5 – Other operating income and expenses
Other operating income (million €) |
|||||
|---|---|---|---|---|---|
|
|
3rd Quarter |
January – September |
||
|
|
2015 |
2014 |
2015 |
2014 |
Income from the reversal of provisions |
|
23 |
22 |
52 |
50 |
Revenue from miscellaneous revenue-generating activities |
|
34 |
38 |
119 |
119 |
Income from foreign currency and hedging transactions |
|
190 |
21 |
303 |
146 |
Income from the translation of financial statements in foreign currencies |
|
4 |
36 |
89 |
60 |
Gains on the disposal of fixed assets and divestitures |
|
398 |
7 |
540 |
188 |
Income from the reversal of valuation allowances for business-related receivables |
|
17 |
11 |
38 |
32 |
Miscellaneous income |
|
229 |
153 |
511 |
369 |
Other operating income |
|
895 |
288 |
1,652 |
964 |
Other operating expenses (million €) |
|||||
|---|---|---|---|---|---|
|
|
3rd Quarter |
January – September |
||
|
|
2015 |
2014 |
2015 |
2014 |
Expenses from the LTI program as well as other personnel obligations |
|
(34) |
(115) |
89 |
27 |
Restructuring measures |
|
52 |
13 |
105 |
35 |
Environmental protection and safety measures, costs of demolition and removal, and project expenses related to capital expenditures that are not subject to mandatory capitalization |
|
97 |
97 |
284 |
242 |
Amortization, depreciation and impairments of intangible assets and property, plant and equipment |
|
86 |
6 |
162 |
63 |
Costs from miscellaneous revenue-generating activities |
|
28 |
31 |
113 |
98 |
Expenses from foreign currency and hedging transactions |
|
307 |
52 |
569 |
288 |
Losses from the translation of financial statements in foreign currencies |
|
(3) |
17 |
87 |
92 |
Losses from the disposal of fixed assets and divestitures |
|
16 |
6 |
33 |
15 |
Oil and gas exploration expenses |
|
32 |
57 |
112 |
104 |
Expenses from the addition of valuation allowances for business-related receivables |
|
25 |
19 |
71 |
53 |
Expenses from the use of inventories measured at market value and the derecognition of obsolete inventory |
|
58 |
45 |
168 |
115 |
Miscellaneous expenses |
|
180 |
136 |
595 |
398 |
Other operating expenses |
|
844 |
364 |
2,388 |
1,530 |
In the third quarter of 2015, the balance from hedging transactions declined by €42 million compared with one year earlier, from €3 million to minus €39 million; the period from January to September 2015 saw a year-on-year decline of €50 million, from minus €23 million to minus €73 million. This development was largely the result of oil swaps used by WINGAS GmbH, based in Kassel, Germany, to exchange variable prices for fixed prices in order to hedge trading margins.
The balance from foreign currency transactions decreased by €44 million compared with the previous third quarter, from minus €34 million to minus €78 million; in the period from January to September, it declined by €74 million year-on-year, from minus €119 million in 2014 to minus €193 million in 2015. This was primarily attributable to the depreciation of various emerging-market currencies.
The balance from the translation of financial statements in foreign currencies decreased by €12 million year-on-year, from €19 million to €7 million. At the same time, the balance from the translation of financial statements in foreign currencies rose by €34 million in the period from January to September, from minus €32 million in 2014 to plus €2 million in 2015. This was largely due to translation effects for subsidiaries outside of the eurozone that use the euro as their functional currency.
Gains on the disposal of fixed assets and divestitures in the third quarter of 2015 mainly pertained to the asset swap with Gazprom. The period from January to September 2015 included gains from the sale of the global textile chemicals business to Archroma.
Miscellaneous income rose in comparison with the same period of the previous year due to insurance compensation payments received for a plant outage at the Ellba C.V. joint operation in Moerdijk, Netherlands. Furthermore, higher income arose from the Argentinian government’s price compensation for gas producers introduced in connection with the New Gas Price Scheme (NGPS) due to lower, in some cases locally regulated, gas prices.
Expenses from the valuation of long-term incentive (LTI) options declined in the third quarter of 2015 owing to the adjustment of provisions for the LTI program in both years. In the period from January to September 2015, expenses from the valuation of LTI options rose; the corresponding period of 2014 had included income from the reversal of LTI provisions.
The rise in amortization, depreciation and impairments of intangible assets and property, plant and equipment stems particularly from the impairment of a project for developing a gas field in Norway in the Oil & Gas segment.
Miscellaneous expenses rose in the period from January to September 2015. This was mainly the result of around €100 million in expenses for the anniversary bonus to employees on the occasion of BASF’s 150th anniversary, as well as expenses arising from a plant outage at the Ellba C.V. joint operation in Moerdijk, Netherlands.