BMW 2007 Annual Report Download - page 93

91
Result from equity accounted investments
The profit from equity accounted investments of
euro 11 million (2006: loss of euro 25 million) in-
cludes the result of the joint venture, BMW Brilliance
Automotive Ltd., Shenyang. In the previous year, the
result of TRITEC Motors Ltda., Campo Largo, was
also included.
[13]
Other financial result
[14]
[15]
The deterioration in other financial result is due to
the exceptional gain recorded in 2006 on the partial
settlement of the exchangeable bond on shares in
Rolls-Royce plc, London. As well as the impact of
the exchangeable bond, sundry other financial result
also includes losses recognised on derivative finan-
cial instruments, in particular on stand-alone inter-
est rate derivatives. The decrease in the fair values of
these financial instruments reflected the changes
in the interest rate structure.
Income taxes
Taxes on income comprise the following:
in euro million 2007 2006
Current tax expense 1,002 993
Deferred tax expense – 263 257
739 1,250
in euro million 2007 2006
Income from investments 3 62
– thereof from subsidiaries euro 1 million (2006: euro 58 million)
Impairment losses on investments in subsidiaries and other companies – 6 – 46
Reversals of impairment losses on investments in subsidiaries and other companies – 16
Result on investments – 3 32
Expected return on plan assets 358 315
Other interest and similar income* 287 259
– thereof from subsidiaries euro 12 million (2006: euro 19 million)
Interest and similar income 645 574
Expense from reversing the discounting of pension obligations – 537 – 501
Expense from reversing the discounting of other long-term provisions – 86 – 35
Write-downs on marketable securities – 49 – 2
Sundry interest and similar expenses* – 225 – 319
– thereof to subsidiaries euro 1 million (2006: euro 2 million)
Interest and similar expenses – 897 – 857
Net interest result – 252 – 283
Fair value measurement of financial instruments – 95 350
Sundry other financial result – 95 350
Other financial result – 350 99
*
Interest income and expenses relating to stand-alone derivatives are netted within the net interest result. Interest income includes net interest income of euro 70 million (2006:
euro 83 million) relating to stand-alone derivatives.