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6.3 Divestitures and discontinued operations

Divestitures and the sale of discontinued operations led to the following cash flows in 2008:

	2008
	€ million
Divestiture proceeds	39
Prepayments and outstanding payments	-
Divestiture costs	-
Divested cash and financial loans	-
Tax payments	(79)
Other cash flows	(1)
Net cash outflow from the divestitures	(41)

The diagnostics activities, along with H.C. Starck and Wolff Walsrode, were recognized as discontinued operations in 2007. Tax payments made in connection with the divestiture of the diagnostics business and a subsequent purchase price payment are therefore recognized in discontinued operations in 2008 as well. The information on discontinued operations, which is provided from the standpoint of the Bayer Group, is to be regarded as part of the reporting for the entire Bayer Group by analogy with our segment reporting and is not intended to portray either the discontinued operations or the remaining operations of Bayer as separate entities. The presentation is thus in line with the principles for reporting discontinued operations.

A breakdown of the results of discontinued operations is given below:

	Diagnostics		H.C. Starck		Wolff Walsrode		Total
	2007	2008	2007	2008	2007	2008	2007	2008
	€ million	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Net sales	-	-	74	-	172	-	246	-
Cost of goods sold	-	-	(51)	-	(109)	-	(160)	-
Selling expenses	(1)	-	(4)	-	(22)	-	(27)	-
Research and development expenses	-	-	(2)	-	(4)	-	(6)	-
General administration expenses	(1)	-	(2)	-	(9)	-	(12)	-
Other operating income (expenses) - net	2,821	6	90	-	246	-	3,157	6
Operating result (EBIT)	2,819	6	105	-	274	-	3,198	6
Non-operating result	-	-	(1)	-	(3)	-	(4)	-
Income before income taxes	2,819	6	104	-	271	-	3,194	6
Income taxes	(766)	(2)	(5)	-	(13)	-	(784)	(2)
Income after taxes	2,053	4	99	-	258	-	2,410	4
of which:
Current income (loss) (before taxes)	(16)	-	11	-	26	-	21	-
Income taxes	4	-	(3)	-	(7)	-	(6)	-
Current income (loss) (after taxes)	(12)	-	8	-	19	-	15	-
Income from divestitures (before taxes)	2,835	6	93	-	245	-	3,173	6
Income taxes	(770)	(2)	(2)	-	(6)	-	(778)	(2)
Income from divestitures (after taxes)	2,065	4	91	-	239	-	2,395	4

The separate asset and liability line items in the balance sheet reflect the following amounts pertaining to the discontinued operations as of December 31 of the respective year:

	Diagnostics		H.C. Starck		Wolff Walsrode		Total
	2007	2008	2007	2008	2007	2008	2007	2008
	€ million	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Current assets	76	3	-	-	8	-	84	3
Assets held for sale and discontinued operations	76	3	-	-	8	-	84	3
Other current provisions	129	13	-	-	-	-	129	13
Other current liabilities	47	-	-	-	-	-	47	-
Liabilities directly related to assets held for sale and discontinued operations	176	13	-	-	-	-	176	13

Discontinued operations affected the Group cash flow statements as follows:

	Diagnostics		H.C. Starck		Wolff Walsrode		Total
	2007	2008	2007	2008	2007	2008	2007	2008
	€ million	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Net cash provided by (used in) operating activities	(34)	-	23	-	13	-	2	-
Net cash provided by (used in) investing activities	3,292	(52)	927	-	429	8	4,648	(44)
Net cash provided by (used in) financing activities	(3,258)	52	(950)	-	(442)	(8)	(4,650)	44
Change in cash and cash equivalents	-	-	-	-	-	-	-	-