Notes to the statement of income
Operating income in other activities
Operating income in other activities was better than the prior year mainly due to lower corporate costs which are continuing to decline as a result of cost control. Year-to-date pension costs are higher compared with 2013 due to de-risking of pension liabilities in the UK in Q1 2014. Other costs are higher because of a benefit in legacy costs in the previous year.
|
3rd quarter |
|
January - September |
||||||
|
2013 |
2014 |
in € millions |
2013 |
2014 |
||||
|
(58) |
(53) |
Corporate costs |
(145) |
(138) |
||||
|
(2) |
(3) |
Pensions |
(7) |
(12) |
||||
|
1 |
4 |
Insurances |
4 |
12 |
||||
|
(12) |
(17) |
Other |
(41) |
(44) |
||||
|
(71) |
(69) |
Operating income in other activities |
(189) |
(182) |
||||
Net financing expenses
Net financing expenses decreased by €18 million to €38 million, mainly due to lower interest expenses on net debt.
Operating income to net income
|
3rd quarter |
|
January - September |
||||||
|
2013 |
2014 |
in € millions |
2013 |
2014 |
||||
|
303 |
335 |
Operating income |
842 |
904 |
||||
|
(56) |
(38) |
Net financing expenses |
(152) |
(115) |
||||
|
4 |
6 |
Results from associates and joint ventures |
13 |
18 |
||||
|
251 |
303 |
Profit before tax |
703 |
807 |
||||
|
(83) |
(84) |
Income tax |
(90) |
(216) |
||||
|
168 |
219 |
Profit from continuing operations |
613 |
591 |
||||
|
1 |
2 |
Profit from discontinued operations |
115 |
4 |
||||
|
169 |
221 |
Profit for the period |
728 |
595 |
||||
|
(14) |
(16) |
Non-controlling interests |
(55) |
(56) |
||||
|
155 |
205 |
Net income |
673 |
539 |
||||
Tax
The year-to-date effective tax rate is 27 percent. Excluding the positive adjustment to previous years recorded in Q1 2014, the effective tax rate is 28 percent (2013: 30 percent excluding a deferred tax gain).