Fresenius Medical Care AG & Co. KGaA (FMS) 6-K 5 Aug 09 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Jun. 30, 2009
Document Information
Document type	6-K
Document period end date	2009-06-30
Amendment flag	false
Entity Information
Entity registrant name	FRESENIUS MEDICAL CARE AG & Co. KGaA
Entity central index key	0001333141
Entity current reporting status	Yes
Entity voluntary filers	No
Current fiscal year end date	--12-31
Entity filer category	Large Accelerated Filer
Entity well known seasoned issuer	Yes
Entity common stock shares outstanding	294,365,648
Entity public float	$13,187,581,030

Consolidated Statements of Inco

Consolidated Statements of Income (unaudited) (USD $)
In Thousands	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Net revenue:
Dialysis Care Revenue	$2,054,104	$1,924,259	$3,977,425	$3,768,546
Dialysis Products Revenue	709,465	741,037	1,345,954	1,408,474
Net revenue	2,763,569	2,665,296	5,323,379	5,177,020
Costs of revenue:
Dialysis Care Cost of Revenue	1,474,043	1,387,444	2,870,850	2,722,596
Dialysis Products Cost of Revenue	357,814	353,966	658,512	675,239
Cost of revenues	1,831,857	1,741,410	3,529,362	3,397,835
Gross profit	931,712	923,886	1,794,017	1,779,185
Operating expenses:
Selling, general and administrative	495,119	474,187	938,686	921,697
Research and development	18,956	20,654	41,852	39,772
Operating income	417,637	429,045	813,479	817,716
Other (income) expense:
Interest income	(7,899)	(7,419)	(12,173)	(12,799)
Interest expense	83,133	89,561	161,697	177,759
Income before income taxes	342,403	346,903	663,955	652,756
Income tax expense	103,369	125,709	213,749	237,021
Net Income	239,034	221,194	450,206	415,735
Less: Net Income attributable to Noncontrolling interest	17,921	10,106	30,987	18,774
Net Income attributable to the Company	$221,113	$211,088	$419,219	$396,961
Basic income per ordinary share	0.74	0.71	1.41	1.34
Fully diluted income per ordinary share	0.74	0.71	1.41	1.33

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (unaudited) (USD $)
In Thousands	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Consolidated Statements of Comprehensive Income
Net Income	$239,034	$221,194	$450,206	$415,735
Gain (loss) related to cash flow hedges	15,785	73,402	15,846	(7,330)
Actuarial gains on defined benefit pension plans	1,218	394	2,436	788
Foreign currency translation	113,274	5,861	28,261	94,700
Income tax (expense) benefit related to components of other comprehensive income	(7,636)	(33,158)	(8,718)	851
Other comprehensive income, net of tax	122,641	46,499	37,825	89,009
Total Comprehensive income	361,675	267,693	488,031	504,744
Comprehensive income attributable to noncontrolling interest	19,807	8,472	31,894	24,373
Comprehensive income attributable to the Company	$341,868	$259,221	$456,137	$480,371

