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Condensed consolidating financial statements
 3 Months Ended
Mar. 31, 2018
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 March 31, 2018
 
 
 
 
 
Patient services revenues
 
$
—

 
$
1,790,188

 
$
848,401

 
$
(47,515
)
 
$
2,591,074

Provision for uncollectible accounts
 
—

 
9,628

 
15,917

 
—

 
25,545

Net patient service revenues
 
—

 
1,799,816

 
864,318

 
(47,515
)
 
2,616,619

Other revenues
 
195,565

 
204,960

 
70,933

 
(238,633
)
 
232,825

Total net revenues
 
195,565

 
2,004,776

 
935,251

 
(286,148
)
 
2,849,444

Operating expenses and charges
 
133,356

 
1,791,094

 
800,456

 
(286,148
)
 
2,438,758

Operating income
 
62,209

 
213,682

 
134,795

 
—

 
410,686

Debt expense
 
(114,334
)
 
(52,197
)
 
(7,375
)
 
60,390

 
(113,516
)
Other income, net
 
104,081

 
2,523

 
5,704

 
(107,726
)
 
4,582

Income tax expense
 
14,387

 
48,944

 
7,406

 
—

 
70,737

Equity earnings in subsidiaries
 
141,117

 
66,496

 
—

 
(207,613
)
 
—

Net income from continuing operations
 
178,686

 
181,560

 
125,718

 
(254,949
)
 
231,015

Net (loss) income from discontinued operations, net of
tax
 
—

 
(40,443
)
 
(12,679
)
 
47,336

 
(5,786
)
Net income
 
178,686

 
141,117

 
113,039

 
(207,613
)
 
225,229

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
—

 
(46,543
)
 
(46,543
)
Net income attributable to DaVita Inc.
 
$
178,686

 
$
141,117

 
$
113,039

 
$
(254,156
)
 
$
178,686


 
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended March 31, 2017
 
DaVita Inc.
 
 
 
 
Patient service revenues
 
$
—

 
$
1,530,726

 
$
929,231

 
$
(37,171
)
 
$
2,422,786

Provision for uncollectible accounts
 
—

 
(61,053
)
 
(46,005
)
 
—

 
(107,058
)
Net patient service revenues
 
—

 
1,469,673

 
883,226

 
(37,171
)
 
2,315,728

Other revenues
 
221,386

 
305,618

 
16,090

 
(227,571
)
 
315,523

Total net revenues
 
221,386

 
1,775,291

 
899,316

 
(264,742
)
 
2,631,251

Operating expenses
 
131,910

 
1,208,820

 
679,335

 
(264,742
)
 
1,755,323

Operating income
 
89,476

 
566,471

 
219,981

 
—

 
875,928

Debt expense
 
(102,664
)
 
(47,643
)
 
(12,232
)
 
58,142

 
(104,397
)
Other income
 
100,337

 
2,803

 
3,586

 
(102,740
)
 
3,986

Income tax expense
 
33,953

 
235,865

 
11,847

 
—

 
281,665

Equity earnings in subsidiaries
 
394,501

 
162,615

 
—

 
(557,116
)
 
—

Net income from continuing operations
 
447,697

 
448,381

 
199,488

 
(601,714
)
 
493,852

Net (loss) income from discontinued operations, net of
tax
 
—

 
(53,880
)
 
15,715

 
44,598

 
6,433

Net income
 
447,697

 
394,501

 
215,203

 
(557,116
)
 
500,285

Less: Net income attributable to noncontrolling interests
 
—

 
—

 
—

 
(52,588
)
 
(52,588
)
Net income attributable to DaVita Inc.
 
$
447,697

 
$
394,501

 
$
215,203

 
$
(609,704
)
 
$
447,697





Condensed Consolidating Statements of Comprehensive Income
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended March 31, 2018
 
DaVita Inc.
 
 
 
 
Net income
 
$
178,686

 
$
141,117

 
$
113,039

 
$
(207,613
)
 
$
225,229

Other comprehensive income
 
2,587

 
—

 
19,881

 
—

 
22,468

Total comprehensive income
 
181,273

 
141,117

 
132,920

 
(207,613
)
 
247,697

Less: Comprehensive income attributable to
noncontrolling interest
 
—

 
—

 
—

 
(46,543
)
 
(46,543
)
Comprehensive income attributable to DaVita Inc.
 
$
181,273

 
$
141,117

 
$
132,920

 
$
(254,156
)
 
$
201,154

 
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended March 31, 2017
 
DaVita Inc.
 
