Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	DaVita Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For twelve months ended December 31, 2017
Dialysis and related lab patient service revenues	$	—		$	6,884,750		$	3,393,026		$	(184,106	)	$	10,093,670
Less: Provision for uncollectible accounts	—			(340,586		)	(151,982		)	7,170			(485,398		)
Net dialysis and related lab patient service revenues	—			6,544,164			3,241,044			(176,936		)	9,608,272
Other revenues	793,751			1,204,501			68,322			(798,212		)	1,268,362
Total net revenues	793,751			7,748,665			3,309,366			(975,148		)	10,876,634
Operating expenses and charges	527,942			6,475,550			3,035,535			(975,148		)	9,063,879
Operating income	265,809			1,273,115			273,831			—			1,812,755
Debt expense	(426,149		)	(209,612		)	(34,831		)	239,958			(430,634		)
Other income, net	411,731			11,169			18,467			(423,702		)	17,665
Income tax expense	65,965			237,670			20,224			—			323,859
Equity earnings in subsidiaries	478,192			74,375			—			(552,567		)	—
Net income from continuing operations	663,618			911,377			237,243			(736,311		)	1,075,927
Net (loss) income from discontinued operations, net of tax	—			(433,185		)	4,069			183,744			(245,372		)
Net income	663,618			478,192			241,312			(552,567		)	830,555
Less: Net income attributable to noncontrolling interests	—			—			—			(166,937		)	(166,937		)
Net income attributable to DaVita Inc.	$	663,618		$	478,192		$	241,312		$	(719,504	)	$	663,618

For twelve months ended December 31, 2016
Dialysis and related lab patient service revenues	$	—		$	6,665,601		$	3,215,085		$	(153,326	)	$	9,727,360
Less: Provision for uncollectible accounts	—			(272,430		)	(158,878		)	—			(431,308		)
Net dialysis and related lab patient service revenues	—			6,393,171			3,056,207			(153,326		)	9,296,052
Other revenues	767,791			1,378,956			30,184			(765,516		)	1,411,415
Total net revenues	767,791			7,772,127			3,086,391			(918,842		)	10,707,467
Operating expenses and charges	493,175			6,907,469			2,195,955			(918,842		)	8,677,757
Operating income	274,616			864,658			890,436			—			2,029,710
Debt expense	(407,925		)	(191,083		)	(40,434		)	225,326			(414,116		)
Other income, net	396,797			3,726			7,694			(400,706		)	7,511
Income tax expense	77,334			238,446			115,981			—			431,761
Equity earnings in subsidiaries	693,720			667,278			—			(1,360,998		)	—
Net income from continuing operations	879,874			1,106,133			741,715			(1,536,378		)	1,191,344
Net (loss) income from discontinued operations, net of tax	—			(412,413		)	78,771			175,380			(158,262		)
Net income	879,874			693,720			820,486			(1,360,998		)	1,033,082
Less: Net income attributable to noncontrolling interests	—			—			—			(153,208		)	(153,208		)
Net income attributable to DaVita Inc.	$	879,874		$	693,720		$	820,486		$	(1,514,206	)	$	879,874

Consolidating Statements of Income - (continued)



	DaVita Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For twelve months ended December 31, 2015
Dialysis and related lab patient service revenues	$	—		$	6,471,702		$	2,814,909		$	(131,164	)	$	9,155,447
Less: Provision for uncollectible accounts	—			(281,976		)	(130,929		)	—			(412,905		)
Net dialysis and related lab patient service revenues	—			6,189,726			2,683,980			(131,164		)	8,742,542
Other revenues	727,887			1,208,607			24,013			(720,804		)	1,239,703
Total net revenues	727,887			7,398,333			2,707,993			(851,968		)	9,982,245
Operating expenses and charges	488,595			6,925,234			2,283,618			(851,968		)	8,845,479
Operating income	239,292			473,099			424,375			—			1,136,766
Debt (expense) and refinancing charges	(449,598		)	(178,389		)	(32,450		)	203,985			(456,452		)
Other income, net	365,752			1,261			6,921			(365,861		)	8,073
Income tax expense (benefit)	60,671			163,401			(16,562		)	—			207,510
Equity earnings in subsidiaries	174,957			322,022			—			(496,979		)	—
Net income from continuing operations	269,732			454,592			415,408			(658,855		)	480,877
Net (loss) income from discontinued operations, net of tax	—			(279,635		)	64,292			161,876			(53,467		)
Net income	269,732			174,957			479,700			(496,979		)	427,410
Less: Net income attributable to noncontrolling interests	—			—			—			(157,678		)	(157,678		)
Net income attributable to DaVita Inc.	$	269,732		$	174,957		$	479,700		$	(654,657	)	$	269,732

