(8) Financial result

The financial result breaks down into net interest, interest accretion to provisions, other financial income and other finance costs.

Net interest includes interest income from interest-bearing securities and loans, expenses and income relating to marketable securities, and interest expenses. Net interest also includes shares in profit and dividends from non-current and current marketable securities.

Interest accretion to provisions contains the reversal allocable to the current year of the discounting of non-current provisions from the annual update of the present value calculation. It is reduced by the projected income on plan assets for the coverage of pension obligations.

Net interest is composed of financial assets and liabilities, which are allocated to the following categories:

The financial result also contains all other financial income and finance costs which cannot be allocated to net interest or to interest accretion to provisions. Other financial income includes €232 million in gains realized from the disposal of marketable securities (previous year: €572 million). Other finance costs include write-downs of marketable securities due to decreases in their fair value in the amount of €152 million (previous year: €42 million) as well as €436 million (previous year: €266 million) in realized losses from the disposal of marketable securities.

In order to better reflect the economic substance, income and expenses from operative foreign currency hedging transactions are reported in net terms. The previous-year figures were adjusted by €776 million.