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Thousands of euros

Balance at 1 January

Income statement

Equity

Reclassi­f- cations

Balance at 31 December 2010

Deferred tax assets

Impairment audiovisual rights 3,367 (3,367) - - - Rights management institutions 7,183 (7,009) - - 174 Provisions, subsidiaries 69,700 29,165 - - 98,865

80,250 18,789 - - 99,039

2009

Deferred tax assets

Impairment audiovisual rights 5,496 (2,129) - - 3,367 Rights management institutions 6,502 681 - - 7,183 Provisions, subsidiaries 50,404 19,296 - - 69,700 Other 3,065 (4,505) - 1,440 -

65,467 13,343 - 1,440 80,250

The Company has no unused loss carryforwards.

At 31 December 2010 unused tax credits for audiovisual productions amount to a total of EUR 12,291 thousand (EUR 19,670 thousand at 31 December 2009) which can be recovered over the next 10 years.

The breakdown of the deductions is as follows:

Thousands of euros

2010 2009

Deductions pending 2009 3,606 19,670 Deductions pending 2010 8,685 -

12,291 19,670

The Company has availed itself of the deduction provided for in article 42 of Royal Legislative Decree 4/2004, of 5 March, which enacted the revised text of the Corporation Tax Law, in respect of income of EUR 1,637 thousand. This amount was generated by the sale of 60% of the Company’s ownership in Cinematext Media, S.A., which was sold on 30 September 2009.

The Company estimated the taxable profts which it expects to obtain over the next fve fscal years (period for which it considers the estimates to be reliable) based on budgeted projections. It has likewise analyzed the reversal period of taxable temporary diferences. Based on this analysis, the Company has recognized deferred tax assets for tax credits and deductible temporary diferences which it considers probable will be recoverable in the future.

15.3. Deferred tax liabilitiess

The breakdown and movements in the various items composing Deferred tax liabilities are as follows:

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Financial Statements, Management and Corporate Governance Report. 2010