Held for Sale and Discontinued Operations Held for Sale and Discontinued Operations

3 Months Ended

Mar. 31, 2019

Held for Sale and Discontinued Operations [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Held for sale and discontinued operations

DaVita Medical Group

In December 2017, the Company entered into an agreement to sell its DMG division to Collaborative Care Holdings, LLC (Optum), a subsidiary of UnitedHealth Group Inc., subject to receipt of required regulatory approvals and other customary closing conditions. As a result, 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 condensed consolidated financial statements. The contractual termination date under this equity purchase agreement is June 30, 2019.

The following table presents the financial results of discontinued operations related to DMG:

	Three months ended March 31,
	2019		2018
Revenues	$	1,382,281	$	1,227,932
Expenses	1,338,153		1,226,407
Income from discontinued operations before taxes	44,128		1,525
Income tax expense	13,823		7,311
Net income (loss) from discontinued operations, net of tax	$	30,305	$	(5,786	)

The following table presents the financial position of discontinued operations related to DMG:

	March 31, 2019			December 31, 2018
Assets
Cash and cash equivalents	$	533,615		$	414,683
Other current assets	613,359			557,403
Property and equipment, net	476,781			458,040
Operating lease right-of-use assets	412,388			—
Intangible assets, net	1,317,036			1,316,974
Other long-term assets	120,347			112,127
Goodwill	2,848,262			2,847,178
Valuation allowance on disposal group	(316,840		)	(316,840		)
Total current assets held for sale, net	$	6,004,948		$	5,389,565
Liabilities
Other liabilities	$	624,319		$	479,134
Medical payables	512,523			436,839
Current portion of operating leases liabilities	68,031			—
Current portion of long-term debt	2,832			3,122
Long-term operating leases liabilities	387,841			—
Long-term debt	33,073			33,425
Other long-term liabilities	124,691			291,239
Total current liabilities held for sale	$	1,753,310		$	1,243,759

The following table presents cash flows of discontinued operations related to DMG:

	Three months ended March 31,
	2019			2018
Net cash provided by operating activities from discontinued operations	$	68,240		$	156,248
Net cash used in investing activities from discontinued operations	$	(22,809	)	$	(33,068	)

DMG acquisitions

During the first three months of 2019, the Company's DMG business acquired one medical business for a total of $1,064 in cash and deferred purchase price of $105. 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 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.