(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 financial income on account of its character.
Currency translation difference
Cumulative currency translation differences recognized in equity are reclassified to profit or loss in the event of a complete disposal or a loss of control of a foreign operation. Such differences are recognized in other operating expenses or income. In the event of a pro rata or absolute reduction in the share of foreign operations, the pro rata, cumulative currency translation difference is also reclassified accordingly.
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 out-licensing agreements in the Healthcare business sector (see Note (7) 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 |
|
2025 |
|
2024 |
|---|---|---|---|---|
Income from the disposal of businesses and assets |
|
191 |
|
11 |
Realized gains from currency translation |
|
123 |
|
19 |
Currency effects from operating activities |
|
86 |
|
5 |
Income from upfront payments, milestone payments and royalties |
|
58 |
|
56 |
Income from the revaluation of contingent considerations |
|
48 |
|
48 |
Income from service contracts with divested companies |
|
29 |
|
7 |
Income from the reversal of provisions for litigation |
|
18 |
|
8 |
Income from fair value measurement of assets |
|
15 |
|
23 |
Income from miscellaneous services and rental income |
|
13 |
|
17 |
Income from the reversal of risk provision for tax audits |
|
– |
|
25 |
Remaining other operating income |
|
153 |
|
49 |
Other operating income |
|
734 |
|
269 |
Income from disposals of businesses and assets included € 114 million from the sale of the Surface Solutions business unit to Global New Material International Holdings Ltd., Cayman Islands (see Note (6) Acquisitions and divestments). In addition, an income of € 61 million was recognized from the sale of a right to an accelerated approval review by the U.S. Food and Drug Administration.
The income from realized currency translation differences amounting to € 123 million resulted almost exclusively from an absolute reduction in the share in a foreign operation with a corresponding reclassification of the pro rata cumulative currency translation difference.
Income from upfront payments, milestone payments and royalties primarily comprised license income for interferon beta products (Biogen Inc., United States).
Other operating income included a mid-double-digit million euro amount from non-income taxes due to changes in jurisdiction in Latin America.