Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2022 | |
Document and Entity Information | |
Document Type | 6-K |
Entity Registrant Name | FRESENIUS MEDICAL CARE AG & Co. KGaA |
Entity Central Index Key | 0001333141 |
Document Period End Date | Mar. 31, 2022 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Consolidated statements of inco
Consolidated statements of income - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||
Health care services | € 3,606,807 | € 3,325,459 |
Health care products | 941,562 | 884,666 |
Revenue | 4,548,369 | 4,210,125 |
Costs of revenue: | ||
Health care services | 2,816,229 | 2,568,382 |
Health care products | 474,045 | 435,086 |
Costs of revenue | 3,290,274 | 3,003,468 |
Gross profit | 1,258,095 | 1,206,657 |
Operating (income) expenses: | ||
Selling, general and administrative | 871,241 | 711,515 |
Research and development | 49,673 | 48,645 |
Income from equity method investees | (10,487) | (27,756) |
Operating income | 347,668 | 474,253 |
Other (income) expense: | ||
Interest income | (14,112) | (15,256) |
Interest expense | 83,209 | 91,328 |
Income before income taxes | 278,571 | 398,181 |
Income tax expense | 66,765 | 93,847 |
Net income | 211,806 | 304,334 |
Net income attributable to noncontrolling interests | 54,445 | 55,388 |
Net income attributable to shareholders of FMC-AG & Co. KGaA | € 157,361 | € 248,946 |
Basic earnings per share | € 0.54 | € 0.85 |
Diluted earnings per share | € 0.54 | € 0.85 |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Consolidated statements of comprehensive income | ||
Net income | € 211,806 | € 304,334 |
Components that will not be reclassified to profit or loss: | ||
Equity method investees - share of OCI | (12,460) | (7,432) |
FVOCI equity investments | 8,667 | 5,856 |
Actuarial gain (loss) on defined benefit pension plans | 143,186 | 54,302 |
Income tax (expense) benefit related to components of other comprehensive income not reclassified | (43,040) | (16,956) |
Total | 96,353 | 35,770 |
Components that may be reclassified subsequently to profit or loss: | ||
Gain (loss) related to foreign currency translation | 285,337 | 545,796 |
FVOCI debt securities | (18,989) | (9,925) |
Gain (loss) related to cash flow hedges | 1,600 | (1,766) |
Cost of hedging | 767 | 84 |
Income tax (expense) benefit related to components of other comprehensive income that may be reclassified | 2,688 | 2,118 |
Total | 271,403 | 536,307 |
Other comprehensive income (loss), net of tax | 367,756 | 572,077 |
Total comprehensive income | 579,562 | 876,411 |
Comprehensive income attributable to noncontrolling interests | 79,467 | 103,981 |
Comprehensive income (loss) attributable to shareholders of FMC-AG & Co. KGaA | € 500,095 | € 772,430 |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | € 1,173,342 | € 1,481,655 |
Trade accounts and other receivables from unrelated parties | 3,707,487 | 3,409,061 |
Accounts receivable from related parties | 183,331 | 162,361 |
Inventories | 2,136,961 | 2,038,014 |
Other current assets | 838,272 | 876,151 |
Total current assets | 8,039,393 | 7,967,242 |
Property, plant and equipment | 4,236,189 | 4,235,027 |
Right-of-use assets | 4,274,265 | 4,316,440 |
Intangible assets | 1,480,421 | 1,459,393 |
Goodwill | 14,628,709 | 14,361,577 |
Deferred taxes | 299,415 | 315,360 |
Investment in equity method investees | 798,947 | 786,905 |
Other non-current assets | 966,787 | 924,614 |
Total non-current assets | 26,684,733 | 26,399,316 |
Total assets | 34,724,126 | 34,366,558 |
Liabilities | ||
Accounts payable to unrelated parties | 790,236 | 736,069 |
Accounts payable to related parties | 70,032 | 121,457 |
Current provisions and other current liabilities | 3,515,830 | 3,676,875 |
Short-term debt from unrelated parties | 969,715 | 1,178,353 |
Short-term debt from related parties | 145,500 | 77,500 |
Current portion of long-term debt | 58,724 | 667,966 |
Current portion of lease liabilities from unrelated parties | 649,871 | 639,947 |
Current portion of lease liabilities from related parties | 22,364 | 21,631 |
Income tax liabilities | 155,180 | 137,836 |
Total current liabilities | 6,377,452 | 7,257,634 |
Long-term debt, less current portion | 7,451,786 | 6,646,949 |
Lease liabilities from unrelated parties, less current portion | 3,951,297 | 3,990,153 |
Lease liabilities from related parties, less current portion | 94,115 | 97,650 |
Non-current provisions and other non-current liabilities | 721,015 | 707,563 |
Pension liabilities | 654,074 | 782,622 |
Income tax liabilities | 38,715 | 36,498 |
Deferred taxes | 896,380 | 868,452 |
Total non-current liabilities | 13,807,382 | 13,129,887 |
Total liabilities | 20,184,834 | 20,387,521 |
Shareholders' equity: | ||
Ordinary shares, no par value, 1.00 nominal value, 362,370,124 shares authorized, 293,027,279 issued and outstanding as of March 31, 2022 (December 31, 2021: 293,004,339) | 293,027 | 293,004 |
Additional paid-in capital | 2,891,737 | 2,891,276 |
Retained earnings | 11,027,178 | 10,826,140 |
Accumulated other comprehensive income (loss) | (977,445) | (1,311,637) |
Total FMC-AG & Co. KGaA shareholders' equity | 13,234,497 | 12,698,783 |
Noncontrolling interests | 1,304,795 | 1,280,254 |
Total equity | 14,539,292 | 13,979,037 |
Total liabilities and equity | € 34,724,126 | € 34,366,558 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - € / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Consolidated balance sheets | ||
Nominal value per share | € 1 | € 1 |
Shares authorized | 362,370,124 | 362,370,124 |
Shares issued | 293,027,279 | 293,004,339 |
Shares outstanding | 293,027,279 | 293,004,339 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net income | € 211,806 | € 304,334 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and impairment loss | 418,957 | 388,202 |
Change in deferred taxes, net | (9,295) | (6,054) |
(Gain) loss from the sale of fixed assets, right-of-use assets, investments and divestitures | (3,636) | (8,024) |
Income from equity method investees | (10,487) | (27,756) |
Interest expense, net | 69,097 | 76,072 |
Changes in assets and liabilities, net of amounts from businesses acquired: | ||
Trade accounts and other receivables from unrelated parties | (232,854) | (476,560) |
Inventories | (62,058) | (41,423) |
Other current and non-current assets | 57,848 | 170,572 |
Accounts receivable from related parties | (17,641) | (3,964) |
Accounts payable to related parties | (53,197) | 6,237 |
Accounts payable to unrelated parties, provisions and other current and non-current liabilities | (161,688) | (111,529) |
Income tax liabilities | 61,891 | 67,610 |
Received dividends from investments in equity method investees | 297 | 1,075 |
Paid interest | (79,484) | (104,607) |
Received interest | 13,442 | 15,256 |
Paid income taxes | (44,301) | (41,793) |
Net cash provided by (used in) operating activities | 158,697 | 207,648 |
Investing activities | ||
Purchases of property, plant and equipment and capitalized development costs | (162,086) | (184,301) |
Acquisitions, net of cash acquired, investments and purchases of intangible assets | (36,227) | (106,489) |
Investments in debt securities | (42,665) | (10,739) |
Proceeds from sale of property, plant and equipment | 2,232 | 5,376 |
Proceeds from divestitures | 13,961 | 1,841 |
Proceeds from sale of debt securities | 13,469 | 70,259 |
Net cash provided by (used in) investing activities | (211,316) | (224,053) |
Financing activities | ||
Proceeds from short-term debt from unrelated parties | 112,262 | 1,070,531 |
Repayments of short-term debt from unrelated parties | (324,342) | (8,593) |
Proceeds from short-term debt from related parties | 68,000 | |
Repayments of short-term debt from related parties | (2,606) | |
Proceeds from long-term debt | 233,362 | 9,693 |
Repayments of long-term debt | (640,088) | (888,215) |
Repayments of lease liabilities from unrelated parties | (175,294) | (164,249) |
Repayments of lease liabilities from related parties | (5,544) | (5,144) |
Increase (decrease) of accounts receivable facility | 520,202 | 12,450 |
Proceeds from exercise of stock options | 792 | 575 |
Distributions to noncontrolling interests | (66,410) | (69,523) |
Contributions from noncontrolling interests | 10,419 | 9,166 |
Net cash provided by (used in) financing activities | (266,641) | (35,915) |
Effect of exchange rate changes on cash and cash equivalents | 10,947 | 44,259 |
Cash and cash equivalents: | ||
Net increase (decrease) in cash and cash equivalents | (308,313) | (8,061) |
Cash and cash equivalents at beginning of period | 1,481,655 | 1,081,539 |
Cash and cash equivalents at end of period | € 1,173,342 | € 1,073,478 |
Consolidated statements of shar
Consolidated statements of shareholders' equity - EUR (€) € in Thousands | Total FMC-AG & Co. KGaA shareholders' equity | Ordinary Shares | Additional paid in capital | Retained earnings | Foreign currency translation | Cash flow hedges | Pensions | Fair value changes | Noncontrolling Interests | Total |
Balance at beginning 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 beginning of period (in shares) at Dec. 31, 2020 | 292,876,570 | |||||||||
Proceeds from exercise of options and related tax effects | 442 | € 11 | 431 | 442 | ||||||
Proceeds from exercise of options and related tax effects (in shares) | 11,575 | |||||||||
Purchase/ sale of noncontrolling interests | 13,976 | 13,976 | 28,545 | 42,521 | ||||||
Contributions from/ to noncontrolling interests | (47,175) | (47,175) | ||||||||
Put option liabilities | (3,853) | (3,853) | (3,853) | |||||||
Net Income | 248,946 | 248,946 | 55,388 | 304,334 | ||||||
Other comprehensive income (loss) related to: | ||||||||||
Foreign currency translation | 497,203 | 504,179 | (380) | (6,498) | (98) | 48,593 | 545,796 | |||
Cash flow hedges, net of related tax effects | (1,195) | (1,195) | (1,195) | |||||||
Pensions, net of related tax effects | 38,877 | 38,877 | 38,877 | |||||||
Fair value changes | (11,401) | (11,401) | (11,401) | |||||||
Comprehensive income | 772,430 | 103,981 | 876,411 | |||||||
Balance at end of period at Mar. 31, 2021 | 11,998,075 | € 292,888 | 2,887,037 | 10,500,006 | (1,432,534) | (9,281) | (313,903) | 73,862 | 1,201,581 | 13,199,656 |
Balance at end of period (in shares) at Mar. 31, 2021 | 292,888,145 | |||||||||
Balance at beginning of period at Dec. 31, 2021 | 12,698,783 | € 293,004 | 2,891,276 | 10,826,140 | (982,506) | (9,115) | (369,998) | 49,982 | 1,280,254 | € 13,979,037 |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 293,004,339 | 293,004,339 | ||||||||
Proceeds from exercise of options and related tax effects | 1,174 | € 23 | 1,151 | € 1,174 | ||||||
Proceeds from exercise of options and related tax effects (in shares) | 22,940 | |||||||||
Purchase/ sale of noncontrolling interests | (690) | (690) | 497 | (193) | ||||||
Contributions from/ to noncontrolling interests | (55,423) | (55,423) | ||||||||
Put option liabilities | 35,135 | 35,135 | 35,135 | |||||||
Transfer of cumulative gains/losses of equity investments | 8,542 | (8,542) | ||||||||
Net Income | 157,361 | 157,361 | 54,445 | 211,806 | ||||||
Other comprehensive income (loss) related to: | ||||||||||
Foreign currency translation | 260,315 | 263,402 | (170) | (3,161) | 244 | 25,022 | 285,337 | |||
Cash flow hedges, net of related tax effects | 1,683 | 1,683 | 1,683 | |||||||
Pensions, net of related tax effects | 100,271 | 100,271 | 100,271 | |||||||
Fair value changes | (19,535) | (19,535) | (19,535) | |||||||
Comprehensive income | 500,095 | 79,467 | 579,562 | |||||||
Balance at end of period at Mar. 31, 2022 | € 13,234,497 | € 293,027 | € 2,891,737 | € 11,027,178 | € (719,104) | € (7,602) | € (272,888) | € 22,149 | € 1,304,795 | € 14,539,292 |
Balance at end of period (in shares) at Mar. 31, 2022 | 293,027,279 | 293,027,279 |
The Company and basis of presen
The Company and basis of presentation | 3 Months Ended |
Mar. 31, 2022 | |
The Company and basis of presentation | |
