Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document and Entity Information | |
Entity Registrant Name | FRESENIUS MEDICAL CARE AG & Co. KGaA |
Entity Central Index Key | 0001333141 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 292,876,570 |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Interactive Data Current | Yes |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
ICFR Auditor Attestation Flag | true |
Title of 12(b) Security | American Depositary Shares representing Ordinary Shares |
Security Exchange Name | NYSE |
Trading Symbol | FMS |
Consolidated statements of inco
Consolidated statements of income - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Health care services | € 14,114,399 | € 13,872,219 | € 13,264,289 |
Health care products | 3,744,664 | 3,604,336 | 3,282,584 |
Revenue | 17,859,063 | 17,476,555 | 16,546,873 |
Costs of revenue: | |||
Health care services | 10,575,424 | 10,483,822 | 9,899,714 |
Health care products | 1,746,194 | 1,596,882 | 1,492,416 |
Costs of revenue | 12,321,618 | 12,080,704 | 11,392,130 |
Gross profit | 5,537,445 | 5,395,851 | 5,154,743 |
Operating (income) expenses: | |||
Selling, general and administrative | 3,164,559 | 3,060,732 | 2,885,220 |
(Gain) loss related to divestiture of Care Coordination activities | (30,779) | (28,788) | (809,003) |
Research and development expense | 193,774 | 168,028 | 114,074 |
Income from equity method investees | (94,518) | (73,679) | (73,346) |
Operating income | 2,304,409 | 2,269,558 | 3,037,798 |
Other (income) expense: | |||
Interest income | (41,959) | (61,617) | (147,409) |
Interest expense | 409,978 | 491,061 | 448,471 |
Income before income taxes | 1,936,390 | 1,840,114 | 2,736,736 |
Income tax expense | 500,558 | 401,614 | 511,079 |
Net income | 1,435,832 | 1,438,500 | 2,225,657 |
Net income attributable to noncontrolling interests | 271,455 | 238,881 | 243,733 |
Net income attributable to shareholders of FMC-AG & Co. KGaA | € 1,164,377 | € 1,199,619 | € 1,981,924 |
Basic earnings per share | € 3.96 | € 3.96 | € 6.47 |
Diluted earnings per share | € 3.96 | € 3.96 | € 6.45 |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated statements of comprehensive income | |||
Net income | € 1,435,832 | € 1,438,500 | € 2,225,657 |
Components that will not be reclassified to profit or loss: | |||
Equity method investees - share of OCI | 58,166 | ||
FVOCI equity investments | 19,439 | ||
Actuarial gain (loss) on defined benefit pension plans | 4,176 | (99,613) | (28,070) |
Income tax (expense) benefit related to components of other comprehensive income not reclassified | (3,517) | 30,245 | 7,713 |
Total | 78,264 | (69,368) | (20,357) |
Components that may be reclassified subsequently to profit or loss: | |||
Gain (loss) related to foreign currency translation | (1,359,397) | 263,835 | 327,317 |
FVOCI debt securities | 29,096 | ||
Gain (loss) related to cash flow hedges | (188) | (9,672) | 24,895 |
Cost of hedging | 2,967 | (1,961) | (1,335) |
Income tax (expense) benefit related to components of other comprehensive income that may be reclassified | (5,797) | 2,674 | (6,734) |
Total | (1,333,319) | 254,876 | 344,143 |
Other comprehensive income (loss), net of tax | (1,255,055) | 185,508 | 323,786 |
Total comprehensive income | 180,777 | 1,624,008 | 2,549,443 |
Comprehensive income attributable to noncontrolling interests | 171,810 | 259,184 | 285,691 |
Comprehensive income (loss) attributable to shareholders of FMC-AG & Co. KGaA | € 8,967 | € 1,364,824 | € 2,263,752 |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | € 1,081,539 | € 1,007,723 |
Trade accounts and other receivables from unrelated parties | 3,153,045 | 3,421,346 |
Accounts receivable from related parties | 91,438 | 159,196 |
Inventories | 1,895,310 | 1,663,278 |
Other current assets | 1,053,978 | 913,603 |
Total current assets | 7,275,310 | 7,165,146 |
Property, plant and equipment | 4,056,864 | 4,190,281 |
Right-of-use assets | 4,129,888 | 4,325,115 |
Intangible assets | 1,381,009 | 1,426,330 |
Goodwill | 12,958,728 | 14,017,255 |
Deferred taxes | 351,152 | 361,196 |
Investment in equity method investees | 761,113 | 696,872 |
Other non-current assets | 774,972 | 752,540 |
Total non-current assets | 24,413,726 | 25,769,589 |
Total assets | 31,689,036 | 32,934,735 |
Liabilities | ||
Accounts payable to unrelated parties | 731,993 | 716,526 |
Accounts payable to related parties | 95,401 | 118,663 |
Current provisions and other current liabilities | 3,517,076 | 2,864,250 |
Short-term debt from unrelated parties | 62,950 | 1,149,988 |
Short-term debt from related parties | 16,320 | 21,865 |
Current portion of long-term debt | 1,008,359 | 1,447,239 |
Current portion of long-term lease liabilities from unrelated parties | 588,492 | 622,227 |
Current portion of long-term lease liabilities from related parties | 20,664 | 16,514 |
Income tax payable | 118,389 | 101,793 |
Total current liabilities | 6,159,644 | 7,059,065 |
Long-term debt, less current portion | 6,800,101 | 6,458,318 |
Long-term lease liabilities from unrelated parties, less current portion | 3,763,775 | 3,959,865 |
Long-term lease liabilities from related parties, less current portion | 119,356 | 106,432 |
Non-current provisions and other non-current liabilities | 931,590 | 616,916 |
Pension liabilities | 718,502 | 689,195 |
Income tax payable | 78,872 | 78,005 |
Deferred taxes | 785,886 | 739,702 |
Total non-current liabilities | 13,198,082 | 12,648,433 |
Total liabilities | 19,357,726 | 19,707,498 |
Shareholders' equity | ||
Ordinary shares, no par value, 1.00 nominal value, 362,370,124 shares authorized, 292,876,570 issued and outstanding as of December 31, 2020 and 374,165,226 shares authorized, 304,436,876 issued and 298,329,247 outstanding as of December 31, 2019 | 292,877 | 304,437 |
Treasury stock, at cost | (370,502) | |
Additional paid-in capital | 2,872,630 | 3,607,662 |
Retained earnings | 10,254,913 | 9,454,861 |
Accumulated other comprehensive income (loss) | (2,205,340) | (1,038,545) |
Total FMC-AG & Co. KGaA shareholders' equity | 11,215,080 | 11,957,913 |
Noncontrolling interests | 1,116,230 | 1,269,324 |
Total equity | 12,331,310 | 13,227,237 |
Total liabilities and equity | € 31,689,036 | € 32,934,735 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - € / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated balance sheets | ||
Par value | € 0 | € 0 |
Nominal value per share | € 1 | € 1 |
Shares authorized | 362,370,124 | 374,165,226 |
Shares issued | 292,876,570 | 304,436,876 |
Shares outstanding | 292,876,570 | 298,329,247 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net income | € 1,435,832 | € 1,438,500 | € 2,225,657 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and impairment loss | 1,785,899 | 1,593,160 | 789,566 |
Change in deferred taxes, net | 111,104 | 64,266 | 89,171 |
(Gain) loss from the sale of fixed assets, right-of-use assets, investments and divestitures | (58,364) | (99,074) | (807,106) |
Compensation expense related to share-based plans | 1,992 | 10,745 | |
Income from equity method investees | (94,518) | (73,679) | (73,346) |
Interest expense, net | 368,019 | 429,444 | 301,062 |
Changes in assets and liabilities, net of amounts from businesses acquired: | |||
Trade accounts and other receivables from unrelated parties | 11,611 | (105,828) | (164,685) |
Inventories | (355,831) | (117,504) | (157,092) |
Other current and non-current assets | (178,473) | (46,132) | (12,561) |
Accounts receivable from related parties | 60,084 | 41,717 | (5,805) |
Accounts payable to related parties | (16,311) | (35,861) | 4,480 |
Accounts payable to unrelated parties, provisions and other current and non-current liabilities | 1,389,928 | (128,906) | (84,561) |
Income tax payable | 324,455 | 380,067 | 514,957 |
Cash inflow (outflow) from hedging | (12,744) | ||
Received dividends from investments in equity method investees | 89,419 | 46,022 | 44,977 |
Paid interest | (379,994) | (470,223) | (311,971) |
Received interest | 41,959 | 49,453 | 56,809 |
Paid income taxes | (301,663) | (387,719) | (358,386) |
Net cash provided by (used in) operating activities | 4,233,156 | 2,566,951 | 2,061,911 |
Investing activities | |||
Purchases of property, plant and equipment and capitalized development costs | (1,051,983) | (1,124,791) | (1,057,276) |
Acquisitions and investments, net of cash acquired, and purchases of intangible assets | (258,985) | (2,221,359) | (445,016) |
Investments in debt securities | (96,401) | (11,312) | (480,251) |
Proceeds from sale of property, plant and equipment | 15,578 | 11,535 | 54,529 |
Proceeds from divestitures | 14,608 | 43,317 | 1,532,803 |
Proceeds from sale of debt securities | 42,241 | 16,623 | 150,172 |
Net cash provided by (used in) investing activities | (1,334,942) | (3,285,987) | (245,039) |
Financing activities | |||
Proceeds from short-term debt from unrelated parties | 213,116 | 737,409 | 650,634 |
Repayments of short-term debt from unrelated parties | (1,304,526) | (807,807) | (205,790) |
Proceeds from short-term debt from related parties | 581,711 | 281,200 | 217,646 |
Repayments of short-term debt from related parties | (587,180) | (448,311) | (37,746) |
Proceeds from long-term debt | 2,120,905 | 3,460,805 | 612,388 |
Repayments of long-term debt | (1,586,218) | (2,217,005) | (1,076,204) |
Repayments of lease liabilities from unrelated parties | (683,614) | (671,403) | |
Repayments of lease liabilities from related parties | (20,185) | (16,340) | |
Increase (decrease) of accounts receivable facility | (373,840) | 381,430 | (298,912) |
Proceeds from exercise of stock options | 12,653 | 15,864 | 47,404 |
Purchase of treasury stock | (365,988) | (599,796) | (37,221) |
Dividends paid | (351,170) | (354,636) | (324,838) |
Distributions to noncontrolling interests | (366,277) | (296,168) | (296,293) |
Contributions from noncontrolling interests | 46,586 | 68,125 | 67,196 |
Net cash provided by (used in) financing activities | (2,664,027) | (466,633) | (681,736) |
Effect of exchange rate changes on cash and cash equivalents | (160,371) | 47,760 | 32,387 |
Cash and cash equivalents: | |||
Net increase (decrease) in cash and cash equivalents | 73,816 | (1,137,909) | 1,167,523 |
Cash and cash equivalents at beginning of period | 1,007,723 | 2,145,632 | 978,109 |
Cash and cash equivalents at end of period | € 1,081,539 | € 1,007,723 | € 2,145,632 |
Consolidated statements of shar
Consolidated statements of shareholders' equity - EUR (€) € in Thousands | Total FMC-AG & Co. KGaA shareholders' equityIFRS 9 | 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 9 | Retained earningsIFRS 16 | Retained earnings | Foreign currency translation | Cash flow hedges | Pensions | Fair value changes | Noncontrolling interestsIFRS 16 | Noncontrolling interests | IFRS 9 | IFRS 16 | Total |
Balance at beginning of period at Dec. 31, 2017 | € 9,820,102 | € 308,111 | € (108,931) | € 3,969,245 | € 7,137,255 | € (1,203,904) | € (18,336) | € (263,338) | € 1,008,084 | € 10,828,186 | ||||||||
Balance at beginning of period (in shares) at Dec. 31, 2017 | 308,111,000 | (1,659,951) | ||||||||||||||||
Adjustment due to initial application at Dec. 31, 2017 | € (5,076) | € (5,076) | € (5,076) | |||||||||||||||
Adjusted balance at Dec. 31, 2017 | 9,815,026 | € 308,111 | € (108,931) | 3,969,245 | 7,132,179 | (1,203,904) | (18,336) | (263,338) | 1,008,084 | 10,823,110 | ||||||||
Adjusted balance (in shares) at Dec. 31, 2017 | 308,111,000 | (1,659,951) | ||||||||||||||||
Proceeds from exercise of options and related tax effects | 38,777 | € 859 | 37,918 | 38,777 | ||||||||||||||
Proceeds from exercise of options and related tax effects (in shares) | 858,652 | |||||||||||||||||
Compensation expense related to stock options | 6,713 | 6,713 | 6,713 | |||||||||||||||
Purchase of treasury stock | (37,221) | € (37,221) | (37,221) | |||||||||||||||
Purchase of treasury stock (in shares) | (431,000) | |||||||||||||||||
Withdrawal of treasury stock | € (1,091) | € 95,159 | (94,068) | |||||||||||||||
Withdrawal of treasury stock (in shares) | (1,091,000) | 1,091,000 | ||||||||||||||||
Dividends paid | (324,838) | (324,838) | (324,838) | |||||||||||||||
Purchase/sale of noncontrolling interests | (46,463) | (46,463) | 63,939 | 17,476 | ||||||||||||||
Contributions from/to noncontrolling interests | (214,167) | (214,167) | ||||||||||||||||
Put option liabilities | 42,665 | 42,665 | 42,665 | |||||||||||||||
Net income | 1,981,924 | 1,981,924 | 243,733 | 2,225,657 | ||||||||||||||
Other comprehensive income (loss) related to: | ||||||||||||||||||
Foreign currency translation | 285,359 | 292,431 | (18) | (7,054) | 41,958 | 327,317 | ||||||||||||
Cash flow hedges, net of related tax effects | 16,826 | 16,826 | 16,826 | |||||||||||||||
Pensions, net of related tax effects | (20,357) | (20,357) | (20,357) | |||||||||||||||
Total comprehensive income | 2,263,752 | 285,691 | 2,549,443 | |||||||||||||||
Balance at end 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 end 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 | 17,195 | € 329 | 16,866 | 17,195 | ||||||||||||||
Proceeds from exercise of options and related tax effects (in shares) | 328,996 | |||||||||||||||||
Compensation expense related to stock options | 1,992 | 1,992 | 1,992 | |||||||||||||||
Purchase of treasury stock | (589,305) | € (589,305) | (589,305) | |||||||||||||||
Purchase of treasury stock (in shares) | (8,878,450) | |||||||||||||||||
Withdrawal of treasury stock | € (3,771) | € 269,796 | (266,025) | |||||||||||||||
Withdrawal of treasury stock (in shares) | (3,770,772) | 3,770,772 | ||||||||||||||||
Dividends paid | (354,636) | (354,636) | (354,636) | |||||||||||||||
Purchase/sale of noncontrolling interests | (18,516) | (18,516) | 102,341 | 83,825 | ||||||||||||||
Contributions from/to noncontrolling interests | (220,222) | (220,222) | ||||||||||||||||
Put option liabilities | (101,243) | (101,243) | (101,243) | |||||||||||||||
Net income | 1,199,619 | 1,199,619 | 238,881 | 1,438,500 | ||||||||||||||
Other comprehensive income (loss) related to: | ||||||||||||||||||
Foreign currency translation | 243,532 | 246,486 | 27 | (2,981) | 20,303 | 263,835 | ||||||||||||
Cash flow hedges, net of related tax effects | (8,959) | (8,959) | (8,959) | |||||||||||||||
Pensions, net of related tax effects | (69,368) | (69,368) | (69,368) | |||||||||||||||
Total comprehensive income | 1,364,824 | 259,184 | 1,624,008 | |||||||||||||||
Balance at end 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 end 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 | 12,711 | € 235 | 12,476 | € 12,711 | ||||||||||||||
Proceeds from exercise of options and related tax effects (in shares) | 234,796 | |||||||||||||||||
Purchase of treasury stock | (365,988) | € (365,988) | (365,988) | |||||||||||||||
Purchase of treasury stock (in shares) | (5,687,473) | |||||||||||||||||
Withdrawal of treasury stock | € (11,795) | € 736,490 | (724,695) | |||||||||||||||
Withdrawal of treasury stock (in shares) | (11,795,102) | 11,795,102 | ||||||||||||||||
Dividends paid | (351,170) | (351,170) | (351,170) | |||||||||||||||
Purchase/sale of noncontrolling interests | (22,813) | (22,813) | (69,132) | (91,945) | ||||||||||||||
Contributions from/to noncontrolling interests | (255,772) | (255,772) | ||||||||||||||||
Put option liabilities | (24,540) | (24,540) | (24,540) | |||||||||||||||
Transfer of cumulative gains/losses of equity investments | 11,385 | € (11,385) | ||||||||||||||||
Net income | 1,164,377 | 1,164,377 | 271,455 | 1,435,832 | ||||||||||||||
Other comprehensive income (loss) related to: | ||||||||||||||||||
Foreign currency translation | (1,259,752) | (1,271,726) | 724 | 13,831 | (2,581) | (99,645) | (1,359,397) | |||||||||||
Cash flow hedges, net of related tax effects | 2,030 | 2,030 | 2,030 | |||||||||||||||
Pensions, net of related tax effects | 2,985 | 2,985 | 2,985 | |||||||||||||||
Fair value changes | 99,327 | 99,327 | 99,327 | |||||||||||||||
Total comprehensive income | 8,967 | 171,810 | 180,777 | |||||||||||||||
Balance at end of period at Dec. 31, 2020 | € 11,215,080 | € 292,877 | € 2,872,630 | € 10,254,913 | € (1,936,713) | € (7,706) | € (346,282) | € 85,361 | € 1,116,230 | € 12,331,310 | ||||||||
Balance at end of period (in shares) at Dec. 31, 2020 | 292,876,570 | 292,876,570 |
The Company, basis of presentat
The Company, basis of presentation and significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
The Company, basis of presentation and significant accounting policies | |
The Company, basis of presentation and significant accounting policies | 1. The Company, basis of presentation and significant accounting policies 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 leading provider of products and services for individuals with renal diseases, 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 dialysis cyclers, dialyzers, peritoneal dialysis 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 (sold in the first quarter of 2020) 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 notes, “FMC-AG & Co. KGaA,” the “Company” or the “Group” 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 26. Basis of presentation The consolidated financial statements and other financial information included in the Company’s 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 and functional currency. At December 31, 2020, there were no IFRS or International Financial Reporting Interpretations Committee (“IFRIC”) interpretations as endorsed by the European Union relevant for reporting that differed from IFRS as issued by the IASB. The Company is included in the IFRS consolidated financial statements of Fresenius SE & Co. KGaA, Bad Homburg v. d. Höhe, pursuant to Section 315e of the German Commercial Code (“HGB”), published in the Federal Gazette and drawn up for the smallest circle of companies. The consolidated financial statements for the largest circle of companies are drawn up by Fresenius Management SE, Bad Homburg v. d. Höhe, and also published in the Federal Gazette. 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. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in all future periods affected. In order to improve clarity of presentation, various items are aggregated in the consolidated balance sheets and consolidated statements of income. These items are analyzed separately in the notes where this provides useful information to the users of the consolidated financial statements. The consolidated balance sheets contain all information required to be disclosed by IAS 1 (Presentation of Financial Statements) and are in accordance with Accounting Interpretation 1 (“AIC 1”, Balance Sheet Classification according to current/ non-current Distinction in compliance with IAS 1) classified on the basis of the liquidity of assets and liabilities following the consolidated balance sheets. The consolidated statements of income are classified using the cost-of-sales accounting format. The Company applies IAS 29, Financial Reporting in Hyperinflationary Economies, in its Argentine and Lebanese subsidiaries due to inflation in these countries. The table below details the specific inputs used to calculate the loss on net monetary position on a country-specific basis. Inputs for the calculation of losses on net monetary positions Argentina Lebanon Date of IAS 29 initial application July 1, 2018 December 31, 2020 Consumer price index Índice de precios al consumidor Central Administration of Statistics Index at December 31, 2020 (1) 385.9 284.04 Calendar year increase Loss on net monetary position in € THOUS 18,513 5,112 In the consolidated balance sheets, “Non-current provisions and other non-current liabilities” in the amount of €51,831 as of December 31, 2019 have been reclassified to line item “current provisions and other current liabilities” to correct for an immaterial error in the classification of certain put options assumed as part of the acquisition of nephrology clinics. Additionally, we have adjusted the prior year’s comparative consolidated financial statements within the following footnotes to correct for immaterial errors in classification: 1) Inventories (see note 8) - 2) Financial instruments (see note 23) - - - In addition to the adjustments noted above, certain revenue line items in the prior year's comparative consolidated financial statements pertaining to the Company's segment and Corporate activities have been adjusted to conform to the current year's presentation (see note 26). At February 22, 2021, the Management Board authorized the consolidated financial statements for issue and passed them through to the Supervisory Board for review and authorization. Significant accounting policies a) Principles of consolidation and composition of the group The financial statements of consolidated entities have been prepared using uniform accounting methods in accordance with IFRS 10, Consolidated Financial Statements (“IFRS 10”). Acquisitions of companies are accounted for under the purchase method. Besides FMC-AG & Co. KGaA, the consolidated financial statements include all material subsidiaries according to IFRS 10 over which the Company has control. FMC-AG & Co. KGaA controls an entity if it has power over the entity through existing rights that give the Company the current ability to direct the activities that significantly affect the Company’s return. In addition, the Company is exposed to, or has rights to, variable returns from the involvement with the entity and the Company has the ability to use its power over the entity to affect the amount of the Company’s return. The equity method is applied in accordance with IAS 28, Investments in Associates and Joint Ventures (“IAS 28”). Generally, equity method investees are entities in which FMC-AG & Co. KGaA, directly or indirectly, holds 50% or less of the voting power and can exercise significant influence over their financial and operating policies. While our investment in Vifor Fresenius Medical Care Renal Pharma Ltd. makes up a large portion of our equity method investees, there are no investments in equity method investees that are individually material to the Company. Acquisitions of companies are accounted for in accordance with IFRS 3, Business Combinations (“IFRS 3”) at the date of acquisition. Initially, all identifiable assets and liabilities of subsidiaries as well as the noncontrolling interests are recognized at their fair values. The cost is then compared with the fair value of the net assets acquired. Any remaining debit balance is recognized as goodwill and is tested at least once a year for impairment. Any excess of the net fair value of identifiable assets and liabilities over cost still existing after reassessing the purchase price allocation, subsequent to its finalization, is recognized immediately in profit or loss. Intercompany revenues, expenses, income, receivables, payables, accruals, provisions and commitments and contingencies, are eliminated. Profits and losses on items of property, plant and equipment and inventory acquired from other group entities are also eliminated. Deferred tax assets and liabilities are recognized on temporary differences resulting from consolidation procedures. Noncontrolling interest (“NCI”) is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent and is recognized at its fair value at the date of first consolidation. Profits and losses attributable to the noncontrolling interests are separately disclosed in the consolidated statements of income. There are no non-controlling interests that are individually material to the Company. The Company writes put options on NCI mainly for dialysis clinics in which nephrologists or nephrology groups own an equity interest. While in certain of the dialysis clinics the Company is generally the majority owner, other non-affiliated parties, such as groups of nephrologists or a single nephrologist, hold an NCI position. Generally, the put options associated with this business model are valid for an unlimited time. Accordingly, they do not constrain a long-term investment into a dialysis clinic by the NCI holder. The put options provide for settlement in cash. For these put options, IAS 32, Financial Instruments: Presentation (“IAS 32”) paragraph 23 requires the Company to recognize a liability for the present value of the exercise price of the option. The put option liability is recorded in other current provisions and other current liabilities and other non-current provisions and other non-current liabilities at present value of the redemption amount at the balance sheet date. The exercise price of the option is generally based on fair value which is approximated by a multiple of earnings, e.g. a multiple of the proportionate earnings before interest, taxes, depreciation and amortization of the dialysis clinic, and is therefore affected by the periodic changes in the profitability of such a clinic. The Company believes the accounting treatment of the changes to the put option liability under IFRS to this date has not been finally clarified. In the absence of IFRS guidance specifically applicable to the accounting for put options on NCI, the Company, in line with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”) paragraph 10, applied the present access method. According to the present access method, NCI are further recorded in equity. The initial recognition of the put option liability, as well as valuation differences, is recorded in equity with no impact to the income statement (see note 1 h). This presentation results in information that is relevant to the economic decision-making needs of users and to provide reliable financial information as the Company considers these NCI with written put options as equity holders and accordingly attributes net income to NCI. The consolidated financial statements for 2020 include FMC-AG & Co. KGaA as well as 2,305 companies. In 2020, 49 companies were accounted for by the equity method. During 2020, 113 companies were first-time consolidations and 22 companies were deconsolidated. The principal subsidiaries of the Company are those with the most significant contribution to the Company’s revenue, net income or net assets. The Company’s interest in these subsidiaries for the years ended December 31, 2020 and 2019 are listed in the table below: Principal subsidiaries Name Country Main activity Ownership Fresenius Medical Care ("FMC") Argentina S.A. Argentina Provision of health care services 100 % Sale of health care products FMC Australia Pty. Ltd. Australia Provision of health care services 100 % Sale of health care products FMC Colombia S.A. Colombia Provision of health care services 100 % Sale of health care products FMC Deutschland GmbH Germany Sale of health care products 100 % Production of health care products Research and development FMC France S.A.S. France Sale of health care products 100 % FMC GmbH Germany Sale of health care products 100 % FMC Holdings, Inc. USA Provision of health care services 100 % Sale of health care products Production of health care products Research and development FMC Italia S.p.A. Italy Sale of health care products 100 % FMC Korea Ltd. South Korea Sale of health care products 100 % FMC Ltda. (FMC Ltda.) Brazil Sale of health care products 100 % FMC Shanghai Ltd. China Sale of health care products 100 % FMC (U.K.) Ltd. United Kingdom Provision of health care services 100 % Sale of health care products Production of health care products National Medical Care of Spain, S.A.U. Spain Provision of health care services 100 % NephroCare Portugal, S.A. Portugal Provision of health care services 100 % Sale of health care products ZAO Fresenius SP Russian Federation Provision of health care services 100 % Sale of health care products The complete list of participations in affiliated and associated companies of FMC-AG & Co. KGaA will be submitted to the electronic Federal Gazette and the electronic companies register. For 2020, the following fully consolidated German subsidiaries of the Company will apply the exemption provided in Section 264 (3) or Section 264b of the HGB and therefore will be exempt from applying certain legal requirements to prepare notes to the statutory standalone financial statements and a management report as well as the requirements of an independent audit and public disclosure. Companies exempt from applying certain legal requirements Name of the company Registered office of the company Ärztliches Versorgungszentrum Ludwigshafen GmbH im Lusanum Ludwigshafen am Rhein, Germany DiZ München Nephrocare GmbH Munich, Germany ET Software Developments GmbH Heidelberg, Germany Fresenius Medical Care Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Deutschland GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Frankfurt am Main GmbH Frankfurt am Main, Germany Fresenius Medical Care GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Investment GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Zwei Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Ventures GmbH Bad Homburg v. d. Höhe, Germany Medizinisches Versorgungszentrum Berchtesgaden GmbH Berchtesgaden, Germany MVZ Gelsenkirchen-Buer GmbH Gelsenkirchen, Germany Nephrocare Ahrensburg GmbH Ahrensburg, Germany Nephrocare Augsburg GmbH Augsburg, Germany Nephrocare Berlin-Weißensee GmbH Berlin, Germany Nephrocare Betzdorf GmbH Betzdorf, Germany Nephrocare Bielefeld GmbH Bielefeld, Germany Nephrocare Buchholz GmbH Buchholz, Germany Nephrocare Daun GmbH Daun, Germany Nephrocare Deutschland GmbH Bad Homburg v. d. Höhe, Germany Nephrocare Döbeln GmbH Döbeln, Germany Nephrocare Dortmund, GmbH Dortmund, Germany Nephrocare Friedberg GmbH Friedberg, Germany Nephrocare Grevenbroich GmbH Grevenbroich, Germany Nephrocare Hagen GmbH Hagen, Germany Nephrocare Hamburg-Altona GmbH Hamburg, Germany Nephrocare Hamburg-Barmbek GmbH Hamburg, Germany Nephrocare Hamburg-Süderelbe GmbH Hamburg, Germany Nephrocare Ingolstadt GmbH Ingolstadt, Germany Nephrocare Kaufering GmbH Kaufering, Germany Nephrocare Krefeld GmbH Krefeld, Germany Nephrocare Lahr GmbH Lahr, Germany Nephrocare Leverkusen GmbH Leverkusen, Germany Nephrocare Ludwigshafen GmbH Ludwigshafen am Rhein, Germany Nephrocare Mannheim GmbH Mannheim, Germany Nephrocare Mönchengladbach GmbH Mönchengladbach, Germany Nephrocare Mühlhausen GmbH Mühlhausen, Germany Nephrocare München-Ost GmbH Munich, Germany Nephrocare Münster GmbH Münster, Germany Nephrocare MVZ Aalen GmbH Aalen, Germany Nephrocare Oberhausen GmbH Oberhausen, Germany Nephrocare Papenburg GmbH Papenburg, Germany Nephrocare Pirmasens GmbH Pirmasens, Germany Nephrocare Püttlingen GmbH Püttlingen, Germany Nephrocare Recklinghausen GmbH Recklinghausen, Germany Nephrocare Rostock GmbH Rostock, Germany Nephrocare Salzgitter GmbH Salzgitter, Germany Nephrocare Schrobenhausen GmbH Schrobenhausen, Germany Nephrocare Starnberg GmbH Starnberg, Germany Nephrocare Wetzlar GmbH Wetzlar, Germany Nephrocare Witten GmbH Witten, Germany Nephrologisch-Internistische Versorgung Ingolstadt GmbH Ingolstadt, Germany Nova Med GmbH Vertriebsgesellschaft für medizinischtechnische Geräte und Verbrauchsartikel Bad Homburg v. d. Höhe, Germany VIVONIC GmbH Sailauf, Germany Zentrum für Nieren- und Hochdruckkrankheiten Bensheim GmbH Bensheim, Germany b) Cash and cash equivalents Cash and cash equivalents comprise cash funds and all short-term investments (recorded at nominal value) with original maturities of up to three months. Short-term investments are highly liquid and readily convertible into known amounts of cash. The risk of changes in value is insignificant. c) Trade accounts and other receivables from unrelated parties Trade accounts and other receivables from unrelated parties are posted at fair value (nominal value less expected credit loss). For information regarding expected credit losses, see note 2 c). d) Inventories Inventories are stated at the lower of cost (determined by using the average or first-in, first-out method) or net realizable value (see note 8). Costs included in inventories are based on invoiced costs and/or production costs as applicable. Included in production costs are material, direct labor and production overhead, including depreciation charges. e) Property, plant and equipment Property, plant, and equipment are stated at cost less accumulated depreciation (see note 10). Maintenance and repair costs (day-to-day servicing) are expensed as incurred. The Company recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing parts and major inspections if it is probable that the future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. Depreciation on property, plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets ranging from 4 to 50 years for buildings and improvements with a weighted average life of 14 years and 3 to 19 years for machinery and equipment with a weighted average life of 11 years. Internal use platform software that is integral to the computer equipment it supports is included in property, plant and equipment. In fiscal years until December 31, 2018, prior to the implementation of IFRS 16, property, plant and equipment under capital leases was stated at the present value of future minimum lease payments at the inception of the lease, less accumulated depreciation. Equipment held under capital leases and leasehold improvements was amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. f) Leases A lease is defined as a contract that conveys the right to use an underlying asset for a period of time in exchange for consideration. According to IFRS 16, a contract is or contains a lease if: · the underlying asset is identified in the contract, and · the customer has both the right to direct the identified asset’s use and to obtain substantially all the economic benefits from that use. Under IFRS 16, the Company is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments for almost all leases. The Company applies both the short-term and low-value lease exemption. These leases are exempt from balance sheet recognition and lease payments will be recognized as expenses over the lease term. IFRS 16 is not applied to leases of intangible assets. Lease liabilities Lease liabilities are initially recognized at the present value of the following payments: · fixed lease payments (including in-substance fixed payments), less any lease incentives receivable, · variable lease payments (linked to an index or interest rate), · expected payments under residual value guarantees, · the exercise price of purchase options, where exercise is reasonably certain, · lease payments in optional renewal periods, where exercise of extension options is reasonably certain, and · penalty payments for the termination of a lease, if the lease term reflects the exercise of the respective termination option. Lease payments are discounted using the implicit interest rate underlying the lease if this rate can be readily determined. Otherwise, the incremental borrowing rate of the lessee is used as the discount rate. Lease liabilities are subsequently measured at amortized cost using the effective interest method. Furthermore, lease liabilities may be remeasured due to lease modifications or reassessments of the lease. A lease modification is any change in lease terms that was not part of the initial terms and conditions of the lease, including increases of the scope of the lease by adding the right to use one or more underlying assets or extending the contractual lease term, decreases of the scope of the lease by removing the right to use one or more underlying assets or shortening the contractual lease term or changes in the consideration. Reassessments are changes in estimates or changes triggered by a clause that was part of the initial lease contract, including changes in future lease payments arising from a change in an index or rate, change in the Company's estimate of the amount expected to be payable under residual value guarantees or change in the Company’s assessment of whether it will exercise purchase, extension or termination options. A lease modification is accounted for as a separate lease if the modification increases the scope of the lease by adding the right to use one or more underlying assets and the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope. Where a lease modification is accounted for as a separate lease, the respective new lease is recognized at the effective date of the modification based on the illustrated recognition and valuation principles with the initial lease remaining unchanged. Where a lease modification is not accounted for as a separate lease, the initial lease is remeasured. For most reassessments and lease modifications that are not accounted for as a separate lease, lease liabilities are remeasured by discounting the revised lease payments at a revised discount rate. For specific reassessments, the historical interest rate is used. The revised discount rate is determined at the effective date of the lease modification or the reassessment. When lease liabilities are remeasured in this way, a corresponding remeasurement is made to the carrying amount of the right-of-use asset. Where a lease modification results in a decrease of the scope of the lease, any gain or loss is recognized in profit or loss to reflect the respective partial or full termination of the lease. For lease contracts that include both lease and non-lease components that are not separable from lease components, no allocation is performed. Each lease component and any associated non-lease components are accounted for as a single lease. Right-of-use assets The Company recognizes right-of-use asset at the commencement date of the respective lease. Right-of-use asset are stated at cost less accumulated depreciation. Upon initial recognition, cost comprises of: · the initial lease liability amount, · initial direct costs incurred when entering into the lease, · (lease) payments before commencement date of the respective lease, and · an estimate of costs to dismantle and remove the underlying asset, · less any lease incentives received. Right-of-use assets are depreciated over the shorter of the lease term or the useful life of the underlying asset using the straight-line method. Where a lease agreement includes a transfer of ownership at the end of the lease term or the exercise of a purchase option is deemed reasonably certain, right-of-use assets are depreciated over the useful life of the underlying asset using the straight-line method. In addition, right-of-use assets are reduced by impairment losses, if any, and adjusted for certain remeasurements. For reassessments and lease modifications that are not accounted for as separate leases, a remeasurement corresponding to the respective remeasurement of the lease liability is recognized (for lease modifications and reassessments, as well as for partial or full termination of a lease please see guidance on “Lease liabilities” above). If the carrying amount of a right-of-use asset is reduced to zero by such remeasurements, the excess amount is recorded in profit or loss. Right-of-use assets are classified into right-of-use assets relating to land, buildings and improvements or machinery and equipment. In addition, prepayments on right-of-use assets are presented separately (see note 21). g) Intangible assets and goodwill Intangible assets such as non-compete agreements, technology, distribution rights, patents, licenses to treat, licenses to manufacture, distribute and sell pharmaceutical drugs, exclusive contracts and exclusive licenses, trade names, management contracts, application software, acute care agreements and customer relationships are recognized and reported apart from goodwill (see note 11). Patient relationships, however, are not reported as separate intangible assets due to the missing contractual basis but are part of goodwill. Goodwill and identifiable intangibles with indefinite useful lives are not amortized but tested for impairment annually or when an event becomes known that could trigger an impairment. The Company identified certain trade names and qualified management contracts as intangible assets with indefinite useful lives because there is no foreseeable limit to the period over which those assets are expected to generate net cash inflows for the Company. Intangible assets with finite useful lives are amortized over their respective useful lives to their residual values. The Company amortizes non-compete agreements over their useful lives which, on average, are 8 years. Technology is amortized over its average useful lives of 12 years. Internally developed intangibles are amortized on a straight-line basis over their average useful lives of 8 years. Licenses to manufacture, distribute and sell pharmaceutical drugs, exclusive contracts and exclusive licenses are amortized over their useful lives which on average is 13 years. Customer relationships are amortized over their average useful lives of 16 years. All other intangible assets are amortized over their weighted average useful lives of 8 years. The weighted average useful life of all amortizable intangible assets is 10 years. Intangible assets with finite useful lives are evaluated for impairment when events have occurred that may give rise to an impairment (see note 1 o). To perform the annual impairment test of goodwill, the Company identified its groups of cash generating units (“CGU”s) and determined their carrying value by assigning the operating assets and liabilities, including the existing goodwill and intangible assets, to those groups of CGUs. Groups of CGUs reflect the lowest level on which goodwill is monitored for internal management purposes. One group of CGUs was identified in each of the Company's operating segments. For the purpose of goodwill impairment testing, all corporate assets and liabilities are allocated to the groups of CGUs. At least once a year, the Company compares the recoverable amount of each group of CGUs to the group of CGUs’ carrying amount. The recoverable amount is defined as the higher of the value in use or the fair value less cost of disposal of a group of CGUs. In a first step, the value in use of the group of CGUs is determined using a discounted cash flow approach based upon the cash flow expected to be generated by the group of CGUs. In case that the value in use of the group of CGUs is less than its carrying amount and the fair value less cost of disposal is not estimated to be higher than the value in use, the difference is recorded as an impairment of the carrying amount of the goodwill. To evaluate the recoverability of intangible assets with indefinite useful lives, the Company compares the fair values of intangible assets with their carrying values. An intangible asset’s fair value is determined using a discounted cash flow approach or other methods, if appropriate. For further information see note 2 a). h) Financial instruments The Company classifies its financial instruments in accordance with IFRS 9 in the following measurement categories: at amortized cost, at fair value through profit and loss (“FVPL”) and at fair value through other comprehensive income (“FVOCI”). Financial assets are classified depending on the business model in which the financial assets are held and the contractual terms of the cash flows. Financial assets are only reclassified when the business model for managing those assets changes. During the reporting period, no financial instruments were reclassified. Purchases and sales of financial assets are accounted for on the trading day. The Company does not make use of the fair value option, which allows financial instruments to be classified at FVPL upon initial recognition. At initial recognition financial assets and financial liabilities are measured at fair value. Subsequent measurement is either at cost, FVPL or FVOCI. In general, financial liabilities are classified and subsequently measured at amortized cost, with the exception of contingent considerations resulting from a business combination, put option liabilities as well as derivative financial liabilities. Investments in equity instruments are recognized and subsequently measured at fair value. The Company’s equity investments are not held for trading. In general, changes in the fair value of equity investments are recognized in the income statement. However, at initial recognition the Company elected, on an instrument-by-instrument basis, to represent subsequent changes in the fair value of individual strategic equity investments in other comprehensive income (loss) (“OCI”). The Company invested in several debt securities, with the objective to achieve both collecting contractual cash flows and selling the financial assets. All debt securities are consequently measured at fair value. Some of these securities give rise on specified dates to cash flows that are solely payments of principle and interest. These securities are subsequently measured at FVOCI. Other securities are measured at FVPL. The Company, as option writer of existing put options, can be obligated to purchase the noncontrolling interests held by third parties. The obligations are in the form of put liabilities and are exercisable a |
Significant judgments and sourc
Significant judgments and sources of estimation uncertainties | 12 Months Ended |
Dec. 31, 2020 | |
Significant judgments and sources of estimation uncertainties | |
Significant judgments and sources of estimation uncertainties | 2. Significant judgments and sources of estimation uncertainties The Company’s reported results of operations, financial position and net assets are sensitive to significant judgments, assumptions and estimates that are the basis for its financial statements. The critical accounting policies, the judgments made in the creation and application of these policies and the sensitivities of reported results to changes in accounting policies, significant judgments and estimates are factors to be considered along with the Company’s financial statements. In the opinion of the Management of the Company, the following accounting policies, significant judgments and sources of estimation uncertainties are critical for the consolidated financial statements in the present economic environment. a) Recoverability of goodwill and intangible assets The growth of the business through acquisitions has created a significant amount of intangible assets, including goodwill, trade names, management contracts, non-compete agreements, technology and customer relationships as well as licenses and distribution agreements. In addition, the Company recognizes internally developed intangible assets related to research and development and software development projects. At December 31, 2020, the carrying amount of goodwill and non-amortizable intangible assets amounted to €13,168,605 (€14,247,709 at December 31, 2019) representing approximately 42% and 43% of the Company’s total assets at December 31, 2020 and 2019, respectively. In accordance with IAS 36, the Company performs an impairment test of goodwill and non-amortizable intangible assets at least once a year for each group of CGUs or more frequently if the Company becomes aware of events that occur or if circumstances change that would indicate the carrying value may not be recoverable (see also note 1 g). To comply with IFRS to determine possible impairments of these assets, the value in use of the group of CGUs is first compared to the group of CGUs’ carrying amount. In cases where the value in use of the group of CGUs is less than its carrying amount and the fair value less cost of disposal is not estimated to be higher than the value in use, the difference is recorded as an impairment of the carrying amount of the group of CGUs. The value in use of each group of CGUs is determined using estimated future cash flows for the unit discounted by a pre-tax discount rate (‘‘WACC’’) specific to that group of CGUs. The Company’s WACC consists of a basic rate adjusted by a weighted average country risk rate and, if appropriate, by a factor to reflect higher risks associated with the cash flows from recent material acquisitions within each group of CGUs, until they are appropriately integrated. Estimating the future cash flows involves significant assumptions, especially regarding future reimbursement rates and sales prices, number of treatments, sales volumes and costs. The key assumptions represent management’s assessment of future trends and have been based on historical data from both external and internal sources. In determining discounted cash flows, the Company utilizes for every group of CGUs its three-year budget, projections for years four to ten and a representative growth rate for all remaining years. Projections for up to ten years are possible due to the non-discretionary nature of the health care services the Company provides, the need for health care products utilized to provide such services and the availability of government reimbursement for a substantial portion of its services. The following table shows the key assumptions of value-in-use calculations: Key assumptions in % North America (1) EMEA Asia-Pacific (1) Latin America 2020 2019 2020 2019 2020 2019 2020 2019 Average revenue growth in ten year projection period mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit high-single-digit mid-single-digit mid-single-digit Residual value growth 1.00 1.00 1.00 1.00 4.00 4.00 1.60 2.95 Pre-tax WACC 6.42 7.71 8.64 8.73 6.40 6.79 13.29 - 24.28 10.45 - 20.02 After-tax WACC 5.08 6.00 6.21 6.25 5.65 6.04 9.14 - 20.13 8.06 - 17.63 (1) There are no reasonably possible changes in assumptions that would lead to an impairment in these groups of CGUs. An overview of the carrying amounts of goodwill and intangibles with indefinite useful life for each group of CGUs is shown in note 11. To evaluate the recoverability of intangible assets with indefinite useful lives, the Company compares the recoverable amount of intangible assets with their carrying values and an intangible asset’s recoverable amount is determined using a discounted cash flow approach or other methods, if appropriate. A prolonged downturn in the health care industry with lower than expected increases in reimbursement rates and/or higher than expected costs for providing health care services and for procuring and selling health care products or a significant increase of mortality of patients with chronic kidney diseases which may be attributable to COVID-19 could adversely affect the Company’s estimated future cash flows. Future adverse changes in a cash-generating unit’s economic environment of a group of CGUs could affect the country specific risk rate and therefore the discount rate. Equally an increase of the general interest rate level could affect the base rate and therefore the discount rate. A decrease in the estimated future cash flows and/or a decline in the cash-generating units economic environment could result in impairment charges to goodwill and other intangible assets with indefinite useful life which could materially and adversely affect the Company’s future financial position and operating results. In 2020, as a result of the annual impairment test of goodwill, the Latin America group of CGUs recognized an impairment of goodwill in the amount of €193,978 and trade names in the amount of €490 to reduce the carrying amount of goodwill and trade names (“Impairment Loss”). The impairment was driven by a macro-economic downturn and increasing risk adjustment rates for certain countries in Latin America. Additionally, the recoverable amount of the EMEA group of CGUs exceeds the carrying amount by €492,736. The following table shows the reasonable amounts by which the key assumptions would need to change individually that the recoverable amount equals the carrying amount: Sensitivity analysis Change in percentage points EMEA 2020 2019 Pre-tax WACC 0.91 3.19 After-tax WACC 0.64 2.15 Operating income margin of each projection year (1.16) (3.71) b) Legal contingencies From time to time, during the ordinary course of operations as well as due to acquisitions, the Company is party to litigation and arbitration and is subject to investigations relating to various aspects of its business (see note 22). The Company regularly analyzes current information about such claims for probable losses and provides accruals for such matters, including the estimated legal expenses and consulting services in connection with these matters, as appropriate. The Company utilizes its internal legal department as well as external resources for these assessments. In making the decision regarding the need for loss accrual, the Company considers the degree of probability of an unfavorable outcome and its ability to make a reasonable estimate of the amount of loss. The filing of a suit or formal assertion of a claim or assessment, or the disclosure of any such suit or assertion, does not necessarily indicate that accrual of a loss is appropriate. The outcome of these matters may have a material adverse effect on the results of operations, financial position and net assets of the Company. c) Trade accounts and other receivables from unrelated parties and expected credit losses Trade accounts and other receivables from unrelated parties are a substantial asset of the Company and the expected credit losses are based upon a significant estimate made by management. Trade accounts and other receivables from unrelated parties were €3,153,045 and €3,421,346 at December 31, 2020 and 2019, respectively, net of expected credit losses of €142,372 at December 31, 2020 and €141,358 at December 31, 2019. The Company sells health care products directly or through distributors in around 150 countries and provides health care services in around 50 countries. Most payors are government institutions or government-sponsored programs with significant variations between the countries and even between payors within one country in local payment and collection practices. Receivables resulting from health care services are recognized and billed at amounts estimated to be collectable under government reimbursement programs and reimbursement arrangements with third party payors. U.S. Medicare and Medicaid government programs are billed at pre-determined net realizable rates per treatment that are established by statute or regulation. Revenues for non-governmental payors with which the Company has contracts or letters of agreement in place are recognized at the prevailing contract rates. The remaining non-governmental payors are billed at the Company’s standard rates for services and, in the Company’s North America Segment, a contractual adjustment is recorded to recognize revenues based on historic reimbursement. The contractual adjustment and the expected credit losses are reviewed quarterly for their adequacy. No material changes in estimates were recorded for the contractual allowance in the periods presented. The collectability of receivables is reviewed locally on a regular basis, generally monthly. For further information, see note 1 k). In the Company’s North America Segment operations, the collection process is usually initiated shortly after service is provided or upon the expiration of the time provided by contract. For Medicare and Medicaid, once the services are approved for payment, the collection process begins upon the expiration of a period of time based upon experience with Medicare and Medicaid. In all cases where co-payment is required the collection process usually begins within 30 days after service has been provided. In those cases where claims are approved for amounts less than anticipated or if claims are denied, the collection process usually begins upon notice of approval of the lesser amounts or upon denial of the claim. The collection process can be confined to internal efforts, including the accounting and sales staffs and, where appropriate, local management staff. If appropriate, external collection agencies may be engaged. Public health institutions in a number of countries outside the U.S. require a significant amount of time until payment is made because a substantial number of payors are government entities whose payments are often determined by local laws and regulations and budget constraints. Depending on local facts and circumstances, the period of time to collect can be quite lengthy. In those instances where there are commercial payors, the same type of collection process is initiated as in the North America Segment. Due to the number of subsidiaries and different countries that the Company operates in, the Company’s policy of determining when an individual expected credit loss is required considers the appropriate individual local facts and circumstances that apply to an account. While payment and collection practices vary significantly between countries and even agencies within one country, government payors usually represent low to moderate credit risks. It is the Company’s policy to determine when receivables should be classified as bad debt on a local basis taking into account local payment practices and local collection experience. An individual expected credit loss is calculated locally if specific circumstances indicate that amounts will not be collectible. Receivables where the expected credit losses are not assessed individually are grouped based on geographical regions and the impairment is assessed based on macroeconomic indicators such as credit default swaps. For more information regarding the impairment on trade accounts and other receivables from unrelated parties please refer to note 1 i). When all efforts to collect a receivable, including the use of outside sources where required and allowed, have been exhausted, and after appropriate management review, a receivable deemed to be uncollectible is considered a bad debt and written off. Write offs are taken on a claim-by-claim basis. Due to the fact that a large portion of its reimbursement is provided by public health care organizations and private insurers, the Company expects that most of its accounts receivables will be collectible, albeit potentially more slowly outside the North America Segment. A significant change in the Company’s collection experience, deterioration in the aging of receivables and collection difficulties could require that the Company increases its estimate of the expected credit losses. Any such additional bad debt charges could materially and adversely affect the Company’s future operating results. If, in addition to the Company’s existing expected credit losses, 1% of the gross amount of the Company’s trade accounts and other receivables from unrelated parties as of December 31, 2020 were uncollectible through either a change in the Company’s estimated contractual adjustment or revised estimate of the collectability, the Company’s operating income for 2020 would have been reduced by approximately 1.4%. The following table shows the portion of major debtors or debtor groups of trade accounts and other receivables from unrelated parties as of December 31, 2020 and 2019. Other than U.S. Medicare and Medicaid, no single debtor accounted for more than 5% of total trade accounts and other receivables from unrelated parties in any of these years. Composition of trade accounts and other receivables from unrelated parties December 31, 2020 2019 U.S. Government health care programs 30 % 30 % U.S. commercial payors 14 % 15 % U.S. hospitals 5 % 4 % Self-pay of U.S. patients 3 % 2 % Other North America Segment payors 2 % 4 % Product customers and health care payors outside the North America Segment 46 % 45 % Total 100 % 100 % d) Self-insurance programs Under the Company’s insurance programs for professional, product and general liability, auto liability, worker’s compensation and medical malpractice claims, the Company’s largest subsidiary which is located in the U.S. is partially self-insured for professional liability claims. For all other coverages, the Company assumes responsibility for incurred claims up to predetermined amounts above which third party insurance applies. Reported liabilities for the year represent estimated future payments of the anticipated expense for claims incurred (both reported and incurred but not reported) based on historical experience and existing claim activity. This experience includes both the rate of claims incidence (number) and claim severity (cost) and is combined with individual claim expectations to estimate the reported amounts. e) Level 3 financial instruments Put option liabilities, variable payments outstanding for acquisitions and equity investments are recognized at their fair value. Each put option contract contains specific clauses related to the terms of exercisability, which require significant judgment in order to determine appropriate liability recognition and classification. For further information related to the significant judgments and estimates related to these instruments and their fair values, see notes 1 h) and 23. f) Income taxes The Company is subject to ongoing and future tax audits in the U.S., Germany and other jurisdictions. Different interpretations of tax laws may lead to potential additional tax payments or tax refunds for prior years. To consider income tax provisions or income tax receivables of uncertain tax assessments management’s estimations are based on local tax rules of the respective tax jurisdiction and the interpretation of such. Estimates are revised in the period in which there is sufficient evidence to revise the assumption. For further information to estimates related to the recoverability of deferred taxes, see notes 1 n) and 4 h). g) Business combinations The Company measures the noncontrolling interest in an acquisition at fair value and classifies costs related to its business combinations within general and administrative expense. In determining whether an intangible asset related to a business combination is identifiable and should be separated from goodwill, significant judgment is required. Additionally, estimation of the acquisition-date fair values of identifiable assets acquired and liabilities assumed also involves significant judgment. The applicable measurements and inputs used in this estimation (including revenue growth rates, gross profit margin adjusted for synergy assumptions associated with manufacturing savings and the discount rate) are based upon information available at the acquisition date using expectations and assumptions that management deems reasonable. Such judgments, estimates and assumptions could materially affect the Company’s business, results of operations and financial condition, primarily due to: · Fair values assigned to assets subject to depreciation and amortization directly impact the depreciation and amortization recorded in the Company’s consolidated statements of income in periods subsequent to a related acquisition. · Any subsequent measurement resulting in a decrease in the estimated fair values of assets acquired may result in impairment. · Subsequent changes resulting in an increase or decrease to the estimated fair values of liabilities assumed may result in additional expense or income, respectively. For further information on business combinations, see note 3. |
Acquisitions, investments purch
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities | |
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities | 3. Acquisitions, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities The Company completed acquisitions, investments (including debt securities) and the purchase of intangible assets in the amount of €406,644, €2,297,173 and €956,803 in 2020, 2019 and 2018, respectively. In 2020, €355,386 was paid in cash and €51,258 were assumed obligations and non-cash consideration. In 2019, €2,232,671 was paid in cash and €64,502 were assumed obligations and non-cash consideration. In 2018, €925,267 was paid in cash and €31,536 were assumed obligations and non-cash consideration. Acquisitions The Company made acquisitions of €265,612, €2,224,599 and €280,643 in 2020, 2019 and 2018, respectively in order to expand the scope of its services and to increase its market shares in the respective countries. In 2020, €214,836 was paid in cash and €50,776 were assumed obligations and non-cash consideration. In 2019, €2,160,097 was paid in cash and €64,502 were assumed obligations and non-cash consideration. In 2018, €249,965 was paid in cash and €30,678 were assumed obligations and non-cash consideration. The Company’s acquisition spending was driven primarily by the purchase of dialysis clinics in the normal course of its operations in 2020, 2019 and 2018 as well as the acquisition of NxStage Medical, Inc. (“NxStage”) in 2019. Impacts on consolidated financial statements from acquisitions The assets and liabilities of all acquisitions were recorded at their estimated fair value at the date of the acquisition and are included in the Company’s financial statements and operating results from the effective date of acquisition. The measurement period adjustments from the previous year’s acquisitions did not have a significant impact on the consolidated financial statements in 2020. The excess of the total acquisition costs over the fair value of the net assets acquired resulted in goodwill of €258,544 and €1,607,559 at December 31, 2020 and 2019, respectively. The purchase price allocations for all collectively and individually non-material acquisitions for 2020 are not yet finalized. The Company is in the process of obtaining and evaluating the information necessary for the purchase price allocations, primarily related to property, plant and equipment, intangible assets, accounts receivable and other liabilities. In 2020, based on preliminary purchase price allocations, the Company recorded €258,544 of goodwill and €19,507 of intangible assets, which represent the share of both controlling and noncontrolling interests. Goodwill arose principally due to the fair value of the established streams of future cash flows for these acquisitions. Business combinations during 2020 increased the Company’s net income (net income attributable to shareholders of FMC-AG & Co. KGaA) by €2,749, excluding the costs of the acquisitions, and revenue increased by €62,072. Total assets increased €337,300 due to business combinations. Acquisition of NxStage Medical, Inc. On February 21, 2019, the Company acquired all of the outstanding shares of NxStage for $30.00 (€26.42) per common share. The total acquisition value of this business combination, net of cash acquired, was $1,976,235 (€1,740,563 at date of closing). NxStage is a medical technology company that develops, produces and markets an innovative product portfolio of medical devices for use in home dialysis and in the critical care setting. This acquisition was part of the Company’s stated strategy to expand and complement its existing business through acquisitions. Generally, these acquisitions do not change the Company’s business model and can be integrated without disruption to its existing business, requiring little or no realignment of its structures. The NxStage acquisition was consistent in this regard as it supplemented the Company’s existing business. The following table summarizes the fair values, as of the date of acquisition based upon information available, as of December 31, 2019, of assets acquired and liabilities assumed at the date of the acquisition: Fair Values of Assets Acquired and Liabilities Assumed in $ THOUS in € THOUS Cash and cash equivalents 47,203 41,574 Trade accounts and other receivables from unrelated parties 34,062 30,000 Inventories 63,735 56,134 Other current assets 15,819 13,933 Property, plant and equipment 104,533 92,067 Right-of-use assets 21,603 19,027 Intangible assets and other assets 761,734 670,895 Goodwill 1,201,613 1,058,317 Accounts payable to unrelated parties, current provisions and other current liabilities (72,429) (63,792) Deferred taxes (100,485) (88,502) Lease liabilities from unrelated parties (22,065) (19,434) Other liabilities (27,822) (24,504) Noncontrolling interests (4,063) (3,578) Total acquisition cost 2,023,438 1,782,137 Less: Cash acquired (47,203) (41,574) Net Cash paid 1,976,235 1,740,563 As of the acquisition date amortizable intangible assets (primarily technology in the amount of $660,300 (€581,557) acquired in this acquisition have weighted average useful lives of 13 years. Goodwill in the amount of $1,201,613 (€1,058,317) was acquired as part of the NxStage acquisition and is allocated to the North America Segment. NxStage’s results have been included in the Company’s consolidated statement of income since February 21, 2019. Specifically, NxStage has contributed revenue and an operating loss in the amount of $294,281 (€262,875) and $31,145 (€27,821) respectively, to the Company’s consolidated operating income in 2019. This operating loss amount does not include synergies which may have resulted at consolidated entities outside NxStage since the acquisition closed. Pro forma financial information The following financial information, on a pro forma basis, reflects the consolidated results of operations for the twelve months ended December 31, 2019 as if the NxStage acquisition had been consummated on January 1, 2019 and excludes related transaction costs. The pro-forma financial information is not necessarily indicative of the results of operations as it would have been had the transactions been consummated on January 1, 2019. Pro forma financial Information in € THOUS, except per share data 2019 Pro forma revenue 17,521,432 Pro forma net income attributable to shareholders of FMC-AG & Co. KGaA 1,186,516 Basic earnings per share 3.92 Diluted earnings per share 3.92 Investments (including debt securities) and purchases of intangible assets Investments (including debt securities) and purchases of intangible assets were €141,032, €72,574 and €676,160 in 2020, 2019 and 2018, respectively. These amounts were primarily driven by investments in debt securities in 2020, investments in debt securities as well as equity investments in 2019 as well as investments in debt securities and an equity investment in Humacyte, Inc. ("Humacyte") in 2018. Of this amount €140,550, €72,574 and €675,302 were paid in cash in 2020, 2019 and 2018, respectively. Divestitures and sale of debt securities Proceeds from divestitures and sale of debt securities were €77,509, €79,427 and €1,683,292 in 2020, 2019 and 2018, respectively. These amounts mainly related to the divestment of debt securities and certain research & development investments in 2020, divestment of MedSpring Urgent Care Centers in Texas, a California based cardiovascular business, sales of debt securities as well as B.Braun Medical Inc.’s purchase of NxStage’s bloodlines business in connection with our acquisition of NxStage in 2019, the divestiture of the controlling interest in Sound (see notes 4 c) and 25) as well as divestitures of debt securities in 2018. In 2020, €56,849 was received in cash and €20,660 were non-cash components. In 2019, €59,940 was received in cash and €19,487 were non-cash components. In 2018, €1,682,975 was received in cash and €317 were non-cash components. |
Notes to the consolidated state
Notes to the consolidated statements of income | 12 Months Ended |
Dec. 31, 2020 | |
Notes to the consolidated statements of income | |
Notes to the consolidated statements of income | 4. Notes to the consolidated statements of income a) Revenue The Company has recognized the following revenue in the consolidated statement of income for the year ended December 31, 2020, 2019 and 2018: Revenue in € THOUS 2020 2019 2018 Revenue from Revenue from Revenue from contracts with Other contracts with Other contracts with Other customers revenue Total customers revenue Total customers revenue Total Health care services Dialysis services 12,558,644 — 12,558,644 12,447,092 — 12,447,092 11,420,415 — 11,420,415 Care Coordination 1,251,945 303,810 1,555,755 1,176,227 248,900 1,425,127 1,622,862 221,012 1,843,874 13,810,589 303,810 14,114,399 13,623,319 248,900 13,872,219 13,043,277 221,012 13,264,289 Health care products Dialysis products 3,538,605 104,669 3,643,274 3,402,987 125,519 3,528,506 3,115,753 93,068 3,208,821 Non-dialysis products 101,390 — 101,390 75,830 — 75,830 73,763 — 73,763 3,639,995 104,669 3,744,664 3,478,817 125,519 3,604,336 3,189,516 93,068 3,282,584 Total 17,450,584 408,479 17,859,063 17,102,136 374,419 17,476,555 16,232,793 314,080 16,546,873 For further information on the revenue attributable to our operating segments, see note 26. The Company has recognized the following amounts as receivables and contract liabilities relating to contracts with customers for the years ended December 31, 2020 and 2019: Trade accounts receivables from unrelated parties and contract liabilities in € THOUS 2020 2019 Trade accounts receivables from unrelated parties 3,084,311 3,341,111 Contract liabilities 876,051 22,802 Impairment losses in the amount of €27,541, €41,982 and €16,981 for the years ended December 31, 2020, 2019 and 2018, respectively, relate to receivables arising from contracts with customers. The change in the contract liabilities balance during the period results primarily from advance payments received under the CMS Accelerated and Advance Payment program which are recorded as contract liabilities upon receipt and recognized as revenue when the respective services are provided. Contract liabilities also relate to advance payments from customers and to sales of dialysis machines where revenue is recognized upon installation and provision of the necessary technical instructions whereas a receivable is recognized once the machine is billed to the customer. Contract liabilities are shown in the consolidated balance sheet in line items “Current provisions and other current liabilities” and “Non-current provisions and other non-current liabilities”. At December 31, 2020, revenue recognized that was included in the contract liabilities balance at the beginning of the period was €17,790 (2019: €12,608). At December 31, 2020, performance obligations of €1,916,558 (2019: €1,160,077 and 2018: €1,157,314) are unsatisfied (or partially unsatisfied). Expected recognition of the transaction price allocated to unsatisfied performance obligations as revenue for the next five years and in the aggregate for the five years thereafter are as follows: Unsatisfied performance obligations in € THOUS 1 year 856,206 1 - 3 years 683,293 3 - 5 years 272,549 5 - 10 years 104,510 Total 1,916,558 b) Selling, general and administrative expenses Selling, general and administrative expenses are generated in the administrative, logistic and selling functions which are not attributable to production or research and development. Furthermore, general and administrative expenses included realized and unrealized foreign exchange gains and losses. In addition, in 2020 c) (Gain) loss related to divestitures of Care Coordination activities On June 28, 2018, the Company divested its controlling interest in Sound to an investment consortium led by Summit Partners, L.P. The total transaction proceeds were $1,770,516 (€1,531,109), net of related tax payments. The pre-tax gain related to divestitures for Care Coordination activities for the year ended December 31, 2018 was €809,003, which primarily related to this divestiture, the effect of the six month impact from the increase in valuation of Sound’s share based payment program, incentive compensation expense and other costs caused by the divestment of Sound. Sound was included in Care Coordination within the North America Segment. d) Research and development expenses Research and development expenses of €193,774 (2019: €168,028 and 2018: €114,074) included research and non-capitalizable development costs as well as depreciation and amortization expenses related to capitalized development costs of €5,024 (2019: €3,052 and 2018: €341). e) Cost of materials The cost of materials for the year ended December 31, 2020, 2019 and 2018 consisted of the following: Cost of materials in € THOUS 2020 2019 2018 Cost of raw materials, supplies and purchased components 3,959,216 4,031,371 3,395,895 Cost of purchased services 261,805 258,959 233,638 Cost of materials 4,221,021 4,290,330 3,629,533 f) Personnel expenses Included within costs of revenue, selling, general and administrative expenses and research and development expenses are personnel expenses in the amount of €7,067,407, €6,799,358 and €6,439,653 for the year ended December 31, 2020, 2019 and 2018, respectively. Personnel expenses consisted of the following: Personnel expenses in € THOUS 2020 2019 2018 Wages and salaries 5,753,795 5,448,662 5,025,128 Social security contributions and cost of retirement benefits and social assistance 1,313,612 1,350,696 1,414,525 thereof retirement benefits 181,347 174,009 156,581 Personnel expenses 7,067,407 6,799,358 6,439,653 The Company employed the following personnel on a full-time equivalents basis, on average, for the following years: Employees by function 2020 2019 2018 Production and Services 106,797 103,896 97,971 Administration 12,525 11,634 10,510 Sales and Marketing 3,972 3,253 3,360 Research and Development 1,198 1,050 881 Total employees 124,492 119,833 112,722 g) Net interest Net interest in the amount of €368,019 (2019: €429,444 and 2018: €301,062) included interest expense of €409,978 (2019: €491,061 and 2018: €448,471) and interest income of €41,959 (2019: €61,617 and 2018: €147,409). Interest expense resulted mainly from the Company’s financial liabilities including outstanding bonds, loans and credit facilities (see note 13 and note 14), lease liabilities and lease liabilities from related parties (see note 21) as well as interest expense related to uncertain tax treatments. In 2020, interest income primarily results from interest on overdue receivables , valuation of derivatives and lease receivables. In 2019, interest income primarily results from the valuation of the derivatives embedded in the equity-neutral convertible bonds (“Convertible Bonds”), as well as interest on overdue receivables and lease receivables. In 2018, interest income primarily results from the valuation of the derivatives embedded in the Convertible Bonds, interest on overdue receivables and lease receivables as well as interest related to uncertain tax treatments. h) Income taxes Income before income taxes is attributable to the following geographic locations: Income before income taxes in € THOUS 2020 2019 2018 Germany 160,866 101,734 161,861 United States 1,487,931 1,149,149 2,191,834 Other 287,593 589,231 383,041 Total 1,936,390 1,840,114 2,736,736 Income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 consisted of the following: Income tax expense (benefit) in € THOUS 2020 2019 2018 Current Germany 17,879 (59,928) 45,136 United States 242,062 168,503 261,211 Other 129,512 228,773 115,561 389,453 337,348 421,908 Deferred Germany 27,844 48,313 (34,685) United States 95,444 57,352 145,700 Other (12,183) (41,399) (21,844) 111,105 64,266 89,171 Total 500,558 401,614 511,079 A reconciliation between the expected and actual income tax expense is shown below. The expected corporate income tax expense is computed by applying the German corporation tax rate (including the solidarity surcharge) and the trade tax rate on income before income taxes. The German combined statutory tax rates were 30.21% for the fiscal years ended December 31, 2020 and 2019 and 30.18% for December 31, 2018, respectively. Reconciliation of income taxes in € THOUS 2020 2019 2018 Expected corporate income tax expense 584,983 555,898 825,810 Tax free income (51,231) (65,889) (50,747) Income from equity method investees (28,510) (23,683) (18,185) Tax rate differentials (71,755) (58,386) (106,258) Non-deductible expenses (1) 106,437 44,283 60,721 Taxes for prior years (2,748) (5,454) (91,138) Noncontrolling partnership interests (70,300) (60,724) (61,936) Tax on divestitures — — (74,560) Tax rate changes 4,221 2,743 (219) Change in realizability of deferred tax assets and tax credits 12,627 8,519 3,211 Withholding taxes 4,858 13,083 4,564 Other 11,976 (8,776) 19,816 Income tax expense 500,558 401,614 511,079 Effective tax rate % % 18.7 % (1) Non-deductible tax expenses for the year ended December 31, 2020 included €58,749 related to the Impairment Loss in the Latin America Segment discussed above. The tax effects of the temporary differences and net operating losses that give rise to deferred tax assets and liabilities at December 31, 2020 and 2019, are presented below: Deferred income tax assets and liabilities in € THOUS 2020 2019 Deferred tax assets Trade accounts receivable 16,243 13,392 Inventories 73,087 71,915 Intangible assets 4,817 4,994 Property, plant and equipment and other non-current assets 78,545 72,769 Lease Liabilities 853,352 1,164,620 Provisions and other liabilities 187,406 50,819 Pension liabilities 148,808 135,356 Net operating loss carryforwards, tax credit carryforwards and interest carryforwards 111,861 175,394 Derivatives 11,447 3,027 Compensation expense related to stock options 3,064 3,426 Other 41,598 36,403 Total deferred tax assets 1,530,228 1,732,115 Deferred tax liabilities Trade accounts receivable 38,753 30,310 Inventories 3,066 19,324 Intangible assets 759,146 632,984 Property, plant and equipment and other non-current assets 228,609 165,082 Right-of-use assets 780,321 1,068,409 Provisions and other liabilities 13,204 92,756 Derivatives 1,508 372 Other 140,355 101,384 Total deferred tax liabilities 1,964,962 2,110,621 Net deferred tax liabilities (434,734) (378,506) In the consolidated balance sheets, the accumulated amounts of deferred tax assets and liabilities are shown as follows: Net deferred income tax assets and liabilities in € THOUS 2020 2019 Deferred tax assets 351,152 361,196 Deferred tax liabilities 785,886 739,702 Net deferred tax liabilities (434,734) (378,506) The change in the balance of deferred tax assets and deferred tax liabilities does not equal the deferred tax expense/(benefit). This is due to deferred taxes that are booked directly to equity, the effects of exchange rate changes on tax assets and liabilities denominated in currencies other than euro, the acquisition and disposal of entities as part of ordinary activities and the reclassification of deferred tax assets and liabilities which are presented on the face of the balance sheet as components of other assets and liabilities. The net operating losses included in the table below reflect U.S. federal tax, German corporate income tax, and other tax loss carryforwards in the various countries in which the Company operates, and expire as follows: Net operating loss carryforwards in € THOUS 2021 14,918 2022 10,324 2023 14,163 2024 29,173 2025 46,365 2026 5,840 2027 7,590 2028 5,275 2029 10,585 2030 and thereafter 166,111 Without expiration date 195,637 Total 505,981 Included in the balance of net operating loss carryforwards at December 31, 2020 are €218,710 not expected to be absorbed. Deferred tax assets regarding this portion are not recognized. In assessing the realizability of deferred tax assets, management considers to which extent it is probable that the deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and tax loss carryforwards become deductible. Management considers the expected reversal of deferred tax liabilities and projected future taxable income in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is probable the Company will realize the benefits of these deferred tax assets at December 31, 2020. The Company provides for income taxes and foreign withholding taxes on the cumulative earnings of foreign subsidiaries and foreign subsidiaries in which the Company has ownership of less than 100% that will not be reinvested. At December 31, 2020, the Company provided for €7,353 (2019: €6,645) of deferred tax liabilities associated with earnings that are likely to be distributed in 2021 and the following years. Provision has not been made for additional taxes on €8,747,019 (2019: €8,867,422) undistributed earnings of foreign subsidiaries as these earnings are considered indefinitely reinvested. The earnings could become subject to additional tax if remitted or deemed remitted as dividends; however, calculation of such additional tax is not practicable. These taxes would predominantly comprise foreign withholding tax on dividends of foreign subsidiaries, and German income tax; however, those dividends and capital gains would generally be 95% tax free for German tax purposes. i) Impacts of COVID-19 The Company provides life-sustaining dialysis treatments and other critical healthcare services and products to patients. Its patients need regular and frequent dialysis treatments, or else they face significant health consequences that would result in either hospitalization or death. To be able to continue care for its patients in light of COVID-19, the Company determined that it needed to implement a number of measures, both operational and financial, to maintain an adequate workforce, protect its patients and employees through expanded personal protective equipment protocols and to develop surge capacity for patients suspected or confirmed to have COVID-19. Additionally, the Company experienced a loss of revenue due to the pandemic in certain parts of its business, offset by increased demand for its services and products in other parts. Various governments in regions in which the Company operates have provided economic assistance programs to address the consequences of the pandemic on companies and support healthcare providers and patients. The Company has recorded €251,662 of related reimbursement payments and funding. In addition to the costs incurred which are eligible for government funding in various countries, the Company has been affected by impacts that COVID-19 had on the global economy and financial markets as well as effects related to lockdowns. At the same time the Company incurred lower costs in certain areas, for example for travel. Overall, including COVID-19 reimbursements, the Company concluded that COVID-19 resulted in an immaterial impact to net income attributable to shareholders of FMC-AG & Co. KGaA for the year ended December 31, 2020. The Company received U.S. federal relief funding under the CARES Act in the amount of $284,600 (€249,168 for the year ended December 31, 2020). Additionally, the Company recorded a contract liability for advance payments received under the CMS Accelerated and Advance Payment program within current provisions and other current liabilities and non-current provisions and other non-current liabilities in the amount of €852,437 as of December 31, 2020. For further information regarding government grants, see note 1y). |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Related party transactions | 5. Related party transactions Fresenius SE is the Company’s largest shareholder and owns 32.2% of the Company’s outstanding shares at December 31, 2020. The Else Kröner-Fresenius-Stiftung is the sole shareholder of Fresenius Management SE, the general partner of Fresenius SE, and has sole power to elect the supervisory board of Fresenius Management SE. 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. The Company's 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 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 sells products to Fresenius SE Companies and purchases products from 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. The Company entered into a ten-year agreement with a Fresenius SE Company for the manufacturing of infusion bags. In order to establish the new production line, the Company purchased machinery from the Fresenius SE Company in the amount of €206, €7,183 and €4,497 during the year ended December 31, 2020, 2019 and 2018, respectively. 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, as well as certain exclusive distribution agreements with, Vifor Fresenius Medical Care Renal Pharma Ltd. Under the terms of certain unconditional purchase agreements, the Company is obligated to purchase approximately €302,092 of pharmaceuticals, of which €296,647 is committed at December 31, 2020 for 2021. The terms of these agreements run up to four years. Under the 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's 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 2020 2019 2018 December 31, 2020 December 31, 2019 Sales of Purchases of Sales of Purchases of Sales of Purchases of goods and goods and goods and goods and goods and goods and Accounts Accounts Accounts Accounts services services services services services services receivable payable receivable payable Service agreements (1) Fresenius SE 250 29,174 153 29,114 445 24,456 251 3,655 35 360 Fresenius SE affiliates 4,708 102,323 4,420 105,832 3,819 101,590 824 7,944 2,003 6,416 Equity method investees 19,730 — 49,052 — 58,362 — 74,935 — 68,300 — Total 24,688 131,497 53,625 134,946 62,626 126,046 76,010 11,599 70,338 6,776 Products Fresenius SE — — 3 — — — — — — — Fresenius SE affiliates 41,180 44,164 44,771 37,279 33,564 39,181 10,330 5,732 16,803 3,405 Equity method investees — 474,100 — 469,474 — 399,667 — 57,207 — 36,262 Total 41,180 518,264 44,774 506,753 33,564 438,848 10,330 62,939 16,803 39,667 (1) In addition to the above shown accounts payable, accrued expenses for service agreements with related parties amounted to €5,368 and €8,352 at December 31, 2020 and 2019. 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 leases have maturities up to the end of 2029. Below is a summary resulting from the above described lease agreements with related parties. Lease agreements with related parties in € THOUS 2020 2019 2018 Interest Lease Interest Lease Lease Lease Depreciation expense expense (1) Depreciation expense expense (1) income expense Fresenius SE 7,925 740 2,452 4,580 501 4,005 — 8,745 Fresenius SE affiliates 13,236 1,272 572 12,589 1,396 452 — 15,852 Total 21,161 2,012 3,024 17,169 1,897 4,457 — 24,597 (1) Short-term leases and expenses relating to variable lease payments are exempted from balance sheet recognition . Lease agreements with related parties in € THOUS December 31, 2020 December 31, 2019 Right-of-use Lease Right-of-use Lease asset liability asset liability Fresenius SE 58,073 58,610 30,336 30,820 Fresenius SE affiliates 80,188 81,410 91,879 92,126 Total 138,261 140,020 122,215 122,946 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 December 31, 2020 and December 31, 2019, the Company had accounts receivable from Fresenius SE related to short-term financing in the amount of €1,037 and €71,078, respectively. As of December 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 on August 20, 2021 with an interest rate of 0.825%. 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, 2021 with an interest rate of 1.025%. At December 31, 2019, a subsidiary of Fresenius SE held unsecured bonds issued by the Company in the amount of €1,000. At December 31, 2020, the subsidiary of Fresenius SE held the unsecured bonds issued by the Company in the amount of €1,000. These bonds were issued in 2011 with a coupon of 5.25% and interest payable semiannually until maturity in 2021. For further information on these bonds, see note 14. At December 31, 2020 and December 31, 2019, the Company borrowed from Fresenius SE in the amount of €13,320 at an interest rate of 0.825% and €18,865 on an unsecured basis at an interest rate of 0.930%, respectively. For further information on this loan agreement, see note 13. 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 €33,284, €23,905 and €14,612, respectively, for its management services during 2020, 2019 and 2018 and included an annual fee of €120 as compensation for assuming liability as general partner. The annual fee is set at 4% of the amount of the General Partner's share capital (€3,000 as of December 31, 2020). As of December 31, 2020 and December 31, 2019, the Company had accounts receivable from the General Partner in the amount of €4,061 and €977, respectively. As of December 31, 2020 and December 31, 2019, the Company had accounts payable to the General Partner in the amount of €20,863 and €34,170, respectively. For information regarding compensation of the Management Board and the Supervisory Board of the Company see note 28. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents | |
Cash and cash equivalents | 6. Cash and cash equivalents As of December 31, 2020 and 2019, cash and cash equivalents are as follows: Cash and cash equivalents in € THOUS 2020 2019 Cash 746,851 768,706 Securities and time deposits 334,688 239,017 Cash and cash equivalents 1,081,539 1,007,723 The cash and cash equivalents disclosed in the table above, and respectively in the consolidated statement of cash flows, include at December 31, 2020 an amount of €5,807 (2019: €18,820) from collateral requirements towards an insurance company in North America that are not available for use. For further information on our multi-currency notional pooling cash management system, see note 13. |
Trade accounts and other receiv
Trade accounts and other receivables from unrelated parties | 12 Months Ended |
Dec. 31, 2020 | |
Trade accounts and other receivables from unrelated parties | |
Trade accounts and other receivables from unrelated parties | 7. Trade accounts and other receivables from unrelated parties As of December 31, 2020 and December 31, 2019, trade accounts and other receivables from unrelated parties are as follows: Trade accounts and other receivables from unrelated parties in € THOUS December 31, December 31, 2020 2019 thereof credit- thereof credit- Impaired (1) Impaired (1) Trade accounts and other receivables, gross 3,295,417 376,459 3,562,704 366,497 thereof finance lease receivables 56,484 — 57,398 — less expected credit losses (142,372) (113,430) (141,358) (102,269) Trade accounts and other receivables 3,153,045 263,029 3,421,346 264,228 (1) Trade accounts receivable balances are "credit-impaired" when one or more events have occurred that have a detrimental impact on the estimated future cash flows of the receivable balance (e.g. overdue by more than one year, etc.). The other receivables in the amount of €86,230 include receivables from finance leases, operating leases and insurance contracts (December 31, 2019: €100,613). For further information, see note 1 k. All trade accounts and other receivables from unrelated parties are due within one year. Trade accounts receivables and finance lease receivables with a term of more than one year in the amount of €126,883 (December 31, 2019: €132,144) are included in the balance sheet item "Other non-current assets". The following table shows the development of expected credit losses in the fiscal years 2020, 2019 and 2018: Development of expected credit losses for doubtful accounts from unrelated parties in € THOUS 2020 2019 2018 Expected credit losses as of January 1 141,358 118,015 474,891 Change in valuation allowances as recorded in the consolidated statements of income 28,302 42,315 19,112 Write-offs and recoveries of amounts previously written-off (14,213) (18,587) (378,201) Foreign currency translation (13,075) (385) 2,213 Expected credit losses as of December 31 142,372 141,358 118,015 The following tables show the aging analysis of trade accounts and other receivables from unrelated parties and expected credit losses as of December 31, 2020 and as of December 31, 2019: Aging analysis of trade accounts and other receivables from unrelated parties 2020 in € THOUS up to 3 3 to 6 6 to 12 more than not months months months 12 months overdue overdue overdue overdue overdue Total Trade accounts and other receivables 1,809,658 829,895 195,724 208,653 251,487 3,295,417 less expected credit losses (7,668) (4,204) (3,865) (10,568) (116,067) (142,372) Trade accounts and other receivables, net 1,801,990 825,691 191,859 198,085 135,420 3,153,045 Aging analysis of trade accounts and other receivables from unrelated parties 2019 in € THOUS up to 3 3 to 6 6 to 12 more than not months months months 12 months overdue overdue overdue overdue overdue Total Trade accounts receivable 1,997,671 899,987 229,012 184,768 251,266 3,562,704 less allowance for doubtful accounts (9,385) (8,411) (6,267) (13,325) (103,970) (141,358) Trade accounts receivable, net 1,988,286 891,576 222,745 171,443 147,296 3,421,346 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Inventories | 8. Inventories At December 31, 2020 and December 31, 2019, inventories consisted of the following: Inventories in € THOUS 2020 2019 Finished goods 1,088,311 940,407 Health care supplies 473,164 399,585 Raw materials and purchased components 232,422 227,654 Work in process 101,413 95,632 Inventories 1,895,310 1,663,278 Under the terms of certain unconditional purchase agreements, the Company is obligated to purchase approximately €359,709 of materials, of which €196,770 is committed at December 31, 2020 for 2021. The terms of these agreements run 1 to 5 years. Further unconditional purchase agreements exist with an equity method investee of the Company. For further information on these agreements, see note 5. Allowances on inventories amounted to €61,256 and €69,427 for the years ended December 31, 2020 and 2019, respectively. |
Other current assets
Other current assets | 12 Months Ended |
Dec. 31, 2020 | |
Other current assets | |
Other current assets | 9. Other current assets At December 31, 2020 and 2019, other current assets consisted of the following: Other current assets in € THOUS 2020 2019 Payments on account 278,788 110,078 Debt securities 161,688 133,322 Income Taxes Receivable 136,048 209,545 Other Taxes Receivable 108,375 127,880 Receivables for supplier rebates 90,388 51,296 Prepaid insurance 24,888 19,796 Notes receivable 20,599 5,131 Loans to customers or suppliers 19,147 11,427 Deposit / Guarantee / Security 17,577 22,226 Prepaid rent 13,082 26,374 Derivatives 6,470 2,513 Other 176,928 194,015 Other current assets 1,053,978 913,603 The item “Other” in the table above primarily includes receivables from employees and interest receivables. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment. | |
Property, plant and equipment | 10. Property, plant and equipment At December 31, 2020 and 2019, the acquisition or manufacturing costs and the accumulated depreciation of property, plant and equipment consisted of the following: Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Additions Reclassi- fications Disposals 2020 Land 63,992 (3,542) (352) 8,175 1,592 (283) 69,582 Buildings and improvements 3,644,437 (298,571) (13,130) 58,302 280,716 (58,582) 3,613,172 Machinery and equipment 5,139,656 (323,731) (9,615) 528,280 96,267 (197,855) 5,233,002 Construction in progress 509,282 (29,668) 2,928 333,082 (337,758) (6,388) 471,478 Property, plant and equipment 9,357,367 (655,512) (20,169) 927,839 40,817 (263,108) 9,387,234 Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2019 translation group Additions Reclassi- fications Disposals 2019 Land 58,887 802 2,824 466 3,153 (2,140) 63,992 Buildings and improvements 3,311,704 65,782 10,648 43,560 296,276 (83,533) 3,644,437 Machinery and equipment 4,541,906 59,529 86,743 569,352 127,613 (245,487) 5,139,656 Machinery, equipment and rental equipment under capitalized leases 89,734 2,151 — — (91,885) — — Construction in progress 505,168 7,692 (1,167) 368,577 (366,895) (4,093) 509,282 Property, plant and equipment 8,507,399 135,956 99,048 981,955 (31,738) (335,253) 9,357,367 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Additions Reclassi- fications Disposals 2020 Land 1,332 (15) — — — — 1,317 Buildings and improvements 2,052,820 (170,668) (7,122) 260,450 1,146 (38,607) 2,098,019 Machinery and equipment 3,112,934 (185,612) (16,657) 477,751 11,484 (168,866) 3,231,034 Construction in progress — — — — — — — Property, plant and equipment 5,167,086 (356,295) (23,779) 738,201 12,630 (207,473) 5,330,370 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2019 translation group Additions Reclassi- fications Disposals 2019 Land 1,295 19 — 20 — (2) 1,332 Buildings and improvements 1,818,053 32,818 (8,312) 255,683 8,805 (54,227) 2,052,820 Machinery and equipment 2,798,709 34,291 (7,023) 461,947 24,591 (199,581) 3,112,934 Machinery, equipment and rental equipment under capitalized leases 53,332 1,334 — — (54,666) — — Construction in progress — — — — — — — Property, plant and equipment 4,671,389 68,462 (15,335) 717,650 (21,270) (253,810) 5,167,086 Book value in € THOUS December 31, December 31, 2020 2019 Land 68,265 62,660 Buildings and improvements 1,515,153 1,591,617 Machinery and equipment 2,001,968 2,026,722 Construction in progress 471,478 509,282 Property, plant and equipment 4,056,864 4,190,281 Depreciation expense for property, plant and equipment amounted to €738,201, €717,650 and €631,423 for the years ended December 31, 2020, 2019, and 2018, respectively. These expenses are allocated within costs of revenue, selling, general and administrative and research and development expenses depending upon the area in which the asset is used. Under the terms of certain unconditional purchase agreements, the Company is obligated to purchase approximately €118,472 of property, plant and equipment, of which €27,178 is committed at December 31, 2020 for 2021. The terms of these agreements run 1 to 10 years. Included in machinery and equipment at December 31, 2020 and 2019 were €758,151 and €775,601, respectively, of peritoneal dialysis cycler machines which the Company leases to customers with ESRD on a month-to-month basis and hemodialysis machines which the Company leases to physicians under operating leases. At December 31, 2020 and 2019, the hyperinflationary effects on property, plant and equipment consisted of the following: Effect of hyperinflation in € THOUS Acquisition or Accumulated December 31, manufacturing costs depreciation 2020 Land 2,784 — 2,784 Buildings and improvements 25,970 9,587 16,383 Machinery and equipment 43,041 27,322 15,719 Construction in progress 1,402 — 1,402 Property, plant and equipment 73,197 36,909 36,288 Acquisition or Accumulated December 31, manufacturing costs depreciation 2019 Land 2,307 — 2,307 Buildings and improvements 20,652 7,802 12,850 Machinery and equipment 33,237 21,470 11,767 Construction in progress 1,108 — 1,108 Property, plant and equipment 57,304 29,272 28,032 |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets and goodwill | |
Intangible assets and goodwill | 11. Intangible assets and goodwill At December 31, 2020 and 2019, the acquisition or manufacturing costs and the accumulated amortization of intangible assets and goodwill consisted of the following: Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Additions Reclassi- fications Disposals 2020 Amortizable intangible assets Non-compete agreements 332,722 (26,948) 6,682 327 — (1,430) 311,353 Technology 742,621 (57,258) 185 — 182 — 685,730 Licenses and distribution agreements 202,287 (12,468) — 3,222 2,581 (7,159) 188,463 Customer relationships 68,931 (4,590) — — (1,567) — 62,774 Construction in progress 267,403 (10,499) — 146,057 (168,797) (892) 233,272 Internally developed intangibles 298,039 (24,621) — 12,487 117,584 (9,175) 394,314 Other 408,341 (22,371) 13,135 20,611 52,121 (102,756) 369,081 2,320,344 (158,755) 20,002 182,704 2,104 (121,412) 2,244,987 Non-amortizable intangible assets Trade names 255,047 (21,555) — — — — 233,492 Management contracts 3,225 (189) — — 16 — 3,052 258,272 (21,744) — — 16 — 236,544 Intangible assets 2,578,616 (180,499) 20,002 182,704 2,120 (121,412) 2,481,531 Goodwill 14,409,852 (1,148,174) 253,455 — — — 13,515,133 Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2019 translation group Additions Reclassi- fications Disposals 2019 Amortizable intangible assets Non-compete agreements 324,910 6,012 4,744 25 (274) (2,695) 332,722 Technology 153,164 (376) 589,833 — — — 742,621 Licenses and distribution agreements 235,625 4,678 (38,126) 783 5,093 (5,766) 202,287 Customer relationships 23,847 (116) 47,880 — (2,680) — 68,931 Construction in progress 148,002 1,208 36,892 171,446 (86,898) (3,247) 267,403 Internally developed intangibles 217,033 971 — 9,105 71,152 (222) 298,039 Other 381,390 6,852 (1,949) 11,007 17,763 (6,722) 408,341 1,483,971 19,229 639,274 192,366 4,156 (18,652) 2,320,344 Non-amortizable intangible assets (1) Tradename 182,901 3,326 41,002 — — — 227,229 Management contracts 3,134 91 — — — — 3,225 186,035 3,417 41,002 — — — 230,454 Intangible assets 1,670,006 22,646 680,276 192,366 4,156 (18,652) 2,550,798 Goodwill 12,209,606 217,996 1,589,653 — — — 14,017,255 (1) Non-amortizable intangible assets and Goodwill are presented net of accumulated impairments as of December 31, 2019. Amortization in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 2020 translation group Additions loss Reclassi- fications Disposals 31, 2020 Amortizable intangible assets Non-compete agreements 296,123 (24,152) (315) 10,697 — (6) (1,512) 280,835 Technology 175,010 (13,488) — 55,318 — (821) — 216,019 Licenses and distribution agreements 143,712 (7,933) (22) 3,545 — (181) (10,372) 128,749 Customer relationships 11,356 (613) — 4,134 — (1,567) — 13,310 Construction in progress — — — — — — — — Internally developed intangibles 169,185 (12,565) — 43,321 — (88) (4,477) 195,376 Other 329,082 (14,265) (75) 27,654 304 23 (103,157) 239,566 1,124,468 (73,016) (412) 144,669 304 (2,640) (119,518) 1,073,855 Non-amortizable intangible assets Trade names 27,818 (2,351) — — 490 — — 25,957 Management contracts — (52) — — 762 — — 710 27,818 (2,403) — — 1,252 — — 26,667 Intangible assets 1,152,286 (75,419) (412) 144,669 1,556 (2,640) (119,518) 1,100,522 Goodwill 392,597 (30,170) — — 193,978 — — 556,405 Amortization in € THOUS Foreign Changes in December January 1, currency consolidation Impairment 31, 2019 translation group Additions loss Reclassi- fications Disposals 2019 Amortizable intangible assets Non-compete agreements 282,296 5,235 (166) 11,868 — 26 (3,136) 296,123 Technology 124,605 1,140 — 49,265 — — — 175,010 Licenses and distribution agreements 131,492 2,607 — 14,293 — — (4,680) 143,712 Customer relationships 7,245 12 — 4,099 — — — 11,356 Construction in progress — — — — — — — — Internally developed intangibles 138,343 1,328 — 28,722 932 360 (500) 169,185 Other (1) 304,694 4,795 (3,606) 27,235 — 1,410 (5,446) 329,082 988,675 15,117 (3,772) 135,482 932 1,796 (13,762) 1,124,468 (1) Non-amortizable intangible assets and Goodwill are presented net of accumulated impairments as of December 31, 2019. Book value in € THOUS December 31, 2020 December 31, 2019 Amortizable intangible assets Non-compete agreements 30,518 36,599 Technology 469,711 567,611 Licenses and distribution agreements 59,714 58,575 Customer relationships 49,464 57,575 Construction in progress 233,272 267,403 Internally developed intangibles 198,938 128,854 Other 129,515 79,259 1,171,132 1,195,876 Non-amortizable intangible assets Trade names 207,535 227,229 Management contracts 2,342 3,225 209,877 230,454 Intangible assets 1,381,009 1,426,330 Goodwill 12,958,728 14,017,255 The amortization of intangible assets amounted to €144,669, €135,482 and €93,424 for the years ended December 31, 2020, 2019, and 2018, respectively. These expenses are allocated within costs of revenue, selling, general and administrative and research and development expenses depending upon the area in which the asset is used. At December 31, 2020 and 2019, the hyperinflationary effects on intangible assets and goodwill consisted of the following: Effect of hyperinflation in € THOUS Accumulated Acquisition or amortization and manufacturing costs impairments December 31, 2020 Amortizable intangible assets Internally developed intangibles 2,081 1,362 719 Other 2,860 1,042 1,818 Intangible assets 4,941 2,404 2,537 Goodwill 33,564 33,540 24 Accumulated Acquisition or amortization and manufacturing costs impairments December 31, 2019 Amortizable intangible assets Internally developed intangibles 1,971 1,281 690 Other 1,697 727 970 Intangible assets 3,668 2,008 1,660 Goodwill 28,057 2,926 25,131 Goodwill and intangible assets with indefinite useful lives The decrease in the carrying amount of goodwill during 2020 is mainly as a result of the impact of foreign currency translations and the impairment of goodwill in the Latin America Segment, partly offset by the purchase of clinics in the normal course of operations. The carrying amount of goodwill and intangibles with indefinite useful life is allocated to the groups of CGUs at December 31, 2020 and 2019 as follows: Allocation of the carrying amount to the groups of CGUs in € THOUS North America EMEA Asia-Pacific Latin America 2020 2019 2020 2019 2020 2019 2020 2019 Goodwill 10,908,633 11,762,791 1,328,543 1,342,730 720,225 716,665 1,327 195,069 Management contracts with indefinite useful life — — — — 2,342 3,225 — — Trade names with indefinite useful life 207,535 226,692 — — — — — 537 The Company recorded an impairment of goodwill and trade names in the Latin America Segment in 2020 (see note 2 a). Additionally, an impairment of management contracts in the Asia-Pacific Segment was recorded in 2020 as noted in the “Amortization” table above. The Company did not record any impairment losses in 2019. |
Current provisions and other cu
Current provisions and other current liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Current provisions and other current liabilities | |
Current provisions and other current liabilities | 12. Current provisions and other current liabilities Current provisions The following table shows a reconciliation of the current provisions for 2020: Development of current provisions in € THOUS Foreign Changes in January 1, currency consolidation 2020 translation group Utilized Reversed Additions Reclassifications December 31, 2020 Self-insurance programs 219,866 (18,963) — — (101,497) 107,023 — 206,429 Personnel expenses 90,526 (3,459) (1,226) (77,774) (8,092) 29,166 26,124 55,265 Risk of lawsuit 20,981 (1,992) 204 (531) (111) 5,998 (159) 24,390 Other current provisions 40,683 (1,778) 545 (8,716) (5,732) 12,912 (160) 37,754 Current provisions 372,056 (26,192) (477) (87,021) (115,432) 155,099 25,805 323,838 Self-insurance programs See note 2 d). Personnel expenses Personnel expenses mainly refer to provisions for share-based plans, the current portion of the provisions for accrued severance payments and provisions for jubilee payments. As at December 31, 2020 and 2019 the provisions for share-based plans amounted to €26,876 and €63,447, respectively. See note 20. Risk of lawsuit See note 22. Other current provisions The item “Other current provisions” in the table above includes provisions for warranties, physician compensation and return of goods. Other current liabilities As at December 31, 2020 and 2019 other current liabilities consisted of the following: Other current liabilities in € THOUS 2020 2019 Personnel liabilities 732,771 647,508 Put option liabilities 645,784 654,963 Contract liabilities 571,420 22,795 Unapplied cash and receivable credits 495,962 482,682 Invoices outstanding 180,227 178,209 VAT and other (non-income) tax liabilities 113,595 104,388 Interest liabilities 73,140 73,593 Derivatives 40,923 13,246 Deferred Income 34,885 8,145 Bonuses, commissions 32,971 27,510 Legal matters, advisory and audit fees 31,902 27,979 Variable payments outstanding for acquisitions 19,313 34,253 Other liabilities 220,345 216,923 Other current liabilities 3,193,238 2,492,194 Personnel liabilities The personnel liabilities mainly refer to liabilities for wages and salaries, bonuses and vacation payments. Contract liabilities The Company received advance payments under the CMS Accelerated and Advance Payment program which are recorded as contract liability upon receipt and recognized as revenue when the respective services are provided. For additional information on the advanced payments, see note 4 i) above. Contract liabilities also relate to advance payments from customers and to sales of dialysis machines where revenue is recognized upon installation and provision of the necessary technical instructions whereas a receivable is recognized once the machine is billed to the customer. Other liabilities The item “Other liabilities” in the table above includes the current portion of pension liabilities as well as liabilities for insurance premiums. |
Short-term debt
Short-term debt | 12 Months Ended |
Dec. 31, 2020 | |
Short-term debts | |
Short-term debt | 13. Short-term debt At December 31, 2020 and December 31, 2019, short-term debt consisted of the following: Short-term debt in € THOUS 2020 2019 Commercial paper program 19,995 999,732 Borrowings under lines of credit 42,442 143,875 Other 513 6,381 Short-term debt from unrelated parties 62,950 1,149,988 Short-term debt from related parties (see note 5 c) 16,320 21,865 Short-term debt 79,270 1,171,853 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 December 31, 2020 and 2019, the outstanding commercial paper amounted to €20,000 and €1,000,000, respectively. Borrowings under lines of credit and further availabilities Borrowings under lines of credit in the amount of €42,442 and €143,875 at December 31, 2020 and 2019, respectively, represented amounts borrowed by the Company and its subsidiaries under lines of credit with commercial banks. The average interest rates on these borrowings at December 31, 2020 and 2019 were 4.05% and 0.86%, respectively. Excluding amounts available under the Amended 2012 Credit Agreement (see note 14 below), at December 31, 2020 and 2019, the Company had €1,077,152 and €517,926 available under other commercial bank agreements. In some instances, lines of credit are secured by assets of the Company's subsidiary that is party to the agreement or may require the Company's guarantee. In certain circumstances, the subsidiary may be required to meet certain covenants. The Company and certain consolidated entities operate a multi-currency notional pooling cash management system. The Company met the conditions to offset balances within this cash pool for reporting purposes. At December 31, 2020 and 2019, cash and borrowings under lines of credit in the amount of €998,044 and €152,598 were offset under this cash management system. Other At December 31, 2020 and 2019, the Company had €513 and €6,381 of other debt outstanding related to fixed payments outstanding for acquisitions. Short-term debt from related parties The Company and one of its subsidiaries are parties to an unsecured loan agreement, as borrowers, with Fresenius SE, as lender, under which the Company and one of its subsidiaries may request and receive one or more short-term advances up to an aggregate amount of €600,000 until maturity on July 31, 2022. For further information on short-term debt from related parties, see note 5 c). |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2020 | |
Long-term debts | |
Long-term debt | 14. Long-term debt As of December 31, 2020 and 2019, long-term debt consisted of the following: Long-term debt in € THOUS 2020 2019 Amended 2012 Credit Agreement 1,162,342 1,901,372 Bonds 6,408,118 4,966,619 Convertible Bonds — 399,939 Accounts Receivable Facility — 379,570 Other 238,000 258,057 Long-term debt 7,808,460 7,905,557 Less current portion (1,008,359) (1,447,239) Long-term debt, less current portion 6,800,101 6,458,318 The Company's long-term debt as of December 31, 2020, all of which ranks equally in rights of payment, are described as follows: Amended 2012 credit agreement The Company originally entered into a syndicated credit facility of $3,850,000 (€2,970,221) and a 5-year tenor (the "2012 Credit Agreement") on October 30, 2012. On November 26, 2014, the 2012 Credit Agreement was amended to increase the total credit facility to approximately $4,400,000 (€ 3,527,054) and extend the term for an additional two years until October 30, 2019 ("Amended 2012 Credit Agreement"). On July 11, 2017, the Company further amended and extended the Amended 2012 Credit Agreement. See “Amended 2012 Credit Agreement - Maximum amount available and balance outstanding” table below. Interest on the credit facilities is floating at a rate equal to EURIBOR / LIBOR (as applicable) plus an applicable margin. The applicable margin is variable and depends on the Company's consolidated net leverage ratio, which is a ratio of its consolidated funded debt less cash and cash equivalents to consolidated EBITDA (as these terms are defined in the Amended 2012 Credit Agreement). At December 31, 2020 and 2019, the dollar-denominated tranches outstanding under the Amended 2012 Credit Agreement had a weighted average interest rate of 1.21% and 3.24%, respectively. At December 31, 2020 and 2019, the euro-denominated tranches had a weighted average interest rate of 0.88% and 0.93%, respectively. The Amended 2012 Credit Agreement contains affirmative and negative covenants with respect to the Company and its subsidiaries. Under certain circumstances these covenants limit indebtedness and restrict the creation of liens. Under the Amended 2012 Credit Agreement the Company is required to comply with a maximum consolidated net leverage ratio. The following table shows the available and outstanding amounts under the Amended 2012 Credit Agreement at December 31, 2020 and 2019: Amended 2012 Credit Agreement - Maximum amount available and balance outstanding in THOUS Maximum amount available Balance outstanding 2020 2020 (1) Revolving credit USD 2017 / 2022 $ 900,000 € 733,436 $ — € — Revolving credit EUR 2017 / 2022 € 600,000 € 600,000 € — € — USD term loan 2017 / 2022 $ 1,110,000 € 904,572 $ 1,110,000 € 904,572 EUR term loan 2017 / 2022 € 259,000 € 259,000 € 259,000 € 259,000 EUR term loan 2017 / 2020 (2) € — € — € — € — € 2,497,008 € 1,163,572 Maximum amount available Balance outstanding 2019 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. (2) The EUR term loan 2017 / 2020 in the amount of €400,000 due on July 30, 2020, was repaid on May 29, 2020. At December 31, 2020 and 2019, the Company had letters of credit outstanding in the amount of $ 1,087 and $1,135 (€886 and €1,010), respectively, under the USD revolving credit facility, which are not included above as part of the balance outstanding at those dates but which reduce available borrowings under the applicable revolving credit facility. Bonds At December 31, 2020 and 2019, the Company’s bonds consisted of the following: Bonds in THOUS Face Book value Book value Issuer/Transaction amount Maturity Coupon 2020 in € 2019 in € FMC US Finance II, Inc. 2014 $ 500,000 October 15, 2020 (1) 4.125 % — 444,507 FMC US Finance, Inc. 2011 $ 650,000 February 15, 2021 (2) 5.75 % 529,509 577,069 FMC Finance VII S.A. 2011 € 300,000 February 15, 2021 (2) 5.250 % 299,961 299,498 FMC US Finance II, Inc. 2012 $ 700,000 January 31, 2022 5.875 % 569,987 622,135 Fresenius Medical Care AG & Co. KGaA, 2019 € 650,000 November 29, 2023 0.25 % 647,719 646,936 FMC US Finance II, Inc. 2014 $ 400,000 October 15, 2024 4.75 % 324,725 354,338 Fresenius Medical Care AG & Co. KGaA, 2018 € 500,000 July 11, 2025 1.50 % 496,841 496,138 Fresenius Medical Care AG & Co. KGaA, 2020 € 500,000 May 29, 2026 1.00 % 495,598 — Fresenius Medical Care AG & Co. KGaA, 2019 € 600,000 November 30, 2026 0.625 % 594,196 593,216 FMC US Finance III, Inc. 2019 $ 500,000 June 15, 2029 3.75 % 399,753 435,673 Fresenius Medical Care AG & Co. KGaA, 2019 € 500,000 November 29, 2029 1.25 % 497,138 497,109 Fresenius Medical Care AG & Co. KGaA, 2020 € 750,000 May 29, 2030 1.50 % 745,454 — FMC US Finance III, Inc. 2020 $ 1,000,000 February 16, 2031 2.375 % 807,237 — 6,408,118 4,966,619 (1) Redeemed prior to maturity on July 17, 2020 (2) For further information on the repayment of these bonds, see note 27. All bonds issued by entities other than Fresenius Medical Care AG & Co. KGaA are guaranteed by the Company and by FMCH, while bonds issued by Fresenius Medical Care AG & Co. KGaA are guaranteed by FMCH. All bonds may be redeemed at the option of the respective issuers at any time at 100% of principal plus accrued interest and a premium calculated pursuant to the terms of the applicable indenture. The holders of our bonds have the right to request that the issuers repurchase the bonds at 101% of principal plus accrued interest upon the occurrence of a change of control of the Company followed by a decline in the ratings of the respective bonds. The Company has agreed to a number of covenants to provide protection to the bond holders which, under certain circumstances and with certain exceptions for the bonds issued since 2018, limit the ability of the Company and its subsidiaries to, among other things, incur debt, incur liens, engage in sale-leaseback transactions and merge or consolidate with other companies or sell assets. The limitation on incurrence of debt in the bonds issued before 2018 was suspended automatically as the rating of the respective bonds reached investment grade status. At December 31, 2020, the Company was in compliance with all of its covenants under the bonds. Since 2018, bonds can be issued with different maturities under the Company's €10,000,000 Debt Issuance Program ("Debt Issuance Program"). On May 29, 2020, the Company issued bonds in two tranches with an aggregate principal amount of €1,250,000 under the Debt Issuance Program: · bonds of €500,000 with a maturity of 6 years and a coupon of 1.000%, and · bonds of €750,000 with a maturity of 10 years and a coupon of 1.500% On September 16, 2020, Fresenius Medical Care US Finance III, Inc. issued bonds with a volume of $1,000,000 (€842,531). The bonds have a maturity of 10 years and 5 months and a coupon of 2.375%. The proceeds of both the euro and the U.S. dollar issuances were used for general corporate purposes and the refinancing of existing liabilities. The bonds issued by Fresenius Medical Care US Finance II, Inc. in the amount of $500,000 (€392,557 as of the date of issuance on October 29, 2014) originally due on October 15, 2020, were redeemed prior to maturity on July 17, 2020. Convertible bonds On September 19, 2014, the Company issued €400,000 principal amount of equity-neutral convertible bonds with a coupon of 1.125%. The bonds were issued at par and repaid as planned on January 31, 2020. In November 2019, the conversion feature expired and no conversions occurred. The call options on its shares that the Company purchased in 2014 to fully offset the economic exposure from the conversion feature also expired in November 2019. Accounts Receivable Facility The Company refinanced the Accounts Receivable Facility on December 20, 2018 increasing the facility to $900,000 (€785,958) and extending it until December 20, 2021. The following table shows the available and outstanding amounts under the Accounts Receivable Facility at December 31, 2020 and December 31, 2019: Accounts Receivable Facility - Maximum amount available and balance outstanding in THOUS Maximum amount available Balance outstanding 2020 (1) 2020 (2) Accounts Receivable Facility $ 900,000 € 733,437 $ — € — Maximum amount available Balance outstanding 2019 (1) 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. At December 31, 2020, the Company is not currently utilizing the Accounts Receivable Facility and the principal cash flows related to bank investors' initial investments have been returned. The Company also had letters of credit outstanding under the Accounts Receivable Facility in the amount of $12,522 at December 31, 2020 and $23,460 at December 31, 2019 (€10,205 and €20,883, respectively). These letters of credit are not included above as part of the balance outstanding at December 31, 2020 and 2019; however, they reduce available borrowings under the Accounts Receivable Facility. Under the Accounts Receivable Facility, certain receivables are sold to NMC Funding Corporation ("NMC Funding"), a wholly-owned subsidiary. NMC Funding then assigns percentage ownership interests in the accounts receivable to certain bank investors (and their conduit affiliates). Under the terms of the Accounts Receivable Facility, NMC Funding retains the rights in the underlying cash flows of the transferred receivables. Interest is remitted to the bank investors at the end of each tranche period, however, the principal cash flows are continuously reinvested to purchase additional interests in the receivables. Furthermore, NMC Funding retains significant risks and rewards in the receivables as the percentage ownership interest assigned requires the Company to retain first loss risk in those receivables, and the Company can, at any time, recall all the then outstanding transferred interests in the accounts receivable. Consequently, the receivables remain on the Company's consolidated balance sheet and the proceeds from the transfer of percentage ownership interests are recorded as long-term debt. NMC Funding pays interest to the bank investors calculated based on the commercial paper rates for the particular tranches selected. At December 31, 2019, the average interest rate paid was 1.98%. Refinancing fees, which include legal costs and bank fees, are amortized over the term of the facility. Other At December 31, 2020 and 2019, in conjunction with certain acquisitions and investments, the Company had fixed payments outstanding for acquisitions totaling approximately €33,562 and €27,611, respectively, of which €23,202 and €12,456, respectively, were classified as the current portion of long-term debt. |
Non-current provisions and othe
Non-current provisions and other non-current liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Non-current provisions and other non-current liabilities | |
Non-current provisions and other non-current liabilities | 15. Non-current provisions and other non-current liabilities Of the total amount of non-current provisions and other non-current liabilities amounting to €931,590 at December 31, 2020 (2019: €616,916), €700,306 (2019: €219,129) are due in between more than one and three years, €104,343 (2019: €34,762) are due in between three to five years and €126,941 (2019: €363,025) are due after five years. The item “Other non-current liabilities” in the amount of €836,030 at December 31, 2020 (2019: €508,113) includes, among others, contract liabilities of €304,632 (2019: €6), put option liabilities of €236,638 (2019: €279,462) and variable payments outstanding for acquisitions of €47,046 (2019: €55,424). The following table shows the development of non-current provisions in the fiscal year: Development of non-current provisions in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Utilized Reversed Additions Reclassifications 2020 Personnel expenses 60,366 (4,569) 710 (1,747) (3,576) 20,190 (26,630) 44,744 Interest payable related to income taxes 26,111 (197) — — — 3,161 — 29,075 Other non-current provisions 22,326 (2,859) 3,199 (1,644) (960) 854 825 21,741 Non-current provisions 108,803 (7,625) 3,909 (3,391) (4,536) 24,205 (25,805) 95,560 Personnel expenses mainly refer to provisions for share-based plans and provisions for severance payments. As at December 31, 2020, the provisions for share-based plans amounted to €36,406 (2019: €47,411). See note 20. The item “Other non-current provisions” in the table above includes provisions for asset retirement obligations. The increase during the period in the discounted amount arising from the passage over time and the effect of any change in the discount rate is not material. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee benefit plans | |
