21.	Condensed consolidating financial statements

The following information is presented in accordance with Rule 3-10 of Regulation S-X. The operating and investing activities of the separate legal entities included in the Company’s consolidated financial statements are fully interdependent and integrated. Revenues and operating expenses of the separate legal entities include intercompany charges for management and other administrative services. The Company’s senior notes are guaranteed by substantially all of its domestic subsidiaries. The subsidiary guarantors have guaranteed the senior notes on a joint and several basis. However, a subsidiary guarantor will be released from its obligations under its guarantee of the senior notes and the indentures governing the senior notes if, in general, there is a sale or other disposition of all or substantially all of the assets of such subsidiary guarantor, including by merger or consolidation, or a sale or other disposition of all of the equity interests in such subsidiary guarantor held by the Company and its restricted subsidiaries, as defined in the indentures; such subsidiary guarantor is designated by the Company as an unrestricted subsidiary, as defined in the indentures, or otherwise ceases to be a restricted subsidiary of the Company, in each case in accordance with the indentures; or such subsidiary guarantor no longer guarantees any other indebtedness, as defined in the indentures, of the Company or any of its restricted subsidiaries, except for guarantees that are contemporaneously released. The senior notes are not guaranteed by certain of the Company’s domestic subsidiaries, any of the Company’s foreign subsidiaries, or any entities that do not constitute subsidiaries within the meaning of the indentures, such as corporations in which the Company holds capital stock with less than a majority of the voting power, joint ventures and partnerships in which the Company holds less than a majority of the equity or voting interests, non-owned entities and third parties.

Condensed Consolidating Statements of Income

	DaVita						Non-
	HealthCare			Guarantor			Guarantor			Consolidating			Consolidated
For the three months ended June 30, 2016	Partners Inc.			subsidiaries			subsidiaries			adjustments			total
Patient service revenues	$	—		$	1,664,361		$	947,087		$	(40,794	)	$	2,570,654
Less: Provision for uncollectible accounts		—			(74,498	)		(36,930	)		—			(111,428	)
Net patient service revenues		—			1,589,863			910,157			(40,794	)		2,459,226
Capitated revenues		—			461,573			436,337			(84	)		897,826
Other revenues		196,910			523,224			44,608			(404,143	)		360,599
Total net revenues		196,910			2,574,660			1,391,102			(445,021	)		3,717,651
Operating expenses		134,072			2,510,119			1,189,411			(445,021	)		3,388,581
Operating income		62,838			64,541			201,691			—			329,070
Debt expense		(102,101	)		(91,259	)		(12,998	)		103,464			(102,894	)
Other income		98,654			5,421			2,604			(103,464	)		3,215
Income tax expense		41,942			89,203			3,743			—			134,888
Equity earnings in subsidiaries		35,933			146,433			—			(182,366	)		—
Net income		53,382			35,933			187,554			(182,366	)		94,503
Less: Net income attributable to noncontrolling interests		—			—			—			(41,121	)		(41,121	)
Net income attributable to DaVita HealthCare Partners Inc.	$	53,382		$	35,933		$	187,554		$	(223,487	)	$	53,382

	DaVita						Non-
	HealthCare			Guarantor			Guarantor			Consolidating			Consolidated
For the three months ended June 30, 2015	Partners Inc.			subsidiaries			subsidiaries			adjustments			total
Patient service revenues	$	—		$	1,663,352		$	735,456		$	(35,229	)	$	2,363,579
Less: Provision for uncollectible accounts		—			(70,245	)		(35,720	)		—			(105,965	)
Net patient service revenues		—			1,593,107			699,736			(35,229	)		2,257,614
Capitated revenues		—			439,734			426,542			(86	)		866,190
Other revenues		189,586			468,821			7,366			(354,959	)		310,814
Total net revenues		189,586			2,501,662			1,133,644			(390,274	)		3,434,618
Operating expenses		128,643			2,200,706			1,014,995			(390,274	)		2,954,070
Operating income		60,943			300,956			118,649			—			480,548
Debt expense, including debt redemption charges		(150,105	)		(85,119	)		(11,480	)		94,384			(152,320	)
Other income		91,000			4,348			1,347			(94,384	)		2,311
Income tax (benefit) expense		(1,667	)		133,859			(9,430	)		—			122,762
Equity earnings in subsidiaries		166,972			80,646			—			(247,618	)		—
Net income		170,477			166,972			117,946			(247,618	)		207,777
Less: Net income attributable to noncontrolling interests		—			—			—			(37,300	)		(37,300	)
Net income attributable to DaVita HealthCare Partners Inc.	$	170,477		$	166,972		$	117,946		$	(284,918	)	$	170,477

