Audi 2010 Annual Report Download - page 237

235
Consolidated Financial
Statements
184 Income Statement
185 Statement of Recognized
Income and Expense
186 Balance Sheet
187 Cash Flow Statement
188 Statement of Changes in Equity
Notes to the Consolidated
Financial Statements
190 Development of fixed assets
in the 2010 fiscal year
192 Development of fixed assets
in the 2009 fiscal year
194 General information
200 Recognition and
measurement principles
207 Notes to the Income Statement
214 Notes to the Balance Sheet
223 Additional disclosures
242 Events occurring subsequent
to the balance sheet date
243 Statement of Interests
held by the Audi Group
35 Cash Flow Statement
The Cash Flow Statement details the payment streams for both the 2010 fiscal year and the
previous year, categorized according to cash used and received for operating, investing and
financing activities. The effects of changes in foreign exchange rates on cash flows are presented
separately.
Cash flow from operating activities includes all payment streams in connection with ordinary
activities and is presented using the indirect calculation method. Starting from the profit before
profit transfer and tax, all income and expenses with no impact on cash flow (mainly write-downs)
are excluded.
Cash flow from operating activities included payments for interest received amounting to
EUR 98 (292) million and for interest paid amounting to EUR 19 (25) million. The Audi Group
received dividends and profit transfers totaling EUR 173 (91) million in 2010. The income tax
payments item substantially comprises payments made to Volkswagen AG, Wolfsburg, on the
basis of the single-entity relationship for tax purposes in Germany, as well as payments to foreign
tax authorities.
Cash flow from investing activities includes capitalized development costs as well as additions
to other intangible assets, property, plant and equipment, long-term investments and non-
current loans extended. The proceeds from the disposal of assets, the proceeds from the sale of
shares, and the change in securities and fixed deposits are similarly reported in cash flow from
investing activities.
The purchase of participating interests resulted in a cash outflow of EUR 208 (42) million,
mainly due to the acquisition of Italdesign Giugiaro S.p.A., Turin (Italy), and a stake in
FC Bayern München AG, Munich. The change in cash and cash equivalents due to first-time
consolidations was offset against the purchase prices.
Cash flow from financing activities includes cash used for the transfer of profit, as well as
changes in financial liabilities.
Capital transactions with minorities related to the acquisition, with an effect on cash, of
AUDI BRUSSELS S.A./N.V., Brussels (Belgium).
The changes in the Balance Sheet items that are presented in the Cash Flow Statement cannot
be derived directly from the Balance Sheet because the effects of currency translation and of
changes in the group of consolidated companies do not affect cash and are segregated.
36 Contingencies
Contingencies are unrecognized contingent liabilities whose amount corresponds to the maxi-
mum possible use as of the balance sheet date.
EUR million Dec. 31, 2010 Dec. 31, 2009
Liabilities from guarantees 39 54
Furnishing of collateral for outside liabilities 49 108
Total 89 162
37 Litigation
Neither AUDI AG nor any of its Group companies are involved in ongoing or prospective legal or
arbitration proceedings which could have a significant influence on their economic position.
Appropriate provisions have been created within each Group company, or adequate insurance
benefits are anticipated, for potential financial charges resulting from other legal or arbitra-
tional proceedings.
38 Change of control agreements
Change of control clauses are contractual agreements between a company and third parties to
provide for legal succession should there be a direct or indirect change in the ownership struc-
ture of any party to the contract.
The main contractual agreements between the Audi Group and third parties do not contain any
change of control clauses in the event of a change in the ownership structure of AUDI AG or its
subsidiaries.