BASF Report 2021 Consoli dated Financial Statements – Notes 250 by Solenis UK International Ltd., London, United Kingdom, which 20 Other comprehensive income Currency translation had been accounted for using the equity method until that date, was reclassified, in equity, from other comprehensive income to retained Accounting policies Differences resulting from currency translation increased equity by a earnings. Moreover, deferred taxes in the amount of –€18 million total of €2,205 million and decreased equity by €2,598 million in the arising from an adjustment in connection with the introduction of The expenses and income shown in other comprehensive income previous year. This included deferred taxes in the amount of IAS 19 were offset against retained earnings in equity. are divided into two categories: Items that will be recognized in the –€19 million in 2021 (2020: €19 million). At-equity investments income statement in the future (known as “recycling”) and items that accounted for €697 million (2020: –€1,125 million). The differences Payment of dividends will not be reclassified to the income statement in the future. The first resulted primarily from the appreciation of the U.S. dollar and the category includes gains and losses from currency translation, the Chinese renminbi relative to the euro in 2021. In accordance with the resolution of the Annual Shareholders’ measurement of certain securities classified as debt instruments, Meeting on April 29, 2021, BASF SE paid a dividend of €3.30 per and changes in the fair value of derivatives held to hedge future cash Furthermore, as a result of divestitures and other changes in the qualifying share from the retained profit of the 2020 fiscal year. With flows. Items that will not be reclassified to the income statement at scope of consolidation, €52 million after taxes was reclassified to 918,478,694 qualifying shares, this represented total dividends of a future date include effects from the remeasurement of defined the income statement in 2021 and €71 million after taxes in 2020. €3,030,979,690.20. The remaining €914,882,378.80 in retained benefit plans. profits was allocated to retained earnings. Cash flow hedges Remeasurement of defined benefit plans Changes in the fair value of derivatives designated in hedging Changes in the value of defined benefit plans led to an increase in relationships (cash flow hedges) adjusted for deferred taxes in the other comprehensive income of €2,709 million in 2021 and to a amount of –€10 million (2020: €24 million) reduced equity by a total decrease of €973 million in the previous year (after taxes in both of €329 million (2020: €108 million). In 2021, –€381 million (2020: years). Of that, €44 million was attributable to investments –€163 million) was attributable to the hedging of future cash flows at accounted for using the equity method in 2021 (2020: –€19 million). shareholdings accounted for using the equity method. Deferred taxes amounted to –€811 million in 2021 and to €422 mil- For more information on cash flow hedge accounting, see Note 26.5 from page 274 onward lion in 2020. Because of the disposal of the pigments business on June 30, 2021, the amount of €48 million for the remeasurement of defined benefit plans, plus an additional €6 million resulting from the disposal of the operational companies of Solenis UK International Ltd., London, United Kingdom, which had been accounted for using the equity method until that date, was reclassified, in equity, from other comprehensive income to retained earnings. Moreover, deferred taxes in the amount of –€18 million arising from an adjustment in connection with the introduction of IAS 19 were offset against retained earnings in equity. For more information on the remeasurement of defined benefit plans, see Note 22 from page 254 onward