Note 5: Financing income and expenses
in € millions |
2015 |
2016 |
Financing income |
28 |
28 |
Financing expenses |
(125) |
(98) |
Net interest on net debt |
(97) |
(70) |
|
|
|
Other interest |
|
|
Financing expenses related to post-retirement benefits |
(13) |
(10) |
Interest on provisions |
(17) |
(40) |
Other items |
13 |
6 |
Net other financing charges |
(17) |
(44) |
Net financing expenses |
(114) |
(114) |
Net financing expenses for the year were €114 million (2015: €114 million). Significant variances are:
- Net interest on net debt decreased by €27 million to €70 million (2015: €97 million), mainly due to lower financing expenses as a result of the repayment of high interest bonds which were partly replaced by a lower interest bond
- Net other financing charges increased by €27 million to €44 million (2015: €17 million) as the decrease of discount rates on provisions in 2016 exceeded the decrease in 2015
The average interest rate used for capitalized interest was 2.9 percent (2015: 3.9 percent) and amounted to €8 million (2015: €12 million).
The average interest rate on total debt was 3.5 percent (2015: 4.0 percent).
Net debt
Defined as long-term borrowings plus short-term borrowings less cash and cash equivalents.