Audi 2010 Annual Report Download - page 210

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Income from derivative hedging transactions mainly results from the settlement of currency
hedging instruments. The total position in relation to hedging transactions is presented under
Note 34.4, “Methods of monitoring the effectiveness of hedging relationships.”
Income from ancillary business includes rental income from investment property in the amount
of EUR 0.4 (0.4) million.
Income from the processing of payments in foreign currency substantially comprises gains re-
sulting from exchange-rate movements between the dates of output and payment, as well as
exchange-rate gains resulting from measurement at the mean of the buying and selling rate on
the closing date. Similarly, exchange rate losses are reported under other operating expenses.
6 Other operating expenses
EUR million 2010 2009
Expenses from the processing of payments in foreign currency 126 122
Expenses from derivative hedging transactions 246 224
Expenses from the allocation and recharging of costs 35 43
Impairment losses on receivables 12 76
Losses on the disposal of assets 8 4
Miscellaneous operating expenses 241 153
Total other operating expenses 667 622
Expenses from derivative hedging transactions mainly result from currency option premiums
and the settlement of currency hedging instruments. The total position in relation to hedging
transactions is presented under Note 34.4, “Methods of monitoring the effectiveness of hedging
relationships.”
7 Result from investments accounted for using the equity method
The result from investments accounted for using the equity method reached
EUR 220 (110) million.
8 Financing costs
EUR million 2010 2009
Interest and similar expenses – 82 – 78
of which to affiliated companies – 78 – 73
Interest expense – 82 – 78
Interest effect from the measurement of provisions for pensions – 112 – 111
Interest effect from the measurement of other provisions – 101 – 80
Interest on provisions – 212 – 191
Financing costs – 294 – 269
Interest expense is attributed on an accrual basis.