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Long-Term Debt | 12 Months Ended
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Dec. 31, 2022
Debt Disclosure [Abstract] |
Long-Term Debt | Long-term debt Long-term debt was comprised of the following:
| December 31, |  |  |  | As of December 31, 2022
| 2022 |  | 2021 |  | Maturity date |  | Interest rate |  | Estimated fair value(1)
Senior Secured Credit Facilities: |  |  |  |  |  |  |  |  |
Term Loan A | $ | 1,498,438 |  |  | $ | 1,596,875 |  |  | 8/12/2024 |  | LIBOR + 1.75% |  | $ | 1,468,469 |
Term Loan B-1 | 2,660,831 |  |  | 2,688,263 |  |  | 8/12/2026 |  | LIBOR + 1.75% |  | $ | 2,587,658 |
Revolving line of credit | 165,000 |  |  | — |  |  | 8/12/2024 |  | LIBOR + 1.75% |  | $ | 165,000 |
Senior Notes: |  |  |  |  |  |  |  |  |
4.625% Senior Notes | 2,750,000 |  |  | 2,750,000 |  |  | 6/1/2030 |  | 4.625 | % |  | $ | 2,224,063 |
3.75% Senior Notes | 1,500,000 |  |  | 1,500,000 |  |  | 2/15/2031 |  | 3.75 | % |  | $ | 1,115,625 |
Acquisition obligations and other notes payable(2) | 120,562 |  |  | 130,599 |  |  | 2023-2036 |  | 6.56 | % |  | $ | 120,562 |
Financing lease obligations(3) | 273,688 |  |  | 299,128 |  |  | 2023-2038 |  | 4.51 | % |  |
Total debt principal outstanding | 8,968,519 |  |  | 8,964,865 |  |  |  |  |  |  |
Discount and deferred financing costs(4) | (44,498) |  |  | (56,685) |  |  |  |  |  |  |
| 8,924,021 |  |  | 8,908,180 |  |  |  |  |  |  |
Less current portion | (231,404) |  |  | (179,030) |  |  |  |  |  |  |
| $ | 8,692,617 |  |  | $ | 8,729,150 |  |  |  |  |  |  |
(1)For the Company's senior secured credit facilities and senior notes, fair value estimates are based upon bid and ask quotes, typically a level 2 input. For acquisition obligations and other notes payable, the carrying values presented here approximate their estimated fair values, based on estimates of their present values using level 2 interest rate inputs. (2)The interest rate presented for acquisition obligations and other notes payable is their weighted average interest rate based on the current fixed and LIBOR interest rate components in effect as of December 31, 2022. (3)Financing lease obligations are measured at their approximate present values at inception. The interest rate presented is the weighted average discount rate embedded in financing leases outstanding. (4)As of December 31, 2022, the carrying amount of the Company's senior secured credit facilities have been reduced by a discount of $3,497 and deferred financing costs of $18,816 and the carrying amount of the Company's senior notes have been reduced by deferred financing costs of $36,203 and increased by a debt premium of $14,018. As of December 31, 2021, the carrying amount of the Company's senior secured credit facilities was reduced by a discount of $4,473 and deferred financing costs of $27,207, and the carrying amount of the Company's senior notes was reduced by deferred financing costs of $40,914 and increased by a debt premium of $15,909. Scheduled maturities of long-term debt at December 31, 2022 were as follows:
2023 | $ | 231,404 |
2024 | $ | 1,587,867 |
2025 | $ | 67,112 |
2026 | $ | 2,627,310 |
2027 | $ | 35,176 |
Thereafter | $ | 4,419,650 |
During the year ended December 31, 2022, the Company made regularly scheduled mandatory principal payments under its senior secured credit facilities totaling $98,437 on Term Loan A and $27,432 on Term Loan B-1. Senior Secured Credit Facilities Borrowings under the Company's senior secured credit facilities are guaranteed and secured by substantially all of DaVita Inc.'s and certain of the Company's domestic subsidiaries' assets and are senior to all unsecured indebtedness. Borrowings under this facility's Term Loan A, Term Loan B-1 and revolving line of credit rank equal in priority for that security and related subsidiary guarantees under the facility's terms. Borrowings under this credit facility are based on the London Interbank Offered Rate (LIBOR), unless another base rate is elected. This facility also provides a mechanism for transition to an alternative variable base rate upon cessation of LIBOR. Outstanding borrowings under Term Loan A and Term Loan B-1 consist of tranches that can range in maturity from one month to 12 months. As of December 31, 2022, all outstanding term loan tranches are one month in duration. For Term Loan A and Term Loan B-1, each tranche bears interest at a LIBOR rate determined by the duration of such tranche plus an interest rate margin. The LIBOR variable component of the interest rate for each tranche is reset as the tranche matures and a new tranche is established. At December 31, 2022, the overall weighted average interest rate for Term Loan A and Term Loan B-1 was determined based upon the LIBOR interest rates in effect for all of their individual tranches plus the respective interest rate margins presented in the table above. As of December 31, 2022, the Company had $165,000 outstanding on the $1,000,000 revolving