In addition to the items forming part of the specifi c lines of profi t or loss, the following analysis of Net fi nancial income/(expenses) in 2014 also takes into account the Interest income from customers and other fi nancial income of Financial Services included in Net revenues for $1,015 million ($962 million in 2013) and the costs incurred by Financial Services included in Interest expense and other fi nancial charges from Financial Services included in Cost of sales for $791 million ($721 million in 2013).
A reconciliation to the income statement is provided under the following table.
| ($ million) | 2014 | 2013 |
|---|---|---|
| Financial income: | ||
| Interest income and other financial income | 67 | 55 |
| Interest income from customers and other financial income of Financial Services | 1,015 | 962 |
| Total financial income | 1,082 | 1,017 |
| of which: | ||
| Financial income, excluding Financial Services (a) | 67 | 55 |
| Interest and other financial expenses: | ||
| Interest cost and other financial expenses | 1,269 | 1,186 |
| Write-downs of financial assets | 151 | 124 |
| Interest costs on employee benefits | 82 | 82 |
| Total interest and other financial expenses | 1,502 | 1,392 |
| Net (income)/expenses from derivative financial instruments and exchange differences | 132 | (1) |
| Total interest and other financial expenses, net (income)/expenses from derivative financial instruments and exchange differences | 1,634 | 1,391 |
| of which: | ||
| Interest and other financial expenses, effects resulting from derivative financial instruments and exchange differences, excluding Financial Services (b) | 843 | 670 |
| Net financial income/(expenses) excluding Financial Services (a) - (b) | (776) | (615) |
Interest earned and other fi nancial income may be analyzed as follows:
| ($ million) | 2014 | 2013 |
|---|---|---|
| Interest income from banks | 18 | 15 |
| Other interest income and financial income | 49 | 40 |
| Total Interest income and other financial income | 67 | 55 |
Interest cost and other fi nancial expenses may be analyzed as follows:
| ($ million) | 2014 | 2013 |
|---|---|---|
| Interest expenses on bonds | 458 | 494 |
| Bank interest expenses | 326 | 225 |
| Interest expenses on trade payables | 1 | 1 |
| Commission expenses | 16 | 17 |
| Other interest cost and other financial expenses | 468 | 449 |
| Total Interest cost and other financial expenses | 1,269 | 1,186 |
Interest cost and other fi nancial expenses includes in 2014 a pre-tax charge of $71 million due to the re-measurement of Venezuelan assets denominated in bolivares following the changes in Venezuela’s exchange rate mechanism.
Other interest cost and other fi nancial expenses include, amongst other things, interest cost on asset-backed fi nancing.
