Free cash flow and underlying free cash flow are indicators that we use internally to measure the contribution of our divisions to liquidity. Free cash flow includes all net cash flows from operating activities as well as investing activities performed in connection with operating business. We do not include in free cash flow pure financial investments and similar monetary deposits of more than three months, which are also to be reported as net cash flows from investing activities under IFRS.
In the reconciliation of free cash flow to underlying free cash flow, cash flows for both acquisitions and for divestments are taken into account. The acquisition-related payments of EUR 4,941.9 million (2009: EUR 23.5 million) consist of acqusitions amounting to EUR 4,843.7 million (2009: EUR 23.5 million) as well as other payments amounting to EUR 98.2 million in connection with the acquisition of Millipore. This concerns acquisition-related costs and social insurance taxes in connection with the payments for options from the stock option plan. In 2010, we made payments totaling EUR 240.7 million (2009: EUR 15.7 million) in connection with the existing legal risks that we continue to be responsible for from the divestment of our former generics subsidiary, Dey Inc., of the United States. This includes the settlement payment to the U.S. Department of Justice amounting to EUR 214.5 million (see also Note [32]). Furthermore, EUR 9.7 million was recognized from the divestment of Théramex.
back