The Company and basis of presentation | 1. The Company and basis of presentation The Company Fresenius Medical Care AG & Co. KGaA (“FMC-AG & Co. KGaA” or the “Company”), a German partnership limited by shares (Kommanditgesellschaft auf Aktien) registered in the commercial registry of Hof an der Saale under HRB 4019, with its business address at Else-Kröner-Str. 1, 61352 Bad Homburg v. d. Höhe, is the world’s 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 services to persons who suffer from End-Stage Kidney Disease (“ESKD”), as well as other health care services. The Company also develops, manufactures and distributes a wide variety of health care products. The Company’s health care products include hemodialysis machines, peritoneal dialysis cyclers, dialyzers, peritoneal dialysis solutions, hemodialysis concentrates, solutions and granulates, bloodlines, renal pharmaceuticals, systems for water treatment, and 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’s other health care services include value and risk-based care programs, pharmacy services, vascular, cardiovascular and endovascular specialty services as well as ambulatory surgery center services, physician nephrology and cardiology services and ambulant treatment services. In these unaudited notes, “FMC-AG & Co. KGaA,” the “Company” or the “Group” refers to Fresenius Medical Care AG & Co. KGaA or Fresenius Medical Care AG & Co. KGaA 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 and reportable segments, see note 11. Basis of presentation The consolidated financial statements and other financial information included in the Company’s quarterly reports furnished under cover of Form 6-K and its Annual Report on Form 20-F are prepared solely in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), using the euro as the Company’s reporting and functional currency. The quarterly financial report is prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, and contains condensed financial statements, in that it does not include all of the notes that would be required in a complete set of financial statements, but rather selected explanatory notes. However, the primary financial statements are presented in the format consistent with the consolidated financial statements as presented in the Company’s Annual Report on Form 20-F for the year ended December 31, 2021 (the “2021 Form 20-F”) in accordance with IAS 1, Presentation of Financial Statements. During the first quarter of 2022, the Company adopted an accounting policy, specifically in relation to emission certificates which are recognized as intangible assets with an infinite useful life and initially measured at cost. The consolidated financial statements at March 31, 2022 and for the three-months ended March 31, 2022 and 2021 contained in this report are unaudited and should be read in conjunction with the consolidated financial statements contained in the Company’s 2021 Form 20-F. The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments are of a normal recurring nature. The Company applies IAS 29, Financial Reporting in Hyperinflationary Economies (“IAS 29”), in its Argentine and Lebanese subsidiaries due to inflation in these countries. Going forward, the Company will apply IAS 29 to its operations in Turkey, beginning in the second quarter of 2022. The Company expects that the loss on net monetary position related to its business in Turkey during the second quarter of 2022 will be immaterial. The table below details the specific inputs used to calculate the loss on net monetary position on a country-specific basis for the three months ended March 31, 2022. 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 March 31, 2022 676.1 1,019.8 Calendar year increase 16% 11% Loss on net monetary position in € THOUS 11,380 475 The effective tax rates of 24.0% and 23.6% for the three months ended March 31, 2022 and 2021, respectively, are recognized on the basis of the best estimate made for the weighted average annual income tax rate expected for the full year and applied to income before income taxes reported in the interim financial statements. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results of operations for the year ending December 31, 2022. At the end of February 2022, Russia invaded Ukraine, triggering sanctions by various countries against Russia. The resulting uncertainties created volatility in capital markets and led to inflationary pressure, especially as it relates to certain raw material and energy costs. As of March 31, 2022, the Company’s assets in Russia and Ukraine totaled less than 1% of the Company’s total assets. The Company assessed the impacts on its operations and determined them not to be material at this point in time, but continues to monitor the situation. On March 21, the Company announced that it had entered into an agreement to create a company that combines Fresenius Health Partners, Inc., the value-based care division of Fresenius Medical Care North America, with InterWell Health LLC, a physician organization driving innovation in the kidney care space in the U.S., and Cricket Health, Inc., a U.S. provider of value-based kidney care with a patient engagement and data platform. The business combination brings together Fresenius Health Partners’ expertise in kidney care value-based contracting and performance, InterWell Health’s clinical care models and network of 1,600 nephrologists and Cricket Health’s tech-enabled care model that utilizes its proprietary informatics, StageSmart™ and patient engagement platforms to create an entity targeting the management of care for more than 270,000 people with kidney disease by 2025 and to manage around $11 billion (€10 billion) in medical costs in the same year. The closing of the transaction is subject to regulatory review and, if successful, the new entity will be consolidated into the Company’s operating results. On May 4, 2022, the Management Board authorized the issuance of the Company’s unaudited consolidated financial statements. New accounting pronouncements Recently implemented accounting pronouncements The Company has prepared its consolidated financial statements at and for the three months ended March 31, 2022 in conformity with IFRS that have to be applied for the interim periods starting on or after January 1, 2022. In the three months ended March 31, 2022, there were no recently implemented accounting pronouncements that had a material effect on the Company’s consolidated financial statements. Recent accounting pronouncements not yet adopted The IASB issued the following new standard which is relevant for the Company: IFRS 17, Insurance Contracts In May 2017, the IASB issued IFRS 17, Insurance Contracts. In June 2020 and December 2021, further amendments were published. 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. In the Company’s view, no other pronouncements issued by the IASB are expected to have a material impact on the consolidated financial statements. |
Notes to the consolidated state
Notes to the consolidated statements of income | 3 Months Ended |
Mar. 31, 2022 | |
Notes to the consolidated statements of income | |
Notes to the consolidated statements of income | 2. Notes to the consolidated statements of income a) Revenue The Company has recognized the following revenue in the consolidated statements of income for the three months ended March 31, 2022 and 2021: Revenue in € THOUS For the three months ended March 31, 2022 2021 Revenue from Revenue from contracts with Other contracts with Other customers revenue Total customers revenue Total Health care services 3,492,515 114,292 3,606,807 3,233,136 92,323 3,325,459 Health care products 911,982 29,580 941,562 849,620 35,046 884,666 Total 4,404,497 143,872 4,548,369 4,082,756 127,369 4,210,125 b) Research and development expenses Research and development expenses of €49,673 for the three months ended March 31, 2022 (for the three months ended March 31, 2021: €48,645) included research and non-capitalizable development costs as well as depreciation and amortization expenses related to capitalized development costs of €2,066 (for the three months ended March 31, 2021: €1,302). c) Earnings per share The following table contains reconciliations of the numerators and denominators of the basic and diluted earnings per share computations for the three months ended March 31, 2022 and 2021: Reconciliation of basic and diluted earnings per share in € THOUS, except share and per share data For the three months ended March 31, 2022 2021 Numerator: Net income attributable to shareholders of FMC-AG & Co. KGaA 157,361 248,946 Denominators: Weighted average number of shares outstanding 293,007,109 292,878,085 Potentially dilutive shares 71,206 131,477 Basic earnings per share 0.54 0.85 Diluted earnings per share 0.54 0.85 d) Impacts of severe acute respiratory syndrome coronavirus 2 (“COVID-19”) The Company provides life-sustaining dialysis treatments and other critical health care services and products to patients. The Company’s patients need regular and frequent dialysis treatments, or else they face significant adverse health consequences that could result in 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, to 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, partially 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 health care providers and patients. The Company recorded €18,191 and €7,228 for the three months ended March 31, 2022 and March 31, 2021, respectively, within the statement of profit and loss for government grants in various regions in which it operates. 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. The remaining amount of U.S. government grants received recorded in deferred income was $46,078 (€41,079) and $62,176 (€54,897) at March 31, 2022 and December 31, 2021, respectively. The Company also recorded a contract liability for advance payments received under the Center for Medicare and Medicaid (“CMS”) Accelerated and Advance Payment program which is currently recorded within current provisions and other current liabilities. Contract liabilities related to the CMS Accelerated and Advance Payment program were $251,904 (€226,920) and $442,568 (€390,754) as of March 31, 2022 and December 31, 2021, respectively. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related party transactions | |
Related party transactions | 3. Related party transactions Fresenius SE is the Company’s largest shareholder and owns 32.2% of the Company’s outstanding shares at March 31, 2022. 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 “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. 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 also 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. 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 CMS Comprehensive End-Stage Renal Disease (“ESRD”) Care Model, the Company and participating physicians formed entities known as ESRD Seamless Care Organizations (“ESCOs”) as part of a payment and care delivery model that seeks to deliver better health outcomes for Medicare ESKD patients while lowering CMS’s costs. The Company entered into participation/service agreements with these ESCOs, which are accounted for as equity method investees. Below is a summary, including the Company’s receivables from and payables to the indicated parties, resulting from the above described transactions with related parties. Service agreements and products with related parties in € THOUS For the three months ended For the three months ended March 31, 2022 March 31, 2021 March 31, 2022 December 31, 2021 Sales of Purchases of Sales of Purchases of goods and goods and goods and goods and Accounts Accounts Accounts Accounts services services services services receivable payable receivable payable Service agreements (1) Fresenius SE 26 12,752 34 8,286 15 3,821 — 6,707 Fresenius SE affiliates 967 24,057 979 24,016 730 6,514 1,544 8,041 Equity method investees 25,174 — 10,229 — 158,297 — 131,661 — Total 26,167 36,809 11,242 32,302 159,042 10,335 133,205 14,748 Products Fresenius SE affiliates 14,546 9,121 11,632 7,867 14,600 5,807 13,487 6,000 Equity method investees — 86,622 — 106,002 — 47,199 — 76,444 Total 14,546 95,743 11,632 113,869 14,600 53,006 13,487 82,444 (1) In addition to the above shown accounts payable, accrued expenses for service agreements with related parties amounted to € 16,535 and € 12,911 at March 31, 2022 and December 31, 2021, respectively. b) Lease agreements In addition to the above-mentioned product and service agreements, the Company is a party to real estate lease agreements with 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 For the three months ended March 31, 2022 For the three months ended March 31, 2021 March 31, 2022 December 31, 2021 Interest Lease Interest Lease Right-of-use Lease Right-of-use Lease Depreciation expense expense (1) Depreciation expense expense (1) asset liability asset liability Fresenius SE 1,957 135 370 1,979 170 345 46,837 48,876 48,794 50,997 Fresenius SE affiliates 3,625 95 — 3,280 290 37 67,208 67,603 68,181 68,284 Total 5,582 230 370 5,259 460 382 114,045 116,479 116,975 119,281 (1) Short-term leases and expenses relating to variable lease payments as well as low value leases are exempted from balance sheet recognition. c) Financing The Company receives short-term financing from and provides short-term financing to Fresenius SE. The Company also utilizes Fresenius SE’s cash management system for the settlement of certain intercompany receivables and payables with its subsidiaries and other related parties. As of March 31, 2022 and December 31, 2021, the Company had accounts receivable from Fresenius SE related to short-term financing in the amount of €4,468 and €14,900, respectively. 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 and November 28, 2013, the Company borrowed €1,500 and €1,500, respectively, from the General Partner. The loan repayments were extended periodically and combined into a single borrowing during 2022. The loan repayment is currently due on April 21, 2027 with an interest rate of 1.3348%. At March 31, 2022 and December 31, 2021, the Company borrowed from Fresenius SE in the amount of €142,500 at an interest rate of 0.6% and €74,500 on an unsecured basis at an interest rate of 0.6%, respectively. For further information on this loan agreement, see note 5. d) Key management personnel Due to the Company’s legal form of a German partnership limited by shares, the General Partner holds a key management position within the Company. In addition, as key management personnel, members of the Management Board and the Supervisory Board, as well as their close relatives, are considered related parties. The Company’s Articles of Association provide that the General Partner shall be reimbursed for any and all expenses in connection with management of the Company’s business, including remuneration of the members of the General Partner’s supervisory board and the members of the Management Board. The aggregate amount reimbursed to the General Partner was €8,178 and €8,783 for its management services during the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and December 31, 2021, the Company had accounts receivable from the General Partner in the amount of €5,221 and €769, respectively. As of March 31, 2022 and December 31, 2021, the Company had accounts payable to the General Partner in the amount of €6,691 and €24,265, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Inventories | 4 . Inventories At March 31, 2022 and December 31, 2021, inventories consisted of the following: Inventories in € THOUS March 31, December 31, 2022 2021 Finished goods 1,294,189 1,233,197 Health care supplies 459,215 452,073 Raw materials and purchased components 264,614 247,478 Work in process 118,943 105,266 Inventories 2,136,961 2,038,014 |
