10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2020

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 1-14106

DAVITA INC.

Delaware	51-0354549
(State of incorporation)	(I.R.S. Employer Identification No.)

2000 16th Street
Denver,	CO	80202

Telephone number (720) 631-2100

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading symbol(s):	Name of each exchange on which registered:
Common Stock, $0.001 par value	DVA	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes  ☐    No  ☒

As of May 1, 2020, the number of shares of the Registrant’s common stock outstanding was approximately 121.8 million shares.

DAVITA INC.

INDEX

		Page No.
	PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements:
	Consolidated Statements of Income for the three months ended March 31, 2020 and March 31, 2019	1
	Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and March 31, 2019	2
	Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019	3
	Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and March 31, 2019	4
	Consolidated Statements of Equity for the three months ended March 31, 2020 and March 31, 2019	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	44
Item 4.	Controls and Procedures	44
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 6.	Exhibits	48
	Signature	49

Note: Items 3, 4 and 5 of Part II are omitted because they are not applicable.

i

DAVITA INC.

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(dollars in thousands, except per share data)

	Three months ended March 31,
	2020			2019
Dialysis patient service revenues	$	2,713,281		$	2,629,689
Other revenues	127,956			113,423
Total revenues	2,841,237			2,743,112
Operating expenses and charges:
Patient care costs	1,975,449			1,964,935
General and administrative	263,576			250,813
Depreciation and amortization	154,679			148,528
Equity investment income	(17,843		)	(2,708		)
Goodwill impairment charges	—			41,037
Total operating expenses and charges	2,375,861			2,402,605
Operating income	465,376			340,507
Debt expense	(88,603		)	(131,519		)
Debt refinancing charges	(2,948		)	—
Other (loss) income, net	(4,350		)	6,940
Income from continuing operations before income taxes	369,475			215,928
Income tax expense	91,560			56,746
Net income from continuing operations	277,915			159,182
Net income from discontinued operations, net of tax	9,980			30,305
Net income	287,895			189,487
Less: Net income attributable to noncontrolling interests	(48,302		)	(40,198		)
Net income attributable to DaVita Inc.	$	239,593		$	149,289
Earnings per share attributable to DaVita Inc.:
Basic net income from continuing operations per share	$	1.84		$	0.72
Basic net income per share	$	1.92		$	0.90
Diluted net income from continuing operations per share	$	1.81		$	0.72
Diluted net income per share	$	1.89		$	0.90
Weighted average shares for earnings per share:
Basic	124,901,671			166,387,958
Diluted	126,894,847			166,780,657
Amounts attributable to DaVita Inc.:
Net income from continuing operations	$	229,613		$	120,254
Net income from discontinued operations	9,980			29,035
Net income attributable to DaVita Inc.	$	239,593		$	149,289

 

See notes to condensed consolidated financial statements.

1

DAVITA INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(dollars in thousands)

	Three months ended March 31,
	2020			2019
Net income	$	287,895		$	189,487
Other comprehensive income, net of tax:
Unrealized losses on interest rate cap agreements:
Unrealized losses	(13,018		)	(580		)
Reclassifications of net realized losses into net income	1,623			1,606
Unrealized losses on foreign currency translation:
Foreign currency translation adjustments	(81,632		)	(13,653		)
Other comprehensive loss	(93,027		)	(12,627		)
Total comprehensive income	194,868			176,860
Less: Comprehensive income attributable to noncontrolling interests	(48,302		)	(40,198		)
Comprehensive income attributable to DaVita Inc.	$	146,566		$	136,662

 See notes to condensed consolidated financial statements.

2

DAVITA INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(dollars in thousands, except per share data)

	March 31, 2020			December 31, 2019
ASSETS
Cash and cash equivalents	$	1,381,764		$	1,102,372
Restricted cash and equivalents	106,724			106,346
Short-term investments	9,376			11,572
Accounts receivable	1,820,132			1,795,598
Inventories	95,685			97,949
Other receivables	519,081			489,695
Prepaid and other current assets	59,853			66,866
Income tax receivable	31,324			19,772
Total current assets	4,023,939			3,690,170
Property and equipment, net of accumulated depreciation of $4,092,166 and $3,969,566, respectively	3,445,423			3,473,384
Operating lease right-of-use assets	2,847,776			2,830,047
Intangible assets, net of accumulated amortization of $84,643 and $81,922, respectively	117,953			135,684
Equity method and other investments	254,499			241,983
Long-term investments	34,657			36,519
Other long-term assets	94,030			115,972
Goodwill	6,778,023			6,787,635
	$	17,596,300		$	17,311,394
LIABILITIES AND EQUITY
Accounts payable	$	340,092		$	403,840
Other liabilities	757,784			756,174
Accrued compensation and benefits	596,999			695,052
Current portion of operating lease liabilities	356,033			343,912
Current portion of long-term debt	146,318			130,708
Income tax payable	23,520			42,412
Total current liabilities	2,220,746			2,372,098
Long-term operating lease liabilities	2,734,370			2,723,800
Long-term debt	8,442,136			7,977,526
Other long-term liabilities	161,940			160,809
Deferred income taxes	675,728			577,543
Total liabilities	14,234,920			13,811,776
Commitments and contingencies
Noncontrolling interests subject to put provisions	1,228,036			1,180,376
Equity:
Preferred stock ($0.001 par value, 5,000,000 shares authorized; none issued)	—			—
Common stock ($0.001 par value, 450,000,000 shares authorized; 125,857,178 and 121,804,880 shares issued and outstanding at March 31, 2020, respectively and 125,842,853 shares issued and outstanding at December 31, 2019)	126			126
Additional paid-in capital	720,053			749,043
Retained earnings	1,671,331			1,431,738
Treasury stock (4,052,298 and zero shares, respectively)	(303,139		)	—
Accumulated other comprehensive loss	(140,525		)	(47,498		)
Total DaVita Inc. shareholders' equity	1,947,846			2,133,409
Noncontrolling interests not subject to put provisions	185,498			185,833
Total equity	2,133,344			2,319,242
	$	17,596,300		$	17,311,394

See notes to condensed consolidated financial statements.

3

DAVITA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

	Three months ended March 31,
	2020			2019
Cash flows from operating activities:
Net income	$	287,895		$	189,487
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	154,679			148,528
Impairment charges	—			41,037
Debt refinancing charges	884			—
Stock-based compensation expense	19,870			12,110
Deferred income taxes	103,301			41,372
Equity investment loss, net	(9,482		)	(337		)
Other non-cash charges, net	5,055			1,720
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Accounts receivable	(32,966		)	(132,292		)
Inventories	1,835			3,324
Other receivables and other current assets	(24,965		)	1,199
Other long-term assets	2,673			(1,997		)
Accounts payable	(24,045		)	(38,537		)
Accrued compensation and benefits	(96,428		)	(173,583		)
Other current liabilities	3,982			17,236
Income taxes	(32,616		)	32,502
Other long-term liabilities	709			(465		)
Net cash provided by operating activities	360,381			141,304
Cash flows from investing activities:
Additions of property and equipment	(154,942		)	(198,878		)
Acquisitions	(34,107		)	(11,274		)
Proceeds from asset and business sales	31,518			13,903
Purchase of debt investments held-to-maturity	(5,049		)	(209		)
Purchase of other debt and equity investments	(2,633		)	(3,290		)
Proceeds from debt investments held-to-maturity	5,049			—
Proceeds from sale of other debt and equity investments	3,268			3,302
Purchase of equity method investments	(6,174		)	(4,067		)
Distributions from equity method investments	445			155
Net cash used in investing activities	(162,625		)	(200,358		)
Cash flows from financing activities:
Borrowings	570,779			17,133,464
Payments on long-term debt and other financing costs	(104,942		)	(16,776,267		)
Purchase of treasury stock	(321,798		)	—
Distributions to noncontrolling interests	(58,131		)	(44,230		)
Stock award exercises and other share issuances, net	2,397			1,517
Contributions from noncontrolling interests	9,387			18,947
Purchases of noncontrolling interests	(700		)	(8,480		)
Net cash provided by financing activities	96,992			324,951
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(14,978		)	(921		)
Net increase in cash, cash equivalents and restricted cash	279,770			264,976
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations	—			118,962
Net increase in cash, cash equivalents and restricted cash from continuing operations	279,770			146,014
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	1,208,718			415,420
Cash, cash equivalents and restricted cash of continuing operations at end of the year	$	1,488,488		$	561,434

See notes to condensed consolidated financial statements.

4

DAVITA INC.

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited)

(dollars and shares in thousands)

	Three months ended March 31, 2020
	Non- controlling interests subject to put provisions			DaVita Inc. Shareholders’ Equity																			Non- controlling interests not subject to put provisions
				Common stock			Additional paid-in capital			Retained earnings		Treasury stock					Accumulated other comprehensive loss
				Shares	Amount							Shares		Amount						Total
Balance at December 31, 2019	$	1,180,376		125,843	$	126	$	749,043		$	1,431,738	—		$	—		$	(47,498	)	$	2,133,409		$	185,833
Comprehensive income:
Net income	32,176									239,593										239,593			16,126
Other comprehensive loss																	(93,027		)	(93,027		)
Stock purchase shares issued																				—
Stock unit shares issued				8			(75		)											(75		)
Stock-settled SAR shares issued				6			(245		)											(245		)
Stock-settled stock-based compensation expense							19,797													19,797
Changes in noncontrolling interest from:
Distributions	(37,566		)																				(20,565		)
Contributions	5,283																						4,104
Partial purchases	(255		)				(445		)											(445		)
Fair value remeasurements	48,022						(48,022		)											(48,022		)
Purchase of treasury stock												(4,052	)	(303,139		)				(303,139		)
Balance at March 31, 2020	$	1,228,036		125,857	$	126	$	720,053		$	1,671,331	(4,052	)	$	(303,139	)	$	(140,525	)	$	1,947,846		$	185,498

	Three months ended March 31, 2019
	Non- controlling interests subject to put provisions			DaVita Inc. Shareholders’ Equity																	Non- controlling interests not subject to put provisions
				Common stock			Additional paid-in capital			Retained earnings		Treasury stock			Accumulated other comprehensive loss
				Shares	Amount							Shares	Amount					Total
Balance at December 31, 2018	$	1,124,641		166,387	$	166	$	995,006		$	2,743,194	—	$	—	$	(34,924	)	$	3,703,442		$	204,956
Cumulative effect of change in accounting principle	(38		)							39,876								39,876			(6		)
Comprehensive income:
Net income	25,389									149,289								149,289			14,809
Other comprehensive loss															(12,627		)	(12,627		)
Stock unit shares issued				9			(104		)									(104		)
Stock-settled SAR shares issued				—														—
Stock-settled stock-based compensation expense							12,091											12,091
Changes in noncontrolling interest from:
Distributions	(27,565		)																		(16,665		)
Contributions	6,415																				12,532
Acquisitions and divestitures	1,762						—											—			—
Partial purchases	(1,967		)				(2,206		)									(2,206		)	(4,307		)
Fair value remeasurements	14,407						(14,407		)									(14,407		)
Balance at March 31, 2019	$	1,143,044		166,396	$	166	$	990,380		$	2,932,359	—	$	—	$	(47,551	)	$	3,875,354		$	211,319

See notes to condensed consolidated financial statements

5

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

(dollars and shares in thousands, except per share data)

Unless otherwise indicated in this Quarterly Report on Form 10-Q "the Company", "we", "us", "our" and similar terms refer to DaVita Inc. and its consolidated subsidiaries.

1. Condensed consolidated interim financial statements

The unaudited condensed consolidated interim financial statements included in this report are prepared by the Company. In the opinion of management, all adjustments necessary for a fair presentation of the results of operations are reflected in these condensed consolidated interim financial statements. All significant intercompany accounts and transactions have been eliminated. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The most significant estimates and assumptions underlying these financial statements and accompanying notes generally involve revenue recognition and accounts receivable, impairments of goodwill, accounting for income taxes, certain fair value estimates and loss contingencies. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results for the full year. These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (10-K). Prior year balances and amounts have been reclassified to conform to the current year presentation. The Company has evaluated subsequent events through the date these condensed consolidated interim financial statements were issued and has included all necessary adjustments and disclosures. 

2. Revenue recognition

The following table summarizes the Company's segment revenues by primary payor source:

	For the three months ended
	March 31, 2020									March 31, 2019
	U.S. dialysis			Other - Ancillary services			Consolidated			U.S. dialysis			Other - Ancillary services			Consolidated
Dialysis patient service revenues:
Medicare and Medicare Advantage	$	1,502,222		$			$	1,502,222		$	1,493,516		$			$	1,493,516
Medicaid and Managed Medicaid	171,467						171,467			154,190						154,190
Other government	111,910			94,574			206,484			106,127			84,475			190,602
Commercial	825,582			39,467			865,049			788,413			33,388			821,801
Other revenues:
Medicare and Medicare Advantage				98,478			98,478						61,700			61,700
Medicaid and Managed Medicaid				366			366						6			6
Commercial				10,521			10,521						32,619			32,619
Other(1)	5,442			17,602			23,044			4,905			17,750			22,655
Eliminations of intersegment revenues	(32,242		)	(4,152		)	(36,394		)	(30,641		)	(3,336		)	(33,977		)
Total	$	2,584,381		$	256,856		$	2,841,237		$	2,516,510		$	226,602		$	2,743,112

(1) Other consists of management service fees earned in the respective Company line of business as well as other revenue from the Company's ancillary services.

The Company’s allowance for doubtful accounts related to performance obligations satisfied in years prior to January 1, 2018 was $4,422 and $8,328 as of March 31, 2020 and December 31, 2019, respectively.

There are significant uncertainties associated with estimating revenue, which generally take several years to resolve. These estimates are subject to ongoing insurance coverage changes, geographic coverage differences, differing interpretations of contract coverage and other payor issues, as well as patient issues including, without limitation, determination of applicable primary and secondary coverage, changes in patient insurance coverage and coordination of benefits. As these estimates are refined over time, both positive and negative adjustments to revenue are recognized in the current period.

6

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

Dialysis patient service revenues. Revenues are recognized based on the Company’s estimate of the transaction price the Company expects to collect as a result of satisfying its performance obligations. Dialysis patient service revenues are recognized in the period services are provided based on these estimates. Revenues consist primarily of payments from government and commercial health plans for dialysis services provided to patients. A usual and customary fee schedule is maintained for the Company’s dialysis treatments and related lab services; however, actual collectible revenue is normally recognized at a discount from the fee schedule.

Other revenues. Other revenues consist of fees for management and administrative support services provided to outpatient dialysis centers that the Company does not own or in which the Company owns a noncontrolling interest, revenues associated with the Company's non-dialysis ancillary services, and administrative and management support services to certain non-dialysis joint ventures in which the Company owns a noncontrolling interest.

3. Earnings per share

Basic earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of common shares outstanding. Weighted average common shares outstanding include restricted stock unit awards that are no longer subject to forfeiture because the recipients have satisfied either the explicit vesting terms or retirement eligibility requirements.

Diluted earnings per share includes the dilutive effect of outstanding stock-settled stock appreciation rights and unvested stock units as computed under the treasury stock method.

The reconciliations of the numerators and denominators used to calculate basic and diluted earnings per share were as follows:

	Three months ended March 31,
	2020		2019
Net income from continuing operations attributable to DaVita Inc.	$	229,613	$	120,254
Net income from discontinued operations attributable to DaVita Inc.	9,980		29,035
Net income attributable to DaVita Inc.	$	239,593	$	149,289
Weighted average shares - basic	124,902		166,388
Assumed incremental shares from stock plans	1,993		393
Weighted average shares - diluted	126,895		166,781
Basic net income attributable to DaVita Inc. from:
Continuing operations per share	$	1.84	$	0.72
Discontinued operations per share	0.08		0.18
Basic net income per share attributable to DaVita Inc.	$	1.92	$	0.90
Diluted net income attributable to DaVita Inc. from:
Continuing operations per share	$	1.81	$	0.72
Discontinued operations per share	0.08		0.18
Diluted net income per share attributable to DaVita Inc.	$	1.89	$	0.90
Anti-dilutive stock-settled awards excluded from calculations(1)	3,207		6,150

(1) Shares associated with stock-settled stock appreciation rights and performance stock units were excluded from the diluted denominator calculations because they are anti-dilutive under the treasury stock method.

7

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

4. Short-term and long-term investments

The Company’s short-term and long-term debt and equity investments consist of the following:

	March 31, 2020						December 31, 2019
	Debt securities		Equity securities		Total		Debt securities		Equity securities		Total
Certificates of deposit and other time deposits	$	8,190	$	—	$	8,190	$	8,140	$	—	$	8,140
Investments in mutual funds and common stock	—		35,843		35,843		—		39,951		39,951
	$	8,190	$	35,843	$	44,033	$	8,140	$	39,951	$	48,091
Short-term investments	$	8,190	$	1,186	$	9,376	$	8,140	$	3,432	$	11,572
Long-term investments	—		34,657		34,657		—		36,519		36,519
	$	8,190	$	35,843	$	44,033	$	8,140	$	39,951	$	48,091

Debt securities: The Company's short-term debt investments are principally bank certificates of deposit with contractual maturities longer than three months but shorter than one year. These debt securities are accounted for as held to maturity and recorded at amortized cost, which approximated their fair values at March 31, 2020 and December 31, 2019.

Equity securities: The Company's equity investments in mutual funds and common stock are held within a trust to fund existing obligations associated with several of the Company’s non-qualified deferred compensation plans. During the three months ended March 31, 2020, the Company recognized pre-tax net losses of $3,407 in other (loss) income associated with changes in the fair value of these equity securities, comprised of pre-tax realized gains of $293 and a net increase in unrealized losses of $3,700. During the three months ended March 31, 2019, the Company recognized pre-tax net gains of $1,893 in other (loss) income associated with changes in the fair value of these equity securities, comprised of pre-tax realized gains of $170 and a net increase in unrealized gains of $1,723.

5. Equity method and other investments

The Company maintains equity method and minor adjusted cost method investments in the private securities of certain other healthcare and healthcare-related businesses. The Company classifies these investments as "Equity method and other investments" on its consolidated balance sheet.

The Company's equity method and other investments were comprised of the following:

	March 31, 2020		December 31, 2019
APAC joint venture	$	123,696	$	116,924
Other equity method partnerships	114,355		114,611
Adjusted cost method investments	16,448		10,448
	$	254,499	$	241,983

During the three months ended March 31, 2020 and 2019, the Company recognized equity investment income of $17,843 and $2,708, respectively, from equity method investments in nonconsolidated businesses. 

Equity investments in nonconsolidated businesses over which the Company maintains significant influence, but which do not have readily determinable fair values, are carried on the equity method. The Company's largest equity method investment is its ownership interest in DaVita Care Pte. Ltd. (the APAC joint venture, or APAC JV), which is 75%-owned by the Company and 25%-owned by its other noncontrolling investor. As described in Note 9 to the Company's consolidated financial statements included in the 10-K, the Company does not consolidate the APAC JV.

The Company's other equity method investments include legal entities over which the Company has significant influence but in which it does not maintain a controlling financial interest. Almost all of these are U.S. partnerships in the form of limited liability companies. The Company's ownership interests in these partnerships vary, but typically range from 30% to 50%. During the three months ended March 31, 2020 and 2019, there were no meaningful impairments or other valuation adjustments recognized on these investments.

8

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

6. Goodwill

Changes in goodwill by reportable segments were as follows:

	U.S. dialysis			Other - Ancillary services			Consolidated
Balance at December 31, 2018	$	6,275,004		$	566,956		$	6,841,960
Acquisitions	18,089			72,137			90,226
Impairment charges	—			(124,892		)	(124,892		)
Foreign currency and other adjustments	(5,993		)	(13,666		)	(19,659		)
Balance at December 31, 2019	$	6,287,100		$	500,535		$	6,787,635
Acquisitions	2,839			23,931			26,770
Divestitures	(1,549		)	—			(1,549		)
Foreign currency and other adjustments	—			(34,833		)	(34,833		)
Balance at March 31, 2020	$	6,288,390		$	489,633		$	6,778,023
Goodwill	$	6,288,390		$	638,117		$	6,926,507
Accumulated impairment charges	—			(148,484		)	(148,484		)
	$	6,288,390		$	489,633		$	6,778,023

During the three months ended March 31, 2020, the Company did not recognize any goodwill impairment charges.

During the three months ended March 31, 2019, the Company recognized a $41,037 goodwill impairment charge in its Germany kidney care business. This charge resulted primarily from a change in relevant discount rates, as well as a decline in current and expected future patient census and an increase in the first quarter of 2019 and expected future costs, principally due to wage increases expected to result from recently announced legislation.

Developments, events, changes in operating performance and other changes in circumstances since the dates of the Company’s last annual goodwill impairment assessments have not caused management to believe it is more likely than not that the fair values of any of the Company's reporting units would be less than their respective carrying amounts as of March 31, 2020. Except as described in Note 10 to the 10-K, none of the Company's various other reporting units were considered at risk of significant goodwill impairment as of March 31, 2020. 

As dialysis treatments are an essential, life-sustaining service for patients who depend on them, the Company's operations have continued and are currently expected to continue during the novel coronavirus (COVID-19) pandemic. However, the ultimate impact of the dynamic and rapidly evolving COVID-19 pandemic on the Company will depend on future developments that are highly uncertain and difficult to predict, including among other things the severity and duration of the pandemic, the impact on our patient population, the pandemic’s impact on the U.S. and global economies and unemployment, and the timing, scope and effectiveness of governmental responses. While the Company does not currently expect a material adverse impact to its business as a result of this public health crisis, there can be no assurance that the COVID-19 pandemic will not have a material adverse impact on one or more of the Company's businesses.

7. Income taxes

As of March 31, 2020, the Company’s total liability for unrecognized tax benefits relating to tax positions that do not meet the more-likely-than-not threshold was $68,602, of which $64,356 would impact the Company's effective tax rate if recognized. The total balance increased $388 from the December 31, 2019 balance of $68,214.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. At March 31, 2020 and December 31, 2019, the Company had approximately $15,249 and $14,428, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefits. 

9

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

8. Long-term debt

Long-term debt was comprised of the following: 

								As of March 31, 2020
	March 31, 2020			December 31, 2019			Maturity date	Interest rate		Estimated fair value(1)
Senior Secured Credit Facilities:
Term Loan A	$	1,728,125		$	1,739,063		8/12/2024	LIBOR + 1.50%		$	1,659,000
Term Loan B-1(2)	2,736,267			—			8/12/2026	LIBOR + 1.75%		$	2,640,498
Term Loan B(2)	—			2,743,125			8/12/2026	LIBOR + 2.25%		$	—
Revolving line of credit	500,000			—			8/12/2024	LIBOR + 1.50%		$	500,000
Senior Notes:
5 1/8% Senior Notes	1,750,000			1,750,000			7/15/2024	5.125	%	$	1,743,525
5% Senior Notes	1,500,000			1,500,000			5/1/2025	5.00	%	$	1,497,900
Acquisition obligations and other notes payable(3)	167,727			180,352			2020-2027	4.71	%	$	167,727
Financing lease obligations(4)	275,092			268,534			2020-2036	5.31	%
Total debt principal outstanding	8,657,211			8,181,074
Discount and deferred financing costs(5)	(68,757		)	(72,840		)
	8,588,454			8,108,234
Less current portion	(146,318		)	(130,708		)
	$	8,442,136		$	7,977,526

(1) Fair value estimates are based upon bid and ask quotes for the Company's senior secured credit facilities and senior notes, typically a level 2 input. The carrying values of acquisition obligations and other notes payable presented here approximate their estimated fair values, based on estimates of their current present values using level 2 interest rate inputs.

(2) On February 13, 2020, the Company entered into an amendment to its credit agreement governing its senior secured credit facilities to refinance the Term Loan B with a $2,743,125 secured Term Loan B-1.

(3) The interest rate presented for acquisition obligations and other notes payable is their weighted average interest rate based on the current interest rate in effect and assuming no changes to the LIBOR based interest rates.

(4) Financing lease obligations are measured at their approximate present value at inception. The interest rate presented is the weighted average discount rate embedded in financing leases outstanding.

(5) As of March 31, 2020, the carrying amount of the Company’s senior secured credit facilities and senior notes include a discount of $6,207 and deferred financing costs of $42,420; and deferred financing costs of $20,130, respectively. As of December 31, 2019, the carrying amount of the Company’s senior secured credit facilities and senior notes include a discount of $6,457 and deferred financing costs of $45,444; and deferred financing costs of $20,939, respectively.

Scheduled maturities of long-term debt at March 31, 2020 were as follows:

2020 (remainder of the year)	$	95,359
2021	$	170,056
2022	$	172,376
2023	$	224,727
2024	$	3,671,586
2025	$	61,951
Thereafter	$	4,261,156

On February 13, 2020, the Company entered into an amendment to refinance its senior secured Term Loan B (Repricing Amendment) with a secured Term Loan B-1 that bears interest at a rate equal to LIBOR plus an applicable margin of 1.75% and matures on August 12, 2026. The Repricing Amendment did not change the interest rate on the Term Loan A or the revolving line of credit. No additional debt was incurred, nor any additional proceeds received, by the Company in connection with the Repricing Amendment. As a result of this transaction, the Company recognized debt refinancing charges of $2,948 in the three months ended March 31, 2020. The majority of the Company's Term Loan B debt was considered a modification, therefore

10

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

these charges primarily represent fees incurred on this transaction, as well as the write off and capitalization of deferred financing costs associated with the portion of debt considered extinguished. For the portion of the Term Loan B debt that was considered extinguished and reborrowed in this refinancing, the Company recognized $68,842 in constructive financing cash outflows and financing cash inflows on the statement of cash flows, even though no funds were actually paid or received. Another $55,895 of the debt considered extinguished in this refinancing represented a non-cash financing activity.

During the first three months of 2020, the Company made regularly scheduled mandatory principal payments under its senior secured credit facilities totaling $10,938 on Term Loan A and $6,858 on Term Loan B-1.

As of March 31, 2020, the Company maintains several interest rate cap agreements that have the economic effect of capping the Company's maximum exposure to LIBOR variable interest rate changes on specific portions of the Company's floating rate debt, including all of the Term Loan B-1 and a portion of the Term Loan A. The remaining $1,464,392 outstanding principal balance of the Term Loan A and the revolving line of credit are subject to LIBOR-based interest rate volatility. The cap agreements are designated as cash flow hedges and, as a result, changes in the fair values of these cap agreements are reported in other comprehensive income. The amortization of the original cap premium is recognized as a component of debt expense on a straight-line basis over the terms of the cap agreements. These cap agreements do not contain credit-risk contingent features.

In August 2019, the Company entered into several forward interest rate cap agreements with a notional amount of $3,500,000 that have the economic effect of capping the Company's maximum exposure to LIBOR variable interest rate changes on specific portions of the Company's floating rate debt (2019 cap agreements). These 2019 cap agreements are designated as cash flow hedges and, as a result, changes in their fair values are reported in other comprehensive income. These 2019 cap agreements do not contain credit-risk contingent features, and become effective on June 30, 2020.

The following table summarizes the Company’s interest rate cap agreements outstanding as of March 31, 2020 and December 31, 2019, which are classified in "Other long-term assets" on its consolidated balance sheet: 

						Three months ended March 31, 2020				Fair value
	Notional amount		LIBOR maximum rate	Effective date	Expiration date	Debt expense		Recorded OCI loss		March 31, 2020		December 31, 2019
2015 cap agreements	$	3,500,000	3.50%	6/29/2018	6/30/2020	$	2,163	$	—	$	—	$	—
2019 cap agreements	$	3,500,000	2.00%	6/30/2020	6/30/2024			$	17,346	$	7,106	$	24,452

 The following table summarizes the effects of the Company’s interest rate cap agreements for the three months ended March 31, 2020 and 2019:

	Amount of unrecognized losses in OCI on interest rate cap agreements						Income statement location	Reclassification from accumulated other comprehensive loss into net income
	Three months ended March 31,							Three months ended March 31,
Derivatives designated as cash flow hedges	2020			2019				2020			2019
Interest rate cap agreements	$	(17,346	)	$	(781	)	Debt expense	$	2,163		$	2,163
Related income tax	4,328			201			Related income tax	(540		)	(557		)
Total	$	(13,018	)	$	(580	)		$	1,623		$	1,606

See Note 14 to these condensed consolidated financial statements for further details on amounts recorded and reclassified from accumulated other comprehensive loss.

The Company’s weighted average effective interest rate on the senior secured credit facilities at the end of the first quarter of 2020 was 2.78%, based on the current margins in effect for the Term Loan A, Term Loan B-1 and revolving line of credit as of March 31, 2020, as described above.

The Company’s overall weighted average effective interest rate for the three months ended March 31, 2020 was 4.35%, and as of March 31, 2020 was 3.75%.

11

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

As of March 31, 2020, the Company’s interest rates are fixed on approximately 41.83% of its total debt.

As of March 31, 2020, the Company had $500,000 drawn on its $1,000,000 revolving line of credit under its senior secured credit facilities. The Company also has approximately $57,705 of outstanding letters of credit under a separate bilateral secured letter of credit facility.

9. Leases

The majority of the Company’s facilities are leased under non-cancellable operating leases ranging in terms from five years to fifteen years and which contain renewal options of five years to ten years at the fair rental value at the time of renewal.

As of March 31, 2020 and December 31, 2019, assets recorded under finance leases were $257,750 and $247,246, respectively, and accumulated amortization associated with finance leases was $33,318 and $27,193, respectively, included in property and equipment, net, on the Company's consolidated balance sheet.

The components of lease expense were as follows:

Lease cost	Three months ended March 31, 2020		Three months ended March 31, 2019
Operating lease cost(1):
Fixed lease expense	$	134,733	$	128,110
Variable lease expense	30,059		28,571
Financing lease cost:
Amortization of leased assets	6,077		5,826
Interest on lease liabilities	3,603		3,775
Net lease cost	$	174,472	$	166,282

(1) Includes short-term lease expense and sublease income, which are immaterial.

Other information related to leases was as follows:

Other information	Three months ended March 31, 2020		Three months ended March 31, 2019
Gains on sale leasebacks, net	$	9,489	$	3,987
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	162,828	$	153,587
Operating cash flows from finance leases	$	5,178	$	5,661
Financing cash flows from finance leases	$	4,180	$	5,344
Net operating lease assets obtained in exchange for new or modified operating lease liabilities	$	101,473	$	45,034

Lease term and discount rate	March 31, 2020
Weighted average remaining lease term (years):
Operating leases	8.9
Finance leases	10.2
Weighted average discount rate:
Operating leases	4.0	%
Finance leases	5.3	%

12

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

Future minimum lease payments under non-cancellable leases as of March 31, 2020 were as follows:

	Operating leases			Finance leases
2020 (remainder of the year)	$	344,537		$	30,291
2021	505,417			34,177
2022	472,643			34,621
2023	426,485			34,700
2024	372,190			34,725
2025	320,079			34,549
Thereafter	1,248,317			153,800
Total future minimum lease payments	$	3,689,668		$	356,863
Less portion representing interest	(599,265		)	(81,771		)
Present value of lease liabilities	$	3,090,403		$	275,092

10. Contingencies

The majority of the Company’s revenues are from government programs and may be subject to adjustment as a result of: (i) examination by government agencies or contractors, for which the resolution of any matters raised may take extended periods of time to finalize; (ii) differing interpretations of government regulations by different Medicare contractors or regulatory authorities; (iii) differing opinions regarding a patient’s medical diagnosis or the medical necessity of services provided; and (iv) retroactive applications or interpretations of governmental requirements. In addition, the Company’s revenues from commercial payors may be subject to adjustment as a result of potential claims for refunds, as a result of government actions or as a result of other claims by commercial payors.

The Company operates in a highly regulated industry and is a party to various lawsuits, demands, claims, qui tam suits, governmental investigations and audits (including, without limitation, investigations or other actions resulting from its obligation to self-report suspected violations of law) and other legal proceedings. The Company records accruals for certain legal proceedings and regulatory matters to the extent that the Company determines an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. As of March 31, 2020 and December 31, 2019, the Company’s total recorded accruals with respect to legal proceedings and regulatory matters, net of anticipated third party recoveries, were immaterial. While these accruals reflect the Company’s best estimate of the probable loss for those matters as of the dates of those accruals, the recorded amounts may differ materially from the actual amount of the losses for those matters, and any anticipated third party recoveries for any such losses may not ultimately be recoverable. Additionally, in some cases, no estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because of the inherently unpredictable nature of legal proceedings and regulatory matters, which also may be impacted by various factors, including, without limitation, that they may involve indeterminate claims for monetary damages or may involve fines, penalties or non-monetary remedies; present novel legal theories or legal uncertainties; involve disputed facts; represent a shift in regulatory policy; are in the early stages of the proceedings; or may result in a change of business practices. Further, there may be various levels of judicial review available to the Company in connection with any such proceeding.

The following is a description of certain lawsuits, claims, governmental investigations and audits and other legal proceedings to which the Company is subject.

Governmental Inquiries and Certain Related Proceedings

2016 U.S. Attorney Texas Investigation: In February 2016, DaVita Rx, LLC (DaVita Rx), a wholly-owned subsidiary of the Company, received a Civil Investigative Demand (CID) from the U.S. Attorney’s Office, Northern District of Texas. The government is conducting a federal False Claims Act (FCA) investigation concerning allegations that DaVita Rx presented or caused to be presented false claims for payment to the government for prescription medications, as well as an investigation into the Company’s relationships with pharmaceutical manufacturers. The CID covers the period from January 1, 2006 through the present. In connection with the Company’s ongoing efforts working with the government, the Company learned that a qui tam complaint had been filed covering some of the issues in the CID and practices that had been identified by the Company in a self-disclosure filed with the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services (HHS)

13

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

in February 2016. In December 2017, the Company finalized and executed a settlement agreement with the government and relators in the qui tam matter that included total monetary consideration of $63,700, as previously disclosed, of which $41,500 was an incremental cash payment and $22,200 was for amounts previously refunded, and all of which was previously accrued. The government’s investigation into certain of the Company's relationships with pharmaceutical manufacturers is ongoing, and in July 2018 the OIG served the Company with a subpoena seeking additional documents and information relating to those relationships. The Company is continuing to cooperate with the government in this investigation.

2017 U.S. Attorney Massachusetts Investigation: In January 2017, the Company was served with an administrative subpoena for records by the U.S. Attorney’s Office, District of Massachusetts, relating to an investigation into possible federal health care offenses. The subpoena covered the period from January 1, 2007 to the present, and sought documents relevant to charitable patient assistance organizations, particularly the American Kidney Fund (AKF), including documents related to efforts to provide patients with information concerning the availability of charitable assistance. The Department of Justice notified the court on July 23, 2019 of its decision to elect not to intervene in the matter of U.S. ex rel. David Gonzalez v. DaVita Healthcare Partners, et al. The complaint then was unsealed in the U.S. District Court, District of Massachusetts by order entered on August 1, 2019. The Department of Justice has confirmed that the complaint, which alleges violations of the FCA and various state false claims acts, was the basis of its investigation initiated in January 2017. The Company has not been served with the complaint.

2017 U.S. Attorney Colorado Investigation: In November 2017, the U.S. Attorney’s Office, District of Colorado informed the Company of an investigation it was conducting into possible federal healthcare offenses involving DaVita Kidney Care, as well as several of the Company’s wholly-owned subsidiaries. In addition to DaVita Kidney Care, the matter currently includes an investigation into DaVita Rx, DaVita Laboratory Services, Inc. (DaVita Labs), and RMS Lifeline Inc. (Lifeline). In each of August 2018 and May 2019, the Company received a CID pursuant to the FCA from the U.S. Attorney's Office relating to this investigation. The Company is continuing to cooperate with the government in this investigation.

2018 U.S. Attorney Florida Investigation: In March 2018, DaVita Labs received two CIDs from the U.S. Attorney’s Office, Middle District of Florida that were identical in nature but directed to the two different labs. According to the face of the CIDs, the U.S. Attorney’s Office is conducting an investigation as to whether the Company’s subsidiary submitted claims for blood, urine, and fecal testing, where there were insufficient test validation or stability studies to ensure accurate results, in violation of the FCA. In October 2018, DaVita Labs received a subpoena from the OIG in connection with this matter requesting certain patient records linked to clinical laboratory tests. On September 30, 2019, the U.S. Attorney’s Office notified the U.S. District Court, Middle District of Florida, of its decision not to elect to intervene at this time in the matter of U.S. ex rel. Lorne Holland, et al. v. DaVita Healthcare Partners, Inc., et al. The court then unsealed the complaint, which alleges violations of the FCA, by order dated the same day. In January 2020, the private party relators served the Company and DaVita Labs with an amended complaint. On February 24, 2020, the Company and DaVita Labs filed a motion to dismiss the amended complaint. The Company and DaVita Labs dispute these allegations and intend to defend this action accordingly.

2020 U.S. Attorney New Jersey Investigation: In March 2020, the U.S. Attorney’s Office, District of New Jersey served the Company with a subpoena and a CID relating to an investigation being conducted by that office and the U.S. Attorney’s Office, Eastern District of Pennsylvania. The subpoena and CID request information on several topics, including certain of the Company’s joint venture arrangements with physicians and physician groups, medical director agreements, and compliance with the Corporate Integrity Agreement. The Company is cooperating with the government in this investigation.

