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Notes to the statement of income


EBIT in "other"

Corporate costs reflect an overall higher activity level as a consequence of the new management structure and specific functional excellence activities. Other costs were lower than last year due to favorable legacy items.

 

1st quarter

 

in € millions

2010

2011

Corporate costs

(20)

(25)

Pensions

2

(2)

Insurances

2

3

Other

(22)

(15)

EBIT in “other”

(38)

(39)

Net financing expenses

  • Net financing charges decreased by €25 million to €63 million (2010: €88 million):
  • Financing expenses on pensions decreased by €9 million to €16 million mainly due to higher returns on plan assets.
  • Net interest on debt decreased by €8 million to €47 million, mainly due to higher cash balances and a one-time adjustment to the interest classification versus last year.
  • We incurred other interest benefits of €5 million (2010: € nil) due to foreign currency results on hedged future interest cash flows.
  • Interest on provisions decreased by €3 million to €5 million (2010: €8 million) due to lower discount rates.

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

Tax

The Q1 tax rate is 33 percent (2010: 37 percent). The high tax rate is mainly due to the impact of changes in tax rates on the measurement of deferred tax. Excluding these and other incidental factors, the tax rate would have been 28 percent. In 2010, the Q1 tax rate was high mainly due to a law change in the US regarding deductibility of healthcare-related costs.

Copyright © 2011 Akzo Nobel N.V.