 
 
 
Net income
 
$
447,697

 
$
394,501

 
$
215,203

 
$
(557,116
)
 
$
500,285

Other comprehensive income
 
(506
)
 
—

 
13,261

 
—

 
12,755

Total comprehensive income
 
447,191

 
394,501

 
228,464

 
(557,116
)
 
513,040

Less: Comprehensive income attributable to the
noncontrolling interests
 
—

 
—

 
—

 
(52,586
)
 
(52,586
)
Comprehensive income attributable to DaVita Inc.
 
$
447,191

 
$
394,501

 
$
228,464

 
$
(609,702
)
 
$
460,454

 
 

 
Condensed Consolidating Balance Sheets
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
As of March 31, 2018
 
DaVita Inc.
 
 
 
 
Cash and cash equivalents
 
$
122,047

 
$
—

 
$
236,827

 
$
—

 
$
358,874

Restricted cash and equivalents
 
1,003

 
9,421

 
78,320

 
—

 
88,744

Accounts receivable, net
 
—

 
1,257,461

 
573,129

 
—

 
1,830,590

Other current assets
 
35,555

 
368,131

 
267,396

 
—

 
671,082

Current assets held for sale
 
—

 
5,004,717

 
719,548

 
—

 
5,724,265

Total current assets
 
158,605

 
6,639,730

 
1,875,220

 
—

 
8,673,555

Property and equipment, net
 
413,949

 
1,554,591

 
1,216,683

 
—

 
3,185,223

Intangible assets, net
 
224

 
50,396

 
62,746

 
—

 
113,366

Investments in subsidiaries
 
10,180,619

 
3,138,371

 
—

 
(13,318,990
)
 
—

Intercompany receivables
 
3,593,688

 
—

 
1,488,211

 
(5,081,899
)
 
—

Other long-term assets and investments
 
54,952

 
58,467

 
218,217

 
—

 
331,636

Goodwill
 
—

 
4,730,205

 
1,908,387

 
—

 
6,638,592

Total assets
 
$
14,402,037

 
$
16,171,760

 
$
6,769,464

 
$
(18,400,889
)
 
$
18,942,372

Current liabilities
 
$
247,486

 
$
968,018

 
$
477,394

 
$
—

 
$
1,692,898

Current liabilities held for sale
 
—

 
759,020

 
495,605

 
—

 
1,254,625

Intercompany payables
 
—

 
3,589,494

 
1,492,405

 
(5,081,899
)
 
—

Long-term debt and other long-term liabilities
 
8,984,265

 
674,609

 
519,393

 
—

 
10,178,267

Noncontrolling interests subject to put provisions
 
589,606

 
—

 
—

 
444,895

 
1,034,501

Total DaVita Inc. shareholders' equity
 
4,580,680

 
10,180,619

 
3,138,371

 
(13,318,990
)
 
4,580,680

Noncontrolling interests not subject to put
provisions
 
—

 
—

 
646,296

 
(444,895
)
 
201,401

Total equity
 
4,580,680

 
10,180,619

 
3,784,667

 
(13,763,885
)
 
4,782,081

Total liabilities and equity
 
$
14,402,037

 
$
16,171,760

 
$
6,769,464

 
$
(18,400,889
)
 
$
18,942,372


 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
As of December 31, 2017
 
DaVita Inc.
 
 
 
 
Cash and cash equivalents
 
$
149,305

 
$
—

 
$
358,929

 
$
—

 
$
508,234

Restricted cash and equivalents
 
1,002

 
9,384

 
300

 
—

 
10,686

Accounts receivable, net
 
—

 
1,208,715

 
506,035

 
—

 
1,714,750

Other current assets
 
67,025

 
595,066

 
86,955

 
—

 
749,046

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

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 Statements of Cash Flows
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended March 31, 2018
 
DaVita Inc.
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
Net income
 
$
178,686

 
$
141,117

 
$
113,039

 
$
(207,613
)
 
$
225,229

Changes in operating assets and liabilities and non-cash
items included in net income
 
(82,391
)
 
32,484

 
(20,396
)
 
207,613

 
137,310

Net cash provided by operating activities
 
96,295

 
173,601

 
92,643

 
—

 
362,539

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

Additions of property and equipment
 
(27,356
)
 
(125,375
)
 
(79,712
)
 
—

 
(232,443
)
Acquisitions
 
—

 
(4,417
)
 
(12,165
)
 
