5 – Other operating income and expenses
|
|
1st Half |
|
|---|---|---|---|
|
|
2017 |
2016 |
Income from the adjustment and release of provisions recognized in other operating expenses |
|
26 |
14 |
Revenue from miscellaneous activities |
|
92 |
83 |
Gains from foreign currency and hedging transactions as well as the valuation of LTI options |
|
205 |
170 |
Gains from the translation of financial statements in foreign currencies |
|
14 |
48 |
Gains on divestitures and the disposal of fixed assets |
|
42 |
185 |
Income on the reversal of valuation allowances for business-related receivables |
|
22 |
24 |
Other |
|
507 |
224 |
Other operating income |
|
908 |
748 |
|
|
1st Half |
|
|---|---|---|---|
|
|
2017 |
2016 |
Restructuring measures |
|
163 |
143 |
Environmental protection and safety measures, costs of demolition and removal, and project costs not subject to mandatory capitalization |
|
195 |
207 |
Amortization, depreciation and impairments of intangible assets and property, plant and equipment |
|
128 |
130 |
Costs from miscellaneous activities |
|
89 |
67 |
Losses from foreign currency and hedging transactions as well as from the valuation of LTI options |
|
134 |
174 |
Losses from the translation of financial statements in foreign currencies |
|
27 |
18 |
Losses from the disposal of fixed assets and divestitures |
|
32 |
8 |
Oil and gas exploration expenses |
|
24 |
60 |
Expenses from the addition of valuation allowances for business-related receivables |
|
32 |
48 |
Expenses from the use of inventories measured at market value and the derecognition of obsolete inventory |
|
86 |
72 |
Other |
|
371 |
412 |
Other operating expenses |
|
1,281 |
1,339 |
The net result from foreign currency and hedging transactions and from the valuation of long-term incentive (LTI) options improved by €75 million, from minus €4 million in the first half of 2016 to plus €71 million in the first half of 2017. This was mainly the result of income from the release of LTI provisions, which were partly offset by negative currency effects for derivatives.
The decline in gains on divestitures and the disposal of fixed assets was largely attributable to the previous year’s disposal gains on the sale of the polyolefin catalysts business to W. R. Grace & Co., Columbia, Maryland. Income in the first half of 2016 had also resulted from the sale of BASF’s OLED intellectual property assets to UDC Ireland Limited, Dublin, Ireland.
Other income rose compared with the first half of the previous year, predominantly through the insurance compensation received for the business interruption caused by the fire at the North Harbor in Ludwigshafen, Germany. Write-ups on property, plant and equipment in the Functional Materials & Solutions and Oil & Gas segments also led to an increase. By contrast, higher natural gas prices led to lower income from the Argentinian government’s price compensation to gas producers, which was introduced in connection with the New Gas Price Scheme (NGPS) in response to lower, partly locally regulated gas prices.