☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 51-0354549 | |
(State of incorporation) | (I.R.S. Employer Identification No.) |
2000 16th Street | ||
Denver, | CO | 80202 |
Title of each class: | Trading symbol(s): | Name of each exchange on which registered: | ||
Common Stock, $0.001 par value | DVA | NYSE |
Large accelerated filer | ☒ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
Emerging growth company | ☐ |
Page No. | ||||
PART I. FINANCIAL INFORMATION | ||||
Item 1. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
PART II. OTHER INFORMATION | ||||
Item 1. | ||||
Item 1A. | ||||
Item 2. | ||||
Item | ||||
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Dialysis and related lab patient service revenues | $ | 2,670,701 | $ | 2,561,543 | $ | 7,980,178 | $ | 7,478,938 | $ | 2,781,169 | $ | 2,670,701 | $ | 8,150,386 | $ | 7,980,178 | ||||||||||||||
Provision for uncollectible accounts | (11,977 | ) | (119,321 | ) | (35,838 | ) | (335,979 | ) | (3,977 | ) | (11,977 | ) | (19,689 | ) | (35,838 | ) | ||||||||||||||
Net dialysis and related lab patient service revenues | 2,658,724 | 2,442,222 | 7,944,340 | 7,142,959 | 2,777,192 | 2,658,724 | 8,130,697 | 7,944,340 | ||||||||||||||||||||||
Other revenues | 188,606 | 322,849 | 639,387 | 952,762 | 126,886 | 188,606 | 359,198 | 639,387 | ||||||||||||||||||||||
Total revenues | 2,847,330 | 2,765,071 | 8,583,727 | 8,095,721 | 2,904,078 | 2,847,330 | 8,489,895 | 8,583,727 | ||||||||||||||||||||||
Operating expenses and charges: | ||||||||||||||||||||||||||||||
Patient care costs and other costs | 2,063,770 | 1,951,609 | 6,168,444 | 5,698,318 | ||||||||||||||||||||||||||
Patient care costs | 1,991,172 | 2,063,770 | 5,913,860 | 6,168,444 | ||||||||||||||||||||||||||
General and administrative | 336,299 | 272,911 | 866,922 | 798,602 | 298,736 | 336,299 | 824,887 | 866,922 | ||||||||||||||||||||||
Depreciation and amortization | 146,000 | 142,634 | 435,878 | 415,544 | 155,915 | 146,000 | 456,685 | 435,878 | ||||||||||||||||||||||
Equity investment loss (income) | 3,824 | 5,308 | (6,126 | ) | 5,456 | |||||||||||||||||||||||||
Provision for uncollectible accounts | 800 | (2,685 | ) | (7,300 | ) | (1,381 | ) | — | 800 | — | (7,300 | ) | ||||||||||||||||||
Equity investment (income) loss | (3,936 | ) | 3,824 | (11,158 | ) | (6,126 | ) | |||||||||||||||||||||||
Investment and other asset impairments | 6,093 | — | 17,338 | 15,168 | — | 6,093 | — | 17,338 | ||||||||||||||||||||||
Goodwill impairment charges | — | — | 3,106 | 34,696 | 83,855 | — | 124,892 | 3,106 | ||||||||||||||||||||||
Loss (gain) on changes in ownership interests, net | 1,506 | — | (32,451 | ) | (6,273 | ) | ||||||||||||||||||||||||
Gain on settlement, net | — | — | — | (526,827 | ) | |||||||||||||||||||||||||
Loss (gain) on changes in ownership interest, net | — | 1,506 | — | (32,451 | ) | |||||||||||||||||||||||||
Total operating expenses and charges | 2,558,292 | 2,369,777 | 7,445,811 | 6,433,303 | 2,525,742 | 2,558,292 | 7,309,166 | 7,445,811 | ||||||||||||||||||||||
Operating income | 289,038 | 395,294 | 1,137,916 | 1,662,418 | 378,336 | 289,038 | 1,180,729 | 1,137,916 | ||||||||||||||||||||||
Debt expense | (125,927 | ) | (109,306 | ) | (359,135 | ) | (321,637 | ) | (88,589 | ) | (125,927 | ) | (351,774 | ) | (359,135 | ) | ||||||||||||||
Debt prepayment, refinancing and redemption charges | (21,242 | ) | — | (33,402 | ) | — | ||||||||||||||||||||||||
Other income, net | 4,007 | 3,396 | 10,583 | 12,180 | 5,280 | 4,007 | 17,863 | 10,583 | ||||||||||||||||||||||
Income from continuing operations before income taxes | 167,118 | 289,384 | 789,364 | 1,352,961 | 273,785 | 167,118 | 813,416 | 789,364 | ||||||||||||||||||||||
Income tax expense | 52,047 | 90,546 | 206,652 | 474,126 | 65,254 | 52,047 | 197,938 | 206,652 | ||||||||||||||||||||||
Net income from continuing operations | 115,071 | 198,838 | 582,712 | 878,835 | 208,531 | 115,071 | 615,478 | 582,712 | ||||||||||||||||||||||
Net loss from discontinued operations, net of tax | (211,739 | ) | (370,872 | ) | (147,829 | ) | (388,959 | ) | ||||||||||||||||||||||
Net (loss) income | (96,668 | ) | (172,034 | ) | 434,883 | 489,876 | ||||||||||||||||||||||||
Net (loss) income from discontinued operations, net of tax | (6,843 | ) | (211,739 | ) | 102,854 | (147,829 | ) | |||||||||||||||||||||||
Net income (loss) | 201,688 | (96,668 | ) | 718,332 | 434,883 | |||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | (40,128 | ) | (42,442 | ) | (125,717 | ) | (129,654 | ) | (58,418 | ) | (40,128 | ) | (152,222 | ) | (125,717 | ) | ||||||||||||||
Net (loss) income attributable to DaVita Inc. | $ | (136,796 | ) | $ | (214,476 | ) | $ | 309,166 | $ | 360,222 | ||||||||||||||||||||
Net income (loss) attributable to DaVita Inc. | $ | 143,270 | $ | (136,796 | ) | $ | 566,110 | $ | 309,166 | |||||||||||||||||||||
Earnings per share attributable to DaVita Inc.: | ||||||||||||||||||||||||||||||
Basic net income from continuing operations per share | $ | 0.44 | $ | 0.81 | $ | 2.69 | $ | 3.91 | $ | 1.00 | $ | 0.44 | $ | 2.88 | $ | 2.69 | ||||||||||||||
Basic net (loss) income per share | $ | (0.82 | ) | $ | (1.14 | ) | $ | 1.79 | $ | 1.89 | ||||||||||||||||||||
Basic net income (loss) per share | $ | 0.95 | $ | (0.82 | ) | $ | 3.51 | $ | 1.79 | |||||||||||||||||||||
Diluted net income from continuing operations per share | $ | 0.44 | $ | 0.80 | $ | 2.66 | $ | 3.85 | $ | 0.99 | $ | 0.44 | $ | 2.87 | $ | 2.66 | ||||||||||||||
Diluted net (loss) income per share | $ | (0.82 | ) | $ | (1.12 | ) | $ | 1.77 | $ | 1.86 | ||||||||||||||||||||
Diluted net income (loss) per share | $ | 0.95 | $ | (0.82 | ) | $ | 3.50 | $ | 1.77 | |||||||||||||||||||||
Weighted average shares for earnings per share: | ||||||||||||||||||||||||||||||
Basic | 166,770,664 | 188,883,922 | 172,403,944 | 190,770,165 | 150,675,465 | 166,770,664 | 161,147,122 | 172,403,944 | ||||||||||||||||||||||
Diluted | 167,262,358 | 191,408,117 | 174,348,421 | 193,546,245 | 151,295,950 | 167,262,358 | 161,636,011 | 174,348,421 | ||||||||||||||||||||||
Amounts attributable to DaVita Inc.: | ||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 73,371 | $ | 152,870 | $ | 463,989 | $ | 745,067 | $ | 150,113 | $ | 73,371 | $ | 464,590 | $ | 463,989 | ||||||||||||||
Net loss from discontinued operations | (210,167 | ) | (367,346 | ) | (154,823 | ) | (384,845 | ) | ||||||||||||||||||||||
Net (loss) income attributable to DaVita Inc. | $ | (136,796 | ) | $ | (214,476 | ) | $ | 309,166 | $ | 360,222 | ||||||||||||||||||||
Net (loss) income from discontinued operations | (6,843 | ) | (210,167 | ) | 101,520 | (154,823 | ) | |||||||||||||||||||||||
Net income (loss) attributable to DaVita Inc. | $ | 143,270 | $ | (136,796 | ) | $ | 566,110 | $ | 309,166 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net (loss) income | $ | (96,668 | ) | $ | (172,034 | ) | $ | 434,883 | $ | 489,876 | |||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||
Unrealized gains (losses) on interest rate cap agreements: | |||||||||||||||
Unrealized gains (losses) on interest rate cap agreements | 37 | (478 | ) | 819 | (5,479 | ) | |||||||||
Reclassifications of net realized gains on interest rate cap agreements into net (loss) income | 1,606 | 1,265 | 4,680 | 3,793 | |||||||||||
Unrealized gains on investments: | |||||||||||||||
Unrealized gains on investments | — | 863 | — | 3,478 | |||||||||||
Reclassification of net investment realized gains into net (loss) income | — | (9 | ) | — | (221 | ) | |||||||||
Unrealized (losses) gains on foreign currency translation: | |||||||||||||||
