Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020 | |
Document and Entity Information | |
Entity Registrant Name | FRESENIUS MEDICAL CARE AG & Co. KGaA |
Entity Central Index Key | 0001333141 |
Document Type | 6-K |
Document Period End Date | Mar. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Consolidated statements of inco
Consolidated statements of income - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Health care services | € 3,594,663 | € 3,317,308 |
Health care products | 893,133 | 815,249 |
Revenue | 4,487,796 | 4,132,557 |
Costs of revenue: | ||
Health care services | 2,699,978 | 2,505,423 |
Health care products | 377,050 | 361,846 |
Costs of revenue | 3,077,028 | 2,867,269 |
Gross profit | 1,410,768 | 1,265,288 |
Operating (income) expenses: | ||
Selling, general and administrative | 854,462 | 720,173 |
(Gain) loss related to divestiture of Care Coordination activities | (24,332) | |
Research and development | 45,917 | 28,598 |
Income from equity method investees | (20,409) | (20,033) |
Operating income | 555,130 | 536,550 |
Other (income) expense: | ||
Interest income | (8,751) | (27,944) |
Interest expense | 112,970 | 135,792 |
Income before income taxes | 450,911 | 428,702 |
Income tax expense | 100,542 | 100,944 |
Net income | 350,369 | 327,758 |
Net income attributable to noncontrolling interests | 67,650 | 57,009 |
Net income attributable to shareholders of FMC-AG & Co. KGaA | € 282,719 | € 270,749 |
Basic earnings per share | € 0.95 | € 0.88 |
Diluted earnings per share | € 0.95 | € 0.88 |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Consolidated statements of comprehensive income | |||
Net income | € 350,369 | € 327,758 | |
Components that may be reclassified subsequently to profit or loss: | |||
Gain (loss) related to foreign currency translation | 105,678 | 275,349 | |
Gain (loss) related to cash flow hedges | [1] | 6,288 | (1,296) |
Income tax (expense) benefit related to components of other comprehensive income that may be reclassified | (1,878) | 426 | |
Other comprehensive income (loss), net | 110,088 | 274,479 | |
Total comprehensive income | 460,457 | 602,237 | |
Comprehensive income attributable to noncontrolling interests | 90,094 | 78,022 | |
Comprehensive income attributable to shareholders of FMC-AG & Co. KGaA | € 370,363 | € 524,215 | |
[1] | Including cost of hedging in the amount of €(1,139) and €(893) for the three months ended March 31, 2020 and 2019. |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated statements of comprehensive income | ||
Cost of hedging | € (1,139) | € (893) |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | € 1,405,052 | € 1,007,723 |
Trade accounts and other receivables | 3,708,028 | 3,421,346 |
Accounts receivable from related parties | 128,033 | 159,196 |
Inventories | 1,743,099 | 1,663,278 |
Other current assets | 871,672 | 913,603 |
Total current assets | 7,855,884 | 7,165,146 |
Property, plant and equipment | 4,242,576 | 4,190,281 |
Right-of-use assets | 4,401,235 | 4,325,115 |
Intangible assets | 1,469,214 | 1,426,330 |
Goodwill | 14,257,982 | 14,017,255 |
Deferred taxes | 382,470 | 361,196 |
Investment in equity method investees | 717,142 | 696,872 |
Other non-current assets | 745,924 | 752,540 |
Total non-current assets | 26,216,543 | 25,769,589 |
Total assets | 34,072,427 | 32,934,735 |
Liabilities | ||
Accounts payable | 762,384 | 716,526 |
Accounts payable to related parties | 134,159 | 118,663 |
Current provisions and other current liabilities | 2,947,601 | 2,812,419 |
Short-term debt | 1,506,911 | 1,149,988 |
Short-term debt from related parties | 520,600 | 21,865 |
Current portion of long-term debt | 1,964,695 | 1,447,239 |
Current portion of long-term lease liabilities | 629,856 | 622,227 |
Current portion of long-term lease liabilities from related parties | 17,073 | 16,514 |
Income tax payable | 118,967 | 101,793 |
Total current liabilities | 8,602,246 | 7,007,234 |
Long-term debt, less current portion | 5,803,399 | 6,458,318 |
Long-term lease liabilities, less current portion | 4,030,231 | 3,959,865 |
Long-term lease liabilities from related parties, less current portion | 104,469 | 106,432 |
Non-current provisions and other non-current liabilities | 677,364 | 668,747 |
Pension liabilities | 704,422 | 689,195 |
Income tax payable | 81,214 | 78,005 |
Deferred taxes | 799,146 | 739,702 |
Total non-current liabilities | 12,200,245 | 12,700,264 |
Total liabilities | 20,802,491 | 19,707,498 |
Shareholders' equity | ||
Ordinary shares, no par value, 1.00 nominal value, 374,165,226 shares authorized, 304,444,441 issued and 293,344,152 outstanding as of March 31, 2020 and 374,165,226 shares authorized, 304,436,876 issued and 298,329,247 outstanding as of December 31, 2019 | 304,444 | 304,437 |
Treasury stock, at cost | (692,666) | (370,502) |
Additional paid-in capital | 3,603,310 | 3,607,662 |
Retained earnings | 9,732,241 | 9,454,861 |
Accumulated other comprehensive income (loss) | (950,901) | (1,038,545) |
Total FMC-AG & Co. KGaA shareholders' equity | 11,996,428 | 11,957,913 |
Noncontrolling interests | 1,273,508 | 1,269,324 |
Total equity | 13,269,936 | 13,227,237 |
Total liabilities and equity | € 34,072,427 | € 32,934,735 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - € / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated balance sheets | ||
Par value | € 0 | |
Nominal value per share | € 1 | |
Shares authorized | 374,165,226 | 374,165,226 |
Shares issued | 304,444,441 | 304,436,876 |
Shares outstanding | 293,344,152 | 298,329,247 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | € 350,369 | € 327,758 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and impairment loss | 400,687 | 362,376 |
Change in deferred taxes, net | (29,271) | 53,960 |
(Gain) loss from the sale of fixed assets, right-of-use assets, investments and divestitures | 17,709 | (8,563) |
Compensation expense related to share-based plans | 1,380 | |
Investments in equity method investees, net | (19,266) | 20,894 |
Interest expense, net | 104,219 | 107,848 |
Changes in assets and liabilities, net of amounts from businesses acquired: | ||
Trade accounts and other receivables | (286,867) | (413,817) |
Inventories | (82,230) | (141,258) |
Other current and non-current assets | 83,873 | (70,828) |
Accounts receivable from related parties | 32,219 | (18,700) |
Accounts payable to related parties | 14,736 | 54,840 |
Accounts payable, provisions and other current and non-current liabilities | 83,290 | (67,346) |
Paid interest | (111,538) | (135,041) |
Received interest | 8,751 | 12,644 |
Income tax payable | 53,048 | 69,244 |
Paid income taxes | (35,662) | (79,832) |
Net cash provided by (used in) operating activities | 584,067 | 75,559 |
Investing activities | ||
Purchases of property, plant and equipment | (281,977) | (200,849) |
Proceeds from sale of property, plant and equipment | 1,444 | 1,911 |
Acquisitions and investments, net of cash acquired, and purchases of intangible assets | (37,800) | (1,828,525) |
Proceeds from divestitures | 6,000 | 11,012 |
Net cash provided by (used in) investing activities | (312,333) | (2,016,451) |
Financing activities | ||
Proceeds from short-term debt | 535,063 | 175,009 |
Repayments of short-term debt | (177,570) | (64,027) |
Proceeds from short-term debt from related parties | 498,811 | |
Repayments of short-term debt from related parties | (81,500) | |
Proceeds from long-term debt | 12,664 | 414,458 |
Repayments of long-term debt | (568,648) | (17,421) |
Repayments of lease liabilities | (172,352) | (151,856) |
Repayments of lease liabilities from related parties | (4,117) | (4,066) |
Increase (decrease) of accounts receivable facility | 270,936 | 584,185 |
Proceeds from exercise of stock options | 415 | 148 |
Purchase of treasury stock | (216,123) | (89,446) |
Distributions to noncontrolling interests | (61,806) | (54,873) |
Contributions from noncontrolling interests | 4,041 | 11,545 |
Net cash provided by (used in) financing activities | 121,314 | 722,156 |
Effect of exchange rate changes on cash and cash equivalents | 4,281 | 31,892 |
Cash and cash equivalents: | ||
Net increase (decrease) in cash and cash equivalents | 397,329 | (1,186,844) |
Cash and cash equivalents at beginning of period | 1,007,723 | 2,145,632 |
Cash and cash equivalents at end of period | € 1,405,052 | € 958,788 |
Consolidated statements of shar
Consolidated statements of shareholders' equity - EUR (€) € in Thousands | Total FMC-AG & Co. KGaA shareholders' equityIFRS 16 | Total FMC-AG & Co. KGaA shareholders' equity | Ordinary shares | Treasury stock | Additional paid in capital | Retained earningsIFRS 16 | Retained earnings | Foreign currency translation | Cash flow hedges | Pensions | Noncontrolling interestsIFRS 16 | Noncontrolling interests | IFRS 16 | Total |
Balance at beginning of period at Dec. 31, 2018 | € 11,758,411 | € 307,879 | € (50,993) | € 3,873,345 | € 8,831,930 | € (911,473) | € (1,528) | € (290,749) | € 1,143,547 | € 12,901,958 | ||||
Balance at beginning of period (in shares) at Dec. 31, 2018 | 307,878,652 | (999,951) | ||||||||||||
Adjustment due to initial application at Dec. 31, 2018 | € (120,809) | € (120,809) | € (15,526) | € (136,335) | ||||||||||
Adjusted balance at Dec. 31, 2018 | 11,637,602 | € 307,879 | € (50,993) | 3,873,345 | 8,711,121 | (911,473) | (1,528) | (290,749) | 1,128,021 | 12,765,623 | ||||
Adjusted balance (in shares) at Dec. 31, 2018 | 307,878,652 | (999,951) | ||||||||||||
Proceeds from exercise of options and related tax effects | (1,298) | € 28 | (1,326) | (1,298) | ||||||||||
Proceeds from exercise of options and related tax effects (in shares) | 28,641 | |||||||||||||
Compensation expense related to stock options | 1,380 | 1,380 | 1,380 | |||||||||||
Purchase of treasury stock | (113,816) | € (113,816) | (113,816) | |||||||||||
Purchase of treasury stock (in shares) | (1,629,240) | |||||||||||||
Purchase/sale of noncontrolling interests | (1,491) | (1,491) | 16,142 | 14,651 | ||||||||||
Contributions from/to noncontrolling interests | (46,274) | (46,274) | ||||||||||||
Noncontrolling interests subject to put provisions | 4,001 | 4,001 | 4,001 | |||||||||||
Net income | 270,749 | 270,749 | 57,009 | 327,758 | ||||||||||
Other comprehensive income (loss) related to: | ||||||||||||||
Foreign currency translation | 254,336 | 257,324 | (6) | (2,982) | 21,013 | 275,349 | ||||||||
Cash flow hedges, net of related tax effects | (870) | (870) | (870) | |||||||||||
Total comprehensive income | 524,215 | 78,022 | 602,237 | |||||||||||
Balance at end of period at Mar. 31, 2019 | 12,050,593 | € 307,907 | € (164,809) | 3,871,908 | 8,985,871 | (654,149) | (2,404) | (293,731) | 1,175,911 | 13,226,504 | ||||
Balance at end of period (in shares) at Mar. 31, 2019 | 307,907,293 | (2,629,191) | ||||||||||||
Balance at beginning of period at Dec. 31, 2019 | 11,957,913 | € 304,437 | € (370,502) | 3,607,662 | 9,454,861 | (664,987) | (10,460) | (363,098) | 1,269,324 | € 13,227,237 | ||||
Balance at beginning of period (in shares) at Dec. 31, 2019 | 304,436,876 | (6,107,629) | 304,436,876 | |||||||||||
Proceeds from exercise of options and related tax effects | 220 | € 7 | 213 | € 220 | ||||||||||
Proceeds from exercise of options and related tax effects (in shares) | 7,565 | |||||||||||||
Purchase of treasury stock | (322,164) | € (322,164) | (322,164) | |||||||||||
Purchase of treasury stock (in shares) | (4,992,660) | |||||||||||||
Purchase/sale of noncontrolling interests | (4,565) | (4,565) | (29,731) | (34,296) | ||||||||||
Contributions from/to noncontrolling interests | (56,179) | (56,179) | ||||||||||||
Noncontrolling interests subject to put provisions | (5,339) | (5,339) | (5,339) | |||||||||||
Net income | 282,719 | 282,719 | 67,650 | 350,369 | ||||||||||
Other comprehensive income (loss) related to: | ||||||||||||||
Foreign currency translation | 83,234 | 87,623 | (237) | (4,152) | 22,444 | 105,678 | ||||||||
Cash flow hedges, net of related tax effects | 4,410 | 4,410 | 4,410 | |||||||||||
Total comprehensive income | 370,363 | 90,094 | 460,457 | |||||||||||
Balance at end of period at Mar. 31, 2020 | € 11,996,428 | € 304,444 | € (692,666) | € 3,603,310 | € 9,732,241 | € (577,364) | € (6,287) | € (367,250) | € 1,273,508 | € 13,269,936 | ||||
Balance at end of period (in shares) at Mar. 31, 2020 | 304,444,441 | (11,100,289) | 304,444,441 |
The Company and basis of presen
The Company and basis of presentation | 3 Months Ended |
Mar. 31, 2020 | |
The Company and basis of presentation | |
The Company and basis of presentation | 1. The Company and basis of presentation The Company Fresenius Medical Care AG & Co. KGaA (“FMC-AG & Co. KGaA” or the “Company”), a German partnership limited by shares (Kommanditgesellschaft auf Aktien) registered in the commercial registry of Hof an der Saale under HRB 4019, with its business address at Else-Kröner-Str. 1, 61352 Bad Homburg v. d. Höhe, is the world’s largest kidney dialysis company, based on publicly reported revenue and number of patients treated. The Company provides dialysis care and related dialysis care services to persons who suffer from end-stage renal disease (“ESRD”), as well as other health care services. The Company also develops, manufactures and distributes a wide variety of health care products, which includes dialysis and non-dialysis products. The Company’s dialysis products include hemodialysis machines, peritoneal cyclers, dialyzers, peritoneal solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals and systems for water treatment. The Company’s non-dialysis products include acute cardiopulmonary and apheresis products. The Company supplies dialysis clinics it owns, operates or manages with a broad range of products and also sells dialysis products to other dialysis service providers. The Company describes certain of its other health care services as “Care Coordination.” Care Coordination currently includes, but is not limited to, value and risk-based arrangements, pharmacy services, vascular, cardiovascular and endovascular specialty services as well as ambulatory surgery center services, physician nephrology and cardiology services, urgent care services and ambulant treatment services. All of these Care Coordination services together with dialysis care and related services represent the Company’s health care services. In these unaudited consolidated financial statements, “FMC-AG & Co. KGaA,” or the “Company” refers to the Company or the Company and its subsidiaries on a consolidated basis, as the context requires. “Fresenius SE” and “Fresenius SE & Co. KGaA” refer to Fresenius SE & Co. KGaA. “Management AG” and the “General Partner” refer to Fresenius Medical Care Management AG which is FMC-AG & Co. KGaA’s general partner and is wholly owned by Fresenius SE. “Management Board” refers to the members of the management board of Management AG and, except as otherwise specified, “Supervisory Board” refers to the supervisory board of FMC-AG & Co. KGaA. The term “North America Segment” refers to the North America operating segment, the term “EMEA Segment” refers to the Europe, Middle East and Africa operating segment, the term “Asia-Pacific Segment” refers to the Asia-Pacific operating segment, and the term “Latin America Segment” refers to the Latin America operating segment. For further discussion of the Company’s operating segments, see note 10. Basis of presentation The consolidated financial statements and other financial information included in the Company’s quarterly reports on Form 6-K and its Annual Report on Form 20-F are prepared solely in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), using the euro as the Company's reporting currency. The quarterly financial report is prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, and contains condensed financial statements, in that it does not include all of the notes that would be required in a complete set of financial statements, but rather selected explanatory notes. However, the primary financial statements are presented in the format consistent with the consolidated financial statements as presented in the Company’s Annual Report on Form 20-F in accordance with IAS 1, Presentation of Financial Statements. The consolidated financial statements at March 31, 2020 and for the three months ended March 31, 2020 and 2019 contained in this report are unaudited and should be read in conjunction with the consolidated financial statements contained in the Company's 2019 Annual Report on Form 20-F. The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 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. Starting on July 1, 2018, the Company’s subsidiaries in Argentina applied IAS 29, Financial Reporting in Hyperinflationary Economies, due to the inflation in Argentina. Pursuant to IAS 29, the Company recorded a loss on its net monetary position of €4,131 for the three months ended March 31, 2020. The Company calculated the loss with the use of the Consumer Price Index (Índice de precios al consumidor) as published by the Argentine Statistics and Census Institute for the three months ended March 31, 2020, which lists the level at 305.6 index points, an 8% increase since January 1, 2020. In the consolidated statements of income “Research and development” expense in the amount of €5,016 for the three months ended March 31, 2019, has been reclassified to “Selling, general and administrative” expense to conform to the current year’s presentation. In the consolidated statements of cash flows, receivables from equity-method investees in the amount of €16,224 for the three months ended March 31, 2019 have been reclassified from line item “Trade accounts and other receivables” to line item “Accounts receivable from related parties” to conform to the current year’s presentation. As a result of an update to a multi-currency notional pooling cash management system, cash and cash equivalents and short-term debt associated with this system are presented separately on the consolidated balance sheet as of March 31, 2020, resulting in increased borrowings under lines of credit related to this cash management system in the amount of €352,846 (see note 5). The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations for the year ending December 31, 2020. At May 6, 2020, the Management Board authorized the consolidated financial statements for issue. New accounting pronouncements Recently implemented accounting pronouncements The Company has prepared its consolidated financial statements at and for the three months ended March 31, 2020 in conformity with IFRS that have to be applied for the interim periods on January 1, 2020. In the first quarter of 2020, there were no recently implemented accounting pronouncements that had a material effect on the Company’s consolidated financial statements. Recent accounting pronouncements not yet adopted The IASB issued the following new standard which is relevant for the Company: IFRS 17, Insurance Contracts In May 2017, the IASB issued IFRS 17, Insurance Contracts. