(16) Net cash flows from operating activities
Accounting and measurement policies
Net cash flows from operating activities
The calculation and presentation of cash flows from operating activities are based on the following principles:
- The presentation of cash flows from operating activities is determined using the indirect method based on the profit after taxes.
- The option to recognize interest received and interest payments made is exercised to the extent that such transactions are recognized in cash flow from operating activities.
- Tax payments are generally presented in the cash flow from operating activities. Only significant transactions where the associated tax payments can be practically calculated are recognized in the relevant item of the consolidated cash flow statement.
Tax payments totaled € 1,006 million in fiscal 2020. Tax payments amounted to € 1,018 million in the previous year, of which € 130 million was attributable to cash flows from investing activities in connection with the divestment of the Consumer Health business. Tax refunds amounted to € 140 million (2019: € 160 million).
Interest paid totaled € 340 million (2019: € 316 million). Interest received amounted to € 11 million (2019: € 60 million).
The change in provisions in fiscal 2020 was largely due to the reversal of the provision for the patent dispute with Biogen Inc., United States (see Note (27) “Other provisions”).
The decline in changes in other assets and liabilities was due to the end of the recognition in profit or loss of the initial consideration for the strategic alliance with Pfizer, Inc., United States (see Note (7) “Collaboration agreements”).