Operations and Business Environment - Fresenius Medical Care

of existing production facilities in North America,
Germany, France and Japan. A further $ 69 million went
to our sales and distribution activities, primarily to the
capitalization of dialysis machines provided to customers.
Some $17 million came from the sale of property,
plant and equipment.
Of net capital expenditures, 56 % of the net capital expenditures
were invested in our dialysis services activities
and 44 % in our dialysis products business. About 63 %
of the net capital expenditures were used for expanding
existing facilities, and 37 % were used for the maintenance
of existing production sites and dialysis clinics.
About 67 % of all capital expenditures in 2006 were
spent in North America, compared to 57 % a year
earlier. Europe received 25 % while the Asia-Pacific and
Latin America regions each received 4 %.
Our acquisition spending increased to $ 4.307 billion
in 2006, compared with $125 million in the previous
year. The significant increase is primarily due to the
$ 4.148 billion spent on the acquisition of RCG.
Fresenius Medical Care received $ 516 million from the
sale of 105 clinics and laboratories. Additional spending
for acquisitions in 2006 amounted to $159 million,
with $145 million going to the North American segment
and $14 million to the International segment. Of the
total sum, $ 73 million were spent on the acquisition of
the phosphate binder product business from Nabi Biopharmaceuticals
and the remaining $ 86 million primarily
on the acquisition of clinics.
Overall, $ 4.241 billion were spent for capital expenditures
and acquisitions in 2006. This was $ 3.819 billion
more than in the previous year when we spent
$ 422 million.
77
Investments and Acquisitions by Segment
$ in millions 2006 2005 Thereof Property, Thereof Thereof Change % of Total
Plant and Equip- Acquisitions Divestitures
ments and Intangible
Assets
North America
International
Total
4,079
162
4,241
245
177
422
302
148
450
4,293
14
4,307
516
–
516
3,834
(15)
3,819
96 %
4 %
100 %
Net Capital Expenditures by Regions
Total: $ 450 million
North America 67 %
4 % Latin America
4 % Asia-Pacific
25 % Europe / Middle East / Africa
Fresenius Medical Care 2006