8 – Other Operating Expenses

Expenses from restructuring and integration measures in 2018 were mainly expenses in the amount of €99 million for the integration of significant parts of Bayer’s seed and non-selective herbicide business as well as its vegetable seed business, which were acquired in August 2018. These expenses totaled €10 million in the previous year. In both years, expenses also arose in connection with the preparation of the acquisition of Solvay’s global polyamide business and the acquisition of global surface technology provider, Chemetall, in 2016.

Restructuring expenses resulted from site closures in North America in the amount of €13 million and from outsourcing computer centers in the amount of €11 million in 2018. In the previous year, expenses of €15 million were incurred in the Construction Chemicals division for restructuring in Europe, and €27 million for the outsourcing of computer centers. Further expenses in the amount of €20 million were incurred for restructuring measures in the Care Chemicals division in 2018 and €12 million in the previous year. Additionally, expenses were recognized in the amount of €17 million in connection with global restructuring measures in the Coatings division in 2018. Expenses were recognized in the Catalysts division in the amount of €16 million due largely to the restructuring of the global emissions catalysts business and the restructuring of the licensed battery materials business.

Expenses arose from environmental protection and safety measures, costs of demolition and removal, and project costs not subject to mandatory capitalization pursuant to IFRS. Expenses for demolition, removal and project planning totaled €245 million in 2018 and €252 million in 2017. In both years, these mainly related to the Ludwigshafen site. Further expenses of €55 million in 2018 and €54 million in 2017 arose from the addition to environmental provisions. In both years, these concerned several discontinued sites in North America.

Amortization, depreciation and impairments of noncurrent assets amounted to €72 million in 2018. The impairments resulted primarily from discontinued investment projects. Impairments last year were related primarily to the Chemicals, Functional Materials & Solutions and Performance Products segments.

Costs from miscellaneous revenue-generating activities relate to the items presented in other operating income.

Expenses from foreign currency and hedging transactions as well as from the measurement of LTI options related to foreign currency translation 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, the increase in currency translation losses was mainly due to the devaluation of the currencies in Argentina and Brazil.

Losses from divestitures and the disposal of noncurrent assets totaling €26 million in 2018 were related to the planned merger of the paper and water chemicals business with Solenis. Losses from portfolio measures in North America totaled €70 million last year. Further expenses of €19 million were incurred in 2017 in connection with the divestiture of the global industrial coatings business to the AkzoNobel Group in December 2016.

In both years, expenses under Other included expenses for litigation, for REACH, for Group management, for Corporate Citizenship, for the provision of services, and for activities related to the BASF 4.0 project. Expenses in the amount of €79 million were recognized for a product liability case in the Chemicals segment in 2017.