Financial income and expenses

A breakdown of Financial income and expenses is presented in the table below.

Financial income and expenses
in millions of euros
 
2011
2012
2013
 
 
 
 
Interest expense (net)
(302)
(325)
(268)
Sale of securities
51
1
Impairments
(34)
(8)
(10)
Other
(46)
3
(52)
 
(331)
(329)
(330)

The net interest expense in 2013 was EUR 57 million lower than in 2012, mainly as a result of lower average outstanding debt and interest related to pensions in 2013.

Other financial income was a EUR 52 million loss in 2013, primarily consisting of a EUR 25 million accretion expense (mainly associated with discounted provisions) and EUR 24 million of other financing charges.

Other financial income was a EUR 3 million gain in 2012, primarily consisting of a EUR 46 million gain related to a change in estimate on the valuation of long-term derivative contracts and remaining other financial income of EUR 20 million. This was offset by a EUR 22 million accretion expense (mainly associated with discounted provisions) and EUR 41 million other financing charges.

Impairments
in millions of euros
 
2011
2012
2013
 
 
 
 
TPV
(25)
Chi-Mei Innolux
(4)
(1)
(1)
BG Medicine
(2)
(1)
(1)
Prime Technology
(1)
Tendris
(5)
(1)
Gilde III
(1)
(2)
Lighting Science Group
(3)
Other
(2)
(2)
 
(34)
(8)
(10)

Impairment charges in 2013 amounted to EUR 10 million, mainly from shareholdings in Lighting Science Group and Gilde III. In 2012, impairment charges amounted to EUR 8 million, mainly from shareholdings in Tendris.

For further information, refer to note (4) Financial income and expenses.

(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.