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

 

2018

 

2017

Restructuring costs and impairment

 

(205)

 

(143)

M&A costs and gains and losses on disposals

 

(3)

 

(45)

Results from portfolio management and reassessments

 

(208)

 

(188)

Results from legacy remediation and major litigations

In € million

 

2018

 

2017

Major litigations

 

(25)

 

(16)

Remediation costs and other costs related to non-ongoing activities

 

(60)

 

(69)

Results from legacy remediation and major litigations

 

(86)

 

(84)

In 2018:

  • restructuring costs and impairment relate primarily to:
  • the Group simplification restructuring program (€ (185) million);
  • impairments related to the Porto Marghera divestment (€ (23) million) and to other non-performing assets (€ (16) million);
  • reversal of impairment relating to a cogeneration asset in Brazil (€ 22 million).
  • M&A costs and gains and losses on disposals relate mainly to:
  • the capital gain on the disposal of the phosphorus derivatives business (€ 22 million);
  • the estimated expense relating to the Guaranteed Minimum Pensions equalization (€ (14) million) between 1990 and 1997 for Rhodia and Cytec legacies, prior to their acquisition; and
  • the capital loss on the disposal of the Soda Ash business in Egypt (€ (7) million).

In 2017:

  • restructuring costs and impairment related 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); and
  • the loss on the disposal of Dacarto Benvic (€ (13) million).