Change
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Note 5: Financing income and expenses


In € millions

 

2010

 

2011

 

 

 

 

 

Interest income

 

 

 

 

Loans and receivables

 

51

 

57

 

 

 

 

 

Interest expenses

 

 

 

 

Net financing expenses on pensions and other post-retirement benefits

 

(100)

 

(59)

Interest rate derivatives

 

14

 

Other financial liabilities

 

(253)

 

(302)

Other

 

(39)

 

(34)

 

 

 

 

 

Fair value changes

 

 

 

 

Interest rate derivatives

 

16

 

Other financial liabilities

 

(15)

 

Other

 

(1)

 

Total

 

(327)

 

(338)

Net financing charges for the year increased by €11 million from €327 million to €338 million. Significant items included are:

  • Other financial liabilities increased by €49 million to €302 million (2010: €253 million) mainly due to the loss (€67 million) on the buyback of company bonds in December partly offset by the higher amortization (€9 million) of interest rate swaps closed out in 2010. The repayment of the 4.25 percent bond in June 2011 resulted in a €11 million lower interest expense compared to 2010
  • Financing expenses on pensions decreased by €41 million to €59 million (2010: €100 million) due to lower discount rates
  • Other items include a €2 million gain (2010: €14 million loss) on foreign currency results of hedged future interest cash flows, partly being offset by lower interest on provisions in 2011 (€7 million).

A reduction of €4 million (2010: €10 million) was included in the interest expenses of capital investment projects under construction. The average interest rate used for capitalization of borrowing costs was 6.9 percent.

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