Condensed Consolidating Financial Statements

3 Months Ended

Mar. 31, 2017

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 substantially all of its domestic subsidiaries. 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.

Condensed Consolidating Statements of Income

				Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
For The Three Months Ended March 31, 2017	DaVita Inc.
Patient services revenues	$	—		$	1,553,356		$	1,098,752		$	(50,730	)	$	2,601,378
Less: Provision for uncollectible accounts	—			(62,281		)	(50,702		)	—			(112,983		)
Net patient service revenues	—			1,491,075			1,048,050			(50,730		)	2,488,395
Capitated revenues	—			463,627			454,954			(545		)	918,036
Other revenues	221,386			477,675			35,637			(443,846		)	290,852
Total net revenues	221,386			2,432,377			1,538,641			(495,121		)	3,697,283
Operating expenses and charges	131,910			1,880,155			1,292,103			(495,121		)	2,809,047
Operating income	89,476			552,222			246,538			—			888,236
Debt expense	(102,664		)	(91,401		)	(13,716		)	103,352			(104,429		)
Other income, net	100,337			3,537			3,721			(103,352		)	4,243
Income tax expense	34,093			221,421			32,251			—			287,765
Equity earnings in subsidiaries	394,641			151,704			—			(546,345		)	—
Net income	447,697			394,641			204,292			(546,345		)	500,285
Less: Net income attributable to noncontrolling interests	—			—			—			(52,588		)	(52,588		)
Net income attributable to DaVita Inc.	$	447,697		$	394,641		$	204,292		$	(598,933	)	$	447,697

				Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
For The Three Months Ended March 31, 2016	DaVita Inc.
Patient service revenues	$	—		$	1,653,312		$	868,037		$	(39,416	)	$	2,481,933
Less: Provision for uncollectible accounts	—			(58,813		)	(50,392		)	—			(109,205		)
Net patient service revenues	—			1,594,499			817,645			(39,416		)	2,372,728
Capitated revenues	—			467,001			420,173			(127		)	887,047
Other revenues	186,975			485,316			27,521			(378,451		)	321,361
Total net revenues	186,975			2,546,816			1,265,339			(417,994		)	3,581,136
Operating expenses	122,273			2,377,630			1,134,338			(417,994		)	3,216,247
Operating income	64,702			169,186			131,001			—			364,889
Debt expense	(101,101		)	(92,173		)	(11,514		)	101,904			(102,884		)
Other income	98,560			4,336			1,984			(101,904		)	2,976
Income tax expense	35,146			73,254			18,422			—			126,822
Equity earnings in subsidiaries	70,419			62,324			—			(132,743		)	—
Net income	97,434			70,419			103,049			(132,743		)	138,159
Less: Net income attributable to noncontrolling interests	—			—			—			(40,725		)	(40,725		)
Net income attributable to DaVita Inc.	$	97,434		$	70,419		$	103,049		$	(173,468	)	$	97,434

Condensed Consolidating Statements of Comprehensive Income

				Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
For The Three Months Ended March 31, 2017	DaVita Inc.
Net income	$	447,697		$	394,641	$	204,292	$	(546,345	)	$	500,285
Other comprehensive (loss) income	(506		)	—		13,261		—			12,755
Total comprehensive income	447,191			394,641		217,553		(546,345		)	513,040
Less: Comprehensive income attributable to    noncontrolling interest	—			—		—		(52,586		)	(52,586		)
Comprehensive income attributable to DaVita Inc.	$	447,191		$	394,641	$	217,553	$	(598,931	)	$	460,454

				Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
For The Three Months Ended March 31, 2016	DaVita Inc.
Net income	$	97,434		$	70,419	$	103,049	$	(132,743	)	$	138,159
Other comprehensive (loss) income	(4,868		)	—		11,181		—			6,313
Total comprehensive income	92,566			70,419		114,230		(132,743		)	144,472
Less: comprehensive income attributable to the    noncontrolling interests	—			—		—		(40,725		)	(40,725		)
Comprehensive income attributable to DaVita Inc.	$	92,566		$	70,419	$	114,230	$	(173,468	)	$	103,747

Condensed Consolidating Balance Sheets

			Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
As of March 31, 2017	DaVita Inc.
Cash and cash equivalents	$	1,078,071	$	74,633	$	319,528	$	—		$	1,472,232
Accounts receivable, net	—		1,216,764		683,797		—			1,900,561
Other current assets	339,626		814,917		76,564		—			1,231,107
Total current assets	1,417,697		2,106,314		1,079,889		—			4,603,900
Property and equipment, net	347,805		1,664,888		1,158,506		—			3,171,199
Intangible assets, net	421		1,448,086		38,522		—			1,487,029
Investments in subsidiaries	10,231,471		2,334,152		—		(12,565,623		)	—
Intercompany receivables	2,840,305		—		1,158,246		(3,998,551		)	—
Other long-term assets and investments	45,042		87,414		541,210		—			673,666
Goodwill	—		7,858,841		1,593,629		—			9,452,470
Total assets	$	14,882,741	$	15,499,695	$	5,570,002	$	(16,564,174	)	$	19,388,264
Current liabilities	$	557,557	$	1,697,937	$	558,083	$	—		$	2,813,577
Intercompany payables	—		2,337,683		1,660,868		(3,998,551		)	—
Long-term debt and other long-term liabilities	8,599,938		1,232,604		421,706		—			10,254,248
Noncontrolling interests subject to put provisions	585,317		—		—		394,531			979,848
Total DaVita Inc. shareholder's equity	5,139,929		10,231,471		2,334,152		(12,565,623		)	5,139,929
Noncontrolling interests not subject to put provisions	—		—		595,193		(394,531		)	200,662
Total equity	5,139,929		10,231,471		2,929,345		(12,960,154		)	5,340,591
Total liabilities and equity	$	14,882,741	$	15,499,695	$	5,570,002	$	(16,564,174	)	$	19,388,264

