Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income

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 Income

	Consolidated Total			Physician Groups			Unrestricted Subsidiaries			Company and Restricted Subsidiaries(1)
For The Three Months Ended March 31, 2017
Patient service operating revenues	$	2,601,378		$	133,537		$	—		$	2,467,841
Less: Provision for uncollectible accounts	(112,983		)	(3,725		)	—			(109,258		)
Net patient service operating revenues	2,488,395			129,812			—			2,358,583
Capitated revenues	918,036			384,262			—			533,774
Other revenues	290,852			9,851			—			281,001
Total net operating revenues	3,697,283			523,925			—			3,173,358
Operating expenses	2,809,047			500,390			(166		)	2,308,823
Operating income	888,236			23,535			166			864,535
Debt expense, including refinancing charges	(104,429		)	(1,450		)	—			(102,979		)
Other income	4,243			35			—			4,208
Income tax expense	287,765			18,594			66			269,105
Net income (loss)	500,285			3,526			100			496,659
Less: Net income attributable to noncontrolling interests	(52,588		)	—			—			(52,588		)
Net income (loss) attributable to DaVita Inc.	$	447,697		$	3,526		$	100		$	444,071

(1) After elimination of the unrestricted subsidiaries and the physician groups.

Condensed Consolidating Statements of Comprehensive Income

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 Statements of Comprehensive Income

	Consolidated Total			Physician Groups		Unrestricted Subsidiaries		Company and Restricted Subsidiaries(1)
For The Three Months Ended March 31, 2017
Net income (loss)	$	500,285		$	3,526	$	100	$	496,659
Other comprehensive loss	12,755			—		—		12,755
Total comprehensive income (loss)	513,040			3,526		100		509,414
Less: comprehensive income attributable to the noncontrolling    interests	(52,586		)	—		—		(52,586		)
Comprehensive income (loss) attributable to DaVita Inc.	$	460,454		$	3,526	$	100	$	456,828

(1) After elimination of the unrestricted subsidiaries and the physician groups.

Condensed Consolidating Balance Sheets

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 Balance Sheets

	Consolidated Total		Physician Groups		Unrestricted Subsidiaries		Company and Restricted Subsidiaries(1)
As of March 31, 2017
Cash and cash equivalents	$	1,472,232	$	99,086	$	—	$	1,373,146
Accounts receivable, net	1,900,561		202,006		—		1,698,555
Other current assets	1,231,107		14,819		—		1,216,288
Total current assets	4,603,900		315,911		—		4,287,989
Property and equipment, net	3,171,199		1,268		—		3,169,931
Amortizable intangibles, net	1,487,029		4,576		—		1,482,453
Other long-term assets	673,666		81,419		2,880		589,367
Goodwill	9,452,470		16,796		—		9,435,674
Total assets	$	19,388,264	$	419,970	$	2,880	$	18,965,414
Current liabilities	$	2,813,577	$	204,998	$	—	$	2,608,579
Payables to parent	—		61,723		2,880		(64,603		)
Long-term debt and other long-term liabilities	10,254,248		45,226		—		10,209,022
Noncontrolling interests subject to put provisions	979,848		—		—		979,848
Total DaVita Inc. shareholders’ equity	5,139,929		108,023		—		5,031,906
Noncontrolling interests not subject to put provisions	200,662		—		—		200,662
Shareholders’ equity	5,340,591		108,023		—		5,232,568
Total liabilities and shareholder’s equity	$	19,388,264	$	419,970	$	2,880	$	18,965,414

(1) After elimination of the unrestricted subsidiaries and the physician groups.

Condensed Consolidating Statements of Cash Flows

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

Condensed Consolidating Statements of Cash Flows

	Consolidated Total			Physician Groups			Unrestricted Subsidiaries			Company and Restricted Subsidiaries(1)
For The Three Months Ended March 31, 2017
Cash flows from operating activities:
Net income	$	500,285		$	3,526		$	100		$	496,659
Changes in operating and intercompany assets and liabilities    and non-cash items included in net income	364,889			(14,847		)	(100		)	379,836
Net cash provided by (used in) operating activities	865,174			(11,321		)	—			876,495
Cash flows from investing activities:
Additions of property and equipment	(214,535		)	(10		)	—			(214,525		)
Acquisitions and divestitures, net	(77,236		)	—			—			(77,236		)
Proceeds from discontinued operations	46,612			—			—			46,612
Investments and other items	(4,853		)	(946		)	—			(3,907		)
Net cash used in investing activities	(250,012		)	(956		)	—			(249,056		)
Cash flows from financing activities:
Long-term debt	(36,141		)	—			—			(36,141		)
Intercompany	—			6,672			—			(6,672		)
Other items	(22,796		)	—			—			(22,796		)
Net cash (used in) provided by financing activities	(58,937		)	6,672			—			(65,609		)
Effect of exchange rate changes on cash	2,820			—			—			2,820
Net increase (decrease) in cash	559,045			(5,605		)	—			564,650
Cash and cash equivalents at beginning of period	913,187			104,691			—			808,496
Cash and cash equivalents at end of period	$	1,472,232		$	99,086		$	—		$	1,373,146

(1) After elimination of the unrestricted subsidiaries and the physician groups.