33. Net Cash Provided by (Used in) Operating Activities
The gross cash flow Cash flow Key indicator for assessing a company’s financial strength; in addition to gross cash flow, the statement of cash flows also reports the cash flow from operating activities (net cash flow), which shows the amount of funds available from operating activities for financing investments, repaying debts or distributing dividends. The cash flows from investing and financing activities are also reported. from continuing operations Continuing operations Revenue and earnings reporting for continuing operations pertains only to business operations that are expected to remain in the company’s portfolio for the foreseeable future; opposite of discontinued operations. , amounting in 2015 to €6,999 million (2014: €6,707 million), is the cash surplus from operating activities before any changes in working capital Working capital is the difference between short-term current assets and short-term liabilities; it is calculated by deducting short-term liabilities from current assets (excluding cash and cash equivalents). In financial accounting, the change in working capital is one of the variables used to assess a company’s financial health. The objective of working capital management is to reduce working capital by minimizing the “financing gap” caused by the time lapse between the disbursement of funds (= payment for necessary raw materials) and the receipt of funds for the finished product. . The cash flows by segment are shown in Note .
The net operating cash flow (total) of €6,890 million (2014: €5,810 million) also takes into account the changes in working capital and other noncash transactions.
An income-tax-related net cash outflow of €1,699 million (2014: €1,835 million) is included in the net cash flow for 2015. The changes in income tax liabilities, income tax provisions and claims for reimbursement of income taxes are shown in the line item “Changes in other working capital, other noncash items.”
The transfers of bonds with a total value of €300 million (2014: €250 million) to pension funds were noncash transactions and therefore did not result in an operating cash outflow.