32 » Financial Income/Financial Expenses

Financial result consists of the following:

Interest income from financial instruments, measured at amortized cost, mainly consists of interest income from bank deposits and loans calculated using the ‘effective interest method’.

Interest income/expense from financial instruments at fair value through profit or loss mainly includes interest payments from investment funds as well as net interest payments from interest derivatives not being part of a hedging relationship. Unrealized gains/losses from fair value measurement of such financial assets are shown in other financial income or expenses.

Interest expense on financial instruments measured at amortized cost mainly includes interest on lease liabilities as well as interest on borrowings calculated using the ‘effective interest method’. In the prior year this position included transaction costs of € 9 million that were incurred as part of the revolving syndicated loan with the participation of Germany’s state-owned development bank KfW which were recognized in the income statement in 2020 due to the early redemption.

Interest expense on other provisions, and non-financial liabilities in particular, include effects from the measurement of other provisions at present value and interest on non-financial liabilities such as tax payables.

Information regarding investments, borrowings, and financial instruments is also included in these Notes. See Note 13 See Note 16 See Note 28