Other operating expenses and income were as follows:
| XLS |
|
|
|
|
||
|
€ million |
2013 |
2012 |
||
|
||||
|
Litigation |
–154.8 |
–185.5 |
||
|
Premiums, fees and contributions |
–54.3 |
–51.4 |
||
|
Allowances for receivables |
–47.1 |
–68.3 |
||
|
Non-income related taxes |
–37.4 |
–33.0 |
||
|
Expense for miscellaneous services |
–23.9 |
–20.2 |
||
|
Impairment losses |
–18.4 |
–19.7 |
||
|
Losses on disposals of assets |
–17.7 |
–2.7 |
||
|
Project costs |
–6.5 |
–8.1 |
||
|
Exchange rate differences from operating activities |
– |
–60.4 |
||
|
Impairment losses on Greek sovereign bonds |
– |
–2.8 |
||
|
One-time items |
–386.8 |
–663.7 |
||
|
Other operating expenses |
–111.0 |
–129.9 |
||
|
Total other operating expenses |
–857.9 |
–1,245.7 |
||
|
|
|
|
||
|
Release of allowances for receivables |
42.1 |
42.4 |
||
|
Exchange rate differences from operating activities |
26.0 |
– |
||
|
Income from miscellaneous services |
25.1 |
21.0 |
||
|
Gains on disposals of assets |
7.5 |
6.0 |
||
|
Income from investments |
1.5 |
0.6 |
||
|
Other operating income |
37.6 |
49.8 |
||
|
Total other operating income |
139.8 |
119.81 |
||
|
|
|
|
||
|
Total other operating expenses and income |
–718.1 |
–1,125.91 |
||
Allowances for receivables and the release of allowances for receivables included both trade accounts receivable as well as other receivables disclosed under other assets insofar as the expenses were not recorded under one-time items.
The impairments related in the amount of € 3.3 million (2012: € 3.3 million) to assets which were assigned to research and development, in the amount of € 8.0 million (2012: 2012: € 16.1 million) to production plants, in the amount of € 2.7 million (2012: € 0.2 million) to sales-related assets, and in the amount of € 1.7 million (2012: € 0.0 million) to administration. In addition, impairments were recognized in the amount of € 2.7 million (2012: € 0.1 million) related to non-consolidated investments and other financial instruments which were assigned to the category “available for sale”.
Other operating expenses included, among other things, special environmental protection costs and non-allocable personnel expenses.
Due to its overall minor importance, income from investments was first shown in fiscal 2013 as a part of other operating income. The figures for 2012 were accordingly adjusted.
One-time items comprised:
| XLS |
|
|
|
|
|
€ million |
2013 |
2012 |
|
Restructuring costs |
–130.5 |
–503.8 |
|
Integration costs/IT costs |
–49.0 |
–36.7 |
|
Gains/losses on the divestment of businesses |
–2.3 |
–60.1 |
|
Acquisition costs |
– |
–1.0 |
|
Other one-time items |
–2.3 |
–3.1 |
|
One-time items before impairment losses/reversals of impairments |
–184.1 |
–604.7 |
|
Impairment losses |
–207.2 |
–59.0 |
|
Reversals of impairments |
4.5 |
– |
|
One-time items (total) |
–386.8 |
–663.7 |
The restructuring charges incurred in fiscal 2013 amounting to € 130.5 million (2012: € 503.8 million) were directly related to the efficiency measures in connection with the “Fit for 2018” transformation and growth program. This program was initiated in 2012 with the aim of increasing 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 efficient organization. These were offset against income generated by the restructuring, which resulted in the amount of € 33.4 million primarily from the sale of the buildings at Merck Serono location in Geneva, Switzerland. The amount for 2012 also primarily comprises expenses for personnel measures in connection with the “Fit for 2018” program.
Integration and IT costs of € 49.0 million (2012: € 36.7 million) were incurred primarily for the global harmonization of the IT landscape and in connection with the integration of acquired and existing businesses.
The losses from the divestment of businesses amounting to € 2.3 million (2012: € 60.1 million) related mainly to subsequent expenses for the Generics business sold in 2007.
Asset impairments amounted to € 207.2 million (2012: € 59.0 million). Of this amount, € 35.7 million (2012: € 34.3 million) was attributable to the “Fit for 2018” transformation and growth program, which together with the restructuring expenses resulted in total expenses of € 166.2 million (2012: € 538.1 million). The other impairments were allocable in the amount of € 170.8 million to intangible assets and in the amount of € 0.7 million to property, plant and equipment. The other impairments allocated to intangible assets are explained in more detail in Note [41].
The impairments related in the amount of € 7.2 million (2012: € 28.6 million) to assets which were assigned to research and development, in the amount of € 4.6 million (2012: € 8.3 million) to production plants, in the amount of € 153.5 million (2012: € 15.3 million) to sales-related assets, and in the amount of € 21.8 million (2012: € 1.8 million) to administration. In addition, impairments were recognized in the amount of € 2.8 million (2012: € 5.0 million) for non-consolidated investments and other financial instruments which were classified to the category “available for sale”. Lastly, impairments were recorded in the amount of € 17.3 million (2012: € 0.0 million) for capitalized goodwill in connection with the sale of the Discovery and Development Solutions business field of the Merck Millipore division.
The breakdown of other operating expenses and income by division as well as one-time items excluding impairment losses and reversals of impairment losses by division are presented in the Segment reporting (see Note [51]).
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