5 – Other operating income and expenses
|
|
|
1st Quarter | |
|---|---|---|---|
|
|
|
2016 |
2015 |
|
Income from the adjustment and release of provisions recognized in other operating expenses |
|
53 |
2 |
|
Revenue from miscellaneous revenue-generating activities |
|
40 |
41 |
|
Income from foreign currency and hedging transactions |
|
145 |
140 |
|
Income from the translation of financial statements in foreign currencies |
|
51 |
104 |
|
Gains on the disposal of fixed assets and divestitures |
|
14 |
60 |
|
Income on the reversal of valuation allowances for business-related receivables |
|
11 |
11 |
|
Miscellaneous other income |
|
114 |
87 |
|
Other operating income |
|
428 |
445 |
|
|
|
1st Quarter | |
|---|---|---|---|
|
|
|
2016 |
2015 |
|
Expenses from the LTI program as well as other personnel obligations |
|
17 |
286 |
|
Restructuring measures |
|
44 |
19 |
|
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 |
96 |
|
Amortization, depreciation and impairments of intangible assets and property, plant and equipment |
|
13 |
19 |
|
Costs from miscellaneous revenue-generating activities |
|
33 |
41 |
|
Expenses from foreign currency and hedging transactions |
|
101 |
230 |
|
Losses from the translation of financial statements in foreign currencies |
|
16 |
70 |
|
Losses from the disposal of fixed assets and divestitures |
|
5 |
5 |
|
Oil and gas exploration expenses |
|
33 |
49 |
|
Expenses from the addition of valuation allowances for business-related receivables |
|
23 |
19 |
|
Expenses from the use of inventories measured at market value and the derecognition of obsolete inventory |
|
31 |
44 |
|
Miscellaneous other expenses |
|
254 |
240 |
|
Other operating expenses |
|
666 |
1,118 |
In the first quarter of 2016, share price development led to income of €48 million from the release of provisions for the long-term incentive (LTI) program. The same period of the previous year had, by contrast, included other operating expenses of €282 million from additions to provisions for the LTI program.
The improvement in the balance from hedging transactions from minus €3 million in the first quarter of 2015 to €104 million in the first quarter of 2016 resulted primarily from the valuation of forward contracts for emissions certificates.
Countering this were miscellaneous other expenses from negative effects in connection with inventory valuation for emissions certificates. In the previous year, miscellaneous other expenses had contained the bonus paid to employees on the occasion of BASF’s 150th anniversary.
The balance of foreign currency transactions rose year-on-year from minus €87 million to minus €60 million. This was largely attributable to the negative effects from the appreciation of the U.S. dollar in the first quarter of 2015.
The level of gains on the disposal of fixed assets and divestitures fell because the previous first quarter had included disposal gains from the sale of the white expandable polystyrene (EPS) business to Alpek S.A.B. de C.V., based in Monterrey, Mexico.