The cash flow statement starts from the operating result (EBIT). The gross cash flow for 2005 of EUR 3.5 billion (2004 EUR 2.9 billion) is the cash surplus from operating activities before any changes in working capital. The cash flows by segment and region are shown in the table Key Data by Segment and Region. The net operating cash flow of EUR 3.5 billion (2004: EUR 2.3 billion) from continuing operations takes account of changes in working capital and other non-cash items. The EUR 40 million net cash outflow from discontinued operations (2004: EUR 0.2 billion inflow) comprises cash inflows and outflows of the divested plasma business and LANXESS. The total net operating cash flow amounted to EUR 3.5 billion (2004: EUR 2.5 billion).
 
37. Net cash used in investing activities
Additions to property, plant and equipment and intangible assets in 2005 resulted in a cash outflow of EUR 1.4 billion (2004: EUR 1.3 billion). EUR 2.2 billion (2004: EUR 0.4 billion) was spent on acquisitions, including about EUR 1.9 billion for the consumer health business. Other disbursements related mainly to the purchase of marketing rights under a license agreement in the Bayer CropScience subgroup and a co-marketing and distribution agreement in the Bayer HealthCare subgroup. Cash inflows related to investments totaled EUR 1.2 billion (2004: EUR 0.1 billion) and mainly comprised the scheduled repayment of loans following the spin-off of LANXESS, the expiration of derivatives contracts used to hedge currency risks, and the sale of the LANXESS convertible bond with a nominal value of EUR 200 million). Sales of property, plant and equipment led to a cash inflow of EUR 0.4 billion (2004: EUR 0.2 billion), while the inflow from interest and dividend receipts, including marketable securities, totaled EUR 0.3 billion (2004: EUR 0.5 billion). Further information on acquisitions and divestments can be found here. The net cash outflow for investing activities was EUR 1.7 billion (2004: EUR 0.8 billion).
 
38. Net cash used in financing activities
In fiscal 2005 there was a net cash outflow of EUR 1.9 billion (2004: EUR 0.8 billion) from financing activities. Net repayment of debt came to EUR 0.7 billion (2004: EUR 0.5 billion inflow for net borrowing). In the third quarter Bayer issued a 100-year subordinated hybrid bond with an issue volume of EUR 1.3 billion and a coupon of 5 percent. At the same time, the company repurchased part of the 5.375 percent Eurobond issue due on April 10, 2007 through a public tender offer. The repurchased bonds had a face value of EUR 860 million. Dividend payments for 2004 and interest payments totaled EUR 1.2 billion (2004: EUR 1.3 billion).
 
39. Cash and cash equivalents at end of year
Cash and cash equivalents as of December 31, 2005 amounted to EUR 3.3 billion (2004: EUR 3.6 billion). In accordance with IAS 7 (Cash Flow Statements), this item also includes securities with original maturities of up to three months. The liquid assets of EUR 3.5 billion (2004: EUR 3.6 billion) shown in the balance sheet also include marketable securities and other instruments.

Liquid assets totaling EUR 253 million have been deposited in escrow accounts to be used exclusively for payments relating to antitrust fines and civil law settlements. For further information on legal risks see Note [35].