Merck 2010 Annual Report Download - page 24

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in EUR million
1,200
800
400
0
2006* 2007 2008 2009 2010
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Chemicals Pharmaceuticals Corporate and Other
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Exceptional items include the gain on the sale of Théramex amounting to EUR 69 million.
Further information on this can be found in the Notes under “Scope of consolidation”.
In connection with the legal risk of our former subsidiary Dey Inc., USA, having allegedly
reported false price information, a settlement was reached with the U.S. Department of Justice
in 2010. The resulting expenses of EUR 67 million were recorded under exceptional items.
Although Dey Inc. was transferred to Mylan Inc., USA, within the scope of the divestment of
the Generics business in 2007, Merck remains liable to Mylan for the costs of this litigation.
Additional expenses amounting to EUR 1 million relate to the sale of the Electronic Chemicals
business in 2005 and include a purchase price reimbursement to the buyer for subsequent
taxes. Moreover, this item includes transaction costs of EUR 1 million for the planned sale
of the Crop BioScience business. The transaction, which is subject to antitrust clearance, is
expected to close in 2011.
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The financial result showed an expense balance of EUR 252 million compared to EUR 134 million
in 2009. The marked increase was due mainly to interest expenses for the financing of the Millipore
acquisition.
Adjusted for exceptional items, the tax rate was 25.3%, compared to 21.6% in 2009. It should
be noted that the capitalization of deferred tax assets on tax loss carryforwards had favorable
one-time effects on the tax rate in 2009. Profit after tax amounted to EUR 642 million, which
is 70% more than in 2009.
Profit after tax up 70%
Merck Annual Report 2010 20