Net Assets

Assets

• Decline in total assets due to impairments and divestiture of the construction chemicals business

Total assets amounted to €80,292 million as of December 31, 2020, significantly below the prior-year level (€86,950 million).

Noncurrent assets declined by €5,536 million to €50,424 million. All items except deferred tax assets contributed here. The main driver was the €2,145 million decrease in property, plant and equipment to €19,647 million, primarily due to the impairments recognized as a consequence of the coronavirus pandemic. Negative currency effects of €934 million also contributed to the decline. Additions to property, plant and equipment amounted to €4,075 million. This figure included additions of €559 million from the acquisition of the integrated polyamide business from Solvay. Depreciation amounted to €3,130 million. At €10,874 million, non-integral investments accounted for using the equity method were also considerably below the prior-year level (€13,123 million), mainly as a result of impairments and currency effects relating to the shareholding in Wintershall Dea. Integral investments accounted for using the equity method were on a level with the prior year, at €1,878 million.

Intangible assets declined by €1,380 million to €13,145 million. This was likewise primarily attributable to impairments, amortization and currency effects. Additions of €691 million, mainly in connection with the acquisition of the integrated polyamide business from Solvay, had an offsetting effect.

Other financial assets were slightly below the prior-year level, declining by €54 million to €582 million. Other receivables and miscellaneous assets decreased by €200 million compared with the previous year to €912 million. This was mainly due to the lower positive fair values of derivatives and the decline in loans and interest receivables.

Deferred tax assets rose by €499 million to €3,386 million, primarily as a result of higher pension provisions and the recognition of deferred tax assets for tax loss carryforwards.

Current assets declined by €1,122 million to €29,868 million. This was largely the result of the derecognition of the disposal group for the construction chemicals business (€2,831 million). We recorded a €1,213 million decrease in inventories to €10,010 million, mainly due to the reduction in inventories in all segments and currency effects. Marketable securities declined by €237 million to €207 million.

This was partially offset by the €1,903 million increase in cash and cash equivalents compared with the previous year. At €4,330 million, this safeguards the BASF Group’s liquidity in times of crisis.

Other receivables and miscellaneous assets rose by €3,790 million to €4,673 million, driven mainly by an increase in precious metal trading positions due to higher prices, as well as higher tax refund claims.

The €373 million increase in trade accounts receivable to €9,466 million was largely attributable to strong business developments in the fourth quarter.