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure related to the issuance of insurance contracts. IFRS 17 replaces IFRS 4, Insurance Contracts, which was brought in as an interim standard in 2004. IFRS 4 permitted the use of national accounting standards for the accounting of insurance contracts under IFRS. As a result of the varied application for insurance contracts there was a lack of comparability among peer groups. IFRS 17 eliminates this diversity in practice by requiring all insurance contracts to be accounted for using current values. The frequent updates to the insurance values are expected to provide more useful information to users of financial statements. On March 17, 2020, the IASB decided to defer the effective date of the standard to annual reporting periods beginning on or after January 1, 2023. Earlier adoption is permitted for entities that have also adopted IFRS 9, Financial Instruments and IFRS 15, Revenue from Contracts with Customers. The Company is evaluating the impact of IFRS 17 on the consolidated financial statements. In the Company’s view, no other pronouncements issued by the IASB are expected to have a material impact on the consolidated financial statements. |
Notes to the consolidated state
Notes to the consolidated statements of income | 3 Months Ended |
Mar. 31, 2020 | |
Notes to the consolidated statements of income | |
Notes to the consolidated statements of income | 2. Notes to the consolidated statements of income a) Revenue The Company has recognized the following revenue in the consolidated statement of income for the three months ended March 31, 2020 and 2019: Revenue in € THOUS For the three months ended March 31, 2020 2019 Revenue from Revenue from contracts with Other contracts with Other customers revenue Total customers revenue Total Health care services Dialysis services 3,198,252 — 3,198,252 2,957,381 — 2,957,381 Care Coordination 317,320 79,091 396,411 299,544 60,383 359,927 3,515,572 79,091 3,594,663 3,256,925 60,383 3,317,308 Health care products Dialysis products 841,863 22,771 864,634 762,885 33,790 796,675 Non-dialysis products 28,499 — 28,499 18,574 — 18,574 870,362 22,771 893,133 781,459 33,790 815,249 Total 4,385,934 101,862 4,487,796 4,038,384 94,173 4,132,557 b) Research and development expenses Research and development expenses of €45,917 for the three months ended March 31, 2020 (for the three months ended March 31, 2019: €28,598) included research and non-capitalizable development costs as well as depreciation and amortization expenses related to capitalized development costs of €1,263 (for the three months ended March 31, 2019: €92). c) Earnings per share The following table contains reconciliations of the numerators and denominators of the basic and fully diluted earnings per share computations for 2020 and 2019: Reconciliation of basic and diluted earnings per share in € THOUS, except share and per share data For the three months ended March 31, 2020 2019 Numerator: Net income attributable to shareholders of FMC-AG & Co. KGaA 282,719 270,749 Denominators: Weighted average number of shares outstanding 297,842,343 306,659,364 Potentially dilutive shares 219,801 — Basic earnings per share 0.95 0.88 Diluted earnings per share 0.95 0.88 Share buy-back program In 2020, the Company continued to utilize the authorization granted by the Company’s Annual General Meeting on May 12, 2016 to conduct a share buy-back program. The current share buy-back program, announced on June 14, 2019 allowed for repurchase of a maximum of 12,000,000 shares at a total purchase price, excluding ancillary transaction costs, of up to €660,000 between June 17, 2019 and June 17, 2020. On April 1, 2020, the Company concluded the current buy-back program. The prior buy-back program expired on May 10, 2019 and the repurchased shares were retired. The following tabular disclosure provides the number of shares acquired in the context of the share buy-back programs as well as the retired treasury stock: Treasury Stock Total number of shares purchased and retired as part of publicly Average price per announced plans or Total value of Period share programs shares (1) in € in € THOUS December 31, 2018 51.00 999,951 50,993 Purchase of Treasury Stock March 2019 69.86 1,629,240 113,816 April 2019 72.83 1,993,974 145,214 May 2019 72.97 147,558 10,766 Repurchased Treasury Stock 71.55 3,770,772 269,796 Retirement of repurchased Treasury Stock June 2019 71.55 3,770,772 269,796 Purchase of Treasury Stock June 2019 67.11 504,672 33,870 July 2019 66.77 1,029,655 68,748 August 2019 57.53 835,208 48,050 September 2019 59.67 627,466 37,445 October 2019 57.85 692,910 40,084 November 2019 64.78 852,859 55,245 December 2019 63.85 564,908 36,067 Repurchased Treasury Stock 62.55 5,107,678 319,509 December 31, 2019 60.66 6,107,629 370,502 Purchase of Treasury Stock January 2020 84.37 124,398 10,495 February 2020 (2) 249.10 25,319 6,307 March 2020 63.05 4,842,943 305,362 Repurchased Treasury Stock ( 3 ) 64.53 4,992,660 322,164 TOTAL (4) 62.40 11,100,289 692,666 (1) The value of shares previously repurchased and included above as of December 31, 2018 is inclusive of fees (net of taxes) paid in the amount of approximately €11 (in € THOUS) for services rendered. (2) The purchase price of the shares of the program beginning on June 17, 2019 is based on the volume weighted average price of the Company's shares for the period and changes in the volume weighted average price resulted in retroactive adjustments to the purchase price, even if no shares were purchased. The February adjustment, in combination with lower shares purchased, resulted in a particularly high average price per share for the month. (3) At March 31, 2020, the maximum number of shares that may be purchased pursuant to the buy-back program expiring on June 17, 2020 was 1,899,662. (4) On April 1, 2020, 694,813 shares were repurchased at an average share price of €63.07 for a total value of €43,824 THOUS. As of March 31, 2020, the Company holds 11,100,289 treasury shares. These shares will be used solely to reduce the registered share capital of the Company by cancellation of the acquired shares. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related party transactions | |
Related party transactions | 3. Related party transactions Fresenius SE is the Company’s largest shareholder and owns 32.17% of the Company’s outstanding shares, excluding treasury shares held by the Company, at March 31, 2020. The Company has entered into certain arrangements for services and products with Fresenius SE or its subsidiaries and with certain of the Company’s equity method investees as described in item a) below. The arrangements for leases with Fresenius SE or its subsidiaries are described in item b) below. The Company’s terms related to the receivables or payables for these services, leases and products are generally consistent with the normal terms of the Company’s ordinary course of business transactions with unrelated parties and the Company believes that these arrangements reflect fair market terms. The Company utilizes various methods to verify the commercial reasonableness of its related party arrangements. Financing arrangements as described in item c) below have agreed upon terms which are determined at the time such financing transactions occur and reflect market rates at the time of the transaction. The relationship between the Company and its key management personnel who are considered to be related parties is described in item d) below. Our related party transactions are settled through Fresenius SE’s cash management system where appropriate. a) Service agreements and products The Company is party to service agreements with Fresenius SE and certain of its affiliates (collectively the “Fresenius SE Companies”) to receive services, including, but not limited to: administrative services, management information services, employee benefit administration, insurance, information technology services, tax services and treasury management services. The Company also provides central purchasing services to the Fresenius SE Companies. These related party agreements generally have a duration of 1 to 5 years and are renegotiated on an as needed basis when the agreement comes due. The Company provides administrative services to one of its equity method investees. The Company sold products to the Fresenius SE Companies and made purchases from the Fresenius SE Companies and equity method investees. In addition, Fresenius Medical Care Holdings, Inc. (“FMCH”) purchases heparin supplied by Fresenius Kabi USA, Inc. (“Kabi USA”), through an independent group purchasing organization (“GPO”). Kabi USA is an indirect, wholly-owned subsidiary of Fresenius SE. The Company has no direct supply agreement with Kabi USA and does not submit purchase orders directly to Kabi USA. FMCH acquires heparin from Kabi USA, through the GPO contract, which was negotiated by the GPO at arm’s length on behalf of all members of the GPO. In December 2010, the Company and Galenica Ltd. (now known as Vifor Pharma Ltd.) formed the renal pharmaceutical company Vifor Fresenius Medical Care Renal Pharma Ltd., an equity method investee of which the Company owns 45%. The Company has entered into exclusive supply agreements to purchase certain pharmaceuticals from Vifor Fresenius Medical Care Renal Pharma Ltd. Under the Centers for Medicare and Medicaid Services’ (“CMS”) Comprehensive ESRD Care Model, the Company and participating physicians formed entities known as ESCOs as part of a payment and care delivery model that seeks to deliver better health outcomes for Medicare ESRD patients while lowering CMS’ costs. The Company has entered into participation/service agreements with these ESCOs, which are accounted for as equity method investees. Below is a summary, including the Company’s receivables from and payables to the indicated parties, resulting from the above described transactions with related parties. Service agreements and products with related parties in € THOUS For the three months ended For the three months ended March 31, December 31, March 31, 2020 March 31, 2019 2020 2019 Sales of Purchases of Sales of Purchases of goods and goods and goods and goods and Accounts Accounts Accounts Accounts services services services services receivable payable receivable payable Service agreements (1) Fresenius SE 28 5,450 32 5,182 996 3,515 35 360 Fresenius SE affiliates 1,187 26,328 940 24,652 2,431 6,560 2,003 6,416 Equity method investees 2,109 — 16,954 — 67,515 — 68,300 — Total 3,324 31,778 17,926 29,834 70,942 10,075 70,338 6,776 Products Fresenius SE affiliates 10,821 9,048 9,862 8,290 15,276 3,162 16,803 3,405 Equity method investees — 112,129 — 124,654 — 80,665 — 36,262 Total 10,821 121,177 9,862 132,944 15,276 83,827 16,803 39,667 (1) In addition to the above shown accounts payable, accrued expenses for service agreements with related parties amounted to €7,185 and €8,352 at March 31, 2020 and December 31, 2019, respectively. b) Lease agreements In addition to the above-mentioned product and service agreements, the Company is a party to real estate lease agreements with the Fresenius SE Companies, which mainly include leases for the Company’s corporate headquarters in Bad Homburg, Germany and production sites in Schweinfurt and St. Wendel, Germany. The majority of the leases expire at the end of 2026. Below is a summary resulting from the above described lease agreements with related parties. Lease agreements with related parties in € THOUS For the three months ended For the three months ended March 31, 2020 March 31, 2019 March 31, 2020 December 31, 2019 Interest Lease Interest Lease Right-of-use Lease Right-of-use Lease Depreciation expense expense (1) Depreciation expense expense (1) asset liability asset liability Fresenius SE 1,124 110 1,099 1,214 137 854 30,452 30,725 30,336 30,820 Fresenius SE affiliates 3,247 334 70 3,089 353 161 89,993 90,817 91,879 92,126 Total 4,371 444 1,169 4,303 490 1,015 120,445 121,542 122,215 122,946 (1) Short-term leases and expenses relating to variable lease payments are exempted from balance sheet recognition . c) Financing The Company receives short-term financing from and provides short-term financing to Fresenius SE. The Company also utilizes Fresenius SE’s cash management system for the settlement of certain intercompany receivables and payables with its subsidiaries and other related parties. As of March 31, 2020 and December 31, 2019, the Company had accounts receivable from Fresenius SE related to short-term financing in the amount of €39,538 and €71,078, respectively. As of March 31, 2020, the Company did not have accounts payable to Fresenius SE related to short-term financing. As of December 31, 2019, the Company had accounts payable to Fresenius SE related to short-term financing in the amount of €38,050. The interest rates for these cash management arrangements are set on a daily basis and are based on the then-prevailing overnight reference rate, with a floor of zero, for the respective currencies. On August 19, 2009, the Company borrowed €1,500 from the General Partner on an unsecured basis at 1.335%. The loan repayment has been extended periodically and is currently due August 21, 2020 with an interest rate of 0.930%. On November 28, 2013, the Company borrowed an additional €1,500 with an interest rate of 1.875% from the General Partner. The loan repayment has been extended periodically and is currently due on November 23, 2020 with an interest rate of 0.930%. At March 31, 2020 and December 31, 2019, a subsidiary of Fresenius SE held unsecured bonds issued by the Company in the amount of €1,000 and €1,000, respectively. These bonds were issued in 2011 with a coupon of 5.25% and interest payable semiannually until maturity in 2021. At March 31, 2020 and December 31, 2019, the Company borrowed from Fresenius SE in the amount of €517,600 on an unsecured basis at an interest rate of 0.930% and €18,865 on an unsecured basis at an interest rate of 0.930%, respectively. For further information on this loan agreement, see note 5. d) Key management personnel Due to the Company’s legal form of a German partnership limited by shares, the General Partner holds a key management position within the Company. In addition, as key management personnel, members of the Management Board and the Supervisory Board, as well as their close relatives, are considered related parties. The Company’s Articles of Association provide that the General Partner shall be reimbursed for any and all expenses in connection with management of the Company’s business, including remuneration of the members of the General Partner’s supervisory board and the members of the Management Board. The aggregate amount reimbursed to the General Partner was €8,265 and €8,028 for its management services during the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020 and December 31, 2019, the Company had accounts receivable from the General Partner in the amount of €2,277 and €977, respectively. As of March 31, 2020 and December 31, 2019, the Company had accounts payable to the General Partner in the amount of €40,257 and €34,170, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Inventories | 4. Inventories At March 31, 2020 and December 31, 2019, inventories consisted of the following: Inventories in € THOUS March 31, December 31, 2020 2019 Finished goods 999,632 940,407 Health care supplies 398,200 399,585 Raw materials and purchased components 235,148 227,654 Work in process 110,119 95,632 Inventories 1,743,099 1,663,278 |