Short-term debt
Short-term debt | 3 Months Ended |
Mar. 31, 2022 | |
Short-term debt. | |
Short-term debt | 5 . Short-term debt At March 31, 2022 and December 31, 2021, short-term debt consisted of the following: Short-term debt in € THOUS March 31, December 31, 2022 2021 Commercial paper program 555,687 715,153 Borrowings under lines of credit 413,946 463,091 Other 82 109 Short-term debt from unrelated parties 969,715 1,178,353 Short-term debt from related parties (see note 3 c) 145,500 77,500 Short-term debt 1,115,215 1,255,853 The Company and certain consolidated entities operate a multi-currency notional cash pooling management system. In this cash pooling management system, amounts in euro and other currencies are offset without being transferred to a specific cash pool account. The system is used for an efficient utilization of funds within the Company. The Company met the conditions to offset balances within this cash pool for reporting purposes. At March 31, 2022 and December 31, 2021, cash and borrowings under lines of credit in the amount of €102,132 and €116,538, respectively, were offset under this cash pooling management system. Before this offset, cash and cash equivalents as of March 31, 2022 was €1,275,474 (December 31, 2021: €1,598,193) and short-term debt from unrelated parties was €1,071,847 (December 31, 2021: €1,294,891). Commercial paper program The Company maintains a commercial paper program under which short-term notes of up to €1,500,000 can be issued. At March 31, 2022, the outstanding commercial paper amounted to €555,500 (December 31, 2021: €715,000). Short-term debt from related parties The Company and FMCH are parties to an unsecured loan agreement, as borrowers, with Fresenius SE, as lender, under which the Company and FMCH 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 3 c). |
Long-term debt
Long-term debt | 3 Months Ended |
Mar. 31, 2022 | |
Long-term debts | |
Long-term debt | 6. Long-term debt As of March 31, 2022 and December 31, 2021, long-term debt consisted of the following: Long-term debt in € THOUS March 31, December 31, 2022 2021 Schuldschein loans 224,561 — Bonds 6,514,611 7,071,259 Accounts Receivable Facility 525,231 — Other 246,107 243,656 Long-term debt 7,510,510 7,314,915 Less current portion (58,724) (667,966) Long-term debt, less current portion 7,451,786 6,646,949 Schuldschein loans On February 14, 2022, the Company issued €25,000 and €200,000 tranches of Schuldschein loans with maturities of 5 and 7 years, respectively, at variable interest rates. The proceeds were used for general corporate purposes including refinancing of existing liabilities. Bonds The bonds issued by Fresenius Medical Care US Finance II, Inc. in the amount of $700,000 (€532,522 as of the date of issuance on January 26, 2012) were redeemed at maturity on January 31, 2022. Accounts Receivable Facility On August 11, 2021, the Company amended and restated its accounts receivable securitization program (“Accounts Receivable Facility”), extending it until August 11, 2024. The maximum capacity, $900,000 (€768,049 at August 11, 2021), remains unchanged under the restated Accounts Receivable Facility. The following table shows the available and outstanding amounts under the Accounts Receivable Facility at March 31, 2022 and December 31, 2021: Accounts Receivable Facility - maximum amount available and balance outstanding in THOUS Maximum amount available Balance outstanding March 31, 2022 (1) March 31, 2022 (2) Accounts Receivable Facility $ 900,000 € 810,738 $ 583,500 € 525,628 Maximum amount available Balance outstanding December 31, 2021 (1) December 31, 2021 (2) Accounts Receivable Facility $ 900,000 € 794,632 $ — € — (1) Subject to availability of sufficient accounts receivable meeting funding criteria. (2) Amounts shown are excluding debt issuance costs. The Company also had letters of credit outstanding under the Accounts Receivable Facility in the amount of $12,532 and $12,532 (€11,289 and €11,065) at March 31, 2022 and December 31, 2021, respectively. These letters of credit are not included above as part of the balance outstanding at March 31, 2022 and December 31, 2021. However, the letters reduce available borrowings under the Accounts Receivable Facility. Credit facilities The Company entered into a €2,000,000 sustainability-linked syndicated revolving credit facility (“Syndicated Credit Facility”) in July 2021 which serves as a back-up line for general corporate purposes. As of March 31, 2022, the Syndicated Credit Facility was undrawn. |
Capital management
Capital management | 3 Months Ended |
Mar. 31, 2022 | |
Capital management | |
Capital management | 7. Capital management As of March 31, 2022 and December 31, 2021 total equity in percent of total assets was 41.9% and 40.7%, respectively, and debt and lease liabilities in percent of total assets was 38.4% and 38.8%, respectively. The Company’s financing structure and business model are reflected in the investment grade ratings. The Company is rated investment grade by Standard & Poor’s, Moody’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. |
Share-based plans
Share-based plans | 3 Months Ended |
Mar. 31, 2022 | |
Share-based plans | |
Share-based plans | 8. Share-based plans On March 1, 2022, 212,715 performance shares with a total fair value of €11,182 were allocated under the Management Board Long Term Incentive Plan 2020 to the members of the Management Board and to senior members of the Company’s managerial staff who serve on the Company’s Executive Committee (“Executive Committee”). Of this number, 153,072 performance shares with a total fair value of €8,058 relate to members of the Management Board and 59,643 performance shares with a total fair value of €3,124 relate to members of the Executive Committee. These amounts will be amortized over the three-year vesting period. The weighted average fair value per performance share at the allocation date was €52.57. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and contingencies | |
Commitments and contingencies | 9. 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 is not probable 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 U.S. Foreign Corrupt Practices Act (“FCPA”) 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 (“SEC Order”) 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 and SEC Order are both scheduled to terminate on December 31, 2022. In 2019, 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 in part to COVID-19 pandemic restrictions, the monitorship program faced certain delays, but the Company is working to complete all its obligations under the resolution with the DOJ and SEC 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. Personal injury and related litigation involving FMCH’s acid concentrate product, labeled as Granuflo® or Naturalyte®, first arose in 2012. FMCH’s insurers agreed to the settlement in 2017 of 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 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. The relator thereafter served the complaint and proceeded on his own in part by filing an amended complaint making broad allegations about financial relationships between FMCH and nephrologists. FMCH’s motion to dismiss the amended complaint remains pending. On October 5, 2021, the District Court for Maryland granted FMCH’s motion to transfer the case to the United States District Court for Massachusetts, where the litigation continues. Flanagan v. Fresenius Medical Care Holdings, Inc., 1:21-cv-11627. 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 August 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 has cooperated 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 District Court unsealed the complaint, allowing the relator to proceed on its own. On August 3, 2021, the District Court granted FMCH’s motion to dismiss the relator’s amended complaint, dismissed the case with prejudice and declined to allow further amendment. On August 27, 2021, the relator appealed to the United States Court of Appeals for the Second Circuit. 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 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 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 3), 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, “first complaint”). 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, “second complaint”) 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. In relation to the remaining pending cases and the defendant Teva, trial took place for the first complaint between January 19 and 22, 2021. Another patent newly listed in the Orange Book was added to the second complaint on June 23, 2021. Trial is scheduled for the second complaint for June 2022. 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. (“DaVita”) 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 cooperated 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 its position) and litigation is continuing. 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 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. In February 2022, the Company received a formal request for information from the Hessen Data Protection Authority (“ Hessischer Beauftragter für Datenschutz und Informationsfreiheit On March 20 and April 12, 2022, respectively, an attorney employed as general counsel for the Company’s North American division from 2013 to 2016 filed a complaint with the Occupational Safety and Health Administration (“OSHA”) under the Sarbanes-Oxley Act of 2002 and other anti-retaliation statutes, and a civil lawsuit in Suffolk County, Massachusetts seeking compensation for personnel management decisions allegedly adverse to him. OSHA Case No. 1-076-22-049; Kott v. National Medical Care, Inc., Case No. 22-802 (Superior Court, Suffolk County, Mass.). The plaintiff alleges in support of his demands for compensation that he was transferred to a subordinate position in the global legal department, and subsequently terminated from employment as part of the FME 25 reorganization, in retaliation for legal advice he provided with respect to a licensing agreement with DaVita relating to pharmaceutical operations and products. The DaVita licensing agreement expired by its terms in 2017. As previously disclosed in the Company’s financial statements, the United States Department of Justice has reviewed multiple aspects of the DaVita contract in question, including those relevant to the plaintiff’s allegations. No enforcement action has resulted against the Company. Other bases of retaliation alleged by the plaintiff implicate internal personnel and privacy protection concerns that do not impact ongoing operations, and on which the Company does not comment. On April 21, 2022, the U.S. FDA recommended that FMCH temporarily pause shipping of new dialysis machines in the United States. FMCH has accepted the recommendation and will not resume shipping before notifying the FDA. The temporary pause implicates a machine component that was already scheduled to be replaced later in 2022. The FDA’s recommendation was made in the course of implementing a bio-compatibility risk assessment process recently recommended by the FDA, and voluntarily initiated by FMCH, that allows the FDA and medical device manufacturers to explore previously unknown or unaddressed bio-compatibility risks for which there is otherwise no reporting requirement before administrative actions, if any, are deemed appropriate or necessary. In light of the already-scheduled component replacement and the availability of excess machine capacity resulting from the COVID-19 pandemic, the Company does not expect the temporary shipping pause to have a material financial impact. 