8 – Other operating expenses

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Million €

2013

2012

Restructuring measures

316

198

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

369

214

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

248

377

Costs from miscellaneous revenue-generating activities

185

146

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

263

548

Losses from the translation of the financial statements in foreign currencies

108

53

Losses from the disposal of fixed assets and divestitures

49

45

Oil and gas exploration expenses

187

221

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

72

81

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

280

177

Other

493

593

Other operating expenses

2,570

2,653

In 2013, expenses for restructuring measures amounting to €149 million primarily related to severance payments. Further expenses for restructuring at several sites in the Construction Chemicals division amounted to €14 million in 2013 (2012: €37 million) and €18 million in the Dispersions & Pigments division in 2013. Costs arising from the integration of Becker Underwood amounted to €14 million in 2013. In 2012, €47 million related to expenses at the site in Grenzach, Germany, and €17 million at a site in France. Further restructuring at several sites in the Performance Chemicals division amounted to €24 million in 2012.

Expenses arose from environmental protection and safety measures, costs of 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 €239 million in 2013 and €168 million in 2012. These related in particular to the Ludwigshafen site in both years. Furthermore, additions of €32 million to environmental provisions in 2013 were related to the remediation of landfills, particularly in Germany, Switzerland and North America. In 2012, expenses of €24 million arose from the remediation of landfills at various sites in North America.

Amortization, depreciation and impairments of intangible assets and property, plant and equipment of €83 million resulted from the impairment of a plant in the Chemicals segment. Impairments on exploration licenses in the Oil & Gas segment amounted to €45 million. Furthermore, impairments included €15 million for assets at a site in the United Kingdom. Valuation allowances on a Norwegian oilfield development project arose in 2012 in the amount of €200 million. Further valuation allowances in the previous year were related to marketing and trademark rights in the Construction Chemicals division amounting to €71 million and for property, plant and equipment at several sites amounting to €13 million.

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. In addition, expenses of €104 million resulted from the long-term incentive program (LTI program) in 2013 (2012: €299 million). This was due to lower increase in the share price of 8.9% in 2013 in comparison with an increase of 32.0% in 2012.

Losses from the disposal of fixed assets and divestitures in 2013 in the amount of €14 million arose mainly from smaller divestitures in the Construction Chemicals division. In 2012, losses of €17 million arose from the sale of assets at several North American sites.

Expenses from the addition of valuation allowances for business-related receivables declined in comparison with the previous year by €9 million. This was due to lower additions in Brazil in comparison with the previous year.

Expenses from the use of inventory measured at market value and the derecognition of obsolete inventory were attributable to the use of inventory measured at market value taken over from the Pronova BioPharma ASA and Becker Underwood acquisitions amounting to €63 million.

Other expenses arose from the implementation of projects, REACH and the provision of services. Additionally, expenses arose from additions to provisions for various matters as well as a number of other items. In 2012, other expenses also included the cost of a settlement reached in a legal dispute in the United States.