[29] One-time items Audited

One-time items comprised:

The restructuring charges incurred in fiscal 2012 amounting to € 503.8 million were directly related to the announced efficiency improvement and cost reduction program “Fit for 2018”. The aim of the associated measures is to increase the competitiveness of Merck, especially by optimizing cost structures in all divisions. The recognized restructuring charges largely related to personnel measures, for instance the elimination of positions in order to create a leaner and more agile organization.

The losses from the divestment of businesses amounting to € 60.1 million related mainly to subsequent expenses in connection with administrative fine proceedings by the European Commission for the Generics business, which was divested in 2007. This item also included the gain on the sale of the battery electrolyte activities.

Asset impairments amounting to € 34.3 million were attributable to the efficiency improvement and cost reduction program, resulting in a total expense of the efficiency improvement and cost reduction program of € 538.1 million.

One-time items are in principle disclosed under “other operating expenses and income.” In the income statement for 2011, individual one-time items were included in other line items as well.

Specifically, the one-time items in 2011 were as follows: Gains from the divestment of businesses in 2011 largely comprised € 157.1 million from the divestment of the Crop BioScience business. Other one-time items amounting to € 52.2 million were reported for inventory write-downs under cost of sales. In connection with the return of the rights to safinamide, research and development costs included expenses for provisions for services still to be performed amounting to € 41.7 million. Furthermore, other one-time items included expenses in connection with discontinuing the development of cladribine tablets amounting to € 12.8 million. Intangible assets for safinamide (€ 63.4 million), cladribine tablets (€ 50.4 million), IMO-2055 (€ 35.4 million), a further research project for the Merck Serono division (€ 9.0 million) and patents in the Performance Materials division (€ 8.6 million) were written off and recognized as impairment losses. In the income statement, this is disclosed under amortization of intangible assets. Additionally, other operating expenses included the impairments amounting to € 165.1 million for the LSB production plant. The breakdown of one-time items excluding impairment losses by division is presented in Segment Reporting (see Note [53]).