Bayer AG - Stockholders' Newsletter Third Quarter 2006

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Financial Statements

Bayer Group Consolidated Balance Sheets

	Sept. 30, 2005	Sept. 30, 2006	Dec. 31, 2005
€ million
Noncurrent assets
Goodwill	2,597	8,796	2,623
Other intangible assets	5,143	14,801	5,065
Property, plant and equipment	8,018	9,357	8,321
Investments in associates	786	655	795
Other financial assets	1,169	1,084	1,429
Other receivables	206	191	199
Deferred taxes	1,952	1,283	1,698
	19,871	36,167	20,130
Current assets
Inventories	5,668	7,123	5,504
Trade accounts receivable	5,414	6,512	5,204
Other financial assets	612	648	214
Other receivables	996	1,171	1,421
Claims for tax refunds	803	547	726
Liquid assets
Marketable securities and other instruments	153	29	233
Cash and cash equivalents	2,887	2,907	3,290
	16,533	18,937	16,592
Assets held for sale and discontinued operations	–	1,654	–
Total current assets	16,533	20,591	16,592
Assets	36,404	56,758	36,722

Equity attributable to Bayer AG stockholders
Capital stock of Bayer AG	1,870	1,957	1,870
Capital reserves of Bayer AG	2,942	4,028	2,942
Other reserves	6,194	6,697	6,265
	11,006	12,682	11,077
Equity attributable to minority interest	82	482	80
Stockholders’ equity	11,088	13,164	11,157

Noncurrent liabilities
Provisions for pensions and other post-employment benefits	7,063	7,043	7,174
Other provisions	1,621	1,514	1,340
Financial liabilities	7,086	14,447	7,185
Miscellaneous liabilities	453	558	516
Deferred taxes	587	3.988	280
	16,810	27,550	16,495
Current liabilites
Other provisions	2,742	4,280	3,009
Financial liabilities	2,199	7,361	1,767
Trade accounts payable	1,571	1,992	1,974
Tax liabilities	327	442	304
Miscellaneous liabilities	1,667	1,600	2,016
	8,506	15,675	9,070
Liabilities directly related to assets held for sale and discontinued operations	–	369	–
Total current liabilities	8,506	16,044	9,070
Liabilities	25,316	43,594	25,565
Stockholders’ equity and liabilities	36,404	56,758	36,722