Segment reporting

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment reporting

The Company’s operating divisions are comprised of its U.S. dialysis and related lab services business (its U.S. dialysis business), its U.S. integrated kidney care business, its U.S. other ancillary services and its international operations (collectively, its ancillary services), as well as its corporate administrative support.

The Company’s separate operating segments include its U.S. dialysis and related lab services business, its U.S. integrated kidney care business, its U.S. other ancillary services, its kidney care operations in each foreign sovereign jurisdiction, and its equity method investment in the Asia Pacific joint venture (APAC JV). The U.S. dialysis and related lab services business qualifies as a separately reportable segment, and all other 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 2021 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 September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Segment revenues:
U.S. dialysis
Dialysis patient service revenues:
External sources	$	2,674,240	$	2,669,823	$	7,858,939	$	7,874,759
Intersegment revenues	22,957		22,007		64,526		70,196
U.S. dialysis patient service revenues	2,697,197		2,691,830		7,923,465		7,944,955
Other revenues:
External sources	6,056		6,119		18,134		19,080
Intersegment revenues	—		97		(10)		228
Total U.S. dialysis revenues	2,703,253		2,698,046		7,941,589		7,964,263
Other—Ancillary services
Dialysis patient service revenues	172,254		168,117		513,935		495,725
Other external sources	96,144		94,260		301,998		285,266
Intersegment revenues	—		—		—		4,294
Total ancillary services revenues	268,398		262,377		815,933		785,285
Total net segment revenues	2,971,651		2,960,423		8,757,522		8,749,548
Elimination of intersegment revenues	(22,957)		(22,104)		(64,516)		(74,718)
Consolidated revenues	$	2,948,694	$	2,938,319	$	8,693,006	$	8,674,830
Segment operating margin (loss):
U.S. dialysis	$	351,474	$	509,939	$	1,230,715	$	1,523,625
Other—Ancillary services	(15,271)		(6,909)		(56,689)		(36,577)
Total segment operating margin	336,203		503,030		1,174,026		1,487,048
Reconciliation of segment operating income to  consolidated income before income taxes:
Corporate administrative support	(24,417)		(28,153)		(91,217)		(79,093)
Consolidated operating income	311,787		474,877		1,082,810		1,407,955
Debt expense	(99,680)		(72,829)		(256,057)		(213,167)
Other (loss) income, net	(4,898)		(7,590)		(7,968)		8,766
Consolidated income before income taxes	$	207,209	$	394,458	$	818,785	$	1,203,554

Depreciation and amortization expense by reportable segment was as follows:

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
U.S. dialysis	$	184,688	$	161,252	$	507,320	$	477,054
Other—Ancillary services	9,726		9,210		31,214		28,798
	$	194,414	$	170,462	$	538,534	$	505,852

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

	Nine months ended September 30,
	2022		2021
U.S. dialysis	$	363,046	$	415,994
Other—Ancillary services	46,345		35,915
	$	409,391	$	451,909

 

A summary of assets by reportable segment were as follows:

	September 30, 2022		December 31, 2021
U.S. dialysis	$	15,223,532	$	15,375,000
Other—Ancillary services	1,738,267		1,746,488
Consolidated assets	$	16,961,799	$	17,121,488