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Condensed Consolidating Financial Statements
 6 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed consolidating financial statements
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 condensed 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 a substantial majority of its domestic subsidiaries as measured by revenue, income and assets. 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
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended June 30, 2017
DaVita Inc.
 
 
 
 
Patient services revenues
$
—

 
$
1,681,249

 
$
1,055,797

 
$
(54,579
)
 
$
2,682,467

Less: Provision for uncollectible accounts
—

 
(74,413
)
 
(41,072
)
 
—

 
(115,485
)
Net patient service revenues
—

 
1,606,836

 
1,014,725

 
(54,579
)
 
2,566,982

Capitated revenues
—

 
467,852

 
555,947

 
(1,721
)
 
1,022,078

Other revenues
193,585

 
501,861

 
34,257

 
(441,286
)
 
288,417

Total net revenues
193,585

 
2,576,549

 
1,604,929

 
(497,586
)
 
3,877,477

Operating expenses and charges
138,104

 
2,396,723

 
1,461,920

 
(497,586
)
 
3,499,161

Operating income
55,481

 
179,826

 
143,009

 
—

 
378,316

Debt expense
(106,159
)
 
(92,346
)
 
(14,943
)
 
105,486

 
(107,962
)
Other income, net
102,299

 
2,191

 
6,249

 
(105,486
)
 
5,253

Income tax expense
22,969

 
70,927

 
20,086

 
—

 
113,982

Equity earnings in subsidiaries
98,349

 
79,605

 
—

 
(177,954
)
 
—

Net income
127,001

 
98,349

 
114,229

 
(177,954
)
 
161,625

Less: Net income attributable to noncontrolling interests
—

 
—

 
—

 
(34,624
)
 
(34,624
)
Net income attributable to DaVita Inc.
$
127,001

 
$
98,349

 
$
114,229

 
$
(212,578
)
 
$
127,001


 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended June 30, 2016
DaVita Inc.
 
 
 
 
Patient service revenues
$
—

 
$
1,664,361

 
$
959,946

 
$
(40,793
)
 
$
2,583,514

Less: Provision for uncollectible accounts
—

 
(74,498
)
 
(36,930
)
 
—

 
(111,428
)
Net patient service revenues
—

 
1,589,863

 
923,016

 
(40,793
)
 
2,472,086

Capitated revenues
—

 
463,732

 
436,337

 
(84
)
 
899,985

Other revenues
196,910

 
521,065

 
31,749

 
(404,144
)
 
345,580

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 Inc.
$
53,382

 
$
35,933

 
$
187,554

 
$
(223,487
)
 
$
53,382


 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Six Months Ended June 30, 2017
DaVita Inc.
 
 
 
 
Patient services revenues
$
—

 
$
3,234,605

 
$
2,154,549

 
$
(105,309
)
 
$
5,283,845

Less: Provision for uncollectible accounts
—

 
(136,694
)
 
(91,774
)
 
—

 
(228,468
)
Net patient service revenues
—

 
3,097,911

 
2,062,775

 
(105,309
)
 
5,055,377

Capitated revenues
—

 
931,479

 
1,010,901

 
(2,266
)
 
1,940,114

Other revenues
414,971

 
979,536

 
69,894

 
(885,132
)
 
579,269

Total net revenues
414,971

 
5,008,926

 
3,143,570

 
(992,707
)
 
7,574,760

Operating expenses and charges
270,014

 
4,276,878

 
2,754,023

 
(992,707
)
 
6,308,208

Operating income
144,957

 
732,048

 
389,547

 
—

 
1,266,552

Debt expense
(208,823
)
 
(183,747
)
 
(28,659
)
 
208,838

 
(212,391
)
Other income, net
202,636

 
5,728

 
9,970

 
(208,838
)
 
9,496

Income tax expense
57,062

 
292,348

 
52,337

 
—

 
401,747

Equity earnings in subsidiaries
492,990

 
231,309

 
—

 
(724,299
)
 
—

Net income
574,698

 
492,990

 
318,521

 
(724,299
)
 
661,910

Less: Net income attributable to noncontrolling interests
—

 
—

 
—

 
(87,212
)
 
(87,212
)
Net income attributable to DaVita Inc.
$
574,698

 
$
492,990

 
$
318,521

 
$
(811,511
)
 
$
574,698


 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Six Months Ended June 30, 2016
DaVita Inc.
 
 
 
 
Patient services revenues
$
—

 
$
3,317,673

 
$
1,827,984

 
$
(80,209
)
 
$
5,065,448

Less: Provision for uncollectible accounts
—

 
(133,311
)
 
(87,322
)
 
—

 
(220,633
)
Net patient service revenues
—

 
3,184,362

 
1,740,662

 
(80,209
)
 
4,844,815

Capitated revenues
—

 
931,694

 
856,510

 
(211
)
 
1,787,993

Other revenues
383,885

 
1,005,420

 
59,269

 
(782,595
)
 
665,979

Total net revenues
383,885

 
5,121,476

 
2,656,441

 
(863,015
)
 
7,298,787

Operating expenses and charges
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, net
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 Inc.
$
150,816

 
$
106,352

 
$
290,603

 
$
(396,955
)
 
$
150,816



Condensed Consolidating Statements of Comprehensive Income

 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended June 30, 2017
DaVita Inc.
 
 
 
 
Net income
$
127,001

 
$
98,349

 
$
114,229

 
$
(177,954
)
 
$
161,625

Other comprehensive income
436

 
—

 
49,142

 
—

 
49,578

Total comprehensive income
127,437

 
98,349

 
163,371

 
(177,954
)
 
211,203

Less: Comprehensive income attributable to
   noncontrolling interest
—

 
—

 
—

 
(34,624
)
 
(34,624
)
Comprehensive income attributable to DaVita Inc.
$
127,437

 
$
98,349

 
$
163,371

 
$
(212,578
)
 
$
176,579

 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended June 30, 2016
DaVita Inc.
 
 
 
 
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 Inc.
$
51,852

 
$
35,933

 
$
182,710

 
$
(223,636
)
 
$
46,859

 
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Six Months Ended June 30, 2017
DaVita Inc.
 
 
 
 
Net income
$
574,698

 
$
492,990

 
$
318,521

 
$
(724,299
)
 
$
661,910

Other comprehensive (loss) income
(70
)
 
—

 
62,403

 
—

 
62,333

Total comprehensive income
574,628

 
492,990

 
380,924

 
(724,299
)
 
724,243

Less: Comprehensive income attributable to
   noncontrolling interest
—

 
—

 
—

 
(87,210
)
 
(87,210
)
Comprehensive income attributable to DaVita Inc.
$
574,628

 
$
492,990

 
$
380,924

 
$
(811,509
)
 
$
637,033


 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Six Months Ended June 30, 2016
DaVita Inc.
 
 
 
 
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 Inc.
$
144,418

 
$
106,352

 
$
296,940

 
$
(397,104
)
 
$
150,606


 
Condensed Consolidating Balance Sheets
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
As of June 30, 2017
DaVita Inc.
 
 
 
 
Cash and cash equivalents
$
374,973

 
$
40,508

 
$
296,516

 
$
—

 
$
711,997

Accounts receivable, net
—

 
1,278,053

 
775,759

 
—

 
2,053,812

Other current assets
254,108

 
891,208

 
112,643

 
—

 
1,257,959

Total current assets
629,081

 
2,209,769

 
1,184,918

 
—

 
4,023,768

Property and equipment, net
345,667

 
1,669,583

 
1,232,780

 
—

 
3,248,030

Intangible assets, net
355

 
1,405,712

 
56,827

 
—

 
1,462,894

Investments in subsidiaries
10,368,953

 
2,375,421

 
—

 
(12,744,374
)
 
—

Intercompany receivables
3,266,741

 
—

 
1,035,735

 
(4,302,476
)
 
—

Other long-term assets and investments
45,228

 
92,891

 
579,182

 
—

 
717,301

Goodwill
—

 
7,850,917

 
2,038,874

 
—

 
9,889,791

Total assets
$
14,656,025

 
$
15,604,293

 
$
6,128,316

 
$
(17,046,850
)
 
$
19,341,784

Current liabilities
$
399,436

 
$
1,807,277

 
$
566,612

 
$
—

 
$
2,773,325

Intercompany payables
—

 
2,181,952

 
2,120,524

 
(4,302,476
)
 
—

Long-term debt and other long-term liabilities
8,578,628

 
1,246,111

 
462,120

 
—

 
10,286,859

Noncontrolling interests subject to put provisions
593,647

 
—

 
—

 
416,057

 
1,009,704

Total DaVita Inc. shareholder's equity
5,084,314

 
10,368,953

 
2,375,421

 
(12,744,374
)
 
5,084,314

Noncontrolling interests not subject to put provisions
—

 
—

 
603,639

 
(416,057
)
 
187,582

Total equity
5,084,314

 
10,368,953

 
2,979,060

 
(13,160,431
)
 
5,271,896

Total liabilities and equity
$
14,656,025

 
$
15,604,293

 
$
6,128,316

 
$
(17,046,850
)
 
$
19,341,784


 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
As of December 31, 2016
DaVita Inc.
 