Employee benefit plans | 16. Employee benefit plans General FMC-AG & Co. KGaA recognizes pension costs and related pension liabilities for current and future benefits to qualified current and former employees of the Company. The Company’s pension plans are structured in accordance with the differing legal, economic and fiscal circumstances in each country. The Company currently has two types of plans, defined benefit and defined contribution plans. In general, plan benefits in defined benefit plans are based on all or a portion of the employees’ years of services and final salary. Plan benefits in defined contribution plans are determined by the amount of contribution by the employee and the employer, both of which may be limited by legislation, and the returns earned on the investment of those contributions. Upon retirement under defined benefit plans, the Company is required to pay defined benefits to former employees when the defined benefits become due. Defined benefit plans may be funded or unfunded. The Company has five major defined benefit plans, one funded plan in the U.S. and one in France as well as one unfunded plan in Germany and two in France. Actuarial assumptions generally determine benefit obligations under defined benefit plans. The actuarial calculations require the use of estimates. The main factors used in the actuarial calculations affecting the level of the benefit obligations are: assumptions on life expectancy, the discount rate and future salary and benefit levels. Under the Company’s funded plans, assets are set aside to meet future payment obligations. An estimated return on the plan assets is recognized as income in the respective period. Actuarial gains and losses are generated when there are variations in the actuarial assumptions and by differences between the actual and the estimated projected benefit obligations and the return on plan assets for that year. The Company’s pension liability is impacted by these actuarial gains or losses. Under defined contribution plans, the Company pays defined contributions to an independent third party as directed by the employee during the employee’s service life, which satisfies all obligations of the Company to the employee. The employee retains all rights to the contributions made by the employee and to the vested portion of the Company paid contributions upon leaving the Company. The Company has a defined contribution plan in the U.S. Defined benefit pension plans During the first quarter of 2002 FMCH, the Company’s U.S. subsidiary, curtailed its defined benefit and supplemental executive retirement plans. Under the curtailment amendment for substantially all employees eligible to participate in the plan, benefits have been frozen as of the curtailment date and no additional defined benefits for future services will be earned. The Company has retained all employee benefit obligations as of the curtailment date. Each year FMCH contributes at least the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. In 2020, FMCH did not have a minimum funding requirement. The Company voluntarily provided €9,901 to the defined benefit plan. Expected funding for 2021 is €1,059. The benefit obligation for all defined benefit plans at December 31, 2020, was €996,237 (2019: €976,467) which consists of the gross benefit obligation of €385,333 (2019: €399,339) for the U.S. plan and of €5,581 (2019: €5,498) for the French plan, which are partially funded by plan assets, and the benefit obligation of €593,100 (2019: €560,255) for the German unfunded plan and the benefit obligation of €12,223 (2019: €11,375) for the two French unfunded plans. In the fourth quarter of 2019, FMC North America offered a lump-sum payout for its defined benefit pension plan to former employees. This settlement reduced the benefit obligation and resulted in a gain. Controlling and managing the administration of the plan in the U.S. was delegated by the Company to an administrative committee. This committee has the authority and discretion to manage the assets of the fund and to approve and adopt certain plan amendments. The board of directors of National Medical Care, Inc., a subsidiary of the Company, reserves the right to approve or adopt all major plan amendments, such as termination, modification or termination of the future benefit accruals and plan mergers with other pension plans. Related to defined benefit plans the Company is exposed to certain risks. Besides general actuarial risks, e.g. the longevity risk and the interest rate risk, the Company is exposed to market risk as well as to investment risk. The following table shows the changes in benefit obligations, the changes in plan assets, the net funded position and the net liability of the pension plans. Benefits paid as shown in the changes in benefit obligations represent payments made from both the funded and unfunded plans while the benefits paid as shown in the changes in plan assets include only benefit payments from the Company’s funded benefit plan. Net pension liability in € THOUS 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year 976,467 842,601 Foreign currency translation (gains) losses (35,216) 7,459 Current service cost 40,213 30,070 Past service cost (244) — Interest cost 21,298 28,016 Transfer of plan participants 252 194 Actuarial (gains) losses arising from changes in financial assumptions 15,480 140,923 Actuarial (gains) losses arising from changes in demographic assumptions (87) (2,306) Actuarial (gains) losses arising from experience adjustments 9,278 (4,873) Remeasurements 24,671 133,744 Benefits paid (30,873) (60,863) Settlements (331) (4,754) Benefit obligation at end of year 996,237 976,467 Change in plan assets: Fair value of plan assets at beginning of year 316,124 317,585 Foreign currency translation gains (losses) (28,316) 6,130 Interest income from plan assets 10,846 14,108 Actuarial gains (losses) arising from experience adjustments 28,847 34,131 Actual return on plan assets 39,693 48,239 Employer contributions 9,901 1,131 Benefits paid (26,329) (56,961) Fair value of plan assets at end of year 311,073 316,124 Net funded position at end of year 685,164 660,343 Benefit plans offered by other subsidiaries Net pension liability For the years 2020 and 2019, there were no effects from the asset ceiling. At December 31, 2020, the weighted average duration of the defined benefit obligation was 19 years (2019: 19 years). Benefit plans offered by the Company in the U.S., Germany and France contain a pension liability of €685,164 and €660,343 at December 31, 2020 and 2019, respectively. The pension liability consists of a current portion of €6,923 (2019: €6,190) which is recorded in the line item “Current provisions and other current liabilities” in the consolidated balance sheets. The non-current portion of €678,241 (2019: €654,153) is recorded in non-current liabilities as “Pension liabilities” in the consolidated balance sheets. As of December 31, 2020, €74,364 related to the U.S. pension plan, €593,100 related to the German plan and €17,700 related to the French plans. At December 31, 2019, €83,323 related to the U.S. pension plan, €560,255 related to the German plan and €16,765 related to the French plans. Approximately 64% of the beneficiaries are located in the U.S. and 8% in France with the majority of the remaining 28% located in Germany. Benefit plans offered by other subsidiaries outside of the U.S., Germany and France contain separate benefit obligations. The total net pension liability for these other plans was €43,950 and €39,147 at December 31, 2020 and 2019 and consists of a current pension liability of €3,689 (2019: €4,105), which is recognized in the line item “Current provisions and other current liabilities.” The non-current pension liability of €40,261 (2019: €35,042) for these plans is recorded in non-current liabilities as “Pension liabilities” in the consolidated balance sheets. The discount rates for all plans are based upon yields of portfolios of highly rated debt instruments with maturities that mirror each plan’s benefit obligation. The Company’s discount rates at December 31, 2020 and 2019 are the weighted average of these plans based upon their benefit obligations. The following weighted-average assumptions were utilized in determining benefit obligations at December 31, 2020 and 2019: Weighted average assumptions in % 2020 2019 Discount rate 2.02 2.35 Rate of compensation increase 3.17 3.18 Rate of pension increase 1.46 1.70 Sensitivity analysis Increases and decreases in principal actuarial assumptions by 0.5 percentage points would affect the pension liability at December 31, 2020 as follows: Sensitivity analysis in € THOUS 0.5% 0.5% increase decrease Discount rate (91,605) 106,665 Rate of compensation increase 16,509 (16,254) Rate of pension increase 47,915 (43,190) The sensitivity analysis was calculated based on the average duration of the pension obligations determined at December 31, 2020. The calculations were performed isolated for each significant actuarial parameter, in order to show the effect on the fair value of the pension liability separately. The sensitivity analysis for compensation increases and for pension increases excludes the U.S. pension plan because it is frozen and therefore is not affected by changes from these two actuarial assumptions. The defined benefit pension plans’ net periodic benefit costs are comprised of the following components for the years ended December 31, 2020, 2019 and 2018: Components of net periodic benefit cost in € THOUS 2020 2019 2018 Service cost 40,213 30,070 25,467 Net interest cost 10,452 13,908 13,056 Prior service cost (244) — — (Gains) losses from settlements (331) (4,754) — Net periodic benefit costs 50,090 39,224 38,523 Service cost and net interest cost are allocated as personnel expense within costs of revenues; selling, general and administrative expense; or research and development expense. This is depending upon the area in which the beneficiary is employed. The gain from settlement is included in selling, general and administrative expense. The following weighted-average assumptions were used in determining net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018: Weighted average assumptions in % 2020 2019 2018 Discount rate 2.35 3.27 3.08 Rate of compensation increase 3.18 3.21 3.22 Rate of pension increase 1.70 1.69 1.45 Expected benefit payments are as follows: Defined benefit pension plans: cash outflows in € THOUS 2020 2019 1 year 24,645 28,706 1 - 3 years 53,882 56,577 3 - 5 years 60,444 62,441 5 - 10 years 178,971 183,896 Total 317,942 331,620 Plan Assets The following table presents the fair values of the Company´s pension plan assets at December 31, 2020 and 2019: Fair values of plan assets in € THOUS Quoted prices Quoted prices in active in active markets for Significant Significant markets for Significant Significant identical observable unobservable identical observable unobservable Asset category Total assets inputs inputs Total assets inputs inputs (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) 2020 2019 Equity investments Index funds (1) 88,169 8,926 79,243 — 85,321 8,440 76,881 — Fixed income investments Government securities (2) 15,720 15,441 279 — 2,875 2,547 328 — Corporate bonds (3) 182,850 — 182,850 — 202,642 — 202,642 — Other bonds (4) 16,576 — 9,380 7,196 10,179 — 2,762 7,417 U.S. treasury money market funds (5) 7,654 7,654 — — 14,999 14,999 — — Other types of investments Cash, money market and mutual funds (6) 104 104 — — 108 108 — — Total 311,073 32,125 271,752 7,196 316,124 26,094 282,613 7,417 (1) This category comprises low-cost equity index funds not actively managed that track the S&P 500, S&P 400, Russell 2000, MSCI Emerging Markets Index and the Morgan Stanley International EAFE Index. (2) This Category comprises fixed income investments by the U.S. government and government sponsored entities. (3) This Category primarily represents investment grade bonds of U.S. issuers from diverse industries. (4) This Category comprises private placement bonds as well as collateralized mortgage obligations. (5) This Category represents funds that invest in U.S. treasury obligations directly or in U.S. treasury backed obligations. (6) This Category represents cash, money market funds as well as mutual funds comprised of high grade corporate bonds. The methods and inputs used to measure the fair value of plan assets at the balance sheet date are as follows: · Common stocks are valued at their market prices. · Index funds are valued based on market quotes. · Government bonds are valued based on both market prices and market quotes. · Corporate bonds and other bonds are valued based on market quotes. · Cash is stated at nominal value which equals the fair value. · U.S. Treasury money market funds as well as other money market and mutual funds are valued at their market price. Plan investment policy and strategy in the U.S. The Company periodically reviews the assumption for long-term expected return on pension plan assets. As part of the assumptions review, a range of reasonable expected investment returns for the pension plan as a whole was determined based on an analysis of expected future returns for each asset class weighted by the allocation of the assets. The range of returns developed relies both on forecasts, which include the actuarial firm's expected long-term rates of return for each significant asset class or economic indicator, and on broad-market historical benchmarks for expected return, correlation, and volatility for each asset class. The Company´s overall investment strategy is to achieve a mix of approximately 99% of investments for long-term growth and income and 1% in cash or cash equivalents. Investment income and cash or cash equivalents are used for near-term benefit payments. Investments are governed by the plan investment policy and include well diversified index funds or funds targeting index performance. The plan investment policy, utilizing a revised target investment allocation in a range around 26% equity and 74% fixed income investments, considers that there will be a time horizon for invested funds of more than 5 years. The total portfolio will be measured against a custom index that reflects the asset class benchmarks and the target asset allocation. The plan investment policy does not allow investments in securities of the Company or other related party securities. The performance benchmarks for the separate asset classes include: S&P 500 Index, S&P 400 Mid-Cap Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Index, Barclays Capital Long-Corporate Bond Index, Bloomberg Barclays U.S. Corporate High Yield Index, and Bloomberg Barclays U.S. High Yield Fallen Angel 3% Capped Index. Defined contribution plans Most FMCH employees are eligible to join a 401(k) savings plan. Employees can deposit up to 75% of their pay up to a maximum of $19.5 (€15.9) if under 50 years old ($26.0 (€21.2) if 50 or over) under this savings plan. The Company will match 50% of the employee deposit up to a maximum Company contribution of 3% of the employee’s pay. The Company’s total expense under this defined contribution plan for the years ended December 31, 2020, 2019, and 2018, was €64,855, €53,290 and €53,872 respectively. Additionally, the Company contributed for the years ended December 31, 2020, 2019, and 2018 €28,096, €25,950 and €24,721 to state pension plans. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' equity | |
Shareholders' equity | 17. Shareholders' equity Capital stock At December 31, 2020, the Company’s share capital consists of 292,876,570 bearer shares without par value ( Stückaktien ) and a nominal value of €1.00 each. The Company’s share capital has been fully paid in. The General Partner of FMC-AG & Co. KGaA, Fresenius Medical Care Management AG, Hof an der Saale, is not obliged to make a capital contribution and has not made a capital contribution. It does not participate in the profits and losses or in the assets of the Company. Under the Company’s Articles of Association, the General Partner receives for the management of the Company and the assumption of liability as general partner an annual remuneration independent of profit and loss in the amount of 4% of its share capital (see note 5 d). The General Partner is also reimbursed for any and all expenses in connection with management of the Company's business, which include remuneration of the members of its Management Board and its Supervisory Board. Pursuant to Sections 33 and 34 of the German Securities Trading Act (“WpHG”) any party subject to the notification requirement shall notify the Company when certain mandatory reportable thresholds for voting rights, also by taking into account the attribution provisions, are reached, exceeded or fallen below. Section 38 WpHG also stipulates a notification requirement when certain thresholds are reached, exceeded or have fallen below through directly or indirectly held instruments and also, according to Section 39 WpHG when certain thresholds are reached, exceeded or have fallen below through the addition of voting rights according to Section 33 WpHG and instruments according to Section 38 WpHG. Notifications received by the Company subject to the notification requirements were published in accordance with the applicable legal provisions, including publication in the Investors section of the Company's website at www.freseniusmedicalcare.com. In a notification dated February 8, 2011, Fresenius SE disclosed to the Company pursuant to Section 21 of the WpHG at the date of notification (predecessor provision to Section 33 of the WpHG) that it held 35.74% of the voting rights in FMC-AG & Co. KGaA. At December 31, 2020, Fresenius SE held 32.2% of the Company’s voting rights. In addition, Fresenius SE is the sole stockholder of the General Partner. On December 21, 2020, Artisan Partners Asset Management Inc., Wilmington, DE, U.S., also on behalf of attributed subsidiaries, disclosed pursuant to Section 33, 34 of the WpHG that 3.07% of the voting rights of FMC-AG & Co. KGaA were held as of December 14, 2020. On December 21, 2020, Harris Associates L.P., Wilmington, DE, U.S., also on behalf of attributed subsidiaries, disclosed pursuant to Section 33, 34 of the WpHG that 3.08% of the voting rights of FMC-AG & Co. KGaA were held as of December 15, 2020. On April 3, 2020, BlackRock, Inc., Wilmington, DE, U.S., ("BlackRock") also on behalf of attributed subsidiaries, disclosed pursuant to Section 33, 34 of the WpHG that 3.12% of the voting rights of FMC-AG & Co. KGaA and instruments relating to 0.32% of the voting rights of FMC-AG & Co. KGaA were held as of March 30, 2020. The general meeting of a partnership limited by shares may approve Authorized Capital ( genehmigtes Kapital ). The resolution creating Authorized Capital requires the affirmative vote of a majority of three quarters of the capital represented at the vote and may authorize the General Partner and its Management Board to issue new shares up to a stated amount for a period of up to five years. The nominal value of any proposed increase of the Authorized Capital may not exceed half of the issued capital stock at the time of the authorization. In addition, the general meeting of a partnership limited by shares may create Conditional Capital ( bedingtes Kapital ) for the purpose of issuing (i) new shares to holders of convertible bonds or other securities which grant a right to shares, (ii) new shares as the consideration in a merger with another company, or (iii) new shares offered to management or employees. In each case, the authorizing resolution requires the affirmative vote of a majority of three quarters of the capital represented at the vote. The nominal value for any proposed increase of the Conditional Capital may not exceed half or, in the case of Conditional Capital created for the purpose of issuing shares to management and employees, 10% of the Company’s issued capital at the time of the resolution. All resolutions increasing the capital of a partnership limited by shares also require the consent of the General Partner in order for the resolutions to go into effect. The subscribed capital comprised solely ordinary shares due to the conversion of all outstanding preference shares into ordinary shares (approved at FMC-AG & Co. KGaA's Annual General Meeting and Preference Shareholder Meeting held on May 16, 2013) as well as the options associated with the preference shares on a 1:1 basis. Authorized capital By resolution of the Company’s Annual General Meeting (“AGM”) on August 27, 2020, the General Partner was authorized, with the approval of the Supervisory Board, to increase, on one or more occasions, the Company’s share capital until August 26, 2025 up to a total of €35,000 through issue of new bearer ordinary shares for cash contributions, “Authorized Capital 2020/I”. The newly issued shares may also be taken up by a credit and/or financial institution or a consortium of such credit and/or financial institutions retained by the General Partner with the obligation to offer them to the shareholders of the Company. The General Partner is entitled, subject to the approval of the supervisory board, to exclude the pre-emption rights of the shareholders. However, such an exclusion of pre-emption rights will be permissible only for fractional amounts. No Authorized Capital 2020/I has been issued at December 31, 2020. In addition, by resolution of the AGM on August 27, 2020, the General Partner was authorized, with the approval of the Supervisory Board, to increase, on one or more occasions, the share capital of the Company until August 26, 2025 up to a total of €25,000 through the issue of new bearer ordinary shares for cash contributions or contributions in kind, “Authorized Capital 2020/II”. The new shares can also be obtained by a credit and/or financial institution or a consortium of such credit and/or financial institutions retained by the General Partner with the obligation to offer the shares to the Company’s shareholders for subscription. The General Partner is entitled, subject to the approval of the Supervisory Board, to exclude the pre-emption rights of the shareholders. However, such exclusion of pre-emption rights will be permissible only if (i) in case of a capital increase against cash contributions, the nominal value of the issued shares does not exceed 10% of the nominal share value of the Company’s share capital and the issue price for the new shares is at the time of the final determination by the General Partner not significantly lower than the stock price of the existing listed shares of the same class and with the same rights or, (ii) in case of a capital increase against contributions in kind, the purpose of such increase is to acquire an enterprise, parts of an enterprise, interest in an enterprise or other assets. No Authorized Capital 2020/II has been issued at December 31, 2020. Authorized Capital 2020/I and Authorized Capital 2020/II became effective upon registration with the commercial register of the local court in Hof an der Saale on September 23, 2020. Conditional capital By resolution of the Company’s AGM on May 12, 2011, the Company’s share capital was conditionally increased with regards to the Stock Option Plan 2011 (“2011 SOP”) by up to €12,000 subject to the issue of up to 12 million no par value bearer ordinary shares with a nominal value of €1.00 each (“Conditional Capital 2011/I”), (see note 20). The Conditional Capital increase is only executed to the extent subscription rights were awarded under the 2011 SOP, the holders of the subscription rights exercise their right and the Company does not use treasury shares to fulfill the subscription rights, with each stock option awarded exercisable for one ordinary share (see note 20). The Company has the right to deliver ordinary shares that it owns or purchases in the market in lieu of increasing capital by issuing new shares. At December 31, 2020, 3,201,074 options remained outstanding with a remaining average term of 2.35 years under the 2011 SOP. For the year ending December 31, 2020, 234,796 options had been exercised under the 2011 SOP (see note 20). Conditional capital at December 31, 2020 was €9,494 in total, all relating to the 2011 SOP (see note 20). A total of 234,796 shares were issued out of Conditional Capital 2011/I during 2020 (2019: 328,996 shares), increasing the Company’s capital stock by €235 (2019: €329). Treasury stock By resolution of the Company’s AGM on May 12, 2016, the General Partner is authorized to purchase treasury shares up to a maximum amount of 10% of the registered share capital existing at the time of this resolution (€30,537). The Company announced this authorization on May 12, 2016. The shares acquired, together with other treasury shares held by the Company or attributable to the Company pursuant to sections 71a et seqq. AktG, must at no time exceed 10% of the registered share capital. The purchases were authorized to be made through the stock exchange, by way of a public tender offer, or a public invitation to shareholders to submit an offer for sale. This authorization may not be used for the purpose of trading in treasury shares. The General Partner is authorized to use treasury shares purchased on the basis of this authorization or any other earlier authorization for any legally permissible purpose, in particular (i) to redeem shares without requiring any further resolution by the General Meeting, (ii) to sell treasury shares to third parties against contributions in kind, (iii) to award treasury shares, in lieu of the utilization of conditional capital of the Company, to employees of the Company and companies affiliated with the Company, including members of the management of affiliated companies, and use them to service options or obligations to purchase shares of the Company, and (iv) to use treasury shares to service bonds carrying warrant and/or conversion rights or conversion obligations issued by the Company or companies affiliated with the Company pursuant to section 17 AktG. On the basis of the authorization granted by the Company’s AGM on May 12, 2016 to conduct a share buy-back program, on March 11, 2019, the Company announced a program to purchase up to 6.000,000 ordinary shares for an aggregate purchase amount of up to €330,000. Pursuant to this program, which expired on May 10, 2019, the Company repurchased 3,770,772 treasury shares in the period from March 12, 2019 up to and including May 10, 2019 for an average weighted stock price of €71.55 per share for the purpose of capital reduction. Pursuant to the May 12, 2016 AGM authorization, on June 14, 2019, the Company announced a program to purchase up to 12,000,000 shares for an aggregate purchase amount of up to €660,000. Pursuant to this program, the Company repurchased 10,795,151 treasury shares in the period from June 17, 2019 up to and including April 1, 2020 for an average weighted stock price of €63,50 per share for the purpose of capital reduction. Following the purchases in April 2020, a total of 14,879,979 ordinary shares remained to be purchased pursuant to the authorization granted at the 2016 AGM. On December 11, 2020, these repurchased shares were retired, together with the remaining 999,951 treasury shares acquired in 2013, in order to decrease the Company’s share capital. The repurchased shares acquired pursuant to the program that expired on May 10, 2019 were retired in 2019. As of December 31, 2020, the Company did not hold treasury shares. The authorization granted by the AGM resolution of May 12, 2016 will expire on May 11, 2021. The Company does not intend to make further share repurchases pursuant to such authorization prior to its expiration. The following tabular disclosure provides the number of shares acquired in the context of the share buy-back programs as well as the repurchased 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 (1) shares in € in € THOUS December 31, 2017 65.63 1,659,951 108,931 Purchase of Treasury Stock May 2018 86.69 173,274 15,020 June 2018 86.14 257,726 22,201 Repurchased Treasury Stock 86.37 431,000 37,221 Retirement of repurchased Treasury Stock December 2018 87.23 1,091,000 95,159 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 April 2020 63.07 694,813 43,824 Repurchased Treasury Stock 64.35 5,687,473 365,988 Retirement of repurchased Treasury Stock December 2020 62.44 11,795,102 736,490 TOTAL — — — (1) All shares purchased between May 12, 2016 and April 1, 2020 were purchased pursuant to the share purchase program authorized by the AGM resolution of May 12, 2016. The Company did not purchase any shares other than pursuant to such program. (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 a lower number of shares purchased, resulted in a particularly high average price per share for the month. Additional paid-in capital Additional paid-in capital is comprised of the premium paid on the issue of shares and stock options, the tax effects from stock options, the compensation expense from stock options, which is recognized according to IFRS 2 as well as changes in ownership interest in a subsidiary that does not result in a loss of control. Retained earnings Retained earnings is comprised of earnings generated by group entities in prior years to the extent that they have not been distributed as well as changes of the put option liabilities. Dividends Under German law, the amount of dividends available for distribution to shareholders is based upon the unconsolidated retained earnings of the Company as reported in its balance sheet determined in accordance with the German Commercial Code ( Handelsgesetzbuch ). Cash dividends of €351,170 for 2019 in the amount of €1.20 per share were paid on September 1, 2020. Cash dividends of €354,636 for 2018 in the amount of €1.17 per share were paid on May 21, 2019. Cash dividends of €324,838 for 2017 in the amount of €1.06 per share were paid on May 23, 2018. Noncontrolling interests Noncontrolling interests represent the proportion of the net assets of consolidated subsidiaries owned by minority shareholders. The Company has purchase obligations under put options held by the holders of noncontrolling interests in certain of its subsidiaries. These obligations result from contractual put options and are exercisable by the owners of the noncontrolling interests. In addition to noncontrolling interests, the related potential obligations under these put options are reclassified from equity of the Company, with no impact to the income statement, and recognized as a put option liability at the present value of the exercise price of the options in other current or non-current liabilities. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2020 | |
Capital management | |
Capital management | 18. Capital management The principle objectives of the Company’s capital management strategy are to optimize the weighted average cost of capital and to achieve a balanced mix of total equity and debt. The dialysis industry, in which the Company has a strong market position in global, growing and largely non-cyclical markets, is characterized by stable cash flows. Due to the Company’s payors’ mostly high credit quality, it is able to generate high, stable, predictable and sustainable cash flows. These generated cash flows allow a reasonable proportion of debt. As of December 31, 2020 and December 31, 2019, total equity and debt were as follows: Total equity, debt and total assets in € THOUS 2020 2019 Total equity including noncontrolling interests 12,331,310 13,227,237 Debt and lease liabilities 12,380,017 13,782,448 Total assets 31,689,036 32,934,735 Debt and lease liabilities in % of total assets 39.1 % 41.8 % Total equity in % of total assets (equity ratio) 38.9 % 40.2 % The Company is not subject to any capital requirements provided for in its Articles of Association. The Company has obligations to issue shares out of the conditional capital relating to the exercise of stock options on the basis of the existing 2011 SOP stock option plan (see note 20). In 2020 and 2019, the Company conducted a share buy-back program. The repurchased shares were used solely to either reduce the registered share capital of the Company by cancellation of the acquired shares or to fulfill employee participation programs (see note 17). Assuring financial flexibility is a top priority in the Company’s financing strategy. This flexibility is achieved through a high degree of diversification of tenors, investors and banks. The Company’s maturity profile displays a broad spread of maturities with a high proportion of medium and long-term financings. In the choice of financing instruments market capacity, investor diversification, financing conditions and the existing maturity profile are taken into account (see note 14). 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. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share | |
Earnings per share | 19. Earnings per share The following table contains reconciliations of the numerators and denominators of the basic and diluted earnings per share computations for 2020, 2019 and 2018: Reconciliation of basic and diluted earnings per share in € THOUS, except share and per share data 2020 2019 2018 Numerator: Net income attributable to shareholders of FMC-AG & Co. KGaA 1,164,377 1,199,619 1,981,924 Denominators: Weighted average number of shares outstanding 294,055,525 302,691,397 306,541,706 Potentially dilutive shares 223,429 57,892 684,681 Basic earnings per share 3.96 3.96 6.47 Diluted earnings per share 3.96 3.96 6.45 |
Share-based plans
Share-based plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based plans | |
Share-based plans | 20. Share-based plans The Company accounts for its share-based plans in accordance with IFRS 2 and has as of December 31, 2020, various share-based compensation plans, which may either be equity- or cash-settled. Fresenius Medical Care AG & Co. KGaA long-term incentive plans during 2016–2020 (“Performance Shares”) As of May 11, 2016, the issuance of stock options and Phantom Stock under the Fresenius Medical Care AG & Co. KGaA Long Term Incentive Program 2011 (“LTIP 2011”) terminated. Furthermore, as of January 1, 2019 the issuance of Performance Shares under the Fresenius Medical Care AG & Co. KGaA Long Term Incentive Plan 2016 (“LTIP 2016”) terminated. Additionally, the Management Board has approved and adopted the Fresenius Medical Care AG & Co. KGaA NxStage Long Term Incentive Plan (“NxStage LTIP”) for the management board and managerial staff members of NxStage in the course of the integration of NxStage into the Company. A grant has been made once in 2019. Furthermore, as of January 1, 2020 the issuance of Performance Shares under the Fresenius Medical Care Management Board Long Term Incentive Plan 2019 (“MB LTIP 2019”) is no longer possible. In order to continue to enable the members of the Management Board, the members of the management boards of affiliated companies and managerial staff members to adequately participate in the long-term, sustained success of the Company, successor programs were introduced. For members of the Management Board, the Supervisory Board of Management AG has approved and adopted the Fresenius Medical Care Management Board Long Term Incentive Plan 2020 (“MB LTIP 2020”) effective January 1, 2020. For the members of the management boards of affiliated companies and managerial staff members, the Management Board has approved and adopted the Fresenius Medical Care AG & Co. KGaA Long Term Incentive Plan 2019 (“LTIP 2019”) effective January 1, 2019. The LTIP 2016, the NxStage LTIP, the MB LTIP 2019, the LTIP 2019 and the MB LTIP 2020 are each variable compensation programs with long-term incentive effects which grant or granted so-called “Performance Shares”. Performance Shares are non-equity, cash-settled virtual compensation instruments which may entitle plan participants to receive a cash payment depending on the achievement of pre-defined performance targets further defined below as well as the Company’s share price development. The following table provides an overview of these plans. MB LTIP 2020 LTIP 2019 MB LTIP 2019 NxStage LTIP LTIP 2016 Eligible persons Members of the Other Plan Members of the Other Plan Members of the Grant in the years 2020–2023 2019–2021 2019 2019 2016–2018 Months in which a November (2020), (1) July, December July, December February July, December (1) If the appointment as a member of the Management Board comes into effect after the regular grant date in March, the grant date may differ. For members of the Management Board, the Supervisory Board of Management AG will, in due exercise of its discretion and taking into account the individual responsibility and performance of each Management Board member, determine an initial value for each grant for any awards to Management Board members. For plan participants other than the members of the Management Board, such determination will be made by the Management Board. The initial grant value is determined in the currency in which the respective participant receives his or her base salary at the time of the grant. In order to determine the number of Performance Shares each plan participant receives, the respective grant value will be divided by the value per Performance Share at the time of the grant, which is mainly determined based on the average price of the Company’s shares over a period of thirty calendar days prior to the respective grant date. The number of granted Performance Shares may change over the performance period of three years, depending on the level of achievement of the following: (i) revenue growth at constant currency (“Revenue Growth”), (ii) growth of the net income attributable to the shareholders of FMC-AG & Co. KGaA at constant currency (“Net Income Growth”) and (iii) return on invested capital (“ROIC”). For the LTIP 2019 exclusively, the level of achievement for Performance Shares granted in year 2019 may be subject to an increase if certain targets in relation to the second phase of the Company’s Global Efficiency Program (“GEP-II targets”) and in relation to the Free Cash Flow (“Free Cash Flow target”) are achieved. Revenue, net income and ROIC are determined according to the Company’s consolidated reported and audited figures in Euro for the financial statements prepared in accordance with IFRS, applying the respective plan terms. Revenue Growth, Net Income Growth and the fulfillment of the GEP-II targets, for the purpose of the relevant plan, are determined at constant currency. The performance targets to be applied for the fiscal year for Performance Shares granted in the fiscal year under the MB LTIP 2020 and under the LTIP 2019 are presented in the table below. Growth/ROIC Target achievement Weight Performance target 1: ≤ 1% 0% Revenue Growth 6% 100% 1/3 ≥ 11% 200% Performance target 2: ≤ 0% 0% Net Income Growth 5% 100% 1/3 ≥ 10% 200% Performance target 3: ≤ 5.5% 0% ROIC 6% 100% 1/3 ≥ 6.5% 200% If Revenue Growth, Net Income Growth or ROIC range between these values, the respective degree of target achievement will be linearly interpolated between these values. For Performance Shares granted throughout 2016 to 2019, an annual target achievement level of 100% will be reached for the Revenue Growth performance target if Revenue Growth is 7% in each individual year of the three-year performance period; Revenue Growth of 0% will lead to a target achievement level of 0% and the maximum target achievement level of 200% will be reached in case of Revenue Growth of at least 16%. If Revenue Growth ranges between these values, the degree of target achievement will be linearly interpolated between these values. For Performance Shares granted throughout 2016 to 2019, an annual target achievement level of 100% for the Net Income Growth performance target will be reached if Net Income Growth is 7% in each individual year of the three-year performance period. In case of Net Income Growth of 0%, the target achievement level will also be 0%; the maximum target achievement of 200% will be reached in the case of Net Income Growth of at least 14%. Between these values, the degree of target achievement will be determined by means of linear interpolation. For ROIC, an annual target achievement level of 100% will be reached if the target ROIC as defined for the applicable year is reached. For Performance Shares granted throughout 2016 to 2019, the target ROIC is 7.3% for 2016, 7.5% for 2017, 7.7% for 2018, 7.9% for 2019 and 8.1% for 2020. A target achievement level of 0% will be reached if the ROIC falls below the target ROIC for the applicable year by 0.2 percentage points or more, whereas the maximum target achievement level of 200% will be reached if the target ROIC for the respective year is exceeded by 0.2 percentage points or more. The degree of target achievement will be determined by means of linear interpolation if the ROIC ranges between these values. In case the annual ROIC target achievement level in the third year of a performance period for Performance Shares granted throughout years 2016 to 2019 is equal to or higher than the ROIC target achievement level in each of the two previous years of such performance period, the ROIC target achievement level of the third year is deemed to be achieved for all years of the applicable performance period. For all plans, the achievement level for each of the three performance targets will be weighted annually at one-third to determine the yearly target achievement for each year of the three-year performance period. The level of overall target achievement over the three-year performance period will then be determined on the basis of the mean of these three average yearly target achievements. The overall target achievement can be in a range of 0% to 200%. For Performance Shares granted in fiscal year 2019 under the LTIP 2019, the overall target achievement shall be increased by 20 percentage points if the GEP-II targets achievement is 100%. Furthermore, the overall target achievement for Performance Shares granted in year 2019 under the LTIP 2019 shall be increased by 20 percentage points if the Free Cash Flow target achievement is 200%. In case of a GEP-II targets achievement between 0% and 100% and a Free Cash Flow target achievement between 0% and 200%, the increase of the overall target achievement will be calculated by means of linear interpolation. The overall target achievement shall not exceed 200%. The number of Performance Shares granted to the plan participants at the beginning of the performance period will each be multiplied by the level of overall target achievement in order to determine the final number of Performance Shares. For the MB LTIP 2020, the final number of Performance Shares is generally deemed earned three years after the day of a grant. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty calendar days prior to the lapse of this vesting period. The respective resulting amount, which is capped in total at an amount equaling 400% of the grant value received by the participant, less taxes and contributions is paid over to a credit institution which uses it for the purchase of shares of the Company on the stock exchange. The shares acquired in this way are subject to a holding period of at least one year. For plan participants of the LTIP 2019, the final number of Performance Shares is generally deemed earned three years after the day of a respective grant. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty calendar days prior to the lapse of this vesting period. The respective resulting amount, which is capped in total at an amount equaling 400% of the grant value received by the participant, will then be paid to the plan participants as cash compensation. For the MB LTIP 2019, the final number of Performance Shares is generally deemed earned four years after the day of a respective grant. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty calendar days prior to the lapse of this vesting period. The resulting amount will then be paid to the plan participants as cash compensation. For plan participants of the NxStage LTIP, the final number of Performance Shares granted in February 2019 is generally deemed earned in December 2022. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty calendar days prior to the lapse of this vesting period. The resulting amount will then be paid to the plan participants as cash compensation. For plan participants of the LTIP 2016, the final number of Performance Shares is generally deemed earned four years after the day of a grant. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty calendar days prior to the lapse of this vesting period. The resulting amount will then be paid to the plan participants as cash compensation. During 2020, the Company awarded 159.607 Performance Shares under the MB LTIP 2020 at a measurement date weighted average fair value of €64.20 each and a total fair value of €10,247, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2020, the Company awarded 800,165 Performance Shares under the LTIP 2019 at a measurement date weighted average fair value of €64.06 each and a total fair value of €51,259, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2019, the Company awarded 114,999 Performance Shares under the MB LTIP 2019 at a measurement date weighted average fair value of €60.70 each and a total fair value of €6,980, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2019, the Company awarded 817,089 Performance Shares under the LTIP 2019 at a measurement date weighted average fair value of €62.16 each and a total fair value of €50,790, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2019, the Company awarded 55,978 Performance Shares under the NxStage LTIP at a measurement date weighted average fair value of €62.17 each and a total fair value of €3,480, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2018, the Company awarded 632,804 Performance Shares under the LTIP 2016 including 73,315 Performance Shares to the members of the Management Board at a measurement date weighted average fair value of €51.99 each and a total fair value of €32,900, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. Fresenius Medical Care AG & Co. KGaA long-term incentive program 2011 (stock options and “Phantom Stock”) On May 12, 2011, the 2011 SOP was established by resolution of the Company’s AGM. The 2011 SOP, together with the Phantom Stock Plan 2011, which was established by resolution of the General Partner’s Management and supervisory boards, forms the Company’s LTIP 2011. Under the LTIP 2011, participants were granted awards, which consisted of a combination of stock options and Phantom Stock. The final grant under the LTIP 2011 was made in December 2015. Awards under the LTIP 2011 were subject to a four-year vesting period. Vesting of the awards granted was subject to achievement of pre-defined performance targets. The 2011 SOP was established with a conditional capital increase up to €12,000 subject to the issue of up to twelve million non-par value bearer ordinary shares with a nominal value of €1.00 per share. Stock options granted under the LTIP 2011 have an eight-year term and can be exercised for the first time after a four-year vesting period. The exercise price of stock options granted under the LTIP 2011 shall be the average stock exchange price on the Frankfurt Stock Exchange of the Company’s shares during the 30 calendar days immediately prior to each grant date. Stock options granted under the LTIP 2011 to U.S. participants are non-qualified stock options under the United States Internal Revenue Code of 1986, as amended. Stock options under the LTIP 2011 are not transferable by a participant or a participant’s heirs, and may not be transferred, pledged, assigned, or disposed of otherwise. Phantom Stock awards under the LTIP 2011 entitled the holders to receive payment in euro from the Company upon exercise of the Phantom Stock. The payment per Phantom Stock in lieu of the issuance of such stock was based upon the share price on the Frankfurt Stock Exchange of one of the Company’s shares on the exercise date. Phantom Stock awards had a five-year term and could be exercised for the first time after a four-year vesting period. For participants who were U.S. taxpayers, the Phantom Stock was deemed to be exercised in any event in the month of March following the end of the vesting period. New incentive bonus plan Since January 1, 2020 and under the Company’s new compensation system, the issuance of awards under the New Incentive Bonus Plan (“NIBP”) is no longer possible. In 2019, the members of the Management Board were eligible for performance-related compensation that depended upon achievement of pre-defined targets. The targets were measured based on the adjusted net income growth attributable to the shareholders of FMC-AG & Co. KGaA at constant currency (”Adjusted Net Income Growth“), adjusted net cash provided by (used in) operating activities after capital expenditures, before acquisitions and investments (“Adjusted Free Cash Flow”) in percent of revenues and adjusted operating margin (“Adjusted Operating Margin“), and were derived from the comparison of targeted and actually achieved figures. Targets were divided into Company level targets and those to be achieved in individual regions and areas of responsibility. Performance-related bonuses for 2019 consisted proportionately of a cash component and a cash-settled share-based component. Upon meeting the annual targets, the cash component for the year 2019 was paid in year 2020, after the consolidated financial statements for 2019 had been approved. The share-based component is subject to a three-year vesting period, although a shorter period may apply in special cases (e.g. occupational disability, retirement and employment contracts which were not extended by the Company). The amount of cash for the payment relating to the share-based component shall be based on the share price of Fresenius Medical Care AG & Co. KGaA ordinary shares upon exercise. For each of the members of the Management Board, the amount of the achievable pay component as well as of the allocation value of the cash-settled share-based compensation was capped. Share-based compensation related to this plan for fiscal years ended 2020, 2019 and 2018 was €0, €2,623 and €3,414, respectively. Information on holdings under share-based plans At December 31, 2020 and 2019, the members of the Management Board and plan participants other than the members of the Management Board held the following Performance Shares under the share-based plans: Performance Shares 2020 2019 Members of the Members of the Management Other plan Management Other plan Board participants Total Board participants Total MB LTIP 2020 159,607 — 159,607 — — — LTIP 2019 8,869 1,522,102 1,530,971 — 797,659 797,659 MB LTIP 2019 102,435 12,564 114,999 102,435 12,564 114,999 NxStage LTIP — 40,530 40,530 — 45,007 45,007 LTIP 2016 135,473 947,133 1,082,606 211,878 1,747,142 1,959,020 Additionally, at December 31, 2020, the members of the Management Board held 465,308 stock options (December 31, 2019: 452,989) and plan participants other than the members of the Management Board held 2,735,766 stock options (December 31, 2019: 3,036,000) under the 2011 SOP. Members of the Management Board did not hold any Phantom Stock under the LTIP 2011 as of December 31, 2020 (December 31, 2019: 23,336). Plan participants other than the members of the Management Board also did not hold any Phantom Stock under the LTIP 2011 as of December 31, 2020 (December 31, 2019: 311,650). Additional information on share-based plans The table below provides reconciliations for stock options outstanding at December 31, 2020, as compared to December 31, 2019 and 2018. Transactions Weighted average exercise Options price Stock options for shares (in thousands) € Balance at December 31, 2018 3,896 68.85 Granted — — Exercised (1) 329 51.72 Forfeited 78 75.08 Balance at December 31, 2019 3,489 70.32 Granted — — Exercised (2) 235 53.00 Expired 53 75.65 Balance at December 31, 2020 3,201 71.50 (1) The average share price at the date of exercise of the options was €67.62. (2) The average share price at the date of exercise of the options was €71.75. The following tables provide a summary of fully vested options outstanding and exercisable at December 31, 2020 and December 31, 2019, respectively: Stock options 2020 Outstanding Exercisable Weighted Weighted Weighted Range of average average average exercise Number remaining exercise Number exercise prices of contractual price of price in € options life in € options in € 45.01 - 50.00 630,870 1.44 49.91 630,870 49.91 50.01 - 55.00 — — — — — 55.01 - 60.00 31,080 1.92 58.63 31,080 58.63 60.01 - 65.00 — — — — — 65.01 - 70.00 — — — — — 70.01 - 75.00 — — — — — 75.01 - 80.00 2,539,124 2.58 77.03 2,539,124 77.03 3,201,074 2.35 71.50 3,201,074 71.50 Stock options 2019 Outstanding Exercisable Weighted Weighted Weighted Range of average average average exercise Number remaining exercise Number exercise prices of contractual price of price in € options life in € options in € 45.01 - 50.00 767,001 2.38 49.90 767,001 49.90 50.01 - 55.00 825 0.93 52.27 825 52.27 55.01 - 60.00 133,375 1.24 57.68 133,375 57.68 60.01 - 65.00 — — — — — 65.01 - 70.00 — — — — — 70.01 - 75.00 — — — — — 75.01 - 80.00 2,587,788 3.58 77.03 2,587,788 77.03 3,488,989 3.23 70.32 3,488,989 70.32 During the fiscal years ended December 31, 2020, 2019, and 2018, the Company received cash of €12,445, €17,014 and €43,508, respectively, from the exercise of stock options (see note 17). The intrinsic value of stock options exercised for the twelve-month periods ended December 31, 2020, 2019, and 2018 was €4,402, €5,231and €29,440, respectively. The compensation expense related to equity-settled stock option programs was determined based upon the fair value on the grant date and the number of stock options granted which was recognized over the four-year vesting period. In connection with the 2011 SOP, the Company incurred compensation expense of €0, €1,992 and €6,713 for the fiscal years ended December 31, 2020, 2019 and 2018, respectively. The compensation expense related to cash-settled share-based payment transactions is determined based upon the fair value at the measurement date and the number of Phantom Stock or Performance Shares granted which will be recognized over the vesting period. The compensation expense that the Company recognized for Performance Shares for the fiscal years ended December 31, 2020, 2019 and 2018, respectively, is presented in the table below. Compensation expense related to cash-settled plans in € THOUS 2020 2019 2018 MB LTIP 2020 2,115 — — LTIP 2019 13,689 4,771 — MB LTIP 2019 820 656 — NxStage LTIP 513 572 — LTIP 2016 21,864 30,304 4,152 LTIP 2011 1,894 5,724 (8,799) Care Coordination stock incentive plans In 2014, the Company established a subsidiary stock incentive plan for Sound. The Company divested its controlling interest in Sound on June 28, 2018 (see note 4 c) for information). For the years ended December 31, 2020 and 2019, the Company did not record stock compensation expense associated with the Sound subsidiary stock incentive plan (2018: €87,157). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 21. Leases The Company leases land, buildings and improvements, machinery and equipment, as well as IT- and office equipment under various lease agreements. Leasing in the consolidated statements of income The following table shows the effects from lease agreements on the consolidated statements of income for the year ended December 31, 2020 and 2019: Leasing in the consolidated statements of income in € THOUS 2020 2019 Depreciation on right-of-use assets 703,999 700,276 Impairments on right-of-use assets 3,496 38,820 Expenses relating to short-term leases 49,532 52,108 Expenses relating to leases of low-value assets 27,359 25,239 Expenses relating to variable lease payments 12,442 10,814 Income from subleasing right-of-use assets 4,165 4,367 Interest expense on lease liabilities 159,148 171,724 For information regarding leases with related parties, see note 5 b). Leases in the consolidated balance sheets At December 31, 2020 and 2019, the acquisition costs and the accumulated depreciation of right-of-use assets consisted of the following: Acquisition costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Additions Reclassi- fications Disposals 2020 Right-of-use assets: Land 30,575 (2,240) (24) 6,384 98 (283) 34,510 Right-of-use assets: Buildings and improvements 4,590,695 (375,099) (12,391) 851,392 (613) (36,199) 5,017,785 Right-of-use assets: Machinery and equipment 434,718 (34,013) (1,346) 34,066 (35,189) (7,334) 390,902 Right-of-use assets: Advance Payments 24 — — 138 (58) (104) — Right-of-use assets 5,056,012 (411,352) (13,761) 891,980 (35,762) (43,920) 5,443,197 Acquisition costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2019 translation group Additions Reclassi- fications Disposals 2019 Right-of-use assets: Land 28,717 447 (14) 2,300 512 (1,387) 30,575 Right-of-use assets: Buildings and improvements 3,840,380 65,603 (3,577) 694,031 15,074 (20,816) 4,590,695 Right-of-use assets: Machinery and equipment 407,436 7,639 3,257 23,243 18,002 (24,859) 434,718 Right-of-use assets: Advance Payments — — — 24 — — 24 Right-of-use assets 4,276,533 73,689 (334) 719,598 33,588 (47,062) 5,056,012 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2020 translation group Additions loss Reclassi- fications Disposals 2020 Right-of-use assets: Land 4,502 (419) (4) 4,242 — (16) (199) 8,106 Right-of-use assets: Buildings and improvements 613,926 (77,935) (5,319) 604,493 3,496 (304) (18,338) 1,120,019 Right-of-use assets: Machinery and equipment 112,469 (14,229) (88) 95,264 — (2,494) (5,738) 185,184 Right-of-use assets: Advance Payments — — — — — — — — Right-of-use assets 730,897 (92,583) (5,411) 703,999 3,496 (2,814) (24,275) 1,313,309 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2019 translation group Additions loss Reclassi- fications Disposals 2019 Right-of-use assets: Land — 14 (4) 3,936 134 128 294 4,502 Right-of-use assets: Buildings and improvements — (1,364) (1,768) 581,081 38,686 3,424 (6,133) 613,926 Right-of-use assets: Machinery and equipment — (291) (105) 115,259 — 21,930 (24,324) 112,469 Right-of-use assets: Advance Payments — — — — — — — — Right-of-use assets — (1,641) (1,877) 700,276 38,820 25,482 (30,163) 730,897 Book value in € THOUS December 31, December 31, 2020 2019 Right-of-use assets: Land 26,404 26,073 Right-of-use assets: Buildings and improvements 3,897,766 3,976,769 Right-of-use assets: Machinery and equipment 205,718 322,249 Right-of-use assets: Advance Payments — 24 Right-of-use assets 4,129,888 4,325,115 Depreciation expense is allocated within costs of revenue, selling, general and administrative and research and development expenses depending upon the area in which the asset is used. Impairment losses are allocated within costs of revenue and selling, general and administrative expense, depending upon the area in which the asset is used. For a maturity analysis of lease liabilities see note 23. Leasing in the consolidated statements of cash flows Total cash outflows from leases were €951,066 for the year ended December 31, 2020 (€945,169 for the year ended December 31, 2019). Leases that the Company entered into as a lessee that have not yet begun as of December 31, 2020 will result in future cash outflows of €123,679 (December 31, 2019: € 254,171). Potential future cash outflows resulting from purchase options of €41,215 were not reflected in the measurement of the lease liabilities as of December 31, 2020, as the exercise of the respective options is not reasonably certain (December 31, 2019: € 56,507). Potential future cash outflows resulting from extension options of €6,407,955 were not reflected in the measurement of the lease liabilities as of December 31, 2020, as the exercise of the respective options is not reasonably certain (December 31, 2019: €6,691,551). The major part of these potential future cash outflows relates to extension options in real estate lease agreements, primarily for dialysis clinics in the North America Segment. Individual lease agreements include multiple extension options. The Company uses extension options to obtain a high degree of flexibility in performing its business. These extension options held are exercisable solely by the Company. Potential future cash outflows resulting from termination options of €3,374 were not reflected in the measurement of the lease liabilities as of December 31, 2020, as the exercise of the respective options is not reasonably certain (December 31, 2019: € 3,493). |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | 22. 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. On March 29, 2019, the Company entered into a non-prosecution agreement (“NPA”) with the DOJ and a separate agreement with the SEC intended to resolve fully and finally the U.S. government allegations against the Company arising from the investigations. Both agreements included terms starting August 2, 2019. The DOJ NPA is scheduled to terminate on August 2, 2022 and the dismissal of the SEC Order is scheduled to be on November 30, 2022. The Company paid a combined total in penalties and disgorgement of approximately $231,715 (€205,854) 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 resolution, the Company agreed to certain self-reporting obligations and to retain an independent compliance monitor. Due to COVID-19 pandemic restrictions, the monitorship program faced certain delays, but the Company is working to have all its obligations under the resolution with the DOJ and SEC finalized in 2022. 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 United States 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. On October 30, 2020, Mexico’s primary social security and health care agency filed a civil complaint in the United States District Court for the District of Massachusetts (Boston) asserting claims for common law fraud against the Company and FMCH. 2020 Civ. 11927-IT (E. D. Mass.). The allegations of the complaint rely on the Company’s resolution under the FCPA. FMCH has been served and is proceeding to defend the litigation, initially by seeking dismissal based on improper venue and lack of jurisdiction. The Company has not been served. Personal injury and related litigation, including litigation by certain state government agencies, involving FMCH's acid concentrate product, labeled as Granuflo® or Naturalyte®, first arose in 2012. The matters remaining after judicial decisions favorable to FMCH and settlement, including most significantly the settlement in the federal multi-district personal injury litigation consummated in November 2017, do not present material risk. Accordingly, specific reporting on these matters has been discontinued. FMCH’s insurers agreed to the settlement of the acid concentrate personal injury litigation and funded $220,000 (€179,284) of the settlement fund under a reciprocal reservation of rights. FMCH accrued a net expense of $60,000 (€48,896) in connection with the settlement, including legal fees and other anticipated costs. Following the settlement, FMCH's insurers in the AIG group initiated litigation against FMCH seeking to be indemnified by FMCH for their $220,000 (€179,284) outlay and FMCH initiated litigation against the AIG group to recover defense and indemnification costs FMCH had borne. National Union Fire Insurance v. Fresenius Medical Care , 2016 Index No. 653108 (Supreme Court of New York for New York County)). Discovery in the litigation is largely complete. The AIG group abandoned certain of its coverage claims and submitted expert reports on damages asserting that, if AIG prevails on all its remaining claims, it should recover $60,000 (€48,896). FMCH contests all of AIG’s claims and submitted expert reports supporting rights to recover $108,000 (€88,012) from AIG, in addition to the $220,000 (€179,284) already funded. A trial date has not been set in the matter. In August 2014, FMCH received a subpoena from the United States Attorney’s Office (“USAO”) 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. On August 27, 2020, after the USAO declined to pursue the matter by intervening, the United States District Court for Maryland unsealed a 2014 relator’s qui tam complaint that gave rise to the investigation. United States ex rel. Martin Flanagan v. Fresenius Medical Care Holdings, Inc., 2014 Civ. 00665 (D. Maryland). The relator has served the complaint and litigation is proceeding. In response to FMCH's motion to dismiss the unsealed complaint, the relator filed an amended complaint on February 5, 2021 making broad allegations about financial relationships between FMCH and nephrologists. 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. With discovery concluded, the State has specified that its demands for relief relate to $7,700 (€6,275) in overpayments on approximately twenty thousand “claims” submitted by Liberty. 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 has been postponed because of COVID-19-related administrative issues and has been rescheduled for January 2022. 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 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 were medically unnecessary 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 (€53,778) 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 believes that this investigation is no longer active as to FMCH and will cease reporting on it absent material developments. 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’s 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. Thereafter, FMCH cooperated in the investigation, the USAO declined to intervene in the relator’s qui tam complaint that gave rise to the subpoena. On July 17, 2020, the relator filed a notice of dismissal without serving his complaint or otherwise pursuing his allegations and the court thereafter closed the case. On April 8, 2019, United Healthcare initiated arbitration against FMCH alleging 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 denied and contested United’s claims. On September 16, 2020, FMCH and United entered a settlement agreement requiring (1) certain amendments to contracts between United and FMCH governing terms and conditions for dialysis treatments to be performed by FMCH for United beneficiaries and (2) dismissal of the arbitrations with each party to bear its own costs and expenses. In consideration of the prolonged absence of federal government activity, changes in administration, and resolution of the United Healthcare dispute, the Company believes that the previously reported matters involving charitable contributions do not present material risk. Accordingly, and absent new material developments, the Company will cease reporting on them. 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 (€53,778) 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 Nashville 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”) (see note 5), 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-MN). 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. 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. The case was settled among the parties, thus terminating the court action on August 4, 2020. On May 26, 2020, VFMCRP filed a further complaint for patent infringement against Lupin in the U.S. District Court for the District of Delaware (Case No. 1:20-cv-00697-MN) in response to Lupin’s ANDA for a generic version of Velphoro® and on the basis of a newly listed patent in the Orange Book. On July 6, 2020, VFMCRP filed an additional complaint for patent infringement against Lupin and Teva in the U.S. District Court for the District of Delaware (Case No. 1:20-cv-00911-MN) in response to the companies’ ANDA for generic versions of Velphoro® and on the basis of two newly listed patents in the Orange Book. All cases involving Lupin as defendant were settled among the parties, thus terminating the corresponding court actions on December 18, 2020. 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. On July 8, 2020, the U.S. government filed its answer (and confirmed their position). The parties will proceed to discovery. The court has not yet set a date for trial in this matter. 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. On May 22, 2020, CMS issued a final rule that, effective January 1, 2021, removes outpatient dialysis facilities from the time-and-distance standards applicable under the network adequacy rules for Medicare Advantage plans. On June 22, 2020, Dialysis Patient Citizens, a charitable patient advocacy organization, filed a lawsuit on behalf of all dialysis patients to challenge that rule, and on July 13, 2020, FMCH along with two other dialysis providers joined the lawsuit. Dialysis Patient Citizens, et al. v. Alex Azar , et al., U.S.D.C. D.C, 1:20-cv-01664. The plaintiffs sought to have the final rule regarding outpatient dialysis facilities vacated and to enjoin CMS from enforcing those provisions. On January 19, 2021, the court granted the defendant's motion to dismiss the case without prejudice. On August 21, 2020, FMCH was served with a subpoena from the United States Attorney for the District of Massachusetts requesting information and documents related to urgent care centers that FMCH owned, operated, or controlled as part of its ChoiceOne and Medspring urgent care operations prior to its divestiture of and exit from that line of business in 2018. The subpoena appears to be related to an ongoing investigation of alleged upcoding in the urgent care industry, which has resulted in certain published settlements under the federal False Claims Act. FMCH is cooperating in the investigation. 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. For further information regarding the Company’s purchase commitments, see note 8 and note 10. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial instruments | |
