The financial expense is comprised of the following:
|
Financial expense | ||
|
€ thousand |
2012 |
2011 |
|
|
|
|
|
Interest expense from loans |
121,100 |
135,737 |
|
Interest cost of defined benefit obligation |
43,809 |
42,436 |
|
Interest cost of leases |
39,636 |
37,738 |
|
Interest expense from corporate bond |
34,458 |
25,395 |
|
Interest cost of shareholder loan |
27,653 |
27,882 |
|
Amortisation of finance costs |
11,422 |
11,359 |
|
Foreign currency exchange rate losses (financing) |
7,632 |
52,264 |
|
Interest cost of non-current financial liabilities |
2,192 |
2,574 |
|
Other interest expenses and similar charges |
13,667 |
10,324 |
|
Total financial expense |
301,569 |
345,709 |
Interest expenses include interest costs of €101,239 thousand arising from variable-rate loan liabilities under the senior facilities agreement (2011: €117,273 thousand) and losses of €19,861 thousand on interest-rate swaps (2011: €18,464 thousand).
The interest cost of the defined benefit obligation is the annual interest expense in connection with the unwinding of the discount on non-current pension obligations.
The interest cost of leases relates to the interest portion of lease payments in financial services transactions in which the material risks and rewards are borne by KION Group companies as the lessee (finance leases). Sale-finance leaseback-operating sub-leases (SALB-FL-OL) incurred interest expenses of €20,719 thousand (2011: €19,587 thousand). These interest expenses were not directly offset by any interest income. The corresponding income reported within revenue as lease payments received.
The foreign currency exchange rate losses – financing – include losses on derivative financial instruments amounting to €7,588 thousand (2011: €31,843 thousand).
