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Condensed Consolidating financial statements (Tables)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Operations



For the three months ended September 30, 2019	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient services revenues	$	—		$	1,761,235		$	1,087,531		$	(67,597	)	$	2,781,169
Provision for uncollectible accounts	—			(2,728		)	(1,249		)	—			(3,977		)
Net patient service revenues	—			1,758,507			1,086,282			(67,597		)	2,777,192
Other revenues	204,183			140,956			83,860			(302,113		)	126,886
Total net revenues	204,183			1,899,463			1,170,142			(369,710		)	2,904,078
Operating expenses	11,046			1,823,752			1,060,654			(369,710		)	2,525,742
Operating income	193,137			75,711			109,488			—			378,336
Debt expense	(110,712		)	(43,535		)	(14,206		)	58,622			(109,831		)
Other income, net	51,150			2,994			9,758			(58,622		)	5,280
Income tax expense	33,364			28,320			3,570			—			65,254
Equity earnings in subsidiaries	43,059			123,186			—			(166,245		)	—
Net income from continuing operations	143,270			130,036			101,470			(166,245		)	208,531
Net loss from discontinued operations, net of tax	—			—			(6,843		)	—			(6,843		)
Net income	143,270			130,036			94,627			(166,245		)	201,688
Less: Net income attributable to noncontrolling interests	—			—			—			(58,418		)	(58,418		)
Net income attributable to DaVita Inc.	$	143,270		$	130,036		$	94,627		$	(224,663	)	$	143,270



For the three months ended September 30, 2018	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient service revenues	$	—		$	1,699,109		$	1,028,548		$	(56,956	)	$	2,670,701
Provision for uncollectible accounts	—			(9,246		)	(2,731		)	—			(11,977		)
Net patient service revenues	—			1,689,863			1,025,817			(56,956		)	2,658,724
Other revenues	207,968			127,269			136,448			(283,079		)	188,606
Total net revenues	207,968			1,817,132			1,162,265			(340,035		)	2,847,330
Operating expenses and charges	205,324			1,649,128			1,043,875			(340,035		)	2,558,292
Operating income	2,644			168,004			118,390			—			289,038
Debt expense	(127,353		)	(50,254		)	(10,570		)	62,250			(125,927		)
Other income, net	106,148			603			7,719			(110,463		)	4,007
Income tax (benefit) expense	(3,536		)	43,583			12,000			—			52,047
Equity earnings in subsidiaries	(121,771		)	60,448			—			61,323			—
Net (loss) income from continuing operations	(136,796		)	135,218			103,539			13,110			115,071
Net loss from discontinued operations, net of tax	—			—			(259,952		)	48,213			(211,739		)
Net (loss) income	(136,796		)	135,218			(156,413		)	61,323			(96,668		)
Less: Net income attributable to noncontrolling interests	—			—			—			(40,128		)	(40,128		)
Net (loss) income attributable to DaVita Inc.	$	(136,796	)	$	135,218		$	(156,413	)	$	21,195		$	(136,796	)



For the nine months ended September 30, 2019	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient services revenues	$	—		$	5,181,017		$	3,164,726		$	(195,357	)	$	8,150,386
Provision for uncollectible accounts	—			(13,530		)	(6,159		)	—			(19,689		)
Net patient service revenues	—			5,167,487			3,158,567			(195,357		)	8,130,697
Other revenues	600,318			438,058			130,345			(809,523		)	359,198
Total net revenues	600,318			5,605,545			3,288,912			(1,004,880		)	8,489,895
Operating expenses and charges	315,169			5,106,307			2,892,570			(1,004,880		)	7,309,166
Operating income	285,149			499,238			396,342			—			1,180,729
Debt expense	(389,203		)	(145,110		)	(39,807		)	188,944			(385,176		)
Other income, net	263,407			4,332			31,800			(281,676		)	17,863
Income tax expense	41,017			122,633			34,288			—			197,938
Equity earnings in subsidiaries	447,774			318,431			—			(766,205		)	—
Net income from continuing operations	566,110			554,258			354,047			(858,937		)	615,478
Net income from discontinued operations, net of tax	—			—			10,122			92,732			102,854
Net income	566,110			554,258			364,169			(766,205		)	718,332
Less: Net income attributable to noncontrolling interests	—			—			—			(152,222		)	(152,222		)
Net income attributable to DaVita Inc.	$	566,110		$	554,258		$	364,169		$	(918,427	)	$	566,110