Short-term debt and short-term
Short-term debt and short-term debt from related parties | 3 Months Ended |
Mar. 31, 2020 | |
Short-term debt and short-term debt from related parties | |
Short-term debt and short-term debt from related parties | 5. Short-term debt and short-term debt from related parties At March 31, 2020 and December 31, 2019, short-term debt and short-term debt from related parties consisted of the following: Short-term debt and short-term debt from related parties in € THOUS March 31, December 31, 2020 2019 Commercial paper program 929,775 999,732 Borrowings under lines of credit 570,833 143,875 Other 6,303 6,381 Short-term debt 1,506,911 1,149,988 Short-term debt from related parties (see note 3 c) 520,600 21,865 Short-term debt and short-term debt from related parties 2,027,511 1,171,853 The Company and certain consolidated entities operate a multi-currency notional pooling cash management system. At March 31, 2020, borrowings under lines of credit related to this cash management system were €352,846. As of December 31, 2019, borrowings under lines of credit in the amount of €152,598 were offset under this cash management system. Commercial paper program The Company maintains a commercial paper program under which short-term notes of up to €1,000,000 can be issued. At March 31, 2020, the outstanding commercial paper amounted to €930,000 (December 31, 2019: €1,000,000). Other At March 31, 2020, the Company had €6,303 (December 31, 2019: €6,381) of other debt outstanding related to fixed payments outstanding for acquisitions. Short-term debt from related parties On July 31, 2019, the Company and one of its subsidiaries, as borrowers, and Fresenius SE, as lender, amended and restated an unsecured loan agreement to increase the aggregate amount from $400,000 to €600,000. The Company and one of its subsidiaries may request and receive one or more short-term advances until maturity on July 31, 2022. For further information on short-term debt from related parties, see note 3 c). |
Long-term debt
Long-term debt | 3 Months Ended |
Mar. 31, 2020 | |
Long-term debt | |
Long-term debt | 6. Long-term debt As of March 31, 2020 and December 31, 2019, long-term debt consisted of the following: Long-term debt in € THOUS March 31, December 31, 2020 2019 Amended 2012 Credit Agreement 1,793,097 1,901,372 Bonds 5,030,206 4,966,619 Convertible Bonds — 399,939 Accounts Receivable Facility 662,030 379,570 Other 282,761 258,057 Long-term debt 7,768,094 7,905,557 Less current portion (1,964,695) (1,447,239) Long-term debt, less current portion 5,803,399 6,458,318 Amended 2012 Credit Agreement The following table shows the available and outstanding amounts under the Amended 2012 Credit Agreement at March 31, 2020 and December 31, 2019: Amended 2012 Credit Agreement - Maximum amount available and balance outstanding in THOUS Maximum amount available Balance outstanding March 31, 2020 March 31, 2020 (1) Revolving credit USD 2017 / 2022 $ 900,000 € 821,468 $ 23,176 € 21,154 Revolving credit EUR 2017 / 2022 € 600,000 € 600,000 € — € — USD term loan 2017 / 2022 $ 1,200,000 € 1,095,290 $ 1,200,000 € 1,095,290 EUR term loan 2017 / 2022 € 280,000 € 280,000 € 280,000 € 280,000 EUR term loan 2017 / 2020 € 400,000 € 400,000 € 400,000 € 400,000 € 3,196,758 € 1,796,444 Maximum amount available Balance outstanding December 31, 2019 December 31, 2019 (1) Revolving credit USD 2017 / 2022 $ 900,000 € 801,139 $ 138,700 € 123,464 Revolving credit EUR 2017 / 2022 € 600,000 € 600,000 € — € — USD term loan 2017 / 2022 $ 1,230,000 € 1,094,891 $ 1,230,000 € 1,094,891 EUR term loan 2017 / 2022 € 287,000 € 287,000 € 287,000 € 287,000 EUR term loan 2017 / 2020 € 400,000 € 400,000 € 400,000 € 400,000 € 3,183,030 € 1,905,355 (1) Amounts shown are excluding debt issuance costs. Accounts Receivable Facility The following table shows the available and outstanding amounts under the Accounts Receivable Facility at March 31, 2020 and at December 31, 2019: Accounts Receivable Facility - Maximum amount available and balance outstanding in THOUS Maximum amount available Balance outstanding March 31, 2020 (1) March 31, 2020 (2) Accounts Receivable Facility $ 900,000 € 821,468 $ 725,750 € 662,422 Maximum amount available Balance outstanding December 31, 2019 (1) December 31, 2019 (2) Accounts Receivable Facility $ 900,000 € 801,139 $ 427,000 € 380,096 (1) Subject to availability of sufficient accounts receivable meeting funding criteria. (2) Amounts shown are excluding debt issuance costs. The Company also had letters of credit outstanding under the Accounts Receivable Facility in the amount of $12,522 and $23,460 (€11,429 and €20,883) at March 31, 2020 and December 31, 2019, respectively. These letters of credit are not included above as part of the balance outstanding at March 31, 2020 and December 31, 2019; however, they reduce available borrowings under the Accounts Receivable Facility. |
Supplementary information on ca
Supplementary information on capital management | 3 Months Ended |
Mar. 31, 2020 | |
Supplementary information on capital management | |
Supplementary information on capital management | 7. Supplementary information on capital management As of March 31, 2020 and December 31, 2019 total equity in percent of total assets was 38.9% and 40.2%, respectively, and debt and lease liabilities in percent of total assets was 42.8% and 41.8%, respectively. Further information on the Company’s capital management is available in the Annual Report on Form 20‑F for the year ended December 31, 2019. The Company’s financing structure and business model are reflected in the investment grade ratings. The Company is covered and rated investment grade by the three leading rating agencies, Moody’s, Standard & Poor’s and Fitch. Rating (1) Standard & Poor's Moody's Fitch Corporate Credit Rating BBB Baa3 BBB- Outlook stable stable stable (1) A rating is not a recommendation to buy, sell or hold securities of the Company, and may be subject to suspension, change or withdrawal at any time by the assigning rating agency. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | 8. Commitments and contingencies Legal and regulatory matters The Company is routinely involved in 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 health care services and products. Legal matters that the Company currently deems to be material or noteworthy are described below. The Company records its litigation reserves for certain legal proceedings and regulatory matters to the extent that the Company determines an unfavorable outcome is probable and the amount of loss can be reasonably estimated. For the other matters described below, the Company believes that the loss probability is remote and/or the loss or range of possible losses cannot be reasonably estimated at this time. The outcome of litigation and other legal matters is always difficult to predict accurately and outcomes that are not consistent with the Company’s 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. Beginning in 2012, the Company received certain communications alleging conduct in countries outside the United States that might violate the Foreign Corrupt Practices Act or other anti-bribery laws. The Company conducted investigations with the assistance of outside counsel and, in a continuing dialogue, advised the Securities and Exchange Commission (“SEC”) and the United States Department of Justice (“DOJ”) about these investigations. The DOJ and the SEC also conducted their own investigations, in which the Company cooperated. In the course of this dialogue, the Company identified and reported to the DOJ and the SEC, and took remedial actions with respect to, conduct that resulted in the DOJ and the SEC seeking monetary penalties including disgorgement of profits and other remedies. This conduct revolved principally around the Company's products business in countries outside the United States. The Company recorded charges of €200,000 in 2017 and €77,200 in 2018 encompassing estimates for the claims from the DOJ and the SEC for profit disgorgement, penalties, certain legal expenses, and other related costs or asset impairments believed likely to be necessary for full and final resolution, by litigation or settlement, of the claims and issues arising from the investigation. The increase recorded in 2018 took into consideration preliminary understandings with the DOJ and the SEC on the financial terms of a potential settlement. Following this increase, which takes into account incurred and anticipated legal expenses, impairments and other costs, the provision totaled €223,980 as of December 31, 2018. On March 29, 2019, the Company entered into a non-prosecution agreement with the DOJ and a separate agreement with the SEC intended to resolve fully and finally the claims against the Company arising from the investigations. The Company paid a combined total in penalties and disgorgement of approximately $231,700 to the DOJ and the SEC in connection with these agreements. The entire amount paid to the DOJ and the SEC was reserved for in charges that the Company recorded in 2017 and 2018 and announced in 2018. As part of the settlement, the Company agreed to retain an independent compliance monitor for a period of at least two years and to an additional year of self-reporting. As of July 26, 2019, the monitor was appointed and the monitorship period commenced. In 2015, the Company self-reported to the German prosecutor conduct with a potential nexus to Germany and continues to cooperate with government authorities in Germany in their review of the conduct that prompted the Company's and government investigations. Since 2012, the Company has made and continues to make further significant investments in its compliance and financial controls and in its compliance, legal and financial organizations. The Company's remedial actions included separation from those employees responsible for the above-mentioned conduct. The Company is dealing with post-FCPA review matters on various levels. The Company continues to be fully committed to compliance with the FCPA and other applicable anti-bribery laws. Personal injury litigation involving FMCH's acid concentrate product, labeled as Granuflo® or Naturalyte®, first arose in 2012 and was substantially resolved by settlement agreed in principle in February 2016 and consummated in November 2017. Remaining individual personal injury cases do not present material risk. FMCH’s affected insurers agreed to the settlement of the acid concentrate personal injury litigation and funded $220,000 of the settlement fund under a reciprocal reservation of rights encompassing certain coverage issues raised by insurers and the FMCH’s claims for indemnification of defense costs. FMCH accrued a net expense of $60,000 in connection with the settlement, including legal fees and other anticipated costs. Following entry into the settlement, FMCH’s insurers in the AIG group and FMCH each initiated litigation against the other relating to the AIG group’s coverage obligations under applicable policies. In the coverage litigation, the AIG group seeks to be indemnified by FMCH for some or all of its $220,000 outlay; FMCH seeks to confirm the AIG group’s $220,000 funding obligation, to recover defense costs already incurred by FMCH, and to compel the AIG group to honor defense and indemnification obligations required for resolution of cases not participating in the settlement. As a result of decisions on issues of venue, the coverage litigation is proceeding in the New York state trial court for Manhattan. (National Union Fire Insurance v. Fresenius Medical Care, 2016 Index No. 653108 (Supreme Court of New York for New York County)). Four institutional plaintiffs filed complaints against FMCH or its affiliates under state deceptive practices statutes resting on certain background allegations common to the GranuFlo®/NaturaLyte® personal injury litigation but seeking as a remedy the repayment of sums paid to FMCH that are attributable to the GranuFlo®/NaturaLyte® products. These cases implicate different legal standards, theories of liability and forms of potential recovery from those in the personal injury litigation and their claims were not extinguished by the personal injury litigation settlement described above. All of the institutional cases have been resolved by settlement except for the claims by the State of Louisiana through its Attorney General and Blue Cross Blue Shield Louisiana. The Caldwell and Blue Cross Louisiana cases are proceeding together in a combined proceeding in federal court in Boston, but are subject to undecided motions for severance and remand. State of Louisiana ex re. Caldwell and Louisiana Health Service & Indemnity Company v. Fresenius Medical Care Airline, et al 2016 Civ. 11035 (U.S.D.C. D. Mass.). There is no trial date in either case. FMCH has increased its litigation reserves to account for anticipated resolution of these claims. However, at the present time there are no agreements in principle for resolving either case and litigation through final adjudication may be required in them. On September 6, 2018, a special-purpose entity organized under Delaware law for the purpose of pursuing litigation filed a Pure Bill of Discovery in a Florida county court seeking discovery from FMCH related to the personal injury settlement, but no other relief. MSP Recovery Claims Series LLC v. Fresenius Medical Care Holdings, No. 2018‑030366‑CA‑01 (11th Judicial Circuit, Dade County, Florida). The Pure Bill was thereafter removed to federal court and transferred into the multidistrict Fresenius Granuflo/Naturalyte Dialysate Products Liability Litigation in Boston. No.1:13‑MD‑02428‑DPW (D. Mass. 2013). On March 12, 2019, plaintiff amended its Pure Bill by filing a complaint claiming rights to recover monetary damages on behalf of various persons and entities who are alleged to have assigned to plaintiff their rights to recover monetary damages arising from their having provided or paid for medical services for dialysis patients receiving treatments using FMCH’s acid concentrate product. FMCH is responding to the amended complaint. In August 2014, FMCH received a subpoena from the United States Attorney for the District of Maryland inquiring into FMCH’s contractual arrangements with hospitals and physicians involving contracts relating to the management of in-patient acute dialysis services. FMCH is cooperating in the investigation. In July 2015, the Attorney General for Hawaii issued a civil complaint under the Hawaii False Claims Act alleging a conspiracy pursuant to which certain Liberty Dialysis subsidiaries of FMCH overbilled Hawaii Medicaid for Liberty’s Epogen® administrations to Hawaii Medicaid patients during the period from 2006 through 2010, prior to the time of FMCH’s acquisition of Liberty. Hawaii v. Liberty Dialysis—Hawaii, LLC et al., Case No. 15‑1‑1357‑07 (Hawaii 1st Circuit). The State alleges that Liberty acted unlawfully by relying on incorrect and unauthorized billing guidance provided to Liberty by Xerox State Healthcare LLC, which acted as Hawaii’s contracted administrator for its Medicaid program reimbursement operations during the relevant period. The amount of the overpayment claimed by the State is approximately $8,000, but the State seeks civil remedies, interest, fines, and penalties against Liberty and FMCH under the Hawaii False Claims Act substantially in excess of the overpayment. After prevailing on motions by Xerox to preclude it from doing so, FMCH is pursuing third-party claims for contribution and indemnification against Xerox. The State’s False Claims Act complaint was filed after Liberty initiated an administrative action challenging the State’s recoupment of alleged overpayments from sums currently owed to Liberty. The civil litigation and administrative action are proceeding in parallel. Trial in the civil litigation is scheduled for March 8, 2021. On August 31, 2015, FMCH received a subpoena under the False Claims Act from the United States Attorney for the District of Colorado (Denver) inquiring into FMCH’s participation in and management of dialysis facility joint ventures in which physicians are partners. FMCH continues to cooperate in the Denver United States Attorney’s Office ("USAO") investigation, which has come to focus on purchases and sales of minority interests in ongoing outpatient facilities between FMCH and physician groups. On November 25, 2015, FMCH received a subpoena under the False Claims Act from the United States Attorney for the Eastern District of New York (Brooklyn) also inquiring into FMCH’s involvement in certain dialysis facility joint ventures in New York. On September 26, 2018, the Brooklyn USAO declined to intervene on the qui tam complaint filed under seal in 2014 that gave