Accounting policy

Results from portfolio management and reassessments include:

  • gains and losses on the sale of subsidiaries, joint operations, joint ventures, and associates that do not qualify as discontinued operations,
  • acquisition costs of new businesses,
  • gains and losses on the sale of real estate not directly linked to an operating activity,
  • restructuring charges driven by portfolio management and reassessment, including impairment losses resulting from the shutdown of an activity or a plant, and
  • impairment losses resulting from testing of CGUs.

Results from legacy remediation and major litigations include:

  • the remediation costs not generated by on-going production facilities (shut-down of sites, discontinued productions, previous years’ pollution) and
  • the impact of significant litigations.

Results from portfolio management and reassessments

In € million

 

2017

 

2016

Restructuring costs and impairment

 

(143)

 

(239)

M&A costs and gains and losses on disposals

 

(45)

 

82

Results from portfolio management and reassessments

 

(188)

 

(157)

Results from legacy remediation and major litigations

In € million

 

2017

 

2016

Major litigations

 

(16)

 

(12)

Remediation costs and other costs related to non-ongoing activities

 

(69)

 

(42)

Results from legacy remediation and major litigations

 

(84)

 

(54)

In 2017, these items relate primarily to:

  • Restructuring costs and impairment relating to:
    • the closure of sites in China and Korea (€(13) million),
    • the closure of sites of the Soda Ash business (€(23) million),
  • Impairment with respect to Polyamides retained assets (€(91) million),
  • M&A costs and gains and losses on disposals:
    • the deconsolidation of the Venezuelan entity (€(72) million, of which €(60) million for CTA recycling),
    • the gain on the Cross Linkable Compound business divestment (€43 million),
    • the loss on the disposal of Dacarto Benvic (€(13) million).

In 2016, these items related primarily to:

  • Restructuring costs and impairment relating to:
    • the mothballing of the Soda Ash plant in Egypt (€(112) million),
    • the divestment decision of the US torrefied biomass electricity generation project (€(39) million),
    • the resizing of Solvay’s shared services due to the changes in the Group’s portfolio (€(40) million),
    • the impact of adverse market conditions on the Brazilian electricity cogeneration assets (€(28) million),
  • M&A costs and gains and losses on disposals:
    • gain on Inovyn divestment (€71 million),
    • loss on the disposal of a peroxide business in Bussi (Italy) (€(13) million),
    • gain following additional reversal of the holdback included in the Chemlogics purchase price and subject to performance conditions not reached in 2016 (€49 million), and
    • M&A acquisition costs for €(25) million.