| 2012/05/22 | 17:08:06 | + 15 min |
| Price: 34.48 EUR | -0.05 % |
Notes
The actuarial measurement of pension provisions is performed applying the projected unit credit method in accordance with IAS 19. The following parameters have been applied in computing provisions for pensions:
For commitments for medical provision similar to pensions, the following annual cost increases were additionally assumed:
| ■ Canada: | 9 % | / starting from 2015: 5 % |
| ■ USA: | 7 % | / starting from 2012: 5 % |
| ■ Bahamas: | 4.5 % |
The weighted average interest rate for pensions and similar liabilities for the K+S Group amounts to 5.7 %.
The following parameters have been taken into account in computing provisions for mining obligations:
| ■ Trend in price increases: | 1.5 % | (2009: 1.5 %) |
| ■ Discount factor Europe: | 5.6 % | (2009: 5.6 %) |
| ■ Discount factor USA: | 5.8 % | (2009: –) |
| ■ Discount factor Canada: | 6.2 % | (2009: –) |
The weighted average discount factor for mining provisions for the K+S Group amounts to 5.6 %.
| Taxes on income | ||
|---|---|---|
| € million | Q1/10 | Q1/09 |
| Corporate income tax | 27.3 | 17.6 |
| Trade tax on income | 22.6 | 13.9 |
| Foreign income taxes | 26.0 | 10.1 |
| Deferred taxes | (15.7) | (4.5) |
| Taxes on income | 60.2 | 37.1 |
Non-cash deferred taxes result from tax loss carryforwards as well as other temporary tax-related measurement differences.
Material changes in individual balance sheet items
The balance sheet total as of 31 March 2010 increased by € 160.0 million compared with the 2009 annual financial statements. On the assets side, non-current assets increased by € 100.2 million, and current assets by € 59.8 million. The increase in non-current assets mainly results from a currency-related increase in intangible assets and property, plant and equipment. The increase in current assets is chiefly based on higher accounts receivable trade of € 198.3 million. In contrast, inventories declined by € 111.0 million against 31 December 2009.
On the equity and liabilities side, equity increased by € 285.3 million; this is attributable primarily to the positive net income for the period of the first quarter 2010. Debt fell by € 125.3 million; this is mainly attributable to the repayment of financial liabilities.
Material changes in equity
Equity is influenced by transactions and events whether recognised in profit or loss or not as well as by capital transactions with shareholders. Compared with the annual financial statements for 2009, retained profit and other reserves increased by € 285.1 million. The increase is mainly due to the positive net income for the period of the first quarter 2010 (after taxes and minority interests) of € 172.3 million. Furthermore, changes in equity not recognised in profit or loss had to be taken into consideration, resulting from foreign currency translation of subsidiaries in a functional foreign currency (mainly US dollar). Differences arising from currency translation are recorded in a separate currency translation reserve; this increased by € 121.6 million as of 31 March 2010 as a result of exchange rate fluctuations.
* Without cash invested with respectively received from affiliated companies.
Information concerning material events since the end of the interim reporting period
You will find such information on page 15 of our Subsequent Events section.
Contingent liabilities
There have been no significant changes in contingent liabilities in comparison with the annual financial statements 2009 and they can be classified as immaterial overall.
Related parties
Within the K+S Group, deliveries are made and services rendered on customary market terms. Transactions and open items between K+S Group companies are eliminated from the consolidated financial statements insofar as the companies are consolidated. In addition, business relations are maintained with non-consolidated subsidiaries as well as companies over which the K+S Group can exercise a significant influence (associated companies). Such relationships do not have a material influence on the consolidated financial statements of the K+S Group. In the case of the K+S Group, related persons are mainly the Board of Executive Directors and the Supervisory Board. The remuneration received by this group of persons is disclosed annually in the remuneration report. There were no other material transactions with related parties.
Auditor’s review
The interim financial statements and the interim management report were not reviewed by the auditor (Section 37w, Para. 5, Sent. 1 of the German Securities Trading Act). Summary by Quarter