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.The Company 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 completed remediation efforts with respect to one pending FDA warning letter and is awaiting confirmation as to whether the letter is now closed. 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 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 widespread, global 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 personal data or when the Company or its business associates neglect to implement the required administrative, technical and physical safeguards of its electronic systems and devices, or a data breach that results in impermissible use, access or disclosure of personal identifying information of its employees, patients and beneficiaries. On those occasions, the Company must comply with applicable breach notification requirements. The Company relies upon its management structure, regulatory and legal resources, and the effective operation of its compliance program to direct, manage and monitor the activities of its employees. On occasion, the Company may identify instances where employees or other agents deliberately, recklessly or inadvertently contravene the Company’s policies or violate applicable law. The actions of such persons may subject the Company and its subsidiaries to liability under the Anti-Kickback Statute, the Stark Law, the False Claims Act, Data Protection Laws, the Health Information Technology for Economic and Clinical Health Act and the Foreign Corrupt Practices Act, among other laws and comparable state laws or laws of other countries. Physicians, hospitals and other participants in the health care industry are also subject to a large number of lawsuits alleging professional negligence, malpractice, product liability, worker’s compensation or related claims, many of which involve large claims and significant defense costs. The Company has been and is currently subject to these suits due to the nature of its business and expects that those types of lawsuits may continue. Although the Company maintains insurance at a level which it believes to be prudent, it cannot assure that the coverage limits will be adequate or that insurance will cover all asserted claims. A successful claim against the Company or any of its subsidiaries in excess of insurance coverage could have a material adverse effect upon it and the results of its operations. Any claims, regardless of their merit or eventual outcome, could have a material adverse effect on the Company’s reputation and business. The Company has also had claims asserted against it and has had lawsuits filed against it relating to alleged patent infringements or businesses that it has acquired or divested. These claims and suits relate both to operation of the businesses and to the acquisition and divestiture transactions. The Company has, when appropriate, asserted its own claims, and claims for indemnification. A successful claim against the Company or any of its subsidiaries could have a material adverse effect upon its business, financial condition, and the results of its operations. Any claims, regardless of their merit or eventual outcome, could have a material adverse effect on the Company’s reputation and business. In Germany, the tax audits for the years 2006 through 2009 have been substantially completed. The German tax authorities have indicated a re-qualification of dividends received in connection with intercompany mandatorily redeemable preferred shares into fully taxable interest payments for these and subsequent years until 2013. The Company has defended its position and will avail itself of appropriate remedies. The Company is also subject to ongoing and future tax audits in the U.S., Germany and other jurisdictions in the ordinary course of business. Tax authorities routinely pursue adjustments to the Company’s tax returns and disallowances of claimed tax deductions. When appropriate, the Company defends these adjustments and disallowances and asserts its own claims. A successful tax related claim against the Company or any of its subsidiaries could have a material adverse effect upon its business, financial condition and results of operations. Other than those individual contingent liabilities mentioned above, the current estimated amount of the Company’s other known individual contingent liabilities is immaterial. |
Financial instruments
Financial instruments | 3 Months Ended |
Mar. 31, 2022 | |
Financial instruments | |
Financial instruments | 10. Financial instruments The following tables show the carrying amounts and fair values of the Company’s financial instruments at March 31, 2022 and December 31, 2021: Carrying amount and fair value of financial instruments in € THOUS March 31, 2022 Carrying amount Fair value Amortized Not cost FVPL FVOCI classified Total Level 1 Level 2 Level 3 Cash and cash equivalents 989,802 183,540 — — 1,173,342 183,540 — — Trade accounts and other receivables from unrelated parties 3,625,538 — — 81,949 3,707,487 — — — Accounts receivable from related parties 183,331 — — — 183,331 — — — Derivatives - cash flow hedging instruments — — — 2,662 2,662 — 2,662 — Derivatives - not designated as hedging instruments — 2,963 — — 2,963 — 2,963 — Equity investments — 178,394 65,563 — 243,957 122,201 70,400 51,356 Debt securities — 96,319 344,034 — 440,353 436,045 4,308 — Other financial assets (1) 142,899 — — 132,070 274,969 — — — Other current and non-current assets 142,899 277,676 409,597 134,732 964,904 — — — Financial assets 4,941,570 461,216 409,597 216,681 6,029,064 — — — Accounts payable to unrelated parties 790,236 — — — 790,236 — — — Accounts payable to related parties 70,032 — — — 70,032 — — — Short-term debt 1,115,215 — — — 1,115,215 — — — Long-term debt 7,510,510 — — — 7,510,510 6,273,843 996,295 — Lease liabilities — — — 4,717,647 4,717,647 — — — Derivatives - cash flow hedging instruments — — — 4,372 4,372 — 4,372 — Derivatives - not designated as hedging instruments — 40,919 — — 40,919 — 40,919 — Variable payments outstanding for acquisitions — 46,181 — — 46,181 — — 46,181 Put option liabilities — — — 976,131 976,131 — — 976,131 Other financial liabilities (2) 999,322 — — — 999,322 — — — Other current and non-current liabilities 999,322 87,100 — 980,503 2,066,925 — — — Financial liabilities 10,485,315 87,100 — 5,698,150 16,270,565 — — — Carrying amount and fair value of financial instruments in € THOUS December 31, 2021 Carrying amount Fair value Amortized Not cost FVPL FVOCI classified Total Level 1 Level 2 Level 3 Cash and cash equivalents 989,257 492,398 — — 1,481,655 492,398 — — Trade accounts and other receivables from unrelated parties 3,328,720 — — 80,341 3,409,061 — — — Accounts receivable from related parties 162,361 — — — 162,361 — — — Derivatives - cash flow hedging instruments — — — 579 579 — 579 — Derivatives - not designated as hedging instruments — 2,846 — — 2,846 — 2,846 — Equity investments — 174,884 69,595 — 244,479 121,643 72,157 50,679 Debt securities — 95,417 327,078 — 422,495 418,196 4,299 — Other financial assets (1) 137,358 — — 130,859 268,217 — — — Other current and non-current assets 137,358 273,147 396,673 131,438 938,616 — — — Financial assets 4,617,696 765,545 396,673 211,779 5,991,693 — — — Accounts payable to unrelated parties 736,069 — — — 736,069 — — — Accounts payable to related parties 121,457 — — — 121,457 — — — Short-term debt 1,255,853 — — — 1,255,853 — — — Long-term debt 7,314,915 — — — 7,314,915 7,246,019 243,656 — Lease liabilities — — — 4,749,381 4,749,381 — — — Derivatives - cash flow hedging instruments — — — 4,490 4,490 — 4,490 — Derivatives - not designated as hedging instruments — 21,428 — — 21,428 — 21,428 — Variable payments outstanding for acquisitions — 47,690 — — 47,690 — — 47,690 Put option liabilities — — — 992,423 992,423 — — 992,423 Other financial liabilities (2) 965,663 — — — 965,663 — — — Other current and non-current liabilities 965,663 69,118 — 996,913 2,031,694 — — — Financial liabilities 10,393,957 69,118 — 5,746,294 16,209,369 — — — (1) As of March 31, 2022 and December 31, 2021, other financial assets primarily include lease receivables, deposits, guarantees, securities, vendor and supplier rebates as well as notes receivable. (2) As of March 31, 2022 and December 31, 2021, other financial liabilities primarily include receivable credit balances and goods and services received. 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 for similar instruments in active markets. Level 2 is defined as using valuation models (i.e. mark-to-model) with input factors that are inputs other than quoted prices in active markets that are directly or indirectly observable. Level 3 is defined as using valuation models (i.e. mark-to-model) with input factors that are 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. This includes cash and cash equivalents measured at amortized costs, trade accounts and other receivables from unrelated parties, accounts receivable from related parties, other financial assets as well as accounts payable to unrelated parties, accounts payable to related parties, short-term debt and other financial liabilities. Transfers between levels of the fair value hierarchy have not occurred as of March 31, 2022. At September 30, 2021, the Company transferred its investment in Humacyte, Inc. (“Humacyte”) with a carrying amount of €158,551 from Level 3 to Level 1, after Humacyte completed its merger with Alpha Healthcare Acquisition Corporation, a special purpose acquisition company. The shares in Alpha Healthcare Acquisition Corporation (now called Humacyte) received by the Company as a result of this merger and in a contemporaneous private placement are quoted in an active market, and Humacyte has registered the Company’s shares for resale under the Securities Act of 1933. No additional transfers between levels of the fair value hierarchy have occurred as of December 31, 2021. The Company accounts for transfers at the end of the reporting period. Derivative financial instruments In order to manage the risk of currency exchange rate and interest rate fluctuations, the Company enters into various hedging transactions by means of derivative instruments with highly rated financial institutions. The Company primarily enters into foreign exchange forward contracts and interest rate swaps. 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. 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 principal 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 fair value through profit or loss (“FVPL”). The risk of changes in fair value is insignificant. Equity investments are not held for trading. At initial recognition the Company elected, on an instrument-by-instrument basis, to represent subsequent changes in the fair value of individual strategic investments in OCI. If equity instruments are quoted in an active market, the fair value is based on price quotations at the period-end-date. From time to time the Company engages external valuation firms to determine the fair value of Level 3 equity investments. The external valuation uses a discounted cash flow model, which includes significant unobservable inputs such as investment specific forecasted financial statements and weighted average cost of capital, that reflects current market assessments as well as a terminal growth rate. The majority of the debt securities are held within a business model whose objective is achieving both contractual cash flows and selling 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 fair value through other comprehensive income (“FVOCI”). The smaller part of debt securities does not give rise to cash flows that are solely payments of principal 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 €73,808 is then compared to the total liabilities and the shareholder’s equity of the Company. This analysis shows that an increase of 10% in the relevant earnings would have an effect of less than 1% on the total liabilities and less than 1% on the shareholder’s equity of the Company. Following is a roll forward of Level 3 financial instruments at March 31, 2022 and December 31, 2021: Reconciliation from beginning to ending balance of level 3 financial instruments in € THOUS 2022 2021 Variable Variable payments payments outstanding outstanding Equity for Put option Equity for Put option investments acquisitions liabilities investments acquisitions liabilities Beginning balance at January 1, 50,679 47,690 992,423 188,518 66,359 882,422 Transfer to level 1 — — — (158,551) — — Increase — 6,321 7,511 21,137 9,488 112,194 Decrease — (3,761) (5,635) — (22,499) (18,495) Gain / loss recognized in profit or loss (1) (347) (4,947) — (12,975) (6,716) — Gain / loss recognized in equity — — (36,983) — — (54,019) Foreign currency translation and other changes 1,024 878 18,815 12,550 1,058 70,321 Ending balance at March 31, and December 31, 51,356 46,181 976,131 50,679 47,690 992,423 (1) Includes realized and unrealized gains / losses. |
