Consolidating financial statements (Tables)

Consolidating Statements of Income


	DaVita HealthCare Partners Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2013
Patient services revenues	$	—		$	5,989,658		$	2,344,614		$	(27,077	)	$	8,307,195
Less: Provision for uncollectible accounts		—			(177,415	)		(116,131	)		—			(293,546	)

Net patient service revenues		—			5,812,243			2,228,483			(27,077	)		8,013,649
Capitated revenues		—			1,427,321			1,560,244			(250	)		2,987,315
Other revenues		616,155			1,534,310			94,228			(1,481,607	)		763,086

Total net revenues		616,155			8,773,874			3,882,955			(1,508,934	)		11,764,050
Operating expenses and charges		434,776			7,843,476			3,444,598			(1,508,934	)		10,213,916

Operating income		181,379			930,398			438,357			—			1,550,134
Debt (expense)		(427,141	)		(366,188	)		(39,413	)		402,799			(429,943	)
Other income, net		402,910			1,903			2,773			(402,799	)		4,787
Income tax expense		59,716			303,603			17,694			—			381,013
Equity earnings in subsidiaries		536,014			260,268			—			(796,282	)		—

Income from continuing operations		633,446			522,778			384,023			(796,282	)		743,965
Discontinued operations net of gain on disposal of discontinued operations		—			—			13,236			—			13,236

Net income		633,446			522,778			397,259			(796,282	)		757,201
Less: Net income attributable to noncontrolling interests		—			—			—			(123,755	)		(123,755	)

Net income attributable to DaVita HealthCare Partners Inc.	$	633,446		$	522,778		$	397,259		$	(920,037	)	$	633,446

Consolidating Statements of Income


	DaVita HealthCare Partners Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2012
Patient services revenues	$	—		$	5,417,800		$	1,988,508		$	(54,406	)	$	7,351,902
Less: Provision for uncollectible accounts		—			(124,592	)		(110,626	)		—			(235,218	)

Net patient service revenues		—			5,293,208			1,877,882			(54,406	)		7,116,684
Capitated revenues		—			232,744			248,592			—			481,336
Other revenues		514,190			745,920			27,106			(698,956	)		588,260

Total net revenues		514,190			6,271,872			2,153,580			(753,362	)		8,186,280
Operating expenses and charges		365,680			5,479,531			1,797,347			(753,362	)		6,889,196

Operating income		148,510			792,341			356,233			—			1,297,084
Debt (expense) and refinancing charges		(331,944	)		(207,499	)		(27,193	)		267,119			(299,517	)
Other income, net		265,508			4,305			1,043			(267,119	)		3,737
Income tax expense		32,912			320,267			6,666			—			359,845
Equity earnings in subsidiaries		486,855			218,197			—			(705,052	)		—

Income from continuing operations		536,017			487,077			323,417			(705,052	)		641,459
Discontinued operations		—			—			(222	)		—			(222	)

Net income		536,017			487,077			323,195			(705,052	)		641,237
Less: Net income attributable to noncontrolling interests		—			—			—			(105,220	)		(105,220	)

Net income attributable to DaVita HealthCare Partners Inc.	$	536,017		$	487,077		$	323,195		$	(810,272	)	$	536,017

For the year ended December 31, 2011
Patient services revenues	$	—		$	5,047,701		$	1,471,910		$	(49,071	)	$	6,470,540
Less: Provision for uncollectible accounts		—			(127,049	)		(63,185	)		—			(190,234	)

Net patient service revenues		—			4,920,652			1,408,725			(49,071	)		6,280,306
Capitated revenues		—			45,133			—			—			45,133
Other revenues		457,460			434,754			9,534			(495,381	)		406,367

Total net revenues		457,460			5,400,539			1,418,259			(544,452	)		6,731,806
Operating expenses and charges		301,255			4,699,956			1,120,334			(544,452	)		5,577,093

Operating income		156,205			700,583			297,925			—			1,154,713
Debt (expense)		(242,730	)		(218,182	)		(9,215	)		229,037			(241,090	)
Other income, net		229,658			1,583			778			(229,037	)		2,982
Income tax expense		56,681			248,210			20,401			—			325,292
Equity earnings in subsidiaries		391,549			184,475			—			(576,024	)		—

Income from continuing operations		478,001			420,249			269,087			(576,024	)		591,313
Discontinued operations net of loss on disposal of discontinued operations		—			(4,191	)		(13,727	)		—			(17,918	)

Net income		478,001			416,058			255,360			(576,024	)		573,395
Less: Net income attributable to noncontrolling interests		—			—			—			(95,394	)		(95,394	)

Net income attributable to DaVita HealthCare Partners Inc.	$	478,001		$	416,058		$	255,360		$	(671,418	)	$	478,001

Consolidating Statements of Comprehensive Income


	DaVita HealthCare Partners Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2013
Net income	$	633,446		$	522,778	$	397,259	$	(796,282	)	$	757,201
Other comprehensive income		12,652			—		—		—			12,652

