Show all results

Operating Activities

(11) Net sales

Accounting and measurement policies

Nature and timing of revenue recognition

Net sales are recognized when (or as) the customer obtains control of the asset. For sales of goods, the customer usually obtains control as soon as delivery is made, given that the customer is generally not able to obtain any benefits from the asset before that point in time. To a lesser extent, the Group generates net sales from the sale of goods based on bill-and-hold arrangements. In these cases, net sales are recognized before the goods are delivered to the customer, as soon as the Group has invoiced the products and the additional criteria laid out in IFRS 15.B81 are fulfilled. In the case of equipment sales, the criteria for revenue recognition are only met after installation has been successfully completed – to the extent that the installation requires specialized knowledge, does not represent a clear ancillary service and the relevant equipment can only be used by the customer once successfully set up.

For service contracts, and customer-specific contract manufacturing of goods and equipment, the Group recognizes revenue over time based on the progress towards complete satisfaction of the performance obligation, if there is a contractual claim for payment against the customer for the services already performed. The progress is mostly determined on the basis of the costs incurred, the time elapsed, and the milestones achieved as of the reporting date.

In the Healthcare and Life Science business sectors, a limited number of contracts provide for the out-licensing of intellectual property. In the Healthcare business sector, out-licensing agreements are usually not part of ordinary activities, meaning that the corresponding income is reported in other operating income (see Note (15) “Other operating income”).

Net sales from contracts comprising several separate performance obligations are recognized when the respective performance obligation has been fulfilled. This affects, in particular, the sale of goods in combination with services. Therefore, the transaction price is allocated beforehand to each performance obligation identified in the contract on a relative standalone selling price basis. To a limited extent, there are multiple-element contracts in the Life Science business sector.

Determining the transaction price

The Group grants its customers various kinds of rebates and discounts. These, as well as anticipated customer refund claims, state compulsory charges, and rebates from health plans and programs are deducted from sales. The most significant portion of these deductions from sales is attributable to the Healthcare business sector.

Sales deductions provided on the invoice as price-reducing items, which will likely be applied by customers when making the respective payments, are recognized as reductions of trade accounts receivable. Expected refunds, such as bonus payments, reimbursements for rights of return, or rebates from health plans and programs, are recognized in the separate item “refund liabilities” on the consolidated balance sheet.

The measurement of sales deductions and refund liabilities resulting from expected rebates and discounts considers the following:

  • past experience,
  • pricing information, and
  • expected product growth rates.

The measurement of sales deductions and refund liabilities resulting from rights of return considers the following:

  • historical return rates for individual product groups,
  • information from distributors on inventory levels, and
  • publicly available information on product sales from sector-specific service providers (Healthcare business sector).


Contractual payment terms

Given that the Group generates the large majority of its sales through transactions with simple structures, the company usually has an enforceable right to payment after the performance obligation has been fulfilled. The payment targets contractually agreed between the Group and its customers usually range between 30 and 60 days. For some service contracts, the company receives the contractually agreed consideration before the service is delivered; in such cases, the consideration received is presented as a contract liability on the consolidated balance sheet until the revenue has been recognized.

Practical expedients

The Group uses the practical expedient of IFRS 15 in which the promised amount of consideration is not adjusted for the effects of a significant financing component if the period between the fulfillment of a performance obligation and the payment by the customer amounts up to one year.

Significant discretionary decisions and sources of estimation uncertainty

Sales deductions

The measurement of sales deductions and the corresponding refund liabilities requires extensive estimates. Uncertainties exist concerning the extent to which past experience serves as reliable basis for estimating expected refunds in particular, such as bonus payments, reimbursements for rights of return, or rebates from health plans. External information from distributors and industry services outside of the Group’s control, which are also subject to uncertainty, are used to determine sales deductions.

Due to a lack of past experience, the estimate uncertainty referenced above is particularly relevant for product launches in the Healthcare business sector. Any changes in estimates of the parameters listed above have a cumulative impact on the net sales recognized in the respective adjustment period.

The following tables present a more detailed breakdown of net sales by business sector from contracts with customers. 