Financial instruments | 23. Financial instruments The following tables show the carrying amounts and fair values of the Company’s financial instruments at December 31, 2020 and December 31, 2019: Carrying amount and fair value of financial instruments in € THOUS December 31, 2020 Carrying amount Fair value Amortized cost FVPL FVOCI Not classified Total Level 1 Level 2 Level 3 Cash and cash equivalents (1) 781,029 300,510 — — 1,081,539 300,367 143 — Trade accounts and other receivables from unrelated parties 3,080,770 — — 72,275 3,153,045 — — — Accounts receivable from related parties 91,438 — — — 91,438 — — — Derivatives - cash flow hedging instruments — — — 1,130 1,130 — 1,130 — Derivatives - not designated as hedging instruments — 5,367 — — 5,367 — 5,367 — Equity investments — 191,739 56,911 — 248,650 11,911 48,221 188,518 Debt securities — 103,387 297,954 — 401,341 396,392 4,949 — Other financial assets 195,926 — — 108,830 304,756 — — — Other current and non-current assets 195,926 300,493 354,865 109,960 961,244 — — — Financial assets 4,149,163 601,003 354,865 182,235 5,287,266 — — — Accounts payable to unrelated parties 731,993 — — — 731,993 — — — Accounts payable to related parties 95,401 — — — 95,401 — — — Short-term debt 79,270 — — — 79,270 — — — Long-term debt 7,808,460 — — — 7,808,460 6,764,681 1,404,640 — Lease liabilities — — — 4,492,287 4,492,287 — — — Derivatives - cash flow hedging instruments — — — 1,667 1,667 — 1,667 — Derivatives - not designated as hedging instruments — 39,281 — — 39,281 — 39,281 — Variable payments outstanding for acquisitions — 66,359 — — 66,359 — — 66,359 Put option liabilities — — — 882,422 882,422 — — 882,422 Other financial liabilities 1,537,783 — — — 1,537,783 — — — Other current and non-current liabilities 1,537,783 105,640 — 884,089 2,527,512 — — — Financial liabilities 10,252,907 105,640 — 5,376,376 15,734,923 — — — (1) Highly liquid short-term investments are mainly 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 from unrelated parties 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 to unrelated parties 716,526 — — — 716,526 — — — Accounts payable to related parties 118,663 — — — 118,663 — — — Short-term debt 1,171,853 — — — 1,171,853 — — — Long-term debt 7,905,557 — — — 7,905,557 5,555,475 2,537,932 — Lease liabilities — — — 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 Put option liabilities — — — 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 categorized in the following three-tier fair value hierarchy that reflects the significance of the inputs in making the measurements. Level 1 inputs are 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 December 31, 2020. The Company accounts for transfers at the end of the reporting period. At September 30, 2019 the Company transferred its Humacyte investment with a carrying amount of €186,427 from Level 2 to Level 3, because the Company remeasured the fair value using a discounted cash flow model after events or changes in circumstances were identified that had a significant effect on the fair value of the investment. 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 from unrelated parties, 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. All equity investments for which changes in fair value are recorded in OCI relate to purchases of publicly traded shares or percentage ownership of companies in the health sciences or adjacent fields and are made up of individually non-significant investments. At December 31, 2020, the Company held 12 non-listed equity investments (December 31, 2019: 12) and 1 listed equity investment (December 31, 2019: 1). During 2020, gains of €11,385 were transferred from OCI to retained earnings as one investment was disposed of and another was fully consolidated during the year. There were no dividends recognized during 2020 and 2019 from these equity investments. If equity investments 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 Company's listed and non-listed equity investments measured at FVOCI had the following fair values at December 31, 2020 and 2019: Equity investments measured at FVOCI in € THOUS Listed equity investments 11,911 13,110 Non-listed equity investments 45,000 37,865 Equity investments FVOCI 56,911 50,975 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 initially recognized at its fair value. 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. Put option liabilities 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 options. The external valuation estimates the fair values using a combination of discounted cash flows and a multiple of earnings and/or revenue. The put option liabilities 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 these put options can also fluctuate, and the discounted cash flows as well as the implicit multiple of earnings and/or revenue at which these 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 put option liabilities, 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 €63,362 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. At December 31, 2020, 2019 and 2018 the Company's potential obligations under these put option liabilities, which are recorded in other current liabilities and other non-current liabilities, were €882,422, €934,425 and €818,871, respectively. At December 31, 2020, 2019 and 2018, put option liabilities with an aggregate purchase obligation of €395,759, €385,924 and €408,525, respectively, were exercisable. In the last three fiscal years ending December 31, 2020, 231 such put options have been exercised for a total consideration of €98,936. Following is a roll forward of Level 3 financial instruments at December 31, 2020, 2019 and 2018: Reconciliation from beginning to ending balance of level 3 financial instruments in € THOUS 2020 2019 2018 Variable Variable Variable payments payments payments Equity outstanding for Put option Equity outstanding for Put option outstanding for Put option investments acquisitions liabilities investments acquisitions liabilities acquisitions liabilities Beginning balance at January 1, 183,054 89,677 934,425 — 172,278 818,871 205,792 830,773 Transfer from Level 2 — — — 186,427 — — — — Increase — 17,253 51,388 2,233 4,828 109,109 19,051 53,731 Decrease — (35,764) (99,877) — (43,941) (20,269) (15,734) (50,706) Gain / loss recognized in profit or loss (1) 22,489 (1,996) — 128 (41,537) — (36,327) — Gain / loss recognized in equity — — 73,993 — — 14,523 — (48,075) Dividends — — — — — — — — Foreign currency translation and other changes (17,025) (2,811) (77,507) (5,734) (1,951) 12,191 (504) 33,148 Ending balance at December 31, 188,518 66,359 882,422 183,054 89,677 934,425 172,278 818,871 (1) Includes realized and unrealized gains / losses. Derivative financial instruments Derivative financial risks The Company is exposed to effects related to foreign exchange fluctuations in connection with its international business activities that are denominated in various currencies. In order to finance its business operations, the Company issues bonds and enters mainly into long-term credit agreements with banks. Due to these financing activities, the Company is exposed to changes in the interest rate as well as to price risks of balance sheet items with a fixed interest rate. In order to manage the risk of currency exchange rate and interest rate fluctuations, the Company enters into various hedging transactions by means of derivative instruments with highly rated financial institutions (generally investment grade) as authorized by the Company’s General Partner. On a quarterly basis, the Company performs an assessment of its counterparty credit risk. The Company currently considers this risk to be low (as the counterparties are generally investment grade). The Company’s policy, which has been consistently followed, is that financial derivatives be used only for the purpose of hedging foreign currency and interest rate exposure. In certain instances, the Company enters into derivative contracts that do not qualify for hedge accounting but are utilized for economic purposes (“economic hedges”). The Company does not use financial instruments for trading purposes. The Company established guidelines for risk assessment procedures and controls for the use of financial instruments. They include a clear segregation of duties with regard to execution on one side and administration, accounting and controlling on the other. To reduce the credit risk arising from derivatives the Company entered into Master Netting Agreements with banks. Through such agreements, positive and negative fair values of the derivative contracts could be offset against one another if a partner becomes insolvent. This offsetting is valid for transactions where the aggregate amount of obligations owed to and receivable from are not equal. If insolvency occurs, the party which owes the larger amount is obliged to pay the other party the difference between the amounts owed in the form of one net payment. These master netting agreements do not provide a basis for offsetting the fair values of derivative financial instruments in the statement of financial position as the offsetting criteria under IFRS are not satisfied. At December 31, 2020 and December 31, 2019, the Company had €6,452 and €2,108 of derivative financial assets subject to netting arrangements and €40,724 and €12,355 of derivative financial liabilities subject to netting arrangements. Offsetting these derivative financial instruments would have resulted in net assets of €1,192 and €137 as well as net liabilities of €35,464 and €10,384 at December 31, 2020 and December 31, 2019, respectively. The Company calculates benchmarks for individual exposures in order to quantify interest and foreign exchange risks. The benchmarks are derived from achievable and reasonable market rates. Depending on the individual benchmarks, hedging strategies are agreed on and implemented. In connection with the issuance of the Convertible Bonds in September 2014, the Company purchased Share Options. Any change in the Company’s share price above the conversion price would be offset by a corresponding value change in the Share Options. The Share Options expired in November 2019. Market risk Foreign exchange risk management The Company conducts business on a global basis in various currencies, though a majority of its operations are in Germany and the United States. For financial reporting purposes, the Company reports in euro pursuant to Section 315e and Section 244 HGB. Therefore, changes in the rate of exchange between the euro and the local currencies in which the financial statements of the Company’s international operations are maintained, affect its results of operations and financial position as reported in its consolidated financial statements. Additionally, individual subsidiaries are exposed to transactional risks mainly resulting from intercompany purchases between production sites and other subsidiaries with different functional currencies. This exposes the subsidiaries to fluctuations in the rate of exchange between the invoicing currencies and the currency in which their local operations are conducted. For the purpose of hedging existing and foreseeable foreign exchange transaction exposures the Company enters into foreign exchange forward contracts. The notional amounts of foreign exchange contracts in place that are designated and qualify as cash flow hedges totaled €134,637 and €115,263 at December 31, 2020 and December 31, 2019, respectively. At December 31, 2020, the Company had foreign exchange derivatives with maturities of up to 14 months. Earnings of the Company were not materially affected by hedge ineffectiveness in the reporting period since the critical terms of the interest and foreign exchange derivatives matched mainly the critical terms of the underlying exposures. The Company also enters into derivative contracts for forecasted product purchases and sales and for intercompany loans in foreign currencies which do not qualify for hedge accounting but are utilized for economic hedges as defined above. The notional amounts of economic hedges totaled €1,537,416 and €626,585 at December 31, 2020 and December 31, 2019, respectively. The Company uses a Cash-Flow-at-Risk (CFaR) model in order to estimate and quantify transaction risks from foreign currencies. The basis for the analysis of the currency risks are the foreign currency cash flows that are reasonably expected to arise within the following twelve months, less any hedges. Under the CFaR approach, the potential currency fluctuations of these net exposures are shown as probability distributions based on historical volatilities and correlations of the preceding 250 business days. The calculation is made assuming a confidence level of 95% and a holding period of up to one year. The aggregation of currency risks has risk-mitigating effects due to correlations between the transactions concerned, i.e. the overall portfolio's risk exposure is generally less than the sum total of the underlying individual risks. Based on a net exposure of €1,565,589, the Company’s CFaR amounts to €59,557 at December 31, 2020, this means with a probability of 95% a potential loss in relation to the forecasted foreign exchange cash flows of the next twelve months will be not higher than €59,557. The following table shows the average hedging rate and the nominal amount of the foreign exchange forward contracts for the currencies with highest hedging volume at December 31, 2020: Significant currency pairs in € THOUS Nominal Average amount hedging rate EUR/USD 988,595 1.1902 EUR/AUD 212,264 1.6303 EUR/GBP 58,273 0.9041 Interest rate risk management The Company’s interest rate risks mainly arise from money market and capital market transactions of the group for financing its business activities. For purposes of analyzing the impact of changes in the relevant reference interest rates on the Company’s results of operations, the Company calculates the portion of financial debt which bears variable interest rate and which has not been hedged by means of interest rate swaps or options against rising interest rates. For this particular part of its liabilities, the Company assumes an increase in the Reference Rates of 0.5% compared to the actual rates as of the balance sheet date. The corresponding additional annual interest expense is then compared to the Company’s net income. This analysis shows that an increase of 0.5% in the relevant Reference Rates would have an effect of less than 1% on the consolidated net income and less than 0.1% on the shareholder’s equity of the Company. In addition, the Company also entered into interest rate hedges (“pre-hedges”) in anticipation of future long-term debt issuance. These pre-hedges are used to hedge interest rate exposures with regard to interest rates which are relevant for the future long-term debt issuance and which could rise until the respective debt is actually issued. These pre-hedges were settled at the issuance date of the corresponding long-term debt with the settlement amount recorded in AOCI amortized to interest expense over the life of the debt. At December 31, 2020 and December 31, 2019, the Company had €7,572 and €9,249, respectively, related to settlements of pre-hedges deferred in AOCI, net of tax. Derivative financial instruments valuation The following table shows the carrying amounts of the Company’s derivatives at December 31, 2020 and December 31, 2019: Derivative financial instruments valuation in € THOUS 2020 2019 Assets Liabilities Assets Liabilities Current Foreign exchange contracts 1,103 (1,642) 107 (2,484) Non-current Foreign exchange contracts 27 (25) — (50) Derivatives in cash flow hedging relationships 1,130 (1,667) 107 (2,534) Current Foreign exchange contracts 5,367 (39,281) 2,406 (10,762) Non-current Derivatives not designated as hedging instruments 5,367 (39,281) 2,406 (10,762) The significant methods and assumptions used in estimating the fair values of derivative financial instruments are as follows: The fair value of interest rate swaps is calculated by discounting the future cash flows on the basis of the market interest rates applicable for the remaining term of the contract as of the balance sheet date. To determine the fair value of foreign exchange forward contracts, the contracted forward rate is compared to the current forward rate for the remaining term of the contract as of the balance sheet date. The result is then discounted on the basis of the market interest rates prevailing at the balance sheet date for the applicable currency. The Company’s own credit risk is incorporated in the fair value estimation of derivatives that are liabilities. Counterparty credit risk adjustments are factored into the valuation of derivatives that are assets. The Company monitors and analyses the credit risk from derivative financial instruments on a regular basis. For the valuation of derivative financial instruments, the credit risk is considered in the fair value of every individual instrument. The default probability is based upon the credit default swap spreads of each counterparty appropriate for the duration. The calculation of the credit risk considered in the valuation is performed by multiplying the default probability appropriate for the duration with the expected discounted cash flows of the derivative financial instrument. The effect of financial instruments on the consolidated statements of income The effects of financial instruments recorded in the consolidated statements of income consist of interest income of €41,137 (2019: €59,448), interest expense of €407,065 (2019: €486,039) as well as expected credit losses of €28,302 (2019: €42,315). In the fiscal year 2020 net losses from foreign currency transactions amount to €15,919 (2019: net losses €4,901). The following table shows the effect of derivatives in cash flow hedging relationship on the consolidated financial statement: The effect of derivatives in cash flow hedging relationships on the consolidated financial statements in € THOUS Fair value gain Fair value gain (loss) recognized in (loss) recognized in Amount Amount AOCI on hedging AOCI on hedging Location of reclassified reclassified instrument (hedge instrument (cost of reclassified from hedge from cost of reserve) hedging) amounts from AOCI reserve hedging For the year ended December 31, 2020 Interest rate contracts — — Interest income/expense 1,249 — Foreign exchange contracts 6,123 (2,062) thereof: Revenue (4,612) 1,990 Costs of revenue (2,662) 3,085 Inventories (286) (46) Total 6,123 (2,062) (6,311) 5,029 For the year ended December 31, 2019 Interest rate contracts (12,807) — Interest income/expense 2,753 — Foreign exchange contracts (3,189) (1,473) thereof: Revenue 1,331 1,480 Costs of revenue 2,509 (1,913) Inventories (269) (55) Total (15,996) (1,473) 6,324 (488) The following table shows the effect of derivatives not designated as hedging instruments on the consolidated financial statements: The effect of derivatives not designated as hedging instruments on the consolidated financial statements in € THOUS Amount of (gain) loss recognized in Location of (gain) loss recognized in income on derivatives income on derivatives for the year ended, December 31, 2020 2019 Foreign exchange contracts Selling, general and administrative expenses 48,925 7,686 Foreign exchange contracts Interest income/expense 3,800 16,491 Derivatives embedded in the Convertible Bonds Interest income/expense — (11,820) Share Options to secure the Convertible Bonds Interest income/expense — 11,820 Derivatives not designated as hedging instruments 52,725 24,177 The following table shows when the cash flow from derivative financial instruments is expected to occur: Cash Flow from derivative financial instruments in € THOUS Expected in period of Less than 1 year 1 - 3 years 3 - 5 years Over 5 years 2020 Designated as hedging instrument (539) 2 — — Not designated as hedging instrument (33,914) — — — 2019 Designated as hedging instrument (2,377) (50) — — Not designated as hedging instrument (8,356) — — — Credit risk The Company is exposed to potential losses in the event of non-performance by counterparties. With respect to derivative financial instruments it is not expected that any counterparty fails to meet its obligations as the counterparties are highly rated financial institutions (generally investment grade). The maximum credit exposure of derivatives is represented by the fair value of those contracts with a positive fair value at the balance sheet date. The maximum credit exposure of all derivatives amounted to €6,497 at December 31, 2020 (2019: €2,513). The maximum credit risk resulting from the use of non-derivative financial instruments is defined as the total amount of all financial assets. In order to control this credit risk, the Company’s management carries out an aging analysis of trade accounts and other receivables from unrelated parties. For details on the aging analysis and on expected credit losses, please see note 7. Liquidity risk The liquidity risk is defined as the risk that a company is potentially unable to meet its financial obligations. The Management of the Company manages the liquidity of the group by means of effective working capital and cash management as well as an anticipatory evaluation of refinancing alternatives. The Company’s management believes that existing credit facilities, net cash provided by operating activities and additional short-term debt are sufficient to meet the Company’s foreseeable demand for liquidity (see note 13). The following table shows all non-discounted payments agreed by contract concerning financial liabilities and derivative financial instruments recorded in the consolidated balance sheets: Payments agreed by contracts in € THOUS Payments due by period of Less than 1 year 1 - 3 years 3 - 5 years Over 5 years 2020 Accounts payable to unrelated parties 731,993 1 — — Accounts payable to related parties 95,401 — — — Other current financial liabilities 1,537,782 — — — Short-term debt (1) 79,270 — — — Amended 2012 Credit Agreement (2) 138,326 1,043,542 — — Bonds 976,211 1,416,985 987,015 4,031,570 Other long-term debt 53,097 66,310 70,339 48,332 Lease liabilities (1) 735,890 1,375,720 1,026,391 2,053,642 Variable payments outstanding for acquisitions 19,313 18,687 28,261 8,273 Put option liabilities 645,784 102,142 93,357 74,648 Letters of credit 11,091 — — — Derivative financial instruments - in cash flow hedging relationships 1,642 25 — — Derivative financial instruments - not designated as hedging instrument 39,281 — — — 2019 Accounts payable to unrelated parties 716,526 — — — Accounts payable to related parties 118,663 — — — Other current financial liabilities 1,414,464 — — — Short-term debt (1) 1,171,853 — — — Amended 2012 Credit Agreement (2) 577,115 1,424,798 — — Bonds and Convertible Bonds 1,004,042 1,686,586 1,109,894 2,166,434 Accounts Receivable Facility (2) 7,518 387,468 — — Other long-term debt 68,078 66,531 74,131 49,467 Lease liabilities (1) 789,145 1,479,119 1,112,401 2,190,926 Variable payments outstanding for acquisitions 34,253 26,710 26,325 9,503 Put option liabilities 654,963 114,950 136,163 69,190 Letters of credit 21,893 — — — Derivative financial instruments - in cash flow hedging relationships 2,484 50 — — Derivative financial instruments - not designated as hedging instrument 10,762 — — — (1) Includes amounts from related parties. (2) Future interest payments for financial liabilities with variable interest rates were calculated using the latest interest rates fixed prior to December 31, 2020 and 2019. |
Other comprehensive income (los
Other comprehensive income (loss) | 12 Months Ended |
Dec. 31, 2020 | |
Other comprehensive income (loss) | |
Other comprehensive income (loss) | 24. Other comprehensive income (loss) The changes in the components of other comprehensive income (loss) for the years ended December 31, 2020, 2019, and 2018 are as follows: Other comprehensive income (loss) in € THOUS 2020 2019 2018 Pretax Tax effect Net Pretax Tax effect Net Pretax Tax effect Net Components that will not be reclassified to profit or loss: Equity method investees - share of OCI 58,166 — 58,166 — — — — — — FVOCI equity investments 19,439 (2,326) 17,113 — — — — — — Actuarial gain (loss) on defined benefit pension plans 4,176 (1,191) 2,985 (99,613) 30,245 (69,368) (28,070) 7,713 (20,357) Components that may be reclassified subsequently to profit or loss: Foreign currency translation adjustment (1,359,397) — (1,359,397) 263,835 — 263,835 327,317 — 327,317 FVOCI debt securities 29,096 (5,048) 24,048 — — — — — — Other comprehensive income (loss) relating to cash flow hedges: Changes in fair value of cash flow hedging reserve during the period 6,123 (1,839) 4,284 (15,996) 3,892 (12,104) 4,924 (1,301) 3,623 Cost of hedging (2,062) 608 (1,454) (1,473) 460 (1,013) (2,244) 603 (1,641) Reclassification adjustments (1,282) 482 (800) 5,836 (1,678) 4,158 20,880 (6,036) 14,844 Total other comprehensive income (loss) relating to cash flow hedges 2,779 (749) 2,030 (11,633) 2,674 (8,959) 23,560 (6,734) 16,826 Other comprehensive income (loss) (1,245,741) (9,314) (1,255,055) 152,589 32,919 185,508 322,807 979 323,786 |
Supplementary cash flow informa
Supplementary cash flow information | 12 Months Ended |
Dec. 31, 2020 | |
Supplementary cash flow information | |
Supplementary cash flow information | 25. Supplementary cash flow information The following additional information is provided with respect to net cash provided by (used in) investing activities for the years ended December 31, 2020, 2019 and 2018: Details for net cash provided by (used in) investing activities in € THOUS 2020 2019 2018 Details for acquisitions Assets acquired (337,300) (2,639,432) (360,375) Liabilities assumed 41,761 260,120 21,122 Put option liabilities 26,801 72,151 11,901 Noncontrolling interests 10,339 65,217 45,319 Non-cash consideration 33,804 26,637 28,530 Cash paid (224,595) (2,215,307) (253,503) Less cash acquired 9,759 55,210 3,538 Net cash paid for acquisitions (214,836) (2,160,097) (249,965) Cash paid for investments (10,899) (23,290) (109,948) Cash paid for intangible assets (33,250) (37,972) (85,103) Total cash paid for acquisitions and investments, net of cash acquired, and purchases of intangible assets (258,985) (2,221,359) (445,016) Details for divestitures Cash received from sale of subsidiaries or other businesses, less cash disposed (1) 14,608 43,317 1,532,724 Cash received from repayment of loans — — 79 Proceeds from divestitures 14,608 43,317 1,532,803 (1) In 2018, cash received from sale of subsidiaries or other businesses, less cash disposed included a cash payment of €142,593 relating to tax payments in connection with the divestiture of Sound. In connection with divestitures which occurred during 2018, the Company divested, in aggregate, assets, excluding cash, of €1,100,315, liabilities of €296,857, put option liabilities of €469 and noncontrolling interests of €16,540. The following table shows a reconciliation of debt to net cash provided by (used in) financing activities for 2020: Reconciliation of debt to net cash provided by (used in) financing activities in € THOUS Non-cash changes Acquisitions Foreign Amortization January 1, Cash (net of currency of debt December 31, 2020 Flow divestitures) translation issuance costs Other (1) 2020 Short-term debt from unrelated parties 1,149,988 (1,091,410) 4,093 (3,431) — 3,710 62,950 Short-term debt from related parties 21,865 (5,469) — — — (76) 16,320 Long-term debt (excluding Accounts Receivable Facility) (2) 7,525,987 557,433 22,644 (309,632) 10,466 1,562 7,808,460 Accounts Receivable Facility 379,570 (373,840) — (6,385) 655 — — Lease liabilities from unrelated parties 4,582,092 (683,614) (9,583) (349,656) — 813,028 4,352,267 Lease liabilities from related parties 122,946 (20,185) — (169) — 37,428 140,020 (1) Includes newly concluded leases, lease modifications and reassessments of leases with third parties and related parties. (2) Cash Flow excluding repayments of variable payments outstanding for acquisitions in the amount of €22,746. The following table shows a reconciliation of debt to net cash provided by (used in) financing activities for 2019: Reconciliation of debt to net cash provided by (used in) financing activities in € THOUS Non-cash changes Acquisitions Foreign Amortization January 1, Cash (net of currency of debt December 31, 2019 (1) Flow divestitures) translation issuance costs Other (2) 2019 Short-term debt from unrelated parties 1,205,294 (70,398) 14,611 618 — (137) 1,149,988 Short-term debt from related parties 188,900 (167,111) — — — 76 21,865 Long-term debt (excluding Accounts Receivable Facility) (3) 6,115,890 1,285,603 22,815 85,424 15,147 1,108 7,525,987 Accounts Receivable Facility — 381,430 — (2,435) 575 — 379,570 Lease liabilities from unrelated parties 4,451,081 (671,403) 2,141 81,817 — 718,456 4,582,092 Lease liabilities from related parties 137,494 (16,340) — 35 — 1,757 122,946 (1) Line item "Long-term Debt (excluding Accounts Receivable Facility)" as of December 31, 2018, was labeled as "Long-term debt and capital lease obligations (excluding Accounts Receivable Facility)" and included liabilities from capital leases in accordance with IAS 17 of €36,144; As of January 1, 2019, these liabilities have been transferred to the line item "Lease liabilities". Furthermore, upon the initial application of IFRS 16 as of January 1, 2019, Lease liabilities from unrelated parties of €4,414,937 and Lease liabilities from related parties of €137,494 were recognized. (2) Includes newly concluded leases, lease modifications and reassessments of leases with third parties and related parties. (3) Cash Flow excluding repayments of variable payments outstanding for acquisitions in the amount of €41,803. |
Segment and corporate informati
Segment and corporate information | 12 Months Ended |
Dec. 31, 2020 | |
Segment and corporate information | |
Segment and corporate information | 26. 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 taxes are 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 as well as certain legal costs, because the Company believes that these costs are also not within the control of the individual segments. Production of products, production asset management, quality and supply chain management as well as 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 twelve-month periods ended December 31, 2020, 2019 and 2018 is set forth below: Segment and corporate information in € THOUS North Asia- Latin America EMEA Pacific America Total Segment Segment Segment Segment Segment Corporate (1) Total 2020 Revenue from health care services 11,060,231 1,364,976 876,036 484,930 13,786,173 24,416 13,810,589 Revenue from health care products 1,094,828 1,363,820 969,674 196,445 3,624,767 15,228 3,639,995 Revenue from contracts with customers 12,155,059 2,728,796 1,845,710 681,375 17,410,940 39,644 17,450,584 Other revenue external customers 323,361 33,792 48,468 2,858 408,479 — 408,479 Revenue external customers 12,478,420 2,762,588 1,894,178 684,233 17,819,419 39,644 17,859,063 Inter - segment revenue 28,753 5,933 239 304 35,229 (35,229) — Revenue 12,507,173 2,768,521 1,894,417 684,537 17,854,648 4,415 17,859,063 Operating income 2,119,737 411,674 343,632 (156,555) 2,718,488 (414,079) 2,304,409 Interest (368,019) Income before income taxes 1,936,390 Depreciation and amortization (997,509) (191,204) (110,400) (35,731) (1,334,844) (252,025) (1,586,869) Impairment loss (1,231) (2,266) (1,065) (194,468) (199,030) — (199,030) Income (loss) from equity method investees 87,493 4,237 2,950 18 94,698 (180) 94,518 Total assets 21,358,156 3,879,386 2,830,867 724,124 28,792,533 2,896,503 31,689,036 thereof investment in equity method investees 413,401 215,650 105,661 26,401 761,113 — 761,113 Additions of property, plant and equipment, intangible assets and right-of-use assets 1,162,847 249,401 143,939 50,682 1,606,869 395,654 2,002,523 2019 Revenue from health care services 10,907,934 1,354,220 861,963 499,202 13,623,319 — 13,623,319 Revenue from health care products 1,023,462 1,298,723 930,057 206,434 3,458,676 20,141 3,478,817 Revenue from contracts with customers 11,931,396 2,652,943 1,792,020 705,636 17,081,995 20,141 17,102,136 Other revenue external customers 263,777 40,530 66,750 3,362 374,419 — 374,419 Revenue external customers 12,195,173 2,693,473 1,858,770 708,998 17,456,414 20,141 17,476,555 Inter- segment revenue 3,067 686 504 251 4,508 (4,508) — Revenue 12,198,240 2,694,159 1,859,274 709,249 17,460,922 15,633 17,476,555 Operating income 1,794,101 448,062 328,996 42,508 2,613,667 (344,109) 2,269,558 Interest (429,444) Income before income taxes 1,840,114 Depreciation and amortization (992,526) (188,580) (98,599) (33,352) (1,313,057) (240,351) (1,553,408) Impairment loss (36,411) (3,341) — — (39,752) — (39,752) Income (loss) from equity method investees 75,941 (4,414) 2,551 1,152 75,230 (1,551) 73,679 Total assets 21,700,202 4,058,523 2,852,271 917,184 29,528,180 3,406,555 32,934,735 thereof investment in equity method investees 400,514 171,704 99,815 24,839 696,872 — 696,872 Additions of property, plant and equipment, intangible assets and right-of-use assets 1,097,517 212,282 190,591 36,595 1,536,985 356,934 1,893,919 2018 Revenue from health care services 10,503,816 1,274,015 776,005 489,441 13,043,277 — 13,043,277 Revenue from health care products 844,147 1,285,470 851,710 193,453 3,174,780 14,736 3,189,516 Revenue from contracts with customers 11,347,963 2,559,485 1,627,715 682,894 16,218,057 14,736 16,232,793 Other revenue external customers 221,769 27,073 61,638 3,600 314,080 — 314,080 Revenue external customers 11,569,732 2,586,558 1,689,353 686,494 16,532,137 14,736 16,546,873 Inter- segment revenue 1,609 304 633 240 2,786 (2,786) — Revenue 11,571,341 2,586,862 1,689,986 686,734 16,534,923 11,950 16,546,873 Operating income 2,665,187 398,683 303,956 28,848 3,396,674 (358,876) 3,037,798 Interest (301,062) Income before income taxes 2,736,736 Depreciation and amortization (377,836) (116,384) (45,475) (22,344) (562,039) (162,808) (724,847) Impairment loss — (64,719) — — (64,719) — (64,719) Income (loss) from equity method investees 75,279 (4,322) 2,125 264 73,346 — 73,346 Total assets 16,936,646 3,612,800 2,322,284 719,334 23,591,064 2,651,204 26,242,268 thereof investment in equity method investees 348,096 178,886 98,741 24,057 649,780 — 649,780 Additions of property, plant and equipment and intangible assets 598,988 158,974 53,962 26,894 838,818 316,147 1,154,965 (1) Includes inter - segment consolidation adjustments. For the geographic presentation, revenues are attributed to specific countries based on the end user's location for products and the country in which the service is provided. Information with respect to the Company's geographic operations is set forth in the table below: Geographic presentation in € THOUS North Rest of Germany America the world Total 2020 Revenue external customers 493,436 12,478,420 4,887,207 17,859,063 Long-lived assets 1,202,528 17,878,746 4,325,335 23,406,609 2019 Revenue external customers 474,750 12,195,173 4,806,632 17,476,555 Long-lived assets 1,311,786 19,112,827 4,335,569 24,760,182 2018 Revenue external customers 426,327 11,569,732 4,550,814 16,546,873 Long-lived assets 948,355 13,260,913 3,290,930 17,500,198 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent events | |
Subsequent events | 27. Subsequent events The bonds issued by Fresenius Medical Care US Finance, Inc. in the amount of $650,000 (€472,889 as of the date of issuance on February 3, 2011) were redeemed at maturity on February 15, 2021. Additionally, the bonds issued by Fresenius Medical Care Finance VII S.A. on February 3, 2011 in the amount of €300,000 were redeemed at maturity on February 15, 2021. No further significant activities have taken place subsequent to the balance sheet date December 31, 2020 that have a material impact on the key figures and earnings presented. Currently, there are no significant changes in the Company’s structure, management, legal form or personnel. |
Compensation of the Management
Compensation of the Management Board and the supervisory board | 12 Months Ended |
Dec. 31, 2020 | |
Compensation of the Management Board and the supervisory board | |
Compensation of the Management Board and the supervisory board | 28. Compensation of the Management Board and the Supervisory Board Compensation of the Management Board of the General Partner The total compensation of the members of the Management Board of Fresenius Medical Care Management AG for the fiscal year 2020 amounted to €27,853 (2019: €24,773) and consisted of non-performance-based compensation (including fringe benefits) in the total amount of €9,942 (2019: €7,122), short-term performance-based compensation in the total amount of €8,069 (2019: €7,869) and components with long-term incentive effects (multi-year variable compensation) in the total amount of €9,842 (2019: €9,782). Components with long-term incentive effects, which were granted in or for the fiscal year 2019, include exclusively share-based compensation with cash settlement. Under the MB LTIP 2020, in the fiscal year 2020, a total of 159,607 Performance Shares (2019: 114,999 under the MB LTIP 2019) were granted to the members of the Management Board of Fresenius Medical Care Management AG. The fair value of the Performance Shares granted in November of the fiscal year 2020 was on the grant date €61.27 (2019: €62.10 for Performance Shares granted in July and €60.58 for Performance Shares granted in December each under the MB LTIP 2019) each for grants denominated in euro and $72.17 (€61.94) (2019: $69.71 (€62,69) for Performance Shares granted in July under the MB LTIP 2019) for grants denominated in U.S. dollars. Based on the target achievement in the fiscal year 2020, in addition to the Performance Shares granted under the MB LTIP 2020, the Management Board members of Fresenius Medical Care Management AG were not entitled (2019: €2,623) to further share-based compensation with cash settlement (so-called Share Based Award) because the Share Based Award was granted for the last time in 2019. At the end of fiscal year 2020, the members of the Management Board of Fresenius Medical Care Management AG being in office on December 31 of the fiscal year held a total of 397,515 Performance Shares (2019: 314,313) and no Phantom Stock (2019: 23,336). In addition, they held a total of 465,308 stock options at the end of the fiscal year 2020 (2019: 452,989 stock options). As of December 31, 2020, aggregate pension obligations, in accordance with IAS 19, of €28,334 (December 31, 2019: €24,252) existed relating to existing pension commitments. In the fiscal year 2020, the appropriation to the pension reserves amounted to €4,082 (2019: €6,751). In accordance with applicable legal provisions, no loans or advance payments for future compensation components were made to the members of the Management Board of Fresenius Medical Care Management AG in the fiscal year. To the extent permitted by law, Fresenius Medical Care Management AG undertook to indemnify the members of the Management Board from claims against them arising out of their work for the Company and its affiliates, to the extent such claims exceed their liability under German law. To secure such obligations, a Directors & Officers liability insurance exists with a deductible that corresponds to the specifications according to the German Stock Corporation Act. Mr. Michael Brosnan was a member of the Management Board until the end of October 31, 2019. In his termination agreement, it was agreed with respect to the compensation components provided in his service agreement for the period from November 1, 2019 to December 31, 2020 that he will receive a base salary of $850 (€744) p.a. (pro rata for the period from November 1, 2019 to December 31, 2019). In the fiscal year, Mr. Michael Brosnan received fringe benefits in the form of reimbursement of fees for the preparation of tax returns and for financial planning, insurance benefits, contributions to pension, accident, life and health insurances and housing, rent and relocation supplements as well as tax burden compensation due to varying tax rates in Germany and the U.S. (net compensation) and a car allowance in the total amount of $257 (€225) (2019: $17 (€15) for the period from November 1, 2019 to December 31, 2019). Additionally, Mr. Michael Brosnan participated in the U.S.-based 401(k) savings plan until December 31, 2020. For the period from January 1, 2020 to December 31, 2020, Mr. Michael Brosnan also received an amount equivalent to 30% of his base salary. The compensation components granted to Mr. Michael Brosnan under the LTIP 2016, the MB LTIP 2019 and in the form of Share Based Awards are payable or exercisable in accordance with the respective plan conditions. As of January 1, 2021, Mr. Michael Brosnan receives an annual compensation for the agreed post-employment non-competition covenant in the amount of $553 (€451) p.a. for a period of two years. It was agreed with Mr. Michael Brosnan that he is entitled to receive a retirement pension on the basis of the individual contractual pension commitment of Fresenius Medical Care Management AG in the annual amount of $405 (€330)from January 1, 2021. The compensation for the agreed post-employment non-competition covenant is credited against the retirement pension. Mr. Dominik Wehner was a member of the Management Board until the end of December 31, 2017. In his termination agreement, it was agreed with respect to the compensation components provided in his service agreement for the period from January 1, 2018 to March 31, 2022 that he will annually receive a base salary of €425 and an amount of 30% of his base salary. In addition, Mr. Dominik Wehner is entitled to fringe benefits such as the private use of his company car, reimbursement of fees for the preparation of tax returns and for financial planning, insurance benefits and contributions to pension and health insurance in a total amount of approximately €35 p.a. The compensation components granted to Mr. Dominik Wehner under the LTIP 2011, the LTIP 2016 and in form of Share Based Awards are payable or can be exercised, as the case may be, upon the relevant regular vesting date in accordance with the respective plan conditions. As of the completion of the age of 65, Mr. Dominik Wehner will receive a company-funded retirement pension in accordance with the individual contractual pension commitment by Fresenius Medical Care Management AG. Mr. Ronald Kuerbitz, who was a member of the Management Board until February 17, 2017, received an annual non-compete compensation from February 17, 2017 for a period of two years; this compensation amounted in the fiscal year to €0 (2019: €90). It was also agreed with him that, after the end of his service agreement, he would act as an advisor to National Medical Care, Inc. from August 14, 2017 until the end of August 13, 2019. The consideration granted for such services (including reimbursement of expenses) amounts to €0 (2019: €167) for the fiscal year. As of the completion of the age of 65, Mr. Ronald Kuerbitz will receive a company-funded retirement pension of $146 (€119)per year. Mr. Roberto Fusté, who was a member of the Management Board until March 31, 2016, received pension payments in the amount of approximately €274 (2019: €274) in the fiscal year. Prof. Emanuele Gatti, who was a member of the Management Board until March 31, 2014, received pension payments in the amount of €355 in the fiscal year (2019: €355). Instead of a pension provision, a consulting agreement was entered into with Dr. Ben Lipps, who was the Chairman of the Management Board until December 31, 2012, for the period from January 1, 2013 to December 31, 2021. Under this consulting agreement, Dr. Ben Lipps provides consulting services on certain fields and within a specified time frame and is subject to a non-compete covenant. The consideration to be granted by Fresenius Medical Care Management AG for such services (including reimbursement of expenses) amounted for 2019 to €568. An amendment to the agreement was made in 2019 which provides for a one-off payment of €1,129 for the remaining term of the agreement. This payment, too, was made in 2019. All payments for services to be performed by him under the consulting agreement have thus been made. Former members of the Management Board of Fresenius Medical Care Management AG did not receive any compensation in the fiscal year other than mentioned herein, whereupon the total compensation amounted to €629 (2019: €2,984). As of December 31 of the fiscal year 2020, pension obligations, according to IAS 19, towards this group of persons exist in an amount of €36,587 (December 31, 2019: €37,373). A post-employment non-competition covenant was agreed by all members of the Management Board of Fresenius Medical Care Management AG. If such covenant becomes applicable, the members of the Management Board for a period of up to two years shall receive compensation amounting to half of their respective annual base salaries for each year of application of the non-competition covenant. The service agreements of the members of the Management Board contain no express provisions that are triggered by a change of control. The service agreements concluded with the members of the Management Board provide for a severance payment cap. Under this cap, payments in connection with the early termination of a Management Board activity may not exceed the value of two years’ compensation and may not compensate more than the remaining term of the service agreement. For the calculation of the relevant annual compensation, only the non-performance-based compensation components are applied. If Fresenius Medical Care Management AG terminates the service agreement for good cause or would be entitled to do so, no severance payments are made. On the basis of the plan conditions of the MB LTIP 2020, the MB LTIP 2019 and the LTIP 2016 and in accordance with the service agreements concluded with the Management Board members, variable compensation components that have already been earned and paid may be reclaimed, in particular in case of relevant violations of internal guidelines or undutiful conduct (Clawback). Compensation of the Supervisory Board In the fiscal year the total compensation fees to all members of the Supervisory Board of FMC-AG & Co. KGaA amounted to €669 (2019: €626). This includes a fixed compensation of €463 (2019: €439) and compensation components for the work in the Committees of €206 (2019: €187). For the fiscal year, no entitlement to a payment of variable performance-related compensation (2019: €0) was achieved. In accordance with section 13e para. 3 of the Articles of Association of FMC-AG & Co. KGaA, the members of the Joint Committee are entitled to receive an attendance fee in the amount of $3.5 (€2.9). The compensation of the supervisory board of the Fresenius Medical Care Management AG and the compensation of its Committees was, in compliance with article 7 para. 3 of the Articles of Association of FMC-AG & Co. KGaA, charged to FMC-AG & Co. KGaA. In the fiscal year the total compensation for the members of the supervisory board of the Fresenius Medical Care Management AG amounted to €943 (2019: €937). This includes fixed compensation components for the work in the supervisory board in the amount of €425 (2019: €432) and compensation components for the work in the Committees of €518 (2019: €505). For the fiscal year, no entitlement to a payment of variable performance-related compensation (2019: €0) was achieved. For the benefit of the members of the Supervisory Board of FMC-AG & Co. KGaA a Directors & Officers liability insurance exists with a deductible that corresponds to the specifications according to the German Stock Corporation Act. |
Principal accountant fees and s
Principal accountant fees and services | 12 Months Ended |
Dec. 31, 2020 | |
Principal accountant fees and services | |
Principal accountant fees and services | 29. Principal accountant fees and services At our AGM on August 27, 2020, PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (“PwC”), Frankfurt am Main, was approved to serve as our new independent accountants beginning with the 2020 fiscal year, thereby replacing KPMG AG Wirtschaftsprüfungsgesellschaft (“KPMG”),Berlin, as the Company’s auditors. In 2020, 2019 and 2018, fees for the auditors and their affiliates were expensed as follows: Fees in € THOUS Consolidated thereof Consolidated thereof Consolidated thereof group Germany group Germany group Germany 2020 2019 2018 Audit fees - PwC 9,386 1,608 — — — — Audit fees - KPMG 455 — 10,113 1,665 7,845 1,322 Audit-related fees - PwC 510 394 — — — — Audit-related fees - KPMG 87 45 615 525 320 316 Tax fees - PwC 951 54 — — — — Tax fees - KPMG 310 — 318 — 1,069 115 Other fees - PwC 5,236 5,236 — — — — Other fees - KPMG 42 — 41 — 251 234 Audit fees are the aggregate fees billed by the Company’s auditors for the audit of the Company’s consolidated financial statements and the statutory financial statements of FMC-AG & Co. KGaA and certain of its subsidiaries, reviews of interim financial statements and attestation services that are provided in connection with statutory and regulatory filings or engagements. Fees related to the audit of internal control over financial reporting are included in audit fees. Audit-related fees are fees charged by the Company’s auditors for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported under audit fees. This category mainly comprises fees billed by PwC for comfort letters, agreed-upon procedure engagements and other attestation services subject to regulatory requirements. Fees billed by KPMG comprises fees for comfort letters, consultation on accounting issues, agreed-upon procedure engagements and other attestation services subject to regulatory requirements. Tax fees are fees for professional services rendered by PwC for tax compliance, tax advice on implications for actual or contemplated transactions, tax consulting associated with international transfer prices, as well as support services related to tax audits. Tax fees billed by KPMG comprises fees for tax compliance, tax advice on implications for actual or contemplated transactions, tax consulting associated with international transfer prices, and expatriate employee tax services, as well as support services related to tax audits. In 2020, other fees include amounts related to services from PwC, mainly in regard to corporate governance. Prior to 2020, other fees included amounts related to services from KPMG in regard to the harmonization of the IT-landscape as well as amounts related to supply chain consulting fees. Fees billed by the Company’s auditors for non-audit services in Germany include fees for the services described above within the audit-related fees, tax fees and other fees. |
The Company, basis of present_2
The Company, basis of presentation and significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
The Company, basis of presentation and significant accounting policies | |
Principles of consolidation and composition of the group | a) Principles of consolidation and composition of the group The financial statements of consolidated entities have been prepared using uniform accounting methods in accordance with IFRS 10, Consolidated Financial Statements (“IFRS 10”). Acquisitions of companies are accounted for under the purchase method. Besides FMC-AG & Co. KGaA, the consolidated financial statements include all material subsidiaries according to IFRS 10 over which the Company has control. FMC-AG & Co. KGaA controls an entity if it has power over the entity through existing rights that give the Company the current ability to direct the activities that significantly affect the Company’s return. In addition, the Company is exposed to, or has rights to, variable returns from the involvement with the entity and the Company has the ability to use its power over the entity to affect the amount of the Company’s return. The equity method is applied in accordance with IAS 28, Investments in Associates and Joint Ventures (“IAS 28”). Generally, equity method investees are entities in which FMC-AG & Co. KGaA, directly or indirectly, holds 50% or less of the voting power and can exercise significant influence over their financial and operating policies. While our investment in Vifor Fresenius Medical Care Renal Pharma Ltd. makes up a large portion of our equity method investees, there are no investments in equity method investees that are individually material to the Company. Acquisitions of companies are accounted for in accordance with IFRS 3, Business Combinations (“IFRS 3”) at the date of acquisition. Initially, all identifiable assets and liabilities of subsidiaries as well as the noncontrolling interests are recognized at their fair values. The cost is then compared with the fair value of the net assets acquired. Any remaining debit balance is recognized as goodwill and is tested at least once a year for impairment. Any excess of the net fair value of identifiable assets and liabilities over cost still existing after reassessing the purchase price allocation, subsequent to its finalization, is recognized immediately in profit or loss. Intercompany revenues, expenses, income, receivables, payables, accruals, provisions and commitments and contingencies, are eliminated. Profits and losses on items of property, plant and equipment and inventory acquired from other group entities are also eliminated. Deferred tax assets and liabilities are recognized on temporary differences resulting from consolidation procedures. Noncontrolling interest (“NCI”) is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent and is recognized at its fair value at the date of first consolidation. Profits and losses attributable to the noncontrolling interests are separately disclosed in the consolidated statements of income. There are no non-controlling interests that are individually material to the Company. The Company writes put options on NCI mainly for dialysis clinics in which nephrologists or nephrology groups own an equity interest. While in certain of the dialysis clinics the Company is generally the majority owner, other non-affiliated parties, such as groups of nephrologists or a single nephrologist, hold an NCI position. Generally, the put options associated with this business model are valid for an unlimited time. Accordingly, they do not constrain a long-term investment into a dialysis clinic by the NCI holder. The put options provide for settlement in cash. For these put options, IAS 32, Financial Instruments: Presentation (“IAS 32”) paragraph 23 requires the Company to recognize a liability for the present value of the exercise price of the option. The put option liability is recorded in other current provisions and other current liabilities and other non-current provisions and other non-current liabilities at present value of the redemption amount at the balance sheet date. The exercise price of the option is generally based on fair value which is approximated by a multiple of earnings, e.g. a multiple of the proportionate earnings before interest, taxes, depreciation and amortization of the dialysis clinic, and is therefore affected by the periodic changes in the profitability of such a clinic. The Company believes the accounting treatment of the changes to the put option liability under IFRS to this date has not been finally clarified. In the absence of IFRS guidance specifically applicable to the accounting for put options on NCI, the Company, in line with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”) paragraph 10, applied the present access method. According to the present access method, NCI are further recorded in equity. The initial recognition of the put option liability, as well as valuation differences, is recorded in equity with no impact to the income statement (see note 1 h). This presentation results in information that is relevant to the economic decision-making needs of users and to provide reliable financial information as the Company considers these NCI with written put options as equity holders and accordingly attributes net income to NCI. The consolidated financial statements for 2020 include FMC-AG & Co. KGaA as well as 2,305 companies. In 2020, 49 companies were accounted for by the equity method. During 2020, 113 companies were first-time consolidations and 22 companies were deconsolidated. The principal subsidiaries of the Company are those with the most significant contribution to the Company’s revenue, net income or net assets. The Company’s interest in these subsidiaries for the years ended December 31, 2020 and 2019 are listed in the table below: Principal subsidiaries Name Country Main activity Ownership Fresenius Medical Care ("FMC") Argentina S.A. Argentina Provision of health care services 100 % Sale of health care products FMC Australia Pty. Ltd. Australia Provision of health care services 100 % Sale of health care products FMC Colombia S.A. Colombia Provision of health care services 100 % Sale of health care products FMC Deutschland GmbH Germany Sale of health care products 100 % Production of health care products Research and development FMC France S.A.S. France Sale of health care products 100 % FMC GmbH Germany Sale of health care products 100 % FMC Holdings, Inc. USA Provision of health care services 100 % Sale of health care products Production of health care products Research and development FMC Italia S.p.A. Italy Sale of health care products 100 % FMC Korea Ltd. South Korea Sale of health care products 100 % FMC Ltda. (FMC Ltda.) Brazil Sale of health care products 100 % FMC Shanghai Ltd. China Sale of health care products 100 % FMC (U.K.) Ltd. United Kingdom Provision of health care services 100 % Sale of health care products Production of health care products National Medical Care of Spain, S.A.U. Spain Provision of health care services 100 % NephroCare Portugal, S.A. Portugal Provision of health care services 100 % Sale of health care products ZAO Fresenius SP Russian Federation Provision of health care services 100 % Sale of health care products The complete list of participations in affiliated and associated companies of FMC-AG & Co. KGaA will be submitted to the electronic Federal Gazette and the electronic companies register. For 2020, the following fully consolidated German subsidiaries of the Company will apply the exemption provided in Section 264 (3) or Section 264b of the HGB and therefore will be exempt from applying certain legal requirements to prepare notes to the statutory standalone financial statements and a management report as well as the requirements of an independent audit and public disclosure. Companies exempt from applying certain legal requirements Name of the company Registered office of the company Ärztliches Versorgungszentrum Ludwigshafen GmbH im Lusanum Ludwigshafen am Rhein, Germany DiZ München Nephrocare GmbH Munich, Germany ET Software Developments GmbH Heidelberg, Germany Fresenius Medical Care Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Deutschland GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Frankfurt am Main GmbH Frankfurt am Main, Germany Fresenius Medical Care GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Investment GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Zwei Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Ventures GmbH Bad Homburg v. d. Höhe, Germany Medizinisches Versorgungszentrum Berchtesgaden GmbH Berchtesgaden, Germany MVZ Gelsenkirchen-Buer GmbH Gelsenkirchen, Germany Nephrocare Ahrensburg GmbH Ahrensburg, Germany Nephrocare Augsburg GmbH Augsburg, Germany Nephrocare Berlin-Weißensee GmbH Berlin, Germany Nephrocare Betzdorf GmbH Betzdorf, Germany Nephrocare Bielefeld GmbH Bielefeld, Germany Nephrocare Buchholz GmbH Buchholz, Germany Nephrocare Daun GmbH Daun, Germany Nephrocare Deutschland GmbH Bad Homburg v. d. Höhe, Germany Nephrocare Döbeln GmbH Döbeln, Germany Nephrocare Dortmund, GmbH Dortmund, Germany Nephrocare Friedberg GmbH Friedberg, Germany Nephrocare Grevenbroich GmbH Grevenbroich, Germany Nephrocare Hagen GmbH Hagen, Germany Nephrocare Hamburg-Altona GmbH Hamburg, Germany Nephrocare Hamburg-Barmbek GmbH Hamburg, Germany Nephrocare Hamburg-Süderelbe GmbH Hamburg, Germany Nephrocare Ingolstadt GmbH Ingolstadt, Germany Nephrocare Kaufering GmbH Kaufering, Germany Nephrocare Krefeld GmbH Krefeld, Germany Nephrocare Lahr GmbH Lahr, Germany Nephrocare Leverkusen GmbH Leverkusen, Germany Nephrocare Ludwigshafen GmbH Ludwigshafen am Rhein, Germany Nephrocare Mannheim GmbH Mannheim, Germany Nephrocare Mönchengladbach GmbH Mönchengladbach, Germany Nephrocare Mühlhausen GmbH Mühlhausen, Germany Nephrocare München-Ost GmbH Munich, Germany Nephrocare Münster GmbH Münster, Germany Nephrocare MVZ Aalen GmbH Aalen, Germany Nephrocare Oberhausen GmbH Oberhausen, Germany Nephrocare Papenburg GmbH Papenburg, Germany Nephrocare Pirmasens GmbH Pirmasens, Germany Nephrocare Püttlingen GmbH Püttlingen, Germany Nephrocare Recklinghausen GmbH Recklinghausen, Germany Nephrocare Rostock GmbH Rostock, Germany Nephrocare Salzgitter GmbH Salzgitter, Germany Nephrocare Schrobenhausen GmbH Schrobenhausen, Germany Nephrocare Starnberg GmbH Starnberg, Germany Nephrocare Wetzlar GmbH Wetzlar, Germany Nephrocare Witten GmbH Witten, Germany Nephrologisch-Internistische Versorgung Ingolstadt GmbH Ingolstadt, Germany Nova Med GmbH Vertriebsgesellschaft für medizinischtechnische Geräte und Verbrauchsartikel Bad Homburg v. d. Höhe, Germany VIVONIC GmbH Sailauf, Germany Zentrum für Nieren- und Hochdruckkrankheiten Bensheim GmbH Bensheim, Germany |
Cash and cash equivalents | b) Cash and cash equivalents Cash and cash equivalents comprise cash funds and all short-term investments (recorded at nominal value) with original maturities of up to three months. Short-term investments are highly liquid and readily convertible into known amounts of cash. The risk of changes in value is insignificant. |
Trade accounts and other receivables from unrelated parties | c) Trade accounts and other receivables from unrelated parties Trade accounts and other receivables from unrelated parties are posted at fair value (nominal value less expected credit loss). For information regarding expected credit losses, see note 2 c). |
Inventories | d) Inventories Inventories are stated at the lower of cost (determined by using the average or first-in, first-out method) or net realizable value (see note 8). Costs included in inventories are based on invoiced costs and/or production costs as applicable. Included in production costs are material, direct labor and production overhead, including depreciation charges. |
Property, plant and equipment | e) Property, plant and equipment Property, plant, and equipment are stated at cost less accumulated depreciation (see note 10). Maintenance and repair costs (day-to-day servicing) are expensed as incurred. The Company recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing parts and major inspections if it is probable that the future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. Depreciation on property, plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets ranging from 4 to 50 years for buildings and improvements with a weighted average life of 14 years and 3 to 19 years for machinery and equipment with a weighted average life of 11 years. Internal use platform software that is integral to the computer equipment it supports is included in property, plant and equipment. In fiscal years until December 31, 2018, prior to the implementation of IFRS 16, property, plant and equipment under capital leases was stated at the present value of future minimum lease payments at the inception of the lease, less accumulated depreciation. Equipment held under capital leases and leasehold improvements was amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. |
Leases | f) Leases A lease is defined as a contract that conveys the right to use an underlying asset for a period of time in exchange for consideration. According to IFRS 16, a contract is or contains a lease if: · the underlying asset is identified in the contract, and · the customer has both the right to direct the identified asset’s use and to obtain substantially all the economic benefits from that use. Under IFRS 16, the Company is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments for almost all leases. The Company applies both the short-term and low-value lease exemption. These leases are exempt from balance sheet recognition and lease payments will be recognized as expenses over the lease term. IFRS 16 is not applied to leases of intangible assets. Lease liabilities Lease liabilities are initially recognized at the present value of the following payments: · fixed lease payments (including in-substance fixed payments), less any lease incentives receivable, · variable lease payments (linked to an index or interest rate), · expected payments under residual value guarantees, · the exercise price of purchase options, where exercise is reasonably certain, · lease payments in optional renewal periods, where exercise of extension options is reasonably certain, and · penalty payments for the termination of a lease, if the lease term reflects the exercise of the respective termination option. Lease payments are discounted using the implicit interest rate underlying the lease if this rate can be readily determined. Otherwise, the incremental borrowing rate of the lessee is used as the discount rate. Lease liabilities are subsequently measured at amortized cost using the effective interest method. Furthermore, lease liabilities may be remeasured due to lease modifications or reassessments of the lease. A lease modification is any change in lease terms that was not part of the initial terms and conditions of the lease, including increases of the scope of the lease by adding the right to use one or more underlying assets or extending the contractual lease term, decreases of the scope of the lease by removing the right to use one or more underlying assets or shortening the contractual lease term or changes in the consideration. Reassessments are changes in estimates or changes triggered by a clause that was part of the initial lease contract, including changes in future lease payments arising from a change in an index or rate, change in the Company's estimate of the amount expected to be payable under residual value guarantees or change in the Company’s assessment of whether it will exercise purchase, extension or termination options. A lease modification is accounted for as a separate lease if the modification increases the scope of the lease by adding the right to use one or more underlying assets and the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope. Where a lease modification is accounted for as a separate lease, the respective new lease is recognized at the effective date of the modification based on the illustrated recognition and valuation principles with the initial lease remaining unchanged. Where a lease modification is not accounted for as a separate lease, the initial lease is remeasured. For most reassessments and lease modifications that are not accounted for as a separate lease, lease liabilities are remeasured by discounting the revised lease payments at a revised discount rate. For specific reassessments, the historical interest rate is used. The revised discount rate is determined at the effective date of the lease modification or the reassessment. When lease liabilities are remeasured in this way, a corresponding remeasurement is made to the carrying amount of the right-of-use asset. Where a lease modification results in a decrease of the scope of the lease, any gain or loss is recognized in profit or loss to reflect the respective partial or full termination of the lease. For lease contracts that include both lease and non-lease components that are not separable from lease components, no allocation is performed. Each lease component and any associated non-lease components are accounted for as a single lease. Right-of-use assets The Company recognizes right-of-use asset at the commencement date of the respective lease. Right-of-use asset are stated at cost less accumulated depreciation. Upon initial recognition, cost comprises of: · the initial lease liability amount, · initial direct costs incurred when entering into the lease, · (lease) payments before commencement date of the respective lease, and · an estimate of costs to dismantle and remove the underlying asset, · less any lease incentives received. Right-of-use assets are depreciated over the shorter of the lease term or the useful life of the underlying asset using the straight-line method. Where a lease agreement includes a transfer of ownership at the end of the lease term or the exercise of a purchase option is deemed reasonably certain, right-of-use assets are depreciated over the useful life of the underlying asset using the straight-line method. In addition, right-of-use assets are reduced by impairment losses, if any, and adjusted for certain remeasurements. For reassessments and lease modifications that are not accounted for as separate leases, a remeasurement corresponding to the respective remeasurement of the lease liability is recognized (for lease modifications and reassessments, as well as for partial or full termination of a lease please see guidance on “Lease liabilities” above). If the carrying amount of a right-of-use asset is reduced to zero by such remeasurements, the excess amount is recorded in profit or loss. Right-of-use assets are classified into right-of-use assets relating to land, buildings and improvements or machinery and equipment. In addition, prepayments on right-of-use assets are presented separately (see note 21). |
