Change
Tools: Print this page Recommend this page

Notes to the statement of income


EBIT in “other”

Corporate costs ended below the previous year. The pension cost impact is due to IAS 19 corridor accounting. We saw fewer insurance claims in 2010, leading to a better result in this year in insurance. Other costs are higher than the previous year, mainly due to increased project activity in line with our strategy to drive functional excellence.

4TH QUARTER

 

IN € MILLIONS

JANUARY - DECEMBER

2010

2009

 

 

2010

2009

 

 

 

 

 

 

(29)

(16)

 

Corporate costs

(96)

(99)

(12)

7

 

Pensions

(7)

29

4

(9)

 

Insurances

2

(9)

(23)

(33)

 

Other

(87)

(70)

 

 

 

 

 

 

(60)

(51)

 

EBIT in "other"

(188)

(149)

Net financing expenses

Net financing charges for the year decreased by €78 million from €405 million to €327 million, due to decreased financing expenses on pensions (€71 million mainly due to higher returns on plan assets). In addition:

  • Interest on provisions decreased by €15 million due to lower discount rates.
  • Interest on net debt increased by €11 million due to higher cost of refinanced bonds in 2009 and lower rates on our cash position during 2010.

For the fourth quarter, the main changes were related to the lower financing expenses on pensions (€16 million) and the lower discount rate for provisions (€32 million).

For further detail on financing charges, please refer to Quarterly statistics.

Tax

The year-to-date tax rate is 19 percent (2009: 30 percent). The tax rate is low because of several adjustments to previous years, partly related to settlements with tax authorities. Furthermore there were tax-exempt gains related to acquisitions and divestments. Excluding these and other incidental items, the year-to-date tax rate would have been 28 percent (2009: 30 percent).

Discontinued operations

On October 1, we completed the divestment of National Starch with a gain of €53 million. The operating results for 2010 were €74 million. In 2010, we also incurred €37 million related to further settlements and tax-related costs from the divestments of the businesses sold to Henkel in 2008. In total, we reported a gain from discontinued operations of €90 million for 2010 and of €32 million for Q4.

Copyright © 2011 Akzo Nobel N.V.