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) (USD $)
In Thousands	Jun. 30, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$229,651	$221,584
Trade accounts receivable, less allowance for doubtful accounts of $264,684 in 2009 and $262,836 in 2008	2,267,392	2,176,316
Accounts receivable from related parties	125,017	175,525
Inventories	849,924	707,050
Prepaid expenses and other current assets	686,674	607,399
Deferred tax asset, current	334,969	324,123
Total current assets	4,493,627	4,211,997
Property, plant and equipment, net	2,311,586	2,236,078
Intangible assets	850,522	846,496
Goodwill	7,380,327	7,309,910
Deferred tax asset, non-current	76,741	92,805
Other assets	222,272	222,390
Assets	15,335,075	14,919,676
Current liabilities:
Accounts payable	363,789	366,017
Accounts payable to related parties	132,423	239,243
Accrued expenses and other current liabilities	1,317,286	1,288,433
Short-term borrowings	445,644	683,155
Short-term borrowings from related parties	109,885	1,330
Current portion of long-term debt and capital lease obligations	344,674	455,114
Income tax payable, current	61,121	82,468
Deferred tax liability, current	31,254	28,652
Total current liabilities	2,806,076	3,144,412
Long-term debt and capital lease obligations, less current portion	4,420,553	3,957,379
Other liabilities	291,313	319,602
Pension liabilities	145,275	136,755
Income tax payable, non-current	180,045	171,747
Deferred tax liability, non-current	455,789	426,299
Company-obligated mandatorily redeemable preferred securities of subsidiary Fresenius Medical Care Capital Trusts holding solely Company-guaranteed debentures of subsidiaries	647,569	640,696
Total liabilities	8,946,620	8,796,890
Company shareholders' equity:
Preferred stock, no par value, 1.00 Euro nominal value, 12,356,880 shares authorized, 3,854,182 issued and outstanding	4,299	4,240
Common stock, no par value, 1.00 Euro nominal value, 373,436,220 shares authorized, 294,365,648 issued and outstanding	363,647	363,076
Additional paid-in capital	3,321,902	3,293,918
Retained earnings	2,639,611	2,452,332
Accumulated other comprehensive (loss)	(114,366)	(151,284)
Total Company shareholders' equity	6,215,093	5,962,282
Noncontrolling interest	173,362	160,504
Total equity	6,388,455	6,122,786
Total liabilities and equity	$15,335,075	$14,919,676

1_Consolidated Balance Sheets (

Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands, except Share data	Jun. 30, 2009	Dec. 31, 2008
Consolidated Balance Sheets (Parentheticals)
Trade accounts receivable allowance for doubtful accounts	$264,684	$262,836
Preferred stock no par value (in Euros)	1
Preferred stock authorized	12,356,880
Preferred stock issued	3,854,182
Preferred stock outstanding	3,854,182
Common stock no par value (in Euros)	1
Common stock authorized	373,436,220
Common stock issued	294,365,648
Common stock outstanding	294,365,648

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Operating Activities:
Net Income	$450,206	$415,735
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	215,842	198,864
Change in deferred taxes, net	29,281	48,367
(Gain) on sale of investments	(652)	(13,981)
Loss on sale of fixed assets	651	826
Stock Option Compensation Expense	14,991	14,152
Changes in assets and liabilities, net of amounts from businesses acquired:
Trade accounts receivable, net	(59,116)	(161,241)
Inventories, net	(129,724)	(104,096)
Prepaid expenses, other current and non-current assets	(102,714)	16,389
Accounts receivable, related parties	(3,361)	(1,759)
Accounts payable, related parties	301	(6,778)
Accounts payable, accrued expenses and other current and non-current liabilities	36,358	7,858
Income tax payable	(14,746)	(13,008)
Net cash provided by operating activities	437,317	401,328
Investing Activities:
Purchases of property, plant and equipment	(253,865)	(343,504)
Proceeds from sale of property, plant and equipment	4,321	10,824
Acquisitions and investments, net of cash acquired, and net purchases of intangible assets	(81,483)	(132,453)
Proceeds from divestitures	50,918	41,276
Net cash used in investing activities	(280,109)	(423,857)
Financing Activities:
Proceeds from short-term borrowings and other financial liabilities	40,518	70,617
Repayments of short-term borrowings and other financial liabilities	(95,179)	(69,894)
Proceeds from short-term borrowings from related parties	15,994	208,663
Repayments of short-term borrowings from related parties	(17,251)	(35,440)
Proceeds from long-term debt and capital lease obligations	589,613	252,248
Repayments of long-term debt and capital lease obligations	(258,034)	(41,194)
Redemption of trust preferred securities	0	(678,379)
Increase of accounts receivable securitization program	(190,000)	514,000
Proceeds from exercise of stock options	12,745	9,939
Payment of Dividends	231,940	252,395
Distributions to noncontrolling interest	(28,174)	(15,814)
Contributions from noncontrolling interest	7,013	0
Net cash used in financing activities	(154,695)	(37,649)
Effect of exchange rate changes on cash and cash equivalents	5,554	5,298
Cash and Cash Equivalents:
Net (decrease) in cash and cash equivalents	8,067	(54,880)
Cash and cash equivalents at beginning of period	221,584	244,690
Cash and cash equivalents at end of period	$229,651	$189,810

