Merck 2008 Annual Report Download - page 128

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Notes to the segment reporting
The classification of asset and income figures as well as of other key figures by busi-
ness sector or by region in accordance with IAS 14 is presented in Segment Reporting.
Segmentation was performed in accordance with the internal reporting of the Merck
Group. The financial result and taxes on income are allocated in full in the Corporate
and Other segment. The operating segments are described in detail in the chapter about
the divisions in this Annual Report.
Transfer prices for intragroup sales are determined on an arm’s-length basis. There
were no significant intercompany relations between the business segments. In the
Segment Reporting, the United States and Canada are combined to form a single region
North America, as the two countries are managed as a single territory in the Merck
Group’s internal reporting.
The reconciliation of operating assets included in Segment Reporting is as follows:
€ million
Dec. 31,
2008
Dec. 31,
2007
Assets 15,644.7 14,922.3
Monetary assets (cash and equivalents, loans, securities) –895.7 –1,020.5
Non-operating receivables, tax receivables, deferred taxes
and accruals and deferred pension payments –664.2 –567.0
Trade accounts payable –843.7 –646.9
Other operating liabilities –472.9 –481.1
Operating assets of discontinued operations – –26.9
Operating assets 12,768.2 12,179.9
The Merck Serono division accounted for € 0.7 million (2007: € 0.3 million) and the
Performance & Life Science Chemicals division for € 0.2 million (2007: € 0.2 million)
of the investment result disclosed in the income statement. Losses of € 0.8 million
were attibutable to the segment Corporate and Other in 2008 (2007: € 0.2 million).
72 Income Statement
73 Balance Sheet
74 Segment Reporting
CONSOLIDATED FINANCIAL STATEMENTS OF THE MERCK GROUP
76 Cash Flow Statement
77 Free Cash Flow
77 Statement of Recognized
Income and Expense
78 Statement of Changes
in Net Equity including
Minority Interest
79 Notes
123