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Acquisitions | 12 Months Ended
--- | ---
Dec. 31, 2015
Business Combinations [Abstract] |
Acquisitions |
21. | Acquisitions
On August 17, 2015, the Company entered into a definitive agreement to acquire Colorado-based Renal Ventures Limited, LLC (Renal Ventures), including a 100 percent interest in all dialysis centers owned by Renal Ventures, for approximately $415,000 in cash, subject to, among other things, adjustments for certain items such as working capital. Renal Ventures currently operates 36 dialysis clinics in six states serving approximately 2,400 patients, and also operates other ancillary businesses. The transaction is subject to approval by the Federal Trade Commission (FTC) including Hart-Scott-Rodino antitrust clearance. The Company anticipates that it will be required by the FTC to divest a certain number of outpatient dialysis centers as a condition of the transaction. The Company currently expects this transaction to close in 2016. On November 23, 2015, the Company entered into a definitive merger agreement to acquire The Everett Clinic Medical Group (TEC), a Washington state physician group, for approximately $385,000 in cash, subject to, among other things, adjustments for certain items such as working capital. TEC has 500 providers in primary and specialty care locations throughout Snohomish County, Washington who care for more than 315,000 patients. The Company currently expects this transaction to close in early 2016. During 2015, the Company acquired dialysis-related and other ancillary businesses consisting of six dialysis centers in the U.S., 21 dialysis centers outside of the U.S., three vascular access centers, and other medical businesses for a total of $96,469 in net cash and deferred purchase price and earn-outs of $8,395. During 2014, the Company acquired dialysis-related and other ancillary businesses consisting of 18 dialysis centers in the U.S., seven dialysis centers outside of the U.S. and other medical businesses for a total of $272,094 in net cash and deferred purchase price of $23,781. During 2013, the Company acquired dialysis-related and other ancillary businesses consisting of 26 dialysis centers in the U.S., 38 dialysis centers outside of the U.S. and other medical businesses for a total of $310,394 in net cash and deferred purchase price of $24,683. The assets and liabilities for all acquisitions were recorded at their estimated fair values at the dates of the acquisitions and are included in the Company’s financial statements and operating results from the effective dates of the acquisitions. For several of the 2015 acquisitions, certain income tax amounts are pending final evaluation and quantification of any pre-acquisition tax contingencies. In addition, valuation of medical claims liabilities and certain other working capital items relating to several of these acquisitions are pending final quantification. The following table summarizes the assets acquired and liabilities assumed in the above described transactions and recognized at their acquisition dates at estimated fair values, as well as the estimated fair value of the noncontrolling interests assumed in these transactions:
|  | Year ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Current assets |  | $ | 3,843 |  |  | $ | 915 |  |  | $ | 7,215 |
Property and equipment |  |  | 12,436 |  |  |  | 5,999 |  |  |  | 23,760 |
Customer relationships |  |  | — |  |  |  | 74,515 |  |  |  | 31,838 |
Non-compete agreements |  |  | 8,959 |  |  |  | 16,585 |  |  |  | 17,710 |
Amortizable intangible and other long-term assets |  |  | 4,345 |  |  |  | 4,193 |  |  |  | 31,098 |
Goodwill |  |  | 97,093 |  |  |  | 221,514 |  |  |  | 271,267 |
Long-term deferred income taxes |  |  | (1,467 | ) |  |  | — |  |  |  | (5,666 | )
Noncontrolling interests assumed |  |  | (18,905 | ) |  |  | (25,963 | ) |  |  | (22,880 | )
Liabilities assumed |  |  | (1,440 | ) |  |  | (1,883 | ) |  |  | (19,265 | )
Aggregate purchase cost |  | $ | 104,864 |  |  | $ | 295,875 |  |  | $ | 335,077 |
Amortizable intangible assets acquired during 2015, 2014 and 2013 had weighted-average estimated useful lives of 8, 10 and 14 years, respectively. The majority of the intangible assets acquired relate to customer relationships and non-compete agreements. The weighted-average amortization period for customer relationships was 10 and 17 years for 2014 and 2013, respectively. The weighted-average amortization period for non-compete agreements was 8 years for both 2015 and 2014, and 9 years for 2013. The total amount of goodwill deductible for tax purposes associated with these acquisitions for 2015, 2014, and 2013 was approximately $73,733, $175,247 and $221,454, respectively. Contingent earn-out obligations The Company has several contingent earn-out obligations associated with acquisitions that could result in the Company paying the former shareholders of acquired companies a total of up to approximately $129,626 if certain EBITDA, operating income performance targets or quality margins are met over the next one to two years. Contingent earn-out obligations are remeasured to fair value at each reporting date until the contingencies are resolved with changes in the liability due to the remeasurement recorded in earnings. See Note 24 to the consolidated financial statements for further details. As of December 31, 2015, the Company has estimated the fair value of these contingent earn-out obligations to be $34,135, of which a total of $29,050 is included in other liabilities and the remaining $5,085 is included in other long-term liabilities in the Company’s consolidated balance sheet. The following is a reconciliation of changes in the contingent earn-out obligations for the year ended December 31, 2015:
Beginning balance, January 1, 2015 |  | $ | 39,129 |
Contingent earn-out obligations associated with acquisitions |  |  | 990 |
Remeasurement of fair value |  |  | (428 | )
Payments of contingent earn-out obligations |  |  | (5,556 | )
|  | $ | 34,135 |
Pro forma financial information (unaudited) The following summary, prepared on a pro forma basis, combines the results of operations as if all acquisitions and divestitures in 2015 and 2014 had been consummated as of the beginning of 2014, including the impact of certain adjustments such as amortization of intangibles, interest expense on acquisition financing and income tax effects.
|  | Year ended December 31, |
|  | 2015 |  |  | 2014 |
|  | (unaudited) |
Pro forma net revenues |  | $ | 13,798,581 |  |  | $ | 13,040,206 |
Pro forma net income attributable to DaVita HealthCare Partners Inc. |  |  | 273,614 |  |  |  | 738,991 |
Pro forma basic net income per share attributable to DaVita HealthCare Partners Inc. |  |  | 1.29 |  |  |  | 3.48 |
Pro forma diluted net income per share attributable to DaVita HealthCare Partners Inc. |  |  | 1.27 |  |  |  | 3.41 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1497-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1490-128463 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1392-128463 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1486-128463 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4922-128472 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4934-128472 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1383-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479 + Details
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