2020 California Department of Insurance Investigation: In April 2020, the California Department of Insurance sent the Company a Investigative Subpoena relating to an investigation being conducted by that office. The subpoena requests information on a number of topics, including but not limited to the Company’s communications with patients about insurance plans and financial assistance from the American Kidney Fund (AKF), analyses of the potential impact of patients’ decisions to change insurance providers, and documents relating to donations or contributions to the AKF. The Company is cooperating with the California Department of Insurance in this investigation.

* * *

Although the Company cannot predict whether or when proceedings might be initiated or when these matters may be resolved (other than as may be described above), it is not unusual for inquiries such as these to continue for a considerable period of time through the various phases of document and witness requests and on-going discussions with regulators and to develop over the course of time. In addition to the inquiries and proceedings specifically identified above, the Company

14

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

frequently is subject to other inquiries by state or federal government agencies and/or private civil qui tam complaints filed by relators. Negative findings or terms and conditions that the Company might agree to accept as part of a negotiated resolution of pending or future government inquiries or relator proceedings could result in, among other things, substantial financial penalties or awards against the Company, substantial payments made by the Company, harm to the Company’s reputation, required changes to the Company’s business practices, exclusion from future participation in the Medicare, Medicaid and other federal health care programs and, if criminal proceedings were initiated against the Company, members of its board of directors or management, possible criminal penalties, any of which could have a material adverse effect on the Company.

Shareholder and Derivative Claims

Peace Officers’ Annuity and Benefit Fund of Georgia Securities Class Action Civil Suit: On February 1, 2017, the Peace Officers’ Annuity and Benefit Fund of Georgia filed a putative federal securities class action complaint in the U.S. District Court for the District of Colorado against the Company and certain executives. The complaint covers the time period of August 2015 to October 2016 and alleges, generally, that the Company and its executives violated federal securities laws concerning the Company’s financial results and revenue derived from patients who received charitable premium assistance from an industry-funded non-profit organization. The complaint further alleges that the process by which patients obtained commercial insurance and received charitable premium assistance was improper and "created a false impression of DaVita’s business and operational status and future growth prospects." In November 2017, the court appointed the lead plaintiff and an amended complaint was filed on January 12, 2018. On March 27, 2018, the Company and various individual defendants filed a motion to dismiss. On March 28, 2019, the U.S. District Court for the District of Colorado denied the motion to dismiss. The Company answered the complaint on May 28, 2019. On January 31, 2020, the plaintiffs filed a motion for class certification that the Company intends to oppose. The Company disputes these allegations and intends to defend this action accordingly.

In re DaVita Inc. Stockholder Derivative Litigation: On August 15, 2017, the U.S. District Court for the District of Delaware consolidated three previously disclosed shareholder derivative lawsuits: the Blackburn Shareholder action filed on February 10, 2017, the Gabilondo Shareholder action filed on May 30, 2017, and the City of Warren Police and Fire Retirement System Shareholder action filed on June 9, 2017. The complaint covers the time period from 2015 to present and alleges, generally, breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, corporate waste, and misrepresentations and/or failures to disclose certain information in violation of the federal securities laws in connection with an alleged practice to direct patients with government-subsidized health insurance into private health insurance plans to maximize the Company’s profits. An amended complaint was filed in September 2017, and on December 18, 2017, the Company filed a motion to dismiss and a motion to stay proceedings in the alternative. On April 25, 2019, the court denied the Company's motion to dismiss. The Company answered the complaint on May 28, 2019. The Company disputes these allegations and intends to defend this action accordingly.

Other Proceedings

In addition to the foregoing, from time to time the Company is subject to other lawsuits, demands, claims, governmental investigations and audits and legal proceedings that arise due to the nature of its business, including, without limitation, contractual disputes, such as with payors, suppliers and others, employee-related matters and professional and general liability claims. From time to time, the Company also initiates litigation or other legal proceedings as a plaintiff arising out of contracts or other matters.

* * *

Other than as may be described above, the Company cannot predict the ultimate outcomes of the various legal proceedings and regulatory matters to which the Company is or may be subject from time to time, including those described in this Note 10 to these condensed consolidated financial statements, or the timing of their resolution or the ultimate losses or impact of developments in those matters, which could have a material adverse effect on the Company’s revenues, earnings and cash flows. Further, any legal proceedings or regulatory matters involving the Company, whether meritorious or not, are time consuming, and often require management’s attention and result in significant legal expense, and may result in the diversion of significant operational resources, or otherwise harm the Company’s business, results of operations, financial condition, cash flows or reputation.

15

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

11. Other commitments

The Company has certain other potential commitments to provide operating capital to a number of dialysis centers that are wholly-owned by third parties or businesses in which the Company maintains a noncontrolling equity interest as well as to physician-owned vascular access clinics or medical practices that the Company operates under management and administrative services agreements of approximately $9,460.

12. Long-term incentive compensation

Long-term incentive program (LTIP) compensation includes both stock-based awards (principally stock-settled stock appreciation rights, restricted stock units, and performance stock units) as well as long-term performance-based cash awards. Long-term incentive compensation expense, which is primarily general and administrative in nature, is attributed to the Company’s U.S. dialysis business, corporate administrative support, and ancillary services.

The Company’s stock-based compensation expense for stock-settled awards is measured at the estimated fair value of awards on the date of grant and recognized on a cumulative straight-line basis over the vesting terms of the awards unless the stock awards are based on non-market based performance metrics, in which case expense is adjusted for the expected ultimate shares to be issued as of the end of each reporting period. Stock-based compensation expense for cash-settled awards is based on their estimated fair values as of the end of each reporting period. The expense for all stock-based awards is recognized net of expected forfeitures.

During the three months ended March 31, 2020, the Company granted 950 restricted and performance stock units with an aggregate grant-date fair value of $72,648 and a weighted-average expected life of approximately 3.5 years and 2,765 stock-settled stock appreciation rights with an aggregate grant-date fair value of $73,833 and a weighted-average expected life of approximately 4.8 years.

For the three months ended March 31, 2020 and 2019, the Company recognized $25,594 and $13,107, respectively, in total LTIP expense, of which $19,870 and $10,301, respectively, represented stock-based compensation expense for stock appreciation rights, restricted stock units, performance stock units and discounted employee stock plan purchases, which are primarily included in general and administrative expense. The estimated tax benefits recorded for stock-based compensation for the three months ended March 31, 2020 and 2019 was $2,584 and $1,495, respectively.

As of March 31, 2020, the Company had $247,420 in total estimated but unrecognized stock-based compensation expense under the Company’s equity compensation and employee stock purchase plans. The Company expects to recognize this expense over a weighted average remaining period of 1.7 years. The Company no longer has outstanding long-term performance-based cash awards in its principal U.S. dialysis business as the performance and accrual period for these awards ended December 31, 2019 with a final payout of $66,302 in 2020.

For the three months ended March 31, 2020 and 2019, the Company recognized $199 and $151, respectively, in actual tax benefits upon the settlement of stock awards.

On November 4, 2019, the independent members of the Company’s Board of Directors (Board) approved an award of 2,500 premium-priced stock-settled stock appreciation rights (Premium-Priced Award) to the Company’s Chief Executive Officer (CEO), which award was subject to stockholder approval of a related amendment to the Company's 2011 Incentive Award Plan (2011 Plan). The Company's stockholders approved such amendment to the 2011 Plan on January 23, 2020, authorizing the grant to the Company's CEO. Since stockholder approval occurred in 2020, subsequent to the Board approval, this award had both a service inception and grant date of January 23, 2020 for accounting purposes.

The base price of the Premium-Priced Award is $67.80 per share, which is a 20% premium to the clearing price of the Company's 2019 modified Dutch auction tender offer. The award vests 50% on each of November 4, 2022 and November 4, 2023, and expires on November 4, 2024. The award includes a requirement that the CEO hold any shares acquired upon exercise of this award, net of shares used to cover related taxes, until November 4, 2024 (that is, for the full term of the award), subject to lapse of the holding period upon a change in control of the Company or due to the CEO's death or termination due to disability.

16

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

13. Share repurchases

The following table summarizes the Company's repurchases of its common stock during the three months ended March 31, 2020 and 2019:

	Three months ended March 31, 2020					Three months ended March 31, 2019
	Shares repurchased	Amount paid		Average paid per share		Shares repurchased	Amount paid		Average paid per share
Open market repurchases	4,052	$	303,139	$	74.81	—	$	—	$	—

The Company did not repurchase any shares subsequent to March 31, 2020 through May 4, 2020.

Effective as of the close of business on November 4, 2019, the Board terminated all remaining prior share repurchase authorizations available to the Company and approved a new share repurchase authorization of $2,000,000. As of May 4, 2020, the Company had a total of $1,400,356 available under the current repurchase authorization for additional share repurchases. Although this share repurchase authorization does not have an expiration date, the Company remains subject to share repurchase limitations, including under the terms of its current senior secured credit facilities and the indentures governing its senior notes.

14. Accumulated other comprehensive loss

	For the three months ended March 31, 2020									For the three months ended March 31, 2019
	Interest rate cap agreements			Foreign currency translation adjustments			Accumulated other comprehensive loss			Interest rate cap agreements			Foreign currency translation adjustments			Accumulated other comprehensive loss
Beginning balance	$	(1,433	)	$	(46,065	)	$	(47,498	)	$	(8,961	)	$	(25,963	)	$	(34,924	)
Unrealized losses	(17,346		)	(81,632		)	(98,978		)	(781		)	(13,653		)	(14,434		)
Related income tax	4,328			—			4,328			201			—			201
	(13,018		)	(81,632		)	(94,650		)	(580		)	(13,653		)	(14,233		)
Reclassification into net income	2,163			—			2,163			2,163			—			2,163
Related income tax	(540		)	—			(540		)	(557		)	—			(557		)
	1,623			—			1,623			1,606			—			1,606
Ending balance	$	(12,828	)	$	(127,697	)	$	(140,525	)	$	(7,935	)	$	(39,616	)	$	(47,551	)

The reclassification of net cap realized losses into income are recorded as debt expense in the corresponding consolidated statements of income. See Note 8 to these condensed consolidated financial statements for further details.

15. Acquisitions and divestitures

During the three months ended March 31, 2020, the Company acquired dialysis businesses consisting of two dialysis centers located in the U.S. and 22 dialysis centers located outside the U.S. for a total of $34,107 in net cash, $875 in deferred purchase price obligations, and $5,007 in earn-out obligations and assumed liabilities. The assets and liabilities for these acquisitions were recorded at their estimated fair values at the dates of the acquisitions and are included in the Company’s condensed consolidated financial statements, as are their operating results, from the designated effective dates of the acquisitions.

The initial purchase price allocations for these transactions have been recorded at estimated fair values based on the best information available to management and will be finalized when certain information arranged to be obtained has been received. In particular, certain income tax amounts are pending final evaluation and quantification of pre-acquisition tax contingencies and filing of final tax returns. In addition, valuation of certain working capital items, fixed assets and intangibles are pending final audits and related valuation reports.

17

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

The following table summarizes the assets acquired and liabilities assumed in these transactions at their estimated acquisition date fair values: 

Current assets	$	7,412
Property and equipment	8,892
Intangible and other long-term assets	6,107
Goodwill	26,770
Deferred income taxes	1,513
Current liabilities	(10,705		)
	$	39,989

 Amortizable intangible assets acquired during the three months ended March 31, 2020 primarily represent non-compete agreements which had weighted-average estimated useful lives of approximately four years. The total estimated amount of goodwill deductible for tax purposes associated with these acquisitions was approximately $11,241.

Contingent earn-out obligations

The Company has several contingent earn-out obligations associated with acquisitions that could result in the Company paying the former owners of acquired companies a total of up to $31,723 if certain performance targets or quality margins are met primarily over the next one year to five years. As of March 31, 2020, the estimated fair values of these contingent earn-out obligations is $22,386, of which $4,579 is included in other current liabilities and the remaining $17,807 is included in other long-term liabilities in the Company’s consolidated balance sheet.

The following is a reconciliation of changes in contingent earn-out obligations for the three months ended March 31, 2020:

Balance at December 31, 2019	$	24,586
Contingent earn-out obligations associated with acquisitions	2,672
Foreign currency translation adjustment for contingent earn-out obligations	(4,874		)
Remeasurement of fair value for contingent earn-out obligations	2
Balance at March 31, 2020	$	22,386

16.     Discontinued operations previously held for sale

DaVita Medical Group

On June 19, 2019, the Company completed the sale of its DaVita Medical Group (DMG) business to Optum, a subsidiary of UnitedHealth Group Inc., for an aggregate purchase price of $4,340,000, prior to certain closing and post-closing adjustments specified in the related equity purchase agreement dated as of December 5, 2017, as amended as of September 20, 2018 and as of December 11, 2018 (as amended, the equity purchase agreement).

The Company recorded a preliminary estimated pre-tax net loss of approximately $23,022 on the sale of its DMG business in 2019. This preliminary net loss was based on initial estimates of the Company's expected aggregate proceeds from the sale, net of transaction costs and obligations, as well as the estimated values of DMG net assets sold as of the closing date. These estimated net proceeds included $4,465,476 in cash received from Optum at closing, or $3,824,509 net of cash and restricted cash included in the DMG net assets sold. During the three months ended March 31, 2020, the Company recognized $9,980 in additional tax benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act related to its period of DMG ownership, which have been recognized as an adjustment to the Company's loss on sale of the DMG business.

The ultimate net proceeds from the DMG sale, as well as the value of its previously held for sale net assets sold, remain subject to estimate revisions and post-closing adjustments pursuant to the equity purchase agreement, which could be material. The Company continues to work with Optum concerning what, if any, net working capital adjustment or other potential adjustments to the purchase price are appropriate, via the process set forth in the equity purchase agreement. Under the equity purchase agreement, the Company also has certain indemnification obligations that could require payments to the buyer relating

18

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

to the Company's previous ownership and operation of the DMG business. Potential payments under these provisions, if any, remain subject to significant uncertainties and could have a material adverse effect on the net proceeds ultimately retained by the Company or the total amount of its loss on the sale of this business.

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

	Three months ended March 31,
	2020		2019
Revenues	$	—	$	1,382,281
Expenses	—		1,338,153
Income from discontinued operations before taxes	—		44,128
Income tax expense	—		13,823
Gain (loss) on sale of discontinued operations, net of tax	9,980		—
Net income from discontinued operations, net of tax	$	9,980	$	30,305

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

	Three months ended March 31,
	2020		2019
Net cash provided by operating activities from discontinued operations	$	—	$	68,240
Net cash used in investing activities from discontinued operations	$	—	$	(22,809	)

17. Variable interest entities (VIEs)

At March 31, 2020, these condensed consolidated financial statements include total assets of VIEs of $320,505 and total liabilities and noncontrolling interests of VIEs to third parties of $234,915. There have been no material changes in the nature of the Company's arrangements with VIEs or its judgments concerning them from those described in Note 23 to the Company's consolidated financial statements included in the 10-K.

18. Fair values of financial instruments

The Company measures the fair value of certain assets, liabilities and noncontrolling interests subject to put provisions (redeemable equity interests classified as temporary equity) based upon certain valuation techniques that include observable or unobservable inputs and assumptions that market participants would use in pricing these assets, liabilities, temporary equity and commitments. The Company has also classified certain assets, liabilities and temporary equity that are measured at fair value into the appropriate fair value hierarchy levels as defined by the Financial Accounting Standards Board (FASB).

The following table summarizes the Company’s assets, liabilities and temporary equity that are measured at fair value on a recurring basis as of March 31, 2020: 

	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Investments in equity securities	$	35,843	$	35,843	$	—	$	—
Interest rate cap agreements	$	7,106	$	—	$	7,106	$	—
Liabilities
Contingent earn-out obligations	$	22,386	$	—	$	—	$	22,386
Temporary equity
Noncontrolling interests subject to put provisions	$	1,228,036	$	—	$	—	$	1,228,036

19

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

For reconciliations of changes in contingent earn-out obligations and noncontrolling interests subject to put provisions during the three months ended March 31, 2020, see Note 15 and the consolidated statement of equity, respectively.

Investments in equity securities represent investments in various open-ended registered investment companies (mutual funds) and common stock and are recorded at fair value estimated based on reported market prices or redemption prices, as applicable. See Note 4 to these condensed consolidated financial statements for further discussion.

Interest rate cap agreements are recorded at fair value estimated from valuation models utilizing the income approach and commonly accepted valuation techniques that use inputs from closing prices for similar assets and liabilities in active markets as well as other relevant observable market inputs at quoted intervals such as current interest rates, forward yield curves, implied volatility and credit default swap pricing. The Company does not believe the ultimate amount that could be realized upon settlement of these interest rate cap agreements would be materially different from the fair value estimates currently reported. See Note 8 to these condensed consolidated financial statements for further discussion.

The estimated fair value measurements of contingent earn-out obligations are primarily based on unobservable inputs, including projected earnings before interest, taxes, depreciation, and amortization (EBITDA) and revenue. The estimated fair value of these contingent earn-out obligations is remeasured as of each reporting date and could fluctuate based upon any significant changes in key assumptions, such as changes in the Company's credit risk adjusted rate that is used to discount obligations to present value. See Note 15 to these condensed consolidated financial statements for further discussion.

The estimated fair value of noncontrolling interests subject to put provisions is based principally on the higher of either estimated liquidation value of net assets or a multiple of earnings for each subject dialysis partnership, based on historical earnings, revenue mix, and other performance indicators that can affect future results. The multiples used for these valuations are derived from observed ownership transactions for dialysis businesses between unrelated parties in the U.S. in recent years, and the specific valuation multiple applied to each dialysis partnership is principally determined by its recent and expected revenue mix and contribution margin. As of March 31, 2020, an increase or decrease in the weighted average multiple used in these valuations of one times EBITDA would change the estimated fair value of these noncontrolling interests by approximately $150,000. See Note 17 to the Company's consolidated financial statements included in the 10-K for further discussion of the Company’s methodology for estimating the fair value of noncontrolling interests subject to put obligations.

The Company's fair value estimates for its senior secured credit facilities and senior notes are based upon bid and ask quotes for these instruments, typically a level 2 input. See Note 8 to these condensed consolidated financial statements for further discussion of the Company's debt.

Other financial instruments consist primarily of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, other accrued liabilities, lease liabilities and debt. The balances of financial instruments other than debt and lease liabilities are presented in these condensed consolidated financial statements at March 31, 2020 at their approximate fair values due to the short-term nature of their settlements.

19. Segment reporting

The Company’s operations are comprised of its U.S. dialysis and related lab services business, its various ancillary services and strategic initiatives, including its international operations, and its corporate administrative support.

On June 19, 2019, the Company completed the sale of its DMG division to Optum, a subsidiary of UnitedHealth Group Inc. As a result of this transaction, DMG's results of operations have been reported as discontinued operations for all periods presented.

The Company’s separate operating segments include its U.S. dialysis and related lab services business, each of its ancillary services and strategic initiatives, its kidney care operations in each foreign sovereign jurisdiction, its other health operations in each foreign sovereign jurisdiction, and its equity method investment in the APAC JV. The U.S. dialysis and related lab services business qualifies as a separately reportable segment, and all other ancillary services and strategic initiatives operating segments, including the international operating segments, have been combined and disclosed in the other segments category. See Note 25 to the Company's consolidated financial statements included in the 10-K for further description of how the Company determines and measures results for its operating segments.

20

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

The following is a summary of segment net revenues, segment operating margin (loss), and a reconciliation of segment operating margin to consolidated income before income taxes:

	Three months ended March 31,
	2020			2019
Segment revenues:
U.S. dialysis
Dialysis patient service revenues:
External sources	$	2,579,240		$	2,511,826
Intersegment revenues	31,941			30,420
U.S. dialysis patient service revenues	2,611,181			2,542,246
Other revenues(1):
External sources	5,141			4,684
Intersegment revenues	301			221
Total U.S. dialysis revenues	2,616,623			2,547,151
Other—Ancillary services
Dialysis patient service revenues, net	134,041			117,863
Other external sources	122,815			108,739
Intersegment revenues	4,152			3,336
Total ancillary services revenues	261,008			229,938
Total net segment revenues	2,877,631			2,777,089
Elimination of intersegment revenues	(36,394		)	(33,977		)
Consolidated revenues	$	2,841,237		$	2,743,112
Segment operating margin (loss):
U.S. dialysis	$	491,607		$	416,981
Other—Ancillary services	(2,646		)	(57,630		)
Total segment operating margin	488,961			359,351
Reconciliation of segment operating margin to consolidated income from continuing operations before income taxes:
Corporate administrative support	(23,585		)	(18,844		)
Consolidated operating income	465,376			340,507
Debt expense	(88,603		)	(131,519		)
Debt refinancing charges	(2,948		)	—
Other income, net	(4,350		)	6,940
Consolidated income from continuing operations before income taxes	$	369,475		$	215,928

(1) Includes management fee revenue from providing management and administrative services to dialysis ventures in which the Company owns a noncontrolling equity investment or which are wholly-owned by third parties.

21

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

A summary of assets by reportable segment was as follows:

	March 31, 2020		December 31, 2019
U.S. dialysis (including equity investments of $130,144 and $124,188, respectively)	$	16,075,622	$	15,778,880
Other—Ancillary services (including equity investments of $124,355 and $117,795, respectively)	1,520,678		1,532,514
Consolidated assets	$	17,596,300	$	17,311,394

Depreciation and amortization expense by reportable segment was as follows:

	Three months ended March 31,
	2020		2019
U.S. dialysis	$	146,300	$	140,780
Other—Ancillary services	8,379		7,748
	$	154,679	$	148,528

Expenditures for property and equipment by reportable segment were as follows:

	Three months ended March 31,
	2020		2019
U.S. dialysis	$	148,763	$	170,548
Other—Ancillary services	6,179		8,578
DMG—Discontinued operations	—		19,752
	$	154,942	$	198,878

 

20. Changes in DaVita Inc.’s ownership interests in consolidated subsidiaries

The effects of changes in DaVita Inc.’s ownership interests in consolidated subsidiaries on the Company’s consolidated equity were as follows: 

	Three months ended March 31,
	2020			2019
Net income attributable to DaVita Inc.	$	239,593		$	149,289
Changes in paid-in capital for:
Purchases of noncontrolling interests	(445		)	(2,206		)
Net transfers to noncontrolling interests	(445		)	(2,206		)
Net income attributable to DaVita Inc., net of transfers to noncontrolling interests	$	239,148		$	147,083

21. New accounting standards

New standards recently adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU amend the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The amendments in this ASU became effective for the Company beginning on January 1, 2020 and were applied using a modified retrospective basis. The adoption of ASU No. 2016-13 did not have a material impact on the Company's consolidated financial statements.

22

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement. The applicable amendments in this ASU remove requirements for disclosures concerning transfers between fair value measurement levels 1, 2 and 3 and disclosures concerning valuation processes for level 3 fair value measurements. The applicable amendments in this ASU also add a requirement to separately disclose the changes in unrealized gains and losses included in other comprehensive income for the reporting period for level 3 items measured at fair value on a recurring basis, and require disclosure of the range and weighted average of significant unobservable inputs used to develop level 3 fair value measurements. The amendments in this ASU became effective for the Company beginning on January 1, 2020 and were applied on a prospective basis. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements when adopted January 1, 2020.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted this ASU as of January 1, 2020, using the prospective transition approach, which allows the Company to change the accounting method without restating prior periods or booking cumulative adjustments. The adoption of ASU No. 2018-15 did not have a material impact on the Company's consolidated financial statements.

New standards not yet adopted

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU No. 2019-12 attempts to simplify aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU No. 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. Early adoption is permitted for all entities. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU No. 2020-04 provides optional expedients and exceptions for applying U.S. generally accepted accounting principles (GAAP) to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. The amendments in this ASU were effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.

22. Condensed consolidating financial statements

The following information is presented in accordance with Rule 3-10 of Regulation S-X. The operating and investing activities of the separate legal entities included in the Company’s condensed consolidated financial statements are fully interdependent and integrated. Revenues and operating expenses of the separate legal entities include intercompany charges for management and other administrative services. The Company’s senior notes are guaranteed by a substantial majority of its domestic subsidiaries as measured by revenue, income and assets. The subsidiary guarantors have guaranteed the senior notes on a joint and several basis. However, a subsidiary guarantor will be released from its obligations under its guarantee of the senior notes and the indentures governing the senior notes if, in general, there is a sale or other disposition of all or substantially all of the assets of such subsidiary guarantor, including by merger or consolidation, or a sale or other disposition of all of the equity interests in such subsidiary guarantor held by the Company and its restricted subsidiaries, as defined in the indentures; such subsidiary guarantor is designated by the Company as an unrestricted subsidiary, as defined in the indentures, or otherwise ceases to be a restricted subsidiary of the Company, in each case in accordance with the indentures; or such subsidiary guarantor no longer guarantees any other indebtedness, as defined in the indentures, of the Company or any of its restricted subsidiaries, except for guarantees that are contemporaneously released. The senior notes are not guaranteed by certain of the Company’s domestic subsidiaries, any of the Company’s foreign subsidiaries, or any entities that do not constitute subsidiaries within the meaning of the indentures, such as corporations in which the Company holds capital stock with less than a majority of the voting power, joint ventures and partnerships in which the Company holds less than a majority of the equity or voting interests, non-owned entities and third parties. Contemporaneously with the Company entering into its $5,500,000 senior secured credit agreement (the New Credit Agreement) on August 12, 2019 and pursuant to the indentures governing the Company’s senior notes, certain subsidiaries of the Company were released from their guarantees of the Company's senior notes such that, after that release, the remaining subsidiary guarantors of the senior notes were the same subsidiaries

23

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

guaranteeing the New Credit Agreement. The following condensed consolidating financial statements have been prepared for all periods presented based on the current subsidiary guarantors and non-guarantors stipulated in the New Credit Agreement.

Condensed Consolidating Statements of Operations

For the three months ended March 31, 2020	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient service revenues	$	—		$	1,729,740		$	1,050,877		$	(67,336	)	$	2,713,281
Other revenues	197,283			156,860			41,428			(267,615		)	127,956
Total net revenues	197,283			1,886,600			1,092,305			(334,951		)	2,841,237
Operating expenses	154,651			1,640,821			915,340			(334,951		)	2,375,861
Operating income	42,632			245,779			176,965			—			465,376
Debt expense	(91,362		)	(59,093		)	(11,337		)	70,241			(91,551		)
Other income (loss), net	62,453			805			2,633			(70,241		)	(4,350		)
Income tax expense	3,424			80,975			7,161			—			91,560
Equity earnings in subsidiaries	229,294			98,795			—			(328,089		)	—
Net income from continuing operations	239,593			205,311			161,100			(328,089		)	277,915
Net income from discontinued operations, net of tax	—			—			9,980			—			9,980
Net income	239,593			205,311			171,080			(328,089		)	287,895
Less: Net income attributable to noncontrolling interests	—			—			—			(48,302		)	(48,302		)
Net income attributable to DaVita Inc.	$	239,593		$	205,311		$	171,080		$	(376,391	)	$	239,593

For the three months ended March 31, 2019	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient service revenues	$	—		$	1,706,593		$	986,373		$	(63,277	)	$	2,629,689
Other revenues	188,836			146,117			34,909			(256,439		)	113,423
Total net revenues	188,836			1,852,710			1,021,282			(319,716		)	2,743,112
Operating expenses and charges	143,659			1,634,285			944,377			(319,716		)	2,402,605
Operating income	45,177			218,425			76,905			—			340,507
Debt expense	(133,595		)	(50,650		)	(12,549		)	65,275			(131,519		)
Other income, net	110,198			648			11,060			(114,966		)	6,940
Income tax expense	7,026			44,027			5,693			—			56,746
Equity earnings in subsidiaries	134,535			64,375			—			(198,910		)	—
Net income from continuing operations	149,289			188,771			69,723			(248,601		)	159,182
Net (loss) income from discontinued operations, net of tax	—			—			(19,386		)	49,691			30,305
Net income	149,289			188,771			50,337			(198,910		)	189,487
Less: Net income attributable to noncontrolling interests	—			—			—			(40,198		)	(40,198		)
Net income attributable to DaVita Inc.	$	149,289		$	188,771		$	50,337		$	(239,108	)	$	149,289

24

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

Condensed Consolidating Statements of Comprehensive Income

For the three months ended March 31, 2020	DaVita Inc.			Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net income	$	239,593		$	205,311	$	171,080		$	(328,089	)	$	287,895
Other comprehensive loss	(11,395		)	—		(81,632		)	—			(93,027		)
Total comprehensive income	228,198			205,311		89,448			(328,089		)	194,868
Less: Comprehensive income attributable to noncontrolling interest	—			—		—			(48,302		)	(48,302		)
Comprehensive income attributable to DaVita Inc.	$	228,198		$	205,311	$	89,448		$	(376,391	)	$	146,566

For the three months ended March 31, 2019	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net income	$	149,289	$	188,771	$	50,337		$	(198,910	)	$	189,487
Other comprehensive income (loss)	1,026		—		(13,653		)	—			(12,627		)
Total comprehensive income	150,315		188,771		36,684			(198,910		)	176,860
Less: Comprehensive income attributable to noncontrolling interest	—		—		—			(40,198		)	(40,198		)
Comprehensive income attributable to DaVita Inc.	$	150,315	$	188,771	$	36,684		$	(239,108	)	$	136,662

Condensed Consolidating Balance Sheets

As of March 31, 2020	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
Cash and cash equivalents	$	1,075,965	$	411	$	305,388	$	—		$	1,381,764
Restricted cash and equivalents	14,540		—		92,184		—			106,724
Accounts receivable, net	—		1,184,686		635,446		—			1,820,132
Other current assets	86,786		556,210		100,357		(28,034		)	715,319
Total current assets	1,177,291		1,741,307		1,133,375		(28,034		)	4,023,939
Property and equipment, net	555,409		1,555,662		1,336,966		(2,614		)	3,445,423
Operating lease right-of-use assets	107,620		1,643,765		1,114,378		(17,987		)	2,847,776
Intangible assets, net	340		28,766		88,847		—			117,953
Investments in and advances to affiliates, net	10,961,209		7,869,131		3,099,564		(21,929,904		)	—
Other long-term assets and investments	85,777		130,528		187,405		(20,524		)	383,186
Goodwill	—		4,812,207		1,965,816		—			6,778,023
Total assets	$	12,887,646	$	17,781,366	$	8,926,351	$	(21,999,063	)	$	17,596,300
Current liabilities	$	365,783	$	1,172,340	$	683,608	$	(985	)	$	2,220,746
Intercompany liabilities, net	1,534,892		3,099,564		2,693,572		(7,328,028		)	—
Long-term operating leases liabilities	133,926		1,554,717		1,062,852		(17,125		)	2,734,370
Long-term debt and other long-term liabilities	8,209,577		786,685		334,591		(51,049		)	9,279,804
Noncontrolling interests subject to put provisions	695,622		—		—		532,414			1,228,036
Total DaVita Inc. shareholders' equity	1,947,846		11,168,060		3,433,816		(14,601,876		)	1,947,846
Noncontrolling interests not subject to put provisions	—		—		717,912		(532,414		)	185,498
Total equity	1,947,846		11,168,060		4,151,728		(15,134,290		)	2,133,344
Total liabilities and equity	$	12,887,646	$	17,781,366	$	8,926,351	$	(21,999,063	)	$	17,596,300

25

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

As of December 31, 2019	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
Cash and cash equivalents	$	758,241	$	532	$	343,599	$	—		$	1,102,372
Restricted cash and equivalents	14,499		—		91,847		—			106,346
Accounts receivable, net	—		1,189,301		606,297		—			1,795,598
Other current assets	76,787		548,553		102,410		(41,896		)	685,854
Total current assets	849,527		1,738,386		1,144,153		(41,896		)	3,690,170
Property and equipment, net	543,932		1,589,417		1,344,543		(4,508		)	3,473,384
Operating lease right-of-use assets	109,415		1,656,145		1,084,552		(20,065		)	2,830,047
Intangible assets, net	362		31,569		103,753		—			135,684
Investments in and advances to affiliates, net	10,813,991		7,611,402		3,051,208		(21,476,601		)	—
Other long-term assets and investments	102,779		133,698		176,315		(18,318		)	394,474
Goodwill	—		4,812,972		1,974,663		—			6,787,635
Total assets	$	12,420,006	$	17,573,589	$	8,879,187	$	(21,561,388	)	$	17,311,394
Current liabilities	$	379,286	$	1,327,378	$	666,470	$	(1,036	)	$	2,372,098
Intercompany payables	1,381,863		3,051,208		2,615,151		(7,048,222		)	—
Long-term operating lease liabilities	136,123		1,567,776		1,039,145		(19,244		)	2,723,800
Long-term debt and other long-term liabilities	7,741,725		674,558		364,102		(64,507		)	8,715,878
Noncontrolling interests subject to put provisions	647,600		—		—		532,776			1,180,376
Total DaVita Inc. shareholders' equity	2,133,409		10,952,669		3,475,710		(14,428,379		)	2,133,409
Noncontrolling interests not subject to put provisions	—		—		718,609		(532,776		)	185,833
Total equity	2,133,409		10,952,669		4,194,319		(14,961,155		)	2,319,242
Total liabilities and equity	$	12,420,006	$	17,573,589	$	8,879,187	$	(21,561,388	)	$	17,311,394

26

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2020	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Cash flows provided by operating activities:
Net income	$	239,593		$	205,311		$	171,080		$	(328,089	)	$	287,895
Changes in operating assets and liabilities and non-cash items included in net income	(182,332		)	(71,454		)	(1,817		)	328,089			72,486
Net cash provided by operating activities	57,261			133,857			169,263			—			360,381
Cash flows used in investing activities:
Additions of property and equipment	(52,714		)	(41,144		)	(61,084		)	—			(154,942		)
Acquisitions	—			(984		)	(33,123		)	—			(34,107		)
Proceeds from asset and business sales	—			4,180			27,338			—			31,518
Proceeds (purchases) from investment sales and other items, net	452			271			(5,817		)	—			(5,094		)
Net cash used in investing activities	(52,262		)	(37,677		)	(72,686		)	—			(162,625		)
Cash flows provided by (used in) financing activities:
Long-term debt and related financing costs, net	481,856			(2,462		)	(13,557		)	—			465,837
Intercompany borrowings (payments)	153,029			(95,857		)	(57,172		)	—			—
Other items	(322,119		)	2,018			(48,744		)	—			(368,845		)
Net cash provided by (used in) financing activities	312,766			(96,301		)	(119,473		)	—			96,992
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(14,978		)	—			(14,978		)
Net increase (decrease) in cash, cash equivalents and restricted cash	317,765			(121		)	(37,874		)	—			279,770
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	772,740			532			435,446			—			1,208,718
Cash, cash equivalents and restricted cash of continuing operations at end of the period	$	1,090,505		$	411		$	397,572		$	—		$	1,488,488

27

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

For the three months ended March 31, 2019	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Cash flows provided by (used in) operating activities:
Net income	$	149,289		$	188,771		$	50,337		$	(198,910	)	$	189,487
Changes in operating assets and liabilities and non-cash items included in net income	(124,409		)	(289,332		)	166,648			198,910			(48,183		)
Net cash provided by (used in) operating activities	24,880			(100,561		)	216,985			—			141,304
Cash flows used in investing activities:
Additions of property and equipment	(38,942		)	(76,529		)	(83,407		)	—			(198,878		)
Acquisitions	—			—			(11,274		)	—			(11,274		)
Proceeds from asset and business sales	—			2,270			11,633			—			13,903
Proceeds (purchases) from investment sales and other items, net	1,804			(3,878		)	(2,035		)	—			(4,109		)
Net cash used in investing activities	(37,138		)	(78,137		)	(85,083		)	—			(200,358		)
Cash flows provided by financing activities:
Long-term debt and related financing costs, net	365,133			(2,364		)	(5,572		)	—			357,197
Intercompany (payments) borrowings	(220,697		)	188,870			31,827			—			—
Other items	1,517			(8,427		)	(25,336		)	—			(32,246		)
Net cash provided by financing activities	145,953			178,079			919			—			324,951
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(921		)	—			(921		)
Net increase (decrease) in cash, cash equivalents and restricted cash	133,695			(619		)	131,900			—			264,976
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations	—			—			118,962			—			118,962
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations	133,695			(619		)	12,938			—			146,014
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	$	195,353		$	12,661		$	353,420		$	—		$	561,434

28

DAVITA INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)

(unaudited)

(dollars and shares in thousands, except per share data)

23. Recent and subsequent events

In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic, and the virus continues to spread throughout the world. As a caregiving organization, the Company is exposed to and will continue to be impacted by the effects of the COVID-19 pandemic. The Company has continued to provide essential, life-sustaining care for its patients during this public health crisis. The Company has also maintained business process continuity during the pandemic by enabling most back office teammates to work remotely, and as of the date of this report has not experienced any material issues in billing or cash collections. This transition combined with the Company's balance sheet has helped the Company to avoid any material deterioration of its liquidity position as a result of the COVID-19 crisis at this time.

The Company is closely monitoring the impact of the pandemic and the resulting economic downturn on all aspects of its business, including the impact on its patients, teammates, physician partners, suppliers, vendors and other business partners. We expect that the long-term impact of this public health crisis on the Company will be driven primarily by the severity and duration of the pandemic, the impact on our patient population, the pandemic’s impact on the U.S. and global economies and unemployment, and the timing, scope and effectiveness of federal, state and local governmental responses. At this time, the Company cannot reasonably estimate the ultimate impact the COVID-19 pandemic will have on its business, financial condition, results of operations, cash flows and liquidity, but the adverse impact could be material.

