Net Assets

Assets

 

 

December 31, 2018

December 31, 2017

 

 

Million €

%

Million €

%

1

As of January 1, 2018, receivables from bank acceptance drafts are no longer reported under trade accounts receivable, but under the item other receivables and miscellaneous assets. The 2017 figures have been restated accordingly. For more information, see Note 18 from page 235 onward.

Intangible assets

 

16,554

19.1

13,594

17.3

Property, plant and equipment

 

20,780

24.0

25,258

32.0

Investments accounted for using the equity method

 

2,203

2.5

4,715

6.0

Other financial assets

 

570

0.7

606

0.8

Deferred tax assets

 

2,342

2.7

2,118

2.7

Other receivables and miscellaneous assets

 

886

1.0

1,332

1.7

Noncurrent assets

 

43,335

50.0

47,623

60.5

 

 

 

 

 

 

Inventories

 

12,166

14.1

10,303

13.1

Accounts receivable, trade1

 

10,665

12.3

10,801

13.7

Other receivables and miscellaneous assets1

 

3,139

3.6

3,494

4.4

Marketable securities

 

344

0.4

52

0.1

Cash and cash equivalents

 

2,300

2.7

6,495

8.2

Assets of disposal groups

 

14,607

16.9

Current assets

 

43,221

50.0

31,145

39.5

Total assets

 

86,556

100.0

78,768

100.0

Assets

  • Acquisition-driven increase in total assets
  • Reclassification of material assets to current assets of disposal groups

Total assets amounted to €86,556 million as of December 31, 2018, around 10% higher than the prior-year figure. This increase was largely driven by the acquisition of significant businesses and assets from Bayer.

Noncurrent assets decreased by €4,288 million to €43,335 million. This is primarily attributable to the reclassification of noncurrent assets to the disposal groups, mainly for the oil and gas business and to a minor extent for the paper and water chemicals business.

More information on the above transactions and disposal groups:
Material Investments and Portfolio Measures
Note 2.4
Note 2.5

The €2,960 million increase in intangible assets was largely attributable to acquisition-related additions, which amounted to €5,540 million as of the year-end, including €1,261 million in goodwill. The main offsetting effects were reclassifications to the disposal groups and depreciation and amortization.2

Property, plant and equipment declined by around 18% to €20,780 million, mainly as a result of reclassifications totaling €6,651 million, primarily to the disposal groups. Depreciation and amortization2 amounted to €3,155 million, lower than investments (€3,615 million). Additions from acquisitions amounted to €1,425 million.

Investments accounted for using the equity method declined by €2,512 million to €2,203 million, largely due to the reclassification of oil and gas shareholdings to the disposal group.

At €570 million, other financial assets were down €36 million from the prior-year level. Deferred tax assets increased by €224 million to €2,342 million, primarily from higher provisions for pensions and similar obligations. Other receivables and miscellaneous assets declined by €446 million year on year to €886 million, mainly due to the reclassification of loan receivables to the disposal group for the oil and gas business.

Current assets rose by €12,076 million to €43,221 million. This was primarily attributable to reclassifications from noncurrent assets to the disposal groups. The assets of disposal groups totaled €14,607 million as of the year-end, of which €14,088 million was attributable to the discontinued oil and gas business.

Inventories increased by €1,863 million. Of this figure, €887 million resulted from the transaction with Bayer. By contrast, trade accounts receivable declined by €136 million and other receivables and miscellaneous assets by €355 million, mainly due to lower bank acceptance drafts in China and the reclassification to the disposal group for the discontinued oil and gas business. Marketable securities rose by €292 million to €344 million following an optimization of current cash deposits. By contrast, cash and cash equivalents decreased by €4,195 million to €2,300 million, largely as a result of the purchase price payment to Bayer.

2 Including impairments and reversals of impairments