(41) Financing cash flow
Accounting and measurement policies
Financing cash flow
The option to recognize dividend payments and profit withdrawals in the cash flows from financing activities is exercised in determining the cash flows from financing activities.
Furthermore, the net reporting option has been exercised to report cash receipts and payments for items in which the turnover is quick, the amounts large, and the maturities short. This primarily relates to rolling financing by way of commercial paper and short-term bank loans reported under “Payments from new borrowings of other current and non-current financial debt” and “Repayment of other current and non-current financial debt”.
The change in financial debt was as follows:
|
|
|
|
Cash |
|
Non-cash |
|
|
|
|
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Jan. 1, 2023 |
|
Cash inflows |
|
Repayments |
|
Lease interest |
|
Change in lease liabilities |
|
Exchange rate effects |
|
Fair value adjustment |
|
Other |
|
Changes in scope of consolidation |
|
Dec. 31, 2023 |
Financial liabilities to E. Merck KG, Darmstadt, Germany, and E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany |
|
918 |
|
697 |
|
-420 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
1,195 |
Other current and non-current financial liabilities |
|
9,510 |
|
519 |
|
-1,973 |
|
-14 |
|
201 |
|
-83 |
|
603 |
|
-15 |
|
– |
|
8,746 |
Financial debt |
|
10,428 |
|
1,216 |
|
-2,394 |
|
-14 |
|
201 |
|
-83 |
|
603 |
|
-15 |
|
– |
|
9,941 |
Derivative assets |
|
-16 |
|
609 |
|
– |
|
– |
|
– |
|
– |
|
-620 |
|
– |
|
– |
|
-27 |
|
|
|
|
Cash |
|
Non-cash |
|
|
|
|
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Jan. 1, |
|
Cash inflows |
|
Repayments |
|
Lease interest |
|
Change in lease liabilities |
|
Exchange rate effects |
|
Fair value adjustment |
|
Other |
|
Changes in scope of consolidation |
|
Dec. 31, |
||||
Financial liabilities to E. Merck KG, Darmstadt, Germany and E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany |
|
894 |
|
1,637 |
|
-1,613 |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
918 |
||||
Other current and non-current financial liabilities1 |
|
9,906 |
|
1,281 |
|
-2,604 |
|
-12 |
|
187 |
|
97 |
|
663 |
|
-13 |
|
7 |
|
9,510 |
||||
Financial debt |
|
10,801 |
|
2,917 |
|
-4,217 |
|
-12 |
|
187 |
|
97 |
|
663 |
|
-13 |
|
7 |
|
10,428 |
||||
Derivative assets |
|
-37 |
|
711 |
|
– |
|
– |
|
– |
|
– |
|
-691 |
|
– |
|
– |
|
-16 |
||||
|
||||||||||||||||||||||||
Interest payments for leases were recognized in operating cash flow but served as a reconciliation item in the above table as the underlying lease liabilities were a component of financial debt. Changes in lease liabilities included additions and retirements of right-of-use from leases and the effects from unwinding of the discount on lease liabilities.
Fair value adjustments of other current and non-current financial liabilities were entirely attributable to liabilities from derivatives. In the consolidated cash flow statement, cash changes of assets from derivatives of € 609 million (2022: € 711 million) were reported together with repayments of other current and non-current financial debt of € 1,973 million (2022: € 2,604 million) in the item “Repayments of other current and non-current financial debt” with a net amount of € 1,364 million (2022: € 1,893 million). In the above reconciliation, changes of assets from derivatives were reported separately, as they did not form part of financial liabilities.
The amount of unused credit lines that could be employed for future operating activities and to meet obligations and information on changes in financial debt can be found in Note (37) “Financial debt/Capital management”.