Condensed Consolidating Statements of Income



	Consolidated Total			Physician Groups		Unrestricted Subsidiaries		Company and Restricted Subsidiaries⁽¹⁾
For the year ended December 31, 2017
Dialysis and related lab patient service revenues	$	10,093,670		$	—	$	—	$	10,093,670
Less: Provision for uncollectible accounts	(485,398		)	—		—		(485,398		)
Net dialysis and related lab patient service revenues	9,608,272			—		—		9,608,272
Other revenues	1,268,362			—		—		1,268,362
Total net revenues	10,876,634			—		—		10,876,634
Operating expenses and charges	9,063,879			—		—		9,063,879
Operating income	1,812,755			—		—		1,812,755
Debt expense	(430,634		)	—		—		(430,634		)
Other income, net	17,665			—		—		17,665
Income tax expense	323,859			—		—		323,859
Net income from continuing operations	1,075,927			—		—		1,075,927
Net (loss) income from discontinued operations, net of tax	(245,372		)	13,611		19		(259,002		)
Net income	830,555			13,611		19		816,925
Less: Net income attributable to noncontrolling interests	(166,937		)	7,183		—		(174,120		)
Net income attributable to DaVita Inc.	$	663,618		$	20,794	$	19	$	642,805

Consolidating Statements of Comprehensive Income



	DaVita Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2017
Net income	$	663,618		$	478,192	$	241,312		$	(552,567	)	$	830,555
Other comprehensive income	3,106			—		99,770			—			102,876
Total comprehensive income	666,724			478,192		341,082			(552,567		)	933,431
Less: Comprehensive income attributable to noncontrolling interest	—			—		—			(166,935		)	(166,935		)
Comprehensive income attributable to DaVita Inc.	$	666,724		$	478,192	$	341,082		$	(719,502	)	$	766,496

For the year ended December 31, 2016
Net income	$	879,874		$	693,720	$	820,486		$	(1,360,998	)	$	1,033,082
Other comprehensive loss	(290		)	—		(29,337		)	—			(29,627		)
Total comprehensive income	879,584			693,720		791,149			(1,360,998		)	1,003,455
Less: Comprehensive income attributable to noncontrolling interest	—			—		—			(153,398		)	(153,398		)
Comprehensive income attributable to DaVita Inc.	$	879,584		$	693,720	$	791,149		$	(1,514,396	)	$	850,057

For the year ended December 31, 2015
Net income	$	269,732		$	174,957	$	479,700		$	(496,979	)	$	427,410
Other comprehensive loss	(10,920		)	—		(23,889		)	—			(34,809		)
Total comprehensive income	258,812			174,957		455,811			(496,979		)	392,601
Less: Comprehensive income attributable to noncontrolling interest	—			—		—			(157,678		)	(157,678		)
Comprehensive income attributable to DaVita Inc.	$	258,812		$	174,957	$	455,811		$	(654,657	)	$	234,923