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (unaudited) (USD $)
In Thousands, except Share data	Total Company shareholders' equity [Member]	Preferred Stock [Member]	Preferred Stock, No par value [Member]	Common Stock [Member]	Common Stock, No par value [Member]	Additional paid in capital [Member]	Retained earnings [Member]	Accumulated other comprehensive income (loss) [Member]	Noncontrolling interest [Member]	Total
Shares issued at Dec. 31, 2007		3,778,087		292,786,583
Shareholders equity at Dec. 31, 2007	$5,575,217		$4,191		$361,384	$3,221,644	$1,887,120	$100,878	$105,814	$5,681,031
Comprehensive income (loss)
Shares issued at Dec. 31, 2007		3,778,087		292,786,583
Shareholders equity at Dec. 31, 2007	5,575,217		4,191		361,384	3,221,644	1,887,120	100,878	105,814	5,681,031
Proceeds from exercise of options and related tax effects	42,136		49		1,692	40,395				42,136
Shares from exercise of options and related tax effects		32,453		1,145,453
Compensation expense related to stock options	31,879					31,879				31,879
Dividends paid	(252,395)						(252,395)		(38,592)	(290,987)
Purchase (sale) of noncontrolling interest									31,000	31,000
Cash contributions from noncontrolling interest									17,174	17,174
Comprehensive income (loss)
Net Income	817,607						817,607		42,381	859,988
Other comprehensive income (loss)	(252,162)							(252,162)	2,727	(249,435)
Total Comprehensive income	565,445								45,108	610,553
Shareholders equity at Dec. 31, 2008	5,962,282		4,240		363,076	3,293,918	2,452,332	(151,284)	160,504	6,122,786
Shares issued at Dec. 31, 2008		3,810,540		293,932,036
Comprehensive income (loss)
Proceeds from exercise of options and related tax effects	12,691		59		571	12,061				12,691
Shares from exercise of options and related tax effects		43,642		433,612
Compensation expense related to stock options	14,991					14,991				14,991
Dividends paid	(231,940)						(231,940)		(28,174)	(260,114)
Purchase (sale) of noncontrolling interest	932					932			6,514	7,446
Cash contributions from noncontrolling interest									2,624	2,624
Comprehensive income (loss)
Net Income	419,219						419,219		30,987	450,206
Other comprehensive income (loss)	36,918							36,918	907	37,825
Total Comprehensive income	456,137								31,894	488,031
Shareholders equity at Jun. 30, 2009	$6,215,093		$4,299		$363,647	$3,321,902	$2,639,611	($114,366)	$173,362	$6,388,455
Shares issued at Jun. 30, 2009		3,854,182		294,365,648

The Company and Basis of Presen

The Company and Basis of Presentation
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
The Company and Basis of Presentation	The Company and Basis of PresentationThe CompanyFresenius Medical Care AG Co. KGaA (FMC-AG Co. KGaAor the Company) a German partnership limited by shares (Kommanditgesellschaft auf Aktien), is the worlds largest kidney dialysis company, operating in both the field of dialysis services and the field of dialysis products for the treatment of end-stage renal disease (ESRD). The Companys dialysis business is vertically integrated, providing dialysis treatment at dialysis clinics it owns or operates and supplying these clinics with a broad range of products. In addition, the Company sells dialysis products to other dialysis service providers. In the United States, the Company also performs clinical laboratory testing and provides inpatient dialysis services and other services under contract to hospitals. In this Report, FMC-AG Co. KGaA, or the Company, we, us or our refers to the Company or the Company and its subsidiaries on a consolidated basis, as the context requires.Basis of PresentationThe consolidated financial statements at June 30, 2009 and for the three- and six-month periods ended June 30, 2009 and 2008 contained in this report are unaudited and should be read in conjunction with the consolidated financial statements contained in the Company's 2008 Annual Report on Form20-F. Such financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments are of a normal recurring nature.The results of operations for the three- and six-month periods ended June 30, 2009 are not necessarily indicative of the results of operations for the year ending December31, 2009.