Segment and corporate informati
Segment and corporate information | 3 Months Ended |
Mar. 31, 2022 | |
Segment and corporate information | |
Segment and corporate information | 11. Segment and corporate information The Company’s operating and reportable 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 ESKD 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 and operating income. 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 and IT 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 team as well as its Global Medical Office, which seek to optimize medical treatments and clinical processes within the Company, are also centrally managed. These corporate activities (“Corporate”) do not fulfill the definition of a segment according to IFRS 8, Operating Segments. In addition, certain revenues, investments and intangible assets, as well as any related expenses, are not allocated to a segment but are accounted for as Corporate. Information pertaining to the Company’s segment and Corporate activities for the three months ended March 31, 2022 and 2021 is set forth below: Segment and corporate information in € THOUS North Latin America EMEA Asia-Pacific America Total Segment Segment Segment Segment Segment Corporate (1) Total Three months ended March 31, 2022 Revenue from health care services 2,774,332 344,423 235,873 129,859 3,484,487 8,028 3,492,515 Revenue from health care products 277,533 322,661 254,005 52,948 907,147 4,835 911,982 Revenue from contracts with customers 3,051,865 667,084 489,878 182,807 4,391,634 12,863 4,404,497 Other revenue external customers 118,746 7,192 17,255 679 143,872 — 143,872 Revenue external customers 3,170,611 674,276 507,133 183,486 4,535,506 12,863 4,548,369 Inter-segment revenue 3,993 — 64 1,151 5,208 (5,208) — Revenue 3,174,604 674,276 507,197 184,637 4,540,714 7,655 4,548,369 Operating income 303,943 61,269 98,848 11,137 475,197 (127,529) 347,668 Interest (69,097) Income before income taxes 278,571 Depreciation and amortization (260,438) (46,928) (27,048) (10,894) (345,308) (68,858) (414,166) Impairment loss (3,394) (500) (42) — (3,936) (855) (4,791) Income (loss) from equity method investees 16,163 (6,235) 220 339 10,487 — 10,487 Total assets 22,986,219 3,863,261 3,013,462 861,510 30,724,452 3,999,674 34,724,126 thereof investment in equity method investees 488,067 182,179 103,097 25,604 798,947 — 798,947 Additions of property, plant and equipment, intangible assets and right of use assets 159,998 39,065 21,102 8,048 228,213 50,847 279,060 Three months ended March 31, 2021 Revenue from health care services 2,550,966 332,461 227,813 114,679 3,225,919 7,217 3,233,136 Revenue from health care products 251,804 319,011 230,748 43,785 845,348 4,272 849,620 Revenue from contracts with customers 2,802,770 651,472 458,561 158,464 4,071,267 11,489 4,082,756 Other revenue external customers 96,059 18,134 12,625 551 127,369 — 127,369 Revenue external customers 2,898,829 669,606 471,186 159,015 4,198,636 11,489 4,210,125 Inter-segment revenue 11,175 — 56 — 11,231 (11,231) — Revenue 2,910,004 669,606 471,242 159,015 4,209,867 258 4,210,125 Operating income 398,503 79,890 85,296 6,640 570,329 (96,076) 474,253 Interest (76,072) Income before income taxes 398,181 Depreciation and amortization (239,783) (50,344) (25,662) (8,941) (324,730) (63,176) (387,906) Impairment loss (296) — — — (296) — (296) Income (loss) from equity method investees 27,391 (406) 726 45 27,756 — 27,756 Total assets 21,947,496 3,840,853 2,838,318 737,386 29,364,053 3,794,486 33,158,539 thereof investment in equity method investees 390,805 206,985 103,171 25,634 726,595 — 726,595 Additions of property, plant and equipment, intangible assets and right of use assets 220,534 48,576 20,790 12,744 302,644 57,625 360,269 (1) Includes inter - segment consolidation adjustments . |
Events occurring after the bala
Events occurring after the balance sheet date | 3 Months Ended |
Mar. 31, 2022 | |
Events occurring after the balance sheet date | |
Events occurring after the balance sheet date | 12. Events occurring after the balance sheet date No significant activities have taken place subsequent to the balance sheet date March 31, 2022 that have a material impact on the key figures and earnings presented. On May 3, 2022, the Company announced that the Chief Executive Officer and Chairman of the Management Board, Rice Powell, will be succeeded by Dr. Carla Kriwet effective January 1, 2023. In accordance with the Company’s age limit for Management Board members, Rice Powell is stepping down from his position when his contract ends on December 31, 2022, after 10 years of heading the Company. Dr. Carla Kriwet will also become a member of the management board of Fresenius Management SE. Additionally, Helen Giza, Chief Financial Officer and member of the Management Board, has entered a new five-year contract and, in addition to her current positions as Chief Financial Officer and Chief Transformation Officer of Management AG, will assume the position of Deputy Chief Executive Officer of Management AG. Except for as described above, there are no additional significant changes in the Company’s structure, management, legal form or personnel. |
The Company and basis of pres_2
The Company and basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
The Company and basis of presentation | |
Accounting policies and methods of computation followed in interim financial statements | The consolidated financial statements and other financial information included in the Company’s quarterly reports furnished under cover of Form 6-K and its Annual Report on Form 20-F are prepared solely in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), using the euro as the Company’s reporting and functional currency. The quarterly financial report is prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, and contains condensed financial statements, in that it does not include all of the notes that would be required in a complete set of financial statements, but rather selected explanatory notes. However, the primary financial statements are presented in the format consistent with the consolidated financial statements as presented in the Company’s Annual Report on Form 20-F for the year ended December 31, 2021 (the “2021 Form 20-F”) in accordance with IAS 1, Presentation of Financial Statements. During the first quarter of 2022, the Company adopted an accounting policy, specifically in relation to emission certificates which are recognized as intangible assets with an infinite useful life and initially measured at cost. |
New accounting pronouncements | New accounting pronouncements Recently implemented accounting pronouncements The Company has prepared its consolidated financial statements at and for the three months ended March 31, 2022 in conformity with IFRS that have to be applied for the interim periods starting on or after January 1, 2022. In the three months ended March 31, 2022, there were no recently implemented accounting pronouncements that had a material effect on the Company’s consolidated financial statements. Recent accounting pronouncements not yet adopted The IASB issued the following new standard which is relevant for the Company: IFRS 17, Insurance Contracts In May 2017, the IASB issued IFRS 17, Insurance Contracts. In June 2020 and December 2021, further amendments were published. 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. 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 and basis of pres_3
The Company and basis of presentation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
The Company and basis of presentation | |
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 March 31, 2022 676.1 1,019.8 Calendar year increase 16% 11% Loss on net monetary position in € THOUS 11,380 475 |
Notes to the consolidated sta_2
Notes to the consolidated statements of income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes to the consolidated statements of income | |
Schedule of revenue | Revenue in € THOUS For the three months ended March 31, 2022 2021 Revenue from Revenue from contracts with Other contracts with Other customers revenue Total customers revenue Total Health care services 3,492,515 114,292 3,606,807 3,233,136 92,323 3,325,459 Health care products 911,982 29,580 941,562 849,620 35,046 884,666 Total 4,404,497 143,872 4,548,369 4,082,756 127,369 4,210,125 |
Schedule of reconciliation of basic and diluted earnings per share | Reconciliation of basic and diluted earnings per share in € THOUS, except share and per share data For the three months ended March 31, 2022 2021 Numerator: Net income attributable to shareholders of FMC-AG & Co. KGaA 157,361 248,946 Denominators: Weighted average number of shares outstanding 293,007,109 292,878,085 Potentially dilutive shares 71,206 131,477 Basic earnings per share 0.54 0.85 Diluted earnings per share 0.54 0.85 |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related party transactions | |
Schedule of service agreements and products with related parties | Service agreements and products with related parties in € THOUS For the three months ended For the three months ended March 31, 2022 March 31, 2021 March 31, 2022 December 31, 2021 Sales of Purchases of Sales of Purchases of goods and goods and goods and goods and Accounts Accounts Accounts Accounts services services services services receivable payable receivable payable Service agreements (1) Fresenius SE 26 12,752 34 8,286 15 3,821 — 6,707 Fresenius SE affiliates 967 24,057 979 24,016 730 6,514 1,544 8,041 Equity method investees 25,174 — 10,229 — 158,297 — 131,661 — Total 26,167 36,809 11,242 32,302 159,042 10,335 133,205 14,748 Products Fresenius SE affiliates 14,546 9,121 11,632 7,867 14,600 5,807 13,487 6,000 Equity method investees — 86,622 — 106,002 — 47,199 — 76,444 Total 14,546 95,743 11,632 113,869 14,600 53,006 13,487 82,444 (1) In addition to the above shown accounts payable, accrued expenses for service agreements with related parties amounted to € 16,535 and € 12,911 at March 31, 2022 and December 31, 2021, respectively. |
Schedule of lease agreements with related parties | Lease agreements with related parties in € THOUS For the three months ended March 31, 2022 For the three months ended March 31, 2021 March 31, 2022 December 31, 2021 Interest Lease Interest Lease Right-of-use Lease Right-of-use Lease Depreciation expense expense (1) Depreciation expense expense (1) asset liability asset liability Fresenius SE 1,957 135 370 1,979 170 345 46,837 48,876 48,794 50,997 Fresenius SE affiliates 3,625 95 — 3,280 290 37 67,208 67,603 68,181 68,284 Total 5,582 230 370 5,259 460 382 114,045 116,479 116,975 119,281 (1) Short-term leases and expenses relating to variable lease payments as well as low value leases are exempted from balance sheet recognition. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Schedule of inventories | Inventories in € THOUS March 31, December 31, 2022 2021 Finished goods 1,294,189 1,233,197 Health care supplies 459,215 452,073 Raw materials and purchased components 264,614 247,478 Work in process 118,943 105,266 Inventories 2,136,961 2,038,014 |
Short-term debt (Tables)
Short-term debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Short-term debt. | |
Schedule of short-term debt | Short-term debt in € THOUS March 31, December 31, 2022 2021 Commercial paper program 555,687 715,153 Borrowings under lines of credit 413,946 463,091 Other 82 109 Short-term debt from unrelated parties 969,715 1,178,353 Short-term debt from related parties (see note 3 c) 145,500 77,500 Short-term debt 1,115,215 1,255,853 |
Long-term debt (Tables)
Long-term debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Long-term debts | |
Schedule of long-term debt | As of March 31, 2022 and December 31, 2021, long-term debt consisted of the following: Long-term debt in € THOUS March 31, December 31, 2022 2021 Schuldschein loans 224,561 — Bonds 6,514,611 7,071,259 Accounts Receivable Facility 525,231 — Other 246,107 243,656 Long-term debt 7,510,510 7,314,915 Less current portion (58,724) (667,966) Long-term debt, less current portion 7,451,786 6,646,949 |
