5 – Other Operating Income and Expenses

Other operating income (Million €)

 

H1

 

2020

2019

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

6

24

Revenue from miscellaneous activities

114

86

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

119

25

Income from the translation of financial statements in foreign currencies

9

4

Gains on divestitures and the disposal of noncurrent assets

45

359

Reversals of impairment losses on noncurrent assets

2

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

12

10

Other

299

197

Other operating income

604

707

Other operating expenses (Million €)

 

H1

 

2020

2019

Restructuring and integration measures

223

429

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

136

131

Depreciation, amortization and impairments of noncurrent assets

130

272

Costs from miscellaneous revenue-generating activities

102

70

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

163

118

Losses from the translation of financial statements in foreign currencies

14

9

Losses from divestitures and the disposal of noncurrent assets

22

6

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

38

33

Expenses for derecognition of obsolete inventory

137

91

Other

407

333

Other operating expenses

1,372

1,492

Income from foreign currency and hedging transactions as well as from the measurement of LTI options rose from €25 million in the first half of 2019 to €119 million in the first half of 2020. This was mainly due to higher income from the release of provisions for the long-term incentive program (LTI program).

At €45 million, gains on divestitures and the disposal of noncurrent assets in the first half of 2020 were significantly below the figure for the prior-year period. The higher gains in the first half of 2019 resulted from the merger of the paper and water chemicals business with Solenis and the sale of a development project for seed treatment.

Other income increased to €299 million (H1 2019: €197 million), mainly as a result of higher gains from precious metal trading.

Restructuring expenses in connection with BASF’s excellence program in the first half of 2020 were lower than in the prior-year period. The expenses from the integration of Solvay’s global polyamide business as of January 31, 2020, were lower than the expenses from integration measures in the previous year, which related to the seed and non-selective herbicide businesses acquired from Bayer.

The decrease in depreciation, amortization and impairments of noncurrent assets was due among other factors to lower impairments. In the previous year, this included the impairment of a natural gas-based investment on the U.S. Gulf Coast.

Expenses from foreign currency and hedging transactions and from the measurement of LTI options rose, mainly as a result of higher losses from the measurement of LTI options.

The increase in other expenses was primarily attributable to expenses in connection with the COVID-19 pandemic, in particular BASF’s “Helping Hands” aid campaign.