• Sales
• Earnings structure
• Reconciliation to adjusted earnings
• Development of other major items in the statement of income
• Value added

Reconciliation to adjusted earnings

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.