ANNUAL REPORT 2008/09 - Sonova

6. Other (expenses)/income, net
1,000 CHF 2008/09 2007/08
Other operating expenses (8,077)
Other operating income 159 25
Exchange diff erences (193) (1,143)
Total (34) (9,195)
In the fi nancial statements 2006/07, the Group assessed the acquisition of the GN ReSound Group to be
probable. Correspondingly, costs in the amount of CHF 19.1 million were recorded in the balance sheet as
prepaid expenses and equity. After the planned transaction had been prohibited by the German Federal
Cartel Offi ce (FCO) and after the “Oberlandes gericht Düsseldorf” had ruled that it does not have the power
to grant interim relief in merger prohi bition cases, the Group terminated the transaction to acquire the
GN ReSound Group as of August 15, 2007. As a consequence, previously capitalized costs were expensed in
the fi nancial period 2007/08. The eff ect on the income statement can be summarized as follows: costs in
the amount of CHF 26.9 million relating to the fi nancing of the transaction (predominantly planned capital
increase as well as fi nancing costs) were expensed and were included in “fi nancial expenses” (refer to
Note 7). Additional acquisition-related costs (due diligence costs, legal costs) in the amount of CHF 8.0 million
were expensed and were included in “other operating expenses”.
7. Financial (expenses)/income, net
1,000 CHF 2008/09 2007/08
Interest income 6,874 10,260
Other fi nancial income 1,296 1,072
Total fi nancial income 8,170 11,332
Mortgage interest (15) (16)
Other interest expenses (933) (2,820)
Other fi nancial expenses (7,406) (30,290)
Total fi nancial expenses (8,354) (33,126)
Total (184) (21,794)
Other interest expenses in the fi nancial year 2007/08 primarily consist of present value adjustments on
loans given to business partners.
Other fi nancial expenses include amongst others the diff erence between the originally recorded discounted
acquisition-related earn-out payments and their current present value. Other fi nancial expenses in
2007/08 mainly include the non-recurring cost items relating to the fi nancing (predominantly planned
capital increase as well as fi nancing costs) of the prohibited transaction to acquire the GN ReSound
Group in the amount of CHF 26.9 million (refer to Note 6).
78 CONSOLIDATED FINANCIAL STATEMENTS