Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Document and Entity Information | |||
Document Type | 20-F | ||
Entity Registrant Name | FRESENIUS MEDICAL CARE AG & Co. KGaA | ||
Entity Central Index Key | 0001333141 | ||
Document Period End Date | Dec. 31, 2022 | ||
Amendment Flag | false | ||
Document Registration Statement | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Shell Company Report | false | ||
Entity File Number | 001-32749 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | Else-Kröner-Strasse 1 | ||
Entity Address, Postal Zip Code | 61352 | ||
Entity Address, City or Town | Bad Homburg | ||
Entity Address, Country | DE | ||
Entity Common Stock, Shares Outstanding | 293,413,449 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Accounting Standard | International Financial Reporting Standards | ||
Entity Shell Company | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Auditor Name | PricewaterhouseCoopers GmbH | PricewaterhouseCoopers GmbH | PricewaterhouseCoopers GmbH |
Auditor Location | Frankfurt am Main, Germany | Frankfurt am Main, Germany | Frankfurt am Main, Germany |
Auditor Firm ID | 1275 | 1275 | 1275 |
Business Contact | |||
Document and Entity Information | |||
Contact Personnel Name | Alexandra Dambeck | ||
City Area Code | +49 | ||
Local Phone Number | 6172 608 7640 | ||
Contact Personnel Email Address | Alexandra.Dambeck@FMC-AG.com | ||
Entity Address, Address Line One | Else-Kröner-Strasse 1 | ||
Entity Address, Postal Zip Code | 61352 | ||
Entity Address, City or Town | Bad Homburg | ||
Entity Address, Country | DE | ||
American Depositary Shares representing Ordinary Shares | |||
Document and Entity Information | |||
Title of 12(b) Security | American Depositary Shares representing Ordinary Shares | ||
Trading Symbol | FMS | ||
Security Exchange Name | NYSE | ||
Ordinary Shares, no par value | |||
Document and Entity Information | |||
Title of 12(b) Security | Ordinary Shares, no par value | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE |
Consolidated statements of inco
Consolidated statements of income - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Health care services | € 15,418,069 | € 13,876,282 | € 14,114,399 |
Health care products | 3,979,948 | 3,742,403 | 3,744,664 |
Revenue | 19,398,017 | 17,618,685 | 17,859,063 |
Costs of revenue: | |||
Health care services | 11,854,213 | 10,637,279 | 10,575,424 |
Health care products | 2,233,552 | 1,904,377 | 1,746,194 |
Costs of revenue | 14,087,765 | 12,541,656 | 12,321,618 |
Gross profit | 5,310,252 | 5,077,029 | 5,537,445 |
Operating (income) expenses: | |||
Selling, general and administrative | 3,784,634 | 3,096,132 | 3,133,780 |
Research and development | 228,624 | 220,782 | 193,774 |
Income from equity method investees | (66,559) | (92,175) | (94,518) |
Remeasurement Gain from InterWell Health | (148,202) | ||
Operating income | 1,511,755 | 1,852,290 | 2,304,409 |
Other (income) expense: | |||
Interest income | (67,663) | (73,170) | (41,959) |
Interest expense | 360,139 | 353,599 | 409,978 |
Income before income taxes | 1,219,279 | 1,571,861 | 1,936,390 |
Income tax expense | 324,954 | 352,833 | 500,558 |
Net income | 894,325 | 1,219,028 | 1,435,832 |
Net income attributable to noncontrolling interests | 220,920 | 249,720 | 271,455 |
Net income attributable to shareholders of FMC AG & Co. KGaA | € 673,405 | € 969,308 | € 1,164,377 |
Basic earnings per share | € 2.30 | € 3.31 | € 3.96 |
Diluted earnings per share | € 2.30 | € 3.31 | € 3.96 |
Consolidated statements of comp
Consolidated statements of comprehensive income - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated statements of comprehensive income | |||
Net income | € 894,325 | € 1,219,028 | € 1,435,832 |
Components that will not be reclassified to profit or loss: | |||
Equity method investees - share of OCI | 22,705 | (25,334) | 58,166 |
FVOCI equity investments | 2,883 | 37,660 | 19,439 |
Actuarial gain (loss) on defined benefit pension plans | 318,595 | (15,781) | 4,176 |
Income tax (expense) benefit related to components of other comprehensive income not reclassified | (94,294) | (4,085) | (3,517) |
Total | 249,889 | (7,540) | 78,264 |
Components that may be reclassified subsequently to profit or loss: | |||
Gain (loss) related to foreign currency translation | 826,847 | 1,034,239 | (1,359,397) |
FVOCI debt securities | (44,996) | (9,892) | 29,096 |
Gain (loss) related to cash flow hedges | 13,583 | (1,019) | (188) |
Cost of hedging | (1,170) | (163) | 2,967 |
Income tax (expense) benefit related to components of other comprehensive income that may be reclassified | 4,849 | 1,889 | (5,797) |
Total | 799,113 | 1,025,054 | (1,333,319) |
Other comprehensive income (loss), net of tax | 1,049,002 | 1,017,514 | (1,255,055) |
Total comprehensive income | 1,943,327 | 2,236,542 | 180,777 |
Comprehensive income attributable to noncontrolling interests | 280,219 | 339,583 | 171,810 |
Comprehensive income (loss) attributable to shareholders of FMC AG & Co. KGaA | € 1,663,108 | € 1,896,959 | € 8,967 |
Consolidated balance sheets
Consolidated balance sheets - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | € 1,273,787 | € 1,481,655 |
Trade accounts and other receivables from unrelated parties | 3,574,270 | 3,409,061 |
Accounts receivable from related parties | 140,072 | 162,361 |
Inventories | 2,296,214 | 2,038,014 |
Other current assets | 919,112 | 876,151 |
Total current assets | 8,203,455 | 7,967,242 |
Property, plant and equipment | 4,152,682 | 4,235,027 |
Right-of-use assets | 4,187,126 | 4,316,440 |
Intangible assets | 1,518,677 | 1,459,393 |
Goodwill | 15,791,181 | 14,361,577 |
Deferred taxes | 312,679 | 315,360 |
Investment in equity method investees | 773,724 | 786,905 |
Other non-current assets | 814,590 | 924,614 |
Total non-current assets | 27,550,659 | 26,399,316 |
Total assets | 35,754,114 | 34,366,558 |
Liabilities | ||
Accounts payable to unrelated parties | 813,255 | 736,069 |
Accounts payable to related parties | 118,083 | 121,457 |
Current provisions and other current liabilities | 3,355,144 | 3,676,875 |
Short-term debt from unrelated parties | 665,013 | 1,178,353 |
Short-term debt from related parties | 4,000 | 77,500 |
Current portion of long-term debt | 694,062 | 667,966 |
Current portion of lease liabilities from unrelated parties | 649,844 | 639,947 |
Current portion of lease liabilities from related parties | 23,981 | 21,631 |
Income tax liabilities | 143,932 | 137,836 |
Total current liabilities | 6,467,314 | 7,257,634 |
Long-term debt, less current portion | 7,170,734 | 6,646,949 |
Lease liabilities from unrelated parties, less current portion | 3,875,216 | 3,990,153 |
Lease liabilities from related parties, less current portion | 129,722 | 97,650 |
Non-current provisions and other non-current liabilities | 1,183,910 | 707,563 |
Pension liabilities | 514,219 | 782,622 |
Income tax liabilities | 27,345 | 36,498 |
Deferred taxes | 936,475 | 868,452 |
Total non-current liabilities | 13,837,621 | 13,129,887 |
Total liabilities | 20,304,935 | 20,387,521 |
Shareholders' equity: | ||
Ordinary shares, no par value, €1.00 nominal value, 362,370,124 shares authorized, 293,413,449 issued and outstanding as of December 31, 2022 (December 31, 2021: 293,004,339) | 293,413 | 293,004 |
Additional paid-in capital | 3,372,799 | 2,891,276 |
Retained earnings | 10,711,709 | 10,826,140 |
Accumulated other comprehensive income (loss) | (388,468) | (1,311,637) |
Total FMC AG & Co. KGaA shareholders' equity | 13,989,453 | 12,698,783 |
Noncontrolling interests | 1,459,726 | 1,280,254 |
Total equity | 15,449,179 | 13,979,037 |
Total liabilities and equity | € 35,754,114 | € 34,366,558 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - € / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated balance sheets | ||
Nominal value per share | € 1 | € 1 |
Shares authorized | 362,370,124 | 362,370,124 |
Shares issued | 293,413,449 | 293,004,339 |
Shares outstanding | 293,413,449 | 293,004,339 |
Consolidated statements of cash
Consolidated statements of cash flows - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income | € 894,325 | € 1,219,028 | € 1,435,832 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and impairment loss | 1,838,363 | 1,623,676 | 1,785,899 |
Change in deferred taxes, net | (41,471) | 67,259 | 111,104 |
(Gain) loss from the sale of fixed assets, right-of-use assets, investments and divestitures | (99,268) | 44,088 | (58,364) |
Income from equity method investees | (66,559) | (92,175) | (94,518) |
Interest expense, net | 292,476 | 280,429 | 368,019 |
Changes in assets and liabilities, net of amounts from businesses acquired: | |||
Trade accounts and other receivables from unrelated parties | (76,658) | (100,548) | 11,611 |
Inventories | (204,307) | (48,530) | (355,831) |
Other current and non-current assets | 154,031 | 164,201 | (178,473) |
Accounts receivable from related parties | 29,976 | (62,649) | 60,084 |
Accounts payable to related parties | (8,726) | 19,696 | (16,311) |
Accounts payable to unrelated parties, provisions and other current and non-current liabilities | (348,063) | (383,651) | 1,389,928 |
Income tax liabilities | 325,680 | 313,713 | 324,455 |
Received dividends from investments in equity method investees | 95,213 | 58,472 | 89,419 |
Paid interest | (350,681) | (341,629) | (379,994) |
Received interest | 67,663 | 73,170 | 41,959 |
Paid income taxes | (334,615) | (345,052) | (301,663) |
Net cash provided by (used in) operating activities | 2,167,379 | 2,489,498 | 4,233,156 |
Investing activities | |||
Purchases of property, plant and equipment and capitalized development costs | (723,988) | (854,360) | (1,051,983) |
Acquisitions, net of cash acquired, investments and purchases of intangible assets | (59,133) | (434,171) | (258,985) |
Investments in debt securities | (105,641) | (129,081) | (96,401) |
Proceeds from sale of property, plant and equipment | 36,205 | 24,424 | 15,578 |
Proceeds from divestitures | 60,161 | 52,444 | 14,608 |
Proceeds from sale of debt securities | 57,671 | 144,516 | 42,241 |
Net cash provided by (used in) investing activities | (734,725) | (1,196,228) | (1,334,942) |
Financing activities | |||
Proceeds from short-term debt from unrelated parties | 633,094 | 1,716,261 | 213,116 |
Repayments of short-term debt from unrelated parties | (1,144,751) | (600,484) | (1,304,526) |
Proceeds from short-term debt from related parties | 84,000 | 87,946 | 581,711 |
Repayments of short-term debt from related parties | (157,500) | (26,766) | (587,180) |
Proceeds from long-term debt | 986,922 | 1,244,094 | 2,120,905 |
Repayments of long-term debt | (744,620) | (2,083,000) | (1,586,218) |
Repayments of lease liabilities from unrelated parties | (752,884) | (675,639) | (683,614) |
Repayments of lease liabilities from related parties | (22,268) | (21,315) | (20,185) |
Increase (decrease) of accounts receivable facility | 94,962 | (373,840) | |
Proceeds from exercise of stock options | 20,153 | 6,511 | 12,653 |
Purchase of treasury stock | (365,988) | ||
Dividends paid | (395,556) | (392,455) | (351,170) |
Distributions to noncontrolling interests | (307,417) | (334,844) | (366,277) |
Contributions from noncontrolling interests | 88,505 | 55,309 | 46,586 |
Net cash provided by (used in) financing activities | (1,617,360) | (1,024,382) | (2,664,027) |
Effect of exchange rate changes on cash and cash equivalents | (23,162) | 131,228 | (160,371) |
Cash and cash equivalents: | |||
Net increase (decrease) in cash and cash equivalents | (207,868) | 400,116 | 73,816 |
Cash and cash equivalents at beginning of period | 1,481,655 | 1,081,539 | 1,007,723 |
Cash and cash equivalents at end of period | € 1,273,787 | € 1,481,655 | € 1,081,539 |
Consolidated statements of shar
Consolidated statements of shareholders' equity - EUR (€) € in Thousands | Total FMC-AG & Co. KGaA shareholders' equity | Ordinary shares | Treasury Stock | 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, 2019 | € 11,957,913 | € 304,437 | € (370,502) | € 3,607,662 | € 9,454,861 | € (664,987) | € (10,460) | € (363,098) | € 1,269,324 | € 13,227,237 | |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 304,436,876 | (6,107,629) | |||||||||
Proceeds from exercise of options and related tax effects | 12,711 | € 235 | 12,476 | 12,711 | |||||||
Proceeds from exercise of options and related tax effects (in shares) | 234,796 | ||||||||||
Purchase of treasury stock | (365,988) | € (365,988) | (365,988) | ||||||||
Purchase of treasury stock (in shares) | (5,687,473) | ||||||||||
Withdrawal of treasury stock | € (11,795) | € 736,490 | (724,695) | ||||||||
Withdrawal of treasury stock (in shares) | (11,795,102) | 11,795,102 | |||||||||
Dividends paid | (351,170) | (351,170) | (351,170) | ||||||||
Purchase/ sale of noncontrolling interests/ Transactions with noncontrolling interests without loss of control | (22,813) | (22,813) | (69,132) | (91,945) | |||||||
Contributions from/ to noncontrolling interests | (255,772) | (255,772) | |||||||||
Put option liabilities | (24,540) | (24,540) | (24,540) | ||||||||
Transfer of cumulative gains/losses of equity investments | 11,385 | € (11,385) | |||||||||
Net Income | 1,164,377 | 1,164,377 | 271,455 | 1,435,832 | |||||||
Other comprehensive income (loss) related to: | |||||||||||
Foreign currency translation | (1,259,752) | (1,271,726) | 724 | 13,831 | (2,581) | (99,645) | (1,359,397) | ||||
Cash flow hedges, net of related tax effects | 2,030 | 2,030 | 2,030 | ||||||||
Pensions, net of related tax effects | 2,985 | 2,985 | 2,985 | ||||||||
Fair value changes | 99,327 | 99,327 | 99,327 | ||||||||
Comprehensive income | 8,967 | 171,810 | 180,777 | ||||||||
Balance at end of period at Dec. 31, 2020 | 11,215,080 | € 292,877 | 2,872,630 | 10,254,913 | (1,936,713) | (7,706) | (346,282) | 85,361 | 1,116,230 | 12,331,310 | |
Balance at end of period (in shares) at Dec. 31, 2020 | 292,876,570 | ||||||||||
Proceeds from exercise of options and related tax effects | 5,590 | € 127 | 5,463 | 5,590 | |||||||
Proceeds from exercise of options and related tax effects (in shares) | 127,769 | ||||||||||
Dividends paid | (392,455) | (392,455) | (392,455) | ||||||||
Purchase/ sale of noncontrolling interests/ Transactions with noncontrolling interests without loss of control | 13,183 | 13,183 | 87,289 | 100,472 | |||||||
Contributions from/ to noncontrolling interests | (262,848) | (262,848) | |||||||||
Put option liabilities | (39,574) | (39,574) | (39,574) | ||||||||
Transfer of cumulative gains/losses of equity investments | 33,948 | (33,948) | |||||||||
Net Income | 969,308 | 969,308 | 249,720 | 1,219,028 | |||||||
Other comprehensive income (loss) related to: | |||||||||||
Foreign currency translation | 944,376 | 954,207 | (634) | (12,342) | 3,145 | 89,863 | 1,034,239 | ||||
Cash flow hedges, net of related tax effects | (775) | (775) | (775) | ||||||||
Pensions, net of related tax effects | (11,374) | (11,374) | (11,374) | ||||||||
Fair value changes | (4,576) | (4,576) | (4,576) | ||||||||
Comprehensive income | 1,896,959 | 339,583 | 2,236,542 | ||||||||
Balance at end 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 end of period (in shares) at Dec. 31, 2021 | 293,004,339 | 293,004,339 | |||||||||
Proceeds from exercise of options and related tax effects | 20,405 | € 409 | 19,996 | € 20,405 | |||||||
Proceeds from exercise of options and related tax effects (in shares) | 409,110 | ||||||||||
Dividends paid | (395,556) | (395,556) | (395,556) | ||||||||
Purchase/ sale of noncontrolling interests/ Transactions with noncontrolling interests without loss of control | 461,527 | 461,527 | 29,639 | 491,166 | |||||||
Noncontrolling interests due to changes in consolidation group | 142,310 | 142,310 | |||||||||
Contributions from/ to noncontrolling interests | (272,696) | (272,696) | |||||||||
Put option liabilities | (458,814) | (458,814) | (458,814) | ||||||||
Transfer of cumulative gains/losses of equity investments | 66,534 | (66,534) | |||||||||
Net Income | 673,405 | 673,405 | 220,920 | 894,325 | |||||||
Other comprehensive income (loss) related to: | |||||||||||
Foreign currency translation | 767,548 | 775,296 | (723) | (10,061) | 3,036 | 59,299 | 826,847 | ||||
Cash flow hedges, net of related tax effects | 9,211 | 9,211 | 9,211 | ||||||||
Pensions, net of related tax effects | 224,533 | 224,533 | 224,533 | ||||||||
Fair value changes | (11,589) | (11,589) | (11,589) | ||||||||
Comprehensive income | 1,663,108 | 280,219 | 1,943,327 | ||||||||
Balance at end of period at Dec. 31, 2022 | € 13,989,453 | € 293,413 | € 3,372,799 | € 10,711,709 | € (207,210) | € (627) | € (155,526) | € (25,105) | € 1,459,726 | € 15,449,179 | |
Balance at end of period (in shares) at Dec. 31, 2022 | 293,413,449 | 293,413,449 |
The Company, basis of presentat
The Company, basis of presentation and significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
The Company, basis of presentation and significant accounting policies | |
The Company, basis of presentation and significant accounting policies | 1. 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, Germany, 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 and related services for individuals with renal diseases 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 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 26. Basis of presentation The consolidated financial statements and other financial information included in the Company’s Annual Report on Form 20-F are prepared solely in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), using the euro as the Company’s reporting and functional currency. At December 31, 2022, there were no IFRS or IFRS Interpretations Committee (IFRS IC) interpretations as endorsed by the European Union relevant for reporting that differed from IFRS as issued by the IASB. The Company is included in the IFRS consolidated financial statements of Fresenius SE & Co. KGaA, Bad Homburg v. d. Höhe, pursuant to Section 315e of the German Commercial Code (HGB), published in the Federal Gazette and drawn up for the smallest circle of companies. The consolidated financial statements for the largest circle of companies are drawn up by Fresenius Management SE, Bad Homburg v. d. Höhe, and also published in the Federal Gazette. The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments are of a normal recurring nature. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in all future periods affected. In order to improve clarity of presentation, various items are aggregated in the consolidated balance sheets and consolidated statements of income. These items are analyzed separately in the notes where this provides useful information to the users of the consolidated financial statements. The consolidated balance sheets contain all information required to be disclosed by IAS 1, Presentation of Financial Statements (IAS 1) and is classified on the basis of the liquidity of assets and liabilities. The consolidated statements of income are classified using the cost-of-sales accounting format. The Company applies IAS 29, Financial Reporting in Hyperinflationary Economies (IAS 29), in its Argentine, Lebanese and Turkish subsidiaries due to inflation in these countries. The table below details the date of initial application of IAS 29 and the specific inputs used to calculate the loss on net monetary position on a country-specific basis for the year ended December 31, 2022. The hyperinflationary accounting effects of the initial application on the opening balance sheet are presented within accumulated other comprehensive income (loss) related to foreign currency translation, in the amount of €22,919, and ongoing re-translation effects of comparative amounts are recorded in other comprehensive income (loss) within the Company’s consolidated financial statements. The impacts of applying IAS 29 were not significant in all years presented. The subsequent gains or losses on net monetary position are recorded in selling, general and administrative expense within the Company’s consolidated statements of income and within other current and non-current assets within the Company’s consolidated statements of cash flows. Inputs for the calculation of losses on net monetary positions Argentina Lebanon Turkiye Date of IAS 29 initial application July 1, 2018 December 31, 2020 June 30, 2022 Consumer price index National Institute of Statistics & Censuses Central Administration of Statistics Turkish Statistical Institute Index at December 31, 2022 1,134.6 2,045.46 1,128.45 Calendar year increase 95% 122% 64% Loss on net monetary position in € THOUS 39,056 121 7,384 In the consolidated statements of shareholders’ equity, the Company started presenting transactions with noncontrolling interests without a loss of control separately from changes in noncontrolling interests due to changes in the consolidation group primarily related to an increase in noncontrolling interests resulting from the business combination completed among Fresenius Health Partners, Inc. (FHP), InterWell Health LLC, and Cricket Health, Inc. (Cricket) (for further information on this business combination, see note 3). Previously, these changes in noncontrolling interests were combined within the line item “Purchase/sale of noncontrolling interests” due to immateriality. At the end of February 2022, Russia invaded Ukraine (Ukraine War), triggering sanctions by various countries against Russia. The resulting uncertainties led to a further deterioration in the macroeconomic environment for 2022, resulting in accelerating inflationary developments, supply chain disruptions and capital market volatility. These developments, combined with complications in the labor market, in particular in the United States (U.S.), had a negative impact on the Company’s operations, specifically within health care services revenue and costs of revenues as well as selling, general & administrative expenses, with related effects flowing through to net income. The Company continues to monitor the situation. As of December 31, 2022, the Company’s assets in Russia and Ukraine totaled less than 1% of the Company’s total assets. At February 21, 2023, the Management Board authorized the consolidated financial statements for issue and passed them through to the Supervisory Board for review and authorization. Significant accounting policies a) Principles of consolidation and composition of the group The financial statements of consolidated entities have been prepared using uniform accounting methods in accordance with IFRS 10, Consolidated Financial Statements (IFRS 10). Acquisitions of companies are accounted for under the acquisition method. Besides FMC AG & Co. KGaA, the consolidated financial statements include all material subsidiaries according to IFRS 10 over which the Company has control. FMC AG & Co. KGaA controls an entity if it has power over the entity through existing rights that give the Company the current ability to direct the activities that significantly affect the entity’s return. In addition, the Company is exposed to, or has rights to, variable returns from the involvement with the entity and the Company has the ability to use its power over the entity to affect the amount of the Company’s return. The equity method is applied in accordance with IAS 28, Investments in Associates and Joint Ventures (IAS 28). Generally, equity method investees are entities in which FMC AG & Co. KGaA, directly or indirectly, holds 50% or less of the voting power and can exercise significant influence over their financial and operating policies. While the Company’s investment in Vifor Fresenius Medical Care Renal Pharma Ltd. makes up a large portion of its equity method investees, there are no investments in equity method investees that are individually material to the Company. Acquisitions of companies are accounted for in accordance with IFRS 3, Business Combinations (IFRS 3) at the date of acquisition. Initially, all identifiable assets and liabilities of subsidiaries as well as the noncontrolling interests are recognized at their fair values. The cost is then compared with the fair value of the assets acquired and liabilities assumed. Any remaining balance is recognized as goodwill and is tested at least once a year for impairment. Generally, adjustments made to the fair value of identifiable assets and liabilities subsequent to final purchase price allocation are recognized immediately in profit or loss. Intercompany revenues, expenses, income, receivables, payables, accruals, provisions and commitments and contingencies, are eliminated. Profits and losses on items of property, plant and equipment and inventory acquired from other group entities are also eliminated. Deferred tax assets and liabilities are recognized on temporary differences resulting from consolidation procedures. Noncontrolling interest (NCI) is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent and is recognized at its fair value at the date of first consolidation using the full goodwill method. Profits and losses attributable to the noncontrolling interests are separately disclosed in the consolidated statements of income. Summarized financial information relating to our U.S.-based subsidiary, InterWell Topco L.P. (NewCo), in which the noncontrolling interests hold 17% and 8%, respectively, can be found in note 3. The book value of these noncontrolling interests at December 31, 2022 was $188,008 (€176,269). The Company writes put options on certain noncontrolling interests. A portion of these put options relate to dialysis clinics in which nephrologists or nephrology groups own an equity interest. In addition, as part of the transaction with Cricket, and InterWell Health LLC, the Company also granted put options to minority shareholders of the newly created value-based kidney care entity (see note 3 for further information). Generally, the put options associated with this business model are valid for an unlimited time. Accordingly, the put options represent a long-term investment into a dialysis clinic for the NCI holder. The put options provide for settlement in cash. For these put options, IAS 32, Financial Instruments: Presentation (IAS 32) paragraph 23 requires the Company to recognize a liability for the present value of the exercise price of the option. The put option liability is recorded in other current provisions and other current liabilities and other non-current provisions and other non-current liabilities at present value of the redemption amount at the balance sheet date. The Company believes the accounting treatment of the changes to the put option liability under IFRS to this date has not been finally clarified. In the absence of IFRS guidance specifically applicable to the accounting for put options on NCI, the Company, in line with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8) paragraph 10, applied the present access method. According to the present access method, NCI are recorded in equity when the risks and rewards of ownership reside with the NCI holders. The initial recognition of the put option liability, as well as valuation differences, is recorded in equity with no impact to the income statement (see note 1 h)). This presentation results in information that is relevant to the economic decision-making needs of users and to provide reliable financial information as the Company considers these NCI with written put options as equity holders and accordingly attributes net income to NCI. For further information regarding the valuation of the put option liabilities, see note 23. The consolidated financial statements for 2022 include FMC AG & Co. KGaA as well as 2,346 companies (2021: 2,343). In 2022, 79 companies were accounted for by the equity method (2021: 50), 68 companies were first-time consolidations (2021: 90) and 27 companies were deconsolidated (2021: 52). The principal subsidiaries of the Company are those with the most significant contribution to the Company’s revenue, net income or net assets. The Company’s interest in these subsidiaries for the years ended December 31, 2022 and 2021 are listed in the table below: Principal subsidiaries Name Country Main activity Ownership Fresenius Medical Care (FMC) Argentina S.A. Argentina Provision of health care services 100 % Sale of health care products FMC Australia Pty. Ltd. Australia Provision of health care services 100 % Sale of health care products FMC Colombia S.A. Colombia Provision of health care services 100 % Sale of health care products FMC Deutschland GmbH Germany Sale of health care products 100 % Production of health care products Research and development FMC France S.A.S. France Sale of health care products 100 % FMC GmbH Germany Sale of health care products 100 % FMC Holdings, Inc. USA Provision of health care services 100 % Sale of health care products Production of health care products Research and development FMC Italia S.p.A. Italy Sale of health care products 100 % FMC Korea Ltd. South Korea Sale of health care products 100 % FMC Ltda. Brazil Sale of health care products 100 % FMC Shanghai Ltd. China Sale of health care products 100 % FMC (U.K.) Ltd. United Kingdom Provision of health care services 100 % Sale of health care products Production of health care products National Medical Care of Spain, S.A.U. Spain Provision of health care services 100 % NephroCare Portugal, S.A. Portugal Provision of health care services 100 % Sale of health care products JSC Fresenius SP Russian Federation Provision of health care services 100 % Sale of health care products The complete list of participations in affiliated and associated companies of FMC AG & Co. KGaA will be submitted to the Federal Gazette and the electronic companies register. For 2022, the following fully consolidated German subsidiaries of the Company will apply the exemption provided in Section 264 (3) or Section 264b of the HGB and therefore will be exempt from applying certain legal requirements to prepare notes to the statutory standalone financial statements and a management report as well as the requirements of an independent audit and public disclosure. Companies exempt from applying certain legal requirements Name of the company Registered office of the company Ärztliches Versorgungszentrum Ludwigshafen GmbH im Lusanum Ludwigshafen am Rhein, Germany DiZ München Nephrocare GmbH Munich, Germany ET Software Developments GmbH Heidelberg, Germany Fresenius Medical Care Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Data Solutions GmbH Berlin, Germany Fresenius Medical Care Deutschland GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Frankfurt am Main GmbH Frankfurt am Main, Germany Fresenius Medical Care GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Investment GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Zwei Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Ventures GmbH Bad Homburg v. d. Höhe, Germany Medizinisches Versorgungszentrum Berchtesgaden GmbH Berchtesgaden, Germany MVZ Gelsenkirchen-Buer GmbH Gelsenkirchen, Germany Nephrocare Ahrensburg GmbH Ahrensburg, Germany Nephrocare Augsburg GmbH Augsburg, Germany Nephrocare Berlin-Weißensee GmbH Berlin, Germany Nephrocare Betzdorf GmbH Betzdorf, Germany Nephrocare Bielefeld GmbH Bielefeld, Germany Nephrocare Buchholz GmbH Buchholz, Germany Nephrocare Daun GmbH Daun, Germany Nephrocare Deutschland GmbH Bad Homburg v. d. Höhe, Germany Nephrocare Döbeln GmbH Döbeln, Germany Nephrocare Dortmund GmbH Dortmund, Germany Nephrocare Friedberg GmbH Friedberg, Germany Nephrocare Grevenbroich GmbH Grevenbroich, Germany Nephrocare Hagen GmbH Hagen, Germany Nephrocare Hamburg-Altona GmbH Hamburg, Germany Nephrocare Hamburg-Barmbek GmbH Hamburg, Germany Nephrocare Hamburg-Süderelbe GmbH Hamburg, Germany Nephrocare Ingolstadt GmbH Ingolstadt, Germany Nephrocare Kaufering GmbH Kaufering, Germany Nephrocare Krefeld GmbH Krefeld, Germany Nephrocare Lahr GmbH Lahr, Germany Nephrocare Leverkusen GmbH Leverkusen, Germany Nephrocare Ludwigshafen GmbH Ludwigshafen am Rhein, Germany Nephrocare Mannheim GmbH Mannheim, Germany Nephrocare Mettmann GmbH Mettmann, Germany Nephrocare Mönchengladbach GmbH Mönchengladbach, Germany Nephrocare Mühlhausen GmbH Mühlhausen, Germany Nephrocare München-Ost GmbH Munich, Germany Nephrocare Münster GmbH Münster, Germany Nephrocare MVZ Aalen GmbH Aalen, Germany Nephrocare Oberhausen GmbH Oberhausen, Germany Nephrocare Papenburg GmbH Papenburg, Germany Nephrocare Pirmasens GmbH Pirmasens, Germany Nephrocare Püttlingen GmbH Püttlingen, Germany Nephrocare Recklinghausen GmbH Recklinghausen, Germany Nephrocare Rostock GmbH Rostock, Germany Nephrocare Salzgitter GmbH Salzgitter, Germany Nephrocare Schrobenhausen GmbH Schrobenhausen, Germany Nephrocare Schwandorf-Regenstauf GmbH Schwandorf, Germany Nephrocare Starnberg GmbH Starnberg, Germany Nephrocare Wetzlar GmbH Wetzlar, Germany Nephrocare Witten GmbH Witten, Germany Nephrologisch-Internistische Versorgung Ingolstadt GmbH Ingolstadt, Germany Nova Med GmbH Vertriebsgesellschaft für medizinischtechnische Geräte und Verbrauchsartikel Bad Homburg v. d. Höhe, Germany VIVONIC GmbH Sailauf, Germany Zentrum für Nieren- und Hochdruckkrankheiten Bensheim GmbH Bensheim, Germany b) Cash and cash equivalents Cash and cash equivalents comprise cash funds and all short-term investments (measured at fair value through profit and loss) with original maturities of up to three months. Short-term investments are highly liquid and readily convertible into known amounts of cash. The risk of changes in value is insignificant. c) Trade accounts and other receivables from unrelated parties Trade accounts and other receivables from unrelated parties are recognized initially at fair value and subsequently at amortized cost. For information regarding expected credit losses, see note 2 c). d) Inventories Inventories are stated at the lower of cost (determined by using the average or first-in, first-out method) or net realizable value (see note 8). Costs included in inventories are based on invoiced costs and/or production costs as applicable. Included in production costs are material, direct labor and production overhead and applicable depreciation charges. e) Property, plant and equipment Property, plant, and equipment are stated at cost less accumulated depreciation (see note 10). Maintenance and repair costs (day-to-day servicing) are expensed as incurred. The Company recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing parts and major inspections if it is probable that the future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. Depreciation on property, plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets ranging from 4 3 f) Leases A lease is defined as a contract that conveys the right to use an underlying asset for a period of time in exchange for consideration. According to IFRS 16, a contract is or contains a lease if: ● the underlying asset is identified in the contract, and ● the customer has both the right to direct the identified asset’s use and to obtain substantially all the economic benefits from that use. Under IFRS 16, the Company is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments for almost all leases. The Company applies both the short-term and low-value lease exemption. These leases are exempt from balance sheet recognition and lease payments will be recognized as expenses over the lease term. IFRS 16 is not applied to leases of intangible assets. Lease liabilities Lease liabilities are initially recognized at the present value of the following payments: ● fixed lease payments (including in-substance fixed payments), less any lease incentives receivable, ● variable lease payments (linked to an index or interest rate), ● expected payments under residual value guarantees, ● the exercise price of purchase options, where exercise is reasonably certain, ● lease payments in optional renewal periods, where exercise of extension options is reasonably certain, and ● penalty payments for the termination of a lease, if the lease term reflects the exercise of the respective termination option. Lease payments are discounted using the implicit interest rate underlying the lease if this rate can be readily determined. Otherwise, the incremental borrowing rate of the lessee is used as the discount rate. Lease liabilities are subsequently measured at amortized cost using the effective interest method. Furthermore, lease liabilities may be remeasured due to lease modifications or reassessments of the lease. For lease contracts that include both lease and non-lease components that are not separable from lease components, no allocation is performed. Each lease component and any associated non-lease components are accounted for as a single lease. If the lease contracts include the lease and non-lease costs separately, the lease contract costs are divided into lease and non-lease components. Right-of-use assets The Company recognizes right-of-use assets at the commencement date of the respective lease. Right-of-use assets are stated at cost less accumulated depreciation. Upon initial recognition, cost comprises of: ● the initial lease liability amount, ● initial direct costs incurred when entering into the lease ● (lease) payments before commencement date of the respective lease, and ● an estimate of costs to dismantle and remove the underlying asset, ● less any lease incentives received. Right-of-use assets are depreciated over the shorter of the lease term or the useful life of the underlying asset using the straight-line method. Where a lease agreement includes a transfer of ownership at the end of the lease term or the exercise of a purchase option is deemed reasonably certain, right-of-use assets are depreciated over the useful life of the underlying asset using the straight-line method. In addition, right-of-use assets are reduced by impairment losses, if any, and adjusted for certain remeasurements. Right-of-use assets are classified into right-of-use assets relating to land, buildings and improvements or machinery and equipment. In addition, prepayments on right-of-use assets are presented separately (see note 21). g) Intangible assets and goodwill Intangible assets such as non-compete agreements, technology, distribution agreements, patents, licenses to treat, licenses to manufacture, distribute and sell pharmaceutical drugs, exclusive contracts and exclusive licenses, trade names, management contracts, application software, acute care agreements, customer relationships and emission certificates are recognized and reported apart from goodwill (see note 11). If acquired, those intangible assets are recorded at estimated fair value at the date of the acquisition. Patient relationships, however, are not reported as separate intangible assets due to the missing contractual basis but are part of goodwill. Expenditures related to application software, either hosted by the Company or within a software as a service arrangement, that fully meet the criteria for the recognition of an intangible asset set out in IAS 38, Intangible Assets (IAS 38) are capitalized as intangible assets. Goodwill and identifiable intangibles with indefinite useful lives are not amortized but tested for impairment annually or when an event becomes known that could trigger an impairment. The Company identified certain trade names and qualified management contracts as intangible assets with indefinite useful lives because there is no foreseeable limit to the period over which those assets are expected to generate net cash inflows for the Company. Intangible assets with finite useful lives are amortized over their respective useful lives to their residual values. The Company amortizes non-compete agreements over their useful lives which, on average, are 7 years. Technology is amortized over its average useful lives of 12 years. Internally developed intangibles are amortized on a straight-line basis over their average useful lives of 6 years. Licenses to manufacture, distribute and sell pharmaceutical drugs, exclusive contracts and exclusive licenses are amortized over their useful lives which on average is 12 years. Customer relationships are amortized over their average useful lives of 16 years. All other intangible assets are amortized over their weighted average useful lives of 7 years. The weighted average useful life of all amortizable intangible assets is 9 years. Intangible assets with finite useful lives are evaluated for impairment when events have occurred that may give rise to an impairment (see note 1 o)). To perform the annual impairment test of goodwill, the Company identified its groups of cash generating units (CGUs) and determined their carrying value by assigning the operating assets and liabilities, including the existing goodwill and intangible assets, to those groups of CGUs. Groups of CGUs reflect the lowest level on which goodwill is monitored for internal management purposes. One group of CGUs was identified in each of the Company’s operating segments. For the purpose of goodwill impairment testing, all corporate assets and liabilities are allocated to the groups of CGUs. At least once a year, the Company compares the recoverable amount of each group of CGUs to the group of CGUs’ carrying amount. The recoverable amount is defined as the higher of the value in use or the fair value less cost of disposal of a group of CGUs. In the first step, the value in use of the group of CGUs is determined using a discounted cash flow approach based upon the cash flow expected to be generated by the group of CGUs. In case that the value in use of the group of CGUs is less than its carrying amount and the fair value less cost of disposal is not estimated to be higher than the value in use, the difference is recorded as an impairment of the carrying amount of the goodwill. For further information see note 2 a). h) Financial instruments The Company classifies its financial instruments in accordance with IFRS 9 in the following measurement categories: at amortized cost, at fair value through profit and loss (FVPL) and at fair value through other comprehensive income (FVOCI). Financial assets are classified depending on the business model in which the financial assets are held and the contractual terms of the cash flows. Financial assets are only reclassified when the business model for managing those assets changes. During the reporting period, no financial instruments were reclassified. Purchases and sales of financial assets are recognized or derecognized on the trading date. The Company makes use of the fair value option, which allows financial instruments to be classified at FVPL upon initial recognition, in very rare cases. At initial recognition financial assets and financial liabilities are measured at fair value. Subsequent measurement is either at cost, FVPL or FVOCI. In general, financial liabilities are classified and subsequently measured at amortized cost, with the exception of contingent consideration resulting from a business combination, put option liabilities as well as derivative financial liabilities. Investments in equity instruments are recognized and subsequently measured at fair value. The Company’s equity investments are not held for trading. In general, changes in the fair value of equity investments are recognized in the income statement. However, at initial recognition the Company elected, on an instrument-by-instrument basis, to represent subsequent changes in the fair value of individual strategic equity investments in other comprehensive income (loss) (OCI). The Company invested in several debt securities, with the objective to achieve both collecting contractual cash flows and selling the financial assets. All debt securities are consequently measured at fair value. Some of these securities give rise on specified dates to cash flows that are solely payments of principal and interest. These securities are subsequently measured at FVOCI. Other securities are measured at FVPL. The Company, as option writer of existing put options, can be obligated to purchase the noncontrolling interests held by third parties. The obligations are in the form of put liabilities and are exercisable at the third-party owners’ discretion within specified periods or upon the occurrence of certain events as outlined in each specific put option. If these put option liabilities were exercised, the Company would be required to purchase all or part of third-party owners’ noncontrolling interests at the appraised fair value at the time of exercise. The initial recognition and subsequent measurement are recognized in equity of the Company. For further information related to the estimation of these fair values, see note 23. Certain put option arrangements contain contingent triggers based on changes in legislation, which the Company has concluded are not genuine using the guidance in IFRS 9 B4.1.18 and IAS 32.25. The Company considers this subset of contracts as being non-genuine as the trigger in these clauses is considered to be an event that is extremely rare, highly abnormal and very unlikely to occur. Therefore, the Company has not recorded a liability on the balance sheet relating to this subset of puts option contracts. Derivative financial instruments which primarily include foreign currency forward contracts are recognized as assets or liabilities at fair value in the balance sheet (see note 23). From time to time, the Company may enter into other types of derivat |
Significant judgments and sourc
Significant judgments and sources of estimation uncertainties | 12 Months Ended |
Dec. 31, 2022 | |
Significant judgments and sources of estimation uncertainties | |
Significant judgments and sources of estimation uncertainties | 2. The Company’s reported results of operations, financial position and net assets are sensitive to significant judgments, assumptions and estimates that are the basis for its financial statements. The critical accounting policies, the judgments made in the creation and application of these policies and the sensitivities of reported results to changes in accounting policies, significant judgments and estimates are factors to be considered along with the Company’s financial statements. In the opinion of the Management of the Company, the following accounting policies, significant judgments and sources of estimation uncertainties are critical for the consolidated financial statements in the present economic environment. a) The growth of the business through acquisitions has created a significant amount of intangible assets, including goodwill, trade names, management contracts, non-compete agreements, technology and customer relationships as well as licenses and distribution agreements. In addition, the Company recognizes internally developed intangible assets related to research and development and software development projects. At December 31, 2022, the carrying amount of goodwill and non-amortizable intangible assets amounted to €16,066,642 (€14,588,180 at December 31, 2021) representing approximately 45% and 42% of the Company’s total assets at December 31, 2022 and 2021, respectively. In accordance with IAS 36, the Company performs an impairment test of goodwill and non-amortizable intangible assets at least once a year for each group of CGUs or more frequently if the Company becomes aware of events that occur or if circumstances change that would indicate the carrying value may not be recoverable (see also note 1 g). To comply with IFRS to determine possible impairments of these assets, the value in use of the group of CGUs is first compared to the group of CGUs’ carrying amount. In cases where the value in use of the group of CGUs is less than its carrying amount and the fair value less cost of disposal is not estimated to be higher than the value in use, the difference is recorded as an impairment of the carrying amount of the group of CGUs. To evaluate the recoverability of intangible assets with indefinite useful lives, the Company compares the recoverable amounts of the smallest identifiable group of assets that generate largely independent cash inflows with their carrying values.An intangible asset’s fair value is determined using a discounted cash flow approach or other methods, if appropriate. The value in use of each group of CGUs is determined using estimated future cash flows for the unit discounted by a pre-tax discount rate (‘‘WACC’’) specific to that group of CGUs. The Company’s WACC consists of a basic rate adjusted by a weighted average country risk rate and, if appropriate, by a factor to reflect higher risks associated with the cash flows from recent material acquisitions within each group of CGUs, until they are appropriately integrated as well as country-specific risks identified within a group of CGUs. In 2022, the Company’s WACC was impacted by the world-wide prevailing increase of interest rates as well as the impact of increased macro-economic uncertainties on country risk rates and other WACC parameters. Estimating the future cash flows involves significant assumptions, especially regarding future reimbursement rates and sales prices, number of treatments, sales volumes and costs. In 2022, the estimates were largely impacted by the further deterioration of the macroeconomic environment, including complications in the labor market, in particular in the U.S., as discussed in note 1, above. The key assumptions represent management’s assessment of future trends and have been based on historical data from both external and internal sources. In determining discounted cash flows for every group of CGUs, the Company utilizes its three-year budgets, projections for years four to ten The annual impairment test performed as of October 1, 2022 did not result in an impairment. The market capitalization of the Company decreased by 46% to €8,969,649 as of December 31, 2022, from €16,742,268 as of December 31, 2021. Total FMC AG & Co. KGaA shareholders’ equity increased by 10% to €13,989,453 as of December 31, 2022, from €12,698,783 as of December 31, 2021, driven primarily by an increase in other comprehensive income (loss), including foreign currency translation effects in the amount of €826,847 and an actuarial gain recognized (mainly attributable to adjustments to the discount rate for pension liabilities). In consideration of this decline in market capitalization and an increase in interest rates, the Company performed an impairment test as of December 31, 2022, in addition to the annual impairment test as of October 1, 2022. WACC parameters were updated and the residual value growth rate of the Asia-Pacific CGU was reduced from 4% to 1% in this additional goodwill impairment test performed as of December 31, 2022, while all other CGU residual value growth rates and cash flow projections remained unchanged as compared to the annual impairment test performed as of October 1, 2022. The goodwill impairment test performed as of December 31, 2022 did not result in any impairment. The following table shows the key assumptions of value-in-use calculations: Key assumptions (1) in % North America EMEA Asia-Pacific (2) Latin America (2) 2022 2021 2022 2021 2022 2021 2022 2021 Average revenue growth in ten year projection period mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit Average EBIT growth in ten year projection period high-single-digit mid-single-digit high-single-digit mid-single-digit mid-single-digit mid-single-digit low-double-digit low-double-digit Residual value growth 1.00 1.00 1.00 1.00 1.00 4.00 1.60 1.60 Pre-tax WACC 8.05 5.78 10.44 7.14 8.76 5.34 12.37 - 26.14 10.62 - 19.87 After-tax WACC 6.39 4.58 8.08 5.23 6.38 4.91 8.94 - 22.71 7.00 - 16.25 (1) The Company’s key assumptions are presented based upon the goodwill impairment tests performed as of December 31, 2022 and October 1, 2021. (2) There are no reasonably possible changes in assumptions that would lead to an impairment in these groups of CGUs. An overview of the carrying amounts of goodwill and intangibles with indefinite useful life for each group of CGUs is shown in note 11. A prolonged downturn in the health care industry with lower than expected increases in reimbursement rates and/or higher than expected costs for providing health care services and for procuring and selling health care products or a significant increase of mortality of patients with chronic kidney diseases which may be attributable to COVID-19 have and could continue to adversely affect the Company’s estimated future cash flows. Future adverse changes in a cash-generating unit’s economic environment of a group of CGUs could affect the country specific risk rate and therefore the discount rate. Equally an increase of the general interest rate level could affect the base rate and therefore the discount rate. A decrease in the estimated future cash flows and/or a decline in the cash-generating units economic environment could result in impairment charges to goodwill and other intangible assets with indefinite useful life which could materially and adversely affect the Company’s future financial position and operating results. Additionally, the recoverable amount of the North America group of CGUs and the EMEA group of CGUs exceeded the carrying amount by €2,451,097 and €1,071,196, respectively, as of December 31, 2022 (2021: €17,109,467 and €1,956,852, respectively). The following table shows the reasonable amounts by which the key assumptions would need to change individually that the recoverable amount equals the carrying amount: Sensitivity analysis (1) Change in percentage points North America EMEA 2022 2021 2022 2021 Pre-tax WACC 0.71 3.82 2.11 2.95 After-tax WACC 0.56 2.91 1.56 2.09 Operating income margin of each projection year (0.97) (5.22) (2.50) (3.49) (1) In 2020, as a result of the annual impairment test of goodwill, the Latin America group of CGUs recognized an impairment of goodwill in the amount of €193,978 and trade names in the amount of €490 to reduce the carrying amount of goodwill and trade names (together the Impairment Loss in the Latin America Segment). The impairment was driven by a macro-economic downturn and increasing risk adjustment rates for certain countries in Latin America. b) Legal contingencies From time to time, during the ordinary course of operations as well as due to acquisitions, the Company is party to litigation and arbitration and is subject to investigations relating to various aspects of its business (see note 22). The Company regularly analyzes current information about such claims for probable losses and provides accruals for such matters, including the estimated legal expenses and consulting services in connection with these matters, as appropriate. The Company utilizes its internal legal department as well as external resources for these assessments. In making the decision regarding the need for loss accrual, the Company considers the degree of probability of an unfavorable outcome and its ability to make a reasonable estimate of the amount of loss. The filing of a suit or formal assertion of a claim or assessment, or the disclosure of any such suit or assertion, does not necessarily indicate that accrual of a loss is appropriate. The outcome of these matters may have a material adverse effect on the results of operations, financial position and net assets of the Company. c) Trade accounts and other receivables from unrelated parties and expected credit losses Trade accounts and other receivables from unrelated parties are a substantial asset of the Company and the expected credit losses are based upon a significant estimate made by management. Trade accounts and other receivables from unrelated parties were €3,574,270 and €3,409,061 at December 31, 2022 and 2021, respectively, net of expected credit losses of €168,681 at December 31, 2022 and €163,929 at December 31, 2021. The Company sells health care products directly or through distributors in around 150 countries and provides health care services in around 50 countries. Most payors are government institutions or government-sponsored programs with significant variations between the countries and even between payors within one country in local payment and collection practices. Receivables resulting from health care services are recognized and billed at amounts estimated to be collectable under government reimbursement programs and reimbursement arrangements with third party payors. U.S. Medicare and Medicaid government programs are billed at pre-determined net realizable rates per treatment that are established by statute or regulation. Revenues for non-governmental payors with which the Company has contracts or letters of agreement in place are recognized at the prevailing contract rates. The remaining non-governmental payors are billed at the Company’s standard rates for services and, in the Company’s North America Segment, a contractual adjustment is recorded to recognize revenues based on historic reimbursement. The contractual adjustment and the expected credit losses are reviewed quarterly for their adequacy. No material changes in estimates were recorded for the contractual allowance in the periods presented. The collectability of receivables is reviewed locally on a regular basis, generally monthly. For further information, see note 1 k). In the Company’s North America Segment operations, the collection process is usually initiated shortly after service is provided or upon the expiration of the time provided by contract. For Medicare and Medicaid, once the services are approved for payment, the collection process begins upon the expiration of a period of time based upon experience with Medicare and Medicaid. In all cases where co-payment is required the collection process usually begins within 30 days after service has been provided. In those cases where claims are approved for amounts less than anticipated or if claims are denied, the collection process usually begins upon notice of approval of the lesser amounts or upon denial of the claim. The collection process can be confined to internal efforts, including the accounting and sales staffs and, where appropriate, local management staff. If appropriate, external collection agencies may be engaged. Public health institutions in a number of countries outside the U.S. require a significant amount of time until payment is made because a substantial number of payors are government entities whose payments are often determined by local laws and regulations and budget constraints. Depending on local facts and circumstances, the period of time to collect can be quite lengthy. In those instances where there are commercial payors, the same type of collection process is initiated as in the North America Segment. Due to the number of subsidiaries and different countries that the Company operates in, the Company’s policy of determining when an individual expected credit loss is required considers the appropriate individual local facts and circumstances that apply to an account. While payment and collection practices vary significantly between countries and even agencies within one country, government payors usually represent low to moderate credit risks. It is the Company’s policy to determine when receivables should be classified as bad debt on a local basis taking into account local payment practices and local collection experience. An individual expected credit loss is calculated locally if specific circumstances indicate that amounts will not be collectible. Receivables where the expected credit losses are not assessed individually are grouped based on geographical regions and the impairment is assessed based on macroeconomic indicators such as credit default swaps. For more information regarding the impairment on trade accounts and other receivables from unrelated parties please refer to note 1 i). When all efforts to collect a receivable, including the use of outside sources where required and allowed, have been exhausted, and after appropriate management review, a receivable deemed to be uncollectible is considered a bad debt and written off. Write offs are taken on a claim-by-claim basis. Due to the fact that a large portion of its reimbursement is provided by public health care organizations and private insurers, the Company expects that most of its accounts receivables will be collectible, albeit potentially more slowly outside the North America Segment. A significant change in the Company’s collection experience, deterioration in the aging of receivables and collection difficulties could require that the Company increases its estimate of the expected credit losses. Any such additional bad debt charges could materially and adversely affect the Company’s future operating results. If, in addition to the Company’s existing expected credit losses, 1% of the gross amount of the Company’s trade accounts and other receivables from unrelated parties as of December 31, 2022 were uncollectible through either a change in the Company’s estimated contractual adjustment or revised estimate of the collectability, the Company’s operating income for 2022 would have been reduced by approximately 2.5%. The following table shows the portion of major debtors or debtor groups of trade accounts and other receivables from unrelated parties as of December 31, 2022 and 2021. Other than U.S. Medicare and Medicaid, no single debtor accounted for more than 5% of total trade accounts and other receivables from unrelated parties in either of these years. Composition of trade accounts and other receivables from unrelated parties in % December 31, 2022 2021 U.S. Government health care programs 31 % 32 % U.S. commercial payors 18 % 15 % U.S. hospitals 5 % 4 % Self-pay of U.S. patients 2 % 2 % Other North America Segment payors 2 % 3 % Product customers and health care payors outside the North America Segment 42 % 44 % Total 100 % 100 % d) Self-insurance programs Under the Company’s insurance programs for professional, product and general liability, auto liability, worker’s compensation and medical malpractice claims, the Company’s largest subsidiary which is located in the U.S. is partially self-insured for professional liability claims. For all other coverages, the Company assumes responsibility for incurred claims up to predetermined amounts above which third party insurance applies. Reported liabilities for the year represent estimated future payments of the anticipated expense for claims incurred (both reported and incurred but not reported) based on historical experience and existing claim activity. This experience includes both the rate of claims incidence (number) and claim severity (cost) and is combined with individual claim expectations to estimate the reported amounts. For further information, see note 12 and note 15. e) Level 3 financial instruments Put option liabilities, variable payments outstanding for acquisitions and equity investments are recognized at their fair value. Each put option contract contains specific clauses related to the terms of exercisability, which require significant judgment in order to determine appropriate liability recognition and classification. For further information related to the significant judgments and estimates related to these instruments and their fair values, see notes 1 h) and 23. f) Income taxes The Company is subject to ongoing and future tax audits in the U.S., Germany and other jurisdictions. Different interpretations of tax laws, particularly due to the Company’s international activities, may lead to potential additional tax payments or tax refunds for prior years. To consider income tax liabilities or income tax receivables of uncertain tax assessments management’s estimations are based on experiences with previous tax audits and local tax rules of the respective tax jurisdiction and the interpretation of such. Differences between actual results and management’s estimates or future changes in these estimates may have an impact on future tax payments or tax refunds. Estimates are revised in the period in which there is sufficient evidence to revise the assumption. For further information to estimates related to the recoverability of deferred taxes, see notes 1 n) and 4 g). g) Business combinations The Company measures the noncontrolling interest in an acquisition at fair value using the full goodwill method and classifies costs related to its business combinations within general and administrative expense. In determining whether an intangible asset related to a business combination is identifiable and should be separated from goodwill, significant judgment is required. Additionally, estimation of the acquisition-date fair values of identifiable assets acquired and liabilities assumed also involves significant judgment. The applicable measurements and inputs used in this estimation (including revenue growth rates, gross profit margin adjusted for synergy assumptions associated with manufacturing savings and the discount rate) are based upon information available at the acquisition date using expectations and assumptions that management deems reasonable. Such judgments, estimates and assumptions could materially affect the Company’s business, results of operations and financial condition, primarily due to: ● Fair values assigned to assets subject to depreciation and amortization directly impact the depreciation and amortization recorded in the Company’s consolidated statements of income in periods subsequent to a related acquisition. ● Any subsequent measurement resulting in a decrease in the estimated fair values of assets acquired may result in impairment. ● Subsequent changes resulting in an increase or decrease to the estimated fair values of liabilities assumed may result in additional expense or income, respectively. For further information on business combinations, see note 3. h) COVID-19 Due to the global implications of the COVID-19 pandemic as well as an increase in mortality of patients with chronic kidney diseases and an increase in persons experiencing renal failure, management judgments and estimates are subject to increased uncertainty. Actual amounts may differ from judgments and estimates made by management and changes could have a material impact on the Company’s consolidated financial statements. The Company included all available information on the expected economic developments and country-specific governmental mitigation measures when updating its judgments and estimates. This information was also included in the analysis of the recoverability and collectability of assets. It is difficult to predict the duration and/or significance of the COVID-19 pandemic’s impact on assets, liabilities, results of operations and cash flows. The Company bases its estimates and assumptions on existing knowledge and information available and assumes that the COVID-19 pandemic will begin to ease as vaccine programs continue globally. For further information on the impacts of COVID-19 related to government relief, see note 4 h). i) Leases and interest rate determination IFRS 16 requires the Company to make judgments that affect the valuation of lease liabilities as well as of right- of-use assets (see notes 21 and 23), including the determination of which contracts are within the scope of IFRS 16, identifying the contract lease term and determining the incremental borrowing rate. The lease term is determined as the non-cancellable period of a lease, together with periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. During the “reasonably certain” assessments, the Company considers all relevant facts and circumstances that create an economic incentive for the Company to exercise, or not to exercise, an option, including any expected changes in facts and circumstances (e.g., contract-, object-, entity- or market-specific factors) from the commencement date until the exercise date of the option. Other examples of considered terms are termination penalties or costs relating to the termination of the lease, such as negotiation costs, relocation costs, costs of identifying another lease asset suitable for the Company’s needs, costs of integrating a new asset into the Company’s operations and termination penalties and similar costs, including costs associated with returning the underlying asset in a contractually specified condition or to a contractually specified location. Additionally, the Company’s historical practice regarding the period over which it has typically used particular types of assets, and its economic reasons for doing so, is also relevant. Unrecognized extension options are shown as potential future cash outflows (see note 21). The Company uses the rate implicit in the lease if agreed with the lessor and/or available, while the incremental borrowing rate is used for all other leases. The incremental borrowing rate is defined as the rate that the lessee would have to pay on the commencement date of the lease for a similar loan (regarding its term, security, underlying asset, and economic environment). The incremental borrowing rate is determined when the Company initiates a lease contract or changes an existing lease. The interest rate is calculated based on following components: available interest rate sampling points, group risk margins, shadow rating (credit risk) margins, country risk margins, handling margins and other risk margins. The Company is subject to residual value guarantees in certain lease contracts, primarily real estate contracts, for which it is the lessee. Under the terms of these leases, the Company has the option to remarket the underlying leased properties to satisfy its residual value guarantee obligations at the end of the lease term. At the end of each reporting period, the expected residual values are compared to the estimated fair market value of the underlying leased assets utilizing third-party valuations. For additional information regarding residual value guarantees in certain lease contracts, see note 22. |
