Business Segment Information

3 Months Ended

Mar. 31, 2014

Notes to Consolidated Financial Statements [Abstract]

Business Segment Information

13. Segment and Corporate Information

The Company has identified three operating segments, North America Segment, EMEALAand Asia-Pacific, 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. For reporting purposes, the Company has aggregated the EMEALA 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 of 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 U.S. GAAP.

Management evaluates each segment using measures that reflect all of the segment's controllable revenues and expenses. With respect to the performance of business operations, management believes that the most appropriate U.S. GAAP measures are revenue, operating income and operating income margin. The Company does not include income taxes as it believes this is 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 certain costs, which relate primarily to certain headquarters overhead charges, including accounting and finance, etc. (“Corporate”), 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 at Corporate by Global Manufacturing Operations. The Company's global research and development is also centrally managed at Corporate. 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 accounted for as Corporate.

Information pertaining to the Company's segment and Corporate activities for the three-monthsperiods ended March 31, 2014 and 2013 is set forth below.

				North America Segment		International Segment		Segment Totals		Corporate		Total
Three months ended March 31, 2014
	Net revenue external customers		$	2,392,907	$	1,160,898	$	3,553,805	$	9,787	$	3,563,592
	Inter - segment revenue			1,280		-		1,280		(1,280)		-
	Revenue			2,394,187		1,160,898		3,555,085		8,507		3,563,592
	Depreciation and amortization			(87,649)		(45,021)		(132,670)		(34,497)		(167,167)
	Operating income			335,562		180,446		516,008		(71,113)		444,895
	Income (loss) from equity method investees			10,551		1,971		12,522		-		12,522
	Segment assets			14,860,218		6,267,649		21,127,867		2,294,810		23,422,677
		thereof investments in equity method investees		300,110		433,802		733,912		-		733,912
	Capital expenditures, acquisitions and investments (1)			204,899		64,637		269,536		67,252		336,788
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(2)			(80,407)		(45,900)		(126,307)		(30,046)		(156,353)
	Operating income (3)			366,048		191,617		557,665		(64,352)		493,313
	Income (loss) from equity method investees(4)			3,118		1,690		4,808		-		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 (5)			112,332		82,702		195,034		24,537		219,571
	(1) International acquisitions exclude $7,569 of non-cash acquisitions for 2014.
	(2) Depreciation in the amount of $895 relating to research and development has been reclassified between the North America Segment, the International Segment and Corporate to conform to the current year’s presentation.
	(3) Certain items, in the net aggregate amount of $5,006, relating to research and development, compensation expense and income from equity method investees have been reclassified between the North America Segment, the International Segment and Corporate to conform to the current year’s presentation as applicable.
	(4) Income (loss) from equity method investees in the amount of $396 has been reclassified between the North America Segment, the International Segment and Corporate to conform to the current year’s presentation.
	(5) International acquisitions exclude $3,690 of non-cash acquisitions for 2013.