16 Financial Expenses

The financial expenses mainly relate to interest expense on financial liabilities measured at amortized cost as well as transaction costs and prepayment penalties for financing measures.

in € million

 

2016

 

2015

 

 

 

 

 

Interest expense from non-derivative financial liabilities

 

325.0

 

309.7

Swaps (current interest expense for the period)

 

27.7

 

35.0

Effects from the valuation of non-derivative financial instruments

 

-31.0

 

-53.2

Effects from the valuation of swaps

 

13.3

 

-4.0

Transaction costs

 

21.5

 

60.5

Prepayment penalties and commitment interest

 

64.4

 

29.9

Interest expenses purchase price liabilities from put options/rights to reimbursement

 

9.1

 

25.9

Interest accretion to provisions

 

11.3

 

9.1

Other financial expenses

 

7.7

 

5.5

 

 

449.0

 

418.4

The prepayment penalties include not only the fees for the unscheduled repayment of a loan during the fixed interest period, but also the hedge break costs for corresponding cash flow hedges that were terminated prematurely. This interest expense is adjusted, where appropriate, in the amount of the results from the reversal of valuation changes for these loans and from the derecognition of the last market valuation of the above-mentioned derivatives.

A reconciliation of net interest to net interest with regard to measurement categories in accordance with IAS 39 is shown in the following table:

in € million

 

2016

 

2015

*

including interest income on plan assets of € 0.5 million (2015: € 0.4 million)

 

 

 

 

 

Interest income

 

14.1

 

2.1

Interest expense

 

-449.0

 

-418.4

Net interest

 

-434.9

 

-416.3

 

 

 

 

 

Less:

 

 

 

 

Net interest from provisions for pensions in acc. with IAS 19*

 

10.4

 

9.0

Net interest from other provisions in acc. with IAS 37

 

0.9

 

-0.4

Net interest from derivatives in acc. with IAS 39: swaps

 

41.0

 

31.1

Net interest from finance leases in acc. with IAS 17

 

5.7

 

5.4

Net interest with regard to measurement categories in acc. with IAS 39

 

-376.9

 

-371.2

The net interest breaks down into the measurement categories in accordance with IAS 39 as follows:

in € million

 

Measurement category in acc. with IAS 39*

 

2016

 

2015

*

see note [37] Additional Financial Instrument Disclosures

 

 

 

 

 

 

 

Loans and receivables

 

LaR

 

4.5

 

1.0

Available-for-sale financial assets

 

AfS

 

0.1

 

0.5

Financial liabilities held for trading

 

FLHfT

 

0.4

 

-25.9

Financial liabilities measured at amortized cost

 

FLAC

 

-381.9

 

-346.8

 

 

 

 

-376.9

 

-371.2