Related Party Transactions

Related Party Transactions
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Related Party Transactions	Related Party Transactions Service and Lease AgreementsThe Company is party to service agreements with Fresenius SE, the sole stockholder of its General Partner and its largest shareholder with approximately 36.2% ownership of the Companys voting shares, and certain affiliates of Fresenius SE that are not also subsidiaries of the Company to receive services, including, but not limited to: administrative services, management information services, employee benefit administration, insurance, IT services, tax services and treasury management services. For the six-month periods ended June 30, 2009 and 2008, amounts charged by Fresenius SE to the Company under the terms of these agreements are $32,139 and $29,479 respectively. The Company also provides certain services to Fresenius SE and certain affiliates of Fresenius SE, including research and development, central purchasing, patent administration and warehousing. The Company charged $9,206 and $5,308 for services rendered to Fresenius SE during the first six months of 2009 and 2008, respectively. Under operating lease agreements for real estate entered into with Fresenius SE, the Company paid Fresenius SE $9,766 and $10,895 during the first six months of 2009 and 2008, respectively. The majority of the leases expire in 2016 and contain renewal options.The Companys Articles of Association provide that the General Partner shall be reimbursed for any and all expenses in connection with management of the Companys business, including remuneration of the members of the General Partners supervisory board and the General Partners management board. The aggregate amount reimbursed to Management AG for the six-month periods ended June 30, 2009 and 2008 was $3,619 and $4,897, respectively, for its management services during those six-month periods. ProductsFor the six-month periods ended June 30, 2009, and 2008, the Company sold products to Fresenius SE for $7,332 and $20,737 respectively. During the six-month periods ended June 30, 2009, and 2008, the Company made purchases from Fresenius SE in the amount of $22,303 and $22,319, respectively.In addition to the purchases noted above, the Company currently purchases heparin supplied by APP Inc., through a group purchasing organization (GPO). APP Inc. is a subsidiary of Fresenius Kabi AG, a wholly-owned subsidiary of Fresenius SE. The Company has no direct supply agreement with APP Inc. and does not submit purchase orders directly to APP Inc. During the six month-periods ended June 30, 2009 and 2008, Fresenius Medical Care Holdings, Inc. (FMCH) acquired approximately $10,343 and $2,635, respectively, of heparin from APP Inc. through the GPO contract, which was negotiated at arms length. Financing Provided by and to Fresenius SEThe Company receives short-term financing from and provides short-term financing to Fresenius SE. During the second quarter 2009, the Company reclassified an accounts payable in the amount of $109,885 to Fresenius SE to short-term borrowings from related parties. The amount represents taxes payable by the Company arising from the period 1997-2001 during which German trade taxes were paid by Fresenius SE on behalf of the Company. The

Inventories

Inventories
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Inventories Note	InventoriesAs of June 30, 2009 and December31, 2008, inventories consisted of the following: June 30, 2009 December 31, 2008 Raw materials and purchased components $ 155,641 $ 145,756 Work in process 58,679 60,960 Finished goods 522,312 385,607 Health care supplies 113,292 114,727 Inventories $ 849,924 $ 707,050 During the first quarter, 2009, inventory adjustments led to an increase in value of inventory at January 1, 2009, of $23,327 and a corresponding reduction in costs of revenues sold during the three month period ending March 31, 2009.

Short-Term Borrowings and Short

Short-Term Borrowings and Short-Term Borrowings from Related Parties
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Short-Term Borrowings and Short-Term Borrowings from Related Parties	Short-Term Borrowings and Short-Term Borrowings from Related PartiesAs of June 30, 2009 and December 31, 2008, short-term borrowings and short-term borrowings from related parties consisted of the following: June 30, 2009 December 31, 2008 Borrowings under lines of credit $ 72,675 $ 121,476 Accounts receivable facility 349,000 539,000 Other financial liabilities 23,969 22,679 Short-term borrowings 445,644 683,155 Short-term borrowings from related parties (see Note 2.c.) 109,885 1,330 Short-term borrowings including related parties $ 555,529 $ 684,485