	DaVita						Non-
	HealthCare			Guarantor			Guarantor			Consolidating			Consolidated
For the six months ended June 30, 2016	Partners Inc.			subsidiaries			subsidiaries			adjustments			total
Patient service revenues	$	—		$	3,317,673		$	1,810,929		$	(80,210	)	$	5,048,392
Less: Provision for uncollectible accounts		—			(133,311	)		(87,322	)		—			(220,633	)
Net patient service revenues		—			3,184,362			1,723,607			(80,210	)		4,827,759
Capitated revenues		—			928,574			856,510			(211	)		1,784,873
Other revenues		383,885			1,008,540			76,324			(782,594	)		686,155
Total net revenues		383,885			5,121,476			2,656,441			(863,015	)		7,298,787
Operating expenses		256,345			4,887,749			2,323,749			(863,015	)		6,604,828
Operating income		127,540			233,727			332,692			—			693,959
Debt expense		(203,202	)		(183,432	)		(24,512	)		205,368			(205,778	)
Other income		197,214			9,757			4,588			(205,368	)		6,191
Income tax expense		77,088			162,457			22,165			—			261,710
Equity earnings in subsidiaries		106,352			208,757			—			(315,109	)		—
Net income		150,816			106,352			290,603			(315,109	)		232,662
Less: Net income attributable to noncontrolling interests		—			—			—			(81,846	)		(81,846	)
Net income attributable to DaVita HealthCare Partners Inc.	$	150,816		$	106,352		$	290,603		$	(396,955	)	$	150,816

	DaVita						Non-
	HealthCare			Guarantor			Guarantor			Consolidating			Consolidated
For the six months ended June 30, 2015	Partners Inc.			subsidiaries			subsidiaries			adjustments			total
Patient service revenues	$	—		$	3,245,311		$	1,459,299		$	(69,216	)	$	4,635,394
Less: Provision for uncollectible accounts		—			(134,322	)		(70,807	)		—			(205,129	)
Net patient service revenues		—			3,110,989			1,388,492			(69,216	)		4,430,265
Capitated revenues		—			887,072			829,666			(33	)		1,716,705
Other revenues		357,851			879,849			13,678			(675,765	)		575,613
Total net revenues		357,851			4,877,910			2,231,836			(745,014	)		6,722,583
Operating expenses		252,412			4,798,659			2,000,134			(745,014	)		6,306,191
Operating income		105,439			79,251			231,702			—			416,392
Debt expense, including debt redemption charges		(245,583	)		(170,902	)		(20,766	)		187,539			(249,712	)
Other income		182,023			4,401			2,893			(187,539	)		1,778
Income tax expense		15,847			4,624			16,358			—			36,829
Equity earnings in subsidiaries		33,828			125,702			—			(159,530	)		—
Net income		59,860			33,828			197,471			(159,530	)		131,629
Less: Net income attributable to noncontrolling interests		—			—			—			(71,769	)		(71,769	)
Net income attributable to DaVita HealthCare Partners Inc.	$	59,860		$	33,828		$	197,471		$	(231,299	)	$	59,860

Condensed Consolidating Statements of Comprehensive Income

	DaVita					Non-
	HealthCare			Guarantor		Guarantor			Consolidating			Consolidated
For the three months ended June 30, 2016	Partners Inc.			subsidiaries		subsidiaries			adjustments			total
Net income	$	53,382		$	35,933	$	187,554		$	(182,366	)	$	94,503
Other comprehensive loss		(1,530	)		—		(4,844	)		—			(6,374	)
Total comprehensive income		51,852			35,933		182,710			(182,366	)		88,129
Less: comprehensive income attributable to the noncontrolling interests		—			—		—			(41,270	)		(41,270	)
Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	51,852		$	35,933	$	182,710		$	(223,636	)	$	46,859

	DaVita					Non-
	HealthCare			Guarantor		Guarantor		Consolidating			Consolidated
For the three months ended June 30, 2015	Partners Inc.			subsidiaries		subsidiaries		adjustments			total
Net income	$	170,477		$	166,972	$	117,946	$	(247,618	)	$	207,777
Other comprehensive (loss) income		(1,779	)		—		5,025		—			3,246
Total comprehensive income		168,698			166,972		122,971		(247,618	)		211,023
Less: comprehensive income attributable to the noncontrolling interests		—			—		—		(37,300	)		(37,300	)
Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	168,698		$	166,972	$	122,971	$	(284,918	)	$	173,723

