19. Investments Accounted for Using the Equity Method

Four (2014: three) associates and three (2014: three) joint ventures were accounted for in the consolidated financial statements using the equity method.

Associates and Joint Ventures Accounted for Using the Equity Method

Company Name

 

Place of Business

 

Bayer’s interest

 

 

 

 

%

1

For information concerning the interest in this company see Note [6.1]

Associates

 

 

 

 

Flagship Ventures V Agricultural Fund, LP1

 

Cambridge, U.S.A.

 

99.9

Nanjing Baijingyu Pharmaceutical Co., Ltd.

 

Nanjing, China

 

15

Paltough Industries (1998) Ltd.

 

Kibbutz Ramat Yochanan, Israel

 

25

PO JV, LP

 

Wilmington, U.S.A.

 

39.4

Joint ventures

 

 

 

 

Bayer Zydus Pharma Private Limited

 

Mumbai, India

 

50

DCSO Deutsche Cyber-Sicherheitsorganisation GmbH

 

Berlin, Germany

 

25

DIC Covestro Polymer Ltd.

 

Tokyo, Japan

 

50

In 2000, Bayer acquired the polyols business and parts of the propylene oxide (PO) production operations of Lyondell Chemicals with the objective of ensuring access to patented technologies and safeguarding the long-term supply of PO, a starting product for polyurethane. As part of this strategy, a company was established to produce PO (PO JV, LP, United States, in which Covestro holds a 39.4% interest). Covestro benefits from fixed long-term supply quotas / volumes of PO from this company’s production. The two following tables contain summarized data from the income statements and statements of financial position of the associated company PO JV, LP, United States, which is accounted for using the equity method, and show the respective amounts recognized in the consolidated financial statements of the Bayer Group.

Income Statement Data of PO JV, LP, Accounted for Using the Equity Method

 

 

2014

 

2015

 

 

€ million

 

€ million

Net sales

 

2,414

 

1,695

Net loss after taxes

 

(44)

 

(56)

Share of net loss after taxes

 

(17)

 

(23)

Share of total comprehensive income after taxes

 

(17)

 

(23)

Gain (loss) after taxes from impairments / derecognition of other interests

 

(1)

 

Recognized loss after taxes of PO JV, LP, accounted for using the equity method

 

(18)

 

(23)

Data from the Statements of Financial Position of PO JV, LP, Accounted for Using the Equity Method

 

 

Dec. 31, 2014

 

Dec. 31, 2015

 

 

€ million

 

€ million

Noncurrent assets

 

462

 

475

Equity

 

462

 

475

Share of equity

 

182

 

201

Other

 

2

 

(3)

Carrying amount of PO JV, LP, accounted for using the equity method

 

184

 

198

The item “Other” mainly comprised differences arising from adjustments of data to Bayer’s uniform accounting policies, along with purchase price allocations and their amortization in profit or loss.

The following table contains a summary of the aggregated income statement data and aggregated carrying amounts of the individually nonmaterial associates that are accounted for using the equity method.

Income Statement Data and Carrying Amount of Associates Accounted for Using the Equity Method

 

 

2014

 

2015

 

 

€ million

 

€ million

Income after taxes

 

4

 

12

Share of income after taxes

 

1

 

1

Share of total comprehensive income after taxes

 

1

 

1

Carrying amount of associates accounted for using the equity method

 

27

 

37

The following table contains a summary of the aggregated income statement data and aggregated carrying amounts of the individually nonmaterial joint ventures that are accounted for using the equity method.

Income Statement Data and Carrying Amount of Joint Ventures Accounted for Using the Equity Method

 

 

2014

 

2015

 

 

€ million

 

€ million

Income after taxes

 

8

 

6

Share of income after taxes

 

4

 

3

Share of total comprehensive income after taxes

 

4

 

3

Gain (loss) after taxes from impairments / derecognition of other interests

 

 

Recognized income after taxes of joint ventures accounted for using the equity method

 

4

 

3

Carrying amount of joint ventures accounted for using the equity method

 

12

 

11