Long-term Debt and Capital Leas

Long-term Debt and Capital Lease Obligations
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Long-term Debt and Capital Lease Obligations	Long-term Debt and Capital Lease ObligationsAs of June 30, 2009 and December 31, 2008, long-term debt and capital lease obligations consisted of the following: June 30, December 31, 2009 2008 2006 Senior Credit Agreement $ 3,555,110 $ 3,366,079 Senior Notes 492,900 492,456 Euro Notes 467,129 278,340 EIB Agreements 176,012 174,059 Capital lease obligations 12,218 13,394 Other 61,858 88,165 4,765,227 4,412,493 Less current maturities (344,674) (455,114) $ 4,420,553 $ 3,957,379 The following table shows the available and outstanding amounts under the 2006 Senior Credit Agreement at June 30, 2009 and December 31, 2008: Maximum Amount Available Balance Outstanding June 30, December 31, June 30, December 31, 2009 2008 2009 2008 Revolving Credit $ 1,000,000 $ 1,000,000 $ 560,851 $ 304,887 Term Loan A 1,432,278 1,491,139 1,432,278 1,491,139 Term Loan B 1,561,981 1,570,053 1,561,981 1,570,053 $ 3,994,259 $ 4,061,192 $ 3,555,110 $ 3,366,079 In addition, at June 30, 2009 and December 31, 2008, the Company had letters of credit outstanding in the amount of $111,994 which are not included above as part of the balance outstanding at those dates but which reduce available borrowings under the revolving credit facility.

Earnings Per Share

Earnings Per Share
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Earnings Per Share	Earnings Per ShareThe following table contains reconciliations of the numerators and denominators of the basic and diluted earnings per share computations for the three- and six-month periods ended June 30, 2009 and 2008: For the three months For the six months ended June 30, ended June 30, 2009 2008 2009 2008 Numerators: Net income attributable to FMC-AG Co. KGaA $ 221,113 $ 211,088 $ 419,219 $ 396,961 less: Dividend preference on Preference shares 26 30 50 58 Income available to all classes of shares $ 221,087 $ 211,058 $ 419,169 $ 396,903 Denominators: Weighted average number of: Ordinary shares outstanding 294,163,999 292,882,696 294,048,658 292,834,639 Preference shares outstanding 3,827,962 3,788,021 3,819,676 3,783,922 Total weighted average shares outstanding 297,991,961 296,670,717 297,868,334 296,618,561 Potentially dilutive Ordinary shares - 926,842 71,033 1,001,144 Potentially dilutive Preference shares 65,260 100,106 70,715 100,448 Total weighted average ordinary shares outstanding assuming dilution 294,163,999 293,809,538 294,119,691 293,835,783 Total weighted average Preference shares outstanding assuming dilution 3,893,222 3,888,127 3,890,391 3,884,370 Basic income per Ordinary share $ 0.74 $ 0.71 $ 1.41 $ 1.34 Plus preference per Preference shares 0.01 0.01 0.01 0.01 Basic income per Preference share $ 0.75 $ 0.72 $ 1.42 $ 1.35 Fully diluted income per Ordinary share $ 0.74 $ 0.71 $ 1.41 $ 1.33 Plus preference per Preference shares 0.01 0.01 0.01 0.02 Fully diluted income per Preference share $ 0.75 $ 0.72 $ 1.42 $ 1.35

Employee Benefit Plans

Employee Benefit Plans
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Employee Benefit Plans	Employee Benefit PlansThe Company currently has two principal pension plans, one for German employees, the other covering employees in the United States, the latter of which was curtailed in 2002. Plan benefits are generally based on years of service and final salary. Consistent with predominant practice in Germany, the Company's pension obligations in Germany are unfunded. Each year FMCH, a wholly-owned subsidiary of the Company and its principal North American subsidiary, contributes to the plan covering United States employees at least the minimum required by the Employee Retirement Income Security Act of 1974, as amended.The following table provides the calculations of net periodic benefit cost for the three-and six-month periods ended June 30, 2009 and 2008. Three months ended June 30, Six months endedJune 30, 2009 2008 2009 2008 Components of net periodic benefit cost: Service cost $ 1,966 $ 2,180 $ 3,868 $ 4,292 Interest cost 5,359 5,154 10,644 10,241 Expected return on plan assets (3,965) (4,236) (7,930) (8,475) Amortization of unrealized losses 1,218 400 2,436 801 Net periodic benefit costs $ 4,578 $ 3,498 $ 9,018 $ 6,859

