Condensed Consolidating financial statements (Tables)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
For the three months ended March 31, 2019
Patient services revenues	$	—		$	1,777,246		$	918,604		$	(60,698	)	$	2,635,152
Provision for uncollectible accounts	—			(3,970		)	(1,493		)	—			(5,463		)
Net patient service revenues	—			1,773,276			917,111			(60,698		)	2,629,689
Other revenues	188,836			111,141			35,619			(222,173		)	113,423
Total net revenues	188,836			1,884,417			952,730			(282,871		)	2,743,112
Operating expenses and charges	143,659			1,660,453			881,364			(282,871		)	2,402,605
Operating income	45,177			223,964			71,366			—			340,507
Debt expense	(133,595		)	(52,479		)	(10,719		)	65,274			(131,519		)
Other income, net	110,198			2,596			9,111			(114,965		)	6,940
Income tax expense	7,026			46,544			3,176			—			56,746
Equity earnings in subsidiaries	134,535			46,151			—			(180,686		)	—
Net income from continuing operations	149,289			173,688			66,582			(230,377		)	159,182
Net (loss) income from discontinued operations, net of tax	—			(39,153		)	19,767			49,691			30,305
Net income	149,289			134,535			86,349			(180,686		)	189,487
Less: Net income attributable to noncontrolling interests	—			—			—			(40,198		)	(40,198		)
Net income attributable to DaVita Inc.	$	149,289		$	134,535		$	86,349		$	(220,884	)	$	149,289

				Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
For the three months ended March 31, 2018	DaVita Inc.
Patient service revenues	$	—		$	1,790,188		$	848,401		$	(47,515	)	$	2,591,074
Provision for uncollectible accounts	—			9,628			15,917			—			25,545
Net patient service revenues	—			1,799,816			864,318			(47,515		)	2,616,619
Other revenues	195,565			204,960			70,933			(238,633		)	232,825
Total net revenues	195,565			2,004,776			935,251			(286,148		)	2,849,444
Operating expenses	133,356			1,791,094			800,456			(286,148		)	2,438,758
Operating income	62,209			213,682			134,795			—			410,686
Debt expense	(114,334		)	(52,197		)	(7,375		)	60,390			(113,516		)
Other income	104,081			2,523			5,704			(107,726		)	4,582
Income tax expense	14,387			48,944			7,406			—			70,737
Equity earnings in subsidiaries	141,117			66,496			—			(207,613		)	—
Net income from continuing operations	178,686			181,560			125,718			(254,949		)	231,015
Net loss from discontinued operations, net of tax	—			(40,443		)	(12,679		)	47,336			(5,786		)
Net income	178,686			141,117			113,039			(207,613		)	225,229
Less: Net income attributable to noncontrolling interests	—			—			—			(46,543		)	(46,543		)
Net income attributable to DaVita Inc.	$	178,686		$	141,117		$	113,039		$	(254,156	)	$	178,686

Condensed Consolidating Statements of Income

	Consolidated Total			Physician Groups			Unrestricted Subsidiaries		Company and Restricted Subsidiaries(1)
For the three months ended March 31, 2019
Patient service operating revenues	$	2,635,152		$	—		$	—	$	2,635,152
Provision for uncollectible accounts	(5,463		)	—			—		(5,463		)
Net patient service operating revenues	2,629,689			—			—		2,629,689
Other revenues	113,423			—			—		113,423
Total net operating revenues	2,743,112			—			—		2,743,112
Operating expenses	2,402,605			—			—		2,402,605
Operating income	340,507			—			—		340,507
Debt expense	(131,519		)	—			—		(131,519		)
Other income	6,940			—			—		6,940
Income tax expense	56,746			—			—		56,746
Net income from continuing operations	159,182			—			—		159,182
Net income from discontinued operations, net of tax	30,305			9,237			463		20,605
Net income	189,487			9,237			463		179,787
Less: Net income attributable to noncontrolling interests	(40,198		)	(1,255		)	—		(38,943		)
Net income attributable to DaVita Inc.	$	149,289		$	7,982		$	463	$	140,844

(1)

After elimination of the unrestricted subsidiaries and the physician groups.

Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statements of Comprehensive Income

			Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
For the three months ended March 31, 2019	DaVita Inc.
Net income	$	149,289	$	134,535	$	86,349		$	(180,686	)	$	189,487
Other comprehensive income (loss)	1,026		—		(13,653		)	—			(12,627		)
Total comprehensive income	150,315		134,535		72,696			(180,686		)	176,860
Less: Comprehensive income attributable to noncontrolling interest	—		—		—			(40,198		)	(40,198		)
Comprehensive income attributable to DaVita Inc.	$	150,315	$	134,535	$	72,696		$	(220,884	)	$	136,662

			Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
For the three months ended March 31, 2018	DaVita Inc.
Net income	$	178,686	$	141,117	$	113,039	$	(207,613	)	$	225,229
Other comprehensive income	2,587		—		19,881		—			22,468
Total comprehensive income	181,273		141,117		132,920		(207,613		)	247,697
Less: Comprehensive income attributable to noncontrolling interest	—		—		—		(46,543		)	(46,543		)
Comprehensive income attributable to DaVita Inc.	$	181,273	$	141,117	$	132,920	$	(254,156	)	$	201,154

Condensed Consolidating Statements of Comprehensive Income

	Consolidated Total			Physician Groups			Unrestricted Subsidiaries		Company and Restricted Subsidiaries(1)
For the three months ended March 31, 2019
Net income	$	189,487		$	9,237		$	463	$	179,787
Other comprehensive loss	(12,627		)	—			—		(12,627		)
Total comprehensive income	176,860			9,237			463		167,160
Less: Comprehensive income attributable to the noncontrolling interests	(40,198		)	(1,255		)	—		(38,943		)
Comprehensive income attributable to DaVita Inc.	$	136,662		$	7,982		$	463	$	128,217

(1)

After elimination of the unrestricted subsidiaries and the physician groups.

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

			Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
As of March 31, 2019	DaVita Inc.
Cash and cash equivalents	$	194,347	$	—	$	264,895	$	—		$	459,242
Restricted cash and equivalents	1,006		12,114		89,072		—			102,192
Accounts receivable, net	—		1,349,185		604,237		—			1,953,422
Other current assets	37,185		568,029		100,058		—			705,272
Current assets held for sale, net	—		4,842,062		1,162,886		—			6,004,948
Total current assets	232,538		6,771,390		2,221,148		—			9,225,076
Property and equipment, net	503,677		1,610,442		1,278,147		—			3,392,266
Operating lease right-of-use assets	107,237		1,594,411		1,034,888		—			2,736,536
Intangible assets, net	130		39,813		78,381		—			118,324
Investments in subsidiaries	10,191,084		3,323,518		—		(13,514,602		)	—
Intercompany receivables	3,756,675		—		1,496,009		(5,252,684		)	—
Other long-term assets and investments	53,978		84,137		196,259		—			334,374
Goodwill	—		4,812,366		1,987,002		—			6,799,368
Total assets	$	14,845,319	$	18,236,077	$	8,291,834	$	(18,767,286	)	$	22,605,944
Current liabilities	$	4,702,717	$	1,182,342	$	592,508	$	—		$	6,477,567
Current liabilities held for sale	—		1,084,512		668,798		—			1,753,310
Intercompany payables	—		3,648,453		1,604,231		(5,252,684		)	—
Long-term operating leases liabilities	133,936		1,502,922		988,918		—			2,625,776
Long-term debt and other long-term liabilities	5,520,830		626,764		371,980		—			6,519,574
Noncontrolling interests subject to put provisions	612,482		—		—		530,562			1,143,044
Total DaVita Inc. shareholders' equity	3,875,354		10,191,084		3,323,518		(13,514,602		)	3,875,354
Noncontrolling interests not subject to put provisions	—		—		741,881		(530,562		)	211,319
Total equity	3,875,354		10,191,084		4,065,399		(14,045,164		)	4,086,673
Total liabilities and equity	$	14,845,319	$	18,236,077	$	8,291,834	$	(18,767,286	)	$	22,605,944

			Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
As of December 31, 2018	DaVita Inc.
Cash and cash equivalents	$	60,653	$	—	$	262,385	$	—		$	323,038
Restricted cash and equivalents	1,005		12,048		79,329		—			92,382
Accounts receivable, net	—		1,264,290		594,318		—			1,858,608
Other current assets	37,185		601,318		122,063		—			760,566
Current assets held for sale	—		4,440,953		948,612		—			5,389,565
Total current assets	98,843		6,318,609		2,006,707		—			8,424,159
Property and equipment, net	491,462		1,624,835		1,277,372		—			3,393,669
Intangible assets, net	153		42,933		75,760		—			118,846
Investments in subsidiaries	10,102,750		3,239,862		—		(13,342,612		)	—
Intercompany receivables	3,419,448		—		1,471,203		(4,890,651		)	—
Other long-term assets and investments	53,385		80,537		197,696		—			331,618
Goodwill	—		4,812,365		2,029,595		—			6,841,960
Total assets	$	14,166,041	$	16,119,141	$	7,058,333	$	(18,233,263	)	$	19,110,252
Current liabilities	$	1,945,943	$	1,251,534	$	449,925	$	—		$	3,647,402
Current liabilities held for sale	—		722,766		520,993		—			1,243,759
Intercompany payables	—		3,327,026		1,563,625		(4,890,651		)	—
Long-term debt and other long-term liabilities	7,918,581		715,065		552,406		—			9,186,052
Noncontrolling interests subject to put provisions	598,075		—		—		526,566			1,124,641
Total DaVita Inc. shareholders' equity	3,703,442		10,102,750		3,239,862		(13,342,612		)	3,703,442
Noncontrolling interests not subject to put provisions	—		—		731,522		(526,566		)	204,956
Total equity	3,703,442		10,102,750		3,971,384		(13,869,178		)	3,908,398
Total liabilities and equity	$	14,166,041	$	16,119,141	$	7,058,333	$	(18,233,263	)	$	19,110,252

Condensed Consolidating Balance Sheets

	Consolidated Total		Physician Groups		Unrestricted Subsidiaries		Company and Restricted Subsidiaries(1)
As of March 31, 2019
Cash and cash equivalents	$	459,242	$	—	$	—	$	459,242
Restricted cash and equivalents	102,192		—		—		102,192
Accounts receivable, net	1,953,422		—		—		1,953,422
Other current assets	705,272		—		—		705,272
Current assets held for sale, net	6,004,948		629,422		3,288		5,372,238
Total current assets	9,225,076		629,422		3,288		8,592,366
Property and equipment, net	3,392,266		—		—		3,392,266
Operating lease right-of-use assets	2,736,536		—		—		2,736,536
Amortizable intangibles, net	118,324		—		—		118,324
Other long-term assets	334,374		—		—		334,374
Goodwill	6,799,368		—		—		6,799,368
Total assets	$	22,605,944	$	629,422	$	3,288	$	21,973,234
Current liabilities	$	6,477,567	$	—	$	—	$	6,477,567
Current liabilities held for sale	1,753,310		412,368		—		1,340,942
Payables to parent	—		72,539		3,288		(75,827		)
Long-term operating leases liabilities	2,625,776		—		—		2,625,776
Long-term debt and other long-term liabilities	6,519,574		—		—		6,519,574
Noncontrolling interests subject to put provisions	1,143,044		—		—		1,143,044
Total DaVita Inc. shareholders’ equity	3,875,354		144,515		—		3,730,839
Noncontrolling interests not subject to put provisions	211,319		—		—		211,319
Shareholders’ equity	4,086,673		144,515		—		3,942,158
Total liabilities and shareholder’s equity	$	22,605,944	$	629,422	$	3,288	$	21,973,234

(1)

After elimination of the unrestricted subsidiaries and the physician groups.

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

				Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
For the three months ended March 31, 2019	DaVita Inc.
Cash flows from operating activities:
Net income	$	149,289		$	134,535		$	86,349		$	(180,686	)	$	189,487
Changes in operating assets and liabilities and non-cash items included in net income	(124,409		)	(197,096		)	92,636			180,686			(48,183		)
Net cash provided by (used in) operating activities	24,880			(62,561		)	178,985			—			141,304
Cash flows from investing activities:
Additions of property and equipment	(38,942		)	(112,376		)	(47,560		)	—			(198,878		)
Acquisitions	—			—			(11,274		)	—			(11,274		)
Proceeds from asset and business sales	—			1,456			12,447			—			13,903
Proceeds (purchases) from investment sales and other items, net	1,804			(4,558		)	(1,355		)	—			(4,109		)
Net cash used in investing activities	(37,138		)	(115,478		)	(47,742		)	—			(200,358		)
Cash flows from financing activities:
Long-term debt and related financing costs, net	365,133			(2,439		)	(5,497		)	—			357,197
Intercompany borrowing (payments)	(220,697		)	229,211			(8,514		)	—			—
Other items	1,517			(8,480		)	(25,283		)	—			(32,246		)
Net cash provided by (used in) financing activities	145,953			218,292			(39,294		)	—			324,951
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(921		)	—			(921		)
Net increase in cash, cash equivalents and restricted cash	133,695			40,253			91,028			—			264,976
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations	—			40,187			78,775			—			118,962
Net increase in cash, cash equivalents and restricted cash from continuing operations	133,695			66			12,253			—			146,014
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	61,658			12,048			341,714			—			415,420
Cash, cash equivalents and restricted cash of continuing operations at end of the period	$	195,353		$	12,114		$	353,967		$	—		$	561,434

				Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
For the three months ended March 31, 2018	DaVita Inc.
Cash flows from operating activities:
Net income	$	178,686		$	141,117		$	113,039		$	(207,613	)	$	225,229
Changes in operating assets and liabilities and non-cash items included in net income	(82,391		)	32,484			(20,396		)	207,613			137,310
Net cash provided by operating activities	96,295			173,601			92,643			—			362,539
Cash flows from investing activities:
Additions of property and equipment	(27,356		)	(125,375		)	(79,712		)	—			(232,443		)
Acquisitions	—			(4,417		)	(12,165		)	—			(16,582		)
Proceeds from asset and business sales	—			18,535			—			—			18,535
Proceeds (purchases) from investment sales and other items, net	31,665			(762		)	(541		)	—			30,362
Net cash provided by (used in) investing activities	4,309			(112,019		)	(92,418		)	—			(200,128		)
Cash flows from financing activities:
Long-term debt and related financing costs, net	116,307			(3,377		)	(8,257		)	—			104,673
Intercompany borrowing (payments)	47,394			(49,783		)	2,389			—			—
Other items	(291,562		)	(2,200		)	(33,458		)	—			(327,220		)
Net cash used in financing activities	(127,861		)	(55,360		)	(39,326		)	—			(222,547		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			6,668			—			6,668
Net decrease in cash, cash equivalents and restricted cash	(27,257		)	6,222			(32,433		)	—			(53,468		)
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations	—			6,185			11,649			—			17,834
Net (decrease) increase in cash, cash equivalents and restricted cash from continuing operations	(27,257		)	37			(44,082		)	—			(71,302		)
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	150,307			9,384			359,229			—			518,920
Cash, cash equivalents and restricted cash of continuing operations at end of the period	$	123,050		$	9,421		$	315,147		$	—		$	447,618

Condensed Consolidating Statements of Cash Flows

	Consolidated Total			Physician Groups			Unrestricted Subsidiaries			Company and Restricted Subsidiaries(1)
For the three months ended March 31, 2019
Cash flows from operating activities:
Net income	$	189,487		$	9,237		$	463		$	179,787
Changes in operating and intercompany assets and liabilities and non-cash items included in net income	(48,183		)	9,696			(463		)	(57,416		)
Net cash provided by operating activities	141,304			18,933			—			122,371
Cash flows from investing activities:
Additions of property and equipment	(198,878		)	(229		)	—			(198,649		)
Acquisitions	(11,274		)	—			—			(11,274		)
Proceeds from asset and business sales	13,903			—			—			13,903
Investments and other items	(4,109		)	(1,355		)	—			(2,754		)
Net cash used in investing activities	(200,358		)	(1,584		)	—			(198,774		)
Cash flows from financing activities:
Long-term debt	357,197			—			—			357,197
Intercompany	—			28,965			—			(28,965		)
Other items	(32,246		)	—			—			(32,246		)
Net cash (used in) provided by financing activities	324,951			28,965			—			295,986
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(921		)	—			—			(921		)
Net increase in cash, cash equivalents and restricted cash	264,976			46,314			—			218,662
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations	118,962			46,314			—			72,648
Net increase in cash, cash equivalents and restricted cash from continuing operations	146,014			—			—			146,014
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	415,420			—			—			415,420
Cash, cash equivalents and restricted cash of continuing operations at end of the period	$	561,434		$	—		$	—		$	561,434

(1)

After elimination of the unrestricted subsidiaries and the physician groups.