rise to this investigation. CKD Project LLC v. Fresenius Medical Care, 2014 Civ. 06646 (E.D.N.Y. November 12, 2014). The court unsealed the complaint, allowing the relator to serve and proceed on its own. The relator—a special-purpose entity formed by law firms to pursue qui tam proceedings—has served its complaint and litigation is proceeding. Beginning October 6, 2015, the United States Attorney for the Eastern District of New York (Brooklyn) has led an investigation, through subpoenas issued under the False Claims Act, of utilization and invoicing by FMCH’s subsidiary Azura Vascular Care for a period beginning after FMCH’s acquisition of American Access Care LLC ("AAC") in October 2011. FMCH is cooperating in the Brooklyn USAO investigation. The Brooklyn USAO has indicated that its investigation is nationwide in scope and is focused on whether certain access procedures performed at Azura facilities have been medically necessary and whether certain physician assistants employed by Azura exceeded their permissible scope of practice. Allegations against AAC arising in districts in Connecticut, Florida and Rhode Island relating to utilization and invoicing were settled in 2015. On June 30, 2016, FMCH received a subpoena from the United States Attorney for the Northern District of Texas (Dallas) seeking information under the False Claims Act about the use and management of pharmaceuticals including Velphoro®. The investigation encompasses DaVita, Amgen, Sanofi, and other pharmaceutical manufacturers and includes inquiries into whether certain compensation transfers between manufacturers and pharmacy vendors constituted unlawful kickbacks. FMCH understands that this investigation is substantively independent of the $63,700 settlement by DaVita Rx announced on December 14, 2017 in the matter styled United States ex rel. Gallian v. DaVita Rx, 2016 Civ. 0943 (N.D. Tex.). FMCH has cooperated in the investigation. On November 18, 2016, FMCH received a subpoena under the False Claims Act from the United States Attorney for the Eastern District of New York (Brooklyn) seeking documents and information relating to the operations of Shiel Medical Laboratory, Inc. ("Shiel"), which FMCH acquired in October 2013. In the course of cooperating in the investigation and preparing to respond to the subpoena, FMCH identified falsifications and misrepresentations in documents submitted by a Shiel salesperson that relate to the integrity of certain invoices submitted by Shiel for laboratory testing for patients in long term care facilities. On February 21, 2017, FMCH terminated the employee and notified the United States Attorney of the termination and its circumstances. The terminated employee’s conduct is expected to result in demands for FMCH to refund overpayments and to pay related penalties under applicable laws, but the monetary value of such payment demands cannot yet be reasonably estimated. FMCH contends that, under the asset sale provisions of its 2013 Shiel acquisition, it is not responsible for misconduct by the terminated employee or other Shiel employees prior to the date of the acquisition. The Brooklyn USAO continues to investigate a range of issues involving Shiel, including allegations of improper compensation (kickbacks) to physicians, and has disclosed that multiple sealed qui tam complaints underlie the investigation. On December 12, 2017, FMCH sold to Quest Diagnostics certain Shiel operations that are the subject of this Brooklyn subpoena, including the misconduct reported to the United States Attorney. Under the Quest Diagnostics sale agreement, FMCH retains responsibility for responding to the Brooklyn investigation and for liabilities arising from conduct occurring after its 2013 acquisition of Shiel and prior to its sale of Shiel to Quest Diagnostics. FMCH is cooperating in the investigation. On December 14, 2016, CMS, which administers the federal Medicare program, published an Interim Final Rule ("IFR") titled "Medicare Program; Conditions for Coverage for End-Stage Renal Disease Facilities-Third Party Payment." The IFR would have amended the Conditions for Coverage for dialysis providers, like FMCH and would have effectively enabled insurers to reject premium payments made by or on behalf of patients who received grants for individual market coverage from the American Kidney Fund ("AKF" or "the Fund"). The IFR could thus have resulted in those patients losing individual insurance market coverage. The loss of coverage for these patients would have had a material and adverse impact on the operating results of FMCH. On January 25, 2017, a federal district court in Texas responsible for litigation initiated by a patient advocacy group and dialysis providers including FMCH preliminarily enjoined CMS from implementing the IFR. Dialysis Patient Citizens v. Burwell, 2017 Civ. 0016 (E.D. Texas, Sherman Div.). The preliminary injunction was based on CMS’ failure to follow appropriate notice-and-comment procedures in adopting the IFR. The injunction remains in place and the court retains jurisdiction over the dispute. On June 22, 2017, CMS requested a stay of proceedings in the litigation pending further rulemaking concerning the IFR. CMS stated, in support of its request, that it expects to publish a Notice of Proposed Rulemaking in the Federal Register and otherwise pursue a notice-and-comment process. Plaintiffs in the litigation, including FMCH, consented to the stay, which was granted by the court on June 27, 2017. On January 3, 2017, FMCH received a subpoena from the United States Attorney for the District of Massachusetts under the False Claims Act inquiring into FMCH’s interactions and relationships with the AKF, including FMCH’s charitable contributions to the Fund and the Fund’s financial assistance to patients for insurance premiums. FMCH cooperated in the investigation, which was part of a broader investigation into charitable contributions in the medical industry. On August 1, 2019, the United States District Court for the District of Massachusetts entered an order announcing that the United States had declined to intervene on a qui tam complaint underlying the USAO Boston investigation and unsealing the relator’s complaint so as to permit the relator to serve the complaint and proceed on his own. The relator did not serve the complaint within the time allowed, but the court has not yet dismissed the relator’s complaint. On April 8, 2019, United Healthcare served a demand for arbitration against FMCH. The demand asserts that FMCH unlawfully "steered" patients by waiving co-payments and other means away from coverage under government-funded insurance plans including Medicare into United Healthcare’s commercial plans, including Affordable Care Act exchange plans. FMCH is contesting United Healthcare’s claims and demands. A final hearing date has been scheduled in the arbitration for August 23, 2021. In early May 2017, the United States Attorney for the Middle District of Tennessee (Nashville) issued identical subpoenas to FMCH and two subsidiaries under the False Claims Act concerning FMCH’s retail pharmaceutical business. The investigation is exploring allegations related to improper inducements to dialysis patients to fill oral prescriptions through FMCH’s pharmacy service, improper billing for returned pharmacy products and other allegations similar to those underlying the $63,700 settlement by DaVita Rx in Texas announced on December 14, 2017. United States ex rel. Gallian, 2016 Civ. 00943 (N.D. Tex.). FMCH is cooperating in the investigation. On March 12, 2018, Vifor Fresenius Medical Care Renal Pharma Ltd. and Vifor Fresenius Medical Care Renal Pharma France S.A.S. (collectively, “VFMCRP”) (the joint venture between Vifor Pharma and FMC-AG & Co. KGaA), filed a complaint for patent infringement against Lupin Atlantis Holdings SA and Lupin Pharmaceuticals Inc. (collectively, “Lupin”), and Teva Pharmaceuticals USA, Inc. (“Teva”) in the U.S. District Court for the District of Delaware (Case 1:18‑cv‑00390‑LPS). The patent infringement action is in response to Lupin and Teva’s filings of Abbreviated New Drug Applications ("ANDA") with the U.S. Food and Drug Administration ("FDA") for generic versions of Velphoro®. Velphoro® is protected by patents listed in the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations, also known as the Orange Book. The complaint was filed within the 45‑day period provided for under the Hatch-Waxman legislation, and triggered a stay of FDA approval of the ANDAs for 30 months (specifically, up to July 29, 2020 for Lupin’s ANDA; and August 6, 2020 for Teva’s ANDA), or a shorter time if a decision in the infringement suit is reached that the patents-at-issue are invalid or not infringed. In response to another ANDA being filed for a generic Velphoro®, VFMCRP filed a complaint for patent infringement against Annora Pharma Private Ltd., and Hetero Labs Ltd. (collectively, “Annora”), in the U.S. District Court for the District of Delaware on December 17, 2018. A 30‑month stay of FDA approval of Annora’s ANDA will run through to May 30, 2021. On December 17, 2018, FMCH was served with a subpoena under the False Claims Act from the United States Attorney for the District of Colorado (Denver) as part of an investigation of allegations against DaVita, Inc. involving transactions between FMCH and DaVita. The subject transactions include sales and purchases of dialysis facilities, dialysis-related products and pharmaceuticals, including dialysis machines and dialyzers, and contracts for certain administrative services. FMCH is cooperating in the investigation. On June 28, 2019, certain FMCH subsidiaries filed a complaint against the United States seeking to recover monies owed to them by the United States Department of Defense under the Tricare program, and to preclude Tricare from recouping monies previously paid. Bio-Medical Applications of Georgia, Inc., et al. v. United States, CA 19‑947, United States Court of Federal Claims. Tricare provides reimbursement for dialysis treatments and other medical care provided to members of the military services, their dependents and retirees. The litigation challenges unpublished administrative actions by Tricare administrators reducing the rate of compensation paid for dialysis treatments provided to Tricare beneficiaries based on a recasting or “crosswalking” of codes used and followed in invoicing without objection for many years. Tricare administrators have acknowledged the unpublished administrative action and declined to change or abandon it. The Tricare administrators filed a motion to dismiss the complaint, but are not yet required to articulate, and have not yet presented, a substantive defense to the complaint. FMCH opposed the motion to dismiss. The court on April 16, 2020 denied the government's motion to dismiss in substantial part and accordingly required the government to answer FMCH’s complaint and discovery to proceed. FMCH has imposed a constraint on revenue otherwise recognized from the Tricare program that it believes, in consideration of facts currently known, sufficient to account for the risk of this litigation. From time to time, the Company is a party to or may be threatened with other litigation or arbitration, claims or assessments arising in the ordinary course of its business. Management regularly analyzes current information including, as applicable, the Company’s defenses and insurance coverage and, as necessary, provides accruals for probable liabilities for the eventual disposition of these matters. The Company, like other health care providers, insurance plans and suppliers, conducts its operations under intense government regulation and scrutiny. It must comply with regulations which relate to or govern the safety and efficacy of medical products and supplies, the marketing and distribution of such products, the operation of manufacturing facilities, laboratories, dialysis clinics and other health care facilities, and environmental and occupational health and safety. With respect to its development, manufacture, marketing and distribution of medical products, if such compliance is not maintained, the Company could be subject to significant adverse regulatory actions by the FDA and comparable regulatory authorities outside the U.S. These regulatory actions could include warning letters or other enforcement notices from the FDA, and/or comparable foreign regulatory authority which may require the Company to expend significant time and resources in order to implement appropriate corrective actions. If the Company does not address matters raised in warning letters or other enforcement notices to the satisfaction of the FDA and/or comparable regulatory authorities outside the U.S., these regulatory authorities could take additional actions, including product recalls, injunctions against the distribution of products or operation of manufacturing plants, civil penalties, seizures of the Company’s products and/or criminal prosecution. FMCH is currently engaged in remediation efforts with respect to one pending FDA warning letter. The Company must also comply with the laws of the United States, including the federal Anti-Kickback Statute, the federal False Claims Act, the federal Stark Law, the federal Civil Monetary Penalties Law and the federal Foreign Corrupt Practices Act as well as other federal and state fraud and abuse laws. Applicable laws or regulations may be amended, or enforcement agencies or courts may make interpretations that differ from the Company’s interpretations or the manner in which it conducts its business. Enforcement has become a high priority for the federal government and some states. In addition, the provisions of the False Claims Act authorizing payment of a portion of any recovery to the party bringing the suit encourage private plaintiffs to commence whistleblower actions. By virtue of this regulatory environment, the Company’s business activities and practices are subject to extensive review by regulatory authorities and private parties, and continuing audits, subpoenas, other inquiries, claims and litigation relating to the Company’s compliance with applicable laws and regulations. The Company may not always be aware that an inquiry or action has begun, particularly in the case of whistleblower actions, which are initially filed under court seal. The Company operates many facilities and handles the personal data ("PD") of its patients and beneficiaries throughout the United States and other parts of the world and engages with other business associates to help it carry out its health care activities. In such a decentralized system, it is often difficult to maintain the desired level of oversight and control over the thousands of individuals employed by many affiliated companies and its business associates. On occasion, the Company or its business associates may experience a breach under the Health Insurance Portability and Accountability Act Privacy Rule and Security Rules, the EU’s General Data Protection Regulation and or other similar laws ("Data Protection Laws") when there has been impermissible use, access, or disclosure of unsecured PD or when the Company or its business associates neglect to implement the required administrative, technical and physical safeguards of its electronic systems and devices, or a data breach that results in impermissible use, access or disclosure of personal identifying information of its employees, patients and beneficiaries. On those occasions, the Company must comply with applicable breach notification requirements. The Company relies upon its management structure, regulatory and legal resources, and the effective operation of its compliance program to direct, manage and monitor the activities of its employees. On occasion, the Company may identify instances where employees or other agents deliberately, recklessly or inadvertently contravene the Company’s policies or violate applicable law. The actions of such persons may subject the Company and its subsidiaries to liability under the Anti-Kickback Statute, the Stark Law, the False Claims Act, Data Protection Laws, the Health Information Technology for Economic and Clinical Health Act and the Foreign Corrupt Practices Act, among other laws and comparable state laws or laws of other countries. Physicians, hospitals and other participants in the health care industry are also subject to a large number of lawsuits alleging professional negligence, malpractice, product liability, worker’s compensation or related claims, many of which involve large claims and significant defense costs. The Company has been and is currently subject to these suits due to the nature of its business and expects that those types of lawsuits may continue. Although the Company maintains insurance at a level which it believes to be prudent, it cannot assure that the coverage limits will be adequate or that insurance will cover all asserted claims. A successful claim against the Company or any of its subsidiaries in excess of insurance coverage could have a material adverse effect upon it and the results of its operations. Any claims, regardless of their merit or eventual outcome, could have a material adverse effect on the Company’s reputation and business. The Company has also had claims asserted against it and has had lawsuits filed against it relating to alleged patent infringements or businesses that it has acquired or divested. These claims and suits relate both to operation of the businesses and to the acquisition and divestiture transactions. The Company has, when appropriate, asserted its own claims, and claims for indemnification. A successful claim against the Company or any of its subsidiaries could have a material adverse effect upon its business, financial condition, and the results of its operations. Any claims, regardless of their merit or eventual outcome, could have a material adverse effect on the Company’s reputation and business. In Germany, the tax audits for the years 2006 through 2009 have been substantially completed. The German tax authorities have indicated a re-qualification of dividends received in connection with intercompany mandatorily redeemable preferred shares into fully taxable interest payments for these and subsequent years until 2013. The Company has defended its position and will avail itself of appropriate remedies. The Company is also subject to ongoing and future tax audits in the U.S., Germany and other jurisdictions in the ordinary course of business. Tax authorities routinely pursue adjustments to the Company’s tax returns and disallowances of claimed tax deductions. When appropriate, the Company defends these adjustments and disallowances and asserts its own claims. A successful tax related claim against the Company or any of its subsidiaries could have a material adverse effect upon its business, financial condition and results of operations. Other than those individual contingent liabilities mentioned above, the current estimated amount of the Company’s other known individual contingent liabilities is immaterial. |
