Cash flow statement

(€ million)  Note  2010  2011 
Net profit for the year    844    921   
Minority interest    50    66   
Adjustments to reconcile net profit to net cash provided by operating activities:           
- depreciation and amortization  (36 514    608   
- net impairment of tangible and intangible assets  (36   34   
- share of profit (loss) of equity-accounted investments  (39 -   (16)   
- net (gains) losses on disposal of assets    (17)     
- interest income    (8)    (9)   
- interest expense    45    100   
- income taxes  (40 345    392   
- other changes      (6)   
Changes in working capital:           
- inventories    293    (550)   
- trade receivables    (313)    812   
- trade payables    47    286   
- provisions for contingencies    (34)    40   
- other assets and liabilities    (213)    (762)   
Cash flow from working capital    1,557    1,918   
Change in the provision for employee benefits    13     
Dividends received      11   
Interest received       
Interest paid    (39)    (111)   
Income taxes paid net of refunds of tax credits    (219)    (285)   
Net cash provided by operating activities    1,324    1,549   
of which with related parties  (44   2,771    2,354 
Investing activities:           
- tangible assets  (7 (1,533)    (1,100)   
- intangible assets  (8 (12)    (6)   
- investments  (9 (4)    -  
- consolidated subsidiaries and businesses    -   (93)   
- financing receivables    (44)    (56)   
Cash flow from investing activities    (1,593)    (1,255)   
Disposals:           
- tangible assets       
- consolidated subsidiaries and businesses    14     
- investments    34     
- securities    36    -  
- financing receivables    49    53   
Cash flows from disposals    138    71   
Net cash used in investing activities (1)    (1,455)    (1,184)   
of which with related parties  (44   -   -
Proceeds from long-term debt    2,437    186   
Repayments of long-term debt    (1,400)    (117)   
Increase (decrease) in short-term debt    (778)    (49)   
    259    20   
Dividends distribution    (263)    (297)   
Net purchase of treasury shares    35    11   
Net cash used in financing activities    31    (266)   
of which with related parties  (44   280    279 
Effect of changes in consolidation    -   (5)   
Effect of exchange rate changes and other changes on cash and cash equivalents   44     
Net cash flow for the year    (56)    99   
Cash and cash equivalents - beginning of year  (1 986    930   
Cash and cash equivalents - end of year  (1 930    1,029   
(1) Net cash used in investing activities included investments in certain financial assets to absorb temporary surpluses of cash or as part of our ordinary management of financing activities. Due to their nature and the fact that they are very liquid, these financial assets are netted against finance debt in determining net borrowings. For the definition of net borrowings, see the ‘Financial and Economic Results’ section of the ‘Directors’ Report’.

Cash flows of such investments were as follows:

(€ million)  Dec. 31, 2010  Dec. 31, 2011 
Financing investments:     
- securities  - -
- financing receivables  (44)  (56) 
  (44)  (56) 
Disposal of financing investments:     
- securities  36  -
- financing receivables  49 
  85 
Net cash flows from financing activities  41  (52)