Acquisitions, business combinat
Acquisitions, business combinations, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions, business combinations, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities | |
Acquisitions, business combinations, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities | 3. Acquisitions, business combinations, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities The Company completed acquisitions, investments (including debt securities) and the purchase of intangible assets in the amount of €745,998, €628,411 and €406,644 in 2022, 2021 and 2020, respectively. In 2022, €164,774 was paid in cash and €581,224 were assumed obligations and non-cash consideration. In 2021, €563,252 was paid in cash and €65,159 were assumed obligations and non-cash consideration. In 2020, €355,386 was paid in cash and €51,258 were assumed obligations and non-cash consideration. Acquisitions The Company made acquisitions of €570,698, €389,965 and €265,612 in 2022, 2021 and 2020, respectively in order to expand the scope of its services and to increase its market shares in the respective countries. Due to cash acquired as a result of the InterWell Health business combination discussed below, the Company received €10,526 in cash for acquisitions and assumed obligations or provided non-cash consideration in the amount of €581,224 in 2022. In 2021, €324,806 was paid in cash and €65,159 were assumed obligations and non-cash consideration. In 2020, €214,836 was paid in cash and €50,776 were assumed obligations and non-cash consideration. In 2022, the Company’s acquisition activities mainly included the business combination of InterWell Health, discussed below, as well as the acquisition of dialysis clinics and other health care service facilities in the normal course of operations. In 2021 and 2020 the Company’s acquisition spending was driven primarily by the purchase of dialysis clinics. Impacts on consolidated financial statements from acquisitions The assets and liabilities of all acquisitions were recorded at their estimated fair value at the date of the acquisition and are included in the Company’s financial statements and operating results from the effective date of acquisition. The measurement period adjustments from the previous year’s acquisitions did not have a significant impact on the consolidated financial statements in 2022. The excess of the total acquisition costs over the fair value of the net assets acquired resulted in goodwill of €705,524 and €444,835 at December 31, 2022 and 2021, respectively. The purchase price allocations for all collectively and individually non-material acquisitions for 2022 are not yet finalized. The Company is in the process of obtaining and evaluating the information necessary for the purchase price allocations, primarily related to property, plant and equipment, intangible assets, accounts receivable and other liabilities. In 2022, based on preliminary purchase price allocations, the Company recorded €705,524 of goodwill and €54,909 of intangible assets, which represent the share of both controlling and noncontrolling interests. Goodwill arose principally due to the fair value of the established streams of future cash flows for these acquisitions. Business combinations during 2022 decreased the Company’s net income attributable to shareholders of FMC AG & Co. KGaA (Net Income) by €14,889, excluding the costs of the acquisitions, and revenue increased by €16,988. Total assets increased €653,860 mainly due to business combinations, including the previously held equity method investment in InterWell Health LLC, discussed below. Business combination of InterWell Health On August 24, 2022 (Acquisition Date), the Company completed a business combination among FHP, the value-based care division of the Company’s wholly-owned subsidiary Fresenius Medical Care Holdings, Inc., with InterWell Health LLC, a physician organization driving innovation in the kidney care space in the U.S., and Cricket, a U.S. provider of value-based kidney care with a patient engagement and data platform. The transaction was completed after regulatory approval was received in the U.S. and other customary closing conditions were satisfied. The new company, NewCo, will operate under the InterWell Health brand. This business combination was conducted as a non-cash transaction. Under the terms and conditions of this business combination, Cricket contributed all of its net assets in exchange for approximately 17% of the equity interest in NewCo. The fair value of the consideration transferred by the Company to Cricket for a controlling interest in NewCo was $260,772 (€262,505 as of the Acquisition Date). InterWell Health LLC also contributed all of its net assets in exchange for approximately 8% of the equity interest in NewCo. The fair value of the consideration transferred by the Company to InterWell Health LLC for a controlling interest in Newco was $137,647 (€138,561 as of the Acquisition Date). Prior to the transaction, the Company owned approximately 46% of InterWell Health LLC with a carrying value of $19,370 (€19,499) and a fair value of $175,434 (€176,600) as of the Acquisition Date. At the Acquisition Date, the Company received approximately 7% equity in NewCo in exchange for its investment in InterWell Health, LLC. As a result of the transaction, the Company recognized a remeasurement gain of $156,064 (€148,202) for the year ended December 31, 2022, which represented the difference between the fair value and the carrying value of its investment in InterWell Health LLC prior to the Acquisition Date, and a related currency translation adjustment reversal due to the disposal of its investment in InterWell Health LLC in the amount of €364 for the year ended December 31, 2022. The remeasurement gain is recorded in the consolidated statements of income for the year ended December 31, 2022 within the line item “Remeasurement Gain from InterWell Health.” The contributions of the net assets of InterWell Health LLC and Cricket were accounted for as a business combination in accordance with IFRS 3 in which the Company was identified as the acquirer and InterWell Health LLC and Cricket were identified as acquired companies. NewCo has been consolidated in the Company’s consolidated financial statements as of and for the year ended December 31, 2022. As a result of the business combination, the Company recorded noncontrolling interests at fair value in the amount of $186,789 (€188,030 as of the Acquisition Date) using the full goodwill method within the line item “Noncontrolling interests due to changes in consolidation group” in the consolidated statements of shareholders’ equity. A third party valuation advisor was engaged to assist the Company in the estimation of the underlying fair value of the transaction and primarily employed an income approach which was used in the calculation of consideration transferred to the acquirees as well as in the calculation of noncontrolling interests. In addition, the Company also granted put options to noncontrolling shareholders with an estimated present value of the redemption amount of $603,469 (€565,787) at December 31, 2022 (at Acquisition Date: $604,137 (€608,150)). For further information regarding the valuation of put option liabilities, see note 23. The Company also contributed the business of FHP in exchange for approximately 68% of equity interest in NewCo. Since the Company controlled FHP before the Acquisition Date and controls NewCo post-Acquisition Date, the Company’s contribution of FHP net assets was recorded under common control at their respective carrying values at the Acquisition Date and the resulting reduction of the Company’s interest in FHP was accounted for as an equity transaction. Therefore, additional noncontrolling interest was recognized in the amount of $4,914 (€4,947 as of Acquisition Date), partially offset by a related currency translation adjustment in the amount of €851, and additional paid in capital of $393,505 (€396,119 as of the Acquisition Date) representing the difference between the carrying value and the fair value of the corresponding interests. These amounts were recorded within the line item “Transactions with noncontrolling interests without loss of control” in the consolidated statements of shareholders’ equity. Upon consummation of the business combination described above, the Company holds approximately 75% of NewCo, resulting from the contribution of the Company’s interest in FHP and the transfer of the previously-held equity method investment in InterWell Health LLC. The former owners of Cricket and InterWell Health LLC hold approximately 17% and 8%, respectively, as noncontrolling interests in NewCo. The following allocation of the purchase price is based upon information available to management as of December 31, 2022. Based on a preliminary allocation, the following assets, including goodwill (which will not be deductible for tax purposes), were acquired and liabilities were assumed as of the Acquisition Date: Reconciliation of goodwill recognized in $ THOUS in € THOUS Fair value of consideration transferred of the Company's interest in FHP 398,419 401,066 Fair value of previously held equity method investment in InterWell Health LLC 175,434 176,600 573,853 577,666 Fair Values of Assets Acquired and Liabilities Assumed (preliminary) Less: Cash and cash equivalents (57,383) (57,764) Less: Other assets (2,819) (2,838) Less: Intangible assets (53,919) (54,277) Other liabilities 13,029 13,116 Noncontrolling interests 186,789 188,030 Goodwill 659,550 663,933 During the fourth quarter of 2022, the Company updated the purchase price allocation as a result of obtaining additional information. The fair value of the consideration transferred to Cricket and InterWell Health, LLC was reduced by $7,667 (€7,718) to reflect an updated capital interest allocation related to share-based compensation arrangements of Cricket at the Acquisition Date. As such, the noncontrolling interests of Cricket and InterWell Health, LLC in NewCo were reduced by $7,369 (€7,418). Additionally, management adjusted the underlying parameters utilized to value intangible assets acquired, which resulted in an increase of $19,400 (€19,529). The Company also updated its tax analysis, specifically in the U.S. Deferred tax liabilities were adjusted by $9,084 (€9,144), which resulted in net deferred taxes of zero. The Company is in the process of obtaining and evaluating the information necessary for the purchase price allocation, including, but not limited to, tax-related items and the final capital interest allocation. As such, the balances noted in the table above are provisional and subject to measurement period adjustments permitted under IFRS 3. Any adjustments to acquisition accounting, net of related income tax effects, will be recorded with a corresponding adjustment to goodwill within one year from the Acquisition Date. As of the Acquisition Date, intangible assets in the amount of $53,919 (€54,277) acquired in this transaction consist primarily of a technology platform with a weighted average useful life of 10 years and a trade name with an indefinite useful life. As of the Acquisition Date, goodwill in the amount of $659,550 (€663,933) was recorded as part of the transaction and mainly represents anticipated synergies and future cash flows expected to be generated by NewCo. The entire amount of goodwill recorded as a result of this transaction was allocated to the North America cash generating unit. Additionally, and as contemplated in the agreement, the Company also transferred Acumen Physician Solutions, LLC (Acumen) to NewCo shortly after the Acquisition Date, and prior to September 30, 2022, with working capital in the amount of $1,824 (€1,845 as of the date of the transfer agreement). Since certain long-lived assets (mainly intangible assets) held by Acumen will be utilized materially differently by NewCo, management performed an impairment assessment prior to the transfer, concluded that the assets were completely impaired in accordance with IAS 36, Impairment of Assets, and recorded an impairment charge in the North America Segment in the amount of $71,025 before the transfer (€67,447 for the year ended December 31, 2022). The Company also incurred certain transaction-related costs of $25,660 (€24,367 for the year ended December 31, 2022). The expenses, along with the impairment charges were recognized in “Selling, general and administrative” expense on the consolidated statements of income. The transaction-related costs are included in operating activities and cash acquired is included in investing activities in the consolidated statements of cash flows. From August 24, 2022 through December 31, 2022, the revenue contributed by the acquired companies (i.e. Cricket and InterWell Health, LLC) was not material. During this period, the Company recognized a loss of €18,094 from the acquired companies within its consolidated statement of income. Had the business combination taken place on January 1, 2022, the Company estimates that its revenue for the year ended December 31, 2022 would not have been materially different. However, the Company estimates that net income for the year ended December 31, 2022 would have been €34,239 lower than reported if the business combination had taken place at the beginning of the reporting period. Investments (including debt securities) and purchases of intangible assets Investments (including debt securities) and purchases of intangible assets were €175,300, €238,446 and €141,032 in 2022, 2021 and 2020, respectively. These amounts were primarily driven by investments in debt securities in 2022, 2021 and 2020. Of these amounts, €175,300, €238,446 and €140,550 were paid in cash in 2022, 2021 and 2020, respectively. Divestitures and sale of debt securities Proceeds from divestitures and sale of debt securities were €126,454, €201,203 and €77,509 in 2022, 2021 and 2020, respectively. These amounts mainly related to the divestment of equity investments and debt securities in 2022, the divestment of debt securities in 2021 and the divestment of debt securities as well as certain research & development investments in 2020. In 2022, €117,832 was received in cash and €8,622 were non-cash components. In 2021, €196,960 was received in cash and €4,243 were non-cash components. In 2020, €56,849 was received in cash and €20,660 were non-cash components. |
Notes to the consolidated state
Notes to the consolidated statements of income | 12 Months Ended |
Dec. 31, 2022 | |
Notes to the consolidated statements of income | |
Notes to the consolidated statements of income | 4. Notes to the consolidated statements of income a) Revenue The Company recognized the following revenue in the consolidated statements of income for the years ended December 31, 2022, 2021 and 2020: Revenue in € THOUS 2022 2021 2020 Revenue from Revenue from Revenue from contracts with Other contracts with Other contracts with Other customers revenue Total customers revenue Total customers revenue Total Health care services 14,966,580 451,489 15,418,069 13,479,438 396,844 13,876,282 13,810,589 303,810 14,114,399 Health care products 3,876,321 103,627 3,979,948 3,623,951 118,452 3,742,403 3,639,995 104,669 3,744,664 Total 18,842,901 555,116 19,398,017 17,103,389 515,296 17,618,685 17,450,584 408,479 17,859,063 For further information on the revenue attributable to the Company’s operating segments, see note 26. The Company recognized the following amounts as receivables and contract liabilities relating to contracts with customers for the years ended December 31, 2022 and 2021: Trade accounts receivables from unrelated parties and contract liabilities in € THOUS 2022 2021 Trade accounts receivables from unrelated parties 3,381,006 3,309,353 Contract liabilities 63,273 428,034 Impairment loss in the amount of €43,285, €43,968 and €27,541 for the years ended December 31, 2022, 2021 and 2020, respectively, related to receivables arising from contracts with customers. The change in the contract liabilities balance during the period results primarily from advance payments received under the Centers for Medicare and Medicaid Services’ (CMS) Accelerated and Advance Payment program which are recorded as contract liabilities upon receipt and recognized as revenue when the respective services are provided. In 2022, contract liabilities related to sales of dialysis machines where revenue is recognized upon installation and provision of the necessary technical instructions whereas a receivable is recognized once the machine is billed to the customer and to advance payments from customers. In 2021, contract liabilities related to advance payments from customers and to sales of dialysis machines where revenue is recognized upon installation and provision of the necessary technical instructions whereas a receivable is recognized once the machine is billed to the customer. Contract liabilities are shown in the consolidated balance sheet in line items “Current provisions and other current liabilities” and “Non-current provisions and other non-current liabilities.” At December 31, 2022, revenue recognized that was included in the contract liabilities balance at the beginning of the period was €429,583 (2021: €527,066). At December 31, 2022, performance obligations of €966,308 (2021: €1,428,897) are unsatisfied (or partially unsatisfied). The expected recognition of the transaction price allocated to unsatisfied performance obligations as revenue for the next five years and in the aggregate for the five years thereafter is as follows: Unsatisfied performance obligations in € THOUS 2022 2021 1 year 283,208 686,505 1 - 3 years 342,274 383,682 3 - 5 years 266,302 256,922 5 - 10 years 74,524 101,788 Total 966,308 1,428,897 b) Selling, general and administrative expenses Selling, general and administrative expenses are generated in the administrative, logistic and selling functions which are not attributable to production or research and development. Furthermore, general and administrative expenses included realized and unrealized foreign exchange gains and losses. In addition, the Company recognized, among others, the following general and administrative expenses for the years ended December 31, 2022, 2021 and 2020: Notable general and administrative expenses in € THOUS 2022 2021 2020 Impairment Loss in the Latin America Segment — — 194,468 Income attributable to a consent agreement on foregone profits from the sale of certain pharmaceuticals to non-associated companies (83,212) (44,300) (39,540) Reimbursement payments and funding received related to economic assistance programs to address the consequences of the COVID-19 pandemic (49,652) (8,716) (27,414) Net (gain) loss from changes in the fair value of investments, mainly related to equity investments 96,423 66,151 (20,938) (Gain) loss from right-of-use assets (18,692) (4,975) (12,867) Net (gain) loss from the sale of investments and divestitures (47,733) (4,054) (41,938) Net (gain) loss related to variable payments outstanding for acquisitions, mainly due to revaluation (3,904) (6,716) (1,996) Impairment loss on property, plant and equipment, intangible assets and right-of-use assets 118,229 36,554 2,758 Net (gain) loss from the sale of fixed and intangible assets 18,936 (21,141) 17,358 Costs related to the InterWell Health transaction 24,367 — — Costs related to U.S. ballot initiatives 22,514 — 26,069 In 2022, general and administrative expenses included costs for restructuring activities related to the FME25 Program in the amount of €190,065, mainly for severance payments and related personnel expense, the impairment of fixed, intangible and right-of-use assets and consulting expense. In 2021, general and administrative expenses included costs for restructuring activities related to the FME25 Program in the amount of €62,862, mainly for the impairment of right-of-use assets and consulting expense. c) Research and development expenses Research and development expenses of €228,624 (2021: €220,782 and 2020: €193,774) included research and non-capitalizable development costs as well as depreciation and amortization expenses related to capitalized development costs of €9,994 (2021: €6,437 and 2020: €5,024). d) Cost of materials The cost of materials for the year ended December 31, 2022, 2021 and 2020 consisted of the following: Cost of materials in € THOUS 2022 2021 2020 Cost of raw materials, supplies and purchased components 3,939,649 3,622,169 3,668,053 Cost of purchased services 280,913 240,699 236,302 Cost of materials 4,220,562 3,862,868 3,904,355 e) Personnel expenses Included within costs of revenue, selling, general and administrative expenses and research and development expenses are personnel expenses in the amount of €7,939,397, €6,962,118 and €7,067,407 for the years ended December 31, 2022, 2021 and 2020, respectively. Personnel expenses consisted of the following: Personnel expenses in € THOUS 2022 2021 2020 Wages and salaries 6,390,322 5,618,236 5,753,795 Social security contributions and cost of retirement benefits and social assistance 1,549,075 1,343,882 1,313,612 thereof retirement benefits 217,165 189,176 181,347 Personnel expenses 7,939,397 6,962,118 7,067,407 The Company employed the following personnel on a total headcount basis, on average, for the following years: Employees by function (1) 2022 2021 2020 Production and services 111,472 112,201 113,628 Administration 12,166 13,216 13,386 Sales and marketing 4,877 4,648 4,085 Research and development 1,226 1,245 1,242 Total employees 129,741 131,310 132,341 (1) The figures for 2021 and 2020 have been adjusted from full-time equivalents to total headcount to conform with the current year’s presentation. The Company believes this information provides a more accurate assessment of the number of employees working for the Company and provides additional insight regarding the composition of its personnel expenses incurred for the years presented. f) Net interest Net interest in the amount of €292,476 (2021: €280,429 and 2020: €368,019) included interest expense of €360,139 (2021: €353,599 and 2020: €409,978) and interest income of €67,663 (2021: €73,170 and 2020: €41,959). Interest expense resulted mainly from the Company’s financial liabilities including outstanding bonds, loans and credit facilities (see note 13 and note 14) as well as lease liabilities and lease liabilities from related parties (see note 5 b) and note 21). In 2022, interest income primarily resulted from a release of interest accruals related to uncertain tax treatments, income related to royalty receivables and interest on lease receivables and overdue receivables. In 2021, interest income primarily resulted from a release of interest accruals related to uncertain tax treatments, interest on lease receivables and overdue receivables and income related to royalty receivables. In 2020, interest income primarily resulted from interest on overdue receivables, valuation of derivatives and lease receivables. g) Income taxes Income before income taxes is attributable to the following geographic locations: Income before income taxes in € THOUS 2022 2021 2020 Germany (30,186) 81,246 160,866 United States 829,699 1,090,797 1,487,931 Other 419,766 399,818 287,593 Total 1,219,279 1,571,861 1,936,390 Income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 consisted of the following: Income tax expense (benefit) in € THOUS 2022 2021 2020 Current Germany (5,423) (11,675) 17,879 United States 190,058 181,714 242,062 Other 181,790 115,535 129,512 366,425 285,574 389,453 Deferred Germany 16,963 18,404 27,844 United States (13,767) 47,018 95,444 Other (44,667) 1,837 (12,183) (41,471) 67,259 111,105 Total 324,954 352,833 500,558 A reconciliation between the expected and actual income tax expense is shown below. The expected corporate income tax expense is computed by applying the German corporation tax rate (including the solidarity surcharge) and the trade tax rate on income before income taxes. The German combined statutory tax rates were 30.14%, 30.14% and 30.21% for the fiscal years ended December 31, 2022, 2021 and 2020, respectively. Reconciliation of income taxes in € THOUS 2022 2021 2020 Expected corporate income tax expense 367,491 473,759 584,983 Tax free income (53,282) (41,566) (51,231) Income from equity method investees (24,909) (26,722) (28,510) Tax rate differentials (39,064) (40,604) (71,755) Non-deductible expenses (1) 77,465 50,682 106,437 Taxes for prior years (848) (38,502) (2,748) Noncontrolling partnership interests (54,636) (65,489) (70,300) Tax rate changes (359) 3,543 4,221 Change in realizability of deferred tax assets and tax credits 33,683 20,736 12,627 Withholding taxes 9,160 5,912 4,858 Other 10,253 11,084 11,976 Income tax expense 324,954 352,833 500,558 Effective tax rate 26.7 % 22.4 % 25.9 % (1) Non-deductible tax expenses for the year ended December 31, 2020 included €58,749 related to the Impairment Loss in the Latin America Segment discussed above. The tax effects of the temporary differences and net operating losses that give rise to deferred tax assets and liabilities at December 31, 2022 and 2021, are presented below: Deferred income tax assets and liabilities in € THOUS 2022 2021 Deferred tax assets Trade accounts receivable 23,448 21,407 Inventories 62,663 73,078 Intangible assets 6,875 5,587 Property, plant and equipment and other non-current assets 86,182 83,946 Lease liabilities 894,451 904,265 Provisions and other liabilities 212,167 197,765 Pension liabilities 93,431 168,278 Net operating loss carryforwards, tax credit carryforwards and interest carryforwards 113,713 97,287 Derivatives 1,893 4,211 Compensation expense related to stock options 1,190 1,763 Other 73,882 40,562 Total deferred tax assets 1,569,895 1,598,149 Deferred tax liabilities Trade accounts receivable 27,311 47,378 Inventories 5,875 3,808 Intangible assets 886,696 834,190 Property, plant and equipment and other non-current assets 267,064 276,922 Right-of-use assets 793,855 818,314 Provisions and other liabilities 6,533 15,423 Pension liabilities 65 — Derivatives 4,204 700 Other 202,088 154,506 Total deferred tax liabilities 2,193,691 2,151,241 Net deferred tax liabilities (623,796) (553,092) In the consolidated balance sheets, the accumulated amounts of deferred tax assets and liabilities are shown as follows: Net deferred income tax assets and liabilities in € THOUS 2022 2021 Deferred tax assets 312,679 315,360 Deferred tax liabilities 936,475 868,452 Net deferred tax liabilities (623,796) (553,092) The change in the balance of deferred tax assets and deferred tax liabilities does not equal the deferred tax expense/(benefit). This is due to deferred taxes that are booked directly to equity, the effects of exchange rate changes on tax assets and liabilities denominated in currencies other than euro and the acquisition and disposal of entities as part of ordinary activities. The net operating losses included in the table below reflect U.S. federal tax, German corporate income tax, and other tax loss carryforwards in the various countries in which the Company operates, and expire as follows: Net operating loss carryforwards in € THOUS For the year ended December 31, 2022 For the year ended December 31, 2021 2023 19,274 2022 14,422 2024 14,979 2023 13,972 2025 27,238 2024 21,400 2026 50,856 2025 40,610 2027 75,953 2026 59,632 2028 28,295 2027 25,465 2029 53,910 2028 5,826 2030 2,999 2029 4,484 2031 1,672 2030 2,520 2032 and thereafter 131,039 2031 and thereafter 47,494 Without expiration date 420,026 Without expiration date 291,848 Total 826,241 Total 527,673 Included in the balance of net operating loss carryforwards at December 31, 2022 are €531,231 (2021: €282,275) not expected to be absorbed. Deferred tax assets regarding this portion are not recognized. In assessing the realizability of deferred tax assets, management considers to which extent it is probable that the deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and tax loss carryforwards become deductible. Management considers the expected reversal of deferred tax liabilities and projected future taxable income in making this assessment and believes it is probable the Company will realize the benefits of these deferred tax assets at December 31, 2022. In Germany, certain entities realized losses due to impacts that COVID-19 and the Ukraine War had on the global economy and financial markets as well as additional restructuring costs. The Company considers deferred tax assets on these losses realizable as the losses are covered by the expected reversal of deferred tax liabilities. Additionally, the Company expects future taxable profits over the periods in which the deferred tax assets are deductible. The Company provides for income taxes and foreign withholding taxes on the cumulative earnings of foreign subsidiaries and foreign subsidiaries in which the Company has ownership of less than 100% that will not be reinvested. At December 31, 2022, the Company provided for €11,972 (2021: €8,759) of deferred tax liabilities associated with earnings that are likely to be distributed in the following year(s). Provision has not been made for additional taxes on €8,945,633 (2021: €9,563,193) undistributed earnings of foreign subsidiaries as these earnings are considered indefinitely reinvested. The earnings could become subject to additional tax if remitted or deemed remitted as dividends; however, calculation of such additional tax is not practicable. These taxes would predominantly comprise foreign withholding tax on dividends of foreign subsidiaries, and German income tax; however, those dividends and capital gains would generally be 95% tax free for German tax purposes. h) 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 €284,742 and €72,531 for the year ended December 31, 2022 and December 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. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in the U.S. The CARES Act provides relief funds to hospitals and other health care providers in connection with the impact of the on-going COVID-19 pandemic. During 2022 and 2021, the Company received $235,394 (€223,536) and $122,025 (€103,171), respectively, in U.S. Department of Health and Human Services (U.S. HHS) funding available for health care providers affected by the COVID-19 pandemic. During 2022 and 2021, the Company recognized operating income of $291,446 (€276,783) and $73,672 (€62,289), respectively, used to offset eligible costs. The Company currently estimates that all funds received from grants comply with the terms and conditions associated with the funding received. All funding received in the U.S. is to be applied solely to the Company’s U.S. operations. In accordance with the conditions of the funding received under the grants, the Company is obliged and committed to fulfilling all the requirements of the grant funding arrangements in the respective jurisdictions in which funding was received. The Company has determined that there is reasonable assurance that it will continue to be entitled to the amounts received and comply with the requirements related to the grants. The remaining amount of U.S. government grants received recorded in deferred income was $6,104 (€5,723) and $62,176 (€54,897) at December 31, 2022 and December 31, 2021, respectively (see note 12). The Company also recorded a contract liability for advance payments received under the 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 $5,275 (€4,946) and $442,568 (€390,754) at December 31, 2022 and December 31, 2021, respectively. For further information regarding government grants, see note 1 y). |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions | |
Related party transactions | 5. Fresenius SE is the Company’s largest shareholder and owns 32.2% of the Company’s outstanding shares at December 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) 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, 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 CSL Vifor) 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 into certain exclusive distribution agreements with, Vifor Fresenius Medical Care Renal Pharma Ltd. Under the terms of certain unconditional purchase agreements, the Company is obligated to purchase approximately €1,272,287 of pharmaceuticals, of which €362,805 is committed at December 31, 2022 for 2023. The terms of these agreements run up to four years. 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. For the fifth performance year (January 1, 2020 through March 31, 2021), CMS finalized its settlement reports on December 30, 2022. These ESCOs are expected to be dissolved during the first quarter of 2023. In October 2019, CMS released a request for applications to participate in its new Comprehensive Kidney Care Contracting (CKCC) model. Under the CKCC model, renal health care providers participate by forming an entity known as a Kidney Care Entity (KCE). Through the KCE, renal health care providers take responsibility for the total cost and quality of care for Medicare beneficiaries with CKD stages 4 and 5 as well as Medicare beneficiaries with ESRD. In order to participate, KCEs must include nephrologists and transplant providers, and dialysis providers and other third parties are permitted to participate. As of December 31, 2022, the Company was participating in 20 KCEs. The Company entered into participation/service agreements with these KCEs, 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 2022 2021 2020 December 31, 2022 December 31, 2021 Sales of Purchases of Sales of Purchases of Sales of Purchases of goods and goods and goods and goods and goods and goods and Accounts Accounts Accounts Accounts services services services services services services receivable payable receivable payable Service agreements (1) Fresenius SE 361 38,010 123 38,292 250 29,174 26 2,820 — 6,707 Fresenius SE affiliates 5,164 83,087 5,657 100,541 4,708 102,323 1,168 8,585 1,544 8,041 Equity method investees 36,089 — 42,391 — 19,730 — 120,507 — 131,661 — Total 41,614 121,097 48,171 138,833 24,688 131,497 121,701 11,405 133,205 14,748 Products Fresenius SE — — 5 — — — — — — — Fresenius SE affiliates 66,800 39,405 50,081 31,719 41,180 44,164 16,078 5,826 13,487 6,000 Equity method investees — 463,073 — 445,714 — 474,100 — 73,563 — 76,444 Total 66,800 502,478 50,086 477,433 41,180 518,264 16,078 79,389 13,487 82,444 (1) In addition to the above shown accounts payable, accrued expenses for service agreements with related parties amounted to €6,520 and €12,911 at December 31, 2022 and 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 2032. In December 2022, the Company sold a building and other assets to a Fresenius SE Company for consideration in the aggregated amount of €31,315 and subsequently leased the buildings for a period of ten years from the Fresenius SE Company beginning in December 2022. Below is a summary resulting from the above described lease agreements with related parties. Lease agreements with related parties in € THOUS 2022 2021 2020 Interest Lease Interest Lease Interest Lease Depreciation expense expense (1) Depreciation expense expense (1) Depreciation expense expense (1) Fresenius SE 8,395 524 259 7,876 661 1,654 7,925 740 2,452 Fresenius SE affiliates 13,956 1,048 — 13,709 1,092 38 13,236 1,272 572 Total 22,351 1,572 259 21,585 1,753 1,692 21,161 2,012 3,024 (1) Short-term leases and expenses relating to variable lease payments as well as low value leases are exempted from balance sheet recognition. Lease agreements with related parties in € THOUS December 31, 2022 December 31, 2021 Right-of-use Lease Right-of-use Lease asset liability asset liability Fresenius SE 38,688 39,626 48,794 50,997 Fresenius SE affiliates 112,684 114,077 68,181 68,284 Total 151,372 153,703 116,975 119,281 c) Financing The Company receives short-term financing from and provides short-term financing to Fresenius SE. The Company also utilizes Fresenius SE’s cash management system for the settlement of certain intercompany receivables and payables with its subsidiaries and other related parties. As of December 31, 2022 and December 31, 2021, the Company had accounts receivable from Fresenius SE related to short-term financing in the amount of €1,477 and €14,900, respectively. As of December 31, 2022 and December 31, 2021, the Company did not have accounts payable to Fresenius SE related to short-term financing under Fresenius SE’s cash management system. 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 December 31, 2022 and December 31, 2021, the Company borrowed from Fresenius SE in the amount of €1,000 at an interest rate of 2.468% and €74,500 at an interest rate of 0.600%, respectively. For further information on this loan agreement, see note 13. d) 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 €23,632, €30,212 and €33,284, respectively, for its management services during 2022, 2021 and 2020 and included an annual fee of €120 as compensation for assuming liability as general partner. The annual fee is set at 4% of the amount of the General Partner’s share capital (€3,000 as of December 31, 2022). As of December 31, 2022 and December 31, 2021, the Company had accounts receivable from the General Partner in the amount of €816 and €769, respectively. As of December 31, 2022 and December 31, 2021, the Company had accounts payable to the General Partner in the amount of €27,289 and €24,265, respectively. For information regarding compensation of the Management Board and the Supervisory Board of the Company see note 28. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents | |
Cash and cash equivalents | 6. As of December 31, 2022 and 2021, cash and cash equivalents are as follows: Cash and cash equivalents in € THOUS 2022 2021 Cash 911,015 925,134 Securities and time deposits 362,772 556,521 Cash and cash equivalents 1,273,787 1,481,655 The cash and cash equivalents disclosed in the table above, and respectively in the consolidated statement of cash flows, include at December 31, 2022 an amount of €22,835 (2021: €25,573) from collateral requirements towards an insurance company in North America that are not available for use, but are accessible upon demand. For further information on the Company’s multi-currency notional pooling cash management system, see note 13. |
Trade accounts and other receiv
Trade accounts and other receivables from unrelated parties | 12 Months Ended |
Dec. 31, 2022 | |
Trade accounts and other receivables from unrelated parties | |
Trade accounts and other receivables from unrelated parties | 7. As of December 31, 2022 and December 31, 2021, trade accounts and other receivables from unrelated parties are as follows: Trade accounts and other receivables from unrelated parties in € THOUS December 31, December 31, 2022 2021 thereof credit- thereof credit- impaired (1) impaired (1) Trade accounts and other receivables, gross 3,742,951 378,831 3,572,990 423,113 thereof finance lease receivables 72,853 — 64,224 — less expected credit losses (168,681) (124,081) (163,929) (130,790) Trade accounts and other receivables 3,574,270 254,750 3,409,061 292,323 (1) Trade accounts receivable balances are credit-impaired when one or more events have occurred that have a detrimental impact on the estimated future cash flows of the receivable balance (e.g. overdue by more than one year, etc.). Other receivables in the amount of €198,548 at December 31, 2022 include receivables from finance leases, operating leases and insurance contracts (December 31, 2021: €113,841). For further information, see note 1 k). All trade accounts and other receivables from unrelated parties are due within one year. Trade accounts receivables and finance lease receivables with a term of more than one year in the amount of €141,763 at December 31, 2022 (December 31, 2021: €148,545) are included in the balance sheet item “Other non-current assets.” The majority of finance lease receivables are due within 5 years. When utilized, the Company assigns interests in certain receivables to institutional investors under its Accounts Receivable Facility (as defined below). The receivables assigned under the facility amounted to $1,429,071 (€1,339,838) for the year ended December 31, 2022 (December 31, 2021: €0). For further information, see note 14. The following table shows the development of expected credit losses in the fiscal years 2022, 2021 and 2020: Development of expected credit losses for doubtful accounts from unrelated parties in THOUS € 2022 2021 2020 Expected credit losses as of January 1 163,929 142,372 141,358 Change in valuation allowances as recorded in the consolidated statements of income 42,470 44,374 28,302 Write-offs and recoveries of amounts previously written-off (36,180) (21,622) (14,213) Foreign currency translation (1,538) (1,195) (13,075) Expected credit losses as of December 31 168,681 163,929 142,372 The following tables show the aging analysis of trade accounts and other receivables from unrelated parties and expected credit losses as of December 31, 2022 and as of December 31, 2021: Aging analysis of trade accounts and other receivables from unrelated parties 2022 in € THOUS up to 3 3 to 6 6 to 12 more than not months months months 12 months overdue overdue overdue overdue overdue Total Trade accounts and other receivables 2,143,985 831,384 254,570 246,497 266,515 3,742,951 less expected credit losses (23,709) (8,666) (5,314) (11,409) (119,583) (168,681) Trade accounts and other receivables, net 2,120,276 822,718 249,256 235,088 146,932 3,574,270 Aging analysis of trade accounts and other receivables from unrelated parties 2021 in € THOUS up to 3 3 to 6 6 to 12 more than not months months months 12 months overdue overdue overdue overdue overdue Total Trade accounts and other receivables 2,042,024 834,638 206,903 205,436 283,989 3,572,990 less expected credit losses (12,233) (5,911) (4,133) (12,266) (129,386) (163,929) Trade accounts and other receivables, net 2,029,791 828,727 202,770 193,170 154,603 3,409,061 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Inventories | 8. At December 31, 2022 and December 31, 2021, inventories consisted of the following: Inventories in € THOUS 2022 2021 Finished goods 1,310,995 1,233,197 Health care supplies 553,821 452,073 Raw materials and purchased components 306,994 247,478 Work in process 124,404 105,266 Inventories 2,296,214 2,038,014 Under the terms of certain unconditional purchase agreements, the Company is obligated to purchase approximately €821,888 of materials, of which €479,278 is committed at December 31, 2022 for 2023. The terms of these agreements run 1 to 5 years. Further unconditional purchase agreements exist with an equity method investee of the Company. For further information on these agreements, see note 5. Write-downs of inventories amounted to €71,593 and €69,250 for the years ended December 31, 2022 and 2021, respectively. |
Other current assets
Other current assets | 12 Months Ended |
Dec. 31, 2022 | |
Other current assets | |
Other current assets | 9. Other current assets At December 31, 2022 and 2021, other current assets consisted of the following: Other current assets in € THOUS 2022 2021 Payments on account 199,736 182,239 Debt securities 169,983 136,362 Income tax receivable 143,782 177,150 Other tax receivable 125,762 109,586 Prepaid insurance 27,652 21,160 Receivables for supplier rebates 23,920 20,662 Derivatives 19,777 3,417 Notes receivable 18,304 18,873 Deposit / guarantee / security 17,843 22,822 Prepaid rent 15,543 14,237 Loans to customers or suppliers 5,494 8,990 Other 151,316 160,653 Other current assets 919,112 876,151 The item “Other” in the table above includes various prepaid expenses relating to, amongst others, utility costs, royalty payments and freight expense. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment. | |
Property, plant and equipment | 10. Property, plant and equipment At December 31, 2022 and 2021, the acquisition or manufacturing costs and the accumulated depreciation of property, plant and equipment consisted of the following: Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Additions Reclassifications Disposals 2022 Land 70,691 (3,002) (65) 1,842 (261) (47) 69,158 Buildings and improvements 4,129,180 192,505 (15,357) 30,248 192,974 (158,052) 4,371,498 Machinery and equipment 5,679,662 208,366 (3,153) 363,609 127,282 (212,796) 6,162,970 Construction in progress 394,333 12,180 5,017 224,867 (279,396) (4,098) 352,903 Property, plant and equipment 10,273,866 410,049 (13,558) 620,566 40,599 (374,993) 10,956,529 Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2021 translation group Additions Reclassifications Disposals 2021 Land 69,582 147 93 4 2,446 (1,581) 70,691 Buildings and improvements 3,613,172 251,338 2,568 60,173 277,232 (75,303) 4,129,180 Machinery and equipment 5,233,002 243,941 9,232 419,897 103,355 (329,765) 5,679,662 Construction in progress 471,478 19,553 (30) 258,826 (345,219) (10,275) 394,333 Property, plant and equipment 9,387,234 514,979 11,863 738,900 37,814 (416,924) 10,273,866 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Additions Impairment (1) Reclassifications Disposals 2022 Land 586 (41) — — — (14) — 531 Buildings and improvements 2,472,155 118,465 (7,709) 287,845 18,840 (799) (116,462) 2,772,335 Machinery and equipment 3,566,098 116,787 (2,962) 516,802 12,687 1,400 (179,831) 4,030,981 Property, plant and equipment 6,038,839 235,211 (10,671) 804,647 31,527 587 (296,293) 6,803,847 (1) Including impairment loss in the amount of €28,949 related to a production plant and associated machines which were fully written off as a result of economic sanctions imposed on Russia, due to the Ukraine War, that negatively impacted the Company’s supply chain to the country. The impairment loss is recorded at Corporate (see note 26). Depreciation in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2021 translation group Additions Impairment Reclassifications Disposals 2021 Land 1,317 (10) — — — — (721) 586 Buildings and improvements 2,098,019 154,893 (1,795) 260,532 3,870 11,803 (55,167) 2,472,155 Machinery and equipment 3,231,034 141,256 (868) 482,034 5,647 2,633 (295,638) 3,566,098 Property, plant and equipment 5,330,370 296,139 (2,663) 742,566 9,517 14,436 (351,526) 6,038,839 Book value in € THOUS December 31, December 31, 2022 2021 Land 68,627 70,105 Buildings and improvements 1,599,163 1,657,025 Machinery and equipment 2,131,989 2,113,564 Construction in progress 352,903 394,333 Property, plant and equipment 4,152,682 4,235,027 Depreciation expense for property, plant and equipment amounted to €804,647, €742,566 and €738,201 for the years ended December 31, 2022, 2021, and 2020, respectively. These expenses are allocated within costs of revenue, selling, general and administrative and research and development expenses depending upon the area in which the asset is used. Under the terms of certain unconditional purchase agreements, the Company is obligated to purchase approximately €25,410 of property, plant and equipment, of which €14,656 is committed at December 31, 2022 for 2023. The terms of these agreements run 1 to 5 years. Included in machinery and equipment at December 31, 2022 and 2021 were €811,991 and €778,887, respectively, of peritoneal dialysis cycler machines which the Company leases to customers with ESKD on a month-to-month basis and hemodialysis machines which the Company leases to physicians under operating leases. At December 31, 2022 and 2021, the hyperinflationary effects on property, plant and equipment consisted of the following: Effect of hyperinflation in € THOUS Acquisition or Accumulated December 31, manufacturing costs depreciation 2022 Land 5,029 — 5,029 Buildings and improvements 51,767 19,930 31,837 Machinery and equipment 109,730 67,556 42,174 Construction in progress 3,179 18 3,161 Property, plant and equipment 169,705 87,504 82,201 Acquisition or Accumulated December 31, manufacturing costs depreciation 2021 Land 3,604 — 3,604 Buildings and improvements 34,989 13,045 21,944 Machinery and equipment 56,545 34,665 21,880 Construction in progress 2,062 6 2,056 Property, plant and equipment 97,200 47,716 49,484 |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets and goodwill | |
Intangible assets and goodwill | 11. Intangible assets and goodwill At December 31, 2022 and 2021, the acquisition or manufacturing costs and the accumulated amortization of intangible assets and goodwill consisted of the following: Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Additions Reclassifications Disposals 2022 Amortizable intangible assets Non-compete agreements 339,796 19,692 150 — 584 (8,449) 351,773 Technology 737,465 42,800 — 143 — (94,279) 686,129 Licenses and distribution agreements 171,578 6,150 — 4,173 (280) (12,900) 168,721 Customer relationships 67,641 2,605 4,771 — — — 75,017 Construction in progress 315,965 9,673 120 113,353 (77,415) (2,124) 359,572 Internally developed intangibles 460,213 16,148 31,953 8,678 78,296 (88,942) 506,346 Other 390,336 9,427 3,709 18,894 4,188 (12,370) 414,184 2,482,994 106,495 40,703 145,241 5,373 (219,064) 2,561,742 Non-amortizable intangible assets Trade names 252,911 15,470 14,054 — — — 282,435 Management contracts 2,637 (16) — — — — 2,621 Emission certificates 661 — — 21,098 — — 21,759 256,209 15,454 14,054 21,098 — — 306,815 Intangible assets 2,739,203 121,949 54,757 166,339 5,373 (219,064) 2,868,557 Goodwill 14,944,458 765,366 695,189 — — — 16,405,013 Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2021 translation group Additions Reclassifications Disposals 2021 Amortizable intangible assets Non-compete agreements 311,353 24,652 5,475 — — (1,684) 339,796 Technology 685,730 51,733 — — 2 — 737,465 Licenses and distribution agreements 188,463 8,038 (46) 4,741 154 (29,772) 171,578 Customer relationships 62,774 4,867 — — — — 67,641 Construction in progress 233,272 9,990 — 128,666 (55,446) (517) 315,965 Internally developed intangibles 394,314 19,639 — 15,427 52,220 (21,387) 460,213 Other 369,081 16,604 1,868 17,073 13,168 (27,458) 390,336 2,244,987 135,523 7,297 165,907 10,098 (80,818) 2,482,994 Non-amortizable intangible assets Trade names 233,492 19,419 — — — — 252,911 Management contracts 3,052 264 — — — (679) 2,637 Emission certificates — — — 661 — — 661 236,544 19,683 — 661 — (679) 256,209 Intangible assets 2,481,531 155,206 7,297 166,568 10,098 (81,497) 2,739,203 Goodwill 13,515,133 985,053 444,272 — — — 14,944,458 Amortization in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2022 translation group Additions loss Reclassifications Disposals 2022 Amortizable intangible assets Non-compete agreements 311,184 17,881 (260) 8,822 — 585 (8,375) 329,837 Technology 286,593 14,471 — 55,614 — — (94,279) 262,399 Licenses and distribution agreements 135,517 4,314 — 4,131 — (280) (10,258) 133,424 Customer relationships 18,667 199 — 4,620 — — — 23,486 Internally developed intangibles 242,584 8,968 (120) 61,850 57,937 3,077 (88,938) 285,358 Other 255,659 7,252 391 33,980 1,119 (2,653) (11,726) 284,022 1,250,204 53,085 11 169,017 59,056 729 (213,576) 1,318,526 Non-amortizable intangible assets Trade names 28,060 1,734 — — — — — 29,794 Management contracts 1,546 14 — — — — — 1,560 29,606 1,748 — — — — — 31,354 Intangible assets 1,279,810 54,833 11 169,017 59,056 729 (213,576) 1,349,880 Goodwill 582,881 30,951 — — — — — 613,832 Amortization in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 2021 translation group Additions loss Reclassifications Disposals 31, 2021 Amortizable intangible assets Non-compete agreements 280,835 22,622 (55) 9,456 — — (1,674) 311,184 Technology 216,019 15,422 — 53,160 1,023 969 — 286,593 Licenses and distribution agreements 128,749 5,027 — 4,134 — 76 (2,469) 135,517 Customer relationships 13,310 1,278 — 4,079 — — — 18,667 Internally developed intangibles 195,376 10,747 — 49,787 7,206 529 (21,061) 242,584 Other 239,566 10,453 — 31,709 1,130 (562) (26,637) 255,659 1,073,855 65,549 (55) 152,325 9,359 1,012 (51,841) 1,250,204 Non-amortizable intangible assets Trade names 25,957 2,103 — — — — — 28,060 Management contracts 710 99 — — 737 — — 1,546 26,667 2,202 — — 737 — — 29,606 Intangible assets 1,100,522 67,751 (55) 152,325 10,096 1,012 (51,841) 1,279,810 Goodwill 556,405 26,476 — — — — — 582,881 Book value in € THOUS December 31, 2022 December 31, 2021 Amortizable intangible assets Non-compete agreements 21,936 28,612 Technology 423,730 450,872 Licenses and distribution agreements 35,297 36,061 Customer relationships 51,531 48,974 Construction in progress 359,572 315,965 Internally developed intangibles 220,988 217,629 Other 130,162 134,677 1,243,216 1,232,790 Non-amortizable intangible assets Trade names 252,641 224,851 Management contracts 1,061 1,091 Emission certificates 21,759 661 275,461 226,603 Intangible assets 1,518,677 1,459,393 Goodwill 15,791,181 14,361,577 The amortization of intangible assets amounted to €169,017, €152,325 and €144,669 for the years ended December 31, 2022, 2021, and 2020, respectively. These expenses are allocated within costs of revenue, selling, general and administrative and research and development expenses depending upon the area in which the asset is used. The Company capitalized development costs of €108,478 in 2022 (€123,275 in 2021), which is included in the line items Internally developed intangibles and Construction in progress in the schedule above. At December 31, 2022 and 2021, the hyperinflationary effects on intangible assets and goodwill consisted of the following: Effect of hyperinflation in € THOUS Accumulated Acquisition or amortization and manufacturing costs impairments December 31, 2022 Non-compete agreements 678 583 95 Licenses and distribution rights 473 330 143 Construction in progress 181 — 181 Internally developed intangibles 2,859 1,666 1,193 Other 7,583 4,789 2,794 Amortizable intangible assets 11,774 7,368 4,406 Management Contracts 2,228 355 1,873 Non-amortizable intangible assets 2,228 355 1,873 Total Intangible assets 14,002 7,723 6,279 Goodwill 60,765 33,810 26,955 Accumulated Acquisition or amortization and manufacturing costs impairments December 31, 2021 Internally developed intangibles 2,357 1,465 892 Other 4,154 1,720 2,434 Amortizable intangible assets 6,511 3,185 3,326 Management Contracts 814 355 459 Non-amortizable intangible assets 814 355 459 Total Intangible assets 7,325 3,540 3,785 Goodwill 33,574 33,540 34 Goodwill and intangible assets with indefinite useful lives The increase in the carrying amount of goodwill during 2022 is mainly a result of the impact of foreign currency translations and the business combination completed among Fresenius Health Partners, Inc., InterWell Health LLC, and Cricket (for further information on this business combination, see note 3). The carrying amount of goodwill and intangibles with indefinite useful life is allocated to the groups of CGUs at December 31, 2022 and 2021 as follows: Allocation of the carrying amount to the groups of CGUs in € THOUS North America EMEA Asia-Pacific Latin America 2022 2021 2022 2021 2022 2021 2022 2021 Goodwill 13,607,465 12,223,884 1,414,332 1,376,542 764,009 756,335 5,375 4,816 Management contracts with indefinite useful life — — — — 1,061 1,091 — — Trade names with indefinite useful life 252,641 224,851 — — — — — — Emission certificates — — 21,759 661 — — — — The Company did not record any impairment losses related to goodwill in 2022 after comparing each CGU’s value in use to its carrying amount. In 2021 the Company recorded an impairment of management contracts in the Asia-Pacific Segment as noted in the “Amortization” table above. |
Current provisions and other cu
Current provisions and other current liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Current provisions and other current liabilities | |
Current provisions and other current liabilities | 12. Current provisions and other current liabilities Current provisions The following table shows a reconciliation of the current provisions for 2022: Development of current provisions in € THOUS Foreign Changes in January 1, currency consolidation 2022 translation group Utilized Reversed Additions Reclassifications December 31, 2022 Personnel expenses 164,629 7,070 42 (80,795) (8,858) 38,950 13,963 135,001 Self-insurance programs 119,244 7,633 — (82,503) (12,820) 89,985 (14,743) 106,796 Risk of lawsuit 23,573 (1,769) — (625) (702) 62,188 — 82,665 Other current provisions 38,077 1,198 — (7,449) (3,504) 18,012 — 46,334 Current provisions 345,523 14,132 42 (171,372) (25,884) 209,135 (780) 370,796 Self-insurance programs See note 2 d). Personnel expenses Personnel expenses mainly refer to provisions for the Company’s global performance-based compensation plan for managerial staff established in 2021, the current portion of the provisions for accrued severance payments, provisions for jubilee payments and share-based plans. As of December 31, 2022, provisions for the Company’s global performance-based compensation plan for managerial staff amounted to €69,967 (December 31, 2021: 87,719), provisions for accrued severance payments amounted to €34,379 (December 31, 2021: €15,847) and provisions for share-based plans amounted to €12,165 (December 31, 2021: €43,466). See note 20. Risk of lawsuit Legal matters that the Company currently deems to be material or noteworthy are described in note 22. Other current provisions The item “Other current provisions” in the table above includes provisions for warranties, physician compensation and return of goods. Other current liabilities As of December 31, 2022 and 2021 other current liabilities consisted of the following: Other current liabilities in € THOUS 2022 2021 Receivable credit balances 720,585 645,650 Personnel liabilities 707,398 746,743 Put option liabilities 667,371 678,705 Invoices outstanding 262,568 201,251 VAT and other (non-income) tax liabilities 123,935 127,295 Contract liabilities 63,273 428,028 Interest liabilities 58,266 68,558 Deferred Income 42,448 90,003 Legal matters, advisory and audit fees 39,093 36,341 Bonuses, commissions 24,010 22,869 Derivatives 7,109 25,847 Variable payments outstanding for acquisitions 4,794 9,721 Other liabilities 263,498 250,341 Other current liabilities 2,984,348 3,331,352 Personnel liabilities The personnel liabilities mainly refer to liabilities for wages and salaries, bonuses and vacation payments. Contract liabilities Contract liabilities also relate to advance payments from customers and to sales of dialysis machines where revenue is recognized upon installation and provision of the necessary technical instructions whereas a receivable is recognized once the machine is billed to the customer. The Company received advance payments under the CMS Accelerated and Advance Payment program which are recorded as contract liability upon receipt and recognized as revenue when the respective services are provided. For additional information on the advanced payments, see note 4 h) above. Other liabilities The item “Other liabilities” in the table above includes liabilities for insurance premiums as well as the current portion of pension liabilities. |
Short-term debt
Short-term debt | 12 Months Ended |
Dec. 31, 2022 | |
Short-term debt | |
Short-term debt | 13. At December 31, 2022 and December 31, 2021, short-term debt consisted of the following: Short-term debt in € THOUS 2022 2021 Commercial paper program 495,424 715,153 Borrowings under lines of credit 169,511 463,091 Other 78 109 Short-term debt from unrelated parties 665,013 1,178,353 Short-term debt from related parties (see note 5 c) 4,000 77,500 Short-term debt 669,013 1,255,853 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 December 31, 2022 and 2021, the outstanding commercial paper amounted to €496,500 and €715,000, respectively. Borrowings under lines of credit and further availabilities Borrowings under lines of credit in the amount of €169,511 and €463,091 at December 31, 2022 and 2021, respectively, represented amounts borrowed by the Company and its subsidiaries under lines of credit with commercial banks. The average interest rates on these borrowings at December 31, 2022 and 2021 were 6.23% and 0.22%, respectively. Excluding amounts available under the Syndicated Credit Facility (see note 14 below), at December 31, 2022 and 2021, the Company had €1,107,050 and €477,483 available under other commercial bank agreements, excluding agreements on a subsidiary level, which are readily available for liability management purposes. In some instances, lines of credit are secured by assets of the Company’s subsidiary that is party to the agreement or may require the Company’s, or its subsidiaries’, guarantee. 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 December 31, 2022 and 2021, cash and borrowings under lines of credit in the amount of €80,603 and €116,538, respectively, were offset under this cash pooling management system. Before this offset, cash and cash equivalents as of December 31, 2022 was €1,354,390 (December 31, 2021: €1,598,193) and short-term debt from unrelated parties was €745,616 (December 31, 2021: €1,294,891). Other At December 31, 2022 and 2021, the Company had €78 and €109 of other debt outstanding related to fixed payments outstanding for acquisitions. Short-term debt from related parties The Company and FMCH were parties to an unsecured loan agreement, as borrowers, with Fresenius SE, as lender, under which the Company and FMCH could request and receive one or more short-term advances up to an aggregate amount of €600,000. In June 2022, the Company replaced its unsecured loan agreement with a new uncommitted revolving facility under which the Company, as borrower, may request and receive one or more short-term advances up to an aggregate amount of €600,000 with Fresenius SE, as lender. The uncommitted revolving facility is unsecured, does not have a termination date and was effective beginning August 1, 2022. For further information on short-term debt from related parties, see note 5 c). |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2022 | |
Long-term debts | |
Long-term debt | 14. As of December 31, 2022 and 2021, long-term debt consisted of the following: Long-term debt in € THOUS 2022 2021 Schuldschein loans 224,612 — Bonds 7,389,365 7,071,259 Accounts Receivable Facility 93,725 — Other 157,094 243,656 Long-term debt 7,864,796 7,314,915 Less current portion (694,062) (667,966) Long-term debt, less current portion 7,170,734 6,646,949 The Company’s long-term debt as of December 31, 2022, all of which ranks equally in rights of payment, are described as follows: 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 At December 31, 2022 and 2021, the Company’s bonds consisted of the following: Bonds in THOUS Face Book value in € Issuer/Transaction amount Maturity Coupon 2022 2021 FMC US Finance II, Inc. 2012 $ 700,000 January 31, 2022 5.875 % — 618,008 Fresenius Medical Care AG & Co. KGaA, 2019 € 650,000 November 29, 2023 0.250 % 649,283 648,501 FMC US Finance II, Inc. 2014 $ 400,000 October 15, 2024 4.750 % 374,354 352,180 Fresenius Medical Care AG & Co. KGaA, 2018 € 500,000 July 11, 2025 1.500 % 498,245 497,543 Fresenius Medical Care AG & Co. KGaA, 2020 € 500,000 May 29, 2026 1.000 % 497,175 496,348 Fresenius Medical Care AG & Co. KGaA, 2019 € 600,000 November 30, 2026 0.625 % 596,158 595,177 FMC US Finance III, Inc. 2021 $ 850,000 December 1, 2026 1.875 % 790,926 743,966 Fresenius Medical Care AG & Co. KGaA, 2022 € 750,000 September 20, 2027 3.875 % 744,497 — FMC US Finance III, Inc. 2019 $ 500,000 June 15, 2029 3.750 % 462,005 434,094 Fresenius Medical Care AG & Co. KGaA, 2019 € 500,000 November 29, 2029 1.250 % 497,781 497,459 Fresenius Medical Care AG & Co. KGaA, 2020 € 750,000 May 29, 2030 1.500 % 746,332 745,838 FMC US Finance III, Inc. 2020 $ 1,000,000 February 16, 2031 2.375 % 930,443 875,398 FMC US Finance III, Inc. 2021 $ 650,000 December 1, 2031 3.000 % 602,166 566,747 7,389,365 7,071,259 All bonds issued by entities other than Fresenius Medical Care AG & Co. KGaA are guaranteed by the Company and by FMCH, while bonds issued by Fresenius Medical Care AG & Co. KGaA are guaranteed by FMCH. All U.S. dollar bonds outstanding may be redeemed at the option of the respective issuers at any time at 100% of principal plus accrued interest and a premium calculated pursuant to the terms of the applicable indenture. The holders of the Company’s bonds have the right to request that the issuers repurchase the bonds at 101% of principal plus accrued interest upon the occurrence of a change of control of the Company followed by a decline in the ratings of the respective bonds. The Company has agreed to a number of covenants to provide protection to the bond holders which, under certain circumstances and with certain exceptions for the bonds issued since 2018, limit the ability of the Company and its subsidiaries to, among other things, incur debt, incur liens, engage in sale-leaseback transactions and merge or consolidate with other companies or sell assets. The limitation on incurrence of debt in the bonds issued in 2014 was suspended automatically as the rating of the respective bonds reached investment grade status. At December 31, 2022, the Company was in compliance with all of its covenants under the bonds. Since 2018, bonds can be issued with different maturities under the Company’s €10,000,000 Debt Issuance Program (Debt Issuance Program). 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. On September 20, 2022, the Company issued bonds under its Debt Issuance Program in an aggregate principal amount of €750,000 with a maturity of 5 years and a coupon rate of 3.875%. The proceeds will be used for general corporate purposes, including the refinancing of outstanding indebtedness. 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 December 31, 2022 and December 31, 2021: Accounts Receivable Facility - Maximum amount available and balance outstanding in THOUS Maximum amount available (1) Balance outstanding (2) 2022 2022 Accounts Receivable Facility $ 900,000 € 843,804 $ 100,000 € 93,756 Maximum amount available (1) Balance outstanding (2) 2021 2021 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 at December 31, 2022 and $12,532 at December 31, 2021 (€11,750 and €11,065, respectively). These letters of credit are not included above as part of the balance outstanding at December 31, 2022 and 2021. However, the letters reduce available borrowings under the Accounts Receivable Facility. Under the Accounts Receivable Facility, certain receivables are contributed to NMC Funding Corporation (NMC Funding), a wholly-owned subsidiary. NMC Funding then assigns percentage ownership interests in the accounts receivable to certain bank investors (and their conduit affiliates). Under the terms of the Accounts Receivable Facility, NMC Funding retains the rights in the underlying cash flows of the transferred receivables. Interest is remitted to the bank investors at the end of each tranche period. If NMC requires additional credit, the principal cash flows are reinvested to purchase additional interests in the receivables. Borrowings under the Accounts Receivable Facility are expected to remain long-term. NMC Funding retains significant risks and rewards in the receivables; among other things, the percentage ownership interest assigned requires the Company to retain first loss risk in those receivables, and the Company can, at any time, recall all the then outstanding transferred interests in the accounts receivable. Consequently, the receivables remain on the Company’s consolidated balance sheet and the proceeds from the transfer of percentage ownership interests are recorded as long-term debt. NMC Funding pays interest to the bank investors calculated based on the commercial paper rates for the particular tranches selected. Refinancing fees, which include legal costs and bank fees, are amortized over the term of the facility. Credit Facilities Syndicated Credit Facility On July 1, 2021, the Company entered into a new €2,000,000 sustainability-linked syndicated revolving credit facility (Syndicated Credit Facility). The Syndicated Credit Facility has a term of five years plus two one-year extension options and can be drawn in different currencies. On June 8, 2022, the Company amended and extended the Syndicated Credit Facility to extend the term by one year and replace U.S. dollar-LIBOR as the reference rate with the Term Secured Overnight Financing Rate. The Syndicated Credit Facility, which serves as a back-up line for general corporate purposes, was undrawn as of December 31, 2022 (2021: undrawn). A sustainability component has been embedded in the credit facility, with the margin increasing or decreasing depending on the Company’s sustainability performance. Other At December 31, 2022 and 2021, in conjunction with certain acquisitions and investments, the Company had fixed payments outstanding for acquisitions totaling approximately €14,510 and €22,792, respectively, of which €8,255 and €12,513, respectively, were classified as the current portion of long-term debt. |
Non-current provisions and othe
Non-current provisions and other non-current liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Non-current provisions and other non-current liabilities | |
Non-current provisions and other non-current liabilities | 15. Non-current provisions and other non-current liabilities Of the total amount of non-current provisions and other non-current liabilities amounting to €1,183,910 at December 31, 2022 (2021: €707,563), €988,624 (2021: €405,140) are due in between more than one and three years, €86,464 (2021: €177,882) are due in between three to five years and €108,822 (2021: €124,541) are due after five years. The item “Other non-current liabilities” in the amount of €988,440 at December 31, 2022 (2021: €524,271) includes, among others, put option liabilities of €801,147 (2021: €313,718), accrued labor expenses €105,909 (2021: €112,371) and variable payments outstanding for acquisitions of €33,052 (2021: €37,970). The following table shows the development of non-current provisions in the fiscal year: Development of non-current provisions in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Utilized Reversed Additions Reclassifications 2022 Self-insurance programs 120,408 7,262 — — — 149 14,743 142,562 Personnel expenses 29,280 1,253 70 (4,715) (2,524) 16,201 (9,196) 30,369 Asset retirement obligations 13,777 (582) — (364) (1,197) 956 202 12,792 Interest payable related to income taxes 8,681 46 — — (5,040) 23 — 3,710 Other non-current provisions 11,146 1,016 575 (1,304) (721) 294 (4,969) 6,037 Non-current provisions 183,292 8,995 645 (6,383) (9,482) 17,623 780 195,470 For further information regarding self-insurance programs, see note 2 d). Personnel expenses mainly refer to provisions for severance payments and provisions for share-based plans. As of December 31, 2022, provisions for severance payments amounted to €15,923 (2021: €1,354) and provisions for share-based plans amounted to €7,089 (2021: €18,910). See note 20. The item “Other non-current provisions” in the table above includes provisions for litigation and warranties. The increase during the period in the discounted amount arising from the passage over time and the effect of any change in the discount rate is not material. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefit plans | |
Employee benefit plans | 16. Employee benefit plans General The Company recognizes pension costs and related pension liabilities for current and future benefits to qualified current and former employees of the Company. The Company’s pension plans are structured in accordance with the differing legal, economic and fiscal circumstances in each country. The Company currently has two types of plans, defined benefit and defined contribution plans. In general, plan benefits in defined benefit plans are based on all or a portion of the employees’ years of services and final salary. Plan benefits in defined contribution plans are determined by the amount of contribution by the employee and the employer, both of which may be limited by legislation, and the returns earned on the investment of those contributions. Upon retirement under defined benefit plans, the Company is required to pay defined benefits to former employees when the defined benefits become due. Defined benefit plans may be funded or unfunded. The Company has five major defined benefit plans, one funded plan in the U.S. and one in France as well as one unfunded plan in Germany and two in France. Actuarial assumptions generally determine benefit obligations under defined benefit plans. The actuarial calculations require the use of estimates. The main factors used in the actuarial calculations affecting the level of the benefit obligations are: assumptions on life expectancy, the discount rate and future salary and benefit levels. Under the Company’s funded plans, assets are set aside to meet future payment obligations. An estimated return on the plan assets is recognized as income in the respective period. Actuarial gains and losses are generated when there are variations in the actuarial assumptions and by differences between the actual and the estimated projected benefit obligations and the return on plan assets for that year. The Company’s pension liability is impacted by these actuarial gains or losses. Under defined contribution plans, the Company pays defined contributions to an independent third party as directed by the employee during the employee’s service life, which satisfies all obligations of the Company to the employee. The employee retains all rights to the contributions made by the employee and to the vested portion of the Company paid contributions upon leaving the Company. The Company has a defined contribution plan in the U.S. Defined benefit pension plans During the first quarter of 2002 FMCH, the Company’s U.S. subsidiary, curtailed its defined benefit and supplemental executive retirement plans. Under the curtailment amendment for substantially all employees eligible to participate in the plan, benefits have been frozen as of the curtailment date and no additional defined benefits for future services will be earned. The Company has retained all employee benefit obligations as of the curtailment date. Each year FMCH contributes at least the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. In 2022, FMCH did not have a minimum funding requirement. The Company voluntarily provided €1,127 to the defined benefit plan. Expected funding for 2023 is €1,153. The benefit obligation for all defined benefit plans at December 31, 2022 and 2021, including funded and unfunded obligations, are presented in the following table: Benefit obligation for defined benefit plans in € THOUS 2022 2021 Partially funded obligations U.S. plan 331,158 417,889 French plan 5,926 6,459 Unfunded obligations German plan 394,432 649,270 French plans 10,700 10,928 Total benefit obligations 742,216 1,084,546 Controlling and managing the administration of the plan in the U.S. was delegated by the Company to an administrative committee. This committee has the authority and discretion to manage the assets of the fund and to approve and adopt certain plan amendments. The board of directors of National Medical Care, Inc., a subsidiary of the Company, reserves the right to approve or adopt all major plan amendments, such as termination, modification or termination of the future benefit accruals and plan mergers with other pension plans. Related to defined benefit plans, the Company is exposed to certain risks. Besides general actuarial risks, e.g. the longevity risk and the interest rate risk, the Company is exposed to market risk as well as to investment risk. The following table shows the changes in benefit obligations, the changes in plan assets, the net funded position and the net liability of the pension plans. Benefits paid as shown in the changes in benefit obligations represent payments made from both the funded and unfunded plans while the benefits paid as shown in the changes in plan assets include only benefit payments from the Company’s funded benefit plan. Net pension liability in € THOUS 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year 1,084,546 996,237 Foreign currency translation (gains) losses 27,307 32,169 Current service cost 42,367 37,409 Past service cost (512) 988 Interest cost 22,466 20,298 Transfer of plan participants 219 (247) Actuarial (gains) losses arising from changes in financial assumptions (405,106) 26,504 Actuarial (gains) losses arising from changes in demographic assumptions 756 1,540 Actuarial (gains) losses arising from experience adjustments 3,298 (3,150) Remeasurements (401,052) 24,894 Benefits paid (33,125) (26,828) Settlements — (374) Benefit obligation at end of year 742,216 1,084,546 Change in plan assets: Fair value of plan assets at beginning of year 335,170 311,073 Foreign currency translation gains (losses) 21,974 25,869 Interest income from plan assets 10,539 9,504 Actuarial gains (losses) arising from experience adjustments (82,457) 9,113 Actual return on plan assets (71,918) 18,617 Employer contributions 1,127 1,005 Benefits paid (26,892) (21,394) Fair value of plan assets at end of year 259,461 335,170 Net funded position at end of year 482,755 749,376 Benefit plans offered by other subsidiaries 45,467 45,270 Net pension liability at end of year 528,222 794,646 For the years 2022 and 2021, there were no effects from the asset ceiling. At December 31, 2022, the weighted average duration of the defined benefit obligation was 15 years (2021: 19 years). Pension assets and liabilities related to benefit plans offered by the Company and its subsidiaries as of December 31, 2022 and 2021 are presented in the following table: Pension plan assets and liabilities in € THOUS 2022 2021 Pension plan liabilities U.S. plan 71,790 82,823 German plan 394,432 649,270 French plans 16,533 17,283 Total 482,755 749,376 Thereof current (1) 9,193 8,085 Thereof non-current (2) 473,562 741,291 Benefit plans offered by other subsidiaries Pension assets (3) — (385) Current pension liabilities (1) 4,810 4,324 Non-current pension liabilities (2) 40,657 41,331 Total other pension liabilities, net 45,467 45,270 (1) Recorded in the line item “Current provisions and other current liabilities” in the consolidated balance sheets. (2) Recorded in non-current liabilities as “Pension liabilities” in the consolidated balance sheets. (3) Recorded as “Other non-current assets” in the consolidated balance sheets. Non-current pension liabilities were €514,219 and €782,622 at December 31, 2022 and 2021, respectively. The decrease of €268,403 from 2021 to 2022 was mainly attributable to adjustments to the discount rate, which resulted in an actuarial gain to be recognized in the line item “actuarial gain (loss) on defined benefit pension plans” within the consolidated statements of comprehensive income. For the German benefit plan, which accounts for a substantial part of the pension liability, an interest rate of 4.30% was applied as of December 31, 2022 (December 31, 2021: 1.40%). Approximately 63% of the beneficiaries are located in the U.S. and 8% in France, with the majority of the remaining 29% located in Germany. The discount rates for all plans are based upon yields of portfolios of highly rated debt instruments with maturities that mirror each plan’s benefit obligation. The Company’s discount rates at December 31, 2022 and 2021 are the weighted average of these plans based upon their benefit obligations. The following weighted-average assumptions were utilized in determining benefit obligations at December 31, 2022 and 2021: Weighted average assumptions in % 2022 2021 Discount rate 4.86 2.02 Rate of compensation increase 3.22 3.17 Rate of pension increase 2.00 1.75 Sensitivity analysis Increases and decreases in principal actuarial assumptions by 0.5 percentage Sensitivity analysis in € THOUS 0.5% increase 0.5% decrease Discount rate (51,498) 58,360 Rate of compensation increase 8,447 (8,289) Rate of pension increase 24,819 (22,605) An increase of the mortality rate of 10% would reduce the pension liability by €17,215, while a decrease of 10% would increase the pension liability by €19,187 as of December 31, 2022. The sensitivity analysis was calculated based on the average duration of the pension obligations determined at December 31, 2022. The calculations were performed isolated for each significant actuarial parameter, in order to show the effect on the fair value of the pension liability separately. The sensitivity analysis for compensation increases and for pension increases excludes the U.S. pension plan because it is frozen and therefore is not affected by changes from these two actuarial assumptions. The defined benefit pension plans’ net periodic benefit costs are comprised of the following components for the years ended December 31, 2022, 2021 and 2020: Components of net periodic benefit cost in € THOUS 2022 2021 2020 Service cost 42,367 37,409 40,213 Net interest cost 11,927 10,794 10,452 Prior service cost (512) 988 (244) (Gains) losses from settlements — (374) (331) Net periodic benefit costs 53,782 48,817 50,090 Service cost and net interest cost are allocated as personnel expense within costs of revenues; selling, general and administrative expense; or research and development expense. This is depending upon the area in which the beneficiary is employed. The gain from settlement is included in selling, general and administrative expense. The following weighted-average assumptions were used in determining net periodic benefit cost for the years ended December 31, 2022, 2021 and 2020: Weighted average assumptions in % 2022 2021 2020 Discount rate 2.02 2.02 2.35 Rate of compensation increase 3.17 3.17 3.18 Rate of pension increase 1.75 1.46 1.70 Expected benefit payments are as follows: Defined benefit pension plans: cash outflows in € THOUS 2022 2021 1 year 30,996 28,191 1 – 3 years 67,545 60,421 3 – 5 years 75,674 67,795 5 – 10 years 216,216 196,501 Total 390,431 352,908 Plan Assets The following table presents the fair values of the Company´s pension plan assets at December 31, 2022 and 2021: Fair values of plan assets in € THOUS Quoted prices Quoted prices in active in active markets for Significant Significant markets for Significant Significant identical observable unobservable identical observable unobservable Asset category Total assets inputs inputs Total assets inputs inputs (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) 2022 2021 Equity investments Index funds (1) 73,252 8,588 64,664 — 94,384 9,850 84,534 — Fixed income investments Government securities (2) 3,996 3,789 207 — 9,221 8,964 257 — Corporate bonds (3) 169,634 — 169,634 — 211,992 — 211,992 — Other bonds (4) 9,995 — 3,897 6,098 15,529 — 7,313 8,216 U.S. treasury money market funds (5) 2,491 2,491 — — 3,940 3,940 — — Other types of investments Cash, money market and mutual funds (6) 93 93 — — 104 104 — — Total 259,461 14,961 238,402 6,098 335,170 22,858 304,096 8,216 (1) This category comprises low-cost equity index funds not actively managed that track the S&P 500, S&P 400, Russell 2000, MSCI Emerging Markets Index and the Morgan Stanley International EAFE Index. (2) This Category comprises fixed income investments by the U.S. government and government sponsored entities. (3) This Category primarily represents investment grade bonds of U.S. issuers from diverse industries. (4) This Category comprises private placement bonds as well as collateralized mortgage obligations. (5) This Category represents funds that invest in U.S. treasury obligations directly or in U.S. treasury backed obligations. (6) This Category represents cash, money market funds as well as mutual funds comprised of high grade corporate bonds. The methods and inputs used to measure the fair value of plan assets at the balance sheet date are as follows: ● Common stocks are valued at their market prices. ● Index funds are valued based on market quotes. ● Government bonds are valued based on both market prices and market quotes. ● Corporate bonds and other bonds are valued based on market quotes. ● Cash is stated at nominal value which equals the fair value. ● U.S. Treasury money market funds as well as other money market and mutual funds are valued at their market price. Plan investment policy and strategy in the U.S. The Company periodically reviews the assumption for long-term expected return on pension plan assets. As part of the assumptions review, a range of reasonable expected investment returns for the pension plan as a whole was determined based on an analysis of expected future returns for each asset class weighted by the allocation of the assets. The range of returns developed relies both on forecasts, which include the actuarial firm’s expected long-term rates of return for each significant asset class or economic indicator, and on broad-market historical benchmarks for expected return, correlation, and volatility for each asset class. The Company´s overall investment strategy is to achieve a mix of approximately 99% of investments for long-term growth and income and 1% in cash or cash equivalents. Investment income and cash or cash equivalents are used for near-term benefit payments. Investments are governed by the plan investment policy and include well diversified index funds or funds targeting index performance. The plan investment policy, utilizing a revised target investment allocation in a range around 26% equity and 74% fixed income investments, considers that there will be a time horizon for invested funds of more than 5 years. The total portfolio will be measured against a custom index that reflects the asset class benchmarks and the target asset allocation. The plan investment policy does not allow investments in securities of the Company or other related party securities. The performance benchmarks for the separate asset classes include: S&P 500 Index, S&P 400 Mid-Cap Index, Russell 2000 Index, MSCI EAFE Index, MSCI Emerging Markets Index, Barclays Capital Long-Corporate Bond Index, Bloomberg Barclays U.S. Corporate High Yield Index, and Bloomberg Barclays U.S. High Yield Fallen Angel 3% Capped Index. Defined contribution plans Most FMCH employees are eligible to join a 401(k) savings plan. Employees can deposit up to 75% of their pay up to a maximum of $22.5 (€21.1) if under 50 years old ($30.0 (€28.1) if 50 or over) under this savings plan. The Company will match 50% of the employee deposit up to a maximum Company contribution of 3% of the employee’s pay. The Company’s total expense under this defined contribution plan for the years ended December 31, 2022, 2021, and 2020, was €77,329, €67,612 and €64,855 respectively. Additionally, the Company contributed for the years ended December 31, 2022, 2021, and 2020 €30,272, €30,370 and €28,096 to state pension plans. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' equity | |
Shareholders' equity | 17. Shareholders’ equity Capital stock At December 31, 2022, the Company’s share capital consists of 293,413,449 bearer ordinary shares without par value ( Stückaktien The General Partner of FMC AG & Co. KGaA, Fresenius Medical Care Management AG, Hof an der Saale, is not obliged to make a capital contribution and has not made a capital contribution. It does not participate in the profits and losses or in the assets of the Company. Under the Company’s Articles of Association, the General Partner receives for the management of the Company and the assumption of liability as general partner an annual remuneration independent of profit and loss in the amount of 4% of its share capital (see note 5 d). The General Partner is also reimbursed for any and all expenses in connection with management of the Company’s business, which include remuneration of the members of its Management Board and its supervisory board. Pursuant to Sections 33 and 34 of the German Securities Trading Act (WpHG) any party subject to the notification requirement shall notify the Company when certain mandatory reportable thresholds for voting rights, also by taking into account attribution provisions, are reached, exceeded or fallen below. Section 38 WpHG also stipulates a notification requirement when certain thresholds are reached, exceeded or have fallen below through directly or indirectly held instruments and Section 39 WpHG also stipulates a notification requirement when certain thresholds are reached, exceeded or have fallen below through the addition of voting rights according to Section 33 WpHG and instruments according to Section 38 WpHG. Notifications received by the Company subject to the notification requirements were published in accordance with the applicable legal provisions, as well as posted in the Investors section of the Company’s website at www.freseniusmedicalcare.com. In a notification dated February 8, 2011, Fresenius SE disclosed to the Company pursuant to Section 21 of the WpHG at the date of notification (predecessor provision to Section 33 of the WpHG) that it held 35.74% of the voting rights in FMC AG & Co. KGaA. At December 31, 2022, Fresenius SE held 32.2% of the Company’s voting rights. In addition, Fresenius SE is the sole stockholder of the General Partner. On January 9, 2023, BlackRock, Inc., Wilmington, Delaware, U.S., (BlackRock) with respect to attributed voting rights, disclosed pursuant to Sections 33, 34 of the WpHG that 2.95% of the voting rights of FMC AG & Co. KGaA and pursuant to Section 38 of the WpHG that instruments relating to 0.77% of the voting rights of FMC AG & Co. KGaA were held as of January 4, 2023. On January 6, 2023, Dodge & Cox International Stock Fund, San Francisco, California, U.S., disclosed pursuant to Section 33 of the WpHG that 3.00% of the voting rights of FMC AG & Co. KGaA were held as of January 3, 2023. On December 21, 2022, Harris Associates L.P., Wilmington, Delaware, U.S., with respect to attributed voting rights, disclosed pursuant to Sections 33, 34 of the WpHG that 3.00% of the voting rights of FMC AG & Co. KGaA were held as of December 19, 2022. On December 16, 2022, Dodge & Cox, San Francisco, California, U.S., with respect to attributed voting rights, disclosed pursuant to Sections 33, 34 of the WpHG that 5.03% of the voting rights of FMC AG & Co. KGaA were held as of December 13, 2022. On October 28, 2022, Richard Pzena, with respect to attributed voting rights, disclosed pursuant to Sections 33, 34 of the WpHG that 5.20% of the voting rights of FMC AG & Co. KGaA were held as of October 24, 2022. On July 14, 2022, Artisan Partners Asset Management Inc., Wilmington, Delaware, U.S., with respect to attributed voting rights, disclosed pursuant to Sections 33, 34 of the WpHG that 2.99% of the voting rights of FMC AG & Co. KGaA were held as of July 12, 2022. On March 17, 2022, Harris Associates Investment Trust, Boston, Massachusetts, U.S., disclosed pursuant to Section 33 of the WpHG that 2.98% of the voting rights of FMC AG & Co. KGaA were held as of March 14, 2022. The general meeting of a partnership limited by shares may approve Authorized Capital ( genehmigtes Kapital three half In addition, the general meeting of a partnership limited by shares may create Conditional Capital ( bedingtes Kapital three half All resolutions increasing the capital of a partnership limited by shares also require the consent of the General Partner in order for the resolutions to go into effect. Authorized capital By resolution of the Company’s Annual General Meeting (AGM) on August 27, 2020, the General Partner has been authorized to increase, with the approval of the Supervisory Board, on one or more occasions, the Company’s share capital until August 26, 2025 by up to a total of €35,000 through issue of new bearer ordinary shares for cash contributions, “Authorized Capital 2020/I.” The newly issued shares may also be taken up by a credit and/or financial institution or a consortium of such credit and/or financial institutions retained by the General Partner with the obligation to offer them to the shareholders of the Company. The General Partner is entitled, subject to the approval of the Supervisory Board, to exclude the subscription rights of the shareholders. However, such an exclusion of subscription rights will be permissible only for fractional amounts. No Authorized Capital 2020/I has been issued at December 31, 2022. In addition, by resolution of the AGM on August 27, 2020, the General Partner has been authorized to increase, with the approval of the Supervisory Board, on one or more occasions, the share capital of the Company until August 26, 2025 by up to a total of €25,000 through the issue of new bearer ordinary shares for cash contributions or contributions in kind, “Authorized Capital 2020/II.” The new shares can also be obtained by a credit and/or financial institution or a consortium of such credit and/or financial institutions retained by the General Partner with the obligation to offer the shares to the Company’s shareholders for subscription. The General Partner is entitled, subject to the approval of the Supervisory Board, to exclude the subscription rights of the shareholders. However, such exclusion of subscription rights will be permissible only if (i) in case of a capital increase against cash contributions, the proportionate amount of the share capital of the Company attributable to the shares issued with exclusion of subscription rights exceeds 10% of the share capital neither at the time of this authorization coming into effect nor at the time of the use of this authorization and the issue price for the new shares is not significantly lower than the stock price of the existing listed shares or, (ii) in case of a capital increase against contributions in kind, the purpose of such increase is to acquire companies, parts of companies, interests in companies or other assets. No Authorized Capital 2020/II has been issued at December 31, 2022. The Authorized Capital 2020/I and the Authorized Capital 2020/II became effective upon registration with the commercial register of the local court in Hof an der Saale on September 23, 2020. Conditional capital By resolution of the Company’s AGM on May 12, 2011, the Company’s share capital has been conditionally increased with regards to the Stock Option Plan 2011 (2011 SOP) by up to €12,000 subject to the issue of up to 12 million no par value bearer ordinary shares with a nominal value of €1.00 each (Conditional Capital 2011/I) (see note 20). The conditional capital increase is only executed to the extent subscription rights were awarded under the 2011 SOP, the holders of the subscription rights exercise their right and the Company does not use treasury shares to fulfill the subscription rights, with each stock option awarded exercisable for one ordinary share (see note 20). The Company has the right to deliver ordinary shares that it owns or purchases in the market in lieu of increasing capital by issuing new shares. At December 31, 2022, 2,471,116 options remained outstanding with a remaining average term of 0.58 years under the 2011 SOP. For the year ending December 31, 2022, 409,110 options had been exercised under the 2011 SOP (see note 20). Conditional capital at December 31, 2022 was €8,957 in total, all relating to the 2011 SOP (see note 20). A total of 409,110 shares were issued out of Conditional Capital 2011/I during 2022 (2021: 127,769 shares), increasing the Company’s capital stock by €409 (2021: €127). Treasury stock By resolution of the Company’s AGM on May 20, 2021, the General Partner is authorized to purchase treasury shares up to a maximum amount of 10% of the registered share capital existing at the time of this resolution (€29,289). The shares acquired, together with other treasury shares held by the Company or attributable to the Company pursuant to sections 71a et seqq. AktG, must at no time exceed 10% of the registered share capital.Purchases may be made through the stock exchange, by way of a public tender offer, or a public invitation to shareholders to submit an offer for sale. This authorization may not be used for the purpose of trading in treasury shares. The General Partner is authorized to use treasury shares purchased on the basis of this authorization or any other earlier authorization for any legally permissible purpose, in particular (i) to redeem shares without requiring any further resolution by the general meeting, (ii) to sell treasury shares to third parties against contributions in kind, (iii) to award treasury shares, in lieu of the utilization of conditional capital of the Company, to employees of the Company and companies affiliated with the Company, including members of the management of affiliated companies, and use them to service options or obligations to purchase shares of the Company, and (iv) to use treasury shares to service bonds carrying warrant and/or conversion rights or conversion obligations issued by the Company or companies affiliated with the Company pursuant to section 17 AktG. By resolution of the Company’s AGM on May 12, 2016, the General Partner was authorized to purchase treasury shares up to a maximum amount of 10% of the registered share capital existing at the time of this resolution (€30,537). The shares acquired, together with other treasury shares held by the Company or attributable to the Company pursuant to sections 71a et seqq. AktG, had to at no time exceed 10% of the registered share capital. The purchases were authorized to be made through the stock exchange, by way of a public tender offer, or a public invitation to shareholders to submit an offer for sale. This authorization was not to be used for the purpose of trading in treasury shares. The General Partner was authorized to use treasury shares purchased on the basis of this authorization or any other earlier authorization for any legally permissible purpose, in particular (i) to redeem shares without requiring any further resolution by the general meeting, (ii) to sell treasury shares to third parties against contributions in kind, (iii) to award treasury shares, in lieu of the utilization of conditional capital of the Company, to employees of the Company and companies affiliated with the Company, including members of the management of affiliated companies, and use them to service options or obligations to purchase shares of the Company, and (iv) to use treasury shares to service bonds carrying warrant and/or conversion rights or conversion obligations issued by the Company or companies affiliated with the Company pursuant to section 17 AktG. On the basis of the May 12, 2016 AGM authorization, on June 14, 2019, the Company announced a program to purchase up to 12,000,000 shares for an aggregate purchase amount of up to €660,000. Pursuant to this program, the Company repurchased 10,795,151 treasury shares in the period from June 17, 2019 up to and including April 1, 2020 for an average weighted stock price of €63.50 per share for the purpose of capital reduction. Following the purchases in April 2020, a total of 14,879,979 ordinary shares could further have been purchased based on the authorization granted at the May 12, 2016 AGM. The Company did not make further share repurchases pursuant to such authorization prior to its expiration on May 20, 2021. On December 11, 2020, the Management Board resolved to retire these repurchased shares, together with the remaining 999,951 treasury shares acquired in 2013 on the basis of a previous authorization, in order to decrease the Company’s share capital. As of December 31, 2022 and 2021, the Company did not hold treasury shares. The Company has not made any share repurchases under the current authorization granted by the resolution of the Company’s AGM on May 20, 2021. The following tabular disclosure provides the number of shares acquired in the context of the share buy-back programs as well as the repurchased treasury stock: Treasury Stock Total number of shares purchased and retired as part of publicly Average price per announced plans or Total value of Period share programs (1) shares in € in € THOUS December 31, 2019 60.66 6,107,629 370,502 Purchase of Treasury Stock January 2020 84.37 124,398 10,495 February 2020 (2) 249.10 25,319 6,307 March 2020 63.05 4,842,943 305,362 April 2020 63.07 694,813 43,824 Repurchased Treasury Stock 64.35 5,687,473 365,988 Retirement of repurchased Treasury Stock December 2020 62.44 11,795,102 736,490 TOTAL — — (1) All shares purchased between May 12, 2016 and April 1, 2020 were purchased pursuant to the share purchase program authorized by the AGM resolution of May 12, 2016. The Company did not purchase any shares other than pursuant to such program. (2) The purchase price of the shares of the program beginning on June 17, 2019 was based on the volume weighted average price of the Company’s shares for the period and changes in the volume weighted average price resulted in retroactive adjustments to the purchase price, even if no shares were purchased. The February adjustment, in combination with a lower number of shares purchased, resulted in a particularly high average price per share for the month. Additional paid-in capital Additional paid-in capital is comprised of the premium paid on the issue of shares and stock options, the tax effects from stock options, the compensation expense from stock options, which is recognized according to IFRS 2, as well as changes in ownership interest in a subsidiary that do not result in a loss of control. Additional paid in capital increased primarily as a result of the business combination of InterWell Health (see note 3 for further information) and related tax basis differences in the amount of $41,076 (€41,348 as of the Acquisition Date) as well as other purchases of noncontrolling interests in dialysis clinics in the United States. Retained earnings Retained earnings is comprised mainly of earnings generated by group entities in prior years, to the extent that they have not been distributed, as well as changes of put option liabilities. Dividends Under German law, the amount of dividends available for distribution to shareholders is based upon the unconsolidated balance sheet profit ( Bilanzgewinn Handelsgesetzbuch Cash dividends of €395,556 for 2021 in the amount of €1.35 per share were paid on May 17, 2022. Cash dividends of €392,455 for 2020 in the amount of €1.34 per share were paid on May 26, 2021. Cash dividends of €351,170 for 2019 in the amount of €1.20 per share were paid on September 1, 2020. At the Company’s AGM scheduled to be held on May 16, 2023, the Company’s General Partner and the Company’s Supervisory Board will propose to the shareholders a dividend of €1.12 per share for 2022, payable in 2023. The total expected dividend payment is approximately €328,623. Noncontrolling interests Noncontrolling interests represent the proportion of the net assets of consolidated subsidiaries owned by minority shareholders. The Company has purchase obligations under put options held by the holders of noncontrolling interests in certain of its subsidiaries. These obligations result from contractual put options and are exercisable by the owners of the noncontrolling interests. In addition to noncontrolling interests, the related potential obligations under these put options are reclassified from equity of the Company, with no impact to the income statement, and recognized as a put option liability at the present value of the exercise price of the options in other current or non-current liabilities. Accumulated other comprehensive income allocated to noncontrolling interests mainly relates to currency effects from the translation of foreign operations. The primary fluctuations in noncontrolling interests resulted from the InterWell Health business combination (see note 3) and a deconsolidation of a cardiovascular center in the North America Segment. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2022 | |
Capital management | |
Capital management | 18. The principle objectives of the Company’s capital management strategy are to optimize the weighted average cost of capital and to achieve a balanced mix of total equity and debt. The dialysis industry, in which the Company has a strong market position in global, growing and largely non-cyclical markets, is characterized by recurring cash flows. Due to the Company’s payors’ mostly high credit quality, it is able to generate high, stable, predictable and sustainable cash flows. These generated cash flows allow a reasonable proportion of debt. As of December 31, 2022 and December 31, 2021, total equity and debt were as follows: Total equity, debt and total assets in € THOUS 2022 2021 Total equity including noncontrolling interests 15,449,179 13,979,037 Debt and lease liabilities 13,212,572 13,320,149 Total assets 35,754,114 34,366,558 Debt and lease liabilities in % of total assets 37.0 38.8 Total equity in % of total assets (equity ratio) 43.2 40.7 The Company is not subject to any capital requirements provided for in its Articles of Association. The Company has obligations to issue shares out of the conditional capital relating to the exercise of stock options on the basis of the existing 2011 SOP stock option plan (see note 20). The Company’s financing strategy aims at ensuring financial flexibility, managing financial risks and optimizing its financing cost. The Company ensures its financial flexibility through maintaining sufficient liquidity. Refinancing risks are limited due to a balanced debt maturity profile, which is characterized by a wide range of maturities of up to 2031. In the choice of financing instruments, market capacity, investor diversification, financing conditions and the existing maturity profile are taken into account (see note 14). The Company’s financing structure and business model are reflected in the investment grade ratings. The Company is rated investment grade by Moody’s, Standard & Poor’s and Fitch. On November 15, 2022, Fitch affirmed the corporate credit rating and revised the outlook from stable to negative. Rating (1) Standard & Poor’s Moody’s Fitch Corporate credit rating BBB Baa3 BBB- Outlook stable stable negative (1) A rating is not a recommendation to buy, sell or hold securities of the Company, and may be subject to suspension, change or withdrawal at any time by the assigning rating agency. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share | |
Earnings per share | 19. Earnings per share The following table contains reconciliations of the numerators and denominators of the basic and diluted earnings per share computations for 2022, 2021 and 2020: Reconciliation of basic and diluted earnings per share in € THOUS, except share and per share data 2022 2021 2020 Numerator: Net income attributable to shareholders of FMC AG & Co. KGaA 673,405 969,308 1,164,377 Denominators: Weighted average number of shares outstanding 293,246,430 292,944,732 294,055,525 Potentially dilutive shares — 120,442 223,429 Basic earnings per share 2.30 3.31 3.96 Diluted earnings per share 2.30 3.31 3.96 |
Share-based plans
Share-based plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-based plans | |
Share-based plans | 20. General information on Fresenius Medical Care AG & Co. KGaA long-term incentive plans (Performance Shares) The Company accounts for its share-based plans in accordance with IFRS 2 and has as of December 31, 2022, various share-based compensation plans, which may either be equity- or cash-settled. These plans enable the members of the Management Board, the members of the management boards of affiliated companies, managerial staff members and the senior members of the Company’s managerial staff who serve on the Company’s Executive Committee (Executive Committee) to adequately participate in the long-term, sustained success of the Company. The Fresenius Medical Care AG & Co. KGaA Long Term Incentive Plan 2016 (LTIP 2016), the Fresenius Medical Care AG & Co. KGaA NxStage Long Term Incentive Plan (NxStage LTIP), the Fresenius Medical Care Management Board Long Term Incentive Plan 2019 (MB LTIP 2019), the Fresenius Medical Care AG & Co. KGaA Long Term Incentive Plan 2019 (LTIP 2019), the Fresenius Medical Care Management Board Long Term Incentive Plan 2020 (MB LTIP 2020) and the Fresenius Medical Care AG & Co. KGaA Long Term Incentive Plan 2022+ (LTIP 2022+) are each variable compensation programs with long-term incentive effects which allocate or allocated so-called “Performance Shares.” Performance Shares are non-equity, cash-settled virtual compensation instruments which may entitle plan participants to receive a cash payment depending on the achievement of pre-defined performance targets further defined below as well as the Company’s share price development. The following table provides an overview of these plans. LTIP 2022+ MB LTIP 2020 LTIP 2019 MB LTIP 2019 NxStage LTIP LTIP 2016 Eligible persons Other Plan participants Members of the Management Board and certain members of the Executive Committee Other Plan participants Members of the Management Board Other Plan participants Members of the Management Board and other plan participants Years in which an allocation occurred 2022 2020-2022 2019-2021 2019 2019 2016–2018 Months in which an allocation occurred July, December November (2020), July, December July, December February July, December Under the current compensation system, the supervisory board of Management AG defines an initial value for each Management Board member’s allocation by applying a multiplier to the relevant base salary. Such allocation value equals 135% (multiplier of 1.35) of the relevant base salary. In case of appointments to the Management Board during a fiscal year, the amount to be allocated to such member can be pro-rated. For other plan participants, the determination of the allocation value will be made by the Management Board, taking into account the individual responsibility of each plan participant. The initial allocation value is determined in the currency in which the respective participant receives his or her base salary at the time of the allocation. In order to determine the number of Performance Shares each plan participant receives, the respective allocation value will be divided by the value per Performance Share at the time of the allocation, which is mainly determined based on the average price of the Company’s shares over a period of thirty calendar days prior to the respective allocation date. During 2022, the Company allocated 241,835 Performance Shares under the MB LTIP 2020 at a measurement date weighted average fair value of €28.37 each and a total fair value of €6,861, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2022, the Company allocated 1,737,591 Performance Shares under the LTIP 2022+ at a measurement date weighted average fair value of €27.33 each and a total fair value of €47,488, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2021, the Company allocated 192,446 Performance Shares under the MB LTIP 2020 at a measurement date weighted average fair value of €54.69 each and a total fair value of €10,525, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2021, the Company allocated 935,814 Performance Shares under the LTIP 2019 at a measurement date weighted average fair value of €53.27 each and a total fair value of €49,851, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2020, the Company allocated 159,607 Performance Shares under the MB LTIP 2020 at a measurement date weighted average fair value of €64.20 each and a total fair value of €10,247, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. During 2020, the Company allocated 800,165 Performance Shares under the LTIP 2019 at a measurement date weighted average fair value of €64.06 each and a total fair value of €51,259, which will be revalued if the fair value changes. The total fair value will be amortized over the vesting period. The number of allocated Performance Shares may change over the performance period of three years, depending on the level of achievement of the following: (i) Revenue growth at constant currency (Revenue Growth), (ii) Net Income growth at constant currency (Net Income Growth) and (iii) Return On Invested Capital (ROIC). Revenue, Net Income and ROIC are determined according to the Company’s consolidated reported and audited figures in Euro for the financial statements prepared in accordance with IFRS, applying the respective plan terms. Revenue Growth, Net Income Growth, for the purpose of the relevant plan, are determined at constant currency. Fresenius Medical Care AG & Co. KGaA long-term incentive plans during 2022 (Performance Shares) The supervisory board of Management AG has approved and adopted the MB LTIP 2020 effective January 1, 2020, for members of the Management Board and, as subsequently agreed, certain members of the Executive Committee. For the members of the management boards of affiliated companies and managerial staff members, the Management Board has approved and adopted the LTIP 2022+ effective January 1, 2022. For allocations in fiscal year 2022, the target achievements of the performance targets Revenue Growth and Net Income Growth are calculated based on a Compound Annual Growth Rate (CAGR) over the 3-year performance period. The basis for the first annual growth rate is 2021. For ROIC, annual target values apply. For all three performance targets, target achievement corridors which will be used for the calculation of the respective target achievements were defined. For allocations in fiscal year 2022, the degree of target achievement for all three performance targets is weighted with 1/3 1/3 The number of performance shares allocated to plan participants at the beginning of the performance period is multiplied with the degree of overall target achievement to determine the final number of performance shares. For the MB LTIP 2020, the final number of Performance Shares is generally deemed earned three years after the day of an allocation. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty For the LTIP 2022+, the final number of Performance Shares generally vests three years after the allocation date. The number of vested performance shares is then multiplied with the average share price of the Company during a period of 30 days prior to the end of this vesting period. The resulting amount, which is capped in total at an amount equaling 400% of the allocation value received by the participant, will then be paid to the plan participants as cash compensation. Fresenius Medical Care AG & Co. KGaA long-term incentive plans during 2016–2021 (Performance Shares) Allocations under the LTIP 2016 could be made throughout 2016 to 2018, under the MB LTIP 2019 in 2019 and under the LTIP 2019 throughout 2019 to 2021. In 2019, an allocation under the NxStage LTIP was made to the management board and managerial staff members of NxStage Medical, Inc. (NxStage) in the course of the integration of NxStage into the Company. Allocations under the MB LTIP 2020 can be made since January 1, 2020. For Performance Shares allocated throughout 2020 to 2021, for the fiscal years 2020, 2021 and 2022, an annual target achievement level of 100% will be reached for the Revenue Growth performance target if Revenue Growth is 6%; Revenue Growth of 1% will lead to a target achievement level of 0% and the maximum target achievement level of 200% will be reached in case of Revenue Growth of at least 11%. If Revenue Growth ranges between these values, the degree of target achievement will be linearly interpolated between these values. For Performance Shares allocated throughout 2020 to 2021, for the fiscal years 2020, 2021 and 2022, an annual target achievement level of 100% for the Net Income Growth performance target will be reached if Net Income Growth is 5%. In case of Net Income Growth of 0%, the target achievement level will also be 0%; the maximum target achievement of 200% will be reached in the case of Net Income Growth of at least 10%. If Net Income Growth ranges between these values, the degree of target achievement will be linearly interpolated between these values. For Performance Shares allocated throughout 2020 to 2021, for the fiscal years 2020, 2021 and 2022, an annual target achievement level of 100% for the ROIC performance target will be reached if ROIC is 6.0%. In case of a ROIC of 5.5%, the target achievement level will be 0%; the maximum target achievement of 200% will be reached in the case of a ROIC of at least 6.5%. Between these values, the degree of target achievement will be determined by means of linear interpolation. For Performance Shares allocated throughout 2016 to 2019, for each individual year of the three-year performance period an annual target achievement level of 100% will be reached for the Revenue Growth performance target if Revenue Growth is 7%; Revenue Growth of 0% will lead to a target achievement level of 0% and the maximum target achievement level of 200% will be reached in case of Revenue Growth of at least 16%. If Revenue Growth ranges between these values, the degree of target achievement will be linearly interpolated between these values. For Performance Shares allocated throughout 2016 to 2019, for each individual year of the three-year performance period an annual target achievement level of 100% for the Net Income Growth performance target will be reached if Net Income Growth is 7%. In case of Net Income Growth of 0%, the target achievement level will also be 0%; the maximum target achievement of 200% will be reached in the case of Net Income Growth of at least 14%. Between these values, the degree of target achievement will be determined by means of linear interpolation. For Performance Shares allocated throughout 2016 to 2019, an annual target achievement level of 100% for ROIC will be reached if the target ROIC as defined for the applicable year is reached. For Performance Shares allocated throughout 2016 to 2019, the target ROIC is 7.3% for 2016, 7.5% for 2017, 7.7% for 2018, 7.9% for 2019 8.1% for 2020 and 8.1% for 2021. A target achievement level of 0% will be reached if the ROIC falls below the target ROIC for the applicable year by 0.2 percentage points or more, whereas the maximum target achievement level of 200% will be reached if the target ROIC for the respective year is exceeded by 0.2 percentage points or more. The degree of target achievement will be determined by means of linear interpolation if the ROIC ranges between these values. In case the annual ROIC target achievement level in the third year of a performance period for Performance Shares allocated throughout years 2016 to 2019 is equal to or higher than the ROIC target achievement level in each of the two previous years of such performance period, the ROIC target achievement level of the third year is deemed to be achieved for all years of the applicable performance period. For Performance Shares allocated throughout 2016 to 2021, the target achievement level for each of the three performance targets will be weighted annually at one-third to determine the yearly target achievement for each year of the three-year performance period. The level of overall target achievement over the three-year performance period will then be determined on the basis of the mean of these three average yearly target achievements. The overall target achievement can be in a range of 0% to 200%. For Performance Shares allocated in fiscal year 2019 under the LTIP 2019, the level of target achievement may be subject to an increase if certain targets in relation to the second phase of the Company’s Global Efficiency Program (GEP-II targets), which are measured at constant currency, and in relation to the Free Cash Flow (Free Cash Flow target) are achieved. For these Performance Shares, the overall target achievement shall be increased by 20 percentage points if the GEP-II targets achievement is 100%. Furthermore, the overall target achievement for these Performance Shares shall be increased by 20 percentage points if the Free Cash Flow target achievement is 200%. In case of a GEP-II targets achievement between 0% and 100% and a Free Cash Flow target achievement between 0% and 200%, the increase of the overall target achievement will be calculated by means of linear interpolation. The overall target achievement shall not exceed 200%. The number of Performance Shares allocated to the plan participants at the beginning of the performance period will each be multiplied by the level of overall target achievement in order to determine the final number of Performance Shares. For the MB LTIP 2020, the final number of Performance Shares is generally deemed earned three years after the day of an allocation. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty For the LTIP 2019, the final number of Performance Shares is generally deemed earned three years after the day of a respective allocation. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty For the MB LTIP 2019, the final number of Performance Shares is generally deemed earned four years after the day of a respective allocation. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty For the NxStage LTIP, the final number of Performance Shares allocated in February 2019 is generally deemed earned in December 2022. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty For the LTIP 2016, the final number of Performance Shares is generally deemed earned four years after the day of an allocation. The number of such vested Performance Shares is then multiplied by the average Company share price over a period of thirty Fresenius Medical Care AG & Co. KGaA long-term incentive program 2011 (stock options and Phantom Stock) On May 12, 2011, the 2011 SOP was established by resolution of the Company’s AGM. The 2011 SOP, together with the Phantom Stock Plan 2011, which was established by resolution of the General Partner’s Management and supervisory boards, forms the Company’s LTIP 2011. Under the LTIP 2011, participants were granted awards, which consisted of a combination of stock options and Phantom Stock. Awards under the LTIP 2011 were subject to a four-year vesting period. Vesting of the awards granted was subject to achievement of pre-defined performance targets. The 2011 SOP was established with a conditional capital increase up to €12,000 subject to the issue of up to twelve million non-par value bearer ordinary shares with a nominal value of €1.00 per share. The final grant under the LTIP 2011 was made in December 2015. Stock options granted under the LTIP 2011 have an eight Phantom Stock awards under the LTIP 2011 entitled the holders to receive payment in euro from the Company upon exercise of the Phantom Stock. The payment per Phantom Stock in lieu of the issuance of such stock was based upon the share price on the Frankfurt Stock Exchange of one of the Company’s shares on the exercise date. Phantom Stock awards had a five Information on holdings under share-based plans At December 31, 2022 and 2021, the members of the Management Board and plan participants other than the members of the Management Board held the following Performance Shares under the share-based plans: Outstanding Performance Shares 2022 2021 Members of the Members of the Management Other plan Management Other plan Board participants Total Board participants Total LTIP 2022+ — 1,676,091 1,676,091 — — — MB LTIP 2020 409,511 163,031 572,542 352,053 — 352,053 LTIP 2019 — 1,525,120 1,525,120 8,869 2,399,649 2,408,518 MB LTIP 2019 24,326 19,372 43,698 102,435 12,564 114,999 NxStage LTIP — — — — 32,054 32,054 LTIP 2016 — — — 56,624 366,059 422,683 Additionally, at December 31, 2022, the members of the Management Board held 209,400 stock options (December 31, 2021: 455,970) and plan participants other than the members of the Management Board held 2,261,716 stock options (December 31, 2021: 2,557,339) under the 2011 SOP. Additional information on share-based plans The table below provides reconciliations for stock options outstanding at December 31, 2022, 2021 and 2020. Transactions Weighted average exercise Options price Stock options for shares in thousands in € Balance at December 31, 2020 3,201 71.50 Granted — — Exercised (1) 128 49.83 Expired 60 70.60 Balance at December 31, 2021 3,013 72.44 Granted — — Exercised (2) 409 49.93 Expired 133 56.55 Balance at December 31, 2022 2,471 77.02 (1) The average share price at the date of exercise of the options was €65.92 . (2) The average share price at the date of exercise of the options was €54.00 . The following tables provide a summary of fully vested options outstanding and exercisable at December 31, 2022 and 2021, respectively: Outstanding and exercisable stock options 2022 Outstanding Exercisable Weighted Weighted Weighted Range of average average average exercise Number remaining exercise Number exercise prices of contractual price of price in € options life in € options in € 45.01 — — — 50.01 — — — 55.01 — — — 60.01 — — — 65.01 — — — 70.01 — — — 75.01 — 2,471,116 0.58 77.02 2,471,116 77.02 2,471,116 0.58 77.02 2,471,116 77.02 Outstanding and exercisable stock options 2021 Outstanding Exercisable Weighted Weighted Weighted Range of average average average exercise Number remaining exercise Number exercise prices of contractual price of price in € options life in € options in € 45.01 — 488,745 0.57 49.93 488,745 49.93 50.01 — — — — — — 55.01 — 31,080 0.92 58.63 31,080 58.63 60.01 — — — — — — 65.01 — — — — — — 70.01 — — — — — — 75.01 — 2,493,484 1.58 77.02 2,493,484 77.02 3,013,309 1.41 72.44 3,013,309 72.44 During the fiscal years ended December 31, 2022, 2021, and 2020, the Company received cash of €20,427, €6,367 and €12,445, respectively, from the exercise of stock options (see note 17). The intrinsic value of stock options exercised for the twelve-month periods ended December 31, 2022, 2021, and 2020 was €1,665, €2,056 and €4,402, respectively. The compensation expense related to cash-settled share-based payment transactions is determined based upon the fair value at the measurement date and the number of Phantom Stock or Performance Shares allocated which will be recognized over the vesting period. The compensation expense that the Company recognized for Performance Shares for the fiscal years ended December 31, 2022, 2021 and 2020, respectively, is presented in the table below. Compensation expense related to cash-settled plans in € THOUS 2022 2021 2020 LTIP 2022+ 3,765 — — MB LTIP 2020 (629) 2,112 2,115 LTIP 2019 (4,416) 21,761 13,689 MB LTIP 2019 (358) 299 820 NxStage LTIP (758) 296 513 LTIP 2016 (3,475) 3,826 21,864 LTIP 2011 — — 1,894 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 21. The Company leases land, buildings and improvements, machinery and equipment, as well as IT- and office equipment under various lease agreements. Leasing in the consolidated statements of income The following table shows the effects from lease agreements on the consolidated statements of income for the year ended December 31, 2022, 2021 and 2020: Leasing in the consolidated statements of income in € THOUS 2022 2021 2020 Depreciation on right-of-use assets 746,471 690,476 703,999 Impairments on right-of-use assets 27,646 18,696 3,496 Expenses relating to short-term leases 52,420 44,923 49,532 Expenses relating to leases of low-value assets 17,421 23,177 27,359 Expenses relating to variable lease payments 13,803 12,158 12,442 Income from subleasing right-of-use assets 3,340 3,119 4,165 Interest expense on lease liabilities 151,317 143,160 159,148 For information regarding leases with related parties, see note 5 b). Leases in the consolidated balance sheets At December 31, 2022 and 2021, the acquisition costs and the accumulated depreciation of right-of-use assets consisted of the following: Acquisition costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Additions Reclassifications Disposals 2022 Right-of-use assets: Land 38,094 283 — 1,922 — (1,419) 38,880 Right-of-use assets: Buildings and improvements 5,952,476 261,708 (15,928) 492,086 (4,122) (75,814) 6,610,406 Right-of-use assets: Machinery and equipment 389,894 21,241 — 37,508 (43,747) (73,996) 330,900 Right-of-use assets 6,380,464 283,232 (15,928) 531,516 (47,869) (151,229) 6,980,186 Acquisition costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2021 translation group Additions Reclassifications Disposals 2021 Right-of-use assets: Land 34,510 782 20 4,917 — (2,135) 38,094 Right-of-use assets: Buildings and improvements 5,017,785 346,627 40,808 614,918 1,266 (68,928) 5,952,476 Right-of-use assets: Machinery and equipment 390,902 27,947 (587) 31,561 (48,975) (10,954) 389,894 Right-of-use assets 5,443,197 375,356 40,241 651,396 (47,709) (82,017) 6,380,464 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2022 translation group Additions loss Reclassifications Disposals 2022 Right-of-use assets: Land 11,344 5 — 4,374 217 — (1,199) 14,741 Right-of-use assets: Buildings and improvements 1,804,045 71,885 (6,300) 684,277 27,249 251 (47,771) 2,533,636 Right-of-use assets: Machinery and equipment 248,635 13,076 — 57,820 180 (3,465) (71,563) 244,683 Right-of-use assets 2,064,024 84,966 (6,300) 746,471 27,646 (3,214) (120,533) 2,793,060 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2021 translation group Additions loss Reclassifications Disposals 2021 Right-of-use assets: Land 8,106 222 6 4,149 3 — (1,142) 11,344 Right-of-use assets: Buildings and improvements 1,120,019 93,757 (2,170) 613,994 17,621 477 (39,653) 1,804,045 Right-of-use assets: Machinery and equipment 185,184 15,456 (214) 72,333 1,072 (15,720) (9,476) 248,635 Right-of-use assets 1,313,309 109,435 (2,378) 690,476 18,696 (15,243) (50,271) 2,064,024 Book value in € THOUS December 31, December 31, 2022 2021 Right-of-use assets: Land 24,139 26,750 Right-of-use assets: Buildings and improvements 4,076,770 4,148,431 Right-of-use assets: Machinery and equipment 86,217 141,259 Right-of-use assets 4,187,126 4,316,440 Depreciation expense is allocated within costs of revenue, selling, general and administrative and research and development expenses depending upon the area in which the asset is used. Impairment losses are allocated within costs of revenue and selling, general and administrative expense, depending upon the area in which the asset is used. For a maturity analysis of lease liabilities see note 23. Leasing in the consolidated statements of cash flows Total cash outflows from leases were €1,013,913 for the year ended December 31, 2022 (December 31, 2021 and 2020: €921,988 and €951,066, respectively). Leases that the Company entered into as a lessee that have not yet begun as of December 31, 2022 will result in future cash outflows of €133,367 (December 31, 2021 and 2020: €118,929 and €123,679, respectively). Potential future cash outflows resulting from purchase options of €16,548 were not reflected in the measurement of the lease liabilities as of December 31, 2022, as the exercise of the respective options is not reasonably certain (December 31, 2021 and 2020: €30,309 and €41,215, respectively). Potential future cash outflows resulting from extension options of €7,547,505 were not reflected in the measurement of the lease liabilities as of December 31, 2022, as the exercise of the respective options is not reasonably certain (December 31, 2021 and 2020: €7,229,433 and €6,407,955, respectively). The major part of these potential future cash outflows relates to extension options in real estate lease agreements, primarily for dialysis clinics in the North America Segment. Individual lease agreements include multiple extension options. The Company uses extension options to obtain a high degree of flexibility in performing its business. These extension options held are exercisable solely by the Company. Potential future cash outflows resulting from termination options of €3,338 were not reflected in the measurement of the lease liabilities as of December 31, 2022, as the exercise of the respective options is not reasonably certain (December 31, 2021 and 2020: €3,095 and €3,374, respectively). For additional information regarding residual value guarantees in certain lease contracts, see note 22. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and contingencies | |