Under the CARES Act, in April 2020 the government distributed approximately $250,000 to the Company and its joint venture partners from the Public Health and Social Services Emergency Fund. These funds were only to be used for healthcare related expenses or lost revenues attributable to COVID-19. At this time, the Company has elected not to accept the funds available to it through this government financial support. The Company’s initial receipt of these payments constitutes a subsequent event and therefore had no effect on the Company's reported financial results or financial condition for the three months ended March 31, 2020.

29

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-looking statements

This Quarterly Report on Form 10-Q, including this Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements that are forward-looking statements within the meaning of the federal securities laws. All statements in this report, other than statements of historical fact, are forward-looking statements and as such are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, DaVita's response to and the expected future impacts of COVID-19, statements about our balance sheet and liquidity, our expenses, revenues, billings and collections and future results, potential need, ability or willingness to use any funds under the CARES Act or other government programs, availability of supplies, treatment volumes, percentage or number of patients under commercial insurance, and overall impact on our patients, as well as other statements regarding our future operations, financial condition and prospects, government and commercial payment rates, and our stock repurchase program. Without limiting the foregoing, statements including the words "expect," "intend," "will," “could,” "plan," "anticipate," "believe," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on DaVita's current expectations and are based solely on information available as of the date of this report. DaVita undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise. Actual future events and results could differ materially from any forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things:

• the impact of the dynamic and rapidly evolving COVID-19 pandemic, including, without limitation, on our patients, teammates, physician partners, suppliers, business, operations, reputation, financial condition and results of operations, the government’s response to the COVID-19 pandemic, and the consequences of an economic downturn resulting from the impacts of COVID-19, any of which may also have the effect of heightening many of the other risks and uncertainties discussed below;

• our need, ability and willingness to utilize any funds received under the CARES Act or subsequent legislation, and the consequences of our decisions with respect thereto;

• the concentration of profits generated by higher-paying commercial payor plans for which there is continued downward pressure on average realized payment rates, and a reduction in the number or percentage of our patients under such plans, including without limitation as a result of restrictions or prohibitions on the use and/or availability of charitable premium assistance, which may result in the loss of revenues or patients, or our making incorrect assumptions about how our patients will respond to any change in financial assistance from charitable organizations;

• noncompliance by us or our business associates with any privacy or security laws or any security breach by us or a third party involving the misappropriation, loss or other unauthorized use or disclosure of confidential information;

• the extent to which the ongoing implementation of healthcare reform, or changes in or new legislation, regulations or guidance, enforcement thereof or related litigation, result in a reduction in coverage or reimbursement rates for our services, a reduction in the number of patients enrolled in higher-paying commercial plans, or other material impacts to our business; or our making incorrect assumptions about how our patients will respond to any such developments;

• a reduction in government payment rates under the Medicare End Stage Renal Disease program or other government-based programs and the impact of the Medicare Advantage benchmark structure;

• risks arising from potential and proposed federal and/or state legislation, regulation, ballot, executive action or other initiatives, including such initiatives related to healthcare and/or labor matters;

• the impact of the political environment and related developments on the current healthcare marketplace and on our business, including with respect to the future of the Affordable Care Act, the exchanges and many other core aspects of the current healthcare marketplace;

• our ability to successfully implement our strategy with respect to home-based dialysis, including maintaining our existing business and further developing our capabilities in a complex and highly regulated environment;

• changes in pharmaceutical practice patterns, reimbursement and payment policies and processes, or pharmaceutical pricing, including with respect to calcimimetics;

• legal and compliance risks, such as our continued compliance with complex government regulations;

30

• continued increased competition from dialysis providers and others, and other potential marketplace changes;

• our ability to maintain contracts with physician medical directors, changing affiliation models for physicians, and the emergence of new models of care introduced by the government or private sector that may erode our patient base and reimbursement rates, such as accountable care organizations, independent practice associations and integrated delivery systems;

• our ability to complete acquisitions, mergers or dispositions that we might announce or be considering, on terms favorable to us or at all, or to integrate and successfully operate any business we may acquire or have acquired, or to successfully expand our operations and services in markets outside the United States, or to businesses outside of dialysis;

• uncertainties related to potential payments and/or adjustments under certain provisions of the equity purchase agreement for the sale of our DaVita Medical Group (DMG) business, such as post-closing adjustments and indemnification obligations;

• the variability of our cash flows, including without limitation any extended billing or collections cycles; the risk that we may not be able to generate or access sufficient cash in the future to service our indebtedness or to fund our other liquidity needs; and the risk that we may not be able to refinance our indebtedness as it becomes due, on terms favorable to us or at all;

• factors that may impact our ability to repurchase stock under our stock repurchase program and the timing of any such stock repurchases, as well as our use of a considerable amount of available funds to repurchase stock;

• risks arising from the use of accounting estimates, judgments and interpretations in our financial statements;

• impairment of our goodwill, investments or other assets; and

• uncertainties associated with the other risk factors set forth in DaVita Inc.'s Annual Report on Form 10-K for the year ended December 31, 2019 and this Quarterly Report on Form 10-Q, and the risks and uncertainties discussed in any subsequent reports that DaVita has filed or furnished with the Securities and Exchange Commission from time to time.

The following should be read in conjunction with our condensed consolidated financial statements.

31

Company Overview

Our principal business is to provide dialysis and related lab services to patients in the United States, which we refer to as our U.S. dialysis business. We also operate various ancillary services and strategic initiatives including our international operations, which we collectively refer to as our ancillary services, as well as our corporate administrative support. Our U.S. dialysis business is a leading provider of kidney dialysis services in the U.S. for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD).

On June 19, 2019, we completed the sale of our DaVita Medical Group (DMG) business to Optum, a subsidiary of UnitedHealth Group Inc. As a result of this transaction, DMG's results of operations have been reported as discontinued operations for all periods presented and DMG is not included below in this Management's Discussion and Analysis.

COVID-19 and its impact on our business

As a caregiving organization, we are exposed to and will continue to be impacted by the effects of the COVID-19 pandemic. DaVita’s team of over 65,000 teammates includes, among others, dialysis nurses, patient care technicians, social workers, dieticians and other caregivers who are on the front lines of the ongoing COVID-19 pandemic providing essential, life-sustaining care for our patients. During this time of great challenge, our top priorities continue to be the health, safety and well-being of our patients, teammates and physician partners and helping to ensure that our patients have the ability to maintain continuity of care throughout this crisis, whether in the acute, outpatient or home setting. We have implemented additional protocols in coordination with the Centers for Disease Control and Prevention (CDC) on infection control and clinical best practices in response to COVID-19. In addition, we have been collaborating with the U.S. Department of Health and Human Services (HHS), the Centers for Medicare and Medicaid Services (CMS), the CDC, the American Society of Nephrology, and dialysis providers nationwide to help ensure that the dialysis community is able to support patients nationwide.

We have also maintained business process continuity during the pandemic by enabling most back office teammates to work remotely, and as of the date of this report, we have not experienced any material issues in billing or cash collections. This transition, combined with our balance sheet, has helped us avoid any material deterioration of our liquidity position as a result of the COVID-19 crisis at this time.

We are closely monitoring the long-term impact of the pandemic and the resulting economic downturn on all aspects of our business, including the impact on our patients, teammates, physician partners, suppliers, vendors and business partners. We may have extended, significant additional costs as a result of COVID-19. For example, we may have increased costs and risk associated with a high demand for our skilled clinical personnel. Additionally, the steps we have taken designed to help safely maintain continuity of care for our patients and help protect our caregivers, such as our policies to implement dedicated care shifts for patients with confirmed or suspected COVID-19 and other enhanced clinical practices, have increased, and are expected to continue to increase, our expenses. Our response to COVID-19 has resulted in higher salary and wage expense, and we are also providing financial support to over 50,000 of our teammates to cover costs related to COVID-19. Furthermore, the effort needed to procure certain of our equipment and clinical supplies and associated costs have increased. These efforts are part of a wider Prepare, Prevent, Respond protocol that we have implemented in connection with the pandemic, which also includes operational initiatives such as the redistribution of teammates, machines and supplies across the country as needed and increased investment in and utilization of telehealth capabilities.

We may observe a negative impact on revenue and non-acquired growth from COVID-19 due to lower treatment volumes, including from the impact of changes in rates of mortality, as well as a decrease in new patient admissions due to the impact of COVID-19 on the chronic kidney disease (CKD) population. Over the longer term, we believe that changes in mortality in both the CKD and ESRD populations due to COVID-19 will depend primarily on the infection rate, case fatality rate and age and health status of affected patients. At this time we cannot reasonably estimate the magnitude or duration of this impact, due in part to testing and reporting limitations, but this adverse impact could be material. Because our ESRD patients generally have comorbidities, several of which are risk factors for COVID-19, we believe the mortality rate of infected patients will be higher in the dialysis population than in the general population. In addition, the COVID-19 pandemic and efforts to contain the virus have led to global economic deterioration and rapid and sharp increases in unemployment levels, which ultimately could result in a materially reduced share of our patients being covered by commercial insurance plans, with more patients being covered by lower-paying government insurance programs or being uninsured. These effects may persist after the pandemic subsides, and in the event such a reduction occurs, we believe that it would have a material adverse impact on our business, results of operations, financial condition and cash flows. The global nature of the pandemic may have varying impacts on our ongoing operations outside the United States and our ability to expand our operations into other parts of the world.

We believe the ultimate impact of this public health crisis on the Company will depend on future developments that are highly uncertain and difficult to predict, including among other things the severity and duration of the pandemic, the impact on

32

our patient population, the pandemic’s impact on the U.S. and global economies and unemployment, and the timing, scope and effectiveness of federal, state and local governmental responses. At this time, we cannot reasonably estimate the ultimate impact the COVID-19 pandemic will have on us, but the adverse impact could be material.

A significant initial part of the federal government response to the COVID-19 pandemic is the CARES Act, a $2 trillion economic stimulus package that was signed into law on March 27, 2020. The CARES Act authorizes $100 billion in funding to be distributed to healthcare providers through the federal Public Health and Social Services Emergency Fund (Provider Relief Fund). Under the CARES Act, in April 2020 the government distributed approximately $250 million to the Company and its joint venture partners from the Provider Relief Fund, and these funds were only to be used for healthcare related expenses or lost revenues attributable to COVID-19. At this time, the Company has elected not to accept the funds available to it through this government financial support. Since the Company initially received these payments after March 31, the payments had no impact on our financial condition or results reported for the three months ended March 31, 2020.

The CARES Act also included a provision that suspended the 2% Medicare sequestration from May 1, 2020 through December 31, 2020, and we currently estimate that this suspension will increase our revenues.

For additional information on the potential impact of the COVID-19 pandemic on us, see "Part II Item 1A Risk Factors."

Financial Results

The discussion below includes analysis of our financial condition and results of operations for the quarter ended March 31, 2020 compared to the quarters ended December 31, 2019 and March 31, 2019.

Consolidated results of operations

The following table summarizes our revenues, operating income and adjusted operating income by line of business. See the discussion of our results for each line of business following this table:

	Three months ended									Q1 2020 vs. Q4 2019					Q1 2020 vs. Q1 2019
	March 31, 2020			December 31, 2019			March 31, 2019			Amount			Percent		Amount			Percent
	(dollars in millions)
Revenues:
U.S. dialysis	$	2,617		$	2,687		$	2,547		$	(70	)	(2.6	)%	$	70		2.7	%
Other - ancillary services	261			255			230			6			2.4	%	31			13.5	%
Elimination of intersegment revenues	(36		)	(43		)	(34		)	7			16.3	%	(2		)	(5.9	)%
Total consolidated revenues	$	2,841		$	2,899		$	2,743		$	(58	)	(2.0	)%	$	98		3.6	%
Operating income (loss):
U.S. dialysis	$	492		$	508		$	417		$	(16	)	(3.1	)%	$	75		18.0	%
Other - ancillary services	(3		)	(19		)	(58		)	16			84.2	%	55			94.8	%
Corporate administrative support	(24		)	(27		)	(19		)	3			11.1	%	(5		)	(26.3	)%
Operating income	$	465		$	463		$	341		$	2		0.4	%	$	124		36.4	%
Adjusted operating income (loss)(1):
U.S. dialysis	$	492		$	508		$	417		$	(16	)	(3.1	)%	$	75		18.0	%
Other - ancillary services	(3		)	(19		)	(17		)	16			84.2	%	14			82.4	%
Corporate administrative support	(24		)	(27		)	(19		)	3			11.1	%	(5		)	(26.3	)%
Adjusted operating income	$	465		$	463		$	382		$	2		0.4	%	$	83		21.7	%

Certain columns, rows or percentages may not sum or recalculate due to the use of rounded numbers.

(1) For a reconciliation of adjusted operating income (loss) by reportable segment, see "Reconciliations of Non-GAAP measures" section below.

33

U.S. dialysis business results of operations

Revenues:

	Three months ended									Q1 2020 vs. Q4 2019					Q1 2020 vs. Q1 2019
	March 31, 2020			December 31, 2019			March 31, 2019			Amount			Percent		Amount			Percent
	(dollars in millions, except per treatment data)
Total revenues	$	2,617		$	2,687		$	2,547		$	(70	)	(2.6	)%	$	70		2.7	%
Dialysis treatments	7,513,321			7,681,462			7,297,460			(168,141		)	(2.2	)%	215,861			3.0	%
Average treatments per day	96,821			96,744			95,267			77			0.1	%	1,554			1.6	%
Treatment days	77.6			79.4			76.6			(1.8		)	(2.3	)%	1.0			1.3	%
Average patient service revenue per treatment	$	347.54		$	348.31		$	348.37		$	(0.77	)	(0.2	)%	$	(0.83	)	(0.2	)%
Normalized non acquired treatment growth(1)	2.3		%	2.1		%	2.4		%				0.2	%				(0.1	)%

(1) Normalized non-acquired growth reflects year over year growth in treatment volume, adjusted to exclude acquisitions and other similar transactions, further adjusted to normalize for the number and mix of treatment days in a given quarter versus the prior year quarter.

U.S. dialysis revenues in the first quarter of 2020 decreased over the fourth quarter of 2019 primarily due to a decrease of 2.2% in dialysis treatments and a decrease in our average patient service revenue per treatment. The decrease in our U.S. dialysis treatments was driven by approximately 1.8 fewer treatment days and the deconsolidation of the two dialysis partnerships described below, partially offset by volume growth from additional treatments due to acquired and non-acquired treatments. Our U.S. dialysis average patient service revenue per treatment was negatively impacted by a Medicare rate decline related to calcimimetics as well as a seasonal decrease from co-insurance and deductibles. These decreases in our average patient service revenue per treatment were partially offset by an increase in base Medicare rates in 2020 and seasonally higher inpatient dialysis service revenue.

U.S. dialysis revenues in the first quarter of 2020 increased over the first quarter of 2019 primarily due to an increase in dialysis treatments, partially offset by a decrease in our average patient service revenue per treatment. Our U.S. dialysis treatments increased due to volume growth from additional treatments of 3.0% due to acquired and non-acquired treatments and one additional treatment day in the first quarter of 2020, partially offset by a decrease in treatments related to the deconsolidation of the two dialysis partnerships described below. Our U.S. dialysis average patient service revenue per treatment was negatively impacted by a Medicare rate decline related to calcimimetics, partially offset by favorable changes in payor rates.

Operating expenses and charges:

	Three months ended									Q1 2020 vs. Q4 2019					Q1 2020 vs. Q1 2019
	March 31, 2020			December 31, 2019			March 31, 2019			Amount			Percent		Amount			Percent
	(dollars in millions, except per treatment data)
Patient care costs	$	1,783		$	1,824		$	1,797		$	(41	)	(2.2	)%	$	(14	)	(0.8	)%
General and administrative	204			209			197			(5		)	(2.4	)%	7			3.6	%
Depreciation and amortization	146			150			141			(4		)	(2.7	)%	5			3.5	%
Equity investment income	(9		)	(5		)	(5		)	(4		)	80.0	%	(4		)	80.0	%
Total operating expenses and charges	$	2,125		$	2,179		$	2,130		$	(54	)	(2.5	)%	$	(5	)	(0.2	)%
Patient care costs per treatment	$	237.35		$	237.44		$	246.29		$	(0.09	)	—	%	$	(8.94	)	(3.6	)%

Certain columns, rows or percentages may not sum or recalculate due to the use of rounded numbers.

34

Patient care costs. U.S. dialysis patient care costs are those costs directly associated with operating and supporting our dialysis centers and consist principally of labor, benefits, pharmaceuticals, medical supplies and other operating costs of the dialysis centers.

U.S. dialysis patient care costs per treatment in the first quarter of 2020 decreased slightly over the fourth quarter of 2019 primarily related to decreases in other direct operating expenses associated with our dialysis centers and pharmaceutical unit costs. These decreases were partially offset by increases in labor and benefits costs, payroll taxes and pharmaceutical intensity.

U.S. dialysis patient care costs per treatment in the first quarter of 2020 decreased over the first quarter of 2019 primarily due to a decrease in calcimimetics unit costs as oral generic products entered the market in 2019 lowering the cost of products we acquire, as well as decreases in other pharmaceutical unit costs and other direct operating expenses associated with our dialysis centers.

General and administrative expenses. U.S. dialysis general and administrative expenses in the first quarter of 2020 decreased over the fourth quarter of 2019 primarily due to decreases in long-term incentive compensation expense, consulting fees and legal costs. These decreases were partially offset by increases in payroll taxes and labor costs.

U.S. dialysis general and administrative expenses in the first quarter of 2020 increased over the first quarter of 2019 primarily due to increases in long-term incentive compensation expense and consulting fees. These increases were partially offset by decreases in benefit costs and payroll taxes.

Depreciation and amortization. Depreciation and amortization expense is directly impacted by the number of dialysis centers we develop and acquire. U.S. dialysis depreciation and amortization expenses in the first quarter of 2020 decreased over the fourth quarter of 2019 primarily due to certain assets being fully depreciated, partially offset by growth in the number of dialysis centers we operate. U.S. dialysis depreciation and amortization expenses in the first quarter of 2020 increased over the first quarter of 2019 primarily due to growth in the number of dialysis centers we operate.

Equity investment income. U.S. dialysis equity investment income in the first quarter of 2020 increased over the fourth quarter of 2019 primarily due to an increase in the profitability at certain joint ventures as well as the deconsolidation of two of our near 50%-owned dialysis partnerships at year-end 2019, based on a reassessment of relative rights and powers over these partnerships. Our portion of these partnerships' earnings are now recognized in equity investment income. U.S. dialysis equity investment income in the first quarter of 2020 increased over the first quarter of 2019 primarily due to the same reasons described above.

Operating income:

	Three months ended						Q1 2020 vs. Q4 2019					Q1 2020 vs. Q1 2019
	March 31, 2020		December 31, 2019		March 31, 2019		Amount			Percent		Amount		Percent
	(dollars in millions)
Operating income	$	492	$	508	$	417	$	(16	)	(3.1	)%	$	75	18.0	%

U.S. dialysis operating income in the first quarter of 2020 decreased over the fourth quarter of 2019 primarily due to a decrease in our margin on calcimimetics and a decrease of 2.2% in dialysis treatments, as described above, as well as increases in payroll taxes and pharmaceutical intensity. These decreases to U.S. dialysis operating income were partially offset by an increase in our base Medicare rate, seasonally higher inpatient dialysis service revenue, as well as decreases in other direct operating expenses associated with our dialysis centers, pharmaceutical unit costs, and long-term compensation expense.

U.S. dialysis operating income in the first quarter of 2020 increased over the first quarter of 2019 primarily due to an increase in dialysis treatments, as described above, favorable changes in payor rates, as well as a decrease in other pharmaceutical unit costs, partially offset by an increase in long-term incentive compensation expense.

Other—Ancillary services

Our other operations include ancillary services which are primarily aligned with our core business of providing dialysis services to our network of patients. As of March 31, 2020, these consisted primarily of integrated care and disease management, ESRD seamless care organizations (ESCOs), clinical research programs, vascular access services, physician services, and

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comprehensive kidney care, as well as our international operations. These ancillary services, including our international operations, generated approximately $261 million of revenues in the first quarter of 2020, representing approximately 9% of our consolidated revenues. If any of our ancillary services or strategic initiatives, such as our international operations, are unsuccessful, it could have a negative impact on our business, results of operations, financial condition and cash flows, and we may determine to exit that line of business, which could result in significant termination costs. In addition, we have in the past and may in the future incur a material write-off or an impairment of our investment, including goodwill, in one or more of these ancillary services. In that regard, we may in the future incur impairment and restructuring charges.

We expect to add additional service offerings to our business and pursue additional strategic initiatives in the future as circumstances warrant, which could include healthcare services not related to dialysis.

As of March 31, 2020, our international dialysis operations provided dialysis and administrative services through a total of 282 outpatient dialysis centers located in ten countries outside of the United States.

Ancillary services results of operations

	Three months ended									Q1 2020 vs. Q4 2019				Q1 2020 vs. Q1 2019
	March 31, 2020			December 31, 2019			March 31, 2019			Amount		Percent		Amount			Percent
	(dollars in millions)
Revenues:
U.S. ancillary	$	124		$	122		$	109		$	2	1.6	%	$	15		13.8	%
International	137			132			120			5		3.8	%	17			14.2	%
Total ancillary services revenues	$	261		$	255		$	230		$	6	2.4	%	$	31		13.5	%
Operating (loss) income:
U.S. ancillary	$	(19	)	$	(21	)	$	(15	)	$	2	9.5	%	$	(4	)	(26.7	)%
International(1)	17			2			(43		)	15		750.0	%	60			139.5	%
Total ancillary services operating loss	$	(3	)	$	(19	)	$	(58	)	$	16	84.2	%	$	55		94.8	%
Adjusted operating (loss) income(2):
U.S. ancillary	$	(19	)	$	(21	)	$	(15	)	$	2	9.5	%	$	(4	)	(26.7	)%
International(1)	17			2			(2		)	15		750.0	%	19			950.0	%
Total ancillary services adjusted operating loss	$	(3	)	$	(19	)	$	(17	)	$	16	84.2	%	$	14		82.4	%

Certain columns, rows or percentages may not sum or recalculate due to the use of rounded numbers.

(1) The reported operating income (loss) and adjusted operating income (loss) for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019, include approximately $10 million, $(4) million and $(1) million, respectively, of foreign currency gain (loss).

(2) For a reconciliation of adjusted operating income (loss) by reportable segment, see "Reconciliations of non-GAAP measures" section below.

Revenues:

U.S. ancillary services revenues for the first quarter of 2020 increased over the fourth quarter of 2019 due to increases in revenues in our physician services and clinical research programs. These increases were partially offset by a decrease in revenues in our vascular access services. In addition, international revenues for the first quarter of 2020 increased over the fourth quarter of 2019 primarily due to acquired treatment growth as we continue to expand internationally.

U.S. ancillary services revenues for the first quarter of 2020 increased over the first quarter of 2019 due to an increase in revenues at our integrated care and disease management business primarily due to an increase in special needs plans revenues, as well as increases in revenues in our physician services and clinical research programs. Our international revenues for the first quarter of 2020 increased over the first quarter of 2019 primarily due to acquired treatment growth as we continue to expand internationally.

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Charges impacting operating loss:

Goodwill impairment charges. During the first quarter of 2019, we recognized a goodwill impairment charge of $41 million in our German kidney care business. This charge resulted primarily from a change in relevant discount rates, as well as a decline in then current and expected future patient census and an increase in then current and expected future costs, principally due to wage increases expected to result from recently announced legislation. See further discussion of these impairment charges and our reporting units that remain at risk of goodwill impairment in Note 6 to the condensed consolidated financial statements.

Operating loss and adjusted operating loss:

U.S. ancillary services operating losses for the first quarter of 2020 decreased over the fourth quarter of 2019. The decrease in U.S. ancillary services operating losses was due to increases in operating results for our integrated care and disease management business and our physician services, partially offset by a decrease in operating results at our ESCO joint ventures. International operating income for the first quarter of 2020 increased over the fourth quarter of 2019 primarily due to favorable foreign exchange rates.

U.S. ancillary services operating losses for the first quarter of 2020 increased over the first quarter of 2019. The increase in U.S. ancillary services operating losses was primarily due to a decrease in operating results for our integrated care and disease management business due to an increase in medical costs. International operating results and adjusted operating results for the first quarter of 2020 increased over the first quarter of 2019 primarily due to favorable foreign exchange rates and growth in our international business.

Corporate administrative support

Corporate administrative support consists primarily of labor, benefits and long-term incentive compensation expense, as well as professional fees for departments which provide support to all of our various operating lines of business. Corporate administrative support expenses are included in general and administrative expenses on our consolidated income statement.

Corporate administrative support expenses in the first quarter of 2020 decreased $3 million or 11.1% over the fourth quarter of 2019 primarily due to decreases in general and administrative expenses and long-term incentive compensation expense. Corporate administrative support expenses increased $5 million or 26.3% in the first quarter of 2020 over the first quarter of 2019 primarily due to an increase in long-term incentive compensation expense, partially offset by a decrease in general and administrative expenses.

Corporate-level charges

	Three months ended									Q1 2020 vs. Q4 2019					Q1 2020 vs. Q1 2019
	March 31, 2020			December 31, 2019			March 31, 2019			Amount			Percent		Amount			Percent
	(dollars in millions)
Debt expense	$	(89	)	$	(92	)	$	(132	)	$	(3	)	(3.3	)%	$	(43	)	(32.6	)%
Debt refinancing charges	$	(3	)	$	—		$	—		$	3				$	3
Other (loss) income	$	(4	)	$	11		$	7		$	(15	)	(136.4	)%	$	(11	)	(157.1	)%
Effective income tax rate	24.8		%	21.4		%	26.3		%				3.4	%				(1.5	)%
Effective income tax rate from continuing operations attributable to DaVita, Inc.(1)	28.5		%	25.2		%	32.0		%				3.3	%				(3.5	)%
Net income attributable to noncontrolling interests	$	(48	)	$	(58	)	$	(40	)	$	(10	)	(17.2	)%	$	8		20.0	%

(1) For a reconciliation of our effective income tax rate from continuing operations attributable to DaVita Inc., see "Reconciliations of non-GAAP measures" section below.

Debt expense

Debt expense in the first quarter of 2020 decreased over the fourth quarter of 2019 primarily due to a decrease in our overall weighted average effective interest rate on our debt partially offset by an increase in our outstanding debt balance. Our overall weighted average effective interest rate in the first quarter of 2020 was 4.35% compared to 4.55% in the fourth quarter

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of 2019. Debt expense decreased over the first quarter of 2019 primarily due to a decrease in our outstanding debt balance and a decrease in our overall weighted average effective interest rate on our debt. Our overall weighted average effective interest rate in the first quarter of 2020 was 4.35% compared to 5.16% in the first quarter of 2019. See Note 8 to the condensed consolidated financial statements for further information on components of our debt.

Other (loss) income

Other (loss) income consists primarily of interest income on cash and cash equivalents and short- and long-term investments, realized and unrealized gains and losses recognized on investments, and foreign currency transaction gains and losses. Other income decreased in the first quarter of 2020 over the fourth quarter of 2019 primarily due to losses recognized on foreign currency transactions and investments in the first quarter of 2020. Other income decreased in the first quarter of 2020 over the first quarter of 2019 primarily due to losses recognized on foreign currency transactions and investments in the first quarter of 2020, partially offset by an increase in interest income.

Effective income tax rate

The effective income tax rate and effective income tax rate from continuing operations attributable to DaVita Inc. increased in the first quarter of 2020 as compared to the fourth quarter of 2019 primarily due to a tax benefit recognized in the fourth quarter of 2019 for a reduction in our estimated blended state tax rate, partially offset by an increase in uncertain tax positions. The effective tax rate decreased in the first quarter of 2020 as compared to the first quarter of 2019 primarily due to the impact of international goodwill impairments and operations reflected in the first quarter of 2019.

Net income attributable to noncontrolling interests

The decrease in net income attributable to noncontrolling interests in the first quarter of 2020 as compared to the fourth quarter of 2019 was primarily due to approximately 1.8 fewer treatment days in the first quarter of 2020 as well as the deconsolidation of the two dialysis partnerships described above. The increase in net income attributable to noncontrolling interests in the first quarter of 2020 and the first quarter of 2019 was due to improved earnings at certain U.S. dialysis partnerships partially offset by the deconsolidation of the two dialysis partnerships described above.

Accounts receivable

Our consolidated accounts receivable balances at March 31, 2020 and December 31, 2019, were $1.820 billion and $1.796 billion, respectively, representing approximately 59 days and 58 days sales outstanding (DSO), respectively, net of allowance for uncollectible accounts. The increase in consolidated DSO was primarily due to normal timing delays in billings and collections related to certain payors. Our DSO calculation is based on the current quarter’s average revenues per day. There were no significant changes in the first quarter of 2020 from the fourth quarter of 2019 in the amount of unreserved accounts receivable over one year old or the amounts pending approval from third-party payors.

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Liquidity and capital resources

The following table shows the summary of our major sources and uses of cash, cash equivalents and restricted cash:

	Three months ended						Q1 2020 vs. Q1 2019
	March 31, 2020			March 31, 2019(1)			Amount			Percent
	(dollars in millions)
Net cash provided by operating activities:
Net income	$	288		$	189		$	99		52.4	%
Non-cash items	274			244			30			12.3	%
Working capital	(205		)	(290		)	85			29.3	%
Other	3			(2		)	5			250.0	%
	$	360		$	141		$	219		155.3	%
Net cash used in investing activities:
Capital expenditures:
Routine maintenance/IT/other	$	(82	)	$	(90	)	$	8		8.9	%
Development and relocations	(73		)	(109		)	36			33.0	%
Acquisition expenditures	(34		)	(11		)	(23		)	(209.1	)%
Proceeds from sale of self-developed properties	27			12			15			125.0	%
Other	(1		)	(2		)	1			50.0	%
	$	(163	)	$	(200	)	$	37		18.5	%
Net cash provided by financing activities:
Debt issuances (payments), net	$	466		$	357		$	109		30.5	%
Distributions to noncontrolling interest	(58		)	(44		)	(14		)	(31.8	)%
Contributions from noncontrolling interest	9			19			(10		)	(52.6	)%
Share repurchases	(322		)	—			(322		)
Other	2			(7		)	9			128.6	%
	$	97		$	325		$	(228	)	(70.2	)%
Total number of shares repurchased	4,052,298			—			4,052,298
Free cash flow from continuing operations(2)	$	184		$	(119	)	$	303		254.6	%

Certain columns or rows may not sum or recalculate due to the use of rounded numbers.

(1) Represents consolidated cash flow activity, including cash flows related to discontinued operations.

(2) For a reconciliation of our free cash flow from continuing operations, see "Reconciliations of Non-GAAP measures" section below.

Consolidated cash flows

Consolidated cash flows from operating activities during the first quarter of 2020 were $360 million, all of which were from continuing operations, compared with consolidated operating cash flows for the first quarter of 2019 of $141 million, of which $73 million was from continuing operations. The increase in operating cash flows from continuing operations was primarily driven by an increase in operating results in the first quarter of 2020 as compared to the first quarter of 2019, as well as the timing of working capital items. Operating cash flows from continuing operations for the first quarter of 2020 were negatively impacted by one additional day in DSO as compared to the first quarter of 2019 which was negatively impacted by a four day increase in DSO in our U.S. dialysis business.

Free cash flow from continuing operations during the first quarter of 2020 increased over the first quarter of 2019 primarily due to an increase in net cash provided in operating activities, as described above, a decrease in capital expenditures for development and an increase in proceeds from the sale of self-developed properties, partially offset by an increase in cash outflows for acquisitions and an increase net distributions to non-controlling interest.

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Other significant changes in sources and uses of cash included a net draw on our revolving line of credit of $500 million and $400 million in the first quarter of 2020 and 2019, respectively. Net debt payments during the first quarter of 2020 primarily consisted of regularly scheduled mandatory principal payments under our senior secured credit facilities totaling approximately $11 million on Term Loan A and $7 million on Term Loan B-1 and additional required principal payments under other debt arrangements. In addition, we incurred refinancing costs related to the repricing of our Term Loan B-1 of approximately $3 million. See further discussion in Note 8 to the condensed consolidated financial statements related to debt activities. Cash flows used for share repurchases increased in the first quarter of 2020 as compared to the first quarter of 2019.

Dialysis center capacity and growth

The table below shows the growth in our dialysis operations by number of dialysis centers owned or operated:

	U.S.				International
	Three months ended March 31,				Three months ended March 31,
	2020		2019		2020		2019
Number of centers operated at beginning of period	2,753		2,664		259		241
Acquired centers	2		2		22		2
Developed centers	22		27		2		—
Net change in non-owned managed or administered centers(1)	—		(1	)	—		—
Sold and closed centers(2)	(2	)	(2	)	—		—
Closed centers(3)	(3	)	(1	)	(2	)	—
Net change in Asia Pacific joint venture centers					1		—
Number of centers operated at end of period	2,772		2,689		282		243

(1) Represents dialysis centers for which we manage or provide administrative services but in which we own a noncontrolling equity interest or which are wholly-owned by third parties.

(2) Represents dialysis centers that were sold and/or closed for which patients were not retained.

(3) Represents dialysis centers that were closed for which the majority of patients were retained and transferred to one of our other existing outpatient dialysis centers.

Stock repurchases

The following table summarizes our repurchases of our common stock during the first quarter of 2020 and 2019:

	Three months ended March 31, 2020					Three months ended March 31, 2019
	Shares repurchased	Amount paid (in millions)		Average paid per share		Shares repurchased	Amount paid (in millions)		Average paid per share
Open market repurchases	4,052,298	$	303	$	74.81	—	$	—	$	—

See further discussion on our stock repurchases in Note 13 to the condensed consolidated financial statements.

Available liquidity

As of March 31, 2020, we had $500 million drawn on our $1.0 billion revolving line of credit under our senior secured credit facilities. We also have approximately $58 million of outstanding letters of credit under a separate bilateral secured letter of credit facility.

See Note 8 to the condensed consolidated financial statements for components of our long-term debt and their interest rates.

The COVID-19 pandemic and efforts to prevent its spread have dramatically reduced global economic activity and negatively impacted the financial markets. We have maintained business process continuity during the COVID-19 pandemic by enabling most back office teammates to work remotely, and as of the date of this report, we have not experienced any material issues in billing or cash collections. This transition, combined with our balance sheet, has helped us to avoid any material deterioration of our liquidity position as a result of the COVID-19 crisis at this time. In addition, at this time we have elected not to accept the funds available to us under the CARES Act Provider Relief Fund. The ultimate impact of the pandemic will depend on future developments that are highly uncertain and difficult to predict.

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We believe that our cash flow from operations and other sources of liquidity, including from amounts available under our senior secured credit facilities and our access to the capital markets, will be sufficient to fund our scheduled debt service under the terms of our debt agreements and other obligations for the foreseeable future, including the next 12 months. Our primary recurrent sources of liquidity are cash from operations and cash from borrowings.

Reconciliations of non-GAAP measures

The following tables provide reconciliations of adjusted operating income to operating income as presented on a U.S. generally accepted accounting principles (GAAP) basis for our U.S. dialysis reportable segment as well as for our U.S. ancillary services, our international business, and for our total ancillary services which combines them and is disclosed as our other segments category. These non-GAAP or “adjusted” measures are presented because management believes these measures are useful adjuncts to, but not alternatives for, our GAAP results.

Specifically, management uses adjusted operating income to compare and evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe this non-GAAP measure is also useful to investors and analysts in evaluating our performance over time and relative to competitors, as well as in analyzing the underlying trends in our business. We also believe this presentation enhances a user's understanding of our normal operating income by excluding certain items which we do not believe are indicative of our ordinary results of operations.

In addition, our effective income tax rate on income from continuing operations attributable to DaVita Inc. excludes noncontrolling owners' income, which primarily relates to non-tax paying entities. We believe this adjusted effective income tax rate is useful to management, investors and analysts in evaluating our performance and establishing expectations for income taxes incurred on our ordinary results attributable to DaVita Inc.

Finally, our free cash flow from continuing operations represents net cash provided by operating activities from continuing operations less distributions to noncontrolling interests and all capital expenditures (including development capital expenditures, routine maintenance and information technology); plus contributions from noncontrolling interests and sale leaseback proceeds. Management uses this measure to assess our ability to fund acquisitions and meet our debt service obligations and we believe this measure is equally useful to investors and analysts as an adjunct to cash flows from operating activities from continuing operations and other measures under GAAP.

It is important to bear in mind that these non-GAAP “adjusted” measures are not measures of financial performance under GAAP and should not be considered in isolation from, nor as substitutes for, their most comparable GAAP measures.

	Three months ended March 31, 2020
	U.S. dialysis		Ancillary services								Corporate administration
			U.S.			International		Total						Consolidated
	(dollars in millions)
Operating income (loss)	$	492	$	(19	)	$	17	$	(3	)	$	(24	)	$	465
Adjusted operating income (loss)	$	492	$	(19	)	$	17	$	(3	)	$	(24	)	$	465

Certain columns or rows may not sum or recalculate due to the use of rounded numbers.