For the nine months ended September 30, 2018	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient services revenues	$	—		$	5,100,487		$	3,039,056		$	(159,365	)	$	7,980,178
Provision for uncollectible accounts	—			(26,430		)	(9,408		)	—			(35,838		)
Net patient service revenues	—			5,074,057			3,029,648			(159,365		)	7,944,340
Other revenues	608,850			355,055			512,025			(836,543		)	639,387
Total net revenues	608,850			5,429,112			3,541,673			(995,908		)	8,583,727
Operating expenses and charges	484,329			4,949,070			3,008,320			(995,908		)	7,445,811
Operating income	124,521			480,042			533,353			—			1,137,916
Debt expense	(362,501		)	(151,373		)	(30,660		)	185,399			(359,135		)
Other income, net	315,573			2,864			20,981			(328,835		)	10,583
Income tax expense	24,108			112,193			70,351			—			206,652
Equity earnings in subsidiaries	255,681			328,042			—			(583,723		)	—
Net income from continuing operations	309,166			547,382			453,323			(727,159		)	582,712
Net loss from discontinued operations, net of tax	—			—			(291,265		)	143,436			(147,829		)
Net income	309,166			547,382			162,058			(583,723		)	434,883
Less: Net income attributable to noncontrolling interests	—			—			—			(125,717		)	(125,717		)
Net income attributable to DaVita Inc.	$	309,166		$	547,382		$	162,058		$	(709,440	)	$	309,166

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 three months ended September 30, 2019	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net income	$	143,270	$	130,036	$	94,627		$	(166,245	)	$	201,688
Other comprehensive income (loss)	509		—		(44,502		)	—			(43,993		)
Total comprehensive income	143,779		130,036		50,125			(166,245		)	157,695
Less: Comprehensive income attributable to noncontrolling interest	—		—		—			(58,418		)	(58,418		)
Comprehensive income attributable to DaVita Inc.	$	143,779	$	130,036	$	50,125		$	(224,663	)	$	99,277



For the three months ended September 30, 2018	DaVita Inc.			Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net (loss) income	$	(136,796	)	$	135,218	$	(156,413	)	$	61,323		$	(96,668	)
Other comprehensive income (loss)	1,643			—		(8,827		)	—			(7,184		)
Total comprehensive (loss) income	(135,153		)	135,218		(165,240		)	61,323			(103,852		)
Less: Comprehensive income attributable to noncontrolling interest	—			—		—			(40,128		)	(40,128		)
Comprehensive (loss) income attributable to DaVita Inc.	$	(135,153	)	$	135,218	$	(165,240	)	$	21,195		$	(143,980	)



For the nine months ended September 30, 2019	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net income	$	566,110	$	554,258	$	364,169		$	(766,205	)	$	718,332
Other comprehensive income (loss)	3,110		—		(45,790		)	—			(42,680		)
Total comprehensive income	569,220		554,258		318,379			(766,205		)	675,652
Less: Comprehensive income attributable to noncontrolling interest	—		—		—			(152,222		)	(152,222		)
Comprehensive income attributable to DaVita Inc.	$	569,220	$	554,258	$	318,379		$	(918,427	)	$	523,430



