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Condensed consolidating financial statements
 9 Months Ended
Sep. 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 Operations
 
 
 
DaVita Inc.
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended September 30, 2017
 
 
 
 
 
Patient services revenues
 
$
—

 
$
1,732,287

 
$
1,076,035

 
$
(62,065
)
 
$
2,746,257

Less: Provision for uncollectible accounts
 
—

 
(82,860
)
 
(46,989
)
 
6,089

 
(123,760
)
Net patient service revenues
 
—

 
1,649,427

 
1,029,046

 
(55,976
)
 
2,622,497

Capitated revenues
 
—

 
461,866

 
555,481

 
(982
)
 
1,016,365

Other revenues
 
189,275

 
468,948

 
52,283

 
(426,537
)
 
283,969

Total net revenues
 
189,275

 
2,580,241

 
1,636,810

 
(483,495
)
 
3,922,831

Operating expenses and charges
 
128,488

 
2,964,867

 
1,505,494

 
(483,495
)
 
4,115,354

Operating income (loss)
 
60,787

 
(384,626
)
 
131,316

 
—

 
(192,523
)
Debt expense
 
(108,453
)
 
(93,243
)
 
(16,168
)
 
108,241

 
(109,623
)
Other income, net
 
104,250

 
1,774

 
6,587

 
(108,241
)
 
4,370

Income tax expense (benefit)
 
27,624

 
(150,192
)
 
(3,174
)
 
—

 
(125,742
)
Equity (losses) earnings in subsidiaries
 
(243,436
)
 
82,467

 
—

 
160,969

 
—

Net (loss) income
 
(214,476
)
 
(243,436
)
 
124,909

 
160,969

 
(172,034
)
Less: Net income attributable to noncontrolling interests
 
—

 
—

 
—

 
(42,442
)
 
(42,442
)
Net (loss) income attributable to DaVita Inc.
 
$
(214,476
)
 
$
(243,436
)
 
$
124,909

 
$
118,527

 
$
(214,476
)

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

 
$
1,726,892

 
$
959,193

 
$
(42,891
)
 
$
2,643,194

Less: Provision for uncollectible accounts
 
—

 
(73,833
)
 
(41,722
)
 
—

 
(115,555
)
Net patient service revenues
 
—

 
1,653,059

 
917,471

 
(42,891
)
 
2,527,639

Capitated revenues
 
—

 
465,684

 
406,893

 
(39
)
 
872,538

Other revenues
 
191,815

 
506,619

 
32,652

 
(400,687
)
 
330,399

Total net revenues
 
191,815

 
2,625,362

 
1,357,016

 
(443,617
)
 
3,730,576

Operating expenses
 
143,784

 
2,388,114

 
823,139

 
(443,617
)
 
2,911,420

Operating income
 
48,031

 
237,248

 
533,877

 
—

 
819,156

Debt expense
 
(101,895
)
 
(91,716
)
 
(14,402
)
 
103,432

 
(104,581
)
Other income
 
99,446

 
2,659

 
3,203

 
(103,432
)
 
1,876

Income tax (benefit) expense
 
(20,898
)
 
(21,486
)
 
146,685

 
—

 
104,301

Equity earnings in subsidiaries
 
504,852

 
335,175

 
—

 
(840,027
)
 
—

Net income
 
571,332

 
504,852

 
375,993

 
(840,027
)
 
612,150

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
—

 
(40,818
)
 
(40,818
)
Net income attributable to DaVita Inc.
 
$
571,332

 
$
504,852

 
$
375,993

 
$
(880,845
)
 
$
571,332


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

 
$
4,966,892

 
$
3,230,584

 
$
(167,374
)
 
$
8,030,102

Less: Provision for uncollectible accounts
 
—

 
(219,554
)
 
(138,763
)
 
6,089

 
(352,228
)
Net patient service revenues
 
—

 
4,747,338

 
3,091,821

 
(161,285
)
 
7,677,874

Capitated revenues
 
—

 
1,393,345

 
1,566,382

 
(3,248
)
 
2,956,479

Other revenues
 
604,246

 
1,448,484

 
122,177

 
(1,311,669
)
 
