Merck 2014 Annual Report Download - page 200

195CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
(30) OTHER OPERATING EXPENSES AND
INCOME
Other operating expenses and income were as follows:
€ million 2014 2013
Impairment losses1–100.2 –225.6
Litigation1– 95.5 – 205.2
Integration costs / IT costs – 87.2 – 49.0
Restructuring costs – 83.9 – 130.5
Premiums, fees and contributions – 55.2 – 54.3
Allowances for receivables – 41.9 – 47.1
Non-income related taxes – 35.5 – 37.4
Acquisition costs – 24.5 –
Expenses for miscellaneous services – 21.8 – 23.9
Losses on the divestment of businesses – 8.8 – 2.3
Project costs – 4.4 – 6.5
Other operating expenses1–125.2 –131.0
Total other operating expenses1– 684.1 – 912.8
Gains from the release of provisions for litigation 260.3 50.4
Exchange rate differences from operating activities 53.3 26.0
Release of allowances for receivables 41.8 42.1
Income from miscellaneous services 26.4 25.1
Gains on disposal of assets 3.7 7.5
Income from investments 1.5 1.5
Other operating income139.4 42.1
Total other operating income1426.4 194.7
Total other operating expenses and income – 257.7 – 718.1
1 Previous year’s figures have been adjusted, see explanations below.
In fiscal 2014, income from the release of provisions for litigation
was disclosed separately and not offset against litigation expenses.
The previous year’s figure has been correspondingly adjusted.
The net expenses previously disclosed under one-time items
were reclassified to other operating income and expenses based on
their nature.
The impairments totaled €100.2 million (2013: €225.6 million)
and related in the amount of €84.9 million (2013: €10.5 million)
to assets which were assigned to research and development, in the
amount of € 5.1 million (2013: € 12.6 million) to production
plants, in the amount of €0.1 million (2013: €156.2 million) to
sales-related assets, and in the amount of € 5.7 million (2013:
€23.5 million) to administration. In addition, impairments were
recognized in the amount of €4.4 million (2013: €5.5 million) for
non-consolidated investments and other financial instruments
which were classified to the category “available-for-sale”. In 2013,
impairments were recorded in the amount of €17.3 million for
capitalized goodwill in connection with the sale of the Discovery
and Development Solutions business field of the Life Science divi-
sion. Further information on impairments can be found under
Intangible Assets (see Note [41]).
Integration and IT costs of €87.2 million (2013: €49.0 million)
were incurred primarily for the global harmonization of the IT
landscape and in connection with the integration of acquired and
existing businesses.
The restructuring charges incurred in fiscal 2014 amounting to
€83.9 million (2013: €130.5 million) arose in connection with the
“Fit for 2018” transformation and growth program in the amount
of €79.5 million (2013: €130.5 million). As in the previous year,
these charges largely related to personnel measures, for instance