Financial income and expenses

 
 
2011
2012
2013
 
 
 
 
Interest income
39
37
55
Interest income from loans and receivables
5
20
33
Interest income from cash and cash equivalents
34
17
22
Dividend income from available for sale financial assets
11
4
5
Net gains from disposal of financial assets
51
1
Net change in fair value of financial assets at fair value through profit or loss
6
Net change in fair value of financial liabilities at fair value through profit or loss
44
Net foreign exchange gains
Other financial income
6
20
10
Financial income
113
106
70
 
 
 
 
Interest expense
(340)
(363)
(323)
Interest on debt and borrowings
(245)
(271)
(245)
Finance charges under finance lease contract
(3)
(7)
(7)
Interest expenses - pensions
(92)
(85)
(71)
Unwind of discount of provisions
(33)
(22)
(25)
Net foreign exchange losses
(2)
(6)
Impairment loss of financial assets
(34)
(8)
(10)
Net change in fair value of financial assets at fair value through profit or loss
 
(2)
(9)
Net change in fair value of financial liabilities at fair value through profit or loss
 
 
(3)
Other financial expenses
(35)
(40)
(24)
Financial expense
(444)
(435)
(400)
 
 
 
 
Financial income and expenses
(331)
(329)
(330)

Net financial income and expense showed a EUR 330 million expenses in 2013, which was 1 million higher than in 2012. Total finance income of EUR 70 million included EUR 55 million interest income. Remaining financial income included dividend income of EUR 5 million and other finance income of EUR 10 million. Total financial expense of EUR 400 million included EUR 10 million impairment charges and EUR 323 million interest expenses. Remaining financial expense consisted mainly of EUR 25 million of accretion expenses associated with discounted provisions and uncertain tax positions and EUR 24 million other financing charges.

Net financial income and expense showed a EUR 329 million expense in 2012, which was EUR 2 million lower than in 2011. Total financial income of EUR 106 million included a EUR 46 million gain related to a change in estimate on the valuation of long term derivative contracts. Remaining financial expense consisted mainly of EUR 22 million of accretion expenses associated with discounted provisions and uncertain tax positions and EUR 40 million other financing charges.

Net financial income and expense showed a EUR 331 million expense in 2011. Total finance income of EUR 113 million included EUR 51 million gain on the disposal of financial assets, of which EUR 44 million resulted from the sale of shares in TCL and EUR 6 million resulted from the sale of Digimarc. Remaining financial income included dividend income of EUR 11 million and a total net EUR 6 million gain from fair value changes, mainly the revaluation of the NXP option. Total finance expense of EUR 444 million included EUR 34 million impairment charges, mainly related to the shareholding in TPV Technology. Remaining financial expense consisted mainly of EUR 33 million of accretion expenses associated with discounted provisions and uncertain tax positions and EUR 35 million other financing charges.

(0)
(0)
This is an interactive electronic version of the Philips Annual Report 2013 and also contains certain information in summarized form. The contents of this version are qualified in their entirety by reference to the printed version of the full Philips Annual Report 2013. This printed version is available as a PDF file on this website. Information about: forward-looking statements, third-party market share data, fair value information, IFRS basis of presentation, use of non-GAAP information, statutory financial statements and management report, reclassifications and analysis of 2013 compared to 2012.