For the nine months ended September 30, 2018	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net income	$	309,166	$	547,382	$	162,058		$	(583,723	)	$	434,883
Other comprehensive income (loss)	5,499		—		(39,475		)	—			(33,976		)
Total comprehensive income	314,665		547,382		122,583			(583,723		)	400,907
Less: Comprehensive income attributable to noncontrolling interest	—		—		—			(125,717		)	(125,717		)
Comprehensive income attributable to DaVita Inc.	$	314,665	$	547,382	$	122,583		$	(709,440	)	$	275,190

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	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
Cash and cash equivalents	$	831,514	$	213,635	$	208,107	$	—		$	1,253,256
Restricted cash and equivalents	—		14,444		89,441		—			103,885
Accounts receivable, net	—		1,221,169		680,056		—			1,901,225
Other current assets	161,548		455,616		123,188		—			740,352
Total current assets	993,062		1,904,864		1,100,792		—			3,998,718
Property and equipment, net	515,952		1,576,140		1,327,146		—			3,419,238
Operating lease right-of-use assets	103,621		1,592,472		1,085,195		—			2,781,288
Intangible assets, net	85		34,493		83,088		—			117,666
Investments in and advances to affiliates, net	10,465,104		7,110,581		3,074,784		(20,650,469		)	—
Other long-term assets and investments	96,953		91,115		181,193		—			369,261
Goodwill	—		4,818,001		1,947,658		—			6,765,659
Total assets	$	12,174,777	$	17,127,666	$	8,799,856	$	(20,650,469	)	$	17,451,830
Current liabilities	$	313,934	$	1,233,054	$	659,652	$	—		$	2,206,640
Intercompany liabilities, net	922,571		3,074,785		2,572,810		(6,570,166		)	—
Long-term operating leases liabilities	131,743		1,508,343		1,042,039		—			2,682,125
Long-term debt and other long-term liabilities	7,746,653		664,470		343,360		—			8,754,483
Noncontrolling interests subject to put provisions	741,300		—		—		554,759			1,296,059
Total DaVita Inc. shareholders' equity	2,318,576		10,647,014		3,433,289		(14,080,303		)	2,318,576
Noncontrolling interests not subject to put provisions	—		—		748,706		(554,759		)	193,947
Total equity	2,318,576		10,647,014		4,181,995		(14,635,062		)	2,512,523
Total liabilities and equity	$	12,174,777	$	17,127,666	$	8,799,856	$	(20,650,469	)	$	17,451,830



As of December 31, 2018	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
Cash and cash equivalents	$	60,653	$	1,232	$	261,153	$	—		$	323,038
Restricted cash and equivalents	1,005		12,048		79,329		—			92,382
Accounts receivable, net	—		1,204,122		654,486		—			1,858,608
Other current assets	37,185		565,974		157,407		—			760,566
Current assets held for sale	—		—		5,389,565		—			5,389,565
Total current assets	98,843		1,783,376		6,541,940		—			8,424,159
Property and equipment, net	491,462		1,584,321		1,317,886		—			3,393,669
Intangible assets, net	153		42,896		75,797		—			118,846
Investments in and advances to affiliates, net	13,522,198		6,196,801		2,498,545		(22,217,544		)	—
Other long-term assets and investments	53,385		90,037		188,196		—			331,618
Goodwill	—		4,806,939		2,035,021		—			6,841,960
Total assets	$	14,166,041	$	14,504,370	$	12,657,385	$	(22,217,544	)	$	19,110,252
Current liabilities	$	1,945,943	$	1,217,526	$	483,933	$	—		$	3,647,402
Current liabilities held for sale	—		—		1,243,759		—			1,243,759
Intercompany liabilities, net	—		2,498,545		6,161,292		(8,659,837		)	—
Long-term debt and other long-term liabilities	7,918,581		687,443		580,028		—			9,186,052
Noncontrolling interests subject to put provisions	598,075		—		—		526,566			1,124,641
Total DaVita Inc. shareholders' equity	3,703,442		10,100,856		3,456,851		(13,557,707		)	3,703,442
Noncontrolling interests not subject to put provisions	—		—		731,522		(526,566		)	204,956
Total equity	3,703,442		10,100,856		4,188,373		(14,084,273		)	3,908,398
Total liabilities and equity	$	14,166,041	$	14,504,370	$	12,657,385	$	(22,217,544	)	$	19,110,252

