Supplemental data

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following information is presented as supplemental data as required by the indentures governing the Company’s senior notes.

Prior to the DMG sale, the Company provided services to certain physician groups within its DMG business which, while consolidated in its financial statements for financial reporting purposes, were not subsidiaries of nor owned by the Company, did not constitute “Subsidiaries” as defined in the indentures governing our outstanding senior notes, and did not guarantee those senior notes. In addition, the Company operated under management agreements with these physician groups pursuant to which it received management fees from these physician groups.

From and after June 19, 2019, these physician groups were no longer included in the Company's financial statements as they were deconsolidated upon the sale of DMG to Optum.

Condensed Consolidating Statements of Income



For the nine months ended September 30, 2019	Consolidated Total			Physician Groups			Unrestricted Subsidiaries		Company and Restricted Subsidiaries⁽¹⁾
Patient service operating revenues	$	8,150,386		$	—		$	—	$	8,150,386
Provision for uncollectible accounts	(19,689		)	—			—		(19,689		)
Net patient service operating revenues	8,130,697			—			—		8,130,697
Other revenues	359,198			—			—		359,198
Total net operating revenues	8,489,895			—			—		8,489,895
Operating expenses	7,309,166			—			—		7,309,166
Operating income	1,180,729			—			—		1,180,729
Debt expense	(385,176		)	—			—		(385,176		)
Other income	17,863			—			—		17,863
Income tax expense	197,938			—			—		197,938
Net income from continuing operations	615,478			—			—		615,478
Net income from discontinued operations, net of tax	102,854			12,706			249		89,899
Net income	718,332			12,706			249		705,377
Less: Net income attributable to noncontrolling interests	(152,222		)	(1,255		)	—		(150,967		)
Net income attributable to DaVita Inc.	$	566,110		$	11,451		$	249	$	554,410


(1)	After elimination of the unrestricted subsidiaries and the physician groups.

Condensed Consolidating Statements of Comprehensive Income



For the nine months ended September 30, 2019	Consolidated Total			Physician Groups			Unrestricted Subsidiaries		Company and Restricted Subsidiaries⁽¹⁾
Net income	$	718,332		$	12,706		$	249	$	705,377
Other comprehensive income	(42,680		)	—			—		(42,680		)
Total comprehensive income	675,652			12,706			249		662,697
Less: Comprehensive income attributable to the noncontrolling interests	(152,222		)	(1,255		)	—		(150,967		)
Comprehensive income attributable to DaVita Inc.	$	523,430		$	11,451		$	249	$	511,730


(1)	After elimination of the unrestricted subsidiaries and the physician groups.

Condensed Consolidating Balance Sheets



As of September 30, 2019	Consolidated Total		Physician Groups		Unrestricted Subsidiaries		Company and Restricted Subsidiaries⁽¹⁾
Cash and cash equivalents	$	1,253,256	$	—	$	—	$	1,253,256
Restricted cash and equivalents	103,885		—		—		103,885
Accounts receivable, net	1,901,225		—		—		1,901,225
Other current assets	740,352		—		—		740,352
Total current assets	3,998,718		—		—		3,998,718
Property and equipment, net	3,419,238		—		—		3,419,238
Operating lease right-of-use assets	2,781,288		—		—		2,781,288
Amortizable intangibles, net	117,666		—		—		117,666
Other long-term assets	369,261		—		—		369,261
Goodwill	6,765,659		—		—		6,765,659
Total assets	$	17,451,830	$	—	$	—	$	17,451,830
Current liabilities	$	2,206,640	$	—	$	—	$	2,206,640
Long-term operating leases liabilities	2,682,125		—		—		2,682,125
Long-term debt and other long-term liabilities	8,754,483		—		—		8,754,483
Noncontrolling interests subject to put provisions	1,296,059		—		—		1,296,059
Total DaVita Inc. shareholders’ equity	2,318,576		—		—		2,318,576
Noncontrolling interests not subject to put provisions	193,947		—		—		193,947
Shareholders’ equity	2,512,523		—		—		2,512,523
Total liabilities and shareholder’s equity	$	17,451,830	$	—	$	—	$	17,451,830


(1)	After elimination of the unrestricted subsidiaries and the physician groups.

Condensed Consolidating Statements of Cash Flows



For the nine months ended September 30, 2019	Consolidated Total			Physician Groups			Unrestricted Subsidiaries			Company and Restricted Subsidiaries⁽¹⁾
Cash flows from operating activities:
Net income	$	718,332		$	12,706		$	249		$	705,377
Changes in operating and intercompany assets and liabilities and non-cash items included in net income	673,493			(4,607		)	(249		)	678,349
Net cash provided by operating activities	1,391,825			8,099			—			1,383,726
Cash flows from investing activities:
Additions of property and equipment	(547,183		)	(846		)	—			(546,337		)
Acquisitions	(77,348		)	—			—			(77,348		)
Proceeds from asset and business sales	3,863,619			—			—			3,863,619
Investments and other items	(105,063		)	(1,882		)	—			(103,181		)
Net cash provided by (used in) investing activities	3,134,025			(2,728		)	—			3,136,753
Cash flows from financing activities:
Long-term debt	(2,050,012		)	—			—			(2,050,012		)
Intercompany	—			(247,175		)	—			247,175
Other items	(1,953,752		)	—			—			(1,953,752		)
Net cash used in financing activities	(4,003,764		)	(247,175		)	—			(3,756,589		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4,178		)	—			—			(4,178		)
Net increase (decrease) in cash, cash equivalents and restricted cash	517,908			(241,804		)	—			759,712
Less: Net decrease in cash, cash equivalents and restricted cash from discontinued operations	(423,813		)	(241,804		)	—			(182,009		)
Net increase in cash, cash equivalents and restricted cash from continuing operations	941,721			—			—			941,721
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	$	1,357,141		$	—		$	—		$	1,357,141

(1)

After elimination of the unrestricted subsidiaries and the physician groups.