BASF Report 2021 Consoli dated Financial Statements – Notes 277 The occurrence of all forecasted transactions was considered to be 27 Statement of cash flows and capital structure business. These included tax payments in the amount of €150 mil- highly probable at all times during fiscal years 2021 and 2020. management lion that were directly associated with the transaction. Further tax Amounts accumulated in the cash flow hedge reserve for com- payments were accounted for in the amount of €31 million in 2021. modity price risks are derecognized against the carrying amount of Statement of cash flows For more information on acquisitions and divestitures, see Note 3 from page 207 onward acquired assets once the hedged transaction occurs. Thus, there is no immediate reclassification of the amounts recognized in the cash Cash flows from operating activities contained the following Payments made for property, plant and equipment and intangible flow hedge reserve to profit or loss in these cases. payments: assets amounted to €3,532 million, €403 million higher than in the previous year. In connection with its catalyst production, BASF is exposed to Statement of cash flows commodity price risks associated with holding physical precious Million € In 2020, BASF SE transferred securities in the amount of €401 mil- metal items. These production-related precious metal inventories 2021 2020 lion to BASF Pensionstreuhand e.V., Ludwigshafen am Rhein, are hedged with forward contracts in accordance with a defined Income taxes –1,707 –595 Germany. This transfer was not cash effective and therefore had no hedging strategy. In 2021, a portion of these precious metal of which income tax refunds 95 273 effect on the statement of cash flows. inventories was designated in a fair value hedge accounting income tax payments –1,802 –868 relationship with forward contracts on the precious metals. Changes Interest payments –318 –341 Cash and cash equivalents consist primarily of cash on hand and in the forward rate were considered costs of hedging, and €2 million of which interest received 151 146 bank balances with maturities of less than three months. was recognized in other comprehensive income and reclassified successively to profit or loss, being a time-period-related hedge. All interest paid –469 –487 The cash and cash equivalents presented in the statement of cash hedging instruments expired in 2021. The hedged precious metals Dividends received 711 244 flows may deviate from the figures in the balance sheet if the r elevant were sold. Cash flows in connection with the hedging instruments amounts were reclassified to assets of disposal groups. As of were recognized in profit or loss in 2021. All hedging relationships In 2021, cash flows from investing activities included €600 million in January 1, 2021, cash and cash equivalents in the amount of were fully effective. payments made for acquisitions in connection with the purchase of €4,335 million reported in the statement of cash flows consisted of BASF Shanshan Battery Materials Co., Ltd. (2020: €1,240 million for the balance sheet value (€4,330 million) and the value reclassified to the acquisition of Solvay’s polyamide business). the pigments business disposal group (€5 million). No cash and cash equivalents were reclassified to the disposal groups as of Payments received for divestitures in the amount of €1,030 million December 31, 2021; their balance in the statement of cash flows were mainly from the sale of the pigments business. That included is therefore identical to that in the balance sheet. As of Janu- project-related tax payments of €65 million and special contributions ary 1, 2020, cash and cash equivalents in the amount of €2,455 mil- to Swiss pension plan assets of €43 million. Payments received from lion reported in the statement of cash flows consisted of the balance the disposal of the equity-accounted investment in Solenis sheet value (€2,427 million) and the values reclassified to the dis- (€1,066 million) are reported in cash flows from investing activities posal groups for the construction chemicals business (€21 million) under payments received from the disposal of noncurrent assets and the pigments business (€7 million). and securities. Gains on divestitures in the amount of €589 million was reclassified from cash flows from operating activities to cash As in the previous year, cash and cash equivalents were not subject flows from investing activities via gains (–) / losses (+) from the to any utilization restrictions. disposal of noncurrent assets and securities. The reconciliation according to IAS 7 breaks down the changes in In 2020, payments received for divestitures resulted in the amount financial and similar liabilities and their hedging transactions into of €2,520 million from the sale of the construction chemicals cash-effective and non-cash-effective changes. The cash-effective