Schedule of accounts receivable facility | The following table shows the available and outstanding amounts under the Accounts Receivable Facility at March 31, 2022 and December 31, 2021: Accounts Receivable Facility - maximum amount available and balance outstanding in THOUS Maximum amount available Balance outstanding March 31, 2022 (1) March 31, 2022 (2) Accounts Receivable Facility $ 900,000 € 810,738 $ 583,500 € 525,628 Maximum amount available Balance outstanding December 31, 2021 (1) December 31, 2021 (2) Accounts Receivable Facility $ 900,000 € 794,632 $ — € — (1) Subject to availability of sufficient accounts receivable meeting funding criteria. (2) Amounts shown are excluding debt issuance costs. |
Capital management (Tables)
Capital management (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Capital management | |
Schedule of Company's rating | Rating (1) Standard & Poor´s Moody´s Fitch Corporate credit rating BBB Baa3 BBB- Outlook stable stable stable (1) A rating is not a recommendation to buy, sell or hold securities of the Company, and may be subject to suspension, change or withdrawal at any time by the assigning rating agency. |
Financial instruments (Tables)
Financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Financial instruments | |
Schedule of carrying amount and fair value of financial instruments | The following tables show the carrying amounts and fair values of the Company’s financial instruments at March 31, 2022 and December 31, 2021: Carrying amount and fair value of financial instruments in € THOUS March 31, 2022 Carrying amount Fair value Amortized Not cost FVPL FVOCI classified Total Level 1 Level 2 Level 3 Cash and cash equivalents 989,802 183,540 — — 1,173,342 183,540 — — Trade accounts and other receivables from unrelated parties 3,625,538 — — 81,949 3,707,487 — — — Accounts receivable from related parties 183,331 — — — 183,331 — — — Derivatives - cash flow hedging instruments — — — 2,662 2,662 — 2,662 — Derivatives - not designated as hedging instruments — 2,963 — — 2,963 — 2,963 — Equity investments — 178,394 65,563 — 243,957 122,201 70,400 51,356 Debt securities — 96,319 344,034 — 440,353 436,045 4,308 — Other financial assets (1) 142,899 — — 132,070 274,969 — — — Other current and non-current assets 142,899 277,676 409,597 134,732 964,904 — — — Financial assets 4,941,570 461,216 409,597 216,681 6,029,064 — — — Accounts payable to unrelated parties 790,236 — — — 790,236 — — — Accounts payable to related parties 70,032 — — — 70,032 — — — Short-term debt 1,115,215 — — — 1,115,215 — — — Long-term debt 7,510,510 — — — 7,510,510 6,273,843 996,295 — Lease liabilities — — — 4,717,647 4,717,647 — — — Derivatives - cash flow hedging instruments — — — 4,372 4,372 — 4,372 — Derivatives - not designated as hedging instruments — 40,919 — — 40,919 — 40,919 — Variable payments outstanding for acquisitions — 46,181 — — 46,181 — — 46,181 Put option liabilities — — — 976,131 976,131 — — 976,131 Other financial liabilities (2) 999,322 — — — 999,322 — — — Other current and non-current liabilities 999,322 87,100 — 980,503 2,066,925 — — — Financial liabilities 10,485,315 87,100 — 5,698,150 16,270,565 — — — Carrying amount and fair value of financial instruments in € THOUS December 31, 2021 Carrying amount Fair value Amortized Not cost FVPL FVOCI classified Total Level 1 Level 2 Level 3 Cash and cash equivalents 989,257 492,398 — — 1,481,655 492,398 — — Trade accounts and other receivables from unrelated parties 3,328,720 — — 80,341 3,409,061 — — — Accounts receivable from related parties 162,361 — — — 162,361 — — — Derivatives - cash flow hedging instruments — — — 579 579 — 579 — Derivatives - not designated as hedging instruments — 2,846 — — 2,846 — 2,846 — Equity investments — 174,884 69,595 — 244,479 121,643 72,157 50,679 Debt securities — 95,417 327,078 — 422,495 418,196 4,299 — Other financial assets (1) 137,358 — — 130,859 268,217 — — — Other current and non-current assets 137,358 273,147 396,673 131,438 938,616 — — — Financial assets 4,617,696 765,545 396,673 211,779 5,991,693 — — — Accounts payable to unrelated parties 736,069 — — — 736,069 — — — Accounts payable to related parties 121,457 — — — 121,457 — — — Short-term debt 1,255,853 — — — 1,255,853 — — — Long-term debt 7,314,915 — — — 7,314,915 7,246,019 243,656 — Lease liabilities — — — 4,749,381 4,749,381 — — — Derivatives - cash flow hedging instruments — — — 4,490 4,490 — 4,490 — Derivatives - not designated as hedging instruments — 21,428 — — 21,428 — 21,428 — Variable payments outstanding for acquisitions — 47,690 — — 47,690 — — 47,690 Put option liabilities — — — 992,423 992,423 — — 992,423 Other financial liabilities (2) 965,663 — — — 965,663 — — — Other current and non-current liabilities 965,663 69,118 — 996,913 2,031,694 — — — Financial liabilities 10,393,957 69,118 — 5,746,294 16,209,369 — — — (1) As of March 31, 2022 and December 31, 2021, other financial assets primarily include lease receivables, deposits, guarantees, securities, vendor and supplier rebates as well as notes receivable. (2) As of March 31, 2022 and December 31, 2021, other financial liabilities primarily include receivable credit balances and goods and services received. |
Schedule of reconciliation of level 3 financial instruments | Reconciliation from beginning to ending balance of level 3 financial instruments in € THOUS 2022 2021 Variable Variable payments payments outstanding outstanding Equity for Put option Equity for Put option investments acquisitions liabilities investments acquisitions liabilities Beginning balance at January 1, 50,679 47,690 992,423 188,518 66,359 882,422 Transfer to level 1 — — — (158,551) — — Increase — 6,321 7,511 21,137 9,488 112,194 Decrease — (3,761) (5,635) — (22,499) (18,495) Gain / loss recognized in profit or loss (1) (347) (4,947) — (12,975) (6,716) — Gain / loss recognized in equity — — (36,983) — — (54,019) Foreign currency translation and other changes 1,024 878 18,815 12,550 1,058 70,321 Ending balance at March 31, and December 31, 51,356 46,181 976,131 50,679 47,690 992,423 (1) Includes realized and unrealized gains / losses. |
Segment and corporate informa_2
Segment and corporate information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment and corporate information | |
Schedule of segment and corporate information | Segment and corporate information in € THOUS North Latin America EMEA Asia-Pacific America Total Segment Segment Segment Segment Segment Corporate (1) Total Three months ended March 31, 2022 Revenue from health care services 2,774,332 344,423 235,873 129,859 3,484,487 8,028 3,492,515 Revenue from health care products 277,533 322,661 254,005 52,948 907,147 4,835 911,982 Revenue from contracts with customers 3,051,865 667,084 489,878 182,807 4,391,634 12,863 4,404,497 Other revenue external customers 118,746 7,192 17,255 679 143,872 — 143,872 Revenue external customers 3,170,611 674,276 507,133 183,486 4,535,506 12,863 4,548,369 Inter-segment revenue 3,993 — 64 1,151 5,208 (5,208) — Revenue 3,174,604 674,276 507,197 184,637 4,540,714 7,655 4,548,369 Operating income 303,943 61,269 98,848 11,137 475,197 (127,529) 347,668 Interest (69,097) Income before income taxes 278,571 Depreciation and amortization (260,438) (46,928) (27,048) (10,894) (345,308) (68,858) (414,166) Impairment loss (3,394) (500) (42) — (3,936) (855) (4,791) Income (loss) from equity method investees 16,163 (6,235) 220 339 10,487 — 10,487 Total assets 22,986,219 3,863,261 3,013,462 861,510 30,724,452 3,999,674 34,724,126 thereof investment in equity method investees 488,067 182,179 103,097 25,604 798,947 — 798,947 Additions of property, plant and equipment, intangible assets and right of use assets 159,998 39,065 21,102 8,048 228,213 50,847 279,060 Three months ended March 31, 2021 Revenue from health care services 2,550,966 332,461 227,813 114,679 3,225,919 7,217 3,233,136 Revenue from health care products 251,804 319,011 230,748 43,785 845,348 4,272 849,620 Revenue from contracts with customers 2,802,770 651,472 458,561 158,464 4,071,267 11,489 4,082,756 Other revenue external customers 96,059 18,134 12,625 551 127,369 — 127,369 Revenue external customers 2,898,829 669,606 471,186 159,015 4,198,636 11,489 4,210,125 Inter-segment revenue 11,175 — 56 — 11,231 (11,231) — Revenue 2,910,004 669,606 471,242 159,015 4,209,867 258 4,210,125 Operating income 398,503 79,890 85,296 6,640 570,329 (96,076) 474,253 Interest (76,072) Income before income taxes 398,181 Depreciation and amortization (239,783) (50,344) (25,662) (8,941) (324,730) (63,176) (387,906) Impairment loss (296) — — — (296) — (296) Income (loss) from equity method investees 27,391 (406) 726 45 27,756 — 27,756 Total assets 21,947,496 3,840,853 2,838,318 737,386 29,364,053 3,794,486 33,158,539 thereof investment in equity method investees 390,805 206,985 103,171 25,634 726,595 — 726,595 Additions of property, plant and equipment, intangible assets and right of use assets 220,534 48,576 20,790 12,744 302,644 57,625 360,269 (1) Includes inter - segment consolidation adjustments . |
The Company and basis of pres_4
The Company and basis of presentation (Details) € in Thousands, $ in Billions | Mar. 21, 2022person | Mar. 31, 2022EUR (€) | Mar. 31, 2021 | Dec. 31, 2025EUR (€)person | Dec. 31, 2025USD ($)person |
The Company and basis of presentation | |||||
Effective tax rate (as a percent) | 24.00% | 23.60% | |||
Company that combines Fresenius Health Partners Inc., InterWell Health LLC and Cricket Health Inc. | Forecast | |||||
The Company and basis of presentation | |||||
Number of people with kidney decease managed | person | 270,000 | 270,000 | |||
Medical costs managed | € 10,000,000 | $ 11 | |||
InterWell Health LLC | |||||
The Company and basis of presentation | |||||
Number of nephrologists | person | 1,600 | ||||
Argentina | |||||
The Company and basis of presentation | |||||
Index at March 31, 2022 | 676.1 | ||||
Calendar year increase | 16.00% | ||||
Loss on net monetary position in EUR | € | € 11,380 | ||||
Lebanon | |||||
The Company and basis of presentation | |||||
Index at March 31, 2022 | 1,019.8 | ||||
Calendar year increase | 11.00% | ||||
Loss on net monetary position in EUR | € | € 475 | ||||
Russia and Ukraine | Maximum | |||||
The Company and basis of presentation | |||||
Percentage of entity's assets | 1.00% |
Notes to the consolidated sta_3
Notes to the consolidated statements of income - Revenue (Details) - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Health care services | € 3,606,807 | € 3,325,459 |
Health care products | 941,562 | 884,666 |
Revenue | 4,548,369 | 4,210,125 |
Revenue from contracts with customers | ||
Revenue | ||
Health care services | 3,492,515 | 3,233,136 |
Health care products | 911,982 | 849,620 |
Revenue | 4,404,497 | 4,082,756 |
Other revenue | ||
Revenue | ||
Health care services | 114,292 | 92,323 |
Health care products | 29,580 | 35,046 |
Revenue | € 143,872 | € 127,369 |
Notes to the consolidated sta_4
Notes to the consolidated statements of income - Research and development expenses (Details) - EUR (€) € in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Detailed information on intangible assets | ||
Research and development expense | € 49,673 | € 48,645 |
Depreciation and amortisation expense | 414,166 | 387,906 |
Capitalized development costs | ||
Detailed information on intangible assets | ||
Depreciation and amortisation expense | € 2,066 | € 1,302 |
Notes to the consolidated sta_5
Notes to the consolidated statements of income - Earnings per share (Details) - EUR (€) € / shares in Units, € in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerators: | ||
Net income attributable to shareholders of FMC-AG & Co. KGaA | € 157,361 | € 248,946 |
Denominators: | ||
Weighted average number of shares outstanding | 293,007,109 | 292,878,085 |
Potentially dilutive shares | 71,206 | 131,477 |
Basic earnings per share | € 0.54 | € 0.85 |
Diluted earnings per share | € 0.54 | € 0.85 |
Notes to the consolidated sta_6
Notes to the consolidated statements of income - Impacts of COVID-19 (Details) € in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2022EUR (€) | Mar. 31, 2021EUR (€) | Mar. 31, 2022USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021USD ($) | |
Disclosure of grants | |||||
Government grants | € 18,191 | € 7,228 | |||
United States | |||||
Disclosure of grants | |||||
Remaining amount of government grants received | 41,079 | $ 46,078 | € 54,897 | $ 62,176 | |
CMS Accelerated and Advance Payment program | |||||
Disclosure of grants | |||||
Contract liabilities | € 226,920 | $ 251,904 | € 390,754 | $ 442,568 |
Related party transactions - Se
Related party transactions - Service agreements and products - General (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Vifor Fresenius Medical Care Renal Pharma Ltd. | |
Related party transactions | |
Ownership in joint venture (as a percent) | 45.00% |
Fresenius SE | |
Related party transactions | |
Proportion of ownership interest in reporting entity (as a percent) | 32.20% |
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 |
Related party transactions - _2