Intangible assets and goodwill | g) Intangible assets and goodwill Intangible assets such as non-compete agreements, technology, distribution rights, patents, licenses to treat, licenses to manufacture, distribute and sell pharmaceutical drugs, exclusive contracts and exclusive licenses, trade names, management contracts, application software, acute care agreements and customer relationships are recognized and reported apart from goodwill (see note 11). Patient relationships, however, are not reported as separate intangible assets due to the missing contractual basis but are part of goodwill. Goodwill and identifiable intangibles with indefinite useful lives are not amortized but tested for impairment annually or when an event becomes known that could trigger an impairment. The Company identified certain trade names and qualified management contracts as intangible assets with indefinite useful lives because there is no foreseeable limit to the period over which those assets are expected to generate net cash inflows for the Company. Intangible assets with finite useful lives are amortized over their respective useful lives to their residual values. The Company amortizes non-compete agreements over their useful lives which, on average, are 8 years. Technology is amortized over its average useful lives of 12 years. Internally developed intangibles are amortized on a straight-line basis over their average useful lives of 8 years. Licenses to manufacture, distribute and sell pharmaceutical drugs, exclusive contracts and exclusive licenses are amortized over their useful lives which on average is 13 years. Customer relationships are amortized over their average useful lives of 16 years. All other intangible assets are amortized over their weighted average useful lives of 8 years. The weighted average useful life of all amortizable intangible assets is 10 years. Intangible assets with finite useful lives are evaluated for impairment when events have occurred that may give rise to an impairment (see note 1 o). To perform the annual impairment test of goodwill, the Company identified its groups of cash generating units (“CGU”s) and determined their carrying value by assigning the operating assets and liabilities, including the existing goodwill and intangible assets, to those groups of CGUs. Groups of CGUs reflect the lowest level on which goodwill is monitored for internal management purposes. One group of CGUs was identified in each of the Company's operating segments. For the purpose of goodwill impairment testing, all corporate assets and liabilities are allocated to the groups of CGUs. At least once a year, the Company compares the recoverable amount of each group of CGUs to the group of CGUs’ carrying amount. The recoverable amount is defined as the higher of the value in use or the fair value less cost of disposal of a group of CGUs. In a first step, the value in use of the group of CGUs is determined using a discounted cash flow approach based upon the cash flow expected to be generated by the group of CGUs. In case that the value in use of the group of CGUs is less than its carrying amount and the fair value less cost of disposal is not estimated to be higher than the value in use, the difference is recorded as an impairment of the carrying amount of the goodwill. To evaluate the recoverability of intangible assets with indefinite useful lives, the Company compares the fair values of intangible assets with their carrying values. An intangible asset’s fair value is determined using a discounted cash flow approach or other methods, if appropriate. For further information see note 2 a). |
Financial instruments | h) Financial instruments The Company classifies its financial instruments in accordance with IFRS 9 in the following measurement categories: at amortized cost, at fair value through profit and loss (“FVPL”) and at fair value through other comprehensive income (“FVOCI”). Financial assets are classified depending on the business model in which the financial assets are held and the contractual terms of the cash flows. Financial assets are only reclassified when the business model for managing those assets changes. During the reporting period, no financial instruments were reclassified. Purchases and sales of financial assets are accounted for on the trading day. The Company does not make use of the fair value option, which allows financial instruments to be classified at FVPL upon initial recognition. At initial recognition financial assets and financial liabilities are measured at fair value. Subsequent measurement is either at cost, FVPL or FVOCI. In general, financial liabilities are classified and subsequently measured at amortized cost, with the exception of contingent considerations resulting from a business combination, put option liabilities as well as derivative financial liabilities. Investments in equity instruments are recognized and subsequently measured at fair value. The Company’s equity investments are not held for trading. In general, changes in the fair value of equity investments are recognized in the income statement. However, at initial recognition the Company elected, on an instrument-by-instrument basis, to represent subsequent changes in the fair value of individual strategic equity investments in other comprehensive income (loss) (“OCI”). The Company invested in several debt securities, with the objective to achieve both collecting contractual cash flows and selling the financial assets. All debt securities are consequently measured at fair value. Some of these securities give rise on specified dates to cash flows that are solely payments of principle and interest. These securities are subsequently measured at FVOCI. Other securities are measured at FVPL. The Company, as option writer of existing put options, can be obligated to purchase the noncontrolling interests held by third parties. The obligations are in the form of put liabilities and are exercisable at the third-party owners’ discretion within specified periods or upon the occurrence of certain events as outlined in each specific put option. If these put option liabilities were exercised, the Company would be required to purchase all or part of third-party owners’ noncontrolling interests at the appraised fair value at the time of exercise. The initial recognition and subsequent measurement are recognized in equity of the Company. For further information related to the estimation of these fair values, see note 23. Certain put option arrangements contain contingent triggers based on changes in legislation, which the Company has concluded are not genuine using the guidance in IFRS 9 B4.1.18 and IAS 32.25. The Company considers this subset of contracts as being non-genuine as the trigger in these clauses is considered to be an event that is extremely rare, highly abnormal and very unlikely to occur. Therefore, the Company has not recorded a liability on the balance sheet relating to this subset of puts option contracts. Derivative financial instruments which primarily include foreign currency forward contracts and interest rate swaps are recognized as assets or liabilities at fair value in the balance sheet (see note 23). From time to time, the Company may enter into other types of derivative instruments which are dealt with on a transaction by transaction basis. Changes in the fair value of derivative financial instruments designated and qualifying as cash flow hedges are recognized in accumulated OCI (“AOCI”) in shareholders’ equity. The Company only designated the change in fair value of the spot element of foreign exchange forward contracts as the hedging instrument in cash flow hedging relationships and uses a hedge ratio for designated risks of 1:1. The forward elements are separately accounted for as cost of hedging in a separate component within AOCI. The ineffective portion of cash flow hedge is recognized in the income statement. The amounts recorded in AOCI are subsequently reclassified into earnings as a component of revenue for those foreign exchange contracts that hedge forecasted sales or as an adjustment of cost of revenue for those contracts that hedge forecasted intercompany product purchases. In connection with intercompany loans in foreign currency, the Company uses foreign exchange swaps to assure that no foreign exchange risks arise from those loans, which, if they qualify for cash flow hedge accounting, are also reported in AOCI and subsequently reclassified to selling, general and administrative expenses. The amounts recorded in AOCI are reclassified in the same period in which the hedged transaction affects earnings. Amounts recorded in AOCI for cash flow hedges related to product purchases from third parties are removed from AOCI and included directly in the carrying amount of the asset at initial recognition. Product purchases and sales designated in a cash flow hedging relationship are expected to affect profit and loss in the same period in which the cash flows occur. The critical terms of the forward exchange contracts generally align with the hedged item. The economic relationship between forward exchange contracts and the hedged forecast transaction is based on the timing, currency and amount of the hedged cash flows. Ineffectiveness could arise in case the timing of the hedged transaction or the credit default risk changes. The Company enters into derivatives, particularly interest rate swaps and to a certain extent, interest rate options, to protect against the risk of rising interest rates. These interest rate derivatives are designated as cash flow hedges and have been entered into in order to effectively convert payments based on variable interest rates into payments at a fixed interest rate. The Company determines the existence of an economic relationship between the hedging instrument and hedged item based on the reference interest rates, maturities and the notional amounts. The effective portion of gains and losses of derivatives designated as cash flow hedges is deferred in AOCI; the amount of gains and losses reclassified from AOCI are recorded in interest income and interest expenses. The change in fair value of derivatives that do not qualify for hedge accounting is recorded in the income statement and usually offsets the change in value recorded in the income statement for the underlying asset or liability. Derivatives embedded in host contracts are accounted for as separate derivatives if their economic characteristics and risks are not closely related to those of the host contracts. These embedded derivatives are measured at fair value with changes in fair value recognized in the income statement. |
Impairment of financial assets | i) Impairment of financial assets The impairment of financial assets is based on the expected credit loss approach, as introduced by IFRS 9. The expected credit loss approach requires that all impacted financial assets will carry a loss allowance based on their expected credit losses. Expected credit losses are a probability-weighted estimate of credit losses over the contractual life of the financial assets. This model comprises a three-stage approach. Upon recognition, the Company shall recognize losses that are expected within the next 12 months. If credit risk deteriorates significantly, from that time, impairment losses shall amount to lifetime expected losses. When assessing for significant increases in credit risk, the Company shall compare the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument at the date of initial recognition. The Company should consider reasonable and supportable information including historic loss rates, present developments such as liquidity issues and information about future economic conditions, to ensure foreseeable changes in the customer-specific or macroeconomic environment are considered. Separately, there is the rebuttable presumption that the credit risk has increased significantly since the initial recognition when contractual payments are overdue by more than 30 days. In case of objective evidence of impairment there is an assignment to stage 3. The assignment of a financial asset to stage 3 should rely on qualitative knowledge on the customers’ unfavorable financial position (for example bankruptcy, lawsuits with private or public payers), or quantitative criteria, based on an individual maturity analysis. Independently, there is an assignment to stage 3 if the contractual payments are overdue by more than 360 days. When a counterpart defaults, all financial assets against this counterpart are considered impaired. The definition of default is mainly based on payment practices specific to individual regions and businesses. The Company recognizes a loss allowance for expected credit losses on financial assets measured at amortized cost, contract assets and lease receivables as well as in investments in debt securities measured at fair value through other comprehensive income. The financial assets mainly comprise of accounts receivable as well as cash and cash equivalents. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective instrument. Financial assets whose expected credit loss is not assessed individually are grouped on the basis of geographical regions and the impairment is generally assessed on the basis of macroeconomic indicators such as credit default swaps. For accounts receivable, the Company uses the simplified method which requires recognizing lifetime expected credit losses at inception. However, expected credit losses on cash and cash equivalents are measured according to the general method which is based on 12-month expected credit losses. Based on the external credit ratings of the counterparties the Company considers that its cash and cash equivalents have a low credit risk (as the counterparties are generally investment grade). |
Foreign currency translation | j) Foreign currency translation For purposes of these consolidated financial statements, the euro is the reporting currency. The requirement to report in euro arises from Section 315e and Section 244 HGB. Substantially all assets and liabilities of foreign subsidiaries that use a functional currency other than the euro are translated at year-end exchange rates, while revenues and expenses are translated at average exchange rates. Adjustments for foreign currency translation fluctuations are excluded from net earnings and are reported in AOCI. In addition, the translation adjustments of certain intercompany borrowings, which are of a long-term nature, are reported in AOCI. Transactions in foreign currencies recorded by subsidiaries are accounted for at the prevailing spot rate on the date of the respective transaction. Financial instruments denominated in a foreign currency are revalued at the spot rate as of the date of the consolidated statement of financial position. The exchange rates of the United States (“U.S.”) dollar affecting foreign currency translation developed as follows: Exchange rates December 31, 2020 December 31, 2019 2020 2019 2018 spot exchange rate in € spot exchange rate in € average exchange rate in € average exchange rate in € average exchange rate in € 1 U.S. dollar 0.81493 0.89015 0.87550 0.89328 0.84678 |
Revenue recognition | k) Revenue recognition For both health care services revenue and health care products revenue, amounts billed to patients, third party payors and customers are recorded net of contractual allowances, discounts or rebates to reflect the estimated amounts to be receivable from these payors. Health care services Health care services revenue, other than the hospitalist and insurance revenues discussed below, are recognized on the date the patient receives treatment and includes amounts related to certain services, products and supplies utilized in providing such treatment at an amount to which the company expects to be entitled. The patient is obligated to pay for health care services at amounts estimated to be receivable based upon the Company’s standard rates or at rates determined under reimbursement arrangements. In the U.S., these arrangements are generally with third party payors, such as Medicare, Medicaid or commercial insurers. Outside the U.S., the reimbursement is usually made through national or local government programs with reimbursement rates established by statute or regulation. For services performed for patients where the collection of the billed amount or a portion of the billed amount cannot be determined at the time services are performed, the Company concludes that the consideration is variable (“implicit price concession”) and records the difference between the billed amount and the amount estimated to be collectible as a reduction to health care services revenue. Implicit price concessions include such items as amounts due from patients without adequate insurance coverage, patient co-payment and deductible amounts due from patients with health care coverage. The Company determines implicit price concessions based primarily upon past collection history. Upon receipt of new information relevant for the determination of the implicit price concession, the Company constrains, or adjusts the constraints for the variable consideration of the transaction price. Prior to the divestiture of the Company’s controlling interest in Sound Inpatient Physicians, Inc. ("Sound") on June 28, 2018, hospitalist revenues in the U.S. were reported at the estimated amount expected to be received from third-party payors, client hospitals, and others at the time services were provided. Third-party payors included federal and state agencies (under the Medicare and Medicaid programs), managed care health plans, and commercial insurance companies. Inpatient acute care services rendered to Medicare and Medicaid program beneficiaries were paid according to a fee-for-service schedule. These rates varied according to a patient classification system that was based on clinical, diagnostic and other factors. Inpatient acute services generated through payment arrangements with managed care health plans and commercial insurance companies were recorded on an accrual basis in the period in which services were provided at established rates. The Company has entered into sub-capitation and other shared savings arrangements with certain payors to provide care to certain ESRD and chronic kidney disease patients. Under these arrangements, a baseline per patient per month amount is established. If the Company provides complete care for less than the baseline, it retains the difference. If the cost of complete care exceeds the baseline, the Company may owe the payor the difference. In the U.S., the Company generates revenue from insurance contracts in accordance with IFRS 4, Insurance Contracts (“IFRS 4”). Insurance premium revenue is recognized as earned each month and risk adjustments are offset against revenue. Prior to January 1, 2019, in the U.S the Company provided Medicare Advantage ESRD Chronic Conditions Special Needs Plan products. These were Medicare Advantage health plans offered by the Company that contracted with the Centers for Medicare and Medicaid Services (“CMS”) to provide patients with Medicare benefits and receive capitated payments from CMS. Revenue from insurance contracts is disclosed as part of “Other revenue” separately from “Revenue from contracts with customers” in the notes to the consolidated financial statements. Health care products In the health care product business, major revenues are generated from the sale of dialysis machines and water treatment systems, home hemodialysis products, disposable products and maintenance agreements for the Company´s health care products. Revenues from the sale of dialysis machines and water treatment system are typically recognized upon installation and provision of the necessary technical instructions as only thereafter the customer obtains control of the medical device. A small portion of the Company´s revenue is recognized from sales of dialysis machines, home hemodialysis products and other products used for in-center hemodialysis treatment to distributors. When the distributor is the principal in the contract, the revenue allocated to the machine or the products will be recognized upon transfer of control to the distributor. In case the Company is committed to perform the installation, revenue allocated to the installation, as a separate performance obligation, would be recorded upon installation of the machine at the end-customers’ premises. In case the distributor is only an agent in the contract, revenue for sale of the machine would be recorded upon installation. Under consignment arrangements revenue is recognized upon withdrawal of the products by the customer. Maintenance is provided over time, and as such revenue is typically recognized on a straight-line basis as the customer is simultaneously receiving and consuming the benefits provided by the Company's performance. All other dialysis and non-dialysis product revenues are recognized upon transfer of control to the customer. Product revenues are normally based upon pre-determined rates that are established by contractual arrangement. A portion of dialysis product revenues is generated from arrangements which give the customer, typically a health care provider, the right to use dialysis machines. In the same contract the customer agrees to purchase the related treatment disposables at a price marked up from the standard price list. If the right to use the machine is conveyed through an operating lease and the customer agrees to purchase a minimum number of related treatment disposables, FMC-AG & Co. KGaA does not recognize revenue upon delivery of the dialysis machine but recognizes revenue on the sale of disposables upon transfer of control with revenue for the use of dialysis machines recognized straight-line over the term of the lease contract. When there is no such agreement that the customer purchases a minimum number of related treatment disposables, revenue is recognized only on the sale of disposables unless the timing of the first purchase order of related treatment disposables justifies a combination of contracts according to IFRS 15. If the lease of the machines is a finance lease, ownership of the dialysis machine is transferred to the user upon installation of the dialysis machine at the customer site. In this type of contract, revenue is recognized in accordance with the accounting principles for finance leases under IFRS 16. The allocation of the transaction price to lease and non-lease components is based on stand-alone selling prices. For certain home-dialysis products the Company offers month-to month rental arrangements, where revenue is recognized on a monthly basis. In addition, for some licensing agreements and equipment sales to dialysis clinic customers in the area of home-dialysis, the Company recognizes upfront fees received as lease revenue on a straight-line basis over the term of the contract. IFRS 15 specifically excludes leases from the scope of the revenue standard. The transaction price of contracts which include lease components is allocated in accordance with IFRS 15. Revenue is recognized separately for the lease and the non-lease components of the contract. Revenue from lease contracts is disclosed as part of “Other revenue” separately from “Revenue from contracts with customers” in the notes to the consolidated financial statements. |
Capitalized interest | l) Capitalized interest The Company includes capitalized interest as part of the cost of the asset if it is directly attributable to the acquisition, construction or manufacture of qualifying assets. For the fiscal years 2020, 2019 and 2018, interest of €4,963, €7,240 and €5,724, based on an average interest rate of 3.67%, 3.84% and 4.03%, respectively, was recognized as a component of the cost of assets. |
Research and development expenses | m) Research and development expenses Research is the original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge. Development is the technical and commercial implementation of research results and takes place before the start of commercial production or use. Research costs are expensed as incurred. Development costs that fully meet the criteria for the recognition of an intangible asset set out in IAS 38, Intangible Assets (“IAS 38”) are capitalized as intangible asset. |
Income taxes | n) Income taxes Current taxes are calculated based on the profit (loss) of the fiscal year and in accordance with local tax rules of the respective tax jurisdictions. Expected and executed additional tax payments and tax refunds for prior years are also taken into account. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the single entity’s financial statement carrying amounts of existing assets and liabilities and their respective tax basis, tax credits and tax loss carryforwards which are probable to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates that have been enacted or substantially enacted by the end of the reporting period. A change in tax rate for the calculation of deferred tax assets and liabilities is recognized in the period the new laws are enacted or substantively enacted. The effects of the adjustment are generally recognized in the income statement. The effects of the adjustment are recognized in equity, if the temporary differences are related to items directly recognized in equity. Deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. In addition, deferred tax assets and liabilities are not recognized if they arise from the initial recognition of an asset or a liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss. The carrying amount of a deferred tax asset is reviewed at each balance sheet date. A deferred tax asset is recognized to the extent that the utilization of parts or all of it is probable because sufficient taxable profit will be available (see note 4 h). The determination of future taxable income is based on assumptions on future market conditions and future profits of FMC-AG & Co. KGaA and considers all currently available information as well as the level of historical taxable income. In addition, the determination of the recoverable amount of deferred tax assets considers implemented tax strategies. The Company recognizes assets and liabilities for uncertain tax treatments to the extent it is probable the tax will be recovered or that the tax will be payable, respectively. In North America and Germany, interest and penalties related to income taxes, including uncertain tax treatments, do not meet the definition of income taxes, and therefore are accounted for under IAS 37. All other jurisdictions account for interest and penalties related to income taxes in accordance with local tax rules of the respective tax jurisdiction either under IAS 37 or as income tax expense under IAS 12. |
Impairment | o) Impairment The Company reviews the carrying amount of its property, plant and equipment, its intangible assets with definite useful lives, its right-of-use assets as well as other non-current assets for impairment whenever events or changes in circumstances indicate that the carrying amount is higher than the asset’s recoverable amount in accordance with IAS 36, Impairment of Assets (“IAS 36”). The fair value less cost of disposal of an asset is estimated as its net realizable value. The value in use is the present value of future cash flows expected to be derived from the relevant asset. If it is not possible to estimate the future cash flows from the individual assets, impairment is tested on the basis of the corresponding group of CGUs. Impairment losses, except impairment losses recognized on goodwill, are reversed up to the amount of the amortized acquisition cost, as soon as the reasons for impairment no longer exist. Long-lived assets to be disposed of by sale are reported at the lower of carrying value or fair value less cost to sell and depreciation is ceased. Long-lived assets to be disposed of other than by sale are considered to be held and used until disposal. |
Debt issuance costs | p) Debt issuance costs Debt issuance costs related to a recognized debt liability are presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. These costs are amortized over the term of the related obligation (see note 14). |
Self-insurance programs | q) Self-insurance programs See note 2 d). |
Concentration of risk | r) Concentration of risk The Company is engaged in the manufacture and sale of products for all forms of kidney dialysis, principally to health care providers throughout the world, and in providing kidney dialysis treatment. The Company also provides additional health care services under Care Coordination. The Company performs ongoing evaluations of its customers' financial condition and, generally, requires no collateral. Revenues which were earned and subject to regulations under Medicare and Medicaid, governmental health care programs administered by the U.S. government, were approximately 32%, 33%, and 33% of the Company's worldwide revenues in 2020, 2019 and 2018, respectively. See note 2 c) for concentration risks of debtors or group of debtors as well as note 8 for discussion of suppliers with long-term purchase commitments. |
Legal contingencies | s) Legal contingencies See note 2 b). |
Other provisions | t) Other provisions In accordance with IAS 12 and IAS 37, accruals for taxes and other obligations are recognized when there is a present obligation to a third party arising from past events, it is probable that the obligation will be settled in the future and the required amount can be reliably estimated. Provisions by their nature are more uncertain than most other items in the statement of financial position. Tax accruals include obligations for the current year and for prior periods. Non-current provisions with a remaining period of more than one year are discounted to the present value of the expenditures expected to settle the obligation. The applied discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. |
Earnings per share | u) Earnings per share Basic earnings per share is calculated in accordance with IAS 33, Earnings per Share (“IAS 33”). Basic earnings per share is calculated by dividing net income attributable to shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share include the effect of all potentially dilutive instruments on shares that would have been outstanding during the years presented had the dilutive instruments been issued. For the calculation of basic earnings per share, treasury stock is not considered outstanding and is therefore deducted from the number of shares outstanding. Equity-settled awards granted under the Company’s stock incentive plans (see note 20), are potentially dilutive equity instruments. |
Treasury stock | v) Treasury stock The Company may, from time to time, acquire its own shares (“Treasury Stock”) as approved by its shareholders. The acquisition, sale or retirement of its Treasury Stock is recorded separately in equity. The value of such Treasury Stock is shown as a reduction of the Company’s equity. |
Employee benefit plans | w) Employee benefit plans Pension obligations for post-employment benefits are measured in accordance with IAS 19 (revised 2011), Employee Benefits (“IAS 19”), using the projected unit credit method, taking into account future salary and trends for pension increase. The Company uses December 31 as the measurement date when measuring the net pension liability. For the Company’s funded benefit plans the defined benefit obligation is offset against the fair value of plan assets (net pension liability). Plan assets comprise assets held by a long-term employee benefit fund and qualifying insurance policies. A pension liability is recognized in the consolidated balance sheet if the defined benefit obligation exceeds the fair value of plan assets. A pension asset is recognized (and reported under “Other non-current assets” in the consolidated balance sheet) if the fair value of plan assets exceeds the defined benefit obligation and if the Company has a right of refund against the fund or a right to reduce future payments to the fund. Net interest costs are calculated by multiplying the benefit obligation (fair value of plan assets) at beginning of the year with the discount rate utilized in determining the benefit obligation. Remeasurements include actuarial gains and losses resulting from the evaluation of the defined benefit obligation as well as from the difference between actual investment returns and the return implied by the net interest cost. In the event of a surplus for a defined benefit pension plan remeasurements can also contain the effect from asset ceiling, as far as this effect is not included in net interest costs. Remeasurements are recognized in AOCI completely. Remeasurements may not be reclassified in subsequent periods. Components of net periodic benefit cost are recognized in profit and loss of the period. |
Share-based plans | x) Share-based plans The grant date fair value of stock options and convertible equity instruments that are settled by delivering equity instruments granted to the Management Board and executive employees of the Company and its subsidiaries by FMC-AG & Co. KGaA is measured in accordance with IFRS 2, Share-based Payment (“IFRS 2”) using the binominal option pricing model and recognized as expense over the vesting period of the stock option plans. For certain exceptions , as defined in the respective plan terms, a shorter vesting period may apply after which the stock options will not forfeit in any way. In such cases the vesting period is shortened accordingly. The balance sheet date fair value of cash-settled phantom stock granted to the Management Board and executive employees of the Company is calculated in accordance with IFRS 2 using the binominal option pricing model. The corresponding liability based on the balance sheet date fair value is accrued over the vesting period of the phantom stock plans. For certain exceptions as defined in the respective plan terms, a shorter vesting period may apply after which the phantom stock will not forfeit in any way. In such cases the vesting period is shortened accordingly. The balance sheet date fair value of cash-settled performance shares granted to the Management Board and executive employees of the Company is calculated using the Monte Carlo pricing model in accordance with IFRS 2. The corresponding liability based on the balance sheet date fair value is accrued over the vesting periods of the performance share plans. For certain exceptions a shorter vesting period may apply after which the performance shares will not forfeit in any way. In such cases the vesting period is shortened accordingly. |
Government grants | y) Government grants In accordance with IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, government grants, including non-monetary grants at fair value, are recognized only when there is reasonable assurance that the Company will comply with all conditions attached to the grant and that the grants will be received. Government grants or government assistance are recognized directly against the respective qualifying expense in either the cost of revenue line item or selling, general and administrative expense line item within the statement of profit and loss. Amounts received for which a respective cost is not yet incurred are recorded as a liability on the Company’s consolidated balance sheet and offset against all qualifying costs that are incurred in future periods. The Company and its patient population have been impacted by severe acute respiratory syndrome coronavirus 2 (“COVID-19”). On March 27, 2020, the U.S. administration 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 COVID-19 pandemic. The Company currently estimates that all funds received from grants comply with the terms and conditions associated with the funding received. Additional guidance may be released from the U.S. Department of Health and Human Services with regards to the application of CARES Act relief funds which could affect the Company’s estimate as of December 31, 2020. All funding received under the CARES Act in the U.S. is to be applied solely to the Company’s U.S. operations. In accordance with the conditions of the funding received under the grants, the Company is obliged and committed to fulfilling all the requirements of the grant funding arrangements in the respective jurisdictions in which funding was received. The Company has determined that there is reasonable assurance that it will continue to be entitled to the amounts received and comply with the requirements related to the grants. |
Recent pronouncements | z) Recent pronouncements Recently implemented accounting pronouncements The Company has prepared its consolidated financial statements at and for the year ended December 31, 2020 in conformity with IFRS that have to be applied for fiscal years beginning on January 1, 2020. For the year ended December 31, 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 standards which are 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 June 25, 2020, the IASB issued amendments to IFRS 17, which among others, defer the effective date to fiscal years 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. Amendments to IAS 1, Classification of Liabilities as Current and Non-current In January 2020, the IASB issued Amendments to IAS 1, Classification of Liabilities as Current and Non-current. The amendments clarify under which circumstances debt and other liabilities with an uncertain settlement date should be classified as current or non-current. Among others, the amendments state that liabilities shall be classified depending on rights that exist at the end of the reporting period and define under which conditions liabilities might be settled by cash, other economic resources or equity. On July 15 th , 2020, the IASB deferred the effective date by one year to provide companies with more time to implement any classification changes resulting from the amendments. The Amendments to IAS 1 are now effective for annual reporting periods beginning on or after January 1, 2023. Earlier adoption is permitted. The Company is currently evaluating the impact of the amendments to IAS 1 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. |
The Company, basis of present_3
The Company, basis of presentation and significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
The Company, basis of presentation and significant accounting policies | |
Summary of specific inputs used to calculate the loss on net monetary position | Inputs for the calculation of losses on net monetary positions Argentina Lebanon Date of IAS 29 initial application July 1, 2018 December 31, 2020 Consumer price index Índice de precios al consumidor Central Administration of Statistics Index at December 31, 2020 (1) 385.9 284.04 Calendar year increase Loss on net monetary position in € THOUS 18,513 5,112 |
Schedule of Company's interest in principal subsidiaries | Principal subsidiaries Name Country Main activity Ownership Fresenius Medical Care ("FMC") Argentina S.A. Argentina Provision of health care services 100 % Sale of health care products FMC Australia Pty. Ltd. Australia Provision of health care services 100 % Sale of health care products FMC Colombia S.A. Colombia Provision of health care services 100 % Sale of health care products FMC Deutschland GmbH Germany Sale of health care products 100 % Production of health care products Research and development FMC France S.A.S. France Sale of health care products 100 % FMC GmbH Germany Sale of health care products 100 % FMC Holdings, Inc. USA Provision of health care services 100 % Sale of health care products Production of health care products Research and development FMC Italia S.p.A. Italy Sale of health care products 100 % FMC Korea Ltd. South Korea Sale of health care products 100 % FMC Ltda. (FMC Ltda.) Brazil Sale of health care products 100 % FMC Shanghai Ltd. China Sale of health care products 100 % FMC (U.K.) Ltd. United Kingdom Provision of health care services 100 % Sale of health care products Production of health care products National Medical Care of Spain, S.A.U. Spain Provision of health care services 100 % NephroCare Portugal, S.A. Portugal Provision of health care services 100 % Sale of health care products ZAO Fresenius SP Russian Federation Provision of health care services 100 % Sale of health care products |
Schedule of subsidiaries exempt from applying certain legal requirements | Companies exempt from applying certain legal requirements Name of the company Registered office of the company Ärztliches Versorgungszentrum Ludwigshafen GmbH im Lusanum Ludwigshafen am Rhein, Germany DiZ München Nephrocare GmbH Munich, Germany ET Software Developments GmbH Heidelberg, Germany Fresenius Medical Care Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Deutschland GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Frankfurt am Main GmbH Frankfurt am Main, Germany Fresenius Medical Care GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Investment GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Zwei Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Ventures GmbH Bad Homburg v. d. Höhe, Germany Medizinisches Versorgungszentrum Berchtesgaden GmbH Berchtesgaden, Germany MVZ Gelsenkirchen-Buer GmbH Gelsenkirchen, Germany Nephrocare Ahrensburg GmbH Ahrensburg, Germany Nephrocare Augsburg GmbH Augsburg, Germany Nephrocare Berlin-Weißensee GmbH Berlin, Germany Nephrocare Betzdorf GmbH Betzdorf, Germany Nephrocare Bielefeld GmbH Bielefeld, Germany Nephrocare Buchholz GmbH Buchholz, Germany Nephrocare Daun GmbH Daun, Germany Nephrocare Deutschland GmbH Bad Homburg v. d. Höhe, Germany Nephrocare Döbeln GmbH Döbeln, Germany Nephrocare Dortmund, GmbH Dortmund, Germany Nephrocare Friedberg GmbH Friedberg, Germany Nephrocare Grevenbroich GmbH Grevenbroich, Germany Nephrocare Hagen GmbH Hagen, Germany Nephrocare Hamburg-Altona GmbH Hamburg, Germany Nephrocare Hamburg-Barmbek GmbH Hamburg, Germany Nephrocare Hamburg-Süderelbe GmbH Hamburg, Germany Nephrocare Ingolstadt GmbH Ingolstadt, Germany Nephrocare Kaufering GmbH Kaufering, Germany Nephrocare Krefeld GmbH Krefeld, Germany Nephrocare Lahr GmbH Lahr, Germany Nephrocare Leverkusen GmbH Leverkusen, Germany Nephrocare Ludwigshafen GmbH Ludwigshafen am Rhein, Germany Nephrocare Mannheim GmbH Mannheim, Germany Nephrocare Mönchengladbach GmbH Mönchengladbach, Germany Nephrocare Mühlhausen GmbH Mühlhausen, Germany Nephrocare München-Ost GmbH Munich, Germany Nephrocare Münster GmbH Münster, Germany Nephrocare MVZ Aalen GmbH Aalen, Germany Nephrocare Oberhausen GmbH Oberhausen, Germany Nephrocare Papenburg GmbH Papenburg, Germany Nephrocare Pirmasens GmbH Pirmasens, Germany Nephrocare Püttlingen GmbH Püttlingen, Germany Nephrocare Recklinghausen GmbH Recklinghausen, Germany Nephrocare Rostock GmbH Rostock, Germany Nephrocare Salzgitter GmbH Salzgitter, Germany Nephrocare Schrobenhausen GmbH Schrobenhausen, Germany Nephrocare Starnberg GmbH Starnberg, Germany Nephrocare Wetzlar GmbH Wetzlar, Germany Nephrocare Witten GmbH Witten, Germany Nephrologisch-Internistische Versorgung Ingolstadt GmbH Ingolstadt, Germany Nova Med GmbH Vertriebsgesellschaft für medizinischtechnische Geräte und Verbrauchsartikel Bad Homburg v. d. Höhe, Germany VIVONIC GmbH Sailauf, Germany Zentrum für Nieren- und Hochdruckkrankheiten Bensheim GmbH Bensheim, Germany |
Schedule of foreign currency translation | Exchange rates December 31, 2020 December 31, 2019 2020 2019 2018 spot exchange rate in € spot exchange rate in € average exchange rate in € average exchange rate in € average exchange rate in € 1 U.S. dollar 0.81493 0.89015 0.87550 0.89328 0.84678 |
Significant judgments and sou_2
Significant judgments and sources of estimation uncertainties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant judgments and sources of estimation uncertainties | |
Schedule of key assumptions of value-in-use calculations for cash generating unit | Key assumptions in % North America (1) EMEA Asia-Pacific (1) Latin America 2020 2019 2020 2019 2020 2019 2020 2019 Average revenue growth in ten year projection period mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit high-single-digit mid-single-digit mid-single-digit Residual value growth 1.00 1.00 1.00 1.00 4.00 4.00 1.60 2.95 Pre-tax WACC 6.42 7.71 8.64 8.73 6.40 6.79 13.29 - 24.28 10.45 - 20.02 After-tax WACC 5.08 6.00 6.21 6.25 5.65 6.04 9.14 - 20.13 8.06 - 17.63 (1) There are no reasonably possible changes in assumptions that would lead to an impairment in these groups of CGUs. |
Schedule that shows the amounts by which the key assumptions would need to change individually that the recoverable amount equals the carrying amount | Sensitivity analysis Change in percentage points EMEA 2020 2019 Pre-tax WACC 0.91 3.19 After-tax WACC 0.64 2.15 Operating income margin of each projection year (1.16) (3.71) |
Schedule of the composition of trade accounts and other receivables from unrelated parties | Composition of trade accounts and other receivables from unrelated parties December 31, 2020 2019 U.S. Government health care programs 30 % 30 % U.S. commercial payors 14 % 15 % U.S. hospitals 5 % 4 % Self-pay of U.S. patients 3 % 2 % Other North America Segment payors 2 % 4 % Product customers and health care payors outside the North America Segment 46 % 45 % Total 100 % 100 % |
Acquisitions, investments pur_2
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | Fair Values of Assets Acquired and Liabilities Assumed in $ THOUS in € THOUS Cash and cash equivalents 47,203 41,574 Trade accounts and other receivables from unrelated parties 34,062 30,000 Inventories 63,735 56,134 Other current assets 15,819 13,933 Property, plant and equipment 104,533 92,067 Right-of-use assets 21,603 19,027 Intangible assets and other assets 761,734 670,895 Goodwill 1,201,613 1,058,317 Accounts payable to unrelated parties, current provisions and other current liabilities (72,429) (63,792) Deferred taxes (100,485) (88,502) Lease liabilities from unrelated parties (22,065) (19,434) Other liabilities (27,822) (24,504) Noncontrolling interests (4,063) (3,578) Total acquisition cost 2,023,438 1,782,137 Less: Cash acquired (47,203) (41,574) Net Cash paid 1,976,235 1,740,563 |
Summary of pro forma financial information | Pro forma financial Information in € THOUS, except per share data 2019 Pro forma revenue 17,521,432 Pro forma net income attributable to shareholders of FMC-AG & Co. KGaA 1,186,516 Basic earnings per share 3.92 Diluted earnings per share 3.92 |
Notes to the consolidated sta_2
Notes to the consolidated statements of income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes to the consolidated statements of income | |
Schedule of revenue | Revenue in € THOUS 2020 2019 2018 Revenue from Revenue from Revenue from contracts with Other contracts with Other contracts with Other customers revenue Total customers revenue Total customers revenue Total Health care services Dialysis services 12,558,644 — 12,558,644 12,447,092 — 12,447,092 11,420,415 — 11,420,415 Care Coordination 1,251,945 303,810 1,555,755 1,176,227 248,900 1,425,127 1,622,862 221,012 1,843,874 13,810,589 303,810 14,114,399 13,623,319 248,900 13,872,219 13,043,277 221,012 13,264,289 Health care products Dialysis products 3,538,605 104,669 3,643,274 3,402,987 125,519 3,528,506 3,115,753 93,068 3,208,821 Non-dialysis products 101,390 — 101,390 75,830 — 75,830 73,763 — 73,763 3,639,995 104,669 3,744,664 3,478,817 125,519 3,604,336 3,189,516 93,068 3,282,584 Total 17,450,584 408,479 17,859,063 17,102,136 374,419 17,476,555 16,232,793 314,080 16,546,873 |
Schedule of trade accounts receivables from unrelated parties and contract liabilities | Trade accounts receivables from unrelated parties and contract liabilities in € THOUS 2020 2019 Trade accounts receivables from unrelated parties 3,084,311 3,341,111 Contract liabilities 876,051 22,802 |
Schedule of unsatisfied performance obligations | Unsatisfied performance obligations in € THOUS 1 year 856,206 1 - 3 years 683,293 3 - 5 years 272,549 5 - 10 years 104,510 Total 1,916,558 |
Schedule of cost of materials | Cost of materials in € THOUS 2020 2019 2018 Cost of raw materials, supplies and purchased components 3,959,216 4,031,371 3,395,895 Cost of purchased services 261,805 258,959 233,638 Cost of materials 4,221,021 4,290,330 3,629,533 |
Schedule of personnel expenses | Personnel expenses in € THOUS 2020 2019 2018 Wages and salaries 5,753,795 5,448,662 5,025,128 Social security contributions and cost of retirement benefits and social assistance 1,313,612 1,350,696 1,414,525 thereof retirement benefits 181,347 174,009 156,581 Personnel expenses 7,067,407 6,799,358 6,439,653 |
Schedule of employee by function | Employees by function 2020 2019 2018 Production and Services 106,797 103,896 97,971 Administration 12,525 11,634 10,510 Sales and Marketing 3,972 3,253 3,360 Research and Development 1,198 1,050 881 Total employees 124,492 119,833 112,722 |
Schedule of income before income taxes according to region | Income before income taxes in € THOUS 2020 2019 2018 Germany 160,866 101,734 161,861 United States 1,487,931 1,149,149 2,191,834 Other 287,593 589,231 383,041 Total 1,936,390 1,840,114 2,736,736 |
Schedule of income tax expense (benefit) according to region | Income tax expense (benefit) in € THOUS 2020 2019 2018 Current Germany 17,879 (59,928) 45,136 United States 242,062 168,503 261,211 Other 129,512 228,773 115,561 389,453 337,348 421,908 Deferred Germany 27,844 48,313 (34,685) United States 95,444 57,352 145,700 Other (12,183) (41,399) (21,844) 111,105 64,266 89,171 Total 500,558 401,614 511,079 |
Schedule of reconciliation of expected and actual income tax expense | Reconciliation of income taxes in € THOUS 2020 2019 2018 Expected corporate income tax expense 584,983 555,898 825,810 Tax free income (51,231) (65,889) (50,747) Income from equity method investees (28,510) (23,683) (18,185) Tax rate differentials (71,755) (58,386) (106,258) Non-deductible expenses (1) 106,437 44,283 60,721 Taxes for prior years (2,748) (5,454) (91,138) Noncontrolling partnership interests (70,300) (60,724) (61,936) Tax on divestitures — — (74,560) Tax rate changes 4,221 2,743 (219) Change in realizability of deferred tax assets and tax credits 12,627 8,519 3,211 Withholding taxes 4,858 13,083 4,564 Other 11,976 (8,776) 19,816 Income tax expense 500,558 401,614 511,079 Effective tax rate % % 18.7 % |
Schedule of deferred income taxes and net operating loss carryforwards | Deferred income tax assets and liabilities in € THOUS 2020 2019 Deferred tax assets Trade accounts receivable 16,243 13,392 Inventories 73,087 71,915 Intangible assets 4,817 4,994 Property, plant and equipment and other non-current assets 78,545 72,769 Lease Liabilities 853,352 1,164,620 Provisions and other liabilities 187,406 50,819 Pension liabilities 148,808 135,356 Net operating loss carryforwards, tax credit carryforwards and interest carryforwards 111,861 175,394 Derivatives 11,447 3,027 Compensation expense related to stock options 3,064 3,426 Other 41,598 36,403 Total deferred tax assets 1,530,228 1,732,115 Deferred tax liabilities Trade accounts receivable 38,753 30,310 Inventories 3,066 19,324 Intangible assets 759,146 632,984 Property, plant and equipment and other non-current assets 228,609 165,082 Right-of-use assets 780,321 1,068,409 Provisions and other liabilities 13,204 92,756 Derivatives 1,508 372 Other 140,355 101,384 Total deferred tax liabilities 1,964,962 2,110,621 Net deferred tax liabilities (434,734) (378,506) Net deferred income tax assets and liabilities in € THOUS 2020 2019 Deferred tax assets 351,152 361,196 Deferred tax liabilities 785,886 739,702 Net deferred tax liabilities (434,734) (378,506) Net operating loss carryforwards in € THOUS 2021 14,918 2022 10,324 2023 14,163 2024 29,173 2025 46,365 2026 5,840 2027 7,590 2028 5,275 2029 10,585 2030 and thereafter 166,111 Without expiration date 195,637 Total 505,981 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Schedule of service agreements and products with related parties | Service agreements and products with related parties in € THOUS 2020 2019 2018 December 31, 2020 December 31, 2019 Sales of Purchases of Sales of Purchases of Sales of Purchases of goods and goods and goods and goods and goods and goods and Accounts Accounts Accounts Accounts services services services services services services receivable payable receivable payable Service agreements (1) Fresenius SE 250 29,174 153 29,114 445 24,456 251 3,655 35 360 Fresenius SE affiliates 4,708 102,323 4,420 105,832 3,819 101,590 824 7,944 2,003 6,416 Equity method investees 19,730 — 49,052 — 58,362 — 74,935 — 68,300 — Total 24,688 131,497 53,625 134,946 62,626 126,046 76,010 11,599 70,338 6,776 Products Fresenius SE — — 3 — — — — — — — Fresenius SE affiliates 41,180 44,164 44,771 37,279 33,564 39,181 10,330 5,732 16,803 3,405 Equity method investees — 474,100 — 469,474 — 399,667 — 57,207 — 36,262 Total 41,180 518,264 44,774 506,753 33,564 438,848 10,330 62,939 16,803 39,667 (1) In addition to the above shown accounts payable, accrued expenses for service agreements with related parties amounted to €5,368 and €8,352 at December 31, 2020 and 2019. |
Schedule of lease agreements with related parties | Lease agreements with related parties in € THOUS 2020 2019 2018 Interest Lease Interest Lease Lease Lease Depreciation expense expense (1) Depreciation expense expense (1) income expense Fresenius SE 7,925 740 2,452 4,580 501 4,005 — 8,745 Fresenius SE affiliates 13,236 1,272 572 12,589 1,396 452 — 15,852 Total 21,161 2,012 3,024 17,169 1,897 4,457 — 24,597 (1) Short-term leases and expenses relating to variable lease payments are exempted from balance sheet recognition . Lease agreements with related parties in € THOUS December 31, 2020 December 31, 2019 Right-of-use Lease Right-of-use Lease asset liability asset liability Fresenius SE 58,073 58,610 30,336 30,820 Fresenius SE affiliates 80,188 81,410 91,879 92,126 Total 138,261 140,020 122,215 122,946 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | Cash and cash equivalents in € THOUS 2020 2019 Cash 746,851 768,706 Securities and time deposits 334,688 239,017 Cash and cash equivalents 1,081,539 1,007,723 |
Trade accounts and other rece_2
Trade accounts and other receivables from unrelated parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade accounts and other receivables from unrelated parties | |
Summary of trade accounts and other receivables from unrelated parties | Trade accounts and other receivables from unrelated parties in € THOUS December 31, December 31, 2020 2019 thereof credit- thereof credit- Impaired (1) Impaired (1) Trade accounts and other receivables, gross 3,295,417 376,459 3,562,704 366,497 thereof finance lease receivables 56,484 — 57,398 — less expected credit losses (142,372) (113,430) (141,358) (102,269) Trade accounts and other receivables 3,153,045 263,029 3,421,346 264,228 (1) Trade accounts receivable balances are "credit-impaired" when one or more events have occurred that have a detrimental impact on the estimated future cash flows of the receivable balance (e.g. overdue by more than one year, etc.). |
Summary of the development of expected credit losses from unrelated parties | Development of expected credit losses for doubtful accounts from unrelated parties in € THOUS 2020 2019 2018 Expected credit losses as of January 1 141,358 118,015 474,891 Change in valuation allowances as recorded in the consolidated statements of income 28,302 42,315 19,112 Write-offs and recoveries of amounts previously written-off (14,213) (18,587) (378,201) Foreign currency translation (13,075) (385) 2,213 Expected credit losses as of December 31 142,372 141,358 118,015 |
Summary of the aging analysis of trade accounts and other receivables from unrelated parties and the expected credit losses | The following tables show the aging analysis of trade accounts and other receivables from unrelated parties and expected credit losses as of December 31, 2020 and as of December 31, 2019: Aging analysis of trade accounts and other receivables from unrelated parties 2020 in € THOUS up to 3 3 to 6 6 to 12 more than not months months months 12 months overdue overdue overdue overdue overdue Total Trade accounts and other receivables 1,809,658 829,895 195,724 208,653 251,487 3,295,417 less expected credit losses (7,668) (4,204) (3,865) (10,568) (116,067) (142,372) Trade accounts and other receivables, net 1,801,990 825,691 191,859 198,085 135,420 3,153,045 Aging analysis of trade accounts and other receivables from unrelated parties 2019 in € THOUS up to 3 3 to 6 6 to 12 more than not months months months 12 months overdue overdue overdue overdue overdue Total Trade accounts receivable 1,997,671 899,987 229,012 184,768 251,266 3,562,704 less allowance for doubtful accounts (9,385) (8,411) (6,267) (13,325) (103,970) (141,358) Trade accounts receivable, net 1,988,286 891,576 222,745 171,443 147,296 3,421,346 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Schedule of inventories | Inventories in € THOUS 2020 2019 Finished goods 1,088,311 940,407 Health care supplies 473,164 399,585 Raw materials and purchased components 232,422 227,654 Work in process 101,413 95,632 Inventories 1,895,310 1,663,278 |
Other current assets (Tables)
Other current assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other current assets | |
Schedule of other current assets | Other current assets in € THOUS 2020 2019 Payments on account 278,788 110,078 Debt securities 161,688 133,322 Income Taxes Receivable 136,048 209,545 Other Taxes Receivable 108,375 127,880 Receivables for supplier rebates 90,388 51,296 Prepaid insurance 24,888 19,796 Notes receivable 20,599 5,131 Loans to customers or suppliers 19,147 11,427 Deposit / Guarantee / Security 17,577 22,226 Prepaid rent 13,082 26,374 Derivatives 6,470 2,513 Other 176,928 194,015 Other current assets 1,053,978 913,603 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment | |
Schedule of property, plant and equipment | Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Additions Reclassi- fications Disposals 2020 Land 63,992 (3,542) (352) 8,175 1,592 (283) 69,582 Buildings and improvements 3,644,437 (298,571) (13,130) 58,302 280,716 (58,582) 3,613,172 Machinery and equipment 5,139,656 (323,731) (9,615) 528,280 96,267 (197,855) 5,233,002 Construction in progress 509,282 (29,668) 2,928 333,082 (337,758) (6,388) 471,478 Property, plant and equipment 9,357,367 (655,512) (20,169) 927,839 40,817 (263,108) 9,387,234 Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2019 translation group Additions Reclassi- fications Disposals 2019 Land 58,887 802 2,824 466 3,153 (2,140) 63,992 Buildings and improvements 3,311,704 65,782 10,648 43,560 296,276 (83,533) 3,644,437 Machinery and equipment 4,541,906 59,529 86,743 569,352 127,613 (245,487) 5,139,656 Machinery, equipment and rental equipment under capitalized leases 89,734 2,151 — — (91,885) — — Construction in progress 505,168 7,692 (1,167) 368,577 (366,895) (4,093) 509,282 Property, plant and equipment 8,507,399 135,956 99,048 981,955 (31,738) (335,253) 9,357,367 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Additions Reclassi- fications Disposals 2020 Land 1,332 (15) — — — — 1,317 Buildings and improvements 2,052,820 (170,668) (7,122) 260,450 1,146 (38,607) 2,098,019 Machinery and equipment 3,112,934 (185,612) (16,657) 477,751 11,484 (168,866) 3,231,034 Construction in progress — — — — — — — Property, plant and equipment 5,167,086 (356,295) (23,779) 738,201 12,630 (207,473) 5,330,370 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2019 translation group Additions Reclassi- fications Disposals 2019 Land 1,295 19 — 20 — (2) 1,332 Buildings and improvements 1,818,053 32,818 (8,312) 255,683 8,805 (54,227) 2,052,820 Machinery and equipment 2,798,709 34,291 (7,023) 461,947 24,591 (199,581) 3,112,934 Machinery, equipment and rental equipment under capitalized leases 53,332 1,334 — — (54,666) — — Construction in progress — — — — — — — Property, plant and equipment 4,671,389 68,462 (15,335) 717,650 (21,270) (253,810) 5,167,086 Book value in € THOUS December 31, December 31, 2020 2019 Land 68,265 62,660 Buildings and improvements 1,515,153 1,591,617 Machinery and equipment 2,001,968 2,026,722 Construction in progress 471,478 509,282 Property, plant and equipment 4,056,864 4,190,281 |
Hyperinflationary economies | |
Property, plant and equipment | |
Schedule of property, plant and equipment | Effect of hyperinflation in € THOUS Acquisition or Accumulated December 31, manufacturing costs depreciation 2020 Land 2,784 — 2,784 Buildings and improvements 25,970 9,587 16,383 Machinery and equipment 43,041 27,322 15,719 Construction in progress 1,402 — 1,402 Property, plant and equipment 73,197 36,909 36,288 Acquisition or Accumulated December 31, manufacturing costs depreciation 2019 Land 2,307 — 2,307 Buildings and improvements 20,652 7,802 12,850 Machinery and equipment 33,237 21,470 11,767 Construction in progress 1,108 — 1,108 Property, plant and equipment 57,304 29,272 28,032 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets and goodwill | |
Schedule of intangible assets and goodwill | Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Additions Reclassi- fications Disposals 2020 Amortizable intangible assets Non-compete agreements 332,722 (26,948) 6,682 327 — (1,430) 311,353 Technology 742,621 (57,258) 185 — 182 — 685,730 Licenses and distribution agreements 202,287 (12,468) — 3,222 2,581 (7,159) 188,463 Customer relationships 68,931 (4,590) — — (1,567) — 62,774 Construction in progress 267,403 (10,499) — 146,057 (168,797) (892) 233,272 Internally developed intangibles 298,039 (24,621) — 12,487 117,584 (9,175) 394,314 Other 408,341 (22,371) 13,135 20,611 52,121 (102,756) 369,081 2,320,344 (158,755) 20,002 182,704 2,104 (121,412) 2,244,987 Non-amortizable intangible assets Trade names 255,047 (21,555) — — — — 233,492 Management contracts 3,225 (189) — — 16 — 3,052 258,272 (21,744) — — 16 — 236,544 Intangible assets 2,578,616 (180,499) 20,002 182,704 2,120 (121,412) 2,481,531 Goodwill 14,409,852 (1,148,174) 253,455 — — — 13,515,133 Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2019 translation group Additions Reclassi- fications Disposals 2019 Amortizable intangible assets Non-compete agreements 324,910 6,012 4,744 25 (274) (2,695) 332,722 Technology 153,164 (376) 589,833 — — — 742,621 Licenses and distribution agreements 235,625 4,678 (38,126) 783 5,093 (5,766) 202,287 Customer relationships 23,847 (116) 47,880 — (2,680) — 68,931 Construction in progress 148,002 1,208 36,892 171,446 (86,898) (3,247) 267,403 Internally developed intangibles 217,033 971 — 9,105 71,152 (222) 298,039 Other 381,390 6,852 (1,949) 11,007 17,763 (6,722) 408,341 1,483,971 19,229 639,274 192,366 4,156 (18,652) 2,320,344 Non-amortizable intangible assets (1) Tradename 182,901 3,326 41,002 — — — 227,229 Management contracts 3,134 91 — — — — 3,225 186,035 3,417 41,002 — — — 230,454 Intangible assets 1,670,006 22,646 680,276 192,366 4,156 (18,652) 2,550,798 Goodwill 12,209,606 217,996 1,589,653 — — — 14,017,255 (1) Non-amortizable intangible assets and Goodwill are presented net of accumulated impairments as of December 31, 2019. Amortization in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 2020 translation group Additions loss Reclassi- fications Disposals 31, 2020 Amortizable intangible assets Non-compete agreements 296,123 (24,152) (315) 10,697 — (6) (1,512) 280,835 Technology 175,010 (13,488) — 55,318 — (821) — 216,019 Licenses and distribution agreements 143,712 (7,933) (22) 3,545 — (181) (10,372) 128,749 Customer relationships 11,356 (613) — 4,134 — (1,567) — 13,310 Construction in progress — — — — — — — — Internally developed intangibles 169,185 (12,565) — 43,321 — (88) (4,477) 195,376 Other 329,082 (14,265) (75) 27,654 304 23 (103,157) 239,566 1,124,468 (73,016) (412) 144,669 304 (2,640) (119,518) 1,073,855 Non-amortizable intangible assets Trade names 27,818 (2,351) — — 490 — — 25,957 Management contracts — (52) — — 762 — — 710 27,818 (2,403) — — 1,252 — — 26,667 Intangible assets 1,152,286 (75,419) (412) 144,669 1,556 (2,640) (119,518) 1,100,522 Goodwill 392,597 (30,170) — — 193,978 — — 556,405 Amortization in € THOUS Foreign Changes in December January 1, currency consolidation Impairment 31, 2019 translation group Additions loss Reclassi- fications Disposals 2019 Amortizable intangible assets Non-compete agreements 282,296 5,235 (166) 11,868 — 26 (3,136) 296,123 Technology 124,605 1,140 — 49,265 — — — 175,010 Licenses and distribution agreements 131,492 2,607 — 14,293 — — (4,680) 143,712 Customer relationships 7,245 12 — 4,099 — — — 11,356 Construction in progress — — — — — — — — Internally developed intangibles 138,343 1,328 — 28,722 932 360 (500) 169,185 Other (1) 304,694 4,795 (3,606) 27,235 — 1,410 (5,446) 329,082 988,675 15,117 (3,772) 135,482 932 1,796 (13,762) 1,124,468 (1) Non-amortizable intangible assets and Goodwill are presented net of accumulated impairments as of December 31, 2019. Book value in € THOUS December 31, 2020 December 31, 2019 Amortizable intangible assets Non-compete agreements 30,518 36,599 Technology 469,711 567,611 Licenses and distribution agreements 59,714 58,575 Customer relationships 49,464 57,575 Construction in progress 233,272 267,403 Internally developed intangibles 198,938 128,854 Other 129,515 79,259 1,171,132 1,195,876 Non-amortizable intangible assets Trade names 207,535 227,229 Management contracts 2,342 3,225 209,877 230,454 Intangible assets 1,381,009 1,426,330 Goodwill 12,958,728 14,017,255 |
