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Notes to the statement of income


EBIT in "other"

Corporate costs on a year-to-date basis are 10 percent below the previous year.

The result from our captive insurance companies was negative in the quarter, mainly due to product liability and business interruption claims. Other costs on a year-to-date basis were higher due to higher share-based compensation and some company projects.

2ND QUARTER

 

IN € MILLIONS

JANUARY - JUNE

2010

2009

 

 

2010

2009

 

 

 

 

 

 

(23)

(24)

 

Corporate costs

(43)

(51)

7

 

Pensions

2

15

(6)

(5)

 

Insurances

(4)

4

(13)

(14)

 

Other

(35)

(24)

 

 

 

 

 

 

(42)

(36)

 

EBIT in "other"

(80)

(56)

Interest

Net financing charges increased by €28 million to €113 million, due to:

  • Financing expenses on pensions which decreased by €19 million to €26 million (2009: €45 million) mainly due to higher returns on plan assets
  • Higher interest charges of €22 million on long-term debt
  • Higher interest charges on provisions of €20 million to €29 million (2009: €9 million), due to lower discount rates.

Further detail on financing charges is provided in the table below.

Reconciliation net financing expense

2ND QUARTER

 

IN € MILLIONS

JANUARY - JUNE

2010

2009

 

 

2010

2009

 

 

 

 

 

 

12

15

 

Financing income

24

25

(72)

(50)

 

Financing expenses

(139)

(111)

(60)

(35)

 

Net interest on net debt

(115)

(86)

 

 

 

 

 

 

 

 

 

Other interest movements:

 

 

(26)

(45)

 

- Financing expenses related to pensions

(51)

(90)

(29)

(9)

 

- Interest on provisions

(37)

(18)

2

4

 

- Other items

2

4

(53)

(50)

 

Net other financing charges

(86)

(104)

 

 

 

 

 

 

(113)

(85)

 

Net financing expenses

(201)

(190)

Tax

The year-to-date tax rate is 26 percent (2009: 32 percent). The tax rate is lower because of several adjustments in previous years, partly related to settlements with several tax authorities. These decreasing factors were partly offset by the impact of a law change in the US regarding deductibility of healthcare-related costs and non-deductible costs related to a devaluation loss in Venezuela. Excluding these and other incidental items, the year-to-date tax rate would have been 28 percent.

Copyright © 2010 Akzo Nobel N.V.