Foreign currency translation adjustments | (8,827 | ) | 29,143 | (39,475 | ) | 91,546 | |||||||||
Other comprehensive (loss) income | (7,184 | ) | 30,784 | (33,976 | ) | 93,117 | |||||||||
Total comprehensive (loss) income | (103,852 | ) | (141,250 | ) | 400,907 | 582,993 | |||||||||
Less: Comprehensive income attributable to noncontrolling interests | (40,128 | ) | (42,442 | ) | (125,717 | ) | (129,652 | ) | |||||||
Comprehensive (loss) income attributable to DaVita Inc. | $ | (143,980 | ) | $ | (183,692 | ) | $ | 275,190 | $ | 453,341 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) | $ | 201,688 | $ | (96,668 | ) | $ | 718,332 | $ | 434,883 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Unrealized (losses) gains on interest rate cap agreements: | |||||||||||||||
Unrealized (losses) gains | (1,060 | ) | 37 | (1,672 | ) | 819 | |||||||||
Reclassifications of net realized losses into net income (loss) | 1,569 | 1,606 | 4,782 | 4,680 | |||||||||||
Unrealized losses on foreign currency translation: | |||||||||||||||
Foreign currency translation adjustments | (44,502 | ) | (8,827 | ) | (45,790 | ) | (39,475 | ) | |||||||
Other comprehensive loss | (43,993 | ) | (7,184 | ) | (42,680 | ) | (33,976 | ) | |||||||
Total comprehensive income (loss) | 157,695 | (103,852 | ) | 675,652 | 400,907 | ||||||||||
Less: Comprehensive income attributable to noncontrolling interests | (58,418 | ) | (40,128 | ) | (152,222 | ) | (125,717 | ) | |||||||
Comprehensive income (loss) attributable to DaVita Inc. | $ | 99,277 | $ | (143,980 | ) | $ | 523,430 | $ | 275,190 |
September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | |||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | 448,215 | $ | 508,234 | $ | 1,253,256 | $ | 323,038 | ||||||
Restricted cash and equivalents | 91,940 | 10,686 | 103,885 | 92,382 | ||||||||||
Short-term investments | 4,730 | 32,830 | 100,713 | 2,935 | ||||||||||
Accounts receivable, net | 1,847,086 | 1,714,750 | 1,901,225 | 1,858,608 | ||||||||||
Inventories | 91,102 | 181,799 | 98,641 | 107,381 | ||||||||||
Other receivables | 383,783 | 372,919 | 474,145 | 469,796 | ||||||||||
Income tax receivable | 26,002 | 49,440 | 16,236 | 68,614 | ||||||||||
Prepaid and other current assets | 88,857 | 112,058 | 50,617 | 111,840 | ||||||||||
Current assets held for sale, net | 5,947,786 | 5,761,642 | — | 5,389,565 | ||||||||||
Total current assets | 8,929,501 | 8,744,358 | 3,998,718 | 8,424,159 | ||||||||||
Property and equipment, net of accumulated depreciation of $3,454,107 and $3,103,662 | 3,275,636 | 3,149,213 | ||||||||||||
Intangible assets, net of accumulated amortization of $225,862 and $356,774 | 97,609 | 113,827 | ||||||||||||
Property and equipment, net of accumulated depreciation of $3,792,683 and $3,524,098, respectively | 3,419,238 | 3,393,669 | ||||||||||||
Operating lease right-of-use assets | 2,781,288 | — | ||||||||||||
Intangible assets, net of accumulated amortization of $78,437 and $80,566, respectively | 117,666 | 118,846 | ||||||||||||
Equity method and other investments | 240,820 | 245,534 | 219,386 | 224,611 | ||||||||||
Long-term investments | 35,047 | 37,695 | 35,041 | 35,424 | ||||||||||
Other long-term assets | 76,517 | 47,287 | 114,834 | 71,583 | ||||||||||
Goodwill | 6,702,659 | 6,610,279 | 6,765,659 | 6,841,960 | ||||||||||
$ | 19,357,789 | $ | 18,948,193 | $ | 17,451,830 | $ | 19,110,252 | |||||||
LIABILITIES AND EQUITY | ||||||||||||||
Accounts payable | $ | 458,927 | $ | 509,116 | $ | 332,136 | $ | 463,270 | ||||||
Other liabilities | 560,692 | 552,662 | 716,023 | 595,850 | ||||||||||
Accrued compensation and benefits | 631,799 | 616,116 | 662,826 | 658,913 | ||||||||||
Current portion of operating lease liabilities | 374,214 | — | ||||||||||||
Current portion of long-term debt | 1,784,065 | 178,213 | 121,441 | 1,929,369 | ||||||||||
Current liabilities held for sale | 1,419,621 | 1,185,070 | — | 1,243,759 | ||||||||||
Total current liabilities | 4,855,104 | 3,041,177 | 2,206,640 | 4,891,161 | ||||||||||
Long-term operating lease liabilities | 2,682,125 | — | ||||||||||||
Long-term debt | 8,440,673 | 9,158,018 | 8,014,475 | 8,172,847 | ||||||||||
Other long-term liabilities | 452,445 | 365,325 | 135,087 | 450,669 | ||||||||||
Deferred income taxes | 515,893 | 486,247 | 604,921 | 562,536 | ||||||||||
Total liabilities | 14,264,115 | 13,050,767 | 13,643,248 | 14,077,213 | ||||||||||
Commitments and contingencies: | ||||||||||||||
Commitments and contingencies | ||||||||||||||
Noncontrolling interests subject to put provisions | 1,064,412 | 1,011,360 | 1,296,059 | 1,124,641 | ||||||||||
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; 182,828,547 and 182,462,278 shares issued and 165,984,480 and 182,462,278 shares outstanding, respectively) | 183 | 182 | ||||||||||||
Common stock ($0.001 par value, 450,000,000 shares authorized; 166,540,590 and 166,387,307 shares issued and 133,888,864 and 166,387,307 shares outstanding, respectively) | 167 | 166 | ||||||||||||
Additional paid-in capital | 1,055,839 | 1,042,899 | 906,990 | 995,006 | ||||||||||
Retained earnings | 3,951,247 | 3,633,713 | 3,349,180 | 2,743,194 | ||||||||||
Treasury stock (16,844,067 and zero shares, respectively) | (1,153,511 | ) | — | |||||||||||
Accumulated other comprehensive (loss) income | (29,109 | ) | 13,235 | |||||||||||
Treasury stock (32,651,726 and zero shares, respectively) | (1,860,157 | ) | — | |||||||||||
Accumulated other comprehensive loss | (77,604 | ) | (34,924 | ) | ||||||||||
Total DaVita Inc. shareholders' equity | 3,824,649 | 4,690,029 | 2,318,576 | 3,703,442 | ||||||||||
Noncontrolling interests not subject to put provisions | 204,613 | 196,037 | 193,947 | 204,956 | ||||||||||
Total equity | 4,029,262 | 4,886,066 | 2,512,523 | 3,908,398 | ||||||||||
$ | 19,357,789 | $ | 18,948,193 | $ | 17,451,830 | $ | 19,110,252 |
Nine months ended September 30, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 434,883 | $ | 489,876 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 435,878 | 593,527 | |||||
Impairment charges | 20,444 | 701,523 | |||||
Stock-based compensation expense | 59,605 | 28,478 | |||||
Deferred income taxes | 200,056 | (132,781 | ) | ||||
Equity investment loss, net | 8,611 | 19,071 | |||||
Gain on sales of business interests, net | (57,547 | ) | (23,402 | ) | |||
Other non-cash charges, net | 164,856 | 41,703 | |||||
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||||||
Accounts receivable | (74,622 | ) | (146,024 | ) | |||
Inventories | 88,355 | 14,272 | |||||
Other receivables and other current assets | (757 | ) | (43,556 | ) | |||
Other long-term assets | 2,142 | (13,831 | ) | ||||
Accounts payable | (12,800 | ) | 18,595 | ||||
Accrued compensation and benefits | 40,225 | (60,063 | ) | ||||
Other current liabilities | 45,624 | 39,445 | |||||
Income taxes | 21,749 | 22,669 | |||||
Other long-term liabilities | 5,546 | 18,648 | |||||
Net cash provided by operating activities | 1,382,248 | 1,568,150 | |||||
Cash flows from investing activities: | |||||||
Additions of property and equipment | (705,659 | ) | (639,829 | ) | |||
Acquisitions | (113,526 | ) | (726,538 | ) | |||
Proceeds from asset and business sales | 135,268 | 92,529 | |||||
Purchase of investments available for sale | (5,791 | ) | (9,882 | ) | |||
Purchase of investments held-to-maturity | (3,728 | ) | (223,482 | ) | |||
Proceeds from sale of investments available for sale | 8,783 | 5,822 | |||||
Proceeds from investments held-to-maturity | 32,628 | 398,765 | |||||
Purchase of equity investments | (12,874 | ) | (3,014 | ) | |||
Distributions received on equity investments | 3,580 | 80 | |||||