			Guarantor subsidiaries		Non- Guarantor subsidiaries		Consolidating adjustments			Consolidated total
As of December 31, 2016	DaVita Inc.
Cash and cash equivalents	$	549,921	$	59,192	$	304,074	$	—		$	913,187
Accounts receivable, net	—		1,215,232		702,070		—			1,917,302
Other current assets	277,911		736,727		135,101		—			1,149,739
Total current assets	827,832		2,011,151		1,141,245		—			3,980,228
Property and equipment, net	337,200		1,689,798		1,148,369		—			3,175,367
Intangible assets, net	487		1,491,057		36,223		—			1,527,767
Investments in subsidiaries	9,717,728		2,002,660		—		(11,720,388		)	—
Intercompany receivables	3,250,692		—		866,955		(4,117,647		)	—
Other long-term assets and investments	39,994		86,710		523,874		—			650,578
Goodwill	—		7,838,984		1,568,333		—			9,407,317
Total assets	$	14,173,933	$	15,120,360	$	5,284,999	$	(15,838,035	)	$	18,741,257
Current liabilities	$	303,840	$	1,865,193	$	527,412	$	—		$	2,696,445
Intercompany payables	—		2,322,124		1,795,523		(4,117,647		)	—
Long-term debt and other long-term liabilities	8,614,445		1,215,315		392,053		—			10,221,813
Noncontrolling interests subject to put provisions	607,601		—		—		365,657			973,258
Total DaVita Inc. shareholder's equity	4,648,047		9,717,728		2,002,660		(11,720,388		)	4,648,047
Noncontrolling interests not subject to put provisions	—		—		567,351		(365,657		)	201,694
Total equity	4,648,047		9,717,728		2,570,011		(12,086,045		)	4,849,741
Total liabilities and equity	$	14,173,933	$	15,120,360	$	5,284,999	$	(15,838,035	)	$	18,741,257

Condensed Consolidating Statements of Cash Flows

				Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
For The Three Months Ended March 31, 2017	DaVita Inc.
Cash flows from operating activities:
Net income	$	447,697		$	394,641		$	204,292		$	(546,345	)	$	500,285
Changes in operating assets and liabilities and non-cash items included in net income	(149,767		)	(131,683		)	99,994			546,345			364,889
Net cash provided by operating activities	297,930			262,958			304,286			—			865,174
Cash flows from investing activities:
Additions of property and equipment, net	(30,580		)	(133,909		)	(50,046		)	—			(214,535		)
Acquisitions	—			(70,237		)	(6,999		)	—			(77,236		)
Proceeds from asset and business sales	—			46,612			—			—			46,612
(Purchases) proceeds from investment sales and other items, net	(54,150		)	(1,976		)	51,273			—			(4,853		)
Net cash used in investing activities	(84,730		)	(159,510		)	(5,772		)	—			(250,012		)
Cash flows from financing activities:
Long-term debt and related financing costs, net	(27,504		)	(4,616		)	(4,021		)	—			(36,141		)
Intercompany borrowing (payments)	339,124			(82,592		)	(256,532		)	—			—
Other items	3,330			(799		)	(25,327		)	—			(22,796		)
Net cash provided by (used in) financing activities	314,950			(88,007		)	(285,880		)	—			(58,937		)
Effect of exchange rate changes on cash	—			—			2,820			—			2,820
Net increase in cash and cash equivalents	528,150			15,441			15,454			—			559,045
Cash and cash equivalents at beginning of period	549,921			59,192			304,074			—			913,187
Cash and cash equivalents at end of period	$	1,078,071		$	74,633		$	319,528		$	—		$	1,472,232

				Guarantor subsidiaries			Non- Guarantor subsidiaries			Consolidating adjustments			Consolidated total
For The Three Months Ended March 31, 2016	DaVita Inc.
Cash flows from operating activities:
Net income	$	97,434		$	70,419		$	103,049		$	(132,743	)	$	138,159
Changes in operating assets and liabilities and non-cash    items included in net income	(18,699		)	217,405			(40,606		)	132,743			290,843
Net cash provided by operating activities	78,735			287,824			62,443			—			429,002
Cash flows from investing activities:
Additions of property and equipment, net	(16,865		)	(86,055		)	(70,267		)	—			(173,187		)
Acquisitions	—			(400,093		)	(5,061		)	—			(405,154		)
Proceeds from asset and business sales	—			4,657			—			—			4,657
(Purchases) proceeds from investment sales and other    items, net	23,387			(7,438		)	3,424			—			19,373
Net cash provided by (used in) investing activities	6,522			(488,929		)	(71,904		)	—			(554,311		)
Cash flows from financing activities:
Long-term debt and related financing costs, net	(21,247		)	(1,977		)	(1,347		)	—			(24,571		)
Intercompany borrowing (payments)	(315,986		)	167,702			148,284			—			—
Other items	(267,551		)	(756		)	(40,219		)	—			(308,526		)
Net cash provided by (used in) financing activities	(604,784		)	164,969			106,718			—			(333,097		)
Effect of exchange rate changes on cash	—			—			717			—			717
Net increase in cash and cash equivalents	(519,527		)	(36,136		)	97,974			—			(457,689		)
Cash and cash equivalents at beginning of period	1,186,636			109,357			203,123			—			1,499,116
Cash and cash equivalents at end of period	$	667,109		$	73,221		$	301,097		$	—		$	1,041,427