	Three months ended December 31, 2019
	U.S. dialysis		Ancillary services								Corporate administration
			U.S.			International		Total						Consolidated
	(dollars in millions)
Operating income (loss)	$	508	$	(21	)	$	2	$	(19	)	$	(27	)	$	463
Adjusted operating income (loss)	$	508	$	(21	)	$	2	$	(19	)	$	(27	)	$	463

Certain columns or rows may not sum or recalculate due to the use of rounded numbers.

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	Three months ended March 31, 2019
	U.S. dialysis		Ancillary services									Corporate administration
			U.S.			International			Total						Consolidated
	(dollars in millions)
Operating income (loss)	$	417	$	(15	)	$	(43	)	$	(58	)	$	(19	)	$	341
Goodwill impairment	—		—			41			41			—			41
Adjusted operating income (loss)	$	417	$	(15	)	$	(2	)	$	(17	)	$	(19	)	$	382

Certain columns or rows may not sum or recalculate due to the use of rounded numbers.

	Three months ended
	March 31, 2020			December 31, 2019			March 31, 2019
	(dollars in millions)
Income from continuing operations before income taxes	$	369		$	382		$	216
Less: Noncontrolling owners' income primarily attributable to non-tax paying entities	(48		)	(58		)	(39		)
Income from continuing operations before income taxes attributable to DaVita, Inc.	$	321		$	324		$	177
Income tax expense for continuing operations	$	92		$	82		$	57
Less: Income tax attributable to noncontrolling interests	—			—			—
Income tax expense from continuing operations attributable to DaVita, Inc.	$	91		$	82		$	57
Effective income tax rate on income from continuing operations attributable to DaVita, Inc.	28.5		%	25.2		%	32.0		%

Certain columns or rows may not sum or recalculate due to the use of rounded numbers.

	Three months ended March 31,
	2020			2019
	(dollars in millions
Net cash provided by continuing operating activities	$	360		$	73
Less: Distributions to noncontrolling interests	(58		)	(44		)
Plus: Contributions to noncontrolling interests	9			19
Cash provided by continuing operating activities attributable to DaVita Inc.	312			48
Less: Expenditures for routine maintenance and information technology	(82		)	(80		)
Less: Expenditures for development	(73		)	(99		)
Plus: Proceeds from sale of self-developed properties	27			12
Free cash flow from continuing operations	$	184		$	(119	)

Certain columns or rows may not sum or recalculate due to the use of rounded numbers.

Off-balance sheet arrangements and aggregate contractual obligations

In addition to the debt obligations and operating lease liabilities reflected on our balance sheet, we have commitments associated with letters of credit, as well as potential obligations associated with our equity investments in nonconsolidated businesses and to dialysis ventures that are wholly-owned by third parties. We have potential obligations to purchase the noncontrolling interests held by third parties in many of our majority-owned partnerships and other nonconsolidated entities. These obligations are in the form of put provisions that are exercisable at the third-party owners’ discretion within specified periods as outlined in each specific put provision. If these put provisions were exercised, we would be required to purchase the third-party owners’ equity interests, generally at the appraised fair market value of the equity interests or in certain cases at a predetermined multiple of earnings or cash flows attributable to the equity interests put to us, intended to approximate fair

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value. The methodology we use to estimate the fair values of noncontrolling interests subject to put provisions assumes the higher of either a liquidation value of net assets or an average multiple of earnings, based on historical earnings, patient mix and other performance indicators that can affect future results, as well as other factors. The estimated fair values of noncontrolling interests subject to put provisions are a critical accounting estimate that involves significant judgments and assumptions and may not be indicative of the actual values at which the noncontrolling interests may ultimately be settled, which could vary significantly from our current estimates. The estimated fair values of noncontrolling interests subject to put provisions can fluctuate and the implicit multiple of earnings at which these noncontrolling interests obligations may be settled will vary significantly depending upon market conditions including potential purchasers’ access to the capital markets, which can impact the level of competition for dialysis and non-dialysis related businesses, the economic performance of these businesses and the restricted marketability of the third-party owners’ equity interests. The amount of noncontrolling interests subject to put provisions that employ a contractually predetermined multiple of earnings rather than fair value are immaterial.

We also have certain other potential commitments to provide operating capital to several dialysis businesses that are wholly-owned by third parties or in which we own a noncontrolling equity interest as well as to physician-owned vascular access clinics or medical practices that we operate under management and administrative services agreements.

The following is a summary of these off-balance sheet contractual obligations and commitments as of March 31, 2020 (in millions):

	Remainder of 2020		2021-2023		2024-2025		After 5 years		Total
Potential cash requirements under other commitments:
Letters of credit	$	58	$	—	$	—	$	—	$	58
Noncontrolling interests subject to put provisions	843		206		113		66		1,228
Non-owned and minority owned put provisions	73		6		—		—		79
Operating capital advances	1		3		1		4		9
Purchase commitments	289		674		—		—		963
	$	1,264	$	889	$	114	$	70	$	2,337

For information on the maturities and other terms of our long term debt and lease contracts, see Note 8 and Note 9 to the condensed consolidated financial statements.

We have an agreement with Fresenius Medical Care (FMC) to purchase a certain amount of dialysis equipment, parts and supplies from FMC through December 31, 2020. We also have an agreement with Baxter Healthcare Corporation (Baxter) that commits us to purchase a certain amount of hemodialysis and peritoneal dialysis supplies at fixed prices through 2022. If we fail to meet the minimum purchase commitments under these contracts during any year, we are required to pay the difference to the supplier.

In addition to the commitments listed above, in 2017 we entered into a Sourcing and Supply Agreement with Amgen USA Inc. (Amgen) that expires on December 31, 2022. Under the terms of this agreement, we will purchase EPO in amounts necessary to meet no less than 90% of our requirements for erythropoiesis stimulating agents (ESAs) through the expiration of the contract with Amgen. The actual amount of EPO that we will purchase will depend upon the amount of EPO administered during dialysis as prescribed by physicians and the overall number of patients that we serve.

Settlements of existing income tax liabilities for unrecognized tax benefits of approximately $84 million, including interest, penalties and other long-term tax liabilities, are excluded from the table above as reasonably reliable estimates of their timing cannot be made.

New Accounting Standards

See discussion of new accounting standards in Note 21 to the condensed consolidated financial statements.

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Item 3.     Quantitative and Qualitative Disclosures about Market Risk

Interest rate sensitivity

There has been no material change in the nature of the Company's interest rate risks or foreign currency exchange risks from those described in Part II Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2019.

The tables below provide information about our financial instruments that are sensitive to changes in interest rates as of March 31, 2020. For further information on the components of the Company's long-term debt and their interest rates, see Note 8 to the condensed consolidated interim financial statements included in this Quarterly Report on Form 10-Q at Part I Item 1.

																	Average interest rate
	Expected maturity date																		Fair Value(1)
	2020		2021		2022		2023		2024		2025		Thereafter		Total
	(dollars in millions)
Long term debt:
Fixed rate	$	25	$	34	$	34	$	44	$	1,778	$	27	$	1,680	$	3,622	5.08	%	$	3,338
Variable rate	$	70	$	136	$	138	$	181	$	1,894	$	35	$	2,581	$	5,035	2.81	%	$	4,871

(1) Represents the fair value of the Company’s long-term debt excluding financing leases. See Note 8 to the condensed consolidated financial statements for further details.

	Notional Amount		Contract maturity date															Fair Value
			2020		2021		2022		2023		2024		2025		Thereafter		Receive variable
	(dollars in millions)
2015 cap agreements	$	3,500	$	3,500	$	—	$	—	$	—	$	—	$	—	$	—	LIBOR above 3.5%	$	—
2019 cap agreements	$	3,500	$	—	$	—	$	—	$	—	$	3,500	$	—	$	—	LIBOR above 2.0%	$	7.1

Item 4.     Controls and Procedures

Management has established and maintains disclosure controls and procedures designed to ensure that information required to be disclosed in the reports that it files or submits pursuant to the Securities Exchange Act of 1934, as amended (Exchange Act), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosures.

At the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures in accordance with the Exchange Act requirements. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective for timely identification and review of material information required to be included in the Company’s Exchange Act reports, including this report. Management recognizes that these controls and procedures can provide only reasonable assurance of desired outcomes, and that estimates and judgments are still inherent in the process of maintaining effective controls and procedures.

There was no change in our internal control over financial reporting that was identified during the evaluation that occurred during the fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

44

PART II.

OTHER INFORMATION

Item 1.    Legal Proceedings

The information required by this Part II, Item 1 is incorporated herein by reference to the information set forth under the caption “Contingencies” in Note 10 to the condensed consolidated financial statements included in this report.

Item 1A. Risk Factors

In addition to the following risk factor and the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in Part I, Item 1A of our Annual Report on Form 10-K (our Form 10-K) for the year ended December 31, 2019 and any subsequent filings with the Securities and Exchange Commission (SEC) made prior to the date hereof, which could materially affect our business, financial condition, results of operations or future results. The risks and uncertainties discussed below, in our Form 10-K and in any subsequent filings with the SEC made prior to the date hereof are not the only ones facing our business. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may materially adversely affect our business, cash flows, financial condition and/or results of operations. The risk factor below updates, and should be read together with, the risk factors disclosed in Part I, Item 1A of our Form 10-K. Please also read the cautionary notice regarding forward-looking statements in Part I, Item 2 of this Quarterly Report on Form 10-Q under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations."

We face various risks related to the dynamic and rapidly evolving novel coronavirus pandemic, any of which may have a material adverse impact on us.

The novel coronavirus (COVID-19) is impacting the world and our business in many different ways. The ultimate impact of COVID-19 on us will depend on future developments that are highly uncertain and difficult to predict, including among other things, the severity and duration of the pandemic; the impact on our patient population; the pandemic’s impact on the U.S. and global economies and unemployment; and the timing, scope and effectiveness of governmental responses. The impact could come in many forms, including but not limited to:

• We may observe a negative impact on revenue and non-acquired growth from COVID-19 due to lower treatment volumes, including from the impact of changes in rates of mortality, as well as a decrease in new patient admissions due to the impact of COVID-19 on the chronic kidney disease (CKD) population. Over the longer term, we believe that changes in mortality in both the CKD and ESRD populations due to COVID-19 will primarily depend on the infection rate, case fatality rate and age and health status of affected patients. At this time, we cannot reasonably estimate the magnitude or duration of this impact, due in part to testing and reporting limitations, but this adverse impact could be material. Because our ESRD patients generally have comorbidities, several of which are risk factors for COVID-19, we believe the mortality rate of infected patients will be higher in the dialysis population than in the general population.

• We may have extended, significant additional costs as a result of COVID-19. The steps we have taken designed to help safely maintain continuity of care for our patients and help protect our caregivers, such as our policies to implement dedicated care shifts for patients with confirmed or suspected COVID-19 and other enhanced clinical practices designed to meet or exceed guidelines from the Centers for Disease Control and Prevention (CDC), have increased, and are expected to continue to increase, our expenses. Our response to COVID-19 has resulted in higher salary and wage expense, and we are also providing financial support to over 50,000 of our teammates to cover costs related to COVID-19 impact under previously announced programs. Additionally, the effort needed to procure certain of our equipment and clinical supplies and associated costs have increased.

• We may have increased costs and risk associated with a high demand for our skilled clinical personnel. Historically we have faced costs and difficulties in hiring and retaining nurses and other caregivers due to a nationwide shortage of skilled clinical personnel, and these challenges have been heightened by the increased demand for and demand upon such personnel by the ongoing pandemic. Any staffing, equipment or clinical supply shortages, disruptions or delays could impact our costs and/or our ability to provide dialysis services.

• If we experience a failure of the fitness of our clinical laboratory, dialysis centers and related operations and/or other facilities as a result of the COVID-19 pandemic, or another event or occurrence adversely impacts the safety of our caregivers or patients, we could face adverse consequences, including without limitation, material negative impact on our brand, increased litigation, compliance or regulatory investigations, teammate unrest, work stoppages or

45

other workforce disruptions. Any legal actions brought by patients, teammates, caregivers or others allegedly exposed to COVID-19 at our facilities or by our caregivers may involve significant demands and require substantial legal defense costs, which may not be adequately covered by our professional and general liability insurance.

• The COVID-19 pandemic and efforts to contain the virus have led to global economic deterioration and rapid and sharp increases in unemployment levels, which ultimately could result in a materially reduced share of our patients being covered by commercial insurance plans, with more patients being covered by lower-paying government insurance programs or being uninsured. These effects may persist after the pandemic subsides, and in the event such a reduction occurs, it would have a material adverse impact on our business, results of operations, financial condition and cash flows.

• If general economic conditions continue to deteriorate or remain uncertain for an extended period of time, we may incur future charges to recognize impairment in the carrying amount of our goodwill and other intangible assets. We also may experience an increased need for additional liquidity funded by accessing existing credit facilities, raising new debt in the capital markets, or other sources, or may seek to refinance existing debt, which may be more difficult or costly as a result of the pandemic’s impact on capital markets or on us. Furthermore, any extended billing or collection cycles, or deterioration in collectability of accounts receivable, will adversely impact our results of operations and cash flows.

• The global nature of the pandemic may have varying impacts on our ongoing operations outside the United States and our ability to expand our operations into other parts of the world.

The nature and scope of the pandemic is rapidly evolving and we cannot predict the nature, timing or extent of potential changes in patient and physician preferences resulting from the COVID-19 pandemic. In addition, the government response to the pandemic has been wide-ranging and will continue to develop over time. As a result, we may not be able to accurately predict the nature, timing or extent of changes to the extensive set of federal, state and local laws, regulations and requirements that govern our business, or the impact of such changes on the markets in which we conduct business or on the other participants that operate in those markets. We believe that these changes may impact our business in a variety of ways, including among others:

• Our need, ability and willingness to use and retain any funds from the government, including any funds received under the recent Coronavirus Aid, Relief, and Economic Security Act (CARES Act) or under any future legislation, the consequences of our decisions with respect thereto, our ability to operate within any restrictions on our business or operations that may be imposed as a condition to participation in any government assistance programs, and the impact of any such legislation on our competitors, all will depend, among other things, on the magnitude, timing and nature of COVID-19’s impact on the Company as well as the requirements of any such programs, which are uncertain. In addition, while we are declining the government funding from the Provider Relief Fund under the CARES Act, there can be no assurance that we will be able to continue to forego the receipt of financial or other assistance under the CARES Act or similar subsequent legislation or that similar assistance will be available from the government if we have a need for such assistance in the future.

• State and local shelter in place and social distancing restrictions have required us to significantly increase the use of remote arrangements for our teammates and telehealth technology for our dialysis patients, which broadens our technology footprint for where and how protected health information is used or disclosed, and in turn increases our exposure to the various privacy and information security risks we face such as the risk of "phishing" and other cybersecurity attacks and the risk of unauthorized dissemination of sensitive personal, proprietary or confidential information.

• We have worked with certain government agencies and other kidney care providers to respond to the COVID-19 pandemic, including seeking waivers of certain regulatory requirements. For example, as part of our efforts to help cohort patients in line with guidance from the CDC, we have sought waivers of certain regulatory requirements related to the survey and acceleration of new clinics and entered into agreements with other kidney care providers to help ensure that patients can receive dialysis in an outpatient setting rather than a hospital. We operate in a complex and highly-regulated environment, and the novel nature of these arrangements may increase our exposure to legal, regulatory and clinical risks.

Each of the foregoing and other continued disruptions to our business as a result of the COVID-19 pandemic could have a material adverse impact on our patients, teammates, physician partners, suppliers, business, operations, financial condition, results of operations, cash flows, liquidity and reputation. In addition, the COVID-19 pandemic heightens many of the other risks and uncertainties discussed in our Form 10‑K.

46

Item 2.        Unregistered Sales of Equity Securities and Use of Proceeds

Share repurchases

The following table summarizes our repurchases of our common stock during three months ended March 31, 2020:

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)
January 1-31, 2020	290,904	$	74.92	290,904	$	1,682
February 1-29, 2020	376,186	78.78		376,186	$	1,652
March 1-31, 2020	3,385,208	74.36		3,385,208	$	1,400
	4,052,298	$	74.81	4,052,298

Effective as of the close of business on November 4, 2019, the Board terminated all remaining prior share repurchase authorizations available to us and approved a new share repurchase authorization of $2.0 billion. As of May 4, 2020, we had a total of $1.4 billion available under the current repurchase authorization for additional share repurchases. Although this share repurchase authorization does not have an expiration date, we remain subject to share repurchase limitations, including under the terms of the current senior secured credit facilities and the indentures governing our senior notes.

Items 3, 4 and 5 are not applicable

47

Item 6.    Exhibits

Exhibit
Number
10.1	Non-Employee Director Compensation Policy. *ü
31.1	Certification of the Chief Executive Officer, dated May 5, 2020, pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. ü
31.2	Certification of the Chief Financial Officer, dated May 5, 2020, pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. ü
32.1	Certification of the Chief Executive Officer, dated May 5, 2020, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ü
32.2	Certification of the Chief Financial Officer, dated May 5, 2020, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ü
101.INS	XBRL Instance Document - the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. ü
101.SCH	Inline XBRL Taxonomy Extension Schema Document. ü
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document. ü
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document. ü
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document. ü
101.PRE	Inline XBRL Taxonomy Extension Presentation, Linkbase Document. ü
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). ü

*	Management contract or executive compensation plan or arrangement.
ü	Filed or furnished herewith.

48

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

DAVITA INC.
BY:	/s/    JOHN D. WINSTEL
	John D. Winstel
	Chief Accounting Officer*

Date: May 5, 2020

* Mr. Winstel has signed both on behalf of the Registrant as a duly authorized officer and as the Registrant’s principal accounting officer.

49

EX-10.1

EXHIBIT 10.1

DAVITA INC.

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

(Effective May 1, 2020)

ARTICLE I

PURPOSE

The primary purposes of the DaVita Inc. (the “Company”) Non-Employee Director Compensation Policy (this “Policy”) are as follows:

• to pay differentially higher compensation for higher levels of work, responsibility and performance;

• to provide a compensation structure that will attract highly competent candidates; and

• to provide a significant portion of compensation in the form of equity-based awards to further align non-employee director compensation with shareholder interests.

All references to “Director” in this Policy shall mean a member of the Company’s Board of Directors (the “Board”) who is not employed by the Company.

ARTICLE II

BASE ANNUAL RETAINER

Each Director shall receive a base annual retainer (the “Base Annual Retainer”) of up to Two Hundred Seventy Thousand Dollars ($270,000) per fiscal year as follows:

2.1Cash: Eighty Thousand Dollars ($80,000) to be paid in quarterly installments made within five business days of the last calendar day of each fiscal quarter.

2.2Direct Stock Issuances: One Hundred and Ninety Thousand Dollars ($190,000) to be paid in the form of direct stock issuances (“DSIs”). The DSIs shall be subject to the following terms and conditions (the “DSI Grant Terms”):

2.2.1Grant Date: The DSIs shall be granted in four equal installments on March 15, May 15, August 15, and November 15 (each, a “Grant Date”), subject to the Director’s continued service through the applicable Grant Date; provided, however, that a Grant Date will be accelerated in the event of a Director’s separation from the Board prior to a specified Grant Date in accordance with the applicable proration provisions in this Policy.

2.2.2Amount: The number of DSIs to be granted on each Grant Date shall be the nearest whole number of shares as determined by dividing Forty-Seven Thousand and Five Hundred Dollars ($47,500) by the closing market price of the Company’s common stock as listed on the New York Stock Exchange on the Grant Date, and if the Grant Date does not fall on a New York Stock Exchange trading day, then on the last trading day prior to the Grant Date.

2.3Proration: The quarterly payments of the Base Annual Retainer shall be prorated, as applicable, based on the days of service on the Board during the applicable calendar quarter.

1

ARTICLE III

ANNUAL RETAINER PREMIUM - LEAD INDEPENDENT DIRECTOR

A Director serving as the Lead Independent Director of the Board shall be paid a premium (the “Lead Director Premium”) of up to One Hundred Twenty-Five Thousand Dollars ($125,000) per fiscal year as follows:

3.1Cash: Thirty-Seven Thousand and Five Hundred Dollars ($37,500) to be paid in quarterly installments made within five business days of the last calendar day of each fiscal quarter.

3.2Direct Share Issuances: Eighty-Seven Thousand and Five Hundred Dollars ($87,500) to be paid in the form of DSIs to be granted in accordance with, and subject to, the DSI Grant Terms provided in Section 2.2 above. For the avoidance of doubt:

3.2.1Grant Date: The DSI component of the Lead Director Premium shall be granted in four equal quarterly installments on a Grant Date, subject to the Lead Independent Director’s continued service in that role through the applicable Grant Date.

3.2.2Amount: The number of DSIs to be granted as part of the Lead Director Premium on each Grant Date shall be the nearest whole number of shares as determined by dividing Twenty-One Thousand Eight Hundred and Seventy-Five Dollars ($21,875) by the closing market price of the Company’s common stock as listed on the New York Stock Exchange on the Grant Date, and if the Grant Date does not fall on a New York Stock Exchange trading day, then on the last trading day prior to the Grant Date.

3.3Proration: The quarterly payments of the Lead Director Premium shall be prorated, as applicable, based on the days of service as Lead Independent Director during the applicable calendar quarter.

ARTICLE IV

ANNUAL RETAINER PREMIUM - INDEPENDENT CHAIR

A Director serving as the independent Chair of the Board (the “Independent Chair”) shall be paid a premium (the “Independent Chair Premium”) of up to One Hundred and Seventy-Five Thousand Dollars ($175,000) cash per fiscal year to be paid in quarterly installments made within five business days of the last calendar day of each fiscal quarter, with such quarterly payments prorated based on the days of service as the Independent Chair during the applicable calendar quarter.

ARTICLE V

ANNUAL RETAINER PREMIUM - COMMITTEE CHAIRS

A Director serving as a Chair of a standing committee (“Committee”) of the Board shall be paid a cash premium (the “Chair Premium”) per fiscal year as follows:

5.1Chairs of theAudit, Compensation, and Compliance and Quality Committees: Fifty Thousand Dollars ($50,000) cash to be paid each in quarterly installments made within five business days of the last calendar day of each fiscal quarter, with such quarterly payment prorated based on the days of service as the Chair of the applicable Committee during the applicable calendar quarter.

5.2Chair of the Nominating and Governance Committee: No Chair Premium will be paid for services provided as Chair of the Nominating and Governance Committee through and including June 10, 2020. Effective June 11, 2020, the Chair Premium for the Chair of the Nominating and Governance Committee will be Thirty-Five Thousand Dollars ($35,000) cash to be paid in quarterly installments made within five

2

business days of the last calendar day of each fiscal quarter, with such quarterly payment prorated based on the days of service as the Chair of the Nominating and Governance Committee during the applicable calendar quarter.

ARTICLE VI

MEETING FEES

A Director shall be paid the following fees for his or her in person or telephonic attendance of Board and Committee meetings as follows:

6.1Board: Two Thousand and Five Hundred Dollars ($2,500) cash for attendance of: (1) special Board meetings held in person, irrespective of length; and (2) special Board meetings held telephonically that last approximately one hour or more. No additional compensation shall be provided for attendance of regular Board meetings.

6.2Committees/Sub-Committees: Two Thousand and Five Hundred Dollars ($2,500) cash for attendance of the following Committee meetings, provided that the Director is a member of such Committee at the time of such meeting: (1) regular or special Committee meetings held in person; and (2) regular or special Committee meetings held telephonically that last approximately one hour or more. Notwithstanding the foregoing, each member of the Audit Committee shall be paid Two Thousand and Five Hundred Dollars ($2,500) cash for his or her in person or telephonic attendance of each Audit Committee meeting related to quarterly earnings releases, regardless of the duration of such meeting.

6.2.1Committee MeetingAttendance by Non-Members. Notwithstanding anything herein to the contrary, a Director shall be paid Two Thousand and Five Hundred Dollars ($2,500) cash for attendance of a regular or special meeting of a Committee of which such Director is not a member, provided that such Director’s attendance was made at the request of the Chair of such Committee and provided further that such payment is made in accordance with the other requirements of this Section 6.2.

6.2.2New Committee Members: A Director attending a Committee meeting held earlier on the same day of a Board meeting during which action was taken by the Board to appoint him or her to such Committee, will be eligible to receive Committee meeting fees as described under this Section 6.2.

ARTICLE VII

EXPENSE REIMBURSEMENT AND COMPENSATION

FOR ADDITIONAL TIME EXPENDED

7.1Expense Reimbursement. Each Director shall be reimbursed for his or her reasonable out-of-pocket business expenses incurred in connection with attending meetings of the Board or its Committees or in connection with other Board-related business or activities.

7.2Compensation for Additional Time. Each Director shall be compensated in cash on a “per diem,” hourly or other basis at a rate that is reasonable and fair to the Company as determined in the discretion of the Lead Independent Director or Independent Chair (or, should the matter be referred to them, the Board or the Compensation Committee),for significant time spent outside of Board or Committee meetings for meetings or activities outside the scope of normal Board duties, including, without limitation, director training, meeting with Company management or external auditors, interviewing director candidates or other activities deemed necessary by the Lead Independent Director or Independent Chair (or should the matter be referred to them, the Compensation Committee or the entire Board). Any dollar amounts set for a particular unit of

3

time shall be paid on a pro rata basis for time expended that is less than the full unit of time for which a rate was set. The Lead Independent Director or Independent Chair shall oversee requests for compensation under this Article VII.

4

EX-31.1

EXHIBIT 31.1

SECTION 302 CERTIFICATION

I, Javier J. Rodriguez, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of DaVita Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/ JAVIER J. RODRIGUEZ

Javier J. Rodriguez

Chief Executive Officer

Date: May 5, 2020

EX-31.2

EXHIBIT 31.2

SECTION 302 CERTIFICATION

I, Joel Ackerman, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of DaVita Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/ Joel Ackerman

Joel Ackerman

Chief Financial Officer and Treasurer

Date: May 5, 2020

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of DaVita Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Periodic Report”), I, Javier J. Rodriguez, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Periodic Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/ JAVIER J. RODRIGUEZ

Javier J. Rodriguez

Chief Executive Officer

May 5, 2020

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of DaVita Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Periodic Report”), I, Joel Ackerman, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Periodic Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/ Joel Ackerman

Joel Ackerman

Chief Financial Officer and Treasurer

May 5, 2020

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Leases Lease Expense Components (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating lease cost:
Fixed lease expense	$ 134,733	$ 128,110
Variable lease expense	30,059	28,571
Finance lease cost:
Amortization of leased assets	6,077	5,826
Interest on lease liabilities	3,603	3,775
Net Lease Cost	$ 174,472	$ 166,282

XML

Condensed consolidating financial statements Additional Information (Details) $ in Thousands	Aug. 12, 2019 USD ($)
New Credit Agreement
Debt Instrument [Line Items]
Secured Debt	$ 5,500,000

XML

Earnings per share Earnings per share - Reconciliation of numberators and denominators used to calculate basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerators:
Net income from continuing operations attributable to DaVita Inc.	$ 229,613	$ 120,254
Net income from discontinued operations attributable to DaVita Inc.	9,980	29,035
Net income (loss) attributable to DeVita Inc. for earnings per share calculation	$ 239,593	$ 149,289
Weighted average shares outstanding during period	124,902,000	166,388,000
Assumed incremental shares from stock plans	1,993,000	393,000
Weighted average shares for diluted earnings per share calculation	126,894,847	166,780,657
Basic:
Basic net income from continuing operations per share	$ 1.84	$ 0.72
Basic net income (loss) from discontinued operations per share	0.08	0.18
Basic net income per share attributable to DaVita Inc.	1.92	0.90
Diluted:
Diluted net income from continuing operations per share	1.81	0.72
Diluted net income from discontinued operations per share	0.08	0.18
Diluted net income per share attributable to DaVita Inc.	$ 1.89	$ 0.90
Anti-dilutive stock-settled awards excluded from calculation	3,207,000	6,150,000

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Acquisitions and divestitures (Tables)

3 Months Ended

Mar. 31, 2020

Business Acquisition [Line Items]

Schedule of Business Acquisitions by Acquisition, Contingent Consideration

The following is a reconciliation of changes in contingent earn-out obligations for the three months ended March 31, 2020:

Balance at December 31, 2019	$	24,586
Contingent earn-out obligations associated with acquisitions	2,672
Foreign currency translation adjustment for contingent earn-out obligations	(4,874		)
Remeasurement of fair value for contingent earn-out obligations	2
Balance at March 31, 2020	$	22,386

Dialysis and other businesses

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the assets acquired and liabilities assumed in these transactions at their estimated acquisition date fair values: 

Current assets	$	7,412
Property and equipment	8,892
Intangible and other long-term assets	6,107
Goodwill	26,770
Deferred income taxes	1,513
Current liabilities	(10,705		)
	$	39,989

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Changes in DaVita Inc.'s ownership interest in consolidated subsidiaries (Tables)

3 Months Ended

Mar. 31, 2020

Noncontrolling Interest [Abstract]

Effects of Changes in DaVita Inc's Ownership Interest on Company's Equity

The effects of changes in DaVita Inc.’s ownership interests in consolidated subsidiaries on the Company’s consolidated equity were as follows: 

	Three months ended March 31,
	2020			2019
Net income attributable to DaVita Inc.	$	239,593		$	149,289
Changes in paid-in capital for:
Purchases of noncontrolling interests	(445		)	(2,206		)
Net transfers to noncontrolling interests	(445		)	(2,206		)
Net income attributable to DaVita Inc., net of transfers to noncontrolling interests	$	239,148		$	147,083

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Variable interest entities

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable interest entities

Variable interest entities (VIEs)

At March 31, 2020, these condensed consolidated financial statements include total assets of VIEs of $320,505 and total liabilities and noncontrolling interests of VIEs to third parties of $234,915. There have been no material changes in the nature of the Company's arrangements with VIEs or its judgments concerning them from those described in Note 23 to the Company's consolidated financial statements included in the 10-K.

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Share repurchases

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Share repurchases

Share repurchases

The following table summarizes the Company's repurchases of its common stock during the three months ended March 31, 2020 and 2019:

	Three months ended March 31, 2020					Three months ended March 31, 2019
	Shares repurchased	Amount paid		Average paid per share		Shares repurchased	Amount paid		Average paid per share
Open market repurchases	4,052	$	303,139	$	74.81	—	$	—	$	—

The Company did not repurchase any shares subsequent to March 31, 2020 through May 4, 2020.

Effective as of the close of business on November 4, 2019, the Board terminated all remaining prior share repurchase authorizations available to the Company and approved a new share repurchase authorization of $2,000,000. As of May 4, 2020, the Company had a total of $1,400,356 available under the current repurchase authorization for additional share repurchases. Although this share repurchase authorization does not have an expiration date, the Company remains subject to share repurchase limitations, including under the terms of its current senior secured credit facilities and the indentures governing its senior notes.

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New accounting standards

3 Months Ended

Mar. 31, 2020

Accounting Changes and Error Corrections [Abstract]

New accounting standards

New accounting standards

New standards recently adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU amend the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The amendments in this ASU became effective for the Company beginning on January 1, 2020 and were applied using a modified retrospective basis. The adoption of ASU No. 2016-13 did not have a material impact on the Company's consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement. The applicable amendments in this ASU remove requirements for disclosures concerning transfers between fair value measurement levels 1, 2 and 3 and disclosures concerning valuation processes for level 3 fair value measurements. The applicable amendments in this ASU also add a requirement to separately disclose the changes in unrealized gains and losses included in other comprehensive income for the reporting period for level 3 items measured at fair value on a recurring basis, and require disclosure of the range and weighted average of significant unobservable inputs used to develop level 3 fair value measurements. The amendments in this ASU became effective for the Company beginning on January 1, 2020 and were applied on a prospective basis. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements when adopted January 1, 2020.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted this ASU as of January 1, 2020, using the prospective transition approach, which allows the Company to change the accounting method without restating prior periods or booking cumulative adjustments. The adoption of ASU No. 2018-15 did not have a material impact on the Company's consolidated financial statements.

New standards not yet adopted

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU No. 2019-12 attempts to simplify aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU No. 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. Early adoption is permitted for all entities. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU No. 2020-04 provides optional expedients and exceptions for applying U.S. generally accepted accounting principles (GAAP) to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. The amendments in this ASU were effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.

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CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 1,381,764	$ 1,102,372
Restricted cash and equivalents	106,724	106,346
Short-term investments	9,376	11,572
Accounts receivable, net	1,820,132	1,795,598
Inventories	95,685	97,949
Other receivables	519,081	489,695
Prepaid and other current assets	59,853	66,866
Income tax receivable	31,324	19,772
Total current assets	4,023,939	3,690,170
Property and equipment, net of accumulated depreciation of $4,092,166 and $3,969,566, respectively	3,445,423	3,473,384
Operating lease right-of-use asset	2,847,776	2,830,047
Intangible assets, net of accumulated amortization of $84,643 and $81,922, respectively	117,953	135,684
Equity method and other investments	254,499	241,983
Long-term investments	34,657	36,519
Other long-term assets	94,030	115,972
Goodwill	6,778,023	6,787,635
Total assets	17,596,300	17,311,394
LIABILITIES AND EQUITY
Accounts payable	340,092	403,840
Other liabilities	757,784	756,174
Accrued compensation and benefits	596,999	695,052
Current portion of operating lease liabilities	356,033	343,912
Current portion of long-term debt	146,318	130,708
Income tax payable	23,520	42,412
Total current liabilities	2,220,746	2,372,098
Long-term operating lease liabilities	2,734,370	2,723,800
Long-term debt	8,442,136	7,977,526
Other long-term liabilities	161,940	160,809
Deferred income taxes	675,728	577,543
Total liabilities	14,234,920	13,811,776
Commitments and contingencies:
Noncontrolling interests subject to put provisions	1,228,036	1,180,376
Equity:
Preferred stock ($0.001 par value, 5,000,000 shares authorized; none issued)	0	0
Common stock ($0.001 par value, 450,000,000 shares authorized; 125,857,178 and 121,804,880 shares issued and outstanding at March 31, 2020, respectively and 125,842,853 shares issued and outstanding at December 31, 2019	126	126
Additional paid-in capital	720,053	749,043
Retained earnings	1,671,331	1,431,738
Treasury Stock, Value	(303,139)	0
Accumulated other comprehensive (loss) income	(140,525)	(47,498)
Total DaVita Inc. shareholders' equity	1,947,846	2,133,409
Noncontrolling interests not subject to put provisions	185,498	185,833
Total equity	2,133,344	2,319,242
Total liabilities and equity	$ 17,596,300	$ 17,311,394

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Share repurchases Share Repurchases (Tables)

3 Months Ended

Mar. 31, 2020

Treasury Stock, Value [Abstract]

Class of Treasury Stock [Table Text Block]

The following table summarizes the Company's repurchases of its common stock during the three months ended March 31, 2020 and 2019:

	Three months ended March 31, 2020					Three months ended March 31, 2019
	Shares repurchased	Amount paid		Average paid per share		Shares repurchased	Amount paid		Average paid per share
Open market repurchases	4,052	$	303,139	$	74.81	—	$	—	$	—

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Condensed consolidated interim financial statements Condensed consolidaed interim financial statements (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Condensed consolidated interim financial statements

The unaudited condensed consolidated interim financial statements included in this report are prepared by the Company. In the opinion of management, all adjustments necessary for a fair presentation of the results of operations are reflected in these condensed consolidated interim financial statements. All significant intercompany accounts and transactions have been eliminated. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The most significant estimates and assumptions underlying these financial statements and accompanying notes generally involve revenue recognition and accounts receivable, impairments of goodwill, accounting for income taxes, certain fair value estimates and loss contingencies. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results for the full year. These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (10-K). Prior year balances and amounts have been reclassified to conform to the current year presentation. The Company has evaluated subsequent events through the date these condensed consolidated interim financial statements were issued and has included all necessary adjustments and disclosures.

Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of common shares outstanding. Weighted average common shares outstanding include restricted stock unit awards that are no longer subject to forfeiture because the recipients have satisfied either the explicit vesting terms or retirement eligibility requirements.

Diluted earnings per share includes the dilutive effect of outstanding stock-settled stock appreciation rights and unvested stock units as computed under the treasury stock method.

Short-term and Long-term Investments

Debt securities: The Company's short-term debt investments are principally bank certificates of deposit with contractual maturities longer than three months but shorter than one year. These debt securities are accounted for as held to maturity and recorded at amortized cost, which approximated their fair values at March 31, 2020 and December 31, 2019.

Equity securities: The Company's equity investments in mutual funds and common stock are held within a trust to fund existing obligations associated with several of the Company’s non-qualified deferred compensation plans.

Income Taxes

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense.

Long-term debt

The cap agreements are designated as cash flow hedges and, as a result, changes in the fair values of these cap agreements are reported in other comprehensive income. The amortization of the original cap premium is recognized as a component of debt expense on a straight-line basis over the terms of the cap agreements.

Long-term incentive compensation

The Company’s stock-based compensation expense for stock-settled awards is measured at the estimated fair value of awards on the date of grant and recognized on a cumulative straight-line basis over the vesting terms of the awards unless the stock awards are based on non-market based performance metrics, in which case expense is adjusted for the expected ultimate shares to be issued as of the end of each reporting period. Stock-based compensation expense for cash-settled awards is based on their estimated fair values as of the end of each reporting period. The expense for all stock-based awards is recognized net of expected forfeitures.