 
 
 
Cash and cash equivalents
$
549,921

 
$
59,192

 
$
304,074

 
$
—

 
$
913,187

Accounts receivable, net
—

 
1,215,232

 
702,070

 
—

 
1,917,302

Other current assets
277,911

 
736,727

 
135,101

 
—

 
1,149,739

Total current assets
827,832

 
2,011,151

 
1,141,245

 
—

 
3,980,228

Property and equipment, net
337,200

 
1,689,798

 
1,148,369

 
—

 
3,175,367

Intangible assets, net
487

 
1,491,057

 
36,223

 
—

 
1,527,767

Investments in subsidiaries
9,717,728

 
2,002,660

 
—

 
(11,720,388
)
 
—

Intercompany receivables
3,250,692

 
—

 
866,955

 
(4,117,647
)
 
—

Other long-term assets and investments
39,994

 
86,710

 
523,874

 
—

 
650,578

Goodwill
—

 
7,838,984

 
1,568,333

 
—

 
9,407,317

Total assets
$
14,173,933

 
$
15,120,360

 
$
5,284,999

 
$
(15,838,035
)
 
$
18,741,257

Current liabilities
$
303,840

 
$
1,865,193

 
$
527,412

 
$
—

 
$
2,696,445

Intercompany payables
—

 
2,322,124

 
1,795,523

 
(4,117,647
)
 
—

Long-term debt and other long-term liabilities
8,614,445

 
1,215,315

 
392,053

 
—

 
10,221,813

Noncontrolling interests subject to put provisions
607,601

 
—

 
—

 
365,657

 
973,258

Total DaVita Inc. shareholder's equity
4,648,047

 
9,717,728

 
2,002,660

 
(11,720,388
)
 
4,648,047

Noncontrolling interests not subject to put provisions
—

 
—

 
567,351

 
(365,657
)
 
201,694

Total equity
4,648,047

 
9,717,728

 
2,570,011

 
(12,086,045
)
 
4,849,741

Total liabilities and equity
$
14,173,933

 
$
15,120,360

 
$
5,284,999

 
$
(15,838,035
)
 
$
18,741,257

 
 
Condensed Consolidating Statements of Cash Flows
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Six Months Ended June 30, 2017
DaVita Inc.
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income
$
574,698

 
$
492,990

 
$
318,521

 
$
(724,299
)
 
$
661,910

Changes in operating assets and liabilities and non-cash items included in net income
(431,980
)
 
52,218

 
4,997

 
724,299

 
349,534

Net cash provided by operating activities
142,718

 
545,208

 
323,518

 
—

 
1,011,444

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Additions of property and equipment, net
(50,966
)
 
(182,494
)
 
(165,480
)
 
—

 
(398,940
)
Acquisitions
—

 
(538,450
)
 
(81,389
)
 
—

 
(619,839
)
Proceeds from asset and business sales
—

 
70,127

 
109

 
—

 
70,236

Proceeds (purchases) from investment sales and other items, net
49,036

 
(2,974
)
 
50,833

 
—

 
96,895

Net cash used in investing activities
(1,930
)
 
(653,791
)
 
(195,927
)
 
—

 
(851,648
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 
 

Long-term debt and related financing costs, net
(54,992
)
 
(6,893
)
 
(2,147
)
 
—

 
(64,032
)
Intercompany (payments) borrowing
(37,233
)
 
98,224

 
(60,991
)
 
—

 
—

Other items
(223,511
)
 
(1,432
)
 
(76,203
)
 
—

 
(301,146
)
Net cash (used in) provided by financing activities
(315,736
)
 
89,899

 
(139,341
)
 
—

 
(365,178
)
Effect of exchange rate changes on cash
—

 
—

 
4,192

 
—

 
4,192

Net decrease in cash and cash equivalents
(174,948
)
 
(18,684
)
 
(7,558
)
 
—

 
(201,190
)
Cash and cash equivalents at beginning of period
549,921

 
59,192

 
304,074

 
—

 
913,187

Cash and cash equivalents at end of period
$
374,973

 
$
40,508

 
$
296,516

 
$
—

 
$
711,997


 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Six Months Ended June 30, 2016
DaVita Inc.
 
 
 
 
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