Financial instruments
Financial instruments | 3 Months Ended |
Mar. 31, 2020 | |
Financial instruments | |
Financial instruments | 9. Financial instruments The following tables show the carrying amounts and fair values of the Company’s financial instruments at March 31, 2020 and December 31, 2019: Carrying amount and fair value of financial instruments in € THOUS March 31, 2020 Carrying amount Fair value Amortized cost FVPL FVOCI Not classified Total Level 1 Level 2 Level 3 Cash and cash equivalents (1) 1,253,385 151,667 — — 1,405,052 151,667 — — Trade accounts and other receivables 3,634,068 — — 73,960 3,708,028 — — — Accounts receivable from related parties 128,033 — — — 128,033 — — — Derivatives - cash flow hedging instruments — — — 9,084 9,084 — 9,084 — Derivatives - not designated as hedging instruments — 24,204 — — 24,204 — 24,204 — Equity investments — 170,519 47,095 — 217,614 9,434 41,458 166,722 Debt securities — 84,091 271,462 — 355,553 350,770 4,783 — Other financial assets 161,408 — — 104,070 265,478 — — — Other current and non-current assets 161,408 278,814 318,557 113,154 871,933 — — — Financial assets 5,176,894 430,481 318,557 187,114 6,113,046 — — — Accounts payable 762,384 — — — 762,384 — — — Accounts payable to related parties 134,159 — — — 134,159 — — — Short-term debt and short-term debt from related parties 2,027,511 — — — 2,027,511 — — — Long-term debt 7,768,094 — — — 7,768,094 5,073,510 2,692,280 — Long-term lease liabilities and long-term lease liabilities from related parties — — — 4,781,629 4,781,629 — — — Derivatives - cash flow hedging instruments — — — 1,248 1,248 — 1,248 — Derivatives - not designated as hedging instruments — 12,530 — — 12,530 — 12,530 — Variable payments outstanding for acquisitions — 74,194 — — 74,194 — — 74,194 Noncontrolling interest subject to put provisions — — — 953,719 953,719 — — 953,719 Other financial liabilities 1,471,320 — — — 1,471,320 — — — Other current and non-current liabilities 1,471,320 86,724 — 954,967 2,513,011 — — — Financial liabilities 12,163,468 86,724 — 5,736,596 17,986,788 — — — (1) Highly liquid short-term investments are categorized in level 1 of the fair value hierarchy. Cash and cash equivalents measured at amortized cost is not categorized . Carrying amount and fair value of financial instruments in € THOUS December 31, 2019 Carrying amount Fair value Amortized cost FVPL FVOCI Not classified Total Level 1 Level 2 Level 3 Cash and cash equivalents (1) 841,046 166,677 — — 1,007,723 166,677 — — Trade accounts and other receivables 3,343,873 — — 77,473 3,421,346 — — — Accounts receivable from related parties 159,196 — — — 159,196 — — — Derivatives - cash flow hedging instruments — — — 107 107 — 107 — Derivatives - not designated as hedging instruments — 2,406 — — 2,406 — 2,406 — Equity investments — 186,273 50,975 — 237,248 13,110 41,084 183,054 Debt securities — 107,988 261,833 — 369,821 365,170 4,651 - Other financial assets 141,355 — — 111,649 253,004 — — — Other current and non-current assets 141,355 296,667 312,808 111,756 862,586 — — — Financial assets 4,485,470 463,344 312,808 189,229 5,450,851 — — — Accounts payable 716,526 — — — 716,526 — — — Accounts payable to related parties 118,663 — — — 118,663 — — — Short-term debt and short-term debt from related parties 1,171,853 — — — 1,171,853 — — — Long-term debt 7,905,557 — — — 7,905,557 5,555,475 2,537,932 — Long-term lease liabilities and long-term lease liabilities from related parties — — — 4,705,038 4,705,038 — — — Derivatives - cash flow hedging instruments — — — 2,534 2,534 — 2,534 — Derivatives - not designated as hedging instruments — 10,762 — — 10,762 — 10,762 — Variable payments outstanding for acquisitions — 89,677 — — 89,677 — — 89,677 Noncontrolling interest subject to put provisions — — — 934,425 934,425 — — 934,425 Other financial liabilities 1,414,464 — — — 1,414,464 — — — Other current and non-current liabilities 1,414,464 100,439 — 936,959 2,451,862 — — — Financial liabilities 11,327,063 100,439 — 5,641,997 17,069,499 — — — (1) Highly liquid short-term investments are categorized in level 1 of the fair value hierarchy. Cash and cash equivalents measured at amortized cost is not categorized. Derivative and non-derivative financial instruments are categorised in the following three-tier fair value hierarchy that reflects the significance of the inputs in making the measurements. Level 1 is defined as observable inputs, such as quoted prices in active markets. Level 2 is defined as inputs other than quoted prices in active markets that are directly or indirectly observable. Level 3 is defined as unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions. Fair value information is not provided for financial instruments, if the carrying amount is a reasonable estimate of fair value due to the relatively short period of maturity of these instruments. Transfers between levels of the fair value hierarchy have not occurred as of March 31, 2020 and December 31, 2019. The Company accounts for transfers at the end of the reporting period. Derivative financial instruments In order to manage the risk of currency exchange rate fluctuations and interest rate fluctuations, the Company enters into various hedging transactions by means of derivative instruments with highly rated financial institutions. The Company primarily enters into foreign exchange forward contracts and interest rate swaps. Derivative contracts that do not qualify for hedge accounting are utilized for economic purposes. The Company does not use financial instruments for trading purposes. Non-derivative financial instruments The significant methods and assumptions used for the classification and measurement of non-derivative financial instruments are as follows: The Company assessed its business models and the cash flow characteristics of its financial assets. The vast majority of the non-derivative financial assets are held in order to collect the contractual cash flows. The contractual terms of the financial assets allow the conclusion that the cash flows represent payment of principle and interest only. Trade accounts and other receivables, Accounts receivable from related parties and Other financial assets are consequently measured at amortized cost. Cash and cash equivalents are comprised of cash funds and other short-term investments. Cash funds are measured at amortized cost. Short-term investments are highly liquid and readily convertible to known amounts of cash. Short-term investments are measured at FVPL. The risk of changes in fair value is insignificant. Equity investments are not held for trading. At initial recognition the Company elected, on an instrument-by-instrument basis, to represent subsequent changes in the fair value of individual strategic investments in OCI. If equity instruments are quoted in an active market, the fair value is based on price quotations at the period-end-date. From time to time the Company engages external valuation firms to determine the fair value of Level 3 equity investments. The external valuation uses a discounted cash flow model, which includes significant unobservable inputs such as investment specific forecasted financial statements, weighted average cost of capital, that reflects current market assessments as well as a terminal growth rate. The majority of the debt securities are held within a business model whose objective is achieving both contractual cash flows and sell the securities. The standard coupon bonds give rise on specified dates to cash flows that are solely payments of principal and interest on the outstanding principal amount. Subsequently these financial assets have been classified as FVOCI. The smaller part of debt securities does not give rise to cash flows that are solely payments of principle and interest. Consequently, these securities are measured at FVPL. In general most of the debt securities are quoted in an active market. Long-term debt is recognized at its carrying amount. The fair values of major long-term debt are calculated on the basis of market information. Liabilities for which market quotes are available are measured using these quotes. The fair values of the other long-term debt are calculated at the 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. Variable payments outstanding for acquisitions are recognized at their fair value. The estimation of the individual fair values is based on the key inputs of the arrangement that determine the future contingent payment as well as the Company’s expectation of these factors. The Company assesses the likelihood and timing of achieving the relevant objectives. The underlying assumptions are reviewed regularly. Noncontrolling interests subject to put provisions are recognized at the present value of the exercise price of the option. The exercise price of the option is generally based on fair value. The methodology the Company uses to estimate the fair values assumes the greater of net book value or a multiple of earnings, based on historical earnings, development stage of the underlying business and other factors. From time to time the Company engages external valuation firms for the valuation of the put provisions. The external valuation estimates the fair values using a combination of discounted cash flows and a multiple of earnings and/or revenue. When applicable, the obligations are discounted at a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability. The estimated fair values of the noncontrolling interests subject to these put provisions can also fluctuate, and the discounted cash flows as well as the implicit multiple of earnings and/or revenue at which these noncontrolling interest obligations may ultimately be settled could vary significantly from the Company’s current estimates depending upon market conditions. For the purpose of analyzing the impact of changes in unobservable inputs on the fair value measurement of noncontrolling interest subject to put provisions, the Company assumes an increase on earnings of 10% compared to the actual estimation as of the balance sheet date. The corresponding increase in fair value of €68,490 is then compared to the total liabilities and the shareholder’s equity of the Company. This analysis shows that an increase of 10% in the relevant earnings would have an effect of less than 1% on the total liabilities and less than 1% on the shareholder’s equity of the Company. Following is a roll forward of Level 3 financial instruments at March 31, 2020 and December 31, 2019: Reconciliation from beginning to ending balance of level 3 financial instruments in € THOUS 2020 2019 Variable Variable payments Noncontrolling payments Noncontrolling Equity outstanding for interests subject Equity outstanding for interests subject investments acquisitions to put provisions investments acquisitions to put provisions Beginning balance at January 1, 183,054 89,677 934,425 — 172,278 818,871 Transfer from Level 2 — — — 186,427 — — Increase — 11,886 5,234 2,233 4,828 109,109 Decrease — (26,229) (8,720) — (43,941) (20,269) (Gain) loss recognized in profit or loss (20,843) 12 — 128 (41,537) — (Gain) loss recognized in equity — — 12,963 — — 14,523 Foreign currency translation and other changes 4,511 (1,152) 9,817 (5,734) (1,951) 12,191 Ending balance at March 31, and December 31, 166,722 74,194 953,719 183,054 89,677 934,425 |
Segment and corporate informati
Segment and corporate information | 3 Months Ended |
Mar. 31, 2020 | |
Segment and corporate information | |
Segment and corporate information | 10. Segment and corporate information The Company’s operating segments are the North America Segment, the EMEA Segment, the Asia-Pacific Segment and the Latin America Segment. The operating segments are determined based upon how the Company manages its businesses with geographical responsibilities. All segments are primarily engaged in providing health care services and the distribution of products and equipment for the treatment of ESRD and other extracorporeal therapies. Management evaluates each segment using measures that reflect all of the segment’s controllable revenues and expenses. With respect to the performance of business operations, management believes that the most appropriate measures are revenue, operating income and operating income margin. The Company does not include income taxes as it believes this is outside the segments’ control. Financing is a corporate function, which the Company’s segments do not control. Therefore, the Company does not include interest expense relating to financing as a segment measurement. Similarly, the Company does not allocate certain costs, which relate primarily to certain headquarters’ overhead charges, including accounting and finance, because the Company believes that these costs are also not within the control of the individual segments. Production of products, production asset management, quality management and procurement related to production are centrally managed. Products transferred to the segments are transferred at cost; therefore, no internal profit is generated. The associated internal revenue for the product transfers and their elimination are recorded as corporate activities. Capital expenditures for production are based on the expected demand of the segments and consolidated profitability considerations. The Company’s global research and development as well as its Global Medical Office (as of January 1, 2020), which seeks to standardize medical treatments and clinical processes within the Company, are also centrally managed. These corporate activities (“Corporate”) do not fulfill the definition of a segment according to IFRS 8, Operating Segments. In addition, certain revenues, investments and intangible assets, as well as any related expenses, are not allocated to a segment but are accounted for as Corporate. Information pertaining to the Company’s segment and Corporate activities for the three months ended March 31, 2020 and 2019 is set forth below: Segment and corporate information in € THOUS North Asia- Latin America EMEA Pacific America Total Segment Segment Segment Segment Segment Corporate Total Three months ended March 31, 2020 Revenue from contracts with customers 3,102,277 672,494 431,936 167,262 4,373,969 11,965 4,385,934 Other revenue external customers 83,946 6,252 10,958 706 101,862 — 101,862 Revenue external customers 3,186,223 678,746 442,894 167,968 4,475,831 11,965 4,487,796 Inter-segment revenue 7,175 1,313 4 121 8,613 (8,613) — Revenue 3,193,398 680,059 442,898 168,089 4,484,444 3,352 4,487,796 Operating income 463,411 101,054 76,809 6,857 648,131 (93,001) 555,130 Interest (104,219) Income before income taxes 450,911 Depreciation and amortization (256,629) (45,975) (25,959) (8,712) (337,275) (62,399) (399,674) Impairment loss (999) (14) — — (1,013) — (1,013) Income (loss) from equity method investees 21,050 (1,662) 950 71 20,409 — 20,409 Total assets 22,761,436 3,824,691 2,774,610 872,778 30,233,515 3,838,912 34,072,427 thereof investment in equity method investees 425,139 166,369 100,723 24,911 717,142 — 717,142 Additions of property, plant and equipment, intangible assets and right of use assets 359,866 45,173 45,290 17,167 467,496 75,785 543,281 Three months ended March 31, 2019 Revenue from contracts with customers 2,826,212 635,800 411,603 160,601 4,034,216 4,168 4,038,384 Other revenue external customers 60,564 16,813 15,971 825 94,173 — 94,173 Revenue external customers 2,886,776 652,613 427,574 161,426 4,128,389 4,168 4,132,557 Inter-segment revenue 576 1 234 65 876 (876) — Revenue 2,887,352 652,614 427,808 161,491 4,129,265 3,292 4,132,557 Operating income 372,394 137,776 94,702 11,395 616,267 (79,717) 536,550 Interest (107,848) Income before income taxes 428,702 Depreciation and amortization (228,735) (46,973) (22,601) (8,363) (306,672) (55,704) (362,376) Income (loss) from equity method investees 21,362 (1,317) (294) 282 20,033 — 20,033 Total assets 21,513,220 4,232,196 2,669,344 821,984 29,236,744 3,116,460 32,353,204 thereof investment in equity method investees 332,184 177,658 96,641 23,956 630,439 — 630,439 Additions of property, plant and equipment, intangible assets and right of use assets 188,150 47,114 13,743 14,783 263,790 73,487 337,277 |
