11 – Financial Result (XLSX:) XLS Financial result (Million €) 2020 2019 Interest income from cash and cash equivalents 146 168 Interest and dividend income from securities and loans 18 15 Interest income 164 183 Interest expenses –537 –648 Interest result –373 –465 Reversals of write-downs on / income from securities and loansa 22 26 Income from the capitalization of borrowing costs 30 35 Interest income on income taxesa 35 4 Miscellaneous financial income 31 16 Other financial income 118 81 Write-downs on / losses from securities and loans –56 –8 Net interest expense from underfunded pension plans and similar obligations –108 –155 Net interest expense from other long-term personnel obligations –2 –5 Unwinding the discount on other noncurrent liabilities –11 –11 Interest expenses on income taxesa –20 –25 Miscellaneous financial expenses –10 –117 Other financial expenses –207 –321 Other financial result –89 –240 Financial result –462 –705 a Reversals of write-downs on / income from securities and loans, interest income on income taxes and interest expenses on income taxes were reported as miscellaneous financial expenses in the previous year. The interest result improved by €92 million year on year, to –€373 million, as a result of lower interest expenses. The decrease in interest expenses was mainly due to lower interest rates on financial debt, particularly commercial paper. The rise in write-downs on / losses from securities and loans was primarily due to higher impairments on loans to nonconsolidated Group companies. The net interest expense from underfunded pension plans and similar obligations declined year on year as a result of the lower interest rate used to determine expenses for pension benefits compared with the previous year. The decline in other financial expenses was primarily due to lower net expenses associated with the translation of loans, bonds and commercial paper and the valuation of the corresponding hedging instruments against interest and currency risks. back next