Accumulated other comprehensive Income

The reclassification of net cap realized losses into income are recorded as debt expense in the corresponding consolidated statements of income.

Fair Value of Financial Instruments

Interest rate cap agreements are recorded at fair value estimated from valuation models utilizing the income approach and commonly accepted valuation techniques that use inputs from closing prices for similar assets and liabilities in active markets as well as other relevant observable market inputs at quoted intervals such as current interest rates, forward yield curves, implied volatility and credit default swap pricing. The Company does not believe the ultimate amount that could be realized upon settlement of these interest rate cap agreements would be materially different from the fair value estimates currently reported. See Note 8 to these condensed consolidated financial statements for further discussion.

The estimated fair value measurements of contingent earn-out obligations are primarily based on unobservable inputs, including projected earnings before interest, taxes, depreciation, and amortization (EBITDA) and revenue. The estimated fair value of these contingent earn-out obligations is remeasured as of each reporting date and could fluctuate based upon any significant changes in key assumptions, such as changes in the Company's credit risk adjusted rate that is used to discount obligations to present value.

New Accounting Standards

New standards recently adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU amend the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The amendments in this ASU became effective for the Company beginning on January 1, 2020 and were applied using a modified retrospective basis. The adoption of ASU No. 2016-13 did not have a material impact on the Company's consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement. The applicable amendments in this ASU remove requirements for disclosures concerning transfers between fair value measurement levels 1, 2 and 3 and disclosures concerning valuation processes for level 3 fair value measurements. The applicable amendments in this ASU also add a requirement to separately disclose the changes in unrealized gains and losses included in other comprehensive income for the reporting period for level 3 items measured at fair value on a recurring basis, and require disclosure of the range and weighted average of significant unobservable inputs used to develop level 3 fair value measurements. The amendments in this ASU became effective for the Company beginning on January 1, 2020 and were applied on a prospective basis. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements when adopted January 1, 2020.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted this ASU as of January 1, 2020, using the prospective transition approach, which allows the Company to change the accounting method without restating prior periods or booking cumulative adjustments. The adoption of ASU No. 2018-15 did not have a material impact on the Company's consolidated financial statements.

New standards not yet adopted

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU No. 2019-12 attempts to simplify aspects of accounting for franchise taxes and enacted changes in tax laws or rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU No. 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. Early adoption is permitted for all entities. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU No. 2020-04 provides optional expedients and exceptions for applying U.S. generally accepted accounting principles (GAAP) to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. The amendments in this ASU were effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.

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Condensed consolidated interim financial statements Condensed consolidated interim financial statements

3 Months Ended

Mar. 31, 2020

Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Condensed consolidated interim financial statements

The unaudited condensed consolidated interim financial statements included in this report are prepared by the Company. In the opinion of management, all adjustments necessary for a fair presentation of the results of operations are reflected in these condensed consolidated interim financial statements. All significant intercompany accounts and transactions have been eliminated. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The most significant estimates and assumptions underlying these financial statements and accompanying notes generally involve revenue recognition and accounts receivable, impairments of goodwill, accounting for income taxes, certain fair value estimates and loss contingencies. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results for the full year. These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (10-K). Prior year balances and amounts have been reclassified to conform to the current year presentation. The Company has evaluated subsequent events through the date these condensed consolidated interim financial statements were issued and has included all necessary adjustments and disclosures.

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Equity method and other investments Equity Method and Other Investments (Tables)

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The Company's equity method and other investments were comprised of the following:

	March 31, 2020		December 31, 2019
APAC joint venture	$	123,696	$	116,924
Other equity method partnerships	114,355		114,611
Adjusted cost method investments	16,448		10,448
	$	254,499	$	241,983

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Leases Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Leases

The majority of the Company’s facilities are leased under non-cancellable operating leases ranging in terms from five years to fifteen years and which contain renewal options of five years to ten years at the fair rental value at the time of renewal.

As of March 31, 2020 and December 31, 2019, assets recorded under finance leases were $257,750 and $247,246, respectively, and accumulated amortization associated with finance leases was $33,318 and $27,193, respectively, included in property and equipment, net, on the Company's consolidated balance sheet.

The components of lease expense were as follows:

Lease cost	Three months ended March 31, 2020		Three months ended March 31, 2019
Operating lease cost(1):
Fixed lease expense	$	134,733	$	128,110
Variable lease expense	30,059		28,571
Financing lease cost:
Amortization of leased assets	6,077		5,826
Interest on lease liabilities	3,603		3,775
Net lease cost	$	174,472	$	166,282

(1) Includes short-term lease expense and sublease income, which are immaterial.

Other information related to leases was as follows:

Other information	Three months ended March 31, 2020		Three months ended March 31, 2019
Gains on sale leasebacks, net	$	9,489	$	3,987
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	162,828	$	153,587
Operating cash flows from finance leases	$	5,178	$	5,661
Financing cash flows from finance leases	$	4,180	$	5,344
Net operating lease assets obtained in exchange for new or modified operating lease liabilities	$	101,473	$	45,034

Lease term and discount rate	March 31, 2020
Weighted average remaining lease term (years):
Operating leases	8.9
Finance leases	10.2
Weighted average discount rate:
Operating leases	4.0	%
Finance leases	5.3	%

Future minimum lease payments under non-cancellable leases as of March 31, 2020 were as follows:

	Operating leases			Finance leases
2020 (remainder of the year)	$	344,537		$	30,291
2021	505,417			34,177
2022	472,643			34,621
2023	426,485			34,700
2024	372,190			34,725
2025	320,079			34,549
Thereafter	1,248,317			153,800
Total future minimum lease payments	$	3,689,668		$	356,863
Less portion representing interest	(599,265		)	(81,771		)
Present value of lease liabilities	$	3,090,403		$	275,092

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Equity method and other investments

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Equity method and other investments

Equity method and other investments

The Company maintains equity method and minor adjusted cost method investments in the private securities of certain other healthcare and healthcare-related businesses. The Company classifies these investments as "Equity method and other investments" on its consolidated balance sheet.

The Company's equity method and other investments were comprised of the following:

	March 31, 2020		December 31, 2019
APAC joint venture	$	123,696	$	116,924
Other equity method partnerships	114,355		114,611
Adjusted cost method investments	16,448		10,448
	$	254,499	$	241,983

During the three months ended March 31, 2020 and 2019, the Company recognized equity investment income of $17,843 and $2,708, respectively, from equity method investments in nonconsolidated businesses. 

Equity investments in nonconsolidated businesses over which the Company maintains significant influence, but which do not have readily determinable fair values, are carried on the equity method. The Company's largest equity method investment is its ownership interest in DaVita Care Pte. Ltd. (the APAC joint venture, or APAC JV), which is 75%-owned by the Company and 25%-owned by its other noncontrolling investor. As described in Note 9 to the Company's consolidated financial statements included in the 10-K, the Company does not consolidate the APAC JV.

The Company's other equity method investments include legal entities over which the Company has significant influence but in which it does not maintain a controlling financial interest. Almost all of these are U.S. partnerships in the form of limited liability companies. The Company's ownership interests in these partnerships vary, but typically range from 30% to 50%. During the three months ended March 31, 2020 and 2019, there were no meaningful impairments or other valuation adjustments recognized on these investments.

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Segment reporting - Summary of Assets by Segment (Phantom) (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Equity method and other investments	$ 254,499	$ 241,983
U.S. dialysis and related lab services
Segment Reporting Information [Line Items]
Equity method and other investments	130,144	124,188
Other—Ancillary services and strategic initiatives
Segment Reporting Information [Line Items]
Equity method and other investments	$ 124,355	$ 117,795

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Acquisitions and divestitures Contingent Earn-out obligations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Business Combination, Contingent Consideration Arrangements [Abstract]
Contingent Earn-out Obligations, Beginning balance	$ 24,586
Contingent earn-out obligations associated with acquisitions	2,672
Foreign Currency Translation Adjustment For Contingent Earn Out Obligations	(4,874)
Remeasurement of fair value for contingent earn-out obligations	2
Contingent Earn-out Obligations, Ending balance	$ 22,386

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Held for Sale and Discontinued Operations Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended		12 Months Ended
	Jun. 19, 2019	Dec. 05, 2017	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Divestiture of Businesses	$ 4,465,476
Proceeds from Divestiture of Businesses, Net of Cash Divested	$ 3,824,509
Discontinued Operations, Held-for-sale | DMG held for sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business acquisition, Effective date of divestiture	Jun. 19, 2019
Purchase and Sale Agreement, Aggregate purchase price	$ 4,340,000
Business Acquisition, Date of Acquisition Agreement		Dec. 05, 2017
Gain (Loss) On Disposition Of Business Interests Before Tax					$ (23,022)
Coronavirus Aid Relief And Economic Security Act Additional Tax Benefit | Discontinued Operations, Held-for-sale | DMG held for sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Disposition of Business			$ 9,980	$ 0

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Changes in DaVita Inc.'s ownership interest in consolidated subsidiaries - Effects of Changes in DaVita Inc's Ownership Interest on Company's Equity (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Change Due to Net Income Attributable to Parent and Effects of Changes, Net [Abstract]
Net income attributable to DaVita Inc.	$ 239,593	$ 149,289
Changes in paid-in capital for:
Purchases of noncontrolling interests	(445)	(2,206)
Net transfers to noncontrolling interests	(445)	(2,206)
Net income attributable to DaVita Inc., net of transfers to noncontrolling interests	$ 239,148	$ 147,083

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Goodwill - Changes in Goodwill by Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Goodwill [Roll Forward]
Beginning balance	$ 6,787,635	$ 6,841,960	$ 6,841,960
Acquisitions	26,770		90,226
Impairment charges	0	(41,037)	(124,892)
Foreign currency and other adjustments	(34,833)		(19,659)
Divestitures	(1,549)
Ending balance	6,778,023		6,787,635
Goodwill, before accumulated impairment charges	6,926,507
Accumulated impairment charges	(148,484)
Ending balance	6,778,023		6,787,635
U.S. dialysis and related lab services
Goodwill [Roll Forward]
Beginning balance	6,287,100	6,275,004	6,275,004
Acquisitions	2,839		18,089
Impairment charges			0
Foreign currency and other adjustments	0		(5,993)
Divestitures	(1,549)
Ending balance	6,288,390		6,287,100
Goodwill, before accumulated impairment charges	6,288,390
Accumulated impairment charges	0
Ending balance	6,288,390		6,287,100
Other—Ancillary services and strategic initiatives
Goodwill [Roll Forward]
Beginning balance	500,535	$ 566,956	566,956
Acquisitions	23,931		72,137
Impairment charges			(124,892)
Foreign currency and other adjustments	(34,833)		(13,666)
Divestitures	0
Ending balance	489,633		500,535
Goodwill, before accumulated impairment charges	638,117
Accumulated impairment charges	(148,484)
Ending balance	$ 489,633		$ 500,535

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Investments in debt and equity securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investment Holdings [Line Items]
Debt securities	$ 8,190	$ 8,140
Investments in equity securities	35,843	39,951
Total	44,033	48,091
Debt securities, short-term investments	8,190	8,140
Total, short-term investments	9,376	11,572
Debt securities, long-term investments	0	0
Total, long-term investments	34,657	36,519
Certificates of deposit and other time deposits
Investment Holdings [Line Items]
Debt securities	8,190	8,140
Investments in equity securities	0	0
Total	8,190	8,140
Investments in mutual funds and common stock
Investment Holdings [Line Items]
Debt securities	0	0
Investments in equity securities	35,843	39,951
Total	35,843	39,951
Short-term Investments
Investment Holdings [Line Items]
Investments in equity securities	1,186	3,432
Long-term Investments
Investment Holdings [Line Items]
Investments in equity securities	$ 34,657	$ 36,519

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Long-term debt - Scheduled Maturities of Long-term Debt (Detail) $ in Thousands	Mar. 31, 2020 USD ($)
Debt Disclosure [Abstract]
2020 (remainder of the year)	$ 95,359
2021	170,056
2022	172,376
2023	224,727
2024	3,671,586
2025	61,951
Thereafter	$ 4,261,156

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Subsequent events (Notes)

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent events

ubsequent events

In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic, and the virus continues to spread throughout the world. As a caregiving organization, the Company is exposed to and will continue to be impacted by the effects of the COVID-19 pandemic. The Company has continued to provide essential, life-sustaining care for its patients during this public health crisis. The Company has also maintained business process continuity during the pandemic by enabling most back office teammates to work remotely, and as of the date of this report has not experienced any material issues in billing or cash collections. This transition combined with the Company's balance sheet has helped the Company to avoid any material deterioration of its liquidity position as a result of the COVID-19 crisis at this time.

The Company is closely monitoring the impact of the pandemic and the resulting economic downturn on all aspects of its business, including the impact on its patients, teammates, physician partners, suppliers, vendors and other business partners. We expect that the long-term impact of this public health crisis on the Company will be driven primarily by the severity and duration of the pandemic, the impact on our patient population, the pandemic’s impact on the U.S. and global economies and unemployment, and the timing, scope and effectiveness of federal, state and local governmental responses. At this time, the Company cannot reasonably estimate the ultimate impact the COVID-19 pandemic will have on its business, financial condition, results of operations, cash flows and liquidity, but the adverse impact could be material.

Under the CARES Act, in April 2020 the government distributed approximately $250,000 to the Company and its joint venture partners from the Public Health and Social Services Emergency Fund. These funds were only to be used for healthcare related expenses or lost revenues attributable to COVID-19. At this time, the Company has elected not to accept the funds available to it through this government financial support. The Company’s initial receipt of these payments constitutes a subsequent event and therefore had no effect on the Company's reported financial results or financial condition for the three months ended March 31, 2020.

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Revenue Recognition Revenue Recognition

3 Months Ended

Mar. 31, 2020

Text Block [Abstract]

Revenue Recognition [Text Block]

Revenue recognition

The following table summarizes the Company's segment revenues by primary payor source:

	For the three months ended
	March 31, 2020									March 31, 2019
	U.S. dialysis			Other - Ancillary services			Consolidated			U.S. dialysis			Other - Ancillary services			Consolidated
Dialysis patient service revenues:
Medicare and Medicare Advantage	$	1,502,222		$			$	1,502,222		$	1,493,516		$			$	1,493,516
Medicaid and Managed Medicaid	171,467						171,467			154,190						154,190
Other government	111,910			94,574			206,484			106,127			84,475			190,602
Commercial	825,582			39,467			865,049			788,413			33,388			821,801
Other revenues:
Medicare and Medicare Advantage				98,478			98,478						61,700			61,700
Medicaid and Managed Medicaid				366			366						6			6
Commercial				10,521			10,521						32,619			32,619
Other(1)	5,442			17,602			23,044			4,905			17,750			22,655
Eliminations of intersegment revenues	(32,242		)	(4,152		)	(36,394		)	(30,641		)	(3,336		)	(33,977		)
Total	$	2,584,381		$	256,856		$	2,841,237		$	2,516,510		$	226,602		$	2,743,112

(1) Other consists of management service fees earned in the respective Company line of business as well as other revenue from the Company's ancillary services.

The Company’s allowance for doubtful accounts related to performance obligations satisfied in years prior to January 1, 2018 was $4,422 and $8,328 as of March 31, 2020 and December 31, 2019, respectively.

There are significant uncertainties associated with estimating revenue, which generally take several years to resolve. These estimates are subject to ongoing insurance coverage changes, geographic coverage differences, differing interpretations of contract coverage and other payor issues, as well as patient issues including, without limitation, determination of applicable primary and secondary coverage, changes in patient insurance coverage and coordination of benefits. As these estimates are refined over time, both positive and negative adjustments to revenue are recognized in the current period.

Dialysis patient service revenues. Revenues are recognized based on the Company’s estimate of the transaction price the Company expects to collect as a result of satisfying its performance obligations. Dialysis patient service revenues are recognized in the period services are provided based on these estimates. Revenues consist primarily of payments from government and commercial health plans for dialysis services provided to patients. A usual and customary fee schedule is maintained for the Company’s dialysis treatments and related lab services; however, actual collectible revenue is normally recognized at a discount from the fee schedule.

Other revenues. Other revenues consist of fees for management and administrative support services provided to outpatient dialysis centers that the Company does not own or in which the Company owns a noncontrolling interest, revenues associated with the Company's non-dialysis ancillary services, and administrative and management support services to certain non-dialysis joint ventures in which the Company owns a noncontrolling interest.

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Investments in debt and equity securities (Tables)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

The Company’s short-term and long-term debt and equity investments consist of the following:

	March 31, 2020						December 31, 2019
	Debt securities		Equity securities		Total		Debt securities		Equity securities		Total
Certificates of deposit and other time deposits	$	8,190	$	—	$	8,190	$	8,140	$	—	$	8,140
Investments in mutual funds and common stock	—		35,843		35,843		—		39,951		39,951
	$	8,190	$	35,843	$	44,033	$	8,140	$	39,951	$	48,091
Short-term investments	$	8,190	$	1,186	$	9,376	$	8,140	$	3,432	$	11,572
Long-term investments	—		34,657		34,657		—		36,519		36,519
	$	8,190	$	35,843	$	44,033	$	8,140	$	39,951	$	48,091

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CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 4,092,166	$ 3,969,566
Intangible assets, accumulated amortization	$ 84,643	$ 81,922
Preferred stock, par value (usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	450,000,000	450,000,000
Common stock, shares issued (in shares)	125,857,178	125,842,853
Common stock, shares outstanding (in shares)	121,804,880	125,842,853
Treasury Stock, Common, Shares	4,052,298	0

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Leases Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Lease Expense Components

The components of lease expense were as follows:

Lease cost	Three months ended March 31, 2020		Three months ended March 31, 2019
Operating lease cost(1):
Fixed lease expense	$	134,733	$	128,110
Variable lease expense	30,059		28,571
Financing lease cost:
Amortization of leased assets	6,077		5,826
Interest on lease liabilities	3,603		3,775
Net lease cost	$	174,472	$	166,282

(1)

Includes short-term lease expense and sublease income, which are immaterial.

Leases Other Information

Other information related to leases was as follows:

Other information	Three months ended March 31, 2020		Three months ended March 31, 2019
Gains on sale leasebacks, net	$	9,489	$	3,987
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	162,828	$	153,587
Operating cash flows from finance leases	$	5,178	$	5,661
Financing cash flows from finance leases	$	4,180	$	5,344
Net operating lease assets obtained in exchange for new or modified operating lease liabilities	$	101,473	$	45,034

Lease term and discount rate	March 31, 2020
Weighted average remaining lease term (years):
Operating leases	8.9
Finance leases	10.2
Weighted average discount rate:
Operating leases	4.0	%
Finance leases	5.3	%

Schedule Of Minimum Lease Payments

Future minimum lease payments under non-cancellable leases as of March 31, 2020 were as follows:

	Operating leases			Finance leases
2020 (remainder of the year)	$	344,537		$	30,291
2021	505,417			34,177
2022	472,643			34,621
2023	426,485			34,700
2024	372,190			34,725
2025	320,079			34,549
Thereafter	1,248,317			153,800
Total future minimum lease payments	$	3,689,668		$	356,863
Less portion representing interest	(599,265		)	(81,771		)
Present value of lease liabilities	$	3,090,403		$	275,092

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Document and Entity Information - shares shares in Millions	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	1-14106
Entity Registrant Name	DAVITA INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0354549
Entity Address, Address Line One	2000 16th Street
Entity Address, City or Town	Denver,
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	720
Local Phone Number	631-2100
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	DVA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		121.8
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000927066
Current Fiscal Year End Date	--12-31

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Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

The majority of the Company’s revenues are from government programs and may be subject to adjustment as a result of: (i) examination by government agencies or contractors, for which the resolution of any matters raised may take extended periods of time to finalize; (ii) differing interpretations of government regulations by different Medicare contractors or regulatory authorities; (iii) differing opinions regarding a patient’s medical diagnosis or the medical necessity of services provided; and (iv) retroactive applications or interpretations of governmental requirements. In addition, the Company’s revenues from commercial payors may be subject to adjustment as a result of potential claims for refunds, as a result of government actions or as a result of other claims by commercial payors.

The Company operates in a highly regulated industry and is a party to various lawsuits, demands, claims, qui tam suits, governmental investigations and audits (including, without limitation, investigations or other actions resulting from its obligation to self-report suspected violations of law) and other legal proceedings. The Company records accruals for certain legal proceedings and regulatory matters to the extent that the Company determines an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. As of March 31, 2020 and December 31, 2019, the Company’s total recorded accruals with respect to legal proceedings and regulatory matters, net of anticipated third party recoveries, were immaterial. While these accruals reflect the Company’s best estimate of the probable loss for those matters as of the dates of those accruals, the recorded amounts may differ materially from the actual amount of the losses for those matters, and any anticipated third party recoveries for any such losses may not ultimately be recoverable. Additionally, in some cases, no estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because of the inherently unpredictable nature of legal proceedings and regulatory matters, which also may be impacted by various factors, including, without limitation, that they may involve indeterminate claims for monetary damages or may involve fines, penalties or non-monetary remedies; present novel legal theories or legal uncertainties; involve disputed facts; represent a shift in regulatory policy; are in the early stages of the proceedings; or may result in a change of business practices. Further, there may be various levels of judicial review available to the Company in connection with any such proceeding.

The following is a description of certain lawsuits, claims, governmental investigations and audits and other legal proceedings to which the Company is subject.

Governmental Inquiries and Certain Related Proceedings

2016 U.S. Attorney Texas Investigation: In February 2016, DaVita Rx, LLC (DaVita Rx), a wholly-owned subsidiary of the Company, received a Civil Investigative Demand (CID) from the U.S. Attorney’s Office, Northern District of Texas. The government is conducting a federal False Claims Act (FCA) investigation concerning allegations that DaVita Rx presented or caused to be presented false claims for payment to the government for prescription medications, as well as an investigation into the Company’s relationships with pharmaceutical manufacturers. The CID covers the period from January 1, 2006 through the present. In connection with the Company’s ongoing efforts working with the government, the Company learned that a qui tam complaint had been filed covering some of the issues in the CID and practices that had been identified by the Company in a self-disclosure filed with the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services (HHS)

in February 2016. In December 2017, the Company finalized and executed a settlement agreement with the government and relators in the qui tam matter that included total monetary consideration of $63,700, as previously disclosed, of which $41,500 was an incremental cash payment and $22,200 was for amounts previously refunded, and all of which was previously accrued. The government’s investigation into certain of the Company's relationships with pharmaceutical manufacturers is ongoing, and in July 2018 the OIG served the Company with a subpoena seeking additional documents and information relating to those relationships. The Company is continuing to cooperate with the government in this investigation.

2017 U.S. Attorney Massachusetts Investigation: In January 2017, the Company was served with an administrative subpoena for records by the U.S. Attorney’s Office, District of Massachusetts, relating to an investigation into possible federal health care offenses. The subpoena covered the period from January 1, 2007 to the present, and sought documents relevant to charitable patient assistance organizations, particularly the American Kidney Fund (AKF), including documents related to efforts to provide patients with information concerning the availability of charitable assistance. The Department of Justice notified the court on July 23, 2019 of its decision to elect not to intervene in the matter of U.S. ex rel. David Gonzalez v. DaVita Healthcare Partners, et al. The complaint then was unsealed in the U.S. District Court, District of Massachusetts by order entered on August 1, 2019. The Department of Justice has confirmed that the complaint, which alleges violations of the FCA and various state false claims acts, was the basis of its investigation initiated in January 2017. The Company has not been served with the complaint.

2017 U.S. Attorney Colorado Investigation: In November 2017, the U.S. Attorney’s Office, District of Colorado informed the Company of an investigation it was conducting into possible federal healthcare offenses involving DaVita Kidney Care, as well as several of the Company’s wholly-owned subsidiaries. In addition to DaVita Kidney Care, the matter currently includes an investigation into DaVita Rx, DaVita Laboratory Services, Inc. (DaVita Labs), and RMS Lifeline Inc. (Lifeline). In each of August 2018 and May 2019, the Company received a CID pursuant to the FCA from the U.S. Attorney's Office relating to this investigation. The Company is continuing to cooperate with the government in this investigation.

2018 U.S. Attorney Florida Investigation: In March 2018, DaVita Labs received two CIDs from the U.S. Attorney’s Office, Middle District of Florida that were identical in nature but directed to the two different labs. According to the face of the CIDs, the U.S. Attorney’s Office is conducting an investigation as to whether the Company’s subsidiary submitted claims for blood, urine, and fecal testing, where there were insufficient test validation or stability studies to ensure accurate results, in violation of the FCA. In October 2018, DaVita Labs received a subpoena from the OIG in connection with this matter requesting certain patient records linked to clinical laboratory tests. On September 30, 2019, the U.S. Attorney’s Office notified the U.S. District Court, Middle District of Florida, of its decision not to elect to intervene at this time in the matter of U.S. ex rel. Lorne Holland, et al. v. DaVita Healthcare Partners, Inc., et al. The court then unsealed the complaint, which alleges violations of the FCA, by order dated the same day. In January 2020, the private party relators served the Company and DaVita Labs with an amended complaint. On February 24, 2020, the Company and DaVita Labs filed a motion to dismiss the amended complaint. The Company and DaVita Labs dispute these allegations and intend to defend this action accordingly.

2020 U.S. Attorney New Jersey Investigation: In March 2020, the U.S. Attorney’s Office, District of New Jersey served the Company with a subpoena and a CID relating to an investigation being conducted by that office and the U.S. Attorney’s Office, Eastern District of Pennsylvania. The subpoena and CID request information on several topics, including certain of the Company’s joint venture arrangements with physicians and physician groups, medical director agreements, and compliance with the Corporate Integrity Agreement. The Company is cooperating with the government in this investigation.

2020 California Department of Insurance Investigation: In April 2020, the California Department of Insurance sent the Company a Investigative Subpoena relating to an investigation being conducted by that office. The subpoena requests information on a number of topics, including but not limited to the Company’s communications with patients about insurance plans and financial assistance from the American Kidney Fund (AKF), analyses of the potential impact of patients’ decisions to change insurance providers, and documents relating to donations or contributions to the AKF. The Company is cooperating with the California Department of Insurance in this investigation.

* * *

Although the Company cannot predict whether or when proceedings might be initiated or when these matters may be resolved (other than as may be described above), it is not unusual for inquiries such as these to continue for a considerable period of time through the various phases of document and witness requests and on-going discussions with regulators and to develop over the course of time. In addition to the inquiries and proceedings specifically identified above, the Company

frequently is subject to other inquiries by state or federal government agencies and/or private civil qui tam complaints filed by relators. Negative findings or terms and conditions that the Company might agree to accept as part of a negotiated resolution of pending or future government inquiries or relator proceedings could result in, among other things, substantial financial penalties or awards against the Company, substantial payments made by the Company, harm to the Company’s reputation, required changes to the Company’s business practices, exclusion from future participation in the Medicare, Medicaid and other federal health care programs and, if criminal proceedings were initiated against the Company, members of its board of directors or management, possible criminal penalties, any of which could have a material adverse effect on the Company.

Shareholder and Derivative Claims

Peace Officers’ Annuity and Benefit Fund of Georgia Securities Class Action Civil Suit: On February 1, 2017, the Peace Officers’ Annuity and Benefit Fund of Georgia filed a putative federal securities class action complaint in the U.S. District Court for the District of Colorado against the Company and certain executives. The complaint covers the time period of August 2015 to October 2016 and alleges, generally, that the Company and its executives violated federal securities laws concerning the Company’s financial results and revenue derived from patients who received charitable premium assistance from an industry-funded non-profit organization. The complaint further alleges that the process by which patients obtained commercial insurance and received charitable premium assistance was improper and "created a false impression of DaVita’s business and operational status and future growth prospects." In November 2017, the court appointed the lead plaintiff and an amended complaint was filed on January 12, 2018. On March 27, 2018, the Company and various individual defendants filed a motion to dismiss. On March 28, 2019, the U.S. District Court for the District of Colorado denied the motion to dismiss. The Company answered the complaint on May 28, 2019. On January 31, 2020, the plaintiffs filed a motion for class certification that the Company intends to oppose. The Company disputes these allegations and intends to defend this action accordingly.

In re DaVita Inc. Stockholder Derivative Litigation: On August 15, 2017, the U.S. District Court for the District of Delaware consolidated three previously disclosed shareholder derivative lawsuits: the Blackburn Shareholder action filed on February 10, 2017, the Gabilondo Shareholder action filed on May 30, 2017, and the City of Warren Police and Fire Retirement System Shareholder action filed on June 9, 2017. The complaint covers the time period from 2015 to present and alleges, generally, breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, corporate waste, and misrepresentations and/or failures to disclose certain information in violation of the federal securities laws in connection with an alleged practice to direct patients with government-subsidized health insurance into private health insurance plans to maximize the Company’s profits. An amended complaint was filed in September 2017, and on December 18, 2017, the Company filed a motion to dismiss and a motion to stay proceedings in the alternative. On April 25, 2019, the court denied the Company's motion to dismiss. The Company answered the complaint on May 28, 2019. The Company disputes these allegations and intends to defend this action accordingly.

Other Proceedings

In addition to the foregoing, from time to time the Company is subject to other lawsuits, demands, claims, governmental investigations and audits and legal proceedings that arise due to the nature of its business, including, without limitation, contractual disputes, such as with payors, suppliers and others, employee-related matters and professional and general liability claims. From time to time, the Company also initiates litigation or other legal proceedings as a plaintiff arising out of contracts or other matters.

* * *

Other than as may be described above, the Company cannot predict the ultimate outcomes of the various legal proceedings and regulatory matters to which the Company is or may be subject from time to time, including those described in this Note 10 to these condensed consolidated financial statements, or the timing of their resolution or the ultimate losses or impact of developments in those matters, which could have a material adverse effect on the Company’s revenues, earnings and cash flows. Further, any legal proceedings or regulatory matters involving the Company, whether meritorious or not, are time consuming, and often require management’s attention and result in significant legal expense, and may result in the diversion of significant operational resources, or otherwise harm the Company’s business, results of operations, financial condition, cash flows or reputation.

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Goodwill

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

Changes in goodwill by reportable segments were as follows:

	U.S. dialysis			Other - Ancillary services			Consolidated
Balance at December 31, 2018	$	6,275,004		$	566,956		$	6,841,960
Acquisitions	18,089			72,137			90,226
Impairment charges	—			(124,892		)	(124,892		)
Foreign currency and other adjustments	(5,993		)	(13,666		)	(19,659		)
Balance at December 31, 2019	$	6,287,100		$	500,535		$	6,787,635
Acquisitions	2,839			23,931			26,770
Divestitures	(1,549		)	—			(1,549		)
Foreign currency and other adjustments	—			(34,833		)	(34,833		)
Balance at March 31, 2020	$	6,288,390		$	489,633		$	6,778,023
Goodwill	$	6,288,390		$	638,117		$	6,926,507
Accumulated impairment charges	—			(148,484		)	(148,484		)
	$	6,288,390		$	489,633		$	6,778,023

During the three months ended March 31, 2020, the Company did not recognize any goodwill impairment charges.

During the three months ended March 31, 2019, the Company recognized a $41,037 goodwill impairment charge in its Germany kidney care business. This charge resulted primarily from a change in relevant discount rates, as well as a decline in current and expected future patient census and an increase in the first quarter of 2019 and expected future costs, principally due to wage increases expected to result from recently announced legislation.

Developments, events, changes in operating performance and other changes in circumstances since the dates of the Company’s last annual goodwill impairment assessments have not caused management to believe it is more likely than not that the fair values of any of the Company's reporting units would be less than their respective carrying amounts as of March 31, 2020. Except as described in Note 10 to the 10-K, none of the Company's various other reporting units were considered at risk of significant goodwill impairment as of March 31, 2020. 

As dialysis treatments are an essential, life-sustaining service for patients who depend on them, the Company's operations have continued and are currently expected to continue during the novel coronavirus (COVID-19) pandemic. However, the ultimate impact of the dynamic and rapidly evolving COVID-19 pandemic on the Company will depend on future developments that are highly uncertain and difficult to predict, including among other things the severity and duration of the pandemic, the impact on our patient population, the pandemic’s impact on the U.S. and global economies and unemployment, and the timing, scope and effectiveness of governmental responses. While the Company does not currently expect a material adverse impact to its business as a result of this public health crisis, there can be no assurance that the COVID-19 pandemic will not have a material adverse impact on one or more of the Company's businesses.

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Segment reporting - Summary of Assets by Segment (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Total assets	$ 17,596,300	$ 17,311,394
U.S. dialysis and related lab services
ASSETS
Total assets	16,075,622	15,778,880
Other—Ancillary services and strategic initiatives
ASSETS
Total assets	$ 1,520,678	$ 1,532,514

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Acquisitions and divestitures - Aggregate Purchase Cost Allocations for Acquisitions (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 6,778,023	$ 6,787,635	$ 6,841,960
Dialysis and other businesses
Business Acquisition [Line Items]
Current assets	7,412
Property and equipment	8,892
Intangible and other long-term assets	6,107
Goodwill	26,770
Deferred income taxes	1,513
Current liabilities	(10,705)
Aggregate purchase price	$ 39,989

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Held for Sale and Discontinued Operations Schedule of Cash Flows of Discontinued Operations Related to DMG (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Net cash provided by operating activities from discontinued operations	$ 0	$ 68,240
Net cash used in investing activities from discontinued operations	$ 0	$ (22,809)

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Segment reporting Segment Reporting - Additional Information (Details)	Jun. 19, 2019
DMG held for sale | Discontinued Operations, Held-for-sale
Segment Reporting Information [Line Items]
Business acquisition, Effective date of divestiture	Jun. 19, 2019

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Long-term debt Schedule of Derivative Instruments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Interest Rate Cap Agreements Effective June 29, 2018
Derivative [Line Items]
Derivative, effective date	Jun. 29, 2018
Derivative, expiration date	Jun. 30, 2020
Interest Rate Cap Agreements Effective June 30, 2020
Derivative [Line Items]
Derivative, effective date	Jun. 30, 2020
Derivative, expiration date	Jun. 30, 2024
Term Loan Facility | Interest Rate Cap Agreements Effective June 29, 2018 | Maximum
Derivative [Line Items]
Notional amounts of interest rate agreements	$ 3,500,000,000
LIBOR plus interest rate margin	3.50%
Term Loan Facility | Interest Rate Cap Agreements Effective June 30, 2020 | Maximum
Derivative [Line Items]
Notional amounts of interest rate agreements	$ 3,500,000,000
LIBOR plus interest rate margin	2.00%
Cash Flow Hedging
Derivative [Line Items]
Amount of debt expense reclassified from accumulated OCI into income	$ 1,623,000	$ 1,606,000
Amount of unrecognized losses in OCI on interest rate cap agreements	(13,018,000)	$ (580,000)
Debt Expense | Cash Flow Hedging | Interest Rate Cap Agreements Effective June 29, 2018
Derivative [Line Items]
Amount of debt expense reclassified from accumulated OCI into income	2,163,000
Amount of unrecognized losses in OCI on interest rate cap agreements	0
Debt Expense | Cash Flow Hedging | Interest Rate Cap Agreements Effective June 30, 2020
Derivative [Line Items]
Amount of unrecognized losses in OCI on interest rate cap agreements	17,346,000
Other Long-term Assets | Interest Rate Cap Agreements Effective June 29, 2018
Derivative [Line Items]
Derivative asset, fair value, gross asset	0		$ 0
Other Long-term Assets | Interest Rate Cap Agreements Effective June 30, 2020
Derivative [Line Items]
Derivative asset, fair value, gross asset	$ 7,106,000		$ 24,452,000

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Goodwill - Narrative (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Goodwill [Line Items]
Goodwill impairment charges	$ 0	$ 41,037	$ 124,892
Other Reporting Units
Goodwill [Line Items]
Number of Reportable Segments | segment	0
GERMANY | Kidney Care
Goodwill [Line Items]
Goodwill impairment charges		$ 41,037

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Investments in debt and equity securities - Additional Information (Detail) - Investments in mutual funds and common stock - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Pre-tax Net Gain (Loss) recognized in Income Statement	$ (3,407)	$ 1,893
Pre-tax Realized Gain (Loss) on Securities Arising During Period	293	170
Net Increase Decrease In Unrealized Gains On Equity Securities	$ (3,700)	$ 1,723

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Other commitments - additional information (Detail) $ in Thousands	Mar. 31, 2020 USD ($)
Commitments to provide operating capital
Other Commitments [Line Items]
Other potential commitments to provide operating capital to several dialysis centers	$ 9,460

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Leases Leases Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases other information
Gains on sale leasebacks, net	$ 9,489	$ 3,987
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	162,828	153,587
Operating cash flows from finance leases	5,178	5,661
Financing cash flows from finance leases	4,180	5,344
Net operating lease assets obtained in exchange for new or modified operating lease liabilities	$ 101,473	$ 45,034
Leases term and discount rate
Operating Lease, Weighted Average Remaining Lease Term	8 years 10 months 24 days
Finance Lease, Weighted Average Remaining Lease Term	10 years 2 months 12 days
Operating Lease, Weighted Average Discount Rate, Percent	4.00%
Finance Lease
Leases term and discount rate
Finance Lease, Weighted Average Discount Rate, Percent	5.31%

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Subsequent events Additional Information (Details) $ in Thousands	1 Months Ended
	Apr. 30, 2020 USD ($)
Subsequent Event
Subsequent Event [Line Items]
Available Funds through the Provider Relief Fund under CARES Act	$ 250,000

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Accumulated other comprehensive (loss) income (Tables)

3 Months Ended

Mar. 31, 2020

Statement of Comprehensive Income [Abstract]

Comprehensive income

	For the three months ended March 31, 2020									For the three months ended March 31, 2019
	Interest rate cap agreements			Foreign currency translation adjustments			Accumulated other comprehensive loss			Interest rate cap agreements			Foreign currency translation adjustments			Accumulated other comprehensive loss
Beginning balance	$	(1,433	)	$	(46,065	)	$	(47,498	)	$	(8,961	)	$	(25,963	)	$	(34,924	)
Unrealized losses	(17,346		)	(81,632		)	(98,978		)	(781		)	(13,653		)	(14,434		)
Related income tax	4,328			—			4,328			201			—			201
	(13,018		)	(81,632		)	(94,650		)	(580		)	(13,653		)	(14,233		)
Reclassification into net income	2,163			—			2,163			2,163			—			2,163
Related income tax	(540		)	—			(540		)	(557		)	—			(557		)
	1,623			—			1,623			1,606			—			1,606
Ending balance	$	(12,828	)	$	(127,697	)	$	(140,525	)	$	(7,935	)	$	(39,616	)	$	(47,551	)

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Segment reporting (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Summary of Segment Net Revenues, Segment Operating Income (Loss) and Reconciliation of Segment Income to Consolidated Income Before Income Taxes

The following is a summary of segment net revenues, segment operating margin (loss), and a reconciliation of segment operating margin to consolidated income before income taxes:

	Three months ended March 31,
	2020			2019
Segment revenues:
U.S. dialysis
Dialysis patient service revenues:
External sources	$	2,579,240		$	2,511,826
Intersegment revenues	31,941			30,420
U.S. dialysis patient service revenues	2,611,181			2,542,246
Other revenues(1):
External sources	5,141			4,684
Intersegment revenues	301			221
Total U.S. dialysis revenues	2,616,623			2,547,151
Other—Ancillary services
Dialysis patient service revenues, net	134,041			117,863
Other external sources	122,815			108,739
Intersegment revenues	4,152			3,336
Total ancillary services revenues	261,008			229,938
Total net segment revenues	2,877,631			2,777,089
Elimination of intersegment revenues	(36,394		)	(33,977		)
Consolidated revenues	$	2,841,237		$	2,743,112
Segment operating margin (loss):
U.S. dialysis	$	491,607		$	416,981
Other—Ancillary services	(2,646		)	(57,630		)
Total segment operating margin	488,961			359,351
Reconciliation of segment operating margin to consolidated income from continuing operations before income taxes:
Corporate administrative support	(23,585		)	(18,844		)
Consolidated operating income	465,376			340,507
Debt expense	(88,603		)	(131,519		)
Debt refinancing charges	(2,948		)	—
Other income, net	(4,350		)	6,940
Consolidated income from continuing operations before income taxes	$	369,475		$	215,928

(1)

Includes management fee revenue from providing management and administrative services to dialysis ventures in which the Company owns a noncontrolling equity investment or which are wholly-owned by third parties.

