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Notes to the statement of income

EBIT in “other”

Corporate costs ended in line with previous year. Additional costs for functional excellence activities were offset by cost savings. The result of our captive insurance companies was in line with the previous year, although we had a higher number of claims in the fourth quarter. Other costs were lower due to cost savings and favorable non-recurring items.

4th quarter


January - December



in € millions





Corporate costs




















EBIT in “other”



Net financing expenses

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

  • Net interest on debt which increased by €56 million to €245 million (2010: €189 million) due to the loss (€67 million) on the buy back of company bonds in December partly offset by higher financing income.
  • Financing expenses on pensions which decreased by €41 million to €59 million (2010: €100 million) mainly due to lower discount rates.
  • A decrease in costs of €16 million on foreign currency results of hedged future interest cash flows.

In Q4, we incurred a gain of €8 million as a result of hedged future interest cash flows. Other main changes were related to lower financing expenses on pensions (€8 million) and lower discount rates for provisions (€20 million). Mid-December, we bought back a total nominal amount of €528 million of our 2014 and 2015 bonds and replaced them with bonds with lower interest rates. This transaction resulted in a loss of €67 million in the fourth quarter, which will be set off in later years by significantly lower interest costs. The transaction has improved our maturity profile.


The year-to-date tax rate is 27 percent (2010: 19 percent). The tax rate benefits from several adjustments to previous years and tax-exempt gains, the main one being a release of an anti-trust provision. The tax rate in 2010 was low because of several adjustments to previous years, partly related to settlements with tax authorities.

The Q4 tax is impacted positively by the influence of changes in tax rates on the measurement of deferred tax and by several adjustments to previous years.

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