8 – Other operating expenses

Expenses for restructuring and integration measures were primarily related to severance payments amounting to €83 million in 2017 and €190 million in 2016. Further expenses of €38 million concerned the Coatings division in connection with the purchase of the global surface technology provider Chemetall. In the Care Chemicals division, expenses were incurred for restructuring in the USA in the amount of €12 million and €15 million in the Construction Chemicals division for restructuring in Europe. Furthermore, expenses of €10 million concerned the Crop Protection division in relation to the acquisition of significant parts of the seed and non-selective herbicide businesses from Bayer AG, Leverkusen, Germany. Expenses of €27 million in 2017 and €39 million in 2016 arose from the outsourcing of the computer centers. In the previous year, expenses had primarily affected the Petrochemicals division in the amount of €37 million and the Dispersions & Pigments division in the amount of €25 million.

Expenses arose from environmental protection and safety measures, costs of demolition, removal and project costs that are not subject to mandatory capitalization according to IFRS. Expenses for demolition, removal and project planning totaled €279 million in 2017 and €375 million in 2016. These especially pertained to the Ludwigshafen site in both years. Further expenses of €54 million in 2017 and €61 million in 2016 arose from the addition to environmental provisions. In both years, these concerned several discontinued sites in North America. In the previous year, expenses were also incurred for landfills in Germany.

Amortization, depreciation and impairments of noncurrent assets arose from impairments in the Oil & Gas segment in the amount of €83 million in 2017. The Performance Products segment posted impairments of €23 million in 2017 and €6 million in 2016. Further impairments of €10 million concerned the Functional Materials & Solutions segment in 2017 and €124 million in 2016. The previous year had recorded €67 million in impairments in the Chemicals segment and €24 million in the Agricultural Solutions segment.

Costs from miscellaneous revenue-generating activities concerned the respective item 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 comparison with the previous year, lower expenses for the hedging of planned sales were posted due to the depreciation of the U.S. dollar relative to the euro as well as lower provisions for the Long-Term-Incentive program.

Losses from divestitures and the disposal of noncurrent assets of €70 million resulted largely from portfolio measures in North America in 2017. Further expenses of €19 million were incurred in connection with the divestiture of the global industrial coatings business to the AkzoNobel Group in December 2016. In the previous year, losses of €17 million had arisen from the reduction in disposal gains from the asset swap with Gazprom as part of the final purchase price allocation.

Expenses from the addition of valuation allowances for business-related receivables decreased by €25 million compared with the previous year. This was predominantly due to lower additions in the region South America, Africa, Middle East.

In both years, expenses under Other included expenses from attorneys’ fees for litigation cases as well as from REACH, the provision of services, and the implementation of further projects. Expenses of €79 million were also recognized for a product liability case in the Chemicals segment in 2017. Moreover, 2016 contained expenses of €27 million from the fire damage at the Ludwigshafen North Harbor, Germany.