Net cash used in investing activities | (661,319 | ) | (1,105,549 | ) |
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 718,332 | $ | 434,883 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 456,685 | 435,878 | ||||||||||||
Impairment charges | 124,892 | 20,444 | ||||||||||||
Debt prepayment, refinancing and redemption charges | 33,402 | — | ||||||||||||
Stock-based compensation expense | 47,811 | 59,605 | ||||||||||||
Deferred income taxes | 72,590 | 200,056 | ||||||||||||
Equity investment loss, net | 5,131 | 8,611 | ||||||||||||
Gain (loss) on sales of business interests, net | 23,022 | (57,547 | ) | |||||||||||
Other non-cash charges, net | 24,291 | 164,856 | ||||||||||||
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | ||||||||||||||
Accounts receivable | (182,684 | ) | (74,622 | ) | ||||||||||
Inventories | 9,519 | 88,355 | ||||||||||||
Other receivables and other current assets | 51,319 | (757 | ) | |||||||||||
Other long-term assets | 2,324 | 2,142 | ||||||||||||
Accounts payable | (106,662 | ) | (12,800 | ) | ||||||||||
Accrued compensation and benefits | (57,930 | ) | 40,225 | |||||||||||
Other current liabilities | 140,046 | 45,624 | ||||||||||||
Income taxes | 57,279 | 21,749 | ||||||||||||
Other long-term liabilities | (27,542 | ) | 5,546 | |||||||||||
Net cash provided by operating activities | 1,391,825 | 1,382,248 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Additions of property and equipment | (547,183 | ) | (705,659 | ) | ||||||||||
Acquisitions | (77,348 | ) | (113,526 | ) | ||||||||||
Proceeds from asset and business sales | 3,863,619 | 135,268 | ||||||||||||
Purchase of other debt and equity investments | (5,160 | ) | (5,791 | ) | ||||||||||
Purchase of investments held-to-maturity | (98,322 | ) | (3,728 | ) | ||||||||||
Proceeds from sale of other debt and equity investments | 5,893 | 8,783 | ||||||||||||
Proceeds from investments held-to-maturity | — | 32,628 | ||||||||||||
Purchase of equity investments | (8,770 | ) | (12,874 | ) | ||||||||||
Distributions received on equity investments | 1,296 | 3,580 | ||||||||||||
Net cash provided by (used in) investing activities | 3,134,025 | (661,319 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||
Borrowings | 41,674,279 | 38,160,821 | 38,519,991 | 41,674,279 | ||||||||||
Payments on long-term debt and other financing costs | (40,828,443 | ) | (38,269,284 | ) | (40,570,003 | ) | (40,828,443 | ) | ||||||
Purchase of treasury stock | (1,161,511 | ) | (321,411 | ) | (1,837,022 | ) | (1,161,511 | ) | ||||||
Distributions to noncontrolling interests | (157,170 | ) | (139,673 | ) | ||||||||||
Stock award exercises and other share issuances, net | 8,803 | 15,781 | 7,333 | 8,803 | ||||||||||
Distributions to noncontrolling interests | (139,673 | ) | (165,463 | ) | ||||||||||
Contributions from noncontrolling interests | 43,179 | 51,156 | 44,095 | 43,179 | ||||||||||
Proceeds from sales of additional noncontrolling interests | 15 | — | ||||||||||||
Proceeds from sales of additional noncontrolling interest | — | 15 | ||||||||||||
Purchases of noncontrolling interests | (19,988 | ) | (1,432 | ) | (10,988 | ) | (19,988 | ) | ||||||
Net cash used in financing activities | (423,339 | ) | (529,832 | ) | (4,003,764 | ) | (423,339 | ) | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5,790 | ) | 5,449 | (4,178 | ) | (5,790 | ) | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 291,800 | (61,782 | ) | |||||||||||
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations | 270,565 | 82,694 | ||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations | 21,235 | (144,476 | ) | |||||||||||
Net increase in cash, cash equivalents and restricted cash | 517,908 | 291,800 | ||||||||||||
Less: Net (decrease) increase in cash, cash equivalents and restricted cash from discontinued operations | (423,813 | ) | 270,565 | |||||||||||
Net increase in cash, cash equivalents and restricted cash from continuing operations | 941,721 | 21,235 | ||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year | 518,920 | 683,463 | 415,420 | 518,920 | ||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of the period | $ | 540,155 | $ | 538,987 | $ | 1,357,141 | $ | 540,155 |
Three months ended September 30, 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 June 30, 2019 | $ | 1,185,733 | 166,533 | $ | 167 | $ | 989,021 | $ | 3,205,910 | (2,060 | ) | $ | (112,189 | ) | $ | (33,611 | ) | $ | 4,049,298 | $ | 193,771 | ||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||
Net income | 38,778 | 143,270 | 143,270 | 19,640 | |||||||||||||||||||||||||||||||||
Other comprehensive loss | (43,993 | ) | (43,993 | ) | |||||||||||||||||||||||||||||||||
Stock unit shares issued | 8 | — | |||||||||||||||||||||||||||||||||||
Stock-settled stock-based compensation expense | 18,724 | 18,724 | |||||||||||||||||||||||||||||||||||
Changes in noncontrolling interest from: | |||||||||||||||||||||||||||||||||||||
Distributions | (37,868 | ) | (23,588 | ) | |||||||||||||||||||||||||||||||||
Contributions | 8,946 | 3,868 | |||||||||||||||||||||||||||||||||||
Acquisitions and divestitures | (91 | ) | 10 | ||||||||||||||||||||||||||||||||||
Partial purchases | 8 | (202 | ) | (202 | ) | 246 | |||||||||||||||||||||||||||||||
Fair value remeasurements | 100,553 | (100,553 | ) | (100,553 | ) | ||||||||||||||||||||||||||||||||
Purchase of treasury stock | (30,592 | ) | (1,747,968 | ) | (1,747,968 | ) | |||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 1,296,059 | 166,541 | $ | 167 | $ | 906,990 | $ | 3,349,180 | (32,652 | ) | $ | (1,860,157 | ) | $ | (77,604 | ) | $ | 2,318,576 | $ | 193,947 |
Non- controlling interests subject to put provisions | DaVita Inc. Shareholders’ Equity | Non- controlling interests not subject to put provisions | Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | Accumulated other comprehensive (loss) income | Non- controlling interests subject to put provisions | DaVita Inc. Shareholders’ Equity | Non- controlling interests not subject to put provisions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | Retained earnings | Treasury stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Accumulated other comprehensive (loss) income | Total | Common stock | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 973,258 | 194,554 | $ | 195 | $ | 1,027,182 | $ | 3,710,313 | — | $ | — | $ | (89,643 | ) | $ | 201,694 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non- controlling interests subject to put provisions | Shares | Amount | Additional paid-in capital | Retained earnings | Shares | Amount | Accumulated other comprehensive loss | Total | Non- controlling interests not subject to put provisions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 166,387 | $ | 166 | — | $ | — | $ | 3,703,442 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle | 39,876 | 39,876 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 103,641 | 663,618 | 663,618 | 63,296 | 102,078 | 566,110 | 566,110 | 50,144 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 102,878 | 102,878 | (2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock purchase shares issued | 360 | 22,131 | 22,131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (42,680 | ) | (42,680 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock unit shares issued | 117 | (101 | ) | (101 | ) | 154 | 1 | (3,246 | ) | (3,245 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-settled SAR shares issued | 398 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-settled stock-based compensation expense | 34,981 | 34,981 | 47,723 | 47,723 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in