863,238

Total net revenues
 
604,246

 
7,589,167

 
4,780,380

 
(1,476,202
)
 
11,497,591

Operating expenses and charges
 
398,502

 
7,241,745

 
4,259,517

 
(1,476,202
)
 
10,423,562

Operating income
 
205,744

 
347,422

 
520,863

 
—

 
1,074,029

Debt expense
 
(317,276
)
 
(276,990
)
 
(44,827
)
 
317,079

 
(322,014
)
Other income, net
 
306,886

 
7,502

 
16,557

 
(317,079
)
 
13,866

Income tax expense
 
84,686

 
142,156

 
49,163

 
—

 
276,005

Equity earnings in subsidiaries
 
249,554

 
313,776

 
—

 
(563,330
)
 
—

Net income
 
360,222

 
249,554

 
443,430

 
(563,330
)
 
489,876

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
—

 
(129,654
)
 
(129,654
)
Net income attributable to DaVita Inc.
 
$
360,222

 
$
249,554

 
$
443,430

 
$
(692,984
)
 
$
360,222


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

 
$
5,044,565

 
$
2,787,176

 
$
(123,100
)
 
$
7,708,641

Less: Provision for uncollectible accounts
 
—

 
(207,144
)
 
(129,044
)
 
—

 
(336,188
)
Net patient service revenues
 
—

 
4,837,421

 
2,658,132

 
(123,100
)
 
7,372,453

Capitated revenues
 
—

 
1,397,378

 
1,263,404

 
(250
)
 
2,660,532

Other revenues
 
575,700

 
1,512,039

 
91,921

 
(1,183,282
)
 
996,378

Total net revenues
 
575,700

 
7,746,838

 
4,013,457

 
(1,306,632
)
 
11,029,363

Operating expenses and charges
 
400,129

 
7,275,863

 
3,146,888

 
(1,306,632
)
 
9,516,248

Operating income
 
175,571

 
470,975

 
866,569

 
—

 
1,513,115

Debt expense
 
(305,097
)
 
(275,148
)
 
(38,914
)
 
308,800

 
(310,359
)
Other income, net
 
296,660

 
12,416

 
7,791

 
(308,800
)
 
8,067

Income tax expense
 
56,190

 
140,972

 
168,849

 
—

 
366,011

Equity earnings in subsidiaries
 
611,204

 
543,933

 
—

 
(1,155,137
)
 
—

Net income
 
722,148

 
611,204

 
666,597

 
(1,155,137
)
 
844,812

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
—

 
(122,664
)
 
(122,664
)
Net income attributable to DaVita Inc.
 
$
722,148

 
$
611,204

 
$
666,597

 
$
(1,277,801
)
 
$
722,148



Condensed Consolidating Statements of Comprehensive Income

 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended September 30, 2017
 
DaVita Inc.
 
 
 
 
Net (loss) income
 
$
(214,476
)
 
$
(243,436
)
 
$
124,909

 
$
160,969

 
$
(172,034
)
Other comprehensive income
 
1,641

 
—

 
29,143

 
—

 
30,784

Total comprehensive (loss) income
 
(212,835
)
 
(243,436
)
 
154,052

 
160,969

 
(141,250
)
Less: Comprehensive income attributable to
   noncontrolling interest
 
—

 
—

 
—

 
(42,442
)
 
(42,442
)
Comprehensive (loss) income attributable to DaVita Inc.
 
$
(212,835
)
 
$
(243,436
)
 
$
154,052

 
$
118,527

 
$
(183,692
)
 
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended September 30, 2016
 
DaVita Inc.
 
 
 
 
Net income
 
$
571,332

 
$
504,852

 
$
375,993

 
$
(840,027
)
 
$
612,150

Other comprehensive income
 
1,248

 
—

 
6,620

 
—

 
7,868

Total comprehensive income
 
572,580

 
504,852

 
382,613

 
(840,027
)
 
620,018

Less: Comprehensive income attributable to the
   noncontrolling interests
 
—

 
—

 
—

 
(40,876
)
 
(40,876
)
Comprehensive income attributable to DaVita Inc.
 
