Impact of reduced tax rate

23290

Impact of other items

370

EFFECTIVE TAX RATE AND TAX EXPENSE

24.48% -49606

28