5 – Other operating income and expenses
|
Other operating income (million €) | |||
|---|---|---|---|
|
|
|
1st Quarter | |
|
|
|
2015 |
2014 |
|
Income on the reversal of provisions |
|
2 |
21 |
|
Revenue from miscellaneous revenue-generating activities |
|
41 |
34 |
|
Income from foreign currency and hedging transactions |
|
140 |
134 |
|
Income from the translation of financial statements in foreign currencies |
|
104 |
6 |
|
Gains on the disposal of fixed assets and divestitures |
|
60 |
137 |
|
Income on the reversal of valuation allowances for business-related receivables |
|
11 |
8 |
|
Miscellaneous income |
|
87 |
60 |
|
Other operating income |
|
445 |
400 |
|
Other operating expenses (million €) | |||
|---|---|---|---|
|
|
|
1st Quarter | |
|
|
|
2015 |
2014 |
|
Expenses from the LTI program as well as other personnel obligations |
|
286 |
68 |
|
Restructuring measures |
|
19 |
10 |
|
Environmental protection and safety measures, costs of demolition and removal, and project expenses related to capital expenditures that are not subject to mandatory capitalization |
|
96 |
60 |
|
Amortization, depreciation and impairments of intangible assets and property, plant and equipment |
|
19 |
2 |
|
Costs from miscellaneous revenue-generating activities |
|
41 |
28 |
|
Expenses from foreign currency and hedging transactions |
|
230 |
144 |
|
Losses from the translation of financial statements in foreign currencies |
|
70 |
47 |
|
Losses from the disposal of fixed assets and divestitures |
|
5 |
5 |
|
Oil and gas exploration expenses |
|
49 |
24 |
|
Expenses from the addition of valuation allowances for business-related receivables |
|
19 |
15 |
|
Expenses from the use of inventories measured at market value and the derecognition of obsolete inventory |
|
44 |
34 |
|
Miscellaneous expenses |
|
240 |
136 |
|
Other operating expenses |
|
1,118 |
573 |
The result of foreign currency and hedging transactions declined quarter-on-quarter from minus €10 million to minus €90 million. This was predominantly attributable to lower income from commodity derivatives as well as the negative market value development of hedging transactions for the Russian ruble and the U.S. dollar.
The increase in the result from the translation of financial statements in foreign currencies from minus €41 million to plus €34 million was mainly based on higher income arising from the translation of subsidiaries outside of the eurozone that use the euro as their functional currency.
The decline in gains from the disposal of fixed assets and divestitures in the first quarter of 2015 came from the previous first quarter’s disposal gains in connection with the sale to the Hungarian MOL Group of shares in non-BASF-operated oil and gas fields in the British North sea.
Expenses from the long-term incentive (LTI) program rose considerably quarter-on-quarter. This was due to the sharp increase in the value of BASF shares in the first quarter of 2015.
The rise in other expenses was mostly the result of the recognition of a liability in the first quarter of 2015 for the anniversary bonus to be paid to BASF employees on the occasion of the company’s 150th birthday.