(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 the operating cash flow.
Income tax payments are reported in the 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.
The following table shows the interest and income tax payments included in operating cash flow:
€ million |
|
2025 |
|
2024 |
|---|---|---|---|---|
Interest received |
|
65 |
|
124 |
Interest paid |
|
-296 |
|
-240 |
Income taxes paid less refunds |
|
-939 |
|
-957 |
The changes in provisions in fiscal 2024 included a mid-double-digit million euro amount for the recognition of provisions for follow-on obligations in connection with the discontinuation of the xevinapant program (see Note (7) Licensing agreements).
Changes in other assets and liabilities in fiscal 2025 included a low triple-digit million euro amount in connection with the neutralization of non-cash effects from realized currency translation differences from an absolute reduction in an interest in a foreign operation. They also included a mid-double-digit million euro amount relating to changes in jurisdiction in Latin America, which are expected to impact cash flow in fiscal 2026, as well as payments amounting to a mid-double-digit million euro sum for transaction costs incurred by SpringWorks Therapeutics, Inc., United States, following its acquisition by the Group.
The item “Neutralization of gains/losses on disposal of fixed assets and other disposals” included the net gain from the sale of the Surface Solutions business unit (see Note (6) Acquisitions and divestments), as well as the reclassification of the net gain from the sale of a right to an accelerated review by the U.S. Food and Drug Administration to the cash flow from investing activities.