9. Other Operating Income and Expenses

Income from the adjustment and release of provisions recognized in other operating expenses decreased in 2024 compared to the previous year and mainly affected provisions for environmental protection measures. Provisions were reversed or adjusted if, based on the circumstances on the balance sheet date, utilization was no longer expected, or expected to a lesser extent.

In both years, revenue from miscellaneous other activities primarily included income from rentals, catering operations, cultural events and logistics services. The decrease in revenue over the previous year was largely offset by lower production costs.

In both years, income from hedging transactions and LTI programs mainly included income from the valuation of virtual and physical power purchase agreements. A decline in income from hedging transactions for the procurement of natural gas was attributable to effects from the market valuation of the derivatives used for hedging.

Income from foreign currency transactions and the translation of financial statements in foreign currencies related to the translation of receivables and liabilities in foreign currencies and included income from the translation of companies’ financial statements whose local currency is different from the functional currency.

Gains on divestitures and the disposal of noncurrent assets decreased compared with the previous year. In 2023, this item primarily consisted of gains from the sale of an office building in Europe.

Income from the reversal of value adjustments on operational receivables in the previous year resulted from the reversal of value adjustments in connection with a traffic tax in Brazil. Since the fiscal year 2024, income and expenses from the reversal of or addition to allowances on business-related receivables are reported on a net basis.

Income from refunds and government grants was mainly attributable to subsidies for business activities in the battery materials sector. It also included grants for regional business development in China and other funding measures in various countries.

Other income included income from the sale of precious metals and a number of other items in 2024. In 2023, it included income from the sale of CO₂ certificates amounting to €185 million.

In 2024, expenses from restructuring and integration measures related mainly to measures in connection with the cost savings program focusing on Europe and adjustments to production structures at the Verbund site in Ludwigshafen, Germany. In both years, additional expenses were largely attributable to restructuring measures to improve competitiveness in various operating divisions and site closures in Europe and North America. In 2023, expenses also resulted from the carve-out of the Environmental Catalyst and Metal Solutions unit within the Catalysts division. In the previous year, expenses were also incurred for the integration of the battery materials business acquired in 2021.

Environmental protection and safety measures, costs of demolition and removal, and project costs not subject to mandatory capitalization were expensed if requirements for capitalization pursuant to IFRS were not met. Expenses for project costs not subject to mandatory capitalization amounted to €390 million in 2024 (previous year: €381 million), and in both years were attributable in particular to the construction of the new Verbund site in China and the Ludwigshafen site. In addition, expenses of €116 million in 2024 (previous year: €123 million) were incurred for additions to environmental provisions. In 2024, these mainly related to the Ludwigshafen site, whereas in the previous year they were primarily due to several discontinued sites in North America.

Depreciation, amortization and impairments of noncurrent assets and of the disposal groups in 2024 included impairments in the amount of €772 million. These comprised impairments on property, plant and equipment in the Surface Technologies segment, especially in the battery materials business, on plants property and equipment in the Chemicals segment and on property, plant and equipment and intangible assets in the Nutrition & Care segment. In 2023, impairments amounted to €1,149 million and mainly related to impairments on property, plant and equipment in the Surface Technologies segment, especially in the battery materials business, on plants property and equipment in the Agricultural Solutions segment and on property, plant and equipment and intangible assets in the Materials segment (for more information, see Note 14).

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

Expenses from hedging transactions and LTI programs included expenses of €89 million in 2024 (previous year: €83 million) from hedging transactions, primarily attributable in both years to expenses for option premiums used to hedge natural gas purchases. Furthermore, there were higher expenses in 2024 from the valuation of virtual power purchase agreements, while expenses for other hedging transactions decreased. LTI programs led to expenses in the amount of €1 million in 2024 (previous year: €35 million).

In both years, losses from divestitures and the disposal of noncurrent assets included costs in connection with divestment projects and purchase price adjustments for completed divestments. In the previous year, losses also arose in connection with the sale of the De Meern site in the Netherlands.

Expenses from the addition of valuation allowances on business-related receivables in 2024 included in particular valuation allowances on receivables in the Agricultural Solutions division in South America, Africa, Middle East. Since the 2024 financial year, gains and expenses from the reversal of or additions to value adjustments on operational receivables have been reported on a net basis.

Other expenses included expenses in 2024, primarily as a result of the out-of-court settlement in connection with the AFFF multidistrict litigation in the United States (for more information, see Note 23). Both years also include further expenses for litigation, for REACH, for the provision of services and other services and for warranties, as well as other expenses for social commitment.