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Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 5. Financial charges and income
Note 5.
Financial charges and income
Interest
(in millions of euros)
Note
Year ended December 31,
2014
2013
(Charge)/Income
Interest expense on borrowings
21
(283)
(494)
Interest income on SFR’s loans
159
212
Interest income on GVT’s loans
13
10
Interest expense net of borrowings
(111)
(272)
Interest income from cash and cash equivalents
15
6
Interest from continuing operations
(96)
(266)
Premium paid and other costs related to the early redemptions of bonds
(a)
(698)
(202)
(794)
(468)
Other financial income and charges
(in millions of euros)
Note
Year ended December 31,
2014
2013
Expected return on plan assets related to employee benefit plans
19.2
12
13
Foreign exchange gain
7
-
Other financial income
19
13
Premium paid and other costs related to the early redemptions of bonds
(a)
(698)
(202)
Effect of undiscounting liabilities
(b)
(8)
(12)
Interest cost related to employee benefit plans
19.2
(31)
(31)
Foreign exchange loss
(8)
(45)
Change in value of derivative instruments
-
(1)
Other
(6)
(9)
Other financial charges
(751)
(300)
Net total
(732)
(287)
(a)
Includes net premium paid related to the early redemption of bonds:
–– a net amount of €642 million in 2014, following the completion of the sale of SFR; and
–– a net amount of €182 million in 2013, following the sale of 88% of Vivendi’s interest in Activision Blizzard.
(b)
In accordance with applicable accounting standards, when the effect of the time value of money is material, assets and liabilities are initially
recorded on the Statement of Financial Position in an amount corresponding to the present value of the expected revenues and expenses. At the end
of each subsequent period, the present value of such assets and liabilities is adjusted to account for the passage of time. As of December 31, 2014
and 2013, these adjustments only applied to liabilities (mainly trade accounts payable and provisions).
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Annual Report 2014