6.04 KBEXCEL
€ million/% 2019
Net sales by product type Healthcare Life Science Performance Materials Group
Goods 6,531 97% 5,972 87% 2,497 97% 15,000 93%
Equipment 7 397 6% 50 2% 454 3%
Services 100 2% 486 7% 25 1% 611 4%
License income 8 8
Commission income 18 2 1 21
Income from co-commercialization agreements 58 1% 58
Total 6,714 100% 6,864 100% 2,574 100% 16,152 100%
                 
Net sales by region (customer location)                
Europe 2,241 33% 2,277 33% 217 9% 4,735 29%
North America 1,474 22% 2,474 36% 267 10% 4,214 26%
Asia-Pacific 1,816 27% 1,743 26% 2,041 79% 5,599 35%
Latin America 702 11% 278 4% 32 1% 1,012 6%
Middle East and Africa 482 7% 92 1% 17 1% 591 4%
Total 6,714 100% 6,864 100% 2,574 100% 16,152 100%
5.97 KBEXCEL
2018  
€ million/%  
Net sales by product type Healthcare Life Science Performance Materials Group
Goods 6,085 98% 5,413 87% 2,404 100% 13,902 94%
Equipment 4 343 6% 347 2%
Services 84 1% 424 7% 2 510 4%
License income 4 4
Commission income 14 1 15
Income from co-commercialization agreements 58 1% 58
Total 6,246 100% 6,185 100% 2,406 100% 14,836 100%
                 
Net sales by region (customer location)                
Europe 2,203 35% 2,136 35% 220 9% 4,559 31%
North America 1,432 23% 2,173 35% 214 9% 3,818 26%
Asia-Pacific 1,501 24% 1,532 25% 1,932 80% 4,965 33%
Latin America 661 11% 256 4% 32 2% 950 6%
Middle East and Africa 448 7% 88 1% 8 544 4%
Total 6,246 100% 6,185 100% 2,406 100% 14,836 100%

The following tables present a breakdown of net sales by key product lines/products:

5.31 KBEXCEL
Healthcare
         
€ million/% 2019 2018
Oncology 1,030 15% 944 15%
thereof: Erbitux® 871 13% 816 13%
thereof: Bavencio® 103 2% 69 1%
Neurology & Immunology 1,594 24% 1,529 24%
thereof: Rebif® 1,273 19% 1,438 23%
thereof: Mavenclad® 321 5% 90 1%
Fertility 1,247 19% 1,162 19%
thereof: Gonal-f® 743 11% 708 11%
General Medicine & Endocrinology 2,557 38% 2,341 38%
thereof: Glucophage® 877 13% 733 12%
thereof: Concor® 530 8% 475 8%
thereof: Euthyrox® 402 6% 363 6%
thereof: Saizen® 238 4% 234 4%
Other 287 4% 270 4%
Total 6,714 100% 6,246 100%
4.4 KBEXCEL
Life Science
         
€ million/% 2019 20181
Process Solutions 3,003 44% 2,543 41%
Research Solutions 2,176 32% 2,046 33%
Applied Solutions 1,685 24% 1,596 26%
Total 6,864 100% 6,185 100%
1 Previous year’s figures have been adjusted due to an internal realignment.        
4.34 KBEXCEL
Performance Materials
         
€ million/% 2019 2018
Display Solutions 1,256 49% 1,332 55%
Semiconductor Solutions 848 33% 596 25%
Surface Solutions 468 18% 476 20%
Other 2 1
Total 2,574 100% 2,406 100%

Group net sales stood at € 16,152 million in fiscal 2019 (2018: € 14,836 million), out of which € 683 million (2018: € 557 million) was recognized over time. This related mainly to net sales from services and from customer-specific equipment in the Life Science business sector.

The table below shows future net sales from concluded contracts:

9.31 KBEXCEL     
       
Year of expected revenue ­
recognition
€ million 2020 2021 or later ­
fiscal years
Total
As of­
Dec. 31, 2019
2,018 145 2,163
       
       
Year of expected revenue ­
recognition
€ million 2019 2020 or later ­
fiscal years
Total
As of­
Dec. 31, 2018
1,605 174 1,779

The increase in comparison with 2018 resulted, in particular, from additions due to the first-time consolidation of Versum Materials, Inc., United States, and from the positive business performance in the Life Science business sector.

