Merck 2010 Annual Report Download - page 161

Other operating expenses and income comprise the following:
EUR million 2010 2009
Litigation –89.2 –166.9
Project costs –79.2 –69.3
Impairment losses –65.5 –37.9
Restructuring and integration costs –64.4 –14.5
Bonuses, fees and contributions –52.8 –46.7
Non-income-related taxes –23.7 –19.5
Write-downs of receivables –19.7 –30.8
Special environmental protection costs –10.7 –4.6
Losses on disposals of assets –3.0 –5.5
Exchange rate differences from operating activities – –6.6
Other operating expenses –118.6 –64.7
  
Gains from disposals of assets 37.6 10.7
Payments for services performed 26.8 17.3
Exchange rate differences from operating activities 24.7 –
Release of write-downs of receivables 10.0 2.9
Write-ups – 0.2
Other operating income 37.3 63.2
Total other operating income 136.4 94.3
Other operating expenses and income –390.4 –372.7
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Integration costs for Millipore totaled EUR 87.3 million, of which EUR 33.9 million was recorded
under “Project costs”. This includes acquisition-related costs of EUR 31.2 million. A further
EUR 53.4 million was recorded under “Restructuring and integration costs.” This amount includes
impairment losses on property, plant and equipment amounting to EUR 5.7 million. In addition to
the costs in connection with the acquisition of Millipore, project costs relate mainly to the costs
incurred in connection with Group-wide IT projects. These include, for example, projects to har-
monize IT applications and infrastructure throughout the Group. The increase in impairment losses
compared to 2009 is primarily attributable to the termination of research projects and research
collaborations, as well as altered market estimates and the resulting decline in expected sales.
Property, plant and equipment accounted for impairment losses of EUR 18.0 million and intangible
assets for EUR 47.5 million. Other operating expenses include, among other things, expenses
for services performed for third parties as well as costs from ancillary business. Other operating
income includes, among other things, income from ancillary business such as rental and leasing
agreements as well as income from catering services. The breakdown of other operating expenses
and income by business sector and division is presented in the Segment Reporting.
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Company 157Management Report Corporate governance Consolidated Financial Statements
Notes
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