Commitments and contingencies | 22. 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. 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 (the Monitor). Due in part to COVID-19 pandemic restrictions, the monitorship faced certain delays, but the Company is working to complete all its obligations under the resolution with the DOJ and SEC. The Monitor certified to the Company’s implementation of an effective anti-corruption compliance program on December 30, 2022, and submitted her final certification report on January 31, 2023. Subject to a review of that report, the DOJ and SEC will accept or reject the Monitor’s certification. Assuming certification is accepted, the NPA and SEC Order are expected to terminate on March 31, 2023. 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 ® ® As litigation proceeded, the parties refined their positions, resulting in AIG requesting recovery of approximately $60,000 (€48,896) of its settlement outlay and FMCH requesting $108,000 (€88,012) in defense fees and costs. The parties filed multiple, crossing motions for summary judgment. On January 12, 2023, the trial court decided these motions. Among its rulings, the court largely rejected both FMCH’s theories for recovering defense costs and AIG’s theories for recovering settlement funding. However, the trial court denied both parties’ motions on one issue and severed and continued that issue for trial. The issue to be tried relates to FMCH’s exhaustion of deductible obligations for, and weightings of, policy years to be considered in allocating between AIG and FMCH the $250,000 (€203,732) paid as a single, aggregate sum to resolve the personal injury litigation as a whole. As related to this one issue in isolation, AIG’s motion, had it prevailed, would have supported AIG’s recovering approximately $48,000 (€44,560); FMCH’s corresponding motion would have resulted in no recovery for AIG. With both motions having been denied, neither party has indicated its position for trial. No date has been set for trial. Following trial, appeals may be pursued on all rulings by the trial court. 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. Thereafter, the USAO conducted an investigation, in which FMCH cooperated, and declined to intervene in the matter. After the United States District Court for Maryland unsealed the 2014 relator’s qui tam complaint that gave rise to the investigation, the relator served the complaint and proceeded on his own by filing an amended complaint, which FMCH moved to dismiss on multiple grounds. On October 5, 2021, on FMCH’s venue motion, the District Court for Maryland transferred the case to the United States District Court for Massachusetts. Flanagan v. Fresenius Medical Care Holdings, Inc., 1:21-cv-11627. On December 5, 2022, the Massachusetts District Court granted FMCH’s motion and dismissed the case with prejudice. Relator has filed a motion to reconsider and asserted his intent to appeal. 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) inquiring into FMCH’s involvement in certain dialysis facility joint ventures in New York. After the Brooklyn USAO completed its investigation, in which FMCH cooperated, and declined to intervene on the qui tam complaint that gave rise to the investigation, the relator proceeded with litigation on its own. CKD Project LLC v. Fresenius Medical Care, 2014 Civ. 06646 (E.D.N.Y. November 12, 2014). 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 December 20, 2022, the United States Court of Appeals for the Second Circuit denied the relator’s appeal and affirmed the dismissal. The relator’s petition for rehearing en banc In 2014, two New York physicians filed under seal a qui tam complaint in the United States District Court for the Eastern District of New York (Brooklyn), alleging violations of the False Claims Act relating to FMCH’s vascular access line of business. As previously disclosed, on October 6, 2015, the United States Attorney for the Eastern District of New York (Brooklyn) issued subpoenas to FMCH indicating its investigation now seen to be related to the two relators’ complaint. FMCH cooperated in the Brooklyn investigation, which was understood to be separate and distinct from settlements entered in 2015 in Connecticut, Florida and Rhode Island of allegations against American Access Care LLC (AAC) following FMCH’s 2011 acquisition of AAC. On July 12, 2022, after the Court denied the USAO’s motions to renew the sealing of the relators’ complaint, the USAO filed a complaint-in-intervention. United States ex rel. Pepe and Sherman v. Fresenius Vascular Care, Inc. et al, 1:14-cv-3505. The United States’ and relators’ complaints allege that the defendants billed and received government payment for surgery that was not medically necessary. FMCH expects to defend the allegations asserted in the litigation now proceeding. 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. FMCH advised the USAO that, under the asset sale provisions of its 2013 Shiel acquisition, it was not responsible for Shiel’s conduct prior to the date of the acquisition. On December 12, 2017, FMCH sold to Quest Diagnostics certain Shiel operations. Nonetheless, FMCH cooperated in the Brooklyn USAO’s investigation. On June 14, 2022, the Brooklyn USAO declined to intervene on two anonymous relator complaints that underlay the investigation. The relators, who remain anonymous, are proceeding with litigation at their own expense against both Shiel and FMCH entities, alleging that the defendants wrongly caused government payers to pay for laboratory tests that were falsely or improperly invoiced and retaliated against relators for objecting to the alleged misconduct. Relator v. Shiel Medical Laboratory, 1:16-cv-01090 (E.D.N.Y. 2016); Relator v. Shiel Holdings, 1:17-cv-02732 (E.D.N.Y. 2017). FMCH will defend allegations directed against entities it controls. On March 12, 2018, Vifor Fresenius Medical Care Renal Pharma Ltd. and Vifor Fresenius Medical Care Renal Pharma France S.A.S. (collectively, VFMCRP) (see note 5), filed a complaint for patent infringement against Lupin Atlantis Holdings SA and Lupin Pharmaceuticals Inc. (collectively, Lupin), and Teva Pharmaceuticals USA, Inc. (Teva) in the U.S. District Court for the District of Delaware (Case 1:18-cv-00390-MN, 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 ® ® ® ® ® ® 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 cooperated 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 or HBDI). The information request relates to specific data processing functions of a few of the Company’s peritoneal dialysis devices. The Company is committed to comply with the HBDI’s request and cooperate with them, and it is working to provide the relevant information. 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 FME25 Program, 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 January 3, 2023, FMCH received a subpoena from the Attorney General for the District of Columbia related to the activities of the American Kidney Foundation (AKF) and grounded in anti-trust concerns, including market allocation within the District of Columbia. FMCH’s relationship with AKF was the subject of previously reported, but resolved, investigation by agencies of the United States and litigation against United Healthcare. FMCH is cooperating in the District of Columbia investigation. From time to time, the Company is a party to or may be threatened with other litigation or arbitration, claims or assessments arising in the ordinary course of its business. Management regularly analyzes current information including, as applicable, the Company’s defenses and insurance coverage and, as necessary, provides accruals for probable liabilities for the eventual disposition of these matters. The Company, like other health care providers, insurance plans and suppliers, conducts its operations under intense government regulation and scrutiny. 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 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 FCPA, 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. The Company is 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. The German tax authorities re-qualified dividends received in connection with intercompany mandatorily redeemable preferred shares into fully taxable interest payments for the years 2006 until 2013, which could lead to additional tax payments in the mid-double-digit million range. Additionally, German tax authorities objected to the Company’s tax returns and took the position that income of one of the Company’s finance entities for 2017 and future periods should be subject to German Controlled Foreign Corporation taxation resulting in potential additional income tax payments in the upper double-digit million range. In both cases, the Company will take any appropriate legal action to defend its position. The Company is subject to residual value guarantees in certain lease contracts, primarily real estate contracts, for which it is the lessee in the amount of $541,070 (€507,285). As of December 31, 2022, the estimated fair market value of the underlying leased assets exceeded the related residual value guarantees and, therefore, the Company did not have any risk exposure relating to these guarantees. Other than those individual contingent liabilities mentioned above, the current estimated amount of the Company’s other known individual contingent liabilities is immaterial. For further information regarding the Company’s purchase commitments, see note 8 and note 10. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments | |
Financial instruments | 23. The following tables show the carrying amounts and fair values of the Company’s financial instruments at December 31, 2022 and December 31, 2021: Carrying amount and fair value of financial instruments in € THOUS December 31, 2022 Carrying amount Fair value Amortized Not cost FVPL FVOCI classified Total Level 1 Level 2 Level 3 Cash and cash equivalents 1,118,503 155,284 — — 1,273,787 155,284 — — Trade accounts and other receivables from unrelated parties 3,489,680 — — 84,590 3,574,270 — — — Accounts receivable from related parties 140,072 — — — 140,072 — — — Derivatives - cash flow hedging instruments — — — 9,151 9,151 — 9,151 — Derivatives - not designated as hedging instruments — 10,627 — — 10,627 — 10,627 — Equity investments — 80,201 69,792 — 149,993 36,227 70,973 42,793 Debt securities — 106,215 338,589 — 444,804 444,804 — — Other financial assets (1) 121,095 — — 128,015 249,110 — — — Other current and non-current assets 121,095 197,043 408,381 137,166 863,685 — — — Financial assets 4,869,350 352,327 408,381 221,756 5,851,814 — — — Accounts payable to unrelated parties 813,255 — — — 813,255 — — — Accounts payable to related parties 118,083 — — — 118,083 — — — Short-term debt 669,013 — — — 669,013 — — — Long-term debt 7,864,796 — — — 7,864,796 6,366,775 474,930 — Lease liabilities — — — 4,678,763 4,678,763 — — — Derivatives - cash flow hedging instruments — — — 568 568 — 568 — Derivatives - not designated as hedging instruments — 7,422 — — 7,422 — 7,422 — Variable payments outstanding for acquisitions — 37,846 — — 37,846 — — 37,846 Put option liabilities — — — 1,468,517 1,468,517 — — 1,468,517 Other financial liabilities (2) 1,107,827 — — — 1,107,827 — — — Other current and non-current liabilities 1,107,827 45,268 — 1,469,085 2,622,180 — — — Financial liabilities 10,572,974 45,268 — 6,147,848 16,766,090 — — — Carrying amount and fair value of financial instruments in € THOUS December 31, 2021 Carrying amount Fair value Amortized cost FVPL FVOCI Not 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 December 31, 2022 and 2021, other financial assets primarily include lease receivables, deposits, guarantees, securities, vendor and supplier rebates as well as notes receivable. (2) As of December 31, 2022 and 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 occured as of December 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 occurred as of December 31, 2021. The Company accounts for transfers at the end of the reporting period. 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 (including receivables related to the Accounts Receivable Facility, see note 14), Accounts receivable from related parties and Other financial assets are consequently measured at amortized cost. Cash and cash equivalents are comprised of cash funds and other short-term investments. Cash funds are measured at amortized cost. Short-term investments are highly liquid and readily convertible to known amounts of cash. Short-term investments are measured at FVPL. The risk of changes in fair value is insignificant. Equity investments are not held for trading. At initial recognition the Company elected, on an instrument-by-instrument basis, to represent subsequent changes in the fair value of individual strategic investments in OCI. All equity investments for which changes in fair value are recorded in OCI relate to purchases of publicly traded shares or percentage ownership of companies in the health sciences or adjacent fields and are made up of individually non-significant investments. At December 31, 2022, the Company held 12 non-listed equity investments (December 31, 2021: 12). During 2022, gains of €66,534 (December 31, 2021: €33,948) were transferred from OCI to retained earnings, primarily due to the disposal of an investment measured at fair value through OCI and the subsequent transfer of the related net gain to retained earnings by Vifor Fresenius Medical Renal Pharma Ltd. (the Company’s equity method investee) as well as a disposal of an investment. There were no dividends recognized during 2022 and 2021 from these equity investments. If equity instruments are quoted in an active market, the fair value is based on price quotations at the period-end-date. As necessary, the Company engages external valuation firms to assist in determining 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 Company’s listed and non-listed equity investments measured at FVOCI had the following fair values at December 31, 2022 and 2021: Equity investments measured at FVOCI in € THOUS 2022 2021 Non-listed equity investments 69,792 69,595 Equity investments FVOCI 69,792 69,595 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 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 and subsequently measured at amortized cost. 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 and, in certain limited instances, might contain a fixed floor price. 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 an external valuation firm to assist in the valuation of certain put options. The external valuation assists the Company in estimating the fair values using a combination of discounted cash flows and a multiple of earnings and/or revenue. Under those limited circumstances in which the put option might contain a fixed floor price, the external valuation firm may assist the Company with the valuation by performing a Monte Carlo Simulation analysis to simulate the exercise price. 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 (or enterprise value for the put options granted in the InterWell Health business combination) of 10% compared to the actual estimation as of the balance sheet date. The corresponding increase in fair value of €103,061 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 (or enterprise value for the put options granted in the InterWell Health business combination) would have an effect of less than 1% on the total liabilities and less than 1% on the shareholder’s equity of the Company. At December 31, 2022, 2021 and 2020 the Company’s potential obligations under these put option liabilities, which are recorded in other current liabilities and other non-current liabilities, were €1,468,517, €992,423 and €882,422, respectively. At December 31, 2022, 2021 and 2020, put option liabilities with an aggregate purchase obligation of €533,969, €561,872 and €395,759, respectively, were exercisable. In the last three fiscal years ending December 31, 2022, 231 such put options have been exercised for a total consideration of €85,087. Following is a roll forward of Level 3 financial instruments at December 31, 2022, 2021 and 2020: Reconciliation from beginning to ending balance of level 3 financial instruments in € THOUS 2022 2021 2020 Variable Variable Variable payments payments payments Equity outstanding for Put option Equity outstanding for Put option Equity outstanding for Put option investments acquisitions liabilities investments acquisitions liabilities investments acquisitions liabilities Beginning balance at January 1, 50,679 47,690 992,423 188,518 66,359 882,422 183,054 89,677 934,425 Transfer to level 1 — — — (158,551) — — — — — Increase 2,804 46 646,271 21,137 9,488 112,194 — 17,253 51,388 Decrease — (6,499) (7,026) — (22,499) (18,495) — (35,764) (99,877) Gain / loss recognized in profit or loss (1) (13,968) (3,904) — (12,975) (6,716) — 22,489 (1,996) — Gain / loss recognized in equity — — (180,431) — — (54,019) — — 73,993 Foreign currency translation and other changes 3,278 513 17,280 12,550 1,058 70,321 (17,025) (2,811) (77,507) Ending balance at December 31, 42,793 37,846 1,468,517 50,679 47,690 992,423 188,518 66,359 882,422 (1) Includes realized and unrealized gains / losses. Derivative financial instruments Derivative financial risks The Company is exposed to effects related to foreign exchange fluctuations in connection with its international business activities that are denominated in various currencies. In order to finance its business operations, the Company issues bonds and enters mainly into long-term credit agreements with banks. Due to these financing activities, the Company is exposed to changes to the prevailing interest rates. In order to manage the risk of currency exchange rate and interest rate fluctuations, the Company enters into various hedging transactions by means of derivative instruments with highly rated financial institutions (generally investment grade) as authorized by the Company’s General Partner. On a quarterly basis, the Company performs an assessment of its counterparty credit risk. The Company currently considers this risk to be low (as the counterparties are generally investment grade). The Company’s policy, which has been consistently followed, is that financial derivatives be used only for the purpose of hedging foreign currency and interest rate exposure. In certain instances, the Company enters into derivative contracts that do not qualify for hedge accounting but are utilized for economic purposes (economic hedges). The Company does not use financial instruments for trading purposes. The Company established guidelines for risk assessment procedures and controls for the use of financial instruments. They include a clear segregation of duties with regard to execution on one side and administration, accounting and controlling on the other. To reduce the credit risk arising from derivatives the Company entered into Master Netting Agreements with banks. Through such agreements, positive and negative fair values of the derivative contracts could be offset against one another if a partner becomes insolvent. This offsetting is valid for transactions where the aggregate amount of obligations owed to and receivable from are not equal. If insolvency occurs, the party which owes the larger amount is obliged to pay the other party the difference between the amounts owed in the form of one net payment. These master netting agreements do not provide a basis for offsetting the fair values of derivative financial instruments in the statement of financial position as the offsetting criteria under IFRS are not satisfied. At December 31, 2022 and December 31, 2021, the Company had €16,049 and €3,151 of derivative financial assets subject to netting arrangements and €7,331 and €23,963 of derivative financial liabilities subject to netting arrangements. Offsetting these derivative financial instruments would have resulted in net assets of €12,434 and €736 as well as net liabilities of €3,716 and €21,547 at December 31, 2022 and December 31, 2021, respectively. The Company calculates benchmarks for individual exposures in order to quantify interest and foreign exchange risks. The benchmarks are derived from achievable and reasonable market rates. Depending on the individual benchmarks, hedging strategies are agreed on and implemented. Market risk Foreign exchange risk management The Company conducts business on a global basis in various currencies, though a majority of its operations are in Germany and the United States. For financial reporting purposes, the Company reports in euro pursuant to Section 315e and Section 244 HGB. Therefore, changes in the rate of exchange between the euro and the local currencies in which the financial statements of the Company’s international operations are maintained, affect its results of operations and financial position as reported in its consolidated financial statements. Additionally, individual subsidiaries are exposed to transactional risks mainly resulting from intercompany purchases between production sites and other subsidiaries with different functional currencies. This exposes the subsidiaries to fluctuations in the rate of exchange between the invoicing currencies and the currency in which their local operations are conducted. For the purpose of hedging existing and foreseeable foreign exchange transaction exposures the Company enters into foreign exchange forward contracts. The notional amounts of foreign exchange contracts in place that are designated and qualify as cash flow hedges totaled €198,709 and €190,707 at December 31, 2022 and December 31, 2021, respectively. At December 31, 2022, the Company had foreign exchange derivatives with maturities of up to 12 months. Earnings of the Company were not materially affected by hedge ineffectiveness in the reporting period since the critical terms of the interest and foreign exchange derivatives matched mainly the critical terms of the underlying exposures. The Company also enters into derivative contracts for forecasted product purchases and sales and for intercompany loans in foreign currencies which do not qualify for hedge accounting but are utilized for economic hedges as defined above. The notional amounts of economic hedges totaled €1,413,955 and €854,528 at December 31, 2022 and December 31, 2021, respectively. The Company uses a Cash-Flow-at-Risk (CFaR) model in order to estimate and quantify transaction risks from foreign currencies. The basis for the analysis of the currency risks are the foreign currency cash flows that are reasonably expected to arise within the following twelve months, less any hedges. Under the CFaR approach, the potential currency fluctuations of these net exposures are shown as probability distributions based on historical volatilities and correlations using the values of the last 50 exchange rates with an interval of 21 trading days. The calculation is made assuming a confidence level of 95% and a holding period of up to one year. The aggregation of currency risks has risk-mitigating effects due to correlations between the transactions concerned, i.e. the overall portfolio’s risk exposure is generally less than the sum total of the underlying individual risks. Based on a net exposure of €1,214,115, the Company’s CFaR amounts to €36,997 at December 31, 2022, this means with a probability of 95% a potential loss in relation to the forecasted foreign exchange cash flows of the next twelve months will be not higher than €36,997. The following table shows the average hedging rate and the nominal amount of the foreign exchange forward contracts for the currencies with highest hedging volume at December 31, 2022: Significant currency pairs in € THOUS Nominal Average amount hedging rate EUR/USD 799,235 1.0775 EUR/AUD 221,694 1.5700 EUR/CNY 186,980 7.0425 Interest rate risk management The Company’s interest rate risks mainly arise from money market and capital market transactions of the group for financing its business activities. For purposes of analyzing the impact of changes in the relevant reference interest rates on the Company’s results of operations, the Company calculates the portion of financial debt which bears variable interest rate and which has not been hedged by means of interest rate swaps or options against rising interest rates. For this particular part of its liabilities, the Company assumes an increase in the Reference Rates of 0.5% compared to the actual rates as of the balance sheet date. The corresponding additional annual interest expense is then compared to the Company’s net income. This analysis shows that an increase of 0.5% in the relevant Reference Rates would have an effect of less than 1% on the consolidated net income and less than 0.1% on the shareholder’s equity of the Company. The Company entered into interest rate hedges (pre-hedges) in anticipation of future long-term debt issuance. These pre-hedges are used to hedge interest rate exposures with regard to interest rates which are relevant for the future long-term debt issuance and which could rise until the respective debt is actually issued. These pre-hedges were settled at the issuance date of the corresponding long-term debt with the settlement amount recorded in AOCI amortized to interest expense over the life of the debt. At December 31, 2022 and December 31, 2021, the Company had €6,652 and €7,234, respectively, related to settlements of pre-hedges deferred in AOCI, net of tax. A fundamental reform of major interest rate benchmarks has been undertaken globally. This included the replacement of certain interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as IBOR Reform). The Company had exposures to relevant IBORs through its financial instruments, which were affected as part of this market-wide initiative. The Syndicated Credit Facility had a certain level of London Inter-Bank Offered Rate (LIBOR) exposure due to the possibility of multicurrency drawings in U.S. dollar as well as in euro. The LIBOR was replaced with the Term Secured Overnight Financing Rate. For further information on the Syndicated Credit Facility, see note 14. Derivative financial instruments valuation The following table shows the carrying amounts of the Company’s derivatives at December 31, 2022 and December 31, 2021: Derivative financial instruments valuation in € THOUS 2022 2021 Assets Liabilities Assets Liabilities Current Foreign exchange contracts 9,151 (568) 571 (4,419) Non-current Foreign exchange contracts — — 8 (71) Derivatives in cash flow hedging relationships 9,151 (568) 579 (4,490) Current Foreign exchange contracts 10,627 (6,541) 2,846 (21,428) Non-current Foreign exchange contracts — (881) — — Derivatives not designated as hedging instruments 10,627 (7,422) 2,846 (21,428) The significant methods and assumptions used in estimating the fair values of derivative financial instruments are as follows: To determine the fair value of foreign exchange forward contracts, the contracted forward rate is compared to the current forward rate for the remaining term of the contract as of the balance sheet date. The result is then discounted on the basis of the market interest rates prevailing at the balance sheet date for the applicable currency. The Company’s own credit risk is incorporated in the fair value estimation of derivatives that are liabilities. Counterparty credit risk adjustments are factored into the valuation of derivatives that are assets. The Company monitors and analyses the credit risk from derivative financial instruments on a regular basis. For the valuation of derivative financial instruments, the credit risk is considered in the fair value of every individual instrument. The default probability is based upon the credit default swap spreads of each counterparty appropriate for the duration. The calculation of the credit risk considered in the valuation is performed by multiplying the default probability appropriate for the duration with the expected discounted cash flows of the derivative financial instrument. The effect of financial instruments on the consolidated statements of income The effects of financial instruments recorded in the consolidated statements of income consist of interest income of €56,409 (2021: €52,948), interest expense of €358,995 (2021: €343,807) as well as expected credit losses of €42,470 (2021: €44,374). In the fiscal year 2022, net losses from foreign currency transactions amount to €32,662 (2021: net losses €9,898). The following table shows the effect of derivatives in cash flow hedging relationship on the consolidated financial statement: The effect of derivatives in cash flow hedging relationships on the consolidated financial statements in € THOUS Fair value gain Fair value gain (loss) recognized in (loss) recognized in Amount Amount AOCI on hedging AOCI on hedging Location of reclassified reclassified instrument (hedge instrument (cost of reclassified from hedge from cost of reserve) hedging) amounts from AOCI reserve hedging For the year ended December 31, 2022 Foreign exchange contracts 12,036 (3,379) Interest income/expense 1,355 — thereof: Revenue 2,698 40 Costs of revenue (2,088) 2,157 Inventories (418) 12 Total 12,036 (3,379) 1,547 2,209 For the year ended December 31, 2021 Foreign exchange contracts (3,585) 126 Interest income/expense 1,206 — thereof: Revenue 275 773 Costs of revenue 72 (1,060) Inventories 1,013 (2) Total (3,585) 126 2,566 (289) The following table shows the effect of derivatives not designated as hedging instruments on the consolidated financial statements: The effect of derivatives not designated as hedging instruments on the consolidated financial statements in € THOUS Amount of (gain) loss recognized in income on derivatives Location of (gain) loss recognized in for the year ended, December 31 income on derivatives 2022 2021 Foreign exchange contracts Selling, general and administrative expenses 8,914 (49,214) Foreign exchange contracts Interest income/expense 12,997 1,477 Derivatives not designated as hedging instruments 21,911 (47,737) Credit risk The Company is exposed to potential losses in the event of non-performance by counterparties. With respect to derivative financial instruments it is not expected that any counterparty will fail to meet its obligations as the counterparties are highly rated financial institutions (generally investment grade). The maximum credit exposure of derivatives is represented by the fair value of those contracts with a positive fair value at the balance sheet date. The maximum credit exposure of all derivatives amounted to €19,778 at December 31, 2022 (2021: €3,425). The maximum credit risk resulting from the use of non-derivative financial instruments is defined as the total amount of all financial assets. In order to control this credit risk, the Company’s management carries out an aging analysis of trade accounts and other receivables from unrelated parties. For details on the aging analysis and on expected credit losses, please see note 7. Liquidity risk The liquidity risk is defined as the risk that a company is potentially unable to meet its financial obligations. The Management of the Company manages the liquidity of the group by means of effective working capital and cash management as well as an anticipatory evaluation of refinancing alternatives. The Company’s management believes that existing credit facilities, net cash provided by operating activities and additional short-term debt are sufficient to meet the Company’s foreseeable demand for liquidity (see note 13). The following table shows the future undiscounted contractual cash flows (including interest) resulting from recognized financial liabilities and derivative financial instruments recorded in the consolidated balance sheets: Payments agreed by contracts in € THOUS Payments due by period of Less than 1 year 1 - 3 years 3 - 5 years Over 5 years 2022 Non-Derivatives Accounts payable to unrelated parties 813,255 426 — — Accounts payable to related parties 118,083 — — — Other current financial liabilities 1,107,401 — — — Short-term debt (1) 669,013 — — — Bonds 806,805 1,167,570 2,882,965 3,557,066 Accounts receivable facility (2) 4,190 96,351 — — Other long-term debt 44,783 87,082 47,705 202,568 Lease liabilities (1) 815,613 1,479,359 1,164,048 1,922,861 Variable payments outstanding for acquisitions 4,794 30,140 — 6,149 Put option liabilities 667,371 692,707 110,942 54,200 Letters of credit 11,750 — — — 5,063,058 3,553,635 4,205,660 5,742,844 Derivatives Derivative financial instruments - in cash flow hedging relationships (Inflow) (10,573) — — — Outflow 11,136 — — — 563 — — — Derivative financial instruments - not designated as hedging instrument (Inflow) (359,346) (36,590) — — Outflow 369,229 34,836 — — 9,883 (1,754) — — Total 5,073,504 3,551,881 4,205,660 5,742,844 2021 Non-Derivatives Accounts payable to unrelated parties 736,069 68 — — Accounts payable to related parties 121,457 — — — Other current financial liabilities 965,595 — — — Short-term debt (1) 1,255,853 — — — Bonds 759,946 1,249,033 2,553,673 3,563,460 Accounts receivable facility — — — — Other long-term debt 49,959 103,315 38,991 51,466 Lease liabilities (1) 796,927 1,463,953 1,127,660 2,076,056 Variable payments outstanding for acquisitions 9,721 2,936 22,526 15,322 Put option liabilities 678,705 219,554 151,462 67,744 Letters of credit 11,065 — — — 5,385,297 3,038,859 3,894,312 5,774,048 Derivatives Derivative financial instruments - in cash flow hedging relationships (Inflow) (141,935) (2,300) — — Outflow 146,810 2,409 — — 4,875 109 — — Derivative financial instruments - not designated as hedging instrument (Inflow) (611,024) — — — Outflow 638,609 — — — 27,585 — — — Total 5,417,757 3,038,968 3,894,312 5,774,048 (1) Includes amounts from related parties. (2) Future interest payments for financial liabilities with variable in |
Other comprehensive income (los
Other comprehensive income (loss) | 12 Months Ended |
Dec. 31, 2022 | |
Other comprehensive income (loss) | |
Other comprehensive income (loss) | 24. Other comprehensive income (loss) The changes in the components of other comprehensive income (loss) for the years ended December 31, 2022, 2021, and 2020 are as follows: Other comprehensive income (loss) in € THOUS 2022 2021 2020 Pretax Tax effect Net Pretax Tax effect Net Pretax Tax effect Net Components that will not be reclassified to profit or loss: Equity method investees – share of OCI 22,705 — 22,705 (25,334) — (25,334) 58,166 — 58,166 FVOCI equity investments 2,883 (231) 2,652 37,660 (8,492) 29,168 19,439 (2,326) 17,113 Actuarial gain (loss) on defined benefit pension plans 318,595 (94,062) 224,533 (15,781) 4,407 (11,374) 4,176 (1,191) 2,985 Components that may be reclassified subsequently to profit or loss: Foreign currency translation adjustment 826,847 — 826,847 1,034,239 — 1,034,239 (1,359,397) — (1,359,397) FVOCI debt securities (44,996) 8,050 (36,946) (9,892) 1,482 (8,410) 29,096 (5,048) 24,048 Other comprehensive income (loss) relating to cash flow hedges: Changes in fair value of cash flow hedging reserve during the period 12,036 (3,045) 8,991 (3,585) 1,013 (2,572) 6,123 (1,839) 4,284 Cost of hedging (3,379) 887 (2,492) 126 (7) 119 (2,062) 608 (1,454) Reclassification adjustments 3,756 (1,044) 2,712 2,277 (599) 1,678 (1,282) 482 (800) Total other comprehensive income (loss) relating to cash flow hedges 12,413 (3,202) 9,211 (1,182) 407 (775) 2,779 (749) 2,030 Other comprehensive income (loss) 1,138,447 (89,445) 1,049,002 1,019,710 (2,196) 1,017,514 (1,245,741) (9,314) (1,255,055) |
Supplementary cash flow informa
Supplementary cash flow information | 12 Months Ended |
Dec. 31, 2022 | |
Supplementary cash flow information | |
Supplementary cash flow information | 25. The following additional information is provided with respect to net cash provided by (used in) investing activities for the years ended December 31, 2022, 2021 and 2020: Details for net cash provided by (used in) investing activities in € THOUS 2022 2021 2020 Details for acquisitions Assets acquired (830,460) (547,146) (337,300) Liabilities assumed 16,407 70,143 41,761 Noncontrolling interests (1) 188,469 120,197 37,140 Non-cash consideration 578,009 12,482 33,804 Cash paid (47,575) (344,324) (224,595) Less cash acquired 58,101 19,518 9,759 Net cash paid for acquisitions 10,526 (324,806) (214,836) Cash paid for investments (23,311) (77,010) (10,899) Cash paid for intangible assets (46,348) (32,355) (33,250) Total cash paid for acquisitions and investments, net of cash acquired, and purchases of intangible assets (59,133) (434,171) (258,985) Details for divestitures Cash received from sale of subsidiaries or other businesses, less cash disposed 60,161 52,444 14,608 Proceeds from divestitures 60,161 52,444 14,608 (1) Includes noncontrolling interests subject to put provisions in the amount of € 26,801 for the year ended December 31, 2020, which was previously disclosed separately. The following table shows a reconciliation of debt to net cash provided by (used in) financing activities for 2022: Reconciliation of debt to net cash provided by (used in) financing activities in € THOUS Non-cash changes Amortization Acquisitions Foreign of debt January 1, Cash (net of currency issuance costs December 31, 2022 Flow divestitures) translation and discounts Other 2022 Short-term debt from unrelated parties 1,178,353 (511,657) (52) (453) — (1,178) 665,013 Short-term debt from related parties 77,500 (73,500) — — — — 4,000 Long-term debt (excluding Accounts Receivable Facility) (1) 7,314,915 246,277 527 200,846 10,055 (1,549) 7,771,071 Accounts Receivable Facility — 94,962 — (1,206) (31) — 93,725 Lease liabilities from unrelated parties 4,630,100 (752,884) (10,763) 218,744 — 439,863 (2) 4,525,060 Lease liabilities from related parties 119,281 (22,268) — 25 — 56,665 (2) 153,703 (1) Cash Flow excluding repayments of variable payments outstanding for acquisitions in the amount of €3,975 . (2) Includes newly concluded leases, lease modifications and reassessments of leases with third parties and related parties. Furthermore, interest expense in the amount of €151,317 , net of interest paid (included in Net cash provided by (used in) operating activities), are included. The following table shows a reconciliation of debt to net cash provided by (used in) financing activities for 2021: Reconciliation of debt to net cash provided by (used in) financing activities in € THOUS Non-cash changes Amortization Acquisitions Foreign of debt January 1, Cash (net of currency issuance costs December 31, 2021 Flow divestitures) translation and discounts Other 2021 Short-term debt from unrelated parties 62,950 1,115,777 164 (531) — (7) 1,178,353 Short-term debt from related parties 16,320 61,180 — — — — 77,500 Long-term debt (excluding Accounts Receivable Facility) (1) 7,808,460 (812,002) 11,421 294,437 9,423 3,176 7,314,915 Accounts Receivable Facility — — — — — — — Lease liabilities from unrelated parties 4,352,267 (675,639) 42,600 297,110 — 613,762 (2) 4,630,100 Lease liabilities from related parties 140,020 (21,315) — 90 — 486 (2) 119,281 (1) Cash Flow excluding repayments of variable payments outstanding for acquisitions in the amount of €19,314 and debt issuance cost relating to undrawn credit facilities in the amount of €7,590 . (2) Includes newly concluded leases, lease modifications and reassessments of leases with third parties and related parties. Furthermore, interest expense in the amount of €143,160 , net of interest paid (included in Net cash provided by (used in) operating activities), are included. Interest payments are included in operating activities in the consolidated statements of cash flows in the amount of €349,537 and €331,837 as of December 31, 2022 and 2021. Accrued interest is presented in the consolidated balance sheets under Current provisions and other current liabilities. For further information see note 12. |
Segment and corporate informati
Segment and corporate information | 12 Months Ended |
Dec. 31, 2022 | |
Segment and corporate information | |
Segment and corporate information | 26. 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 years ended December 31, 2022, 2021 and 2020 is set forth below: Segment and corporate information in € THOUS North Asia- Latin America EMEA Pacific America Total Segment Segment Segment Segment Segment Corporate (1) Total 2022 Revenue from health care services 11,948,330 1,456,175 980,792 552,679 14,937,976 28,604 14,966,580 Revenue from health care products 1,131,263 1,368,612 1,115,914 240,664 3,856,453 19,868 3,876,321 Revenue from contracts with customers 13,079,593 2,824,787 2,096,706 793,343 18,794,429 48,472 18,842,901 Other revenue external customers 470,335 26,422 54,843 3,516 555,116 — 555,116 Revenue external customers 13,549,928 2,851,209 2,151,549 796,859 19,349,545 48,472 19,398,017 Inter-segment revenue 19,233 — 117 1,128 20,478 (20,478) — Revenue 13,569,161 2,851,209 2,151,666 797,987 19,370,023 27,994 19,398,017 Operating income 1,475,558 256,108 339,672 23,754 2,095,092 (583,337) 1,511,755 Interest (292,476) Income before income taxes 1,219,279 Depreciation and amortization (1,086,609) (194,554) (108,360) (43,709) (1,433,232) (285,570) (1,718,802) Impairment loss (84,874) (3,658) (240) (3) (88,775) (30,786) (119,561) Income (loss) from equity method investees 73,699 (9,377) 969 1,268 66,559 — 66,559 Total assets 23,716,516 3,876,332 2,989,350 853,985 31,436,183 4,317,931 35,754,114 thereof investments in equity method investees 437,986 203,759 104,830 27,149 773,724 — 773,724 Additions of property, plant and equipment, intangible assets and right of use assets 696,504 165,196 85,719 44,691 992,110 326,311 1,318,421 2021 Revenue from health care services 10,622,787 1,379,151 941,627 499,215 13,442,780 36,658 13,479,438 Revenue from health care products 1,051,878 1,336,921 1,017,262 201,054 3,607,115 16,836 3,623,951 Revenue from contracts with customers 11,674,665 2,716,072 1,958,889 700,269 17,049,895 53,494 17,103,389 Other revenue external customers 413,046 48,694 50,901 2,655 515,296 — 515,296 Revenue external customers 12,087,711 2,764,766 2,009,790 702,924 17,565,191 53,494 17,618,685 Inter- segment revenue 31,869 — 620 202 32,691 (32,691) — Revenue 12,119,580 2,764,766 2,010,410 703,126 17,597,882 20,803 17,618,685 Operating income 1,643,918 309,327 349,599 11,959 2,314,803 (462,513) 1,852,290 Interest (280,429) Income before income taxes 1,571,861 Depreciation and amortization (983,568) (195,032) (105,934) (38,890) (1,323,424) (261,943) (1,585,367) Impairment loss (19,814) (12,146) (3,684) (493) (36,137) (2,172) (38,309) Income (loss) from equity method investees 90,123 (1,074) 2,163 963 92,175 — 92,175 Total assets 22,667,874 3,943,175 3,042,941 787,207 30,441,197 3,925,361 34,366,558 thereof investments in equity method investees 459,231 197,717 104,077 25,880 786,905 — 786,905 Additions of property, plant and equipment, intangible assets and right of use assets 872,647 206,248 130,632 50,374 1,259,901 296,963 1,556,864 2020 Revenue from health care services 11,060,231 1,364,976 876,036 484,930 13,786,173 24,416 13,810,589 Revenue from health care products 1,094,828 1,363,820 969,674 196,445 3,624,767 15,228 3,639,995 Revenue from contracts with customers 12,155,059 2,728,796 1,845,710 681,375 17,410,940 39,644 17,450,584 Other revenue external customers 323,361 33,792 48,468 2,858 408,479 — 408,479 Revenue external customers 12,478,420 2,762,588 1,894,178 684,233 17,819,419 39,644 17,859,063 Inter- segment revenue 28,753 5,933 239 304 35,229 (35,229) — Revenue 12,507,173 2,768,521 1,894,417 684,537 17,854,648 4,415 17,859,063 Operating income 2,119,737 411,674 343,632 (156,555) 2,718,488 (414,079) 2,304,409 Interest (368,019) Income before income taxes 1,936,390 Depreciation and amortization (997,509) (191,204) (110,400) (35,731) (1,334,844) (252,025) (1,586,869) Impairment loss (1,231) (2,266) (1,065) (194,468) (199,030) — (199,030) Income (loss) from equity method investees 87,493 4,237 2,950 18 94,698 (180) 94,518 Total assets 21,358,156 3,879,386 2,830,867 724,124 28,792,533 2,896,503 31,689,036 thereof investment in equity method investees 413,401 215,650 105,661 26,401 761,113 — 761,113 Additions of property, plant and equipment, intangible assets and right of use assets 1,162,847 249,401 143,939 50,682 1,606,869 395,654 2,002,523 (1) Includes inter - segment consolidation adjustments. For the geographic presentation, revenues are attributed to specific countries based on the end user’s location for products and the country in which the service is provided. Information with respect to the Company’s geographic operations is set forth in the table below: Geographic presentation in € THOUS North Rest of Germany America the world Total 2022 Revenue external customers 487,281 13,568,655 5,342,081 19,398,017 Long-lived assets 1,517,741 20,889,568 4,132,487 26,539,796 2021 Revenue external customers 511,390 12,087,711 5,019,584 17,618,685 Long-lived assets 1,478,579 19,618,557 4,191,436 25,288,572 2020 Revenue external customers 493,436 12,478,420 4,887,207 17,859,063 Long-lived assets 1,202,528 17,878,746 4,325,335 23,406,609 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent events | |
Subsequent events | 27. As of January 1, 2023, the Company implemented its new global operating model as announced on November 2, 2021 and will begin reporting under the new model in the first quarter of 2023. In the new operating model, the Company reorganized its business into two global operating segments and determined the segments based upon how the Company manages its business with responsibilities by products and services. The Company consolidated its health care products business, including research and development, manufacturing, supply chain and commercial operations, as well as supporting functions, such as regulatory and quality management, under a global umbrella (Care Enablement). The Company’s global health care services business, which is primarily engaged in providing services for the treatment of ESKD and other extracorporeal therapies, including value and risk-based care programs, was combined into one segment (Care Delivery) and also includes the pharmaceutical products business and the income from equity method investees related to the sale of certain renal pharmaceuticals from Vifor Fresenius Medical Care Renal Pharma Ltd. in the U.S, which are used in our clinics to provide health care services to our patients. General and administrative functions will also be globalized using a three pillars model of business partnering, centers of excellence and global shared services. The Company’s Global Medical Office, which seeks to optimize medical treatments and clinical processes within the Company, is centrally managed and its profit and loss are allocated to the segments. Similarly, the Company allocates costs related primarily to headquarters’ overhead charges, including accounting and finance as well as certain human resources, legal and IT costs, as the Company believes that these costs are attributable to the segments and used in the allocation of resources to Care Delivery and Care Enablement. These costs are allocated at budgeted amounts, with the difference between budgeted and actual figures recorded at Corporate. However, certain costs, which relate mainly to shareholder activities, management activities, global internal audit as well as investments and intangible assets, are not allocated to a segment but are accounted for as corporate expenses (Corporate). The Company believes that these costs are not within the control of the individual segments. The activities included in Corporate do not fulfill the definition of a segment according to IFRS 8, Operating Segments and are reported separately. 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. In addition, 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. Products transferred from Care Enablement to Care Delivery are transferred at fair market value. The associated internal profit and loss for the product transfers are recorded within Care Enablement initially and eliminated upon consolidation and included within “Inter-segment eliminations.” Capital expenditures for production are based on the expected demand of the segments and consolidated profitability considerations. The Company performed a reallocation of goodwill to the segments under the new operating structure and evaluated the effects of this reallocation on the recoverability of goodwill. One group of CGUs was identified in each of the Company’s operating segments (Care Enablement and Care Delivery) as of January 1, 2023 with no indication of impairment. As a result of the evaluation on the recoverability of goodwill, preliminary estimates indicate that reasonably possible changes to key assumptions, particularly in light of increasing interest rates and further pressure from a deterioration of the macroeconomic environment, may result in an impairment of goodwill allocated to Care Enablement in the future, which will be continuously reevaluated during 2023. On February 21, 2023, the supervisory board of Management AG approved the Management Board’s resolution to initiate firm plans for a change of the legal form of the Company from a partnership limited by shares ( Kommanditgesellgesellschaft auf Aktien Aktiengesellschaft No other significant activities have taken place subsequent to the balance sheet date December 31, 2022 that have a material impact on the key figures and earnings presented. Currently, there are no other significant changes in the Company’s structure, management, legal form or personnel. |
Compensation of the Management
Compensation of the Management Board and the Supervisory Board | 12 Months Ended |
Dec. 31, 2022 | |
Compensation of the Management Board and the Supervisory Board | |
Compensation of the Management Board and the Supervisory Board | 28. Compensation of the Management Board and the Supervisory Board Compensation of the Management Board of the General Partner The total compensation of the members of the Management Board of Fresenius Medical Care Management AG for the fiscal year 2022 amounted to €21,910 (2021: €26,833) and consisted of non-performance-based compensation (including fringe benefits) in the total amount of €8,752 (2021: €9,531), short-term performance-based compensation in the total amount of €2,845 (2021: €6,819), components with long-term incentive effects (multi-year variable compensation) with a total fair value on the allocation date of €9,013 (2021: €10,483) and other long-term benefits of €1,300 (2021: €0). The components with long-term incentive effects consist of 182,192 Performance Shares (2021: 192,446) allocated under the MB LTIP 2020. Under IFRS, pension expense (service costs) for the members of the Management Board of Fresenius Medical Care Management AG in 2022 amounted to €4,483 (2021: €5,146), income from long-term incentive share-based compensation plans amounted to €646 (2021: €5,119 expense) and expense for termination benefits amounted to €1,840 (2021: €0). Total compensation expense, in accordance with IFRS, for the members of the Management Board of Fresenius Medical Care Management AG amounted to €18,574 (2021: €26,615). As of December 31, 2022, outstanding balances with respect to the members of the Management Board of Fresenius Medical Care Management AG amounted to €29,987 (December 31, 2021: €54,626) and consisted mainly of pension commitments and provisions for performance-based compensation components. Short-term performance-based compensation is linked to the achievement of three financial targets (based on Revenue, Operating income and Net income) and one non-financial target (Sustainability). The individual contractual defined benefit pension commitments provide for pension and survivor benefits as of the time of conclusively ending active work or in case of full or partial reduction in earning capacity, and the amount of such benefits is calculated by reference to the amount of the Management Board member’s most recent base salary. The defined contribution pension commitments, which are designed in the form of external financing as a defined contribution plan with a reinsurance policy, can be paid out after reaching the relevant retirement age either as a one-off payment or optionally in ten annual installments. For information on the terms and conditions of the components with long-term incentive effects see note 20. The total compensation of former members of the Management Board of Fresenius Medical Care Management AG amounted to €2,705 (2021: €629). As of December 31, 2022, pension obligations, according to IAS 19, towards this group of persons exist in an amount of €51,270 (December 31, 2021: €49,274). Compensation of the supervisory board In the fiscal year, the total compensation of the members of the Supervisory Board of FMC AG & Co. KGaA amounted to €1,244 (2021: €1,089). The compensation of the supervisory board of the Fresenius Medical Care Management AG and the compensation of its Committees was, in compliance with article 7 para. 3 of the Articles of Association of FMC AG & Co. KGaA, charged to FMC AG & Co. KGaA. In the fiscal year the total compensation of the members of the supervisory board of Fresenius Medical Care Management AG amounted to €1,054 (2021: €1,084). |
Principal accountant fees and s
Principal accountant fees and services | 12 Months Ended |
Dec. 31, 2022 | |
Principal accountant fees and services | |
Principal accountant fees and services | 29. Principal accountant fees and services In 2022, 2021 and 2020, fees for the auditor, PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC), and its affiliates were expensed as follows: Fees in € THOUS Consolidated thereof Consolidated thereof Consolidated thereof group Germany group Germany group Germany 2022 2021 2020 Audit fees 14,354 2,961 10,524 2,041 9,386 1,608 Audit-related fees 686 301 1,038 614 510 394 Tax fees 1,204 — 633 — 951 54 Other fees 2,940 2,940 1,817 1,813 5,236 5,236 Audit fees are the aggregate fees billed by the Company’s auditor for the audit of the Company’s consolidated financial statements and the statutory financial statements of FMC AG & Co. KGaA and certain of its subsidiaries, reviews of interim financial statements and attestation services that are provided in connection with statutory and regulatory filings or engagements. Fees related to the audit of internal control over financial reporting are included in audit fees. Audit-related fees are fees charged by the Company’s auditor for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported under audit fees. This category mainly comprises fees billed by PwC for comfort letters, audit of the compensation report of the management board, audit of the sustainability report, agreed-upon procedure engagements and other attestation services subject to regulatory requirements. Tax fees are fees for professional services rendered by the Company’s auditor for tax compliance, tax consulting associated with international transfer prices, as well as support services related to tax audits. In 2022, 2021 and 2020, other fees include amounts related to services from the Company’s auditors, mainly in regard to corporate governance. Fees billed by the Company’s auditors for non-audit services in Germany include fees for the services described above within the audit-related fees, tax fees and other fees. |
The Company, basis of present_2
The Company, basis of presentation and significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
The Company, basis of presentation and significant accounting policies | |
Principles of consolidation and composition of the group | a) Principles of consolidation and composition of the group The financial statements of consolidated entities have been prepared using uniform accounting methods in accordance with IFRS 10, Consolidated Financial Statements (IFRS 10). Acquisitions of companies are accounted for under the acquisition method. Besides FMC AG & Co. KGaA, the consolidated financial statements include all material subsidiaries according to IFRS 10 over which the Company has control. FMC AG & Co. KGaA controls an entity if it has power over the entity through existing rights that give the Company the current ability to direct the activities that significantly affect the entity’s return. In addition, the Company is exposed to, or has rights to, variable returns from the involvement with the entity and the Company has the ability to use its power over the entity to affect the amount of the Company’s return. The equity method is applied in accordance with IAS 28, Investments in Associates and Joint Ventures (IAS 28). Generally, equity method investees are entities in which FMC AG & Co. KGaA, directly or indirectly, holds 50% or less of the voting power and can exercise significant influence over their financial and operating policies. While the Company’s investment in Vifor Fresenius Medical Care Renal Pharma Ltd. makes up a large portion of its equity method investees, there are no investments in equity method investees that are individually material to the Company. Acquisitions of companies are accounted for in accordance with IFRS 3, Business Combinations (IFRS 3) at the date of acquisition. Initially, all identifiable assets and liabilities of subsidiaries as well as the noncontrolling interests are recognized at their fair values. The cost is then compared with the fair value of the assets acquired and liabilities assumed. Any remaining balance is recognized as goodwill and is tested at least once a year for impairment. Generally, adjustments made to the fair value of identifiable assets and liabilities subsequent to final purchase price allocation are recognized immediately in profit or loss. Intercompany revenues, expenses, income, receivables, payables, accruals, provisions and commitments and contingencies, are eliminated. Profits and losses on items of property, plant and equipment and inventory acquired from other group entities are also eliminated. Deferred tax assets and liabilities are recognized on temporary differences resulting from consolidation procedures. Noncontrolling interest (NCI) is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent and is recognized at its fair value at the date of first consolidation using the full goodwill method. Profits and losses attributable to the noncontrolling interests are separately disclosed in the consolidated statements of income. Summarized financial information relating to our U.S.-based subsidiary, InterWell Topco L.P. (NewCo), in which the noncontrolling interests hold 17% and 8%, respectively, can be found in note 3. The book value of these noncontrolling interests at December 31, 2022 was $188,008 (€176,269). The Company writes put options on certain noncontrolling interests. A portion of these put options relate to dialysis clinics in which nephrologists or nephrology groups own an equity interest. In addition, as part of the transaction with Cricket, and InterWell Health LLC, the Company also granted put options to minority shareholders of the newly created value-based kidney care entity (see note 3 for further information). Generally, the put options associated with this business model are valid for an unlimited time. Accordingly, the put options represent a long-term investment into a dialysis clinic for the NCI holder. The put options provide for settlement in cash. For these put options, IAS 32, Financial Instruments: Presentation (IAS 32) paragraph 23 requires the Company to recognize a liability for the present value of the exercise price of the option. The put option liability is recorded in other current provisions and other current liabilities and other non-current provisions and other non-current liabilities at present value of the redemption amount at the balance sheet date. The Company believes the accounting treatment of the changes to the put option liability under IFRS to this date has not been finally clarified. In the absence of IFRS guidance specifically applicable to the accounting for put options on NCI, the Company, in line with IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8) paragraph 10, applied the present access method. According to the present access method, NCI are recorded in equity when the risks and rewards of ownership reside with the NCI holders. The initial recognition of the put option liability, as well as valuation differences, is recorded in equity with no impact to the income statement (see note 1 h)). This presentation results in information that is relevant to the economic decision-making needs of users and to provide reliable financial information as the Company considers these NCI with written put options as equity holders and accordingly attributes net income to NCI. For further information regarding the valuation of the put option liabilities, see note 23. The consolidated financial statements for 2022 include FMC AG & Co. KGaA as well as 2,346 companies (2021: 2,343). In 2022, 79 companies were accounted for by the equity method (2021: 50), 68 companies were first-time consolidations (2021: 90) and 27 companies were deconsolidated (2021: 52). The principal subsidiaries of the Company are those with the most significant contribution to the Company’s revenue, net income or net assets. The Company’s interest in these subsidiaries for the years ended December 31, 2022 and 2021 are listed in the table below: Principal subsidiaries Name Country Main activity Ownership Fresenius Medical Care (FMC) Argentina S.A. Argentina Provision of health care services 100 % Sale of health care products FMC Australia Pty. Ltd. Australia Provision of health care services 100 % Sale of health care products FMC Colombia S.A. Colombia Provision of health care services 100 % Sale of health care products FMC Deutschland GmbH Germany Sale of health care products 100 % Production of health care products Research and development FMC France S.A.S. France Sale of health care products 100 % FMC GmbH Germany Sale of health care products 100 % FMC Holdings, Inc. USA Provision of health care services 100 % Sale of health care products Production of health care products Research and development FMC Italia S.p.A. Italy Sale of health care products 100 % FMC Korea Ltd. South Korea Sale of health care products 100 % FMC Ltda. Brazil Sale of health care products 100 % FMC Shanghai Ltd. China Sale of health care products 100 % FMC (U.K.) Ltd. United Kingdom Provision of health care services 100 % Sale of health care products Production of health care products National Medical Care of Spain, S.A.U. Spain Provision of health care services 100 % NephroCare Portugal, S.A. Portugal Provision of health care services 100 % Sale of health care products JSC Fresenius SP Russian Federation Provision of health care services 100 % Sale of health care products The complete list of participations in affiliated and associated companies of FMC AG & Co. KGaA will be submitted to the Federal Gazette and the electronic companies register. For 2022, the following fully consolidated German subsidiaries of the Company will apply the exemption provided in Section 264 (3) or Section 264b of the HGB and therefore will be exempt from applying certain legal requirements to prepare notes to the statutory standalone financial statements and a management report as well as the requirements of an independent audit and public disclosure. Companies exempt from applying certain legal requirements Name of the company Registered office of the company Ärztliches Versorgungszentrum Ludwigshafen GmbH im Lusanum Ludwigshafen am Rhein, Germany DiZ München Nephrocare GmbH Munich, Germany ET Software Developments GmbH Heidelberg, Germany Fresenius Medical Care Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Data Solutions GmbH Berlin, Germany Fresenius Medical Care Deutschland GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Frankfurt am Main GmbH Frankfurt am Main, Germany Fresenius Medical Care GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Investment GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Zwei Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Ventures GmbH Bad Homburg v. d. Höhe, Germany Medizinisches Versorgungszentrum Berchtesgaden GmbH Berchtesgaden, Germany MVZ Gelsenkirchen-Buer GmbH Gelsenkirchen, Germany Nephrocare Ahrensburg GmbH Ahrensburg, Germany Nephrocare Augsburg GmbH Augsburg, Germany Nephrocare Berlin-Weißensee GmbH Berlin, Germany Nephrocare Betzdorf GmbH Betzdorf, Germany Nephrocare Bielefeld GmbH Bielefeld, Germany Nephrocare Buchholz GmbH Buchholz, Germany Nephrocare Daun GmbH Daun, Germany Nephrocare Deutschland GmbH Bad Homburg v. d. Höhe, Germany Nephrocare Döbeln GmbH Döbeln, Germany Nephrocare Dortmund GmbH Dortmund, Germany Nephrocare Friedberg GmbH Friedberg, Germany Nephrocare Grevenbroich GmbH Grevenbroich, Germany Nephrocare Hagen GmbH Hagen, Germany Nephrocare Hamburg-Altona GmbH Hamburg, Germany Nephrocare Hamburg-Barmbek GmbH Hamburg, Germany Nephrocare Hamburg-Süderelbe GmbH Hamburg, Germany Nephrocare Ingolstadt GmbH Ingolstadt, Germany Nephrocare Kaufering GmbH Kaufering, Germany Nephrocare Krefeld GmbH Krefeld, Germany Nephrocare Lahr GmbH Lahr, Germany Nephrocare Leverkusen GmbH Leverkusen, Germany Nephrocare Ludwigshafen GmbH Ludwigshafen am Rhein, Germany Nephrocare Mannheim GmbH Mannheim, Germany Nephrocare Mettmann GmbH Mettmann, Germany Nephrocare Mönchengladbach GmbH Mönchengladbach, Germany Nephrocare Mühlhausen GmbH Mühlhausen, Germany Nephrocare München-Ost GmbH Munich, Germany Nephrocare Münster GmbH Münster, Germany Nephrocare MVZ Aalen GmbH Aalen, Germany Nephrocare Oberhausen GmbH Oberhausen, Germany Nephrocare Papenburg GmbH Papenburg, Germany Nephrocare Pirmasens GmbH Pirmasens, Germany Nephrocare Püttlingen GmbH Püttlingen, Germany Nephrocare Recklinghausen GmbH Recklinghausen, Germany Nephrocare Rostock GmbH Rostock, Germany Nephrocare Salzgitter GmbH Salzgitter, Germany Nephrocare Schrobenhausen GmbH Schrobenhausen, Germany Nephrocare Schwandorf-Regenstauf GmbH Schwandorf, Germany Nephrocare Starnberg GmbH Starnberg, Germany Nephrocare Wetzlar GmbH Wetzlar, Germany Nephrocare Witten GmbH Witten, Germany Nephrologisch-Internistische Versorgung Ingolstadt GmbH Ingolstadt, Germany Nova Med GmbH Vertriebsgesellschaft für medizinischtechnische Geräte und Verbrauchsartikel Bad Homburg v. d. Höhe, Germany VIVONIC GmbH Sailauf, Germany Zentrum für Nieren- und Hochdruckkrankheiten Bensheim GmbH Bensheim, Germany |
Cash and cash equivalents | b) Cash and cash equivalents Cash and cash equivalents comprise cash funds and all short-term investments (measured at fair value through profit and loss) with original maturities of up to three months. Short-term investments are highly liquid and readily convertible into known amounts of cash. The risk of changes in value is insignificant. |
Trade accounts and other receivables from unrelated parties | c) Trade accounts and other receivables from unrelated parties Trade accounts and other receivables from unrelated parties are recognized initially at fair value and subsequently at amortized cost. For information regarding expected credit losses, see note 2 c). |
Inventories | d) Inventories Inventories are stated at the lower of cost (determined by using the average or first-in, first-out method) or net realizable value (see note 8). Costs included in inventories are based on invoiced costs and/or production costs as applicable. Included in production costs are material, direct labor and production overhead and applicable depreciation charges. |
Property, plant and equipment | e) Property, plant and equipment Property, plant, and equipment are stated at cost less accumulated depreciation (see note 10). Maintenance and repair costs (day-to-day servicing) are expensed as incurred. The Company recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing parts and major inspections if it is probable that the future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. Depreciation on property, plant and equipment is calculated using the straight-line method over the estimated useful lives of the assets ranging from 4 3 |
Leases | f) Leases A lease is defined as a contract that conveys the right to use an underlying asset for a period of time in exchange for consideration. According to IFRS 16, a contract is or contains a lease if: ● the underlying asset is identified in the contract, and ● the customer has both the right to direct the identified asset’s use and to obtain substantially all the economic benefits from that use. Under IFRS 16, the Company is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments for almost all leases. The Company applies both the short-term and low-value lease exemption. These leases are exempt from balance sheet recognition and lease payments will be recognized as expenses over the lease term. IFRS 16 is not applied to leases of intangible assets. Lease liabilities Lease liabilities are initially recognized at the present value of the following payments: ● fixed lease payments (including in-substance fixed payments), less any lease incentives receivable, ● variable lease payments (linked to an index or interest rate), ● expected payments under residual value guarantees, ● the exercise price of purchase options, where exercise is reasonably certain, ● lease payments in optional renewal periods, where exercise of extension options is reasonably certain, and ● penalty payments for the termination of a lease, if the lease term reflects the exercise of the respective termination option. Lease payments are discounted using the implicit interest rate underlying the lease if this rate can be readily determined. Otherwise, the incremental borrowing rate of the lessee is used as the discount rate. Lease liabilities are subsequently measured at amortized cost using the effective interest method. Furthermore, lease liabilities may be remeasured due to lease modifications or reassessments of the lease. For lease contracts that include both lease and non-lease components that are not separable from lease components, no allocation is performed. Each lease component and any associated non-lease components are accounted for as a single lease. If the lease contracts include the lease and non-lease costs separately, the lease contract costs are divided into lease and non-lease components. Right-of-use assets The Company recognizes right-of-use assets at the commencement date of the respective lease. Right-of-use assets are stated at cost less accumulated depreciation. Upon initial recognition, cost comprises of: ● the initial lease liability amount, ● initial direct costs incurred when entering into the lease ● (lease) payments before commencement date of the respective lease, and ● an estimate of costs to dismantle and remove the underlying asset, ● less any lease incentives received. Right-of-use assets are depreciated over the shorter of the lease term or the useful life of the underlying asset using the straight-line method. Where a lease agreement includes a transfer of ownership at the end of the lease term or the exercise of a purchase option is deemed reasonably certain, right-of-use assets are depreciated over the useful life of the underlying asset using the straight-line method. In addition, right-of-use assets are reduced by impairment losses, if any, and adjusted for certain remeasurements. Right-of-use assets are classified into right-of-use assets relating to land, buildings and improvements or machinery and equipment. In addition, prepayments on right-of-use assets are presented separately (see note 21). |