The following table shows the change in refund liabilities:

5.09 KBEXCEL   
2019
           
Rebates/bonus payments Rights of return
€ million Total thereof: United States Total thereof: United States Total
Jan. 1, 2019 423 274 49 31 472
Additions 1,488 1,145 36 23 1,524
Utilizations -1,344 -1,067 -41 -25 -1,385
Cumulative increase (-)/decrease (+) in net sales -44 -43 -2 -46
thereof: attributable to performance obligations satisfied in prior periods -43 -43 -2 -45
Currency translation difference 8 6 1 1 9
Reclassification to assets held for sale
Changes in scope of consolidation/other -9 -9
Dec. 31, 2019 522 315 43 29 565
5.08 KBEXCEL   
2018
           
Rebates/bonus payments Rights of return
€ million Total thereof: United States Total thereof: United States Total
Jan. 1, 2018 379 244 52 32 431
Additions 1,273 951 44 23 1,317
Utilizations -1,193 -902 -43 -22 -1,235
Cumulative increase (-)/decrease (+) in net sales -31 -30 -3 -3 -34
thereof: attributable to performance obligations satisfied in prior periods -25 -24 -3 -3 -28
Currency translation difference 12 12 1 1 13
Reclassification to assets held for sale -16 -3 -19
Changes in scope of consolidation/other -1 -1
Dec. 31, 2018 423 274 49 31 472

The development of contract assets and contract liabilities is shown in Note (25) “Contract assets” and in Note (28) “Other non-financial liabilities”.

(12) Cost of sales

Accounting and measurement policies

Cost of sales primarily includes the cost of manufactured products sold as well as the merchandise sold.

Cost comprises the following items: directly attributable costs, such as cost of materials, personnel, and energy costs, depreciation and amortization, overheads attributable to the production process, inventory impairment losses and their reversals.

Cost of sales included amortization of intangible assets (excluding amortization of internally generated or separately acquired software) in the amount of € 188 million (2018: € 175 million). Material costs in 2019 amounted to € 2,743 million (2018: € 2,598 million) and were largely reported under cost of sales.

(13) Marketing and selling expenses

Accounting and measurement policies

Marketing and selling expenses within logistics costs also include expenses for transportation services performed on behalf of customers. The corresponding income from these services is presented under net sales.

Amortization of the intangible assets under marketing and selling expenses is mainly attributable to customer relationships, marketing authorizations, licenses and similar rights, brands, and trademarks, which can be functionally allocated to Marketing and Selling.

Marketing and selling expenses comprised the following items:

4.41 KBEXCEL
€ million 2019 20181
Sales force -954 -913
Internal sales services -845 -808
Sales promotion -521 -509
Logistics -794 -702
Amortization of intangible assets2 -923 -975
Royalty and license expenses -200 -213
Other marketing and selling expenses -339 -276
Marketing and selling expenses -4,576 -4,396
1 Previous year’s figures have been adjusted, see Note (45) “Effects from new accounting standards and other presentation changes”.
2 Excluding amortization of internally generated or separately acquired software.

Of royalty and license expenses, € 41 million (2018: € 84 million) related to the commercialization of Erbitux® in Japan, and € 68 million (2018: € 53 million) to the license expenses for Glucophage® in China with the distribution partner Bristol-Myers Squibb, Company, United States.

(14) Research and development costs

Accounting and measurement policies

The item comprises the costs of the Group’s own research and development departments, the expenses incurred as a result of research and development collaborations as well as the costs of clinical trials in the Healthcare business sector (both before and after approval is granted).

Development costs are capitalized as soon as the relevant criteria in accordance with IAS 38 have been fulfilled (see Note (19) “Other intangible assets”).

Cost reimbursements for research and development are offset against research and development costs.

The net income from repayments of subsidies received and reimbursements recognized within research and development costs came to € 99 million in 2019 (2018: net expenses of € 1 million). This income comprised reimbursements from governmental institutions as well as repayments of previously recognized governmental subsidies. In total, this resulted in net income amounting to € 5 million (2018: net expenses of € 4 million). The increase in reimbursements recognized was mainly due to the strategic alliance with GlaxoSmithKline plc, United Kingdom, in the field of immuno-oncology (see Note (6) “Collaboration agreements”).

(15) Other operating income

Accounting and measurement policies

Other operating income comprises all income that cannot be allocated to net sales or finance income on account of its character.

Income from up-front payments, milestone payments, and royalties

Revenue from upfront and milestone payments, royalties, and license payments comprises considerations the Group receives from companies that do not represent customers. This relates, in particular, to collaboration and out-licensing agreements in the Healthcare business sector (see Note (6) “Collaboration agreements”).

