(13) Other operating income
Accounting and measurement policies
Other operating income
Other operating income comprises all income that cannot be allocated to net sales or finance income on account of its character.
Income from upfront payments, milestone payments, and royalties
Income from upfront payments, milestone payments and royalties, comprises consideration received by the Group from contract partners that are not customers. This relates in particular to collaboration and out-licensing agreements in the Healthcare business sector (see Note (7) “Collaboration and licensing agreements”).
Income from the revaluation of contingent considerations
The accounting treatment of contingent consideration agreed at the sale of a business as defined in IFRS 3 is shown in Note (36) “Other financial assets”.
Other operating income was broken down as follows:
€ million |
|
2021 |
|
2020 |
|---|---|---|---|---|
Income from upfront payments, milestone payments and royalties |
|
304 |
|
229 |
Income from disposal of businesses and assets |
|
67 |
|
97 |
Income from the reversal of provisions for litigation |
|
27 |
|
424 |
Reversal of impairment losses on non-financial asset |
|
14 |
|
– |
Income from the revaluation of contingent considerations |
|
7 |
|
1 |
Income from miscellaneous services |
|
5 |
|
5 |
Income from fair value measurement of assets |
|
3 |
|
– |
Remaining other operating income |
|
101 |
|
81 |
Other operating income |
|
528 |
|
838 |
The income from upfront payments, milestone payments, and royalties included € 123 million (2020: € 85 million) from the collaboration agreement with GlaxoSmithKline plc, United Kingdom, and milestone payments of € 50 million received from Pfizer Inc., United States, for Bavencio®. For further explanations see Note (7) “Collaboration and licensing agreements”. License income primarily resulted from interferon beta products (Biogen Inc., United States) in the amount of € 60 million (2020: € 74 million) and a license for the antidepressant Viibryd® (AbbVie Inc., United States) in the amount of € 50 million (2020: € 38 million).
Further information on income from disposals of businesses and assets can be found in Note (6) “Acquisitions and divestments”.
Income from the reversal of provisions for litigation mostly related to the reversal of a provision for EU antitrust proceedings in connection with the acquisition of Sigma-Aldrich Corporation, United States, that was not fully utilized. In the previous year they essentially related to the end of the legal dispute with Biogen Inc., United States. Further information can be found in Note (27) “Other provisions”.