noncontrolling interest from: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | (128,853 | ) | (82,614 | ) | (98,103 | ) | (59,067 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions | 52,911 | 21,641 | 24,714 | 19,381 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and divestitures | 43,799 | (823 | ) | (823 | ) | (5,770 | ) | 1,782 | (1,981 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partial purchases | (397 | ) | (2,752 | ) | (2,752 | ) | (2,208 | ) | (2,240 | ) | 10,732 | 10,732 | (19,480 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value remeasurements | (32,999 | ) | 32,999 | 32,999 | 143,225 | (143,225 | ) | (143,225 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (12,967 | ) | (810,949 | ) | (810,949 | ) | (32,652 | ) | (1,860,157 | ) | (1,860,157 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury stock | (12,967 | ) | (13 | ) | (70,718 | ) | (740,218 | ) | 12,967 | 810,949 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 1,011,360 | 182,462 | $ | 182 | $ | 1,042,899 | $ | 3,633,713 | — | $ | — | $ | 13,235 | $ | 4,690,029 | $ | 196,037 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle | 8,368 | (8,368 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 77,803 | 309,166 | 309,166 | 47,914 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (33,976 | ) | (33,976 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock unit shares issued | 154 | (448 | ) | (448 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-settled SAR shares issued | 212 | 1 | (4,887 | ) | (4,886 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-settled stock-based compensation expense | 59,539 | 59,539 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in noncontrolling interest from: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | (85,372 | ) | (54,301 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions | 26,367 | 16,812 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and divestitures | 11,262 | 79 | 79 | (212 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partial purchases | (869 | ) | (17,482 | ) | (17,482 | ) | (1,637 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value remeasurements | 23,861 | (23,861 | ) | (23,861 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (16,844 | ) | (1,153,511 | ) | (1,153,511 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | 1,064,412 | 182,828 | $ | 183 | $ | 1,055,839 | $ | 3,951,247 | (16,844 | ) | $ | (1,153,511 | ) | $ | (29,109 | ) | $ | 3,824,649 | $ | 204,613 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | 1,296,059 | 166,541 | $ | 167 | $ | 906,990 | $ | 3,349,180 | (32,652 | ) | $ | (1,860,157 | ) | $ | (77,604 | ) | $ | 2,318,576 | $ | 193,947 |
Three months ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||
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 June 30, 2018 | $ | 1,047,158 | 182,815 | $ | 183 | $ | 1,022,783 | $ | 4,088,043 | (11,995 | ) | $ | (809,900 | ) | $ | (21,925 | ) | $ | 4,279,184 | $ | 205,323 | ||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||
Net income | 25,525 | (136,796 | ) | (136,796 | ) | 14,603 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (7,184 | ) | (7,184 | ) | |||||||||||||||||||||||||||||||||
Stock unit shares issued | 8 | ||||||||||||||||||||||||||||||||||||
Stock-settled SAR shares issued | 5 | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||
Stock-settled stock-based compensation expense | 39,707 | 39,707 | |||||||||||||||||||||||||||||||||||
Changes in noncontrolling interest from: | |||||||||||||||||||||||||||||||||||||
Distributions | (27,375 | ) | (18,292 | ) | |||||||||||||||||||||||||||||||||
Contributions | 7,191 | 4,419 | |||||||||||||||||||||||||||||||||||
Acquisitions and divestitures | 10,597 | (9 | ) | ||||||||||||||||||||||||||||||||||
Partial purchases | (49 | ) | (5,285 | ) | (5,285 | ) | (1,431 | ) | |||||||||||||||||||||||||||||
Fair value remeasurements | 1,365 | (1,365 | ) | (1,365 | ) | ||||||||||||||||||||||||||||||||
Purchase of treasury stock | (4,849 | ) | (343,611 | ) | (343,611 | ) | |||||||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | 1,064,412 | 182,828 | $ | 183 | $ | 1,055,839 | $ | 3,951,247 | (16,844 | ) | $ | (1,153,511 | ) | $ | (29,109 | ) | $ | 3,824,649 | $ | 204,613 |
Nine months ended September 30, 2018 | |||||||||||||||||||||||||||||||||||||
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 income (loss) | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | |||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | $ | 1,011,360 | 182,462 | $ | 182 | $ | 1,042,899 | $ | 3,633,713 | — | $ | — | $ | 13,235 | $ | 4,690,029 | $ | 196,037 | |||||||||||||||||||
Cumulative effect of change in accounting principle | 8,368 | (8,368 | ) | — | |||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||
Net income | 77,803 | 309,166 | 309,166 | 47,914 | |||||||||||||||||||||||||||||||||
Other comprehensive loss | (33,976 | ) | (33,976 | ) | |||||||||||||||||||||||||||||||||
Stock unit shares issued | 154 | (448 | ) | (448 | ) | ||||||||||||||||||||||||||||||||
Stock-settled SAR shares issued | 212 | 1 | (4,887 | ) | (4,886 | ) | |||||||||||||||||||||||||||||||
Stock-settled stock-based compensation expense | 59,539 | 59,539 | |||||||||||||||||||||||||||||||||||
Changes in noncontrolling interest from: | |||||||||||||||||||||||||||||||||||||
Distributions | (85,372 | ) | (54,301 | ) | |||||||||||||||||||||||||||||||||
Contributions | 26,367 | 16,812 | |||||||||||||||||||||||||||||||||||
Acquisitions and divestitures | 11,262 | 79 | 79 | (212 | ) | ||||||||||||||||||||||||||||||||
Partial purchases | (869 | ) | (17,482 | ) | (17,482 | ) | (1,637 | ) | |||||||||||||||||||||||||||||
Fair value remeasurements | 23,861 | (23,861 | ) | (23,861 | ) | ||||||||||||||||||||||||||||||||
Purchase of treasury stock | (16,844 | ) | (1,153,511 | ) | (1,153,511 | ) | |||||||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | 1,064,412 | 182,828 | $ | 183 | $ | 1,055,839 | $ | 3,951,247 | (16,844 | ) | $ | (1,153,511 | ) | $ | (29,109 | ) | $ | 3,824,649 | $ | 204,613 |
1. | Condensed consolidated interim financial statements |
2. | Revenue recognition |
For the three months ended | |||||||||||||||||||||||
September 30, 2019 | September 30, 2018 | ||||||||||||||||||||||
U.S. dialysis and related lab services | Other - Ancillary services and strategic initiatives | Consolidated | U.S. dialysis and related lab services | Other - Ancillary services and strategic initiatives | Consolidated | ||||||||||||||||||
Patient service revenues: | |||||||||||||||||||||||
Medicare and Medicare Advantage | $ | 1,558,890 | $ | $ | 1,558,890 | $ | 1,513,191 | $ | $ | 1,513,191 | |||||||||||||
Medicaid and Managed Medicaid | 176,292 | 176,292 | 159,165 | 159,165 | |||||||||||||||||||
Other government | 116,984 | 90,947 | 207,931 | 113,043 | 80,915 | 193,958 | |||||||||||||||||
Commercial | 828,953 | 37,276 | 866,229 | 786,470 | 31,364 | 817,834 | |||||||||||||||||
Other revenues: | |||||||||||||||||||||||
Medicare and Medicare Advantage | 65,759 | 65,759 | 130,746 | 130,746 | |||||||||||||||||||
Medicaid and Managed Medicaid | 227 | 227 | 12,042 | 12,042 | |||||||||||||||||||
Commercial | 33,503 | 33,503 | 20,205 | 20,205 | |||||||||||||||||||
Other(1) | 10,308 | 20,784 | 31,092 | 4,932 | 29,042 | 33,974 | |||||||||||||||||
Eliminations of intersegment revenues | (32,362 | ) | (3,483 | ) | (35,845 | ) | (25,424 | ) | (8,361 | ) | (33,785 | ) | |||||||||||
Total | $ | 2,659,065 | $ | 245,013 | $ | 2,904,078 | $ | 2,551,377 | $ | 295,953 | $ | 2,847,330 |