Intangible assets and goodwill | g) Intangible assets and goodwill Intangible assets such as non-compete agreements, technology, distribution agreements, patents, licenses to treat, licenses to manufacture, distribute and sell pharmaceutical drugs, exclusive contracts and exclusive licenses, trade names, management contracts, application software, acute care agreements, customer relationships and emission certificates are recognized and reported apart from goodwill (see note 11). If acquired, those intangible assets are recorded at estimated fair value at the date of the acquisition. Patient relationships, however, are not reported as separate intangible assets due to the missing contractual basis but are part of goodwill. Expenditures related to application software, either hosted by the Company or within a software as a service arrangement, that fully meet the criteria for the recognition of an intangible asset set out in IAS 38, Intangible Assets (IAS 38) are capitalized as intangible assets. Goodwill and identifiable intangibles with indefinite useful lives are not amortized but tested for impairment annually or when an event becomes known that could trigger an impairment. The Company identified certain trade names and qualified management contracts as intangible assets with indefinite useful lives because there is no foreseeable limit to the period over which those assets are expected to generate net cash inflows for the Company. Intangible assets with finite useful lives are amortized over their respective useful lives to their residual values. The Company amortizes non-compete agreements over their useful lives which, on average, are 7 years. Technology is amortized over its average useful lives of 12 years. Internally developed intangibles are amortized on a straight-line basis over their average useful lives of 6 years. Licenses to manufacture, distribute and sell pharmaceutical drugs, exclusive contracts and exclusive licenses are amortized over their useful lives which on average is 12 years. Customer relationships are amortized over their average useful lives of 16 years. All other intangible assets are amortized over their weighted average useful lives of 7 years. The weighted average useful life of all amortizable intangible assets is 9 years. Intangible assets with finite useful lives are evaluated for impairment when events have occurred that may give rise to an impairment (see note 1 o)). To perform the annual impairment test of goodwill, the Company identified its groups of cash generating units (CGUs) and determined their carrying value by assigning the operating assets and liabilities, including the existing goodwill and intangible assets, to those groups of CGUs. Groups of CGUs reflect the lowest level on which goodwill is monitored for internal management purposes. One group of CGUs was identified in each of the Company’s operating segments. For the purpose of goodwill impairment testing, all corporate assets and liabilities are allocated to the groups of CGUs. At least once a year, the Company compares the recoverable amount of each group of CGUs to the group of CGUs’ carrying amount. The recoverable amount is defined as the higher of the value in use or the fair value less cost of disposal of a group of CGUs. In the first step, the value in use of the group of CGUs is determined using a discounted cash flow approach based upon the cash flow expected to be generated by the group of CGUs. In case that the value in use of the group of CGUs is less than its carrying amount and the fair value less cost of disposal is not estimated to be higher than the value in use, the difference is recorded as an impairment of the carrying amount of the goodwill. For further information see note 2 a). |
Financial instruments | h) Financial instruments The Company classifies its financial instruments in accordance with IFRS 9 in the following measurement categories: at amortized cost, at fair value through profit and loss (FVPL) and at fair value through other comprehensive income (FVOCI). Financial assets are classified depending on the business model in which the financial assets are held and the contractual terms of the cash flows. Financial assets are only reclassified when the business model for managing those assets changes. During the reporting period, no financial instruments were reclassified. Purchases and sales of financial assets are recognized or derecognized on the trading date. The Company makes use of the fair value option, which allows financial instruments to be classified at FVPL upon initial recognition, in very rare cases. At initial recognition financial assets and financial liabilities are measured at fair value. Subsequent measurement is either at cost, FVPL or FVOCI. In general, financial liabilities are classified and subsequently measured at amortized cost, with the exception of contingent consideration resulting from a business combination, put option liabilities as well as derivative financial liabilities. Investments in equity instruments are recognized and subsequently measured at fair value. The Company’s equity investments are not held for trading. In general, changes in the fair value of equity investments are recognized in the income statement. However, at initial recognition the Company elected, on an instrument-by-instrument basis, to represent subsequent changes in the fair value of individual strategic equity investments in other comprehensive income (loss) (OCI). The Company invested in several debt securities, with the objective to achieve both collecting contractual cash flows and selling the financial assets. All debt securities are consequently measured at fair value. Some of these securities give rise on specified dates to cash flows that are solely payments of principal and interest. These securities are subsequently measured at FVOCI. Other securities are measured at FVPL. The Company, as option writer of existing put options, can be obligated to purchase the noncontrolling interests held by third parties. The obligations are in the form of put liabilities and are exercisable at the third-party owners’ discretion within specified periods or upon the occurrence of certain events as outlined in each specific put option. If these put option liabilities were exercised, the Company would be required to purchase all or part of third-party owners’ noncontrolling interests at the appraised fair value at the time of exercise. The initial recognition and subsequent measurement are recognized in equity of the Company. For further information related to the estimation of these fair values, see note 23. Certain put option arrangements contain contingent triggers based on changes in legislation, which the Company has concluded are not genuine using the guidance in IFRS 9 B4.1.18 and IAS 32.25. The Company considers this subset of contracts as being non-genuine as the trigger in these clauses is considered to be an event that is extremely rare, highly abnormal and very unlikely to occur. Therefore, the Company has not recorded a liability on the balance sheet relating to this subset of puts option contracts. Derivative financial instruments which primarily include foreign currency forward contracts are recognized as assets or liabilities at fair value in the balance sheet (see note 23). From time to time, the Company may enter into other types of derivative instruments, such as interest rate swaps, which are dealt with on a transaction by transaction basis. Changes in the fair value of derivative financial instruments designated and qualifying as cash flow hedges are recognized in accumulated OCI (AOCI) in shareholders’ equity. The Company only designated the change in fair value of the spot element of foreign exchange forward contracts as the hedging instrument in cash flow hedging relationships and uses a hedge ratio for designated risks of 1:1. The forward elements are separately accounted for as cost of hedging in a separate component within AOCI. The ineffective portion of cash flow hedge is recognized in the income statement. The amounts recorded in AOCI are subsequently reclassified into earnings as a component of revenue for those foreign exchange contracts that hedge forecasted sales or as an adjustment of cost of revenue for those contracts that hedge forecasted intercompany product purchases. In connection with intercompany loans in foreign currency, the Company uses foreign exchange swaps to assure that no foreign exchange risks arise from those loans, which, if they qualify for cash flow hedge accounting, are also reported in AOCI and subsequently reclassified to selling, general and administrative expenses. The amounts recorded in AOCI are reclassified in the same period in which the hedged transaction affects earnings. Amounts recorded in AOCI for cash flow hedges related to product purchases from third parties are removed from AOCI and included directly in the carrying amount of the asset at initial recognition. Product purchases and sales designated in a cash flow hedging relationship are expected to affect profit and loss in the same period in which the cash flows occur. The critical terms of the forward exchange contracts generally align with the hedged item. The economic relationship between forward exchange contracts and the hedged forecast transaction is based on the timing, currency and amount of the hedged cash flows. Ineffectiveness could arise in case the timing of the hedged transaction or the credit default risk changes. From time to time, the Company enters into derivatives (particularly interest rate swaps and, to a certain extent, interest rate options) to protect against the risk of rising interest rates. When applicable, these interest rate derivatives are designated as cash flow hedges and have been entered into in order to effectively convert payments based on variable interest rates into payments at a fixed interest rate. The Company determines the existence of an economic relationship between the hedging instrument and hedged item based on the reference interest rates, maturities and the notional amounts. As applicable, the effective portion of gains and losses of derivatives designated as cash flow hedges is deferred in AOCI; the amount of gains and losses reclassified from AOCI are recorded in interest income and interest expenses. The change in fair value of derivatives that do not qualify for hedge accounting is recorded in the income statement and usually offsets the change in value recorded in the income statement for the underlying asset or liability. Derivatives embedded in host contracts are accounted for as separate derivatives if their economic characteristics and risks are not closely related to those of the host contracts. These embedded derivatives are measured at fair value with changes in fair value recognized in the income statement. |
Impairment of financial assets | i) Impairment of financial assets The impairment of financial assets is based on the expected credit loss approach, as introduced by IFRS 9. The expected credit loss approach requires that all impacted financial assets will carry a loss allowance based on their expected credit losses. Expected credit losses are a probability-weighted estimate of credit losses over the contractual life of the financial assets. This model comprises a three-stage approach. Upon recognition, the Company shall recognize losses that are expected within the next 12 months. If credit risk deteriorates significantly, from that time, impairment losses shall amount to lifetime expected losses. When assessing for significant increases in credit risk, the Company shall compare the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument at the date of initial recognition. The Company should consider reasonable and supportable information including historic loss rates, present developments such as liquidity issues and information about future economic conditions, to ensure foreseeable changes in the customer-specific or macroeconomic environment are considered. Separately, there is the rebuttable presumption that the credit risk has increased significantly since the initial recognition when contractual payments are overdue by more than 30 days. In case of objective evidence of impairment there is an assignment to stage 3. The assignment of a financial asset to stage 3 should rely on qualitative knowledge on the customers’ unfavorable financial position (for example bankruptcy, lawsuits with private or public payers), or quantitative criteria, based on an individual maturity analysis. Independently, there is an assignment to stage 3 if the contractual payments are overdue by more than 360 days. When a counterpart defaults, all financial assets against this counterpart are considered impaired. The definition of default is mainly based on payment practices specific to individual regions and businesses. The Company recognizes a loss allowance for expected credit losses on financial assets measured at amortized cost, contract assets and lease receivables as well as in investments in debt securities measured at fair value through other comprehensive income. The financial assets mainly comprise of accounts receivable as well as cash and cash equivalents. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective instrument. Financial assets whose expected credit loss is not assessed individually are grouped on the basis of geographical regions and the impairment is generally assessed on the basis of macroeconomic indicators such as credit default swaps. For accounts receivable, the Company uses the simplified method which requires recognizing lifetime expected credit losses at inception. However, expected credit losses on cash and cash equivalents are measured according to the general method based on IFRS 9. Based on the external credit ratings of the counterparties the Company considers that its cash and cash equivalents have a low credit risk (as the counterparties are generally investment grade). A significant increase in credit risk will be assessed based on qualitative as well as quantitative information. |
Foreign currency translation | j) Foreign currency translation For purposes of these consolidated financial statements, the euro is the reporting currency. The requirement to report in euro arises from Section 315e HGB and Section 244 HGB. Substantially all assets and liabilities of foreign subsidiaries that use a functional currency other than the euro are translated at year-end exchange rates, while profit and loss positions are translated at average exchange rates. Adjustments for foreign currency translation fluctuations are excluded from net earnings and are reported in AOCI. In addition, the translation adjustments of certain intercompany borrowings, which are of a long-term nature, are reported in AOCI. Transactions in foreign currencies recorded by subsidiaries are accounted for at the prevailing spot rate on the date of the respective transaction. Foreign exchange gains and losses resulting from the settlement of such transactions are generally recognized in profit and loss. Financial instruments denominated in a foreign currency are revalued at the spot rate as of the date of the consolidated statement of financial position. On the disposal of a foreign operation, all of the foreign currency translation differences accumulated in AOCI in respect of that disposed operation are reclassified to the consolidated statements of income. On a partial disposal of a subsidiary that includes a foreign operation that does not result in the loss of control over the subsidiary, the proportionate share of accumulated foreign currency translation differences is re-attributed to noncontrolling interests. The exchange rates of the U.S. dollar affecting foreign currency translation developed as follows: Exchange rates December 31, 2022 December 31, 2021 2022 2021 2020 spot exchange spot exchange average exchange average exchange average exchange rate in € rate in € rate in € rate in € rate in € 1 U.S. dollar 0.93756 0.88292 0.94962 0.84549 0.87550 |
Revenue recognition | k) Revenue recognition For both health care services revenue and health care products revenue, amounts billed to patients, third party payors and customers are recorded net of contractual allowances, discounts or rebates to reflect the estimated amounts to be receivable from these payors. Health care services Health care services revenue, other than insurance revenues discussed below, are recognized on the date the patient receives treatment and includes amounts related to certain services, products and supplies utilized in providing such treatment at an amount to which the Company expects to be entitled. The patient is obligated to pay for health care services at amounts estimated to be receivable based upon the Company’s standard rates or at rates determined under reimbursement arrangements. In the U.S., these arrangements are generally with third party payors, such as Medicare, Medicaid or commercial insurers. Outside the U.S., the reimbursement is usually made through national or local government programs with reimbursement rates established by statute or regulation. For services performed for patients where the collection of the billed amount or a portion of the billed amount cannot be determined at the time services are performed, the Company concludes that the consideration is variable (implicit price concession) and records the difference between the billed amount and the amount estimated to be collectible as a reduction to health care services revenue. Implicit price concessions include such items as amounts due from patients without adequate insurance coverage, patient co-payment and deductible amounts due from patients with health care coverage. The Company determines implicit price concessions based primarily upon past collection history. Upon receipt of new information relevant for the determination of the implicit price concession, the Company constrains, or adjusts the constraints for the variable consideration of the transaction price. The Company has entered into sub-capitation and other shared savings arrangements with certain payors to provide care to certain End-Stage Kidney Disease (ESKD) and chronic kidney disease patients. Under these arrangements, a baseline per patient per month amount is established. If the Company provides complete care for less than the baseline, it retains the difference. If the cost of complete care exceeds the baseline, the Company may owe the payor the difference. In the U.S., the Company generates revenue from insurance contracts in accordance with IFRS 4, Insurance Contracts (IFRS 4). Insurance premium revenue is recognized as earned each month and risk adjustments are offset against revenue. Revenue from insurance contracts is disclosed as part of “Other revenue” separately from “Revenue from contracts with customers” in the notes to the consolidated financial statements. Health care products In the health care product business, major revenues are generated from the sale of dialysis machines and water treatment systems, home hemodialysis products, disposable products and maintenance agreements for the Company´s health care products. Revenues from the sale of dialysis machines and water treatment system are typically recognized upon installation and provision of the necessary technical instructions as only thereafter the customer obtains control of the medical device. A small portion of the Company´s revenue is recognized from sales of dialysis machines, home hemodialysis products and other products used for in-center hemodialysis treatment to distributors. When the distributor is the principal in the contract, the revenue allocated to the machine or the products will be recognized upon transfer of control to the distributor. In case the Company is committed to perform the installation, revenue allocated to the installation, as a separate performance obligation, would be recorded upon installation of the machine at the end-customers’ premises. In case the distributor is only an agent in the contract, revenue for sale of the machine would be recorded upon installation. Under consignment arrangements revenue is recognized upon withdrawal of the products by the customer. Maintenance is provided over time, and as such revenue is typically recognized on a straight-line basis as the customer is simultaneously receiving and consuming the benefits provided by the Company’s performance. All other dialysis and non-dialysis product revenues are recognized upon transfer of control to the customer. Product revenues are normally based upon pre-determined rates that are established by contractual arrangement. A portion of dialysis product revenues is generated from arrangements which give the customer, typically a health care provider, the right to use dialysis machines. In the same contract the customer agrees to purchase the related treatment disposables at a price marked up from the standard price list. If the right to use the machine is conveyed through an operating lease and the customer agrees to purchase a minimum number of related treatment disposables, FMC AG & Co. KGaA does not recognize revenue upon delivery of the dialysis machine but recognizes revenue on the sale of disposables upon transfer of control with revenue for the use of dialysis machines recognized straight-line over the term of the lease contract. When there is no such agreement that the customer purchases a minimum number of related treatment disposables, revenue is recognized only on the sale of disposables unless the timing of the first purchase order of related treatment disposables justifies a combination of contracts according to IFRS 15. If the lease of the machines is a finance lease, ownership of the dialysis machine is transferred to the user upon installation of the dialysis machine at the customer site. In this type of contract, revenue is recognized in accordance with the accounting principles for finance leases under IFRS 16. The allocation of the transaction price to lease and non-lease components is based on stand-alone selling prices. For certain home-dialysis products the Company offers month-to month rental arrangements, where revenue is recognized on a monthly basis. In addition, for some licensing agreements and equipment sales to dialysis clinic customers in the area of home-dialysis, the Company recognizes upfront fees received as lease revenue on a straight-line basis over the term of the contract. IFRS 15 specifically excludes leases from the scope of the revenue standard. The transaction price of contracts which include lease components is allocated in accordance with IFRS 15. Revenue is recognized separately for the lease and the non-lease components of the contract. Revenue from lease contracts is disclosed as part of “Other revenue” separately from “Revenue from contracts with customers” in the notes to the consolidated financial statements. |
Capitalized interest | l) Capitalized interest The Company includes capitalized interest as part of the cost of the asset if it is directly attributable to the acquisition, construction or manufacture of qualifying assets. For the fiscal years 2022, 2021 and 2020, interest of €2,240, €4,167 and €4,963, based on an average interest rate of 4.52%, 2.89% and 3.67%, respectively, was recognized as a component of the cost of assets. |
Research and development expenses | m) Research and development expenses Research is the original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge. Development is the technical and commercial implementation of research results and takes place before the start of commercial production or use. Research costs are expensed as incurred. Development costs that fully meet the criteria for the recognition of an intangible asset, as set out in IAS 38, are capitalized and are primarily development projects related to dialysis machines and peritoneal dialysis cyclers. Such costs are capitalized when the Company’s commitment to finalize the project has been formalized and approved by management, the design input of the project or machine has been finalized and, based on experience with similar projects, the Company has determined that technical feasibility has been achieved and future economic benefits are probable. |
Income taxes | n) Income taxes Current taxes are calculated based on the profit (loss) of the fiscal year and in accordance with local tax rules of the respective tax jurisdictions. Expected and executed additional tax payments and tax refunds for prior years are also taken into account. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the single entity’s financial statement carrying amounts of existing assets and liabilities and their respective tax basis, tax credits and tax loss carryforwards which are probable to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates that have been enacted or substantially enacted by the end of the reporting period. A change in tax rate for the calculation of deferred tax assets and liabilities is recognized in the period the new laws are enacted or substantively enacted. The effects of the adjustment are generally recognized in the income statement. The effects of the adjustment are recognized in equity, if the temporary differences are related to items directly recognized in equity. Deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. In addition, deferred tax assets and liabilities are not recognized if they arise from the initial recognition of an asset or a liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss. The carrying amount of a deferred tax asset is reviewed at each balance sheet date. A deferred tax asset is recognized to the extent that the utilization of parts or all of it is probable because sufficient taxable profit will be available (see note 4 g). The determination of future taxable income is based on assumptions on future market conditions and future profits of FMC AG & Co. KGaA and considers all currently available information as well as the level of historical taxable income. In addition, the determination of the recoverable amount of deferred tax assets considers implemented tax strategies. With respect to the interpretation of tax laws, the amount and the timing of future taxable income, complex tax rules may lead to uncertainties in tax treatments. The Company recognizes assets and liabilities for uncertain tax treatments based on reasonable estimates to the extent it is probable the tax will be recovered or that the tax will be payable, respectively. In North America and Germany, interest and penalties related to income taxes, including uncertain tax treatments, do not meet the definition of income taxes, and therefore are accounted for under IAS 37. All other jurisdictions account for interest and penalties related to income taxes in accordance with local tax rules of the respective tax jurisdiction either under IAS 37 or as income tax expense under IAS 12. Under IAS 37, penalties related to income taxes, including uncertain tax treatments, are recorded within selling, general and administrative expense. Additionally, in accordance with IAS 37, interest related to income taxes, including uncertain tax treatments, are recorded within other (income) expense. |
Impairment | o) Impairment The Company reviews the carrying amount of its property, plant and equipment, its intangible assets with definite useful lives, its right-of-use assets as well as other non-current assets for impairment whenever events or changes in circumstances indicate that the carrying amount is higher than the asset’s recoverable amount in accordance with IAS 36, Impairment of Assets (IAS 36). The fair value less cost of disposal of an asset is estimated as its net realizable value. The value in use is the present value of future cash flows expected to be derived from the relevant asset. If it is not possible to estimate the future cash flows from the individual assets, impairment is tested on the basis of the corresponding group of CGUs. Impairment losses, except impairment losses recognized on goodwill, are reversed up to the amount of the amortized acquisition cost, as soon as the reasons for impairment no longer exist. Non-current assets to be disposed of by sale are reported at the lower of carrying value or fair value less cost to sell and depreciation is ceased. Non-current assets to be disposed of other than by sale are considered to be held and used until disposal. |
Debt issuance costs | p) Debt issuance costs Debt issuance costs related to a recognized debt liability are presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. Debt issuance costs related to undrawn credit facilities are presented in Other assets. These costs are amortized over the term of the related obligation or credit facility. For further information see note 14. |
Self-insurance programs | q) Self-insurance programs See note 2 d). |
Concentration of risk | r) Concentration of risk The Company is engaged in the manufacture and sale of products for all forms of kidney dialysis, principally to health care providers throughout the world, and in providing kidney dialysis treatment as well as providing other health care services. The Company performs ongoing evaluations of its customers’ financial condition and, generally, requires no collateral. Revenues which were earned and subject to regulations under Medicare and Medicaid, governmental health care programs administered by the U.S. government, were approximately 26%, 27%, and 32% of the Company’s worldwide revenues in 2022, 2021 and 2020, respectively. See note 2 c) for concentration risks of debtors or group of debtors as well as note 8 for discussion of suppliers with long-term purchase commitments. |
Legal contingencies | s) Legal contingencies See note 2 b). |
Other provisions | t) Other provisions In accordance with IAS 37, accruals for taxes and other obligations are recognized when there is a present obligation to a third party arising from past events, it is probable that the obligation will be settled in the future and the required amount can be reliably estimated. Provisions by their nature are more uncertain than most other items in the statement of financial position. Non-current provisions with a remaining period of more than one year are discounted to the present value of the expenditures expected to settle the obligation. The applied discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. |
Earnings per share | u) Earnings per share Basic earnings per share is calculated in accordance with IAS 33, Earnings per Share (IAS 33). Basic earnings per share is calculated by dividing net income attributable to shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share include the effect of all potentially dilutive instruments on shares that would have been outstanding during the years presented had the dilutive instruments been issued. For the calculation of basic earnings per share, treasury stock is not considered outstanding and is therefore deducted from the number of shares outstanding. Equity-settled awards granted under the Company’s stock incentive plans (see note 20) are potentially dilutive equity instruments. |
Treasury stock | v) Treasury stock The Company may, from time to time, acquire its own shares (Treasury Stock) as approved by its shareholders. The acquisition, sale or retirement of its Treasury Stock is recorded separately in equity. The value of such Treasury Stock is shown as a reduction of the Company’s equity. |
Employee benefit plans | w) Employee benefit plans Pension obligations for post-employment benefits are measured in accordance with IAS 19, Employee Benefits (IAS 19), using the projected unit credit method, taking into account future salary and trends for pension increase. The Company uses December 31 as the measurement date when measuring the net pension liability. For the Company’s funded benefit plans the defined benefit obligation is offset against the fair value of plan assets (net pension liability). Plan assets comprise assets held by a long-term employee benefit fund and qualifying insurance policies. A pension liability is recognized in the consolidated balance sheet if the defined benefit obligation exceeds the fair value of plan assets. A pension asset is recognized (and reported under “Other non-current assets” in the consolidated balance sheet) if the fair value of plan assets exceeds the defined benefit obligation and if the Company has a right of refund against the fund or a right to reduce future payments to the fund. Net interest costs are calculated by multiplying the benefit obligation (fair value of plan assets) at beginning of the year with the discount rate utilized in determining the benefit obligation. Remeasurements include actuarial gains and losses resulting from the evaluation of the defined benefit obligation as well as from the difference between actual investment returns and the return implied by the net interest cost. In the event of a surplus for a defined benefit pension plan remeasurements can also contain the effect from asset ceiling, as far as this effect is not included in net interest costs. Remeasurements are recognized in AOCI completely. Remeasurements may not be reclassified in subsequent periods. Components of net periodic benefit cost are recognized in profit and loss of the period. |
Share-based plans | x) Share-based plans The grant date fair value of stock options and convertible equity instruments that are settled by delivering equity instruments granted to the Management Board and executive employees of the Company and its subsidiaries by FMC AG & Co. KGaA is measured in accordance with IFRS 2, Share-based Payment (IFRS 2) using the binomial option pricing model and recognized as expense over the vesting period of the stock option plans. For certain exceptions, as defined in the respective plan terms, a shorter vesting period may apply after which the stock options will not forfeit in any way. In such cases the vesting period is shortened accordingly. The balance sheet date fair value of cash-settled phantom stock granted to the Management Board and executive employees of the Company is calculated in accordance with IFRS 2 using the binomial option pricing model. The corresponding liability based on the balance sheet date fair value is accrued over the vesting period of the phantom stock plans. For certain exceptions as defined in the respective plan terms, a shorter vesting period may apply after which the phantom stock will not forfeit in any way. In such cases the vesting period is shortened accordingly. The balance sheet date fair value of cash-settled performance shares granted to the Management Board and executive employees of the Company is calculated using the Monte Carlo pricing model in accordance with IFRS 2. The corresponding liability based on the balance sheet date fair value is accrued over the vesting periods of the performance share plans. For certain exceptions a shorter vesting period may apply after which the performance shares will not forfeit in any way. In such cases the vesting period is shortened accordingly. |
Government grants | y) Government grants In accordance with IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, government grants, including non-monetary grants at fair value, are recognized only when there is reasonable assurance that the Company will comply with all conditions attached to the grant and that the grants will be received. Government grants or government assistance are recognized directly against the respective qualifying expense in either the cost of revenue line item or selling, general and administrative expense line item within the statement of profit and loss. Amounts received for which a respective cost is not yet incurred are recorded as a liability on the Company’s consolidated balance sheet and offset against all qualifying costs that are incurred in future periods. The Company and its patient population continued to be impacted by severe acute respiratory syndrome coronavirus 2 (COVID-19). See note 4 h) for further details. |
Impacts of climate change on accounting | z) The Company continually analyzes potential sustainability risks in the areas of climate change and water scarcity. In both areas, the Company has not identified any significant risks for its business model. Therefore, the Company does not currently expect any material impact of sustainability risks on the accounting in 2022. |
Recent pronouncements | aa) Recently implemented accounting pronouncements The Company has prepared its consolidated financial statements at and for the year ended December 31, 2022 in conformity with IFRS that have to be applied for fiscal years beginning on January 1, 2022. For the year ended December 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 standards which are 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 updated estimates and assumptions that reflect the timing of cash flows and any uncertainty relating to insurance contracts. Based on an assessment performed during 2022, the Company believes that the premium allocation approach under IFRS 17 is the most appropriate measurement model. On initial recognition of the liability for incurred claims, the estimation and valuation process remains unchanged as compared to the application of IFRS 4. Regarding the measurement of the liability for the remaining coverage, the liability is equal to the premiums received less any insurance acquisition cash flows. The Company does not consider the effects and time value of money when measuring the liability for the remaining coverage, as the related cash flow are expected to be paid or received in one year or less from the date the claims are incurred. The Company will apply the modified retrospective approach at the transition. Insurance premium revenues are currently recognized based on the passage of time, therefore the pattern of revenue recognition will not change upon the application of IFRS 17. The Company does not expect that IFRS 17 will have a material impact on its consolidated 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. In the Company’s view, no other pronouncements issued by the IASB are expected to have a material impact on the consolidated financial statements. |
The Company, basis of present_3
The Company, basis of presentation and significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
The Company, basis of presentation and significant accounting policies | |
Schedule of inputs used to calculate the loss on net monetary position | Inputs for the calculation of losses on net monetary positions Argentina Lebanon Turkiye Date of IAS 29 initial application July 1, 2018 December 31, 2020 June 30, 2022 Consumer price index National Institute of Statistics & Censuses Central Administration of Statistics Turkish Statistical Institute Index at December 31, 2022 1,134.6 2,045.46 1,128.45 Calendar year increase 95% 122% 64% Loss on net monetary position in € THOUS 39,056 121 7,384 |
Schedule of Company's interest in principal subsidiaries | Principal subsidiaries Name Country Main activity Ownership Fresenius Medical Care (FMC) Argentina S.A. Argentina Provision of health care services 100 % Sale of health care products FMC Australia Pty. Ltd. Australia Provision of health care services 100 % Sale of health care products FMC Colombia S.A. Colombia Provision of health care services 100 % Sale of health care products FMC Deutschland GmbH Germany Sale of health care products 100 % Production of health care products Research and development FMC France S.A.S. France Sale of health care products 100 % FMC GmbH Germany Sale of health care products 100 % FMC Holdings, Inc. USA Provision of health care services 100 % Sale of health care products Production of health care products Research and development FMC Italia S.p.A. Italy Sale of health care products 100 % FMC Korea Ltd. South Korea Sale of health care products 100 % FMC Ltda. Brazil Sale of health care products 100 % FMC Shanghai Ltd. China Sale of health care products 100 % FMC (U.K.) Ltd. United Kingdom Provision of health care services 100 % Sale of health care products Production of health care products National Medical Care of Spain, S.A.U. Spain Provision of health care services 100 % NephroCare Portugal, S.A. Portugal Provision of health care services 100 % Sale of health care products JSC Fresenius SP Russian Federation Provision of health care services 100 % Sale of health care products |
Schedule of subsidiaries exempt from applying certain legal requirements | Companies exempt from applying certain legal requirements Name of the company Registered office of the company Ärztliches Versorgungszentrum Ludwigshafen GmbH im Lusanum Ludwigshafen am Rhein, Germany DiZ München Nephrocare GmbH Munich, Germany ET Software Developments GmbH Heidelberg, Germany Fresenius Medical Care Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Data Solutions GmbH Berlin, Germany Fresenius Medical Care Deutschland GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Frankfurt am Main GmbH Frankfurt am Main, Germany Fresenius Medical Care GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Investment GmbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Beteiligungsgesellschaft mbH Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care US Zwei Vermögensverwaltungs GmbH & Co. KG Bad Homburg v. d. Höhe, Germany Fresenius Medical Care Ventures GmbH Bad Homburg v. d. Höhe, Germany Medizinisches Versorgungszentrum Berchtesgaden GmbH Berchtesgaden, Germany MVZ Gelsenkirchen-Buer GmbH Gelsenkirchen, Germany Nephrocare Ahrensburg GmbH Ahrensburg, Germany Nephrocare Augsburg GmbH Augsburg, Germany Nephrocare Berlin-Weißensee GmbH Berlin, Germany Nephrocare Betzdorf GmbH Betzdorf, Germany Nephrocare Bielefeld GmbH Bielefeld, Germany Nephrocare Buchholz GmbH Buchholz, Germany Nephrocare Daun GmbH Daun, Germany Nephrocare Deutschland GmbH Bad Homburg v. d. Höhe, Germany Nephrocare Döbeln GmbH Döbeln, Germany Nephrocare Dortmund GmbH Dortmund, Germany Nephrocare Friedberg GmbH Friedberg, Germany Nephrocare Grevenbroich GmbH Grevenbroich, Germany Nephrocare Hagen GmbH Hagen, Germany Nephrocare Hamburg-Altona GmbH Hamburg, Germany Nephrocare Hamburg-Barmbek GmbH Hamburg, Germany Nephrocare Hamburg-Süderelbe GmbH Hamburg, Germany Nephrocare Ingolstadt GmbH Ingolstadt, Germany Nephrocare Kaufering GmbH Kaufering, Germany Nephrocare Krefeld GmbH Krefeld, Germany Nephrocare Lahr GmbH Lahr, Germany Nephrocare Leverkusen GmbH Leverkusen, Germany Nephrocare Ludwigshafen GmbH Ludwigshafen am Rhein, Germany Nephrocare Mannheim GmbH Mannheim, Germany Nephrocare Mettmann GmbH Mettmann, Germany Nephrocare Mönchengladbach GmbH Mönchengladbach, Germany Nephrocare Mühlhausen GmbH Mühlhausen, Germany Nephrocare München-Ost GmbH Munich, Germany Nephrocare Münster GmbH Münster, Germany Nephrocare MVZ Aalen GmbH Aalen, Germany Nephrocare Oberhausen GmbH Oberhausen, Germany Nephrocare Papenburg GmbH Papenburg, Germany Nephrocare Pirmasens GmbH Pirmasens, Germany Nephrocare Püttlingen GmbH Püttlingen, Germany Nephrocare Recklinghausen GmbH Recklinghausen, Germany Nephrocare Rostock GmbH Rostock, Germany Nephrocare Salzgitter GmbH Salzgitter, Germany Nephrocare Schrobenhausen GmbH Schrobenhausen, Germany Nephrocare Schwandorf-Regenstauf GmbH Schwandorf, Germany Nephrocare Starnberg GmbH Starnberg, Germany Nephrocare Wetzlar GmbH Wetzlar, Germany Nephrocare Witten GmbH Witten, Germany Nephrologisch-Internistische Versorgung Ingolstadt GmbH Ingolstadt, Germany Nova Med GmbH Vertriebsgesellschaft für medizinischtechnische Geräte und Verbrauchsartikel Bad Homburg v. d. Höhe, Germany VIVONIC GmbH Sailauf, Germany Zentrum für Nieren- und Hochdruckkrankheiten Bensheim GmbH Bensheim, Germany |
Schedule of exchange rates of the U.S. dollar affecting foreign currency translation developed | Exchange rates December 31, 2022 December 31, 2021 2022 2021 2020 spot exchange spot exchange average exchange average exchange average exchange rate in € rate in € rate in € rate in € rate in € 1 U.S. dollar 0.93756 0.88292 0.94962 0.84549 0.87550 |
Significant judgments and sou_2
Significant judgments and sources of estimation uncertainties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant judgments and sources of estimation uncertainties | |
Schedule of key assumptions of value-in-use calculations for cash generating unit | Key assumptions (1) in % North America EMEA Asia-Pacific (2) Latin America (2) 2022 2021 2022 2021 2022 2021 2022 2021 Average revenue growth in ten year projection period mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit mid-single-digit Average EBIT growth in ten year projection period high-single-digit mid-single-digit high-single-digit mid-single-digit mid-single-digit mid-single-digit low-double-digit low-double-digit Residual value growth 1.00 1.00 1.00 1.00 1.00 4.00 1.60 1.60 Pre-tax WACC 8.05 5.78 10.44 7.14 8.76 5.34 12.37 - 26.14 10.62 - 19.87 After-tax WACC 6.39 4.58 8.08 5.23 6.38 4.91 8.94 - 22.71 7.00 - 16.25 (1) The Company’s key assumptions are presented based upon the goodwill impairment tests performed as of December 31, 2022 and October 1, 2021. (2) There are no reasonably possible changes in assumptions that would lead to an impairment in these groups of CGUs. |
Schedule that shows the amounts by which the key assumptions would need to change individually that the recoverable amount equals the carrying amount | Sensitivity analysis (1) Change in percentage points North America EMEA 2022 2021 2022 2021 Pre-tax WACC 0.71 3.82 2.11 2.95 After-tax WACC 0.56 2.91 1.56 2.09 Operating income margin of each projection year (0.97) (5.22) (2.50) (3.49) |
Schedule of the composition of trade accounts and other receivables from unrelated parties | Composition of trade accounts and other receivables from unrelated parties in % December 31, 2022 2021 U.S. Government health care programs 31 % 32 % U.S. commercial payors 18 % 15 % U.S. hospitals 5 % 4 % Self-pay of U.S. patients 2 % 2 % Other North America Segment payors 2 % 3 % Product customers and health care payors outside the North America Segment 42 % 44 % Total 100 % 100 % |
Acquisitions, business combin_2
Acquisitions, business combinations, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions, business combinations, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities | |
Schedule of reconciliation of goodwill recognized | Reconciliation of goodwill recognized in $ THOUS in € THOUS Fair value of consideration transferred of the Company's interest in FHP 398,419 401,066 Fair value of previously held equity method investment in InterWell Health LLC 175,434 176,600 573,853 577,666 Fair Values of Assets Acquired and Liabilities Assumed (preliminary) Less: Cash and cash equivalents (57,383) (57,764) Less: Other assets (2,819) (2,838) Less: Intangible assets (53,919) (54,277) Other liabilities 13,029 13,116 Noncontrolling interests 186,789 188,030 Goodwill 659,550 663,933 During the fourth quarter of 2022, the Company updated the purchase price allocation as a result of obtaining additional information. The fair value of the consideration transferred to Cricket and InterWell Health, LLC was reduced by $7,667 (€7,718) to reflect an updated capital interest allocation related to share-based compensation arrangements of Cricket at the Acquisition Date. As such, the noncontrolling interests of Cricket and InterWell Health, LLC in NewCo were reduced by $7,369 (€7,418). Additionally, management adjusted the underlying parameters utilized to value intangible assets acquired, which resulted in an increase of $19,400 (€19,529). The Company also updated its tax analysis, specifically in the U.S. Deferred tax liabilities were adjusted by $9,084 (€9,144), which resulted in net deferred taxes of zero. |
Notes to the consolidated sta_2
Notes to the consolidated statements of income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes to the consolidated statements of income | |
Schedule of revenue | Revenue in € THOUS 2022 2021 2020 Revenue from Revenue from Revenue from contracts with Other contracts with Other contracts with Other customers revenue Total customers revenue Total customers revenue Total Health care services 14,966,580 451,489 15,418,069 13,479,438 396,844 13,876,282 13,810,589 303,810 14,114,399 Health care products 3,876,321 103,627 3,979,948 3,623,951 118,452 3,742,403 3,639,995 104,669 3,744,664 Total 18,842,901 555,116 19,398,017 17,103,389 515,296 17,618,685 17,450,584 408,479 17,859,063 |
Schedule of trade accounts receivables from unrelated parties and contract liabilities | Trade accounts receivables from unrelated parties and contract liabilities in € THOUS 2022 2021 Trade accounts receivables from unrelated parties 3,381,006 3,309,353 Contract liabilities 63,273 428,034 |
Schedule of unsatisfied performance obligations | Unsatisfied performance obligations in € THOUS 2022 2021 1 year 283,208 686,505 1 - 3 years 342,274 383,682 3 - 5 years 266,302 256,922 5 - 10 years 74,524 101,788 Total 966,308 1,428,897 |
Schedule of notable general and administrative expenses | Notable general and administrative expenses in € THOUS 2022 2021 2020 Impairment Loss in the Latin America Segment — — 194,468 Income attributable to a consent agreement on foregone profits from the sale of certain pharmaceuticals to non-associated companies (83,212) (44,300) (39,540) Reimbursement payments and funding received related to economic assistance programs to address the consequences of the COVID-19 pandemic (49,652) (8,716) (27,414) Net (gain) loss from changes in the fair value of investments, mainly related to equity investments 96,423 66,151 (20,938) (Gain) loss from right-of-use assets (18,692) (4,975) (12,867) Net (gain) loss from the sale of investments and divestitures (47,733) (4,054) (41,938) Net (gain) loss related to variable payments outstanding for acquisitions, mainly due to revaluation (3,904) (6,716) (1,996) Impairment loss on property, plant and equipment, intangible assets and right-of-use assets 118,229 36,554 2,758 Net (gain) loss from the sale of fixed and intangible assets 18,936 (21,141) 17,358 Costs related to the InterWell Health transaction 24,367 — — Costs related to U.S. ballot initiatives 22,514 — 26,069 |
Schedule of cost of materials | Cost of materials in € THOUS 2022 2021 2020 Cost of raw materials, supplies and purchased components 3,939,649 3,622,169 3,668,053 Cost of purchased services 280,913 240,699 236,302 Cost of materials 4,220,562 3,862,868 3,904,355 |
Schedule of personnel expenses | Personnel expenses in € THOUS 2022 2021 2020 Wages and salaries 6,390,322 5,618,236 5,753,795 Social security contributions and cost of retirement benefits and social assistance 1,549,075 1,343,882 1,313,612 thereof retirement benefits 217,165 189,176 181,347 Personnel expenses 7,939,397 6,962,118 7,067,407 |
Schedule of employees by function | The Company employed the following personnel on a total headcount basis, on average, for the following years: Employees by function (1) 2022 2021 2020 Production and services 111,472 112,201 113,628 Administration 12,166 13,216 13,386 Sales and marketing 4,877 4,648 4,085 Research and development 1,226 1,245 1,242 Total employees 129,741 131,310 132,341 (1) The figures for 2021 and 2020 have been adjusted from full-time equivalents to total headcount to conform with the current year’s presentation. The Company believes this information provides a more accurate assessment of the number of employees working for the Company and provides additional insight regarding the composition of its personnel expenses incurred for the years presented. |
Schedule of income before income taxes according to region | Income before income taxes in € THOUS 2022 2021 2020 Germany (30,186) 81,246 160,866 United States 829,699 1,090,797 1,487,931 Other 419,766 399,818 287,593 Total 1,219,279 1,571,861 1,936,390 |
Schedule of income tax expense (benefit) | Income tax expense (benefit) in € THOUS 2022 2021 2020 Current Germany (5,423) (11,675) 17,879 United States 190,058 181,714 242,062 Other 181,790 115,535 129,512 366,425 285,574 389,453 Deferred Germany 16,963 18,404 27,844 United States (13,767) 47,018 95,444 Other (44,667) 1,837 (12,183) (41,471) 67,259 111,105 Total 324,954 352,833 500,558 |
Schedule of reconciliation of expected and actual income tax expense | Reconciliation of income taxes in € THOUS 2022 2021 2020 Expected corporate income tax expense 367,491 473,759 584,983 Tax free income (53,282) (41,566) (51,231) Income from equity method investees (24,909) (26,722) (28,510) Tax rate differentials (39,064) (40,604) (71,755) Non-deductible expenses (1) 77,465 50,682 106,437 Taxes for prior years (848) (38,502) (2,748) Noncontrolling partnership interests (54,636) (65,489) (70,300) Tax rate changes (359) 3,543 4,221 Change in realizability of deferred tax assets and tax credits 33,683 20,736 12,627 Withholding taxes 9,160 5,912 4,858 Other 10,253 11,084 11,976 Income tax expense 324,954 352,833 500,558 Effective tax rate 26.7 % 22.4 % 25.9 % (1) Non-deductible tax expenses for the year ended December 31, 2020 included €58,749 related to the Impairment Loss in the Latin America Segment discussed above. |
Schedule of deferred income taxes and net operating loss carryforwards | Deferred income tax assets and liabilities in € THOUS 2022 2021 Deferred tax assets Trade accounts receivable 23,448 21,407 Inventories 62,663 73,078 Intangible assets 6,875 5,587 Property, plant and equipment and other non-current assets 86,182 83,946 Lease liabilities 894,451 904,265 Provisions and other liabilities 212,167 197,765 Pension liabilities 93,431 168,278 Net operating loss carryforwards, tax credit carryforwards and interest carryforwards 113,713 97,287 Derivatives 1,893 4,211 Compensation expense related to stock options 1,190 1,763 Other 73,882 40,562 Total deferred tax assets 1,569,895 1,598,149 Deferred tax liabilities Trade accounts receivable 27,311 47,378 Inventories 5,875 3,808 Intangible assets 886,696 834,190 Property, plant and equipment and other non-current assets 267,064 276,922 Right-of-use assets 793,855 818,314 Provisions and other liabilities 6,533 15,423 Pension liabilities 65 — Derivatives 4,204 700 Other 202,088 154,506 Total deferred tax liabilities 2,193,691 2,151,241 Net deferred tax liabilities (623,796) (553,092) Net deferred income tax assets and liabilities in € THOUS 2022 2021 Deferred tax assets 312,679 315,360 Deferred tax liabilities 936,475 868,452 Net deferred tax liabilities (623,796) (553,092) Net operating loss carryforwards in € THOUS For the year ended December 31, 2022 For the year ended December 31, 2021 2023 19,274 2022 14,422 2024 14,979 2023 13,972 2025 27,238 2024 21,400 2026 50,856 2025 40,610 2027 75,953 2026 59,632 2028 28,295 2027 25,465 2029 53,910 2028 5,826 2030 2,999 2029 4,484 2031 1,672 2030 2,520 2032 and thereafter 131,039 2031 and thereafter 47,494 Without expiration date 420,026 Without expiration date 291,848 Total 826,241 Total 527,673 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions | |
Schedule of service agreements and products with related parties | Service agreements and products with related parties in € THOUS 2022 2021 2020 December 31, 2022 December 31, 2021 Sales of Purchases of Sales of Purchases of Sales of Purchases of goods and goods and goods and goods and goods and goods and Accounts Accounts Accounts Accounts services services services services services services receivable payable receivable payable Service agreements (1) Fresenius SE 361 38,010 123 38,292 250 29,174 26 2,820 — 6,707 Fresenius SE affiliates 5,164 83,087 5,657 100,541 4,708 102,323 1,168 8,585 1,544 8,041 Equity method investees 36,089 — 42,391 — 19,730 — 120,507 — 131,661 — Total 41,614 121,097 48,171 138,833 24,688 131,497 121,701 11,405 133,205 14,748 Products Fresenius SE — — 5 — — — — — — — Fresenius SE affiliates 66,800 39,405 50,081 31,719 41,180 44,164 16,078 5,826 13,487 6,000 Equity method investees — 463,073 — 445,714 — 474,100 — 73,563 — 76,444 Total 66,800 502,478 50,086 477,433 41,180 518,264 16,078 79,389 13,487 82,444 (1) In addition to the above shown accounts payable, accrued expenses for service agreements with related parties amounted to €6,520 and €12,911 at December 31, 2022 and 2021, respectively. |
Schedule of lease agreements with related parties | Lease agreements with related parties in € THOUS 2022 2021 2020 Interest Lease Interest Lease Interest Lease Depreciation expense expense (1) Depreciation expense expense (1) Depreciation expense expense (1) Fresenius SE 8,395 524 259 7,876 661 1,654 7,925 740 2,452 Fresenius SE affiliates 13,956 1,048 — 13,709 1,092 38 13,236 1,272 572 Total 22,351 1,572 259 21,585 1,753 1,692 21,161 2,012 3,024 (1) Short-term leases and expenses relating to variable lease payments as well as low value leases are exempted from balance sheet recognition. Lease agreements with related parties in € THOUS December 31, 2022 December 31, 2021 Right-of-use Lease Right-of-use Lease asset liability asset liability Fresenius SE 38,688 39,626 48,794 50,997 Fresenius SE affiliates 112,684 114,077 68,181 68,284 Total 151,372 153,703 116,975 119,281 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | Cash and cash equivalents in € THOUS 2022 2021 Cash 911,015 925,134 Securities and time deposits 362,772 556,521 Cash and cash equivalents 1,273,787 1,481,655 |
Trade accounts and other rece_2
Trade accounts and other receivables from unrelated parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade accounts and other receivables from unrelated parties | |
Summary of trade accounts and other receivables from unrelated parties | Trade accounts and other receivables from unrelated parties in € THOUS December 31, December 31, 2022 2021 thereof credit- thereof credit- impaired (1) impaired (1) Trade accounts and other receivables, gross 3,742,951 378,831 3,572,990 423,113 thereof finance lease receivables 72,853 — 64,224 — less expected credit losses (168,681) (124,081) (163,929) (130,790) Trade accounts and other receivables 3,574,270 254,750 3,409,061 292,323 (1) Trade accounts receivable balances are credit-impaired when one or more events have occurred that have a detrimental impact on the estimated future cash flows of the receivable balance (e.g. overdue by more than one year, etc.). |
Summary of the development of expected credit losses from unrelated parties | Development of expected credit losses for doubtful accounts from unrelated parties in THOUS € 2022 2021 2020 Expected credit losses as of January 1 163,929 142,372 141,358 Change in valuation allowances as recorded in the consolidated statements of income 42,470 44,374 28,302 Write-offs and recoveries of amounts previously written-off (36,180) (21,622) (14,213) Foreign currency translation (1,538) (1,195) (13,075) Expected credit losses as of December 31 168,681 163,929 142,372 |
Summary of the aging analysis of trade accounts and other receivables from unrelated parties and the expected credit losses | The following tables show the aging analysis of trade accounts and other receivables from unrelated parties and expected credit losses as of December 31, 2022 and as of December 31, 2021: Aging analysis of trade accounts and other receivables from unrelated parties 2022 in € THOUS up to 3 3 to 6 6 to 12 more than not months months months 12 months overdue overdue overdue overdue overdue Total Trade accounts and other receivables 2,143,985 831,384 254,570 246,497 266,515 3,742,951 less expected credit losses (23,709) (8,666) (5,314) (11,409) (119,583) (168,681) Trade accounts and other receivables, net 2,120,276 822,718 249,256 235,088 146,932 3,574,270 Aging analysis of trade accounts and other receivables from unrelated parties 2021 in € THOUS up to 3 3 to 6 6 to 12 more than not months months months 12 months overdue overdue overdue overdue overdue Total Trade accounts and other receivables 2,042,024 834,638 206,903 205,436 283,989 3,572,990 less expected credit losses (12,233) (5,911) (4,133) (12,266) (129,386) (163,929) Trade accounts and other receivables, net 2,029,791 828,727 202,770 193,170 154,603 3,409,061 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Schedule of inventories | Inventories in € THOUS 2022 2021 Finished goods 1,310,995 1,233,197 Health care supplies 553,821 452,073 Raw materials and purchased components 306,994 247,478 Work in process 124,404 105,266 Inventories 2,296,214 2,038,014 |
Other current assets (Tables)
Other current assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other current assets | |
Schedule of other current assets | At December 31, 2022 and 2021, other current assets consisted of the following: Other current assets in € THOUS 2022 2021 Payments on account 199,736 182,239 Debt securities 169,983 136,362 Income tax receivable 143,782 177,150 Other tax receivable 125,762 109,586 Prepaid insurance 27,652 21,160 Receivables for supplier rebates 23,920 20,662 Derivatives 19,777 3,417 Notes receivable 18,304 18,873 Deposit / guarantee / security 17,843 22,822 Prepaid rent 15,543 14,237 Loans to customers or suppliers 5,494 8,990 Other 151,316 160,653 Other current assets 919,112 876,151 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment | |
Schedule of property, plant and equipment | Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Additions Reclassifications Disposals 2022 Land 70,691 (3,002) (65) 1,842 (261) (47) 69,158 Buildings and improvements 4,129,180 192,505 (15,357) 30,248 192,974 (158,052) 4,371,498 Machinery and equipment 5,679,662 208,366 (3,153) 363,609 127,282 (212,796) 6,162,970 Construction in progress 394,333 12,180 5,017 224,867 (279,396) (4,098) 352,903 Property, plant and equipment 10,273,866 410,049 (13,558) 620,566 40,599 (374,993) 10,956,529 Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2021 translation group Additions Reclassifications Disposals 2021 Land 69,582 147 93 4 2,446 (1,581) 70,691 Buildings and improvements 3,613,172 251,338 2,568 60,173 277,232 (75,303) 4,129,180 Machinery and equipment 5,233,002 243,941 9,232 419,897 103,355 (329,765) 5,679,662 Construction in progress 471,478 19,553 (30) 258,826 (345,219) (10,275) 394,333 Property, plant and equipment 9,387,234 514,979 11,863 738,900 37,814 (416,924) 10,273,866 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Additions Impairment (1) Reclassifications Disposals 2022 Land 586 (41) — — — (14) — 531 Buildings and improvements 2,472,155 118,465 (7,709) 287,845 18,840 (799) (116,462) 2,772,335 Machinery and equipment 3,566,098 116,787 (2,962) 516,802 12,687 1,400 (179,831) 4,030,981 Property, plant and equipment 6,038,839 235,211 (10,671) 804,647 31,527 587 (296,293) 6,803,847 (1) Including impairment loss in the amount of €28,949 related to a production plant and associated machines which were fully written off as a result of economic sanctions imposed on Russia, due to the Ukraine War, that negatively impacted the Company’s supply chain to the country. The impairment loss is recorded at Corporate (see note 26). Depreciation in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2021 translation group Additions Impairment Reclassifications Disposals 2021 Land 1,317 (10) — — — — (721) 586 Buildings and improvements 2,098,019 154,893 (1,795) 260,532 3,870 11,803 (55,167) 2,472,155 Machinery and equipment 3,231,034 141,256 (868) 482,034 5,647 2,633 (295,638) 3,566,098 Property, plant and equipment 5,330,370 296,139 (2,663) 742,566 9,517 14,436 (351,526) 6,038,839 Book value in € THOUS December 31, December 31, 2022 2021 Land 68,627 70,105 Buildings and improvements 1,599,163 1,657,025 Machinery and equipment 2,131,989 2,113,564 Construction in progress 352,903 394,333 Property, plant and equipment 4,152,682 4,235,027 |
Hyperinflationary economies | |
Property, plant and equipment | |
Schedule of property, plant and equipment | Effect of hyperinflation in € THOUS Acquisition or Accumulated December 31, manufacturing costs depreciation 2022 Land 5,029 — 5,029 Buildings and improvements 51,767 19,930 31,837 Machinery and equipment 109,730 67,556 42,174 Construction in progress 3,179 18 3,161 Property, plant and equipment 169,705 87,504 82,201 Acquisition or Accumulated December 31, manufacturing costs depreciation 2021 Land 3,604 — 3,604 Buildings and improvements 34,989 13,045 21,944 Machinery and equipment 56,545 34,665 21,880 Construction in progress 2,062 6 2,056 Property, plant and equipment 97,200 47,716 49,484 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets and goodwill | |
Schedule of intangible assets and goodwill | Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Additions Reclassifications Disposals 2022 Amortizable intangible assets Non-compete agreements 339,796 19,692 150 — 584 (8,449) 351,773 Technology 737,465 42,800 — 143 — (94,279) 686,129 Licenses and distribution agreements 171,578 6,150 — 4,173 (280) (12,900) 168,721 Customer relationships 67,641 2,605 4,771 — — — 75,017 Construction in progress 315,965 9,673 120 113,353 (77,415) (2,124) 359,572 Internally developed intangibles 460,213 16,148 31,953 8,678 78,296 (88,942) 506,346 Other 390,336 9,427 3,709 18,894 4,188 (12,370) 414,184 2,482,994 106,495 40,703 145,241 5,373 (219,064) 2,561,742 Non-amortizable intangible assets Trade names 252,911 15,470 14,054 — — — 282,435 Management contracts 2,637 (16) — — — — 2,621 Emission certificates 661 — — 21,098 — — 21,759 256,209 15,454 14,054 21,098 — — 306,815 Intangible assets 2,739,203 121,949 54,757 166,339 5,373 (219,064) 2,868,557 Goodwill 14,944,458 765,366 695,189 — — — 16,405,013 Acquisition or manufacturing costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2021 translation group Additions Reclassifications Disposals 2021 Amortizable intangible assets Non-compete agreements 311,353 24,652 5,475 — — (1,684) 339,796 Technology 685,730 51,733 — — 2 — 737,465 Licenses and distribution agreements 188,463 8,038 (46) 4,741 154 (29,772) 171,578 Customer relationships 62,774 4,867 — — — — 67,641 Construction in progress 233,272 9,990 — 128,666 (55,446) (517) 315,965 Internally developed intangibles 394,314 19,639 — 15,427 52,220 (21,387) 460,213 Other 369,081 16,604 1,868 17,073 13,168 (27,458) 390,336 2,244,987 135,523 7,297 165,907 10,098 (80,818) 2,482,994 Non-amortizable intangible assets Trade names 233,492 19,419 — — — — 252,911 Management contracts 3,052 264 — — — (679) 2,637 Emission certificates — — — 661 — — 661 236,544 19,683 — 661 — (679) 256,209 Intangible assets 2,481,531 155,206 7,297 166,568 10,098 (81,497) 2,739,203 Goodwill 13,515,133 985,053 444,272 — — — 14,944,458 Amortization in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2022 translation group Additions loss Reclassifications Disposals 2022 Amortizable intangible assets Non-compete agreements 311,184 17,881 (260) 8,822 — 585 (8,375) 329,837 Technology 286,593 14,471 — 55,614 — — (94,279) 262,399 Licenses and distribution agreements 135,517 4,314 — 4,131 — (280) (10,258) 133,424 Customer relationships 18,667 199 — 4,620 — — — 23,486 Internally developed intangibles 242,584 8,968 (120) 61,850 57,937 3,077 (88,938) 285,358 Other 255,659 7,252 391 33,980 1,119 (2,653) (11,726) 284,022 1,250,204 53,085 11 169,017 59,056 729 (213,576) 1,318,526 Non-amortizable intangible assets Trade names 28,060 1,734 — — — — — 29,794 Management contracts 1,546 14 — — — — — 1,560 29,606 1,748 — — — — — 31,354 Intangible assets 1,279,810 54,833 11 169,017 59,056 729 (213,576) 1,349,880 Goodwill 582,881 30,951 — — — — — 613,832 Amortization in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 2021 translation group Additions loss Reclassifications Disposals 31, 2021 Amortizable intangible assets Non-compete agreements 280,835 22,622 (55) 9,456 — — (1,674) 311,184 Technology 216,019 15,422 — 53,160 1,023 969 — 286,593 Licenses and distribution agreements 128,749 5,027 — 4,134 — 76 (2,469) 135,517 Customer relationships 13,310 1,278 — 4,079 — — — 18,667 Internally developed intangibles 195,376 10,747 — 49,787 7,206 529 (21,061) 242,584 Other 239,566 10,453 — 31,709 1,130 (562) (26,637) 255,659 1,073,855 65,549 (55) 152,325 9,359 1,012 (51,841) 1,250,204 Non-amortizable intangible assets Trade names 25,957 2,103 — — — — — 28,060 Management contracts 710 99 — — 737 — — 1,546 26,667 2,202 — — 737 — — 29,606 Intangible assets 1,100,522 67,751 (55) 152,325 10,096 1,012 (51,841) 1,279,810 Goodwill 556,405 26,476 — — — — — 582,881 Book value in € THOUS December 31, 2022 December 31, 2021 Amortizable intangible assets Non-compete agreements 21,936 28,612 Technology 423,730 450,872 Licenses and distribution agreements 35,297 36,061 Customer relationships 51,531 48,974 Construction in progress 359,572 315,965 Internally developed intangibles 220,988 217,629 Other 130,162 134,677 1,243,216 1,232,790 Non-amortizable intangible assets Trade names 252,641 224,851 Management contracts 1,061 1,091 Emission certificates 21,759 661 275,461 226,603 Intangible assets 1,518,677 1,459,393 Goodwill 15,791,181 14,361,577 |
