The operating result of the Merck Group increased by 22% to €976 million in 2007 despite the negative impact of the amortization of recognized intangible assets such as technologies, licenses and other rights within the scope of the Serono purchase price allocation. To increase transparency, these amortized amounts, along with the amortization of other intangible assets, are disclosed separately in the income statement (see Income Statement). This amortization totaled €557 million, with the vast majority being attributable to intangible assets purchased within the scope of the acquisition of Serono. In addition, costs of €154 million due to integration of Serono and impairment charges of €73 million, primarily on intangible assets, were incurred in 2007. Return on sales (ROS, operating result/total revenues) was 13.8% compared to 17.9% in 2006. In the past, Merck also used return on capital employed (ROCE) as a key indicator of its current financial condition. In line with its financial strategy, in the third quarter of 2007 Merck replaced this indicator by free cash flow, which is more transparent and meaningful with respect to the financial situation (see Consolidated Financial Statements for more details).