Events occuring after the balan
Events occuring after the balance sheet date | 3 Months Ended |
Mar. 31, 2020 | |
Events occuring after the balance sheet date | |
Events occuring after the balance sheet date | 11. Events occurring after the balance sheet date On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which provides relief funds to hospitals and other healthcare providers in connection with the impact of the on-going worldwide severe acute respiratory syndrome coronavirus 2 (“COVID-19”) pandemic. In April 2020, the Company received U.S. federal relief funding under the CARES Act as well as advanced payments under the CMS Accelerated and Advance Payment program, as provided for by the CARES Act. There was no impact on the Company’s financial statements for the three-month period ended March 31, 2020 related to funds received in connection with the CARES Act. No further significant activities have taken place subsequent to the balance sheet date March 31, 2020 that have a material impact on the key figures and earnings presented. Currently, there are no other significant changes in the Company’s structure, management, legal form or personnel. |
Notes to the consolidated sta_2
Notes to the consolidated statements of income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes to the consolidated statements of income | |
Schedule of revenue | Revenue in € THOUS For the three months ended March 31, 2020 2019 Revenue from Revenue from contracts with Other contracts with Other customers revenue Total customers revenue Total Health care services Dialysis services 3,198,252 — 3,198,252 2,957,381 — 2,957,381 Care Coordination 317,320 79,091 396,411 299,544 60,383 359,927 3,515,572 79,091 3,594,663 3,256,925 60,383 3,317,308 Health care products Dialysis products 841,863 22,771 864,634 762,885 33,790 796,675 Non-dialysis products 28,499 — 28,499 18,574 — 18,574 870,362 22,771 893,133 781,459 33,790 815,249 Total 4,385,934 101,862 4,487,796 4,038,384 94,173 4,132,557 |
Schedule of reconciliation of basic and diluted earnings per share | Reconciliation of basic and diluted earnings per share in € THOUS, except share and per share data For the three months ended March 31, 2020 2019 Numerator: Net income attributable to shareholders of FMC-AG & Co. KGaA 282,719 270,749 Denominators: Weighted average number of shares outstanding 297,842,343 306,659,364 Potentially dilutive shares 219,801 — Basic earnings per share 0.95 0.88 Diluted earnings per share 0.95 0.88 |
Schedule of number of shares acquired in the context of the buy-back programs as well as the repurchased treasury stock | Total number of shares purchased and retired as part of publicly Average price per announced plans or Total value of Period share programs shares (1) in € in € THOUS December 31, 2018 51.00 999,951 50,993 Purchase of Treasury Stock March 2019 69.86 1,629,240 113,816 April 2019 72.83 1,993,974 145,214 May 2019 72.97 147,558 10,766 Repurchased Treasury Stock 71.55 3,770,772 269,796 Retirement of repurchased Treasury Stock June 2019 71.55 3,770,772 269,796 Purchase of Treasury Stock June 2019 67.11 504,672 33,870 July 2019 66.77 1,029,655 68,748 August 2019 57.53 835,208 48,050 September 2019 59.67 627,466 37,445 October 2019 57.85 692,910 40,084 November 2019 64.78 852,859 55,245 December 2019 63.85 564,908 36,067 Repurchased Treasury Stock 62.55 5,107,678 319,509 December 31, 2019 60.66 6,107,629 370,502 Purchase of Treasury Stock January 2020 84.37 124,398 10,495 February 2020 (2) 249.10 25,319 6,307 March 2020 63.05 4,842,943 305,362 Repurchased Treasury Stock ( 3 ) 64.53 4,992,660 322,164 TOTAL (4) 62.40 11,100,289 692,666 (1) The value of shares previously repurchased and included above as of December 31, 2018 is inclusive of fees (net of taxes) paid in the amount of approximately €11 (in € THOUS) for services rendered. (2) The purchase price of the shares of the program beginning on June 17, 2019 is based on the volume weighted average price of the Company's shares for the period and changes in the volume weighted average price resulted in retroactive adjustments to the purchase price, even if no shares were purchased. The February adjustment, in combination with lower shares purchased, resulted in a particularly high average price per share for the month. (3) At March 31, 2020, the maximum number of shares that may be purchased pursuant to the buy-back program expiring on June 17, 2020 was 1,899,662. (4) On April 1, 2020, 694,813 shares were repurchased at an average share price of €63.07 for a total value of €43,824 THOUS. |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related party transactions | |
Schedule of service agreements and products with related parties | Service agreements and products with related parties in € THOUS For the three months ended For the three months ended March 31, December 31, March 31, 2020 March 31, 2019 2020 2019 Sales of Purchases of Sales of Purchases of goods and goods and goods and goods and Accounts Accounts Accounts Accounts services services services services receivable payable receivable payable Service agreements (1) Fresenius SE 28 5,450 32 5,182 996 3,515 35 360 Fresenius SE affiliates 1,187 26,328 940 24,652 2,431 6,560 2,003 6,416 Equity method investees 2,109 — 16,954 — 67,515 — 68,300 — Total 3,324 31,778 17,926 29,834 70,942 10,075 70,338 6,776 Products Fresenius SE affiliates 10,821 9,048 9,862 8,290 15,276 3,162 16,803 3,405 Equity method investees — 112,129 — 124,654 — 80,665 — 36,262 Total 10,821 121,177 9,862 132,944 15,276 83,827 16,803 39,667 (1) In addition to the above shown accounts payable, accrued expenses for service agreements with related parties amounted to €7,185 and €8,352 at March 31, 2020 and December 31, 2019, respectively. |
Schedule of lease agreements with related parties | . Lease agreements with related parties in € THOUS For the three months ended For the three months ended March 31, 2020 March 31, 2019 March 31, 2020 December 31, 2019 Interest Lease Interest Lease Right-of-use Lease Right-of-use Lease Depreciation expense expense (1) Depreciation expense expense (1) asset liability asset liability Fresenius SE 1,124 110 1,099 1,214 137 854 30,452 30,725 30,336 30,820 Fresenius SE affiliates 3,247 334 70 3,089 353 161 89,993 90,817 91,879 92,126 Total 4,371 444 1,169 4,303 490 1,015 120,445 121,542 122,215 122,946 (1) Short-term leases and expenses relating to variable lease payments are exempted from balance sheet recognition . |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Schedule of inventories | Inventories in € THOUS March 31, December 31, 2020 2019 Finished goods 999,632 940,407 Health care supplies 398,200 399,585 Raw materials and purchased components 235,148 227,654 Work in process 110,119 95,632 Inventories 1,743,099 1,663,278 |
Short-term debt and short-ter_2
Short-term debt and short-term debt from related parties (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Short-term debt and short-term debt from related parties | |
Schedule of short-term debt and short-term debt from related parties | Short-term debt and short-term debt from related parties in € THOUS March 31, December 31, 2020 2019 Commercial paper program 929,775 999,732 Borrowings under lines of credit 570,833 143,875 Other 6,303 6,381 Short-term debt 1,506,911 1,149,988 Short-term debt from related parties (see note 3 c) 520,600 21,865 Short-term debt and short-term debt from related parties 2,027,511 1,171,853 |
Long-term debt (Tables)
Long-term debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-term debt | |
Schedule of long-term debt | As of March 31, 2020 and December 31, 2019, long-term debt consisted of the following: Long-term debt in € THOUS March 31, December 31, 2020 2019 Amended 2012 Credit Agreement 1,793,097 1,901,372 Bonds 5,030,206 4,966,619 Convertible Bonds — 399,939 Accounts Receivable Facility 662,030 379,570 Other 282,761 258,057 Long-term debt 7,768,094 7,905,557 Less current portion (1,964,695) (1,447,239) Long-term debt, less current portion 5,803,399 6,458,318 |
Schedule of available and outstanding amounts under the Amended 2012 Credit Agreement | Amended 2012 Credit Agreement - Maximum amount available and balance outstanding in THOUS Maximum amount available Balance outstanding March 31, 2020 March 31, 2020 (1) Revolving credit USD 2017 / 2022 $ 900,000 € 821,468 $ 23,176 € 21,154 Revolving credit EUR 2017 / 2022 € 600,000 € 600,000 € — € — USD term loan 2017 / 2022 $ 1,200,000 € 1,095,290 $ 1,200,000 € 1,095,290 EUR term loan 2017 / 2022 € 280,000 € 280,000 € 280,000 € 280,000 EUR term loan 2017 / 2020 € 400,000 € 400,000 € 400,000 € 400,000 € 3,196,758 € 1,796,444 Maximum amount available Balance outstanding December 31, 2019 December 31, 2019 (1) Revolving credit USD 2017 / 2022 $ 900,000 € 801,139 $ 138,700 € 123,464 Revolving credit EUR 2017 / 2022 € 600,000 € 600,000 € — € — USD term loan 2017 / 2022 $ 1,230,000 € 1,094,891 $ 1,230,000 € 1,094,891 EUR term loan 2017 / 2022 € 287,000 € 287,000 € 287,000 € 287,000 EUR term loan 2017 / 2020 € 400,000 € 400,000 € 400,000 € 400,000 € 3,183,030 € 1,905,355 (1) Amounts shown are excluding debt issuance costs. |
Schedule of accounts receivable facility | Accounts Receivable Facility - Maximum amount available and balance outstanding in THOUS Maximum amount available Balance outstanding March 31, 2020 (1) March 31, 2020 (2) Accounts Receivable Facility $ 900,000 € 821,468 $ 725,750 € 662,422 Maximum amount available Balance outstanding December 31, 2019 (1) December 31, 2019 (2) Accounts Receivable Facility $ 900,000 € 801,139 $ 427,000 € 380,096 (1) Subject to availability of sufficient accounts receivable meeting funding criteria. (2) Amounts shown are excluding debt issuance costs. |
Supplementary information on _2
Supplementary information on capital management (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplementary information on capital management | |
Schedule of Company's rating | Rating (1) Standard & Poor's Moody's Fitch Corporate Credit Rating BBB Baa3 BBB- Outlook stable stable stable (1) A rating is not a recommendation to buy, sell or hold securities of the Company, and may be subject to suspension, change or withdrawal at any time by the assigning rating agency. |
Financial instruments (Tables)
Financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Financial instruments | |
Schedule of carrying amount and fair value of financial instruments | Carrying amount and fair value of financial instruments in € THOUS March 31, 2020 Carrying amount Fair value Amortized cost FVPL FVOCI Not classified Total Level 1 Level 2 Level 3 Cash and cash equivalents (1) 1,253,385 151,667 — — 1,405,052 151,667 — — Trade accounts and other receivables 3,634,068 — — 73,960 3,708,028 — — — Accounts receivable from related parties 128,033 — — — 128,033 — — — Derivatives - cash flow hedging instruments — — — 9,084 9,084 — 9,084 — Derivatives - not designated as hedging instruments — 24,204 — — 24,204 — 24,204 — Equity investments — 170,519 47,095 — 217,614 9,434 41,458 166,722 Debt securities — 84,091 271,462 — 355,553 350,770 4,783 — Other financial assets 161,408 — — 104,070 265,478 — — — Other current and non-current assets 161,408 278,814 318,557 113,154 871,933 — — — Financial assets 5,176,894 430,481 318,557 187,114 6,113,046 — — — Accounts payable 762,384 — — — 762,384 — — — Accounts payable to related parties 134,159 — — — 134,159 — — — Short-term debt and short-term debt from related parties 2,027,511 — — — 2,027,511 — — — Long-term debt 7,768,094 — — — 7,768,094 5,073,510 2,692,280 — Long-term lease liabilities and long-term lease liabilities from related parties — — — 4,781,629 4,781,629 — — — Derivatives - cash flow hedging instruments — — — 1,248 1,248 — 1,248 — Derivatives - not designated as hedging instruments — 12,530 — — 12,530 — 12,530 — Variable payments outstanding for acquisitions — 74,194 — — 74,194 — — 74,194 Noncontrolling interest subject to put provisions — — — 953,719 953,719 — — 953,719 Other financial liabilities 1,471,320 — — — 1,471,320 — — — Other current and non-current liabilities 1,471,320 86,724 — 954,967 2,513,011 — — — Financial liabilities 12,163,468 86,724 — 5,736,596 17,986,788 — — — (1) Highly liquid short-term investments are categorized in level 1 of the fair value hierarchy. Cash and cash equivalents measured at amortized cost is not categorized . Carrying amount and fair value of financial instruments in € THOUS December 31, 2019 Carrying amount Fair value Amortized cost FVPL FVOCI Not classified Total Level 1 Level 2 Level 3 Cash and cash equivalents (1) 841,046 166,677 — — 1,007,723 166,677 — — Trade accounts and other receivables 3,343,873 — — 77,473 3,421,346 — — — Accounts receivable from related parties 159,196 — — — 159,196 — — — Derivatives - cash flow hedging instruments — — — 107 107 — 107 — Derivatives - not designated as hedging instruments — 2,406 — — 2,406 — 2,406 — Equity investments — 186,273 50,975 — 237,248 13,110 41,084 183,054 Debt securities — 107,988 261,833 — 369,821 365,170 4,651 - Other financial assets 141,355 — — 111,649 253,004 — — — Other current and non-current assets 141,355 296,667 312,808 111,756 862,586 — — — Financial assets 4,485,470 463,344 312,808 189,229 5,450,851 — — — Accounts payable 716,526 — — — 716,526 — — — Accounts payable to related parties 118,663 — — — 118,663 — — — Short-term debt and short-term debt from related parties 1,171,853 — — — 1,171,853 — — — Long-term debt 7,905,557 — — — 7,905,557 5,555,475 2,537,932 — Long-term lease liabilities and long-term lease liabilities from related parties — — — 4,705,038 4,705,038 — — — Derivatives - cash flow hedging instruments — — — 2,534 2,534 — 2,534 — Derivatives - not designated as hedging instruments — 10,762 — — 10,762 — 10,762 — Variable payments outstanding for acquisitions — 89,677 — — 89,677 — — 89,677 Noncontrolling interest subject to put provisions — — — 934,425 934,425 — — 934,425 Other financial liabilities 1,414,464 — — — 1,414,464 — — — Other current and non-current liabilities 1,414,464 100,439 — 936,959 2,451,862 — — — Financial liabilities 11,327,063 100,439 — 5,641,997 17,069,499 — — — (1) Highly liquid short-term investments are categorized in level 1 of the fair value hierarchy. Cash and cash equivalents measured at amortized cost is not categorized. |
Schedule of reconciliation of level 3 financial instruments | Reconciliation from beginning to ending balance of level 3 financial instruments in € THOUS 2020 2019 Variable Variable payments Noncontrolling payments Noncontrolling Equity outstanding for interests subject Equity outstanding for interests subject investments acquisitions to put provisions investments acquisitions to put provisions Beginning balance at January 1, 183,054 89,677 934,425 — 172,278 818,871 Transfer from Level 2 — — — 186,427 — — Increase — 11,886 5,234 2,233 4,828 109,109 Decrease — (26,229) (8,720) — (43,941) (20,269) (Gain) loss recognized in profit or loss (20,843) 12 — 128 (41,537) — (Gain) loss recognized in equity — — 12,963 — — 14,523 Foreign currency translation and other changes 4,511 (1,152) 9,817 (5,734) (1,951) 12,191 Ending balance at March 31, and December 31, 166,722 74,194 953,719 183,054 89,677 934,425 |
Segment and corporate informa_2
Segment and corporate information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment and corporate information | |