line of credit under its senior secured credit facilities. Each of these borrowings were priced on one-month LIBOR variable base rates as well. Credit available under this revolving line of credit is reduced by the amount of any letters of credit outstanding thereunder, of which there were none as of December 31, 2022. The Company also had letters of credit of approximately $108,826 outstanding under a separate bilateral secured letter of credit facility as of December 31, 2022. As of December 31, 2022, the Company's 2019 interest rate cap agreements described below had the economic effect of capping the Company's maximum exposure to LIBOR variable interest rate changes on equivalent amounts of the Company's floating rate debt, including all of Term Loan B-1 and a portion of Term Loan A. The remaining $659,269 outstanding principal balance of Term Loan A and the $165,000 balance outstanding on the revolving line of credit are subject to LIBOR-based interest rate volatility. Senior Notes The Senior Notes are unsecured obligations, rank equally in right of payment with the Company’s existing and future unsecured senior indebtedness and require semi-annual interest payments. The Company may redeem some or all of the Senior Notes at any time on or after certain specific dates and at certain specific redemption prices as outlined in each senior note agreement. Interest rates on the Senior Notes are fixed by their terms. Interest rate cap agreements The Company's interest rate cap agreements are designated as cash flow hedges and, as a result, changes in their fair values are reported in other comprehensive income. These cap agreements have variable legs priced at LIBOR to match the variable rates incurred on the senior secured credit facility borrowings that they hedge. Like the senior secured credit facilities, these interest rate cap agreements include a mechanism for transition to an alternative variable base rate upon cessation of LIBOR. The original premiums paid for the caps are amortized to debt expense on a straight-line basis over the term of each cap agreement starting from its effective date. These cap agreements do not contain credit-risk contingent features. The following table summarizes the Company’s interest rate cap agreements outstanding as of December 31, 2022 and December 31, 2021, which are classified in other long-term assets on its consolidated balance sheet:
|  |  |  |  |  |  |  |  | Year ended |  | December 31,
|  |  | LIBOR maximum rate |  |  |  |  |  | December 31, 2022 |  | 2022 |  | 2021
| Notional amount |  |  | Effective date |  | Expiration date |  | Debt expense |  | Recorded OCI gain |  | Fair value
2019 interest rate cap agreements | $ | 3,500,000 |  |  | 2.00% |  | 6/30/2020 |  | 6/30/2024 |  | $ | (11,732) |  |  | $ | 144,793 |  |  | $ | 139,755 |  |  | $ | 12,203 |
The following table summarizes the effects of the Company’s interest rate cap agreements for the years ended December 31, 2022, 2021 and 2020:
|  | Amount of unrealized gains (losses) in OCI on interest rate cap agreements |  | Location of losses |  | Reclassification from accumulated other comprehensive income into net income
|  | Year ended December 31, |  |  | Year ended December 31,
Derivatives designated as cash flow hedges |  | 2022 |  | 2021 |  | 2020 |  |  | 2022 |  | 2021 |  | 2020
Interest rate cap agreements |  | $ | 144,793 |  |  | $ | 9,532 |  |  | $ | (21,781) |  |  | Debt expense |  | $ | (11,732) |  |  | $ | 5,509 |  |  | $ | 7,081 |
Related income tax |  | (36,124) |  |  | (2,377) |  |  | 5,435 |  |  | Related income tax |  | 2,926 |  |  | (1,376) |  |  | (1,768) |
Total |  | $ | 108,669 |  |  | $ | 7,155 |  |  | $ | (16,346) |  |  |  |  | $ | (8,806) |  |  | $ | 4,133 |  |  | $ | 5,313 |
See Note 20 for further details on amounts recorded and reclassified from accumulated other comprehensive (loss) income. The Company’s weighted average effective interest rate on its senior secured credit facilities at the end of 2022 was 4.59%, based upon the current margins in effect for its senior secured credit facilities as of December 31, 2022. The Company’s weighted average effective interest rate on all debt, including the effect of interest rate caps and amortization of debt discount, was 3.96% for the year ended December 31, 2022 and 4.52% as of December 31, 2022. As of December 31, 2022, the Company’s interest rates were fixed on approximately 51.3% of its total debt. Debt expense Debt expense consisted of interest expense of $339,247, $267,049 and $282,932 and the amortization and accretion of debt discounts and premiums, amortization of deferred financing costs and the amortization of interest rate cap agreements of $17,772, $18,205 and $21,179 for 2022, 2021 and 2020, respectively. These interest expense amounts are net of capitalized interest.

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- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 + Details
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