5 – Other operating income and expenses

Other operating income (Million €)

 

 

H1

 

 

2019

2018

Income from the adjustment and release of provisions recognized in other operating expenses

 

22

26

Revenue from miscellaneous activities

 

86

79

Income from foreign currency and hedging transactions as well as from the measurement of LTI options

 

26

250

Income from the translation of financial statements in foreign currencies

 

4

5

Gains on divestitures and the disposal of noncurrent assets

 

359

40

Income from the reversal of valuation allowances for business-related receivables

 

12

26

Other

 

201

772

Other operating income

 

710

1,198

Other operating expenses (Million €)

 

 

H1

 

 

2019

2018

Restructuring and integration measures

 

423

173

Environmental protection and safety measures, costs of demolition and removal, and project costs not subject to mandatory capitalization

 

139

167

Amortization, depreciation and impairments of noncurrent assets

 

272

27

Costs from miscellaneous revenue-generating activities

 

70

73

Expenses from foreign-currency and hedging transactions as well as from the measurement of LTI options

 

119

452

Losses from the translation of financial statements in foreign currencies

 

9

22

Losses from divestitures and the disposal of noncurrent assets

 

5

10

Expenses from the addition of valuation allowances for business-related receivables

 

38

33

Expenses for derecognition of obsolete inventory

 

93

91

Other

 

352

307

Other operating expenses

 

1,520

1,355

Income from foreign currency and hedging transactions and from the valuation of LTI options declined from €250 million in the first half of 2018 to €26 million in the first half of 2019. This was mainly the result of lower income from foreign currency transactions and from the release of LTI provisions.

The increase in gains on divestitures and the disposal of noncurrent assets in the first half of 2019 was primarily attributable to the merger of the paper and water chemicals business with Solenis and the sale of a development project for seed treatment. In the prior-year period, gains on divestitures related to the sale of the production site for styrene butadiene-based paper dispersions in Pischelsdorf, Austria.

Other income decreased to €201 million (H1 2018: €772 million), mainly as a result of lower positive measurement effects from current assets as well as lower insurance refunds.

In the first half of 2019, expenses arose from restructuring measures, primarily for the implementation of the new strategy and costs for the integration of the seed and non-selective herbicide businesses acquired from Bayer.

The increase in depreciation, amortization and impairments on noncurrent assets was due to the impairment of a natural gas-based investment on the U.S. Gulf Coast, which BASF is no longer pursuing, as well as the optimization of production sites within the Nutrition & Health division in Europe.

The decrease in expenses from foreign currency and hedging transactions was primarily attributable to lower measurement effects from current assets.