Schedule of segment and corporate information | Segment and corporate information in € THOUS North Asia- Latin America EMEA Pacific America Total Segment Segment Segment Segment Segment Corporate Total Three months ended March 31, 2020 Revenue from contracts with customers 3,102,277 672,494 431,936 167,262 4,373,969 11,965 4,385,934 Other revenue external customers 83,946 6,252 10,958 706 101,862 — 101,862 Revenue external customers 3,186,223 678,746 442,894 167,968 4,475,831 11,965 4,487,796 Inter-segment revenue 7,175 1,313 4 121 8,613 (8,613) — Revenue 3,193,398 680,059 442,898 168,089 4,484,444 3,352 4,487,796 Operating income 463,411 101,054 76,809 6,857 648,131 (93,001) 555,130 Interest (104,219) Income before income taxes 450,911 Depreciation and amortization (256,629) (45,975) (25,959) (8,712) (337,275) (62,399) (399,674) Impairment loss (999) (14) — — (1,013) — (1,013) Income (loss) from equity method investees 21,050 (1,662) 950 71 20,409 — 20,409 Total assets 22,761,436 3,824,691 2,774,610 872,778 30,233,515 3,838,912 34,072,427 thereof investment in equity method investees 425,139 166,369 100,723 24,911 717,142 — 717,142 Additions of property, plant and equipment, intangible assets and right of use assets 359,866 45,173 45,290 17,167 467,496 75,785 543,281 Three months ended March 31, 2019 Revenue from contracts with customers 2,826,212 635,800 411,603 160,601 4,034,216 4,168 4,038,384 Other revenue external customers 60,564 16,813 15,971 825 94,173 — 94,173 Revenue external customers 2,886,776 652,613 427,574 161,426 4,128,389 4,168 4,132,557 Inter-segment revenue 576 1 234 65 876 (876) — Revenue 2,887,352 652,614 427,808 161,491 4,129,265 3,292 4,132,557 Operating income 372,394 137,776 94,702 11,395 616,267 (79,717) 536,550 Interest (107,848) Income before income taxes 428,702 Depreciation and amortization (228,735) (46,973) (22,601) (8,363) (306,672) (55,704) (362,376) Income (loss) from equity method investees 21,362 (1,317) (294) 282 20,033 — 20,033 Total assets 21,513,220 4,232,196 2,669,344 821,984 29,236,744 3,116,460 32,353,204 thereof investment in equity method investees 332,184 177,658 96,641 23,956 630,439 — 630,439 Additions of property, plant and equipment, intangible assets and right of use assets 188,150 47,114 13,743 14,783 263,790 73,487 337,277 |
The Company and basis of pres_2
The Company and basis of presentation (Details) € in Thousands | 3 Months Ended | |
Mar. 31, 2020EUR (€) | Mar. 31, 2019EUR (€) | |
Borrowings under lines of credit | ||
The Company and basis of presentation | ||
Borrowings under cash management system | € 352,846 | |
Research and development expense reclassified to selling, general and administrative | ||
The Company and basis of presentation | ||
Amount of reclassifications or changes in presentation | € 5,016 | |
Trade accounts and other receivables reclassified to accounts receivable from related parties, cash flow | ||
The Company and basis of presentation | ||
Amount of reclassifications or changes in presentation | € 16,224 | |
ARGENTINA | ||
The Company and basis of presentation | ||
Gains (losses) on net monetary position | € (4,131) | |
Level of price index | 305.6 | |
Percentage of price index increase | 8.00% |
Notes to the consolidated sta_3
Notes to the consolidated statements of income - Revenue (Details) - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | ||
Dialysis services | € 3,198,252 | € 2,957,381 |
Care Coordination | 396,411 | 359,927 |
Health care services | 3,594,663 | 3,317,308 |
Dialysis products | 864,634 | 796,675 |
Non-dialysis products | 28,499 | 18,574 |
Health care products | 893,133 | 815,249 |
Total | 4,487,796 | 4,132,557 |
Revenue from contracts with customers | ||
Revenue | ||
Dialysis services | 3,198,252 | 2,957,381 |
Care Coordination | 317,320 | 299,544 |
Health care services | 3,515,572 | 3,256,925 |
Dialysis products | 841,863 | 762,885 |
Non-dialysis products | 28,499 | 18,574 |
Health care products | 870,362 | 781,459 |
Total | 4,385,934 | 4,038,384 |
Other revenue | ||
Revenue | ||
Care Coordination | 79,091 | 60,383 |
Health care services | 79,091 | 60,383 |
Dialysis products | 22,771 | 33,790 |
Health care products | 22,771 | 33,790 |
Total | € 101,862 | € 94,173 |
Notes to the consolidated sta_4
Notes to the consolidated statements of income - Research and development expenses (Details) - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Detailed information on intangible assets | ||
Research and development expense | € 45,917 | € 28,598 |
Depreciation and amortisation expense | 399,674 | 362,376 |
Capitalized development costs | ||
Detailed information on intangible assets | ||
Depreciation and amortisation expense | € 1,263 | € 92 |
Notes to the consolidated sta_5
Notes to the consolidated statements of income - Earnings per share (Details) - EUR (€) € / shares in Units, € in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerators: | ||
Net income attributable to shareholders of FMC-AG & Co. KGaA | € 282,719 | € 270,749 |
Denominators: | ||
Weighted average number of shares outstanding | 297,842,343 | 306,659,364 |
Potentially dilutive shares | 219,801 | |
Basic earnings per share | € 0.95 | € 0.88 |
Diluted earnings per share | € 0.95 | € 0.88 |
Notes to the consolidated sta_6
Notes to the consolidated statements of income - Treasury stock (Details) - EUR (€) € / shares in Units, € in Thousands | Apr. 01, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | Oct. 31, 2019 | Sep. 30, 2019 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | May 31, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Jun. 14, 2019 | Dec. 31, 2018 |
Treasury stock | ||||||||||||||||||||
Maximum number of shares allowed to be repurchased (in shares) | 12,000,000 | |||||||||||||||||||
Maximum purchase price of shares to be repurchased | € 660,000 | |||||||||||||||||||
Value of treasury shares held | € 692,666 | € 370,502 | € 692,666 | € 370,502 | ||||||||||||||||
Value of shares repurchased | € 322,164 | € 113,816 | ||||||||||||||||||
Treasury stock | ||||||||||||||||||||
Treasury stock | ||||||||||||||||||||
Maximum number of shares allowed to be repurchased (in shares) | 1,899,662 | 1,899,662 | ||||||||||||||||||
Average price per share, at date | € 62.40 | € 60.66 | € 62.40 | € 60.66 | € 51 | |||||||||||||||
Average price paid per repurchased share, during period | € 63.07 | € 63.05 | € 249.10 | € 84.37 | € 63.85 | € 64.78 | € 57.85 | € 59.67 | € 57.53 | € 66.77 | € 67.11 | € 72.97 | € 72.83 | € 69.86 | € 64.53 | € 71.55 | € 62.55 | |||
Average price per retired share, during period | € 71.55 | |||||||||||||||||||
Number of treasury shares held | 11,100,289 | 6,107,629 | 11,100,289 | 6,107,629 | 999,951 | |||||||||||||||
Number of shares repurchased | 694,813 | 4,842,943 | 25,319 | 124,398 | 564,908 | 852,859 | 692,910 | 627,466 | 835,208 | 1,029,655 | 504,672 | 147,558 | 1,993,974 | 1,629,240 | 4,992,660 | 3,770,772 | 1,629,240 | 5,107,678 | ||
Number of shares retired | 3,770,772 | |||||||||||||||||||
Value of treasury shares held | € 692,666 | € 370,502 | € 692,666 | € 370,502 | € 50,993 | |||||||||||||||
Value of shares repurchased | € 43,824 | € 305,362 | € 6,307 | € 10,495 | € 36,067 | € 55,245 | € 40,084 | € 37,445 | € 48,050 | € 68,748 | € 33,870 | € 10,766 | € 145,214 | € 113,816 | € 322,164 | € 269,796 | € 113,816 | € 319,509 | ||
Value of shares retired | € 269,796 | |||||||||||||||||||
Fees (net of taxes) paid, included in value of shares repurchased | € 11 |
Related party transactions - Se
Related party transactions - Service agreements and products - General (Details) | Mar. 31, 2020 | Mar. 31, 2020 |
Vifor Fresenius Medical Care Renal Pharma Ltd. | ||
Related party transactions | ||
Ownership in joint venture (as a percent) | 45.00% | |
Fresenius SE | ||
Related party transactions | ||
Proportion of ownership interest in reporting entity (as a percent) | 32.17% | 32.17% |
Fresenius SE Companies | Minimum | ||
Related party transactions | ||
Term of related party agreement | 1 year | |
Fresenius SE Companies | Maximum | ||
Related party transactions | ||
Term of related party agreement | 5 years |
Related party transactions - _2
Related party transactions - Service agreements and products with related parties (Details) - EUR (€) € in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Service Agreements | |||
Transactions | |||
Sales of goods and services | € 3,324 | € 17,926 | |
Purchases of goods and services | 31,778 | 29,834 | |
Balances | |||
Accounts receivable | 70,942 | € 70,338 | |
Accounts payable | 10,075 | 6,776 | |
Accrued expenses | 7,185 | 8,352 | |
Products | |||
Transactions | |||
Sales of goods and services | 10,821 | 9,862 | |
Purchases of goods and services | 121,177 | 132,944 | |
Balances | |||
Accounts receivable | 15,276 | 16,803 | |
Accounts payable | 83,827 | 39,667 | |
Fresenius SE | Service Agreements | |||
Transactions | |||
Sales of goods and services | 28 | 32 | |
Purchases of goods and services | 5,450 | 5,182 | |
Balances | |||
Accounts receivable | 996 | 35 | |
Accounts payable | 3,515 | 360 | |
Fresenius SE affiliates | Service Agreements | |||
Transactions | |||
Sales of goods and services | 1,187 | 940 | |
Purchases of goods and services | 26,328 | 24,652 | |
Balances | |||
Accounts receivable | 2,431 | 2,003 | |
Accounts payable | 6,560 | 6,416 | |
Fresenius SE affiliates | Products | |||
Transactions | |||
Sales of goods and services | 10,821 | 9,862 | |
Purchases of goods and services | 9,048 | 8,290 | |
Balances | |||
Accounts receivable | 15,276 | 16,803 | |
Accounts payable | 3,162 | 3,405 | |
Equity method investees | Service Agreements | |||
Transactions | |||
Sales of goods and services | 2,109 | 16,954 | |
Balances | |||
Accounts receivable | 67,515 | 68,300 | |
Equity method investees | Products | |||
Transactions | |||
Purchases of goods and services | 112,129 | € 124,654 | |
Balances | |||
Accounts payable | € 80,665 | € 36,262 |
Related Party Transactions - Le
Related Party Transactions - Lease Agreements - Summary (Details) - EUR (€) € in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Leases balances | |||
Right-of-use asset | € 4,401,235 | € 4,325,115 | |
Lease Agreements | |||
Lease Transactions | |||
Depreciation | 4,371 | € 4,303 | |
Interest expense | 444 | 490 | |
Lease expense | 1,169 | 1,015 | |
Leases balances | |||
Right-of-use asset | 120,445 | 122,215 | |
Lease liability | 121,542 | 122,946 | |
Fresenius SE | Lease Agreements | |||
Lease Transactions | |||
Depreciation | 1,124 | 1,214 | |
Interest expense | 110 | 137 | |
Lease expense | 1,099 | 854 | |
Leases balances | |||
Right-of-use asset | 30,452 | 30,336 | |
Lease liability | 30,725 | 30,820 | |
Fresenius SE affiliates | Lease Agreements | |||
Lease Transactions | |||
Depreciation | 3,247 | 3,089 | |
Interest expense | 334 | 353 | |
Lease expense | 70 | € 161 | |
Leases balances | |||
Right-of-use asset | 89,993 | 91,879 | |
Lease liability | € 90,817 | € 92,126 |
Related party transactions - Fi
Related party transactions - Financing (Details) - EUR (€) € in Thousands | Nov. 28, 2013 | Aug. 19, 2009 | Mar. 31, 2020 | Dec. 31, 2019 |
Fresenius SE | Short-term financing | ||||
Balances | ||||
Accounts receivable | € 39,538 | € 71,078 | ||
Accounts payable | € 0 | € 38,050 | ||
Fresenius SE | Loans | ||||
Transactions | ||||
Interest rate on borrowings (as a percent) | 0.93% | 0.93% | ||
Outstanding borrowings | € 517,600 | € 18,865 | ||
General Partner | Unsecured debt - originated in 2009 | ||||
Transactions | ||||
Proceeds from short-term debt from related parties | € 1,500 | |||
Interest rate on borrowings (as a percent) | 1.335% | 0.93% | ||
General Partner | Unsecured debt - originated in 2013 | ||||
Transactions | ||||
Proceeds from short-term debt from related parties | € 1,500 | |||
Interest rate on borrowings (as a percent) | 1.875% | 0.93% | ||
Subsidiary of Fresenius SE | Bonds | ||||
Transactions | ||||
Interest rate on borrowings (as a percent) | 5.25% | 5.25% | ||
Outstanding borrowings | € 1,000 | € 1,000 |
Related party transactions - Ke
Related party transactions - Key management personnel (Details) - General Partner - EUR (€) € in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Transactions | |||
Amount paid for services received from related party | € 8,265 | € 8,028 | |
Balances | |||
Accounts receivable | 2,277 | € 977 | |
Accounts payable | € 40,257 | € 34,170 |
Inventories (Details)
Inventories (Details) - EUR (€) € in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventories | ||
Finished goods | € 999,632 | € 940,407 |
Health care supplies | 398,200 | 399,585 |
Raw materials and purchased components | 235,148 | 227,654 |
Work in process | 110,119 | 95,632 |
Inventories | € 1,743,099 | € 1,663,278 |
Short-term debt and short-ter_3
Short-term debt and short-term debt from related parties (Details) € in Thousands, $ in Thousands | Mar. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Jul. 31, 2019EUR (€) | Jul. 30, 2019USD ($) |
Debt | ||||
Short-term debt | € 1,506,911 | € 1,149,988 | ||
Short-term debt from related parties | 520,600 | 21,865 | ||
Short-term debt and short-term debt from related parties | 2,027,511 | 1,171,853 | ||
Commercial paper program | ||||
Debt | ||||
Short-term debt | 929,775 | 999,732 | ||
Commercial paper borrowing limit | 1,000,000 | 1,000,000 | ||
Borrowings under lines of credit | ||||
Debt | ||||
Short-term debt | 570,833 | 143,875 | ||
Borrowings under cash management system | 352,846 | |||
Borrowings offset under cash management system | 152,598 | |||
Other | ||||
Debt | ||||
Short-term debt | € 6,303 | € 6,381 | ||
Related party loan agreement | ||||
Debt | ||||
Short term borrowing capacity from related party | € 600,000 | $ 400,000 |
Long-term debt (Details)
Long-term debt (Details) - EUR (€) € in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Long-term debt | ||
Long-term debt | € 7,768,094 | € 7,905,557 |
Less current portion | (1,964,695) | (1,447,239) |
Long-term debt, less current portion | 5,803,399 | 6,458,318 |
Amended 2012 Credit Agreement | ||
Long-term debt | ||
Long-term debt | 1,793,097 | 1,901,372 |
Bonds | ||
Long-term debt | ||
Long-term debt | 5,030,206 | 4,966,619 |
Convertible Bonds | ||
Long-term debt | ||
Long-term debt | 399,939 | |
Accounts Receivable Facility | ||
Long-term debt | ||
Long-term debt | 662,030 | 379,570 |
Other long-term debt | ||
Long-term debt | ||
Long-term debt | € 282,761 | € 258,057 |
Long-term debt - Amended 2012 c
Long-term debt - Amended 2012 credit agreement (Details) € in Thousands, $ in Thousands | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) |
Amended 2012 Credit Agreement | ||||
Long-term debt | ||||
Maximum amount available | € 3,196,758 | € 3,183,030 | ||
Balance outstanding | 1,796,444 | 1,905,355 | ||
Revolving credit facility USD | ||||
Long-term debt | ||||
Maximum amount available | $ 900,000 | 821,468 | $ 900,000 | 801,139 |
Balance outstanding | 23,176 | 21,154 | 138,700 | 123,464 |
Revolving credit facility EUR | ||||
Long-term debt | ||||
Maximum amount available | 600,000 | 600,000 | ||
USD term loan 5-year | ||||
Long-term debt | ||||
Maximum amount available | 1,200,000 | 1,095,290 | 1,230,000 | 1,094,891 |
Balance outstanding | $ 1,200,000 | 1,095,290 | $ 1,230,000 | 1,094,891 |
EUR term loan 5-year | ||||
Long-term debt | ||||
Maximum amount available | 280,000 | 287,000 | ||
Balance outstanding | 280,000 | 287,000 | ||
EUR term loan 3-year | ||||
Long-term debt | ||||
Maximum amount available | 400,000 | 400,000 | ||
Balance outstanding | € 400,000 | € 400,000 |
Long-term debt - Accounts Recei
Long-term debt - Accounts Receivable Facility and Other (Details) - Accounts Receivable Facility € in Thousands, $ in Thousands | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) |
Long-term debt | ||||
Maximum amount available | $ 900,000 | € 821,468 | $ 900,000 | € 801,139 |
Balance outstanding | 725,750 | 662,422 | 427,000 | 380,096 |
Letters of credit outstanding | $ 12,522 | € 11,429 | $ 23,460 | € 20,883 |
Supplementary information on _3
Supplementary information on capital management (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Supplementary information on capital management | ||
Total equity in % of total assets | 38.90% | 40.20% |
Debt and lease liabilities in % of total assets | 42.80% | 41.80% |
Commitments and contingencies (
Commitments and contingencies (Details) € in Thousands, $ in Thousands | Mar. 29, 2019USD ($) | Dec. 14, 2017EUR (€) | May 31, 2017 | Mar. 31, 2020EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2017EUR (€) | Jul. 31, 2015EUR (€) |
Commitments and contingencies | |||||||
Number of U.S. FDA Pending Warning Letters | 1 | ||||||
Foreign Corrupt Practices Act | |||||||
Commitments and contingencies | |||||||
FCPA related charge | € 77,200 | € 200,000 | |||||
FCPA related payment | $ | $ 231,700 | ||||||
Legal proceedings provision | € 223,980 | ||||||
Foreign Corrupt Practices Act | Minimum | |||||||
Commitments and contingencies | |||||||
Independent compliance monitor period (in years) | 2 years | ||||||
Acid Concentrate Products - Personal Injury | |||||||
Commitments and contingencies | |||||||
Settlement fund | € 220,000 | ||||||
Net litigation settlement expense recorded | € 60,000 | ||||||
Acid Concentrate Products - Deceptive Practices | |||||||
Commitments and contingencies | |||||||
Number of plaintiffs | 4 | ||||||
Hawaii Medicaid False Claims | |||||||
Commitments and contingencies | |||||||
Amount claimed against company | € 8,000 | ||||||
Management of pharmaceuticals, including Velphoro | |||||||
Commitments and contingencies | |||||||
Litigation settlement by Davita Rx | € 63,700 | ||||||
United States Attorney for the Middle District of Tennessee | |||||||
Commitments and contingencies | |||||||
