Mercedes 2015 Annual Report Download - page 212

E | CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 219
7. Other financial income/expense, net
Table  E .16 shows the components of other financial
income/expense, net.
In 2014, miscellaneous other financial income/expense, net
included income from the disposal of the 50% equity interest
in RRPSH of €1,006 million as well as income from the disposal
of the Tesla shares of €88 million. It also included in 2014
expenses of €118 million from the measurement of the RRPSH
put option and expenses of €212 million from hedging the
Tesla share price.
8. Interest income and interest expense
Table  E .17 shows the components of interest income
and interest expense.
9. Income Taxes
Profit before income taxes is comprised as shown
in table  E .18.
Profit before income taxes in Germany includes profit/loss
from equity-method investments if the equity interests in those
companies are held by German companies.
Table  E .19 shows the components of income taxes.
The current tax expense includes tax benefits at German
and foreign companies of €731 million (2014: €53 million)
recognized for prior periods.
The deferred tax expense is comprised of the components
shown in table  E.20.
For German companies, in 2015 and 2014, deferred taxes were
calculated using a federal corporate income tax rate of 15%,
a solidarity tax surcharge of 5.5% on each year’s federal corpo-
rate income taxes, and a trade tax rate of 14%. In total, the
tax rate applied for the calculation of German deferred taxes
in both years amounted to 29.825%. For non-German compa-
nies, the deferred taxes at period-end were calculated using the
tax rates of the respective countries.
Other financial income/expense, net
2015 2014
In millions of euros
Income and expense from compounding of provisions
and effects of changes in discount rates1
-20
-353
Miscellaneous other financial income/expense, net -7 811
-27 458
1 Excluding the expense from compounding provisions for pensions and
similar obligations.
E.16
Interest income and interest expense
2015 2014
In millions of euros
Interest income
Net interest income on the net assets of defined
benefit pension plans
3
3
Interest and similar income 167 142
170 145
Interest expense
Net interest expense on the net obligation
from defined benefit pension plans
-293
-350
Interest and similar expense -309 -365
-602 -715
E.17
Profit before income taxes
2015 2014
In millions of euros
German companies 4,980 2,960
Non-German companies 7,764 7,213
12,744 10,173
E.18
Components of income taxes
2015 2014
In millions of euros
Current taxes
German companies -918 -1,125
Non-German companies -1,558 -1,395
Deferred taxes
German companies -444 242
Non-German companies -1,113 -605
-4,033 -2,883
E.19
Components of deferred tax expense
2015 2014
In millions of euros
Deferred taxes -1,557 -363
due to temporary differences -595 -44
due to tax loss carryforwards and tax credits -962 -319
E.20