Reconciliation to adjusted earnings

Reconciliation


  2009 2008
in million € Other
financial
result
Net income EBIT Other
financial
result
Net income
1 Earnings attributable to Fresenius SE adjusted for special items resulting from the acquisition of APP Pharmaceuticals.
2 The special items are included in the column “Corporate / Other” in the segment reporting.
3 In addition, € 73 million of transaction-related financing expenses have been capitalized and will be depreciated over the lifespan of the respective particular credit facility.
4 Earnings attributable to Fresenius SE.
Earnings, adjusted 1   514 1,727   450
Purchase accounting adjustments 2:          
in-process R & D acquired     - 272   - 272
inventory step-up (market value)     - 35   - 22
Foreign exchange gain 2     57   41
Other financial result 2          
Mandatory Exchangeable Bonds (MEB)
(mark-to-market accounting)
- 37 - 26   28 20
Contingent Value Rights (CVR) (mark-to-market accounting) 6 6   75 75
One-time financing expenses 3       - 35 - 22
Earnings according to US GAAP 4 - 31 494 1,477 68 270

  2009 2008
in million € Other
financial
result
Net income EBIT Other
financial
result
Net income
1 Earnings attributable to Fresenius SE adjusted for special items resulting from the acquisition of APP Pharmaceuticals.
2 The special items are included in the column “Corporate / Other” in the segment reporting.
3 In addition, € 73 million of transaction-related financing expenses have been capitalized and will be depreciated over the lifespan of the respective particular credit facility.
4 Earnings attributable to Fresenius SE.
Earnings, adjusted 1   514 1,727   450
Purchase accounting adjustments 2:          
in-process R & D acquired     - 272   - 272
inventory step-up (market value)     - 35   - 22
Foreign exchange gain 2     57   41
Other financial result 2          
Mandatory Exchangeable Bonds (MEB)
(mark-to-market accounting)
- 37 - 26   28 20
Contingent Value Rights (CVR) (mark-to-market accounting) 6 6   75 75
One-time financing expenses 3       - 35 - 22
Earnings according to US GAAP 4 - 31 494 1,477 68 270

The table above shows the special items relating to the acquisition of APP Pharmaceuticals in the reconciliation from adjusted EBIT and net income to earnings according to US GAAP.

The acquired in-process R & D activities were written off in full at the time of acquisition in 2008 in accordance with US GAAP accounting principles prevailing at the time of acquisition.

The valuation of inventories at market prices led to a valuation step-up in work-in-progress and finished goods. This amount was written off in 2008 over the average sales period of the respective products.

The foreign exchange gain resulted from the firmer US dollar, which increased the value of the US dollar intercompany loan to Fresenius Kabi Pharmaceuticals Holding, Inc. in 2008.

The Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) are recognized as liabilities. The repayment value of the CVR and the derivative elements of the MEB are measured at market prices. The change in value (mark-to-market accounting), which is measured over the entire life of the instruments, results either in a gain or an expense.

The one-time financing expenses included commitment and funding fees for the bridge facility as well as the full write-off of the financing costs of a syndicated credit facility of APP Pharmaceuticals from the year 2007.

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