Litigation settlement by Davita Rx | € 63,700 | ||||||
Number of subsidiaries to which subpoenas were issued | 2 |
Financial instruments - Carryin
Financial instruments - Carrying amount and fair value (Details) - EUR (€) € in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Carrying amount of financial assets | € 6,113,046 | € 5,450,851 |
Carrying amount of financial liabilities | 17,986,788 | 17,069,499 |
Amortized cost - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 12,163,468 | 11,327,063 |
FVPL - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 86,724 | 100,439 |
Not classified | ||
Financial instruments | ||
Carrying amount of financial liabilities | 5,736,596 | 5,641,997 |
Accounts payable | ||
Financial instruments | ||
Carrying amount of financial liabilities | 762,384 | 716,526 |
Accounts payable | Amortized cost - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 762,384 | 716,526 |
Accounts payable to related parties | ||
Financial instruments | ||
Carrying amount of financial liabilities | 134,159 | 118,663 |
Accounts payable to related parties | Amortized cost - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 134,159 | 118,663 |
Short-term debt and short-term debt from related parties | ||
Financial instruments | ||
Carrying amount of financial liabilities | 2,027,511 | 1,171,853 |
Short-term debt and short-term debt from related parties | Amortized cost - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 2,027,511 | 1,171,853 |
Long-term debts | ||
Financial instruments | ||
Carrying amount of financial liabilities | 7,768,094 | 7,905,557 |
Long-term debts | Level 1 | ||
Financial instruments | ||
Fair value of financial liabilities | 5,073,510 | 5,555,475 |
Long-term debts | Level 2 | ||
Financial instruments | ||
Fair value of financial liabilities | 2,692,280 | 2,537,932 |
Long-term debts | Amortized cost - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 7,768,094 | 7,905,557 |
Long-term lease liabilities and long-term lease liabilities from related parties | ||
Financial instruments | ||
Carrying amount of financial liabilities | 4,781,629 | 4,705,038 |
Long-term lease liabilities and long-term lease liabilities from related parties | Not classified | ||
Financial instruments | ||
Carrying amount of financial liabilities | 4,781,629 | 4,705,038 |
Other current and non-current liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 2,513,011 | 2,451,862 |
Other current and non-current liabilities | Amortized cost - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 1,471,320 | 1,414,464 |
Other current and non-current liabilities | FVPL - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 86,724 | 100,439 |
Other current and non-current liabilities | Not classified | ||
Financial instruments | ||
Carrying amount of financial liabilities | 954,967 | 936,959 |
Derivatives - cash flow hedging instruments | ||
Financial instruments | ||
Carrying amount of financial liabilities | 1,248 | 2,534 |
Derivatives - cash flow hedging instruments | Level 2 | ||
Financial instruments | ||
Fair value of financial liabilities | 1,248 | 2,534 |
Derivatives - cash flow hedging instruments | Not classified | ||
Financial instruments | ||
Carrying amount of financial liabilities | 1,248 | 2,534 |
Derivatives not designated as hedging instruments | ||
Financial instruments | ||
Carrying amount of financial liabilities | 12,530 | 10,762 |
Derivatives not designated as hedging instruments | Level 2 | ||
Financial instruments | ||
Fair value of financial liabilities | 12,530 | 10,762 |
Derivatives not designated as hedging instruments | FVPL - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 12,530 | 10,762 |
Variable payments outstanding for acquisition | ||
Financial instruments | ||
Carrying amount of financial liabilities | 74,194 | 89,677 |
Variable payments outstanding for acquisition | Level 3 | ||
Financial instruments | ||
Fair value of financial liabilities | 74,194 | 89,677 |
Variable payments outstanding for acquisition | FVPL - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 74,194 | 89,677 |
Noncontrolling interests subject to put provisions | ||
Financial instruments | ||
Carrying amount of financial liabilities | 953,719 | 934,425 |
Noncontrolling interests subject to put provisions | Level 3 | ||
Financial instruments | ||
Fair value of financial liabilities | 953,719 | 934,425 |
Noncontrolling interests subject to put provisions | Not classified | ||
Financial instruments | ||
Carrying amount of financial liabilities | 953,719 | 934,425 |
Other financial liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 1,471,320 | 1,414,464 |
Other financial liabilities | Amortized cost - Liabilities | ||
Financial instruments | ||
Carrying amount of financial liabilities | 1,471,320 | 1,414,464 |
Amortized cost - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 5,176,894 | 4,485,470 |
FVPL - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 430,481 | 463,344 |
FVOCI - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 318,557 | 312,808 |
Not classified | ||
Financial instruments | ||
Carrying amount of financial assets | 187,114 | 189,229 |
Cash and cash equivalents | ||
Financial instruments | ||
Carrying amount of financial assets | 1,405,052 | 1,007,723 |
Cash and cash equivalents | Level 1 | ||
Financial instruments | ||
Fair value of financial assets | 151,667 | 166,677 |
Cash and cash equivalents | Amortized cost - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 1,253,385 | 841,046 |
Cash and cash equivalents | FVPL - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 151,667 | 166,677 |
Trade accounts and other receivables | ||
Financial instruments | ||
Carrying amount of financial assets | 3,708,028 | 3,421,346 |
Trade accounts and other receivables | Amortized cost - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 3,634,068 | 3,343,873 |
Trade accounts and other receivables | Not classified | ||
Financial instruments | ||
Carrying amount of financial assets | 73,960 | 77,473 |
Accounts receivable from related parties | ||
Financial instruments | ||
Carrying amount of financial assets | 128,033 | 159,196 |
Accounts receivable from related parties | Amortized cost - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 128,033 | 159,196 |
Other current and non-current assets | ||
Financial instruments | ||
Carrying amount of financial assets | 871,933 | 862,586 |
Other current and non-current assets | Amortized cost - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 161,408 | 141,355 |
Other current and non-current assets | FVPL - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 278,814 | 296,667 |
Other current and non-current assets | FVOCI - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 318,557 | 312,808 |
Other current and non-current assets | Not classified | ||
Financial instruments | ||
Carrying amount of financial assets | 113,154 | 111,756 |
Derivatives - cash flow hedging instruments | ||
Financial instruments | ||
Carrying amount of financial assets | 9,084 | 107 |
Derivatives - cash flow hedging instruments | Level 2 | ||
Financial instruments | ||
Fair value of financial assets | 9,084 | 107 |
Derivatives - cash flow hedging instruments | Not classified | ||
Financial instruments | ||
Carrying amount of financial assets | 9,084 | 107 |
Derivatives not designated as hedging instruments | ||
Financial instruments | ||
Carrying amount of financial assets | 24,204 | 2,406 |
Derivatives not designated as hedging instruments | Level 2 | ||
Financial instruments | ||
Fair value of financial assets | 24,204 | 2,406 |
Derivatives not designated as hedging instruments | FVPL - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 24,204 | 2,406 |
Equity investments | ||
Financial instruments | ||
Carrying amount of financial assets | 217,614 | 237,248 |
Equity investments | Level 1 | ||
Financial instruments | ||
Fair value of financial assets | 9,434 | 13,110 |
Equity investments | Level 2 | ||
Financial instruments | ||
Fair value of financial assets | 41,458 | 41,084 |
Equity investments | Level 3 | ||
Financial instruments | ||
Fair value of financial assets | 166,722 | 183,054 |
Equity investments | FVPL - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 170,519 | 186,273 |
Equity investments | FVOCI - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 47,095 | 50,975 |
Debt securities | ||
Financial instruments | ||
Carrying amount of financial assets | 355,553 | 369,821 |
Debt securities | Level 1 | ||
Financial instruments | ||
Fair value of financial assets | 350,770 | 365,170 |
Debt securities | Level 2 | ||
Financial instruments | ||
Fair value of financial assets | 4,783 | 4,651 |
Debt securities | FVPL - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 84,091 | 107,988 |
Debt securities | FVOCI - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 271,462 | 261,833 |
Other financial assets | ||
Financial instruments | ||
Carrying amount of financial assets | 265,478 | 253,004 |
Other financial assets | Amortized cost - Assets | ||
Financial instruments | ||
Carrying amount of financial assets | 161,408 | 141,355 |
Other financial assets | Not classified | ||
Financial instruments | ||
Carrying amount of financial assets | € 104,070 | € 111,649 |
Financial instruments - Derivat
Financial instruments - Derivative and non-derivative financial instruments (Details) - EUR (€) € in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in fair value measurement | ||
Assets at beginning of period | € 32,934,735 | |
Assets at end of period | 34,072,427 | € 32,934,735 |
Liabilities at beginning of period | 19,707,498 | |
Liabilities at end of period | 20,802,491 | 19,707,498 |
Equity investments | Fair Value | Level 3 | ||
Reconciliation of changes in fair value measurement | ||
Assets at beginning of period | 183,054 | |
Transfer from Level 2 | 186,427 | |
Increase | 2,233 | |
Gains (losses) recognised in profit or loss | (20,843) | 128 |
Foreign currency translation and other changes | 4,511 | (5,734) |
Assets at end of period | 166,722 | 183,054 |
Variable payments outstanding for acquisition | Fair Value | Level 3 | ||
Reconciliation of changes in fair value measurement | ||
Liabilities at beginning of period | 89,677 | 172,278 |
Increase | 11,886 | 4,828 |
Decrease | (26,229) | (43,941) |
(Gain) loss recognized in profit or loss | 12 | (41,537) |
Foreign currency translation and other changes | (1,152) | (1,951) |
Liabilities at end of period | 74,194 | 89,677 |
Noncontrolling interests subject to put provisions | Fair Value | Level 3 | ||
Reconciliation of changes in fair value measurement | ||
Liabilities at beginning of period | 934,425 | 818,871 |
Increase | 5,234 | 109,109 |
Decrease | (8,720) | (20,269) |
(Gain) loss recognized in equity | 12,963 | 14,523 |
Foreign currency translation and other changes | 9,817 | 12,191 |
Liabilities at end of period | € 953,719 | € 934,425 |
Noncontrolling interests subject to put provisions | Fair Value | Level 3 | Assumed earnings | ||
Reconciliation of changes in fair value measurement | ||
Increase in input | 10.00% | |
Increase in fair value due to increase in input | € 68,490 | |
Noncontrolling interests subject to put provisions | Fair Value | Level 3 | Assumed earnings | Maximum | ||
Reconciliation of changes in fair value measurement | ||
Increase in fair value due to increase in input, as percentage of total liabilities | 1.00% | |
Increase in fair value due to increase in input, as percentage of equity | 1.00% |
Segment and corporate informa_3
Segment and corporate information (Details) - EUR (€) € in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment and corporate information | |||
Revenue | € 4,487,796 | € 4,132,557 | |
Operating income | 555,130 | 536,550 | |
Interest | (104,219) | (107,848) | |
Income before income taxes | 450,911 | 428,702 | |
Depreciation and amortization | (399,674) | (362,376) | |
Impairment loss | (1,013) | ||
Income (loss) from equity method investees | 20,409 | 20,033 | |
Total assets | 34,072,427 | 32,353,204 | € 32,934,735 |
thereof investments in equity method investees | 717,142 | 630,439 | € 696,872 |
Additions to non-current assets | 543,281 | 337,277 | |
Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue | 4,385,934 | 4,038,384 | |
Other revenue | |||
Segment and corporate information | |||
Revenue | 101,862 | 94,173 | |
Segment Total | |||
Segment and corporate information | |||
Revenue | 4,475,831 | 4,128,389 | |
Operating income | 648,131 | 616,267 | |
Depreciation and amortization | (337,275) | (306,672) | |
Impairment loss | (1,013) | ||
Income (loss) from equity method investees | 20,409 | 20,033 | |
Total assets | 30,233,515 | 29,236,744 | |
thereof investments in equity method investees | 717,142 | 630,439 | |
Additions to non-current assets | 467,496 | 263,790 | |
Segment Total | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue | 4,373,969 | 4,034,216 | |
Segment Total | Other revenue | |||
Segment and corporate information | |||
Revenue | 101,862 | 94,173 | |
North America Segment | |||
Segment and corporate information | |||
Revenue | 3,186,223 | 2,886,776 | |
Operating income | 463,411 | 372,394 | |
Depreciation and amortization | (256,629) | (228,735) | |
Impairment loss | (999) | ||
Income (loss) from equity method investees | 21,050 | 21,362 | |
Total assets | 22,761,436 | 21,513,220 | |
thereof investments in equity method investees | 425,139 | 332,184 | |
Additions to non-current assets | 359,866 | 188,150 | |
North America Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue | 3,102,277 | 2,826,212 | |
North America Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 83,946 | 60,564 | |
EMEA Segment | |||
Segment and corporate information | |||
Revenue | 678,746 | 652,613 | |
Operating income | 101,054 | 137,776 | |
Depreciation and amortization | (45,975) | (46,973) | |
Impairment loss | (14) | ||
Income (loss) from equity method investees | (1,662) | (1,317) | |
Total assets | 3,824,691 | 4,232,196 | |
thereof investments in equity method investees | 166,369 | 177,658 | |
Additions to non-current assets | 45,173 | 47,114 | |
EMEA Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue | 672,494 | 635,800 | |
EMEA Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 6,252 | 16,813 | |
Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | 442,894 | 427,574 | |
Operating income | 76,809 | 94,702 | |
Depreciation and amortization | (25,959) | (22,601) | |
Income (loss) from equity method investees | 950 | (294) | |
Total assets | 2,774,610 | 2,669,344 | |
thereof investments in equity method investees | 100,723 | 96,641 | |
Additions to non-current assets | 45,290 | 13,743 | |
Asia-Pacific Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue | 431,936 | 411,603 | |
Asia-Pacific Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 10,958 | 15,971 | |
Latin America Segment | |||
Segment and corporate information | |||
Revenue | 167,968 | 161,426 | |
Operating income | 6,857 | 11,395 | |
Depreciation and amortization | (8,712) | (8,363) | |
Income (loss) from equity method investees | 71 | 282 | |
Total assets | 872,778 | 821,984 | |
thereof investments in equity method investees | 24,911 | 23,956 | |
Additions to non-current assets | 17,167 | 14,783 | |
Latin America Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue | 167,262 | 160,601 | |
Latin America Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 706 | 825 | |
Corporate | |||
Segment and corporate information | |||
Revenue | 11,965 | 4,168 | |
Operating income | (93,001) | (79,717) | |
Depreciation and amortization | (62,399) | (55,704) | |
Total assets | 3,838,912 | 3,116,460 | |
Additions to non-current assets | 75,785 | 73,487 | |
Corporate | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue | 11,965 | 4,168 | |
Operating Segments | Segment Total | |||
Segment and corporate information | |||
Revenue | 4,484,444 | 4,129,265 | |
Operating Segments | North America Segment | |||
Segment and corporate information | |||
Revenue | 3,193,398 | 2,887,352 | |
Operating Segments | EMEA Segment | |||
Segment and corporate information | |||
Revenue | 680,059 | 652,614 | |
Operating Segments | Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | 442,898 | 427,808 | |
Operating Segments | Latin America Segment | |||
Segment and corporate information | |||
Revenue | 168,089 | 161,491 | |
Operating Segments | Corporate | |||
Segment and corporate information | |||
Revenue | 3,352 | 3,292 | |
Inter-segment | Segment Total | |||
Segment and corporate information | |||
Revenue | (8,613) | (876) | |
Inter-segment | North America Segment | |||
Segment and corporate information | |||
Revenue | (7,175) | (576) | |
Inter-segment | EMEA Segment | |||
Segment and corporate information | |||
Revenue | (1,313) | (1) | |
Inter-segment | Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | (4) | (234) | |
Inter-segment | Latin America Segment | |||
Segment and corporate information | |||
Revenue | (121) | (65) | |
Inter-segment | Corporate | |||
Segment and corporate information | |||
Revenue | € 8,613 | € 876 |