Summary of Assets by Reportable Segment

A summary of assets by reportable segment was as follows:

	March 31, 2020		December 31, 2019
U.S. dialysis (including equity investments of $130,144 and $124,188, respectively)	$	16,075,622	$	15,778,880
Other—Ancillary services (including equity investments of $124,355 and $117,795, respectively)	1,520,678		1,532,514
Consolidated assets	$	17,596,300	$	17,311,394

Summary of Depreciation and Amortization Expense by Reportable Segment

Depreciation and amortization expense by reportable segment was as follows:

	Three months ended March 31,
	2020		2019
U.S. dialysis	$	146,300	$	140,780
Other—Ancillary services	8,379		7,748
	$	154,679	$	148,528

Summary of Expenditures for Property and Equipment by Reportable Segment

Expenditures for property and equipment by reportable segment were as follows:

	Three months ended March 31,
	2020		2019
U.S. dialysis	$	148,763	$	170,548
Other—Ancillary services	6,179		8,578
DMG—Discontinued operations	—		19,752
	$	154,942	$	198,878

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Revenue Recognition Revenue Recognition (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenue Recognition [Abstract]
Allowance for doubtful accounts	$ 4,422	$ 8,328

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Condensed consolidating financial statements

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed consolidating financial statements

Condensed consolidating financial statements

The following information is presented in accordance with Rule 3-10 of Regulation S-X. The operating and investing activities of the separate legal entities included in the Company’s condensed consolidated financial statements are fully interdependent and integrated. Revenues and operating expenses of the separate legal entities include intercompany charges for management and other administrative services. The Company’s senior notes are guaranteed by a substantial majority of its domestic subsidiaries as measured by revenue, income and assets. The subsidiary guarantors have guaranteed the senior notes on a joint and several basis. However, a subsidiary guarantor will be released from its obligations under its guarantee of the senior notes and the indentures governing the senior notes if, in general, there is a sale or other disposition of all or substantially all of the assets of such subsidiary guarantor, including by merger or consolidation, or a sale or other disposition of all of the equity interests in such subsidiary guarantor held by the Company and its restricted subsidiaries, as defined in the indentures; such subsidiary guarantor is designated by the Company as an unrestricted subsidiary, as defined in the indentures, or otherwise ceases to be a restricted subsidiary of the Company, in each case in accordance with the indentures; or such subsidiary guarantor no longer guarantees any other indebtedness, as defined in the indentures, of the Company or any of its restricted subsidiaries, except for guarantees that are contemporaneously released. The senior notes are not guaranteed by certain of the Company’s domestic subsidiaries, any of the Company’s foreign subsidiaries, or any entities that do not constitute subsidiaries within the meaning of the indentures, such as corporations in which the Company holds capital stock with less than a majority of the voting power, joint ventures and partnerships in which the Company holds less than a majority of the equity or voting interests, non-owned entities and third parties. Contemporaneously with the Company entering into its $5,500,000 senior secured credit agreement (the New Credit Agreement) on August 12, 2019 and pursuant to the indentures governing the Company’s senior notes, certain subsidiaries of the Company were released from their guarantees of the Company's senior notes such that, after that release, the remaining subsidiary guarantors of the senior notes were the same subsidiaries

guaranteeing the New Credit Agreement. The following condensed consolidating financial statements have been prepared for all periods presented based on the current subsidiary guarantors and non-guarantors stipulated in the New Credit Agreement.

Condensed Consolidating Statements of Operations

For the three months ended March 31, 2020	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient service revenues	$	—		$	1,729,740		$	1,050,877		$	(67,336	)	$	2,713,281
Other revenues	197,283			156,860			41,428			(267,615		)	127,956
Total net revenues	197,283			1,886,600			1,092,305			(334,951		)	2,841,237
Operating expenses	154,651			1,640,821			915,340			(334,951		)	2,375,861
Operating income	42,632			245,779			176,965			—			465,376
Debt expense	(91,362		)	(59,093		)	(11,337		)	70,241			(91,551		)
Other income (loss), net	62,453			805			2,633			(70,241		)	(4,350		)
Income tax expense	3,424			80,975			7,161			—			91,560
Equity earnings in subsidiaries	229,294			98,795			—			(328,089		)	—
Net income from continuing operations	239,593			205,311			161,100			(328,089		)	277,915
Net income from discontinued operations, net of tax	—			—			9,980			—			9,980
Net income	239,593			205,311			171,080			(328,089		)	287,895
Less: Net income attributable to noncontrolling interests	—			—			—			(48,302		)	(48,302		)
Net income attributable to DaVita Inc.	$	239,593		$	205,311		$	171,080		$	(376,391	)	$	239,593

For the three months ended March 31, 2019	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient service revenues	$	—		$	1,706,593		$	986,373		$	(63,277	)	$	2,629,689
Other revenues	188,836			146,117			34,909			(256,439		)	113,423
Total net revenues	188,836			1,852,710			1,021,282			(319,716		)	2,743,112
Operating expenses and charges	143,659			1,634,285			944,377			(319,716		)	2,402,605
Operating income	45,177			218,425			76,905			—			340,507
Debt expense	(133,595		)	(50,650		)	(12,549		)	65,275			(131,519		)
Other income, net	110,198			648			11,060			(114,966		)	6,940
Income tax expense	7,026			44,027			5,693			—			56,746
Equity earnings in subsidiaries	134,535			64,375			—			(198,910		)	—
Net income from continuing operations	149,289			188,771			69,723			(248,601		)	159,182
Net (loss) income from discontinued operations, net of tax	—			—			(19,386		)	49,691			30,305
Net income	149,289			188,771			50,337			(198,910		)	189,487
Less: Net income attributable to noncontrolling interests	—			—			—			(40,198		)	(40,198		)
Net income attributable to DaVita Inc.	$	149,289		$	188,771		$	50,337		$	(239,108	)	$	149,289

Condensed Consolidating Statements of Comprehensive Income

For the three months ended March 31, 2020	DaVita Inc.			Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net income	$	239,593		$	205,311	$	171,080		$	(328,089	)	$	287,895
Other comprehensive loss	(11,395		)	—		(81,632		)	—			(93,027		)
Total comprehensive income	228,198			205,311		89,448			(328,089		)	194,868
Less: Comprehensive income attributable to noncontrolling interest	—			—		—			(48,302		)	(48,302		)
Comprehensive income attributable to DaVita Inc.	$	228,198		$	205,311	$	89,448		$	(376,391	)	$	146,566

For the three months ended March 31, 2019	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net income	$	149,289	$	188,771	$	50,337		$	(198,910	)	$	189,487
Other comprehensive income (loss)	1,026		—		(13,653		)	—			(12,627		)
Total comprehensive income	150,315		188,771		36,684			(198,910		)	176,860
Less: Comprehensive income attributable to noncontrolling interest	—		—		—			(40,198		)	(40,198		)
Comprehensive income attributable to DaVita Inc.	$	150,315	$	188,771	$	36,684		$	(239,108	)	$	136,662

Condensed Consolidating Balance Sheets

As of March 31, 2020	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
Cash and cash equivalents	$	1,075,965	$	411	$	305,388	$	—		$	1,381,764
Restricted cash and equivalents	14,540		—		92,184		—			106,724
Accounts receivable, net	—		1,184,686		635,446		—			1,820,132
Other current assets	86,786		556,210		100,357		(28,034		)	715,319
Total current assets	1,177,291		1,741,307		1,133,375		(28,034		)	4,023,939
Property and equipment, net	555,409		1,555,662		1,336,966		(2,614		)	3,445,423
Operating lease right-of-use assets	107,620		1,643,765		1,114,378		(17,987		)	2,847,776
Intangible assets, net	340		28,766		88,847		—			117,953
Investments in and advances to affiliates, net	10,961,209		7,869,131		3,099,564		(21,929,904		)	—
Other long-term assets and investments	85,777		130,528		187,405		(20,524		)	383,186
Goodwill	—		4,812,207		1,965,816		—			6,778,023
Total assets	$	12,887,646	$	17,781,366	$	8,926,351	$	(21,999,063	)	$	17,596,300
Current liabilities	$	365,783	$	1,172,340	$	683,608	$	(985	)	$	2,220,746
Intercompany liabilities, net	1,534,892		3,099,564		2,693,572		(7,328,028		)	—
Long-term operating leases liabilities	133,926		1,554,717		1,062,852		(17,125		)	2,734,370
Long-term debt and other long-term liabilities	8,209,577		786,685		334,591		(51,049		)	9,279,804
Noncontrolling interests subject to put provisions	695,622		—		—		532,414			1,228,036
Total DaVita Inc. shareholders' equity	1,947,846		11,168,060		3,433,816		(14,601,876		)	1,947,846
Noncontrolling interests not subject to put provisions	—		—		717,912		(532,414		)	185,498
Total equity	1,947,846		11,168,060		4,151,728		(15,134,290		)	2,133,344
Total liabilities and equity	$	12,887,646	$	17,781,366	$	8,926,351	$	(21,999,063	)	$	17,596,300

As of December 31, 2019	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
Cash and cash equivalents	$	758,241	$	532	$	343,599	$	—		$	1,102,372
Restricted cash and equivalents	14,499		—		91,847		—			106,346
Accounts receivable, net	—		1,189,301		606,297		—			1,795,598
Other current assets	76,787		548,553		102,410		(41,896		)	685,854
Total current assets	849,527		1,738,386		1,144,153		(41,896		)	3,690,170
Property and equipment, net	543,932		1,589,417		1,344,543		(4,508		)	3,473,384
Operating lease right-of-use assets	109,415		1,656,145		1,084,552		(20,065		)	2,830,047
Intangible assets, net	362		31,569		103,753		—			135,684
Investments in and advances to affiliates, net	10,813,991		7,611,402		3,051,208		(21,476,601		)	—
Other long-term assets and investments	102,779		133,698		176,315		(18,318		)	394,474
Goodwill	—		4,812,972		1,974,663		—			6,787,635
Total assets	$	12,420,006	$	17,573,589	$	8,879,187	$	(21,561,388	)	$	17,311,394
Current liabilities	$	379,286	$	1,327,378	$	666,470	$	(1,036	)	$	2,372,098
Intercompany payables	1,381,863		3,051,208		2,615,151		(7,048,222		)	—
Long-term operating lease liabilities	136,123		1,567,776		1,039,145		(19,244		)	2,723,800
Long-term debt and other long-term liabilities	7,741,725		674,558		364,102		(64,507		)	8,715,878
Noncontrolling interests subject to put provisions	647,600		—		—		532,776			1,180,376
Total DaVita Inc. shareholders' equity	2,133,409		10,952,669		3,475,710		(14,428,379		)	2,133,409
Noncontrolling interests not subject to put provisions	—		—		718,609		(532,776		)	185,833
Total equity	2,133,409		10,952,669		4,194,319		(14,961,155		)	2,319,242
Total liabilities and equity	$	12,420,006	$	17,573,589	$	8,879,187	$	(21,561,388	)	$	17,311,394

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2020	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Cash flows provided by operating activities:
Net income	$	239,593		$	205,311		$	171,080		$	(328,089	)	$	287,895
Changes in operating assets and liabilities and non-cash items included in net income	(182,332		)	(71,454		)	(1,817		)	328,089			72,486
Net cash provided by operating activities	57,261			133,857			169,263			—			360,381
Cash flows used in investing activities:
Additions of property and equipment	(52,714		)	(41,144		)	(61,084		)	—			(154,942		)
Acquisitions	—			(984		)	(33,123		)	—			(34,107		)
Proceeds from asset and business sales	—			4,180			27,338			—			31,518
Proceeds (purchases) from investment sales and other items, net	452			271			(5,817		)	—			(5,094		)
Net cash used in investing activities	(52,262		)	(37,677		)	(72,686		)	—			(162,625		)
Cash flows provided by (used in) financing activities:
Long-term debt and related financing costs, net	481,856			(2,462		)	(13,557		)	—			465,837
Intercompany borrowings (payments)	153,029			(95,857		)	(57,172		)	—			—
Other items	(322,119		)	2,018			(48,744		)	—			(368,845		)
Net cash provided by (used in) financing activities	312,766			(96,301		)	(119,473		)	—			96,992
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(14,978		)	—			(14,978		)
Net increase (decrease) in cash, cash equivalents and restricted cash	317,765			(121		)	(37,874		)	—			279,770
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	772,740			532			435,446			—			1,208,718
Cash, cash equivalents and restricted cash of continuing operations at end of the period	$	1,090,505		$	411		$	397,572		$	—		$	1,488,488

For the three months ended March 31, 2019	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Cash flows provided by (used in) operating activities:
Net income	$	149,289		$	188,771		$	50,337		$	(198,910	)	$	189,487
Changes in operating assets and liabilities and non-cash items included in net income	(124,409		)	(289,332		)	166,648			198,910			(48,183		)
Net cash provided by (used in) operating activities	24,880			(100,561		)	216,985			—			141,304
Cash flows used in investing activities:
Additions of property and equipment	(38,942		)	(76,529		)	(83,407		)	—			(198,878		)
Acquisitions	—			—			(11,274		)	—			(11,274		)
Proceeds from asset and business sales	—			2,270			11,633			—			13,903
Proceeds (purchases) from investment sales and other items, net	1,804			(3,878		)	(2,035		)	—			(4,109		)
Net cash used in investing activities	(37,138		)	(78,137		)	(85,083		)	—			(200,358		)
Cash flows provided by financing activities:
Long-term debt and related financing costs, net	365,133			(2,364		)	(5,572		)	—			357,197
Intercompany (payments) borrowings	(220,697		)	188,870			31,827			—			—
Other items	1,517			(8,427		)	(25,336		)	—			(32,246		)
Net cash provided by financing activities	145,953			178,079			919			—			324,951
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(921		)	—			(921		)
Net increase (decrease) in cash, cash equivalents and restricted cash	133,695			(619		)	131,900			—			264,976
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations	—			—			118,962			—			118,962
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations	133,695			(619		)	12,938			—			146,014
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	$	195,353		$	12,661		$	353,420		$	—		$	561,434

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Fair value of financial instruments

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair value of financial instruments

Fair values of financial instruments

The Company measures the fair value of certain assets, liabilities and noncontrolling interests subject to put provisions (redeemable equity interests classified as temporary equity) based upon certain valuation techniques that include observable or unobservable inputs and assumptions that market participants would use in pricing these assets, liabilities, temporary equity and commitments. The Company has also classified certain assets, liabilities and temporary equity that are measured at fair value into the appropriate fair value hierarchy levels as defined by the Financial Accounting Standards Board (FASB).

The following table summarizes the Company’s assets, liabilities and temporary equity that are measured at fair value on a recurring basis as of March 31, 2020: 

	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Investments in equity securities	$	35,843	$	35,843	$	—	$	—
Interest rate cap agreements	$	7,106	$	—	$	7,106	$	—
Liabilities
Contingent earn-out obligations	$	22,386	$	—	$	—	$	22,386
Temporary equity
Noncontrolling interests subject to put provisions	$	1,228,036	$	—	$	—	$	1,228,036

For reconciliations of changes in contingent earn-out obligations and noncontrolling interests subject to put provisions during the three months ended March 31, 2020, see Note 15 and the consolidated statement of equity, respectively.

Investments in equity securities represent investments in various open-ended registered investment companies (mutual funds) and common stock and are recorded at fair value estimated based on reported market prices or redemption prices, as applicable. See Note 4 to these condensed consolidated financial statements for further discussion.

Interest rate cap agreements are recorded at fair value estimated from valuation models utilizing the income approach and commonly accepted valuation techniques that use inputs from closing prices for similar assets and liabilities in active markets as well as other relevant observable market inputs at quoted intervals such as current interest rates, forward yield curves, implied volatility and credit default swap pricing. The Company does not believe the ultimate amount that could be realized upon settlement of these interest rate cap agreements would be materially different from the fair value estimates currently reported. See Note 8 to these condensed consolidated financial statements for further discussion.

The estimated fair value measurements of contingent earn-out obligations are primarily based on unobservable inputs, including projected earnings before interest, taxes, depreciation, and amortization (EBITDA) and revenue. The estimated fair value of these contingent earn-out obligations is remeasured as of each reporting date and could fluctuate based upon any significant changes in key assumptions, such as changes in the Company's credit risk adjusted rate that is used to discount obligations to present value. See Note 15 to these condensed consolidated financial statements for further discussion.

The estimated fair value of noncontrolling interests subject to put provisions is based principally on the higher of either estimated liquidation value of net assets or a multiple of earnings for each subject dialysis partnership, based on historical earnings, revenue mix, and other performance indicators that can affect future results. The multiples used for these valuations are derived from observed ownership transactions for dialysis businesses between unrelated parties in the U.S. in recent years, and the specific valuation multiple applied to each dialysis partnership is principally determined by its recent and expected revenue mix and contribution margin. As of March 31, 2020, an increase or decrease in the weighted average multiple used in these valuations of one times EBITDA would change the estimated fair value of these noncontrolling interests by approximately $150,000. See Note 17 to the Company's consolidated financial statements included in the 10-K for further discussion of the Company’s methodology for estimating the fair value of noncontrolling interests subject to put obligations.

The Company's fair value estimates for its senior secured credit facilities and senior notes are based upon bid and ask quotes for these instruments, typically a level 2 input. See Note 8 to these condensed consolidated financial statements for further discussion of the Company's debt.

Other financial instruments consist primarily of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, other accrued liabilities, lease liabilities and debt. The balances of financial instruments other than debt and lease liabilities are presented in these condensed consolidated financial statements at March 31, 2020 at their approximate fair values due to the short-term nature of their settlements.

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Accumulated other comprehensive (loss) income

3 Months Ended

Mar. 31, 2020

Statement of Comprehensive Income [Abstract]

Comprehensive income

Accumulated other comprehensive loss

	For the three months ended March 31, 2020									For the three months ended March 31, 2019
	Interest rate cap agreements			Foreign currency translation adjustments			Accumulated other comprehensive loss			Interest rate cap agreements			Foreign currency translation adjustments			Accumulated other comprehensive loss
Beginning balance	$	(1,433	)	$	(46,065	)	$	(47,498	)	$	(8,961	)	$	(25,963	)	$	(34,924	)
Unrealized losses	(17,346		)	(81,632		)	(98,978		)	(781		)	(13,653		)	(14,434		)
Related income tax	4,328			—			4,328			201			—			201
	(13,018		)	(81,632		)	(94,650		)	(580		)	(13,653		)	(14,233		)
Reclassification into net income	2,163			—			2,163			2,163			—			2,163
Related income tax	(540		)	—			(540		)	(557		)	—			(557		)
	1,623			—			1,623			1,606			—			1,606
Ending balance	$	(12,828	)	$	(127,697	)	$	(140,525	)	$	(7,935	)	$	(39,616	)	$	(47,551	)

The reclassification of net cap realized losses into income are recorded as debt expense in the corresponding consolidated statements of income. See Note 8 to these condensed consolidated financial statements for further details.

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Long-term debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-term debt

Long-term debt

Long-term debt was comprised of the following: 

								As of March 31, 2020
	March 31, 2020			December 31, 2019			Maturity date	Interest rate		Estimated fair value(1)
Senior Secured Credit Facilities:
Term Loan A	$	1,728,125		$	1,739,063		8/12/2024	LIBOR + 1.50%		$	1,659,000
Term Loan B-1(2)	2,736,267			—			8/12/2026	LIBOR + 1.75%		$	2,640,498
Term Loan B(2)	—			2,743,125			8/12/2026	LIBOR + 2.25%		$	—
Revolving line of credit	500,000			—			8/12/2024	LIBOR + 1.50%		$	500,000
Senior Notes:
5 1/8% Senior Notes	1,750,000			1,750,000			7/15/2024	5.125	%	$	1,743,525
5% Senior Notes	1,500,000			1,500,000			5/1/2025	5.00	%	$	1,497,900
Acquisition obligations and other notes payable(3)	167,727			180,352			2020-2027	4.71	%	$	167,727
Financing lease obligations(4)	275,092			268,534			2020-2036	5.31	%
Total debt principal outstanding	8,657,211			8,181,074
Discount and deferred financing costs(5)	(68,757		)	(72,840		)
	8,588,454			8,108,234
Less current portion	(146,318		)	(130,708		)
	$	8,442,136		$	7,977,526

(1) Fair value estimates are based upon bid and ask quotes for the Company's senior secured credit facilities and senior notes, typically a level 2 input. The carrying values of acquisition obligations and other notes payable presented here approximate their estimated fair values, based on estimates of their current present values using level 2 interest rate inputs.

(2) On February 13, 2020, the Company entered into an amendment to its credit agreement governing its senior secured credit facilities to refinance the Term Loan B with a $2,743,125 secured Term Loan B-1.

(3) The interest rate presented for acquisition obligations and other notes payable is their weighted average interest rate based on the current interest rate in effect and assuming no changes to the LIBOR based interest rates.

(4) Financing lease obligations are measured at their approximate present value at inception. The interest rate presented is the weighted average discount rate embedded in financing leases outstanding.

(5) As of March 31, 2020, the carrying amount of the Company’s senior secured credit facilities and senior notes include a discount of $6,207 and deferred financing costs of $42,420; and deferred financing costs of $20,130, respectively. As of December 31, 2019, the carrying amount of the Company’s senior secured credit facilities and senior notes include a discount of $6,457 and deferred financing costs of $45,444; and deferred financing costs of $20,939, respectively.

Scheduled maturities of long-term debt at March 31, 2020 were as follows:

2020 (remainder of the year)	$	95,359
2021	$	170,056
2022	$	172,376
2023	$	224,727
2024	$	3,671,586
2025	$	61,951
Thereafter	$	4,261,156

On February 13, 2020, the Company entered into an amendment to refinance its senior secured Term Loan B (Repricing Amendment) with a secured Term Loan B-1 that bears interest at a rate equal to LIBOR plus an applicable margin of 1.75% and matures on August 12, 2026. The Repricing Amendment did not change the interest rate on the Term Loan A or the revolving line of credit. No additional debt was incurred, nor any additional proceeds received, by the Company in connection with the Repricing Amendment. As a result of this transaction, the Company recognized debt refinancing charges of $2,948 in the three months ended March 31, 2020. The majority of the Company's Term Loan B debt was considered a modification, therefore

these charges primarily represent fees incurred on this transaction, as well as the write off and capitalization of deferred financing costs associated with the portion of debt considered extinguished. For the portion of the Term Loan B debt that was considered extinguished and reborrowed in this refinancing, the Company recognized $68,842 in constructive financing cash outflows and financing cash inflows on the statement of cash flows, even though no funds were actually paid or received. Another $55,895 of the debt considered extinguished in this refinancing represented a non-cash financing activity.

During the first three months of 2020, the Company made regularly scheduled mandatory principal payments under its senior secured credit facilities totaling $10,938 on Term Loan A and $6,858 on Term Loan B-1.

As of March 31, 2020, the Company maintains several interest rate cap agreements that have the economic effect of capping the Company's maximum exposure to LIBOR variable interest rate changes on specific portions of the Company's floating rate debt, including all of the Term Loan B-1 and a portion of the Term Loan A. The remaining $1,464,392 outstanding principal balance of the Term Loan A and the revolving line of credit are subject to LIBOR-based interest rate volatility. The cap agreements are designated as cash flow hedges and, as a result, changes in the fair values of these cap agreements are reported in other comprehensive income. The amortization of the original cap premium is recognized as a component of debt expense on a straight-line basis over the terms of the cap agreements. These cap agreements do not contain credit-risk contingent features.

In August 2019, the Company entered into several forward interest rate cap agreements with a notional amount of $3,500,000 that have the economic effect of capping the Company's maximum exposure to LIBOR variable interest rate changes on specific portions of the Company's floating rate debt (2019 cap agreements). These 2019 cap agreements are designated as cash flow hedges and, as a result, changes in their fair values are reported in other comprehensive income. These 2019 cap agreements do not contain credit-risk contingent features, and become effective on June 30, 2020.

The following table summarizes the Company’s interest rate cap agreements outstanding as of March 31, 2020 and December 31, 2019, which are classified in "Other long-term assets" on its consolidated balance sheet: 

						Three months ended March 31, 2020				Fair value
	Notional amount		LIBOR maximum rate	Effective date	Expiration date	Debt expense		Recorded OCI loss		March 31, 2020		December 31, 2019
2015 cap agreements	$	3,500,000	3.50%	6/29/2018	6/30/2020	$	2,163	$	—	$	—	$	—
2019 cap agreements	$	3,500,000	2.00%	6/30/2020	6/30/2024			$	17,346	$	7,106	$	24,452

 The following table summarizes the effects of the Company’s interest rate cap agreements for the three months ended March 31, 2020 and 2019:

	Amount of unrecognized losses in OCI on interest rate cap agreements						Income statement location	Reclassification from accumulated other comprehensive loss into net income
	Three months ended March 31,							Three months ended March 31,
Derivatives designated as cash flow hedges	2020			2019				2020			2019
Interest rate cap agreements	$	(17,346	)	$	(781	)	Debt expense	$	2,163		$	2,163
Related income tax	4,328			201			Related income tax	(540		)	(557		)
Total	$	(13,018	)	$	(580	)		$	1,623		$	1,606

See Note 14 to these condensed consolidated financial statements for further details on amounts recorded and reclassified from accumulated other comprehensive loss.

The Company’s weighted average effective interest rate on the senior secured credit facilities at the end of the first quarter of 2020 was 2.78%, based on the current margins in effect for the Term Loan A, Term Loan B-1 and revolving line of credit as of March 31, 2020, as described above.

The Company’s overall weighted average effective interest rate for the three months ended March 31, 2020 was 4.35%, and as of March 31, 2020 was 3.75%.

As of March 31, 2020, the Company’s interest rates are fixed on approximately 41.83% of its total debt.

As of March 31, 2020, the Company had $500,000 drawn on its $1,000,000 revolving line of credit under its senior secured credit facilities. The Company also has approximately $57,705 of outstanding letters of credit under a separate bilateral secured letter of credit facility.

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Investments in debt and equity securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investments in debt and equity securities

Short-term and long-term investments

The Company’s short-term and long-term debt and equity investments consist of the following:

	March 31, 2020						December 31, 2019
	Debt securities		Equity securities		Total		Debt securities		Equity securities		Total
Certificates of deposit and other time deposits	$	8,190	$	—	$	8,190	$	8,140	$	—	$	8,140
Investments in mutual funds and common stock	—		35,843		35,843		—		39,951		39,951
	$	8,190	$	35,843	$	44,033	$	8,140	$	39,951	$	48,091
Short-term investments	$	8,190	$	1,186	$	9,376	$	8,140	$	3,432	$	11,572
Long-term investments	—		34,657		34,657		—		36,519		36,519
	$	8,190	$	35,843	$	44,033	$	8,140	$	39,951	$	48,091

Debt securities: The Company's short-term debt investments are principally bank certificates of deposit with contractual maturities longer than three months but shorter than one year. These debt securities are accounted for as held to maturity and recorded at amortized cost, which approximated their fair values at March 31, 2020 and December 31, 2019.

Equity securities: The Company's equity investments in mutual funds and common stock are held within a trust to fund existing obligations associated with several of the Company’s non-qualified deferred compensation plans. During the three months ended March 31, 2020, the Company recognized pre-tax net losses of $3,407 in other (loss) income associated with changes in the fair value of these equity securities, comprised of pre-tax realized gains of $293 and a net increase in unrealized losses of $3,700. During the three months ended March 31, 2019, the Company recognized pre-tax net gains of $1,893 in other (loss) income associated with changes in the fair value of these equity securities, comprised of pre-tax realized gains of $170 and a net increase in unrealized gains of $1,723.

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Long-term incentive compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Long-term incentive compensation

Long-term incentive compensation

Long-term incentive program (LTIP) compensation includes both stock-based awards (principally stock-settled stock appreciation rights, restricted stock units, and performance stock units) as well as long-term performance-based cash awards. Long-term incentive compensation expense, which is primarily general and administrative in nature, is attributed to the Company’s U.S. dialysis business, corporate administrative support, and ancillary services.

The Company’s stock-based compensation expense for stock-settled awards is measured at the estimated fair value of awards on the date of grant and recognized on a cumulative straight-line basis over the vesting terms of the awards unless the stock awards are based on non-market based performance metrics, in which case expense is adjusted for the expected ultimate shares to be issued as of the end of each reporting period. Stock-based compensation expense for cash-settled awards is based on their estimated fair values as of the end of each reporting period. The expense for all stock-based awards is recognized net of expected forfeitures.

During the three months ended March 31, 2020, the Company granted 950 restricted and performance stock units with an aggregate grant-date fair value of $72,648 and a weighted-average expected life of approximately 3.5 years and 2,765 stock-settled stock appreciation rights with an aggregate grant-date fair value of $73,833 and a weighted-average expected life of approximately 4.8 years.

For the three months ended March 31, 2020 and 2019, the Company recognized $25,594 and $13,107, respectively, in total LTIP expense, of which $19,870 and $10,301, respectively, represented stock-based compensation expense for stock appreciation rights, restricted stock units, performance stock units and discounted employee stock plan purchases, which are primarily included in general and administrative expense. The estimated tax benefits recorded for stock-based compensation for the three months ended March 31, 2020 and 2019 was $2,584 and $1,495, respectively.

As of March 31, 2020, the Company had $247,420 in total estimated but unrecognized stock-based compensation expense under the Company’s equity compensation and employee stock purchase plans. The Company expects to recognize this expense over a weighted average remaining period of 1.7 years. The Company no longer has outstanding long-term performance-based cash awards in its principal U.S. dialysis business as the performance and accrual period for these awards ended December 31, 2019 with a final payout of $66,302 in 2020.

For the three months ended March 31, 2020 and 2019, the Company recognized $199 and $151, respectively, in actual tax benefits upon the settlement of stock awards.

On November 4, 2019, the independent members of the Company’s Board of Directors (Board) approved an award of 2,500 premium-priced stock-settled stock appreciation rights (Premium-Priced Award) to the Company’s Chief Executive Officer (CEO), which award was subject to stockholder approval of a related amendment to the Company's 2011 Incentive Award Plan (2011 Plan). The Company's stockholders approved such amendment to the 2011 Plan on January 23, 2020, authorizing the grant to the Company's CEO. Since stockholder approval occurred in 2020, subsequent to the Board approval, this award had both a service inception and grant date of January 23, 2020 for accounting purposes.

The base price of the Premium-Priced Award is $67.80 per share, which is a 20% premium to the clearing price of the Company's 2019 modified Dutch auction tender offer. The award vests 50% on each of November 4, 2022 and November 4, 2023, and expires on November 4, 2024. The award includes a requirement that the CEO hold any shares acquired upon exercise of this award, net of shares used to cover related taxes, until November 4, 2024 (that is, for the full term of the award), subject to lapse of the holding period upon a change in control of the Company or due to the CEO's death or termination due to disability.

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Revenue Recognition Segment revenue by major payor (Tables)

3 Months Ended

Mar. 31, 2020

Revenues by major payor [Abstract]

Schedule of Revenue Sources, Health Care Organization [Table Text Block]

The following table summarizes the Company's segment revenues by primary payor source:

	For the three months ended
	March 31, 2020									March 31, 2019
	U.S. dialysis			Other - Ancillary services			Consolidated			U.S. dialysis			Other - Ancillary services			Consolidated
Dialysis patient service revenues:
Medicare and Medicare Advantage	$	1,502,222		$			$	1,502,222		$	1,493,516		$			$	1,493,516
Medicaid and Managed Medicaid	171,467						171,467			154,190						154,190
Other government	111,910			94,574			206,484			106,127			84,475			190,602
Commercial	825,582			39,467			865,049			788,413			33,388			821,801
Other revenues:
Medicare and Medicare Advantage				98,478			98,478						61,700			61,700
Medicaid and Managed Medicaid				366			366						6			6
Commercial				10,521			10,521						32,619			32,619
Other(1)	5,442			17,602			23,044			4,905			17,750			22,655
Eliminations of intersegment revenues	(32,242		)	(4,152		)	(36,394		)	(30,641		)	(3,336		)	(33,977		)
Total	$	2,584,381		$	256,856		$	2,841,237		$	2,516,510		$	226,602		$	2,743,112

(1)

Other consists of management service fees earned in the respective Company line of business as well as other revenue from the Company's ancillary services.