—

 
(16,582
)
Proceeds from asset and business sales
 
—

 
18,535

 
—

 
—

 
18,535

Proceeds (purchases) from investment sales and other
items, net
 
31,665

 
(762
)
 
(541
)
 
—

 
30,362

Net cash provided by (used in) investing activities
 
4,309

 
(112,019
)
 
(92,418
)
 
—

 
(200,128
)
Cash flows from financing activities:
 
 

 
 

 
 

 
 

 
 

Long-term debt and related financing costs, net
 
116,307

 
(3,377
)
 
(8,257
)
 
—

 
104,673

Intercompany borrowing (payments)
 
47,394

 
(49,783
)
 
2,389

 
—

 
—

Other items
 
(291,562
)
 
(2,200
)
 
(33,458
)
 
—

 
(327,220
)
Net cash used in financing activities
 
(127,861
)
 
(55,360
)
 
(39,326
)
 
—

 
(222,547
)
Effect of exchange rate changes on cash, cash
equivalents and restricted cash
 
—

 
—

 
6,668

 
—

 
6,668

Net (decrease) increase in cash, cash equivalents and
restricted cash
 
(27,257
)
 
6,222

 
(32,433
)
 
—

 
(53,468
)
Less: Net increase in cash, cash equivalents and
restricted cash from discontinued operations
 
—

 
6,185

 
11,649

 
—

 
17,834

Net (decrease) increase in cash, cash equivalents and
restricted cash from continuing operations
 
(27,257
)
 
37

 
(44,082
)
 
—

 
(71,302
)
Cash, cash equivalents and restricted cash of continuing
operations at beginning of the year
 
150,307

 
9,384

 
359,229

 
—

 
518,920

Cash, cash equivalents and restricted cash of continuing
operations at end of the period
 
$
123,050

 
$
9,421

 
$
315,147

 
$
—

 
$
447,618


 
 
 
 
 
Guarantor
subsidiaries
 
Non-
Guarantor
subsidiaries
 
Consolidating
adjustments
 
Consolidated
total
For The Three Months Ended March 31, 2017
 
DaVita Inc.
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
Net income
 
$
447,697

 
$
394,501

 
$
215,203

 
$
(557,116
)
 
$
500,285

Changes in operating assets and liabilities and non-cash
items included in net income
 
(149,627
)
 
(142,597
)
 
99,994

 
557,116

 
364,886

Net cash provided by operating activities
 
298,070

 
251,904

 
315,197

 
—

 
865,171

Cash flows from investing activities:
 
 

 
 

 
 

 
 

 
 

Additions of property and equipment
 
(30,580
)
 
(133,909
)
 
(50,046
)
 
—

 
(214,535
)
Acquisitions
 
—

 
(70,237
)
 
(6,999
)
 
—

 
(77,236
)
Proceeds from asset and business sales, net of cash
divested
 
—

 
46,612

 
—

 
—

 
46,612

(Purchases) proceeds from investment sales and other
items, net
 
(54,150
)
 
(1,951
)
 
51,273

 
—

 
(4,828
)
Net cash used in investing activities
 
(84,730
)
 
(159,485
)
 
(5,772
)
 
—

 
(249,987
)
Cash flows from financing activities:
 
 

 
 

 
 

 
 

 
 

Long-term debt and related financing costs, net
 
(27,504
)
 
(4,616
)
 
(4,021
)
 
—

 
(36,141
)
Intercompany borrowing (payments)
 
338,984

 
(71,541
)
 
(267,443
)
 
—

 
—

Other items
 
3,330

 
(799
)
 
(25,327
)
 
—

 
(22,796
)
Net cash used in financing activities
 
314,810

 
(76,956
)
 
(296,791
)
 
—

 
(58,937
)
Effect of exchange rate changes on cash, cash
equivalents and restricted cash
 
—

 
—

 
2,820

 
—

 
2,820

Net increase in cash, cash equivalents and restricted cash
 
528,150

 
15,463

 
15,454

 
—

 
559,067

Less: Net increase in cash, cash equivalents and
restricted cash from discontinued operations
 
—

 
15,438

 
9,055

 
—

 
24,493

Net increase in cash, cash equivalents and restricted cash
from continuing operations
 
528,150

 
25

 
6,399

 


 
534,574

Cash, cash equivalents and restricted cash of continuing
operations at beginning of the year
 
549,921

 
8,687

 
124,855

 
—

 
683,463

Cash, cash equivalents and restricted cash of continuing
operations at end of the period
 
$
1,078,071

 
$
8,712

 
$
131,254

 


 
$
1,218,037