- Index
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Activities not qualifying as discontinued operations
In this section, disposals of subsidiaries, associates and activities are reported that do not qualify as discontinued operations in the sense of IFRS 5. The following disposals took place in 2015 and 2014:
On 28 February 2015 Clariant sold its Energy Storage Activities pertaining to the Business Area Catalysis & Energy to the UK-based Johnson Matthey for a total consideration of CHF 73 million. After the impairment charge of CHF 30 million recorded in 2014, the pertaining net assets sold, including the costs of disposal, amounted to CHF 62 million. The net result recorded on the transaction in 2015 amounts to a profit of CHF 12 million, net of taxes of CHF 1 million.
On 30 June 2014, Clariant and Ashland Inc. sold their German headquartered joint venture ASK Chemicals to Rhône Group LLC, a London- and New York-based private equity investment firm. The selling price of CHF 180 million, out of which CHF 155 million in cash and CHF 25 million as vendor loan, was evenly split between Clariant and Ashland at the closing date. The devaluation of the 50% participation to the agreed selling price resulted in a CHF 84 million impairment charge in the first quarter of 2014. After impairment, the net profit realized on the disposal by Clariant amounted to CHF 6 million in 2014. In 2015, Clariant recorded an income of CHF 3 million coming from a pre-disposal tax reimbursement received.
On 30 June 2014, Clariant sold its Water Treatment Business Line, which was part of the Business Unit Functional Minerals, reported in the Business Area Natural Resources. The final cash proceeds received amount to CHF 34 million and the realized profit amounts to CHF 6 million after tax.
The result of the disposal of activities not qualifying as discontinued operations is as follows:
in CHF m |
2015 |
|
Total consideration received, from the disposal of activities not qualifying as discontinued operations, as of 31 December 2015 |
78 |
|
Cash transferred in the transaction |
–4 |
|
Total cash proceeds received from the disposal of activities not qualifying as discontinued operations |
74 |
|
Net assets sold, after impairment, including disposal-related expenses and accumulated amounts in equity recycled through the income statement upon disposal |
–59 |
|
Profit before taxes on the disposal of activities not qualifying as discontinued operations |
15 |
|
Taxes (current and deferred) |
–1 |
|
After tax profit on disposal |
14 |
in CHF m |
2014 |
|
Total cash proceeds received, from the disposal of activities not qualifying as discontinued operations, as of 31 December 2014 |
112 |
|
Total cash proceeds received, from the sale of land in India, as per 31 December 2014, reported under sale of PPE and intangible assets in the cash flow statement |
173 |
|
Outstanding amounts |
9 |
|
Total consideration for the sale |
294 |
|
Net assets sold, after impairment, including disposal-related expenses and cumulated amounts in equity pertaining to the disposal group which were recycled through the income statement upon disposal |
–126 |
|
Fair value valuation |
|
|
Profit before taxes on the disposal of activities not qualifying as discontinued operations |
168 |
|
Taxes (current and deferred) |
–27 |
|
After tax profit on disposal |
141 |
Other assets held for sale
An amount of CHF 2 million relates to other assets held for sale in Italy and in China (2014: CHF 5 million).
In December 2014, Clariant sold a plot of land in India, realizing a profit of CHF 163 million before taxes. After tax, the realized gain recorded in 2014 amounted to CHF 129 million.
IFRS
The International Financial Reporting Standards (IFRS) are international accounting standards. VIEW ENTIRE GLOSSARY
Business area
In 2013 Clariant adjusted its reporting segments and grouped its businesses with similar end-user markets and growth drivers. Today, the company reports in four distinct Business Areas: Care Chemicals, Catalysis, Natural Resources, and Plastics & Coatings. VIEW ENTIRE GLOSSARY
Joint venture
Joint ventures are all activities in which Clariant is involved with another partner. The accounting method applied for joint ventures depends on the specific conditions of the participation. VIEW ENTIRE GLOSSARY