Financial Statements and Management Report - Thyssenkrupp

2.3 Financial statements Notes
15 Writedowns of financial assets and securities classed
as operating assets
The €327 million writedowns of financial assets and securities classed
as operating assets in the past fiscal year resulted mainly from
writedowns of shares in subsidiaries.
16 General administrative costs
million €
2009/2010 2010/2011
Salaries 111 142
Statutory social contributions 8 9
Expense for pensions 33 17
Expense for other benefits 1 0
Total personnel expense 153 168
Depreciation/amortization 22 29
Other administrative costs 166 211
thereof expense for services 48 58
thereof data processing services 31 50
thereof maintenance expense 17 23
Total 341 408
Overall ThyssenKrupp AG personnel expense is reported under the
general administrative costs item in accordance with § 275 subs. 3
HGB.
The €67 million rise in general administrative costs is mainly
attributable to an increase in administrative costs for services and data
processing.
At the reporting date the number of employees stood at 859, including
36 trainees, 8 apprentices and 27 interns. The average number of
employees at ThyssenKrupp AG in the fiscal year was 797 (prior year
783).
17 Other operating expense
The €431 million change in other operating expense from the prior
year is due to intra-Group disposal losses of €158 million and to the
crediting of a compensation payment (see Other operating income) of
€211 million which was passed onto a subsidiary.
This transaction together with the recognition of provisions resulted in
non-period other operating expense of €236 million.
Other operating expense of €6 million resulted from currency
translation effects.
18 Net interest
million €
42
2009/2010 2010/2011
Income from loans classified
as financial assets 133 258
amount thereof from affiliated companies 133 258
Other interest and similar income 271 246
amount thereof from affiliated companies 192 183
Interest and similar costs (851) (991)
amount thereof to affiliated companies (522) (671)
Total (447) (487)
Net interest comprises interest expense and income from both intra-
Group and external financing. The increase in net interest expense is
mainly the result of intra-Group capital allocations at Group companies.
Added to this is an interest component due to the addition of accrued
interest on pension obligations in accordance with the Accounting Law
Modernization Act (BilMoG) of €20 million and the addition of accrued
interest on other provisions with a remaining term of more than one
year of €9 million.
19 Extraordinary income/expense
To comply with valuation requirements following the adoption of the
Accounting Law Modernization Act (BilMoG), allocations of €19 million
were made to provisions for pension obligations and other provisions
at October 01, 2010. This is reported under extraordinary
income/expense. This was partly offset by income from the liquidation
of a subsidiary in the amount of €2 million.
20 Taxes on income
Taxes on income relate to back payments falling due on completion of
the tax inspection in the fiscal year and associated consequences as
well as taxes for the reporting year. The €262 million change from the
prior year is due to the absence of nonrecurring items. Under an option
applying to a net deferred tax asset, deferred taxes are not included in
tax expense.