(16) Operating cash flow
Accounting and measurement policies
Operating cash flow
The operating cash flow is calculated and presented based on the following principles:
- The operating cash flow is presented using the indirect method based on profit after taxes.
- The option to recognize interest received and interest payments made is exercised to the extent that such transactions are recognized in cash flow from operating activities.
- Tax payments are reported in operating cash flow. Only significant transactions where the associated tax payments can be practically calculated are recognized in the relevant item of the consolidated cash flow statement.
Tax payments made totaled € 1,053 million in fiscal 2023 (2022: € 1,344 million). Tax refunds received amounted to € 38 million (2022: € 145 million).
Interest paid totaled € 181 million (2022: € 185 million). Interest received amounted to € 77 million (2022: € 25 million).
The changes in provisions included a mid-double-digit million-euro amount for the recognition of restructuring provisions to align the Group functions more closely with the businesses, and a high double-digit million-euro amount for the recognition of provisions for acceptance and follow-on obligations in connection with the results of the two Phase III clinical trials to evaluate the efficacy and safety of evobrutinib (see Note (27) “Other provisions”).
The item “Neutralization of gains/losses on disposal of fixed assets” included the effects recognized in income of the disposal of a non-strategic brand in the Healthcare business sector and a portfolio of licenses and patents in the Electronics business sector. The corresponding cash inflows are recognized in the cash flow from investing activities.
The change in other non-cash income and expenses contained the neutralization of revaluations of contingent consideration recognized in income (see Note (36) “Other financial assets”). The corresponding cash inflows are also recognized in the cash flow from investing activities.