NOTE F5 Results from portfolio management and reassessments, legacy remediation and major litigations

Accounting policy

Results from portfolio management and reassessments include:

gains and losses on the sale of subsidiaries, joint operations, joint ventures, and associates that do not qualify as discontinued operations;
acquisition costs of new businesses;
gains and losses on the sale of real estate not directly linked to an operating activity;
restructuring charges driven by portfolio management and reassessment, including impairment losses resulting from the shutdown of an activity or a plant; and
impairment losses resulting from testing of CGUs.

Results from legacy remediation and major litigations include:

the remediation costs not generated by on-going production facilities (shut-down of sites, discontinued productions, previous years’ pollution); and
the impact of significant litigations.

In € million	2019	2018
Restructuring costs and impairment	(901)	(205)
M&A costs and gains and losses on disposals	(13)	(3)
Results from portfolio management and reassessments	(914)	(208)

In € million	2019	2018
Major litigations		(25)
Remediation costs and other costs related to non-ongoing activities	(62)	(60)
Results from legacy remediation and major litigations	(61)	(86)

In 2019:

restructuring costs and impairment primarily relate to:
impairment related to Novecare Oil & Gas business (€ (825) million);
impairment on other non-performing assets (€ (26) million), mainly due to the impairment of previously capitalized items related to the adaptation of the Group’s simplification and transformation program;
M&A costs and gains and losses on disposals concern mainly the impairment of the receivable related to the earn-out for the disposal in 2017 of the Formulated Resins business (€ (8) million).

In 2018:

restructuring costs and impairment primarily related to:
the Group simplification and transformation program (€ (185) million);
impairments related to the Porto Marghera divestment (€ (23) million) and to other non performing assets (€ (16) million);
reversal of impairment related to a cogeneration asset in Brazil (€ 22 million);
M&A costs and gains and losses on disposals mainly relate to:
the capital gain on the disposal of the phosphorus derivatives business (€ 22 million);
the estimated expense related to the Guaranteed Minimum Pensions equalization (€ (14) million) between 1990 and 1997 for Rhodia and Cytec legacies, prior to their acquisition;
the capital loss on the disposal of the Soda Ash business in Egypt (€ (7) million).