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, 2014
Patient services revenues	$	—		$	6,246,683		$	2,739,996		$	(118,341	)	$	8,868,338
Less: Provision for uncollectible accounts		—			(238,600	)		(128,284	)		—			(366,884	)
Net patient service revenues		—			6,008,083			2,611,712			(118,341	)		8,501,454
Capitated revenues		—			1,689,634			1,579,804			(8,150	)		3,261,288
Other revenues		684,066			1,639,828			24,155			(1,315,685	)		1,032,364
Total net revenues		684,066			9,337,545			4,215,671			(1,442,176	)		12,795,106
Operating expenses and charges		443,951			8,276,991			3,701,199			(1,442,176	)		10,979,965
Operating income		240,115			1,060,554			514,472			—			1,815,141
Debt (expense) and refinancing charges		(502,762	)		(363,623	)		(43,449	)		401,992			(507,842	)
Other income, net		385,532			11,731			7,103			(401,992	)		2,374
Income tax expense		46,856			397,268			2,219			—			446,343
Equity earnings in subsidiaries		647,085			335,691			—			(982,776	)		—
Net income		723,114			647,085			475,907			(982,776	)		863,330
Less: Net income attributable to noncontrolling interests		—			—			—			(140,216	)		(140,216	)
Net income attributable to DaVita HealthCare Partners Inc.	$	723,114		$	647,085		$	475,907		$	(1,122,992	)	$	723,114

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		$	2,420,975		$	(103,438	)	$	8,307,195
Less: Provision for uncollectible accounts		—			(177,415	)		(116,131	)		—			(293,546	)
Net patient service revenues		—			5,812,243			2,304,844			(103,438	)		8,013,649
Capitated revenues		—			1,427,321			1,560,244			(250	)		2,987,315
Other revenues		616,155			1,534,310			17,867			(1,405,246	)		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
For the year ended December 31, 2012
Patient services revenues	$	—		$	5,417,800		$	2,005,424		$	(71,322	)	$	7,351,902
Less: Provision for uncollectible accounts		—			(124,592	)		(110,626	)		—			(235,218	)
Net patient service revenues		—			5,293,208			1,894,798			(71,322	)		7,116,684
Capitated revenues		—			232,744			248,592			—			481,336
Other revenues		514,190			745,920			10,190			(682,040	)		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

Consolidating Statements of Comprehensive Income

	DaVita HealthCare Partners Inc.		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2014
Net income	$	723,114	$	647,085	$	475,907		$	(982,776	)	$	863,330
Other comprehensive income (losses)		580		—		(22,952	)		—			(22,372	)
Total comprehensive income		723,694		647,085		452,955			(982,776	)		840,958
Less: Comprehensive income attributable to noncontrolling interest		—		—		—			(140,216	)		(140,216	)
Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	723,694	$	647,085	$	452,955		$	(1,122,992	)	$	700,742
For the year ended December 31, 2013
Net income	$	633,446	$	522,778	$	397,259		$	(796,282	)	$	757,201
Other comprehensive income (losses)		14,868		—		(2,216	)		—			12,652
Total comprehensive income		648,314		522,778		395,043			(796,282	)		769,853
Less: Comprehensive income attributable to noncontrolling interest		—		—		—			(123,755	)		(123,755	)
Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	648,314	$	522,778	$	395,043		$	(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 (losses)		5,392		—		(1,205	)		—			4,187
Total comprehensive income		541,409		487,077		321,990			(705,052	)		645,424
Less: Comprehensive income attributable to noncontrolling interest		—		—		—			(105,220	)		(105,220	)
Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	541,409	$	487,077	$	321,990		$	(810,272	)	$	540,204

Consolidating Balance Sheets

	DaVita HealthCare Partners Inc.		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Total
As of December 31, 2014
Cash and cash equivalents	$	698,876	$	77,921	$	188,444	$	—		$	965,241
Accounts receivable, net		—		915,851		609,998		—			1,525,849
Other current assets		362,672		930,093		92,942		—			1,385,707
Total current assets		1,061,548		1,923,865		891,384		—			3,876,797
Property and equipment, net		195,690		1,473,188		800,221		—			2,469,099
Intangible assets, net		85,338		1,811,218		52,942		—			1,949,498
Investments in subsidiaries		8,868,335		1,561,195		—		(10,429,530	)		—
Intercompany receivables		3,723,454		—		564,241		(4,287,695	)		—
Other long-term assets and investments		70,309		60,385		101,332		—			232,026
Goodwill		—		7,958,221		1,457,074		—			9,415,295
Total assets	$	14,004,674	$	14,788,072	$	3,867,194	$	(14,717,225	)	$	17,942,715
Current liabilities	$	180,977	$	1,493,243	$	414,432	$	—		$	2,088,652
Intercompany payables		—		3,105,173		1,182,522		(4,287,695	)		—
Long-term debt and other long-term liabilities		8,124,863		1,321,321		217,603		—			9,663,787
Noncontrolling interests subject to put provisions		528,321		—		—		301,644			829,965
Total DaVita HealthCare Partners Inc. shareholders’' equity		5,170,513		8,868,335		1,561,195		(10,429,530	)		5,170,513
Noncontrolling interests not subject to put provisions		—		—		491,442		(301,644	)		189,798
Total equity		5,170,513		8,868,335		2,052,637		(10,731,174	)		5,360,311
Total liabilities and equity	$	14,004,674	$	14,788,072	$	3,867,194	$	(14,717,225	)	$	17,942,715
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

Consolidating Statements of Cash Flows

	DaVita HealthCare Partners Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2014
Cash flows from operating activities:
Net income.	$	723,114		$	647,085		$	475,907		$	(982,776	)	$	863,330
Changes in operating assets and liabilities and non cash items included in net income		(597,992	)		120,772			90,521			982,776			596,077
Net cash provided by operating activities		125,122			767,857			566,428			—			1,459,407
Cash flows from investing activities:
Additions of property and equipment, net		(51,374	)		(312,191	)		(277,765	)		—			(641,330	)
Acquisitions		—			(228,569	)		(43,525	)		—			(272,094	)
Proceeds from asset sales		—			8,791			—			—			8,791
Purchase of investments and other items		(333,803	)		(316	)		(38,977	)		—			(373,096	)
Net cash (used in) provided by investing activities		(385,177	)		(532,285	)		(360,267	)		—			(1,277,729	)
Cash flows from financing activities:
Long-term debt and related financing costs, net		4,513			(12,545	)		43			—			(7,989	)
Intercompany borrowing		410,437			(306,011	)		(104,426	)		—			—
Other items		(58,207	)		(14,099	)		(84,684	)		—			(156,990	)
Net cash provided by (used in) financing activities		356,743			(332,655	)		(189,067	)		—			(164,979	)
Effect of exchange rate changes on cash		—			—			2,293			—			2,293
Net increase (decrease) in cash and cash equivalents		96,688			(97,083	)		19,387			—			18,992
Cash and cash equivalents at beginning of the year		602,188			175,004			169,057			—			946,249
Cash and cash equivalents at the end of the year	$	698,876		$	77,921		$	188,444		$	—		$	965,241
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

Consolidating Statements of Cash Flows

	DaVita HealthCare Partners Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
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