Held for sale and discontinued operations

DaVita Medical Group

In December 2017, the Company entered into an equity purchase agreement to sell its DMG division to Collaborative Care Holdings, LLC (Optum), a subsidiary of UnitedHealth Group Inc., for $4,900,000 in cash, subject to net working capital and other customary adjustments. The transaction is expected to close in 2018 and is subject to regulatory approvals and other customary closing conditions. As a result of this pending transaction, the DMG business has been classified as held for sale and its results of operations are reported as discontinued operations for all periods presented.

The following table presents the financial results of discontinued operations related to DMG:



	Three months ended March 31,
	2018			2017
Revenues	$	1,227,932		$	1,086,985
Expenses	1,226,407			1,074,452
Income from discontinued operations before taxes	1,525			12,533
Income tax expense	7,311			6,100
Net (loss) income from discontinued operations, net of tax	$	(5,786	)	$	6,433

The following table presents the financial position of discontinued operations related to DMG:



	March 31, 2018		December 31, 2017
Assets
Cash and cash equivalents	192,399		179,668
Other current assets	768,388		826,608
Property and equipment, net	410,127		379,945
Intangible assets, net	1,316,462		1,316,550
Other long-term assets	155,385		178,894
Goodwill	2,881,504		2,879,977
Total current assets held for sale	$	5,724,265	$	5,761,642
Liabilities
Other liabilities	529,354		505,734
Medical payables	505,872		457,040
Current portion of long-term debt	2,735		2,845
Long-term debt	34,541		35,003
Other long-term liabilities	182,123		184,448
Total current liabilities held for sale	$	1,254,625	$	1,185,070

The following table presents cash flows of discontinued operations related to DMG:



	March 31, 2018		March 31, 2017
Net cash provided by operating activities from discontinued operations	156,248		95,585
Net cash used in investing activities from discontinued operations	(33,068	)	(41,686	)

DMG acquisitions

During the first quarter of 2018, the Company's DMG business acquired one medical business for a total of $905 in cash and deferred purchase price of $99. 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 acquisitions are pending final quantification. 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 current held for sale assets and liabilities.