Considerations received within the scope of collaboration agreements are usually recognized over time in other operating income.

The granting of a license in most out-licensing agreements in the Healthcare business sector constitutes a distinct performance obligation that must usually be recognized at a point in time. Due to the uncertainty of development results and regulatory events, the recognition of contingent consideration usually does not take place until the result in question has materialized. In principle, sales-based and usage-based royalties are recognized only after the contract partner makes the corresponding sales or uses the intellectual property.

Income from the revaluation of contingent considerations

The accounting treatment of contingent consideration agreed at the sale of a business as defined in IFRS 3 is shown in Note (36) “Other financial assets”.

Other operating income was broken down as follows:

4.23 KBEXCEL
€ million 2019 2018
Up-front payments, milestone payments, and royalties 557 368
Income from the disposal of businesses and non-current assets 44 83
Reversal of provisions for litigation 18 21
Income from the revaluation of contingent considerations 8 1
Income from miscellaneous services 3 15
Reversals of impairment losses on non-financial assets
Remaining other operating income 84 138
Other operating income 715 627

Revenue from upfront and milestone payments, royalties, and license payments amounting to € 557 million (2018: € 368 million) resulted, in particular, from the collaboration agreements with Pfizer Inc., United States, (2019: € 281 million / 2018: € 191 million) and GlaxoSmithKline plc, United Kingdom (2019: € 92 million / 2018: € 0 million). For further explanations see Note (6) “Collaboration agreements”. Furthermore, milestone payments of € 75 million were received for the regulatory approval of the drug candidate Palynziq™, which was sold to BioMarin Pharmaceutical Inc., United States, in 2016. License income was mainly due to a license granted for interferon beta products (Biogen Inc., United States), which amounted to € 89 million (2018: € 79 million).

The income from the disposal of businesses and non-current assets was largely attributable to the sale of an office building in Latin America and the sale of a drug candidate in the oncology business. The income in 2018 was related to the out-licensing of two DNA-dependent protein kinase (DNA-PK) inhibitors and another preclinical compound used in gene editing for six defined genetic diseases to Vertex Pharmaceuticals Incorporated, United States. Furthermore, in 2018 the Group recognized gains from the transfer of exclusive rights regarding the development of T cell-based therapies using chimeric antigen receptors (CAR-T) to the Intrexon Corporation, United States, and from the termination of a license agreement in China.

Other operating income resulted, among other things, from service contracts in connection to the divestment of the Consumer Health business in 2018. Income in the previous year included a mid double-digit million euro amount in return for waiving rights to an anti-PD-1 antibody, which had previously been included in the strategic alliance with Pfizer Inc., United States.

(16) Other operating expenses

Accounting and measurement policies

Other operating expenses comprise all expenses that cannot be reasonably allocated to a functional cost type or finance costs.

The breakdown of other operating expenses was as follows:

4.71 KBEXCEL
€ million 2019 20181
Project expenses (including integration and IT projects) -112 -25
Currency differences from operating activities -98 -62
Profit share agreements -60 -46
Litigation -60 -74
Non-income related taxes -55 -53
Impairment losses on non-financial assets -42 -58
Premiums, fees, and contributions -33 -35
Restructuring expenses -24
Expenses for miscellaneous services -16 -23
Expenses for disposal of businesses and non-current assets -14 -6
Expenses for the revaluation of contingent considerations -8 -39
Remaining other operating expenses -212 -153
Other operating expenses -735 -575
1 Previous year’s figures have been adjusted, see Note (45) “Effects from new accounting standards and other presentation changes”.

Project expenses of € 112 million (2018: € 25 million) were primarily incurred on advisory services in the context of the acquisition of Versum Materials, Inc. and on the global harmonization of the IT landscape.

Profit share expenses amounting to € 60 million (2018: € 46 million) were essentially incurred in connection with collaboration agreements in the field of immuno-oncology (see Note (6) “Collaboration agreements”).

Information on litigation expenses is included in Note (26) “Other provisions”.

Impairments of non-financial assets in the amount of € 33 million (2018: € 40 million) were attributable to intangible assets (see Note (19) “Other intangible assets”) and in the amount of € 8 million (2018: € 18 million) to property, plant and equipment (see Note (20) “Property, plant and equipment”).

Restructuring expenses amounting to € 24 million (2018: € 0 million) included functionally unallocatable expenses in connection with reorganizational measures in all three business sectors.