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Goodwill (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Goodwill by Reportable Segments [Text Block]

Changes in goodwill by reportable segments were as follows:

	U.S. dialysis			Other - Ancillary services			Consolidated
Balance at December 31, 2018	$	6,275,004		$	566,956		$	6,841,960
Acquisitions	18,089			72,137			90,226
Impairment charges	—			(124,892		)	(124,892		)
Foreign currency and other adjustments	(5,993		)	(13,666		)	(19,659		)
Balance at December 31, 2019	$	6,287,100		$	500,535		$	6,787,635
Acquisitions	2,839			23,931			26,770
Divestitures	(1,549		)	—			(1,549		)
Foreign currency and other adjustments	—			(34,833		)	(34,833		)
Balance at March 31, 2020	$	6,288,390		$	489,633		$	6,778,023
Goodwill	$	6,288,390		$	638,117		$	6,926,507
Accumulated impairment charges	—			(148,484		)	(148,484		)
	$	6,288,390		$	489,633		$	6,778,023

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CONSOLIDATED STATEMENTS OF EQUITY (unaudited) - USD ($) $ in Thousands	Total	Total	Total Restricted Stock Units	Total Stock Appreciation Rights	Non- controlling interests subject to put provisions	Common stock	Common stock Restricted Stock Units	Common stock Stock Appreciation Rights	Additional paid-in capital	Additional paid-in capital Restricted Stock Units	Additional paid-in capital Stock Appreciation Rights	Retained earnings	Treasury stock	Accumulated other comprehensive (loss) income	Non- controlling interests not subject to put provisions
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting principle		$ 39,876			$ (38)							$ 39,876			$ (6)
Temporary equity, start balance at Dec. 31, 2018					1,124,641
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income					25,389
Distributions					(27,565)
Contributions					6,415
Acquisitions and divestitures					1,762
Partial purchases					(1,967)
Fair value remeasurements					14,407
Temporary equity, ending balance at Mar. 31, 2019					1,143,044
Beginning balance at Dec. 31, 2018		3,703,442				$ 166			$ 995,006			2,743,194	$ 0	$ (34,924)	204,956
Beginning balance (in shares) at Dec. 31, 2018						166,387,000							0
Comprehensive income:
Net income attributable to DaVita Inc.	$ 149,289	149,289										149,289			14,809
Other comprehensive income (loss)	(12,627)	(12,627)												(12,627)
Stock unit shares issued (in shares)							9,000	0
Stock-settled SAR shares issued			$ (104)	$ 0						$ (104)
Stock-settled stock-based compensation expense		12,091							12,091
Changes in noncontrolling interest from:
Distributions															(16,665)
Contributions															12,532
Acquisitions and divestitures		0							0
Acquisitions and divestitures, non-controlling interest															0
Partial purchases		(2,206)							(2,206)						(4,307)
Fair value remeasurements		(14,407)							(14,407)
Ending balance at Mar. 31, 2019		3,875,354				$ 166			990,380			2,932,359	$ 0	(47,551)	211,319
Ending balance (in shares) at Mar. 31, 2019						166,396,000							0
Temporary equity, start balance at Dec. 31, 2019					1,180,376
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income					32,176
Distributions					(37,566)
Contributions					5,283
Partial purchases					(255)
Fair value remeasurements					48,022
Temporary equity, ending balance at Mar. 31, 2020					$ 1,228,036
Beginning balance at Dec. 31, 2019	$ 2,319,242	2,133,409				$ 126			749,043			1,431,738	$ 0	(47,498)	185,833
Beginning balance (in shares) at Dec. 31, 2019	125,842,853					125,843,000							0
Comprehensive income:
Net income attributable to DaVita Inc.	$ 239,593	239,593										239,593			16,126
Other comprehensive income (loss)	(93,027)	(93,027)												(93,027)
Stock purchase shares issued		0
Stock unit shares issued (in shares)							8,000	6,000
Stock-settled SAR shares issued			$ (75)	$ (245)						$ (75)	$ (245)
Stock-settled stock-based compensation expense		19,797							19,797
Changes in noncontrolling interest from:
Distributions															(20,565)
Contributions															4,104
Partial purchases		(445)							(445)
Fair value remeasurements		(48,022)							(48,022)
Purchase of treasury stock (in shares)													(4,052,000)
Purchase of treasury stock		(303,139)											$ (303,139)
Ending balance at Mar. 31, 2020	$ 2,133,344	$ 1,947,846				$ 126			$ 720,053			$ 1,671,331	$ (303,139)	$ (140,525)	$ 185,498
Ending balance (in shares) at Mar. 31, 2020	121,804,880					125,857,000							(4,052,000)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 287,895	$ 189,487
Unrealized losses on interest rate cap agreements:
Unrealized losses	(13,018)	(580)
Reclassifications of net realized losses into net income	1,623	1,606
Unrealized losses on foreign currency translation:
Foreign currency translation adjustments	(81,632)	(13,653)
Other comprehensive loss	(93,027)	(12,627)
Total comprehensive income	194,868	176,860
Less: Comprehensive income attributable to noncontrolling interests	(48,302)	(40,198)
Comprehensive income attributable to DaVita Inc.	$ 146,566	$ 136,662

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Long-term debt (Detail) - USD ($) $ in Thousands		3 Months Ended
	Feb. 13, 2020	Mar. 31, 2020	Dec. 31, 2019
Senior Notes
Debt interest rate during period		4.35%
Acquisition obligations, other notes payable, and financing lease obligations
Financing lease obligations		$ 275,092
Long-term debt, weighted average interest rate, at point in time		3.75%
Total debt principal outstanding		$ 8,657,211	$ 8,181,074
Discount and deferred financing costs		(68,757)	(72,840)
Carrying amount of long-term debt, net of unamortized discounts		8,588,454	8,108,234
Less current portion		(146,318)	(130,708)
Total long-term debt		8,442,136	7,977,526
Senior Notes Five Point One Two Five Percent Due Twenty Twenty Four
Senior Notes
Senior Notes		$ 1,750,000	1,750,000
Debt interest rate during period		5.125%
Debt Instrument, Maturity Date		Jul. 15, 2024
Debt Instrument, Fair Value Disclosure		$ 1,743,525
Debt Instrument, table footnotes
Debt Instrument, Maturity Date		Jul. 15, 2024
Senior Notes Five Point Zero Percent Due Twenty Twenty Five
Senior Notes
Senior Notes		$ 1,500,000	1,500,000
Debt interest rate during period		5.00%
Debt Instrument, Maturity Date		May 01, 2025
Debt Instrument, Fair Value Disclosure		$ 1,497,900
Debt Instrument, table footnotes
Debt Instrument, Maturity Date		May 01, 2025
Acquisition obligations and other notes payable
Acquisition obligations, other notes payable, and financing lease obligations
Acquisition obligations and other notes payable		$ 167,727	180,352
Debt instrument, maturity date, description		2020-2027
Long-term debt, weighted average interest rate, at point in time		4.71%
Acquisition obligations and other notes payable, fair value		$ 167,727
Financing lease obligations
Acquisition obligations, other notes payable, and financing lease obligations
Financing lease obligations		$ 275,092	268,534
Debt instrument, maturity date, description		2020-2036
Finance lease, weighted average discount rate, percent		5.31%
Financing lease liability, fair value
Revolving line of credit
Senior Secured Credit Facilities
Secured Debt		$ 500,000	0
Debt Instrument, Description of Variable Rate Basis		LIBOR + 1.50%
Senior Notes
Debt Instrument, Maturity Date		Aug. 12, 2024
Debt Instrument, Fair Value Disclosure		$ 500,000
Debt Instrument, table footnotes
Debt Instrument, Maturity Date		Aug. 12, 2024
Term Loan A
Senior Secured Credit Facilities
Secured Debt		$ 1,728,125	1,739,063
Debt Instrument, Description of Variable Rate Basis		LIBOR + 1.50%
Senior Notes
Debt Instrument, Maturity Date		Aug. 12, 2024
Debt Instrument, Fair Value Disclosure		$ 1,659,000
Debt Instrument, table footnotes
Debt Instrument, Maturity Date		Aug. 12, 2024
Term Loan B-1
Senior Secured Credit Facilities
Secured Debt	$ 2,743,125	$ 2,736,267	0
Debt Instrument, Description of Variable Rate Basis		LIBOR + 1.75%
Senior Notes
Debt Instrument, Maturity Date	Aug. 12, 2026
Debt Instrument, Fair Value Disclosure		$ 2,640,498
Debt Instrument, table footnotes
Debt Instrument Agreement Date	Feb. 13, 2020
Debt Instrument, Maturity Date	Aug. 12, 2026
Term Loan B-1 | London Interbank Offered Rate (LIBOR)
Debt Instrument, table footnotes
LIBOR plus interest rate margin	1.75%
Term Loan B
Senior Secured Credit Facilities
Secured Debt		$ 0	2,743,125
Debt Instrument, Description of Variable Rate Basis		LIBOR + 2.25%
Senior Notes
Debt Instrument, Maturity Date		Aug. 12, 2026
Debt Instrument, Fair Value Disclosure		$ 0
Debt Instrument, table footnotes
Debt Instrument, Maturity Date		Aug. 12, 2026
Senior Secured Credit Facilities
Acquisition obligations, other notes payable, and financing lease obligations
Long-term debt, weighted average interest rate, at point in time		2.78%
Debt Instrument, table footnotes
Debt Instrument, Unamortized Discount		$ 6,207	6,457
Deferred Offering Costs		42,420	45,444
Senior Notes
Debt Instrument, table footnotes
Deferred Offering Costs		$ 20,130	$ 20,939

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Equity method and other investments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Noncontrolling Interest [Line Items]
Equity investment income (loss)	$ 17,843	$ 2,708
Valuation Adjustment	$ 0	$ 0
Parent Company
Noncontrolling Interest [Line Items]
Ownership interest percentage by parent	75.00%
Parent Company | Minimum
Noncontrolling Interest [Line Items]
Ownership interest percentage by parent	30.00%
Parent Company | Maximum
Noncontrolling Interest [Line Items]
Ownership interest percentage by parent	50.00%
APAC JV - Deconsolidated Noncontrolling Entity
Noncontrolling Interest [Line Items]
Current economic interest in the APAC JV, Owned by Noncontrolling Investors	25.00%

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Condensed consolidating financial statements - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Income Statements Captions [Line Items]
Dialysis patient service revenues	$ 2,713,281	$ 2,629,689
Other revenues	127,956	113,423
Total revenues	2,841,237	2,743,112
Operating expenses	2,375,861	2,402,605
Operating income	465,376	340,507
Debt expense	(91,551)	(131,519)
Other (loss) income, net	(4,350)	6,940
Income tax expense	91,560	56,746
Equity earnings in subsidiaries	0	0
Net income from continuing operations	277,915	159,182
Net income from discontinued operations, net of tax	9,980	30,305
Net income	287,895	189,487
Less: Net income attributable to noncontrolling interests	(48,302)	(40,198)
Net income attributable to DaVita Inc.	239,593	149,289
Consolidating adjustments
Condensed Income Statements Captions [Line Items]
Dialysis patient service revenues	(67,336)	(63,277)
Other revenues	(267,615)	(256,439)
Total revenues	(334,951)	(319,716)
Operating expenses	(334,951)	(319,716)
Operating income	0	0
Debt expense	70,241	65,275
Other (loss) income, net	(70,241)	(114,966)
Income tax expense	0	0
Equity earnings in subsidiaries	(328,089)	(198,910)
Net income from continuing operations	(328,089)	(248,601)
Net income from discontinued operations, net of tax	0	49,691
Net income	(328,089)	(198,910)
Less: Net income attributable to noncontrolling interests	(48,302)	(40,198)
Net income attributable to DaVita Inc.	(376,391)	(239,108)
DaVita Inc. | Reportable Legal Entities
Condensed Income Statements Captions [Line Items]
Dialysis patient service revenues	0	0
Other revenues	197,283	188,836
Total revenues	197,283	188,836
Operating expenses	154,651	143,659
Operating income	42,632	45,177
Debt expense	(91,362)	(133,595)
Other (loss) income, net	62,453	110,198
Income tax expense	3,424	7,026
Equity earnings in subsidiaries	229,294	134,535
Net income from continuing operations	239,593	149,289
Net income from discontinued operations, net of tax	0	0
Net income	239,593	149,289
Less: Net income attributable to noncontrolling interests	0	0
Net income attributable to DaVita Inc.	239,593	149,289
Guarantor subsidiaries | Reportable Legal Entities
Condensed Income Statements Captions [Line Items]
Dialysis patient service revenues	1,729,740	1,706,593
Other revenues	156,860	146,117
Total revenues	1,886,600	1,852,710
Operating expenses	1,640,821	1,634,285
Operating income	245,779	218,425
Debt expense	(59,093)	(50,650)
Other (loss) income, net	805	648
Income tax expense	80,975	44,027
Equity earnings in subsidiaries	98,795	64,375
Net income from continuing operations	205,311	188,771
Net income from discontinued operations, net of tax	0	0
Net income	205,311	188,771
Less: Net income attributable to noncontrolling interests	0	0
Net income attributable to DaVita Inc.	205,311	188,771
Non- Guarantor subsidiaries | Reportable Legal Entities
Condensed Income Statements Captions [Line Items]
Dialysis patient service revenues	1,050,877	986,373
Other revenues	41,428	34,909
Total revenues	1,092,305	1,021,282
Operating expenses	915,340	944,377
Operating income	176,965	76,905
Debt expense	(11,337)	(12,549)
Other (loss) income, net	2,633	11,060
Income tax expense	7,161	5,693
Equity earnings in subsidiaries	0	0
Net income from continuing operations	161,100	69,723
Net income from discontinued operations, net of tax	9,980	(19,386)
Net income	171,080	50,337
Less: Net income attributable to noncontrolling interests	0	0
Net income attributable to DaVita Inc.	$ 171,080	$ 50,337

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Variable interest entities - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets	$ 17,596,300	$ 17,311,394
Liabilities	14,234,920	$ 13,811,776
Variable Interest Entity
Assets	320,505
Liabilities	$ 234,915

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Fair value of financial instruments Fair Value of Financial Instruments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Fair Value Disclosures [Abstract]
Potential Increase Decrease In Fair Value Of Noncontrolling Interests Due To Change In Weighted Average EBITDA Multiple	$ 150,000

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Share repurchases (Details) - USD ($) $ in Thousands	1 Months Ended
	May 04, 2020	Nov. 04, 2019
Equity, Class of Treasury Stock [Line Items]
Terminated Remaining Prior Share Repurchases Authorized, Amount		$ 246,373
Stock Repurchase Program, Authorized Amount		$ 2,000,000
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock (in shares)	0
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 1,400,356

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Acquisitions and divestitures - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) clinic	Mar. 31, 2019 USD ($)
Business Acquisition [Line Items]
Cash paid to acquire businesses	$ 34,107	$ 11,274
Other accrued liabilities
Business Acquisition [Line Items]
Contingent earn-out obligations	4,579
Other long-term liabilities
Business Acquisition [Line Items]
Contingent earn-out obligations	17,807
Other companies
Business Acquisition [Line Items]
Contingent earn-out obligations	$ 22,386
Minimum | Other companies | EBITDA or Operating Income Performance Targets or Quality Margins
Business Acquisition [Line Items]
Earn-out consideration payment period	1 year
Maximum
Business Acquisition [Line Items]
Contingent earn-out obligations and liabilities assumed associated with acquisitions	$ 31,723
Maximum | Other companies | EBITDA or Operating Income Performance Targets or Quality Margins
Business Acquisition [Line Items]
Earn-out consideration payment period	5 years
Noncompete Agreements
Business Acquisition [Line Items]
Amortizable intangible assets acquired, weighted-average estimated useful lives	4 years
Dialysis and other businesses
Business Acquisition [Line Items]
Cash paid to acquire businesses	$ 34,107
Deferred purchase price obligations	875
Contingent earn-out obligations and liabilities assumed associated with acquisitions	5,007
Goodwill deductible for tax purposes associated with acquisitions	$ 11,241
U.S. dialysis and related lab services | Dialysis and other businesses
Business Acquisition [Line Items]
Number of businesses acquired | clinic	2
Foreign Dialysis Centers | Dialysis and other businesses
Business Acquisition [Line Items]
Number of businesses acquired | clinic	22

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Segment reporting - Summary of Depreciation and Amortization Expense by Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Depreciation and amortization	$ 154,679	$ 148,528
U.S. dialysis and related lab services
Segment Reporting Information [Line Items]
Depreciation and amortization	146,300	140,780
Other—Ancillary services and strategic initiatives
Segment Reporting Information [Line Items]
Depreciation and amortization	$ 8,379	$ 7,748

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Held for Sale and Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

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

	Three months ended March 31,
	2020		2019
Revenues	$	—	$	1,382,281
Expenses	—		1,338,153
Income from discontinued operations before taxes	—		44,128
Income tax expense	—		13,823
Gain (loss) on sale of discontinued operations, net of tax	9,980		—
Net income from discontinued operations, net of tax	$	9,980	$	30,305

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

	Three months ended March 31,
	2020		2019
Net cash provided by operating activities from discontinued operations	$	—	$	68,240
Net cash used in investing activities from discontinued operations	$	—	$	(22,809	)

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Condensed Consolidating financial statements (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

For the three months ended March 31, 2020	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient service revenues	$	—		$	1,729,740		$	1,050,877		$	(67,336	)	$	2,713,281
Other revenues	197,283			156,860			41,428			(267,615		)	127,956
Total net revenues	197,283			1,886,600			1,092,305			(334,951		)	2,841,237
Operating expenses	154,651			1,640,821			915,340			(334,951		)	2,375,861
Operating income	42,632			245,779			176,965			—			465,376
Debt expense	(91,362		)	(59,093		)	(11,337		)	70,241			(91,551		)
Other income (loss), net	62,453			805			2,633			(70,241		)	(4,350		)
Income tax expense	3,424			80,975			7,161			—			91,560
Equity earnings in subsidiaries	229,294			98,795			—			(328,089		)	—
Net income from continuing operations	239,593			205,311			161,100			(328,089		)	277,915
Net income from discontinued operations, net of tax	—			—			9,980			—			9,980
Net income	239,593			205,311			171,080			(328,089		)	287,895
Less: Net income attributable to noncontrolling interests	—			—			—			(48,302		)	(48,302		)
Net income attributable to DaVita Inc.	$	239,593		$	205,311		$	171,080		$	(376,391	)	$	239,593

For the three months ended March 31, 2019	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Patient service revenues	$	—		$	1,706,593		$	986,373		$	(63,277	)	$	2,629,689
Other revenues	188,836			146,117			34,909			(256,439		)	113,423
Total net revenues	188,836			1,852,710			1,021,282			(319,716		)	2,743,112
Operating expenses and charges	143,659			1,634,285			944,377			(319,716		)	2,402,605
Operating income	45,177			218,425			76,905			—			340,507
Debt expense	(133,595		)	(50,650		)	(12,549		)	65,275			(131,519		)
Other income, net	110,198			648			11,060			(114,966		)	6,940
Income tax expense	7,026			44,027			5,693			—			56,746
Equity earnings in subsidiaries	134,535			64,375			—			(198,910		)	—
Net income from continuing operations	149,289			188,771			69,723			(248,601		)	159,182
Net (loss) income from discontinued operations, net of tax	—			—			(19,386		)	49,691			30,305
Net income	149,289			188,771			50,337			(198,910		)	189,487
Less: Net income attributable to noncontrolling interests	—			—			—			(40,198		)	(40,198		)
Net income attributable to DaVita Inc.	$	149,289		$	188,771		$	50,337		$	(239,108	)	$	149,289

Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statements of Comprehensive Income

For the three months ended March 31, 2020	DaVita Inc.			Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net income	$	239,593		$	205,311	$	171,080		$	(328,089	)	$	287,895
Other comprehensive loss	(11,395		)	—		(81,632		)	—			(93,027		)
Total comprehensive income	228,198			205,311		89,448			(328,089		)	194,868
Less: Comprehensive income attributable to noncontrolling interest	—			—		—			(48,302		)	(48,302		)
Comprehensive income attributable to DaVita Inc.	$	228,198		$	205,311	$	89,448		$	(376,391	)	$	146,566

For the three months ended March 31, 2019	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Net income	$	149,289	$	188,771	$	50,337		$	(198,910	)	$	189,487
Other comprehensive income (loss)	1,026		—		(13,653		)	—			(12,627		)
Total comprehensive income	150,315		188,771		36,684			(198,910		)	176,860
Less: Comprehensive income attributable to noncontrolling interest	—		—		—			(40,198		)	(40,198		)
Comprehensive income attributable to DaVita Inc.	$	150,315	$	188,771	$	36,684		$	(239,108	)	$	136,662

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

As of March 31, 2020	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
Cash and cash equivalents	$	1,075,965	$	411	$	305,388	$	—		$	1,381,764
Restricted cash and equivalents	14,540		—		92,184		—			106,724
Accounts receivable, net	—		1,184,686		635,446		—			1,820,132
Other current assets	86,786		556,210		100,357		(28,034		)	715,319
Total current assets	1,177,291		1,741,307		1,133,375		(28,034		)	4,023,939
Property and equipment, net	555,409		1,555,662		1,336,966		(2,614		)	3,445,423
Operating lease right-of-use assets	107,620		1,643,765		1,114,378		(17,987		)	2,847,776
Intangible assets, net	340		28,766		88,847		—			117,953
Investments in and advances to affiliates, net	10,961,209		7,869,131		3,099,564		(21,929,904		)	—
Other long-term assets and investments	85,777		130,528		187,405		(20,524		)	383,186
Goodwill	—		4,812,207		1,965,816		—			6,778,023
Total assets	$	12,887,646	$	17,781,366	$	8,926,351	$	(21,999,063	)	$	17,596,300
Current liabilities	$	365,783	$	1,172,340	$	683,608	$	(985	)	$	2,220,746
Intercompany liabilities, net	1,534,892		3,099,564		2,693,572		(7,328,028		)	—
Long-term operating leases liabilities	133,926		1,554,717		1,062,852		(17,125		)	2,734,370
Long-term debt and other long-term liabilities	8,209,577		786,685		334,591		(51,049		)	9,279,804
Noncontrolling interests subject to put provisions	695,622		—		—		532,414			1,228,036
Total DaVita Inc. shareholders' equity	1,947,846		11,168,060		3,433,816		(14,601,876		)	1,947,846
Noncontrolling interests not subject to put provisions	—		—		717,912		(532,414		)	185,498
Total equity	1,947,846		11,168,060		4,151,728		(15,134,290		)	2,133,344
Total liabilities and equity	$	12,887,646	$	17,781,366	$	8,926,351	$	(21,999,063	)	$	17,596,300

As of December 31, 2019	DaVita Inc.		Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
Cash and cash equivalents	$	758,241	$	532	$	343,599	$	—		$	1,102,372
Restricted cash and equivalents	14,499		—		91,847		—			106,346
Accounts receivable, net	—		1,189,301		606,297		—			1,795,598
Other current assets	76,787		548,553		102,410		(41,896		)	685,854
Total current assets	849,527		1,738,386		1,144,153		(41,896		)	3,690,170
Property and equipment, net	543,932		1,589,417		1,344,543		(4,508		)	3,473,384
Operating lease right-of-use assets	109,415		1,656,145		1,084,552		(20,065		)	2,830,047
Intangible assets, net	362		31,569		103,753		—			135,684
Investments in and advances to affiliates, net	10,813,991		7,611,402		3,051,208		(21,476,601		)	—
Other long-term assets and investments	102,779		133,698		176,315		(18,318		)	394,474
Goodwill	—		4,812,972		1,974,663		—			6,787,635
Total assets	$	12,420,006	$	17,573,589	$	8,879,187	$	(21,561,388	)	$	17,311,394
Current liabilities	$	379,286	$	1,327,378	$	666,470	$	(1,036	)	$	2,372,098
Intercompany payables	1,381,863		3,051,208		2,615,151		(7,048,222		)	—
Long-term operating lease liabilities	136,123		1,567,776		1,039,145		(19,244		)	2,723,800
Long-term debt and other long-term liabilities	7,741,725		674,558		364,102		(64,507		)	8,715,878
Noncontrolling interests subject to put provisions	647,600		—		—		532,776			1,180,376
Total DaVita Inc. shareholders' equity	2,133,409		10,952,669		3,475,710		(14,428,379		)	2,133,409
Noncontrolling interests not subject to put provisions	—		—		718,609		(532,776		)	185,833
Total equity	2,133,409		10,952,669		4,194,319		(14,961,155		)	2,319,242
Total liabilities and equity	$	12,420,006	$	17,573,589	$	8,879,187	$	(21,561,388	)	$	17,311,394

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2020	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Cash flows provided by operating activities:
Net income	$	239,593		$	205,311		$	171,080		$	(328,089	)	$	287,895
Changes in operating assets and liabilities and non-cash items included in net income	(182,332		)	(71,454		)	(1,817		)	328,089			72,486
Net cash provided by operating activities	57,261			133,857			169,263			—			360,381
Cash flows used in investing activities:
Additions of property and equipment	(52,714		)	(41,144		)	(61,084		)	—			(154,942		)
Acquisitions	—			(984		)	(33,123		)	—			(34,107		)
Proceeds from asset and business sales	—			4,180			27,338			—			31,518
Proceeds (purchases) from investment sales and other items, net	452			271			(5,817		)	—			(5,094		)
Net cash used in investing activities	(52,262		)	(37,677		)	(72,686		)	—			(162,625		)
Cash flows provided by (used in) financing activities:
Long-term debt and related financing costs, net	481,856			(2,462		)	(13,557		)	—			465,837
Intercompany borrowings (payments)	153,029			(95,857		)	(57,172		)	—			—
Other items	(322,119		)	2,018			(48,744		)	—			(368,845		)
Net cash provided by (used in) financing activities	312,766			(96,301		)	(119,473		)	—			96,992
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(14,978		)	—			(14,978		)
Net increase (decrease) in cash, cash equivalents and restricted cash	317,765			(121		)	(37,874		)	—			279,770
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	772,740			532			435,446			—			1,208,718
Cash, cash equivalents and restricted cash of continuing operations at end of the period	$	1,090,505		$	411		$	397,572		$	—		$	1,488,488

For the three months ended March 31, 2019	DaVita Inc.			Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
Cash flows provided by (used in) operating activities:
Net income	$	149,289		$	188,771		$	50,337		$	(198,910	)	$	189,487
Changes in operating assets and liabilities and non-cash items included in net income	(124,409		)	(289,332		)	166,648			198,910			(48,183		)
Net cash provided by (used in) operating activities	24,880			(100,561		)	216,985			—			141,304
Cash flows used in investing activities:
Additions of property and equipment	(38,942		)	(76,529		)	(83,407		)	—			(198,878		)
Acquisitions	—			—			(11,274		)	—			(11,274		)
Proceeds from asset and business sales	—			2,270			11,633			—			13,903
Proceeds (purchases) from investment sales and other items, net	1,804			(3,878		)	(2,035		)	—			(4,109		)
Net cash used in investing activities	(37,138		)	(78,137		)	(85,083		)	—			(200,358		)
Cash flows provided by financing activities:
Long-term debt and related financing costs, net	365,133			(2,364		)	(5,572		)	—			357,197
Intercompany (payments) borrowings	(220,697		)	188,870			31,827			—			—
Other items	1,517			(8,427		)	(25,336		)	—			(32,246		)
Net cash provided by financing activities	145,953			178,079			919			—			324,951
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—			—			(921		)	—			(921		)
Net increase (decrease) in cash, cash equivalents and restricted cash	133,695			(619		)	131,900			—			264,976
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations	—			—			118,962			—			118,962
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations	133,695			(619		)	12,938			—			146,014
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	$	195,353		$	12,661		$	353,420		$	—		$	561,434

XML

Leases Leases - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Finance Lease, Right-of-Use Asset	$ 257,750	$ 247,246
Finance Lease Accumulated Depreciation	$ 33,318	$ 27,193
Minimum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	5 years
Lessee, Operating Lease, Renewal Term	5 years
Maximum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	15 years
Lessee, Operating Lease, Renewal Term	10 years

XML

Long-term debt - Additional Information (Detail) - USD ($)		3 Months Ended
	Feb. 13, 2020	Mar. 31, 2020	Mar. 31, 2019
Debt Instrument [Line Items]
Debt refinancing charges		$ 2,948,000	$ 0
Weighted average effective interest rate at quarter end		3.75%
Weighted average effective interest rate during quarter		4.35%
Percentage of debt instruments bearing fixed interest rate		41.83%
Letters of credit outstanding		$ 57,705,000
Revolving line of credit
Debt Instrument [Line Items]
Debt Instrument, Maturity Date		Aug. 12, 2024
Maximum borrowing capacity on the revolving credit facilities		$ 1,000,000,000
Term Loan B-1
Debt Instrument [Line Items]
Debt Instrument Agreement Date	Feb. 13, 2020
Debt Instrument, Maturity Date	Aug. 12, 2026
Additional Debt Principal Amount Due To New Agreement	$ 0
Debt refinancing charges		2,948,000
Noncash Financing Outflows Related To Extinguishment Of Long Term Debt		55,895,000
Debt Instrument, Periodic Payment, Principal		$ 6,858,000
Term Loan B-1 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
LIBOR plus interest rate margin	1.75%
Term Loan B
Debt Instrument [Line Items]
Debt Instrument, Maturity Date		Aug. 12, 2026
Cash outflows from extinguishment of secured debt		$ 68,842,000
Cash inflows from reborrowing of secured debt		$ 68,842,000
Term Loan A
Debt Instrument [Line Items]
Debt Instrument, Maturity Date		Aug. 12, 2024
Debt Instrument, Periodic Payment, Principal		$ 10,938,000
Term Loan A and Revolver subject to uncapped portion of variability of LIBOR
Debt Instrument [Line Items]
Line of credit outstanding principal balance		$ (1,464,392,000)
Senior Secured Credit Facilities
Debt Instrument [Line Items]
Weighted average effective interest rate at quarter end		2.78%

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Condensed consolidating financial statements - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 287,895	$ 189,487
Changes in operating assets and liabilities and non-cash items included in net income	72,486	(48,183)
Net cash provided by operating activities	360,381	141,304
Cash flows from investing activities:
Additions of property and equipment	(154,942)	(198,878)
Acquisitions	(34,107)	(11,274)
Proceeds from asset and business sales	31,518	13,903
Purchases from investment sales and other items, net	(5,094)	(4,109)
Net cash used in investing activities	(162,625)	(200,358)
Cash flows from financing activities:
Long-term debt and related financing costs, net	465,837	357,197
Intercompany borrowings (payments)	0	0
Other items	(368,845)	(32,246)
Net cash provided by financing activities	96,992	324,951
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(14,978)	(921)
Net increase in cash, cash equivalents and restricted cash	279,770	264,976
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	1,208,718	415,420
Cash, cash equivalents and restricted cash of continuing operations at end of the period	1,488,488	561,434
Consolidating adjustments
Cash flows from operating activities:
Net income	(328,089)	(198,910)
Changes in operating assets and liabilities and non-cash items included in net income	328,089	198,910
Net cash provided by operating activities	0	0
Cash flows from investing activities:
Additions of property and equipment	0	0
Acquisitions	0	0
Proceeds from asset and business sales	0	0
Purchases from investment sales and other items, net	0	0
Net cash used in investing activities	0	0
Cash flows from financing activities:
Long-term debt and related financing costs, net	0	0
Intercompany borrowings (payments)	0	0
Other items	0	0
Net cash provided by financing activities	0	0
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0	0
Net increase in cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	0	0
Cash, cash equivalents and restricted cash of continuing operations at end of the period	0	0
DaVita Inc. | Reportable Legal Entities
Cash flows from operating activities:
Net income	239,593	149,289
Changes in operating assets and liabilities and non-cash items included in net income	(182,332)	(124,409)
Net cash provided by operating activities	57,261	24,880
Cash flows from investing activities:
Additions of property and equipment	(52,714)	(38,942)
Acquisitions	0	0
Proceeds from asset and business sales	0	0
Purchases from investment sales and other items, net	452	1,804
Net cash used in investing activities	(52,262)	(37,138)
Cash flows from financing activities:
Long-term debt and related financing costs, net	481,856	365,133
Intercompany borrowings (payments)	153,029	(220,697)
Other items	(322,119)	1,517
Net cash provided by financing activities	312,766	145,953
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0	0
Net increase in cash, cash equivalents and restricted cash	317,765	133,695
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	772,740	61,658
Cash, cash equivalents and restricted cash of continuing operations at end of the period	1,090,505	195,353
Guarantor subsidiaries | Reportable Legal Entities
Cash flows from operating activities:
Net income	205,311	188,771
Changes in operating assets and liabilities and non-cash items included in net income	(71,454)	(289,332)
Net cash provided by operating activities	133,857	(100,561)
Cash flows from investing activities:
Additions of property and equipment	(41,144)	(76,529)
Acquisitions	(984)	0
Proceeds from asset and business sales	4,180	2,270
Purchases from investment sales and other items, net	271	(3,878)
Net cash used in investing activities	(37,677)	(78,137)
Cash flows from financing activities:
Long-term debt and related financing costs, net	(2,462)	(2,364)
Intercompany borrowings (payments)	(95,857)	188,870
Other items	2,018	(8,427)
Net cash provided by financing activities	(96,301)	178,079
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0	0
Net increase in cash, cash equivalents and restricted cash	(121)	(619)
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	532	13,280
Cash, cash equivalents and restricted cash of continuing operations at end of the period	411	12,661
Non- Guarantor subsidiaries | Reportable Legal Entities
Cash flows from operating activities:
Net income	171,080	50,337
Changes in operating assets and liabilities and non-cash items included in net income	(1,817)	166,648
Net cash provided by operating activities	169,263	216,985
Cash flows from investing activities:
Additions of property and equipment	(61,084)	(83,407)
Acquisitions	(33,123)	(11,274)
Proceeds from asset and business sales	27,338	11,633
Purchases from investment sales and other items, net	(5,817)	(2,035)
Net cash used in investing activities	(72,686)	(85,083)
Cash flows from financing activities:
Long-term debt and related financing costs, net	(13,557)	(5,572)
Intercompany borrowings (payments)	(57,172)	31,827
Other items	(48,744)	(25,336)
Net cash provided by financing activities	(119,473)	919
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(14,978)	(921)
Net increase in cash, cash equivalents and restricted cash	(37,874)	131,900
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	435,446	340,482
Cash, cash equivalents and restricted cash of continuing operations at end of the period	397,572	353,420
Discontinued Operations
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash	0	118,962
Discontinued Operations | Consolidating adjustments
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash		0
Discontinued Operations | DaVita Inc. | Reportable Legal Entities
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash		0
Discontinued Operations | Guarantor subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash		0
Discontinued Operations | Non- Guarantor subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash		118,962
Continuing Operations
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash	$ 279,770	146,014
Continuing Operations | Consolidating adjustments
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash		0
Continuing Operations | DaVita Inc. | Reportable Legal Entities
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash		133,695
Continuing Operations | Guarantor subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash		(619)
Continuing Operations | Non- Guarantor subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash		$ 12,938

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Share repurchases Share Repurchase Tender Offer (Details) - Open Market Purchases - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock (in shares)	4,052	0
Value of treasury stock acquired	$ 303,139	$ 0
Treasury stock acquired, average cost per share	$ 74.81	$ 0

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Changes in DaVita Inc.'s ownership interest in consolidated subsidiaries

3 Months Ended

Mar. 31, 2020

Noncontrolling Interest [Abstract]

Changes in DaVita Inc.'s ownership interest in consolidated subsidiaries

Changes in DaVita Inc.’s ownership interests in consolidated subsidiaries

The effects of changes in DaVita Inc.’s ownership interests in consolidated subsidiaries on the Company’s consolidated equity were as follows: 

	Three months ended March 31,
	2020			2019
Net income attributable to DaVita Inc.	$	239,593		$	149,289
Changes in paid-in capital for:
Purchases of noncontrolling interests	(445		)	(2,206		)
Net transfers to noncontrolling interests	(445		)	(2,206		)
Net income attributable to DaVita Inc., net of transfers to noncontrolling interests	$	239,148		$	147,083

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

3 Months Ended

Mar. 31, 2020

Held for Sale and Discontinued Operations [Abstract]

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

Discontinued operations previously held for sale

DaVita Medical Group

On June 19, 2019, the Company completed the sale of its DaVita Medical Group (DMG) business to Optum, a subsidiary of UnitedHealth Group Inc., for an aggregate purchase price of $4,340,000, prior to certain closing and post-closing adjustments specified in the related equity purchase agreement dated as of December 5, 2017, as amended as of September 20, 2018 and as of December 11, 2018 (as amended, the equity purchase agreement).

The Company recorded a preliminary estimated pre-tax net loss of approximately $23,022 on the sale of its DMG business in 2019. This preliminary net loss was based on initial estimates of the Company's expected aggregate proceeds from the sale, net of transaction costs and obligations, as well as the estimated values of DMG net assets sold as of the closing date. These estimated net proceeds included $4,465,476 in cash received from Optum at closing, or $3,824,509 net of cash and restricted cash included in the DMG net assets sold. During the three months ended March 31, 2020, the Company recognized $9,980 in additional tax benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act related to its period of DMG ownership, which have been recognized as an adjustment to the Company's loss on sale of the DMG business.

The ultimate net proceeds from the DMG sale, as well as the value of its previously held for sale net assets sold, remain subject to estimate revisions and post-closing adjustments pursuant to the equity purchase agreement, which could be material. The Company continues to work with Optum concerning what, if any, net working capital adjustment or other potential adjustments to the purchase price are appropriate, via the process set forth in the equity purchase agreement. Under the equity purchase agreement, the Company also has certain indemnification obligations that could require payments to the buyer relating

to the Company's previous ownership and operation of the DMG business. Potential payments under these provisions, if any, remain subject to significant uncertainties and could have a material adverse effect on the net proceeds ultimately retained by the Company or the total amount of its loss on the sale of this business.

