(41) Financing cash flow
Accounting and measurement policies
Financing cash flow
The option to recognize dividend payments and profit withdrawals in the cash flows from financing activities is exercised in determining the cash flows from financing activities.
Furthermore, the net reporting option has been exercised to report cash receipts and payments for items in which the turnover is quick, the amounts large, and the maturities short. This primarily relates to rolling financing by way of commercial paper and short-term bank loans reported under “Payments from new borrowings of other current and non-current financial debt” and “Repayment of other current and non-current financial debt”.
The change in financial debt was as follows:
|
|
|
|
Cash |
|
Non-cash |
|
|
|
|
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Jan. 1, 2022 |
|
Cash inflows |
|
Repayments |
|
Lease interest |
|
Change in lease liabilities |
|
Exchange rate effects |
|
Fair value adjustment |
|
Other |
|
Changes in scope of consolidation |
|
Dec. 31, 2022 |
Bonds |
|
9,320 |
|
995 |
|
-1,661 |
|
– |
|
– |
|
86 |
|
– |
|
-13 |
|
– |
|
8,726 |
Financial liabilities to E. Merck KG, Darmstadt, Germany, and E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany |
|
894 |
|
1,637 |
|
-1,613 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
918 |
Other current and non-current financial liabilities |
|
586 |
|
1,281 |
|
-1,938 |
|
-12 |
|
187 |
|
11 |
|
663 |
|
– |
|
7 |
|
784 |
Financial debt |
|
10,801 |
|
3,912 |
|
-5,212 |
|
-12 |
|
187 |
|
97 |
|
663 |
|
-13 |
|
7 |
|
10,428 |
Derivative assets (current and |
|
-37 |
|
711 |
|
– |
|
– |
|
– |
|
– |
|
-691 |
|
– |
|
– |
|
-16 |
|
|
|
|
Cash |
|
Non-cash |
|
|
|
|
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Jan. 1, 2021 |
|
Cash inflows |
|
Repayments |
|
Lease interest |
|
Change in lease liabilities |
|
Exchange rate effects |
|
Fair value adjustment |
|
Other |
|
Changes in scope of consolidation |
|
Dec. 31, 2021 |
Bonds |
|
9,442 |
|
– |
|
-317 |
|
– |
|
– |
|
185 |
|
– |
|
10 |
|
– |
|
9,320 |
Financial liabilities to E. Merck KG, Darmstadt, Germany |
|
816 |
|
471 |
|
-393 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
894 |
Other current and non-current financial liabilities |
|
1,885 |
|
388 |
|
-2,303 |
|
-10 |
|
151 |
|
-41 |
|
517 |
|
– |
|
– |
|
586 |
Financial debt |
|
12,142 |
|
859 |
|
-3,013 |
|
-10 |
|
151 |
|
144 |
|
517 |
|
10 |
|
– |
|
10,801 |
Derivative assets (current and non-current) |
|
-26 |
|
407 |
|
– |
|
– |
|
– |
|
– |
|
-418 |
|
– |
|
– |
|
-37 |
The item “Financial liabilities in respect of E. Merck KG, Darmstadt, Germany” reported in the previous year was expanded in the year under review to include financial liabilities in respect of E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany, in order to recognize the loan granted by E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany, for the first time. Interest payments for leases were recognized in operating cash flow but served as a reconciliation item in the above table as they were a component of financial liabilities. Changes in lease liabilities included additions and retirements of right-of-use from leases and the effects from unwinding of the discount on lease liabilities.
Fair value adjustments of other current and non-current financial liabilities were attributable to liabilities from derivatives. In the consolidated cash flow statement, cash changes of assets from derivatives of € 711 million (2021: € 407 million) were reported together with repayments of other current and non-current financial debt of € 1,938 million (2021: € 2,303 million) in the item “Repayments of other current and non-current financial debt” with a net amount of € 1,227 million (2021: € 1,896 million). In the above reconciliation, changes of assets from derivatives were reported separately, as they did not form part of financial liabilities.
The amount of unused credit lines that could be employed for future operating activities and to meet obligations and information on changes in financial debt can be found in Note (37) “Financial debt/Capital management”.