Schedule of the carrying amount of goodwill and indefinite-lived intangibles by geographical area | Allocation of the carrying amount to the groups of CGUs in € THOUS North America EMEA Asia-Pacific Latin America 2022 2021 2022 2021 2022 2021 2022 2021 Goodwill 13,607,465 12,223,884 1,414,332 1,376,542 764,009 756,335 5,375 4,816 Management contracts with indefinite useful life — — — — 1,061 1,091 — — Trade names with indefinite useful life 252,641 224,851 — — — — — — Emission certificates — — 21,759 661 — — — — |
Hyperinflationary economies | |
Intangible assets and goodwill | |
Schedule of intangible assets and goodwill | Effect of hyperinflation in € THOUS Accumulated Acquisition or amortization and manufacturing costs impairments December 31, 2022 Non-compete agreements 678 583 95 Licenses and distribution rights 473 330 143 Construction in progress 181 — 181 Internally developed intangibles 2,859 1,666 1,193 Other 7,583 4,789 2,794 Amortizable intangible assets 11,774 7,368 4,406 Management Contracts 2,228 355 1,873 Non-amortizable intangible assets 2,228 355 1,873 Total Intangible assets 14,002 7,723 6,279 Goodwill 60,765 33,810 26,955 Accumulated Acquisition or amortization and manufacturing costs impairments December 31, 2021 Internally developed intangibles 2,357 1,465 892 Other 4,154 1,720 2,434 Amortizable intangible assets 6,511 3,185 3,326 Management Contracts 814 355 459 Non-amortizable intangible assets 814 355 459 Total Intangible assets 7,325 3,540 3,785 Goodwill 33,574 33,540 34 |
Current provisions and other _2
Current provisions and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Current provisions and other current liabilities | |
Schedule of reconciliation of the current provisions | Development of current provisions in € THOUS Foreign Changes in January 1, currency consolidation 2022 translation group Utilized Reversed Additions Reclassifications December 31, 2022 Personnel expenses 164,629 7,070 42 (80,795) (8,858) 38,950 13,963 135,001 Self-insurance programs 119,244 7,633 — (82,503) (12,820) 89,985 (14,743) 106,796 Risk of lawsuit 23,573 (1,769) — (625) (702) 62,188 — 82,665 Other current provisions 38,077 1,198 — (7,449) (3,504) 18,012 — 46,334 Current provisions 345,523 14,132 42 (171,372) (25,884) 209,135 (780) 370,796 |
Schedule of other current liabilities | Other current liabilities in € THOUS 2022 2021 Receivable credit balances 720,585 645,650 Personnel liabilities 707,398 746,743 Put option liabilities 667,371 678,705 Invoices outstanding 262,568 201,251 VAT and other (non-income) tax liabilities 123,935 127,295 Contract liabilities 63,273 428,028 Interest liabilities 58,266 68,558 Deferred Income 42,448 90,003 Legal matters, advisory and audit fees 39,093 36,341 Bonuses, commissions 24,010 22,869 Derivatives 7,109 25,847 Variable payments outstanding for acquisitions 4,794 9,721 Other liabilities 263,498 250,341 Other current liabilities 2,984,348 3,331,352 |
Short-term debt (Tables)
Short-term debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Short-term debt | |
Schedule of short-term debt | Short-term debt in € THOUS 2022 2021 Commercial paper program 495,424 715,153 Borrowings under lines of credit 169,511 463,091 Other 78 109 Short-term debt from unrelated parties 665,013 1,178,353 Short-term debt from related parties (see note 5 c) 4,000 77,500 Short-term debt 669,013 1,255,853 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term debts | |
Schedule of long-term debt | Long-term debt in € THOUS 2022 2021 Schuldschein loans 224,612 — Bonds 7,389,365 7,071,259 Accounts Receivable Facility 93,725 — Other 157,094 243,656 Long-term debt 7,864,796 7,314,915 Less current portion (694,062) (667,966) Long-term debt, less current portion 7,170,734 6,646,949 |
Schedule of bonds | Bonds in THOUS Face Book value in € Issuer/Transaction amount Maturity Coupon 2022 2021 FMC US Finance II, Inc. 2012 $ 700,000 January 31, 2022 5.875 % — 618,008 Fresenius Medical Care AG & Co. KGaA, 2019 € 650,000 November 29, 2023 0.250 % 649,283 648,501 FMC US Finance II, Inc. 2014 $ 400,000 October 15, 2024 4.750 % 374,354 352,180 Fresenius Medical Care AG & Co. KGaA, 2018 € 500,000 July 11, 2025 1.500 % 498,245 497,543 Fresenius Medical Care AG & Co. KGaA, 2020 € 500,000 May 29, 2026 1.000 % 497,175 496,348 Fresenius Medical Care AG & Co. KGaA, 2019 € 600,000 November 30, 2026 0.625 % 596,158 595,177 FMC US Finance III, Inc. 2021 $ 850,000 December 1, 2026 1.875 % 790,926 743,966 Fresenius Medical Care AG & Co. KGaA, 2022 € 750,000 September 20, 2027 3.875 % 744,497 — FMC US Finance III, Inc. 2019 $ 500,000 June 15, 2029 3.750 % 462,005 434,094 Fresenius Medical Care AG & Co. KGaA, 2019 € 500,000 November 29, 2029 1.250 % 497,781 497,459 Fresenius Medical Care AG & Co. KGaA, 2020 € 750,000 May 29, 2030 1.500 % 746,332 745,838 FMC US Finance III, Inc. 2020 $ 1,000,000 February 16, 2031 2.375 % 930,443 875,398 FMC US Finance III, Inc. 2021 $ 650,000 December 1, 2031 3.000 % 602,166 566,747 7,389,365 7,071,259 |
Schedule of accounts receivable facility | Accounts Receivable Facility - Maximum amount available and balance outstanding in THOUS Maximum amount available (1) Balance outstanding (2) 2022 2022 Accounts Receivable Facility $ 900,000 € 843,804 $ 100,000 € 93,756 Maximum amount available (1) Balance outstanding (2) 2021 2021 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. |
Non-current provisions and ot_2
Non-current provisions and other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non-current provisions and other non-current liabilities | |
Schedule of development of non-current provisions | Development of non-current provisions in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Utilized Reversed Additions Reclassifications 2022 Self-insurance programs 120,408 7,262 — — — 149 14,743 142,562 Personnel expenses 29,280 1,253 70 (4,715) (2,524) 16,201 (9,196) 30,369 Asset retirement obligations 13,777 (582) — (364) (1,197) 956 202 12,792 Interest payable related to income taxes 8,681 46 — — (5,040) 23 — 3,710 Other non-current provisions 11,146 1,016 575 (1,304) (721) 294 (4,969) 6,037 Non-current provisions 183,292 8,995 645 (6,383) (9,482) 17,623 780 195,470 For further information regarding self-insurance programs, see note 2 d). |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefit plans | |
Schedule of defined benefit pension plans | Benefit obligation for defined benefit plans in € THOUS 2022 2021 Partially funded obligations U.S. plan 331,158 417,889 French plan 5,926 6,459 Unfunded obligations German plan 394,432 649,270 French plans 10,700 10,928 Total benefit obligations 742,216 1,084,546 Net pension liability in € THOUS 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year 1,084,546 996,237 Foreign currency translation (gains) losses 27,307 32,169 Current service cost 42,367 37,409 Past service cost (512) 988 Interest cost 22,466 20,298 Transfer of plan participants 219 (247) Actuarial (gains) losses arising from changes in financial assumptions (405,106) 26,504 Actuarial (gains) losses arising from changes in demographic assumptions 756 1,540 Actuarial (gains) losses arising from experience adjustments 3,298 (3,150) Remeasurements (401,052) 24,894 Benefits paid (33,125) (26,828) Settlements — (374) Benefit obligation at end of year 742,216 1,084,546 Change in plan assets: Fair value of plan assets at beginning of year 335,170 311,073 Foreign currency translation gains (losses) 21,974 25,869 Interest income from plan assets 10,539 9,504 Actuarial gains (losses) arising from experience adjustments (82,457) 9,113 Actual return on plan assets (71,918) 18,617 Employer contributions 1,127 1,005 Benefits paid (26,892) (21,394) Fair value of plan assets at end of year 259,461 335,170 Net funded position at end of year 482,755 749,376 Benefit plans offered by other subsidiaries 45,467 45,270 Net pension liability at end of year 528,222 794,646 Pension plan assets and liabilities in € THOUS 2022 2021 Pension plan liabilities U.S. plan 71,790 82,823 German plan 394,432 649,270 French plans 16,533 17,283 Total 482,755 749,376 Thereof current (1) 9,193 8,085 Thereof non-current (2) 473,562 741,291 Benefit plans offered by other subsidiaries Pension assets (3) — (385) Current pension liabilities (1) 4,810 4,324 Non-current pension liabilities (2) 40,657 41,331 Total other pension liabilities, net 45,467 45,270 (1) Recorded in the line item “Current provisions and other current liabilities” in the consolidated balance sheets. (2) Recorded in non-current liabilities as “Pension liabilities” in the consolidated balance sheets. (3) Recorded as “Other non-current assets” in the consolidated balance sheets. |
Schedule of weighted-average assumptions utilized in determining benefit obligations | Weighted average assumptions in % 2022 2021 Discount rate 4.86 2.02 Rate of compensation increase 3.22 3.17 Rate of pension increase 2.00 1.75 |
Schedule of sensitivity analysis | Sensitivity analysis in € THOUS 0.5% increase 0.5% decrease Discount rate (51,498) 58,360 Rate of compensation increase 8,447 (8,289) Rate of pension increase 24,819 (22,605) An increase of the mortality rate of 10% would reduce the pension liability by €17,215, while a decrease of 10% would increase the pension liability by €19,187 as of December 31, 2022. |
Schedule of components of net periodic benefit cost | Components of net periodic benefit cost in € THOUS 2022 2021 2020 Service cost 42,367 37,409 40,213 Net interest cost 11,927 10,794 10,452 Prior service cost (512) 988 (244) (Gains) losses from settlements — (374) (331) Net periodic benefit costs 53,782 48,817 50,090 |
Schedule of weighted-average assumptions utilized in determining net periodic benefit cost | Weighted average assumptions in % 2022 2021 2020 Discount rate 2.02 2.02 2.35 Rate of compensation increase 3.17 3.17 3.18 Rate of pension increase 1.75 1.46 1.70 |
Schedule of expected benefit payments | Defined benefit pension plans: cash outflows in € THOUS 2022 2021 1 year 30,996 28,191 1 – 3 years 67,545 60,421 3 – 5 years 75,674 67,795 5 – 10 years 216,216 196,501 Total 390,431 352,908 |
Schedule of pension plan assets | Fair values of plan assets in € THOUS Quoted prices Quoted prices in active in active markets for Significant Significant markets for Significant Significant identical observable unobservable identical observable unobservable Asset category Total assets inputs inputs Total assets inputs inputs (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) 2022 2021 Equity investments Index funds (1) 73,252 8,588 64,664 — 94,384 9,850 84,534 — Fixed income investments Government securities (2) 3,996 3,789 207 — 9,221 8,964 257 — Corporate bonds (3) 169,634 — 169,634 — 211,992 — 211,992 — Other bonds (4) 9,995 — 3,897 6,098 15,529 — 7,313 8,216 U.S. treasury money market funds (5) 2,491 2,491 — — 3,940 3,940 — — Other types of investments Cash, money market and mutual funds (6) 93 93 — — 104 104 — — Total 259,461 14,961 238,402 6,098 335,170 22,858 304,096 8,216 (1) This category comprises low-cost equity index funds not actively managed that track the S&P 500, S&P 400, Russell 2000, MSCI Emerging Markets Index and the Morgan Stanley International EAFE Index. (2) This Category comprises fixed income investments by the U.S. government and government sponsored entities. (3) This Category primarily represents investment grade bonds of U.S. issuers from diverse industries. (4) This Category comprises private placement bonds as well as collateralized mortgage obligations. (5) This Category represents funds that invest in U.S. treasury obligations directly or in U.S. treasury backed obligations. (6) This Category represents cash, money market funds as well as mutual funds comprised of high grade corporate bonds. |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' equity | |
Schedule of number of shares acquired in the context of the share buy-back programs as well as the repurchased treasury stock | Treasury Stock Total number of shares purchased and retired as part of publicly Average price per announced plans or Total value of Period share programs (1) shares in € in € THOUS December 31, 2019 60.66 6,107,629 370,502 Purchase of Treasury Stock January 2020 84.37 124,398 10,495 February 2020 (2) 249.10 25,319 6,307 March 2020 63.05 4,842,943 305,362 April 2020 63.07 694,813 43,824 Repurchased Treasury Stock 64.35 5,687,473 365,988 Retirement of repurchased Treasury Stock December 2020 62.44 11,795,102 736,490 TOTAL — — (1) All shares purchased between May 12, 2016 and April 1, 2020 were purchased pursuant to the share purchase program authorized by the AGM resolution of May 12, 2016. The Company did not purchase any shares other than pursuant to such program. (2) The purchase price of the shares of the program beginning on June 17, 2019 was based on the volume weighted average price of the Company’s shares for the period and changes in the volume weighted average price resulted in retroactive adjustments to the purchase price, even if no shares were purchased. The February adjustment, in combination with a lower number of shares purchased, resulted in a particularly high average price per share for the month. |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Capital management | |
Schedule of total equity and debt | Total equity, debt and total assets in € THOUS 2022 2021 Total equity including noncontrolling interests 15,449,179 13,979,037 Debt and lease liabilities 13,212,572 13,320,149 Total assets 35,754,114 34,366,558 Debt and lease liabilities in % of total assets 37.0 38.8 Total equity in % of total assets (equity ratio) 43.2 40.7 |
Schedule of Company's rating | Rating (1) Standard & Poor’s Moody’s Fitch Corporate credit rating BBB Baa3 BBB- Outlook stable stable negative (1) A rating is not a recommendation to buy, sell or hold securities of the Company, and may be subject to suspension, change or withdrawal at any time by the assigning rating agency. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share | |
Schedule of reconciliation of basic and diluted earnings per share | Reconciliation of basic and diluted earnings per share in € THOUS, except share and per share data 2022 2021 2020 Numerator: Net income attributable to shareholders of FMC AG & Co. KGaA 673,405 969,308 1,164,377 Denominators: Weighted average number of shares outstanding 293,246,430 292,944,732 294,055,525 Potentially dilutive shares — 120,442 223,429 Basic earnings per share 2.30 3.31 3.96 Diluted earnings per share 2.30 3.31 3.96 |
Share-based plans (Tables)
Share-based plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based plans | |
Summary of overview of plans | LTIP 2022+ MB LTIP 2020 LTIP 2019 MB LTIP 2019 NxStage LTIP LTIP 2016 Eligible persons Other Plan participants Members of the Management Board and certain members of the Executive Committee Other Plan participants Members of the Management Board Other Plan participants Members of the Management Board and other plan participants Years in which an allocation occurred 2022 2020-2022 2019-2021 2019 2019 2016–2018 Months in which an allocation occurred July, December November (2020), July, December July, December February July, December |
Summary of information on holdings under share-based plans | At December 31, 2022 and 2021, the members of the Management Board and plan participants other than the members of the Management Board held the following Performance Shares under the share-based plans: Outstanding Performance Shares 2022 2021 Members of the Members of the Management Other plan Management Other plan Board participants Total Board participants Total LTIP 2022+ — 1,676,091 1,676,091 — — — MB LTIP 2020 409,511 163,031 572,542 352,053 — 352,053 LTIP 2019 — 1,525,120 1,525,120 8,869 2,399,649 2,408,518 MB LTIP 2019 24,326 19,372 43,698 102,435 12,564 114,999 NxStage LTIP — — — — 32,054 32,054 LTIP 2016 — — — 56,624 366,059 422,683 |
Schedule of reconciliations for stock options outstanding | Transactions Weighted average exercise Options price Stock options for shares in thousands in € Balance at December 31, 2020 3,201 71.50 Granted — — Exercised (1) 128 49.83 Expired 60 70.60 Balance at December 31, 2021 3,013 72.44 Granted — — Exercised (2) 409 49.93 Expired 133 56.55 Balance at December 31, 2022 2,471 77.02 (1) The average share price at the date of exercise of the options was €65.92 . (2) The average share price at the date of exercise of the options was €54.00 . |
Summary of fully vested options outstanding and exercisable by price range | Outstanding and exercisable stock options 2022 Outstanding Exercisable Weighted Weighted Weighted Range of average average average exercise Number remaining exercise Number exercise prices of contractual price of price in € options life in € options in € 45.01 — — — 50.01 — — — 55.01 — — — 60.01 — — — 65.01 — — — 70.01 — — — 75.01 — 2,471,116 0.58 77.02 2,471,116 77.02 2,471,116 0.58 77.02 2,471,116 77.02 Outstanding and exercisable stock options 2021 Outstanding Exercisable Weighted Weighted Weighted Range of average average average exercise Number remaining exercise Number exercise prices of contractual price of price in € options life in € options in € 45.01 — 488,745 0.57 49.93 488,745 49.93 50.01 — — — — — — 55.01 — 31,080 0.92 58.63 31,080 58.63 60.01 — — — — — — 65.01 — — — — — — 70.01 — — — — — — 75.01 — 2,493,484 1.58 77.02 2,493,484 77.02 3,013,309 1.41 72.44 3,013,309 72.44 |
Summary of compensation expense recognized for Performance Shares | Compensation expense related to cash-settled plans in € THOUS 2022 2021 2020 LTIP 2022+ 3,765 — — MB LTIP 2020 (629) 2,112 2,115 LTIP 2019 (4,416) 21,761 13,689 MB LTIP 2019 (358) 299 820 NxStage LTIP (758) 296 513 LTIP 2016 (3,475) 3,826 21,864 LTIP 2011 — — 1,894 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of effects from lease agreements on the consolidated statements of income | Leasing in the consolidated statements of income in € THOUS 2022 2021 2020 Depreciation on right-of-use assets 746,471 690,476 703,999 Impairments on right-of-use assets 27,646 18,696 3,496 Expenses relating to short-term leases 52,420 44,923 49,532 Expenses relating to leases of low-value assets 17,421 23,177 27,359 Expenses relating to variable lease payments 13,803 12,158 12,442 Income from subleasing right-of-use assets 3,340 3,119 4,165 Interest expense on lease liabilities 151,317 143,160 159,148 |
Schedule of acquisition costs and the accumulated depreciation of right-of-use assets | Acquisition costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2022 translation group Additions Reclassifications Disposals 2022 Right-of-use assets: Land 38,094 283 — 1,922 — (1,419) 38,880 Right-of-use assets: Buildings and improvements 5,952,476 261,708 (15,928) 492,086 (4,122) (75,814) 6,610,406 Right-of-use assets: Machinery and equipment 389,894 21,241 — 37,508 (43,747) (73,996) 330,900 Right-of-use assets 6,380,464 283,232 (15,928) 531,516 (47,869) (151,229) 6,980,186 Acquisition costs in € THOUS Foreign Changes in January 1, currency consolidation December 31, 2021 translation group Additions Reclassifications Disposals 2021 Right-of-use assets: Land 34,510 782 20 4,917 — (2,135) 38,094 Right-of-use assets: Buildings and improvements 5,017,785 346,627 40,808 614,918 1,266 (68,928) 5,952,476 Right-of-use assets: Machinery and equipment 390,902 27,947 (587) 31,561 (48,975) (10,954) 389,894 Right-of-use assets 5,443,197 375,356 40,241 651,396 (47,709) (82,017) 6,380,464 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2022 translation group Additions loss Reclassifications Disposals 2022 Right-of-use assets: Land 11,344 5 — 4,374 217 — (1,199) 14,741 Right-of-use assets: Buildings and improvements 1,804,045 71,885 (6,300) 684,277 27,249 251 (47,771) 2,533,636 Right-of-use assets: Machinery and equipment 248,635 13,076 — 57,820 180 (3,465) (71,563) 244,683 Right-of-use assets 2,064,024 84,966 (6,300) 746,471 27,646 (3,214) (120,533) 2,793,060 Depreciation in € THOUS Foreign Changes in January 1, currency consolidation Impairment December 31, 2021 translation group Additions loss Reclassifications Disposals 2021 Right-of-use assets: Land 8,106 222 6 4,149 3 — (1,142) 11,344 Right-of-use assets: Buildings and improvements 1,120,019 93,757 (2,170) 613,994 17,621 477 (39,653) 1,804,045 Right-of-use assets: Machinery and equipment 185,184 15,456 (214) 72,333 1,072 (15,720) (9,476) 248,635 Right-of-use assets 1,313,309 109,435 (2,378) 690,476 18,696 (15,243) (50,271) 2,064,024 Book value in € THOUS December 31, December 31, 2022 2021 Right-of-use assets: Land 24,139 26,750 Right-of-use assets: Buildings and improvements 4,076,770 4,148,431 Right-of-use assets: Machinery and equipment 86,217 141,259 Right-of-use assets 4,187,126 4,316,440 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments | |
Schedule of carrying amount and fair value of financial instruments | Carrying amount and fair value of financial instruments in € THOUS December 31, 2022 Carrying amount Fair value Amortized Not cost FVPL FVOCI classified Total Level 1 Level 2 Level 3 Cash and cash equivalents 1,118,503 155,284 — — 1,273,787 155,284 — — Trade accounts and other receivables from unrelated parties 3,489,680 — — 84,590 3,574,270 — — — Accounts receivable from related parties 140,072 — — — 140,072 — — — Derivatives - cash flow hedging instruments — — — 9,151 9,151 — 9,151 — Derivatives - not designated as hedging instruments — 10,627 — — 10,627 — 10,627 — Equity investments — 80,201 69,792 — 149,993 36,227 70,973 42,793 Debt securities — 106,215 338,589 — 444,804 444,804 — — Other financial assets (1) 121,095 — — 128,015 249,110 — — — Other current and non-current assets 121,095 197,043 408,381 137,166 863,685 — — — Financial assets 4,869,350 352,327 408,381 221,756 5,851,814 — — — Accounts payable to unrelated parties 813,255 — — — 813,255 — — — Accounts payable to related parties 118,083 — — — 118,083 — — — Short-term debt 669,013 — — — 669,013 — — — Long-term debt 7,864,796 — — — 7,864,796 6,366,775 474,930 — Lease liabilities — — — 4,678,763 4,678,763 — — — Derivatives - cash flow hedging instruments — — — 568 568 — 568 — Derivatives - not designated as hedging instruments — 7,422 — — 7,422 — 7,422 — Variable payments outstanding for acquisitions — 37,846 — — 37,846 — — 37,846 Put option liabilities — — — 1,468,517 1,468,517 — — 1,468,517 Other financial liabilities (2) 1,107,827 — — — 1,107,827 — — — Other current and non-current liabilities 1,107,827 45,268 — 1,469,085 2,622,180 — — — Financial liabilities 10,572,974 45,268 — 6,147,848 16,766,090 — — — Carrying amount and fair value of financial instruments in € THOUS December 31, 2021 Carrying amount Fair value Amortized cost FVPL FVOCI Not 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 December 31, 2022 and 2021, other financial assets primarily include lease receivables, deposits, guarantees, securities, vendor and supplier rebates as well as notes receivable. (2) As of December 31, 2022 and 2021, other financial liabilities primarily include receivable credit balances and goods and services received. |
Schedule of equity investment at FVOCI | Equity investments measured at FVOCI in € THOUS 2022 2021 Non-listed equity investments 69,792 69,595 Equity investments FVOCI 69,792 69,595 |
Schedule of reconciliation of level 3 financial instruments | Reconciliation from beginning to ending balance of level 3 financial instruments in € THOUS 2022 2021 2020 Variable Variable Variable payments payments payments Equity outstanding for Put option Equity outstanding for Put option Equity outstanding for Put option investments acquisitions liabilities investments acquisitions liabilities investments acquisitions liabilities Beginning balance at January 1, 50,679 47,690 992,423 188,518 66,359 882,422 183,054 89,677 934,425 Transfer to level 1 — — — (158,551) — — — — — Increase 2,804 46 646,271 21,137 9,488 112,194 — 17,253 51,388 Decrease — (6,499) (7,026) — (22,499) (18,495) — (35,764) (99,877) Gain / loss recognized in profit or loss (1) (13,968) (3,904) — (12,975) (6,716) — 22,489 (1,996) — Gain / loss recognized in equity — — (180,431) — — (54,019) — — 73,993 Foreign currency translation and other changes 3,278 513 17,280 12,550 1,058 70,321 (17,025) (2,811) (77,507) Ending balance at December 31, 42,793 37,846 1,468,517 50,679 47,690 992,423 188,518 66,359 882,422 (1) Includes realized and unrealized gains / losses. |
Schedule of average hedging rate and the nominal amount of the foreign exchange forward contracts | The following table shows the average hedging rate and the nominal amount of the foreign exchange forward contracts for the currencies with highest hedging volume at December 31, 2022: Significant currency pairs in € THOUS Nominal Average amount hedging rate EUR/USD 799,235 1.0775 EUR/AUD 221,694 1.5700 EUR/CNY 186,980 7.0425 |
Schedule of derivative financial instruments valuation | Derivative financial instruments valuation in € THOUS 2022 2021 Assets Liabilities Assets Liabilities Current Foreign exchange contracts 9,151 (568) 571 (4,419) Non-current Foreign exchange contracts — — 8 (71) Derivatives in cash flow hedging relationships 9,151 (568) 579 (4,490) Current Foreign exchange contracts 10,627 (6,541) 2,846 (21,428) Non-current Foreign exchange contracts — (881) — — Derivatives not designated as hedging instruments 10,627 (7,422) 2,846 (21,428) |
Schedule of effect of derivatives in cash flow hedging relationships on the consolidated financial statements | The effect of derivatives in cash flow hedging relationships on the consolidated financial statements in € THOUS Fair value gain Fair value gain (loss) recognized in (loss) recognized in Amount Amount AOCI on hedging AOCI on hedging Location of reclassified reclassified instrument (hedge instrument (cost of reclassified from hedge from cost of reserve) hedging) amounts from AOCI reserve hedging For the year ended December 31, 2022 Foreign exchange contracts 12,036 (3,379) Interest income/expense 1,355 — thereof: Revenue 2,698 40 Costs of revenue (2,088) 2,157 Inventories (418) 12 Total 12,036 (3,379) 1,547 2,209 For the year ended December 31, 2021 Foreign exchange contracts (3,585) 126 Interest income/expense 1,206 — thereof: Revenue 275 773 Costs of revenue 72 (1,060) Inventories 1,013 (2) Total (3,585) 126 2,566 (289) |
Schedule of effect of derivatives not designated as hedging instruments on consolidated financial statements | The effect of derivatives not designated as hedging instruments on the consolidated financial statements in € THOUS Amount of (gain) loss recognized in income on derivatives Location of (gain) loss recognized in for the year ended, December 31 income on derivatives 2022 2021 Foreign exchange contracts Selling, general and administrative expenses 8,914 (49,214) Foreign exchange contracts Interest income/expense 12,997 1,477 Derivatives not designated as hedging instruments 21,911 (47,737) |
Schedule of non-discounted payments agreed by contract | Payments agreed by contracts in € THOUS Payments due by period of Less than 1 year 1 - 3 years 3 - 5 years Over 5 years 2022 Non-Derivatives Accounts payable to unrelated parties 813,255 426 — — Accounts payable to related parties 118,083 — — — Other current financial liabilities 1,107,401 — — — Short-term debt (1) 669,013 — — — Bonds 806,805 1,167,570 2,882,965 3,557,066 Accounts receivable facility (2) 4,190 96,351 — — Other long-term debt 44,783 87,082 47,705 202,568 Lease liabilities (1) 815,613 1,479,359 1,164,048 1,922,861 Variable payments outstanding for acquisitions 4,794 30,140 — 6,149 Put option liabilities 667,371 692,707 110,942 54,200 Letters of credit 11,750 — — — 5,063,058 3,553,635 4,205,660 5,742,844 Derivatives Derivative financial instruments - in cash flow hedging relationships (Inflow) (10,573) — — — Outflow 11,136 — — — 563 — — — Derivative financial instruments - not designated as hedging instrument (Inflow) (359,346) (36,590) — — Outflow 369,229 34,836 — — 9,883 (1,754) — — Total 5,073,504 3,551,881 4,205,660 5,742,844 2021 Non-Derivatives Accounts payable to unrelated parties 736,069 68 — — Accounts payable to related parties 121,457 — — — Other current financial liabilities 965,595 — — — Short-term debt (1) 1,255,853 — — — Bonds 759,946 1,249,033 2,553,673 3,563,460 Accounts receivable facility — — — — Other long-term debt 49,959 103,315 38,991 51,466 Lease liabilities (1) 796,927 1,463,953 1,127,660 2,076,056 Variable payments outstanding for acquisitions 9,721 2,936 22,526 15,322 Put option liabilities 678,705 219,554 151,462 67,744 Letters of credit 11,065 — — — 5,385,297 3,038,859 3,894,312 5,774,048 Derivatives Derivative financial instruments - in cash flow hedging relationships (Inflow) (141,935) (2,300) — — Outflow 146,810 2,409 — — 4,875 109 — — Derivative financial instruments - not designated as hedging instrument (Inflow) (611,024) — — — Outflow 638,609 — — — 27,585 — — — Total 5,417,757 3,038,968 3,894,312 5,774,048 (1) Includes amounts from related parties. (2) Future interest payments for financial liabilities with variable interest rates were calculated using the latest interest rates fixed prior to December 31, 2022. |
Other comprehensive income (l_2
Other comprehensive income (loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other comprehensive income (loss) | |
Schedule of changes in components of other comprehensive income (loss) | Other comprehensive income (loss) in € THOUS 2022 2021 2020 Pretax Tax effect Net Pretax Tax effect Net Pretax Tax effect Net Components that will not be reclassified to profit or loss: Equity method investees – share of OCI 22,705 — 22,705 (25,334) — (25,334) 58,166 — 58,166 FVOCI equity investments 2,883 (231) 2,652 37,660 (8,492) 29,168 19,439 (2,326) 17,113 Actuarial gain (loss) on defined benefit pension plans 318,595 (94,062) 224,533 (15,781) 4,407 (11,374) 4,176 (1,191) 2,985 Components that may be reclassified subsequently to profit or loss: Foreign currency translation adjustment 826,847 — 826,847 1,034,239 — 1,034,239 (1,359,397) — (1,359,397) FVOCI debt securities (44,996) 8,050 (36,946) (9,892) 1,482 (8,410) 29,096 (5,048) 24,048 Other comprehensive income (loss) relating to cash flow hedges: Changes in fair value of cash flow hedging reserve during the period 12,036 (3,045) 8,991 (3,585) 1,013 (2,572) 6,123 (1,839) 4,284 Cost of hedging (3,379) 887 (2,492) 126 (7) 119 (2,062) 608 (1,454) Reclassification adjustments 3,756 (1,044) 2,712 2,277 (599) 1,678 (1,282) 482 (800) Total other comprehensive income (loss) relating to cash flow hedges 12,413 (3,202) 9,211 (1,182) 407 (775) 2,779 (749) 2,030 Other comprehensive income (loss) 1,138,447 (89,445) 1,049,002 1,019,710 (2,196) 1,017,514 (1,245,741) (9,314) (1,255,055) |
Supplementary cash flow infor_2
Supplementary cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplementary cash flow information | |
Schedule of additional information provided with respect to net cash provided by (used in) investing activities | Details for net cash provided by (used in) investing activities in € THOUS 2022 2021 2020 Details for acquisitions Assets acquired (830,460) (547,146) (337,300) Liabilities assumed 16,407 70,143 41,761 Noncontrolling interests (1) 188,469 120,197 37,140 Non-cash consideration 578,009 12,482 33,804 Cash paid (47,575) (344,324) (224,595) Less cash acquired 58,101 19,518 9,759 Net cash paid for acquisitions 10,526 (324,806) (214,836) Cash paid for investments (23,311) (77,010) (10,899) Cash paid for intangible assets (46,348) (32,355) (33,250) Total cash paid for acquisitions and investments, net of cash acquired, and purchases of intangible assets (59,133) (434,171) (258,985) Details for divestitures Cash received from sale of subsidiaries or other businesses, less cash disposed 60,161 52,444 14,608 Proceeds from divestitures 60,161 52,444 14,608 (1) Includes noncontrolling interests subject to put provisions in the amount of € 26,801 for the year ended December 31, 2020, which was previously disclosed separately. |
Schedule of reconciliation of debt to net cash provided by (used in) financing activities | The following table shows a reconciliation of debt to net cash provided by (used in) financing activities for 2022: Reconciliation of debt to net cash provided by (used in) financing activities in € THOUS Non-cash changes Amortization Acquisitions Foreign of debt January 1, Cash (net of currency issuance costs December 31, 2022 Flow divestitures) translation and discounts Other 2022 Short-term debt from unrelated parties 1,178,353 (511,657) (52) (453) — (1,178) 665,013 Short-term debt from related parties 77,500 (73,500) — — — — 4,000 Long-term debt (excluding Accounts Receivable Facility) (1) 7,314,915 246,277 527 200,846 10,055 (1,549) 7,771,071 Accounts Receivable Facility — 94,962 — (1,206) (31) — 93,725 Lease liabilities from unrelated parties 4,630,100 (752,884) (10,763) 218,744 — 439,863 (2) 4,525,060 Lease liabilities from related parties 119,281 (22,268) — 25 — 56,665 (2) 153,703 (1) Cash Flow excluding repayments of variable payments outstanding for acquisitions in the amount of €3,975 . (2) Includes newly concluded leases, lease modifications and reassessments of leases with third parties and related parties. Furthermore, interest expense in the amount of €151,317 , net of interest paid (included in Net cash provided by (used in) operating activities), are included. The following table shows a reconciliation of debt to net cash provided by (used in) financing activities for 2021: Reconciliation of debt to net cash provided by (used in) financing activities in € THOUS Non-cash changes Amortization Acquisitions Foreign of debt January 1, Cash (net of currency issuance costs December 31, 2021 Flow divestitures) translation and discounts Other 2021 Short-term debt from unrelated parties 62,950 1,115,777 164 (531) — (7) 1,178,353 Short-term debt from related parties 16,320 61,180 — — — — 77,500 Long-term debt (excluding Accounts Receivable Facility) (1) 7,808,460 (812,002) 11,421 294,437 9,423 3,176 7,314,915 Accounts Receivable Facility — — — — — — — Lease liabilities from unrelated parties 4,352,267 (675,639) 42,600 297,110 — 613,762 (2) 4,630,100 Lease liabilities from related parties 140,020 (21,315) — 90 — 486 (2) 119,281 (1) Cash Flow excluding repayments of variable payments outstanding for acquisitions in the amount of €19,314 and debt issuance cost relating to undrawn credit facilities in the amount of €7,590 . (2) Includes newly concluded leases, lease modifications and reassessments of leases with third parties and related parties. Furthermore, interest expense in the amount of €143,160 , net of interest paid (included in Net cash provided by (used in) operating activities), are included. |
Segment and corporate informa_2
Segment and corporate information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment and corporate information | |
Schedule of segment and corporate information | Segment and corporate information in € THOUS North Asia- Latin America EMEA Pacific America Total Segment Segment Segment Segment Segment Corporate (1) Total 2022 Revenue from health care services 11,948,330 1,456,175 980,792 552,679 14,937,976 28,604 14,966,580 Revenue from health care products 1,131,263 1,368,612 1,115,914 240,664 3,856,453 19,868 3,876,321 Revenue from contracts with customers 13,079,593 2,824,787 2,096,706 793,343 18,794,429 48,472 18,842,901 Other revenue external customers 470,335 26,422 54,843 3,516 555,116 — 555,116 Revenue external customers 13,549,928 2,851,209 2,151,549 796,859 19,349,545 48,472 19,398,017 Inter-segment revenue 19,233 — 117 1,128 20,478 (20,478) — Revenue 13,569,161 2,851,209 2,151,666 797,987 19,370,023 27,994 19,398,017 Operating income 1,475,558 256,108 339,672 23,754 2,095,092 (583,337) 1,511,755 Interest (292,476) Income before income taxes 1,219,279 Depreciation and amortization (1,086,609) (194,554) (108,360) (43,709) (1,433,232) (285,570) (1,718,802) Impairment loss (84,874) (3,658) (240) (3) (88,775) (30,786) (119,561) Income (loss) from equity method investees 73,699 (9,377) 969 1,268 66,559 — 66,559 Total assets 23,716,516 3,876,332 2,989,350 853,985 31,436,183 4,317,931 35,754,114 thereof investments in equity method investees 437,986 203,759 104,830 27,149 773,724 — 773,724 Additions of property, plant and equipment, intangible assets and right of use assets 696,504 165,196 85,719 44,691 992,110 326,311 1,318,421 2021 Revenue from health care services 10,622,787 1,379,151 941,627 499,215 13,442,780 36,658 13,479,438 Revenue from health care products 1,051,878 1,336,921 1,017,262 201,054 3,607,115 16,836 3,623,951 Revenue from contracts with customers 11,674,665 2,716,072 1,958,889 700,269 17,049,895 53,494 17,103,389 Other revenue external customers 413,046 48,694 50,901 2,655 515,296 — 515,296 Revenue external customers 12,087,711 2,764,766 2,009,790 702,924 17,565,191 53,494 17,618,685 Inter- segment revenue 31,869 — 620 202 32,691 (32,691) — Revenue 12,119,580 2,764,766 2,010,410 703,126 17,597,882 20,803 17,618,685 Operating income 1,643,918 309,327 349,599 11,959 2,314,803 (462,513) 1,852,290 Interest (280,429) Income before income taxes 1,571,861 Depreciation and amortization (983,568) (195,032) (105,934) (38,890) (1,323,424) (261,943) (1,585,367) Impairment loss (19,814) (12,146) (3,684) (493) (36,137) (2,172) (38,309) Income (loss) from equity method investees 90,123 (1,074) 2,163 963 92,175 — 92,175 Total assets 22,667,874 3,943,175 3,042,941 787,207 30,441,197 3,925,361 34,366,558 thereof investments in equity method investees 459,231 197,717 104,077 25,880 786,905 — 786,905 Additions of property, plant and equipment, intangible assets and right of use assets 872,647 206,248 130,632 50,374 1,259,901 296,963 1,556,864 2020 Revenue from health care services 11,060,231 1,364,976 876,036 484,930 13,786,173 24,416 13,810,589 Revenue from health care products 1,094,828 1,363,820 969,674 196,445 3,624,767 15,228 3,639,995 Revenue from contracts with customers 12,155,059 2,728,796 1,845,710 681,375 17,410,940 39,644 17,450,584 Other revenue external customers 323,361 33,792 48,468 2,858 408,479 — 408,479 Revenue external customers 12,478,420 2,762,588 1,894,178 684,233 17,819,419 39,644 17,859,063 Inter- segment revenue 28,753 5,933 239 304 35,229 (35,229) — Revenue 12,507,173 2,768,521 1,894,417 684,537 17,854,648 4,415 17,859,063 Operating income 2,119,737 411,674 343,632 (156,555) 2,718,488 (414,079) 2,304,409 Interest (368,019) Income before income taxes 1,936,390 Depreciation and amortization (997,509) (191,204) (110,400) (35,731) (1,334,844) (252,025) (1,586,869) Impairment loss (1,231) (2,266) (1,065) (194,468) (199,030) — (199,030) Income (loss) from equity method investees 87,493 4,237 2,950 18 94,698 (180) 94,518 Total assets 21,358,156 3,879,386 2,830,867 724,124 28,792,533 2,896,503 31,689,036 thereof investment in equity method investees 413,401 215,650 105,661 26,401 761,113 — 761,113 Additions of property, plant and equipment, intangible assets and right of use assets 1,162,847 249,401 143,939 50,682 1,606,869 395,654 2,002,523 (1) Includes inter - segment consolidation adjustments. |
Schedule of geographic operations | Geographic presentation in € THOUS North Rest of Germany America the world Total 2022 Revenue external customers 487,281 13,568,655 5,342,081 19,398,017 Long-lived assets 1,517,741 20,889,568 4,132,487 26,539,796 2021 Revenue external customers 511,390 12,087,711 5,019,584 17,618,685 Long-lived assets 1,478,579 19,618,557 4,191,436 25,288,572 2020 Revenue external customers 493,436 12,478,420 4,887,207 17,859,063 Long-lived assets 1,202,528 17,878,746 4,325,335 23,406,609 |
Principal accountant fees and_2
Principal accountant fees and services (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Principal accountant fees and services | |
Schedule of fees for auditor and its affiliates | Fees in € THOUS Consolidated thereof Consolidated thereof Consolidated thereof group Germany group Germany group Germany 2022 2021 2020 Audit fees 14,354 2,961 10,524 2,041 9,386 1,608 Audit-related fees 686 301 1,038 614 510 394 Tax fees 1,204 — 633 — 951 54 Other fees 2,940 2,940 1,817 1,813 5,236 5,236 |
The Company, basis of present_4
The Company, basis of presentation and significant accounting policies (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 EUR (€) item | Dec. 31, 2021 EUR (€) item | Dec. 31, 2022 USD ($) | |
The Company, basis of presentation and significant accounting policies | ||||
Non-controlling interests | € 1,459,726 | € 1,459,726 | € 1,280,254 | |
Number of companies consolidated | item | 2,346 | 2,343 | ||
Number of companies accounted for by the equity method | item | 79 | 50 | ||
Number of first-time consolidations companies | item | 68 | 90 | ||
Number of companies deconsolidated | item | 27 | 52 | ||
NewCo | ||||
The Company, basis of presentation and significant accounting policies | ||||
Non-controlling interests | € 176,269 | € 176,269 | $ 188,008 | |
NewCo | Cricket Health, Inc | ||||
The Company, basis of presentation and significant accounting policies | ||||
Proportion of ownership interests held by non-controlling interests | 17% | |||
NewCo | InterWell Health LLC | ||||
The Company, basis of presentation and significant accounting policies | ||||
Proportion of ownership interests held by non-controlling interests | 8% | |||
Argentina | ||||
The Company, basis of presentation and significant accounting policies | ||||
Index at December 31, 2022 | 1,134.6 | 1,134.6 | 1,134.6 | |
Calendar year increase | 95% | |||
Loss on net monetary position in EUR | € 39,056 | |||
Lebanon | ||||
The Company, basis of presentation and significant accounting policies | ||||
Index at December 31, 2022 | 2,045.46 | 2,045.46 | 2,045.46 | |
Calendar year increase | 122% | |||
Loss on net monetary position in EUR | € 121 | |||
Turkiye | ||||
The Company, basis of presentation and significant accounting policies | ||||
Impact of initial application of hyperinflationary accounting | € 22,919 | |||
Index at December 31, 2022 | 1,128.45 | 1,128.45 | 1,128.45 | |
Calendar year increase | 64% | |||
Loss on net monetary position in EUR | € 7,384 | |||
Russia and Ukraine | Maximum | ||||
The Company, basis of presentation and significant accounting policies | ||||
Percentage of entity's assets | 1% | 1% | 1% |
The Company, basis of present_5
The Company, basis of presentation and significant accounting policies - The Company's interest in subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fresenius Medical Care Argentina S.A. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC Australia Pty. Ltd. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC Colombia S.A. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC Deutschland GmbH | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC France S.A.S. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC GmbH | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC Holdings, Inc. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC Italia S.p.A. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC Korea Ltd. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC Ltda. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC Shanghai Ltd. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
FMC (U.K.) Ltd. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
National Medical Care of Spain, S.A.U. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
NephroCare Portugal, S.A. | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
JSC Fresenius SP | ||
Subsidiaries | ||
Ownership percentage | 100% | 100% |
The Company, basis of present_6
The Company, basis of presentation and significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings and improvements | Minimum | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 4 years |
Buildings and improvements | Maximum | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 50 years |
Buildings and improvements | Weighted average | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 15 years |
Machinery and equipment | Minimum | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 3 years |
Machinery and equipment | Maximum | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 19 years |
Machinery and equipment | Weighted average | |
Useful Lives of Property, Plant, and Equipment | |
Useful life | 11 years |
The Company, basis of present_7
The Company, basis of presentation and significant accounting policies - Intangible assets and goodwill (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Amortizable intangible assets | |
Detailed information on intangible assets | |
Useful lives | 9 years |
Non-compete agreements | |
Detailed information on intangible assets | |
Useful lives | 7 years |
Technology | |
Detailed information on intangible assets | |
Useful lives | 12 years |
Internally developed intangibles | |
Detailed information on intangible assets | |
Useful lives | 6 years |
Licenses and distribution agreements | |
Detailed information on intangible assets | |
Useful lives | 12 years |
Customer relationships | |
Detailed information on intangible assets | |
Useful lives | 16 years |
Other | |
Detailed information on intangible assets | |
Useful lives | 7 years |
The Company, basis of present_8
The Company, basis of presentation and significant accounting policies - Foreign currency translation (Details) - $ / € | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign Currency Translation | |||
Spot exchange rate | 0.93756 | 0.88292 | |
Average exchange rate | 0.94962 | 0.84549 | 0.87550 |
The Company, basis of present_9
The Company, basis of presentation and significant accounting policies - Capitalized interest (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Interest | |||
Interest cost capitalized | € 2,240 | € 4,167 | € 4,963 |
Capitalisation rate of borrowing costs eligible for capitalisation | 4.52% | 2.89% | 3.67% |
The Company, basis of presen_10
The Company, basis of presentation and significant accounting policies - Concentration of risk (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Medicare and Medicaid | |||
Concentration of Risk | |||
Percentage of revenues which were earned and subject to regulations | 26% | 27% | 32% |
Significant judgments and sou_3
Significant judgments and sources of estimation uncertainties - Recoverability of goodwill and intangible assets (Details) - EUR (€) € in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 01, 2022 | Oct. 01, 2021 | |
Recoverability of Goodwill and Intangible Assets | |||||
Number of years of budget | 3 years | ||||
Maximum number of projection years | 10 years | ||||
Percentage of decrease in market capitalization | (46.00%) | ||||
Market capitalization | € 8,969,649 | € 16,742,268 | |||
Percentage of increase in FMC AG & Co. KGaA shareholders' equity | 10% | ||||
Total FMC AG & Co. KGaA shareholders' equity | € 13,989,453 | 12,698,783 | |||
Foreign currency translation effects | € 826,847 | 1,034,239 | € (1,359,397) | ||
North America | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Residual value growth | 1% | 1% | |||
Pre-tax WACC | 8.05% | 5.78% | |||
After-tax WACC | 6.39% | 4.58% | |||
Excess of recoverable amount over carrying amount | € 2,451,097 | 17,109,467 | |||
North America | Pre-tax WACC | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0.0071 | 0.0382 | |||
North America | After-tax WACC | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0.0056 | 0.0291 | |||
North America | Operating income margin | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | (0.0097) | (0.0522) | |||
EMEA | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Residual value growth | 1% | 1% | |||
Pre-tax WACC | 10.44% | 7.14% | |||
After-tax WACC | 8.08% | 5.23% | |||
Excess of recoverable amount over carrying amount | € 1,071,196 | 1,956,852 | |||
EMEA | Pre-tax WACC | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0.0211 | 0.0295 | |||
EMEA | After-tax WACC | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0.0156 | 0.0209 | |||
EMEA | Operating income margin | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | (0.0250) | (0.0349) | |||
Asia-Pacific | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Residual value growth | 1% | 4% | 4% | ||
Pre-tax WACC | 8.76% | 5.34% | |||
After-tax WACC | 6.38% | 4.91% | |||
Latin America | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Residual value growth | 1.60% | 1.60% | |||
Latin America | Minimum | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Pre-tax WACC | 12.37% | 10.62% | |||
After-tax WACC | 8.94% | 7% | |||
Latin America | Maximum | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Pre-tax WACC | 26.14% | 19.87% | |||
After-tax WACC | 22.71% | 16.25% | |||
Non-amortizable intangible assets and goodwill | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Carrying amount of intangible assets | € 16,066,642 | € 14,588,180 | |||
Carrying amount of goodwill and non-amortizable intangible assets, percentage of the Company's total assets | 45% | 42% | |||
Goodwill | Latin America | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Impairment loss | 193,978 | ||||
Trade names | Latin America | |||||
Recoverability of Goodwill and Intangible Assets | |||||
Impairment loss | € 490 |
Significant judgments and sou_4
Significant judgments and sources of estimation uncertainties - Trade accounts and other receivables from unrelated parties and expected credit losses (Details) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 EUR (€) country | Dec. 31, 2021 EUR (€) | |
Trade accounts and other receivables from unrelated parties and expected credit losses | ||
Trade accounts and other receivables from unrelated parties | € | € 3,574,270 | € 3,409,061 |
Number of countries Company sells health care products | country | 150 | |
Number of countries Company sells health care services | country | 50 | |
Additional percentage of uncollectible receivables for sensitivity analysis | 1% | |
Percentage of operating income reduced, if 1% of trade accounts receivable were uncollectible | 2.50% | |
North America Segment | ||
Trade accounts and other receivables from unrelated parties and expected credit losses | ||
Number of days collection process started, after service is provided or upon the expiration of the time provided by contract | 30 days | |
Allowances/Expected credit losses | ||
Trade accounts and other receivables from unrelated parties and expected credit losses | ||
Trade accounts and other receivables from unrelated parties | € | € (168,681) | € (163,929) |
Significant judgments and sou_5
Significant judgments and sources of estimation uncertainties - Percentage of Accounts Receivable (Details) - EUR (€) | Dec. 31, 2022 | Dec. 31, 2021 |
Major customers | ||
Number of single debtor other than U.S. Medicare and Medicaid accounted for more than 5% of total trade accounts receivable | 0 | |
Percentage of trade accounts and other receivables from unrelated parties | 100% | 100% |
U.S. Government health care programs | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 31% | 32% |
U.S. commercial payors | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 18% | 15% |
U.S. hospitals | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 5% | 4% |
Self-pay of U.S. patients | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 2% | 2% |
Other North America Segment payors | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 2% | 3% |
Product customers and health care payors outside the North America Segment | ||
Major customers | ||
Percentage of trade accounts and other receivables from unrelated parties | 42% | 44% |
Acquisitions, business combin_3
Acquisitions, business combinations, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities - Acquisitions (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisitions, business combinations, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities | |||
Acquisitions, investments and purchase of intangible assets, total purchase consideration | € 745,998 | € 628,411 | € 406,644 |
Cash consideration, net of cash acquired | 164,774 | 563,252 | 355,386 |
Assumed obligations and non-cash consideration | 581,224 | 65,159 | 51,258 |
Acquisitions | |||
Total acquisitions | 570,698 | 389,965 | 265,612 |
Net cash paid for acquisitions | (10,526) | 324,806 | 214,836 |
Assumed obligations and non-cash consideration | 581,224 | 65,159 | € 50,776 |
Goodwill | 705,524 | € 444,835 | |
Intangible assets acquired | 54,909 | ||
Amount of profit (loss) contributed by acquirees since acquisition date | (14,889) | ||
Revenue of acquiree since acquisition date | 16,988 | ||
Increase in assets as a result of business combinations | € 653,860 |
Acquisitions, business combin_4
Acquisitions, business combinations, investments (including debt securities), purchases of intangible assets, divestitures and sale of debt securities (Details) € in Thousands, $ in Thousands | 1 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||
Aug. 24, 2022 EUR (€) | Aug. 24, 2022 USD ($) | Aug. 23, 2022 EUR (€) | Sep. 30, 2022 EUR (€) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Aug. 24, 2022 USD ($) | Aug. 23, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | |
Disclosure of detailed information about business combination | |||||||||||||
Investment in equity method investees | € 773,724 | € 773,724 | € 786,905 | € 761,113 | |||||||||
Remeasurement gain | 148,202 | ||||||||||||
Non-controlling interests recorded | 188,469 | 188,469 | 120,197 | € 37,140 | |||||||||
Intangible assets acquired in business combination | 54,909 | 54,909 | |||||||||||
Goodwill | 705,524 | 705,524 | € 444,835 | ||||||||||
Amount of profit (loss) contributed by acquirees since acquisition date | (14,889) | ||||||||||||
InterWell Health LLC | |||||||||||||
Disclosure of detailed information about business combination | |||||||||||||
Percentage of interest owned | 46% | ||||||||||||
Investment in equity method investees | € 19,499 | $ 19,370 | |||||||||||
Fair value of investment in InterWell Health, Inc. | € 176,600 | $ 175,434 | |||||||||||
NewCo | |||||||||||||
Disclosure of detailed information about business combination | |||||||||||||
Equity interest held upon completion of transaction (in percent) | 75% | 75% | |||||||||||
Fair value of consideration transferred | € 401,066 | $ 398,419 | |||||||||||
Fair value of investment in InterWell Health, Inc. | 176,600 | 175,434 | |||||||||||
Non-controlling interests recorded | 188,030 | 186,789 | |||||||||||
Put option liabilities | 608,150 | 565,787 | 565,787 | $ 603,469 | 604,137 | ||||||||
Intangible assets acquired in business combination | € 54,277 | 53,919 | |||||||||||
Weighted average useful life of intangible assets acquired in business combination | 10 years | 10 years | |||||||||||
Goodwill | € 663,933 | 659,550 | |||||||||||
Impairment on long-lived assets transferred to acquiree after business combination | 67,447 | $ 71,025 | |||||||||||
Transaction-related costs | 24,367 | 25,660 | |||||||||||
Amount of profit (loss) contributed by acquirees since acquisition date | € (18,094) | ||||||||||||
Increase (decrease) in net income of combined entity as if combination occurred at beginning of period | (34,239) | ||||||||||||
NewCo | Cricket Health, Inc | |||||||||||||
Disclosure of detailed information about business combination | |||||||||||||
Fair value of consideration transferred | 262,505 | 260,772 | |||||||||||
NewCo | InterWell Health LLC | |||||||||||||
Disclosure of detailed information about business combination | |||||||||||||
Fair value of consideration transferred | € 138,561 | $ 137,647 | |||||||||||
NewCo | InterWell Health LLC | |||||||||||||
Disclosure of detailed information about business combination | |||||||||||||
Equity interest held upon completion of transaction (in percent) | 7% | 7% | |||||||||||
Remeasurement gain | 148,202 | $ 156,064 | |||||||||||
Currency translation adjustment reversal on disposal of investment | € 364 | ||||||||||||
NewCo | Fresenius Health Partners, Inc | |||||||||||||
Disclosure of detailed information about business combination | |||||||||||||
Equity interest held upon completion of transaction (in percent) | 68% | 68% | |||||||||||
Non-controlling interest recognised on equity transaction | € 4,947 | $ 4,914 | |||||||||||
Currency translation adjustment recognised on equity transaction | 851 | ||||||||||||
Additional paid-in capital recorded on equity transaction | € 396,119 | $ 393,505 | |||||||||||
NewCo | Acumen Physician Solutions, LLC | |||||||||||||
Disclosure of detailed information about business combination | |||||||||||||
Working capital transferred to acquiree after business combination | € 1,845 | $ 1,824 | |||||||||||
NewCo | Cricket Health, Inc | |||||||||||||
Disclosure of detailed information about business combination | |||||||||||||
Equity interest held upon completion of transaction (in percent) | 17% | 17% | |||||||||||
NewCo | InterWell Health LLC | |||||||||||||
Disclosure of detailed information about business combination | |||||||||||||
Equity interest held upon completion of transaction (in percent) | 8% | 8% |
Acquisitions, investments (incl
Acquisitions, investments (including debt securities) and purchases of intangible assets - Fair Values of Assets Acquired and Liabilities Assumed (Details) € in Thousands, $ in Thousands | 3 Months Ended | |||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Aug. 24, 2022 EUR (€) | Aug. 24, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | |
Disclosure of detailed information about business combination | ||||||
Less: Cash and cash equivalents | € (58,101) | € (19,518) | € (9,759) | |||
Less: Intangible assets | (54,909) | |||||
Noncontrolling interests | 188,469 | 120,197 | € 37,140 | |||
Goodwill | 705,524 | € 444,835 | ||||
NewCo | ||||||
Disclosure of detailed information about business combination | ||||||
Fair value of consideration transferred | € 401,066 | $ 398,419 | ||||
Fair value of previously held equity method investment in InterWell Health LLC | 176,600 | 175,434 | ||||
Fair value of consideration transferred and previously held investment | 577,666 | 573,853 | ||||
Less: Cash and cash equivalents | (57,764) | (57,383) | ||||
Less: Other assets | (2,838) | (2,819) | ||||
Less: Intangible assets | (54,277) | (53,919) | ||||
Other liabilities | 13,116 | 13,029 | ||||
Noncontrolling interests | 188,030 | 186,789 | ||||
Goodwill | € 663,933 | $ 659,550 | ||||
Increase (decrease) in fair value of consideration transferred, measurement period adjustment | (7,718) | $ (7,667) | ||||
Increase (decrease) in non-controlling interests, measurement period adjustment | (7,418) | (7,369) | ||||
Increase (decrease) in intangible assets, measurement period adjustment | 19,529 | 19,400 | ||||
Increase (decrease) in deferred tax liabilities, measurement period adjustment | € 9,144 | $ 9,084 |
Acquisitions, investments purch
Acquisitions, investments purchases of intangible assets, divestitures and sale of debt securities - Investments (including debt securities) and purchases of intangible assets, Divestitures and sale of debt securities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments and Purchases of Intangible Assets | |||
Investments and purchases of intangible assets, total purchase consideration | € 175,300 | € 238,446 | € 141,032 |
Cash consideration | 175,300 | 238,446 | 140,550 |
Divestitures | |||
Proceeds from divestitures | 126,454 | 201,203 | 77,509 |
Cash portion of proceeds from divestitures | 117,832 | 196,960 | 56,849 |
Non-cash portion of proceeds from divestitures | € 8,622 | € 4,243 | € 20,660 |
Notes to the consolidated sta_3
Notes to the consolidated statements of income - Revenue (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Health care services | € 15,418,069 | € 13,876,282 | € 14,114,399 |
Health care products | 3,979,948 | 3,742,403 | 3,744,664 |
Revenue | 19,398,017 | 17,618,685 | 17,859,063 |
Revenue from contracts with customers | |||
Revenue | |||
Health care services | 14,966,580 | 13,479,438 | 13,810,589 |
Health care products | 3,876,321 | 3,623,951 | 3,639,995 |
Revenue | 18,842,901 | 17,103,389 | 17,450,584 |
Other revenue | |||
Revenue | |||
Health care services | 451,489 | 396,844 | 303,810 |
Health care products | 103,627 | 118,452 | 104,669 |
Revenue | € 555,116 | € 515,296 | € 408,479 |
Notes to the consolidated sta_4
Notes to the consolidated statements of income - Trade accounts receivables and contract liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Notes to the consolidated statements of income | |||
Trade accounts receivables from unrelated parties | € 3,381,006 | € 3,309,353 | |
Contract liabilities | 63,273 | 428,034 | |
Impairment losses relate to receivables | 43,285 | 43,968 | € 27,541 |
Revenue that was included in contract liability balance at beginning of period | € 429,583 | € 527,066 |
Notes to the consolidated sta_5
Notes to the consolidated statements of income - Unsatisfied performance obligations (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Unsatisfied performance obligations | ||
Transaction price allocated to unsatisfied performance obligations | € 966,308 | € 1,428,897 |
Less than 1 year | ||
Unsatisfied performance obligations | ||
Transaction price allocated to unsatisfied performance obligations | 283,208 | 686,505 |
1 - 3 years | ||
Unsatisfied performance obligations | ||
Transaction price allocated to unsatisfied performance obligations | 342,274 | 383,682 |
3 - 5 years | ||
Unsatisfied performance obligations | ||
Transaction price allocated to unsatisfied performance obligations | 266,302 | 256,922 |
5 - 10 years | ||
Unsatisfied performance obligations | ||
Transaction price allocated to unsatisfied performance obligations | € 74,524 | € 101,788 |
Notes to the consolidated sta_6
Notes to the consolidated statements of income - Selling, general and administrative expenses (Details) - General and administrative expense - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Selling, general and administrative expenses | |||
Income attributable to a consent agreement on foregone profits from the sale of certain pharmaceuticals to non-associated companies | € (83,212) | € (44,300) | € (39,540) |
Reimbursement payments and funding received related to economic assistance programs to address the consequences of the COVID-19 pandemic | (49,652) | (8,716) | (27,414) |
Net (gain) loss from changes in the fair value of investments, mainly related to equity investments | 96,423 | 66,151 | (20,938) |
(Gain) loss from right-of-use assets | (18,692) | (4,975) | (12,867) |
Net (gain) loss from the sale of investments and divestitures | (47,733) | (4,054) | (41,938) |
Net (gain) loss related to variable payments outstanding for acquisitions mainly due to revaluation | (3,904) | (6,716) | (1,996) |
Impairment loss on property, plant and equipment, intangible assets and right-of-use assets | 118,229 | 36,554 | 2,758 |
Net (gain) loss from the sale of fixed and intangible assets | 18,936 | (21,141) | 17,358 |
Costs related to the InterWell Health transaction | 24,367 | ||
Costs related to U.S. ballot initiatives | 22,514 | 26,069 | |
Restructuring costs | € 190,065 | € 62,862 | |
Latin America Segment | |||
Selling, general and administrative expenses | |||
Impairment loss | € 194,468 |
Notes to the consolidated sta_7
Notes to the consolidated statements of income - Research and development expenses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Detailed information on intangible assets | |||
Research and development expense | € 228,624 | € 220,782 | € 193,774 |
Depreciation and amortisation expense | 1,718,802 | 1,585,367 | 1,586,869 |
Capitalized development costs | |||
Detailed information on intangible assets | |||
Depreciation and amortisation expense | € 9,994 | € 6,437 | € 5,024 |
Notes to the consolidated sta_8
Notes to the consolidated statements of income - Cost of materials (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Notes to the consolidated statements of income | |||
Cost of raw materials, supplies and purchased components | € 3,939,649 | € 3,622,169 | € 3,668,053 |
Cost of purchased services | 280,913 | 240,699 | 236,302 |
Cost of materials | € 4,220,562 | € 3,862,868 | € 3,904,355 |
Notes to the consolidated sta_9
Notes to the consolidated statements of income - Personnel expenses (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) employee | Dec. 31, 2021 EUR (€) employee | Dec. 31, 2020 EUR (€) employee | |
Personnel expenses | |||
Wages and salaries | € | € 6,390,322 | € 5,618,236 | € 5,753,795 |
Social security contributions and cost of retirement benefits and social assistance | € | 1,549,075 | 1,343,882 | 1,313,612 |
thereof retirement benefits | € | 217,165 | 189,176 | 181,347 |
Personnel expenses | € | € 7,939,397 | € 6,962,118 | € 7,067,407 |
Employees by function | |||
Production and services | 111,472 | 112,201 | 113,628 |
Administration | 12,166 | 13,216 | 13,386 |
Sales and marketing | 4,877 | 4,648 | 4,085 |
Research and development | 1,226 | 1,245 | 1,242 |
Total employees | 129,741 | 131,310 | 132,341 |
Notes to the consolidated st_10
Notes to the consolidated statements of income - Net interest (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Notes to the consolidated statements of income | |||
Net interest | € 292,476 | € 280,429 | € 368,019 |
Interest expense | 360,139 | 353,599 | 409,978 |
Interest income | € 67,663 | € 73,170 | € 41,959 |
Notes to the consolidated st_11
Notes to the consolidated statements of income - Income taxes geographical (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographic region | |||
Income before income taxes | € 1,219,279 | € 1,571,861 | € 1,936,390 |
Income tax expense (benefit) | |||
Current tax expense | 366,425 | 285,574 | 389,453 |
Deferred tax income | (41,471) | 67,259 | 111,105 |
Total tax expense (income) | 324,954 | 352,833 | 500,558 |
Germany | |||
Disclosure of geographic region | |||
Income before income taxes | (30,186) | 81,246 | 160,866 |