(1) | Other consists of management fees and revenue from the Company's ancillary services and strategic initiatives. |
For the three months ended | For the nine months ended | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | September 30, 2017(1) | September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||
U.S. dialysis and related lab services | Other - Ancillary services and strategic initiatives | Consolidated | U.S. dialysis and related lab services | Other - Ancillary services and strategic initiatives | Consolidated | U.S. dialysis and related lab services | Other - Ancillary services and strategic initiatives | Consolidated | U.S. dialysis and related lab services | Other - Ancillary services and strategic initiatives | Consolidated | |||||||||||||||||||||||||||||||||||
Patient service revenues: | ||||||||||||||||||||||||||||||||||||||||||||||
Medicare and Medicare Advantage | $ | 1,513,191 | $ | $ | 1,513,191 | $ | 1,338,155 | $ | $ | 1,338,155 | $ | 4,572,599 | $ | $ | 4,572,599 | $ | 4,524,449 | $ | $ | 4,524,449 | ||||||||||||||||||||||||||
Medicaid and Managed Medicaid | 159,165 | 159,165 | 155,113 | 155,113 | 490,723 | 490,723 | 466,948 | 466,948 | ||||||||||||||||||||||||||||||||||||||
Other government | 113,043 | 80,915 | 193,958 | 89,243 | 72,681 | 161,924 | 333,675 | 264,191 | 597,866 | 330,500 | 250,048 | 580,548 | ||||||||||||||||||||||||||||||||||
Commercial | 786,470 | 31,364 | 817,834 | 783,171 | 17,334 | 800,505 | 2,458,360 | 103,760 | 2,562,120 | 2,366,182 | 70,156 | 2,436,338 | ||||||||||||||||||||||||||||||||||
Other revenues: | ||||||||||||||||||||||||||||||||||||||||||||||
Medicare and Medicare Advantage | 130,746 | 130,746 | 232,251 | 232,251 | 191,472 | 191,472 | 427,532 | 427,532 | ||||||||||||||||||||||||||||||||||||||
Medicaid and Managed Medicaid | 12,042 | 12,042 | 17,142 | 17,142 | 327 | 327 | 43,991 | 43,991 | ||||||||||||||||||||||||||||||||||||||
Commercial | 20,205 | 20,205 | 27,222 | 27,222 | 98,428 | 98,428 | 77,633 | 77,633 | ||||||||||||||||||||||||||||||||||||||
Other | 4,932 | 29,042 | 33,974 | 4,792 | 47,438 | 52,230 | 20,715 | 59,204 | 79,919 | 14,965 | 103,014 | 117,979 | ||||||||||||||||||||||||||||||||||
Eliminations of intersegment revenues | (25,424 | ) | (8,361 | ) | (33,785 | ) | (13,475 | ) | (5,996 | ) | (19,471 | ) | (93,337 | ) | (10,222 | ) | (103,559 | ) | (63,943 | ) | (27,748 | ) | (91,691 | ) | ||||||||||||||||||||||
Total | $ | 2,551,377 | $ | 295,953 | $ | 2,847,330 | $ | 2,356,999 | $ | 408,072 | $ | 2,765,071 | $ | 7,782,735 | $ | 707,160 | $ | 8,489,895 | $ | 7,639,101 | $ | 944,626 | $ | 8,583,727 |
(1) |
Other consists of management fees and revenue from the Company's ancillary services and strategic initiatives. |
For the nine months ended | |||||||||||||||||||||||
September 30, 2018 | September 30, 2017(1) | ||||||||||||||||||||||
U.S. dialysis and related lab services | Other - Ancillary services and strategic initiatives | Consolidated | U.S. dialysis and related lab services | Other - Ancillary services and strategic initiatives | Consolidated | ||||||||||||||||||
Patient service revenues: | |||||||||||||||||||||||
Medicare and Medicare Advantage | $ | 4,524,449 | $ | $ | 4,524,449 | $ | 3,924,255 | $ | $ | 3,924,255 | |||||||||||||
Medicaid and Managed Medicaid | 466,948 | 466,948 | 450,984 | 450,984 | |||||||||||||||||||
Other government | 330,500 | 250,048 | 580,548 | 271,947 | 183,050 | 454,997 | |||||||||||||||||
Commercial | 2,366,182 | 70,156 | 2,436,338 | 2,304,745 | 46,537 | 2,351,282 | |||||||||||||||||
Other revenues: | |||||||||||||||||||||||
Medicare and Medicare Advantage | 427,532 | 427,532 | 682,964 | 682,964 | |||||||||||||||||||
Medicaid and Managed Medicaid | �� | 43,991 | 43,991 | 54,757 | 54,757 | ||||||||||||||||||
Commercial | 77,633 | 77,633 | 79,241 | 79,241 | |||||||||||||||||||
Other(2) | 14,965 | 103,014 | 117,979 | 14,951 | 139,337 | 154,288 | |||||||||||||||||
Eliminations of intersegment revenues | (63,943 | ) | (27,748 | ) | (91,691 | ) | (38,559 | ) | (18,488 | ) | (57,047 | ) | |||||||||||
Total | $ | 7,639,101 | $ | 944,626 | $ | 8,583,727 | $ | 6,928,323 | $ | 1,167,398 | $ | 8,095,721 |
3. | Earnings per share |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Numerators: | ||||||||||||||||||||||||||||||
Net income from continuing operations attributable to DaVita Inc. | $ | 73,371 | $ | 152,870 | $ | 463,989 | $ | 745,067 | $ | 150,113 | $ | 73,371 | $ | 464,590 | $ | 463,989 | ||||||||||||||
Change in noncontrolling interest redemption rights in excess of fair value | 98 | — | — | — | — | 98 | — | — | ||||||||||||||||||||||
Net income from continuing operations for earnings per share calculation | 73,469 | 152,870 | 463,989 | 745,067 | 150,113 | 73,469 | 464,590 | 463,989 | ||||||||||||||||||||||
Net loss from discontinued operations attributable to DaVita Inc. | (210,167 | ) | (367,346 | ) | (154,823 | ) | (384,845 | ) | ||||||||||||||||||||||
Net (loss) income attributable to DaVita Inc. for earnings per share calculation | $ | (136,698 | ) | $ | (214,476 | ) | $ | 309,166 | $ | 360,222 | ||||||||||||||||||||
Net (loss) income from discontinued operations attributable to DaVita Inc. | (6,843 | ) | (210,167 | ) | 101,520 | (154,823 | ) | |||||||||||||||||||||||
Net income (loss) attributable to DaVita Inc. for earnings per share calculation | $ | 143,270 | $ | (136,698 | ) | $ | 566,110 | $ | 309,166 | |||||||||||||||||||||
Basic: | ||||||||||||||||||||||||||||||
Weighted average shares outstanding during the period | 166,819 | 191,078 | 173,875 | 192,964 | 150,675 | 166,819 | 161,147 | 173,875 | ||||||||||||||||||||||
Weighted average contingently returnable shares held in escrow for the DaVita HealthCare Partners merger | (48 | ) | (2,194 | ) | (1,471 | ) | (2,194 | ) | — | (48 | ) | — | (1,471 | ) | ||||||||||||||||
Weighted average shares for basic earnings per share calculation | 166,771 | 188,884 | 172,404 | 190,770 | 150,675 | 166,771 | 161,147 | 172,404 | ||||||||||||||||||||||
Basic net income (loss) attributable to DaVita Inc. from: | ||||||||||||||||||||||||||||||
Continuing operations per share | $ | 0.44 | $ | 0.81 | $ | 2.69 | $ | 3.91 | $ | 1.00 | $ | 0.44 | $ | 2.88 | $ | 2.69 | ||||||||||||||
Discontinued operations per share | (1.26 | ) | (1.95 | ) | (0.90 | ) | (2.02 | ) | (0.05 | ) | (1.26 | ) | 0.63 | (0.90 | ) | |||||||||||||||
Basic net (loss) income per share attributable to DaVita Inc. | $ | (0.82 | ) | $ | (1.14 | ) | $ | 1.79 | $ | 1.89 | ||||||||||||||||||||
Basic net income (loss) per share attributable to DaVita Inc. | $ | 0.95 | $ | (0.82 | ) | $ | 3.51 | $ | 1.79 | |||||||||||||||||||||
Diluted: | ||||||||||||||||||||||||||||||
Weighted average shares outstanding during the period | 166,819 | 191,078 | 173,875 | 192,964 | 150,675 | 166,819 | 161,147 | 173,875 | ||||||||||||||||||||||
Assumed incremental shares from stock plans | 443 | 330 | 473 | 582 | 621 | 443 | 489 | 473 | ||||||||||||||||||||||
Weighted average shares for diluted earnings per share calculation | 167,262 | 191,408 | 174,348 | 193,546 | 151,296 | 167,262 | 161,636 | 174,348 | ||||||||||||||||||||||
Diluted net income (loss) attributable to DaVita Inc. from: | ||||||||||||||||||||||||||||||
Continuing operations per share | $ | 0.44 | $ | 0.80 | $ | 2.66 | $ | 3.85 | $ | 0.99 | $ | 0.44 | $ | 2.87 | $ | 2.66 | ||||||||||||||
Discontinued operations per share | (1.26 | ) | (1.92 | ) | (0.89 | ) | (1.99 | ) | (0.04 | ) | (1.26 | ) | 0.63 | (0.89 | ) | |||||||||||||||
Diluted net (loss) income per share attributable to DaVita Inc. | $ | (0.82 | ) | $ | (1.12 | ) | $ | 1.77 | $ | 1.86 | ||||||||||||||||||||
