Borrowings and Credit Facilities Financial Risk Management Sarbanes-Oxley Act expenditure of €575 million represented 3.1% of Group revenue (2011:  3.2%), amounting to 77% of depreciation (2011: 78%) as we continue to  maintain our discipline while investing in the structure of the business.  Operating cash outflows include an adjustment to eliminate non-cash items  (such as share of results of associates, profit on disposals and share-based  compensation expense) which are included in arriving at profit before tax. The Group completed 36 acquisitions and investment transactions in 2012 at  a total cost of €649 million. Excluding net deferred payments of €123 million,  the cash outflow for the year was €526 million (2011: €610 million).  Proceeds (including net debt assumed by purchasers) from disposal of  non-current assets and businesses amounted to €859 million (2011:  €492 million), primarily reflecting the divestment in May 2012 of our 49%  stake in the Portuguese cement business Secil and the disposal of our  wholly-owned Magnetic Autocontrol business in April 2012. Net proceeds from share issues include €88 million (2011: €135 million)  arising on the take-up of shares in lieu of dividends, together with proceeds  of €16 million (2011: €6 million) from issues under the Group’s share option  and share participation schemes.  Exchange rate movements during 2012 reduced the euro amount of net  foreign currency debt by €37 million principally due to the 2% weakening in  Cash flows from investing and financing activities the year-end exchange rate of the US Dollar versus the euro, from 1.2939 at  end-2011 to 1.3194 at end-2012. An analysis of the components of net debt, together with information on the  currency and maturity profile of our debt and on the interest rates applicable  to that debt, are set out in notes 21 to 25 to the financial statements.  In January 2012 the Group issued €500 million in 7-year Eurobonds at a  coupon rate of 5%, the Group’s lowest-ever coupon for a maturity greater  than 5 years. CRH believes that its current cash and liquid resources of €1.8 billion and  committed and undrawn facilities of an additional €1.8 billion are sufficient  to meet its capital expenditure and other expenditure requirements for 2013. The Group’s major bank facilities and debt issued pursuant to Note  Purchase Agreements in private placements require the Group to maintain  certain financial covenants, details of which are set out in note 24 to the  financial statements. CRH was in full compliance with its financial covenants  throughout 2012 and 2011.  CRH remains committed to maintaining an investment grade credit rating.  CRH does not have any off-balance sheet arrangements that have, or  are reasonably likely to have, a current or future effect on CRH’s financial  condition. The Board sets the treasury policies and objectives of the Group, which  include controls over the procedures used to manage financial market risks.  Details of these policies are set out in note 22 to the financial statements.  The Group manages its cash transmission, collection and holding policies  and practices in order to minimise the risks arising from continued financial  market stresses. For the year ended 31 December 2011, management concluded that internal  control over financial reporting was effective; Ernst & Young audited the  effectiveness of these controls and issued an unqualified opinion thereon. The 2012 assessment and related auditor’s report will be included in the  2012 Annual Report on Form 20-F which will be filed with the Securities and  Exchange Commission by the end of the first quarter of 2013. CRH 19 2012 2011 Inflows €m €m Profit before tax 674 711 Depreciation/amortisation (including impairment) 795 785 1,469 1,496 Outflows Working capital outflow (31) (161) Tax payments  (134) (96) Pension payments (152) (102) Dividends (before scrip dividends) (450) (445) Capital expenditure (575) (576) Other non-cash items (82) (90) (1,424) (1,470) Operating cash inflow 45 26 Acquisitions and investments (526) (610) Proceeds from disposals 859 492 Share issues (including scrip dividend) 104 141 Translation 37 (59) Decrease/(increase) in net debt 519 (10) Table 3 Summarised Cash Flow