(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 to finance costs.
The breakdown of other operating expenses was as follows:
€ million |
|
2024 |
|
2023 |
|---|---|---|---|---|
Impairment losses on non-financial assets |
|
-328 |
|
-104 |
Project expenses |
|
-75 |
|
-46 |
Non-income related taxes and expenses from tax audits |
|
-68 |
|
-102 |
Loss from hyperinflation accounting |
|
-59 |
|
-56 |
Non-allocable personnel expenses |
|
-57 |
|
-39 |
Expenses from Litigation |
|
-56 |
|
-26 |
Premiums, fees and contributions |
|
-48 |
|
-47 |
Infrastructure expenses |
|
-44 |
|
-26 |
Expenses for claims and reinsurances |
|
-22 |
|
-23 |
Expenses from a donation to the World Health Organization |
|
-19 |
|
-23 |
Expenses from fair value measurement of assets and liabilities at fair value |
|
-18 |
|
-19 |
Expenses from disposal of businesses and assets |
|
-14 |
|
-5 |
Profit share agreements |
|
-13 |
|
-171 |
Expenses for miscellaneous services |
|
-8 |
|
-4 |
Restructuring expenses |
|
-6 |
|
-20 |
Realized loss from currency translation |
|
-4 |
|
– |
Remaining other operating expenses |
|
-78 |
|
-120 |
Other operating expenses |
|
-915 |
|
-830 |
Impairments of non-financial assets related to intangible assets in the amount of € 243 million (2023: € 81 million; see Note (19) “Other intangible assets”), including € 140 million in connection with the discontinuation of the xevinapant program (see Note (7) “Collaboration and licensing agreements”). A further € 85 million was related to impairments of property, plant and equipment (2023: € 23 million; see Note (20) “Property, plant and equipment”).
Project expenses arose in connection with IT and integration projects as well as acquisitions and divestments.
The reduction in profit transfer expenses was due in particular to the termination of the strategic alliance with Pfizer Inc., United States, for Bavencio® in the field of immuno-oncology with effect from June 30, 2023 (see Note (7) “Collaboration and licensing agreements”).