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33. Net cash provided by (used in) operating activities

The gross cash flow for 2009 of €4,658 million (2008: €5,295 million) is the cash surplus from operating activities before any changes in working capital. The cash flows by segment are shown in the table in Note [1].

The net operating cash flow of €5,375 million (2008: €3,608 million) takes into account the changes in working capital and other non-cash transactions.

The line “Non-cash effects of the remeasurement of acquired assets (inventory work-down)” has been inserted in the statement of cash flows in order to eliminate the effects of the Schering purchase price allocation from gross cash flow. In this way the non-cash effect of the work-down of the step-up from the remeasurement of Schering inventories to fair value as of June 23, 2006, the date of acquisition, is already neutralized in the gross cash flow. In 2008, a final amount of €208 million was transferred to this line from “Decrease (increase) in inventories.”

The net operating cash flow for 2009 included an income-tax-related net cash flow of €500 million (2008: €1,073 million). The changes in income tax liabilities, income tax provisions and claims for reimbursement of income taxes are shown in the line “Changes in other working capital, other non-cash items.”