The expenses for disposal of businesses amounting to € 14 million (2018: € 6 million) resulted primarily from the adjustment of the result on disposal of the flow cytometry business sold in 2018 (see Note (5) “Acquisitions and divestments”).

Remaining other operating expenses included, among others, special environmental protection costs as well as personnel expenses not allocated to the functional areas. This item also included the expense for donations of Cesol® 600 tablets containing the active ingredient praziquantel to the World Health Organization (WHO) and expenses for insurance services.

(17) Income tax

Accounting and measurement policies

Current income taxes

Current income taxes for the reporting period and for prior periods are calculated in the amounts that the tax authorities are expected to demand or reimburse. The calculation is based on the entity-specific tax rate applicable in the relevant tax year.

Uncertain income tax claims and liabilities

Assessments relating to specific matters are made to calculate uncertain income tax claims and liabilities. If it is considered likely that an uncertain income-tax treatment will be accepted by the tax authority, the matter will be taken into account on the basis of the applied or planned income-tax treatment. If it is considered unlikely that the tax authority will accept a past or planned income-tax treatment, the uncertain tax assets or uncertain tax liabilities in question are valued at the most likely amount. Uncertain income tax liabilities are disclosed within income tax liabilities. Expected income-tax-related penalties and interest that do not fall within the scope of IAS 12 are treated as provisions.

Deferred taxes

Deferred tax assets resulting from deductible temporary differences, tax credits, and tax loss (and interest) carryforwards are recognized if it is considered likely that taxable profit will be available in the future to apply such tax assets.

Recognition of deferred tax assets requires an estimate of the probability of future use. The influencing factors considered as part of this assessment include the following:

  • temporary differences subject to taxation in the future,
  • results history,
  • results planning, and
  • existing tax planning of the respective Group company.

Deferred tax liabilities are recognized for projected dividend payments of subsidiaries. If no dividend payments are projected in the foreseeable future, no deferred tax liability is recognized for the difference between proportional equity and the investment value determined for tax purposes.

Significant discretionary decisions and sources of estimation uncertainty

The calculation of the reported assets and liabilities from current and deferred income taxes requires extensive discretionary judgments, assumptions, and estimates.

When assessing income tax claims and liabilities, the interpretation of tax provisions may be subject to particular uncertainty. The possibility that the relevant tax authorities will take a different view concerning the correct application and interpretation of tax standards cannot be ruled out. Changes to the assumptions underlying the correct interpretation of tax standards, for example as a result of changes in legislation, affect the accounting treatment of uncertain income tax assets and liabilities in fiscal 2019.

Regarding deferred tax items, there were degrees of uncertainty concerning the date on which an asset is realized or a liability settled and concerning the tax rate applicable on this date. This applies in particular to deferred taxes recognized in the course of acquisitions.

Assessing the recoverability, particularly of tax credits and tax loss and interest carryforwards, requires assumptions and estimates concerning the future taxable income of the respective Group company.

Assessing the extent to which a subsidiary’s planned dividend distribution is probable in the foreseeable future is discretionary.

Income taxes in the consolidated income statement were as follows:

3.91 KBEXCEL
€ million 2019 2018
Current income taxes in the period -834 -579
Income tax for previous periods -59 -79
Deferred taxes in the period 453 290
Income tax -440 -368
Tax reconciliation

The following table presents the reconciliation from the theoretical income tax expense to the income tax expense according to the consolidated income statement. The theoretical income tax expense is determined by applying the statutory tax rate of a corporation headquartered in Darmstadt of 31.7% (2018: 31.7%).

4.51 KBEXCEL
€ million 2019 2018
Profit before income tax 1,735 1,461
     
Corporate tax rate 31.7% 31.7%
Theoretical income tax expense -550 -463
Tax rate differences 192 150
Tax effect of companies with a negative contribution to consolidated profit -26 -37
Income tax relating to other periods -59 -79
Tax credits -17 52
Tax effect on tax loss carryforwards 16 34
Tax effect of non-deductible expenses/
tax-free income/other tax effects
4 -25
Income tax expense according to consolidated income statement -440 -368
     
Tax ratio according to consolidated income statement 25.4% 25.2%

Income taxes consisted of corporation and trade taxes for the companies domiciled in Germany as well as comparable income taxes for foreign companies. Income taxes relating to other periods recognized in fiscal 2019 resulted mainly from completed tax audits and mutual agreement procedures as well as from additions to liabilities for risks from tax audits.