	DaVita					Non-
	HealthCare			Guarantor		Guarantor		Consolidating			Consolidated
For the six months ended June 30, 2016	Partners Inc.			subsidiaries		subsidiaries		adjustments			total
Net income	$	150,816		$	106,352	$	290,603	$	(315,109	)	$	232,662
Other comprehensive (loss) income		(6,398	)		—		6,337		—			(61	)
Total comprehensive income		144,418			106,352		296,940		(315,109	)		232,601
Less: comprehensive income attributable to the noncontrolling interests		—			—		—		(81,995	)		(81,995	)
Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	144,418		$	106,352	$	296,940	$	(397,104	)	$	150,606

	DaVita					Non-
	HealthCare			Guarantor		Guarantor			Consolidating			Consolidated
For the six months ended June 30, 2015	Partners Inc.			subsidiaries		subsidiaries			adjustments			total
Net income	$	59,860		$	33,828	$	197,471		$	(159,530	)	$	131,629
Other comprehensive loss		(6,502	)		—		(12,860	)		—			(19,362	)
Total comprehensive income		53,358			33,828		184,611			(159,530	)		112,267
Less: comprehensive income attributable to the noncontrolling interests		—			—		—			(71,769	)		(71,769	)
Comprehensive income attributable to DaVita HealthCare Partners Inc.	$	53,358		$	33,828	$	184,611		$	(231,299	)	$	40,498

Condensed Consolidating Balance Sheets

	DaVita				Non-
	HealthCare		Guarantor		Guarantor		Consolidating			Consolidated
As of June 30, 2016	Partners Inc.		subsidiaries		subsidiaries		adjustments			total
Cash and cash equivalents	$	1,028,594	$	35,769	$	219,053	$	—		$	1,283,416
Accounts receivable, net		—		1,181,421		693,982		—			1,875,403
Other current assets		408,147		804,854		124,397		—			1,337,398
Total current assets		1,436,741		2,022,044		1,037,432		—			4,496,217
Property and equipment, net		278,446		1,625,879		1,068,082		—			2,972,407
Intangible assets, net		606		1,579,344		51,051		—			1,631,001
Investments in subsidiaries		9,075,477		1,615,926		—		(10,691,403	)		—
Intercompany receivables		3,467,431		—		724,775		(4,192,206	)		—
Other long-term assets and investments		66,191		56,011		108,846		—			231,048
Goodwill		—		7,877,424		1,483,533		—			9,360,957
Total assets	$	14,324,892	$	14,776,628	$	4,473,719	$	(14,883,609	)	$	18,691,630
Current liabilities	$	346,065	$	1,792,474	$	507,123	$	—		$	2,645,662
Intercompany payables		—		2,712,065		1,480,141		(4,192,206	)		—
Long-term debt and other long-term liabilities		8,641,063		1,196,612		312,687		—			10,150,362
Noncontrolling interests subject to put provisions		591,710		—		—		345,193			936,903
Total DaVita HealthCare Partners Inc. shareholders’ equity		4,746,054		9,075,477		1,615,926		(10,691,403	)		4,746,054
Noncontrolling interests not subject to put provisions		—		—		557,842		(345,193	)		212,649
Total equity		4,746,054		9,075,477		2,173,768		(11,036,596	)		4,958,703
Total liabilities and equity	$	14,324,892	$	14,776,628	$	4,473,719	$	(14,883,609	)	$	18,691,630

	DaVita				Non-
	HealthCare		Guarantor		Guarantor		Consolidating			Consolidated
As of December 31, 2015	Partners Inc.		subsidiaries		subsidiaries		adjustments			total
Cash and cash equivalents	$	1,186,636	$	109,357	$	203,123	$	—		$	1,499,116
Accounts receivable, net		—		929,390		794,838		—			1,724,228
Other current assets		431,504		769,947		78,485		—			1,279,936
Total current assets		1,618,140		1,808,694		1,076,446		—			4,503,280
Property and equipment, net		268,066		1,575,890		944,784		—			2,788,740
Intangible assets, net		540		1,634,920		51,866		—			1,687,326
Investments in subsidiaries		8,893,079		1,597,185		—		(10,490,264	)		—
Intercompany receivables		3,474,133		—		701,814		(4,175,947	)		—
Other long-term assets and investments		74,458		53,346		113,246		—			241,050
Goodwill		—		7,834,257		1,460,222		—			9,294,479
Total assets	$	14,328,416	$	14,504,292	$	4,348,378	$	(14,666,211	)	$	18,514,875
Current liabilities	$	185,217	$	1,730,123	$	483,798	$	—		$	2,399,138
Intercompany payables		—		2,750,102		1,425,845		(4,175,947	)		—
Long-term debt and other long-term liabilities		8,730,673		1,130,988		305,838		—			10,167,499
Noncontrolling interests subject to put provisions		541,746		—		—		322,320			864,066
Total DaVita HealthCare Partners Inc. shareholders’ equity		4,870,780		8,893,079		1,597,185		(10,490,264	)		4,870,780
Noncontrolling interests not subject to put provisions		—		—		535,712		(322,320	)		213,392
Total equity		4,870,780		8,893,079		2,132,897		(10,812,584	)		5,084,172
Total liabilities and equity	$	14,328,416	$	14,504,292	$	4,348,378	$	(14,666,211	)	$	18,514,875