Schedule of the carrying amount of goodwill and indefinite-lived intangibles by geographical area | Allocation of the carrying amount to the groups of CGUs in € THOUS North America EMEA Asia-Pacific Latin America 2020 2019 2020 2019 2020 2019 2020 2019 Goodwill 10,908,633 11,762,791 1,328,543 1,342,730 720,225 716,665 1,327 195,069 Management contracts with indefinite useful life — — — — 2,342 3,225 — — Trade names with indefinite useful life 207,535 226,692 — — — — — 537 |
Hyperinflationary economies | |
Intangible assets and goodwill | |
Schedule of intangible assets and goodwill | Effect of hyperinflation in € THOUS Accumulated Acquisition or amortization and manufacturing costs impairments December 31, 2020 Amortizable intangible assets Internally developed intangibles 2,081 1,362 719 Other 2,860 1,042 1,818 Intangible assets 4,941 2,404 2,537 Goodwill 33,564 33,540 24 Accumulated Acquisition or amortization and manufacturing costs impairments December 31, 2019 Amortizable intangible assets Internally developed intangibles 1,971 1,281 690 Other 1,697 727 970 Intangible assets 3,668 2,008 1,660 Goodwill 28,057 2,926 25,131 |
Current provisions and other _2
Current provisions and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Current provisions and other current liabilities | |
Summary of reconciliation of the current provisions | Development of current provisions in € THOUS Foreign Changes in January 1, currency consolidation 2020 translation group Utilized Reversed Additions Reclassifications December 31, 2020 Self-insurance programs 219,866 (18,963) — — (101,497) 107,023 — 206,429 Personnel expenses 90,526 (3,459) (1,226) (77,774) (8,092) 29,166 26,124 55,265 Risk of lawsuit 20,981 (1,992) 204 (531) (111) 5,998 (159) 24,390 Other current provisions 40,683 (1,778) 545 (8,716) (5,732) 12,912 (160) 37,754 Current provisions 372,056 (26,192) (477) (87,021) (115,432) 155,099 25,805 323,838 |
Schedule of other current liabilities | Other current liabilities in € THOUS 2020 2019 Personnel liabilities 732,771 647,508 Put option liabilities 645,784 654,963 Contract liabilities 571,420 22,795 Unapplied cash and receivable credits 495,962 482,682 Invoices outstanding 180,227 178,209 VAT and other (non-income) tax liabilities 113,595 104,388 Interest liabilities 73,140 73,593 Derivatives 40,923 13,246 Deferred Income 34,885 8,145 Bonuses, commissions 32,971 27,510 Legal matters, advisory and audit fees 31,902 27,979 Variable payments outstanding for acquisitions 19,313 34,253 Other liabilities 220,345 216,923 Other current liabilities 3,193,238 2,492,194 |
Short-term debt (Tables)
Short-term debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-term debts | |
Schedule of short-term debt and short-term debt from related parties | Short-term debt in € THOUS 2020 2019 Commercial paper program 19,995 999,732 Borrowings under lines of credit 42,442 143,875 Other 513 6,381 Short-term debt from unrelated parties 62,950 1,149,988 Short-term debt from related parties (see note 5 c) 16,320 21,865 Short-term debt 79,270 1,171,853 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term debts | |
Schedule of long-term debt | Long-term debt in € THOUS 2020 2019 Amended 2012 Credit Agreement 1,162,342 1,901,372 Bonds 6,408,118 4,966,619 Convertible Bonds — 399,939 Accounts Receivable Facility — 379,570 Other 238,000 258,057 Long-term debt 7,808,460 7,905,557 Less current portion (1,008,359) (1,447,239) Long-term debt, less current portion 6,800,101 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 2020 2020 (1) Revolving credit USD 2017 / 2022 $ 900,000 € 733,436 $ — € — Revolving credit EUR 2017 / 2022 € 600,000 € 600,000 € — € — USD term loan 2017 / 2022 $ 1,110,000 € 904,572 $ 1,110,000 € 904,572 EUR term loan 2017 / 2022 € 259,000 € 259,000 € 259,000 € 259,000 EUR term loan 2017 / 2020 (2) € — € — € — € — € 2,497,008 € 1,163,572 Maximum amount available Balance outstanding 2019 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. (2) The EUR term loan 2017 / 2020 in the amount of €400,000 due on July 30, 2020, was repaid on May 29, 2020. |
Schedule of bonds | Bonds in THOUS Face Book value Book value Issuer/Transaction amount Maturity Coupon 2020 in € 2019 in € FMC US Finance II, Inc. 2014 $ 500,000 October 15, 2020 (1) 4.125 % — 444,507 FMC US Finance, Inc. 2011 $ 650,000 February 15, 2021 (2) 5.75 % 529,509 577,069 FMC Finance VII S.A. 2011 € 300,000 February 15, 2021 (2) 5.250 % 299,961 299,498 FMC US Finance II, Inc. 2012 $ 700,000 January 31, 2022 5.875 % 569,987 622,135 Fresenius Medical Care AG & Co. KGaA, 2019 € 650,000 November 29, 2023 0.25 % 647,719 646,936 FMC US Finance II, Inc. 2014 $ 400,000 October 15, 2024 4.75 % 324,725 354,338 Fresenius Medical Care AG & Co. KGaA, 2018 € 500,000 July 11, 2025 1.50 % 496,841 496,138 Fresenius Medical Care AG & Co. KGaA, 2020 € 500,000 May 29, 2026 1.00 % 495,598 — Fresenius Medical Care AG & Co. KGaA, 2019 € 600,000 November 30, 2026 0.625 % 594,196 593,216 FMC US Finance III, Inc. 2019 $ 500,000 June 15, 2029 3.75 % 399,753 435,673 Fresenius Medical Care AG & Co. KGaA, 2019 € 500,000 November 29, 2029 1.25 % 497,138 497,109 Fresenius Medical Care AG & Co. KGaA, 2020 € 750,000 May 29, 2030 1.50 % 745,454 — FMC US Finance III, Inc. 2020 $ 1,000,000 February 16, 2031 2.375 % 807,237 — 6,408,118 4,966,619 (1) Redeemed prior to maturity on July 17, 2020 (2) For further information on the repayment of these bonds, see note 27. |
Schedule of accounts receivable facility | Accounts Receivable Facility - Maximum amount available and balance outstanding in THOUS Maximum amount available Balance outstanding 2020 (1) 2020 (2) Accounts Receivable Facility $ 900,000 € 733,437 $ — € — Maximum amount available Balance outstanding 2019 (1) 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. |
Non-current provisions and ot_2
Non-current provisions and other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Non-current provisions and other non-current liabilities | |
Schedule of development of non-current provisions | Development of non-current provisions in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Utilized Reversed Additions Reclassifications 2020 Personnel expenses 60,366 (4,569) 710 (1,747) (3,576) 20,190 (26,630) 44,744 Interest payable related to income taxes 26,111 (197) — — — 3,161 — 29,075 Other non-current provisions 22,326 (2,859) 3,199 (1,644) (960) 854 825 21,741 Non-current provisions 108,803 (7,625) 3,909 (3,391) (4,536) 24,205 (25,805) 95,560 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee benefit plans | |
Schedule of changes in benefit obligations, plan assets, the net funded position and the net liability of the pension plans | Net pension liability in € THOUS 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year 976,467 842,601 Foreign currency translation (gains) losses (35,216) 7,459 Current service cost 40,213 30,070 Past service cost (244) — Interest cost 21,298 28,016 Transfer of plan participants 252 194 Actuarial (gains) losses arising from changes in financial assumptions 15,480 140,923 Actuarial (gains) losses arising from changes in demographic assumptions (87) (2,306) Actuarial (gains) losses arising from experience adjustments 9,278 (4,873) Remeasurements 24,671 133,744 Benefits paid (30,873) (60,863) Settlements (331) (4,754) Benefit obligation at end of year 996,237 976,467 Change in plan assets: Fair value of plan assets at beginning of year 316,124 317,585 Foreign currency translation gains (losses) (28,316) 6,130 Interest income from plan assets 10,846 14,108 Actuarial gains (losses) arising from experience adjustments 28,847 34,131 Actual return on plan assets 39,693 48,239 Employer contributions 9,901 1,131 Benefits paid (26,329) (56,961) Fair value of plan assets at end of year 311,073 316,124 Net funded position at end of year 685,164 660,343 Benefit plans offered by other subsidiaries Net pension liability |
Schedule of weighted-average assumptions utilized in determining benefit obligations | Weighted average assumptions in % 2020 2019 Discount rate 2.02 2.35 Rate of compensation increase 3.17 3.18 Rate of pension increase 1.46 1.70 |
Schedule of sensitivity analysis | Sensitivity analysis in € THOUS 0.5% 0.5% increase decrease Discount rate (91,605) 106,665 Rate of compensation increase 16,509 (16,254) Rate of pension increase 47,915 (43,190) |
Schedule of components of net periodic benefit cost | Components of net periodic benefit cost in € THOUS 2020 2019 2018 Service cost 40,213 30,070 25,467 Net interest cost 10,452 13,908 13,056 Prior service cost (244) — — (Gains) losses from settlements (331) (4,754) — Net periodic benefit costs 50,090 39,224 38,523 |
Schedule of weighted-average assumptions utilized in determining net periodic benefit cost | Weighted average assumptions in % 2020 2019 2018 Discount rate 2.35 3.27 3.08 Rate of compensation increase 3.18 3.21 3.22 Rate of pension increase 1.70 1.69 1.45 |
Schedule of expected benefit payments | Defined benefit pension plans: cash outflows in € THOUS 2020 2019 1 year 24,645 28,706 1 - 3 years 53,882 56,577 3 - 5 years 60,444 62,441 5 - 10 years 178,971 183,896 Total 317,942 331,620 |
Schedule of pension plan assets | Fair values of plan assets in € THOUS Quoted prices Quoted prices in active in active markets for Significant Significant markets for Significant Significant identical observable unobservable identical observable unobservable Asset category Total assets inputs inputs Total assets inputs inputs (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) 2020 2019 Equity investments Index funds (1) 88,169 8,926 79,243 — 85,321 8,440 76,881 — Fixed income investments Government securities (2) 15,720 15,441 279 — 2,875 2,547 328 — Corporate bonds (3) 182,850 — 182,850 — 202,642 — 202,642 — Other bonds (4) 16,576 — 9,380 7,196 10,179 — 2,762 7,417 U.S. treasury money market funds (5) 7,654 7,654 — — 14,999 14,999 — — Other types of investments Cash, money market and mutual funds (6) 104 104 — — 108 108 — — Total 311,073 32,125 271,752 7,196 316,124 26,094 282,613 7,417 (1) This category comprises low-cost equity index funds not actively managed that track the S&P 500, S&P 400, Russell 2000, MSCI Emerging Markets Index and the Morgan Stanley International EAFE Index. (2) This Category comprises fixed income investments by the U.S. government and government sponsored entities. (3) This Category primarily represents investment grade bonds of U.S. issuers from diverse industries. (4) This Category comprises private placement bonds as well as collateralized mortgage obligations. (5) This Category represents funds that invest in U.S. treasury obligations directly or in U.S. treasury backed obligations. (6) This Category represents cash, money market funds as well as mutual funds comprised of high grade corporate bonds. |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Shareholders' equity | |
Schedule of number of shares acquired in the context of the buy-back programs as well as the repurchased 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 (1) shares in € in € THOUS December 31, 2017 65.63 1,659,951 108,931 Purchase of Treasury Stock May 2018 86.69 173,274 15,020 June 2018 86.14 257,726 22,201 Repurchased Treasury Stock 86.37 431,000 37,221 Retirement of repurchased Treasury Stock December 2018 87.23 1,091,000 95,159 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 April 2020 63.07 694,813 43,824 Repurchased Treasury Stock 64.35 5,687,473 365,988 Retirement of repurchased Treasury Stock December 2020 62.44 11,795,102 736,490 TOTAL — — — (1) All shares purchased between May 12, 2016 and April 1, 2020 were purchased pursuant to the share purchase program authorized by the AGM resolution of May 12, 2016. The Company did not purchase any shares other than pursuant to such program. (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 a lower number of shares purchased, resulted in a particularly high average price per share for the month. |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Capital management | |
Schedule of equity and debt | Total equity, debt and total assets in € THOUS 2020 2019 Total equity including noncontrolling interests 12,331,310 13,227,237 Debt and lease liabilities 12,380,017 13,782,448 Total assets 31,689,036 32,934,735 Debt and lease liabilities in % of total assets 39.1 % 41.8 % Total equity in % of total assets (equity ratio) 38.9 % 40.2 % |
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. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share | |
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 2020 2019 2018 Numerator: Net income attributable to shareholders of FMC-AG & Co. KGaA 1,164,377 1,199,619 1,981,924 Denominators: Weighted average number of shares outstanding 294,055,525 302,691,397 306,541,706 Potentially dilutive shares 223,429 57,892 684,681 Basic earnings per share 3.96 3.96 6.47 Diluted earnings per share 3.96 3.96 6.45 |
Share-based plans (Tables)
Share-based plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based plans | |
Summary of overview of plans | MB LTIP 2020 LTIP 2019 MB LTIP 2019 NxStage LTIP LTIP 2016 Eligible persons Members of the Other Plan Members of the Other Plan Members of the Grant in the years 2020–2023 2019–2021 2019 2019 2016–2018 Months in which a November (2020), (1) July, December July, December February July, December (1) If the appointment as a member of the Management Board comes into effect after the regular grant date in March, the grant date may differ. |
Summary of performance targets to be applied for the fiscal year for Performance Shares granted | The performance targets to be applied for the fiscal year for Performance Shares granted in the fiscal year under the MB LTIP 2020 and under the LTIP 2019 are presented in the table below. Growth/ROIC Target achievement Weight Performance target 1: ≤ 1% 0% Revenue Growth 6% 100% 1/3 ≥ 11% 200% Performance target 2: ≤ 0% 0% Net Income Growth 5% 100% 1/3 ≥ 10% 200% Performance target 3: ≤ 5.5% 0% ROIC 6% 100% 1/3 ≥ 6.5% 200% |
Summary of information on holdings under share-based plans | At December 31, 2020 and 2019, the members of the Management Board and plan participants other than the members of the Management Board held the following Performance Shares under the share-based plans: Performance Shares 2020 2019 Members of the Members of the Management Other plan Management Other plan Board participants Total Board participants Total MB LTIP 2020 159,607 — 159,607 — — — LTIP 2019 8,869 1,522,102 1,530,971 — 797,659 797,659 MB LTIP 2019 102,435 12,564 114,999 102,435 12,564 114,999 NxStage LTIP — 40,530 40,530 — 45,007 45,007 LTIP 2016 135,473 947,133 1,082,606 211,878 1,747,142 1,959,020 |
Schedule of reconciliations for stock options outstanding | Transactions Weighted average exercise Options price Stock options for shares (in thousands) € Balance at December 31, 2018 3,896 68.85 Granted — — Exercised (1) 329 51.72 Forfeited 78 75.08 Balance at December 31, 2019 3,489 70.32 Granted — — Exercised (2) 235 53.00 Expired 53 75.65 Balance at December 31, 2020 3,201 71.50 (1) The average share price at the date of exercise of the options was €67.62. (2) The average share price at the date of exercise of the options was €71.75. |
Summary of fully vested options outstanding and exercisable by price range | Stock options 2020 Outstanding Exercisable Weighted Weighted Weighted Range of average average average exercise Number remaining exercise Number exercise prices of contractual price of price in € options life in € options in € 45.01 - 50.00 630,870 1.44 49.91 630,870 49.91 50.01 - 55.00 — — — — — 55.01 - 60.00 31,080 1.92 58.63 31,080 58.63 60.01 - 65.00 — — — — — 65.01 - 70.00 — — — — — 70.01 - 75.00 — — — — — 75.01 - 80.00 2,539,124 2.58 77.03 2,539,124 77.03 3,201,074 2.35 71.50 3,201,074 71.50 Stock options 2019 Outstanding Exercisable Weighted Weighted Weighted Range of average average average exercise Number remaining exercise Number exercise prices of contractual price of price in € options life in € options in € 45.01 - 50.00 767,001 2.38 49.90 767,001 49.90 50.01 - 55.00 825 0.93 52.27 825 52.27 55.01 - 60.00 133,375 1.24 57.68 133,375 57.68 60.01 - 65.00 — — — — — 65.01 - 70.00 — — — — — 70.01 - 75.00 — — — — — 75.01 - 80.00 2,587,788 3.58 77.03 2,587,788 77.03 3,488,989 3.23 70.32 3,488,989 70.32 |
Summary of compensation expense recognized for Performance Shares | Compensation expense related to cash-settled plans in € THOUS 2020 2019 2018 MB LTIP 2020 2,115 — — LTIP 2019 13,689 4,771 — MB LTIP 2019 820 656 — NxStage LTIP 513 572 — LTIP 2016 21,864 30,304 4,152 LTIP 2011 1,894 5,724 (8,799) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of effects from lease agreements on the consolidated statements of income | Leasing in the consolidated statements of income in € THOUS 2020 2019 Depreciation on right-of-use assets 703,999 700,276 Impairments on right-of-use assets 3,496 38,820 Expenses relating to short-term leases 49,532 52,108 Expenses relating to leases of low-value assets 27,359 25,239 Expenses relating to variable lease payments 12,442 10,814 Income from subleasing right-of-use assets 4,165 4,367 Interest expense on lease liabilities 159,148 171,724 |
Schedule of acquisition costs and the accumulated depreciation of right-of-use assets and hyperinflationary effects on right-of-use assets | Acquisition costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2020 translation group Additions Reclassi- fications Disposals 2020 Right-of-use assets: Land 30,575 (2,240) (24) 6,384 98 (283) 34,510 Right-of-use assets: Buildings and improvements 4,590,695 (375,099) (12,391) 851,392 (613) (36,199) 5,017,785 Right-of-use assets: Machinery and equipment 434,718 (34,013) (1,346) 34,066 (35,189) (7,334) 390,902 Right-of-use assets: Advance Payments 24 — — 138 (58) (104) — Right-of-use assets 5,056,012 (411,352) (13,761) 891,980 (35,762) (43,920) 5,443,197 Acquisition costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2019 translation group Additions Reclassi- fications Disposals 2019 Right-of-use assets: Land 28,717 447 (14) 2,300 512 (1,387) 30,575 Right-of-use assets: Buildings and improvements 3,840,380 65,603 (3,577) 694,031 15,074 (20,816) 4,590,695 Right-of-use assets: Machinery and equipment 407,436 7,639 3,257 23,243 18,002 (24,859) 434,718 Right-of-use assets: Advance Payments — — — 24 — — 24 Right-of-use assets 4,276,533 73,689 (334) 719,598 33,588 (47,062) 5,056,012 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2020 translation group Additions loss Reclassi- fications Disposals 2020 Right-of-use assets: Land 4,502 (419) (4) 4,242 — (16) (199) 8,106 Right-of-use assets: Buildings and improvements 613,926 (77,935) (5,319) 604,493 3,496 (304) (18,338) 1,120,019 Right-of-use assets: Machinery and equipment 112,469 (14,229) (88) 95,264 — (2,494) (5,738) 185,184 Right-of-use assets: Advance Payments — — — — — — — — Right-of-use assets 730,897 (92,583) (5,411) 703,999 3,496 (2,814) (24,275) 1,313,309 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2019 translation group Additions loss Reclassi- fications Disposals 2019 Right-of-use assets: Land — 14 (4) 3,936 134 128 294 4,502 Right-of-use assets: Buildings and improvements — (1,364) (1,768) 581,081 38,686 3,424 (6,133) 613,926 Right-of-use assets: Machinery and equipment — (291) (105) 115,259 — 21,930 (24,324) 112,469 Right-of-use assets: Advance Payments — — — — — — — — Right-of-use assets — (1,641) (1,877) 700,276 38,820 25,482 (30,163) 730,897 Book value in € THOUS December 31, December 31, 2020 2019 Right-of-use assets: Land 26,404 26,073 Right-of-use assets: Buildings and improvements 3,897,766 3,976,769 Right-of-use assets: Machinery and equipment 205,718 322,249 Right-of-use assets: Advance Payments — 24 Right-of-use assets 4,129,888 4,325,115 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial instruments | |
Schedule of carrying amount and fair value of financial instruments | Carrying amount and fair value of financial instruments in € THOUS December 31, 2020 Carrying amount Fair value Amortized cost FVPL FVOCI Not classified Total Level 1 Level 2 Level 3 Cash and cash equivalents (1) 781,029 300,510 — — 1,081,539 300,367 143 — Trade accounts and other receivables from unrelated parties 3,080,770 — — 72,275 3,153,045 — — — Accounts receivable from related parties 91,438 — — — 91,438 — — — Derivatives - cash flow hedging instruments — — — 1,130 1,130 — 1,130 — Derivatives - not designated as hedging instruments — 5,367 — — 5,367 — 5,367 — Equity investments — 191,739 56,911 — 248,650 11,911 48,221 188,518 Debt securities — 103,387 297,954 — 401,341 396,392 4,949 — Other financial assets 195,926 — — 108,830 304,756 — — — Other current and non-current assets 195,926 300,493 354,865 109,960 961,244 — — — Financial assets 4,149,163 601,003 354,865 182,235 5,287,266 — — — Accounts payable to unrelated parties 731,993 — — — 731,993 — — — Accounts payable to related parties 95,401 — — — 95,401 — — — Short-term debt 79,270 — — — 79,270 — — — Long-term debt 7,808,460 — — — 7,808,460 6,764,681 1,404,640 — Lease liabilities — — — 4,492,287 4,492,287 — — — Derivatives - cash flow hedging instruments — — — 1,667 1,667 — 1,667 — Derivatives - not designated as hedging instruments — 39,281 — — 39,281 — 39,281 — Variable payments outstanding for acquisitions — 66,359 — — 66,359 — — 66,359 Put option liabilities — — — 882,422 882,422 — — 882,422 Other financial liabilities 1,537,783 — — — 1,537,783 — — — Other current and non-current liabilities 1,537,783 105,640 — 884,089 2,527,512 — — — Financial liabilities 10,252,907 105,640 — 5,376,376 15,734,923 — — — (1) Highly liquid short-term investments are mainly 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 from unrelated parties 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 to unrelated parties 716,526 — — — 716,526 — — — Accounts payable to related parties 118,663 — — — 118,663 — — — Short-term debt 1,171,853 — — — 1,171,853 — — — Long-term debt 7,905,557 — — — 7,905,557 5,555,475 2,537,932 — Lease liabilities — — — 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 Put option liabilities — — — 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 equity investment at FVOCI | Equity investments measured at FVOCI in € THOUS Listed equity investments 11,911 13,110 Non-listed equity investments 45,000 37,865 Equity investments FVOCI 56,911 50,975 |
Schedule of reconciliation of level 3 financial instruments | Reconciliation from beginning to ending balance of level 3 financial instruments in € THOUS 2020 2019 2018 Variable Variable Variable payments payments payments Equity outstanding for Put option Equity outstanding for Put option outstanding for Put option investments acquisitions liabilities investments acquisitions liabilities acquisitions liabilities Beginning balance at January 1, 183,054 89,677 934,425 — 172,278 818,871 205,792 830,773 Transfer from Level 2 — — — 186,427 — — — — Increase — 17,253 51,388 2,233 4,828 109,109 19,051 53,731 Decrease — (35,764) (99,877) — (43,941) (20,269) (15,734) (50,706) Gain / loss recognized in profit or loss (1) 22,489 (1,996) — 128 (41,537) — (36,327) — Gain / loss recognized in equity — — 73,993 — — 14,523 — (48,075) Dividends — — — — — — — — Foreign currency translation and other changes (17,025) (2,811) (77,507) (5,734) (1,951) 12,191 (504) 33,148 Ending balance at December 31, 188,518 66,359 882,422 183,054 89,677 934,425 172,278 818,871 (1) Includes realized and unrealized gains / losses. |
Schedule of average hedging rate and the nominal amount of the foreign exchange forward contracts | Significant currency pairs in € THOUS Nominal Average amount hedging rate EUR/USD 988,595 1.1902 EUR/AUD 212,264 1.6303 EUR/GBP 58,273 0.9041 |
Schedule of derivative financial instruments valuation | Derivative financial instruments valuation in € THOUS 2020 2019 Assets Liabilities Assets Liabilities Current Foreign exchange contracts 1,103 (1,642) 107 (2,484) Non-current Foreign exchange contracts 27 (25) — (50) Derivatives in cash flow hedging relationships 1,130 (1,667) 107 (2,534) Current Foreign exchange contracts 5,367 (39,281) 2,406 (10,762) Non-current Derivatives not designated as hedging instruments 5,367 (39,281) 2,406 (10,762) |
Schedule of effect of derivatives in cash flow hedging on the consolidated financial statements | The effect of derivatives in cash flow hedging relationships on the consolidated financial statements in € THOUS Fair value gain Fair value gain (loss) recognized in (loss) recognized in Amount Amount AOCI on hedging AOCI on hedging Location of reclassified reclassified instrument (hedge instrument (cost of reclassified from hedge from cost of reserve) hedging) amounts from AOCI reserve hedging For the year ended December 31, 2020 Interest rate contracts — — Interest income/expense 1,249 — Foreign exchange contracts 6,123 (2,062) thereof: Revenue (4,612) 1,990 Costs of revenue (2,662) 3,085 Inventories (286) (46) Total 6,123 (2,062) (6,311) 5,029 For the year ended December 31, 2019 Interest rate contracts (12,807) — Interest income/expense 2,753 — Foreign exchange contracts (3,189) (1,473) thereof: Revenue 1,331 1,480 Costs of revenue 2,509 (1,913) Inventories (269) (55) Total (15,996) (1,473) 6,324 (488) |
Schedule of effect of derivatives not in hedging on the consolidated financial statements | The effect of derivatives not designated as hedging instruments on the consolidated financial statements in € THOUS Amount of (gain) loss recognized in Location of (gain) loss recognized in income on derivatives income on derivatives for the year ended, December 31, 2020 2019 Foreign exchange contracts Selling, general and administrative expenses 48,925 7,686 Foreign exchange contracts Interest income/expense 3,800 16,491 Derivatives embedded in the Convertible Bonds Interest income/expense — (11,820) Share Options to secure the Convertible Bonds Interest income/expense — 11,820 Derivatives not designated as hedging instruments 52,725 24,177 |
Schedule of expected timing for cash flows related to derivative financial instruments | Cash Flow from derivative financial instruments in € THOUS Expected in period of Less than 1 year 1 - 3 years 3 - 5 years Over 5 years 2020 Designated as hedging instrument (539) 2 — — Not designated as hedging instrument (33,914) — — — 2019 Designated as hedging instrument (2,377) (50) — — Not designated as hedging instrument (8,356) — — — |
Schedule of non-discounted payments agreed by contract | Payments agreed by contracts in € THOUS Payments due by period of Less than 1 year 1 - 3 years 3 - 5 years Over 5 years 2020 Accounts payable to unrelated parties 731,993 1 — — Accounts payable to related parties 95,401 — — — Other current financial liabilities 1,537,782 — — — Short-term debt (1) 79,270 — — — Amended 2012 Credit Agreement (2) 138,326 1,043,542 — — Bonds 976,211 1,416,985 987,015 4,031,570 Other long-term debt 53,097 66,310 70,339 48,332 Lease liabilities (1) 735,890 1,375,720 1,026,391 2,053,642 Variable payments outstanding for acquisitions 19,313 18,687 28,261 8,273 Put option liabilities 645,784 102,142 93,357 74,648 Letters of credit 11,091 — — — Derivative financial instruments - in cash flow hedging relationships 1,642 25 — — Derivative financial instruments - not designated as hedging instrument 39,281 — — — 2019 Accounts payable to unrelated parties 716,526 — — — Accounts payable to related parties 118,663 — — — Other current financial liabilities 1,414,464 — — — Short-term debt (1) 1,171,853 — — — Amended 2012 Credit Agreement (2) 577,115 1,424,798 — — Bonds and Convertible Bonds 1,004,042 1,686,586 1,109,894 2,166,434 Accounts Receivable Facility (2) 7,518 387,468 — — Other long-term debt 68,078 66,531 74,131 49,467 Lease liabilities (1) 789,145 1,479,119 1,112,401 2,190,926 Variable payments outstanding for acquisitions 34,253 26,710 26,325 9,503 Put option liabilities 654,963 114,950 136,163 69,190 Letters of credit 21,893 — — — Derivative financial instruments - in cash flow hedging relationships 2,484 50 — — Derivative financial instruments - not designated as hedging instrument 10,762 — — — (1) Includes amounts from related parties. (2) Future interest payments for financial liabilities with variable interest rates were calculated using the latest interest rates fixed prior to December 31, 2020 and 2019. |
Other comprehensive income (l_2
Other comprehensive income (loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other comprehensive income (loss) | |
Schedule of components of other comprehensive income (loss) | Other comprehensive income (loss) in € THOUS 2020 2019 2018 Pretax Tax effect Net Pretax Tax effect Net Pretax Tax effect Net Components that will not be reclassified to profit or loss: Equity method investees - share of OCI 58,166 — 58,166 — — — — — — FVOCI equity investments 19,439 (2,326) 17,113 — — — — — — Actuarial gain (loss) on defined benefit pension plans 4,176 (1,191) 2,985 (99,613) 30,245 (69,368) (28,070) 7,713 (20,357) Components that may be reclassified subsequently to profit or loss: Foreign currency translation adjustment (1,359,397) — (1,359,397) 263,835 — 263,835 327,317 — 327,317 FVOCI debt securities 29,096 (5,048) 24,048 — — — — — — Other comprehensive income (loss) relating to cash flow hedges: Changes in fair value of cash flow hedging reserve during the period 6,123 (1,839) 4,284 (15,996) 3,892 (12,104) 4,924 (1,301) 3,623 Cost of hedging (2,062) 608 (1,454) (1,473) 460 (1,013) (2,244) 603 (1,641) Reclassification adjustments (1,282) 482 (800) 5,836 (1,678) 4,158 20,880 (6,036) 14,844 Total other comprehensive income (loss) relating to cash flow hedges 2,779 (749) 2,030 (11,633) 2,674 (8,959) 23,560 (6,734) 16,826 Other comprehensive income (loss) (1,245,741) (9,314) (1,255,055) 152,589 32,919 185,508 322,807 979 323,786 |
Supplementary cash flow infor_2
Supplementary cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplementary cash flow information | |
Schedule of additional information provided with respect to net cash provided by (used in) investing activities | Details for net cash provided by (used in) investing activities in € THOUS 2020 2019 2018 Details for acquisitions Assets acquired (337,300) (2,639,432) (360,375) Liabilities assumed 41,761 260,120 21,122 Put option liabilities 26,801 72,151 11,901 Noncontrolling interests 10,339 65,217 45,319 Non-cash consideration 33,804 26,637 28,530 Cash paid (224,595) (2,215,307) (253,503) Less cash acquired 9,759 55,210 3,538 Net cash paid for acquisitions (214,836) (2,160,097) (249,965) Cash paid for investments (10,899) (23,290) (109,948) Cash paid for intangible assets (33,250) (37,972) (85,103) Total cash paid for acquisitions and investments, net of cash acquired, and purchases of intangible assets (258,985) (2,221,359) (445,016) Details for divestitures Cash received from sale of subsidiaries or other businesses, less cash disposed (1) 14,608 43,317 1,532,724 Cash received from repayment of loans — — 79 Proceeds from divestitures 14,608 43,317 1,532,803 (1) In 2018, cash received from sale of subsidiaries or other businesses, less cash disposed included a cash payment of €142,593 relating to tax payments in connection with the divestiture of Sound. |
Schedule of reconciliation of debt to net cash provided by (used in) financing activities | The following table shows a reconciliation of debt to net cash provided by (used in) financing activities for 2020: Reconciliation of debt to net cash provided by (used in) financing activities in € THOUS Non-cash changes Acquisitions Foreign Amortization January 1, Cash (net of currency of debt December 31, 2020 Flow divestitures) translation issuance costs Other (1) 2020 Short-term debt from unrelated parties 1,149,988 (1,091,410) 4,093 (3,431) — 3,710 62,950 Short-term debt from related parties 21,865 (5,469) — — — (76) 16,320 Long-term debt (excluding Accounts Receivable Facility) (2) 7,525,987 557,433 22,644 (309,632) 10,466 1,562 7,808,460 Accounts Receivable Facility 379,570 (373,840) — (6,385) 655 — — Lease liabilities from unrelated parties 4,582,092 (683,614) (9,583) (349,656) — 813,028 4,352,267 Lease liabilities from related parties 122,946 (20,185) — (169) — 37,428 140,020 (1) Includes newly concluded leases, lease modifications and reassessments of leases with third parties and related parties. (2) Cash Flow excluding repayments of variable payments outstanding for acquisitions in the amount of €22,746. The following table shows a reconciliation of debt to net cash provided by (used in) financing activities for 2019: Reconciliation of debt to net cash provided by (used in) financing activities in € THOUS Non-cash changes Acquisitions Foreign Amortization January 1, Cash (net of currency of debt December 31, 2019 (1) Flow divestitures) translation issuance costs Other (2) 2019 Short-term debt from unrelated parties 1,205,294 (70,398) 14,611 618 — (137) 1,149,988 Short-term debt from related parties 188,900 (167,111) — — — 76 21,865 Long-term debt (excluding Accounts Receivable Facility) (3) 6,115,890 1,285,603 22,815 85,424 15,147 1,108 7,525,987 Accounts Receivable Facility — 381,430 — (2,435) 575 — 379,570 Lease liabilities from unrelated parties 4,451,081 (671,403) 2,141 81,817 — 718,456 4,582,092 Lease liabilities from related parties 137,494 (16,340) — 35 — 1,757 122,946 (1) Line item "Long-term Debt (excluding Accounts Receivable Facility)" as of December 31, 2018, was labeled as "Long-term debt and capital lease obligations (excluding Accounts Receivable Facility)" and included liabilities from capital leases in accordance with IAS 17 of €36,144; As of January 1, 2019, these liabilities have been transferred to the line item "Lease liabilities". Furthermore, upon the initial application of IFRS 16 as of January 1, 2019, Lease liabilities from unrelated parties of €4,414,937 and Lease liabilities from related parties of €137,494 were recognized. (2) Includes newly concluded leases, lease modifications and reassessments of leases with third parties and related parties. (3) Cash Flow excluding repayments of variable payments outstanding for acquisitions in the amount of €41,803. |
Segment and corporate informa_2
Segment and corporate information (Tables) | 12 Months Ended |
Dec. 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 (1) Total 2020 Revenue from health care services 11,060,231 1,364,976 876,036 484,930 13,786,173 24,416 13,810,589 Revenue from health care products 1,094,828 1,363,820 969,674 196,445 3,624,767 15,228 3,639,995 Revenue from contracts with customers 12,155,059 2,728,796 1,845,710 681,375 17,410,940 39,644 17,450,584 Other revenue external customers 323,361 33,792 48,468 2,858 408,479 — 408,479 Revenue external customers 12,478,420 2,762,588 1,894,178 684,233 17,819,419 39,644 17,859,063 Inter - segment revenue 28,753 5,933 239 304 35,229 (35,229) — Revenue 12,507,173 2,768,521 1,894,417 684,537 17,854,648 4,415 17,859,063 Operating income 2,119,737 411,674 343,632 (156,555) 2,718,488 (414,079) 2,304,409 Interest (368,019) Income before income taxes 1,936,390 Depreciation and amortization (997,509) (191,204) (110,400) (35,731) (1,334,844) (252,025) (1,586,869) Impairment loss (1,231) (2,266) (1,065) (194,468) (199,030) — (199,030) Income (loss) from equity method investees 87,493 4,237 2,950 18 94,698 (180) 94,518 Total assets 21,358,156 3,879,386 2,830,867 724,124 28,792,533 2,896,503 31,689,036 thereof investment in equity method investees 413,401 215,650 105,661 26,401 761,113 — 761,113 Additions of property, plant and equipment, intangible assets and right-of-use assets 1,162,847 249,401 143,939 50,682 1,606,869 395,654 2,002,523 2019 Revenue from health care services 10,907,934 1,354,220 861,963 499,202 13,623,319 — 13,623,319 Revenue from health care products 1,023,462 1,298,723 930,057 206,434 3,458,676 20,141 3,478,817 Revenue from contracts with customers 11,931,396 2,652,943 1,792,020 705,636 17,081,995 20,141 17,102,136 Other revenue external customers 263,777 40,530 66,750 3,362 374,419 — 374,419 Revenue external customers 12,195,173 2,693,473 1,858,770 708,998 17,456,414 20,141 17,476,555 Inter- segment revenue 3,067 686 504 251 4,508 (4,508) — Revenue 12,198,240 2,694,159 1,859,274 709,249 17,460,922 15,633 17,476,555 Operating income 1,794,101 448,062 328,996 42,508 2,613,667 (344,109) 2,269,558 Interest (429,444) Income before income taxes 1,840,114 Depreciation and amortization (992,526) (188,580) (98,599) (33,352) (1,313,057) (240,351) (1,553,408) Impairment loss (36,411) (3,341) — — (39,752) — (39,752) Income (loss) from equity method investees 75,941 (4,414) 2,551 1,152 75,230 (1,551) 73,679 Total assets 21,700,202 4,058,523 2,852,271 917,184 29,528,180 3,406,555 32,934,735 thereof investment in equity method investees 400,514 171,704 99,815 24,839 696,872 — 696,872 Additions of property, plant and equipment, intangible assets and right-of-use assets 1,097,517 212,282 190,591 36,595 1,536,985 356,934 1,893,919 2018 Revenue from health care services 10,503,816 1,274,015 776,005 489,441 13,043,277 — 13,043,277 Revenue from health care products 844,147 1,285,470 851,710 193,453 3,174,780 14,736 3,189,516 Revenue from contracts with customers 11,347,963 2,559,485 1,627,715 682,894 16,218,057 14,736 16,232,793 Other revenue external customers 221,769 27,073 61,638 3,600 314,080 — 314,080 Revenue external customers 11,569,732 2,586,558 1,689,353 686,494 16,532,137 14,736 16,546,873 Inter- segment revenue 1,609 304 633 240 2,786 (2,786) — Revenue 11,571,341 2,586,862 1,689,986 686,734 16,534,923 11,950 16,546,873 Operating income 2,665,187 398,683 303,956 28,848 3,396,674 (358,876) 3,037,798 Interest (301,062) Income before income taxes 2,736,736 Depreciation and amortization (377,836) (116,384) (45,475) (22,344) (562,039) (162,808) (724,847) Impairment loss — (64,719) — — (64,719) — (64,719) Income (loss) from equity method investees 75,279 (4,322) 2,125 264 73,346 — 73,346 Total assets 16,936,646 3,612,800 2,322,284 719,334 23,591,064 2,651,204 26,242,268 thereof investment in equity method investees 348,096 178,886 98,741 24,057 649,780 — 649,780 Additions of property, plant and equipment and intangible assets 598,988 158,974 53,962 26,894 838,818 316,147 1,154,965 (1) Includes inter - segment consolidation adjustments. |
Schedule of geographic operations | Geographic presentation in € THOUS North Rest of Germany America the world Total 2020 Revenue external customers 493,436 12,478,420 4,887,207 17,859,063 Long-lived assets 1,202,528 17,878,746 4,325,335 23,406,609 2019 Revenue external customers 474,750 12,195,173 4,806,632 17,476,555 Long-lived assets 1,311,786 19,112,827 4,335,569 24,760,182 2018 Revenue external customers 426,327 11,569,732 4,550,814 16,546,873 Long-lived assets 948,355 13,260,913 3,290,930 17,500,198 |
Principal accountant fees and_2
Principal accountant fees and services (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Principal accountant fees and services | |
Schedule of fees for the auditor | Fees in € THOUS Consolidated thereof Consolidated thereof Consolidated thereof group Germany group Germany group Germany 2020 2019 2018 Audit fees - PwC 9,386 1,608 — — — — Audit fees - KPMG 455 — 10,113 1,665 7,845 1,322 Audit-related fees - PwC 510 394 — — — — Audit-related fees - KPMG 87 45 615 525 320 316 Tax fees - PwC 951 54 — — — — Tax fees - KPMG 310 — 318 — 1,069 115 Other fees - PwC 5,236 5,236 — — — — Other fees - KPMG 42 — 41 — 251 234 |
The Company, basis of present_4
The Company, basis of presentation and significant accounting policies - Basis of presentation & Principles of consolidation and composition of the group (Details) € in Thousands | Dec. 31, 2019EUR (€) | Dec. 31, 2020EUR (€)item |
The Company and basis of presentation | ||
Number of companies consolidated | 2,305 | |
Number of companies accounted for by the equity method | 49 | |
Number of first-time consolidations companies | 113 | |
Number of companies deconsolidated | 22 | |
Non-current provisions and other non-current liabilities reclassified to current provisions and other current liabilities | ||
The Company and basis of presentation | ||
Amount of reclassifications or changes in presentation | € | € 51,831 | |
Argentina | ||
The Company and basis of presentation | ||
Index at December 31, 2020 | 385.9 | |
Calendar year increase | 36.00% | |
Loss on net monetary position in EUR | € | € 18,513 | |
Lebanon | ||
The Company and basis of presentation | ||
Index at December 31, 2020 | 284.04 | |
Calendar year increase | 146.00% | |
Loss on net monetary position in EUR | € | € 5,112 |
The Company, basis of present_5
The Company, basis of presentation and significant accounting policies - Adjustments (Details) - EUR (€) € in Thousands | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Level 3 | Fair Value | Put option liabilities | ||||
Corrections for immaterial errors in classification | ||||
Gain / loss recognized in equity | € 73,993 | € 14,523 | € (48,075) | |
Previously stated | Level 3 | Fair Value | Put option liabilities | ||||
Corrections for immaterial errors in classification | ||||
Gain / loss recognized in equity | 13,701 | (50,612) | ||
Gain / loss recognized in profit or loss | 154,436 | 142,279 | ||
Dividends | € (153,614) | € (139,742) | ||
Reclassification from raw materials and purchased components to work in process | ||||
Corrections for immaterial errors in classification | ||||
Amount of reclassifications or changes in presentation | € 5,955 | |||
Reclassification of cash and cash equivalents from FVPL to amortized cost | ||||
Corrections for immaterial errors in classification | ||||
Amount of reclassifications or changes in presentation | 72,340 | |||
Reclassification of cash and cash equivalents from Level 2 to Level 1 | ||||
Corrections for immaterial errors in classification | ||||
Amount of reclassifications or changes in presentation | € 166,677 |
The Company, basis of present_6
The Company, basis of presentation and significant accounting policies - The Company's interest in subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fresenius Medical Care Argentina S.A. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC Australia Pty. Ltd. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC Colombia S.A. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC Deutschland GmbH | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC France S.A.S. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC GmbH | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC Holdings, Inc. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC Italia S.p.A. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC Korea Ltd. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC Ltda. (FMC Ltda.) | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC Shanghai Ltd. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
FMC (U.K.) Ltd. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
National Medical Care of Spain, S.A.U. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
NephroCare Portugal, S.A. | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
ZAO Fresenius SP | ||
Subsidiaries | ||
Ownership percentage | 100.00% | 100.00% |
The Company, basis of present_7
The Company, basis of presentation and significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings and improvements | Minimum | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 4 years |
Buildings and improvements | Maximum | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 50 years |
Buildings and improvements | Weighted average | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 14 years |
Machinery and equipment | Minimum | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 3 years |
Machinery and equipment | Maximum | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 19 years |
Machinery and equipment | Weighted average | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 11 years |
The Company, basis of present_8
The Company, basis of presentation and significant accounting policies - Intangible assets and goodwill (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Amortizable intangible assets | |
Detailed information on intangible assets | |
Useful lives | 10 years |
Non-compete agreements | |
Detailed information on intangible assets | |
Useful lives | 8 years |
Technology | |
Detailed information on intangible assets | |
Useful lives | 12 years |
Internally developed intangibles | |
Detailed information on intangible assets | |
Useful lives | 8 years |
Licenses and distribution agreements | |
Detailed information on intangible assets | |
Useful lives | 13 years |
Customer relationships | |
Detailed information on intangible assets | |
Useful lives | 16 years |
Other | |
Detailed information on intangible assets | |
Useful lives | 8 years |
The Company, basis of present_9
The Company, basis of presentation and significant accounting policies - Foreign currency translation (Details) - $ / € | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Currency Translation | |||
Spot exchange rate | 0.81493 | 0.89015 | |
Average exchange rate | 0.87550 | 0.89328 | 0.84678 |
The Company, basis of presen_10
The Company, basis of presentation and significant accounting policies - Capitalized interest (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Interest | |||
Interest cost capitalized | € 4,963 | € 7,240 | € 5,724 |
Capitalisation rate of borrowing costs eligible for capitalisation | 3.67% | 3.84% | 4.03% |
The Company, basis of presen_11
The Company, basis of presentation and significant accounting policies - Concentration of risk (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. Medicare and Medicaid | |||
Concentration of Risk | |||
Percentage of revenues which were earned and subject to regulations | 32.00% | 33.00% | 33.00% |
Significant judgments and sou_3
Significant judgments and sources of estimation uncertainties - Recoverability of goodwill and intangible assets (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Recoverability of Goodwill and Intangible Assets | ||
Number of years of budget | 3 years | |
Maximum number of projection years | 10 years | |
North America Segment | ||
Recoverability of Goodwill and Intangible Assets | ||
Residual value growth | 1.00% | 1.00% |
Pre-tax WACC | 6.42% | 7.71% |
After-tax WACC | 5.08% | 6.00% |
EMEA Segment | ||
Recoverability of Goodwill and Intangible Assets | ||
Residual value growth | 1.00% | 1.00% |
Pre-tax WACC | 8.64% | 8.73% |
After-tax WACC | 6.21% | 6.25% |
Excess of recoverable amount over carrying amount | € 492,736 | |
EMEA Segment | Pre-tax WACC | ||
Recoverability of Goodwill and Intangible Assets | ||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0.0091 | 0.0319 |
EMEA Segment | After-tax WACC | ||
Recoverability of Goodwill and Intangible Assets | ||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0.0064 | 0.0215 |
EMEA Segment | Operating income margin | ||
Recoverability of Goodwill and Intangible Assets | ||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | (0.0116) | (0.0371) |
Asia-Pacific Segment | ||
Recoverability of Goodwill and Intangible Assets | ||
Residual value growth | 4.00% | 4.00% |
Pre-tax WACC | 6.40% | 6.79% |
After-tax WACC | 5.65% | 6.04% |
Latin America Segment | ||
Recoverability of Goodwill and Intangible Assets | ||
Residual value growth | 1.60% | 2.95% |
Latin America Segment | Minimum | ||
Recoverability of Goodwill and Intangible Assets | ||
Pre-tax WACC | 13.29% | 10.45% |
After-tax WACC | 9.14% | 8.06% |
Latin America Segment | Maximum | ||
Recoverability of Goodwill and Intangible Assets | ||
Pre-tax WACC | 24.28% | 20.02% |
After-tax WACC | 20.13% | 17.63% |
Non-amortizable intangible assets and goodwill | ||
Recoverability of Goodwill and Intangible Assets | ||
Carrying amount of intangible assets | € 13,168,605 | € 14,247,709 |
Carrying amount of goodwill and non-amortizable intangible assets, percentage of the Company's total assets | 42.00% | 43.00% |
Goodwill | Latin America Segment | ||
Recoverability of Goodwill and Intangible Assets | ||
Impairment | € 193,978 | |
Trade names | Latin America Segment | ||
Recoverability of Goodwill and Intangible Assets | ||
Impairment | € 490 |
Significant judgments and sou_4
Significant judgments and sources of estimation uncertainties - Trade accounts and other receivables from unrelated parties and expected credit losses (Details) € in Thousands | 12 Months Ended | |
Dec. 31, 2020EUR (€)country | Dec. 31, 2019EUR (€) | |
Trade accounts and other receivables from unrelated parties and expected credit losses | ||
Trade accounts and other receivables from unrelated parties | € | € 3,153,045 | € 3,421,346 |
Number of countries Company sells health care products | country | 150 | |
Number of countries Company sells health care services | country | 50 | |
Additional percentage of uncollectible receivables for sensitivity analysis | 1.00% | |
Percentage of operating income reduced, if 1% of trade accounts receivable were uncollectible | 1.40% | |
North America Segment | ||
Trade accounts and other receivables from unrelated parties and expected credit losses | ||
Number of days collection process started, after service is provided or upon the expiration of the time provided by contract | 30 days | |
Allowances/Expected credit losses | ||
Trade accounts and other receivables from unrelated parties and expected credit losses | ||
Trade accounts and other receivables from unrelated parties | € | € (142,372) | € (141,358) |
Significant judgments and sou_5
Significant judgments and sources of estimation uncertainties - Percentage of Accounts Receivable (Details) - EUR (€) | Dec. 31, 2020 | Dec. 31, 2019 |
Major customers | ||
Number of single debtor other than U.S. Medicare and Medicaid accounted for more than 5% of total trade accounts receivable | 0 | |
Percentage of trade accounts and other receivables from unrelated parties | 100.00% | 100.00% |
U.S. Government health care programs | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 30.00% | 30.00% |
U.S. commercial payors | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 14.00% | 15.00% |
U.S. hospitals | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 5.00% | 4.00% |
Self-pay of U.S. patients | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 3.00% | 2.00% |
Other North America Segment payors | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 2.00% | 4.00% |
Product customers and health care payors outside the North America Segment | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 46.00% | 45.00% |
Acquisitions, investments pur_3
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities - Acquisitions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities | |||
Acquisitions, investments and purchase of intangible assets, total purchase consideration | € 406,644 | € 2,297,173 | € 956,803 |
Cash consideration, net of cash acquired | 355,386 | 2,232,671 | 925,267 |
Assumed obligations and non-cash consideration | 51,258 | 64,502 | 31,536 |
Acquisitions | |||
Total acquisitions | 265,612 | 2,224,599 | 280,643 |
Cash flows used in obtaining control of subsidiaries or other businesses, classified as investing activities | 214,836 | 2,160,097 | 249,965 |
Assumed obligations and non-cash consideration | 50,776 | 64,502 | € 30,678 |
Goodwill | 258,544 | € 1,607,559 | |
Intangible assets acquired | 19,507 | ||
Net income of acquiree since acquisition date | 2,749 | ||
Revenue of acquiree since acquisition date | 62,072 | ||
Increase in assets as a result of business combinations | € 337,300 |
Acquisitions, investments pur_4
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities - Impact on financial statements from acquisitions Acquisition of NxStage Medical, Inc. Pro forma financial information (Details) € / shares in Units, $ / shares in Units, € in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2019EUR (€)€ / shares | Dec. 31, 2019EUR (€)€ / shares | Dec. 31, 2018EUR (€) | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed Details | |||||
Cash and cash equivalents | € 9,759 | € 55,210 | € 3,538 | ||
Intangible assets and other assets | 19,507 | ||||
Goodwill | 258,544 | 1,607,559 | |||
Noncontrolling interests | (10,339) | € (65,217) | € (45,319) | ||
Revenue of acquiree since acquisition date | 62,072 | ||||
Operating profit (loss) of acquiree since acquisition date | € 2,749 | ||||
NxStage Medical Inc | |||||
Estimated Fair Values of Assets Acquired and Liabilities Assumed Details | |||||
NxStage purchase per common share | (per share) | $ 30 | € 26.42 | |||
Cash and cash equivalents | $ 47,203 | € 41,574 | |||
Trade accounts and other receivables from unrelated parties | 34,062 | 30,000 | |||
Inventories | 63,735 | 56,134 | |||
Other current assets | 15,819 | 13,933 | |||
Property, plant and equipment | 104,533 | 92,067 | |||
Right-of-use assets | 21,603 | 19,027 | |||
Intangible assets and other assets | 761,734 | 670,895 | |||
Goodwill | 1,201,613 | 1,058,317 | |||
Accounts payable to unrelated parties, current provisions and other current liabilities | (72,429) | (63,792) | |||
Deferred taxes | (100,485) | (88,502) | |||
Lease liabilities from unrelated parties | (22,065) | (19,434) | |||
Other liabilities | (27,822) | (24,504) | |||
Noncontrolling interests | (4,063) | (3,578) | |||
Total acquisition cost | 2,023,438 | 1,782,137 | |||
Cash acquired | (47,203) | € (41,574) | |||
Net cash paid | $ 1,976,235 | € 1,740,563 | |||
Useful lives | 13 years | 13 years | |||
Revenue of acquiree since acquisition date | $ 294,281 | € 262,875 | |||
Operating profit (loss) of acquiree since acquisition date | (31,145) | (27,821) | |||
Proforma financial information details | |||||
Pro forma revenue | 17,521,432 | ||||
Pro forma net income attributable to shareholders of FMC-AG & Co. KGaA | € 1,186,516 | ||||
Basic earnings per share | € / shares | € 3.92 | ||||
Diluted earnings per share | € / shares | € 3.92 | ||||
NxStage Medical Inc | Technology | |||||
Estimated Fair Values of Assets Acquired and Liabilities Assumed Details | |||||
Intangible assets and other assets | $ 660,300 | € 581,557 |
Acquisitions, investments pur_5
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities - Investments (including debt securities) and purchases of intangible assets, Divestitures and sale of debt securities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments and Purchases of Intangible Assets | |||
Investments and purchases of intangible assets, total purchase consideration | € 141,032 | € 72,574 | € 676,160 |
Cash consideration | 140,550 | 72,574 | 675,302 |
Divestitures | |||
Proceeds from divestitures | 77,509 | 79,427 | 1,683,292 |
Cash portion of proceeds from divestitures | 56,849 | 59,940 | 1,682,975 |
Non-cash portion of proceeds from divestitures | € 20,660 | € 19,487 | € 317 |
Notes to the consolidated sta_3
Notes to the consolidated statements of income - Revenue (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | |||
Dialysis services | € 12,558,644 | € 12,447,092 | € 11,420,415 |
Care Coordination | 1,555,755 | 1,425,127 | 1,843,874 |
Health care services | 14,114,399 | 13,872,219 | 13,264,289 |
Dialysis products | 3,643,274 | 3,528,506 | 3,208,821 |
Non-dialysis products | 101,390 | 75,830 | 73,763 |
Health care products | 3,744,664 | 3,604,336 | 3,282,584 |
Total | 17,859,063 | 17,476,555 | 16,546,873 |
Revenue from contracts with customers | |||
Revenue | |||
Dialysis services | 12,558,644 | 12,447,092 | 11,420,415 |
Care Coordination | 1,251,945 | 1,176,227 | 1,622,862 |
Health care services | 13,810,589 | 13,623,319 | 13,043,277 |
Dialysis products | 3,538,605 | 3,402,987 | 3,115,753 |
Non-dialysis products | 101,390 | 75,830 | 73,763 |
Health care products | 3,639,995 | 3,478,817 | 3,189,516 |
Total | 17,450,584 | 17,102,136 | 16,232,793 |
Other revenue | |||
Revenue | |||
Care Coordination | 303,810 | 248,900 | 221,012 |
Health care services | 303,810 | 248,900 | 221,012 |
Dialysis products | 104,669 | 125,519 | 93,068 |
Health care products | 104,669 | 125,519 | 93,068 |
Total | € 408,479 | € 374,419 | € 314,080 |
Notes to the consolidated sta_4
Notes to the consolidated statements of income - Trade accounts receivables and contract liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Notes to the consolidated statements of income | |||
Trade accounts receivables from unrelated parties | € 3,084,311 | € 3,341,111 | |
Contract liabilities | 876,051 | 22,802 | |
Impairment losses relate to receivables | 27,541 | 41,982 | € 16,981 |
Revenue that was included in contract liability balance at beginning of period | € 17,790 | € 12,608 |
Notes to the consolidated sta_5
Notes to the consolidated statements of income - Unsatisfied performance obligations (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Unsatisfied performance obligations | |||
Transaction price allocated to unsatisfied performance obligations | € 1,916,558 | € 1,160,077 | € 1,157,314 |
Less than 1 year | |||
Unsatisfied performance obligations | |||
Transaction price allocated to unsatisfied performance obligations | 856,206 | ||
1 - 3 years | |||
Unsatisfied performance obligations | |||
Transaction price allocated to unsatisfied performance obligations | 683,293 | ||
3 - 5 years | |||
Unsatisfied performance obligations | |||
Transaction price allocated to unsatisfied performance obligations | 272,549 | ||
5 - 10 years | |||
Unsatisfied performance obligations | |||
Transaction price allocated to unsatisfied performance obligations | € 104,510 |
Notes to the consolidated sta_6
Notes to the consolidated statements of income - Selling, general and administrative expenses (Details) - General and administrative expense - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selling, general and administrative expenses | |||
Reimbursement payments and funding received related to COVID-19 | € 27,414 | ||
Gains (losses) on change in fair value of investments | 20,938 | € 97,375 | € (9,762) |
FCPA related charge | (77,200) | ||
Income attributable to a consent agreement on foregone profits from sale of certain pharmaceuticals to non-associated companies | 39,540 | 60,471 | 53,283 |
Net gain related to variable payments outstanding for acquisitions | 1,996 | 41,537 | 36,327 |
Net gain (loss) from sale of fixed assets | (17,358) | (28,911) | 6,041 |
Gain (loss) from settlement of pension plan | 331 | 4,754 | |
Impairment loss on intangible assets | (1,066) | (932) | (64,719) |
Net gains (losses) from the sale of investments and divestitures | 11,159 | (68) | € 1,824 |
Gain from right-of-use assets | 12,867 | ||
Restructuring costs | € (91,689) | ||
Latin America Segment | |||
Selling, general and administrative expenses | |||
Impairment loss | € (194,468) |
Notes to the consolidated sta_7
Notes to the consolidated statements of income - (Gain) loss related to divestitures of Care Coordination activities (Details) € in Thousands, $ in Thousands | Jun. 28, 2018USD ($) | Jun. 28, 2018EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) |
Divestments | |||||
Proceeds from divestitures | € 14,608 | € 43,317 | € 1,532,803 | ||
Sound | |||||
Divestments | |||||
Proceeds from divestitures | $ 1,770,516 | € 1,531,109 | |||
Net gains (losses) from the sale of investments and divestitures | € 809,003 |
Notes to the consolidated sta_8
Notes to the consolidated statements of income - Research and development expenses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Detailed information on intangible assets | |||
Research and development expense | € 193,774 | € 168,028 | € 114,074 |
Depreciation and amortisation expense | 1,586,869 | 1,553,408 | 724,847 |
Capitalized development costs | |||
Detailed information on intangible assets | |||
Depreciation and amortisation expense | € 5,024 | € 3,052 | € 341 |
Notes to the consolidated sta_9
Notes to the consolidated statements of income - Cost of materials (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Notes to the consolidated statements of income | |||
Cost of raw materials, supplies and purchased components | € 3,959,216 | € 4,031,371 | € 3,395,895 |
Cost of purchased services | 261,805 | 258,959 | 233,638 |
Cost of materials | € 4,221,021 | € 4,290,330 | € 3,629,533 |
Notes to the consolidated st_10
Notes to the consolidated statements of income - Personnel expenses (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020EUR (€)employee | Dec. 31, 2019EUR (€)employee | Dec. 31, 2018EUR (€)employee | |
Personnel expenses | |||
Wages and salaries | € | € 5,753,795 | € 5,448,662 | € 5,025,128 |
Social security contributions and cost of retirement benefits and social assistance | € | 1,313,612 | 1,350,696 | 1,414,525 |
thereof retirement benefits | € | 181,347 | 174,009 | 156,581 |
Personnel expenses | € | € 7,067,407 | € 6,799,358 | € 6,439,653 |
Employees by function | |||
Production and Services | 106,797 | 103,896 | 97,971 |
Administration | 12,525 | 11,634 | 10,510 |
Sales and Marketing | 3,972 | 3,253 | 3,360 |
Research and Development | 1,198 | 1,050 | 881 |
Total employees | 124,492 | 119,833 | 112,722 |
Notes to the consolidated st_11
Notes to the consolidated statements of income - Net interest (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Notes to the consolidated statements of income | |||
Net interest | € 368,019 | € 429,444 | € 301,062 |
Interest expense | 409,978 | 491,061 | 448,471 |
Interest income | € 41,959 | € 61,617 | € 147,409 |
Notes to the consolidated st_12
Notes to the consolidated statements of income - Income taxes geographical (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of geographic region | |||
Income before income taxes | € 1,936,390 | € 1,840,114 | € 2,736,736 |
Income tax expense (benefit) | |||
Current tax expense | 389,453 | 337,348 | 421,908 |
Deferred tax income | 111,105 | 64,266 | 89,171 |
Total tax expense (income) | 500,558 | 401,614 | 511,079 |
Germany | |||
Disclosure of geographic region | |||
Income before income taxes | 160,866 | 101,734 | 161,861 |
Income tax expense (benefit) | |||
Current tax expense | 17,879 | (59,928) | 45,136 |
Deferred tax income | 27,844 | 48,313 | (34,685) |
United States | |||
Disclosure of geographic region | |||
Income before income taxes | 1,487,931 | 1,149,149 | 2,191,834 |
Income tax expense (benefit) | |||
Current tax expense | 242,062 | 168,503 | 261,211 |
Deferred tax income | 95,444 | 57,352 | 145,700 |
Other | |||
Disclosure of geographic region | |||
Income before income taxes | 287,593 | 589,231 | 383,041 |
Income tax expense (benefit) | |||
Current tax expense | 129,512 | 228,773 | 115,561 |
Deferred tax income | € (12,183) | € (41,399) | € (21,844) |
Notes to the consolidated st_13
Notes to the consolidated statements of income - Income taxes reconciliation (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Tax reconciliation | |||
Statutory tax rate (as a percent) | 30.21% | 30.21% | 30.18% |
Expected corporate income tax expense | € 584,983 | € 555,898 | € 825,810 |
Tax free income | (51,231) | (65,889) | (50,747) |
Income from equity method investees | (28,510) | (23,683) | (18,185) |
Tax rate differentials | (71,755) | (58,386) | (106,258) |
Non-deductible expenses | 106,437 | 44,283 | 60,721 |
Taxes for prior years | (2,748) | (5,454) | (91,138) |
Noncontrolling partnership interests | (70,300) | (60,724) | (61,936) |
Tax on divestitures | (74,560) | ||
Tax rate changes | 4,221 | 2,743 | (219) |
Change in realizability of deferred tax assets and tax credits | 12,627 | 8,519 | 3,211 |
Withholding taxes | 4,858 | 13,083 | 4,564 |
Other | 11,976 | (8,776) | 19,816 |
Total tax expense (income) | € 500,558 | € 401,614 | € 511,079 |
Effective tax rate (as a percent) | 25.90% | 21.80% | 18.70% |
Latin America Segment | |||
Tax reconciliation | |||
Non-deductible expenses | € 58,749 |
Notes to the consolidated st_14
Notes to the consolidated statements of income - Deferred income tax assets and liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | € 1,530,228 | € 1,732,115 |
Total deferred tax liabilities | 1,964,962 | 2,110,621 |
Net deferred tax liabilities | (434,734) | (378,506) |
Trade accounts receivable | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 16,243 | 13,392 |
Total deferred tax liabilities | 38,753 | 30,310 |
Inventories | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 73,087 | 71,915 |
Total deferred tax liabilities | 3,066 | 19,324 |
Intangible assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 4,817 | 4,994 |
Total deferred tax liabilities | 759,146 | 632,984 |
Property, plant and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 78,545 | 72,769 |
Total deferred tax liabilities | 228,609 | 165,082 |
Lease liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 853,352 | 1,164,620 |
Right-of-use assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax liabilities | 780,321 | 1,068,409 |
Provisions and other liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 187,406 | 50,819 |
Total deferred tax liabilities | 13,204 | 92,756 |
Pension liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 148,808 | 135,356 |
Net operating loss carryforwards, tax credit carryforwards and interest carryforwards | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 111,861 | 175,394 |
Derivatives | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 11,447 | 3,027 |
Total deferred tax liabilities | 1,508 | 372 |
Compensation expense related to stock options | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 3,064 | 3,426 |
Other temporary differences | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 41,598 | 36,403 |
Total deferred tax liabilities | € 140,355 | € 101,384 |
Notes to the consolidated st_15
