BASF Report 2021 Consoli dated Financial Statements – Notes 214 The Agricultural Solutions segment consists of the division of the Income from operations (EBIT) of Other The same accounting rules are used for segment reporting as those same name. As an integrated provider, its portfolio comprises Million € used for the Group, which are presented in these Notes. Transfers fungicides, herbicides, insecticides and biological crop protection 2021 2020 between the segments are generally executed at adjusted products, as well as seeds and seed treatment products. Costs for cross-divisional corporate research –355 –364 market-based prices, taking into account the higher cost efficiency Furthermore, Agricultural Solutions offers farmers innovative and Costs of corporate headquarters –255 –214 and lower risk of intragroup transactions. Assets, as well as their sustainable solutions, including those based on digital technologies, Other businesses 180 169 depreciation and amortization, are allocated to the segments based combined with practical advice. Foreign currency results, hedging and other measurement on economic control. Assets used by more than one segment are effects –62 –59 allocated based on the percentage of usage. Activities that are not allocated to any of the divisions are recorded Miscellaneous income and expenses –149 –735 under Other. These include other businesses which comprise Income from operations of Other –641 –1,203 Income from operations (EBIT) before special items is used for the commodity trading, engineering and other services, as well as rental internal steering of the segments and complements the key income and leases. Discontinued operations and certain activities management indicator, return on capital employed (ROCE). It is remaining after divestitures are also reported here. determined based on EBIT, which is calculated from gross profit on Income from operations of Other improved by €562 million year sales, selling expenses, general administrative expenses, research The following activities are also presented under Other: on year, from –€1,203 million to –€641 million. This resulted mainly and development expenses, other operating income and expenses, – The steering of the BASF Group by corporate headquarters. from miscellaneous income and expenses, which included and income from integral companies accounted for using the equity – Cross-divisional corporate research, which includes plant special income from the partial release of provisions for the method. To calculate EBIT before special items, this figure is then biotechnology research, works on long-term topics of strategic restructuring of the Global Business Services unit. In the previous adjusted for special items. Special items arise from the integration of importance to the BASF Group. Furthermore, it focuses on the year, special charges had been recognized. The costs of corporate acquired businesses, restructuring costs, impairments and reversals development of specific key technologies, which are of central headquarters rose by €41 million year on year to €255 million. of impairments, gains or losses on divestitures and sales of integral importance for the divisions. Income from other businesses increased by €11 million to investments accounted for using the equity method, as well as other – Results from currency translation that are not allocated to the €180 million. The costs for cross-divisional corporate r esearch expenses and income that arise outside of ordinary business segments; earnings from the hedging of raw materials prices and decreased by €9 million to €355 million. activities. EBIT and EBIT before special items are alternative foreign currency exchange risks; and gains and losses from the performance measures that are not defined under IFRS and are to long-term incentive programs (LTI programs). be considered as being complementary to the indicators defined – Remanent fixed costs resulting from organizational changes or by IFRS. restructuring; function and region-related restructuring costs not allocated to a division; idle capacity costs from internal human resource platforms; and consolidation effects that cannot be allocated to the divisions.