Income tax expense (benefit) | |||
Current tax expense | (5,423) | (11,675) | 17,879 |
Deferred tax income | 16,963 | 18,404 | 27,844 |
United States | |||
Disclosure of geographic region | |||
Income before income taxes | 829,699 | 1,090,797 | 1,487,931 |
Income tax expense (benefit) | |||
Current tax expense | 190,058 | 181,714 | 242,062 |
Deferred tax income | (13,767) | 47,018 | 95,444 |
Other | |||
Disclosure of geographic region | |||
Income before income taxes | 419,766 | 399,818 | 287,593 |
Income tax expense (benefit) | |||
Current tax expense | 181,790 | 115,535 | 129,512 |
Deferred tax income | € (44,667) | € 1,837 | € (12,183) |
Notes to the consolidated st_12
Notes to the consolidated statements of income - Income taxes reconciliation (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax reconciliation | |||
Statutory tax rate (as a percent) | 30.14% | 30.14% | 30.21% |
Expected corporate income tax expense | € 367,491 | € 473,759 | € 584,983 |
Tax free income | (53,282) | (41,566) | (51,231) |
Income from equity method investees | (24,909) | (26,722) | (28,510) |
Tax rate differentials | (39,064) | (40,604) | (71,755) |
Non-deductible expenses | 77,465 | 50,682 | 106,437 |
Taxes for prior years | (848) | (38,502) | (2,748) |
Noncontrolling partnership interests | (54,636) | (65,489) | (70,300) |
Tax rate changes | (359) | 3,543 | 4,221 |
Change in realizability of deferred tax assets and tax credits | 33,683 | 20,736 | 12,627 |
Withholding taxes | 9,160 | 5,912 | 4,858 |
Other | 10,253 | 11,084 | 11,976 |
Total tax expense (income) | € 324,954 | € 352,833 | € 500,558 |
Effective tax rate (as a percent) | 26.70% | 22.40% | 25.90% |
Latin America Segment | |||
Tax reconciliation | |||
Non-deductible expenses | € 58,749 |
Notes to the consolidated st_13
Notes to the consolidated statements of income - Deferred income tax assets and liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | € 1,569,895 | € 1,598,149 |
Total deferred tax liabilities | 2,193,691 | 2,151,241 |
Net deferred tax liabilities | (623,796) | (553,092) |
Trade accounts receivable | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 23,448 | 21,407 |
Total deferred tax liabilities | 27,311 | 47,378 |
Inventories | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 62,663 | 73,078 |
Total deferred tax liabilities | 5,875 | 3,808 |
Intangible assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 6,875 | 5,587 |
Total deferred tax liabilities | 886,696 | 834,190 |
Property, plant and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 86,182 | 83,946 |
Total deferred tax liabilities | 267,064 | 276,922 |
Lease liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 894,451 | 904,265 |
Right-of-use assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax liabilities | 793,855 | 818,314 |
Provisions and other liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 212,167 | 197,765 |
Total deferred tax liabilities | 6,533 | 15,423 |
Pension liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 93,431 | 168,278 |
Total deferred tax liabilities | 65 | |
Net operating loss carryforwards, tax credit carryforwards and interest carryforwards | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 113,713 | 97,287 |
Derivatives | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 1,893 | 4,211 |
Total deferred tax liabilities | 4,204 | 700 |
Compensation expense related to stock options | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 1,190 | 1,763 |
Other temporary differences | ||
Disclosure of temporary difference, unused tax losses and unused tax credits | ||
Total deferred tax assets | 73,882 | 40,562 |
Total deferred tax liabilities | € 202,088 | € 154,506 |
Notes to the consolidated st_14
Notes to the consolidated statements of income - Net deferred income tax assets and liabilities (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Notes to the consolidated statements of income | ||
Deferred taxes assets | € 312,679 | € 315,360 |
Deferred tax liabilities | 936,475 | 868,452 |
Net deferred tax liabilities | € (623,796) | € (553,092) |
Notes to the consolidated st_15
Notes to the consolidated statements of income - Net operating loss carryforwards (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure | ||
Net operating loss carryforwards | € 826,241 | € 527,673 |
Unused tax losses for which no deferred tax asset recognized | 531,231 | 282,275 |
Deferred tax liabilities of foreign subsidiaries | 11,972 | 8,759 |
Undistributed earnings of foreign subsidiaries for which no deferred tax recognized | € 8,945,633 | 9,563,193 |
Percentage of dividends and capital gain tax free | 95% | |
Less than 1 year | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | € 19,274 | 14,422 |
Later Than One Year And Not Later Than Two Years | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 14,979 | 13,972 |
Later Than Two Years And Not Later Than Three Years | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 27,238 | 21,400 |
Later Than Three Years And Not Later Than Four Years | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 50,856 | 40,610 |
Later Than Four Years And Not Later Than Five Years | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 75,953 | 59,632 |
Later Than Five Years And Not Later Than Six Years | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 28,295 | 25,465 |
Later Than Six Years And Not Later Than Seven Years | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 53,910 | 5,826 |
Later Than Seven Years And Not Later Than Eight Years | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 2,999 | 4,484 |
Later Than Eight Years And Not Later Than Nine Years | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 1,672 | 2,520 |
Later than nine years | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | 131,039 | 47,494 |
Without expiration date | ||
Income Tax Disclosure | ||
Net operating loss carryforwards | € 420,026 | € 291,848 |
Notes to the consolidated st_16
Notes to the consolidated statements of income - Impacts of COVID-19 (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of grants | ||||||
Government grants | € 284,742 | € 72,531 | ||||
Contract liabilities | 63,273 | 428,034 | ||||
United States | ||||||
Disclosure of grants | ||||||
Remaining amount of government grants received | 5,723 | 54,897 | $ 6,104 | $ 62,176 | ||
U.S. Department of Health and Human Services | ||||||
Disclosure of grants | ||||||
Government grants | 276,783 | $ 291,446 | 62,289 | $ 73,672 | ||
Amount of funds received | 223,536 | $ 235,394 | 103,171 | $ 122,025 | ||
CMS Accelerated and Advance Payment program | ||||||
Disclosure of grants | ||||||
Contract liabilities | € 4,946 | € 390,754 | $ 5,275 | $ 442,568 |
Related party transactions - Se
Related party transactions - Service agreements and products - General (Details) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 EUR (€) item | Dec. 31, 2010 | |
Related party transactions | ||
Number of Kidney Care Entities that company participates in | item | 20 | |
Vifor Fresenius Medical Care Renal Pharma Ltd. | ||
Related party transactions | ||
Ownership in joint venture (as a percent) | 45% | |
Commitments made | € 1,272,287 | |
Vifor Fresenius Medical Care Renal Pharma Ltd. | Less than 1 year | ||
Related party transactions | ||
Commitments made | € 362,805 | |
Vifor Fresenius Medical Care Renal Pharma Ltd. | Maximum | ||
Related party transactions | ||
Agreement term | 4 years | |
Fresenius SE | ||
Related party transactions | ||
Proportion of ownership interest in reporting entity (as a percent) | 32.20% | |
Fresenius SE Companies | Minimum | ||
Related party transactions | ||
Term of related party agreement | 1 year | |
Fresenius SE Companies | Maximum | ||
Related party transactions | ||
Term of related party agreement | 5 years |
Related party transactions - _2
Related party transactions - Service agreements and products with related parties (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Service Agreements | |||
Transactions | |||
Sales of goods and services | € 41,614 | € 48,171 | € 24,688 |
Purchases of goods and services | 121,097 | 138,833 | 131,497 |
Balances | |||
Accounts receivable | 121,701 | 133,205 | |
Accounts payable | 11,405 | 14,748 | |
Accrued expenses | 6,520 | 12,911 | |
Products | |||
Transactions | |||
Sales of goods and services | 66,800 | 50,086 | 41,180 |
Purchases of goods and services | 502,478 | 477,433 | 518,264 |
Balances | |||
Accounts receivable | 16,078 | 13,487 | |
Accounts payable | 79,389 | 82,444 | |
Fresenius SE | Service Agreements | |||
Transactions | |||
Sales of goods and services | 361 | 123 | 250 |
Purchases of goods and services | 38,010 | 38,292 | 29,174 |
Balances | |||
Accounts receivable | 26 | ||
Accounts payable | 2,820 | 6,707 | |
Fresenius SE | Products | |||
Transactions | |||
Sales of goods and services | 5 | ||
Fresenius SE affiliates | Service Agreements | |||
Transactions | |||
Sales of goods and services | 5,164 | 5,657 | 4,708 |
Purchases of goods and services | 83,087 | 100,541 | 102,323 |
Balances | |||
Accounts receivable | 1,168 | 1,544 | |
Accounts payable | 8,585 | 8,041 | |
Fresenius SE affiliates | Products | |||
Transactions | |||
Sales of goods and services | 66,800 | 50,081 | 41,180 |
Purchases of goods and services | 39,405 | 31,719 | 44,164 |
Balances | |||
Accounts receivable | 16,078 | 13,487 | |
Accounts payable | 5,826 | 6,000 | |
Equity method investees | Service Agreements | |||
Transactions | |||
Sales of goods and services | 36,089 | 42,391 | 19,730 |
Balances | |||
Accounts receivable | 120,507 | 131,661 | |
Equity method investees | Products | |||
Transactions | |||
Purchases of goods and services | 463,073 | 445,714 | € 474,100 |
Balances | |||
Accounts payable | € 73,563 | € 76,444 |
Related party transactions - Le
Related party transactions - Lease Agreements - Summary (Details) - EUR (€) € in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease Transactions | ||||
Depreciation | € 746,471 | € 690,476 | € 703,999 | |
Interest expense | 151,317 | 143,160 | 159,148 | |
Leases balances | ||||
Right-of-use asset | € 4,187,126 | 4,187,126 | 4,316,440 | |
Lease Agreements | ||||
Lease Transactions | ||||
Depreciation | 22,351 | 21,585 | 21,161 | |
Interest expense | 1,572 | 1,753 | 2,012 | |
Lease expense | 259 | 1,692 | 3,024 | |
Leases balances | ||||
Right-of-use asset | 151,372 | 151,372 | 116,975 | |
Lease liability | 153,703 | 153,703 | 119,281 | |
Fresenius SE | Lease Agreements | ||||
Lease Transactions | ||||
Depreciation | 8,395 | 7,876 | 7,925 | |
Interest expense | 524 | 661 | 740 | |
Lease expense | 259 | 1,654 | 2,452 | |
Leases balances | ||||
Right-of-use asset | 38,688 | 38,688 | 48,794 | |
Lease liability | 39,626 | 39,626 | 50,997 | |
Fresenius SE affiliates | Lease Agreements | ||||
Lease Transactions | ||||
Depreciation | 13,956 | 13,709 | 13,236 | |
Interest expense | 1,048 | 1,092 | 1,272 | |
Lease expense | 38 | € 572 | ||
Leases balances | ||||
Right-of-use asset | 112,684 | 112,684 | 68,181 | |
Lease liability | 114,077 | € 114,077 | € 68,284 | |
One Company of Fresenius SE Companies | Lease Agreements | ||||
Leases balances | ||||
Consideration for building and other assets sold | € 31,315 | |||
Lease term of buildings | 10 years |
Related party transactions - Fi
Related party transactions - Financing (Details) - EUR (€) € in Thousands | Nov. 28, 2013 | Aug. 19, 2009 | Dec. 31, 2022 | Dec. 31, 2021 |
Transactions | ||||
Outstanding borrowings | € 13,212,572 | € 13,320,149 | ||
Fresenius SE | Short-term financing | ||||
Balances | ||||
Accounts receivable | 1,477 | 14,900 | ||
Accounts payable | 0 | 0 | ||
Fresenius SE | Loans | ||||
Transactions | ||||
Outstanding borrowings | € 1,000 | € 74,500 | ||
Interest rate (as a percent) | 2.468% | 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) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Transactions | |||
Capital | € 293,413 | € 293,004 | |
General Partner | |||
Transactions | |||
Amount paid for services received from related party | 23,632 | 30,212 | € 33,284 |
Annual fee portion of reimbursements paid to related party | € 120 | 120 | € 120 |
Annual fee, as percent of General Partner's share capital | 4% | ||
Capital | € 3,000 | ||
Balances | |||
Accounts receivable | 816 | 769 | |
Accounts payable | € 27,289 | € 24,265 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | ||||
Cash | € 911,015 | € 925,134 | ||
Securities and time deposits | 362,772 | 556,521 | ||
Cash and cash equivalents | 1,273,787 | 1,481,655 | € 1,081,539 | € 1,007,723 |
Restricted cash | € 22,835 | € 25,573 |
Trade accounts and other rece_3
Trade accounts and other receivables from unrelated parties (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | |
Trade accounts and other receivables | |||
Trade accounts and other receivables from unrelated parties | € 3,574,270 | € 3,409,061 | |
Other receivables | € 198,548 | 113,841 | |
Collection period for trade accounts receivable from unrelated parties | 1 year | ||
Trade accounts receivable included in other non-current assets | € 141,763 | 148,545 | |
Finance lease receivables due period | 5 years | ||
Receivables assigned to institutional investors under Accounts Receivable Facility | € 1,339,838 | $ 1,429,071 | 0 |
Financial instruments credit-impaired | |||
Trade accounts and other receivables | |||
Trade accounts and other receivables from unrelated parties | 254,750 | 292,323 | |
Gross carrying amount | |||
Trade accounts and other receivables | |||
Trade accounts and other receivables from unrelated parties | 3,742,951 | 3,572,990 | |
thereof finance lease receivables | 72,853 | 64,224 | |
Gross carrying amount | Financial instruments credit-impaired | |||
Trade accounts and other receivables | |||
Trade accounts and other receivables from unrelated parties | 378,831 | 423,113 | |
Allowances/Expected credit losses | |||
Trade accounts and other receivables | |||
Trade accounts and other receivables from unrelated parties | (168,681) | (163,929) | |
Allowances/Expected credit losses | Financial instruments credit-impaired | |||
Trade accounts and other receivables | |||
Trade accounts and other receivables from unrelated parties | € (124,081) | € (130,790) |
Trade accounts and other rece_4
Trade accounts and other receivables from unrelated parties - Development of expected credit losses (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Development of allowance | |||
Financial assets at beginning of period | € (5,991,693) | ||
Financial assets at end of period | (5,851,814) | € (5,991,693) | |
Trade accounts and other receivables from unrelated parties | Allowances/Expected credit losses | |||
Development of allowance | |||
Financial assets at beginning of period | 163,929 | 142,372 | € 141,358 |
Change in valuation allowances as recorded in the consolidated statements of income | 42,470 | 44,374 | 28,302 |
Write-offs and recoveries of amounts previously written-off | (36,180) | (21,622) | (14,213) |
Foreign currency translation | (1,538) | (1,195) | (13,075) |
Financial assets at end of period | € 168,681 | € 163,929 | € 142,372 |
Trade accounts and other rece_5
Trade accounts and other receivables from unrelated parties - Ageing analysis of trade accounts and other receivables from unrelated parties and the allowance for doubtful accounts (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | € 3,574,270 | € 3,409,061 |
not overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 2,120,276 | 2,029,791 |
up to 3 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 822,718 | 828,727 |
3 to 6 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 249,256 | 202,770 |
6 to 12 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 235,088 | 193,170 |
More than one year | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 146,932 | 154,603 |
Gross carrying amount | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 3,742,951 | 3,572,990 |
Gross carrying amount | not overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 2,143,985 | 2,042,024 |
Gross carrying amount | up to 3 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 831,384 | 834,638 |
Gross carrying amount | 3 to 6 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 254,570 | 206,903 |
Gross carrying amount | 6 to 12 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 246,497 | 205,436 |
Gross carrying amount | More than one year | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | 266,515 | 283,989 |
Allowances/Expected credit losses | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (168,681) | (163,929) |
Allowances/Expected credit losses | not overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (23,709) | (12,233) |
Allowances/Expected credit losses | up to 3 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (8,666) | (5,911) |
Allowances/Expected credit losses | 3 to 6 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (5,314) | (4,133) |
Allowances/Expected credit losses | 6 to 12 months overdue | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | (11,409) | (12,266) |
Allowances/Expected credit losses | More than one year | ||
Aging Analysis of Trade Accounts Receivable | ||
Trade accounts and other receivables from unrelated parties | € (119,583) | € (129,386) |
Inventories (Details)
Inventories (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Inventories | ||
Finished goods | € 1,310,995 | € 1,233,197 |
Health care supplies | 553,821 | 452,073 |
Raw materials and purchased components | 306,994 | 247,478 |
Work in process | 124,404 | 105,266 |
Inventories | 2,296,214 | 2,038,014 |
Unconditional purchase agreement of materials | 821,888 | |
Inventory write-down | € 71,593 | € 69,250 |
Minimum | ||
Inventories | ||
Term of unconditional purchase agreements of materials | 1 year | |
Maximum | ||
Inventories | ||
Term of unconditional purchase agreements of materials | 5 years | |
Less than 1 year | ||
Inventories | ||
Unconditional purchase agreement of materials | € 479,278 |
Other current assets (Details)
Other current assets (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other current assets | ||
Payments on account | € 199,736 | € 182,239 |
Debt securities | 169,983 | 136,362 |
Income tax receivable | 143,782 | 177,150 |
Other tax receivable | 125,762 | 109,586 |
Prepaid insurance | 27,652 | 21,160 |
Receivables for supplier rebates | 23,920 | 20,662 |
Derivatives | 19,777 | 3,417 |
Notes receivable | 18,304 | 18,873 |
Deposit / guarantee / security | 17,843 | 22,822 |
Prepaid rent | 15,543 | 14,237 |
Loans to customers or suppliers | 5,494 | 8,990 |
Other | 151,316 | 160,653 |
Other current assets | € 919,112 | € 876,151 |
Property, plant and equipment_2
Property, plant and equipment (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in property, plant, and equipment: | |||
Balance, beginning of period | € 4,235,027 | ||
Additions - depreciation | (804,647) | € (742,566) | € (738,201) |
Balance, ending of period | 4,152,682 | 4,235,027 | |
Contractual commitments for acquisition of property, plant and equipment | € 25,410 | ||
Minimum | |||
Changes in property, plant, and equipment: | |||
Term of unconditional purchase agreements of property, plant and equipment | 1 year | ||
Maximum | |||
Changes in property, plant, and equipment: | |||
Term of unconditional purchase agreements of property, plant and equipment | 5 years | ||
Less than 1 year | |||
Changes in property, plant, and equipment: | |||
Contractual commitments for acquisition of property, plant and equipment | € 14,656 | ||
Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 10,273,866 | 9,387,234 | |
Foreign currency translation | 410,049 | 514,979 | |
Changes in consolidation group | (13,558) | 11,863 | |
Additions | 620,566 | 738,900 | |
Reclassifications | 40,599 | 37,814 | |
Disposals | (374,993) | (416,924) | |
Balance, ending of period | 10,956,529 | 10,273,866 | 9,387,234 |
Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (6,038,839) | (5,330,370) | |
Foreign currency translation | (235,211) | (296,139) | |
Changes in consolidation group | 10,671 | 2,663 | |
Additions - depreciation | (804,647) | (742,566) | |
Impairment | (31,527) | (9,517) | |
Reclassifications | (587) | (14,436) | |
Disposals | 296,293 | 351,526 | |
Balance, ending of period | (6,803,847) | (6,038,839) | (5,330,370) |
Land | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 70,105 | ||
Balance, ending of period | 68,627 | 70,105 | |
Land | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 70,691 | 69,582 | |
Foreign currency translation | (3,002) | 147 | |
Changes in consolidation group | (65) | 93 | |
Additions | 1,842 | 4 | |
Reclassifications | (261) | 2,446 | |
Disposals | (47) | (1,581) | |
Balance, ending of period | 69,158 | 70,691 | 69,582 |
Land | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (586) | (1,317) | |
Foreign currency translation | 41 | 10 | |
Reclassifications | 14 | ||
Disposals | 721 | ||
Balance, ending of period | (531) | (586) | (1,317) |
Buildings and improvements | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 1,657,025 | ||
Balance, ending of period | 1,599,163 | 1,657,025 | |
Buildings and improvements | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 4,129,180 | 3,613,172 | |
Foreign currency translation | 192,505 | 251,338 | |
Changes in consolidation group | (15,357) | 2,568 | |
Additions | 30,248 | 60,173 | |
Reclassifications | 192,974 | 277,232 | |
Disposals | (158,052) | (75,303) | |
Balance, ending of period | 4,371,498 | 4,129,180 | 3,613,172 |
Buildings and improvements | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (2,472,155) | (2,098,019) | |
Foreign currency translation | (118,465) | (154,893) | |
Changes in consolidation group | 7,709 | 1,795 | |
Additions - depreciation | (287,845) | (260,532) | |
Impairment | (18,840) | (3,870) | |
Reclassifications | 799 | (11,803) | |
Disposals | 116,462 | 55,167 | |
Balance, ending of period | (2,772,335) | (2,472,155) | (2,098,019) |
Machinery and equipment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 2,113,564 | ||
Balance, ending of period | 2,131,989 | 2,113,564 | |
Machinery and equipment | Subject to operating leases | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 778,887 | ||
Balance, ending of period | 811,991 | 778,887 | |
Machinery and equipment | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 5,679,662 | 5,233,002 | |
Foreign currency translation | 208,366 | 243,941 | |
Changes in consolidation group | (3,153) | 9,232 | |
Additions | 363,609 | 419,897 | |
Reclassifications | 127,282 | 103,355 | |
Disposals | (212,796) | (329,765) | |
Balance, ending of period | 6,162,970 | 5,679,662 | 5,233,002 |
Machinery and equipment | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (3,566,098) | (3,231,034) | |
Foreign currency translation | (116,787) | (141,256) | |
Changes in consolidation group | 2,962 | 868 | |
Additions - depreciation | (516,802) | (482,034) | |
Impairment | (12,687) | (5,647) | |
Reclassifications | (1,400) | (2,633) | |
Disposals | 179,831 | 295,638 | |
Balance, ending of period | (4,030,981) | (3,566,098) | (3,231,034) |
Construction in progress | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 394,333 | ||
Balance, ending of period | 352,903 | 394,333 | |
Construction in progress | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 394,333 | 471,478 | |
Foreign currency translation | 12,180 | 19,553 | |
Changes in consolidation group | 5,017 | (30) | |
Additions | 224,867 | 258,826 | |
Reclassifications | (279,396) | (345,219) | |
Disposals | (4,098) | (10,275) | |
Balance, ending of period | 352,903 | 394,333 | € 471,478 |
Production plant and associated machines impacted by economic sanctions imposed on Russia | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Impairment | (28,949) | ||
Hyperinflationary economies | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 49,484 | ||
Balance, ending of period | 82,201 | 49,484 | |
Hyperinflationary economies | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 97,200 | ||
Balance, ending of period | 169,705 | 97,200 | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (47,716) | ||
Balance, ending of period | (87,504) | (47,716) | |
Hyperinflationary economies | Land | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 3,604 | ||
Balance, ending of period | 5,029 | 3,604 | |
Hyperinflationary economies | Land | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 3,604 | ||
Balance, ending of period | 5,029 | 3,604 | |
Hyperinflationary economies | Buildings and improvements | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 21,944 | ||
Balance, ending of period | 31,837 | 21,944 | |
Hyperinflationary economies | Buildings and improvements | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 34,989 | ||
Balance, ending of period | 51,767 | 34,989 | |
Hyperinflationary economies | Buildings and improvements | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (13,045) | ||
Balance, ending of period | (19,930) | (13,045) | |
Hyperinflationary economies | Machinery and equipment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 21,880 | ||
Balance, ending of period | 42,174 | 21,880 | |
Hyperinflationary economies | Machinery and equipment | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 56,545 | ||
Balance, ending of period | 109,730 | 56,545 | |
Hyperinflationary economies | Machinery and equipment | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (34,665) | ||
Balance, ending of period | (67,556) | (34,665) | |
Hyperinflationary economies | Construction in progress | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 2,056 | ||
Balance, ending of period | 3,161 | 2,056 | |
Hyperinflationary economies | Construction in progress | Gross carrying amount | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | 2,062 | ||
Balance, ending of period | 3,179 | 2,062 | |
Hyperinflationary economies | Construction in progress | Accumulated depreciation / amortization / impairment | |||
Changes in property, plant, and equipment: | |||
Balance, beginning of period | (6) | ||
Balance, ending of period | € (18) | € (6) |
Intangible assets and goodwil_2
Intangible assets and goodwill - Acquisition or manufacturing costs of intangible assets and goodwill (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | € 1,459,393 | ||
Additions - amortization | (169,017) | € (152,325) | € (144,669) |
Balance at the end of the period | 1,518,677 | 1,459,393 | |
Capitalized development costs | 108,478 | 123,275 | |
Reconciliation of goodwill | |||
Balance at the beginning of the period | 14,361,577 | ||
Balance at the end of the period | 15,791,181 | 14,361,577 | |
Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 1,459,393 | ||
Balance at the end of the period | 1,518,677 | 1,459,393 | |
Amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 1,232,790 | ||
Balance at the end of the period | 1,243,216 | 1,232,790 | |
Non-compete agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 28,612 | ||
Balance at the end of the period | 21,936 | 28,612 | |
Technology | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 450,872 | ||
Balance at the end of the period | 423,730 | 450,872 | |
Licenses and distribution agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 36,061 | ||
Balance at the end of the period | 35,297 | 36,061 | |
Customer relationships | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 48,974 | ||
Balance at the end of the period | 51,531 | 48,974 | |
Construction in progress. | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 315,965 | ||
Balance at the end of the period | 359,572 | 315,965 | |
Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 217,629 | ||
Balance at the end of the period | 220,988 | 217,629 | |
Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 134,677 | ||
Balance at the end of the period | 130,162 | 134,677 | |
Non-amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 226,603 | ||
Balance at the end of the period | 275,461 | 226,603 | |
Trade names | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 224,851 | ||
Balance at the end of the period | 252,641 | 224,851 | |
Management contracts | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 1,091 | ||
Balance at the end of the period | 1,061 | 1,091 | |
Emission certificates | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 661 | ||
Balance at the end of the period | 21,759 | 661 | |
Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | 14,361,577 | ||
Balance at the end of the period | 15,791,181 | 14,361,577 | |
Gross carrying amount | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 2,739,203 | 2,481,531 | |
Foreign currency translation | 121,949 | 155,206 | |
Changes in consolidation group | 54,757 | 7,297 | |
Additions | 166,339 | 166,568 | |
Reclassifications | 5,373 | 10,098 | |
Disposals | (219,064) | (81,497) | |
Balance at the end of the period | 2,868,557 | 2,739,203 | 2,481,531 |
Gross carrying amount | Amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 2,482,994 | 2,244,987 | |
Foreign currency translation | 106,495 | 135,523 | |
Changes in consolidation group | 40,703 | 7,297 | |
Additions | 145,241 | 165,907 | |
Reclassifications | 5,373 | 10,098 | |
Disposals | (219,064) | (80,818) | |
Balance at the end of the period | 2,561,742 | 2,482,994 | 2,244,987 |
Gross carrying amount | Non-compete agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 339,796 | 311,353 | |
Foreign currency translation | 19,692 | 24,652 | |
Changes in consolidation group | 150 | 5,475 | |
Reclassifications | 584 | ||
Disposals | (8,449) | (1,684) | |
Balance at the end of the period | 351,773 | 339,796 | 311,353 |
Gross carrying amount | Technology | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 737,465 | 685,730 | |
Foreign currency translation | 42,800 | 51,733 | |
Additions | 143 | ||
Reclassifications | 2 | ||
Disposals | (94,279) | ||
Balance at the end of the period | 686,129 | 737,465 | 685,730 |
Gross carrying amount | Licenses and distribution agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 171,578 | 188,463 | |
Foreign currency translation | 6,150 | 8,038 | |
Changes in consolidation group | (46) | ||
Additions | 4,173 | 4,741 | |
Reclassifications | (280) | 154 | |
Disposals | (12,900) | (29,772) | |
Balance at the end of the period | 168,721 | 171,578 | 188,463 |
Gross carrying amount | Customer relationships | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 67,641 | 62,774 | |
Foreign currency translation | 2,605 | 4,867 | |
Changes in consolidation group | 4,771 | ||
Balance at the end of the period | 75,017 | 67,641 | 62,774 |
Gross carrying amount | Construction in progress. | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 315,965 | 233,272 | |
Foreign currency translation | 9,673 | 9,990 | |
Changes in consolidation group | 120 | ||
Additions | 113,353 | 128,666 | |
Reclassifications | (77,415) | (55,446) | |
Disposals | (2,124) | (517) | |
Balance at the end of the period | 359,572 | 315,965 | 233,272 |
Gross carrying amount | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 460,213 | 394,314 | |
Foreign currency translation | 16,148 | 19,639 | |
Changes in consolidation group | 31,953 | ||
Additions | 8,678 | 15,427 | |
Reclassifications | 78,296 | 52,220 | |
Disposals | (88,942) | (21,387) | |
Balance at the end of the period | 506,346 | 460,213 | 394,314 |
Gross carrying amount | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 390,336 | 369,081 | |
Foreign currency translation | 9,427 | 16,604 | |
Changes in consolidation group | 3,709 | 1,868 | |
Additions | 18,894 | 17,073 | |
Reclassifications | 4,188 | 13,168 | |
Disposals | (12,370) | (27,458) | |
Balance at the end of the period | 414,184 | 390,336 | 369,081 |
Gross carrying amount | Non-amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 256,209 | 236,544 | |
Foreign currency translation | 15,454 | 19,683 | |
Changes in consolidation group | 14,054 | ||
Additions | 21,098 | 661 | |
Disposals | (679) | ||
Balance at the end of the period | 306,815 | 256,209 | 236,544 |
Gross carrying amount | Trade names | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 252,911 | 233,492 | |
Foreign currency translation | 15,470 | 19,419 | |
Changes in consolidation group | 14,054 | ||
Balance at the end of the period | 282,435 | 252,911 | 233,492 |
Gross carrying amount | Management contracts | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 2,637 | 3,052 | |
Foreign currency translation | (16) | 264 | |
Disposals | (679) | ||
Balance at the end of the period | 2,621 | 2,637 | 3,052 |
Gross carrying amount | Emission certificates | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 661 | ||
Additions | 21,098 | 661 | |
Balance at the end of the period | 21,759 | 661 | |
Gross carrying amount | Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | 14,944,458 | 13,515,133 | |
Foreign currency translation | 765,366 | 985,053 | |
Changes in consolidation group | 695,189 | 444,272 | |
Balance at the end of the period | 16,405,013 | 14,944,458 | 13,515,133 |
Accumulated depreciation / amortization / impairment | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (1,279,810) | (1,100,522) | |
Foreign currency translation | (54,833) | (67,751) | |
Changes in consolidation group | (11) | 55 | |
Additions - amortization | (169,017) | (152,325) | |
Impairment loss | (59,056) | (10,096) | |
Reclassifications | (729) | (1,012) | |
Disposals | 213,576 | 51,841 | |
Balance at the end of the period | (1,349,880) | (1,279,810) | (1,100,522) |
Accumulated depreciation / amortization / impairment | Amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (1,250,204) | (1,073,855) | |
Foreign currency translation | (53,085) | (65,549) | |
Changes in consolidation group | (11) | 55 | |
Additions - amortization | (169,017) | (152,325) | |
Impairment loss | (59,056) | (9,359) | |
Reclassifications | (729) | (1,012) | |
Disposals | 213,576 | 51,841 | |
Balance at the end of the period | (1,318,526) | (1,250,204) | (1,073,855) |
Accumulated depreciation / amortization / impairment | Non-compete agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (311,184) | (280,835) | |
Foreign currency translation | (17,881) | (22,622) | |
Changes in consolidation group | 260 | 55 | |
Additions - amortization | (8,822) | (9,456) | |
Reclassifications | (585) | ||
Disposals | 8,375 | 1,674 | |
Balance at the end of the period | (329,837) | (311,184) | (280,835) |
Accumulated depreciation / amortization / impairment | Technology | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (286,593) | (216,019) | |
Foreign currency translation | (14,471) | (15,422) | |
Additions - amortization | (55,614) | (53,160) | |
Impairment loss | (1,023) | ||
Reclassifications | (969) | ||
Disposals | 94,279 | ||
Balance at the end of the period | (262,399) | (286,593) | (216,019) |
Accumulated depreciation / amortization / impairment | Licenses and distribution agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (135,517) | (128,749) | |
Foreign currency translation | (4,314) | (5,027) | |
Additions - amortization | (4,131) | (4,134) | |
Reclassifications | 280 | (76) | |
Disposals | 10,258 | 2,469 | |
Balance at the end of the period | (133,424) | (135,517) | (128,749) |
Accumulated depreciation / amortization / impairment | Customer relationships | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (18,667) | (13,310) | |
Foreign currency translation | (199) | (1,278) | |
Additions - amortization | (4,620) | (4,079) | |
Balance at the end of the period | (23,486) | (18,667) | (13,310) |
Accumulated depreciation / amortization / impairment | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (242,584) | (195,376) | |
Foreign currency translation | (8,968) | (10,747) | |
Changes in consolidation group | 120 | ||
Additions - amortization | (61,850) | (49,787) | |
Impairment loss | (57,937) | (7,206) | |
Reclassifications | (3,077) | (529) | |
Disposals | 88,938 | 21,061 | |
Balance at the end of the period | (285,358) | (242,584) | (195,376) |
Accumulated depreciation / amortization / impairment | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (255,659) | (239,566) | |
Foreign currency translation | (7,252) | (10,453) | |
Changes in consolidation group | (391) | ||
Additions - amortization | (33,980) | (31,709) | |
Impairment loss | (1,119) | (1,130) | |
Reclassifications | 2,653 | 562 | |
Disposals | 11,726 | 26,637 | |
Balance at the end of the period | (284,022) | (255,659) | (239,566) |
Accumulated depreciation / amortization / impairment | Non-amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (29,606) | (26,667) | |
Foreign currency translation | (1,748) | (2,202) | |
Impairment loss | (737) | ||
Balance at the end of the period | (31,354) | (29,606) | (26,667) |
Accumulated depreciation / amortization / impairment | Trade names | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (28,060) | (25,957) | |
Foreign currency translation | (1,734) | (2,103) | |
Balance at the end of the period | (29,794) | (28,060) | (25,957) |
Accumulated depreciation / amortization / impairment | Management contracts | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (1,546) | (710) | |
Foreign currency translation | (14) | (99) | |
Impairment loss | (737) | ||
Balance at the end of the period | (1,560) | (1,546) | (710) |
Accumulated depreciation / amortization / impairment | Goodwill | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (582,881) | (556,405) | |
Foreign currency translation | (30,951) | (26,476) | |
Balance at the end of the period | (613,832) | (582,881) | € (556,405) |
Hyperinflationary economies | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 3,785 | ||
Balance at the end of the period | 6,279 | 3,785 | |
Hyperinflationary economies | Amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 3,326 | ||
Balance at the end of the period | 4,406 | 3,326 | |
Hyperinflationary economies | Non-compete agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the end of the period | 95 | ||
Hyperinflationary economies | Licenses and distribution agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the end of the period | 143 | ||
Hyperinflationary economies | Construction in progress. | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the end of the period | 181 | ||
Hyperinflationary economies | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 892 | ||
Balance at the end of the period | 1,193 | 892 | |
Hyperinflationary economies | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 2,434 | ||
Balance at the end of the period | 2,794 | 2,434 | |
Hyperinflationary economies | Non-amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 459 | ||
Balance at the end of the period | 1,873 | 459 | |
Hyperinflationary economies | Management contracts | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 459 | ||
Balance at the end of the period | 1,873 | 459 | |
Hyperinflationary economies | Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | 34 | ||
Balance at the end of the period | 26,955 | 34 | |
Hyperinflationary economies | Gross carrying amount | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 7,325 | ||
Balance at the end of the period | 14,002 | 7,325 | |
Hyperinflationary economies | Gross carrying amount | Amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 6,511 | ||
Balance at the end of the period | 11,774 | 6,511 | |
Hyperinflationary economies | Gross carrying amount | Non-compete agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the end of the period | 678 | ||
Hyperinflationary economies | Gross carrying amount | Licenses and distribution agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the end of the period | 473 | ||
Hyperinflationary economies | Gross carrying amount | Construction in progress. | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the end of the period | 181 | ||
Hyperinflationary economies | Gross carrying amount | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 2,357 | ||
Balance at the end of the period | 2,859 | 2,357 | |
Hyperinflationary economies | Gross carrying amount | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 4,154 | ||
Balance at the end of the period | 7,583 | 4,154 | |
Hyperinflationary economies | Gross carrying amount | Non-amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 814 | ||
Balance at the end of the period | 2,228 | 814 | |
Hyperinflationary economies | Gross carrying amount | Management contracts | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | 814 | ||
Balance at the end of the period | 2,228 | 814 | |
Hyperinflationary economies | Gross carrying amount | Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | 33,574 | ||
Balance at the end of the period | 60,765 | 33,574 | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (3,540) | ||
Balance at the end of the period | (7,723) | (3,540) | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (3,185) | ||
Balance at the end of the period | (7,368) | (3,185) | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Non-compete agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the end of the period | (583) | ||
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Licenses and distribution agreements | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the end of the period | (330) | ||
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Internally developed intangibles | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (1,465) | ||
Balance at the end of the period | (1,666) | (1,465) | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Other | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (1,720) | ||
Balance at the end of the period | (4,789) | (1,720) | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Non-amortizable intangible assets | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (355) | ||
Balance at the end of the period | (355) | (355) | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Management contracts | |||
Reconciliation of intangible assets other than goodwill | |||
Balance at the beginning of the period | (355) | ||
Balance at the end of the period | (355) | (355) | |
Hyperinflationary economies | Accumulated depreciation / amortization / impairment | Goodwill | |||
Reconciliation of goodwill | |||
Balance at the beginning of the period | (33,540) | ||
Balance at the end of the period | € (33,810) | € (33,540) |
Intangible assets and goodwil_3
Intangible assets and goodwill - Goodwill and intangible assets with indefinite useful Life (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of geographic region | ||
Goodwill | € 15,791,181 | € 14,361,577 |
Intangible assets other than goodwill | 1,518,677 | 1,459,393 |
Goodwill | ||
Disclosure of geographic region | ||
Goodwill | 15,791,181 | 14,361,577 |
Intangible assets | ||
Disclosure of geographic region | ||
Intangible assets other than goodwill | 1,518,677 | 1,459,393 |
Management contracts | ||
Disclosure of geographic region | ||
Intangible assets other than goodwill | 1,061 | 1,091 |
Trade names | ||
Disclosure of geographic region | ||
Intangible assets other than goodwill | 252,641 | 224,851 |
Emission certificates | ||
Disclosure of geographic region | ||
Intangible assets other than goodwill | 21,759 | 661 |
North America | Goodwill | ||
Disclosure of geographic region | ||
Goodwill | 13,607,465 | 12,223,884 |
North America | Trade names | ||
Disclosure of geographic region | ||
Intangible assets other than goodwill | 252,641 | 224,851 |
EMEA | Goodwill | ||
Disclosure of geographic region | ||
Goodwill | 1,414,332 | 1,376,542 |
EMEA | Emission certificates | ||
Disclosure of geographic region | ||
Intangible assets other than goodwill | 21,759 | 661 |
Asia Pacific | Goodwill | ||
Disclosure of geographic region | ||
Goodwill | 764,009 | 756,335 |
Asia Pacific | Management contracts | ||
Disclosure of geographic region | ||
Intangible assets other than goodwill | 1,061 | 1,091 |
Latin America | Goodwill | ||
Disclosure of geographic region | ||
Goodwill | € 5,375 | € 4,816 |
Current provisions and other _3
Current provisions and other current liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Development of provisions | ||
Provisions for performance-based compensation plan for managerial staff | € 69,967 | € 87,719 |
Provisions for accrued severance payments | 34,379 | 15,847 |
Provisions for share-based plans | 12,165 | 43,466 |
Miscellaneous current liabilities | ||
Receivable credit balances | 720,585 | 645,650 |
Personnel liabilities | 707,398 | 746,743 |
Put option liabilities | 667,371 | 678,705 |
Invoices outstanding | 262,568 | 201,251 |
VAT and other (non-income) tax liabilities | 123,935 | 127,295 |
Contract liabilities | 63,273 | 428,028 |
Interest liabilities | 58,266 | 68,558 |
Deferred Income | 42,448 | 90,003 |
Legal matters, advisory and audit fees | 39,093 | 36,341 |
Bonuses, commissions | 24,010 | 22,869 |
Derivatives | 7,109 | 25,847 |
Variable payments outstanding for acquisitions | 4,794 | 9,721 |
Other liabilities | 263,498 | 250,341 |
Other current liabilities | 2,984,348 | € 3,331,352 |
Current provisions | ||
Development of provisions | ||
Provisions at beginning of period | 345,523 | |
Foreign currency translation | 14,132 | |
Changes in consolidation group | 42 | |
Utilized | (171,372) | |
Reversed | (25,884) | |
Additions | 209,135 | |
Reclassifications | (780) | |
Provisions at end of period | 370,796 | |
Current provisions | Personnel expenses | ||
Development of provisions | ||
Provisions at beginning of period | 164,629 | |
Foreign currency translation | 7,070 | |
Changes in consolidation group | 42 | |
Utilized | (80,795) | |
Reversed | (8,858) | |
Additions | 38,950 | |
Reclassifications | 13,963 | |
Provisions at end of period | 135,001 | |
Current provisions | Self-insurance programs | ||
Development of provisions | ||
Provisions at beginning of period | 119,244 | |
Foreign currency translation | 7,633 | |
Utilized | (82,503) | |
Reversed | (12,820) | |
Additions | 89,985 | |
Reclassifications | (14,743) | |
Provisions at end of period | 106,796 | |
Current provisions | Risk of lawsuit | ||
Development of provisions | ||
Provisions at beginning of period | 23,573 | |
Foreign currency translation | (1,769) | |
Utilized | (625) | |
Reversed | (702) | |
Additions | 62,188 | |
Provisions at end of period | 82,665 | |
Current provisions | Other provisions | ||
Development of provisions | ||
Provisions at beginning of period | 38,077 | |
Foreign currency translation | 1,198 | |
Utilized | (7,449) | |
Reversed | (3,504) | |
Additions | 18,012 | |
Provisions at end of period | € 46,334 |
Short-term debt (Details)
Short-term debt (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Aug. 01, 2022 | Jul. 31, 2022 | Dec. 31, 2021 |
Debt | ||||
Short-term debt from unrelated parties | € 665,013 | € 1,178,353 | ||
Short-term debt from related parties (see note 5 c) | 4,000 | 77,500 | ||
Short-term debt | 669,013 | 1,255,853 | ||
Borrowings offset under cash management system | 80,603 | 116,538 | ||
Cash and cash equivalents before offset | 1,354,390 | 1,598,193 | ||
Short-term debt from unrelated parties before offset | 745,616 | 1,294,891 | ||
Commercial paper program | ||||
Debt | ||||
Short-term debt from unrelated parties | 495,424 | 715,153 | ||
Commercial paper borrowing limit | 1,500,000 | |||
Outstanding amount | 496,500 | 715,000 | ||
Borrowings under lines of credit | ||||
Debt | ||||
Short-term debt from unrelated parties | € 169,511 | € 463,091 | ||
Average interest rate (as a percent) | 6.23% | 0.22% | ||
Other | ||||
Debt | ||||
Short-term debt from unrelated parties | € 78 | € 109 | ||
Other debt relating to fixed payments for acquisitions | ||||
Debt | ||||
Short-term debt from unrelated parties | 78 | 109 | ||
Borrowings excluding Syndicated Credit Facility | ||||
Debt | ||||
Remaining borrowing capacity | € 1,107,050 | € 477,483 | ||
Related party loan agreement | Maximum | ||||
Debt | ||||
Short term borrowing capacity from related party | € 600,000 | |||
Related party revolving facility | Maximum | ||||
Debt | ||||
Short term borrowing capacity from related party | € 600,000 |
Long-term debt (Details)
Long-term debt (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term debt | ||
Long-term debt | € 7,864,796 | € 7,314,915 |
Less current portion | (694,062) | (667,966) |
Long-term debt, less current portion | 7,170,734 | 6,646,949 |
Schuldschein loans | ||
Long-term debt | ||
Long-term debt | 224,612 | |
Bonds | ||
Long-term debt | ||
Long-term debt | 7,389,365 | 7,071,259 |
Accounts Receivable Facility | ||
Long-term debt | ||
Long-term debt | 93,725 | |
Other long-term debt | ||
Long-term debt | ||
Long-term debt | € 157,094 | € 243,656 |
Long-term debt - Schuldschein l
Long-term debt - Schuldschein loans (Details) € in Thousands | Feb. 14, 2022 EUR (€) |
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) € in Thousands, $ in Thousands | Sep. 20, 2022 EUR (€) | Jan. 31, 2022 EUR (€) | Jan. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) |
Debt | |||||||
Long-term debt | € 7,864,796 | € 7,314,915 | |||||
FMC US Finance II, Inc. 2012 | |||||||
Debt | |||||||
Face amount | $ | $ 700,000 | ||||||
Interest rate (as a percent) | 5.875% | 5.875% | |||||
Long-term debt | € 618,008 | ||||||
Fresenius Medical Care AG & Co. KGaA, 2019 | |||||||
Debt | |||||||
Face amount | € 650,000 | ||||||
Interest rate (as a percent) | 0.25% | 0.25% | |||||
Long-term debt | € 649,283 | 648,501 | |||||
FMC US Finance II, Inc. 2014 | |||||||
Debt | |||||||
Face amount | $ | $ 400,000 | ||||||
Interest rate (as a percent) | 4.75% | 4.75% | |||||
Long-term debt | € 374,354 | 352,180 | |||||
Fresenius Medical Care AG & Co. KGaA, 2018 | |||||||
Debt | |||||||
Face amount | € 500,000 | ||||||
Interest rate (as a percent) | 1.50% | 1.50% | |||||
Long-term debt | € 498,245 | 497,543 | |||||
Fresenius Medical Care AG & Co. KGaA, 2020 | |||||||
Debt | |||||||
Face amount | € 500,000 | ||||||
Interest rate (as a percent) | 1% | 1% | |||||
Long-term debt | € 497,175 | 496,348 | |||||
Fresenius Medical Care AG & Co. KGaA, 2019 | |||||||
Debt | |||||||
Face amount | € 600,000 | ||||||
Interest rate (as a percent) | 0.625% | 0.625% | |||||
Long-term debt | € 596,158 | 595,177 | |||||
FMC US Finance III, Inc. 2021 | |||||||
Debt | |||||||
Face amount | $ | $ 850,000 | ||||||
Interest rate (as a percent) | 1.875% | 1.875% | |||||
Long-term debt | € 790,926 | 743,966 | |||||
Fresenius Medical Care AG & Co. KGaA, 2022 | |||||||
Debt | |||||||
Face amount | € 750,000 | € 750,000 | |||||
Interest rate (as a percent) | 3.875% | 3.875% | 3.875% | ||||
Long-term debt | € 744,497 | ||||||
Borrowings term (in years) | 5 years | ||||||
FMC US Finance III, Inc. 2019 | |||||||
Debt | |||||||
Face amount | $ | $ 500,000 | ||||||
Interest rate (as a percent) | 3.75% | 3.75% | |||||
Long-term debt | € 462,005 | 434,094 | |||||
Fresenius Medical Care AG & Co. KGaA, 2019 | |||||||
Debt | |||||||
Face amount | € 500,000 | ||||||
Interest rate (as a percent) | 1.25% | 1.25% | |||||
Long-term debt | € 497,781 | 497,459 | |||||
Fresenius Medical Care AG & Co. KGaA, 2020 | |||||||
Debt | |||||||
Face amount | € 750,000 | ||||||
Interest rate (as a percent) | 1.50% | 1.50% | |||||
Long-term debt | € 746,332 | 745,838 | |||||
FMC US Finance III, Inc. 2020 | |||||||
Debt | |||||||
Face amount | $ | $ 1,000,000 | ||||||
Interest rate (as a percent) | 2.375% | 2.375% | |||||
Long-term debt | € 930,443 | 875,398 | |||||
FMC US Finance III, Inc. 2021 | |||||||
Debt | |||||||
Face amount | $ | $ 650,000 | ||||||
Interest rate (as a percent) | 3% | 3% | |||||
Long-term debt | € 602,166 | 566,747 | |||||
Bonds | |||||||
Debt | |||||||
Long-term debt | € 7,389,365 | € 7,071,259 | |||||
Redemption percentage at option of issuer | 100% | 100% | |||||
Percentage at which holders have right to ask repurchase | 101% | 101% | |||||
Bonds | Fresenius Medical Care US Finance II, Inc. | |||||||
Debt | |||||||
Redemption of bonds | € 532,522 | $ 700,000 | |||||
Debt Issuance Program | |||||||
Debt | |||||||
Face amount | € 10,000,000 |
Long-term debt - Accounts Recei
Long-term debt - Accounts Receivable Facility (Details) - Accounts Receivable Facility € in Thousands, $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Aug. 11, 2021 USD ($) | Aug. 11, 2021 EUR (€) |
Long-term debt | ||||||
Maximum amount available | $ 900,000 | € 843,804 | $ 900,000 | € 794,632 | $ 900,000 | € 768,049 |
Balance outstanding | 100,000 | 93,756 | ||||
Letters of credit outstanding | $ 12,532 | € 11,750 | $ 12,532 | € 11,065 |
Long-term debt - Syndicated Cre
Long-term debt - Syndicated Credit Facility and Others (Details) € in Thousands | Jun. 08, 2022 | Jul. 01, 2021 EUR (€) item | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) |
Syndicated Credit Facility | ||||
Long-term debt | ||||
Maximum amount available | € 2,000,000 | |||
Borrowings term (in years) | 5 years | |||
Number of one-year extension options | item | 2 | |||
Extension term (in years) | 1 year | 1 year | ||
Other long-term debt | ||||
Long-term debt | ||||
Fixed payment obligations for acquisitions | € 14,510 | € 22,792 | ||
Fixed payment obligations for acquisitions classified as current portion of long-term debt | € 8,255 | € 12,513 |
Non-current provisions and ot_3
Non-current provisions and other non-current liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Non-current provisions and other non-current liabilities | ||
Noncurrent provisions and other noncurrent liabilities | € 1,183,910 | € 707,563 |
Other non-current liabilities | 988,440 | 524,271 |
Development of provisions | ||
Provisions for accrued severance payments | 15,923 | 1,354 |
Provisions for share based plans | 7,089 | 18,910 |
Non-current provisions | ||
Development of provisions | ||
Provisions at beginning of period | 183,292 | |
Foreign currency translation | 8,995 | |
Changes in consolidation group | 645 | |
Utilized | (6,383) | |
Reversed | (9,482) | |
Additions | 17,623 | |
Reclassifications | 780 | |
Provisions at end of period | 195,470 | |
Non-current provisions | Self-insurance programs | ||
Development of provisions | ||
Provisions at beginning of period | 120,408 | |
Foreign currency translation | 7,262 | |
Additions | 149 | |
Reclassifications | 14,743 | |
Provisions at end of period | 142,562 | |
Non-current provisions | Personnel expenses | ||
Development of provisions | ||
Provisions at beginning of period | 29,280 | |
Foreign currency translation | 1,253 | |
Changes in consolidation group | 70 | |
Utilized | (4,715) | |
Reversed | (2,524) | |
Additions | 16,201 | |
Reclassifications | (9,196) | |
Provisions at end of period | 30,369 | |
Non-current provisions | Asset retirement obligations | ||
Development of provisions | ||
Provisions at beginning of period | 13,777 | |
Foreign currency translation | (582) | |
Utilized | (364) | |
Reversed | (1,197) | |
Additions | 956 | |
Reclassifications | 202 | |
Provisions at end of period | 12,792 | |
Non-current provisions | Interest payable related to income taxes | ||
Development of provisions | ||
Provisions at beginning of period | 8,681 | |
Foreign currency translation | 46 | |
Reversed | (5,040) | |
Additions | 23 | |
Provisions at end of period | 3,710 | |
Non-current provisions | Other provisions | ||
Development of provisions | ||
Provisions at beginning of period | 11,146 | |
Foreign currency translation | 1,016 | |
Changes in consolidation group | 575 | |
Utilized | (1,304) | |
Reversed | (721) | |
Additions | 294 | |
Reclassifications | (4,969) | |
Provisions at end of period | 6,037 | |
Put option liabilities | ||
Non-current provisions and other non-current liabilities | ||
Other non-current liabilities | 801,147 | 313,718 |
Accrued labour expenses | ||
Non-current provisions and other non-current liabilities | ||
Other non-current liabilities | 105,909 | 112,371 |
Variable payments outstanding for acquisitions | ||
Non-current provisions and other non-current liabilities | ||
Other non-current liabilities | 33,052 | 37,970 |
1 - 3 years | ||
Non-current provisions and other non-current liabilities | ||
Noncurrent provisions and other noncurrent liabilities | 988,624 | 405,140 |
3 - 5 years | ||
Non-current provisions and other non-current liabilities | ||
Noncurrent provisions and other noncurrent liabilities | 86,464 | 177,882 |
Over 5 Years | ||
Non-current provisions and other non-current liabilities | ||
Noncurrent provisions and other noncurrent liabilities | € 108,822 | € 124,541 |
Employee benefit plans - Define
Employee benefit plans - Defined benefit pension plans (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) plan | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | |
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 5 | ||
Defined benefit liability (asset) | € 528,222 | € 794,646 | |
FMCH | |||
Defined benefit pension plans | |||
Company contribution to plan | 1,127 | ||
Expected funding for next fiscal year | 1,153 | ||
United States, France and Germany | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | 482,755 | 749,376 | |
United States, France and Germany | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | 742,216 | 1,084,546 | € 996,237 |
United States | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 71,790 | 82,823 | |
United States | Funded plan | |||
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 1 | ||
United States | Funded plan | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 331,158 | 417,889 | |
Germany | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 394,432 | 649,270 | |
Germany | Unfunded plan | |||
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 1 | ||
Germany | Unfunded plan | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 394,432 | 649,270 | |
France | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 16,533 | 17,283 | |
France | Funded plan | |||
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 1 | ||
France | Funded plan | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 5,926 | 6,459 | |
France | Unfunded plan | |||
Defined benefit pension plans | |||
Number of defined benefit plans | plan | 2 | ||
France | Unfunded plan | Benefit obligation | |||
Defined benefit pension plans | |||
Defined benefit liability (asset) | € 10,700 | € 10,928 |
Employee benefit plans - Net pe
Employee benefit plans - Net pension liability (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net defined benefit liability and asset | ||
Balance at beginning of year | € 794,646 | |
Balance at end of year | € 528,222 | € 794,646 |
Weighted average duration of defined benefit obligation | 15 years | 19 years |
United States, France and Germany | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | € 749,376 | |
Balance at end of year | 482,755 | € 749,376 |
Countries other than US, France, and Germany | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | 45,270 | |
Balance at end of year | 45,467 | 45,270 |
Benefit obligation | United States, France and Germany | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | 1,084,546 | 996,237 |
Foreign currency translation gains/losses | 27,307 | 32,169 |
Current service cost | 42,367 | 37,409 |
Past service cost | (512) | 988 |
Interest expense (income) | 22,466 | 20,298 |
Transfer of plan participants | 219 | (247) |
Actuarial (gains) losses arising from changes in financial assumptions | (405,106) | 26,504 |
Actuarial (gains) losses arising from changes in demographic assumptions | 756 | 1,540 |
Actuarial (gains) losses arising from experience adjustments | 3,298 | (3,150) |
Remeasurements | (401,052) | 24,894 |
Benefits paid | (33,125) | (26,828) |
Settlements | (374) | |
Balance at end of year | 742,216 | 1,084,546 |
Plan assets | United States, France and Germany | ||
Net defined benefit liability and asset | ||
Balance at beginning of year | (335,170) | (311,073) |
Foreign currency translation gains/losses | (21,974) | (25,869) |
Interest expense (income) | (10,539) | (9,504) |
Actuarial (gains) losses arising from experience adjustments | 82,457 | (9,113) |
Actual return on plan assets | 71,918 | (18,617) |
Employer contributions | (1,127) | (1,005) |
Benefits paid | 26,892 | 21,394 |
Balance at end of year | € (259,461) | € (335,170) |
Employee benefit plans - Pensio
Employee benefit plans - Pension plan assets and liabilities (Details) - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined benefit pension plans | ||
Net defined benefit liability (asset) | € 528,222 | € 794,646 |
Non-current pension liabilities | 514,219 | € 782,622 |
Increase (decrease) in pension liability | € (268,403) | |
Interest rate | 4.86% | 2.02% |
United States, France and Germany | ||
Defined benefit pension plans | ||
Net defined benefit liability (asset) | € 482,755 | € 749,376 |
Current pension liabilities | 9,193 | 8,085 |
Non-current pension liabilities | 473,562 | 741,291 |
United States | ||
Defined benefit pension plans | ||
Net defined benefit liability (asset) | € 71,790 | 82,823 |
Beneficiary percentage | 63% | |
Germany | ||
Defined benefit pension plans | ||
Net defined benefit liability (asset) | € 394,432 | € 649,270 |
Interest rate | 4.30% | 1.40% |
Beneficiary percentage | 29% | |
France | ||
Defined benefit pension plans | ||
Net defined benefit liability (asset) | € 16,533 | € 17,283 |
Beneficiary percentage | 8% | |
Countries other than US, France, and Germany | ||
Defined benefit pension plans | ||
Net defined benefit liability (asset) | € 45,467 | 45,270 |
Current pension liabilities | 4,810 | 4,324 |
Non-current pension liabilities | € 40,657 | 41,331 |
Pension asset | € (385) |
Employee benefit plans - Weight
Employee benefit plans - Weighted average assumptions for benefit obligations (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Employee benefit plans | ||
Discount rate (as a percent) | 4.86% | 2.02% |
Rate of compensation increase (as a percent) | 3.22% | 3.17% |
Rate of pension increase (as a percent) | 2% | 1.75% |
Employee benefit plans - Sensit
Employee benefit plans - Sensitivity analysis (Details) € in Thousands | Dec. 31, 2022 EUR (€) |
Sensitivity analysis | |
Increase in actuarial assumption (as a percent) | 0.50% |
Decrease in actuarial assumption (as a percent) | 0.50% |
Discount rate | |
Sensitivity analysis | |
Increase (decrease) in pension liability due to increase in assumption | € (51,498) |
Increase (decrease) in pension liability due to decrease in assumption | 58,360 |
Rate of compensation increase | |
Sensitivity analysis | |
Increase (decrease) in pension liability due to increase in assumption | 8,447 |
Increase (decrease) in pension liability due to decrease in assumption | (8,289) |
Rate of pension increase | |
Sensitivity analysis | |
Increase (decrease) in pension liability due to increase in assumption | 24,819 |
Increase (decrease) in pension liability due to decrease in assumption | € (22,605) |
Mortality rate | |
Sensitivity analysis | |
Increase in actuarial assumption (as a percent) | 10% |
Decrease in actuarial assumption (as a percent) | 10% |
Increase (decrease) in pension liability due to increase in assumption | € (17,215) |
Increase (decrease) in pension liability due to decrease in assumption | € 19,187 |
Employee benefit plans - Compon
Employee benefit plans - Components of net periodic benefit cost (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee benefit plans | |||
Service cost | € 42,367 | € 37,409 | € 40,213 |
Net interest cost | 11,927 | 10,794 | 10,452 |
Prior service cost | (512) | 988 | (244) |
(Gains) losses from settlements | (374) | (331) | |
Net periodic benefit costs | € 53,782 | € 48,817 | € 50,090 |
Employee benefit plans - Weig_2
Employee benefit plans - Weighted average assumptions for periodic benefit cost (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee benefit plans | |||
Discount rate (as a percent) | 2.02% | 2.02% | 2.35% |
Rate of compensation increase (as a percent) | 3.17% | 3.17% | 3.18% |
Rate of pension increase (as a percent) | 1.75% | 1.46% | 1.70% |
Employee benefit plans - Defi_2
Employee benefit plans - Defined benefit pension plans - cash outflows (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined benefit pension plans | ||
Estimated future benefit payments | € 390,431 | € 352,908 |
Less than 1 year | ||
Defined benefit pension plans | ||
Estimated future benefit payments | 30,996 | 28,191 |
1 - 3 years | ||
Defined benefit pension plans | ||
Estimated future benefit payments | 67,545 | 60,421 |
3 - 5 years | ||
Defined benefit pension plans | ||
Estimated future benefit payments | 75,674 | 67,795 |
5 - 10 years | ||
Defined benefit pension plans | ||
Estimated future benefit payments | € 216,216 | € 196,501 |
Employee benefit plans - Plan A
Employee benefit plans - Plan Assets (Details) - Plan assets - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair values | ||
Plan assets | € 259,461 | € 335,170 |
Equity investments | ||
Fair values | ||
Index funds | 73,252 | 94,384 |
Fixed income investments | ||
Fair values | ||
Government securities | 3,996 | 9,221 |
Corporate bonds | 169,634 | 211,992 |
Other bonds | 9,995 | 15,529 |
U.S. treasury money market funds | 2,491 | 3,940 |
Other types of investments | ||
Fair values | ||
Cash, money market and mutual funds | 93 | 104 |
Level 1 | ||
Fair values | ||
Plan assets | 14,961 | 22,858 |
Level 1 | Equity investments | ||
Fair values | ||
Index funds | 8,588 | 9,850 |
Level 1 | Fixed income investments | ||
Fair values | ||
Government securities | 3,789 | 8,964 |
U.S. treasury money market funds | 2,491 | 3,940 |
Level 1 | Other types of investments | ||
Fair values | ||
Cash, money market and mutual funds | 93 | 104 |
Level 2 | ||
Fair values | ||
Plan assets | 238,402 | 304,096 |
Level 2 | Equity investments | ||
Fair values | ||
Index funds | 64,664 | 84,534 |
Level 2 | Fixed income investments | ||
Fair values | ||
Government securities | 207 | 257 |
Corporate bonds | 169,634 | 211,992 |
Other bonds | 3,897 | 7,313 |
Level 3 | ||
Fair values | ||
Plan assets | 6,098 | 8,216 |
Level 3 | Fixed income investments | ||
Fair values | ||
Other bonds | € 6,098 | € 8,216 |
Employee benefit plans - Plan i
Employee benefit plans - Plan investment policy (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefit plans | |
Preferred investment mix, long-term growth and income (as a percent) | 99% |
Preferred investment mix, cash and cash equivalents (as a percent) | 1% |
Target investment allocation for equity (as a percent) | 26% |
Target investment allocation for fixed income investments (as a percent) | 74% |
Minimum time horizon for invested funds | 5 years |
Employee benefit plans - Defi_3
Employee benefit plans - Defined contribution plans (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Y | Dec. 31, 2022 EUR (€) Y | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | |
Plan 401(k) | ||||
Defined contribution plans | ||||
Maximum annual contributions as a percentage of gross pay (as a percent) | 75% | 75% | ||
Maximum annual contributions | $ 22,500 | € 21,100 | ||
Minimum age in which individual qualified for greater contribution amount | Y | 50 | 50 | ||
Maximum annual contributions if over age 50 | $ 30,000 | € 28,100 | ||
Percentage of employee's deposit that Company will match | 50% | 50% | ||
Maximum percentage of employee's pay that Company will match | 3% | 3% | ||
Defined contribution expense | € 77,329,000 | € 67,612,000 | € 64,855,000 | |
State plan | ||||
Defined contribution plans | ||||
Defined contribution expense | € 30,272,000 | € 30,370,000 | € 28,096,000 |
Shareholders' equity - Capital
Shareholders' equity - Capital stock (Details) - € / shares | 12 Months Ended | |||||||||
Dec. 31, 2022 | Jan. 04, 2023 | Jan. 03, 2023 | Dec. 19, 2022 | Dec. 13, 2022 | Oct. 24, 2022 | Jul. 12, 2022 | Mar. 14, 2022 | Dec. 31, 2021 | Feb. 08, 2011 | |
Shareholders' equity | ||||||||||
Number of shares issued | 293,413,449 | 293,004,339 | ||||||||
Nominal value per share | € 1 | € 1 | ||||||||
Vote to create Authorized Capital (as a percent) | 75% | |||||||||
Period that General Partner and its management board may issue new shares | 5 years | |||||||||