Condensed Consolidating Statements of Comprehensive Income



	Consolidated Total			Physician Groups		Unrestricted Subsidiaries		Company and Restricted Subsidiaries⁽¹⁾
For the year ended December 31, 2017
Net income	$	830,555		$	13,611	$	19	$	816,925
Other comprehensive income	102,876			—		—		102,876
Total comprehensive income	933,431			13,611		19		919,801
Less: Comprehensive income attributable to noncontrolling interest	(166,935		)	7,183		—		(174,118		)
Comprehensive income attributable to DaVita Inc.	$	766,496		$	20,794	$	19	$	745,683


(1)	After the elimination of the unrestricted subsidiaries and the physician groups

Consolidating Balance Sheets



	DaVita Inc.		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Total
As of December 31, 2017
Cash and cash equivalents	$	149,305	$	—	$	358,929	$	—		$	508,234
Accounts receivable, net	—		1,208,715		506,035		—			1,714,750
Other current assets	68,027		604,450		87,255		—			759,732
Current assets held for sale	—		4,992,067		769,575		—			5,761,642
Total current assets	217,332		6,805,232		1,721,794		—			8,744,358
Property and equipment, net	408,010		1,560,390		1,180,813		—			3,149,213
Intangible assets, net	250		50,971		62,606		—			113,827
Investments in subsidiaries	10,009,874		3,085,722		—		(13,095,596		)	—
Intercompany receivables	3,677,947		—		1,313,213		(4,991,160		)	—
Other long-term assets and investments	47,297		68,344		214,875		—			330,516
Goodwill	—		4,732,320		1,877,959		—			6,610,279
Total assets	$	14,360,710	$	16,302,979	$	6,371,260	$	(18,086,756	)	$	18,948,193
Current liabilities	$	238,706	$	1,181,139	$	436,262	$	—		$	1,856,107
Current liabilities held for sale	—		739,294		445,776		—			1,185,070
Total current liabilities	238,706		1,920,433		882,038		—			3,041,177
Intercompany payables	—		3,690,042		1,301,118		(4,991,160		)	—
Long-term debt and other long-term liabilities	8,857,373		682,630		469,587		—			10,009,590
Noncontrolling interests subject to put provisions	574,602		—		—		436,758			1,011,360
Total DaVita Inc. shareholders' equity	4,690,029		10,009,874		3,085,722		(13,095,596		)	4,690,029
Noncontrolling interests not subject to put provisions	—		—		632,795		(436,758		)	196,037
Total equity	4,690,029		10,009,874		3,718,517		(13,532,354		)	4,886,066
Total liabilities and equity	$	14,360,710	$	16,302,979	$	6,371,260	$	(18,086,756	)	$	18,948,193

Condensed Consolidating Balance Sheets



	Consolidated Total		Physician Groups		Unrestricted Subsidiaries		Company and Restricted Subsidiaries⁽¹⁾
As of December 31, 2017
Cash and cash equivalents	$	508,234	$	—	$	—	$	508,234
Accounts receivable, net	1,714,750		—		—		1,714,750
Other current assets	759,732		3,033		—		756,699
Other current assets held for sale	5,761,642		423,205		2,733		5,335,704
Total current assets	8,744,358		426,238		2,733		8,315,387
Property and equipment, net	3,149,213		—		—		3,149,213
Amortizable intangibles, net	113,827		—		—		113,827
Other long-term assets	330,516		—		—		330,516
Goodwill	6,610,279		—		—		6,610,279
Total assets	$	18,948,193	$	426,238	$	2,733	$	18,519,222
Current liabilities	$	1,856,107	$	—	$	—	$	1,856,107
Current liabilities held for sale	1,185,070		308,884		—		876,186
Total current liabilities	3,041,177		308,884		—		2,732,293
Payables to parent	—		—		2,733		(2,733		)
Long-term debt and other long-term liabilities	10,009,590		—		—		10,009,590
Noncontrolling interests subject to put provisions	1,011,360		—		—		1,011,360
Total DaVita Inc. shareholders' equity	4,690,029		117,354		—		4,572,675
Noncontrolling interests not subject to put provisions	196,037		—		—		196,037
Shareholders' equity	4,886,066		117,354		—		4,768,712
Total liabilities and shareholders' equity	$	18,948,193	$	426,238	$	2,733	$	18,519,222