Total comprehensive income		646,098			522,778		397,259		(796,282	)		769,853
Less: Comprehensive income attributable to noncontrolling interest		—			—		—		(123,755	)		(123,755	)

Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	646,098		$	522,778	$	397,259	$	(920,037	)	$	646,098

For the year ended December 31, 2012
Net income	$	536,017		$	487,077	$	323,195	$	(705,052	)	$	641,237
Other comprehensive income		4,187			—		—		—			4,187

Total comprehensive income		540,204			487,077		323,195		(705,052	)		645,424
Less: Comprehensive income attributable to noncontrolling interest		—			—		—		(105,220	)		(105,220	)

Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	540,204		$	487,077	$	323,195	$	(810,272	)	$	540,204

For the year ended December 31, 2011
Net income	$	478,001		$	416,058	$	255,360	$	(576,024	)	$	573,395
Other comprehensive loss		(19,987	)		—		—		—			(19,987	)

Total comprehensive income		458,014			416,058		255,360		(576,024	)		553,408
Less: Comprehensive income attributable to noncontrolling interest		—			—		—		(95,394	)		(95,394	)

Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	458,014		$	416,058	$	255,360	$	(671,418	)	$	458,014

Consolidating Balance Sheets


	DaVita HealthCare Partners Inc.		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Total
As of December 31, 2013
Cash and cash equivalents	$	602,188	$	175,004	$	169,057	$	—		$	946,249
Accounts receivable, net		—		939,543		545,620		—			1,485,163
Other current assets		27,910		904,852		108,104		—			1,040,866

Total current assets		630,098		2,019,399		822,781		—			3,472,278
Property and equipment, net		177,633		1,378,017		633,761		—			2,189,411
Intangible assets, net		77,531		1,882,685		64,157		—			2,024,373
Investments in subsidiaries		8,231,059		1,391,655		—		(9,622,714	)		—
Intercompany receivables		3,983,214		—		480,993		(4,464,207	)		—
Other long-term assets and investments		61,391		70,728		67,722		—			199,841
Goodwill		—		7,850,910		1,362,064		—			9,212,974

Total assets	$	13,160,926	$	14,593,394	$	3,431,478	$	(14,086,921	)	$	17,098,877

Current liabilities	$	328,875	$	1,776,419	$	356,755	$	—		$	2,462,049
Intercompany payables		—		3,426,433		1,037,774		(4,464,207	)		—
Long-term debt and other long-term liabilities		7,948,390		1,159,483		226,114		—			9,333,987
Noncontrolling interests subject to put provisions		451,182		—		—		246,118			697,300
Total DaVita HealthCare Partners Inc. shareholders’ equity		4,432,479		8,231,059		1,391,655		(9,622,714	)		4,432,479
Noncontrolling interests not subject to put provisions		—		—		419,180		(246,118	)		173,062

Total equity		4,432,479		8,231,059		1,810,835		(9,868,832	)		4,605,541

Total liabilities and equity	$	13,160,926	$	14,593,394	$	3,431,478	$	(14,086,921	)	$	17,098,877

As of December 31, 2012
Cash and cash equivalents	$	195,037	$	166,107	$	172,604	$	—		$	533,748
Accounts receivable, net		—		963,854		460,449		—			1,424,303
Other current assets		13,928		786,710		128,361		—			928,999

Total current assets		208,965		1,916,671		761,414		—			2,887,050
Property and equipment, net		143,684		1,237,166		491,520		—			1,872,370
Intangible assets, net		96,472		1,995,372		36,274		—			2,128,118
Investments in subsidiaries		7,444,676		1,313,621		—		(8,758,297	)		—
Intercompany receivables		4,871,310		—		423,626		(5,294,936	)		—
Other long-term assets and investments		52,787		67,000		54,558		—			174,345
Goodwill		—		7,730,020		1,222,730		—			8,952,750

Total assets	$	12,817,894	$	14,259,850	$	2,990,122	$	(14,053,233	)	$	16,014,633

Current liabilities	$	362,727	$	1,281,305	$	372,393	$	—		$	2,016,425
Intercompany payables		—		4,598,960		695,976		(5,294,936	)		—
Long-term debt and other long-term liabilities		8,326,266		990,303		184,022		—			9,500,591
Noncontrolling interests subject to put provisions		365,764		—		—		214,928			580,692
Total DaVita HealthCare Partners Inc. shareholders’ equity		3,763,137		7,389,282		1,369,015		(8,758,297	)		3,763,137
Noncontrolling interests not subject to put provisions		—		—		368,716		(214,928	)		153,788

Total equity		3,763,137		7,389,282		1,737,731		(8,973,225	)		3,916,925

Total liabilities and equity	$	12,817,894	$	14,259,850	$	2,990,122	$	(14,053,233	)	$	16,014,633