Diluted net income (loss) per share attributable to DaVita Inc. | $ | 0.95 | $ | (0.82 | ) | $ | 3.50 | $ | 1.77 | |||||||||||||||||||||
Anti-dilutive stock-settled awards excluded from calculation(1) | 5,281 | 5,201 | 4,987 | 5,239 | 7,293 | 5,281 | 6,414 | 4,987 |
(1) | Shares associated with stock-settled stock appreciation rights and performance stock units were excluded from the diluted denominator calculation because they are anti-dilutive under the treasury stock method. |
4. | Restricted cash and equivalents |
5. | Short-term and long-term investments |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Debt securities | Equity securities | Total | Debt securities | Equity securities | Total | ||||||||||||||||||
Certificates of deposit and other time deposits | $ | 98,113 | $ | — | $ | 98,113 | $ | 2,235 | $ | — | $ | 2,235 | |||||||||||
Investments in mutual funds and common stock | — | 37,641 | 37,641 | — | 36,124 | 36,124 | |||||||||||||||||
$ | 98,113 | $ | 37,641 | $ | 135,754 | $ | 2,235 | $ | 36,124 | $ | 38,359 | ||||||||||||
Short-term investments | $ | 98,113 | $ | 2,600 | $ | 100,713 | $ | 2,235 | $ | 700 | $ | 2,935 | |||||||||||
Long-term investments | — | 35,041 | 35,041 | — | 35,424 | 35,424 | |||||||||||||||||
$ | 98,113 | $ | 37,641 | $ | 135,754 | $ | 2,235 | $ | 36,124 | $ | 38,359 |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
Debt securities | Equity securities | Total | Debt securities | Equity securities | Total | ||||||||||||||||||
Certificates of deposit and other time deposits | $ | 2,230 | $ | — | $ | 2,230 | $ | 31,630 | $ | — | $ | 31,630 | |||||||||||
Investments in mutual funds and common stock | — | 37,547 | 37,547 | — | 38,895 | 38,895 | |||||||||||||||||
$ | 2,230 | $ | 37,547 | $ | 39,777 | $ | 31,630 | $ | 38,895 | $ | 70,525 | ||||||||||||
Short-term investments | $ | 2,230 | $ | 2,500 | $ | 4,730 | $ | 31,630 | $ | 1,200 | $ | 32,830 | |||||||||||
Long-term investments | — | 35,047 | 35,047 | — | 37,695 | 37,695 | |||||||||||||||||
$ | 2,230 | $ | 37,547 | $ | 39,777 | $ | 31,630 | $ | 38,895 | $ | 70,525 |
6. | Equity method and other investments |
September 30, 2019 | December 31, 2018 | ||||||
APAC joint venture | $ | 118,528 | $ | 129,173 | |||
Other equity method partnerships | 90,410 | 83,052 | |||||
Adjusted cost method investments | 10,448 | 12,386 | |||||
$ | 219,386 | $ | 224,611 |
7. | Goodwill |
U.S. dialysis and related lab services | Other-ancillary services and strategic initiatives | Consolidated total | |||||||||
Balance at December 31, 2017 | $ | 6,144,761 | $ | 465,518 | $ | 6,610,279 | |||||
Acquisitions | 130,574 | 147,774 | 278,348 | ||||||||
Divestitures | (331 | ) | (15,166 | ) | (15,497 | ) | |||||
Impairment charges | — | (3,106 | ) | (3,106 | ) | ||||||
Foreign currency and other adjustments | — | (28,064 | ) | (28,064 | ) | ||||||
Balance at December 31, 2018 | $ | 6,275,004 | $ | 566,956 | $ | 6,841,960 | |||||
Acquisitions | 18,089 | 59,149 | 77,238 | ||||||||
Impairment charges | — | (124,892 | ) | (124,892 | ) | ||||||
Foreign currency and other adjustments | — | (28,647 | ) | (28,647 | ) | ||||||
Balance at September 30, 2019 | $ | 6,293,093 | $ | 472,566 | $ | 6,765,659 | |||||
Balance at September 30, 2019 | |||||||||||
Goodwill | $ | 6,293,093 | $ | 622,307 | $ | 6,915,400 | |||||
Accumulated impairment charges | — | (149,741 | ) | (149,741 | ) | ||||||
$ | 6,293,093 | $ | 472,566 | $ | 6,765,659 |
U.S. dialysis and related lab services | Other-ancillary services and strategic initiatives | Consolidated total | |||||||||
Balance at January 1, 2017 | $ | 5,691,587 | $ | 323,788 | $ | 6,015,375 | |||||
Acquisitions | 485,434 | 131,598 | 617,032 | ||||||||
Divestitures | (32,260 | ) | (126 | ) | (32,386 | ) | |||||
Impairment charges | — | (36,196 | ) | (36,196 | ) | ||||||
Foreign currency and other adjustments | — | 46,454 | 46,454 | ||||||||
Balance at December 31, 2017 | $ | 6,144,761 | $ | 465,518 | $ | 6,610,279 | |||||
Acquisitions | 24,431 | 111,223 | 135,654 | ||||||||
Divestitures | (331 | ) | (15,166 | ) | (15,497 | ) | |||||
Impairment charges | — | (3,106 | ) | (3,106 | ) | ||||||
Foreign currency and other adjustments | — | (24,671 | ) | (24,671 | ) | ||||||
Balance at September 30, 2018 | $ | 6,168,861 | $ | 533,798 | $ | 6,702,659 | |||||
Balance at September 30, 2018: | |||||||||||
Goodwill | $ | 6,168,861 | $ | 561,399 | $ | 6,730,260 | |||||
Accumulated impairment charges | — | (27,601 | ) | (27,601 | ) | ||||||
$ | 6,168,861 | $ | 533,798 | $ | 6,702,659 |
Reporting unit | Goodwill balance as of September 30, 2019 | Carrying amount coverage(1) | Sensitivities | |||||||
Operating income(2) | Discount rate(3) | |||||||||
Germany Kidney Care | $ | 287,256 | —% | (1.3)% | (11.0)% | |||||
Brazil Kidney Care | $ | 72,461 | 4.4% | (2.8)% | (7.0)% |
(1) | Excess of estimated fair value of the reporting unit over its carrying amount as of the latest assessment date. |
(2) | Potential impact on estimated fair value of a sustained, long-term reduction of 3% in operating income as of the latest assessment date. |
(3) | Potential impact on estimated fair value of an increase in discount rates of 100 basis points as of the latest assessment date. |
8. | Income taxes |
September 30, 2018 | December 31, 2017 | ||||||
Senior secured credit facilities: | |||||||
Term Loan A | $ | 700,000 | $ | 775,000 | |||
Term Loan A-2 | 995,000 | — | |||||
Term Loan B | 3,351,250 | 3,377,500 | |||||
Revolver | 275,000 | 300,000 | |||||
Senior notes | 4,500,000 | 4,500,000 | |||||
Acquisition obligations and other notes payable | 167,779 | 150,512 | |||||
Capital lease obligations | 289,333 | 297,170 | |||||
Total debt principal outstanding | 10,278,362 | 9,400,182 | |||||
Discount and deferred financing costs | (53,624 | ) | (63,951 | ) | |||
10,224,738 | 9,336,231 | ||||||
Less current portion | (1,784,065 | ) | (178,213 | ) | |||
$ | 8,440,673 | $ | 9,158,018 |
9. | Long-term debt |
As of September 30, 2019 | ||||||||||||||||
September 30, 2019 | December 31, 2018 | Maturity date | Interest rate | Estimated fair value(4) | ||||||||||||
Senior Secured Credit Facilities(1): | ||||||||||||||||
New Term Loan A | $ | 1,750,000 | $ | 8/12/2024 | LIBOR + 1.50% | $ | 1,750,000 | |||||||||
New Term Loan B | 2,750,000 | 8/12/2026 | LIBOR + 2.25% | $ | 2,770,625 | |||||||||||
Prior Term Loan A(2) | 675,000 | 12/24/2019 | (3) | $ | — | |||||||||||
Prior Term Loan A-2(2) | 995,000 | 12/24/2019 | (3) | $ | — | |||||||||||
Prior Term Loan B | 3,342,500 | 6/24/2021 | (3) | $ | — | |||||||||||
Prior revolving line of credit(2) | 175,000 | 12/24/2019 | (3) | $ | — | |||||||||||
Senior Notes: | ||||||||||||||||
5 1/8% Senior Notes | 1,750,000 | 1,750,000 | 7/15/2024 | 5.125 | % | $ | 1,776,250 | |||||||||
5% Senior Notes | 1,500,000 | 1,500,000 | 5/1/2025 | 5.00 | % | $ | 1,492,200 | |||||||||
5 3/4% Senior Notes | — | 1,250,000 | 8/15/2022 | $ | — | |||||||||||
Acquisition obligations and other notes payable(5) | 181,757 | 183,979 | 2019-2027 | 5.50 | % | $ | 181,757 | |||||||||
Financing lease obligations(6) | 280,138 | 282,737 | 2020-2037 | 5.36 | % | $ | 280,138 | |||||||||
Total debt principal outstanding | 8,211,895 | 10,154,216 | ||||||||||||||
Discount and deferred financing costs(7) | (75,979 | ) | (52,000 | ) | ||||||||||||
8,135,916 | 10,102,216 | |||||||||||||||
Less current portion | (121,441 | ) | (1,929,369 | ) | ||||||||||||
$ | 8,014,475 | $ | 8,172,847 |