Consolidating Statements of Cash Flows

Consolidating Statements of Cash Flow



	DaVita Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2017
Cash flows from operating activities:
Net income	$	663,618		$	478,192		$	241,312		$	(552,567	)	$	830,555
Changes in operating assets and liabilities and non-cash items included in net income	(534,302		)	366,947			691,682			552,567			1,076,894
Net cash provided by operating activities	129,316			845,139			932,994			—			1,907,449
Cash flows from investing activities:
Additions of property and equipment, net	(155,972		)	(490,800		)	(258,478		)	—			(905,250		)
Acquisitions	—			(693,522		)	(110,357		)	—			(803,879		)
Proceeds from asset sales, net of cash divested	—			90,340			1,996			—			92,336
Investments and other items	211,619			(9,003		)	47,446			—			250,062
Net cash provided by (used in) investing activities	55,647			(1,102,985		)	(319,393		)	—			(1,366,731		)
Cash flows from financing activities:
Long-term debt and related financing costs, net	173,529			(12,662		)	(6,019		)	—			154,848
Intercompany borrowing	22,589			218,980			(241,569		)	—			—
Other items	(781,697		)	(2,493		)	(136,915		)	—			(921,105		)
Net cash (used in) provided by financing activities	(585,579		)	203,825			(384,503		)	—			(766,257		)
Effect of exchange rate changes on cash	—			—			254			—			254
Net (decrease) increase in cash and cash equivalents	(400,616		)	(54,021		)	229,352			—			(225,285		)
Less: Net decrease in cash and cash equivalents from discontinued operations	—			(54,021		)	(4,722		)	—			(58,743		)
Net (decrease) increase in cash and cash equivalents from continuing operations	(400,616		)	—			234,074			—			(166,542		)
Cash and cash equivalents of continuing operations at beginning of the year	549,921			—			124,855			—			674,776
Cash and cash equivalents of continuing operations at end of the year	$	149,305		$	—		$	358,929		$	—		$	508,234

Consolidating Statements of Cash Flow - (continued)



	DaVita Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2016
Cash flows from operating activities:
Net income	$	879,874		$	693,720		$	820,486		$	(1,360,998	)	$	1,033,082
Changes in operating assets and liabilities and non-cash items included in net income	(612,706		)	350,684			(168,614		)	1,360,998			930,362
Net cash provided by operating activities	267,168			1,044,404			651,872			—			1,963,444
Cash flows from investing activities:
Additions of property and equipment, net	(139,303		)	(382,305		)	(307,487		)	—			(829,095		)
Acquisitions	—			(472,413		)	(91,443		)	—			(563,856		)
Proceeds from asset and business sales, net of cash divested	—			70,342			(5,617		)	—			64,725
Investments and other items	153,031			(29,038		)	2,565			—			126,558
Net cash provided by (used in) investing activities	13,728			(813,414		)	(401,982		)	—			(1,201,668		)
Cash flows from financing activities:
Long-term debt and related financing costs, net	(92,460		)	(27,830		)	(4,152		)	—			(124,442		)
Intercompany borrowing	236,052			(231,800		)	(4,252		)	—			—
Other items	(1,061,203		)	(21,525		)	(144,811		)	—			(1,227,539		)
Net cash used in financing activities	(917,611		)	(281,155		)	(153,215		)	—			(1,351,981		)
Effect of exchange rate changes on cash	—			—			4,276			—			4,276
Net (decrease) increase in cash and cash equivalents	(636,715		)	(50,165		)	100,951			—			(585,929		)
Less: Net (decrease) increase in cash and cash equivalents from discontinued operations	—			(50,165		)	34,377			—			(15,788		)
Net (decrease) increase in cash and cash equivalents from continuing operations	(636,715		)	—			66,574			—			(570,141		)
Cash and cash equivalents of continuing operations at beginning of the year	1,186,636			—			58,281			—			1,244,917
Cash and cash equivalents of continuing operations at end of the year	$	549,921		$	—		$	124,855		$	—		$	674,776