Notes to the consolidated statements of income - Net deferred income tax assets and liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Notes to the consolidated statements of income | ||
Deferred taxes assets | € 351,152 | € 361,196 |
Deferred tax liabilities | 785,886 | 739,702 |
Net deferred tax liabilities | € (434,734) | € (378,506) |
Notes to the consolidated st_16
Notes to the consolidated statements of income - Net operating loss carryforwards (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure | ||
Net operating loss carryforwards | € 505,981 | |
Unused tax losses for which no deferred tax asset recognized | 218,710 | |
Deferred tax liabilities of foreign subsidiaries | 7,353 | € 6,645 |
Undistributed earnings of foreign subsidiaries for which no deferred tax recognized | € 8,747,019 | € 8,867,422 |
Percentage of dividends and capital gain tax free | 95.00% | |
Less than 1 year | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | € 14,918 | |
2022 | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 10,324 | |
2023 | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 14,163 | |
2024 | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 29,173 | |
2025 | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 46,365 | |
2026 | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 5,840 | |
2027 | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 7,590 | |
2028 | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 5,275 | |
2029 | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 10,585 | |
2030 and thereafter | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 166,111 | |
Without expiration date | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | € 195,637 |
Notes to the consolidated st_17
Notes to the consolidated statements of income - Impacts of COVID-19 (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |
Disclosure of grants | |||
Reimbursement payments and funding | € 251,662 | ||
Contract liabilities | 876,051 | € 22,802 | |
CARES Act | |||
Disclosure of grants | |||
Amount of fund received | $ 284,600 | 249,168 | |
CMS Accelerated and Advance Payment program | |||
Disclosure of grants | |||
Contract liabilities | € 852,437 |
Related party transactions - Se
Related party transactions - Service agreements and products - General (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2010 | |
Vifor Fresenius Medical Care Renal Pharma Ltd. | ||||
Related party transactions | ||||
Ownership in joint venture (as a percent) | 45.00% | |||
Commitments made | € 302,092 | |||
Vifor Fresenius Medical Care Renal Pharma Ltd. | Less than 1 year | ||||
Related party transactions | ||||
Commitments made | € 296,647 | |||
Vifor Fresenius Medical Care Renal Pharma Ltd. | Maximum | ||||
Related party transactions | ||||
Agreement term | 4 years | |||
Fresenius SE | ||||
Related party transactions | ||||
Proportion of ownership interest in reporting entity (as a percent) | 32.20% | |||
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 | |||
One Company of Fresenius SE Companies | Manufacturing of infusion bags | ||||
Related party transactions | ||||
Term of related party agreement | 10 years | |||
Purchase of machinery | € 206 | € 7,183 | € 4,497 |
Related party transactions - _2
Related party transactions - Service agreements and products with related parties (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Service Agreements | |||
Transactions | |||
Sales of goods and services | € 24,688 | € 53,625 | € 62,626 |
Purchases of goods and services | 131,497 | 134,946 | 126,046 |
Balances | |||
Accounts receivable | 76,010 | 70,338 | |
Accounts payable | 11,599 | 6,776 | |
Accrued expenses | 5,368 | 8,352 | |
Products | |||
Transactions | |||
Sales of goods and services | 41,180 | 44,774 | 33,564 |
Purchases of goods and services | 518,264 | 506,753 | 438,848 |
Balances | |||
Accounts receivable | 10,330 | 16,803 | |
Accounts payable | 62,939 | 39,667 | |
Fresenius SE | Service Agreements | |||
Transactions | |||
Sales of goods and services | 250 | 153 | 445 |
Purchases of goods and services | 29,174 | 29,114 | 24,456 |
Balances | |||
Accounts receivable | 251 | 35 | |
Accounts payable | 3,655 | 360 | |
Fresenius SE | Products | |||
Transactions | |||
Sales of goods and services | 3 | ||
Fresenius SE affiliates | Service Agreements | |||
Transactions | |||
Sales of goods and services | 4,708 | 4,420 | 3,819 |
Purchases of goods and services | 102,323 | 105,832 | 101,590 |
Balances | |||
Accounts receivable | 824 | 2,003 | |
Accounts payable | 7,944 | 6,416 | |
Fresenius SE affiliates | Products | |||
Transactions | |||
Sales of goods and services | 41,180 | 44,771 | 33,564 |
Purchases of goods and services | 44,164 | 37,279 | 39,181 |
Balances | |||
Accounts receivable | 10,330 | 16,803 | |
Accounts payable | 5,732 | 3,405 | |
Equity method investees | Service Agreements | |||
Transactions | |||
Sales of goods and services | 19,730 | 49,052 | 58,362 |
Balances | |||
Accounts receivable | 74,935 | 68,300 | |
Equity method investees | Products | |||
Transactions | |||
Purchases of goods and services | 474,100 | 469,474 | € 399,667 |
Balances | |||
Accounts payable | € 57,207 | € 36,262 |
Related party transactions - Le
Related party transactions - Lease Agreements - Summary (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lease Transactions | |||
Depreciation | € 703,999 | € 700,276 | |
Interest expense | 159,148 | 171,724 | |
Leases balances | |||
Right-of-use asset | 4,129,888 | 4,325,115 | |
Lease Agreements | |||
Lease Transactions | |||
Depreciation | 21,161 | 17,169 | |
Interest expense | 2,012 | 1,897 | |
Lease expense | 3,024 | 4,457 | € 24,597 |
Leases balances | |||
Right-of-use asset | 138,261 | 122,215 | |
Lease liability | 140,020 | 122,946 | |
Fresenius SE | Lease Agreements | |||
Lease Transactions | |||
Depreciation | 7,925 | 4,580 | |
Interest expense | 740 | 501 | |
Lease expense | 2,452 | 4,005 | 8,745 |
Leases balances | |||
Right-of-use asset | 58,073 | 30,336 | |
Lease liability | 58,610 | 30,820 | |
Fresenius SE affiliates | Lease Agreements | |||
Lease Transactions | |||
Depreciation | 13,236 | 12,589 | |
Interest expense | 1,272 | 1,396 | |
Lease expense | 572 | 452 | € 15,852 |
Leases balances | |||
Right-of-use asset | 80,188 | 91,879 | |
Lease liability | € 81,410 | € 92,126 |
Related party transactions - Fi
Related party transactions - Financing (Details) - EUR (€) € in Thousands | Nov. 28, 2013 | Aug. 19, 2009 | Dec. 31, 2020 | Dec. 31, 2019 |
Transactions | ||||
Outstanding borrowings | € 12,380,017 | € 13,782,448 | ||
Fresenius SE | Short-term financing | ||||
Balances | ||||
Accounts receivable | 1,037 | 71,078 | ||
Accounts payable | 0 | 38,050 | ||
Fresenius SE | Loans | ||||
Transactions | ||||
Outstanding borrowings | € 13,320 | € 18,865 | ||
Interest rate (as a percent) | 0.825% | 0.93% | ||
General Partner | Unsecured debt - originated in 2009 | ||||
Transactions | ||||
Proceeds from short-term debt from related parties | € 1,500 | |||
Interest rate (as a percent) | 1.335% | 0.825% | ||
General Partner | Unsecured debt - originated in 2013 | ||||
Transactions | ||||
Proceeds from short-term debt from related parties | € 1,500 | |||
Interest rate (as a percent) | 1.875% | 1.025% | ||
Subsidiary of Fresenius SE | Bonds | ||||
Transactions | ||||
Outstanding borrowings | € 1,000 | € 1,000 | ||
Interest rate (as a percent) | 5.25% |
Related party transactions - Ke
Related party transactions - Key management personnel (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Transactions | |||
Issued capital | € 292,877 | € 304,437 | |
General Partner | |||
Transactions | |||
Amount paid for services received from related party | 33,284 | 23,905 | € 14,612 |
Annual fee portion of reimbursements paid to related party | € 120 | ||
Annual fee, as percent of General Partner's share capital | 4.00% | ||
Issued capital | € 3,000 | ||
Balances | |||
Accounts receivable | 4,061 | 977 | |
Accounts payable | € 20,863 | € 34,170 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | ||||
Cash | € 746,851 | € 768,706 | ||
Securities and time deposits | 334,688 | 239,017 | ||
Cash and cash equivalents | 1,081,539 | 1,007,723 | € 2,145,632 | € 978,109 |
Restricted cash | € 5,807 | € 18,820 |
Trade accounts and other rece_3
Trade accounts and other receivables from unrelated parties (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Trade accounts and other receivables | ||
Trade accounts and other receivables from unrelated parties | € 3,153,045 | € 3,421,346 |
Other receivables | € 86,230 | 100,613 |
Collection period for trade accounts receivable from unrelated parties | 1 year | |
Trade accounts receivable included in other non-current assets | € 126,883 | 132,144 |
Financial instruments credit-impaired | ||
Trade accounts and other receivables | ||
Trade accounts and other receivables from unrelated parties | 263,029 | 264,228 |
Gross carrying amount | ||
Trade accounts and other receivables | ||
Trade accounts and other receivables from unrelated parties | 3,295,417 | 3,562,704 |
thereof finance lease receivables | 56,484 | 57,398 |
Gross carrying amount | Financial instruments credit-impaired | ||
Trade accounts and other receivables | ||
Trade accounts and other receivables from unrelated parties | 376,459 | 366,497 |
Allowances/Expected credit losses | ||
Trade accounts and other receivables | ||
Trade accounts and other receivables from unrelated parties | (142,372) | (141,358) |
Allowances/Expected credit losses | Financial instruments credit-impaired | ||
Trade accounts and other receivables | ||
Trade accounts and other receivables from unrelated parties | € (113,430) | € (102,269) |
Trade accounts and other rece_4
Trade accounts and other receivables from unrelated parties - Development of expected credit losses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Development of allowance | |||
Financial assets at beginning of period | € (5,450,851) | ||
Financial assets at end of period | (5,287,266) | € (5,450,851) | |
Trade accounts and other receivables from unrelated parties | Allowances/Expected credit losses | |||
Development of allowance | |||
Financial assets at beginning of period | 141,358 | 118,015 | € 474,891 |
Change in valuation allowances as recorded in the consolidated statements of income | 28,302 | 42,315 | 19,112 |
Write-offs and recoveries of amounts previously written-off | (14,213) | (18,587) | (378,201) |
Foreign currency translation | (13,075) | (385) | 2,213 |
Financial assets at end of period | € 142,372 | € 141,358 | € 118,015 |
Trade accounts and other rece_5
Trade accounts and other receivables from unrelated parties - Ageing analysis of trade accounts and other receivables from unrelated parties and the allowance for doubtful accounts (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | € 3,153,045 | € 3,421,346 |
not overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 1,801,990 | 1,988,286 |
up to 3 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 825,691 | 891,576 |
3 to 6 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 191,859 | 222,745 |
6 to 12 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 198,085 | 171,443 |
More than one year | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 135,420 | 147,296 |
Gross carrying amount | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 3,295,417 | 3,562,704 |
Gross carrying amount | not overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 1,809,658 | 1,997,671 |
Gross carrying amount | up to 3 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 829,895 | 899,987 |
Gross carrying amount | 3 to 6 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 195,724 | 229,012 |
Gross carrying amount | 6 to 12 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 208,653 | 184,768 |
Gross carrying amount | More than one year | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 251,487 | 251,266 |
Allowances/Expected credit losses | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (142,372) | (141,358) |
Allowances/Expected credit losses | not overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (7,668) | (9,385) |
Allowances/Expected credit losses | up to 3 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (4,204) | (8,411) |
Allowances/Expected credit losses | 3 to 6 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (3,865) | (6,267) |
Allowances/Expected credit losses | 6 to 12 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (10,568) | (13,325) |
Allowances/Expected credit losses | More than one year | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | € (116,067) | € (103,970) |
Inventories (Details)
Inventories (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Inventories | ||
Finished goods | € 1,088,311 | € 940,407 |
Health care supplies | 473,164 | 399,585 |
Raw materials and purchased components | 232,422 | 227,654 |
Work in process | 101,413 | 95,632 |
Inventories | 1,895,310 | 1,663,278 |
Unconditional purchase agreement of materials | 359,709 | |
Allowances/Expected credit losses | ||
Inventories | ||
Inventories | € (61,256) | € (69,427) |
Minimum | ||
Inventories | ||
Term of unconditional purchase agreements of materials | 1 year | |
Maximum | ||
Inventories | ||
Term of unconditional purchase agreements of materials | 5 years | |
Less than 1 year | ||
Inventories | ||
Unconditional purchase agreement of materials | € 196,770 |
Other current assets (Details)
Other current assets (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other current assets | ||
Payments on account | € 278,788 | € 110,078 |
Debt securities | 161,688 | 133,322 |
Income Taxes Receivable | 136,048 | 209,545 |
Other Taxes Receivable | 108,375 | 127,880 |
Receivables for supplier rebates | 90,388 | 51,296 |
Prepaid insurance | 24,888 | 19,796 |
Notes receivable | 20,599 | 5,131 |
Loans to customers or suppliers | 19,147 | 11,427 |
Deposit / Guarantee / Security | 17,577 | 22,226 |
Prepaid rent | 13,082 | 26,374 |
Derivatives | 6,470 | 2,513 |
Other | 176,928 | 194,015 |
Other current assets | € 1,053,978 | € 913,603 |
Property, plant and equipment_2
Property, plant and equipment (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in property, plant, and equipment: | |||
Balance, beginning of period | € 4,190,281 | ||
Additions - depreciation | (738,201) | € (717,650) | € (631,423) |
Balance, ending of period | 4,056,864 | 4,190,281 | |
Contractual commitments for acquisition of property, plant and equipment | € 118,472 | ||
Minimum | |||
Changes in property, plant, and equipment: | |||
Term of unconditional purchase agreements of property, plant and equipment | 1 year | ||
Maximum | |||
Changes in property, plant, and equipment: | |||
Term of unconditional purchase agreements of property, plant and equipment | 10 years | ||
Less than 1 year | |||
Changes in property, plant, and equipment: | |||
Contractual commitments for acquisition of property, plant and equipment | € 27,178 | ||
Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 9,357,367 | 8,507,399 | |
Foreign currency translation | (655,512) | 135,956 | |
Changes in consolidation group | (20,169) | 99,048 | |
Additions | 927,839 | 981,955 | |
Reclassifications | 40,817 | (31,738) | |
Disposals | (263,108) | (335,253) | |
Balance, ending of period | 9,387,234 | 9,357,367 | 8,507,399 |
Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (5,167,086) | (4,671,389) | |
Foreign currency translation | 356,295 | (68,462) | |
Changes in consolidation group | 23,779 | 15,335 | |
Additions - depreciation | (738,201) | (717,650) | |
Reclassifications | (12,630) | 21,270 | |
Disposals | 207,473 | 253,810 | |
Balance, ending of period | (5,330,370) | (5,167,086) | (4,671,389) |
Land | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 62,660 | ||
Balance, ending of period | 68,265 | 62,660 | |
Land | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 63,992 | 58,887 | |
Foreign currency translation | (3,542) | 802 | |
Changes in consolidation group | (352) | 2,824 | |
Additions | 8,175 | 466 | |
Reclassifications | 1,592 | 3,153 | |
Disposals | (283) | (2,140) | |
Balance, ending of period | 69,582 | 63,992 | 58,887 |
Land | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (1,332) | (1,295) | |
Foreign currency translation | 15 | (19) | |
Additions - depreciation | (20) | ||
Disposals | 2 | ||
Balance, ending of period | (1,317) | (1,332) | (1,295) |
Buildings and improvements | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 1,591,617 | ||
Balance, ending of period | 1,515,153 | 1,591,617 | |
Buildings and improvements | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 3,644,437 | 3,311,704 | |
Foreign currency translation | (298,571) | 65,782 | |
Changes in consolidation group | (13,130) | 10,648 | |
Additions | 58,302 | 43,560 | |
Reclassifications | 280,716 | 296,276 | |
Disposals | (58,582) | (83,533) | |
Balance, ending of period | 3,613,172 | 3,644,437 | 3,311,704 |
Buildings and improvements | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (2,052,820) | (1,818,053) | |
Foreign currency translation | 170,668 | (32,818) | |
Changes in consolidation group | 7,122 | 8,312 | |
Additions - depreciation | (260,450) | (255,683) | |
Reclassifications | (1,146) | (8,805) | |
Disposals | 38,607 | 54,227 | |
Balance, ending of period | (2,098,019) | (2,052,820) | (1,818,053) |
Machinery and equipment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 2,026,722 | ||
Balance, ending of period | 2,001,968 | 2,026,722 | |
Machinery and equipment | Subject to operating leases | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 775,601 | ||
Balance, ending of period | 758,151 | 775,601 | |
Machinery and equipment | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 5,139,656 | 4,541,906 | |
Foreign currency translation | (323,731) | 59,529 | |
Changes in consolidation group | (9,615) | 86,743 | |
Additions | 528,280 | 569,352 | |
Reclassifications | 96,267 | 127,613 | |
Disposals | (197,855) | (245,487) | |
Balance, ending of period | 5,233,002 | 5,139,656 | 4,541,906 |
Machinery and equipment | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (3,112,934) | (2,798,709) | |
Foreign currency translation | 185,612 | (34,291) | |
Changes in consolidation group | 16,657 | 7,023 | |
Additions - depreciation | (477,751) | (461,947) | |
Reclassifications | (11,484) | (24,591) | |
Disposals | 168,866 | 199,581 | |
Balance, ending of period | (3,231,034) | (3,112,934) | (2,798,709) |
Machinery, equipment and rental equipment under capitalized leases | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 89,734 | ||
Foreign currency translation | 2,151 | ||
Reclassifications | (91,885) | ||
Balance, ending of period | 89,734 | ||
Machinery, equipment and rental equipment under capitalized leases | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (53,332) | ||
Foreign currency translation | (1,334) | ||
Reclassifications | 54,666 | ||
Balance, ending of period | (53,332) | ||
Construction in progress | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 509,282 | ||
Balance, ending of period | 471,478 | 509,282 | |
Construction in progress | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 509,282 | 505,168 | |
Foreign currency translation | (29,668) | 7,692 | |
Changes in consolidation group | 2,928 | (1,167) | |
Additions | 333,082 | 368,577 | |
Reclassifications | (337,758) | (366,895) | |
Disposals | (6,388) | (4,093) | |
Balance, ending of period | 471,478 | 509,282 | € 505,168 |
Hyperinflationary economies | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 28,032 | ||
Balance, ending of period | 36,288 | 28,032 | |
Hyperinflationary economies | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 57,304 | ||
Balance, ending of period | 73,197 | 57,304 | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (29,272) | ||
Balance, ending of period | (36,909) | (29,272) | |
Hyperinflationary economies | Land | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 2,307 | ||
Balance, ending of period | 2,784 | 2,307 | |
Hyperinflationary economies | Land | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 2,307 | ||
Balance, ending of period | 2,784 | 2,307 | |
Hyperinflationary economies | Buildings and improvements | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 12,850 | ||
Balance, ending of period | 16,383 | 12,850 | |
Hyperinflationary economies | Buildings and improvements | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 20,652 | ||
Balance, ending of period | 25,970 | 20,652 | |
Hyperinflationary economies | Buildings and improvements | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (7,802) | ||
Balance, ending of period | (9,587) | (7,802) | |
Hyperinflationary economies | Machinery and equipment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 11,767 | ||
Balance, ending of period | 15,719 | 11,767 | |
Hyperinflationary economies | Machinery and equipment | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 33,237 | ||
Balance, ending of period | 43,041 | 33,237 | |
Hyperinflationary economies | Machinery and equipment | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (21,470) | ||
Balance, ending of period | (27,322) | (21,470) | |
Hyperinflationary economies | Construction in progress | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 1,108 | ||
Balance, ending of period | 1,402 | 1,108 | |
Hyperinflationary economies | Construction in progress | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 1,108 | ||
Balance, ending of period | € 1,402 | € 1,108 |
Intangible assets and goodwil_2
Intangible assets and goodwill - Acquisition or manufacturing costs of intangible assets and goodwill (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | € 1,426,330 | ||
Additions - amortization | (144,669) | € (135,482) | € (93,424) |
Balance at the end of the period | 1,381,009 | 1,426,330 | |
Reconciliation of goodwill | |||
Balance at the beginning of the period | 14,017,255 | ||
Balance at the end of the period | 12,958,728 | 14,017,255 | |
Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 1,426,330 | ||
Balance at the end of the period | 1,381,009 | 1,426,330 | |
Amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 1,195,876 | ||
Balance at the end of the period | 1,171,132 | 1,195,876 | |
Non-compete agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 36,599 | ||
Balance at the end of the period | 30,518 | 36,599 | |
Technology | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 567,611 | ||
Balance at the end of the period | 469,711 | 567,611 | |
Licenses and distribution agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 58,575 | ||
Balance at the end of the period | 59,714 | 58,575 | |
Customer relationships | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 57,575 | ||
Balance at the end of the period | 49,464 | 57,575 | |
Construction in progress. | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 267,403 | ||
Balance at the end of the period | 233,272 | 267,403 | |
Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 128,854 | ||
Balance at the end of the period | 198,938 | 128,854 | |
Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 79,259 | ||
Balance at the end of the period | 129,515 | 79,259 | |
Non-amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 230,454 | 186,035 | |
Foreign currency translation | 3,417 | ||
Changes in consolidation group | 41,002 | ||
Balance at the end of the period | 209,877 | 230,454 | 186,035 |
Trade names | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 227,229 | 182,901 | |
Foreign currency translation | 3,326 | ||
Changes in consolidation group | 41,002 | ||
Balance at the end of the period | 207,535 | 227,229 | 182,901 |
Management contracts | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 3,225 | 3,134 | |
Foreign currency translation | 91 | ||
Balance at the end of the period | 2,342 | 3,225 | 3,134 |
Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | 14,017,255 | 12,209,606 | |
Foreign currency translation | 217,996 | ||
Changes in consolidation group | 1,589,653 | ||
Balance at the end of the period | 12,958,728 | 14,017,255 | 12,209,606 |
Gross carrying amount | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 2,578,616 | ||
Foreign currency translation | (180,499) | ||
Changes in consolidation group | 20,002 | ||
Additions | 182,704 | ||
Reclassifications | 2,120 | ||
Disposals | (121,412) | ||
Balance at the end of the period | 2,481,531 | 2,578,616 | |
Gross carrying amount | Amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 2,320,344 | 1,483,971 | |
Foreign currency translation | (158,755) | 19,229 | |
Changes in consolidation group | 20,002 | 639,274 | |
Additions | 182,704 | 192,366 | |
Reclassifications | 2,104 | 4,156 | |
Disposals | (121,412) | (18,652) | |
Balance at the end of the period | 2,244,987 | 2,320,344 | 1,483,971 |
Gross carrying amount | Non-compete agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 332,722 | 324,910 | |
Foreign currency translation | (26,948) | 6,012 | |
Changes in consolidation group | 6,682 | 4,744 | |
Additions | 327 | 25 | |
Reclassifications | (274) | ||
Disposals | (1,430) | (2,695) | |
Balance at the end of the period | 311,353 | 332,722 | 324,910 |
Gross carrying amount | Technology | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 742,621 | 153,164 | |
Foreign currency translation | (57,258) | (376) | |
Changes in consolidation group | 185 | 589,833 | |
Reclassifications | 182 | ||
Balance at the end of the period | 685,730 | 742,621 | 153,164 |
Gross carrying amount | Licenses and distribution agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 202,287 | 235,625 | |
Foreign currency translation | (12,468) | 4,678 | |
Changes in consolidation group | (38,126) | ||
Additions | 3,222 | 783 | |
Reclassifications | 2,581 | 5,093 | |
Disposals | (7,159) | (5,766) | |
Balance at the end of the period | 188,463 | 202,287 | 235,625 |
Gross carrying amount | Customer relationships | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 68,931 | 23,847 | |
Foreign currency translation | (4,590) | (116) | |
Changes in consolidation group | 47,880 | ||
Reclassifications | (1,567) | (2,680) | |
Balance at the end of the period | 62,774 | 68,931 | 23,847 |
Gross carrying amount | Construction in progress. | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 267,403 | 148,002 | |
Foreign currency translation | (10,499) | 1,208 | |
Changes in consolidation group | 36,892 | ||
Additions | 146,057 | 171,446 | |
Reclassifications | (168,797) | (86,898) | |
Disposals | (892) | (3,247) | |
Balance at the end of the period | 233,272 | 267,403 | 148,002 |
Gross carrying amount | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 298,039 | 217,033 | |
Foreign currency translation | (24,621) | 971 | |
Additions | 12,487 | 9,105 | |
Reclassifications | 117,584 | 71,152 | |
Disposals | (9,175) | (222) | |
Balance at the end of the period | 394,314 | 298,039 | 217,033 |
Gross carrying amount | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 408,341 | 381,390 | |
Foreign currency translation | (22,371) | 6,852 | |
Changes in consolidation group | 13,135 | (1,949) | |
Additions | 20,611 | 11,007 | |
Reclassifications | 52,121 | 17,763 | |
Disposals | (102,756) | (6,722) | |
Balance at the end of the period | 369,081 | 408,341 | 381,390 |
Gross carrying amount | Non-amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 258,272 | ||
Foreign currency translation | (21,744) | ||
Reclassifications | 16 | ||
Balance at the end of the period | 236,544 | 258,272 | |
Gross carrying amount | Trade names | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 255,047 | ||
Foreign currency translation | (21,555) | ||
Balance at the end of the period | 233,492 | 255,047 | |
Gross carrying amount | Management contracts | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 3,225 | ||
Foreign currency translation | (189) | ||
Reclassifications | 16 | ||
Balance at the end of the period | 3,052 | 3,225 | |
Gross carrying amount | Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | 14,409,852 | ||
Foreign currency translation | (1,148,174) | ||
Changes in consolidation group | 253,455 | ||
Balance at the end of the period | 13,515,133 | 14,409,852 | |
Accumulated depreciation / amortization / impairment | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (1,152,286) | ||
Foreign currency translation | 75,419 | ||
Changes in consolidation group | 412 | ||
Additions - amortization | (144,669) | ||
Impairment loss | (1,556) | ||
Reclassifications | 2,640 | ||
Disposals | 119,518 | ||
Balance at the end of the period | (1,100,522) | (1,152,286) | |
Accumulated depreciation / amortization / impairment | Amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (1,124,468) | (988,675) | |
Foreign currency translation | 73,016 | (15,117) | |
Changes in consolidation group | 412 | 3,772 | |
Additions - amortization | (144,669) | (135,482) | |
Impairment loss | (304) | (932) | |
Reclassifications | 2,640 | (1,796) | |
Disposals | 119,518 | 13,762 | |
Balance at the end of the period | (1,073,855) | (1,124,468) | (988,675) |
Accumulated depreciation / amortization / impairment | Non-compete agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (296,123) | (282,296) | |
Foreign currency translation | 24,152 | (5,235) | |
Changes in consolidation group | 315 | 166 | |
Additions - amortization | (10,697) | (11,868) | |
Reclassifications | 6 | (26) | |
Disposals | 1,512 | 3,136 | |
Balance at the end of the period | (280,835) | (296,123) | (282,296) |
Accumulated depreciation / amortization / impairment | Technology | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (175,010) | (124,605) | |
Foreign currency translation | 13,488 | (1,140) | |
Additions - amortization | (55,318) | (49,265) | |
Reclassifications | 821 | ||
Balance at the end of the period | (216,019) | (175,010) | (124,605) |
Accumulated depreciation / amortization / impairment | Licenses and distribution agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (143,712) | (131,492) | |
Foreign currency translation | 7,933 | (2,607) | |
Changes in consolidation group | 22 | ||
Additions - amortization | (3,545) | (14,293) | |
Reclassifications | 181 | ||
Disposals | 10,372 | 4,680 | |
Balance at the end of the period | (128,749) | (143,712) | (131,492) |
Accumulated depreciation / amortization / impairment | Customer relationships | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (11,356) | (7,245) | |
Foreign currency translation | 613 | (12) | |
Additions - amortization | (4,134) | (4,099) | |
Reclassifications | 1,567 | ||
Balance at the end of the period | (13,310) | (11,356) | (7,245) |
Accumulated depreciation / amortization / impairment | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (169,185) | (138,343) | |
Foreign currency translation | 12,565 | (1,328) | |
Additions - amortization | (43,321) | (28,722) | |
Impairment loss | (932) | ||
Reclassifications | 88 | (360) | |
Disposals | 4,477 | 500 | |
Balance at the end of the period | (195,376) | (169,185) | (138,343) |
Accumulated depreciation / amortization / impairment | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (329,082) | (304,694) | |
Foreign currency translation | 14,265 | (4,795) | |
Changes in consolidation group | 75 | 3,606 | |
Additions - amortization | (27,654) | (27,235) | |
Impairment loss | (304) | ||
Reclassifications | (23) | (1,410) | |
Disposals | 103,157 | 5,446 | |
Balance at the end of the period | (239,566) | (329,082) | (304,694) |
Accumulated depreciation / amortization / impairment | Non-amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (27,818) | ||
Foreign currency translation | 2,403 | ||
Impairment loss | (1,252) | ||
Balance at the end of the period | (26,667) | (27,818) | |
Accumulated depreciation / amortization / impairment | Trade names | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (27,818) | ||
Foreign currency translation | 2,351 | ||
Impairment loss | (490) | ||
Balance at the end of the period | (25,957) | (27,818) | |
Accumulated depreciation / amortization / impairment | Management contracts | |||
Reconciliation of intangible assets other than goodwill | |||
Foreign currency translation | 52 | ||
Impairment loss | (762) | ||
Balance at the end of the period | (710) | ||
Accumulated depreciation / amortization / impairment | Goodwill | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (392,597) | ||
Foreign currency translation | 30,170 | ||
Impairment loss | (193,978) | ||
Balance at the end of the period | (556,405) | (392,597) | |
Gross carrying amount for amortizable assets and net carrying amount for non-amortizable assets | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 2,550,798 | 1,670,006 | |
Foreign currency translation | 22,646 | ||
Changes in consolidation group | 680,276 | ||
Additions | 192,366 | ||
Reclassifications | 4,156 | ||
Disposals | (18,652) | ||
Balance at the end of the period | 2,550,798 | € 1,670,006 | |
Hyperinflationary economies | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 1,660 | ||
Balance at the end of the period | 2,537 | 1,660 | |
Hyperinflationary economies | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 690 | ||
Balance at the end of the period | 719 | 690 | |
Hyperinflationary economies | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 970 | ||
Balance at the end of the period | 1,818 | 970 | |
Hyperinflationary economies | Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | 25,131 | ||
Balance at the end of the period | 24 | 25,131 | |
Hyperinflationary economies | Gross carrying amount | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 3,668 | ||
Balance at the end of the period | 4,941 | 3,668 | |
Hyperinflationary economies | Gross carrying amount | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 1,971 | ||
Balance at the end of the period | 2,081 | 1,971 | |
Hyperinflationary economies | Gross carrying amount | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 1,697 | ||
Balance at the end of the period | 2,860 | 1,697 | |
Hyperinflationary economies | Gross carrying amount | Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | 28,057 | ||
Balance at the end of the period | 33,564 | 28,057 | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (2,008) | ||
Balance at the end of the period | (2,404) | (2,008) | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (1,281) | ||
Balance at the end of the period | (1,362) | (1,281) | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (727) | ||
Balance at the end of the period | (1,042) | (727) | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | (2,926) | ||
Balance at the end of the period | € (33,540) | € (2,926) |
Intangible assets and goodwil_3
Intangible assets and goodwill - Goodwill and intangible assets with indefinite useful Life (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of geographic region | |||
Goodwill | € 12,958,728 | € 14,017,255 | |
Intangible assets other than goodwill | 1,381,009 | 1,426,330 | |
Goodwill | |||
Disclosure of geographic region | |||
Goodwill | 12,958,728 | 14,017,255 | € 12,209,606 |
Intangible assets | |||
Disclosure of geographic region | |||
Intangible assets other than goodwill | 1,381,009 | 1,426,330 | |
Management contracts | |||
Disclosure of geographic region | |||
Intangible assets other than goodwill | 2,342 | 3,225 | 3,134 |
Trade names | |||
Disclosure of geographic region | |||
Intangible assets other than goodwill | 207,535 | 227,229 | € 182,901 |
North America | Goodwill | |||
Disclosure of geographic region | |||
Goodwill | 10,908,633 | 11,762,791 | |
North America | Trade names | |||
Disclosure of geographic region | |||
Intangible assets other than goodwill | 207,535 | 226,692 | |
EMEA | Goodwill | |||
Disclosure of geographic region | |||
Goodwill | 1,328,543 | 1,342,730 | |
Asia Pacific | Goodwill | |||
Disclosure of geographic region | |||
Goodwill | 720,225 | 716,665 | |
Asia Pacific | Management contracts | |||
Disclosure of geographic region | |||
Intangible assets other than goodwill | 2,342 | 3,225 | |
Latin America | Goodwill | |||
Disclosure of geographic region | |||
Goodwill | € 1,327 | 195,069 | |
Latin America | Trade names | |||
Disclosure of geographic region | |||
Intangible assets other than goodwill | € 537 |
Current provisions and other _3
Current provisions and other current liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Development of provisions | ||
Provisions for share-based plans | € 26,876 | € 63,447 |
Miscellaneous current liabilities | ||
Personnel liabilities | 732,771 | 647,508 |
Put option liabilities | 645,784 | 654,963 |
Contract liabilities | 571,420 | 22,795 |
Unapplied cash and receivable credits | 495,962 | 482,682 |
Invoices outstanding | 180,227 | 178,209 |
VAT and other (non-income) tax liabilities | 113,595 | 104,388 |
Interest liabilities | 73,140 | 73,593 |
Derivatives | 40,923 | 13,246 |
Deferred Income | 34,885 | 8,145 |
Bonuses, commissions | 32,971 | 27,510 |
Legal matters, advisory and audit fees | 31,902 | 27,979 |
Variable payments outstanding for acquisitions | 19,313 | 34,253 |
Other liabilities | 220,345 | 216,923 |
Other current liabilities | 3,193,238 | € 2,492,194 |
Current provisions | ||
Development of provisions | ||
Provisions at beginning of period | 372,056 | |
Foreign currency translation | (26,192) | |
Changes in consolidation group | (477) | |
Utilized | (87,021) | |
Reversed | (115,432) | |
Additions | 155,099 | |
Reclassifications | 25,805 | |
Provisions at end of period | 323,838 | |
Current provisions | Self-insurance programs | ||
Development of provisions | ||
Provisions at beginning of period | 219,866 | |
Foreign currency translation | (18,963) | |
Reversed | (101,497) | |
Additions | 107,023 | |
Provisions at end of period | 206,429 | |
Current provisions | Personnel expenses | ||
Development of provisions | ||
Provisions at beginning of period | 90,526 | |
Foreign currency translation | (3,459) | |
Changes in consolidation group | (1,226) | |
Utilized | (77,774) | |
Reversed | (8,092) | |
Additions | 29,166 | |
Reclassifications | 26,124 | |
Provisions at end of period | 55,265 | |
Current provisions | Risk of lawsuit | ||
Development of provisions | ||
Provisions at beginning of period | 20,981 | |
Foreign currency translation | (1,992) | |
Changes in consolidation group | 204 | |
Utilized | (531) | |
Reversed | (111) | |
Additions | 5,998 | |
Reclassifications | (159) | |
Provisions at end of period | 24,390 | |
Current provisions | Other provisions | ||
Development of provisions | ||
Provisions at beginning of period | 40,683 | |
Foreign currency translation | (1,778) | |
Changes in consolidation group | 545 | |
Utilized | (8,716) | |
Reversed | (5,732) | |
Additions | 12,912 | |
Reclassifications | (160) | |
Provisions at end of period | € 37,754 |
Short-term debt and short-term
Short-term debt and short-term debt from related parties (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt | ||
Short-term debt from unrelated parties | € 62,950 | € 1,149,988 |
Short-term debt from related parties | 16,320 | 21,865 |
Short-term debt | 79,270 | 1,171,853 |
Commercial paper borrowing limit | 20,000 | 1,000,000 |
Borrowings offset under cash management system | 998,044 | 152,598 |
Commercial paper program | ||
Debt | ||
Short-term debt from unrelated parties | 19,995 | 999,732 |
Commercial paper borrowing limit | 1,000,000 | 1,000,000 |
Borrowings under lines of credit | ||
Debt | ||
Short-term debt from unrelated parties | € 42,442 | € 143,875 |
Average interest rate (as a percent) | 4.05% | 0.86% |
Other | ||
Debt | ||
Short-term debt from unrelated parties | € 513 | € 6,381 |
Other debt relating to fixed payments for acquisitions | ||
Debt | ||
Short-term debt from unrelated parties | 513 | 6,381 |
Amended 2012 Credit Agreement Excluded Amount | ||
Debt | ||
Remaining borrowing capacity | 1,077,152 | € 517,926 |
Maximum | Related party loan agreement | ||
Debt | ||
Short term borrowing capacity from related party | € 600,000 |
Long-term debt (Details)
Long-term debt (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Long-term debt | ||
Long-term debt | € 7,808,460 | € 7,905,557 |
Less current portion | (1,008,359) | (1,447,239) |
Long-term debt, less current portion | 6,800,101 | 6,458,318 |
Amended 2012 Credit Agreement | ||
Long-term debt | ||
Long-term debt | 1,162,342 | 1,901,372 |
Bonds | ||
Long-term debt | ||
Long-term debt | 6,408,118 | 4,966,619 |
Convertible Bonds | ||
Long-term debt | ||
Long-term debt | 399,939 | |
Accounts Receivable Facility | ||
Long-term debt | ||
Long-term debt | 379,570 | |
Other long-term debt | ||
Long-term debt | ||
Long-term debt | € 238,000 | € 258,057 |
Long-term debt - Amended 2012 c
Long-term debt - Amended 2012 credit agreement (Details) € in Thousands, $ in Thousands | May 29, 2020EUR (€) | Nov. 26, 2014USD ($) | Oct. 30, 2012USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Nov. 26, 2014EUR (€) | Oct. 30, 2012EUR (€) |
Amended 2012 Credit Agreement | |||||||||
Long-term debt | |||||||||
Maximum amount available | $ 4,400,000 | $ 3,850,000 | € 2,497,008 | € 3,183,030 | € 3,527,054 | € 2,970,221 | |||
Borrowings term (in years) | 5 years | ||||||||
Extended borrowings term (in years) | 2 years | ||||||||
Balance outstanding | € 1,163,572 | € 1,905,355 | |||||||
Amended 2012 Credit Agreement | Weighted average | USD | |||||||||
Long-term debt | |||||||||
Borrowings, interest rate | 1.21% | 1.21% | 3.24% | 3.24% | |||||
Amended 2012 Credit Agreement | Weighted average | EUR | |||||||||
Long-term debt | |||||||||
Borrowings, interest rate | 0.88% | 0.88% | 0.93% | 0.93% | |||||
Revolving credit facility USD | |||||||||
Long-term debt | |||||||||
Maximum amount available | $ 900,000 | € 733,436 | $ 900,000 | € 801,139 | |||||
Balance outstanding | 138,700 | 123,464 | |||||||
Letters of credit outstanding | 1,087 | 886 | 1,135 | 1,010 | |||||
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 | 1,110,000 | 904,572 | 1,230,000 | 1,094,891 | |||||
Balance outstanding | $ 1,110,000 | 904,572 | $ 1,230,000 | 1,094,891 | |||||
EUR term loan 5-year | |||||||||
Long-term debt | |||||||||
Maximum amount available | 259,000 | 287,000 | |||||||
Balance outstanding | € 259,000 | 287,000 | |||||||
EUR term loan 3-year | |||||||||
Long-term debt | |||||||||
Maximum amount available | 400,000 | ||||||||
Balance outstanding | € 400,000 | ||||||||
Repayment of loans | € 400,000 |
Long-term debt - Bonds (Details
Long-term debt - Bonds (Details) € in Thousands, $ in Thousands | Sep. 16, 2020USD ($) | Jul. 17, 2020USD ($) | May 29, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Sep. 16, 2020EUR (€) | Dec. 31, 2019EUR (€) | Oct. 29, 2014EUR (€) |
Debt | ||||||||
Long-term debt | € 7,808,460 | € 7,905,557 | ||||||
Fresenius Medical Care US Finance II, Inc. | ||||||||
Debt | ||||||||
Face amount | € 392,557 | |||||||
Redemption of bonds | $ | $ 500,000 | |||||||
FMC US Finance II, Inc. 2014 | ||||||||
Debt | ||||||||
Face amount | $ | $ 500,000 | |||||||
Interest rate (as a percent) | 4.125% | 4.125% | ||||||
Long-term debt | 444,507 | |||||||
FMC US Finance, Inc. 2011 | ||||||||
Debt | ||||||||
Face amount | $ | $ 650,000 | |||||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||||
Long-term debt | € 529,509 | 577,069 | ||||||
FMC Finance VII S.A. 2011 | ||||||||
Debt | ||||||||
Face amount | € 300,000 | |||||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||||
Long-term debt | € 299,961 | 299,498 | ||||||
FMC US Finance II, Inc. 2012 | ||||||||
Debt | ||||||||
Face amount | $ | $ 700,000 | |||||||
Interest rate (as a percent) | 5.875% | 5.875% | ||||||
Long-term debt | € 569,987 | 622,135 | ||||||
Fresenius Medical Care AG & Co. KGaA, 2019 | ||||||||
Debt | ||||||||
Face amount | € 650,000 | |||||||
Interest rate (as a percent) | 0.25% | 0.25% | ||||||
Long-term debt | € 647,719 | 646,936 | ||||||
FMC US Finance II, Inc. 2014 | ||||||||
Debt | ||||||||
Face amount | $ | $ 400,000 | |||||||
Interest rate (as a percent) | 4.75% | 4.75% | ||||||
Long-term debt | € 324,725 | 354,338 | ||||||
Fresenius Medical Care AG & Co. KGaA, 2018 | ||||||||
Debt | ||||||||
Face amount | € 500,000 | |||||||
Interest rate (as a percent) | 1.50% | 1.50% | ||||||
Long-term debt | € 496,841 | 496,138 | ||||||
Fresenius Medical Care AG & Co. KGaA, 2020 | ||||||||
Debt | ||||||||
Face amount | € 500,000 | |||||||
Interest rate (as a percent) | 1.00% | 1.00% | ||||||
Long-term debt | € 495,598 | |||||||
Fresenius Medical Care AG & Co. KGaA, 2019 | ||||||||
Debt | ||||||||
Face amount | € 600,000 | |||||||
Interest rate (as a percent) | 0.625% | 0.625% | ||||||
Long-term debt | € 594,196 | 593,216 | ||||||
FMC US Finance III, Inc. 2019 | ||||||||
Debt | ||||||||
Face amount | $ | $ 500,000 | |||||||
Interest rate (as a percent) | 3.75% | 3.75% | ||||||
Long-term debt | € 399,753 | 435,673 | ||||||
Fresenius Medical Care AG & Co. KGaA, 2019 | ||||||||
Debt | ||||||||
Face amount | € 500,000 | |||||||
Interest rate (as a percent) | 1.25% | 1.25% | ||||||
Long-term debt | € 497,138 | 497,109 | ||||||
Fresenius Medical Care AG & Co. KGaA, 2020 | ||||||||
Debt | ||||||||
Face amount | € 750,000 | |||||||
Interest rate (as a percent) | 1.50% | 1.50% | ||||||
Long-term debt | € 745,454 | |||||||
FMC US Finance III, Inc. 2020 | ||||||||
Debt | ||||||||
Face amount | $ | $ 1,000,000 | |||||||
Interest rate (as a percent) | 2.375% | 2.375% | ||||||
Long-term debt | € 807,237 | |||||||
Bonds | ||||||||
Debt | ||||||||
Long-term debt | € 6,408,118 | € 4,966,619 | ||||||
Redemption percentage at option of issuer | 100.00% | 100.00% | ||||||
Percentage at which holders have right to ask repurchase | 101.00% | 101.00% | ||||||
Debt Issuance Program | ||||||||
Debt | ||||||||
Face amount | € 1,250,000 | € 10,000,000 | ||||||
6-year bonds | ||||||||
Debt | ||||||||
Face amount | € 500,000 | |||||||
Interest rate (as a percent) | 1.00% | |||||||
Borrowings term (in years) | 6 years | |||||||
10-year bonds | ||||||||
Debt | ||||||||
Face amount | € 750,000 | |||||||
Interest rate (as a percent) | 1.50% | |||||||
Borrowings term (in years) | 10 years | |||||||
10 years and 5 months bonds | Fresenius Medical Care US Finance III, Inc. | ||||||||
Debt | ||||||||
Face amount | $ 1,000,000 | € 842,531 | ||||||
Interest rate (as a percent) | 2.375% | 2.375% | ||||||
Borrowings term (in years) | 10 years 5 months |
Long-term debt - Convertible bo
Long-term debt - Convertible bonds (Details) - Equity-neutral convertible bonds € in Thousands | Sep. 19, 2014EUR (€) |
Debt | |
Face amount | € 400,000 |
Average interest rate (as a percent) | 1.125% |
Long-term debt - Accounts Recei
Long-term debt - Accounts Receivable Facility and Other (Details) € in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 20, 2018USD ($) | Dec. 20, 2018EUR (€) |
Accounts Receivable Facility | ||||||
Long-term debt | ||||||
Maximum amount available | $ 900,000 | € 733,437 | $ 900,000 | € 801,139 | $ 900,000 | € 785,958 |
Balance outstanding | 427,000 | 380,096 | ||||
Letters of credit outstanding | $ 12,522 | 10,205 | $ 23,460 | € 20,883 | ||
Interest rate (as a percent) | 1.98% | 1.98% | ||||
Other long-term debt | ||||||
Long-term debt | ||||||
Fixed payment obligations for acquisitions | 33,562 | € 27,611 | ||||
Fixed payment obligations for acquisitions classified as current portion of long-term debt | € 23,202 | € 12,456 |
Non-current provisions and ot_3
Non-current provisions and other non-current liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Non-current provisions and other non-current liabilities | ||
Noncurrent provisions and other noncurrent liabilities | € 931,590 | € 616,916 |
Other non-current liabilities | 836,030 | 508,113 |
Non-current provisions | ||
Development of provisions | ||
Provisions at beginning of period | 108,803 | |
Foreign currency translation | (7,625) | |
Changes in consolidation group | 3,909 | |
Utilized | (3,391) | |
Reversed | (4,536) | |
Additions | 24,205 | |
Reclassifications | (25,805) | |
Provisions at end of period | 95,560 | |
Liabilities from share-based payment transactions | 36,406 | 47,411 |
Non-current provisions | Personnel expenses | ||
Development of provisions | ||
Provisions at beginning of period | 60,366 | |
Foreign currency translation | (4,569) | |
Changes in consolidation group | 710 | |
Utilized | (1,747) | |
Reversed | (3,576) | |
Additions | 20,190 | |
Reclassifications | (26,630) | |
Provisions at end of period | 44,744 | |
Non-current provisions | Income Tax Liability | ||
Development of provisions | ||
Provisions at beginning of period | 26,111 | |
Foreign currency translation | (197) | |
Additions | 3,161 | |
Provisions at end of period | 29,075 | |
Non-current provisions | Other provisions | ||
Development of provisions | ||
Provisions at beginning of period | 22,326 | |
Foreign currency translation | (2,859) | |
Changes in consolidation group | 3,199 | |
Utilized | (1,644) | |
Reversed | (960) | |
Additions | 854 | |
Reclassifications | 825 | |
Provisions at end of period | 21,741 | |
Contract liabilities | ||
Non-current provisions and other non-current liabilities | ||
Other non-current liabilities | 304,632 | 6 |
Put option liabilities | ||
Non-current provisions and other non-current liabilities | ||
Other non-current liabilities | 236,638 | 279,462 |
Variable payments outstanding for acquisitions | ||
Non-current provisions and other non-current liabilities | ||
Other non-current liabilities | 47,046 | 55,424 |
1 - 3 years | ||
Non-current provisions and other non-current liabilities | ||
Noncurrent provisions and other noncurrent liabilities | 700,306 | 219,129 |
3 - 5 years | ||
Non-current provisions and other non-current liabilities | ||
Noncurrent provisions and other noncurrent liabilities | 104,343 | 34,762 |
Over 5 Years | ||
Non-current provisions and other non-current liabilities | ||
Noncurrent provisions and other noncurrent liabilities | € 126,941 | € 363,025 |
Employee benefit plans - Define
Employee benefit plans - Defined benefit pension plans (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020EUR (€)plan | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | |
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 5 | ||
Defined benefit liability (asset) | € 729,114 | € 699,490 | |
FMCH | |||
Defined benefit pension plans | |||
Company contribution to plan | 9,901 | ||
Expected funding for next fiscal year | 1,059 | ||
United States, France and Germany | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | 685,164 | 660,343 | |
United States, France and Germany | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | 996,237 | 976,467 | € 842,601 |
United States | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 74,364 | 83,323 | |
United States | Funded plan | |||
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 1 | ||
United States | Funded plan | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 385,333 | 399,339 | |
France | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 17,700 | 16,765 | |
France | Funded plan | |||
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 1 | ||
France | Funded plan | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 5,581 | 5,498 | |
France | Unfunded plan | |||
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 2 | ||
France | Unfunded plan | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 12,223 | 11,375 | |
Germany | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 593,100 | 560,255 | |
Germany | Unfunded plan | |||
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 1 | ||
Germany | Unfunded plan | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 593,100 | € 560,255 |
Employee benefit plans - Net pe
Employee benefit plans - Net pension liability (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net defined benefit liability and asset | ||
Balance at beginning of year | € 699,490 | |
Balance at end of year | € 729,114 | € 699,490 |
Weighted average duration of defined benefit obligation | 19 years | 19 years |
Non-current portion of pension liability | € 718,502 | € 689,195 |
United States, France and Germany | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | 660,343 | |
Balance at end of year | 685,164 | 660,343 |
Current portion of pension liability | 6,923 | 6,190 |
Non-current portion of pension liability | 678,241 | 654,153 |
United States | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | 83,323 | |
Balance at end of year | 74,364 | € 83,323 |
Beneficiary percentage | 64.00% | |
France | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | 16,765 | |
Balance at end of year | 17,700 | € 16,765 |
Beneficiary percentage | 8.00% | |
Germany | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | 560,255 | |
Balance at end of year | 593,100 | € 560,255 |
Beneficiary percentage | 28.00% | |
Countries other than US, France, and Germany | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | 39,147 | |
Balance at end of year | 43,950 | € 39,147 |
Current portion of pension liability | 3,689 | 4,105 |
Non-current portion of pension liability | 40,261 | 35,042 |
Benefit obligation | United States, France and Germany | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | 976,467 | 842,601 |
Foreign currency translation gains/losses | (35,216) | 7,459 |
Current service cost | 40,213 | 30,070 |
Past service cost | (244) | |
Interest expense (income) | 21,298 | 28,016 |
Transfer of plan participants | 252 | 194 |
Actuarial (gains) losses arising from changes in financial assumptions | 15,480 | 140,923 |
Actuarial (gains) losses arising from changes in demographic assumptions | (87) | (2,306) |
Actuarial (gains) losses arising from experience adjustments | 9,278 | (4,873) |
Remeasurements | 24,671 | 133,744 |
Benefits paid | (30,873) | (60,863) |
Settlements | (331) | (4,754) |
Balance at end of year | 996,237 | 976,467 |
Plan assets | United States, France and Germany | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | (316,124) | (317,585) |
Foreign currency translation gains/losses | 28,316 | (6,130) |
Interest expense (income) | (10,846) | (14,108) |
Actuarial (gains) losses arising from experience adjustments | (28,847) | (34,131) |
Actual return on plan assets | (39,693) | (48,239) |
Employer contributions | (9,901) | (1,131) |
Benefits paid | 26,329 | 56,961 |
Balance at end of year | € (311,073) | € (316,124) |
Employee benefit plans - Weight
Employee benefit plans - Weighted average assumptions for benefit obligations (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Employee benefit plans | ||
Discount rate (as a percent) | 2.02% | 2.35% |
Rate of compensation increase (as a percent) | 3.17% | 3.18% |
Rate of pension increase (as a percent) | 1.46% | 1.70% |
Employee benefit plans - Sensit
Employee benefit plans - Sensitivity analysis (Details) € in Thousands | Dec. 31, 2020EUR (€) |
Sensitivity analysis | |
Increase in actuarial assumption (as a percent) | 0.50% |
Decrease in actuarial assumption (as a percent) | 0.50% |
Discount rate | |
Sensitivity analysis | |
Increase (decrease) in pension liability due to increase in assumption | € (91,605) |
Increase (decrease) in pension liability due to decrease in assumption | 106,665 |
Rate of compensation increase | |
Sensitivity analysis | |
Increase (decrease) in pension liability due to increase in assumption | 16,509 |
Increase (decrease) in pension liability due to decrease in assumption | (16,254) |
Rate of pension increase | |
Sensitivity analysis | |
Increase (decrease) in pension liability due to increase in assumption | 47,915 |
Increase (decrease) in pension liability due to decrease in assumption | € (43,190) |
Employee benefit plans - Compon
Employee benefit plans - Components of net periodic benefit cost (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefit plans | |||
Service cost | € 40,213 | € 30,070 | € 25,467 |
Net interest cost | 10,452 | 13,908 | 13,056 |
Prior service cost | (244) | ||
(Gains) losses from settlements | (331) | (4,754) | |
Net periodic benefit costs | € 50,090 | € 39,224 | € 38,523 |
Employee benefit plans - Weig_2
Employee benefit plans - Weighted average assumptions for periodic benefit cost (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefit plans | |||
Discount rate (as a percent) | 2.35% | 3.27% | 3.08% |
Rate of compensation increase (as a percent) | 3.18% | 3.21% | 3.22% |
Rate of pension increase (as a percent) | 1.70% | 1.69% | 1.45% |
Employee benefit plans - Defi_2
Employee benefit plans - Defined benefit pension plans - cash outflows (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined benefit pension plans | ||
Estimated future benefit payments | € 317,942 | € 331,620 |
Less than 1 year | ||
Defined benefit pension plans | ||
Estimated future benefit payments | 24,645 | 28,706 |
1 - 3 years | ||
Defined benefit pension plans | ||
Estimated future benefit payments | 53,882 | 56,577 |
3 - 5 years | ||
Defined benefit pension plans | ||
Estimated future benefit payments | 60,444 | 62,441 |
5 - 10 years | ||
Defined benefit pension plans | ||
Estimated future benefit payments | € 178,971 | € 183,896 |
Employee benefit plans - Plan A
Employee benefit plans - Plan Assets (Details) - Plan assets - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair values | ||
Plan assets | € 311,073 | € 316,124 |
Equity investments | ||
Fair values | ||
Index funds | 88,169 | 85,321 |
Fixed income investments | ||
Fair values | ||
Government securities | 15,720 | 2,875 |
Corporate bonds | 182,850 | 202,642 |
Other bonds | 16,576 | 10,179 |
U.S. treasury money market funds | 7,654 | 14,999 |
Other types of investments | ||
Fair values | ||
Cash, money market and mutual funds | 104 | 108 |
Level 1 | ||
Fair values | ||
Plan assets | 32,125 | 26,094 |
Level 1 | Equity investments | ||
Fair values | ||
Index funds | 8,926 | 8,440 |
Level 1 | Fixed income investments | ||
Fair values | ||
Government securities | 15,441 | 2,547 |
U.S. treasury money market funds | 7,654 | 14,999 |
Level 1 | Other types of investments | ||
Fair values | ||
Cash, money market and mutual funds | 104 | 108 |
Level 2 | ||
Fair values | ||
Plan assets | 271,752 | 282,613 |
Level 2 | Equity investments | ||
Fair values | ||
Index funds | 79,243 | 76,881 |
Level 2 | Fixed income investments | ||
Fair values | ||
Government securities | 279 | 328 |
Corporate bonds | 182,850 | 202,642 |
Other bonds | 9,380 | 2,762 |
Level 3 | ||
Fair values | ||
Plan assets | 7,196 | 7,417 |
Level 3 | Fixed income investments | ||
Fair values | ||
Other bonds | € 7,196 | € 7,417 |
Employee benefit plans - Plan i
Employee benefit plans - Plan investment policy (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Employee benefit plans | |
Preferred investment mix, long-term growth and income (as a percent) | 99.00% |
Preferred investment mix, cash and cash equivalents (as a percent) | 1.00% |
Target investment allocation for equity (as a percent) | 26.00% |
Target investment allocation for fixed income investments (as a percent) | 74.00% |
Minimum time horizon for invested funds | 5 years |
Employee benefit plans - Defi_3
Employee benefit plans - Defined contribution plans (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)Y | Dec. 31, 2020EUR (€)Y | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | |
Plan 401(k) | ||||
Defined contribution plans | ||||
Minimum age in which individual qualified for greater contribution amount | Y | 50 | 50 | ||
Maximum annual contributions as a percentage of gross pay (as a percent) | 75.00% | 75.00% | ||
Maximum annual contributions | $ 19,500 | € 15,900 | ||
Maximum annual contributions if over age 50 | $ 26,000 | € 21,200 | ||
Percentage of employee's deposit that Company will match | 50.00% | 50.00% | ||
Maximum percentage of employee's pay that Company will match | 3.00% | 3.00% | ||
Defined contribution expense | € 64,855,000 | € 53,290,000 | € 53,872,000 | |
State plan | ||||
Defined contribution plans | ||||
Defined contribution expense | € 28,096,000 | € 25,950,000 | € 24,721,000 |
Shareholders' equity - Capital
Shareholders' equity - Capital stock (Details) | 12 Months Ended | ||||||
Dec. 31, 2020€ / sharesshares | Dec. 15, 2020 | Dec. 14, 2020 | Mar. 30, 2020 | Dec. 31, 2019€ / sharesshares | May 16, 2013 | Feb. 08, 2011 | |
Shareholders' equity | |||||||
Number of shares issued | shares | 292,876,570 | 304,436,876 | |||||
Nominal value per share | € / shares | € 1 | € 1 | |||||
Vote to create Authorized Capital (as a percent) | 75.00% | ||||||
Period that General Partner and its management board may issue new shares | 5 years | ||||||
Maximum increase in Authorized Capital, as a percent to issued capital | 50.00% | ||||||
Vote to create Conditional Capital (as a percent) | 75.00% | ||||||
Maximum increase in Conditional Capital, as a percent to issued capital | 50.00% | ||||||
Maximum increase in Conditional Capital for purpose of issuing shares to management and employees, as a percent to issued capital | 10.00% | ||||||
Conversion ratio of preference shares to ordinary shares | 1 | ||||||
General Partner | |||||||
Shareholders' equity | |||||||
Annual fee, as percent of General Partner's share capital | 4.00% | ||||||
Fresenius SE | |||||||
Shareholders' equity | |||||||
Voting interest held (as a percent) | 32.20% | 35.74% | |||||
Artisan Partners Asset Management Inc. | |||||||
Shareholders' equity | |||||||
Voting interest held (as a percent) | 3.07% | ||||||
Harris Associates L.P | |||||||
Shareholders' equity | |||||||
Voting interest held (as a percent) | 3.08% | ||||||
BlackRock, Inc., Wilmington, DE, US | |||||||
Shareholders' equity | |||||||
Voting interest held (as a percent) | 3.12% | ||||||
Voting interest held through instruments (as a percent) | 0.32% |
Shareholders' equity - Authoriz
Shareholders' equity - Authorized capital (Details) € in Thousands | 12 Months Ended | |
Dec. 31, 2020EUR (€) | Aug. 27, 2020item | |
Authorized capital 2020/I | ||
Shareholders' equity | ||
Minimum number of occasions to increase share capital | item | 1 | |
Maximum increase in authorised capital | € 35,000 | |
Authorized capital 2020/II | ||
Shareholders' equity | ||
Maximum increase in authorised capital | € 25,000 | |
Maximum increase in capital (as a percent) | 10.00% |
Shareholders' equity - Conditio
Shareholders' equity - Conditional capital (Details) € / shares in Units, € in Thousands, shares in Millions | May 12, 2011EUR (€)€ / sharesshares | Dec. 31, 2020EUR (€)Options€ / shares | Dec. 31, 2019EUR (€)Options€ / shares | Dec. 31, 2018EUR (€)Options |
Shareholders' equity | ||||
Nominal value per share | € / shares | € 1 | € 1 | ||
Outstanding number of options | 3,201,074 | 3,488,989 | 3,896,000 | |
Outstanding options weighted average remaining contractual life | 2 years 4 months 6 days | 3 years 2 months 23 days | ||
Exercised | 235,000 | 329,000 | ||
Increase in capital stock from exercise of stock options | € | € 12,711 | € 17,195 | € 38,777 | |
2011 SOP | ||||
Shareholders' equity | ||||
Conditional increase in capital | € | € 12,000 | |||
Conditional increase in capital (in shares) | shares | 12 | |||
Nominal value per share | € / shares | € 1 | |||
Outstanding number of options | 3,201,074 | |||
Outstanding options weighted average remaining contractual life | 2 years 4 months 6 days | |||
Exercised | 234,796 | |||
Conditional Capital | € | € 9,494 | |||
Conditional Capital Plan | ||||
Shareholders' equity | ||||
Exercised | 234,796 | 328,996 | ||
Increase in capital stock from exercise of stock options | € | € 235 | € 329 |
Shareholders equity - Treasury
Shareholders equity - Treasury stock (Details) - EUR (€) € / shares in Units, € in Thousands | Apr. 02, 2020 | Jun. 14, 2019 | Mar. 11, 2019 | May 12, 2016 | Dec. 31, 2020 | Apr. 30, 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 | Dec. 31, 2018 | Jun. 30, 2018 | May 31, 2018 | Apr. 30, 2020 | May 31, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Apr. 02, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 | Dec. 31, 2017 |
Treasury stock | ||||||||||||||||||||||||||||||||
Maximum purchase of treasury shares, as a percent to registered capital | 10.00% | |||||||||||||||||||||||||||||||
Maximum value of share capital authorized to be repurchased | € 30,537 | |||||||||||||||||||||||||||||||
Value of treasury shares held | € 370,502 | € 370,502 | € 370,502 | |||||||||||||||||||||||||||||
Value of shares repurchased | € 365,988 | € 589,305 | € 37,221 | |||||||||||||||||||||||||||||
Treasury stock | ||||||||||||||||||||||||||||||||
Treasury stock | ||||||||||||||||||||||||||||||||
Maximum number of treasury shares authorized to be purchased | 14,879,979 | 12,000,000 | 6 | |||||||||||||||||||||||||||||
Maximum value of treasury shares authorized to be purchased | € 660,000 | € 330,000 | ||||||||||||||||||||||||||||||
Average price per share, at date | € 60.66 | € 51 | € 60.66 | € 60.66 | € 51 | € 65.63 | ||||||||||||||||||||||||||
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 | € 86.14 | € 86.69 | € 64.35 | € 71.55 | € 86.37 | € 62.55 | € 6,350 | |||||||||||
Average price per retired share, during period | € 62.44 | € 71.55 | € 87.23 | |||||||||||||||||||||||||||||
Number of treasury shares held | 6,107,629 | 999,951 | 6,107,629 | 6,107,629 | 999,951 | 1,659,951 | ||||||||||||||||||||||||||
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 | 257,726 | 173,274 | 5,687,473 | 3,770,772 | 431,000 | 5,107,678 | 10,795,151 | 5,687,473 | 8,878,450 | 431,000 | 999,951 | |||||||
Number of shares retired | 11,795,102 | 3,770,772 | 1,091,000 | 11,795,102 | 3,770,772 | 1,091,000 | ||||||||||||||||||||||||||
Value of treasury shares held | € 370,502 | € 50,993 | € 370,502 | € 370,502 | € 50,993 | € 108,931 | ||||||||||||||||||||||||||
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 | € 22,201 | € 15,020 | € 365,988 | € 269,796 | € 37,221 | € 319,509 | € 365,988 | 589,305 | 37,221 | |||||||||
Value of shares retired | € 736,490 | € 269,796 | € 95,159 | € 736,490 | € 269,796 | € 95,159 |
Shareholders' equity - Dividend
Shareholders' equity - Dividends (Details) - EUR (€) € / shares in Units, € in Thousands | Sep. 01, 2020 | May 21, 2019 | May 23, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Dividends | ||||||
Total dividends paid | € 351,170 | € 354,636 | € 324,838 | € 351,170 | € 354,636 | € 324,838 |
Dividends paid per share | € 1.20 | € 1.17 | € 1.06 |
Capital management (Details)
Capital management (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital management | ||||