Maximum increase in Authorized Capital, as a percent to issued capital | 50% | |||||||||
Vote to create Conditional Capital (as a percent) | 75% | |||||||||
Maximum increase in Conditional Capital, as a percent to issued capital | 50% | |||||||||
Maximum increase in Conditional Capital for purpose of issuing shares to management and employees, as a percent to issued capital | 10% | |||||||||
General Partner | ||||||||||
Shareholders' equity | ||||||||||
Annual fee, as percent of General Partner's share capital | 4% | |||||||||
Fresenius SE | ||||||||||
Shareholders' equity | ||||||||||
Voting interest held (as a percent) | 32.20% | 35.74% | ||||||||
BlackRock, Inc. | ||||||||||
Shareholders' equity | ||||||||||
Voting interest held (as a percent) | 2.95% | |||||||||
Voting interest held through instruments (as a percent) | 0.77% | |||||||||
Dodge & Cox International Stock Fund | ||||||||||
Shareholders' equity | ||||||||||
Voting interest held (as a percent) | 3% | |||||||||
Harris Associates L.P. | ||||||||||
Shareholders' equity | ||||||||||
Voting interest held (as a percent) | 3% | |||||||||
Dodge & Cox, San Francisco | ||||||||||
Shareholders' equity | ||||||||||
Voting interest held (as a percent) | 5.03% | |||||||||
Richard Pzena | ||||||||||
Shareholders' equity | ||||||||||
Voting interest held (as a percent) | 5.20% | |||||||||
Artisan Partners Asset Management Inc. | ||||||||||
Shareholders' equity | ||||||||||
Voting interest held (as a percent) | 2.99% | |||||||||
Harris Associates Investment Trust | ||||||||||
Shareholders' equity | ||||||||||
Voting interest held (as a percent) | 2.98% |
Shareholders' equity - Authoriz
Shareholders' equity - Authorized capital (Details) € in Thousands | Aug. 27, 2020 EUR (€) item |
Authorized capital 2020/I | |
Shareholders' equity | |
Minimum number of occasions to increase share capital | item | 1 |
Maximum increase in authorized capital | € | € 35,000 |
Authorized capital 2020/II | |
Shareholders' equity | |
Minimum number of occasions to increase share capital | item | 1 |
Maximum increase in authorized capital | € | € 25,000 |
Maximum increase in capital for exclusion of subscription rights (as a percent) | 10% |
Shareholders' equity - Conditio
Shareholders' equity - Conditional capital (Details) € / shares in Units, € in Thousands, shares in Millions | 12 Months Ended | |||
May 12, 2011 EUR (€) € / shares shares | Dec. 31, 2022 EUR (€) Options € / shares | Dec. 31, 2021 EUR (€) Options € / shares | Dec. 31, 2020 EUR (€) Options | |
Shareholders' equity | ||||
Nominal value per share | € / shares | € 1 | € 1 | ||
Outstanding number of options | 2,471,116 | 3,013,309 | 3,201,000 | |
Outstanding options weighted average remaining contractual life | 6 months 29 days | 1 year 4 months 28 days | ||
Exercised | 409,000 | 128,000 | ||
Increase in capital stock from exercise of stock options | € | € 20,405 | € 5,590 | € 12,711 | |
2011 SOP | ||||
Shareholders' equity | ||||
Conditional increase in capital | € | € 12,000 | |||
Conditional increase in capital (in shares) | shares | 12 | |||
Nominal value per share | € / shares | € 1 | |||
Outstanding number of options | 2,471,116 | |||
Outstanding options weighted average remaining contractual life | 6 months 29 days | |||
Exercised | 409,110 | |||
Conditional capital | € | € 8,957 | |||
Conditional Capital Plan | ||||
Shareholders' equity | ||||
Exercised | 409,110 | 127,769 | ||
Increase in capital stock from exercise of stock options | € | € 409 | € 127 |
Shareholders equity - Treasury
Shareholders equity - Treasury stock (Details) - EUR (€) € / shares in Units, € in Thousands | 1 Months Ended | 4 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||||
May 20, 2021 | Apr. 02, 2020 | Jun. 14, 2019 | May 12, 2016 | Dec. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | Jan. 31, 2020 | Apr. 30, 2020 | Apr. 02, 2020 | Dec. 31, 2020 | Dec. 31, 2013 | Dec. 31, 2019 | |
Treasury stock | ||||||||||||||
Maximum purchase of treasury shares, as a percent to registered capital | 10% | 10% | ||||||||||||
Maximum value of share capital authorized to be repurchased | € 29,289 | € 30,537 | ||||||||||||
Value of shares repurchased | € 365,988 | |||||||||||||
Treasury Stock | ||||||||||||||
Treasury stock | ||||||||||||||
Maximum number of treasury shares authorized to be purchased | 14,879,979 | 12,000,000 | ||||||||||||
Maximum value of treasury shares authorized to be purchased | € 660,000 | |||||||||||||
Average price per share, at date | € 60.66 | |||||||||||||
Average price paid per repurchased share, during period | € 63.07 | € 63.05 | € 249.10 | € 84.37 | € 64.35 | € 63.50 | ||||||||
Average price per retired share, during period | € 62.44 | |||||||||||||
Number of treasury shares held | 6,107,629 | |||||||||||||
Number of shares repurchased | 694,813 | 4,842,943 | 25,319 | 124,398 | 5,687,473 | 10,795,151 | 5,687,473 | 999,951 | ||||||
Number of shares retired | 11,795,102 | 11,795,102 | ||||||||||||
Value of treasury shares held | € 370,502 | |||||||||||||
Value of shares repurchased | € 43,824 | € 305,362 | € 6,307 | € 10,495 | € 365,988 | € 365,988 | ||||||||
Value of shares retired | € 736,490 | € 736,490 |
Shareholders' equity - Addition
Shareholders' equity - Additional paid-in capital (Details) - Aug. 24, 2022 € in Thousands, $ in Thousands | USD ($) | EUR (€) |
Shareholders' equity | ||
Increase in additional paid-in capital resulting from InterWell Health business combination | $ 41,076 | € 41,348 |
Shareholders' equity - Dividend
Shareholders' equity - Dividends (Details) - EUR (€) € / shares in Units, € in Thousands | 12 Months Ended | |||||
May 17, 2022 | May 26, 2021 | Sep. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends | ||||||
Total dividends paid | € 395,556 | € 392,455 | € 351,170 | € 395,556 | € 392,455 | € 351,170 |
Dividends paid per share | € 1.35 | € 1.34 | € 1.20 | |||
Proposed dividend per share | € 1.12 | |||||
Expected dividend payment | € 328,623 |
Capital management (Details)
Capital management (Details) - EUR (€) € in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capital management | ||||
Total equity including noncontrolling interests | € 15,449,179 | € 13,979,037 | € 12,331,310 | € 13,227,237 |
Debt and lease liabilities | 13,212,572 | 13,320,149 | ||
Total assets | € 35,754,114 | € 34,366,558 | € 31,689,036 | |
Debt and lease liabilities in % of total assets | 37% | 38.80% | ||
Total equity in % of total assets (equity ratio) | 43.20% | 40.70% |
Earnings per share (Details)
Earnings per share (Details) - EUR (€) € / shares in Units, € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income attributable to shareholders of FMC AG & Co. KGaA | € 673,405 | € 969,308 | € 1,164,377 |
Denominators: | |||
Weighted average number of shares outstanding | 293,246,430 | 292,944,732 | 294,055,525 |
Potentially dilutive shares | 120,442 | 223,429 | |
Basic earnings per share | € 2.30 | € 3.31 | € 3.96 |
Diluted earnings per share | € 2.30 | € 3.31 | € 3.96 |
Share-based plans (Details)
Share-based plans (Details) | 12 Months Ended | ||||||
Dec. 31, 2022 EUR (€) EquityInstruments item | Dec. 31, 2021 EUR (€) EquityInstruments | Dec. 31, 2020 EUR (€) EquityInstruments | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based plans | |||||||
Percentage of relevant base salary for initial value | 135% | ||||||
Multiplier of relevant base salary for initial value | item | 1.35 | ||||||
Performance period (in years) | 3 years | ||||||
Year 2016-2021 | |||||||
Share-based plans | |||||||
Number of performance targets | item | 3 | ||||||
Annual target achievement level of 0% | Year 2020-2021 | |||||||
Share-based plans | |||||||
Annual target achievement level (as a percent) | 0% | ||||||
Revenue Growth target rate (as a percent) | 1% | ||||||
Net Income Growth target rate (as a percent) | 0% | ||||||
ROIC | 5.50% | ||||||
Annual target achievement level of 0% | Years 2016-2019 | |||||||
Share-based plans | |||||||
Annual target achievement level (as a percent) | 0% | ||||||
Revenue Growth target rate (as a percent) | 0% | ||||||
Net Income Growth target rate (as a percent) | 0% | ||||||
Decrease from target ROIC to drop to level | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 |
Annual target achievement level of 100% | Year 2020-2021 | |||||||
Share-based plans | |||||||
Annual target achievement level (as a percent) | 100% | ||||||
Revenue Growth target rate (as a percent) | 6% | ||||||
Net Income Growth target rate (as a percent) | 5% | ||||||
ROIC | 6% | ||||||
Annual target achievement level of 100% | Years 2016-2019 | |||||||
Share-based plans | |||||||
Annual target achievement level (as a percent) | 100% | ||||||
Revenue Growth target rate (as a percent) | 7% | ||||||
Net Income Growth target rate (as a percent) | 7% | ||||||
ROIC | 8.10% | 8.10% | 7.90% | 7.70% | 7.50% | 7.30% | |
Annual target achievement level of 200% | Year 2020-2021 | |||||||
Share-based plans | |||||||
Annual target achievement level (as a percent) | 200% | ||||||
Revenue Growth target rate (as a percent) | 11% | ||||||
Net Income Growth target rate (as a percent) | 10% | ||||||
ROIC | 6.50% | ||||||
Annual target achievement level of 200% | Years 2016-2019 | |||||||
Share-based plans | |||||||
Annual target achievement level (as a percent) | 200% | ||||||
Revenue Growth target rate (as a percent) | 16% | ||||||
Net Income Growth target rate (as a percent) | 14% | ||||||
Increase over target ROIC to reach level | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 | 0.002 |
MB LTIP 2020 | |||||||
Share-based plans | |||||||
Number of shares allocated | EquityInstruments | 241,835 | 192,446 | 159,607 | ||||
Weighted average fair value | € 28.37 | € 54.69 | € 64.20 | ||||
Total fair value of shares granted | € 6,861,000 | € 10,525,000 | € 10,247,000 | ||||
Vesting period | 3 years | ||||||
Period considered for calculation of average share price | 30 days | ||||||
Grant value cap (as a percent) | 400% | ||||||
Period shares must be held | 1 year | ||||||
LTIP 2022+ | |||||||
Share-based plans | |||||||
Number of shares allocated | EquityInstruments | 1,737,591 | ||||||
Weighted average fair value | € 27.33 | ||||||
Total fair value of shares granted | € 47,488,000 | ||||||
Performance period (in years) | 3 years | ||||||
Number of performance targets | item | 3 | ||||||
Weight of each performance target | 33.33% | ||||||
Weight of annual target achievement for ROIC | 33.33% | ||||||
Vesting period | 3 years | ||||||
Period considered for calculation of average share price | 30 days | ||||||
Grant value cap (as a percent) | 400% | ||||||
LTIP 2022+ | Maximum | |||||||
Share-based plans | |||||||
Annual target achievement level (as a percent) | 200% | ||||||
LTIP 2019 | |||||||
Share-based plans | |||||||
Number of shares allocated | EquityInstruments | 935,814 | 800,165 | |||||
Weighted average fair value | € 53.27 | € 64.06 | |||||
Total fair value of shares granted | € 49,851,000 | € 51,259,000 | |||||
Vesting period | 3 years | ||||||
Period considered for calculation of average share price | 30 days | ||||||
Grant value cap (as a percent) | 400% | ||||||
LTIP 2019 | Year 2019 | |||||||
Share-based plans | |||||||
Increase in overall target achievement level, if GEP -II target rate is 100% | 20% | ||||||
Increase in overall target achievement level if Free Cash Flow target achievement 200% | 20% | ||||||
MB LTIP 2019 | |||||||
Share-based plans | |||||||
Vesting period | 4 years | ||||||
Period considered for calculation of average share price | 30 days | ||||||
NxStage LTIP | |||||||
Share-based plans | |||||||
Period considered for calculation of average share price | 30 days | ||||||
LTIP 2016 | |||||||
Share-based plans | |||||||
Vesting period | 4 years | ||||||
Period considered for calculation of average share price | 30 days |
Share-based plans - Long-term i
Share-based plans - Long-term incentive program 2011 (Details) - EUR (€) € / shares in Units, € in Thousands, shares in Millions | May 12, 2011 | Dec. 31, 2022 | Dec. 31, 2021 |
Share-based payment transaction | |||
Nominal value per share | € 1 | € 1 | |
LTIP 2011 | |||
Share-based payment transaction | |||
Vesting period | 4 years | ||
2011 SOP | |||
Share-based payment transaction | |||
Vesting period | 4 years | ||
Conditional increase in capital | € 12,000 | ||
Conditional increase in capital (in shares) | 12 | ||
Nominal value per share | € 1 | ||
Award terms | 8 years | ||
Exercise price period basis | 30 days | ||
2011 Phantom stock awards | |||
Share-based payment transaction | |||
Vesting period | 4 years | ||
Award terms | 5 years |
Share-based plans - Information
Share-based plans - Information on Holdings under Share-based Plans (Details) | Dec. 31, 2022 Options shares | Dec. 31, 2021 Options shares | Dec. 31, 2020 Options |
Share-based plans | |||
Number of stock options held | Options | 2,471,116 | 3,013,309 | 3,201,000 |
LTIP 2022+ | |||
Share-based plans | |||
Number of performance shares held | 1,676,091 | ||
LTIP 2022+ | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 1,676,091 | ||
MB LTIP 2020 | |||
Share-based plans | |||
Number of performance shares held | 572,542 | 352,053 | |
MB LTIP 2020 | Management Board | |||
Share-based plans | |||
Number of performance shares held | 409,511 | 352,053 | |
MB LTIP 2020 | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 163,031 | ||
LTIP 2019 | |||
Share-based plans | |||
Number of performance shares held | 1,525,120 | 2,408,518 | |
LTIP 2019 | Management Board | |||
Share-based plans | |||
Number of performance shares held | 8,869 | ||
LTIP 2019 | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 1,525,120 | 2,399,649 | |
MB LTIP 2019 | |||
Share-based plans | |||
Number of performance shares held | 43,698 | 114,999 | |
MB LTIP 2019 | Management Board | |||
Share-based plans | |||
Number of performance shares held | 24,326 | 102,435 | |
MB LTIP 2019 | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 19,372 | 12,564 | |
NxStage LTIP | |||
Share-based plans | |||
Number of performance shares held | 32,054 | ||
NxStage LTIP | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 32,054 | ||
LTIP 2016 | |||
Share-based plans | |||
Number of performance shares held | 422,683 | ||
LTIP 2016 | Management Board | |||
Share-based plans | |||
Number of performance shares held | 56,624 | ||
LTIP 2016 | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of performance shares held | 366,059 | ||
2011 SOP | |||
Share-based plans | |||
Number of stock options held | Options | 2,471,116 | ||
2011 SOP | Management Board | |||
Share-based plans | |||
Number of stock options held | Options | 209,400 | 455,970 | |
2011 SOP | Plan participants other than the members of the Management Board | |||
Share-based plans | |||
Number of stock options held | Options | 2,261,716 | 2,557,339 |
Share-based plans - Stock optio
Share-based plans - Stock options activity (Details) | 12 Months Ended | |
Dec. 31, 2022 Options € / shares | Dec. 31, 2021 Options € / shares | |
Options | ||
Options outstanding balance at the beginning of the year | Options | 3,013,309 | 3,201,000 |
Exercised | Options | 409,000 | 128,000 |
Expired | Options | 133,000 | 60,000 |
Options outstanding balance at the end of the year | Options | 2,471,116 | 3,013,309 |
Weighted average exercise price | ||
Weighted average exercise price at the beginning of the year | € 72.44 | € 71.50 |
Exercised | 49.93 | 49.83 |
Expired | 56.55 | 70.60 |
Weighted average exercise price at the end of the year | 77.02 | 72.44 |
Average market price of options exercised during year | € 54 | € 65.92 |
Share-based plans - Stock Opt_2
Share-based plans - Stock Options Exercise Price Range (Details) | 12 Months Ended | ||
Dec. 31, 2022 Options € / shares | Dec. 31, 2021 Options € / shares | Dec. 31, 2020 Options € / shares | |
Ranges of exercise prices | |||
Outstanding number of options | Options | 2,471,116 | 3,013,309 | 3,201,000 |
Outstanding options weighted average remaining contractual life | 6 months 29 days | 1 year 4 months 28 days | |
Outstanding options weighted average exercise price in Euro | € 77.02 | € 72.44 | € 71.50 |
Exercisable number of options | Options | 2,471,116 | 3,013,309 | |
Exercisable options weighted average exercise price in Euro | € 77.02 | € 72.44 | |
45.01-50.00 | |||
Ranges of exercise prices | |||
Outstanding number of options | Options | 488,745 | ||
Outstanding options weighted average remaining contractual life | 6 months 25 days | ||
Outstanding options weighted average exercise price in Euro | € 49.93 | ||
Exercisable number of options | Options | 488,745 | ||
Exercisable options weighted average exercise price in Euro | € 49.93 | ||
45.01-50.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 45.01 | 45.01 | |
45.01-50.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 50 | 50 | |
50.01-55.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 50.01 | 50.01 | |
50.01-55.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 55 | € 55 | |
55.01-60.00 | |||
Ranges of exercise prices | |||
Outstanding number of options | Options | 31,080 | ||
Outstanding options weighted average remaining contractual life | 11 months 1 day | ||
Outstanding options weighted average exercise price in Euro | € 58.63 | ||
Exercisable number of options | Options | 31,080 | ||
Exercisable options weighted average exercise price in Euro | € 58.63 | ||
55.01-60.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 55.01 | 55.01 | |
55.01-60.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 60 | 60 | |
60.01-65.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 60.01 | 60.01 | |
60.01-65.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 65 | 65 | |
65.01-70.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 65.01 | 65.01 | |
65.01-70.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 70 | 70 | |
70.01-75.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 70.01 | 70.01 | |
70.01-75.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | € 75 | € 75 | |
75.01-80.00 | |||
Ranges of exercise prices | |||
Outstanding number of options | Options | 2,471,116 | 2,493,484 | |
Outstanding options weighted average remaining contractual life | 6 months 29 days | 1 year 6 months 29 days | |
Outstanding options weighted average exercise price in Euro | € 77.02 | € 77.02 | |
Exercisable number of options | Options | 2,471,116 | 2,493,484 | |
Exercisable options weighted average exercise price in Euro | € 77.02 | € 77.02 | |
75.01-80.00 | Minimum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | 75.01 | 75.01 | |
75.01-80.00 | Maximum | |||
Ranges of exercise prices | |||
Range of exercise prices in Euro | € 80 | € 80 |
Share-based Plans - Stock Opt_3
Share-based Plans - Stock Options Other Disclosure (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based payment transaction | |||
Proceeds from exercise of stock options | € 20,153 | € 6,511 | € 12,653 |
Stock Options | |||
Share-based payment transaction | |||
Proceeds from exercise of stock options | 20,427 | 6,367 | 12,445 |
Intrinsic value of stock options exercised | € 1,665 | € 2,056 | € 4,402 |
Share-based plans - Compensatio
Share-based plans - Compensation Expense Related to Cash-Settled Plans (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
LTIP 2022+ | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | € 3,765 | ||
MB LTIP 2020 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | (629) | € 2,112 | € 2,115 |
LTIP 2019 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | (4,416) | 21,761 | 13,689 |
MB LTIP 2019 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | (358) | 299 | 820 |
NxStage LTIP | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | (758) | 296 | 513 |
LTIP 2016 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | € (3,475) | € 3,826 | 21,864 |
LTIP 2011 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense from cash-settled share-based payment transactions | € 1,894 |
Leases - Leasing in the consoli
Leases - Leasing in the consolidated statements of income (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Depreciation on right-of-use assets | € 746,471 | € 690,476 | € 703,999 |
Impairments on right-of-use assets | 27,646 | 18,696 | 3,496 |
Expenses relating to short-term leases | 52,420 | 44,923 | 49,532 |
Expenses relating to leases of low-value assets | 17,421 | 23,177 | 27,359 |
Expenses relating to variable lease payments | 13,803 | 12,158 | 12,442 |
Income from subleasing right-of-use assets | 3,340 | 3,119 | 4,165 |
Interest expense on lease liabilities | € 151,317 | € 143,160 | € 159,148 |
Leases - Leases in the consolid
Leases - Leases in the consolidated balance sheets (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | € 4,316,440 | ||
Additions - depreciation | (746,471) | € (690,476) | € (703,999) |
Impairment loss | (27,646) | (18,696) | (3,496) |
Balance at the end of the period | 4,187,126 | 4,316,440 | |
Land | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | 26,750 | ||
Balance at the end of the period | 24,139 | 26,750 | |
Buildings and improvements | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | 4,148,431 | ||
Balance at the end of the period | 4,076,770 | 4,148,431 | |
Machinery and equipment | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | 141,259 | ||
Balance at the end of the period | 86,217 | 141,259 | |
Gross carrying amount | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | 6,380,464 | 5,443,197 | |
Foreign currency translation | 283,232 | 375,356 | |
Changes in consolidation group | (15,928) | 40,241 | |
Additions | 531,516 | 651,396 | |
Reclassifications | (47,869) | (47,709) | |
Disposals | (151,229) | (82,017) | |
Balance at the end of the period | 6,980,186 | 6,380,464 | 5,443,197 |
Gross carrying amount | Land | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | 38,094 | 34,510 | |
Foreign currency translation | 283 | 782 | |
Changes in consolidation group | 20 | ||
Additions | 1,922 | 4,917 | |
Disposals | (1,419) | (2,135) | |
Balance at the end of the period | 38,880 | 38,094 | 34,510 |
Gross carrying amount | Buildings and improvements | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | 5,952,476 | 5,017,785 | |
Foreign currency translation | 261,708 | 346,627 | |
Changes in consolidation group | (15,928) | 40,808 | |
Additions | 492,086 | 614,918 | |
Reclassifications | (4,122) | 1,266 | |
Disposals | (75,814) | (68,928) | |
Balance at the end of the period | 6,610,406 | 5,952,476 | 5,017,785 |
Gross carrying amount | Machinery and equipment | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | 389,894 | 390,902 | |
Foreign currency translation | 21,241 | 27,947 | |
Changes in consolidation group | (587) | ||
Additions | 37,508 | 31,561 | |
Reclassifications | (43,747) | (48,975) | |
Disposals | (73,996) | (10,954) | |
Balance at the end of the period | 330,900 | 389,894 | 390,902 |
Accumulated depreciation / amortization / impairment | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | (2,064,024) | (1,313,309) | |
Foreign currency translation | (84,966) | (109,435) | |
Changes in consolidation group | 6,300 | 2,378 | |
Additions - depreciation | (746,471) | (690,476) | |
Impairment loss | (27,646) | (18,696) | |
Reclassifications | 3,214 | 15,243 | |
Disposals | 120,533 | 50,271 | |
Balance at the end of the period | (2,793,060) | (2,064,024) | (1,313,309) |
Accumulated depreciation / amortization / impairment | Land | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | (11,344) | (8,106) | |
Foreign currency translation | (5) | (222) | |
Changes in consolidation group | (6) | ||
Additions - depreciation | (4,374) | (4,149) | |
Impairment loss | (217) | (3) | |
Disposals | 1,199 | 1,142 | |
Balance at the end of the period | (14,741) | (11,344) | (8,106) |
Accumulated depreciation / amortization / impairment | Buildings and improvements | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | (1,804,045) | (1,120,019) | |
Foreign currency translation | (71,885) | (93,757) | |
Changes in consolidation group | 6,300 | 2,170 | |
Additions - depreciation | (684,277) | (613,994) | |
Impairment loss | (27,249) | (17,621) | |
Reclassifications | (251) | (477) | |
Disposals | 47,771 | 39,653 | |
Balance at the end of the period | (2,533,636) | (1,804,045) | (1,120,019) |
Accumulated depreciation / amortization / impairment | Machinery and equipment | |||
Leases in the consolidated balance sheets | |||
Balance at the beginning of the period | (248,635) | (185,184) | |
Foreign currency translation | (13,076) | (15,456) | |
Changes in consolidation group | 214 | ||
Additions - depreciation | (57,820) | (72,333) | |
Impairment loss | (180) | (1,072) | |
Reclassifications | 3,465 | 15,720 | |
Disposals | 71,563 | 9,476 | |
Balance at the end of the period | € (244,683) | € (248,635) | € (185,184) |
Leases - Leasing in the conso_2
Leases - Leasing in the consolidated statements of cash flows (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Cash outflow for leases | € 1,013,913 | € 921,988 | € 951,066 |
Future cash outflows from leases that have not yet begun | 133,367 | 118,929 | 123,679 |
Potential future cash outflows resulting from purchase options, not reflected in the measurement of the lease liabilities | 16,548 | 30,309 | 41,215 |
Potential future cash outflows resulting from extension options, not reflected in the measurement of the lease liabilities | 7,547,505 | 7,229,433 | 6,407,955 |
Potential future cash outflows resulting from termination options, not reflected in the measurement of the lease liabilities | € 3,338 | € 3,095 | € 3,374 |
Commitments and contingencies (
Commitments and contingencies (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||||||
Mar. 19, 2019 USD ($) | Mar. 19, 2019 EUR (€) | Dec. 31, 2022 USD ($) item | Dec. 31, 2017 USD ($) | Dec. 31, 2017 EUR (€) | Dec. 31, 2022 EUR (€) | Dec. 31, 2017 EUR (€) | |
Commitments and contingencies | |||||||
Number of U.S. FDA Pending Warning Letters | 1 | ||||||
Residual value guarantees in lease contracts | $ 541,070 | € 507,285 | |||||
Foreign Corrupt Practices Act | |||||||
Commitments and contingencies | |||||||
FCPA related payment | $ 231,715 | € 205,854 | |||||
Acid Concentrate Products - Personal Injury | |||||||
Commitments and contingencies | |||||||
Settlement funded by insurers | $ 220,000 | € 179,284 | |||||
Settlement under a reciprocal reservation of rights | 250,000 | 250,000 | 203,732 | € 203,732 | |||
Net litigation settlement expense recorded | 60,000 | 48,896 | |||||
Contribution to personal injury settlement | 30,000 | 24,448 | |||||
Uninsured fees and costs accrued | $ 30,000 | € 24,448 | |||||
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 | |||||
Acid Concentrate Products - Personal Injury - exhaustion of deductible obligations for, and weightings of, policy years | |||||||
Commitments and contingencies | |||||||
Amount to be recovered by AIG, if it prevails in all its remaining claims | $ 48,000 | € 44,560 |
Financial instruments - Carryin
Financial instruments - Carrying amount and fair value (Details) - EUR (€) € in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financial instruments | |||
Carrying amount of financial assets | € 5,851,814 | € 5,991,693 | |
Carrying amount of financial liabilities | 16,766,090 | 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 | 10,572,974 | 10,393,957 | |
FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 45,268 | 69,118 | |
Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 6,147,848 | 5,746,294 | |
Accounts payable to unrelated parties | |||
Financial instruments | |||
Carrying amount of financial liabilities | 813,255 | 736,069 | |
Accounts payable to unrelated parties | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 813,255 | 736,069 | |
Accounts payable to related parties | |||
Financial instruments | |||
Carrying amount of financial liabilities | 118,083 | 121,457 | |
Accounts payable to related parties | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 118,083 | 121,457 | |
Short-term debt | |||
Financial instruments | |||
Carrying amount of financial liabilities | 669,013 | 1,255,853 | |
Short-term debt | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 669,013 | 1,255,853 | |
Long-term debt | |||
Financial instruments | |||
Carrying amount of financial liabilities | 7,864,796 | 7,314,915 | |
Long-term debt | Level 1 | |||
Financial instruments | |||
Fair value of financial liabilities | 6,366,775 | 7,246,019 | |
Long-term debt | Level 2 | |||
Financial instruments | |||
Fair value of financial liabilities | 474,930 | 243,656 | |
Long-term debt | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 7,864,796 | 7,314,915 | |
Lease liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 4,678,763 | 4,749,381 | |
Lease liabilities | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 4,678,763 | 4,749,381 | |
Other current and non-current liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 2,622,180 | 2,031,694 | |
Other current and non-current liabilities | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,107,827 | 965,663 | |
Other current and non-current liabilities | FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 45,268 | 69,118 | |
Other current and non-current liabilities | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,469,085 | 996,913 | |
Derivatives - cash flow hedging instruments | |||
Financial instruments | |||
Carrying amount of financial liabilities | 568 | 4,490 | |
Derivatives - cash flow hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial liabilities | 568 | 4,490 | |
Derivatives - cash flow hedging instruments | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 568 | 4,490 | |
Derivatives - not designated as hedging instruments | |||
Financial instruments | |||
Carrying amount of financial liabilities | 7,422 | 21,428 | |
Derivatives - not designated as hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial liabilities | 7,422 | 21,428 | |
Derivatives - not designated as hedging instruments | FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 7,422 | 21,428 | |
Variable payments outstanding for acquisition | |||
Financial instruments | |||
Carrying amount of financial liabilities | 37,846 | 47,690 | |
Variable payments outstanding for acquisition | Level 3 | |||
Financial instruments | |||
Fair value of financial liabilities | 37,846 | 47,690 | |
Variable payments outstanding for acquisition | FVPL - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 37,846 | 47,690 | |
Put option liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,468,517 | 992,423 | |
Put option liabilities | Level 3 | |||
Financial instruments | |||
Fair value of financial liabilities | 1,468,517 | 992,423 | |
Put option liabilities | Not classified | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,468,517 | 992,423 | |
Other financial liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,107,827 | 965,663 | |
Other financial liabilities | Amortized cost - Liabilities | |||
Financial instruments | |||
Carrying amount of financial liabilities | 1,107,827 | 965,663 | |
Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 4,869,350 | 4,617,696 | |
FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 352,327 | 765,545 | |
FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 408,381 | 396,673 | |
Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 221,756 | 211,779 | |
Cash and cash equivalents | |||
Financial instruments | |||
Carrying amount of financial assets | 1,273,787 | 1,481,655 | |
Cash and cash equivalents | Level 1 | |||
Financial instruments | |||
Fair value of financial assets | 155,284 | 492,398 | |
Cash and cash equivalents | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 1,118,503 | 989,257 | |
Cash and cash equivalents | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 155,284 | 492,398 | |
Trade accounts and other receivables from unrelated parties | |||
Financial instruments | |||
Carrying amount of financial assets | 3,574,270 | 3,409,061 | |
Trade accounts and other receivables from unrelated parties | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 3,489,680 | 3,328,720 | |
Trade accounts and other receivables from unrelated parties | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 84,590 | 80,341 | |
Accounts receivable from related parties | |||
Financial instruments | |||
Carrying amount of financial assets | 140,072 | 162,361 | |
Accounts receivable from related parties | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 140,072 | 162,361 | |
Other current and non-current assets | |||
Financial instruments | |||
Carrying amount of financial assets | 863,685 | 938,616 | |
Other current and non-current assets | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 121,095 | 137,358 | |
Other current and non-current assets | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 197,043 | 273,147 | |
Other current and non-current assets | FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 408,381 | 396,673 | |
Other current and non-current assets | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 137,166 | 131,438 | |
Derivatives - cash flow hedging instruments | |||
Financial instruments | |||
Carrying amount of financial assets | 9,151 | 579 | |
Derivatives - cash flow hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 9,151 | 579 | |
Derivatives - cash flow hedging instruments | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | 9,151 | 579 | |
Derivatives - not designated as hedging instruments | |||
Financial instruments | |||
Carrying amount of financial assets | 10,627 | 2,846 | |
Derivatives - not designated as hedging instruments | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 10,627 | 2,846 | |
Derivatives - not designated as hedging instruments | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 10,627 | 2,846 | |
Equity investments | |||
Financial instruments | |||
Carrying amount of financial assets | 149,993 | 244,479 | |
Equity investments | Level 1 | |||
Financial instruments | |||
Fair value of financial assets | 36,227 | 121,643 | |
Equity investments | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 70,973 | 72,157 | |
Equity investments | Level 3 | |||
Financial instruments | |||
Fair value of financial assets | 42,793 | 50,679 | |
Equity investments | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 80,201 | 174,884 | |
Equity investments | FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 69,792 | 69,595 | |
Debt securities | |||
Financial instruments | |||
Carrying amount of financial assets | 444,804 | 422,495 | |
Debt securities | Level 1 | |||
Financial instruments | |||
Fair value of financial assets | 444,804 | 418,196 | |
Debt securities | Level 2 | |||
Financial instruments | |||
Fair value of financial assets | 4,299 | ||
Debt securities | FVPL - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 106,215 | 95,417 | |
Debt securities | FVOCI - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 338,589 | 327,078 | |
Other financial assets | |||
Financial instruments | |||
Carrying amount of financial assets | 249,110 | 268,217 | |
Other financial assets | Amortized cost - Assets | |||
Financial instruments | |||
Carrying amount of financial assets | 121,095 | 137,358 | |
Other financial assets | Not classified | |||
Financial instruments | |||
Carrying amount of financial assets | € 128,015 | € 130,859 |
Financial instruments - Fair va
Financial instruments - Fair values of listed and non-listed equity investments (Details) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 EUR (€) item | Dec. 31, 2021 EUR (€) item | |
Financial instruments | ||
Amount of gains transferred from OCI to retained earnings | € 66,534 | € 33,948 |
Financial assets | 5,851,814 | 5,991,693 |
Equity investments | ||
Financial instruments | ||
Financial assets | € 149,993 | € 244,479 |
Non-listed equity investments | ||
Financial instruments | ||
Number of equity investments | item | 12 | 12 |
FVOCI - Assets | ||
Financial instruments | ||
Financial assets | € 408,381 | € 396,673 |
FVOCI - Assets | Equity investments | ||
Financial instruments | ||
Financial assets | 69,792 | 69,595 |
FVOCI - Assets | Non-listed equity investments | ||
Financial instruments | ||
Financial assets | € 69,792 | € 69,595 |
Financial instruments - Derivat
Financial instruments - Derivative and non-derivative financial instruments (Details) € in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2022 EUR (€) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 EUR (€) | Dec. 31, 2022 EUR (€) item | |
Reconciliation of changes in fair value measurement | ||||
Assets at beginning of period | € 34,366,558 | € 31,689,036 | ||
Assets at end of period | 35,754,114 | 34,366,558 | € 31,689,036 | € 35,754,114 |
Liabilities at beginning of period | 20,387,521 | |||
Liabilities at end of period | 20,304,935 | 20,387,521 | 20,304,935 | |
Equity investments | Fair Value | Level 3 | ||||
Reconciliation of changes in fair value measurement | ||||
Assets at beginning of period | 50,679 | 188,518 | 183,054 | 183,054 |
Transfer to level 1 | (158,551) | |||
Increase | 2,804 | 21,137 | ||
Gain / loss recognised in profit or loss | (13,968) | (12,975) | 22,489 | |
Foreign currency translation and other changes | 3,278 | 12,550 | (17,025) | |
Assets at end of period | 42,793 | 50,679 | 188,518 | 42,793 |
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 | 89,677 | 89,677 |
Increase | 46 | 9,488 | 17,253 | |
Decrease | (6,499) | (22,499) | (35,764) | |
Gain / loss recognized in profit or loss | (3,904) | (6,716) | (1,996) | |
Foreign currency translation and other changes | 513 | 1,058 | (2,811) | |
Liabilities at end of period | 37,846 | 47,690 | 66,359 | 37,846 |
Put option liabilities | ||||
Reconciliation of changes in fair value measurement | ||||
Put option liabilities exercisable | 533,969 | 561,872 | 395,759 | € 533,969 |
Number of put options exercised | item | 231 | |||
Consideration for put options exercised | € 85,087 | |||
Liabilities at beginning of period | 992,423 | 882,422 | ||
Liabilities at end of period | 1,468,517 | 992,423 | 882,422 | 1,468,517 |
Put option liabilities | Fair Value | Level 3 | ||||
Reconciliation of changes in fair value measurement | ||||
Liabilities at beginning of period | 992,423 | 882,422 | 934,425 | 934,425 |
Increase | 646,271 | 112,194 | 51,388 | |
Decrease | (7,026) | (18,495) | (99,877) | |
Gain / loss recognized in equity | (180,431) | (54,019) | 73,993 | |
Foreign currency translation and other changes | 17,280 | 70,321 | (77,507) | |
Liabilities at end of period | € 1,468,517 | € 992,423 | € 882,422 | € 1,468,517 |
Put option liabilities | Fair Value | Level 3 | Assumed earnings or enterprise value | ||||
Reconciliation of changes in fair value measurement | ||||
Increase in input | 10% | 10% | ||
Increase in fair value due to increase in input | € 103,061 | |||
Put option liabilities | Fair Value | Level 3 | Assumed earnings or enterprise value | Maximum | ||||
Reconciliation of changes in fair value measurement | ||||
Increase in fair value due to increase in input, as percentage of total liabilities | 1% | 1% | ||
Increase in fair value due to increase in input, as percentage of equity | 1% | 1% |
Financial Instruments - Deriv_2
Financial Instruments - Derivatives financial risks (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | € 16,049 | € 3,151 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements in statement of financial position | 7,331 | 23,963 |
Net financial assets subject to offsetting, enforceable master netting arrangements or similar agreements | 12,434 | 736 |
Net financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements | € 3,716 | € 21,547 |
Financial Instruments - Foreign
Financial Instruments - Foreign exchange risk management (Details) - Foreign exchange risk - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives - cash flow hedging instruments | ||
Financial instruments | ||
Notional amount | € 198,709 | € 190,707 |
Derivatives, maturity | 12 months | |
Derivatives - not designated as hedging instruments | ||
Financial instruments | ||
Notional amount | € 1,413,955 | € 854,528 |
Financial instruments - Forei_2
Financial instruments - Foreign exchange risk (Details) - Foreign exchange risk € in Thousands | 12 Months Ended |
Dec. 31, 2022 EUR (€) € / $ € / $ € / ¥ item D | |
Financial risk management and financial instruments | |
Number of exchange rates used for CFaR approach | item | 50 |
Number of trading days in interval for CFaR approach | D | 21 |
Confidence level (as a percent) | 95% |
Holding period | 1 year |
Net exposure | € 1,214,115 |
CFaR | 36,997 |
AUD | |
Financial risk management and financial instruments | |
Notional amount | € 221,694 |
Average hedging rate | € / $ | 1.5700 |
CNY | |
Financial risk management and financial instruments | |
Notional amount | € 186,980 |
Average hedging rate | € / ¥ | 7.0425 |
USD | |
Financial risk management and financial instruments | |
Notional amount | € 799,235 |
Average hedging rate | € / $ | 1.0775 |
Financial instruments - Interes
Financial instruments - Interest rate risk (Details) - Interest rate risk - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial debt bearing variable interest rate, not hedged | ||
Financial risk management and financial instruments | ||
Percentage increase in variable interest rate for sensitivity analysis | 0.50% | |
Financial debt bearing variable interest rate, not hedged | Maximum | ||
Financial risk management and financial instruments | ||
Percentage effect on consolidated net income | 1% | |
Percentage effect on equity | 0.10% | |
Interest rate pre-hedges | ||
Financial risk management and financial instruments | ||
Reserve of cash flow hedges | € 6,652 | € 7,234 |
Financial instruments - Deriv_3
Financial instruments - Derivative financial instruments valuation (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments | ||
Current Assets | € 19,777 | € 3,417 |
Current Liabilities | (7,109) | (25,847) |
Derivatives - cash flow hedging instruments | ||
Financial instruments | ||
Total Assets | 9,151 | 579 |
Total Liabilities | (568) | (4,490) |
Derivatives - cash flow hedging instruments | Foreign exchange contracts | ||
Financial instruments | ||
Current Assets | 9,151 | 571 |
Non-current Assets | 8 | |
Current Liabilities | (568) | (4,419) |
Non-current Liabilities | (71) | |
Derivatives - not designated as hedging instruments | ||
Financial instruments | ||
Total Assets | 10,627 | 2,846 |
Total Liabilities | (7,422) | (21,428) |
Derivatives - not designated as hedging instruments | Foreign exchange contracts | ||
Financial instruments | ||
Current Assets | 10,627 | 2,846 |
Current Liabilities | (6,541) | € (21,428) |
Non-current Liabilities | € (881) |
Financial instruments - Effect
Financial instruments - Effect of derivatives on consolidated financial statements (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial instruments | |||
Interest income recorded as an effect of financial instruments | € 56,409 | € 52,948 | |
Interest expense recorded as an effect of financial instruments | 358,995 | 343,807 | |
Credit losses recorded as an effect of financial instruments | 42,470 | 44,374 | |
Net losses from foreign currency transactions | 32,662 | 9,898 | |
Fair value gain (loss) recognized in AOCI on hedging instrument (hedge reserve) | 12,036 | (3,585) | € 6,123 |
Fair value gain (loss) recognized in AOCI on hedging instrument (cost of hedging) | (3,379) | 126 | € (2,062) |
Derivatives - cash flow hedging instruments | |||
Financial instruments | |||
Fair value gain (loss) recognized in AOCI on hedging instrument (hedge reserve) | 12,036 | (3,585) | |
Fair value gain (loss) recognized in AOCI on hedging instrument (cost of hedging) | (3,379) | 126 | |
Amount reclassified from hedge reserve included in Interest income/expense | 1,355 | 1,206 | |
Amount reclassified from hedge reserve included in revenue | 2,698 | 275 | |
Amount reclassified from cost of hedging included in revenue | 40 | 773 | |
Amount reclassified from hedge reserve included in cost of revenue | (2,088) | 72 | |
Amount reclassified from cost of hedging included in cost of revenue | 2,157 | (1,060) | |
Amount reclassified from hedge reserve included in Inventory | (418) | 1,013 | |
Amount reclassified from cost of hedging included in Inventory | 12 | (2) | |
Amount reclassified from hedge reserve | 1,547 | 2,566 | |
Amount reclassified from cost of hedging | 2,209 | (289) | |
Derivatives - cash flow hedging instruments | Foreign exchange contracts | |||
Financial instruments | |||
Fair value gain (loss) recognized in AOCI on hedging instrument (hedge reserve) | 12,036 | (3,585) | |
Fair value gain (loss) recognized in AOCI on hedging instrument (cost of hedging) | (3,379) | 126 | |
Derivatives - not designated as hedging instruments | |||
Financial instruments | |||
Amount of (Gain) Loss recognized in income on Derivatives - Total | 21,911 | (47,737) | |
Derivatives - not designated as hedging instruments | Foreign exchange contracts | |||
Financial instruments | |||
Amount of (Gain) Loss recognized in income on Derivatives - Selling, general and administrative expense | 8,914 | (49,214) | |
Amount of (Gain) Loss recognized in income on Derivatives - Interest income/expense | € 12,997 | € 1,477 |
Financial instruments - Deriv_4
Financial instruments - Derivatives, cash flow and credit risk (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Financial instruments | ||
Maximum credit exposure | € 19,778 | € 3,425 |
Financial instruments - Payment
Financial instruments - Payments agreed by contracts (Details) - EUR (€) € in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | € 5,063,058 | € 5,385,297 |
Non-discounted payments, financial instruments | 5,073,504 | 5,417,757 |
1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 3,553,635 | 3,038,859 |
Non-discounted payments, financial instruments | 3,551,881 | 3,038,968 |
3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 4,205,660 | 3,894,312 |
Non-discounted payments, financial instruments | 4,205,660 | 3,894,312 |
Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 5,742,844 | 5,774,048 |
Non-discounted payments, financial instruments | 5,742,844 | 5,774,048 |
Accounts payable to unrelated parties | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 813,255 | 736,069 |
Accounts payable to unrelated parties | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 426 | 68 |
Accounts payable to related parties | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 118,083 | 121,457 |
Other current financial liabilities | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,107,401 | 965,595 |
Short-term debt | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 669,013 | 1,255,853 |
Bonds and Convertible Bonds | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 806,805 | 759,946 |
Bonds and Convertible Bonds | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,167,570 | 1,249,033 |
Bonds and Convertible Bonds | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 2,882,965 | 2,553,673 |
Bonds and Convertible Bonds | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 3,557,066 | 3,563,460 |
Accounts Receivable Facility | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 4,190 | |
Accounts Receivable Facility | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 96,351 | |
Other long-term debt | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 44,783 | 49,959 |
Other long-term debt | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 87,082 | 103,315 |
Other long-term debt | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 47,705 | 38,991 |
Other long-term debt | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 202,568 | 51,466 |
Lease liabilities | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 815,613 | 796,927 |
Lease liabilities | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,479,359 | 1,463,953 |
Lease liabilities | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,164,048 | 1,127,660 |
Lease liabilities | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 1,922,861 | 2,076,056 |
Variable payments outstanding for acquisition | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 4,794 | 9,721 |
Variable payments outstanding for acquisition | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 30,140 | 2,936 |
Variable payments outstanding for acquisition | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 22,526 | |
Variable payments outstanding for acquisition | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 6,149 | 15,322 |
Put option liabilities | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 667,371 | 678,705 |
Put option liabilities | 1 - 3 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 692,707 | 219,554 |
Put option liabilities | 3 - 5 years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 110,942 | 151,462 |
Put option liabilities | Over 5 Years | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 54,200 | 67,744 |
Letters of credit | Less than 1 year | ||
Payments | ||
Non-discounted payments, non-derivative financial instruments | 11,750 | 11,065 |
Derivatives - cash flow hedging instruments | Less than 1 year | ||
Payments | ||
Non-discounted payments, derivative financial instruments | 563 | 4,875 |
Derivatives - cash flow hedging instruments | 1 - 3 years | ||
Payments | ||
Non-discounted payments, derivative financial instruments | 109 | |
Inflow | Less than 1 year | ||
Payments | ||
Non-discounted payments, derivative financial instruments | (10,573) | (141,935) |
Inflow | 1 - 3 years | ||
Payments | ||
Non-discounted payments, derivative financial instruments | (2,300) | |
Outflow | Less than 1 year | ||
Payments | ||
Non-discounted payments, derivative financial instruments | 11,136 | 146,810 |
Outflow | 1 - 3 years | ||
Payments | ||
Non-discounted payments, derivative financial instruments | 2,409 | |
Derivatives - not designated as hedging instruments | Less than 1 year | ||
Payments | ||
Non-discounted payments, derivative financial instruments | 9,883 | 27,585 |
Derivatives - not designated as hedging instruments | 1 - 3 years | ||
Payments | ||
Non-discounted payments, derivative financial instruments | (1,754) | |
Inflow | Less than 1 year | ||
Payments | ||
Non-discounted payments, derivative financial instruments | (359,346) | (611,024) |
Inflow | 1 - 3 years | ||
Payments | ||
Non-discounted payments, derivative financial instruments | (36,590) | |
Outflow | Less than 1 year | ||
Payments | ||
Non-discounted payments, derivative financial instruments | 369,229 | € 638,609 |
Outflow | 1 - 3 years | ||
Payments | ||
Non-discounted payments, derivative financial instruments | € 34,836 |
Other comprehensive income (l_3
Other comprehensive income (loss) (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other comprehensive income (loss) | |||
Equity method investees - share of OCI, Pretax | € 22,705 | € (25,334) | € 58,166 |
Equity method investees - share of OCI, net | 22,705 | (25,334) | 58,166 |
FVOCI equity investments, pretax | 2,883 | 37,660 | 19,439 |
FVOCI equity investments, tax | (231) | (8,492) | (2,326) |
FVOCI equity investments, net | 2,652 | 29,168 | 17,113 |
Actuarial gains (losses) on defined benefit pension plans, Pretax | 318,595 | (15,781) | 4,176 |
Actuarial gain (loss) on defined benefit pension plans, Tax effect | (94,062) | 4,407 | (1,191) |
Actuarial gain (loss) on defined benefit pension plans, Net | 224,533 | (11,374) | 2,985 |
Foreign currency translation effects | 826,847 | 1,034,239 | (1,359,397) |
Foreign currency translation adjustment, Net | 826,847 | 1,034,239 | (1,359,397) |
FVOCI debt securities, pretax | (44,996) | (9,892) | 29,096 |
FVOCI debt securities, tax | 8,050 | 1,482 | (5,048) |
FVOCI debt securities, net | (36,946) | (8,410) | 24,048 |
Changes in fair value of cash flow hedges during the period, Pretax | 12,036 | (3,585) | 6,123 |
Changes in fair value of cash flow hedges during the period, Tax effect | (3,045) | 1,013 | (1,839) |
Changes in fair value of cash flow hedges during the period, Net | 8,991 | (2,572) | 4,284 |
Cost of hedging, Pretax | (3,379) | 126 | (2,062) |
Cost of hedging, Tax effect | 887 | (7) | 608 |
Cost of hedging, Net | (2,492) | 119 | (1,454) |
Reclassification adjustments, pretax | 3,756 | 2,277 | (1,282) |
Reclassification adjustments, Tax effect | (1,044) | (599) | 482 |
Reclassification adjustments, Net | 2,712 | 1,678 | (800) |
Total other comprehensive income (loss) relating to cash flow hedges, Pretax | 12,413 | (1,182) | 2,779 |
Total other comprehensive income (loss) relating to cash flow hedges, Tax effect | (3,202) | 407 | (749) |
Total other comprehensive income (loss) relating to cash flow hedges, Net | 9,211 | (775) | 2,030 |
Other comprehensive income (loss), Pretax | 1,138,447 | 1,019,710 | (1,245,741) |
Other comprehensive income (loss), Tax effect | (89,445) | (2,196) | (9,314) |
Other comprehensive income (loss), net of tax | € 1,049,002 | € 1,017,514 | € (1,255,055) |
Supplementary cash flow infor_3
Supplementary cash flow information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Details for acquisitions | |||
Assets acquired | € (830,460) | € (547,146) | € (337,300) |
Liabilities assumed | 16,407 | 70,143 | 41,761 |
Noncontrolling interests | 188,469 | 120,197 | 37,140 |
Put option liabilities | 26,801 | ||
Non-cash consideration | 578,009 | 12,482 | 33,804 |
Cash paid | (47,575) | (344,324) | (224,595) |
Less cash acquired | 58,101 | 19,518 | 9,759 |
Net cash paid for acquisitions | 10,526 | (324,806) | (214,836) |
Cash paid for investments | (23,311) | (77,010) | (10,899) |
Cash paid for intangible assets | (46,348) | (32,355) | (33,250) |
Total cash paid for acquisitions and investments, net of cash acquired, and purchases of intangible assets | (59,133) | (434,171) | (258,985) |
Details for divestitures | |||
Cash received from sale of subsidiaries or other businesses, less cash disposed | 60,161 | 52,444 | 14,608 |
Proceeds from divestitures | € 60,161 | € 52,444 | € 14,608 |
Supplementary cash flow infor_4
Supplementary cash flow information - Reconciliation of debt to net cash provided by (used in) financing activities (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Interest expense on lease liabilities | € 151,317 | € 143,160 | € 159,148 |
Interest payments included in operating activities | 349,537 | 331,837 | |
Short-term debt from unrelated parties | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 1,178,353 | 62,950 | |
Cash Flow | (511,657) | 1,115,777 | |
Acquisitions (net of divestitures) | (52) | 164 | |
Foreign currency translation | (453) | (531) | |
Other | (1,178) | (7) | |
Balance at the end of period | 665,013 | 1,178,353 | 62,950 |
Short-term debt from related parties | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 77,500 | 16,320 | |
Cash Flow | (73,500) | 61,180 | |
Balance at the end of period | 4,000 | 77,500 | 16,320 |
Long-term debt (excluding Accounts Receivable Facility) | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 7,314,915 | 7,808,460 | |
Cash Flow | 246,277 | (812,002) | |
Acquisitions (net of divestitures) | 527 | 11,421 | |
Foreign currency translation | 200,846 | 294,437 | |
Amortization of debt issuance costs and discounts | 10,055 | 9,423 | |
Other | (1,549) | 3,176 | |
Balance at the end of period | 7,771,071 | 7,314,915 | 7,808,460 |
Repayments of variable payments outstanding for acquisitions | 3,975 | 19,314 | |
Debt issuance cost relating to undrawn credit facilities | 7,590 | ||
Accounts Receivable Facility | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Cash Flow | 94,962 | ||
Foreign currency translation | (1,206) | ||
Amortization of debt issuance costs and discounts | (31) | ||
Balance at the end of period | 93,725 | ||
Lease liabilities from unrelated parties | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 4,630,100 | 4,352,267 | |
Cash Flow | (752,884) | (675,639) | |
Acquisitions (net of divestitures) | (10,763) | 42,600 | |
Foreign currency translation | 218,744 | 297,110 | |
Other | 439,863 | 613,762 | |
Balance at the end of period | 4,525,060 | 4,630,100 | 4,352,267 |
Lease liabilities from related parties | |||
Reconciliation of debt to net cash provided by (used in) financing activities | |||
Balance at the beginning of period | 119,281 | 140,020 | |
Cash Flow | (22,268) | (21,315) | |
Foreign currency translation | 25 | 90 | |
Other | 56,665 | 486 | |
Balance at the end of period | € 153,703 | € 119,281 | € 140,020 |
Segment and corporate informa_3
Segment and corporate information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment and corporate information | |||
Revenue from health care services | € 15,418,069 | € 13,876,282 | € 14,114,399 |
Revenue from health care products | 3,979,948 | 3,742,403 | 3,744,664 |
Revenue | 19,398,017 | 17,618,685 | 17,859,063 |
Operating income | 1,511,755 | 1,852,290 | 2,304,409 |
Interest | (292,476) | (280,429) | (368,019) |
Income before income taxes | 1,219,279 | 1,571,861 | 1,936,390 |
Depreciation and amortization | (1,718,802) | (1,585,367) | (1,586,869) |
Impairment loss | (119,561) | (38,309) | (199,030) |
Income (loss) from equity method investees | 66,559 | 92,175 | 94,518 |
Total assets | 35,754,114 | 34,366,558 | 31,689,036 |
thereof investments in equity method investees | 773,724 | 786,905 | 761,113 |
Additions of property, plant and equipment, intangible assets and right of use assets | 1,318,421 | 1,556,864 | 2,002,523 |
Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 14,966,580 | 13,479,438 | 13,810,589 |
Revenue from health care products | 3,876,321 | 3,623,951 | 3,639,995 |
Revenue | 18,842,901 | 17,103,389 | 17,450,584 |
Other revenue | |||
Segment and corporate information | |||
Revenue from health care services | 451,489 | 396,844 | 303,810 |
Revenue from health care products | 103,627 | 118,452 | 104,669 |
Revenue | 555,116 | 515,296 | 408,479 |
Total Segment | |||
Segment and corporate information | |||
Revenue | 19,349,545 | 17,565,191 | 17,819,419 |
Operating income | 2,095,092 | 2,314,803 | 2,718,488 |
Depreciation and amortization | (1,433,232) | (1,323,424) | (1,334,844) |
Impairment loss | (88,775) | (36,137) | (199,030) |
Income (loss) from equity method investees | 66,559 | 92,175 | 94,698 |
Total assets | 31,436,183 | 30,441,197 | 28,792,533 |
thereof investments in equity method investees | 773,724 | 786,905 | 761,113 |
Additions of property, plant and equipment, intangible assets and right of use assets | 992,110 | 1,259,901 | 1,606,869 |
Total Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 14,937,976 | 13,442,780 | 13,786,173 |
Revenue from health care products | 3,856,453 | 3,607,115 | 3,624,767 |
Revenue | 18,794,429 | 17,049,895 | 17,410,940 |
Total Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 555,116 | 515,296 | 408,479 |
North America Segment | |||
Segment and corporate information | |||
Revenue | 13,549,928 | 12,087,711 | 12,478,420 |
Operating income | 1,475,558 | 1,643,918 | 2,119,737 |
Depreciation and amortization | (1,086,609) | (983,568) | (997,509) |
Impairment loss | (84,874) | (19,814) | (1,231) |
Income (loss) from equity method investees | 73,699 | 90,123 | 87,493 |
Total assets | 23,716,516 | 22,667,874 | 21,358,156 |
thereof investments in equity method investees | 437,986 | 459,231 | 413,401 |
Additions of property, plant and equipment, intangible assets and right of use assets | 696,504 | 872,647 | 1,162,847 |
North America Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 11,948,330 | 10,622,787 | 11,060,231 |
Revenue from health care products | 1,131,263 | 1,051,878 | 1,094,828 |
Revenue | 13,079,593 | 11,674,665 | 12,155,059 |
North America Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 470,335 | 413,046 | 323,361 |
EMEA Segment | |||
Segment and corporate information | |||
Revenue | 2,851,209 | 2,764,766 | 2,762,588 |
Operating income | 256,108 | 309,327 | 411,674 |
Depreciation and amortization | (194,554) | (195,032) | (191,204) |
Impairment loss | (3,658) | (12,146) | (2,266) |
Income (loss) from equity method investees | (9,377) | (1,074) | 4,237 |
Total assets | 3,876,332 | 3,943,175 | 3,879,386 |
thereof investments in equity method investees | 203,759 | 197,717 | 215,650 |
Additions of property, plant and equipment, intangible assets and right of use assets | 165,196 | 206,248 | 249,401 |
EMEA Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 1,456,175 | 1,379,151 | 1,364,976 |
Revenue from health care products | 1,368,612 | 1,336,921 | 1,363,820 |
Revenue | 2,824,787 | 2,716,072 | 2,728,796 |
EMEA Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 26,422 | 48,694 | 33,792 |
Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | 2,151,549 | 2,009,790 | 1,894,178 |
Operating income | 339,672 | 349,599 | 343,632 |
Depreciation and amortization | (108,360) | (105,934) | (110,400) |
Impairment loss | (240) | (3,684) | (1,065) |
Income (loss) from equity method investees | 969 | 2,163 | 2,950 |
Total assets | 2,989,350 | 3,042,941 | 2,830,867 |
thereof investments in equity method investees | 104,830 | 104,077 | 105,661 |
Additions of property, plant and equipment, intangible assets and right of use assets | 85,719 | 130,632 | 143,939 |
Asia-Pacific Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 980,792 | 941,627 | 876,036 |
Revenue from health care products | 1,115,914 | 1,017,262 | 969,674 |
Revenue | 2,096,706 | 1,958,889 | 1,845,710 |
Asia-Pacific Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 54,843 | 50,901 | 48,468 |
Latin America Segment | |||
Segment and corporate information | |||
Revenue | 796,859 | 702,924 | 684,233 |
Operating income | 23,754 | 11,959 | (156,555) |
Depreciation and amortization | (43,709) | (38,890) | (35,731) |
Impairment loss | (3) | (493) | (194,468) |
Income (loss) from equity method investees | 1,268 | 963 | 18 |
Total assets | 853,985 | 787,207 | 724,124 |
thereof investments in equity method investees | 27,149 | 25,880 | 26,401 |
Additions of property, plant and equipment, intangible assets and right of use assets | 44,691 | 50,374 | 50,682 |
Latin America Segment | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 552,679 | 499,215 | 484,930 |
Revenue from health care products | 240,664 | 201,054 | 196,445 |
Revenue | 793,343 | 700,269 | 681,375 |
Latin America Segment | Other revenue | |||
Segment and corporate information | |||
Revenue | 3,516 | 2,655 | 2,858 |
Corporate | |||
Segment and corporate information | |||
Revenue | 48,472 | 53,494 | 39,644 |
Operating income | (583,337) | (462,513) | (414,079) |
Depreciation and amortization | (285,570) | (261,943) | (252,025) |
Impairment loss | (30,786) | (2,172) | |
Income (loss) from equity method investees | (180) | ||
Total assets | 4,317,931 | 3,925,361 | 2,896,503 |
Additions of property, plant and equipment, intangible assets and right of use assets | 326,311 | 296,963 | 395,654 |
Corporate | Revenue from contracts with customers | |||
Segment and corporate information | |||
Revenue from health care services | 28,604 | 36,658 | 24,416 |
Revenue from health care products | 19,868 | 16,836 | 15,228 |
Revenue | 48,472 | 53,494 | 39,644 |
Operating Segments | Total Segment | |||
Segment and corporate information | |||
Revenue | 19,370,023 | 17,597,882 | 17,854,648 |
Operating Segments | North America Segment | |||
Segment and corporate information | |||
Revenue | 13,569,161 | 12,119,580 | 12,507,173 |
Operating Segments | EMEA Segment | |||
Segment and corporate information | |||
Revenue | 2,851,209 | 2,764,766 | 2,768,521 |
Operating Segments | Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | 2,151,666 | 2,010,410 | 1,894,417 |
Operating Segments | Latin America Segment | |||
Segment and corporate information | |||
Revenue | 797,987 | 703,126 | 684,537 |
Operating Segments | Corporate | |||
Segment and corporate information | |||
Revenue | 27,994 | 20,803 | 4,415 |
Inter-segment | Total Segment | |||
Segment and corporate information | |||
Revenue | (20,478) | (32,691) | (35,229) |
Inter-segment | North America Segment | |||
Segment and corporate information | |||
Revenue | (19,233) | (31,869) | (28,753) |
Inter-segment | EMEA Segment | |||
Segment and corporate information | |||
Revenue | (5,933) | ||
Inter-segment | Asia-Pacific Segment | |||
Segment and corporate information | |||
Revenue | (117) | (620) | (239) |
Inter-segment | Latin America Segment | |||
Segment and corporate information | |||
Revenue | (1,128) | (202) | (304) |
Inter-segment | Corporate | |||
Segment and corporate information | |||
Revenue | € 20,478 | € 32,691 | € 35,229 |
Segment and corporate informa_4
Segment and corporate information - Geographic Information (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographic region | |||
Revenue external customers | € 19,398,017 | € 17,618,685 | € 17,859,063 |
Long-lived assets | 26,539,796 | 25,288,572 | 23,406,609 |
Germany | |||
Disclosure of geographic region | |||
Revenue external customers | 487,281 | 511,390 | 493,436 |
Long-lived assets | 1,517,741 | 1,478,579 | 1,202,528 |
North America | |||
Disclosure of geographic region | |||
Revenue external customers | 13,568,655 | 12,087,711 | 12,478,420 |
Long-lived assets | 20,889,568 | 19,618,557 | 17,878,746 |
Rest of the World | |||
Disclosure of geographic region | |||
Revenue external customers | 5,342,081 | 5,019,584 | 4,887,207 |
Long-lived assets | € 4,132,487 | € 4,191,436 | € 4,325,335 |
Subsequent events (Details)
Subsequent events (Details) - Change in operating model | Jan. 01, 2023 item EUR (€) segment |
Subsequent events | |
Number of operating segments | segment | 2 |
Number of pillars for general and administrative functions | item | 3 |
Number of groups of CGUs for each operating segment | € | 1 |
Compensation of the Managemen_2
Compensation of the Management Board and the Supervisory Board - Compensation of the Management Board (Details) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 EUR (€) EquityInstruments installment | Dec. 31, 2021 EUR (€) EquityInstruments | Dec. 31, 2020 EUR (€) EquityInstruments | |
Key management personnel | |||
Service cost | € 42,367 | € 37,409 | € 40,213 |
MB LTIP 2020 | |||
Key management personnel | |||
Number of shares allocated | EquityInstruments | 241,835 | 192,446 | 159,607 |
General Partner | MB LTIP 2020 | |||
Key management personnel | |||
Number of shares allocated | EquityInstruments | 182,192 | 192,446 | |
General Partner | Management Board | |||
Key management personnel | |||
Key management compensation, local country | € 21,910 | € 26,833 | |
Non-performance-related compensation | 8,752 | 9,531 | |
Short-term performance related compensation | 2,845 | 6,819 | |
Long term incentive effects, local country | 9,013 | 10,483 | |
Other long-term benefits | 1,300 | 0 | |
Service cost | 4,483 | 5,146 | |
Long term incentive effects | (646) | 5,119 | |
Termination benefits expense | 1,840 | 0 | |
Key management compensation | 18,574 | 26,615 | |
Outstanding balances | € 29,987 | 54,626 | |
Number of annual installment | installment | 10 | ||
General Partner | Management Board | Former members | |||
Key management personnel | |||
Key management compensation | € 2,705 | 629 | |
Pension obligation | € 51,270 | € 49,274 |
Compensation of the Managemen_3
Compensation of the Management Board and the Supervisory Board - Compensation of the Supervisory Board (Details) - Members of Supervisory Board - EUR (€) € in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Key management personnel | ||
Total compensation | € 1,244 | € 1,089 |
General Partner | ||
Key management personnel | ||
Total compensation | € 1,054 | € 1,084 |
Principal accountant fees and_3
Principal accountant fees and services (Details) - EUR (€) € in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographic region | |||
Audit fees | € 14,354 | € 10,524 | € 9,386 |
Audit-related fees | 686 | 1,038 | 510 |
Tax fees | 1,204 | 633 | 951 |
Other fees | 2,940 | 1,817 | 5,236 |
Germany | |||
Disclosure of geographic region | |||
Audit fees | 2,961 | 2,041 | 1,608 |
Audit-related fees | 301 | 614 | 394 |
Tax fees | 54 | ||
Other fees | € 2,940 | € 1,813 | € 5,236 |