(45) Related party disclosures
Accounting and measurement policies
Related party disclosures
Related parties in respect of the Group are E. Merck KG, Darmstadt, Germany, Emanuel-Merck-Vermögens-KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany, and E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany. Furthermore, direct or indirect subsidiaries of Merck KGaA, Darmstadt, Germany, associates of the Group, joint ventures of the Group, as well as pension funds that are classified as defined benefit plans in accordance with IAS 19 are also related parties within the meaning of IAS 24. Members of the Executive Board and the Supervisory Board of Merck KGaA, Darmstadt, Germany, the Executive Board and the Board of Partners of E. Merck KG, Darmstadt, Germany, as well as close members of their families are also related parties, as are companies controlled or jointly controlled by this group of persons.
Transactions were conducted with related parties as follows:
|
|
Income |
|
Expenses |
|
Receivables |
|
Liabilities |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Dec. 31, 2023 |
|
Dec. 31, |
|
Dec. 31, 2023 |
|
Dec. 31, |
||||
E. Merck KG, Darmstadt, Germany |
|
2.3 |
|
1.9 |
|
11.3 |
|
4.0 |
|
0.1 |
|
0.0 |
|
826.5 |
|
1,118.8 |
||||
E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany |
|
0.4 |
|
0.5 |
|
32.4 |
|
0.6 |
|
0.0 |
|
0.0 |
|
1,100.1 |
|
660.1 |
||||
Engel-Apotheke, Darmstadt1 |
|
0.1 |
|
0.1 |
|
0.0 |
|
0.2 |
|
0.0 |
|
0.0 |
|
0.0 |
|
0.0 |
||||
Joint ventures |
|
2.3 |
|
3.2 |
|
0.0 |
|
0.0 |
|
0.6 |
|
0.5 |
|
0.0 |
|
0.0 |
||||
Associated companies |
|
0.9 |
|
0.1 |
|
0.0 |
|
0.0 |
|
19.5 |
|
3.0 |
|
0.0 |
|
0.0 |
||||
Majority interest in non-controlled companies |
|
0.3 |
|
0.4 |
|
0.0 |
|
0.0 |
|
0.0 |
|
6.7 |
|
0.9 |
|
1.2 |
||||
Non-consolidated subsidiaries |
|
0.2 |
|
0.1 |
|
0.6 |
|
0.6 |
|
2.9 |
|
1.8 |
|
0.2 |
|
0.4 |
||||
|
||||||||||||||||||||
As in the previous year, the liabilities of Group companies in respect of E. Merck KG, Darmstadt, Germany, primarily resulted from mutual profit transfers between Merck KGaA, Darmstadt, Germany, and E. Merck KG, Darmstadt, Germany, as well as the profit transfer by Merck & Cie KmG, Altdorf, Switzerland, a subsidiary of Merck KGaA, Darmstadt, Germany, to E. Merck KG, Darmstadt, Germany. They included financial debt of € 94.7 million (December 31, 2022: € 258.0 million), subject to standard market interest rates. The financial debt in respect of E. Merck Beteiligungen KG, Darmstadt, Germany, a related party of E. Merck KG, Darmstadt, Germany, in the amount of € 1,100.0 million (December 31, 2022: € 660.0 million) were also subject to standard market interest rates. There was no collateral or guarantees either in favor of or at the expense of the Group.
Loss allowances on receivables from non-consolidated subsidiaries recognized in the reporting period and previous periods amounted to € 19.0 million in total as of December 31, 2023 (December 31, 2022: € 12.0 million). The expense from impairment losses recognized in 2023 amounted to € 7.0 million (2022: € 0.0 million).
Information on pension funds that are classified as defined benefit plans in accordance with IAS 19 can be found in Note (33) “Provisions for employee benefits”.
Information on Executive Board and Supervisory Board compensation can be found in Note (46) “Executive Board and Supervisory Board compensation”. Above and beyond this, no material activities between companies of the Group and members of the Executive Board or the Supervisory Board of Merck KGaA, Darmstadt, Germany, the Executive Board or the Board of Partners of E. Merck KG, Darmstadt, Germany, or members of their immediate families took place in either fiscal 2023 or the previous year.