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	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Cash flows provided by operating activities:
Net income	$	566,110		$	554,258		$	364,169		$	(766,205	)	$	718,332
Changes in operating assets and liabilities and non-cash items included in net income	(336,223		)	(74,600		)	318,111			766,205			673,493
Net cash provided by operating activities	229,887			479,658			682,280			—			1,391,825
Cash flows provided by (used in) investing activities:
Additions of property and equipment	(106,476		)	(218,839		)	(221,868		)	—			(547,183		)
Acquisitions	—			(11,832		)	(65,516		)	—			(77,348		)
Proceeds (purchases) from asset and business sales	3,824,516			(244		)	39,347			—			3,863,619
purchases from investment sales and other items, net	(94,322		)	(7,474		)	(3,267		)	—			(105,063		)
Net cash provided by (used in) investing activities	3,623,718			(238,389		)	(251,304		)	—			3,134,025
Cash flows used in financing activities:
Long-term debt and related financing costs, net	(2,028,954		)	(8,025		)	(13,033		)	—			(2,050,012		)
Intercompany borrowings (payments)	785,450			(14,854		)	(770,596		)	—			—
Other items	(1,840,245		)	(3,591		)	(109,916		)	—			(1,953,752		)
Net cash used in financing activities	(3,083,749		)	(26,470		)	(893,545		)	—			(4,003,764		)
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	769,856			214,799			(466,747		)	—			517,908
Less: Net decrease in cash, cash equivalents and restricted cash from discontinued operations	—			—			(423,813		)	—			(423,813		)
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations	769,856			214,799			(42,934		)	—			941,721
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	61,658			13,280			340,482			—			415,420
Cash, cash equivalents and restricted cash of continuing operations at end of the period	$	831,514		$	228,079		$	297,548		$	—		$	1,357,141



For the nine months ended September 30, 2018	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Cash flows provided by operating activities:
Net income	$	309,166		$	547,382		$	162,058		$	(583,723	)	$	434,883
Changes in operating assets and liabilities and non-cash items included in net income	(235,558		)	(104,179		)	703,379			583,723			947,365
Net cash provided by operating activities	73,608			443,203			865,437			—			1,382,248
Cash flows used in investing activities:
Additions of property and equipment	(124,585		)	(296,028		)	(285,046		)	—			(705,659		)
Acquisitions	—			(5,646		)	(107,880		)	—			(113,526		)
Proceeds from asset and business sales	—			55,035			80,233			—			135,268
Proceeds (purchases) from investment sales and other items, net	32,345			(2,295		)	(7,452		)	—			22,598
Net cash used in investing activities	(92,240		)	(248,934		)	(320,145		)	—			(661,319		)
Cash flows provided by (used in) financing activities:
Long-term debt and related financing costs, net	866,537			(8,601		)	(12,100		)	—			845,836
Intercompany borrowings (payments)	454,410			(174,148		)	(280,262		)	—			—
Other items	(1,154,921		)	(18,713		)	(95,541		)	—			(1,269,175		)
Net cash provided by (used in) financing activities	166,026			(201,462		)	(387,903		)	—			(423,339		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(5,790		)	—			(5,790		)
Net increase (decrease) in cash, cash equivalents and restricted cash	147,394			(7,193		)	151,599			—			291,800
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations	—			—			270,565			—			270,565
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations	147,394			(7,193		)	(118,966		)	—			21,235
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	150,307			19,963			348,650			—			518,920
Cash, cash equivalents and restricted cash of continuing operations at end of the period	$	297,701		$	12,770		$	229,684		$	—		$	540,155

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.