13. Financial Result

The financial result for 2015 was minus €1,005 million (2014: minus €981 million), comprising an equity-method loss of €9 million (2014: €13 million), financial expenses of €1,367 million (2014: €1,311 million) and financial income of €371 million (2014: €343 million). Details of the components of the financial result are provided below.

13.1 Income (loss) from investments in affiliated companies

The net income (loss) from investments in affiliated companies was comprised as follows:

Income (Loss) from Investments in Affiliated Companies

 

 

2014

 

2015

 

 

€ million

 

€ million

Net loss from investments accounted for using the equity method (equity-method loss)

 

(13)

 

(9)

Expenses

 

 

 

 

Impairment losses on investments in affiliated companies

 

 

(1)

Gains

 

 

 

 

Impairment loss reversals on investments in affiliated companies

 

2

 

Gains / losses from investments in affiliated companies and from profit and loss transfer agreements (net)

 

1

 

3

Gains from the sale of investments in affiliated companies

 

 

31

Total

 

(10)

 

24

The main components of the income from investments in affiliated companies were a €29 million gain from the sale of the interest in Kythera Biopharmaceuticals, Inc., United States, and the €23 million (2014: €18 million) equity-method loss from the associate PO JV, LP, United States. The €14 million (2014: €5 million) aggregate of the equity-method gains and losses of the remaining joint ventures and associates accounted for using the equity method included a €10 million gain from the sale of the interest in Bayer IMSA, S.A. de C.V., Mexico.

Further details of the companies accounted for using the equity method are given in Note [19].

13.2 Net interest expense

The net interest expense was comprised as follows:

Net Interest Expense

 

 

2014

 

2015

 

 

€ million

 

€ million

Expenses

 

 

 

 

Interest and similar expenses

 

(618)

 

(752)

Interest expenses for derivatives (held for trading)

 

(75)

 

(25)

Income

 

 

 

 

Interest and similar income

 

283

 

297

Interest income from derivatives (held for trading)

 

54

 

25

Total

 

(356)

 

(455)

Interest and similar expenses included interest expense of €49 million (2014: €55 million) relating to nonfinancial liabilities. Interest and similar income included interest income of €133 million (2014: €48 million) from nonfinancial assets. Interest income of €109 million resulted from claims against Dow AgroSciences llc, United States, for damages and royalty payments resulting from the infringement of Bayer’s rights to the Liberty Link™ weed control system.

Settlements were reached in August 2015 in the court proceedings initiated by former minority stockholders of Bayer Pharma AG (formerly Bayer Schering Pharma AG). Further details are given in Note [6.2]. The interest expense was reduced in 2015 by an aggregate of €24 million in connection with the additional payment agreed upon (2014: increased by €10 million).

The change in the liability for redeemable noncontrolling interest is reflected in interest income or expense. In 2015 a €5 million (2014: €46 million) decrease in this liability was recognized as interest income.

13.3 Other financial income and expenses

Other financial income and expenses were comprised as follows:

Other Financial Income and Expenses

 

 

2014

 

2015

 

 

€ million

 

€ million

Expenses

 

 

 

 

Interest portion of interest-bearing provisions

 

(322)

 

(287)

Exchange loss

 

(248)

 

(254)

Miscellaneous financial expenses

 

(48)

 

(48)

Income

 

 

 

 

Miscellaneous financial income

 

3

 

15

Total

 

(615)

 

(574)

The interest portion of noncurrent provisions comprised €276 million (2014: €275 million) in interest expense for pension and other post-employment benefit provisions plus €11 million (2014: €47 million) in effects of interest expense and interest-rate fluctuations for other provisions and corresponding overfunding. The interest expense for pension and other post-employment benefit provisions included €712 million (2014: €828 million) for the unwinding of discount on the present value of the defined benefit obligation and €436 million (2014: €553 million) in interest income from plan assets.