$
572,580

 
$
504,852

 
$
382,613

 
$
(880,903
)
 
$
579,142

 
 
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Nine Months Ended September 30, 2017
 
DaVita Inc.
 
 
 
 
Net income
 
$
360,222

 
$
249,554

 
$
443,430

 
$
(563,330
)
 
$
489,876

Other comprehensive income
 
1,571

 
—

 
91,546

 
—

 
93,117

Total comprehensive income
 
361,793

 
249,554

 
534,976

 
(563,330
)
 
582,993

Less: Comprehensive income attributable to
   noncontrolling interest
 
—

 
—

 
—

 
(129,652
)
 
(129,652
)
Comprehensive income attributable to DaVita Inc.
 
$
361,793

 
$
249,554

 
$
534,976

 
$
(692,982
)
 
$
453,341


 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Nine Months Ended September 30, 2016
 
DaVita Inc.
 
 
 
 
Net income
 
$
722,148

 
$
611,204

 
$
666,597

 
$
(1,155,137
)
 
$
844,812

Other comprehensive (loss) income
 
(5,299
)
 
—

 
13,106

 
—

 
7,807

Total comprehensive income
 
716,849

 
611,204

 
679,703

 
(1,155,137
)
 
852,619

Less: Comprehensive income attributable to the
   noncontrolling interests
 
—

 
—

 
—

 
(122,871
)
 
(122,871
)
Comprehensive income attributable to DaVita Inc.
 
$
716,849

 
$
611,204

 
$
679,703

 
$
(1,278,008
)
 
$
729,748


 
Condensed Consolidating Balance Sheets
 
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
As of September 30, 2017
 
DaVita Inc.
 
 
 
 
Cash and cash equivalents
 
$
447,627

 
$
14,768

 
$
383,715

 
$
—

 
$
846,110

Accounts receivable, net
 
—

 
1,325,029

 
766,045

 
—

 
2,091,074

Other current assets
 
178,901

 
804,580

 
112,884

 
—

 
1,096,365

Total current assets
 
626,528

 
2,144,377

 
1,262,644

 
—

 
4,033,549

Property and equipment, net
 
368,233

 
1,752,690

 
1,265,133

 
—

 
3,386,056

Intangible assets, net
 
289

 
1,370,085

 
80,659

 
—

 
1,451,033

Investments in subsidiaries
 
10,116,956

 
2,738,851

 
—

 
(12,855,807
)
 
—

Intercompany receivables
 
3,079,514

 
—

 
1,172,721

 
(4,252,235
)
 
—

Other long-term assets and investments
 
46,028

 
99,584

 
581,212

 
—

 
726,824

Goodwill
 
—

 
7,248,275

 
2,167,602

 
—

 
9,415,877

Total assets
 
$
14,237,548

 
$
15,353,862

 
$
6,529,971

 
$
(17,108,042
)
 
$
19,013,339

Current liabilities
 
$
283,770

 
$
1,907,482

 
$
683,541

 
$
—

 
$
2,874,793

Intercompany payables
 
—

 
2,231,303

 
2,020,932

 
(4,252,235
)
 
—

Long-term debt and other long-term liabilities
 
8,565,734

 
1,098,121

 
478,672

 
—

 
10,142,527

Noncontrolling interests subject to put provisions
 
603,463

 
—

 
—

 
423,427

 
1,026,890

Total DaVita Inc. shareholder's equity
 
4,784,581

 
10,116,956

 
2,738,851

 
(12,855,807
)
 
4,784,581

Noncontrolling interests not subject to put
provisions
 
—

 
—

 
607,975

 
(423,427
)
 
184,548

Total equity
 
4,784,581

 
10,116,956

 
3,346,826

 
(13,279,234
)
 
4,969,129

Total liabilities and equity
 
$
14,237,548

 
$
15,353,862

 
$
6,529,971

 
$
(17,108,042
)
 
$
19,013,339


 
 
 
 
 
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 Nine Months Ended September 30, 2017
 