Condensed Consolidating Statements of Cash Flows

	DaVita						Non-
	HealthCare			Guarantor			Guarantor			Consolidating			Consolidated
For the six months ended June 30, 2016	Partners Inc.			subsidiaries			subsidiaries			adjustments			total
Cash flows from operating activities:
Net income	$	150,816		$	106,352		$	290,603		$	(315,109	)	$	232,662
Changes in operating assets and liabilities and non-cash items included in net income		(1,505	)		219,697			179,676			315,109			712,977
Net cash provided by operating activities		149,311			326,049			470,279			—			945,639
Cash flows from investing activities:
Additions of property and equipment, net		(42,266	)		(171,164	)		(145,197	)		—			(358,627	)
Acquisitions		—			(462,592	)		(10,722	)		—			(473,314	)
Proceeds from asset and business sales		—			17,393			—			—			17,393
Proceeds (purchases) from investment sales and other items, net		21,230			(10,869	)		45,958			—			56,319
Net cash used in investing activities		(21,036	)		(627,232	)		(109,961	)		—			(758,229	)
Cash flows from financing activities:
Long-term debt and related financing costs, net		(42,493	)		(13,917	)		(4,823	)		—			(61,233	)
Intercompany borrowing (payments)		11,208			247,765			(258,973	)		—			—
Other items		(255,032	)		(6,253	)		(81,036	)		—			(342,321	)
Net cash (used in) provided by financing activities		(286,317	)		227,595			(344,832	)		—			(403,554	)
Effect of exchange rate changes on cash		—			—			444			—			444
Net (decrease) increase in cash and cash equivalents		(158,042	)		(73,588	)		15,930			—			(215,700	)
Cash and cash equivalents at beginning of period		1,186,636			109,357			203,123			—			1,499,116
Cash and cash equivalents at end of period	$	1,028,594		$	35,769		$	219,053		$	—		$	1,283,416

	DaVita						Non-
	HealthCare			Guarantor			Guarantor			Consolidating			Consolidated
For the six months ended June 30, 2015	Partners Inc.			subsidiaries			subsidiaries			adjustments			total
Cash flows from operating activities:
Net income	$	59,860		$	33,828		$	197,471		$	(159,530	)	$	131,629
Changes in operating assets and liabilities and non-cash items included in net income		(117,778	)		215,135			53,015			159,530			309,902
Net cash (used in) provided by operating activities		(57,918	)		248,963			250,486			—			441,531
Cash flows from investing activities:
Additions of property and equipment, net		(21,179	)		(147,637	)		(122,057	)		—			(290,873	)
Acquisitions		—			(44,740	)		(319	)		—			(45,059	)
Proceeds from asset and business sales		—			3,415			—			—			3,415
(Purchases) proceeds from investment sales and other items, net		(604,922	)		(833	)		(9,065	)		—			(614,820	)
Net cash used in investing activities		(626,101	)		(189,795	)		(131,441	)		—			(947,337	)
Cash flows from financing activities:
Long-term debt and related financing costs, net		682,510			(7,922	)		(6,596	)		—			667,992
Intercompany borrowing (payments)		108,911			(60,132	)		(48,779	)		—			—
Other items		(121,059	)		(10,840	)		(61,000	)		—			(192,899	)
Net cash provided by (used in) financing activities		670,362			(78,894	)		(116,375	)		—			475,093
Effect of exchange rate changes on cash		—			—			(793	)		—			(793	)
Net (decrease) increase in cash and cash equivalents		(13,657	)		(19,726	)		1,877			—			(31,506	)
Cash and cash equivalents at beginning of period		698,876			77,921			188,444			—			965,241
Cash and cash equivalents at end of period	$	685,219		$	58,195		$	190,321		$	—		$	933,735