Note 5: Financing income and expenses
Financing income and expenses |
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|
|
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In € millions |
2014 |
2015 |
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Financing income |
42 |
28 |
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Financing expenses |
(157) |
(125) |
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Net interest on net debt |
(115) |
(97) |
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|
|
|
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Other interest movements |
|
|
||
Financing expenses related to pensions |
(18) |
(13) |
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Interest on provisions |
(32) |
(17) |
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Other items |
9 |
13 |
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Net other financing charges |
(41) |
(17) |
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Net financing expenses |
(156) |
(114) |
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Net financing expenses for the year decreased by €42 million, from €156 million to €114 million. Significant variances are:
- Net interest on net debt decreased by €18 million to €97 million (2014: €115 million), mainly due to lower financing expenses as a result of a high interest bond repayment partly off-set by a lower return on investments held in an escrow account
- Net other financing charges decreased by €24 million to €17 million (2014: €41 million) mainly as a result from less significant decreases of discount rates in 2015 when compared to 2014
The average interest rate used for capitalized interest was 3.9 percent (2014: 5.1 percent).
The average financing expenses on total debt were 4.0 percent (2014: 5.0 percent)
Net debt
Defined as long-term borrowings plus short-term borrowings less cash and cash equivalents.