Business Segment Information

3 Months Ended

Mar. 31, 2013

Notes to Consolidated Financial Statements [Abstract]

Business Segment Information

15. Business Segment and Corporate Information

The Company has identified three operating segments, the North America Segment, the International operating segment, and the Asia Pacific operating segment, which were determined based upon how the Company manages its businesses. All segments are primarily engaged in providing dialysis care services and the distribution of products and equipment for the treatment of ESRD. The Company has aggregated the International and Asia Pacific operating segments as the “International Segment.” The segments are aggregated due to their similar economic characteristics. These characteristics include same services provided and same products sold, the same type patient population, similar methods of distribution of products and services and similar economic environments. The General Partner's management board member responsible for the profitability and cash flow of each segment's various businesses supervises the management of each operating segment. The accounting policies of the segments are the same as those the Company applies in preparing the consolidated financial statements under accounting principles generally accepted in the U.S. (“U.S. GAAP”).

Management evaluates each segment using a measure that reflects all of the segment's controllable revenues and expenses. With respect to the performance of business operations, management believes that the most appropriate measure in this regard is operating income which measures the Company's source of earnings. The Company does not include the investment gain resulting from the 2012 Liberty Acquisition nor income taxes as it believes these items to be outside the segments' control. Financing is a corporate function, which the Company's segments do not control. Therefore, the Company does not include interest expense relating to financing as a segment measurement. Similarly, the Company does not allocate “corporate costs,” which relate primarily to certain headquarters overhead charges, including accounting and finance, professional services, etc., because the Company believes that these costs are also not within the control of the individual segments. Production of products, production asset management, quality management and procurement are centrally managed in Corporate by Global Manufacturing Operations. These corporate activities do not fulfill the definition of a segment. Products are transferred to the segments at cost; therefore no internal profit is generated. The associated internal revenues for the product transfers and their elimination are recorded as corporate activities. Capital expenditures for production are based on the expected demand of the segments and consolidated profitability considerations. In addition, certain revenues, investments and intangible assets, as well as any related expenses, are not allocated to a segment but are accounted for as “Corporate”.

Information pertaining to the Company's segments and its Corporate activities for the three-monthsperiods ended March 31, 2013 and 2012 is set forth below.

				North America		International		Segment Total		Corporate		Total
Three months ended March 31, 2013
	Net revenue external customers		$	2,287,250	$	1,168,652	$	3,455,902	$	8,019	$	3,463,921
	Inter - segment revenue			1,075		-		1,075		(1,075)		-
	Revenue			2,288,325		1,168,652		3,456,977		6,944		3,463,921
	Depreciation and amortization			(80,160)		(45,253)		(125,413)		(30,940)		(156,353)
	Operating income			368,853		183,807		552,660		(59,347)		493,313
	Income (loss) from equity method investees			4,289		915		5,204		(396)		4,808
	Segment assets			14,044,466		5,896,442		19,940,908		2,198,755		22,139,663
		thereof investments in equity method investees		239,689		361,738		601,427		-		601,427
	Capital expenditures, acquisitions and investments (1)			112,332		82,702		195,034		24,537		219,571
Three months ended March 31, 2012
	Net revenue external customers		$	2,104,584	$	1,136,090	$	3,240,674	$	8,081	$	3,248,755
	Inter - segment revenue			3,452		-		3,452		(3,452)		-
	Revenue			2,108,036		1,136,090		3,244,126		4,629		3,248,755
	Depreciation and amortization			(72,016)		(42,927)		(114,943)		(28,431)		(143,374)
	Operating income			347,833		194,912		542,745		(39,779)		502,966
	Income (loss) from equity method investees			2,982		67		3,049		2,448		5,497
	Segment assets			13,974,231		5,889,591		19,863,822		2,124,166		21,987,988
		thereof investments in equity method investees		254,408		381,567		635,975		1,780		637,755
	Capital expenditures, acquisitions and investments (2)			1,760,581		38,886		1,799,467		27,753		1,827,220
	(1) International acquisitions exclude $3,690 of non-cash acquisitions for 2013.
	(2) North America acquisitions exclude $468,793 of non-cash acquisitions and International acquisitions exclude $652 of non-cash acquisitions for 2012.