Related party transactions - Service agreements and products with related parties (Details) - EUR (€) € in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Service Agreements | |||
Transactions | |||
Sales of goods and services | € 26,167 | € 11,242 | |
Purchases of goods and services | 36,809 | 32,302 | |
Balances | |||
Accounts receivable | 159,042 | € 133,205 | |
Accounts payable | 10,335 | 14,748 | |
Accrued expenses | 16,535 | 12,911 | |
Products | |||
Transactions | |||
Sales of goods and services | 14,546 | 11,632 | |
Purchases of goods and services | 95,743 | 113,869 | |
Balances | |||
Accounts receivable | 14,600 | 13,487 | |
Accounts payable | 53,006 | 82,444 | |
Fresenius SE | Service Agreements | |||
Transactions | |||
Sales of goods and services | 26 | 34 | |
Purchases of goods and services | 12,752 | 8,286 | |
Balances | |||
Accounts receivable | 15 | ||
Accounts payable | 3,821 | 6,707 | |
Fresenius SE affiliates | Service Agreements | |||
Transactions | |||
Sales of goods and services | 967 | 979 | |
Purchases of goods and services | 24,057 | 24,016 | |
Balances | |||
Accounts receivable | 730 | 1,544 | |
Accounts payable | 6,514 | 8,041 | |
Fresenius SE affiliates | Products | |||
Transactions | |||
Sales of goods and services | 14,546 | 11,632 | |
Purchases of goods and services | 9,121 | 7,867 | |
Balances | |||
Accounts receivable | 14,600 | 13,487 | |
Accounts payable | 5,807 | 6,000 | |
Equity method investees | Service Agreements | |||
Transactions | |||
Sales of goods and services | 25,174 | 10,229 | |
Balances | |||
Accounts receivable | 158,297 | 131,661 | |
Equity method investees | Products | |||
Transactions | |||
Purchases of goods and services | 86,622 | € 106,002 | |
Balances | |||
Accounts payable | € 47,199 | € 76,444 |
Related party transactions - Le
Related party transactions - Lease Agreements - Summary (Details) - EUR (€) € in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Leases balances | |||
Right-of-use asset | € 4,274,265 | € 4,316,440 | |
Lease Agreements | |||
Lease Transactions | |||
Depreciation | 5,582 | € 5,259 | |
Interest expense | 230 | 460 | |
Lease expense | 370 | 382 | |
Leases balances | |||
Right-of-use asset | 114,045 | 116,975 | |
Lease liability | 116,479 | 119,281 | |
Fresenius SE | Lease Agreements | |||
Lease Transactions | |||
Depreciation | 1,957 | 1,979 | |
Interest expense | 135 | 170 | |
Lease expense | 370 | 345 | |
Leases balances | |||
Right-of-use asset | 46,837 | 48,794 | |
Lease liability | 48,876 | 50,997 | |
Fresenius SE affiliates | Lease Agreements | |||
Lease Transactions | |||
Depreciation | 3,625 | 3,280 | |
Interest expense | 95 | 290 | |
Lease expense | € 37 | ||
Leases balances | |||
Right-of-use asset | 67,208 | 68,181 | |
Lease liability | € 67,603 | € 68,284 |
Related party transactions - Fi
Related party transactions - Financing (Details) - EUR (€) € in Thousands | Nov. 28, 2013 | Aug. 19, 2009 | Mar. 31, 2022 | Dec. 31, 2021 |
Fresenius SE | Short-term financing | ||||
Balances | ||||
Accounts receivable | € 4,468 | € 14,900 | ||
Fresenius SE | Loans | ||||
Transactions | ||||
Outstanding borrowings | € 142,500 | € 74,500 | ||
Interest rate (as a percent) | 0.60% | 0.60% | ||
General Partner | Unsecured debt | ||||
Transactions | ||||
Interest rate (as a percent) | 1.3348% | |||
General Partner | Unsecured debt - originated in 2009 | ||||
Transactions | ||||
Proceeds from short-term debt from related parties | € 1,500 | |||
General Partner | Unsecured debt - originated in 2013 | ||||
Transactions | ||||
Proceeds from short-term debt from related parties | € 1,500 |
Related party transactions - Ke
Related party transactions - Key management personnel (Details) - General Partner - EUR (€) € in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Transactions | ||
Amount paid for services received from related party | € 8,178 | € 8,783 |
Balances | ||
Accounts receivable | 5,221 | 769 |
Accounts payable | € 6,691 | € 24,265 |
Inventories (Details)
Inventories (Details) - EUR (€) € in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories | ||
Finished goods | € 1,294,189 | € 1,233,197 |
Health care supplies | 459,215 | 452,073 |
Raw materials and purchased components | 264,614 | 247,478 |
Work in process | 118,943 | 105,266 |
Inventories | € 2,136,961 | € 2,038,014 |
Short-term debt (Details)
Short-term debt (Details) - EUR (€) € in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt | ||
Short-term debt from unrelated parties | € 969,715 | € 1,178,353 |
Short-term debt from related parties (see note 3 c) | 145,500 | 77,500 |
Short-term debt | 1,115,215 | 1,255,853 |
Cash and cash equivalents before offset | 1,275,474 | 1,598,193 |
Short-term debt from unrelated parties before offset | 1,071,847 | 1,294,891 |
Commercial paper program | ||
Debt | ||
Short-term debt from unrelated parties | 555,687 | 715,153 |
Outstanding amount | 555,500 | 715,000 |
Borrowings under lines of credit | ||
Debt | ||
Short-term debt from unrelated parties | 413,946 | 463,091 |
Borrowings offset under cash management system | 102,132 | 116,538 |
Other | ||
Debt | ||
Short-term debt from unrelated parties | 82 | € 109 |
Maximum | Commercial paper program | ||
Debt | ||
Commercial paper borrowing limit | 1,500,000 | |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Long-term debt | ||
Long-term debt | € 7,510,510 | € 7,314,915 |
Less current portion | (58,724) | (667,966) |
Long-term debt, less current portion | 7,451,786 | 6,646,949 |
Schuldschein loans | ||
Long-term debt | ||
Long-term debt | 224,561 | |
Bonds | ||
Long-term debt | ||
Long-term debt | 6,514,611 | 7,071,259 |
Accounts Receivable Facility | ||
Long-term debt | ||
Long-term debt | 525,231 | |
Other long-term debt | ||
Long-term debt | ||
Long-term debt | € 246,107 | € 243,656 |
Long-term debt - Schuldschein l
Long-term debt - Schuldschein loans (Details) € in Thousands | Feb. 14, 2022EUR (€) |
Schuldschein loans tranche one | |
Long-term debt | |
Face amount | € 25,000 |
Borrowings term (in years) | 5 years |
Schuldschein loans tranche two | |
Long-term debt | |
Face amount | € 200,000 |
Borrowings term (in years) | 7 years |
Long-term debt - Bonds (Details
Long-term debt - Bonds (Details) - Jan. 31, 2022 € in Thousands, $ in Thousands | USD ($) | EUR (€) |
Bonds | Fresenius Medical Care US Finance II, Inc. | ||
Long-term debt | ||
Redemption of bonds | $ 700,000 | € 532,522 |
Long-term debt - Accounts Recei
Long-term debt - Accounts Receivable Facility (Details) - Accounts Receivable Facility € in Thousands, $ in Thousands | Mar. 31, 2022USD ($) | Mar. 31, 2022EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Aug. 11, 2021USD ($) | Aug. 11, 2021EUR (€) |
Long-term debt | ||||||
Maximum amount available | $ 900,000 | € 810,738 | $ 900,000 | € 794,632 | $ 900,000 | € 768,049 |
Balance outstanding | 583,500 | 525,628 | ||||
Letters of credit outstanding | $ 12,532 | € 11,289 | $ 12,532 | € 11,065 |
Long-term debt - Syndicated cre
Long-term debt - Syndicated credit facility (Details) € in Thousands | Jul. 31, 2021EUR (€) |
Syndicated Credit Facility | |
Long-term debt | |
Maximum amount available | € 2,000,000 |
Capital management (Details)
Capital management (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Capital management | ||
Total equity in % of total assets (equity ratio) | 41.90% | 40.70% |
Debt and lease liabilities in % of total assets | 38.40% | 38.80% |
Share-based plans (Details)
Share-based plans (Details) - MB LTIP 2020 | Mar. 01, 2022EUR (€)EquityInstruments |
Share-based payment transaction | |
Number of shares allocated | EquityInstruments | 212,715 |
Total fair value of shares granted | € 11,182,000 |
Vesting period | 3 years |
Weighted average fair value | € 52.57 |
Management Board | |
Share-based payment transaction | |
Number of shares allocated | EquityInstruments | 153,072 |
Total fair value of shares granted | € 8,058,000 |
Executive committee | |
Share-based payment transaction | |
Number of shares allocated | EquityInstruments | 59,643 |
Total fair value of shares granted | € 3,124,000 |
Commitments and contingencies (
Commitments and contingencies (Details) € in Thousands, claim in Thousands, $ in Thousands | Mar. 29, 2019USD ($) | Mar. 29, 2019EUR (€) | Mar. 31, 2022USD ($)item | Mar. 31, 2022EUR (€)item | Mar. 31, 2022EUR (€) | Jul. 31, 2015USD ($)claim | Jul. 31, 2015EUR (€)claim |
Commitments and contingencies | |||||||
Number of U.S. FDA Pending Warning Letters | item | 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 | 20 |
Financial instruments - Carryin
Financial instruments - Carrying amount and fair value (Details) - EUR (€) € in Thousands | Sep. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Financial instruments | |||
Carrying amount of financial assets | € 6,029,064 | € 5,991,693 | |
Carrying amount of financial liabilities | 16,270,565 | 16,209,369 | |
Level 1 | |||
Financial instruments | |||
Transfer out of level 3 into level 1 | € 158,551 | ||
Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 10,485,315 | 10,393,957 | |
FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 87,100 | 69,118 | |
Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 5,698,150 | 5,746,294 | |
Accounts payable to unrelated parties | |||
Financial instruments | |||
Carrying amount of financial liabilities | 790,236 | 736,069 | |
Accounts payable to unrelated parties | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 790,236 | 736,069 | |
Accounts payable to related parties | |||
Financial instruments | |||
Carrying amount of financial liabilities | 70,032 | 121,457 | |
Accounts payable to related parties | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 70,032 | 121,457 | |
Short-term debt | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,115,215 | 1,255,853 | |
Short-term debt | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,115,215 | 1,255,853 | |
Long-term debt | |||
Financial instruments | |||
Carrying amount of financial liabilities | 7,510,510 | 7,314,915 | |
Long-term debt | Level 1 | |||
Financial instruments | |||
Fair value of financial liabilities | 6,273,843 | 7,246,019 | |
Long-term debt | Level 2 | |||
Financial instruments | |||
Fair value of financial liabilities | 996,295 | 243,656 | |
Long-term debt | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 7,510,510 | 7,314,915 | |
Lease liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 4,717,647 | 4,749,381 | |
Lease liabilities | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 4,717,647 | 4,749,381 | |
Other current and non-current liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 2,066,925 | 2,031,694 | |
Other current and non-current liabilities | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 999,322 | 965,663 | |
Other current and non-current liabilities | FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 87,100 | 69,118 | |
Other current and non-current liabilities | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 980,503 | 996,913 | |
Derivatives - cash flow hedging instruments | |||
Financial instruments | |||
Carrying amount of financial liabilities | 4,372 | 4,490 | |
Derivatives - cash flow hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial liabilities | 4,372 | 4,490 | |
Derivatives - cash flow hedging instruments | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 4,372 | 4,490 | |
Derivatives - not designated as hedging instruments | |||
Financial instruments | |||
Carrying amount of financial liabilities | 40,919 | 21,428 | |
Derivatives - not designated as hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial liabilities | 40,919 | 21,428 | |
Derivatives - not designated as hedging instruments | FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 40,919 | 21,428 | |
Variable payments outstanding for acquisition | |||
Financial instruments | |||
Carrying amount of financial liabilities | 46,181 | 47,690 | |
Variable payments outstanding for acquisition | Level 3 | |||
Financial instruments | |||
Fair value of financial liabilities | 46,181 | 47,690 | |
Variable payments outstanding for acquisition | FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 46,181 | 47,690 | |
Put option liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 976,131 | 992,423 | |
Put option liabilities | Level 3 | |||
Financial instruments | |||
Fair value of financial liabilities | 976,131 | 992,423 | |
Put option liabilities | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 976,131 | 992,423 | |
Other financial liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 999,322 | 965,663 | |
Other financial liabilities | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 999,322 | 965,663 | |
Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 4,941,570 | 4,617,696 | |
FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 461,216 | 765,545 | |
FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 409,597 | 396,673 | |
Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 216,681 | 211,779 | |
Cash and cash equivalents | |||
Financial instruments | |||
