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Notes to the Consolidated Cash Flow Statement

The consolidated cash flow statement presents the changes in cash and cash equivalents as a result of cash inflows and outflows from operating, investing and financing activities. Further information on cash flows can be found in the explanation of cash and cash equivalents (see Note [24] “Cash and cash equivalents”). The amount of undrawn borrowing facilities that could be tapped for future operating activities and to meet obligations is disclosed in Note [28] “Financial liabilities / Capital management”.

The cash flows reported by Group companies in non-functional currencies are in principle 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 net cash flows from operating activities, the figures for 2014 were adjusted in connection with the disclosure changes to license receivables (see Note [6] “Changes to accounting and measurement principles and disclosure changes”).

(34) Net cash flows from operating activities

In 2015, tax payments totaled € 865.5 million (2014: € 667.8 million). Tax refunds totaled € 161.0 million (2014: € 54.9 million). Interest paid totaled € 297.4 million (2014: € 191.1 million). Interest received amounted to € 54.5 million (2014: € 89.4 million).

In 2014, the changes in provisions were affected by the payment following the written settlement reached with Israel Bio-Engineering Project Limited Partnership (IBEP). In 2014, 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. The non-cash income from the pro rata reversal of the deferred item from the collaboration agreement with Pfizer was corrected in the reporting period.

Net cash flows from operating activities include € 5.6 million from discontinued operations. This amount relates to the operating result of those business activities of the Sigma-Aldrich Corporation, USA, that were acquired with a view to resale (see Note [4] “Acquisitions, assets held for sale and disposal groups”.

(35) Net cash flows from investing activities and financing activities

The payments for the major acquisitions in fiscal 2015 were as follows:


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€ million
Sigma-Aldrich Other
Acquisitions
Total
Purchase price payment – 15,973.8 – 15,973.8
Cash income from hedges in fiscal 2014 and 2015 1,380.3 1,380.3
Purchase price in accordance with IFRS 3 – 14,593.5 – 29.3 – 14,622.8
Acquired cash and cash equivalents 1,235.1 0.8 1,235.9
Purchase price in accordance with IFRS 3 less acquired cash and cash equivalents – 13,358.4 – 28.5 – 13,386.9
Thereof: cash income from hedges already received in fiscal 2014 – 95.4 – 95.4
Payments for acquisitions less acquired cash and cash equivalents as reported in the consolidated cash flow statement in 2015 – 13,453.8 – 28.5 – 13,482.3

In 2014, a hedging gain of € 95.4 million in connection with the acquisition of the Sigma-Aldrich Corporation, USA, had already been reclassified from other comprehensive income to financial assets. Consequently, the payment for 100% of the shares less acquired cash and cash equivalents totaled € 13,453.8 million for 2014 and 2015. The figures for 2014 reflected the acquisition of AZ Electronic Materials S.A., Luxembourg, in the amount of € 1,419.3 million.

Net cash outflows from investments in current and non-current assets amounting to € 1,740.8 million (2014: € 3,143.3 million) mainly resulted from the purchase of short-term investments in securities not classified as cash and cash equivalents.

Cash inflows from investing activities include € 84.4 million from discontinued operations in relation to those business activities of Sigma-Aldrich that were acquired with a view to resale (see Note [4] “Acquisitions, assets held for sale and disposal groups”).

The cash flows from financing activities included the payments from new borrowings and the repayment of bonds as well as the repayment of the bond acquired in the context of the Sigma-Aldrich acquisition with a nominal volume of US$ 300 million. Further information on the bonds can be found in Note [28] “Financial liabilities / Capital management”.