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

	Three months ended March 31,
	2020		2019
Revenues	$	—	$	1,382,281
Expenses	—		1,338,153
Income from discontinued operations before taxes	—		44,128
Income tax expense	—		13,823
Gain (loss) on sale of discontinued operations, net of tax	9,980		—
Net income from discontinued operations, net of tax	$	9,980	$	30,305

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

	Three months ended March 31,
	2020		2019
Net cash provided by operating activities from discontinued operations	$	—	$	68,240
Net cash used in investing activities from discontinued operations	$	—	$	(22,809	)

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Fair value of financial instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Assets, Liabilities and Temporary Equity Measured at Fair Value on a Recurring Basis

The following table summarizes the Company’s assets, liabilities and temporary equity that are measured at fair value on a recurring basis as of March 31, 2020: 

	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Investments in equity securities	$	35,843	$	35,843	$	—	$	—
Interest rate cap agreements	$	7,106	$	—	$	7,106	$	—
Liabilities
Contingent earn-out obligations	$	22,386	$	—	$	—	$	22,386
Temporary equity
Noncontrolling interests subject to put provisions	$	1,228,036	$	—	$	—	$	1,228,036

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Revenue Recognition Segment Revenue by Payor (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Other revenues	$ 127,956	$ 113,423
Total revenues	2,841,237	2,743,112
Elimination of intersegment revenues
Disaggregation of Revenue [Line Items]
Total revenues	(36,394)	(33,977)
Medicare and Medicare Advantage
Disaggregation of Revenue [Line Items]
Patient service revenues	1,502,222	1,493,516
Other revenues	98,478	61,700
Medicaid and Managed Medicaid
Disaggregation of Revenue [Line Items]
Patient service revenues	171,467	154,190
Other revenues	366	6
Other Government Payors
Disaggregation of Revenue [Line Items]
Patient service revenues	206,484	190,602
Commercial Payors
Disaggregation of Revenue [Line Items]
Patient service revenues	865,049	821,801
Other revenues	10,521	32,619
Other
Disaggregation of Revenue [Line Items]
Other revenues	23,044	22,655
U.S. dialysis and related lab services
Disaggregation of Revenue [Line Items]
Total revenues	2,584,381	2,516,510
U.S. dialysis and related lab services | Elimination of intersegment revenues
Disaggregation of Revenue [Line Items]
Total revenues	(32,242)	(30,641)
U.S. dialysis and related lab services | Medicare and Medicare Advantage
Disaggregation of Revenue [Line Items]
Patient service revenues	1,502,222	1,493,516
U.S. dialysis and related lab services | Medicaid and Managed Medicaid
Disaggregation of Revenue [Line Items]
Patient service revenues	171,467	154,190
U.S. dialysis and related lab services | Other Government Payors
Disaggregation of Revenue [Line Items]
Patient service revenues	111,910	106,127
U.S. dialysis and related lab services | Commercial Payors
Disaggregation of Revenue [Line Items]
Patient service revenues	825,582	788,413
U.S. dialysis and related lab services | Other
Disaggregation of Revenue [Line Items]
Other revenues	5,442	4,905
Other—Ancillary services
Disaggregation of Revenue [Line Items]
Total revenues	256,856	226,602
Other—Ancillary services | Elimination of intersegment revenues
Disaggregation of Revenue [Line Items]
Total revenues	(4,152)	(3,336)
Other—Ancillary services | Medicare and Medicare Advantage
Disaggregation of Revenue [Line Items]
Other revenues	98,478	61,700
Other—Ancillary services | Medicaid and Managed Medicaid
Disaggregation of Revenue [Line Items]
Other revenues	366	6
Other—Ancillary services | Other Government Payors
Disaggregation of Revenue [Line Items]
Patient service revenues	94,574	84,475
Other—Ancillary services | Commercial Payors
Disaggregation of Revenue [Line Items]
Patient service revenues	39,467	33,388
Other revenues	10,521	32,619
Other—Ancillary services | Other
Disaggregation of Revenue [Line Items]
Other revenues	$ 17,602	$ 17,750

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Long-term incentive compensation - Additional Information (Detail) $ / shares in Units, shares in Thousands, $ in Thousands			3 Months Ended
	Jan. 23, 2020 $ / shares	Nov. 04, 2019 shares	Mar. 31, 2020 USD ($) shares	Mar. 31, 2019 USD ($)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Long-term incentive program (LTIP) expense			$ 25,594	$ 13,107
Stock-based compensation expense			19,870	12,110
Estimated tax benefits recorded for stock-based compensation			2,584	1,495
Compensation cost related to LTIP awards			66,302
Unrecognized compensation cost related to nonvested stock-based compensation arrangements under equity compensation and stock purchase plans			$ 247,420
Unrecognized compensation cost related to nonvested stock-based compensation arrangements under stock-based component of LTIP costs, weighted average remaining period (in years)			1 year 8 months 12 days
Longterm Incentive Compensation cash awards, number of awards outstanding			0
Share-based Payment Arrangement, Expense, Tax Benefit			$ 199	151
Restricted and Performance Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-settled awards granted (in shares) | shares			950
Aggregate grant-date fair value			$ 72,648
Weighted-average expected life (in years)			3 years 6 months
Stock Appreciation Rights
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-settled awards granted (in shares) | shares			2,765
Aggregate grant-date fair value			$ 73,833
Weighted-average expected life (in years)			4 years 9 months 18 days
Premium Priced Stock-Settled Stock Appreciation Rights
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-settled awards granted (in shares) | shares		2,500
Premium Priced Award Base Price Per Share | $ / shares	$ 67.80
Premium To The Tender Offer Share Purchase Price	20.00%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Nov. 04, 2024
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Holding Period, End Date	Nov. 04, 2024
Premium Priced Stock-Settled Stock Appreciation Rights | Vesting period, tranche one
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Date	Nov. 04, 2023
Premium Priced Stock-Settled Stock Appreciation Rights | Vesting period, tranche two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Date	Nov. 04, 2022
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense			$ 19,870	$ 10,301

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Leases Schedule of Minimum Lease Payments (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Operating leases
2020 (remainder of the year)	$ 344,537
2021	505,417
2022	472,643
2023	426,485
2024	372,190
2025	320,079
Thereafter	1,248,317
Total future minimum lease payments, operating leases	3,689,668
Less portion representing interest, operating lease liabilities	(599,265)
Present value of lease liabilities, operating leases	3,090,403
Finance leases
2020 (remainder of the year)	30,291
2021	34,177
2022	34,621
2023	34,700
2024	34,725
2025	34,549
Thereafter	153,800
Total future minimum lease payments	356,863
Less portion representing interest, finance lease liabilities	(81,771)
Present value of lease liabilities, finance leases	$ 275,092

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Long-term debt - Effects of Interest Rate Swap and Cap Agreements (Detail) - Cash Flow Hedging - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments Gain Loss [Line Items]
Amount of unrecognized losses in OCI on interest rate cap agreements	$ (13,018)	$ (580)
Reclassification from accumulated other comprehensive loss into net income	1,623	1,606
Related income tax
Derivative Instruments Gain Loss [Line Items]
Amount of unrecognized losses in OCI on interest rate cap agreements	4,328	201
Reclassification from accumulated other comprehensive loss into net income	(540)	(557)
Interest rate cap agreements | Debt Expense
Derivative Instruments Gain Loss [Line Items]
Amount of unrecognized losses in OCI on interest rate cap agreements	(17,346)	(781)
Reclassification from accumulated other comprehensive loss into net income	$ 2,163	$ 2,163

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Condensed consolidating financial statements - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Balance Sheet Statements Captions [Line Items]
Cash and cash equivalents	$ 1,381,764	$ 1,102,372
Restricted cash and equivalents	106,724	106,346
Accounts receivable, net	1,820,132	1,795,598
Other current assets	715,319	685,854
Total current assets	4,023,939	3,690,170
Property and equipment, net	3,445,423	3,473,384
Operating lease right-of-use asset	2,847,776	2,830,047
Intangible assets, net	117,953	135,684
Investments in and advances to affiliates, net	0	0
Other long-term assets and investments	383,186	394,474
Goodwill	6,778,023	6,787,635	$ 6,841,960
Total assets	17,596,300	17,311,394
Current liabilities	2,220,746	2,372,098
Intercompany liabilities, net	0	0
Long-term operating lease liabilities	2,734,370	2,723,800
Long-term debt and other long-term liabilities	9,279,804	8,715,878
Noncontrolling interests subject to put provisions	1,228,036	1,180,376
Total DaVita Inc. shareholders' equity	1,947,846	2,133,409
Noncontrolling interests not subject to put provisions	185,498	185,833
Total equity	2,133,344	2,319,242
Total liabilities and equity	17,596,300	17,311,394
Consolidating adjustments
Condensed Balance Sheet Statements Captions [Line Items]
Cash and cash equivalents	0	0
Restricted cash and equivalents	0	0
Accounts receivable, net	0	0
Other current assets	(28,034)	(41,896)
Total current assets	(28,034)	(41,896)
Property and equipment, net	(2,614)	(4,508)
Operating lease right-of-use asset	(17,987)	(20,065)
Intangible assets, net	0	0
Investments in and advances to affiliates, net	(21,929,904)	(21,476,601)
Other long-term assets and investments	(20,524)	(18,318)
Goodwill	0	0
Total assets	(21,999,063)	(21,561,388)
Current liabilities	(985)	(1,036)
Intercompany liabilities, net	(7,328,028)	(7,048,222)
Long-term operating lease liabilities	(17,125)	(19,244)
Long-term debt and other long-term liabilities	(51,049)	(64,507)
Noncontrolling interests subject to put provisions	532,414	532,776
Total DaVita Inc. shareholders' equity	(14,601,876)	(14,428,379)
Noncontrolling interests not subject to put provisions	(532,414)	(532,776)
Total equity	(15,134,290)	(14,961,155)
Total liabilities and equity	(21,999,063)	(21,561,388)
DaVita Inc. | Reportable Legal Entities
Condensed Balance Sheet Statements Captions [Line Items]
Cash and cash equivalents	1,075,965	758,241
Restricted cash and equivalents	14,540	14,499
Accounts receivable, net	0	0
Other current assets	86,786	76,787
Total current assets	1,177,291	849,527
Property and equipment, net	555,409	543,932
Operating lease right-of-use asset	107,620	109,415
Intangible assets, net	340	362
Investments in and advances to affiliates, net	10,961,209	10,813,991
Other long-term assets and investments	85,777	102,779
Goodwill	0	0
Total assets	12,887,646	12,420,006
Current liabilities	365,783	379,286
Intercompany liabilities, net	1,534,892	1,381,863
Long-term operating lease liabilities	133,926	136,123
Long-term debt and other long-term liabilities	8,209,577	7,741,725
Noncontrolling interests subject to put provisions	695,622	647,600
Total DaVita Inc. shareholders' equity	1,947,846	2,133,409
Noncontrolling interests not subject to put provisions	0	0
Total equity	1,947,846	2,133,409
Total liabilities and equity	12,887,646	12,420,006
Guarantor subsidiaries | Reportable Legal Entities
Condensed Balance Sheet Statements Captions [Line Items]
Cash and cash equivalents	411	532
Restricted cash and equivalents	0	0
Accounts receivable, net	1,184,686	1,189,301
Other current assets	556,210	548,553
Total current assets	1,741,307	1,738,386
Property and equipment, net	1,555,662	1,589,417
Operating lease right-of-use asset	1,643,765	1,656,145
Intangible assets, net	28,766	31,569
Investments in and advances to affiliates, net	7,869,131	7,611,402
Other long-term assets and investments	130,528	133,698
Goodwill	4,812,207	4,812,972
Total assets	17,781,366	17,573,589
Current liabilities	1,172,340	1,327,378
Intercompany liabilities, net	3,099,564	3,051,208
Long-term operating lease liabilities	1,554,717	1,567,776
Long-term debt and other long-term liabilities	786,685	674,558
Noncontrolling interests subject to put provisions	0	0
Total DaVita Inc. shareholders' equity	11,168,060	10,952,669
Noncontrolling interests not subject to put provisions	0	0
Total equity	11,168,060	10,952,669
Total liabilities and equity	17,781,366	17,573,589
Non- Guarantor subsidiaries | Reportable Legal Entities
Condensed Balance Sheet Statements Captions [Line Items]
Cash and cash equivalents	305,388	343,599
Restricted cash and equivalents	92,184	91,847
Accounts receivable, net	635,446	606,297
Other current assets	100,357	102,410
Total current assets	1,133,375	1,144,153
Property and equipment, net	1,336,966	1,344,543
Operating lease right-of-use asset	1,114,378	1,084,552
Intangible assets, net	88,847	103,753
Investments in and advances to affiliates, net	3,099,564	3,051,208
Other long-term assets and investments	187,405	176,315
Goodwill	1,965,816	1,974,663
Total assets	8,926,351	8,879,187
Current liabilities	683,608	666,470
Intercompany liabilities, net	2,693,572	2,615,151
Long-term operating lease liabilities	1,062,852	1,039,145
Long-term debt and other long-term liabilities	334,591	364,102
Noncontrolling interests subject to put provisions	0	0
Total DaVita Inc. shareholders' equity	3,433,816	3,475,710
Noncontrolling interests not subject to put provisions	717,912	718,609
Total equity	4,151,728	4,194,319
Total liabilities and equity	$ 8,926,351	$ 8,879,187

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Segment reporting

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment reporting

The Company’s operations are comprised of its U.S. dialysis and related lab services business, its various ancillary services and strategic initiatives, including its international operations, and its corporate administrative support.

On June 19, 2019, the Company completed the sale of its DMG division to Optum, a subsidiary of UnitedHealth Group Inc. As a result of this transaction, DMG's results of operations have been reported as discontinued operations for all periods presented.

The Company’s separate operating segments include its U.S. dialysis and related lab services business, each of its ancillary services and strategic initiatives, its kidney care operations in each foreign sovereign jurisdiction, its other health operations in each foreign sovereign jurisdiction, and its equity method investment in the APAC JV. The U.S. dialysis and related lab services business qualifies as a separately reportable segment, and all other ancillary services and strategic initiatives operating segments, including the international operating segments, have been combined and disclosed in the other segments category. See Note 25 to the Company's consolidated financial statements included in the 10-K for further description of how the Company determines and measures results for its operating segments.

The following is a summary of segment net revenues, segment operating margin (loss), and a reconciliation of segment operating margin to consolidated income before income taxes:

	Three months ended March 31,
	2020			2019
Segment revenues:
U.S. dialysis
Dialysis patient service revenues:
External sources	$	2,579,240		$	2,511,826
Intersegment revenues	31,941			30,420
U.S. dialysis patient service revenues	2,611,181			2,542,246
Other revenues(1):
External sources	5,141			4,684
Intersegment revenues	301			221
Total U.S. dialysis revenues	2,616,623			2,547,151
Other—Ancillary services
Dialysis patient service revenues, net	134,041			117,863
Other external sources	122,815			108,739
Intersegment revenues	4,152			3,336
Total ancillary services revenues	261,008			229,938
Total net segment revenues	2,877,631			2,777,089
Elimination of intersegment revenues	(36,394		)	(33,977		)
Consolidated revenues	$	2,841,237		$	2,743,112
Segment operating margin (loss):
U.S. dialysis	$	491,607		$	416,981
Other—Ancillary services	(2,646		)	(57,630		)
Total segment operating margin	488,961			359,351
Reconciliation of segment operating margin to consolidated income from continuing operations before income taxes:
Corporate administrative support	(23,585		)	(18,844		)
Consolidated operating income	465,376			340,507
Debt expense	(88,603		)	(131,519		)
Debt refinancing charges	(2,948		)	—
Other income, net	(4,350		)	6,940
Consolidated income from continuing operations before income taxes	$	369,475		$	215,928

(1) Includes management fee revenue from providing management and administrative services to dialysis ventures in which the Company owns a noncontrolling equity investment or which are wholly-owned by third parties.

A summary of assets by reportable segment was as follows:

	March 31, 2020		December 31, 2019
U.S. dialysis (including equity investments of $130,144 and $124,188, respectively)	$	16,075,622	$	15,778,880
Other—Ancillary services (including equity investments of $124,355 and $117,795, respectively)	1,520,678		1,532,514
Consolidated assets	$	17,596,300	$	17,311,394

Depreciation and amortization expense by reportable segment was as follows:

	Three months ended March 31,
	2020		2019
U.S. dialysis	$	146,300	$	140,780
Other—Ancillary services	8,379		7,748
	$	154,679	$	148,528

Expenditures for property and equipment by reportable segment were as follows:

	Three months ended March 31,
	2020		2019
U.S. dialysis	$	148,763	$	170,548
Other—Ancillary services	6,179		8,578
DMG—Discontinued operations	—		19,752
	$	154,942	$	198,878

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Acquisitions and divestitures

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Acquisitions and divestitures

Acquisitions and divestitures

During the three months ended March 31, 2020, the Company acquired dialysis businesses consisting of two dialysis centers located in the U.S. and 22 dialysis centers located outside the U.S. for a total of $34,107 in net cash, $875 in deferred purchase price obligations, and $5,007 in earn-out obligations and assumed liabilities. The assets and liabilities for these acquisitions were recorded at their estimated fair values at the dates of the acquisitions and are included in the Company’s condensed consolidated financial statements, as are their operating results, from the designated effective dates of the acquisitions.

The initial purchase price allocations for these transactions have been recorded at estimated fair values based on the best information available to management and will be finalized when certain information arranged to be obtained has been received. In particular, certain income tax amounts are pending final evaluation and quantification of pre-acquisition tax contingencies and filing of final tax returns. In addition, valuation of certain working capital items, fixed assets and intangibles are pending final audits and related valuation reports.

The following table summarizes the assets acquired and liabilities assumed in these transactions at their estimated acquisition date fair values: 

Current assets	$	7,412
Property and equipment	8,892
Intangible and other long-term assets	6,107
Goodwill	26,770
Deferred income taxes	1,513
Current liabilities	(10,705		)
	$	39,989

 Amortizable intangible assets acquired during the three months ended March 31, 2020 primarily represent non-compete agreements which had weighted-average estimated useful lives of approximately four years. The total estimated amount of goodwill deductible for tax purposes associated with these acquisitions was approximately $11,241.

Contingent earn-out obligations

The Company has several contingent earn-out obligations associated with acquisitions that could result in the Company paying the former owners of acquired companies a total of up to $31,723 if certain performance targets or quality margins are met primarily over the next one year to five years. As of March 31, 2020, the estimated fair values of these contingent earn-out obligations is $22,386, of which $4,579 is included in other current liabilities and the remaining $17,807 is included in other long-term liabilities in the Company’s consolidated balance sheet.

The following is a reconciliation of changes in contingent earn-out obligations for the three months ended March 31, 2020:

Balance at December 31, 2019	$	24,586
Contingent earn-out obligations associated with acquisitions	2,672
Foreign currency translation adjustment for contingent earn-out obligations	(4,874		)
Remeasurement of fair value for contingent earn-out obligations	2
Balance at March 31, 2020	$	22,386

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Other commitments

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Noncontrolling interests subject to put provisions and other commitments

Other commitments

The Company has certain other potential commitments to provide operating capital to a number of dialysis centers that are wholly-owned by third parties or businesses in which the Company maintains a noncontrolling equity interest as well as to physician-owned vascular access clinics or medical practices that the Company operates under management and administrative services agreements of approximately $9,460.

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Income taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

As of March 31, 2020, the Company’s total liability for unrecognized tax benefits relating to tax positions that do not meet the more-likely-than-not threshold was $68,602, of which $64,356 would impact the Company's effective tax rate if recognized. The total balance increased $388 from the December 31, 2019 balance of $68,214.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. At March 31, 2020 and December 31, 2019, the Company had approximately $15,249 and $14,428, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefits.

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Earnings per share (Notes)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings per share

Basic earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of common shares outstanding. Weighted average common shares outstanding include restricted stock unit awards that are no longer subject to forfeiture because the recipients have satisfied either the explicit vesting terms or retirement eligibility requirements.

Diluted earnings per share includes the dilutive effect of outstanding stock-settled stock appreciation rights and unvested stock units as computed under the treasury stock method.

The reconciliations of the numerators and denominators used to calculate basic and diluted earnings per share were as follows:

	Three months ended March 31,
	2020		2019
Net income from continuing operations attributable to DaVita Inc.	$	229,613	$	120,254
Net income from discontinued operations attributable to DaVita Inc.	9,980		29,035
Net income attributable to DaVita Inc.	$	239,593	$	149,289
Weighted average shares - basic	124,902		166,388
Assumed incremental shares from stock plans	1,993		393
Weighted average shares - diluted	126,895		166,781
Basic net income attributable to DaVita Inc. from:
Continuing operations per share	$	1.84	$	0.72
Discontinued operations per share	0.08		0.18
Basic net income per share attributable to DaVita Inc.	$	1.92	$	0.90
Diluted net income attributable to DaVita Inc. from:
Continuing operations per share	$	1.81	$	0.72
Discontinued operations per share	0.08		0.18
Diluted net income per share attributable to DaVita Inc.	$	1.89	$	0.90
Anti-dilutive stock-settled awards excluded from calculations(1)	3,207		6,150

(1)

Shares associated with stock-settled stock appreciation rights and performance stock units were excluded from the diluted denominator calculations because they are anti-dilutive under the treasury stock method.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 287,895	$ 189,487
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	154,679	148,528
Impairment charges	0	41,037
Debt refinancing charges	884	0
Stock-based compensation expense	19,870	12,110
Deferred income taxes	103,301	41,372
Equity investment loss, net	(9,482)	(337)
Other non-cash charges, net	5,055	1,720
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Accounts receivable	(32,966)	(132,292)
Inventories	1,835	3,324
Other receivables and other current assets	(24,965)	1,199
Other long-term assets	2,673	(1,997)
Accounts payable	(24,045)	(38,537)
Accrued compensation and benefits	(96,428)	(173,583)
Other current liabilities	3,982	17,236
Income taxes	(32,616)	32,502
Other long-term liabilities	709	(465)
Net cash provided by operating activities	360,381	141,304
Cash flows from investing activities:
Additions of property and equipment	(154,942)	(198,878)
Acquisitions	(34,107)	(11,274)
Proceeds from asset and business sales	31,518	13,903
Purchase of debt investments held-to-maturity	(5,049)	(209)
Purchase of other debt and equity investments	(2,633)	(3,290)
Proceeds from debt investments held-to-maturity	5,049	0
Proceeds from sale of other debt and equity investments	3,268	3,302
Purchase of equity method investments	(6,174)	(4,067)
Distributions from equity method investments	445	155
Net cash used in investing activities	(162,625)	(200,358)
Cash flows from financing activities:
Borrowings	570,779	17,133,464
Payments on long-term debt and other financing costs	(104,942)	(16,776,267)
Purchase of treasury stock	(321,798)	0
Distributions to noncontrolling interests	(58,131)	(44,230)
Stock award exercises and other share issuances, net	2,397	1,517
Contributions from noncontrolling interests	9,387	18,947
Purchases of noncontrolling interests	(700)	(8,480)
Net cash provided by financing activities	96,992	324,951
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(14,978)	(921)
Net increase in cash, cash equivalents and restricted cash	279,770	264,976
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year	1,208,718	415,420
Cash, cash equivalents and restricted cash of continuing operations at end of the period	1,488,488	561,434
Discontinued Operations
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash	0	118,962
Continuing Operations
Cash flows from financing activities:
Net increase in cash, cash equivalents and restricted cash	$ 279,770	$ 146,014

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CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Dialysis patient service revenues	$ 2,713,281	$ 2,629,689
Other revenues	127,956	113,423
Total revenues	2,841,237	2,743,112
Operating expenses and charges:
Patient care costs	1,975,449	1,964,935
General and administrative	263,576	250,813
Depreciation and amortization	154,679	148,528
Equity investment income	(17,843)	(2,708)
Goodwill impairment charges	0	41,037
Total operating expenses and charges	2,375,861	2,402,605
Operating income	465,376	340,507
Debt expense	(88,603)	(131,519)
Debt refinancing charges	(2,948)	0
Other (loss) income, net	(4,350)	6,940
Income from continuing operations before income taxes	369,475	215,928
Income tax expense	91,560	56,746
Net income from continuing operations	277,915	159,182
Net income from discontinued operations, net of tax	9,980	30,305
Net income	287,895	189,487
Less: Net income attributable to noncontrolling interests	(48,302)	(40,198)
Net income attributable to DaVita Inc.	$ 239,593	$ 149,289
Earnings per share attributable to DaVita Inc.:
Basic net income from continuing operations per share	$ 1.84	$ 0.72
Basic net income per share	1.92	0.90
Diluted net income from continuing operations per share	1.81	0.72
Diluted net income per share	$ 1.89	$ 0.90
Weighted average shares for earnings per share:
Basic (in shares)	124,901,671	166,387,958
Diluted (in shares)	126,894,847	166,780,657
Amounts attributable to DaVita Inc.:
Net income from continuing operations	$ 229,613	$ 120,254
Net income from discontinued operations	9,980	29,035
Net income attributable to DaVita Inc.	$ 239,593	$ 149,289

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Earnings per share Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The reconciliations of the numerators and denominators used to calculate basic and diluted earnings per share were as follows:

	Three months ended March 31,
	2020		2019
Net income from continuing operations attributable to DaVita Inc.	$	229,613	$	120,254
Net income from discontinued operations attributable to DaVita Inc.	9,980		29,035
Net income attributable to DaVita Inc.	$	239,593	$	149,289
Weighted average shares - basic	124,902		166,388
Assumed incremental shares from stock plans	1,993		393
Weighted average shares - diluted	126,895		166,781
Basic net income attributable to DaVita Inc. from:
Continuing operations per share	$	1.84	$	0.72
Discontinued operations per share	0.08		0.18
Basic net income per share attributable to DaVita Inc.	$	1.92	$	0.90
Diluted net income attributable to DaVita Inc. from:
Continuing operations per share	$	1.81	$	0.72
Discontinued operations per share	0.08		0.18
Diluted net income per share attributable to DaVita Inc.	$	1.89	$	0.90
Anti-dilutive stock-settled awards excluded from calculations(1)	3,207		6,150

(1)

Shares associated with stock-settled stock appreciation rights and performance stock units were excluded from the diluted denominator calculations because they are anti-dilutive under the treasury stock method.

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Long-term debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-term Debt

Long-term debt was comprised of the following: 

								As of March 31, 2020
	March 31, 2020			December 31, 2019			Maturity date	Interest rate		Estimated fair value(1)
Senior Secured Credit Facilities:
Term Loan A	$	1,728,125		$	1,739,063		8/12/2024	LIBOR + 1.50%		$	1,659,000
Term Loan B-1(2)	2,736,267			—			8/12/2026	LIBOR + 1.75%		$	2,640,498
Term Loan B(2)	—			2,743,125			8/12/2026	LIBOR + 2.25%		$	—
Revolving line of credit	500,000			—			8/12/2024	LIBOR + 1.50%		$	500,000
Senior Notes:
5 1/8% Senior Notes	1,750,000			1,750,000			7/15/2024	5.125	%	$	1,743,525
5% Senior Notes	1,500,000			1,500,000			5/1/2025	5.00	%	$	1,497,900
Acquisition obligations and other notes payable(3)	167,727			180,352			2020-2027	4.71	%	$	167,727
Financing lease obligations(4)	275,092			268,534			2020-2036	5.31	%
Total debt principal outstanding	8,657,211			8,181,074
Discount and deferred financing costs(5)	(68,757		)	(72,840		)
	8,588,454			8,108,234
Less current portion	(146,318		)	(130,708		)
	$	8,442,136		$	7,977,526

(1) Fair value estimates are based upon bid and ask quotes for the Company's senior secured credit facilities and senior notes, typically a level 2 input. The carrying values of acquisition obligations and other notes payable presented here approximate their estimated fair values, based on estimates of their current present values using level 2 interest rate inputs.

(2) On February 13, 2020, the Company entered into an amendment to its credit agreement governing its senior secured credit facilities to refinance the Term Loan B with a $2,743,125 secured Term Loan B-1.

(3) The interest rate presented for acquisition obligations and other notes payable is their weighted average interest rate based on the current interest rate in effect and assuming no changes to the LIBOR based interest rates.

(4) Financing lease obligations are measured at their approximate present value at inception. The interest rate presented is the weighted average discount rate embedded in financing leases outstanding.

(5)

As of March 31, 2020, the carrying amount of the Company’s senior secured credit facilities and senior notes include a discount of $6,207 and deferred financing costs of $42,420; and deferred financing costs of $20,130, respectively. As of December 31, 2019, the carrying amount of the Company’s senior secured credit facilities and senior notes include a discount of $6,457 and deferred financing costs of $45,444; and deferred financing costs of $20,939, respectively.

Scheduled Maturities of Long-term Debt

Scheduled maturities of long-term debt at March 31, 2020 were as follows:

2020 (remainder of the year)	$	95,359
2021	$	170,056
2022	$	172,376
2023	$	224,727
2024	$	3,671,586
2025	$	61,951
Thereafter	$	4,261,156

Schedule of Derivative Instruments

The following table summarizes the Company’s interest rate cap agreements outstanding as of March 31, 2020 and December 31, 2019, which are classified in "Other long-term assets" on its consolidated balance sheet: 

						Three months ended March 31, 2020				Fair value
	Notional amount		LIBOR maximum rate	Effective date	Expiration date	Debt expense		Recorded OCI loss		March 31, 2020		December 31, 2019
2015 cap agreements	$	3,500,000	3.50%	6/29/2018	6/30/2020	$	2,163	$	—	$	—	$	—
2019 cap agreements	$	3,500,000	2.00%	6/30/2020	6/30/2024			$	17,346	$	7,106	$	24,452

Effects of Interest Rate Swap and Cap Agreements

The following table summarizes the effects of the Company’s interest rate cap agreements for the three months ended March 31, 2020 and 2019:

	Amount of unrecognized losses in OCI on interest rate cap agreements						Income statement location	Reclassification from accumulated other comprehensive loss into net income
	Three months ended March 31,							Three months ended March 31,
Derivatives designated as cash flow hedges	2020			2019				2020			2019
Interest rate cap agreements	$	(17,346	)	$	(781	)	Debt expense	$	2,163		$	2,163
Related income tax	4,328			201			Related income tax	(540		)	(557		)
Total	$	(13,018	)	$	(580	)		$	1,623		$	1,606

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Liability for unrecognized tax benefits	$ 68,602	$ 68,214
Unrecognized tax benefits that would impact effective tax rate	64,356
Increase in liability for unrecognized tax benefits	388
Accrued interest and penalties related to unrecognized tax benefits, net of federal tax benefits	$ 15,249	$ 14,428

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Equity method and other investments Equity Method and Other Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Equity method and other investments	$ 254,499	$ 241,983
Adjusted cost method investments
Schedule of Equity Method Investments [Line Items]
Equity method and other investments	16,448	10,448
Other equity method partnerships
Schedule of Equity Method Investments [Line Items]
Equity method and other investments	114,355	114,611
APAC JV - Deconsolidated Noncontrolling Entity
Schedule of Equity Method Investments [Line Items]
Equity method and other investments	$ 123,696	$ 116,924

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Segment reporting - Summary of Segment Net Revenues, Segment Operating Income (Loss) and Reconciliation of Segment Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
U.S. dialysis and related lab services patient service revenues	$ 2,713,281	$ 2,629,689
Other revenues	127,956	113,423
Total revenues	2,841,237	2,743,112
Operating income (loss)	465,376	340,507
Corporate administrative support	(23,585)	(18,844)
Debt expense	(88,603)	(131,519)
Debt refinancing charges	(2,948)	0
Other (loss) income, net	(4,350)	6,940
Income from continuing operations before income taxes	369,475	215,928
U.S. dialysis and related lab services
Segment Reporting Information [Line Items]
Total revenues	2,584,381	2,516,510
Other—Ancillary services and strategic initiatives
Segment Reporting Information [Line Items]
Total revenues	256,856	226,602
Operating Segments
Segment Reporting Information [Line Items]
Total revenues	2,877,631	2,777,089
Operating income (loss)	488,961	359,351
Operating Segments | U.S. dialysis and related lab services
Segment Reporting Information [Line Items]
U.S. dialysis and related lab services patient service revenues	2,611,181	2,542,246
Total revenues	2,616,623	2,547,151
Operating income (loss)	491,607	416,981
Operating Segments | U.S. dialysis and related lab services | External Sources
Segment Reporting Information [Line Items]
Dialysis patient service revenues	2,579,240	2,511,826
Other revenues	5,141	4,684
Operating Segments | U.S. dialysis and related lab services | Intersubsegment Eliminations
Segment Reporting Information [Line Items]
Dialysis patient service revenues	31,941	30,420
Other revenues	301	221
Operating Segments | Other—Ancillary services and strategic initiatives
Segment Reporting Information [Line Items]
Dialysis patient service revenues	134,041	117,863
Other revenues	122,815	108,739
Total revenues	261,008	229,938
Operating income (loss)	(2,646)	(57,630)
Operating Segments | Other—Ancillary services and strategic initiatives | Intersubsegment Eliminations
Segment Reporting Information [Line Items]
Dialysis patient service revenues	4,152	3,336
Intersegment Elimination
Segment Reporting Information [Line Items]
Total revenues	(36,394)	(33,977)
Intersegment Elimination | U.S. dialysis and related lab services
Segment Reporting Information [Line Items]
Total revenues	(32,242)	(30,641)
Intersegment Elimination | Other—Ancillary services and strategic initiatives
Segment Reporting Information [Line Items]
Total revenues	$ (4,152)	$ (3,336)

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Accumulated other comprehensive (loss) income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 2,319,242
Ending balance	2,133,344
Interest rate cap agreements
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(1,433)	$ (8,961)
Unrealized (losses) gains	(17,346)	(781)
Related income tax benefit	4,328	201
Unrealized (losses) gains net	(13,018)	(580)
Reclassification into net income	2,163	2,163
Related income	(540)	(557)
Reclassification from accumulated other comprehensive income into net income net of tax	1,623	1,606
Ending balance	(12,828)	(7,935)
Foreign currency translation adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(46,065)	(25,963)
Unrealized (losses) gains	(81,632)	(13,653)
Related income tax benefit	0	0
Unrealized (losses) gains net	(81,632)	(13,653)
Reclassification into net income	0	0
Related income	0	0
Reclassification from accumulated other comprehensive income into net income net of tax	0	0
Ending balance	(127,697)	(39,616)
Accumulated other comprehensive (loss) income
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(47,498)	(34,924)
Unrealized (losses) gains	(98,978)	(14,434)
Related income tax benefit	4,328	201
Unrealized (losses) gains net	(94,650)	(14,233)
Reclassification into net income	2,163	2,163
Related income	(540)	(557)
Reclassification from accumulated other comprehensive income into net income net of tax	1,623	1,606
Ending balance	$ (140,525)	$ (47,551)

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Held for Sale and Discontinued Operations Schedule of Financial Results of DMG's Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net (loss) income from discontinued operations, net of tax	$ 9,980	$ 30,305
DMG held for sale | Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	0	1,382,281
Expenses	0	1,338,153
(Loss) income from discontinued operations before taxes	0	44,128
Income tax expense	0	13,823
Coronavirus Aid Relief And Economic Security Act Additional Tax Benefit | DMG held for sale | Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Disposition of Business	$ 9,980	$ 0

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Segment reporting - Summary of Expenditures for Property and Equipment by Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Expenditures for property and equipment	$ 154,942	$ 198,878
U.S. dialysis and related lab services
Segment Reporting Information [Line Items]
Expenditures for property and equipment	148,763	170,548
Other—Ancillary services and strategic initiatives
Segment Reporting Information [Line Items]
Expenditures for property and equipment	6,179	8,578
DMG held for sale
Segment Reporting Information [Line Items]
Expenditures for property and equipment	$ 0	$ 19,752

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Condensed consolidating financial statements - Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Financial Statements Captions [Line Items]
Net income	$ 287,895	$ 189,487
Other comprehensive income	(93,027)	(12,627)
Total comprehensive income	194,868	176,860
Less: Comprehensive income attributable to noncontrolling interests	(48,302)	(40,198)
Comprehensive income attributable to DaVita Inc.	146,566	136,662
Consolidating adjustments
Condensed Financial Statements Captions [Line Items]
Net income	(328,089)	(198,910)
Other comprehensive income	0	0
Total comprehensive income	(328,089)	(198,910)
Less: Comprehensive income attributable to noncontrolling interests	(48,302)	(40,198)
Comprehensive income attributable to DaVita Inc.	(376,391)	(239,108)
DaVita Inc. | Reportable Legal Entities
Condensed Financial Statements Captions [Line Items]
Net income	239,593	149,289
Other comprehensive income	(11,395)	1,026
Total comprehensive income	228,198	150,315
Less: Comprehensive income attributable to noncontrolling interests	0	0
Comprehensive income attributable to DaVita Inc.	228,198	150,315
Guarantor subsidiaries | Reportable Legal Entities
Condensed Financial Statements Captions [Line Items]
Net income	205,311	188,771
Other comprehensive income	0	0
Total comprehensive income	205,311	188,771
Less: Comprehensive income attributable to noncontrolling interests	0	0
Comprehensive income attributable to DaVita Inc.	205,311	188,771
Non- Guarantor subsidiaries | Reportable Legal Entities
Condensed Financial Statements Captions [Line Items]
Net income	171,080	50,337
Other comprehensive income	(81,632)	(13,653)
Total comprehensive income	89,448	36,684
Less: Comprehensive income attributable to noncontrolling interests	0	0
Comprehensive income attributable to DaVita Inc.	$ 89,448	$ 36,684

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Fair value of financial instruments - Assets, Liabilities and Temporary Equity Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Investments in equity securities	$ 35,843	$ 39,951
Fair Value, Measurements, Recurring
Assets
Investments in equity securities	35,843
Liabilities
Contingent earn-out obligations	22,386
Temporary equity
Noncontrolling interests subject to put provisions	1,228,036
Fair Value, Measurements, Recurring | Interest rate cap agreements
Assets
Interest rate cap agreements	7,106
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1)
Assets
Investments in equity securities	35,843
Liabilities
Contingent earn-out obligations	0
Temporary equity
Noncontrolling interests subject to put provisions	0
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Interest rate cap agreements
Assets
Interest rate cap agreements	0
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2)
Assets
Investments in equity securities	0
Liabilities
Contingent earn-out obligations	0
Temporary equity
Noncontrolling interests subject to put provisions	0
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Interest rate cap agreements
Assets
Interest rate cap agreements	7,106
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3)
Assets
Investments in equity securities	0
Liabilities
Contingent earn-out obligations	22,386
Temporary equity
Noncontrolling interests subject to put provisions	1,228,036
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Interest rate cap agreements
Assets
Interest rate cap agreements	$ 0