Carrying amount of financial assets | 1,173,342 | 1,481,655 | |
Cash and cash equivalents | Level 1 | |||
Financial instruments | |||
Fair value of financial assets | 183,540 | 492,398 | |
Cash and cash equivalents | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 989,802 | 989,257 | |
Cash and cash equivalents | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 183,540 | 492,398 | |
Trade accounts and other receivables from unrelated parties | |||
Financial instruments | |||
Carrying amount of financial assets | 3,707,487 | 3,409,061 | |
Trade accounts and other receivables from unrelated parties | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 3,625,538 | 3,328,720 | |
Trade accounts and other receivables from unrelated parties | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 81,949 | 80,341 | |
Accounts receivable from related parties | |||
Financial instruments | |||
Carrying amount of financial assets | 183,331 | 162,361 | |
Accounts receivable from related parties | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 183,331 | 162,361 | |
Other current and non-current assets | |||
Financial instruments | |||
Carrying amount of financial assets | 964,904 | 938,616 | |
Other current and non-current assets | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 142,899 | 137,358 | |
Other current and non-current assets | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 277,676 | 273,147 | |
Other current and non-current assets | FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 409,597 | 396,673 | |
Other current and non-current assets | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 134,732 | 131,438 | |
Derivatives - cash flow hedging instruments | |||
Financial instruments | |||
Carrying amount of financial assets | 2,662 | 579 | |
Derivatives - cash flow hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 2,662 | 579 | |
Derivatives - cash flow hedging instruments | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 2,662 | 579 | |
Derivatives - not designated as hedging instruments | |||
Financial instruments | |||
Carrying amount of financial assets | 2,963 | 2,846 | |
Derivatives - not designated as hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 2,963 | 2,846 | |
Derivatives - not designated as hedging instruments | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 2,963 | 2,846 | |
Equity investments | |||
Financial instruments | |||
Carrying amount of financial assets | 243,957 | 244,479 | |
Equity investments | Level 1 | |||
Financial instruments | |||
Fair value of financial assets | 122,201 | 121,643 | |
Equity investments | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 70,400 | 72,157 | |
Equity investments | Level 3 | |||
Financial instruments | |||
Fair value of financial assets | 51,356 | 50,679 | |
Equity investments | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 178,394 | 174,884 | |
Equity investments | FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 65,563 | 69,595 | |
Debt securities | |||
Financial instruments | |||
Carrying amount of financial assets | 440,353 | 422,495 | |
Debt securities | Level 1 | |||
Financial instruments | |||
Fair value of financial assets | 436,045 | 418,196 | |
Debt securities | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 4,308 | 4,299 | |
Debt securities | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 96,319 | 95,417 | |
Debt securities | FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 344,034 | 327,078 | |
Other financial assets | |||
Financial instruments | |||
Carrying amount of financial assets | 274,969 | 268,217 | |
Other financial assets | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 142,899 | 137,358 | |
Other financial assets | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | € 132,070 | € 130,859 |
Financial instruments - Derivat
Financial instruments - Derivative and non-derivative financial instruments (Details) - EUR (€) € in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in fair value measurement | ||
Assets at beginning of period | € 34,366,558 | |
Assets at end of period | 34,724,126 | € 34,366,558 |
Liabilities at beginning of period | 20,387,521 | |
Liabilities at end of period | 20,184,834 | 20,387,521 |
Equity investments | Fair Value | Level 3 | ||
Reconciliation of changes in fair value measurement | ||
Assets at beginning of period | 50,679 | 188,518 |
Transfer to level 1 | (158,551) | |
Increase | 21,137 | |
Gain / loss recognised in profit or loss | (347) | (12,975) |
Foreign currency translation and other changes | 1,024 | 12,550 |
Assets at end of period | 51,356 | 50,679 |
Variable payments outstanding for acquisition | Fair Value | Level 3 | ||
Reconciliation of changes in fair value measurement | ||
Liabilities at beginning of period | 47,690 | 66,359 |
Increase | 6,321 | 9,488 |
Decrease | (3,761) | (22,499) |
Gain / loss recognized in profit or loss | (4,947) | (6,716) |
Foreign currency translation and other changes | 878 | 1,058 |
Liabilities at end of period | 46,181 | 47,690 |
Put option liabilities | Fair Value | Level 3 | ||
Reconciliation of changes in fair value measurement | ||
Liabilities at beginning of period | 992,423 | 882,422 |
Increase | 7,511 | 112,194 |
Decrease | (5,635) | (18,495) |
Gain / loss recognized in equity | (36,983) | (54,019) |
Foreign currency translation and other changes | 18,815 | 70,321 |
Liabilities at end of period | € 976,131 | € 992,423 |
Put option liabilities | Fair Value | Level 3 | Assumed earnings | ||
Reconciliation of changes in fair value measurement | ||
Increase in input | 10.00% | |
Increase in fair value due to increase in input | € 73,808 | |
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% | |
Increase in fair value due to increase in input, as percentage of equity | 1.00% |
Segment and corporate informa_3
Segment and corporate information (Details) - EUR (€) € in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment and corporate information | |||
Revenue from health care services | € 3,606,807 | € 3,325,459 | |
Revenue from health care products | 941,562 | 884,666 | |
Revenue | 4,548,369 | 4,210,125 | |
Operating income | 347,668 | 474,253 | |
Interest | (69,097) | (76,072) | |
Income before income taxes | 278,571 | 398,181 | |
Depreciation and amortization | (414,166) | (387,906) | |
Impairment loss | (4,791) | (296) | |
Income (loss) from equity method investees | 10,487 | 27,756 | |
Total assets | 34,724,126 | 33,158,539 | € 34,366,558 |
thereof investments in equity method investees | 798,947 | 726,595 | € 786,905 |
Additions of property, plant and equipment, intangible assets and right of use assets | 279,060 | 360,269 | |
Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 3,492,515 | 3,233,136 | |
Revenue from health care products | 911,982 | 849,620 | |
Revenue | 4,404,497 | 4,082,756 | |
Other revenue | |||
Segment and corporate information | |||
Revenue from health care services | 114,292 | 92,323 | |
Revenue from health care products | 29,580 | 35,046 | |
Revenue | 143,872 | 127,369 | |
Total Segment | |||
Segment and corporate information | |||
Revenue | 4,535,506 | 4,198,636 | |
Operating income | 475,197 | 570,329 | |
Depreciation and amortization | (345,308) | (324,730) | |
Impairment loss | (3,936) | (296) | |
Income (loss) from equity method investees | 10,487 | 27,756 | |
Total assets | 30,724,452 | 29,364,053 | |
thereof investments in equity method investees | 798,947 | 726,595 | |
Additions of property, plant and equipment, intangible assets and right of use assets | 228,213 | 302,644 | |
Total Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 3,484,487 | 3,225,919 | |
Revenue from health care products | 907,147 | 845,348 | |
Revenue | 4,391,634 | 4,071,267 | |
Total Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 143,872 | 127,369 | |
North America Segment | |||
Segment and corporate information | |||
Revenue | 3,170,611 | 2,898,829 | |
Operating income | 303,943 | 398,503 | |
Depreciation and amortization | (260,438) | (239,783) | |
Impairment loss | (3,394) | (296) | |
Income (loss) from equity method investees | 16,163 | 27,391 | |
Total assets | 22,986,219 | 21,947,496 | |
thereof investments in equity method investees | 488,067 | 390,805 | |
Additions of property, plant and equipment, intangible assets and right of use assets | 159,998 | 220,534 | |
North America Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 2,774,332 | 2,550,966 | |
Revenue from health care products | 277,533 | 251,804 | |
Revenue | 3,051,865 | 2,802,770 | |
North America Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 118,746 | 96,059 | |
EMEA Segment | |||
Segment and corporate information | |||
Revenue | 674,276 | 669,606 | |
Operating income | 61,269 | 79,890 | |
Depreciation and amortization | (46,928) | (50,344) | |
Impairment loss | (500) | ||
Income (loss) from equity method investees | (6,235) | (406) | |
Total assets | 3,863,261 | 3,840,853 | |
thereof investments in equity method investees | 182,179 | 206,985 | |
Additions of property, plant and equipment, intangible assets and right of use assets | 39,065 | 48,576 | |
EMEA Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 344,423 | 332,461 | |
Revenue from health care products | 322,661 | 319,011 | |
Revenue | 667,084 | 651,472 | |
EMEA Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 7,192 | 18,134 | |
Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | 507,133 | 471,186 | |
Operating income | 98,848 | 85,296 | |
Depreciation and amortization | (27,048) | (25,662) | |
Impairment loss | (42) | ||
Income (loss) from equity method investees | 220 | 726 | |
Total assets | 3,013,462 | 2,838,318 | |
thereof investments in equity method investees | 103,097 | 103,171 | |
Additions of property, plant and equipment, intangible assets and right of use assets | 21,102 | 20,790 | |
Asia-Pacific Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 235,873 | 227,813 | |
Revenue from health care products | 254,005 | 230,748 | |
Revenue | 489,878 | 458,561 | |
Asia-Pacific Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 17,255 | 12,625 | |
Latin America Segment | |||
Segment and corporate information | |||
Revenue | 183,486 | 159,015 | |
Operating income | 11,137 | 6,640 | |
Depreciation and amortization | (10,894) | (8,941) | |
Income (loss) from equity method investees | 339 | 45 | |
Total assets | 861,510 | 737,386 | |
thereof investments in equity method investees | 25,604 | 25,634 | |
Additions of property, plant and equipment, intangible assets and right of use assets | 8,048 | 12,744 | |
Latin America Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 129,859 | 114,679 | |
Revenue from health care products | 52,948 | 43,785 | |
Revenue | 182,807 | 158,464 | |
Latin America Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 679 | 551 | |
Corporate | |||
Segment and corporate information | |||
Revenue | 12,863 | 11,489 | |
Operating income | (127,529) | (96,076) | |
Depreciation and amortization | (68,858) | (63,176) | |
Impairment loss | (855) | ||
Total assets | 3,999,674 | 3,794,486 | |
Additions of property, plant and equipment, intangible assets and right of use assets | 50,847 | 57,625 | |
Corporate | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 8,028 | 7,217 | |
Revenue from health care products | 4,835 | 4,272 | |
Revenue | 12,863 | 11,489 | |
Operating Segments | Total Segment | |||
Segment and corporate information | |||
Revenue | 4,540,714 | 4,209,867 | |
Operating Segments | North America Segment | |||
Segment and corporate information | |||
Revenue | 3,174,604 | 2,910,004 | |
Operating Segments | EMEA Segment | |||
Segment and corporate information | |||
Revenue | 674,276 | 669,606 | |
Operating Segments | Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | 507,197 | 471,242 | |
Operating Segments | Latin America Segment | |||
Segment and corporate information | |||
Revenue | 184,637 | 159,015 | |
Operating Segments | Corporate | |||
Segment and corporate information | |||
Revenue | 7,655 | 258 | |
Inter-segment | Total Segment | |||
Segment and corporate information | |||
Revenue | (5,208) | (11,231) | |
Inter-segment | North America Segment | |||
Segment and corporate information | |||
Revenue | (3,993) | (11,175) | |
Inter-segment | Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | (64) | (56) | |
Inter-segment | Latin America Segment | |||
Segment and corporate information | |||
Revenue | (1,151) | ||
Inter-segment | Corporate | |||
Segment and corporate information | |||
Revenue | € 5,208 | € 11,231 |
Events occurring after the ba_2
Events occurring after the balance sheet date (Details) - Changes in relation to Management Board | Dec. 31, 2022 | May 03, 2022 |
Chief Executive Officer | ||
Events after balance sheet date | ||
Period of time person was heading the Company before stepping down | 10 years | |
Chief Financial Officer | ||
Events after balance sheet date | ||
Period of new contract | 5 years |