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Commitments and Contingencies	Commitments and ContingenciesLegal ProceedingsThe Company is routinely involved in numerous claims, lawsuits, regulatory and tax audits, investigations and other legal matters arising, for the most part, in the ordinary course of its business of providing healthcare services and products. The outcome of litigation and other legal matters is always difficult to accurately predict and outcomes that are not consistent with the Companys view of the merits can occur. The Company believes that it has valid defenses to the legal matters pending against it and is defending itself vigorously. Nevertheless, it is possible that the resolution of one or more of the legal matters currently pending or threatened could have a material adverse effect on its business, results of operations and financial condition.Commercial LitigationThe Company was originally formed as a result of a series of transactions it completed pursuant to the Agreement and Plan of Reorganization dated as of February 4, 1996, by and between W.R. Grace Co. and Fresenius SE (the "Merger"). At the time of the Merger, a W.R. Grace Co. subsidiary known as W.R. Grace Co.-Conn. had, and continues to have, significant liabilities arising out of product-liability related litigation (including asbestos-related actions), pre-Merger tax claims and other claims unrelated to National Medical Care, Inc. (NMC), which was W.R. Grace Co.s dialysis business prior to the Merger. In connection with the Merger, W.R. Grace Co.-Conn. agreed to indemnify the Company, FMCH, and NMC against all liabilities of W.R. Grace Co., whether relating to events occurring before or after the Merger, other than liabilities arising from or relating to NMCs operations. W.R. Grace Co. and certain of its subsidiaries filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code (the Grace Chapter 11 Proceedings) on April 2, 2001. Prior to and after the commencement of the Grace Chapter 11 Proceedings, class action complaints were filed against W.R. Grace Co. and FMCH by plaintiffs claiming to be creditors of W.R. Grace Co.-Conn., and by the asbestos creditors committees on behalf of the W.R. Grace Co. bankruptcy estate in the Grace Chapter 11 Proceedings, alleging among other things that the Merger was a fraudulent conveyance, violated the uniform fraudulent transfer act and constituted a conspiracy. All such cases have been stayed and transferred to or are pending before the U.S. District Court as part of the Grace Chapter 11 Proceedings.In 2003, the Company reached agreement with the asbestos creditors committees on behalf of the W.R. Grace Co. bankruptcy estate and W.R. Grace Co. in the matters pending in the Grace Chapter 11 Proceedings for the settlement of all fraudulent conveyance and tax claims against it and other claims related to the Company that arise out of the bankruptcy of W.R. Grace Co. Under the terms of the settlement agreement as amended (the Settlement Agreement), fraudulent conveyance and other claims raised on behalf of asbestos claimants will be dismissed with prejudice and the Company will receive protection against existing and potential future W.R. Grace Co. related claims, inc

