19. Other Comprehensive Income
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
Accounting policies
The expenses and income shown in other comprehensive income are divided into two categories: items that will be recognized in the income statement in the future (known as “recycling”) and items that will not be reclassified to the income statement in the future. The first category includes gains and losses from currency translation, the measurement of certain securities classified as debt instruments, and changes in the fair value of derivatives held to hedge future cash flows. Items that will not be reclassified to the income statement at a future date include effects from the remeasurement of defined benefit plans.
Remeasurement of defined benefit plans
In 2025, the performance of the defined benefit plans resulted in an increase in other comprehensive income of €563 million (including taxes of €316 million), of which €22 million related to investments accounted for using the equity method. In addition, €15 million was reclassified to retained earnings.
In 2024, changes in the value of defined benefit pension plans resulted in an increase in other comprehensive income in the amount of €1,477 million (including taxes of €273 million), of which €23 million was attributable to investments accounted for using the equity method. In addition, €90 million was reclassified to retained earnings in connection with the sale of the E&P business of Wintershall Dea GmbH, Kassel, Germany, which is accounted for using the equity method, to Harbour Energy plc, London, United Kingdom. Furthermore, the change in BASF’s share of the assets of the BASF Pensionskasse VVaG, a multi-employer plan, resulted in a decrease of €98 million in other comprehensive income.
Currency translation
Differences resulting from currency translation reduced equity by a total of €2,442 million in 2025, of which €456 million was related to shareholdings accounted for using the equity method. In addition, accumulated currency losses of €33 million relating to the divestiture of two fully consolidated companies and one equity-accounted company were reclassified to the income statement.
In the previous year, equity was increased by €782 million, of which €215 million related to investments accounted for using the equity method.
In 2025, the differences resulted mainly from the depreciation of the U.S. dollar relative to the euro. In 2024, the differences were mainly due to the appreciation of the U.S. dollar relative to the euro.
Measurement of securities at fair value
Measurement of securities at fair value resulted in an increase in other comprehensive income of €178 million in 2025 (previous year: decrease of €1 million). The increase in 2025 resulted primarily from the reclassification of €180 million in impairments on equity instruments recognized in equity at Wintershall Dea GmbH into retained earnings. The decrease of €1 million in 2024 resulted from the valuation of debt instruments at fair value.
Cash flow hedges
Changes in the fair value of derivatives designated in hedging relationships (cash flow hedges) adjusted for deferred taxes in the amount of €24 million reduced equity by a total of €129 million, including €147 million for hedging of future cash flows at shareholdings accounted for using the equity method. In addition, realized losses totaling €343 million from the hedging of a foreign currency loan and from the hedging of commercial paper were reclassified to the income statement and recognized in financial result. Furthermore, €5 million was removed from other comprehensive income not affecting profit and loss and recorded as acquisition cost of property, plant and equipment and of inventories, for the procurement of which a hedge relationship existed.
In the previous year, changes in fair value adjusted for deferred taxes in the amount of -€7 million decreased equity by a total of €50 million; this included €100 million for the hedging of future cash flows at shareholdings accounted for using the equity method. In addition, realized gains in the amount of €101 million were recognized in profit and loss. Furthermore €38 million related to realized losses from the hedging of natural gas purchases were reclassified without affecting profit and loss.