Merck 2008 Annual Report Download - page 140

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[47] Companies opting for exemption under Section 264 (3) of the German Commercial Code
The following companies, which have been consolidated in these financial statements,
have opted for exemption under Section 264 (3) of the German Commercial Code:
Merck Pharma GmbH, Darmstadt
Chemische Fabrik Lehrte Dr. Andreas Kossel GmbH, Lehrte
Merck Selbstmedikation GmbH, Darmstadt
Serono GmbH, Darmstadt
[48] Related-party disclosures
Related parties in respect of the Merck Group are E. Merck KG as well as the companies
Emanuel Merck Vermögens KG and E. Merck Beteiligungen KG (until and including
December 31, 2008: E. Merck Beteiligungen OHG). In principle, direct or indirect sub-
sidiaries of Merck KGaA, associates and joint ventures of the Merck Group as well as
pension funds that are classified as funded defined benefit plans in accordance with
IAS 19, are also related parties within the meaning of IAS 24. Members of the Execu-
tive Board and the Supervisory Board of Merck KGaA, the Board of Management and
the Board of Partners of E. Merck KG as well as close members of their families are
also related parties.
As of December 31, 2008, there were liabilities by Merck KGaA and Merck & Cie KG,
Altdorf, to E. Merck KG in the amount of € 332.8 million (2007: € 626.6 million). In
addition, Merck KGaA was owed receivables in the amount of € 18.0 million (2007:
€ 20.8 million) by E. Merck KG as of December 31, 2008. The balances result mainly
from the profit transfers by Merck & Cie to E. Merck KG, the reciprocal profit transfers
between Merck KGaA and E. Merck KG, as well as the extension of loans by E. Merck
KG to Merck KGaA as well as the extension of loans by Merck KGaA to E. Merck KG.
These financial payables of € 98.2 million (2007: € 93.5 million) are subject to stan-
dard market interest rates. From January to December 2008, Merck KGaA performed
services for E. Merck KG with a value of € 1.2 million (2007: € 1.1 million). In exchange,
E. Merck KG performed services for Merck KGaA with a value of € 0.5 million (2007:
€ 0.5 million). As of December 31, 2008, Merck KGaA had receivables from E. Merck
Beteiligungen KG in the amount of € 4.5 million (2007: € 5.8 million). From January
to December 2008, Merck KGaA and Merck Shared Services Europe GmbH performed
services for E. Merck Beteiligungen KG with a value of € 0.5 million (2007: € 0.3 million).
In addition, Merck KGaA performed services for Emanuel Merck Vermögens KG with a
value of € 0.1 million (2007: € 0.1 million).
Business transactions with major subsidiaries have been eliminated during consoli-
dation and are not disclosed further in the Notes. Information on pension funds that
are classified as funded defined-benefit plans in accordance with IAS 19 can be found
under Provisions for pensions and other post-employment benefits of the Notes. There
were no further material transactions with these pension funds.
From January to December 2008, companies of the Merck Group supplied goods with
a value of € 0.3 million (2007: € 3.9 million) to associates. During the same period,
associates provided no services to companies of the Merck Group (2007: € 5.2 million).
There were no further material transactions with associates.
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
135