Total equity including noncontrolling interests | € 12,331,310 | € 13,227,237 | € 12,901,958 | € 10,828,186 |
Debt and lease liabilities | 12,380,017 | 13,782,448 | ||
Total assets | € 31,689,036 | € 32,934,735 | € 26,242,268 | |
Debt and lease liabilities in % of total assets | 39.10% | 41.80% | ||
Total equity in % of total assets | 38.90% | 40.20% |
Earnings per share (Details)
Earnings per share (Details) - EUR (€) € / shares in Units, € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerators: | |||
Net income attributable to shareholders of FMC-AG & Co. KGaA | € 1,164,377 | € 1,199,619 | € 1,981,924 |
Denominators: | |||
Weighted average number of shares outstanding | 294,055,525 | 302,691,397 | 306,541,706 |
Potentially dilutive shares | 223,429 | 57,892 | 684,681 |
Basic earnings per share | € 3.96 | € 3.96 | € 6.47 |
Diluted earnings per share | € 3.96 | € 3.96 | € 6.45 |
Share-based plans - Performance
Share-based plans - Performance Targets to be Applied (Details) | 12 Months Ended | ||||
Dec. 31, 2020EUR (€)EquityInstrumentsitem | Dec. 31, 2019EUR (€)EquityInstruments | Dec. 31, 2018EUR (€)EquityInstruments | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based plans | |||||
Weight of each performance target | 33.33% | ||||
Performance period (in years) | 3 years | ||||
Number of performance targets | item | 3 | ||||
Annual target achievement level of 0% | Year 2020 | |||||
Share-based plans | |||||
Annual target achievement level (as a percent) | 0.00% | ||||
Revenue Growth | 1.00% | ||||
Net Income Growth | 0.00% | ||||
ROIC | 5.50% | ||||
Annual target achievement level of 0% | Years 2016-2019 | |||||
Share-based plans | |||||
Annual target achievement level (as a percent) | 0.00% | ||||
Revenue Growth | 0.00% | ||||
Net Income Growth | 0.00% | ||||
Decrease from target ROIC to drop to level | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 |
Annual target achievement level of 100% | Year 2020 | |||||
Share-based plans | |||||
Annual target achievement level (as a percent) | 100.00% | ||||
Revenue Growth | 6.00% | ||||
Net Income Growth | 5.00% | ||||
ROIC | 6.00% | ||||
Annual target achievement level of 100% | Years 2016-2019 | |||||
Share-based plans | |||||
Annual target achievement level (as a percent) | 100.00% | ||||
Revenue Growth | 7.00% | ||||
Net Income Growth | 7.00% | ||||
ROIC | 8.10% | 7.90% | 7.70% | 7.50% | 7.30% |
Annual target achievement level of 200% | Year 2020 | |||||
Share-based plans | |||||
Annual target achievement level (as a percent) | 200.00% | ||||
Revenue Growth | 11.00% | ||||
Net Income Growth | 10.00% | ||||
ROIC | 6.50% | ||||
Annual target achievement level of 200% | Years 2016-2019 | |||||
Share-based plans | |||||
Annual target achievement level (as a percent) | 200.00% | ||||
Revenue Growth | 16.00% | ||||
Net Income Growth | 14.00% | ||||
Increase over target ROIC to reach level | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 |
MB LTIP 2020 | |||||
Share-based plans | |||||
Vesting period | 3 years | ||||
Period considered for calculation of average share price | 30 days | ||||
Grant value cap (as a percent) | 400.00% | ||||
Period shares must be held | 1 year | ||||
Awarded (in shares) | EquityInstruments | 159.607 | ||||
Weighted average fair value | € 64.20 | ||||
Total fair value | € 10,247,000 | ||||
LTIP 2019 | |||||
Share-based plans | |||||
Vesting period | 3 years | ||||
Period considered for calculation of average share price | 30 days | ||||
Grant value cap (as a percent) | 400.00% | ||||
Awarded (in shares) | EquityInstruments | 800,165 | 817,089 | |||
Weighted average fair value | € 64.06 | € 62.16 | |||
Total fair value | € 51,259,000 | € 50,790,000 | |||
LTIP 2019 | Year 2019 | |||||
Share-based plans | |||||
Increase in overall target achievement level, if GEP -II target rate is 100% | 20.00% | ||||
Increase in overall target achievement level if Free Cash Flow target achievement 200% | 20.00% | ||||
MB LTIP 2019 | |||||
Share-based plans | |||||
Vesting period | 4 years | ||||
Period considered for calculation of average share price | 30 days | ||||
Awarded (in shares) | EquityInstruments | 114,999 | ||||
Weighted average fair value | € 60.70 | ||||
Total fair value | € 6,980,000 | ||||
NxStage LTIP | |||||
Share-based plans | |||||
Period considered for calculation of average share price | 30 days | ||||
Awarded (in shares) | EquityInstruments | 55,978 | ||||
Weighted average fair value | € 62.17 | ||||
Total fair value | € 3,480,000 | ||||
LTIP 2016 | |||||
Share-based plans | |||||
Vesting period | 4 years | ||||
Period considered for calculation of average share price | 30 days | ||||
Awarded (in shares) | EquityInstruments | 632,804 | ||||
Weighted average fair value | € 51.99 | ||||
Total fair value | € 32,900,000 | ||||
Management Board | LTIP 2016 | |||||
Share-based plans | |||||
Awarded (in shares) | EquityInstruments | 73,315 |
Share-based plans - Long-term i
Share-based plans - Long-term incentive program 2011 (Details) - EUR (€) € / shares in Units, € in Thousands, shares in Millions | May 12, 2011 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based payment transaction | |||
Nominal value per share | € 1 | € 1 | |
LTIP 2011 | |||
Share-based payment transaction | |||
Vesting period | 4 years | ||
2011 SOP | |||
Share-based payment transaction | |||
Vesting period | 4 years | ||
Conditional increase in capital | € 12,000 | ||
Conditional increase in capital (in shares) | 12 | ||
Nominal value per share | € 1 | ||
Award terms | 8 years | ||
Exercise price period basis | 30 days | ||
2011 Phantom stock awards | |||
Share-based payment transaction | |||
Award terms | 5 years |
Share-based plans - New incenti
Share-based plans - New incentive bonus plan (Details) - New incentive bonus plan, share-based component - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based plans | |||
Vesting period | 3 years | ||
Share-based compensation | € 0 | € 2,623 | € 3,414 |
Share-based plans - Information
Share-based plans - Information on Holdings under Share-based Plans (Details) | Dec. 31, 2020Optionsshares | Dec. 31, 2019Optionsshares | Dec. 31, 2018Options |
Share-based plans | |||
Number of stock options held | Options | 3,201,074 | 3,488,989 | 3,896,000 |
MB LTIP 2020 | |||
Share-based plans | |||
Number of performance shares held | 159,607 | ||
MB LTIP 2020 | Management Board | |||
Share-based plans | |||
Number of performance shares held | 159,607 | ||
LTIP 2019 | |||
Share-based plans | |||
Number of performance shares held | 1,530,971 | 797,659 | |
LTIP 2019 | Management Board | |||
Share-based plans | |||
Number of performance shares held | 8,869 | ||
LTIP 2019 | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 1,522,102 | 797,659 | |
MB LTIP 2019 | |||
Share-based plans | |||
Number of performance shares held | 114,999 | 114,999 | |
MB LTIP 2019 | Management Board | |||
Share-based plans | |||
Number of performance shares held | 102,435 | 102,435 | |
MB LTIP 2019 | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 12,564 | 12,564 | |
NxStage LTIP | |||
Share-based plans | |||
Number of performance shares held | 40,530 | 45,007 | |
NxStage LTIP | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 40,530 | 45,007 | |
LTIP 2016 | |||
Share-based plans | |||
Number of performance shares held | 1,082,606 | 1,959,020 | |
LTIP 2016 | Management Board | |||
Share-based plans | |||
Number of performance shares held | 135,473 | 211,878 | |
LTIP 2016 | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 947,133 | 1,747,142 | |
2011 SOP | |||
Share-based plans | |||
Number of stock options held | Options | 3,201,074 | ||
2011 SOP | Management Board | |||
Share-based plans | |||
Number of stock options held | Options | 465,308 | 452,989 | |
2011 SOP | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of stock options held | Options | 2,735,766 | 3,036,000 | |
2011 Phantom stock awards | Management Board | |||
Share-based plans | |||
Number of phantom shares held | 23,336 | ||
2011 Phantom stock awards | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of phantom shares held | 311,650 |
Share-based plans - Stock optio
Share-based plans - Stock options activity (Details) | 12 Months Ended | |
Dec. 31, 2020Options€ / shares | Dec. 31, 2019Options€ / shares | |
Options | ||
Options outstanding balance at the beginning of the year | Options | 3,488,989 | 3,896,000 |
Exercised | Options | 235,000 | 329,000 |
Expired | Options | 53,000 | |
Forfeited | Options | 78,000 | |
Options outstanding balance at the end of the year | Options | 3,201,074 | 3,488,989 |
Options Weighted Average Exercise Price | ||
Weighted average exercise price at the beginning of the year | € 70.32 | € 68.85 |
Exercised | 53 | 51.72 |
Expired | 75.65 | |
Forfeited | 75.08 | |
Weighted average exercise price at the end of the year | 71.50 | 70.32 |
Average market price of options exercised during year | € 71.75 | € 67.62 |
Share-based plans - Stock Opt_2
Share-based plans - Stock Options Exercise Price Range (Details) | 12 Months Ended | ||
Dec. 31, 2020Options€ / shares | Dec. 31, 2019Options€ / shares | Dec. 31, 2018Options€ / shares | |
Ranges of exercise prices | |||
Outstanding number of options | Options | 3,201,074 | 3,488,989 | 3,896,000 |
Outstanding options weighted average remaining contractual life | 2 years 4 months 6 days | 3 years 2 months 23 days | |
Outstanding options weighted average exercise price in Euro | € 71.50 | € 70.32 | € 68.85 |
Exercisable number of options | Options | 3,201,074 | 3,488,989 | |
Exercisable options weighted average exercise price in Euro | € 71.50 | € 70.32 | |
45.01-50.00 | |||
Ranges of exercise prices | |||
Outstanding number of options | Options | 630,870 | 767,001 | |
Outstanding options weighted average remaining contractual life | 1 year 5 months 9 days | 2 years 4 months 17 days | |
Outstanding options weighted average exercise price in Euro | € 49.91 | € 49.90 | |
Exercisable number of options | Options | 630,870 | 767,001 | |
Exercisable options weighted average exercise price in Euro | € 49.91 | € 49.90 | |
45.01-50.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 45.01 | 45.01 | |
45.01-50.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 50 | € 50 | |
50.01-55.00 | |||
Ranges of exercise prices | |||
Outstanding number of options | Options | 825 | ||
Outstanding options weighted average remaining contractual life | 11 months 5 days | ||
Outstanding options weighted average exercise price in Euro | € 52.27 | ||
Exercisable number of options | Options | 825 | ||
Exercisable options weighted average exercise price in Euro | € 52.27 | ||
50.01-55.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 50.01 | 50.01 | |
50.01-55.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | € 55 | € 55 | |
55.01-60.00 | |||
Ranges of exercise prices | |||
Outstanding number of options | Options | 31,080 | 133,375 | |
Outstanding options weighted average remaining contractual life | 1 year 11 months 1 day | 1 year 2 months 27 days | |
Outstanding options weighted average exercise price in Euro | € 58.63 | € 57.68 | |
Exercisable number of options | Options | 31,080 | 133,375 | |
Exercisable options weighted average exercise price in Euro | € 58.63 | € 57.68 | |
55.01-60.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 55.01 | 55.01 | |
55.01-60.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 60 | 60 | |
60.01-65.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 60.01 | 60.01 | |
60.01-65.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 65 | 65 | |
65.01-70.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 65.01 | 65.01 | |
65.01-70.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 70 | 70 | |
70.01-75.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 70.01 | 70.01 | |
70.01-75.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | € 75 | € 75 | |
75.01-80.00 | |||
Ranges of exercise prices | |||
Outstanding number of options | Options | 2,539,124 | 2,587,788 | |
Outstanding options weighted average remaining contractual life | 2 years 6 months 29 days | 3 years 6 months 29 days | |
Outstanding options weighted average exercise price in Euro | € 77.03 | € 77.03 | |
Exercisable number of options | Options | 2,539,124 | 2,587,788 | |
Exercisable options weighted average exercise price in Euro | € 77.03 | € 77.03 | |
75.01-80.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 75.01 | 75.01 | |
75.01-80.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | € 80 | € 80 |
Share-based Plans - Stock Opt_3
Share-based Plans - Stock Options Other Disclosure (Details) - EUR (€) € in Thousands | May 12, 2011 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based payment transaction | ||||
Proceeds from exercise of stock options | € 12,653 | € 15,864 | € 47,404 | |
Stock Options | ||||
Share-based payment transaction | ||||
Proceeds from exercise of stock options | 12,445 | 17,014 | 43,508 | |
Intrinsic value of stock options exercised | € 4,402 | 5,231 | 29,440 | |
Vesting period | 4 years | |||
2011 SOP | ||||
Share-based payment transaction | ||||
Vesting period | 4 years | |||
Expense from equity-settled share-based payment transactions | € 0 | € 1,992 | € 6,713 |
Share-based plans - Compensatio
Share-based plans - Compensation Expense Related to Cash-Settled Plans (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
MB LTIP 2020 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | € 2,115 | ||
LTIP 2019 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | 13,689 | € 4,771 | |
MB LTIP 2019 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | 820 | 656 | |
NxStage LTIP | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | 513 | 572 | |
LTIP 2016 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | 21,864 | 30,304 | € 4,152 |
LTIP 2011 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | € 1,894 | € 5,724 | € (8,799) |
Share-based plans - Care Coordi
Share-based plans - Care Coordination stock incentive plans (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Sound subsidiary stock incentive plan | |||
Share-based payment transaction | |||
Compensation costs | € 0 | € 0 | € 87,157 |
Leases - Leasing in the consoli
Leases - Leasing in the consolidated statements of income (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Depreciation on right-of-use assets | € 703,999 | € 700,276 |
Impairments on right-of-use assets | 3,496 | 38,820 |
Expenses relating to short-term leases | 49,532 | 52,108 |
Expenses relating to leases of low-value assets | 27,359 | 25,239 |
Expenses relating to variable lease payments | 12,442 | 10,814 |
Income from subleasing right-of-use assets | 4,165 | 4,367 |
Interest expense on lease liabilities | € 159,148 | € 171,724 |
Leases - Leases in the consolid
Leases - Leases in the consolidated balance sheets (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | € 4,325,115 | |
Additions - depreciation | (703,999) | € (700,276) |
Impairment loss | (3,496) | (38,820) |
Balance at the end of the period | 4,129,888 | 4,325,115 |
Land | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | 26,073 | |
Balance at the end of the period | 26,404 | 26,073 |
Buildings and improvements | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | 3,976,769 | |
Balance at the end of the period | 3,897,766 | 3,976,769 |
Machinery and equipment | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | 322,249 | |
Balance at the end of the period | 205,718 | 322,249 |
Advance Payments | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | 24 | |
Balance at the end of the period | 24 | |
Gross carrying amount | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | 5,056,012 | 4,276,533 |
Foreign currency translation | (411,352) | 73,689 |
Changes in consolidation group | (13,761) | (334) |
Additions | 891,980 | 719,598 |
Reclassifications | (35,762) | 33,588 |
Disposals | (43,920) | (47,062) |
Balance at the end of the period | 5,443,197 | 5,056,012 |
Gross carrying amount | Land | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | 30,575 | 28,717 |
Foreign currency translation | (2,240) | 447 |
Changes in consolidation group | (24) | (14) |
Additions | 6,384 | 2,300 |
Reclassifications | 98 | 512 |
Disposals | (283) | (1,387) |
Balance at the end of the period | 34,510 | 30,575 |
Gross carrying amount | Buildings and improvements | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | 4,590,695 | 3,840,380 |
Foreign currency translation | (375,099) | 65,603 |
Changes in consolidation group | (12,391) | (3,577) |
Additions | 851,392 | 694,031 |
Reclassifications | (613) | 15,074 |
Disposals | (36,199) | (20,816) |
Balance at the end of the period | 5,017,785 | 4,590,695 |
Gross carrying amount | Machinery and equipment | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | 434,718 | 407,436 |
Foreign currency translation | (34,013) | 7,639 |
Changes in consolidation group | (1,346) | 3,257 |
Additions | 34,066 | 23,243 |
Reclassifications | (35,189) | 18,002 |
Disposals | (7,334) | (24,859) |
Balance at the end of the period | 390,902 | 434,718 |
Gross carrying amount | Advance Payments | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | 24 | |
Additions | 138 | 24 |
Reclassifications | (58) | |
Disposals | (104) | |
Balance at the end of the period | 24 | |
Accumulated depreciation / amortization / impairment | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | (730,897) | |
Foreign currency translation | 92,583 | 1,641 |
Changes in consolidation group | 5,411 | 1,877 |
Additions - depreciation | (703,999) | (700,276) |
Impairment loss | (3,496) | (38,820) |
Reclassifications | 2,814 | (25,482) |
Disposals | 24,275 | 30,163 |
Balance at the end of the period | (1,313,309) | (730,897) |
Accumulated depreciation / amortization / impairment | Land | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | (4,502) | |
Foreign currency translation | 419 | (14) |
Changes in consolidation group | 4 | 4 |
Additions - depreciation | (4,242) | (3,936) |
Impairment loss | (134) | |
Reclassifications | 16 | (128) |
Disposals | 199 | (294) |
Balance at the end of the period | (8,106) | (4,502) |
Accumulated depreciation / amortization / impairment | Buildings and improvements | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | (613,926) | |
Foreign currency translation | 77,935 | 1,364 |
Changes in consolidation group | 5,319 | 1,768 |
Additions - depreciation | (604,493) | (581,081) |
Impairment loss | (3,496) | (38,686) |
Reclassifications | 304 | (3,424) |
Disposals | 18,338 | 6,133 |
Balance at the end of the period | (1,120,019) | (613,926) |
Accumulated depreciation / amortization / impairment | Machinery and equipment | ||
Leases in the consolidated balance sheets | ||
Balance at the beginning of the period | (112,469) | |
Foreign currency translation | 14,229 | 291 |
Changes in consolidation group | 88 | 105 |
Additions - depreciation | (95,264) | (115,259) |
Reclassifications | 2,494 | (21,930) |
Disposals | 5,738 | 24,324 |
Balance at the end of the period | € (185,184) | € (112,469) |
Leases - Leasing in the conso_2
Leases - Leasing in the consolidated statements of cash flows (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Cash outflow for leases | € 951,066 | € 945,169 |
Future cash outflows from leases that have not yet begun | 123,679 | 254,171 |
Potential future cash outflows resulting from purchase options, not reflected in the measurement of the lease liabilities | 41,215 | 56,507 |
Potential future cash outflows resulting from extension options, not reflected in the measurement of the lease liabilities | 6,407,955 | 6,691,551 |
Potential future cash outflows resulting from termination options, not reflected in the measurement of the lease liabilities | € 3,374 | € 3,493 |
Commitments and contingencies (
Commitments and contingencies (Details) € in Thousands, $ in Thousands | Mar. 29, 2019USD ($) | Mar. 29, 2019EUR (€) | Dec. 14, 2017USD ($) | Dec. 14, 2017EUR (€) | May 31, 2017item | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020EUR (€) | Jul. 31, 2015USD ($)claim | Jul. 31, 2015EUR (€)claim |
Commitments and contingencies | ||||||||||
Number of U.S. FDA Pending Warning Letters | 1 | 1 | ||||||||
Foreign Corrupt Practices Act | ||||||||||
Commitments and contingencies | ||||||||||
FCPA related payment | $ 231,715 | € 205,854 | ||||||||
Acid Concentrate Products - Personal Injury | ||||||||||
Commitments and contingencies | ||||||||||
Settlement fund | $ 220,000 | € 179,284 | ||||||||
Net litigation settlement expense recorded | 60,000 | € 48,896 | ||||||||
Amount to be recovered by AIG, if it prevails in all its remaining claims | 60,000 | 48,896 | ||||||||
Amount that FMCH claims to recover | $ 108,000 | € 88,012 | ||||||||
Hawaii Medicaid False Claims | ||||||||||
Commitments and contingencies | ||||||||||
Amount claimed against company | $ 7,700 | € 6,275 | ||||||||
Number of claims submitted | claim | 20,000 | 20,000 | ||||||||
Management of pharmaceuticals, including Velphoro | ||||||||||
Commitments and contingencies | ||||||||||
Litigation settlement by Davita Rx | $ 63,700 | € 53,778 | ||||||||
United States Attorney for the Middle District of Tennessee | ||||||||||
Commitments and contingencies | ||||||||||
Litigation settlement by Davita Rx | $ 63,700 | € 53,778 | ||||||||
Number of subsidiaries to which subpoenas were issued | item | 2 |
Financial instruments - Carryin
Financial instruments - Carrying amount and fair value (Details) - EUR (€) € in Thousands | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | |||
Carrying amount of financial assets | € 5,287,266 | € 5,450,851 | |
Carrying amount of financial liabilities | 15,734,923 | 17,069,499 | |
Transfer from Level 2 | € 186,427 | ||
Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 10,252,907 | 11,327,063 | |
FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 105,640 | 100,439 | |
Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 5,376,376 | 5,641,997 | |
Accounts payable to unrelated parties | |||
Financial instruments | |||
Carrying amount of financial liabilities | 731,993 | 716,526 | |
Accounts payable to unrelated parties | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 731,993 | 716,526 | |
Accounts payable to related parties | |||
Financial instruments | |||
Carrying amount of financial liabilities | 95,401 | 118,663 | |
Accounts payable to related parties | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 95,401 | 118,663 | |
Short-term debt | |||
Financial instruments | |||
Carrying amount of financial liabilities | 79,270 | 1,171,853 | |
Short-term debt | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 79,270 | 1,171,853 | |
Long-term debt | |||
Financial instruments | |||
Carrying amount of financial liabilities | 7,808,460 | 7,905,557 | |
Long-term debt | Level 1 | |||
Financial instruments | |||
Fair value of financial liabilities | 6,764,681 | 5,555,475 | |
Long-term debt | Level 2 | |||
Financial instruments | |||
Fair value of financial liabilities | 1,404,640 | 2,537,932 | |
Long-term debt | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 7,808,460 | 7,905,557 | |
Lease liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 4,492,287 | 4,705,038 | |
Lease liabilities | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 4,492,287 | 4,705,038 | |
Other current and non-current liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 2,527,512 | 2,451,862 | |
Other current and non-current liabilities | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,537,783 | 1,414,464 | |
Other current and non-current liabilities | FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 105,640 | 100,439 | |
Other current and non-current liabilities | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 884,089 | 936,959 | |
Derivatives - cash flow hedging instruments | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,667 | 2,534 | |
Derivatives - cash flow hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial liabilities | 1,667 | 2,534 | |
Derivatives - cash flow hedging instruments | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,667 | 2,534 | |
Derivatives - not designated as hedging instruments | |||
Financial instruments | |||
Carrying amount of financial liabilities | 39,281 | 10,762 | |
Derivatives - not designated as hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial liabilities | 39,281 | 10,762 | |
Derivatives - not designated as hedging instruments | FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 39,281 | 10,762 | |
Variable payments outstanding for acquisition | |||
Financial instruments | |||
Carrying amount of financial liabilities | 66,359 | 89,677 | |
Variable payments outstanding for acquisition | Level 3 | |||
Financial instruments | |||
Fair value of financial liabilities | 66,359 | 89,677 | |
Variable payments outstanding for acquisition | FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 66,359 | 89,677 | |
Put option liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 882,422 | 934,425 | |
Put option liabilities | Level 3 | |||
Financial instruments | |||
Fair value of financial liabilities | 882,422 | 934,425 | |
Put option liabilities | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 882,422 | 934,425 | |
Other financial liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,537,783 | 1,414,464 | |
Other financial liabilities | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,537,783 | 1,414,464 | |
Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 4,149,163 | 4,485,470 | |
FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 601,003 | 463,344 | |
FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 354,865 | 312,808 | |
Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 182,235 | 189,229 | |
Cash and cash equivalents | |||
Financial instruments | |||
Carrying amount of financial assets | 1,081,539 | 1,007,723 | |
Cash and cash equivalents | Level 1 | |||
Financial instruments | |||
Fair value of financial assets | 300,367 | 166,677 | |
Cash and cash equivalents | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 143 | ||
Cash and cash equivalents | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 781,029 | 841,046 | |
Cash and cash equivalents | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 300,510 | 166,677 | |
Trade accounts and other receivables from unrelated parties | |||
Financial instruments | |||
Carrying amount of financial assets | 3,153,045 | 3,421,346 | |
Trade accounts and other receivables from unrelated parties | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 3,080,770 | 3,343,873 | |
Trade accounts and other receivables from unrelated parties | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 72,275 | 77,473 | |
Accounts receivable from related parties | |||
Financial instruments | |||
Carrying amount of financial assets | 91,438 | 159,196 | |
Accounts receivable from related parties | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 91,438 | 159,196 | |
Other current and non-current assets | |||
Financial instruments | |||
Carrying amount of financial assets | 961,244 | 862,586 | |
Other current and non-current assets | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 195,926 | 141,355 | |
Other current and non-current assets | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 300,493 | 296,667 | |
Other current and non-current assets | FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 354,865 | 312,808 | |
Other current and non-current assets | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 109,960 | 111,756 | |
Derivatives - cash flow hedging instruments | |||
Financial instruments | |||
Carrying amount of financial assets | 1,130 | 107 | |
Derivatives - cash flow hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 1,130 | 107 | |
Derivatives - cash flow hedging instruments | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 1,130 | 107 | |
Derivatives - not designated as hedging instruments | |||
Financial instruments | |||
Carrying amount of financial assets | 5,367 | 2,406 | |
Derivatives - not designated as hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 5,367 | 2,406 | |
Derivatives - not designated as hedging instruments | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 5,367 | 2,406 | |
Equity investments | |||
Financial instruments | |||
Carrying amount of financial assets | 248,650 | 237,248 | |
Equity investments | Level 1 | |||
Financial instruments | |||
Fair value of financial assets | 11,911 | 13,110 | |
Equity investments | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 48,221 | 41,084 | |
Equity investments | Level 3 | |||
Financial instruments | |||
Fair value of financial assets | 188,518 | 183,054 | |
Equity investments | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 191,739 | 186,273 | |
Equity investments | FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 56,911 | 50,975 | |
Debt securities | |||
Financial instruments | |||
Carrying amount of financial assets | 401,341 | 369,821 | |
Debt securities | Level 1 | |||
Financial instruments | |||
Fair value of financial assets | 396,392 | 365,170 | |
Debt securities | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 4,949 | 4,651 | |
Debt securities | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 103,387 | 107,988 | |
Debt securities | FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 297,954 | 261,833 | |
Other financial assets | |||
Financial instruments | |||
Carrying amount of financial assets | 304,756 | 253,004 | |
Other financial assets | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 195,926 | 141,355 | |
Other financial assets | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | € 108,830 | € 111,649 |
Financial instruments - Fair va
Financial instruments - Fair values of listed and non-listed equity investments (Details) € in Thousands | 12 Months Ended | |
Dec. 31, 2020EUR (€)item | Dec. 31, 2019EUR (€)item | |
Financial instruments | ||
Amount of gains transferred from OCI to retained earnings | € 11,385 | |
Financial assets | 5,287,266 | € 5,450,851 |
Equity investments | ||
Financial instruments | ||
Financial assets | € 248,650 | € 237,248 |
Listed equity investments | ||
Financial instruments | ||
Number of equity investments | item | 1 | 1 |
Non-listed equity investments | ||
Financial instruments | ||
Number of equity investments | item | 12 | 12 |
FVOCI - Assets | ||
Financial instruments | ||
Financial assets | € 354,865 | € 312,808 |
FVOCI - Assets | Equity investments | ||
Financial instruments | ||
Financial assets | 56,911 | 50,975 |
FVOCI - Assets | Listed equity investments | ||
Financial instruments | ||
Financial assets | 11,911 | 13,110 |
FVOCI - Assets | Non-listed equity investments | ||
Financial instruments | ||
Financial assets | € 45,000 | € 37,865 |
Financial instruments - Derivat
Financial instruments - Derivative and non-derivative financial instruments (Details) € in Thousands | Sep. 30, 2019EUR (€) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2020EUR (€)item |
Reconciliation of changes in fair value measurement | |||||
Assets at beginning of period | € 32,934,735 | € 26,242,268 | |||
Transfer from Level 2 | € 186,427 | ||||
Assets at end of period | 31,689,036 | 32,934,735 | € 26,242,268 | € 31,689,036 | |
Liabilities at beginning of period | 19,707,498 | ||||
Liabilities at end of period | 19,357,726 | 19,707,498 | 19,357,726 | ||
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 | ||||
Gain / loss recognised in profit or loss | 22,489 | 128 | |||
Foreign currency translation and other changes | (17,025) | (5,734) | |||
Assets at end of period | 188,518 | 183,054 | 188,518 | ||
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 | 205,792 | 205,792 | |
Increase | 17,253 | 4,828 | 19,051 | ||
Decrease | (35,764) | (43,941) | (15,734) | ||
Gain / loss recognized in profit or loss | (1,996) | (41,537) | (36,327) | ||
Foreign currency translation and other changes | (2,811) | (1,951) | (504) | ||
Liabilities at end of period | 66,359 | 89,677 | 172,278 | 66,359 | |
Put option liabilities | |||||
Reconciliation of changes in fair value measurement | |||||
Put option liabilities exercisable | 395,759 | 385,924 | 408,525 | € 395,759 | |
Number of put options exercised | item | 231 | ||||
Consideration for put options exercised | € 98,936 | ||||
Liabilities at beginning of period | 934,425 | 818,871 | |||
Liabilities at end of period | 882,422 | 934,425 | 818,871 | 882,422 | |
Put option liabilities | Fair Value | Level 3 | |||||
Reconciliation of changes in fair value measurement | |||||
Liabilities at beginning of period | 934,425 | 818,871 | 830,773 | 830,773 | |
Increase | 51,388 | 109,109 | 53,731 | ||
Decrease | (99,877) | (20,269) | (50,706) | ||
Gain / loss recognized in equity | 73,993 | 14,523 | (48,075) | ||
Foreign currency translation and other changes | (77,507) | 12,191 | 33,148 | ||
Liabilities at end of period | € 882,422 | € 934,425 | € 818,871 | € 882,422 | |
Put option liabilities | Fair Value | Level 3 | Assumed earnings | |||||
Reconciliation of changes in fair value measurement | |||||
Increase in input | 10.00% | 10.00% | |||
Increase in fair value due to increase in input | € 63,362 | ||||
Put option liabilities | 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% | 1.00% | |||
Increase in fair value due to increase in input, as percentage of equity | 1.00% | 1.00% |
Financial Instruments - Deriv_2
Financial Instruments - Derivatives financial risks (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | € 6,452 | € 2,108 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 40,724 | 12,355 |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements | 1,192 | 137 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | € 35,464 | € 10,384 |
Financial Instruments - Foreign
Financial Instruments - Foreign exchange risk management (Details) - Foreign exchange risk - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives - cash flow hedging instruments | ||
Financial instruments | ||
Notional amount | € 134,637 | € 115,263 |
Derivatives - not designated as hedging instruments | ||
Financial instruments | ||
Notional amount | € 1,537,416 | € 626,585 |
Financial instruments - Forei_2
Financial instruments - Foreign exchange risk (Details) - Foreign exchange risk € in Thousands | 12 Months Ended |
Dec. 31, 2020EUR (€)€ / $€ / £€ / $D | |
Financial risk management and financial instruments | |
Number of preceding business days for calculation of probability distributions | D | 250 |
Confidence level (as a percent) | 95.00% |
Holding period | 1 year |
Net exposure | € 1,565,589 |
CFaR | 59,557 |
USD | |
Financial risk management and financial instruments | |
Notional amount | € 988,595 |
Average hedging rate | € / $ | 1.1902 |
AUD | |
Financial risk management and financial instruments | |
Notional amount | € 212,264 |
Average hedging rate | € / $ | 1.6303 |
GBP | |
Financial risk management and financial instruments | |
Notional amount | € 58,273 |
Average hedging rate | € / £ | 0.9041 |
Financial instruments - Interes
Financial instruments - Interest rate risk (Details) - Interest rate risk - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial debt bearing variable interest rate, not hedged | ||
Financial risk management and financial instruments | ||
Percentage increase in variable interest rate for sensitivity analysis | 0.50% | |
Financial debt bearing variable interest rate, not hedged | Maximum | ||
Financial risk management and financial instruments | ||
Percentage effect on consolidated net income | 1.00% | |
Percentage effect on equity | 0.10% | |
Interest rate pre-hedges | ||
Financial risk management and financial instruments | ||
Reserve of cash flow hedges | € 7,572 | € 9,249 |
Financial instruments - Deriv_3
Financial instruments - Derivative financial instruments valuation (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial instruments | ||
Current Assets | € 6,470 | € 2,513 |
Current Liabilities | (40,923) | (13,246) |
Derivatives - cash flow hedging instruments | ||
Financial instruments | ||
Total Assets | 1,130 | 107 |
Total Liabilities | (1,667) | (2,534) |
Derivatives - cash flow hedging instruments | Foreign exchange contracts | ||
Financial instruments | ||
Current Assets | 1,103 | 107 |
Non-current Assets | 27 | |
Current Liabilities | (1,642) | (2,484) |
Non-current Liabilities | (25) | (50) |
Derivatives - not designated as hedging instruments | ||
Financial instruments | ||
Total Assets | 5,367 | 2,406 |
Total Liabilities | (39,281) | (10,762) |
Derivatives - not designated as hedging instruments | Foreign exchange contracts | ||
Financial instruments | ||
Current Assets | 5,367 | 2,406 |
Current Liabilities | € (39,281) | € (10,762) |
Financial instruments - Effect
Financial instruments - Effect of derivatives on consolidated financial statements (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial instruments | |||
Interest income recorded as an effect of financial instruments | € 41,137 | € 59,448 | |
Interest expense recorded as an effect of financial instruments | 407,065 | 486,039 | |
Credit losses recorded as an effect of financial instruments | 28,302 | 42,315 | |
Net losses from foreign currency transactions | 15,919 | 4,901 | |
Fair value gain (loss) recognized in AOCI on hedging instrument (hedge reserve) | 6,123 | (15,996) | € 4,924 |
Fair value gain (loss) recognized in AOCI on hedging instrument (cost of hedging) | (2,062) | (1,473) | € (2,244) |
Derivatives - cash flow hedging instruments | |||
Financial instruments | |||
Fair value gain (loss) recognized in AOCI on hedging instrument (hedge reserve) | 6,123 | (15,996) | |
Fair value gain (loss) recognized in AOCI on hedging instrument (cost of hedging) | (2,062) | (1,473) | |
Amount reclassified from hedge reserve included in Interest income/expense | 1,249 | 2,753 | |
Amount reclassified from hedge reserve included in revenue | (4,612) | 1,331 | |
Amount reclassified from cost of hedging included in revenue | 1,990 | 1,480 | |
Amount reclassified from hedge reserve included in cost of revenue | (2,662) | 2,509 | |
Amount reclassified from cost of hedging included in cost of revenue | 3,085 | (1,913) | |
Amount reclassified from hedge reserve included in Inventory | (286) | (269) | |
Amount reclassified from cost of hedging included in Inventory | (46) | (55) | |
Amount reclassified from hedge reserve | (6,311) | 6,324 | |
Amount reclassified from cost of hedging | 5,029 | (488) | |
Derivatives - cash flow hedging instruments | Interest rate swap | |||
Financial instruments | |||
Fair value gain (loss) recognized in AOCI on hedging instrument (hedge reserve) | (12,807) | ||
Derivatives - cash flow hedging instruments | Foreign exchange contracts | |||
Financial instruments | |||
Fair value gain (loss) recognized in AOCI on hedging instrument (hedge reserve) | 6,123 | (3,189) | |
Fair value gain (loss) recognized in AOCI on hedging instrument (cost of hedging) | (2,062) | (1,473) | |
Derivatives - not designated as hedging instruments | |||
Financial instruments | |||
Amount of (Gain) Loss recognized in income on Derivatives - Total | 52,725 | 24,177 | |
Derivatives - not designated as hedging instruments | Foreign exchange contracts | |||
Financial instruments | |||
Amount of (Gain) Loss recognized in income on Derivatives - Selling, general and administrative expense | 48,925 | 7,686 | |
Amount of (Gain) Loss recognized in income on Derivatives - Interest income/expense | € 3,800 | 16,491 | |
Derivatives - not designated as hedging instruments | Derivatives embedded in the Convertible Bonds | |||
Financial instruments | |||
Amount of (Gain) Loss recognized in income on Derivatives - Interest income/expense | (11,820) | ||
Derivatives - not designated as hedging instruments | Share Options to secure the Convertible Bonds | |||
Financial instruments | |||
Amount of (Gain) Loss recognized in income on Derivatives - Interest income/expense | € 11,820 |
Financial instruments - Deriv_4
Financial instruments - Derivatives, cash flow and credit risk (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives | ||
Financial instruments | ||
Maximum credit exposure | € 6,497 | € 2,513 |
Derivatives - cash flow hedging instruments | Less than 1 year | ||
Financial instruments | ||
Cash flow from derivative financial instruments | (539) | (2,377) |
Derivatives - cash flow hedging instruments | 1 - 3 years | ||
Financial instruments | ||
Cash flow from derivative financial instruments | 2 | (50) |
Derivatives - not designated as hedging instruments | Less than 1 year | ||
Financial instruments | ||
Cash flow from derivative financial instruments | € (33,914) | € (8,356) |
Financial instruments - Payment
Financial instruments - Payments agreed by contracts (Details) - EUR (€) € in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts payable to unrelated parties | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | € 731,993 | € 716,526 |
Accounts payable to unrelated parties | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1 | |
Accounts payable to related parties | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 95,401 | 118,663 |
Other current financial liabilities | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,537,782 | 1,414,464 |
Short-term debt | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 79,270 | 1,171,853 |
Amended 2012 Credit Agreement | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 138,326 | 577,115 |
Amended 2012 Credit Agreement | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,043,542 | 1,424,798 |
Bonds and Convertible Bonds | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 976,211 | 1,004,042 |
Bonds and Convertible Bonds | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,416,985 | 1,686,586 |
Bonds and Convertible Bonds | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 987,015 | 1,109,894 |
Bonds and Convertible Bonds | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 4,031,570 | 2,166,434 |
Accounts Receivable Facility | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 7,518 | |
Accounts Receivable Facility | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 387,468 | |
Other long-term debt | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 53,097 | 68,078 |
Other long-term debt | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 66,310 | 66,531 |
Other long-term debt | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 70,339 | 74,131 |
Other long-term debt | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 48,332 | 49,467 |
Lease liabilities | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 735,890 | 789,145 |
Lease liabilities | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,375,720 | 1,479,119 |
Lease liabilities | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,026,391 | 1,112,401 |
Lease liabilities | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 2,053,642 | 2,190,926 |
Variable payments outstanding for acquisition | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 19,313 | 34,253 |
Variable payments outstanding for acquisition | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 18,687 | 26,710 |
Variable payments outstanding for acquisition | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 28,261 | 26,325 |
Variable payments outstanding for acquisition | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 8,273 | 9,503 |
Put option liabilities | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 645,784 | 654,963 |
Put option liabilities | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 102,142 | 114,950 |
Put option liabilities | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 93,357 | 136,163 |
Put option liabilities | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 74,648 | 69,190 |
Letters of credit | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 11,091 | 21,893 |
Derivatives - cash flow hedging instruments | Less than 1 year | ||
Payments | ||
Non-discounted payments, derivative financial instruments | 1,642 | 2,484 |
Derivatives - cash flow hedging instruments | 1 - 3 years | ||
Payments | ||
Non-discounted payments, derivative financial instruments | 25 | 50 |
Derivatives - not designated as hedging instruments | Less than 1 year | ||
Payments | ||
Non-discounted payments, derivative financial instruments | € 39,281 | € 10,762 |
Other comprehensive income (l_3
Other comprehensive income (loss) (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other comprehensive income (loss) | |||
Equity method investees - share of OCI, Pretax | € 58,166 | ||
Equity method investees - share of OCI, net | 58,166 | ||
FVOCI equity investments, pretax | 19,439 | ||
FVOCI equity investments, tax | (2,326) | ||
FVOCI equity investments, net | 17,113 | ||
Actuarial gains (losses) on defined benefit pension plans | 4,176 | € (99,613) | € (28,070) |
Actuarial gain (loss) on defined benefit pension plans, Tax effect | (1,191) | 30,245 | 7,713 |
Actuarial gain (loss) on defined benefit pension plans, Net | 2,985 | (69,368) | (20,357) |
Foreign currency translation adjustment, Pretax | (1,359,397) | 263,835 | 327,317 |
Foreign currency translation adjustment, Net | (1,359,397) | 263,835 | 327,317 |
FVOCI debt securities, pretax | 29,096 | ||
FVOCI debt securities, tax | (5,048) | ||
FVOCI debt securities, net | 24,048 | ||
Changes in fair value of cash flow hedges during the period, Pretax | 6,123 | (15,996) | 4,924 |
Changes in fair value of cash flow hedges during the period, Tax effect | (1,839) | 3,892 | (1,301) |
Changes in fair value of cash flow hedges during the period, Net | 4,284 | (12,104) | 3,623 |
Cost of hedging, Pretax | (2,062) | (1,473) | (2,244) |
Cost of hedging, Tax effect | 608 | 460 | 603 |
Cost of hedging, Net | (1,454) | (1,013) | (1,641) |
Reclassification adjustments, pretax | (1,282) | 5,836 | 20,880 |
Reclassification adjustments, Tax effect | 482 | (1,678) | (6,036) |
Reclassification adjustments, Net | (800) | 4,158 | 14,844 |
Total other comprehensive income (loss) relating to cash flow hedges, Pretax | 2,779 | (11,633) | 23,560 |
Total other comprehensive income (loss) relating to cash flow hedges, Tax effect | (749) | 2,674 | (6,734) |
Total other comprehensive income (loss) relating to cash flow hedges, Net | 2,030 | (8,959) | 16,826 |
Other comprehensive income (loss), Pretax | (1,245,741) | 152,589 | 322,807 |
Other comprehensive income (loss), Tax effect | (9,314) | 32,919 | 979 |
Other comprehensive income (loss), net of tax | € (1,255,055) | € 185,508 | € 323,786 |
Supplementary cash flow infor_3
Supplementary cash flow information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Details for acquisitions | |||
Assets acquired | € (337,300) | € (2,639,432) | € (360,375) |
Liabilities assumed | 41,761 | 260,120 | 21,122 |
Put option liabilities | 26,801 | 72,151 | 11,901 |
Noncontrolling interests | 10,339 | 65,217 | 45,319 |
Non-cash consideration | 33,804 | 26,637 | 28,530 |
Cash paid | (224,595) | (2,215,307) | (253,503) |
Less cash acquired | 9,759 | 55,210 | 3,538 |
Net cash paid for acquisitions | (214,836) | (2,160,097) | (249,965) |
Cash paid for investments | (10,899) | (23,290) | (109,948) |
Cash paid for intangible assets | (33,250) | (37,972) | (85,103) |
Total cash paid for acquisitions and investments, net of cash acquired and purchases of intangible assets | (258,985) | (2,221,359) | (445,016) |
Details for divestitures | |||
Cash received from sale of subsidiaries or other businesses, less cash disposed | 14,608 | 43,317 | 1,532,724 |
Cash received from repayment of loans | 79 | ||
Proceeds from divestitures | € 14,608 | € 43,317 | 1,532,803 |
Tax payment of disposal | 142,593 | ||
Divested of aggregate assets, excluding cash | 1,100,315 | ||
Divested liabilities | 296,857 | ||
Put option liabilities | 469 | ||
Divested noncontrolling interests | € 16,540 |
Supplementary cash flow infor_4
Supplementary cash flow information - Reconciliation of debt to net cash provided by (used in) financing activities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Liabilities from capital leases in accordance with IAS 17 | € 36,144 | ||
Repayments of variable payments outstanding for acquisitions | € 22,746 | € 41,803 | |
Short-term debt from unrelated parties | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 1,149,988 | 1,205,294 | |
Cash Flow | (1,091,410) | (70,398) | |
Acquisitions (net of divestitures) | 4,093 | 14,611 | |
Foreign currency translation | (3,431) | 618 | |
Other | 3,710 | (137) | |
Balance at the end of period | 62,950 | 1,149,988 | |
Short-term debt from related parties | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 21,865 | 188,900 | |
Cash Flow | (5,469) | (167,111) | |
Other | (76) | 76 | |
Balance at the end of period | 16,320 | 21,865 | |
Long-term debt (excluding Accounts Receivable Facility) | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 7,525,987 | 6,115,890 | |
Cash Flow | 557,433 | 1,285,603 | |
Acquisitions (net of divestitures) | 22,644 | 22,815 | |
Foreign currency translation | (309,632) | 85,424 | |
Amortization of debt issuance costs | 10,466 | 15,147 | |
Other | 1,562 | 1,108 | |
Balance at the end of period | 7,808,460 | 7,525,987 | |
Accounts Receivable Facility | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 379,570 | ||
Cash Flow | (373,840) | 381,430 | |
Foreign currency translation | (6,385) | (2,435) | |
Amortization of debt issuance costs | 655 | 575 | |
Balance at the end of period | 379,570 | ||
Lease liabilities from unrelated parties | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 4,582,092 | 4,451,081 | |
Cash Flow | (683,614) | (671,403) | |
Acquisitions (net of divestitures) | (9,583) | 2,141 | |
Foreign currency translation | (349,656) | 81,817 | |
Other | 813,028 | 718,456 | |
Balance at the end of period | 4,352,267 | 4,582,092 | |
Lease liabilities from related parties | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 122,946 | 137,494 | |
Cash Flow | (20,185) | (16,340) | |
Foreign currency translation | (169) | 35 | |
Other | 37,428 | 1,757 | |
Balance at the end of period | € 140,020 | € 122,946 | |
Increase (decrease) due to application of IFRS 16 | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Lease liabilities from unrelated parties | 4,414,937 | ||
Lease liabilities from related parties | € 137,494 |
Segment and corporate informa_3
Segment and corporate information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment and corporate information | |||
Revenue from health care services | € 14,114,399 | € 13,872,219 | € 13,264,289 |
Revenue from health care products | 3,744,664 | 3,604,336 | 3,282,584 |
Revenue | 17,859,063 | 17,476,555 | 16,546,873 |
Operating income | 2,304,409 | 2,269,558 | 3,037,798 |
Interest | (368,019) | (429,444) | (301,062) |
Income before income taxes | 1,936,390 | 1,840,114 | 2,736,736 |
Depreciation and amortization | (1,586,869) | (1,553,408) | (724,847) |
Impairment loss | (199,030) | (39,752) | (64,719) |
Income (loss) from equity method investees | 94,518 | 73,679 | 73,346 |
Total assets | 31,689,036 | 32,934,735 | 26,242,268 |
thereof investments in equity method investees | 761,113 | 696,872 | 649,780 |
Additions of property, plant and equipment, intangible assets and right of use assets | 2,002,523 | 1,893,919 | 1,154,965 |
Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 13,810,589 | 13,623,319 | 13,043,277 |
Revenue from health care products | 3,639,995 | 3,478,817 | 3,189,516 |
Revenue | 17,450,584 | 17,102,136 | 16,232,793 |
Other revenue | |||
Segment and corporate information | |||
Revenue from health care services | 303,810 | 248,900 | 221,012 |
Revenue from health care products | 104,669 | 125,519 | 93,068 |
Revenue | 408,479 | 374,419 | 314,080 |
Segment Total | |||
Segment and corporate information | |||
Revenue | 17,819,419 | 17,456,414 | 16,532,137 |
Operating income | 2,718,488 | 2,613,667 | 3,396,674 |
Depreciation and amortization | (1,334,844) | (1,313,057) | (562,039) |
Impairment loss | (199,030) | (39,752) | (64,719) |
Income (loss) from equity method investees | 94,698 | 75,230 | 73,346 |
Total assets | 28,792,533 | 29,528,180 | 23,591,064 |
thereof investments in equity method investees | 761,113 | 696,872 | 649,780 |
Additions of property, plant and equipment, intangible assets and right of use assets | 1,606,869 | 1,536,985 | 838,818 |
Segment Total | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 13,786,173 | 13,623,319 | 13,043,277 |
Revenue from health care products | 3,624,767 | 3,458,676 | 3,174,780 |
Revenue | 17,410,940 | 17,081,995 | 16,218,057 |
Segment Total | Other revenue | |||
Segment and corporate information | |||
Revenue | 408,479 | 374,419 | 314,080 |
North America Segment | |||
Segment and corporate information | |||
Revenue | 12,478,420 | 12,195,173 | 11,569,732 |
Operating income | 2,119,737 | 1,794,101 | 2,665,187 |
Depreciation and amortization | (997,509) | (992,526) | (377,836) |
Impairment loss | (1,231) | (36,411) | |
Income (loss) from equity method investees | 87,493 | 75,941 | 75,279 |
Total assets | 21,358,156 | 21,700,202 | 16,936,646 |
thereof investments in equity method investees | 413,401 | 400,514 | 348,096 |
Additions of property, plant and equipment, intangible assets and right of use assets | 1,162,847 | 1,097,517 | 598,988 |
North America Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 11,060,231 | 10,907,934 | 10,503,816 |
Revenue from health care products | 1,094,828 | 1,023,462 | 844,147 |
Revenue | 12,155,059 | 11,931,396 | 11,347,963 |
North America Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 323,361 | 263,777 | 221,769 |
EMEA Segment | |||
Segment and corporate information | |||
Revenue | 2,762,588 | 2,693,473 | 2,586,558 |
Operating income | 411,674 | 448,062 | 398,683 |
Depreciation and amortization | (191,204) | (188,580) | (116,384) |
Impairment loss | (2,266) | (3,341) | (64,719) |
Income (loss) from equity method investees | 4,237 | (4,414) | (4,322) |
Total assets | 3,879,386 | 4,058,523 | 3,612,800 |
thereof investments in equity method investees | 215,650 | 171,704 | 178,886 |
Additions of property, plant and equipment, intangible assets and right of use assets | 249,401 | 212,282 | 158,974 |
EMEA Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 1,364,976 | 1,354,220 | 1,274,015 |
Revenue from health care products | 1,363,820 | 1,298,723 | 1,285,470 |
Revenue | 2,728,796 | 2,652,943 | 2,559,485 |
EMEA Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 33,792 | 40,530 | 27,073 |
Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | 1,894,178 | 1,858,770 | 1,689,353 |
Operating income | 343,632 | 328,996 | 303,956 |
Depreciation and amortization | (110,400) | (98,599) | (45,475) |
Impairment loss | (1,065) | ||
Income (loss) from equity method investees | 2,950 | 2,551 | 2,125 |
Total assets | 2,830,867 | 2,852,271 | 2,322,284 |
thereof investments in equity method investees | 105,661 | 99,815 | 98,741 |
Additions of property, plant and equipment, intangible assets and right of use assets | 143,939 | 190,591 | 53,962 |
Asia-Pacific Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 876,036 | 861,963 | 776,005 |
Revenue from health care products | 969,674 | 930,057 | 851,710 |
Revenue | 1,845,710 | 1,792,020 | 1,627,715 |
Asia-Pacific Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 48,468 | 66,750 | 61,638 |
Latin America Segment | |||
Segment and corporate information | |||
Revenue | 684,233 | 708,998 | 686,494 |
Operating income | (156,555) | 42,508 | 28,848 |
Depreciation and amortization | (35,731) | (33,352) | (22,344) |
Impairment loss | (194,468) | ||
Income (loss) from equity method investees | 18 | 1,152 | 264 |
Total assets | 724,124 | 917,184 | 719,334 |
thereof investments in equity method investees | 26,401 | 24,839 | 24,057 |
Additions of property, plant and equipment, intangible assets and right of use assets | 50,682 | 36,595 | 26,894 |
Latin America Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 484,930 | 499,202 | 489,441 |
Revenue from health care products | 196,445 | 206,434 | 193,453 |
Revenue | 681,375 | 705,636 | 682,894 |
Latin America Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 2,858 | 3,362 | 3,600 |
Corporate | |||
Segment and corporate information | |||
Revenue | 39,644 | 20,141 | 14,736 |
Operating income | (414,079) | (344,109) | (358,876) |
Depreciation and amortization | (252,025) | (240,351) | (162,808) |
Income (loss) from equity method investees | (180) | (1,551) | |
Total assets | 2,896,503 | 3,406,555 | 2,651,204 |
Additions of property, plant and equipment, intangible assets and right of use assets | 395,654 | 356,934 | 316,147 |
Corporate | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 24,416 | ||
Revenue from health care products | 15,228 | 20,141 | 14,736 |
Revenue | 39,644 | 20,141 | 14,736 |
Operating Segments | Segment Total | |||
Segment and corporate information | |||
Revenue | 17,854,648 | 17,460,922 | 16,534,923 |
Operating Segments | North America Segment | |||
Segment and corporate information | |||
Revenue | 12,507,173 | 12,198,240 | 11,571,341 |
Operating Segments | EMEA Segment | |||
Segment and corporate information | |||
Revenue | 2,768,521 | 2,694,159 | 2,586,862 |
Operating Segments | Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | 1,894,417 | 1,859,274 | 1,689,986 |
Operating Segments | Latin America Segment | |||
Segment and corporate information | |||
Revenue | 684,537 | 709,249 | 686,734 |
Operating Segments | Corporate | |||
Segment and corporate information | |||
Revenue | 4,415 | 15,633 | 11,950 |
Inter-segment | Segment Total | |||
Segment and corporate information | |||
Revenue | (35,229) | (4,508) | (2,786) |
Inter-segment | North America Segment | |||
Segment and corporate information | |||
Revenue | (28,753) | (3,067) | (1,609) |
Inter-segment | EMEA Segment | |||
Segment and corporate information | |||
Revenue | (5,933) | (686) | (304) |
Inter-segment | Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | (239) | (504) | (633) |
Inter-segment | Latin America Segment | |||
Segment and corporate information | |||
Revenue | (304) | (251) | (240) |
Inter-segment | Corporate | |||
Segment and corporate information | |||
Revenue | € 35,229 | € 4,508 | € 2,786 |
Segment and corporate informa_4
Segment and corporate information - Geographic Information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of geographic region | |||
Revenue external customers | € 17,859,063 | € 17,476,555 | € 16,546,873 |
Long-lived assets | 23,406,609 | 24,760,182 | 17,500,198 |
Germany | |||
Disclosure of geographic region | |||
Revenue external customers | 493,436 | 474,750 | 426,327 |
Long-lived assets | 1,202,528 | 1,311,786 | 948,355 |
North America | |||
Disclosure of geographic region | |||
Revenue external customers | 12,478,420 | 12,195,173 | 11,569,732 |
Long-lived assets | 17,878,746 | 19,112,827 | 13,260,913 |
Rest of the World | |||
Disclosure of geographic region | |||
Revenue external customers | 4,887,207 | 4,806,632 | 4,550,814 |
Long-lived assets | € 4,325,335 | € 4,335,569 | € 3,290,930 |
Subsequent events (Details)
Subsequent events (Details) - Feb. 15, 2021 - Redemption of bonds € in Thousands, $ in Thousands | USD ($) | EUR (€) |
FMC US Finance, Inc. 2011 | ||
Subsequent events | ||
Redemption of bonds | $ 650,000 | € 472,889 |
FMC Finance VII S.A. 2011 | ||
Subsequent events | ||
Redemption of bonds | € 300,000 |
Compensation of the Managemen_2
Compensation of the Management Board and the supervisory board - Compensation of the Management Board (Details) | Jan. 01, 2021USD ($) | Jan. 01, 2021EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€)Optionsshares | Dec. 31, 2020USD ($)EquityInstruments | Dec. 31, 2020EUR (€)OptionsEquityInstrumentsshares | Dec. 31, 2019EUR (€)OptionsEquityInstrumentsshares | Nov. 30, 2020USD ($) | Nov. 30, 2020EUR (€) | Jul. 31, 2019USD ($) | Jul. 31, 2019EUR (€) | Dec. 31, 2018Options |
Key management personnel | ||||||||||||
Number of stock options held | Options | 3,488,989 | 3,201,074 | 3,488,989 | 3,896,000 | ||||||||
MB LTIP 2020 | ||||||||||||
Key management personnel | ||||||||||||
Number of units or rights granted | EquityInstruments | 159.607 | 159.607 | ||||||||||
Share-based compensation | € 2,115,000 | |||||||||||
Number of performance shares held | shares | 159,607 | |||||||||||
MB LTIP 2019 | ||||||||||||
Key management personnel | ||||||||||||
Number of units or rights granted | EquityInstruments | 114,999 | |||||||||||
Share-based compensation | € 820,000 | € 656,000 | ||||||||||
Number of performance shares held | shares | 114,999 | 114,999 | 114,999 | |||||||||
Mr. Michael Brosnan | ||||||||||||
Key management personnel | ||||||||||||
Basic compensation | $ 850,000 | € 744,000 | ||||||||||
Bonus (in percentage) | 30.00% | 30.00% | ||||||||||
Amount paid for fringe benefits | $ 17,000 | € 15,000 | $ 257,000 | € 225,000 | ||||||||
Period for which compensation receivable related to non-competition covenant (in years) | 2 years | 2 years | ||||||||||
Amount paid for non-compete compensation | $ 553,000 | € 451,000 | ||||||||||
Future retirement pension | $ 405,000 | € 330,000 | ||||||||||
Mr. Dominik Wehner | ||||||||||||
Key management personnel | ||||||||||||
Basic compensation | € 425,000 | |||||||||||
Bonus (in percentage) | 30.00% | 30.00% | ||||||||||
Amount paid for fringe benefits | € 35,000 | |||||||||||
Mr. Ronald Kuerbitz | ||||||||||||
Key management personnel | ||||||||||||
Amount paid for non-compete compensation | 0 | € 90,000 | ||||||||||
Advisory fee | 0 | 167,000 | ||||||||||
Future retirement pension | $ 146,000 | 119,000 | ||||||||||
Roberto Fuste | ||||||||||||
Key management personnel | ||||||||||||
Amount paid for pensions | 274,000 | 274,000 | ||||||||||
Prof. Emanuele Gatti | ||||||||||||
Key management personnel | ||||||||||||
Amount paid for pensions | 355,000 | 355,000 | ||||||||||
Dr. Ben Lipps | ||||||||||||
Key management personnel | ||||||||||||
Advisory fee | 568,000 | |||||||||||
One-off payment for remaining term of agreement | 1,129,000 | |||||||||||
Former members | ||||||||||||
Key management personnel | ||||||||||||
Total | 629,000 | 2,984,000 | ||||||||||
Pension obligation | € 37,373,000 | € 36,587,000 | € 37,373,000 | |||||||||
Management Board | ||||||||||||
Key management personnel | ||||||||||||
Period for which compensation receivable related to non-competition covenant (in years) | 2 years | 2 years | ||||||||||
Management Board | MB LTIP 2020 | ||||||||||||
Key management personnel | ||||||||||||
Number of performance shares held | shares | 159,607 | |||||||||||
Management Board | MB LTIP 2019 | ||||||||||||
Key management personnel | ||||||||||||
Number of performance shares held | shares | 102,435 | 102,435 | 102,435 | |||||||||
Management Board | 2011 Phantom stock awards | ||||||||||||
Key management personnel | ||||||||||||
Number of phantom shares held | shares | 23,336 | 23,336 | ||||||||||
General Partner | MB LTIP 2020 | ||||||||||||
Key management personnel | ||||||||||||
Number of units or rights granted | EquityInstruments | 159,607 | 159,607 | ||||||||||
General Partner | MB LTIP 2020 | EUR | ||||||||||||
Key management personnel | ||||||||||||
Fair value of the performance shares granted | € 61.27 | |||||||||||
General Partner | MB LTIP 2020 | USD | ||||||||||||
Key management personnel | ||||||||||||
Fair value of the performance shares granted | $ 72.17 | € 61.94 | ||||||||||
General Partner | MB LTIP 2019 | ||||||||||||
Key management personnel | ||||||||||||
Number of units or rights granted | EquityInstruments | 114,999 | |||||||||||
General Partner | MB LTIP 2019 | EUR | ||||||||||||
Key management personnel | ||||||||||||
Fair value of the performance shares granted | € 60.58 | € 60.58 | € 62.10 | |||||||||
General Partner | MB LTIP 2019 | USD | ||||||||||||
Key management personnel | ||||||||||||
Fair value of the performance shares granted | $ 69.71 | € 6,269 | ||||||||||
General Partner | Management Board | ||||||||||||
Key management personnel | ||||||||||||
Total | € 27,853,000 | 24,773,000 | ||||||||||
Non-performance-related compensation | 9,942,000 | 7,122,000 | ||||||||||
Short-term performance related compensation | 8,069,000 | 7,869,000 | ||||||||||
Long term incentive effects | € 9,842,000 | 9,782,000 | ||||||||||
Share-based compensation | € 2,623,000 | |||||||||||
Number of stock options held | Options | 452,989 | 465,308 | 452,989 | |||||||||
Pension obligation | € 24,252,000 | € 28,334,000 | € 24,252,000 | |||||||||
Amount appropriated to the pension reserves | 4,082,000 | € 6,751,000 | ||||||||||
Loans and advances for future compensation | € 0 | |||||||||||
General Partner | Management Board | Performance shares | ||||||||||||
Key management personnel | ||||||||||||
Number of performance shares held | shares | 314,313 | 397,515 | 314,313 | |||||||||
General Partner | Management Board | 2011 Phantom stock awards | ||||||||||||
Key management personnel | ||||||||||||
Number of phantom shares held | shares | 23,336 | 0 | 23,336 |
Compensation of the Managemen_3
Compensation of the Management Board and the supervisory board - Compensation of the Supervisory Board (Details) - Members of Supervisory Board | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | |
Key management personnel | |||
Total | € 669,000 | € 626,000 | |
Fixed compensation | 463,000 | 439,000 | |
Compensation to committees | 206,000 | 187,000 | |
Variable performance-related compensation | 0 | 0 | |
Attendance fees | $ 3,500 | 2,900 | |
General Partner | |||
Key management personnel | |||
Total | 943,000 | 937,000 | |
Fixed compensation | 425,000 | 432,000 | |
Compensation to committees | 518,000 | 505,000 | |
Variable performance-related compensation | € 0 | € 0 |
Principal accountant fees and_3
Principal accountant fees and services (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
PwC | |||
Disclosure of geographic region | |||
Audit fees | € 9,386 | ||
Audit-related fees | 510 | ||
Tax fees | 951 | ||
Other fees | 5,236 | ||
KPMG | |||
Disclosure of geographic region | |||
Audit fees | 455 | € 10,113 | € 7,845 |
Audit-related fees | 87 | 615 | 320 |
Tax fees | 310 | 318 | 1,069 |
Other fees | 42 | 41 | 251 |
Germany | PwC | |||
Disclosure of geographic region | |||
Audit fees | 1,608 | ||
Audit-related fees | 394 | ||
Tax fees | 54 | ||
Other fees | 5,236 | ||
Germany | KPMG | |||
Disclosure of geographic region | |||
Audit fees | 1,665 | 1,322 | |
Audit-related fees | € 45 | € 525 | 316 |
Tax fees | 115 | ||
Other fees | € 234 |