(1) | As of September 30, 2019, the Company has an undrawn new revolving line of credit under its new senior secured credit facilities of $1,000,000. The new revolving line of credit interest rate in effect at September 30, 2019 was 1.50% plus London Interbank Offered Rate (LIBOR) and it matures on August 12, 2024. |
(2) | On May 6, 2019, the Company entered into an agreement to extend the maturity dates of its then existing Term Loan A, Term Loan A-2 and revolving line of credit under its prior senior secured credit facilities by six months, to December 24, 2019. |
(3) | At June 30, 2019, the interest rate on the Company's then existing term loan debt was LIBOR plus interest rate margins in effect of 2.00% for the prior Term Loan A and prior revolving line of credit, 1.00% for the prior Term Loan A-2 and 2.75% for the prior Term Loan B. |
(4) | Fair value estimates are based upon bid and ask quotes for these instruments, typically a level 2 input. The balances of acquisition obligations and other notes payable, and financing lease obligations are presented in the condensed consolidated financial statements as of September 30, 2019 at their approximate fair values due to the short-term nature of their settlements. |
(5) | 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. |
(6) | The interest rate presented for financing lease obligations is their weighted average discount rate. |
(7) | As of September 30, 2019, the carrying amount of the Company’s current senior secured credit facilities includes a discount of $6,708 and deferred financing costs of $47,255, and the carrying amount of the Company’s senior notes includes deferred financing costs of $22,016. As of December 31, 2018, the carrying amount of the Company’s then existing senior secured credit facilities included a discount of $6,104 and deferred financing costs of $12,580, and the carrying amount of the Company’s senior notes included deferred financing costs of $33,316. |
2019 (remainder of the year) | 29,841 | |
2020 | 129,082 | |
2021 | 153,120 | |
2022 | 168,824 | |
2023 | 224,455 | |
2024 | 3,171,804 | |
Thereafter | 4,334,769 |
2018 (remainder of the year) | 49,701 | |
2019 | 2,028,808 | |
2020 | 74,985 | |
2021 | 3,311,502 | |
2022 | 1,289,539 | |
2023 | 36,437 | |
Thereafter | 3,487,390 |
Nine months ended September 30, 2019 | Fair value | ||||||||||||||||||||||||
Notional amount | LIBOR maximum rate | Effective date | Expiration date | Debt expense | Recorded OCI loss | September 30, 2019 | December 31, 2018 | ||||||||||||||||||
2015 cap agreements | $ | 3,500,000 | 3.50% | 6/29/2018 | 6/30/2020 | $ | 6,428 | $ | 851 | $ | — | $ | 851 | ||||||||||||
2019 cap agreements | $ | 3,500,000 | 2.00% | 6/30/2020 | 6/30/2024 | $ | 1,393 | $ | 20,642 |
September 30, 2018 | December 31, 2017 | |||||||||||
Derivatives designated as hedging instruments | Balance sheet location | Fair value | Balance sheet location | Fair value | ||||||||
Interest rate cap agreements | Other long-term assets | $ | 2,135 | Other long-term assets | $ | 1,032 |
Amount of unrecognized (losses) gains in OCI on interest rate cap agreements | Income statement location | Reclassification from accumulated other comprehensive income into net income | ||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||
Interest rate cap agreements | $ | (1,420 | ) | $ | 50 | $ | (2,244 | ) | $ | 1,103 | Debt expense | $ | 2,101 | $ | 2,163 | $ | 6,428 | $ | 6,303 | |||||||||||||||
Related income tax | 360 | (13 | ) | 572 | (284 | ) | Related income tax | (532 | ) | (557 | ) | (1,646 | ) | (1,623 | ) | |||||||||||||||||||
Total | $ | (1,060 | ) | $ | 37 | $ | (1,672 | ) | $ | 819 | $ | 1,569 | $ | 1,606 | $ | 4,782 | $ | 4,680 |
Amount of unrecognized gains (losses) in OCI on interest rate cap agreements | Location of losses reclassified from accumulated OCI into income | Amount of losses reclassified from accumulated OCI into income | |||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||
Interest rate cap agreements | $ | 50 | $ | (782 | ) | $ | 1,103 | $ | (8,967 | ) | Debt expense | $ | 2,163 | $ | 2,070 | $ | 6,303 | $ | 6,208 | ||||||||||||||
Tax (benefit) expense | (13 | ) | 304 | (284 | ) | 3,488 | Tax expense | (557 | ) | (805 | ) | (1,623 | ) | (2,415 | ) | ||||||||||||||||||
Total | $ | 37 | $ | (478 | ) | $ | 819 | $ | (5,479 | ) | $ | 1,606 | $ | 1,265 | $ | 4,680 | $ | 3,793 |
10. | Leases |
Lease cost | Three months ended September 30, 2019 | Nine months ended September 30, 2019 | ||||||
Operating lease cost(1): | ||||||||
Fixed lease expense | $ | 133,342 | $ | 392,398 | ||||
Variable lease expense | 30,786 | 89,264 | ||||||
Financing lease cost: | ||||||||
Amortization of leased assets | 6,164 | 17,693 | ||||||
Interest on lease liabilities | 3,803 | 11,293 | ||||||
Net lease cost | $ | 174,095 | $ | 510,648 |
(1) | Includes short-term lease expense and sublease income, which are immaterial. |
Lease term and discount rate | September 30, 2019 | ||
Weighted average remaining lease term (years): | |||
Operating leases | 9.1 | ||
Finance leases | 10.5 | ||
Weighted average discount rate: | |||
Operating leases | 4.2 | % | |
Finance leases | 5.4 | % |
Other information | Nine months ended September 30, 2019 | |||
Gains on sale leasebacks, net | $ | 13,903 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 467,338 | ||
Operating cash flows from finance leases | $ | 16,226 | ||
Financing cash flows from finance leases | $ | 21,905 | ||
Net operating lease assets obtained in exchange for new or modified operating lease liabilities | $ | 299,697 |
Operating leases | Finance leases | ||||||
2019 (remainder of the year) | $ | 121,795 | $ | 8,384 | |||
2020 | 497,654 | 38,411 | |||||
2021 | 474,292 | 33,950 | |||||
2022 | 437,481 | 34,369 | |||||
2023 | 390,993 | 34,511 | |||||
2024 | 340,662 | 34,540 | |||||
Thereafter | 1,433,145 | 183,786 | |||||
Total future minimum lease payments | $ | 3,696,022 | $ | 367,951 | |||
Less portion representing interest | (639,683 | ) | (87,813 | ) | |||
Present value of lease liabilities | $ | 3,056,339 | $ | 280,138 |
Operating leases | Capital leases | ||||||
2019 | $ | 483,488 | $ | 36,754 | |||
2020 | 462,154 | 41,044 | |||||
2021 | 432,950 | 34,026 | |||||
2022 | 395,462 | 33,690 | |||||
2023 | 349,649 | 33,845 | |||||
Thereafter | 1,589,949 | 194,611 | |||||
$ | 3,713,652 | 373,970 | |||||
Less portion representing interest | (91,233 | ) | |||||
Total capital lease obligations, including current portion | $ | 282,737 |
11. | Contingencies |
Long-term incentive compensation |
Share repurchases |
Three months ended September 30, 2019 | Nine months ended September 30, 2019 | ||||||||||||||||||||
Shares repurchased | Amount paid | Average amount | Shares repurchased | Amount paid | Average amount | ||||||||||||||||
Tender Offer(1) | 21,802 | $ | 1,233,886 | $ | 56.60 | 21,802 | $ | 1,233,886 | $ | 56.60 | |||||||||||
Open market repurchases | 8,790 | 514,082 | 58.49 | 10,850 | 626,271 | 57.72 | |||||||||||||||
30,592 | $ | 1,747,968 | $ | 57.14 | 32,652 | $ | 1,860,157 | $ | 56.97 |
(1) | The amount paid for shares repurchased associated with the Company's Tender Offer during the three and nine months ended September 30, 2019 includes the clearing price of $56.50 per share plus related fees and expenses of $2,074. |
Accumulated other comprehensive (loss) income |
For the three months ended September 30, 2018 | For the nine months ended September 30, 2018 | ||||||||||||||||||||||||||||
Interest rate cap agreements | Investment securities | Foreign currency translation adjustments | Accumulated other comprehensive (loss) income | Interest rate cap agreements | Investment securities | Foreign currency translation adjustments | Accumulated other comprehensive (loss) income | ||||||||||||||||||||||