Deferred taxes according to consolidated income statement

The reconciliation between deferred taxes on the consolidated balance sheet and deferred taxes on the consolidated income statement is presented in the following table:

4.14 KBEXCEL
€ million 2019 2018
Change in deferred tax assets (consolidated balance sheet) 330 -15
Change in deferred tax liabilities (consolidated balance sheet) -540 201
Change from reclassification of the discontinued Consumer Health operation -30
Deferred taxes credited/debited to equity -67 -2
Changes in scope of consolidation/currency translation/other 730 135
Deferred taxes according to consolidated income statement 453 290

The item “changes in scope of consolidation/currency translation/other” mainly includes deferred tax effects resulting from the acquisition of Versum Materials, Inc., United States (see Note (5) “Acquisitions and divestments”). In the prior year, this item essentially comprised exchange rate effects between the euro and the U.S. dollar.

Changes in tax loss carryforwards

Tax loss carryforwards were structured as follows:

4.77 KBEXCEL
Dec. 31, 2019 Dec. 31, 2018
€ million Germany Outside Germany Total Germany Outside Germany Total
Tax loss carryforwards 57 1,168 1,225 118 1,069 1,187
Tax loss carryforwards for which a deferred tax asset is recognized 198 198 59 152 211
Tax loss carryforwards for which no deferred tax asset is recognized 57 970 1,027 59 917 976
             
Potential deferred tax assets for tax loss carryforwards 17 270 287 27 254 281
Recognized deferred tax assets on tax loss carryforwards 27 27 9 24 33
Not recognized deferred tax assets on tax loss carryforwards 17 243 260 18 230 248

The majority of the tax loss carryforwards either has no expiry date or can be utilized for up to 20 years. In 2019, the income tax expense was reduced by € 16 million (2018: € 34 million) due to the utilization of tax loss carryforwards from prior years for which no deferred tax asset had been recognized in previous periods.

Deferred taxes according to consolidated balance sheet

Deferred tax assets and liabilities corresponded to the following balance sheet items:

5.1 KBEXCEL
Dec. 31, 2019 Dec. 31, 2018
€ million Assets Liabilities Assets Liabilities
Intangible assets 141 1,968 119 1,479
Property, plant and equipment 25 119 34 84
Financial assets 6 1 12 3
Inventories 657 17 564 18
Receivables/other assets 29 6 25 5
Provisions for pensions and other post-employment benefits 546 6 454 37
Other provisions 212 24 236 66
Liabilities 93 6 67 12
Tax loss carryforwards 27 33
Tax credits/other 73 71 60 98
Deferred taxes (before offsetting) 1,811 2,217 1,606 1,803
Offset deferred tax assets and liabilities -390 -390 -515 -515
Deferred taxes according to consolidated balance sheet 1,421 1,828 1,091 1,288

The rise in deferred tax liabilities is essentially attributable to the recognition of intangible assets originating from the purchase price allocation in connection with the acquisition of Versum Materials, Inc., United States (see Note (5) “Acquisitions and divestments”). Deferred tax assets in 2019 rose mainly as a result of the change in interim profits on inventories from Group-internal transactions and higher temporary measurement differences for pension obligations.

Deferred tax liabilities from outside basis differences for planned dividend payouts were recorded in the amount of € 9 million (December 31, 2018: € 30 million). Temporary differences relating to the retained earnings of subsidiaries, for which no deferred taxes are recognized, amounted to € 10,238 million as of December 31, 2019 (December 31, 2018: € 9,934 million). 

Income tax receivables and income tax liabilities

Income tax receivables amounted to € 600 million (December 31, 2018: € 460 million). Of this figure, € 11 million (December 31, 2018: € 0 million) are disclosed in other non-current non-financial assets. Income tax receivables resulted primarily from tax prepayments that exceeded the actual amount of tax payable for 2019 and prior fiscal years as well as from refund claims for prior years. As of December 31, 2019, income tax liabilities, including liabilities for uncertain tax obligations, amounted to € 1,402 million (December 31, 2018: € 1,187 million). The figure consists of current and non-current income tax liabilities. As of December 31, 2019, there were no non-current income tax liabilities (December 31, 2018: € 11 million).