Accounting Changes

The purchase price allocation of the consumer care business of U.S. company Merck & Co., Inc., which was acquired on October 1, 2014, was completed in the third quarter of 2015. This resulted in the further capitalization of deferred tax assets due to temporary differences between the carrying amounts of intangible assets in the IFRS financial statements and those reported for tax purposes, as well as a corresponding decline in goodwill in the statement of financial position. These deferred tax assets were retroactively restated to the date of acquisition pursuant to IFRS 3.45. Deferred taxes of €43 million were retroactively restated in the income statement. Further explanations concerning ongoing purchase price adjustments are given under “Acquisitions, divestitures and discontinued operations.”

Accounting Changes: Consolidated Statements of Financial Position

 

 

 

 

 

 

 

Dec. 31, 2014

 

 

Before
accounting changes

Accounting changes

After
accounting changes

 

 

€ million

€ million

€ million

Noncurrent assets

 

 

 

 

Goodwill

 

16,168

(821)

15,347

Deferred taxes

 

2,981

821

3,802

 

 

48,007

48,007

Accounting Changes: Consolidated Statements of Financial Position

 

 

 

 

 

 

 

 

 

 

 

March 31, 2015

 

June 30, 2015

 

 

Before accounting changes

Accounting changes

After accounting changes

 

Before accounting changes

Accounting changes

After accounting changes

 

 

€ million

€ million

€ million

 

€ million

€ million

€ million

Noncurrent assets

 

 

 

 

 

 

 

 

Goodwill

 

17,331

(926)

16,405

 

16,870

(890)

15,980

Deferred taxes

 

4,025

957

4,982

 

3,253

933

4,186

 

 

51,689

31

51,720

 

49,462

43

49,505

 

 

 

 

 

 

 

 

 

Total assets

 

76,640

31

76,671

 

75,620

43

75,663

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Other reserves

 

13,451

31

13,482

 

14,013

43

14,056

Equity attributable to Bayer AG stockholders

 

21,735

31

21,766

 

22,297

43

22,340

 

 

21,863

31

21,894

 

22,423

43

22,466

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

76,640

31

76,671

 

75,620

43

75,663

Accounting Changes: Consolidated Income Statements

 

 

 

 

 

 

 

 

 

 

 

1st Quarter 2015

 

2nd Quarter 2015

 

 

Before accounting changes

Accounting changes

After accounting changes

 

Before accounting changes

Accounting changes

After accounting changes

 

 

€ million

€ million

€ million

 

€ million

€ million

€ million

Income before income taxes

 

1,670

1,670

 

1,546

1,546

 

 

 

 

 

 

 

 

 

Income taxes

 

(406)

31

(375)

 

(405)

12

(393)

 

 

 

 

 

 

 

 

 

Income from continuing operations after income taxes

 

1,264

31

1,295

 

1,141

12

1,153

 

 

 

 

 

 

 

 

 

Income after income taxes

 

1,309

31

1,340

 

1,158

12

1,170

of which attributable to Bayer AG stockholders (net income)

 

1,303

31

1,334

 

1,152

12

1,164

Accounting Changes: (Core) Earnings per Share

 

 

 

 

 

 

 

 

 

 

 

1st Quarter 2015

 

2nd Quarter 2015

 

 

Before accounting changes

Accounting changes

After accounting changes

 

Before accounting changes

Accounting changes

After accounting changes

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

From continuing operations

 

 

 

 

 

 

 

 

Basic

 

1.52

0.04

1.56

 

1.37

0.01

1.38

Diluted

 

1.52

0.04

1.56

 

1.37

0.01

1.38

 

 

 

 

 

 

 

 

 

From discontinued operations

 

 

 

 

 

 

 

 

Basic

 

0.06

0.06

 

0.02

0.02

Diluted

 

0.06

0.06

 

0.02

0.02

 

 

 

 

 

 

 

 

 

From continuing and discontinued operations

 

 

 

 

 

 

 

 

Basic

 

1.58

0.04

1.62

 

1.39

0.01

1.40

Diluted

 

1.58

0.04

1.62

 

1.39

0.01

1.40

 

 

 

 

 

 

 

 

 

Core earnings per share

 

 

 

 

 

 

 

 

From continuing operations

 

2.04

0.04

2.08

 

1.98

0.01

1.99

 

 

 

 

 

 

 

 

 

From discontinued operations

 

0.06

0.06

 

0.02

0.02

 

 

 

 

 

 

 

 

 

From continuing and discontinued operations

 

2.10

0.04

2.14

 

2.00

0.01

2.01