K+S Gruppe - Notes II

K+S Quarterly Reports - Archive

Notes

Interest income, net
€ million	Q1/06	Q1/05
Interest income	1.3	1.6
Interest expense	(7.0)	(6.9)
of which interest expense for pension provisions	(2.3)	(2.3)
of which interest expense for provisions for mining obligations	(3.5)	(3.3)
Interest income, net	(5.7)	(5.3)

The actuarial valuation of pension provisions is performed using the projected unit credit method in accordance with IAS 19. The following parameters were applied in computing pension provisions:

Trend in salary increases:	1.5 %
Trend in pension increases:	1.5 %
Discount factor:	4.6 %

The following parameters were taken into account in computing a large portion of the provisions for mining obligations:

Trend in price increases:	1.5 %
Discount factor:	5.0 %

Income taxes
€ million	Q1/06	Q1/05
Corporation tax	8.0	4.0
Trade tax on income	12.9	9.6
Foreign income taxes	4.0	5.1
Deferred taxes	30.2	34.0
Income taxes	55.1	52.7

Noncash deferred taxes result from tax loss carryforwards as well as other temporary tax-related measurement differences, especially changes in the market value of our options.

Contingent liabilities

There have been no significant changes in contingent liabilities in relation to the annual financial statements for 2005 and they can be classified as immaterial overall.