4.3.4Other Operating Income and Expense
|
2018 |
2017 |
||
|---|---|---|---|
|
Insurance claim income |
37 |
125 |
|
|
Gains from sale of financial participations, property, plant and equipment |
0 |
0 |
|
|
Other operating income |
3 |
5 |
|
|
Total other operating income |
40 |
130 |
|
|
Settlement expenses |
(45) |
(238) |
|
|
Impairment of goodwill |
(25) |
- |
|
|
Restructuring expenses |
(1) |
(10) |
|
|
Other operating expense |
0 |
(121) |
|
|
Total other operating expense |
(70) |
(369) |
|
|
Total |
(30) |
(239) |
In 2018 and 2017 the insurance claim income corresponds to the Company’s estimated share of the Yme insurance claim settlement, net of the claim-related costs (please refer to note 4.3.1 Financial Highlights ).
In 2018, impairment of goodwill relates to the full impairment of the goodwill related to the acquisition of Houston-based subsidiaries (please refer to note 4.3.1 Financial Highlights ).
In 2018, the settlement expenses mainly relate to the additional provision of US$ 43 million (200 million Brazilian Reais) for settlement with the Brazilian Federal Prosecutor’s Office (Ministério Público Federal – ’MPF’) (please refer to note 4.3.1 Financial Highlights ).
The previous year’s expense relates to (i) the non-recurring penalty following signature of the Deferred Prosecution Agreement with the U.S. Department of Justice (US$ 238 million) resolving the investigation into the Company’s legacy issues, (ii) the US$ 40 million impairment of the Turritella (FPSO) finance lease receivable and the compensation (US$ 80 million) to the partners in the investee owning Turritella (FPSO) following the purchase option exercised by Shell and (iii) provisions for onerous contracts related to long-term offices rentals (US$ 7 million).