Merck 2014 Annual Report Download - page 237

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232 CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
The cash flow statement has been prepared in accordance with
IAS7 “Statement of Cash Flows”. It presents the changes in cash
and cash equivalents as a result of cash inflows and outflows in
the year under review. Further information on cash flows can be
found in the explanation of cash and cash equivalents (see Note
[35]). The amount of undrawn borrowing facilities that could be
tapped for future operating activities and to meet obligations is
disclosed in Note [44].
The cash flows reported by Group companies in non- functional
currencies are translated at average exchange rates. Cash and cash
equivalents are translated at the closing rates. The impact of foreign
exchange rate changes is disclosed separately under changes in
cash and cash equivalents.
Within the cash flows from investing activities reclassifica-
tions were made with the aim of a clearer and more understand-
able presentation. The 2013 figures were correspondingly adjusted.
(53) NET CASH FLOWS FROM OPERATING
ACTIVITIES
In 2014, tax payments totaled €667.8 million (2013: €491.4 mil-
lion). Tax refunds totaled € 54.9 million (2013: €85.9 million).
Interest paid totaled €191.1 million (2013: €248.3 million). Inter-
est received amounted to €89.4 million (2013: €89.5 million).
Within the scope of a Contractual Trust Arrangement in Germany,
€200.0 million was transferred to Merck Pensionstreuhand e. V.,
Darmstadt,
(trustee) in 2013. This led to a corresponding decline
in pension provisions and to a decrease in cash flows from oper-
ating activities. No transfers were made in 2014.
The changes in provisions during the reporting period were
affected by the written settlement reached with Israel Bio-
Engineering Limited Partnership (IBEP). The changes in other
assets and liabilities included the upfront payment in the amount
of US$850 million (€678.3 million) paid in cash by Pfizer Inc.,
USA, after the agreement had been entered into (see Note [5]).
Net cash flows from operating activities broken down by the
segments of the Group are disclosed in Note [51].
(54) NET CASH FLOWS FROM INVESTING
ACTIVITIES
A total of €4,562.6 million was used for acquisitions and invest-
ments in financial assets (2013: €990.3 million). Of this amount,
€1,419.3 million was attributable to the acquisition of AZ Elec-
tronic Materials S.A., Luxembourg. Net cash outflows from invest-
ments in current and non-current assets amounting to €3,143.3
million (2013: €975.2 million) mainly resulted from the purchase
of current financial assets.
In 2014, cash inflows from disposals of other current financial
assets amounted to €3,508.6 (2013: €372.1 million). In 2013,
cash inflows of €251.1 million were attributable to the sale of the
Biopharmaceuticals division’s site in Geneva, Switzerland.