Consolidating Statements of Cash Flows


	DaVita HealthCare Partners Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2013
Cash flows from operating activities:
Net income.	$	633,446		$	522,778		$	397,259		$	(796,282	)	$	757,201
Changes in operating assets and liabilities and non cash items included in net income		(443,071	)		652,374			10,555			796,282			1,016,140

Net cash provided by operating activities		190,375			1,175,152			407,814			—			1,773,341

Cash flows from investing activities:
Additions of property and equipment, net		(55,252	)		(337,042	)		(225,303	)		—			(617,597	)
Acquisitions		—			(156,830	)		(153,564	)		—			(310,394	)
Proceeds from asset sales		60,650			1,608			—			—			62,258
Purchase of investments and other items		(4,944	)		(3,502	)		(2,703	)		—			(11,149	)

Net cash provided by (used in) by investing activities		454			(495,766	)		(381,570	)		—			(876,882	)

Cash flows from financing activities:
Long-term debt and related financing costs, net		(421,739	)		(11,061	)		(5,207	)		—			(438,007	)
Intercompany borrowing		585,441			(664,154	)		78,713			—			—
Other items		52,620			4,726			(102,330	)		—			(44,984	)

Net cash provided by (used in) financing activities		216,322			(670,489	)		(28,824	)		—			(482,991	)

Effect of exchange rate changes on cash		—			—			(967	)		—			(967	)
Net increase (decrease) in cash and cash equivalents		407,151			8,897			(3,547	)		—			412,501
Cash and cash equivalents at beginning of the year		195,037			166,107			172,604			—			533,748

Cash and cash equivalents at the end of the year	$	602,188		$	175,004		$	169,057		$	—		$	946,249

For the year ended December 31, 2012
Cash flows from operating activities:
Net income.	$	536,017		$	487,077		$	323,195		$	(705,052	)	$	641,237
Changes in operating assets and liabilities and non cash items included in net income		(383,619	)		15,693			122,485			705,052			459,611

Net cash provided by operating activities		152,398			502,770			445,680			—			1,100,848

Cash flows from investing activities:
Additions of property and equipment, net		(72,125	)		(305,885	)		(172,136	)		—			(550,146	)
Acquisitions		(3,645,760	)		(564,499	)		(83,818	)		—			(4,294,077	)
Proceeds from asset sales		—			3,559			—			—			3,559
Proceeds from investment sales and other items		2,841			(1,761	)		7,134			—			8,214

Net cash used in by investing activities		(3,715,044	)		(868,586	)		(248,820	)		—			(4,832,450	)

Cash flows from financing activities:
Long-term debt and related financing costs, net		3,909,760			(23,805	)		18,938			—			3,904,893
Intercompany borrowing		(586,050	)		580,825			5,225			—			—
Other items		68,697			(25,097	)		(76,109	)		—			(32,509	)

Net cash provided by (used in) financing activities		3,392,407			531,923			(51,946	)		—			3,872,384

Effect of exchange rate changes on cash		—			—			(786	)		—			(786	)
Net (decrease) increase in cash and cash equivalents		(170,239	)		166,107			144,128			—			139,996
Cash and cash equivalents at beginning of the year		365,276			—			28,476			—			393,752

Cash and cash equivalents at the end of the year	$	195,037		$	166,107		$	172,604		$	—		$	533,748

Consolidating Statements of Cash Flows


	DaVita HealthCare Partners Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2011
Cash flows from operating activities:
Net income.	$	478,001		$	416,058		$	255,360		$	(576,024	)	$	573,395
Changes in operating assets and liabilities and non cash items included in net income		(230,599	)		287,537			(26,311	)		576,024			606,651

Net cash provided by operating activities		247,402			703,595			229,049			—			1,180,046

Cash flows from investing activities:
Additions of property and equipment, net		(52,653	)		(232,540	)		(114,963	)		—			(400,156	)
Acquisitions		—			(1,048,136	)		(29,306	)		—			(1,077,442	)
Proceeds from asset sales		—			75,183			—			—			75,183
Proceeds from investment sales and other items		(6,077	)		9,264			—			—			3,187

Net cash used in by investing activities		(58,730	)		(1,196,229	)		(144,269	)		—			(1,399,228	)

Cash flows from financing activities:
Long-term debt and related financing costs, net		113,762			(1,896	)		15,794			—			127,660
Intercompany borrowing		(502,763	)		498,532			4,231			—			—
Other items		(291,198	)		(4,002	)		(79,643	)		—			(374,843	)

Net cash (used in) provided by financing activities		(680,199	)		492,634			(59,618	)		—			(247,183	)

Net (decrease) increase in cash and cash equivalents		(491,527	)		—			25,162			—			(466,365	)
Cash and cash equivalents at beginning of the year		856,803			—			3,314			—			860,117

Cash and cash equivalents at the end of the year	$	365,276		$	—		$	28,476		$	—		$	393,752