Segment reporting

3 Months Ended

Mar. 31, 2023

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. IKC 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. IKC 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 2022 10-K for further description of how the Company determines and measures results for its operating segments.

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

	Three months ended March 31,
	2023		2022
Segment revenues:
U.S. dialysis
Dialysis patient service revenues:
External sources	$	2,583,933	$	2,546,961
Intersegment revenues	22,047		22,159
U.S. dialysis patient service revenues	2,605,980		2,569,120
Other revenues:
External sources	6,180		5,966
Intersegment revenues	—		10
Total U.S. dialysis revenues	2,612,160		2,575,096
Other—Ancillary services
Dialysis patient service revenues	176,101		169,320
Other external sources	106,485		95,308
Intersegment revenues	1,368		—
Total ancillary services revenues	283,954		264,628
Total net segment revenues	2,896,114		2,839,724
Elimination of intersegment revenues	(23,415)		(22,169)
Consolidated revenues	$	2,872,699	$	2,817,555
Segment operating margin (loss):
U.S. dialysis	$	361,098	$	406,440
Other—Ancillary services	(24,865)		(32,305)
Total segment operating margin	336,233		374,135
Reconciliation of segment operating income to consolidated income before income  taxes:
Corporate administrative support	(24,588)		(35,827)
Consolidated operating income	311,645		338,308
Debt expense	(100,774)		(73,791)
Other income (loss), net	3,752		(1,786)
Consolidated income before income taxes	$	214,623	$	262,731

Depreciation and amortization expense by reportable segment was as follows:

	Three months ended March 31,
	2023		2022
U.S. dialysis	$	166,961	$	162,019
Other—Ancillary services	11,110		10,925
	$	178,071	$	172,944

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

	Three months ended March 31,
	2023		2022
U.S. dialysis	$	130,966	$	107,513
Other—Ancillary services	16,739		15,595
	$	147,705	$	123,108

 

A summary of assets by reportable segment were as follows:

	March 31, 2023		December 31, 2022
U.S. dialysis	$	14,789,095	$	15,084,454
Other—Ancillary services	1,938,692		1,843,798
Consolidated assets	$	16,727,787	$	16,928,252