BASF Report 2021 Consoli dated Financial Statements – Notes 223 Research and development expenses 9 Other operating income and expenses a Research and development expenses include the costs resulting Other operating income from research projects as well as the necessary license fees for Million € research activities. 2021 2020 For more information on research and development expenses by segment, see Note 5 from page 213 Income from the adjustment and release of provisions recognized in other operating expenses 241 54 onward Revenue from miscellaneous other activities 180 244 Income from hedging transactions and LTI programs 30 11 Income from foreign currency transactions and the translation of financial statements in foreign currencies 49 47 Gains on divestitures and the disposal of noncurrent assets 175 62 Reversals of impairment losses on noncurrent assets 13 – Income from the reversal of valuation allowances for business-related receivables 32 22 Gains/losses from precious metal trading 388 304 Other 784 655 Other operating income 1,894 1,399 a Income from foreign currency transactions was reported with income from the translation of financial statements in foreign currencies for the first time; it had previously been combined with income from hedging transactions and LTI programs. Furthermore, gains/expenses from precious metal trading, which had previously been recognized under Other, were reported separately. The prior-year figures have been restated accordingly. Income from the adjustment and release of provisions Income from hedging transactions and LTI programs resulted recognized in other operating expenses in 2021 resulted primarily exclusively from currency derivatives and other hedging trans- from the release of provisions in connection with the restructuring of actions. No income from the release of provisions for the long-term the Global Business Services unit. In both years, income also incentive (LTI) program was recognized in 2021 or 2020. resulted from risks from lawsuits and damage claims, closures and restructuring measures, employee obligations, and various other Income from foreign currency transactions and the translation individual items as part of the normal course of business. Provisions of financial statements in foreign currencies related to the were reversed or adjusted if, based on the circumstances on the translation of receivables and liabilities in foreign currencies and balance sheet date, utilization was no longer expected, or expected included income from the translation of companies’ financial to a lesser extent. statements whose local currency is different from the functional currency. As in the previous year, revenue from miscellaneous other activities primarily included income from rentals, catering Gains on divestitures and the disposal of noncurrent assets in operations, cultural events and logistics services. In 2020, €24 mil- 2021 resulted from the sale of a production site in Kankakee, Illinois, lion in revenue from finance leases was also recognized. the sale of the share in the condensate splitter in Port Arthur, Texas, and the sale of the precision microchemicals business. In 2020, this item included primarily income from the sale of fixed assets in the amount of €44 million.