Activities that are not allocated to any of the segments are recorded under Other. These include other businesses, which comprise commodity trading, engineering and other services, rental income and leases. Discontinued operations and certain activities remaining after divestitures are also reported here.
The following activities are presented under Other:
- The steering of the BASF Group by corporate headquarters.
- Cross-divisional corporate research, which includes plant biotechnology research, works on long-term topics of strategic importance to the BASF Group. Furthermore, it focuses on the development of specific key technologies, which are of central importance for the divisions.
- Results from currency translation that are not allocated to the segments; earnings from the hedging of raw materials prices and foreign currency exchange risks; and gains and losses from the long-term incentive programs (LTI programs).
- Remanent fixed costs resulting from organizational changes or restructuring; function and region-related restructuring costs not allocated to a division; idle capacity costs from internal human resource platforms; and consolidation effects that cannot be allocated to the divisions.
Sales in Other declined by €538 million compared with 2019 to €2,360 million. This was mainly due to the sales decrease in commodity trading and the remaining activities of BASF’s paper and water chemicals business, which were not part of the transfer to Solenis and are reported under Other.
At –€769 million, EBIT before special items in Other was €188 million below the prior-year figure. This is largely attributable to lower contributions from other businesses and to positive effects in 2019, primarily from changes to pension benefits in the United States.
EBIT in Other declined by €685 million year on year, from –€518 million to –€1,203 million. The costs for cross-divisional corporate research decreased by €33 million to –€364 million, and the costs of corporate headquarters were €17 million lower at –€214 million. Income from other businesses rose by €5 million to €169 million. The line item foreign currency results, hedging and other measurement effects improved by €30 million to –€59 million. In addition to currency effects, the improvement was due mainly to earnings from hedging transactions. The line item miscellaneous income and expenses decreased by –€770 million from €35 million to –€735 million. This was due especially to expenses related to the realignment of the Global Business Services unit and to positive effects in 2019 primarily from adjustments to pension benefits in the United States and gains from the sale of BASF’s share of the Klybeck site in Basel, Switzerland.
|Income from operations before depreciation and amortization (EBITDA)
before special items2
|Income from operations before depreciation and amortization (EBITDA)2||–1,032||–334||.|
|Depreciation and amortization3||171||184||–7%|
|Income from operations (EBIT)2||–1,203||–518||.|
|EBIT before special items2||–769||–581||–32%|
of which costs for cross-divisional corporate research
costs of corporate headquarters
foreign currency results, hedging and other measurement effects
miscellaneous income and expenses
|Investments including acquisitions5||156||299||–48%|
|Research and development expenses||385||411||–6%|
1 Information on the composition of Other can be found in the BASF Report 2020.
2 The 2019 figures have been restated to reflect the reclassification of income from non-integral companies accounted for using the equity method to net income from shareholdings.
3 Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
4 Contains assets of businesses recognized under Other as well as reconciliation to assets of the BASF Group
5 Additions to property, plant and equipment and intangible assets