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Segment Reporting | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment Reporting | Segment reporting The Company consists of two major divisions, DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division is comprised of the Company’s U.S. dialysis and related lab services business, various ancillary services and strategic initiatives, including its international operations, and the Company’s corporate administrative support. See Note 1 "Organization" for a summary description of the Company's businesses. The Company’s operating segments have been defined based on the separate financial information that is regularly produced and reviewed by the Company’s chief operating decision maker in making decisions about allocating resources to and assessing the financial performance of the Company’s various operating lines of business. The chief operating decision maker for the Company is its Chief Executive Officer. The Company’s separate operating segments include its U.S. dialysis and related lab services business, each of its ancillary services and strategic initiatives, its kidney care operations in each foreign sovereign jurisdiction, its other health operations in each foreign sovereign jurisdiction, and its equity method investment in the Asia Pacific joint venture. The U.S. dialysis and related lab services business qualifies as a separately reportable segment, and all other ancillary services and strategic initiatives operating segments, including the international operating segments, have been combined and disclosed in the other segments category. The Company’s operating segment financial information included in this report is prepared on the internal management reporting basis that the chief operating decision maker uses to allocate resources and assess the financial performance of the Company's operating segments. For internal management reporting, segment operations include direct segment operating expenses but generally exclude corporate administrative support costs, which consist primarily of indirect labor, benefits and long-term incentive-based compensation expenses of certain departments which provide support to all of the Company’s various operating lines of business, except to the extent that such costs are charged to and borne by certain ancillary services and strategic initiatives via internal management fees. These corporate administrative support costs are reduced by internal management fees received from the Company’s ancillary lines of business. The following is a summary of segment revenues, segment operating margin (loss), and a reconciliation of segment operating margin to consolidated income from continuing operations before income taxes:
| Year ended December 31,
| 2018 |  | 2017 |  | 2016
Segment revenues:(1) |  |  |  |  |  |  |  |
U.S. dialysis and related lab services |  |  |  |  |  |  |  |
Patient service revenues: |  |  |  |  |  |  |  |
External sources | $ | 10,274,046 |  |  | $ | 9,767,123 |  |  | $ | 9,524,067 |
Intersegment revenues | 92,950 |  |  | 55,176 |  |  | 27,355 |
Total U.S. dialysis and related lab services revenues | 10,366,996 |  |  | 9,822,299 |  |  | 9,551,422 |
Provision for uncollectible accounts | (50,927 | ) |  | (481,973 | ) |  | (429,878 | )
Net U.S. dialysis and related lab services patient service revenues | 10,316,069 |  |  | 9,340,326 |  |  | 9,121,544 |
Other revenues(2) | 19,880 |  |  | 19,739 |  |  | 16,645 |
Total net U.S. dialysis and related lab services revenues | 10,335,949 |  |  | 9,360,065 |  |  | 9,138,189 |
Other - Ancillary services and strategic initiatives |  |  |  |  |  |  |  |
Net patient service revenues | 437,275 |  |  | 323,156 |  |  | 201,867 |
Other external sources | 724,577 |  |  | 1,248,589 |  |  | 1,394,766 |
Intersegment revenues | 34,236 |  |  | 24,603 |  |  | 24,739 |
Total ancillary services and strategic initiatives revenues | 1,196,088 |  |  | 1,596,348 |  |  | 1,621,372 |
Total net segment revenues | 11,532,037 |  |  | 10,956,413 |  |  | 10,759,561 |
Elimination of intersegment revenues | (127,186 | ) |  | (79,779 | ) |  | (52,094 | )
Consolidated net revenues | $ | 11,404,851 |  |  | $ | 10,876,634 |  |  | $ | 10,707,467 |
Segment operating margin (loss): |  |  |  |  |  |  |  |
U.S. dialysis and related lab services | $ | 1,709,721 |  |  | $ | 2,297,198 |  |  | $ | 1,777,014 |
Other—Ancillary services and strategic initiatives | (93,789 | ) |  | (439,477 | ) |  | 266,324 |
Total segment margin | 1,615,932 |  |  | 1,857,721 |  |  | 2,043,338 |
Reconciliation of segment operating margin to consolidated income from continuing operations before income taxes: |  |  |  |  |  |  |  |
Corporate administrative support | (90,108 | ) |  | (44,966 | ) |  | (13,628 | )
Consolidated operating income | 1,525,824 |  |  | 1,812,755 |  |  | 2,029,710 |
Debt expense | (487,435 | ) |  | (430,634 | ) |  | (414,116 | )
Other income | 10,089 |  |  | 17,665 |  |  | 7,511 |
Income from continuing operations before income taxes | $ | 1,048,478 |  |  | $ | 1,399,786 |  |  | $ | 1,623,105 |
(1) | On January 1, 2018, the Company adopted Revenue from Contracts with Customers (Topic 606) using the cumulative effect method for those contracts that were not substantially completed as of January 1, 2018. Results related to performance obligations satisfied beginning on and after January 1, 2018 are presented under Topic 606, while results related to the satisfaction of performance obligations in prior periods continue to be reported in accordance with the Company's historical accounting under Revenue Recognition (Topic 605). See Notes 1 and 2 of these consolidated financial statements for further discussion of the Company's adoption of Topic 606.
(2) | Includes management fee revenues from providing management and administrative services to dialysis ventures in which the Company owns a noncontrolling interest or which are wholly-owned by third parties.
Depreciation and amortization expense by reportable segment is as follows:
| Year ended December 31,
| 2018 |  | 2017 |  | 2016
U.S. dialysis and related lab services | $ | 558,810 |  |  | $ | 520,965 |  |  | $ | 482,768 |
Other - Ancillary services and strategic initiatives | 32,225 |  |  | 38,946 |  |  | 26,729 |
| $ | 591,035 |  |  | $ | 559,911 |  |  | $ | 509,497 |
Summary of assets by reportable segment is as follows:
| Year ended December 31,
| 2018 |  | 2017
Segment assets |  |  |  |  |
U.S. dialysis and related lab services (including equity investments of $95,290 and $84,866, respectively) | $ | 12,333,641 |  |  | $ | 11,802,131 |
Other - Ancillary services and strategic initiatives(1) (including equity investments of $129,321 and $160,668, respectively) | 1,387,046 |  |  | 1,410,763 |
DMG - Held for sale (including equity investments of $4,833 and $10,321, respectively) | 5,389,565 |  |  | 5,761,642 |
Consolidated assets | $ | 19,110,252 |  |  | $ | 18,974,536 |
(1) | Includes approximately $136,052 and $125,932 in 2018 and 2017, respectively, of net property and equipment related to the Company’s international operations.
Expenditures for property and equipment by reportable segment is as follows:
| Year ended December 31,
| 2018 |  | 2017 |  | 2016
U.S. dialysis and related lab services | $ | 856,108 |  |  | $ | 769,732 |  |  | $ | 675,994 |
Other - Ancillary services and strategic initiatives | 45,806 |  |  | 40,377 |  |  | 68,702 |
DMG - Held for sale | 85,224 |  |  | 95,141 |  |  | 84,399 |
| $ | 987,138 |  |  | $ | 905,250 |  |  | $ | 829,095 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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