Consolidating Statements of Cash Flow - (continued)



	DaVita Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Total
For the year ended December 31, 2015
Cash flows from operating activities:
Net income	$	269,732		$	174,957		$	479,700		$	(496,979	)	$	427,410
Changes in operating assets and liabilities and non-cash items included in net income	(125,981		)	684,760			74,032			496,979			1,129,790
Net cash provided by operating activities	143,751			859,717			553,732			—			1,557,200
Cash flows from investing activities:
Additions of property and equipment, net	(115,269		)	(319,695		)	(273,034		)	—			(707,998		)
Acquisitions	—			(76,983		)	(19,486		)	—			(96,469		)
Proceeds from asset sales	—			19,715			—			—			19,715
Investments and other items	(74,474		)	(2,144		)	(20,414		)	—			(97,032		)
Net cash used in investing activities	(189,743		)	(379,107		)	(312,934		)	—			(881,784		)
Cash flows from financing activities:
Long-term debt and related financing costs, net	640,009			(11,953		)	(8,358		)	—			619,698
Intercompany borrowing	466,038			(370,839		)	(95,199		)	—			—
Other items	(572,295		)	(66,382		)	(119,991		)	—			(758,668		)
Net cash provided by (used in) financing activities	533,752			(449,174		)	(223,548		)	—			(138,970		)
Effect of exchange rate changes on cash	—			—			(2,571		)	—			(2,571		)
Net increase in cash and cash equivalents	487,760			31,436			14,679			—			533,875
Less: Net increase (decrease) in cash and cash equivalents from discontinued operations	—			31,436			(5,581		)	—			25,855
Net increase in cash and cash equivalents from continuing operations	487,760			—			20,260			—			508,020
Cash and cash equivalents of continuing operations at beginning of the year	698,876			—			38,021			—			736,897
Cash and cash equivalents of continuing operations at end of the year	$	1,186,636		$	—		$	58,281		$	—		$	1,244,917

Condensed Consolidating Statements of Cash Flow



	Consolidated Total			Physician Groups			Unrestricted Subsidiaries			Company and Restricted Subsidiaries⁽¹⁾
For the year ended December 31, 2017
Cash flows from operating activities:
Net income	$	830,555		$	13,611		$	19		$	816,925
Changes in operating and intercompany assets and liabilities and non-cash items included in net income	1,076,894			27,312			(19		)	1,049,601
Net cash provided by operating activities	1,907,449			40,923			—			1,866,526
Cash flows from investing activities:
Additions of property and equipment	(905,250		)	(5,406		)	—			(899,844		)
Acquisitions and divestitures, net	(803,879		)	—			—			(803,879		)
Proceeds from asset sales	92,336			—			—			92,336
Investments and other items, net	250,062			(3,800		)	—			253,862
Net cash used in investing activities	(1,366,731		)	(9,206		)	—			(1,357,525		)
Cash flows from financing activities:
Long-term debt and related financing costs, net	154,848			—			—			154,848
Intercompany	—			(36,220		)	—			36,220
Other items	(921,105		)	—			—			(921,105		)
Net cash used in financing activities	(766,257		)	(36,220		)	—			(730,037		)
Effect of exchange rate changes on cash	254			—			—			254
Net decrease in cash and cash equivalents	(225,285		)	(4,503		)	—			(220,782		)
Less: Net decrease in cash and cash equivalents from discontinued operations	(58,743		)	(4,503		)	—			(54,240		)
Net decrease in cash and cash equivalents from continuing operations	(166,542		)	—			—			(166,542		)
Cash and cash equivalents of continuing operations at beginning of the year	674,776			—			—			674,776
Cash and cash equivalents of continuing operations at end of the year	$	508,234		$	—		$	—		$	508,234


(1)	After the elimination of the unrestricted subsidiaries and the physician groups