Segment Reporting

In September 2015, it was decided to introduce a new organizational structure effective January 1, 2016, in line with Bayer’s focus on the Life Science businesses. The former Bayer HealthCare subgroup was dissolved and the Radiology business is now assigned to the Pharmaceuticals Division. The Consumer Health Division now consists entirely of the Consumer Care business. Animal Health has become a separate reportable segment. The Bayer CropScience subgroup is now the Crop Science Division. Since January 1, 2016, therefore, the Bayer Group has comprised the five reportable segments Pharmaceuticals, Consumer Health, Crop Science, Animal Health and Covestro.

The following table shows the reconciliation of EBITDA before special items of the above-mentioned segments and of the reconciliation to income before income taxes of the Group:

Reconciliation of Segments’ EBITDA Before Special Items to Group Income Before Income Taxes

 

 

Q1 2015

 

Q1 2016

 

 

€ million

 

€ million

2015 figures restated

EBITDA before special items of segments

 

3,090

 

3,429

EBITDA before special items of Corporate Functions and Consolidation

 

(149)

 

(25)

EBITDA before special items

 

2,941

 

3,404

Depreciation, amortization and impairment losses before special items of segments

 

(752)

 

(795)

Depreciation, amortization and impairment losses before special items of Corporate Functions and Consolidation

 

(1)

 

(2)

Depreciation, amortization and impairment losses before special items

 

(753)

 

(797)

EBIT before special items of segments

 

2,338

 

2,634

EBIT before special items of Corporate Functions and Consolidation

 

(150)

 

(27)

EBIT before special items

 

2,188

 

2,607

Special items of segments

 

(240)

 

(270)

Special items of Corporate Functions and Consolidation

 

(4)

 

(2)

Special items

 

(244)

 

(272)

EBIT of segments

 

2,098

 

2,364

EBIT of Corporate Functions and Consolidation

 

(154)

 

(29)

EBIT

 

1,944

 

2,335

Financial result

 

(274)

 

(315)

Income before income taxes

 

1,670

 

2,020

The special items of the segments include an impairment loss of €231 million in the Pharmaceuticals segment. An impairment loss was recognized on intangible assets connected with the product Essure™ due to the current assessment of the market environment and lower revenue expectations.