Financial Instruments

Financial Instruments
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Financial Instruments	Financial InstrumentsAs a global supplier of dialysis services and products in more than 115 countries throughout the world, the Company is faced with a concentration of credit risks due to the nature of the reimbursement systems which are often provided by the government of the countries in which the Company operates. Changes in reimbursement rates or the scope of coverage could have a material adverse effect on the Companys business, financial condition and results of operations and thus on its capacity to generate cash flow. In the past the Company experienced and also expects in the future generally stable reimbursements for its dialysis services. This includes the balancing of unfavorable reimbursement changes in certain countries with favorable changes in other countries. Due to the fact that a large portion of the Companys reimbursement is provided by public health care organizations and private insurers, the Company expects that most of its accounts receivables will be collectable, albeit somewhat more slowly in the International segment in the immediate future, particularly in countries most severely affected by the current global financial crisis.Non-derivative Financial InstrumentsThe following table presents the carrying amounts and fair values of the Companys non-derivative financial instruments at June 30, 2009, and December 31, 2008. June 30, December 31, 2009 2008 Carrying Fair Carrying Fair Amount Value Amount Value Non-derivatives Assets Cash and cash equivalents $ 229,651 $ 229,651 $ 221,584 $ 221,584 Receivables 2,392,409 2,392,409 2,351,841 2,351,841 Liabilities Accounts payable 496,212 496,212 605,260 605,260 Short-term borrowings 445,644 445,644 683,155 683,155 Short-term borrowings from related parties 109,885 109,885 1,330 1,330 Long term debt, excluding Euro and Senior Notes 3,805,198 3,805,198 3,641,697 3,641,697 Trust Preferred Securities 647,569 671,072 640,696 626,241 Euro Notes 467,129 467,238 278,340 276,154 Senior Notes 492,900 456,549 492,456 465,625 The carrying amounts in the table are included in the consolidated balance sheet under the indicated captions.The significant methods and assumptions used in estimating the fair values of non-derivative financial instruments are as follows:Cash and cash equivalents are stated at nominal value which equals the fair value.Short-term financial instruments such as accounts receivable and accounts payable and short-term borrowings are valued at their carrying amounts, which are reasonable estimates of the fair value due to the relatively short period to maturity of these instruments. The fair value of Senior Notes and trust preferred securities are based on market prices and quotes as of the balance sheet date. The fair values of other fixed-rate financial liabilities, for which market quotes are not available, are calculated as present value of the respective future cash flows. To determine these present values, the prevailing interest rates and credit spreads for the Company as of the balance sheet date are used. The fair values of financial

Business Segment Information

Business Segment Information
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Business Segment Information	Business Segment InformationThe Company has identified three business segments, North America, International, and Asia Pacific, which were determined based upon how the Company manages its businesses. All segments are primarily engaged in providing dialysis care services and manufacturing and distribution products and equipment for the treatment of ESRD. In the U.S., the Company is also engaged in performing clinical laboratory testing and providing inpatient dialysis services and other services under contract to hospitals. The Company has aggregated the International and Asia Pacific operating segments as International. The segments are aggregated due to their similar economic characteristics. These characteristics include the same services provided and products sold, the same type patient population, similar methods of distribution of products and services and similar economic environments.Management evaluates each segment using a measure that reflects all of the segments controllable revenues and expenses. Management believes that the most appropriate measure in this regard is operating income which measures the Companys source of earnings. Financing is a corporate function, which the Companys segments do not control. Therefore, the Company does not include interest expense relating to financing as a segment measure. Similarly, the Company does not allocate corporate costs, which relate primarily to certain headquarters overhead charges, including accounting and finance, professional services, etc. because the Company believes that these costs are also not within the control of the individual segments. The Company also regards income taxes to be outside the segments control. Information pertaining to the Companys business segments for the three and six-month periods ended June 30, 2009 and 2008 is set forth below. NorthAmerica International SegmentTotal Corporate Total Three months ended June 30, 2009 Net revenue external customers $ 1,876,347 $ 887,071 $ 2,763,418 $ 151 $ 2,763,569 Inter - segment revenue 769 21,467 22,236 (22,236) - Total net revenue 1,877,116 908,538 2,785,654 (22,085) 2,763,569 Depreciation and amortization (64,762) (43,420) (108,182) (2,189) (110,371) Operating income 297,495 153,548 451,043 (33,406) 417,637 Capital expenditures, acquisitions and investments 106,149 80,318 186,467 315 186,782 Three months ended June 30, 2008 Net revenue external customers $ 1,714,570 $ 950,566 $ 2,665,136 $ 160 $ 2,665,296 Inter - segment revenue - 19,900 19,900 (19,900) - Total net revenue 1,714,570 970,466 2,685,036 (19,740) 2,665,296 Depreciation and amortization (57,512) (42,835) (100,347) (1,891) (102,238) Operating income 289,854 166,681 456,535 (27,490) 429,045 Capital expenditures, acquisitions and investments 107,120 92,780 199,900 45,156 245,056 Six months ended June 30, 2009 Net revenue external customers $ 3,650,159 $ 1,672,914 $ 5,323,073 $ 306 $ 5,323,379 Inter - segment revenue 1,233 38,993 40,226 (40,226) - Total net revenue 3,651,392

