Values

142
Group Financial Statements
Notes
The analysis of exchange rate sensitivity includes the Group’s
financial debt and operating transactions at the balance
sheet date, as well as the hedging relationships entered into
(forward agreements and options). The calculation is performed
for the unsecured net exposure on the basis of an
assumed 10 percent appreciation of the euro versus all foreign
currencies. A uniform depreciation of all foreign currencies
would have resulted in a change in the carrying amount
recognized by the Group of €-8 million (previous year:
€-1 million), with €-7 million (previous year: €3 million)
Factoring
In individual cases, Bertelsmann Group sells receivables to
banks. Th ese exceptions are limited to agreements in which
Bertelsmann grants fi nancing to its customers in separate contracts.
Th e volume of receivables sold is contractually limited to
€512 million and amounted to €508 million at the balance sheet
date (previous year: €500 million). Th e contractual conditions
27 Cash Flow Statement
Th e Bertelsmann Group’s cash fl ow statement has been prepared
in accordance with IAS 7 and is intended to facilitate
analysis of the Group’s ability to generate cash and cash equivalents.
Cash fl ows are divided into those relating to operating
activities, investing activities and fi nancing activities. Cash
fl ows from operating activities are presented using the indirect
method, with EBIT adjusted for non-cash items. Income
and expenses relating to cash fl ows from investing activities
are also eliminated.
Th e operational management of the Bertelsmann Group
utilizes indicators that include operating EBIT, which is before
interest. Operating results and the resulting cash fl ow from
operating activities should therefore be consistent and comparable.
Accordingly, the net balance of interest paid and interest
received during the year is shown in the cash fl ow statement
as part of fi nancing activities.
Contributions to pension plans are a cash outfl ow reported
as a separate item in the cash fl ow from investing activities.
relating to fluctuations in the U.S. dollar ex-change rate on
the basis of a net exposure of US$108 million (previous year:
US$45 million). Shareholders’ equity would have declined
by €-68 million (previous year: €-70 million) as a result of
fluctuations in the fair values of documented cash flow
hedges. Of this figure, €-71 million (previous year: €-72 million)
relates to fluctuations in the U.S. dollar exchange rate
on the basis of a documented cash flow hedge volume of
US$1,018 million (previous year: US$1,001 million).
provide for transfer of major default and interest risks to the buyer
of the receivables. Bertelsmann’s remaining risk is limited, and
therefore the receivables are recognized only to the extent of its
continuing involvement. Th e resulting risks are recognized as
provisions and amounted to €18 million at the balance sheet
date (previous year: €15 million).
Th e change in provisions for pensions and similar commitments
represents the balance of personnel expenses for service
costs and pension payments (see note 20).
Th e consolidated cash fl ow statement includes the eff ects
of changes in foreign currencies and changes in the scope of
consolidation. Items in the consolidated cash fl ow statement
thus cannot be compared with changes in items disclosed on
the consolidated balance sheet. Investing activities include
investments for non-current assets and purchase price payments
for investments acquired as well as proceeds from the
disposal of non-current assets and participations. See section
“Acquisitions and Disposals” concerning acquisitions made
during the year under review. Signifi cant disposals during the
period are also described in that section. Financial debt of
€15 million was assumed as part of acquisitions.
Cash fl ow from fi nancing activities tracks changes in shareholders’
equity aff ecting cash, changes in fi nancial debt and net
interest paid or received.
Bertelsmann Annual Report 2009