8 – Other operating expenses

Million €

 

2014

2013

Restructuring measures

 

176

316

Environmental protection and safety measures, costs of demolition and removal, and planning expenses related to capital expenditures that are not subject to mandatory capitalization

 

330

369

Amortization, depreciation and impairments of intangible assets and property, plant and equipment

 

370

248

Costs from miscellaneous revenue-generating activities

 

160

185

Expenses from foreign-currency and hedging transactions as well as from the measurement of LTI options

 

439

263

Losses from the translation of the financial statements in foreign currencies

 

88

108

Losses from the disposal of fixed assets and divestitures

 

28

49

Oil and gas exploration expenses

 

132

194

Expenses from the addition of valuation allowances for business-related receivables

 

87

72

Expenses from the use of inventories measured at market value and the derecognition of obsolete inventory

 

225

280

Other

 

594

492

Other operating expenses

 

2,629

2,576

Expenses for restructuring measures were primarily related to severance payments amounting to €40 million in 2014 and €149 million in 2013. Further expenses for restructuring measures amounting to €9 million concerned several sites in the Care Chemicals division. In the Dispersions & Pigments division, expenses arose in the amount of €12 million in 2014 and €18 million in 2013. In 2013, there had also been expenses for restructuring measures at several sites in the Construction Chemicals division amounting to €14 million.

Expenses arose from environmental protection and safety measures, demolition and removal, and planning expenses related to capital expenditures that are not subject to mandatory capitalization according to IFRS. Expenses for demolition, removal and project planning totaled €286 million in 2014 and €314 million in 2013. These especially pertained to the Ludwigshafen site in both years. Further expenses of €19 million were due to additional environmental provisions related to several discontinued sites in North America. In 2013, there were additions of €32 million to environmental provisions related to the remediation of landfills, particularly in Germany, Switzerland and North America.

Amortization, depreciation and impairments of intangible assets and property, plant and equipment resulted from impairments in the Oil & Gas segment amounting to €230 million in 2014 and €45 million in 2013. Further impairments of €42 million concerned the Functional Materials & Solutions segment. Impairments in the Chemicals segment amounted to €33 million in 2014 and €83 million in 2013.

Furthermore, there had been an impairment of €15 million on property, plant and equipment at a site in the United Kingdom in 2013.

Costs from miscellaneous revenue-generating activities concerned the respective items presented in other operating income.

Expenses from foreign-currency and hedging transactions as well as from the measurement of LTI options were related to foreign currency translations of receivables and payables as well as changes in the fair value of currency derivatives and other hedging transactions. Compared with the previous year, higher expenses particularly arose from swaps for crude oil to hedge price risks from purchasing and selling contracts for natural gas. In addition, 2013 had included expenses of €104 million from the long-term incentive (LTI) program. This was due to the increased BASF share price at the end of the previous year. In 2014, an expense of €25 million was recognized for newly issued LTI options at the end of the year.

Losses from the disposal of fixed assets and divestitures in 2014 arose predominantly from impairments in the amount of €9 million in connection with the disposal of the Brattvåg site in Norway in the Nutrition & Health division. In 2013, there had mostly been losses from divestitures in the Construction Chemicals division in the amount of €14 million.

Expenses from the addition of valuation allowances for business-related receivables increased in comparison with the previous year by €14 million. This was mainly due to higher additions in Brazil compared with the previous year.

Expenses from the use of inventory measured at market value and the derecognition of obsolete inventory had been attributable in the previous year to the use of €63 million in inventory measured at fair value in the acquisition of Pronova BioPharma ASA and Becker Underwood.

Other expenses concerned strike-related expenses in connection with the construction of the acrylic acid production complex in Camaçari, Brazil in the amount of €16 million. Further expenses arose from the implementation of further projects, from REACH, and from the provision of services.