DaVita Inc.
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
Net income
 
$
360,222

 
$
249,554

 
$
443,430

 
$
(563,330
)
 
$
489,876

Changes in operating assets and liabilities and non-cash items included in net income
 
(291,657
)
 
606,783

 
196,207

 
563,330

 
1,074,663

Net cash provided by operating activities
 
68,565

 
856,337

 
639,637

 
—

 
1,564,539

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

Additions of property and equipment
 
(94,385
)
 
(305,261
)
 
(240,183
)
 
—

 
(639,829
)
Acquisitions
 
—

 
(627,324
)
 
(99,214
)
 
—

 
(726,538
)
Proceeds from asset and business sales
 
—

 
90,533

 
1,996

 
—

 
92,529

Proceeds (purchases) from investment sales and other items, net
 
123,894

 
(6,472
)
 
49,183

 
—

 
166,605

Net cash provided by (used in) investing activities
 
29,509

 
(848,524
)
 
(288,218
)
 
—

 
(1,107,233
)
Cash flows from financing activities:
 
 

 
 

 
 

 
 

 
 

Long-term debt and related financing costs, net
 
(92,721
)
 
(10,394
)
 
(5,348
)
 
—

 
(108,463
)
Intercompany borrowing (payments)
 
197,983

 
(40,411
)
 
(157,572
)
 
—

 
—

Other items
 
(305,630
)
 
(1,432
)
 
(114,307
)
 
—

 
(421,369
)
Net cash used in financing activities
 
(200,368
)
 
(52,237
)
 
(277,227
)
 
—

 
(529,832
)
Effect of exchange rate changes on cash
 
—

 
—

 
5,449

 
—

 
5,449

Net (decrease) increase in cash and cash equivalents
 
(102,294
)
 
(44,424
)
 
79,641

 
—

 
(67,077
)
Cash and cash equivalents at beginning of period
 
549,921

 
59,192

 
304,074

 
—

 
913,187

Cash and cash equivalents at end of period
 
$
447,627

 
$
14,768

 
$
383,715

 
$
—

 
$
846,110


 
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Nine Months Ended September 30, 2016
 
DaVita Inc.
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
Net income
 
$
722,148

 
$
611,204

 
$
666,597

 
$
(1,155,137
)
 
$
844,812

Changes in operating assets and liabilities and non-cash
   items included in net income
 
(586,804
)
 
228,991

 
(160,874
)
 
1,155,137

 
636,450

Net cash provided by operating activities
 
135,344

 
840,195

 
505,723

 
—

 
1,481,262

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

Additions of property and equipment
 
(81,785
)
 
(248,339
)
 
(245,119
)
 
—

 
(575,243
)
Acquisitions
 
—

 
(458,556
)
 
(38,775
)
 
—

 
(497,331
)
Proceeds from asset and business sales, net of cash
divested
 
—

 
24,608

 
(5,617
)
 
—

 
18,991

(Purchases) proceeds from investment sales and other
items, net
 
(236,150
)
 
(12,825
)
 
45,316

 
—

 
(203,659
)
Net cash used in investing activities
 
(317,935
)
 
(695,112
)
 
(244,195
)
 
—

 
(1,257,242
)
Cash flows from financing activities:
 
 

 
 

 
 

 
 

 
 

Long-term debt and related financing costs, net
 
(73,889
)
 
(20,684
)
 
(4,151
)
 
—

 
(98,724
)
Intercompany borrowing (payments)
 
283,709

 
(188,247
)
 
(95,462
)
 
—

 
—

Other items
 
(589,964
)
 
(9,740
)
 
(109,548
)
 
—

 
(709,252
)
Net cash used in financing activities
 
(380,144
)
 
(218,671
)
 
(209,161
)
 
—

 
(807,976
)
Effect of exchange rate changes on cash
 
—

 
—

 
(1,664
)
 
—

 
(1,664
)
Net (decrease) increase in cash and cash equivalents
 
(562,735
)
 
(73,588
)
 
50,703

 
—

 
(585,620
)
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
 
$
623,901

 
$
35,769

 
$
253,826

 
$
—

 
$
913,496