Supplementary Cash Flow Informa

Supplementary Cash Flow Information
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Supplementary Cash Flow Information	Supplementary Cash Flow InformationThe following additional information is provided with respect to the consolidated statements of cash flows: Six months endedJune 30, 2009 2008 Supplementary cash flow information: Cash paid for interest $ 166,520 $ 180,311 Cash paid for income taxes $ 214,724 $ 181,579 Cash inflow for income taxes from stock option exercises $ 2,386 $ 1,550 Supplemental disclosures of cash flow information: Details for acquisitions: Assets acquired $ (97,004) $ (88,206) Liabilities assumed 6,227 5,687 Noncontrolling interest 13,585 (3,194) Notes assumed in connection with acquisition 1,828 2,227 Cash paid (75,364) (83,486) Less cash acquired 4,005 556 Net cash paid for acquisitions $ (71,359) $ (82,930)

Supplemental Condensed Combinin

Supplemental Condensed Combining Information
	3 Months Ended Jun. 30, 2009
Note to Consolidated Financial Statements (unaudited)
Supplemental Condensed Combining Information	Supplemental Condensed Combining InformationIn February 1998 FMC Trust Finance S..r.l. Luxembourg, and in June 2001 FMC Trust Finance S..r.l. Luxembourg III, each of which is a wholly-owned subsidiary of FMC-AG Co. KGaA, issued senior subordinated debt securities, fully and unconditionally guaranteed, jointly and severally, on a senior subordinated basis, by FMC-AG Co. KGaA, D-GmbH and FMCH (D-GmbH and FMCH being the Guarantor Subsidiaries). The senior subordinated debt securities were issued to statutory trusts organized under the laws of the State of Delaware, which issued trust preferred securities that were guaranteed by the Company through a series of undertakings by the Company and the Guarantor Subsidiaries, and the Company acquired all of the common securities of these trusts. In December 2004, the Company assumed the obligations of its wholly owned subsidiaries as the issuer of senior subordinated notes denominated in Deutschmark and euro held by Fresenius Medical Care Capital Trust III and Fresenius Medical Care Capital Trust V, respectively. FMC Trust Finance S..r.l. Luxembourg repaid $450 and DM300 aggregate principal amount of senior subordinated debt securities on February 1, 2008 in connection with the mandatory redemption on the same date of the related trust preferred securities issued by Fresenius Medical Care Capital Trust II and Fresenius Medical Care Capital Trust III.In addition, FMC Finance III S.A., a wholly-owned subsidiary of the Company, is the obligor on senior debt securities issued in June 2007 which are fully and unconditionally guaranteed, jointly and severally on a senior basis, by the Company and by the Guarantor Subsidiaries. The following combining financial information for the Company is as of June30, 2009 and December 31, 2008 and for the six month periods ended June 30, 2009, June 30, 2008 and, segregated between FMC Finance III S.A., the Company, D-GmbH, FMCH, and each of the Company's other businesses (the "Non-Guarantor Subsidiaries"). For purposes of the condensed combining information, the Company and the Guarantor Subsidiaries carry their investments under the equity method. Other (income) expense includes income and losses related to investments in consolidated subsidiaries recorded under the equity method for purposes of the condensed combining information. In addition, other (income) expense includes income and losses from profit and loss transfer agreements as well as dividends received. For the six months period ended June 30, 2009 Issuer Guarantors Non-Guarantor Combining Combined FMC Finance III FMC - AG Co. KGaA D-GmbH FMCH Subsidiaries Adjustment Total Net revenue $ - $ - $ 1,239,674 $ - $ 4,676,069 $ (592,364) $ 5,323,379 Cost of revenue - - 998,405 - 3,132,100 (601,143) 3,529,362 Gross profit - - 241,269 - 1,543,969 8,779 1,794,017 Operating expenses (income): Selling, general and administrative 11 34,898 86,671 (12,601) 829,429 278 938,686 Research and development - - 28,746 - 13,106 - 41,852 Operating (loss) income (11) (34,898) 125,852 12,6