NOTE B19 IFRS EBIT - 2017 Annual Integrated Report

Index
18 NOTE B18 IFRS EBITDA
19 NOTE B19 IFRS EBIT
20 NOTE B20 IFRS Net financial charges
21 NOTE B21 IFRS Income taxes
22 NOTE B22 IFRS Profit from discontinued operations
23 NOTE B23 IFRS Profit for period

EBIT on an IFRS basis totaled €976 million, versus €1,527 million on an underlying basis. The difference of €551 million is explained by the above-mentioned €201 million adjustments at the EBITDA level and €350 million of “Depreciation, amortization & impairments”. The latter consist of:

€250 million to adjust for the non-cash impact of purchase price allocation (PPA), consisting of amortization charges on intangible assets, which are adjusted in "Cost of goods sold" for €2 million, "Commercial & administrative costs" for €40 million, in "Research & development costs" for €3 million, and in "Other operating gains & losses" for €205 million.
€100 million to adjust for the net impact of impairments, which are non-cash in nature and are reported in “Result from portfolio management and reassessments”, of which €(91) million is related to the retained polyamide assets in Latin America.