8 Discontinued operations and assets and liabilities of disposal group classified as held for sale

8 Discontinued operations and assets and liabilities of disposal group classified as held for sale

8.1 Discontinued operations

On 2 September 2015, UCB concluded an agreement with Lannett Company, Inc. (“Lannett”) for the sale of its U.S. specialty generics subsidiary, Kremers Urban Pharmaceuticals Inc. (“KU”). The sale was closed on 25 November 2015.

The profit from discontinued operations of € 2 million for 2019 mainly relates to profit resulting from the sale of KU. The profit from discontinued operations of € 8 million for 2018 includes a € 9 million profit relating to the sale of KU as well as additional costs for an environmental provision related to the legacy films and chemical activities for € 1 million.

The cash flows from discontinued operations have been separately disclosed in the cash flow statement. In 2019 there was a total cash outflow of € 11 million, partly related to the settlement of a claim relating to activities of KU (€ 8 million) and partly to payments for environmental remediation related to the legacy films and chemical activities (€ 3 million).

8.2 Assets and liabilities of disposal group classified as held for sale

Assets and liabilities of disposal group classified as held for sale as per 31 December 2019 mainly relate to the divestment of non-core established brand products. As per year-end, divestment negotiations were ongoing. No impairment loss has been accounted for on the assets. Assets consist mainly of intellectual property rights and inventory. Liabilities relate to deferred tax liabilities.

Assets of disposal group classified as held for sale as per 31 December 2018 mainly related to the Monheim site in Germany (€ 16 million).

Detail of assets and liabilities of disposal group classified as held for sale as per 31 December 2019 and 2018:

 

 

 

€ million

2019

2018

Intangible assets

35

0

Property, plant and equipment

0

16

Inventories

15

4

Assets classified as held for sale

50

20

Deferred income tax liabilities

9

0

Liabilities associated with assets classified as held for sale

9

0

Net assets classified as held for sale

41

20