XML 52 R29.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Held for Sale and Discontinued Operations | 12 Months Ended
--- | ---
Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract] |
Held for Sale and Discontinued Operations | Held for sale and discontinued operations DaVita Medical Group (DMG) In December 2017, the Company entered into an equity purchase agreement to sell its DMG division to Optum, a subsidiary of UnitedHealth Group Inc., subject to receipt of required regulatory approvals and other customary closing conditions. On December 11, 2018, the Company entered into an amendment to the equity purchase agreement, which, among other things, reduced the purchase price for DMG from $4,900,000 to $4,340,000. The current deadline to close the transaction under the equity purchase agreement is June 30, 2019, and the transaction is expected to close prior to that date. 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 in these consolidated financial statements. During 2018, the Company recorded $468,005 in charges on its DMG business which included a $316,840 valuation adjustment, a $41,537 goodwill impairment charge and $109,628 in related tax expense on this held-for-sale business based on updated assessments of fair value. The following table presents the financial results of discontinued operations related to DMG:
| Year ended December 31,
| 2018 |  | 2017 |  | 2016
Net revenues | $ | 4,963,792 |  |  | $ | 4,676,213 |  |  | $ | 4,113,414 |
Expenses | 4,962,686 |  |  | 4,634,782 |  |  | 3,994,624 |
Goodwill and other asset impairment charges | 41,537 |  |  | 651,659 |  |  | 253,000 |
Valuation adjustment on disposal group | 316,840 |  |  | — |  |  | — |
Loss from discontinued operations before taxes | (357,271 | ) |  | (610,228 | ) |  | (134,210 | )
Income tax expense (benefit) | 99,768 |  |  | (364,856 | ) |  | 24,052 |
Net loss from discontinued operations, net of tax | $ | (457,038 | ) |  | $ | (245,372 | ) |  | $ | (158,262 | )
The following table presents the financial position of discontinued operations related to DMG:
| December 31, 2018 |  | December 31, 2017
Assets |  |  |  |  |
Cash and cash equivalents | $ | 414,683 |  |  | $ | 179,668 |
Other current assets | 557,403 |  |  | 826,608 |
Property and equipment, net | 458,040 |  |  | 379,945 |
Intangible assets, net | 1,316,974 |  |  | 1,316,550 |
Other long-term assets | 112,127 |  |  | 178,894 |
Goodwill | 2,847,178 |  |  | 2,879,977 |
Valuation allowance on disposal group | (316,840 | ) |  | — |
Total current assets held for sale | $ | 5,389,565 |  |  | $ | 5,761,642 |
Liabilities |  |  |  |  |
Other liabilities | $ | 479,134 |  |  | $ | 505,734 |
Medical payables | 436,839 |  |  | 457,040 |
Current portion of long-term debt | 3,122 |  |  | 2,845 |
Long-term debt | 33,425 |  |  | 35,003 |
Other long-term liabilities | 291,239 |  |  | 184,448 |
Total current liabilities held for sale | $ | 1,243,759 |  |  | $ | 1,185,070 |
The following table presents cash flows of discontinued operations related to DMG:
| Year ended December 31,
| 2018 |  | 2017 |  | 2016
Net cash provided by operating activities from discontinued operations | $ | 290,684 |  |  | $ | 357,274 |  |  | $ | 287,044 |
Net cash used in investing activities from discontinued operations | $ | (57,382 | ) |  | $ | (232,329 | ) |  | $ | (430,917 | )
DMG acquisitions During 2018, the Company's DMG business acquired other medical businesses for a total of $6,995 in net cash and deferred purchase price of $1,142. During 2017, the Company's DMG business acquired other medical businesses for a total of $135,416 in net cash, deferred purchase price of $1,038, and liabilities assumed of $10,145. During 2016, the Company's DMG business acquired other medical businesses for a total of $398,748 in net cash and deferred purchase price and liabilities assumed of $7,694. For several of the 2018 acquisitions, 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 several of these 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. Sale of Tandigm Health investment In 2018, DMG sold its 19% ownership interest in the Tandigm Health joint venture and a related supporting business for a gain of $25,096 and associated taxes of $6,460, resulting in a net of tax gain of $18,636. Goodwill impairment charges The Company recorded goodwill and other asset impairment charges for the DMG business as presented above. As a result of the December 2018 amendment to the equity purchase agreement, discussed above, the Company recorded a goodwill impairment charge in 2018. Goodwill impairment charges for 2017 and 2016 resulted from continuing developments in the Company’s DMG business, including recent annual updates to Medicare Advantage benchmark reimbursement rates, changes in expectations concerning future government reimbursement rates and the Company’s expected ability to mitigate them, medical cost and utilization trends, commercial pricing pressures, underperformance of certain DMG business units and other market factors.

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration