Notes to the Consolidated Cash Flow Statement
The consolidated cash flow statement presents the changes in cash and cash equivalents as a result of cash inflows and outflows from operating, investing and financing activities. Further information on cash flows can be found in the explanation of cash and cash equivalents (see Note (24) ‟Cash and cash equivalents”). The amount of undrawn borrowing facilities that could be tapped for future operating activities and to meet obligations is disclosed in Note (28) ‟Financial liabilities/Capital management”.
The cash flows reported by Group companies in non-functional currencies are in principle translated at average exchange rates. Cash and cash equivalents are translated at the closing rates. The impact of foreign exchange rate changes is disclosed separately under changes in cash and cash equivalents.
(34) Net cash flows from operating activities
In 2017, tax payments totaled € 702 million (2016: € 841 million). Tax refunds totaled € 73 million (2016: € 63 million). Interest paid totaled € 297 million (2016: € 327 million). Interest received amounted to € 28 million (2016: € 22 million).
The changes of other assets and liabilities include the adjustment of deferred taxes as a result of the U.S. tax reform.
The neutralization of the profits/losses from the disposal of assets and other disposals mainly comprises the gain on the sale of the Biosimilars business. In 2016, this item mainly comprised the gain on the sale of the rights to Kuvan®.
(35) Net cash flows from investing activities
The payments for investments in intangible assets primarily included payments for a license agreement with Vertex Pharmaceuticals Inc., USA, for the acquisition of two clinical and additional novel pre-clinical research programs in the area of oncology and immuno-oncology.
Payments for acquisitions comprised the acquisitions of Grzybowski Scientific Inventions Ltd., USA, (€ 7 million) and Natrix Separations, Inc., Canada (€ 8 million). In 2016, this item mainly included the acquisition of BioControl Systems, Inc., USA, amounting to € 156 million.
Net cash outflows from investments in current and non-current financial assets amounting to € 219 million (2016: € 344 million) mainly resulted from the purchase of short-term investments in securities not classified as cash and cash equivalents. Additionally, this item included payments for the purchase of an equity instrument option.
Cash inflows from the divestment of assets held for sale included the upfront payment amounting to € 156 million for the divestment of the Biosimilars business. In 2016, cash inflows of € 340 million resulted from the sale of the rights to Kuvan®.
(36) Net cash flows from financing activities
Net cash flows from financing activities contained the repayment of two bonds amounting to € 932 million (2016: € 272 million). In 2016, the repayment of other current and non-current financial debt mainly related to the repayment of bank loans to finance the acquisition of the Sigma-Aldrich Corporation, USA.
The change in financial debt was as follows:25 KB EXCEL
|€ million||Jan. 1, 2017||Payments||Repayments||Changes in scope of consolidation||Foreign exchange movement||Fair Value changes||Other changes||Dec. 31, 2017|
|Bonds||8,731||–||– 932||–||– 425||–||–||7,375|
|thereof: current||937||–||– 932||–||– 25||–||354||335|
|thereof: non-current||7,794||–||–||–||– 400||–||– 354||7,040|
|Financial liabilities to E. Merck KG, Darmstadt, Germany||729||349||– 314||–||–||–||–||765|
|Other current and non-current financial liabilities||3,136||147||– 546||–||– 38||– 16||–||2,683|
|Financial liabilities||12,597||497||– 1,792||–||– 463||– 16||–||10,823|
|Derivative assets (current and non-current)||62||–||– 50||–||–||–||–||12|
‟Other changes” relate mainly to the reclassification of bonds owing to a change from long-term to short-term. The changes reported for derivative assets (current and non-current) under repayments correspond to the repayment of other current and non-current financial liabilities in the amount of € 496 million reported under cash outflows from financing activities.