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TAG overview


(14) Other operating expenses

Operating Activities

(14) Other operating expenses

Accounting and measurement policies

Other operating expenses

Other operating expenses comprise all expenses that cannot be reasonably allocated to a functional cost type or finance costs.

The breakdown of other operating expenses was as follows:

€ million





Impairment losses on non-financial assets





Project expenses (including integration and IT projects)





Profit share agreements





Currency effects from operating activities





Non-income related taxes





Expenses from litigation





Premiums, fees and contributions





Restructuring expenses





Expenses on revaluation of contingent considerations





Expenses for miscellaneous services





Expenses for disposal of businesses and non-current assets





Remaining other operating expenses





Other operating expenses





Impairments of non-financial assets in the amount of € 160 million (2019: € 33 million) were attributable to intangible assets (see Note (19) “Other intangible assets”) and in the amount of € 23 million (2019: € 8 million) to property, plant and equipment (see Note (20) “Property plant and equipment”).

Project expenses of € 93 million (2019: € 112 million) were primarily incurred on advisory services in connection with the integration of Versum Materials, Inc., United States, as well as expenses for the global Covid-19 crisis team and for masks, tests and donations. Consulting and personnel expenses were also incurred in connection with the Syntropy joint venture with Palantir Technologies, Inc., United States, and advisory services relating to the divested Consumer Health business, as well as for the global harmonization of the IT landscape.

Expenses from profit share agreements amounting to € 80 million (2019: € 60 million) were primarily incurred in connection with the strategic alliance with Pfizer Inc., United States, in the field of immuno-oncology (see Note (7) “Collaboration agreements”), as well as the cooperation with Bristol Myers Squibb Co., United States, in Japan to a significantly lesser extent.

Information on litigation expenses is included in Note (27) “Other provisions”.

Restructuring expenses totaling € 29 million (2019: € 24 million) related in particular to advisory expenses in connection with the THRIVE program (see Note (27) “Other provisions”) in the Healthcare business sector that it was not possible to allocate to the respective functions.

Expenses for the revaluation of contingent considerations in the amount of € 17 million in fiscal 2020 (2019: € 8 million) resulted from the remeasurement of contingent consideration arising in connection with the sale of the shares in Prexton Therapeutics SA, Switzerland, to Lundbeck A/S, Denmark, in 2018. They also included adjustments of contingent considerations from the divestment of the biosimilars business to subsidiaries of Fresenius SE & Co. KGaA, Bad Homburg vor der Höhe, in 2017 and the Kuvan® business to BioMarin Pharmaceutical Inc., United States, in 2016.

Remaining other operating expenses included, among other things, environmental protection costs and personnel expenses that it was not possible to reliably allocate to the functional areas. This item also contained the expense for donations of Cesol® 600 tablets containing the active ingredient praziquantel to the World Health Organization (WHO).

Remaining other operating expenses also included the loss on the net monetary position in connection with hyperinflation accounting in Argentina in the amount of € 9 million (2019: € 10 million).