| Summary of Segment Net Revenues, Segment Operating Income Loss and Reconciliation of Segment Income to Consolidated Income from Continuing Operations Before Income Taxes |
The following is a summary of segment revenues, segment operating margin (loss), and a reconciliation of segment operating margin to consolidated income from continuing operations before income taxes:
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Year ended December 31, |
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2014 |
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2013 |
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2012 |
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Segment revenues: |
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U.S. dialysis and related lab services |
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Patient service revenues: |
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External sources |
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$ |
8,513,089 |
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$ |
7,998,692 |
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$ |
7,299,032 |
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Intersegment revenues |
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37,112 |
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34,080 |
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17,786 |
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Total dialysis and related lab services revenues |
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8,550,201 |
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8,032,772 |
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7,316,818 |
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Less: Provision for uncollectible accounts |
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(353,028 |
) |
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(281,146 |
) |
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(233,580 |
) |
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Net dialysis and related lab services patient
service revenues |
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8,197,173 |
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7,751,626 |
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7,083,238 |
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Other revenues(1) |
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13,498 |
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12,600 |
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11,447 |
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Total net dialysis and related lab services
revenues |
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8,210,671 |
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7,764,226 |
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7,094,685 |
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HCP |
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HCP revenues: |
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Capitated revenues |
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$ |
3,190,903 |
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$ |
2,919,964 |
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$ |
419,431 |
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Net patient service revenues |
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219,306 |
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220,251 |
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34,407 |
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Other revenues(2) |
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91,374 |
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55,723 |
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23,552 |
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Intersegment capitated and other revenues |
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|
716 |
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250 |
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— |
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Total revenues |
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$ |
3,502,299 |
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$ |
3,196,188 |
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$ |
477,390 |
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Other - Ancillary services and strategic initiatives |
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Net patient service revenues |
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$ |
122,087 |
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$ |
75,852 |
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$ |
16,824 |
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Capitated revenues |
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70,385 |
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67,351 |
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61,906 |
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Other external sources |
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927,492 |
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694,763 |
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553,261 |
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Intersegment revenues |
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19,535 |
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13,916 |
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10,481 |
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Total ancillary services and strategic initiatives
revenues |
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1,139,499 |
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851,882 |
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642,472 |
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Total net segment revenues |
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12,852,469 |
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11,812,296 |
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8,214,547 |
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Elimination of intersegment revenues |
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(57,363 |
) |
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(48,246 |
) |
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(28,267 |
) |
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Consolidated net revenues |
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$ |
12,795,106 |
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$ |
11,764,050 |
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$ |
8,186,280 |
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Segment operating margin (loss):(3) |
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U.S. dialysis and related lab services |
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$ |
1,637,626 |
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$ |
1,200,198 |
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$ |
1,372,265 |
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HCP |
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214,983 |
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385,253 |
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66,930 |
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Other——Ancillary services and strategic initiatives |
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(24,456 |
) |
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(38,595 |
) |
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(64,877 |
) |
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Total segment margin |
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1,828,153 |
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1,546,856 |
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1,374,318 |
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Reconciliation of segment operating margin to
consolidated income from continuing operations before
income taxes: |
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Contingent earn-out obligation adjustment |
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— |
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56,977 |
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— |
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Corporate support costs(4) |
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(13,012 |
) |
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(53,699 |
) |
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(46,481 |
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Transaction expenses |
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— |
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— |
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(30,753 |
) |
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Consolidated operating income |
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1,815,141 |
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1,550,134 |
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1,297,084 |
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Debt expense |
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(410,294 |
) |
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(429,943 |
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(288,554 |
) |
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Debt refinancing and redemption charges |
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(97,548 |
) |
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— |
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(10,963 |
) |
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Other income |
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2,374 |
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4,787 |
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3,737 |
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Consolidated income from continuing
operations before income taxes |
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$ |
1,309,673 |
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$ |
1,124,978 |
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$ |
1,001,304 |
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(1) |
Includes management fees for providing management and administrative services to dialysis centers in which the Company owns a minority equity investment or which are wholly-owned by third parties. |
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(2) |
Other revenues primarily relate to providing medical consulting services. |
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(3) |
Certain costs previously reported in the ancillary services and strategic initiatives have been reclassified to U.S. dialysis and related lab services to conform to the current year presentation. |
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(4) |
Corporate support costs in 2013 also include $7,721 of an adjustment to reduce a tax asset associated with the HCP acquisition escrow provisions. | |
| Summary of Assets by Segment |
Summary of assets by segment is as follows:
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December 31, |
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2014 |
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2013 |
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Segment assets |
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U.S. dialysis and related lab services (including equity investments of $28,138 and $27,009, respectively) |
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$ |
10,959,096 |
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$ |
10,248,993 |
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HCP (including equity investments of $15,393 and $13,677, respectively) |
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6,285,984 |
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6,265,767 |
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Other - —Ancillary services and strategic initiatives(1) (including equity investments of $22,106 in 2014) |
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697,635 |
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584,117 |
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Consolidated assets |
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$ |
17,942,715 |
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$ |
17,098,877 |
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(1) |
Includes approximately $44,000 and $26,000 in 2014 and 2013, respectively, of net property and equipment related to the Company’s international operations. | |