Beginning balance | $ | (11,258 | ) | $ | (10,667 | ) | $ | (21,925 | ) | $ | (12,408 | ) | $ | 5,662 | $ | 19,981 | $ | 13,235 | |||||||||||
Cumulative effect of change in accounting principle(1) | — | — | — | (2,706 | ) | (5,662 | ) | — | (8,368 | ) | |||||||||||||||||||
Unrealized gains (losses) | 50 | (8,827 | ) | (8,777 | ) | 1,103 | — | (39,475 | ) | (38,372 | ) | ||||||||||||||||||
Related income tax expense | (13 | ) | — | (13 | ) | (284 | ) | — | — | (284 | ) | ||||||||||||||||||
37 | (8,827 | ) | (8,790 | ) | 819 | — | (39,475 | ) | (38,656 | ) | |||||||||||||||||||
Reclassification from accumulated other comprehensive income into net income | 2,163 | — | 2,163 | 6,303 | — | — | 6,303 | ||||||||||||||||||||||
Related income tax expense | (557 | ) | — | (557 | ) | (1,623 | ) | — | — | (1,623 | ) | ||||||||||||||||||
1,606 | — | 1,606 | 4,680 | — | — | 4,680 | |||||||||||||||||||||||
Ending balance | $ | (9,615 | ) | $ | (19,494 | ) | $ | (29,109 | ) | $ | (9,615 | ) | $ | — | $ | (19,494 | ) | $ | (29,109 | ) |
For the three months ended September 30, 2019 | For the nine months ended September 30, 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 | $ | (6,360 | ) | $ | (27,251 | ) | $ | (33,611 | ) | $ | (8,961 | ) | $ | (25,963 | ) | $ | (34,924 | ) | |||||
Unrealized losses | (1,420 | ) | (44,502 | ) | (45,922 | ) | (2,244 | ) | (45,790 | ) | (48,034 | ) | |||||||||||
Related income tax | 360 | — | 360 | 572 | — | 572 | |||||||||||||||||
(1,060 | ) | (44,502 | ) | (45,562 | ) | (1,672 | ) | (45,790 | ) | (47,462 | ) | ||||||||||||
Reclassification into net income | 2,101 | — | 2,101 | 6,428 | — | 6,428 | |||||||||||||||||
Related income tax | (532 | ) | — | (532 | ) | (1,646 | ) | — | (1,646 | ) | |||||||||||||
1,569 | — | 1,569 | 4,782 | — | 4,782 | ||||||||||||||||||
Ending balance | $ | (5,851 | ) | $ | (71,753 | ) | $ | (77,604 | ) | $ | (5,851 | ) | $ | (71,753 | ) | $ | (77,604 | ) |
For the three months ended September 30, 2018 | For the nine months ended September 30, 2018 | ||||||||||||||||||||||||||
Interest rate cap agreements | Foreign currency translation adjustments | Accumulated other comprehensive loss | Interest rate cap agreements | Investment securities | Foreign currency translation adjustments | Accumulated other comprehensive (loss) income | |||||||||||||||||||||
Beginning balance | $ | (11,258 | ) | $ | (10,667 | ) | $ | (21,925 | ) | $ | (12,408 | ) | $ | 5,662 | $ | 19,981 | $ | 13,235 | |||||||||
Cumulative effect of change in accounting principle(1) | — | — | — | (2,706 | ) | (5,662 | ) | — | (8,368 | ) | |||||||||||||||||
Unrealized gains (losses) | 50 | (8,827 | ) | (8,777 | ) | 1,103 | — | (39,475 | ) | (38,372 | ) | ||||||||||||||||
Related income tax | (13 | ) | — | (13 | ) | (284 | ) | — | — | (284 | ) | ||||||||||||||||
37 | (8,827 | ) | (8,790 | ) | 819 | — | (39,475 | ) | (38,656 | ) | |||||||||||||||||
Reclassification into net income | 2,163 | — | 2,163 | 6,303 | — | — | 6,303 | ||||||||||||||||||||
Related income tax | (557 | ) | — | (557 | ) | (1,623 | ) | — | — | (1,623 | ) | ||||||||||||||||
1,606 | — | 1,606 | 4,680 | — | — | 4,680 | |||||||||||||||||||||
Ending balance | $ | (9,615 | ) | $ | (19,494 | ) | $ | (29,109 | ) | $ | (9,615 | ) | $ | — | $ | (19,494 | ) | $ | (29,109 | ) |
(1) | Reflects the cumulative effect of a change in accounting principle for ASUs 2016-01 and 2018-03 on classification and measurement of financial instruments and ASU 2018-02 on remeasurement and reclassification of deferred tax effects in accumulated other comprehensive income associated with the |
For the three months ended September 30, 2017 | For the nine months ended September 30, 2017 | ||||||||||||||||||||||||||||||
Interest rate cap agreements | Investment securities | Foreign currency translation adjustments | Accumulated other comprehensive (loss) income | Interest rate cap and swap agreements | Investment securities | Foreign currency translation adjustments | Accumulated other comprehensive (loss) income | ||||||||||||||||||||||||
Beginning balance | $ | (14,502 | ) | $ | 4,580 | $ | (17,386 | ) | $ | (27,308 | ) | $ | (12,029 | ) | $ | 2,175 | $ | (79,789 | ) | $ | (89,643 | ) | |||||||||
Unrealized (losses) gains | (782 | ) | 1,253 | 29,143 | 29,614 | (8,967 | ) | 4,682 | 91,546 | 87,261 | |||||||||||||||||||||
Related income tax benefit (expense) | 304 | (390 | ) | — | (86 | ) | 3,488 | (1,202 | ) | — | 2,286 | ||||||||||||||||||||
(478 | ) | 863 | 29,143 | 29,528 | (5,479 | ) | 3,480 | 91,546 | 89,547 | ||||||||||||||||||||||
Reclassification from accumulated other comprehensive income into net income | 2,070 | (15 | ) | — | 2,055 | 6,208 | (362 | ) | — | 5,846 | |||||||||||||||||||||
Related income tax (expense) benefit | (805 | ) | 6 | — | (799 | ) | (2,415 | ) | 141 | — | (2,274 | ) | |||||||||||||||||||
1,265 | (9 | ) | — | 1,256 | 3,793 | (221 | ) | — | 3,572 | ||||||||||||||||||||||
Ending balance | $ | (13,715 | ) | $ | 5,434 | $ | 11,757 | $ | 3,476 | $ | (13,715 | ) | $ | 5,434 | $ | 11,757 | $ | 3,476 |
Acquisitions and divestitures |
Current assets | $ | 5,238 | |
Property and equipment | 3,607 | ||
Intangible and other long-term assets | 15,848 | ||
Goodwill | 77,238 | ||
Current liabilities | (3,360 | ) | |
Long-term liabilities | (1,139 | ) | |
Noncontrolling interests | (1,762 | ) | |
$ | 95,670 |
Current assets | $ | 10,183 | |
Property and equipment | 5,654 | ||
Intangible and other long-term assets | 3,672 | ||
Goodwill | 135,654 | ||
Current liabilities | (12,139 | ) | |
Long-term liabilities | (212 | ) | |
Noncontrolling interests | (11,947 | ) | |
$ | 130,865 |
For the nine months ended September 30, 2018 | ||||||
Beginning balance | $ | 6,388 | ||||
Beginning balance December 31, 2018 | $ | 2,608 | ||||
Contingent earn-out obligations associated with acquisitions | 1,246 | 19,731 | ||||
Remeasurement of fair value for contingent earn-out obligations | (401 | ) | (2,179 | ) | ||
Ending balance | $ | 7,233 | ||||
Payments on contingent earn-out obligations | (327 | ) | ||||
Ending balance September 30, 2019 | $ | 19,833 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | — | $ | 1,252,909 | $ | 2,713,059 | $ | 3,733,270 | |||||||
Expenses | 1,996 | 1,260,814 | 2,541,783 | 3,679,747 | |||||||||||
Valuation adjustment | — | 98,201 | — | 98,201 | |||||||||||
(Loss) income from discontinued operations before taxes | (1,996 | ) | (106,106 | ) | 171,276 | (44,678 | ) | ||||||||
Loss on sale of discontinued operations before taxes | — | — | (23,022 | ) | — | ||||||||||
Income tax expense | 4,847 | 105,633 | 45,400 | 103,151 | |||||||||||
Net (loss) income from discontinued operations, net of tax | $ | (6,843 | ) | $ | (211,739 | ) | $ | 102,854 | $ | (147,829 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | $ | 1,252,909 | $ | 1,178,443 | $ | 3,733,270 | $ | 3,461,493 | |||||||
Expenses | 1,260,814 | 1,164,562 | 3,679,747 | 3,396,914 | |||||||||||
Goodwill impairment charges | — | 601,040 | — | 651,659 | |||||||||||
Valuation adjustment | 98,201 | — | 98,201 | — | |||||||||||
(Loss) income from discontinued operations before taxes | (106,106 | ) | (587,159 | ) | (44,678 | ) | (587,080 | ) | |||||||
Income tax expense (benefit) | 105,633 | (216,287 | ) | 103,151 | (198,121 | ) | |||||||||
Net loss from discontinued operations, net of tax | (211,739 | ) | (370,872 | ) | (147,829 | ) | (388,959 | ) |
September 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 444,468 | $ | 179,668 | |||
Other current assets | 848,905 | 826,608 | |||||
Property and equipment, net | 438,332 | 379,945 | |||||
Intangible assets, net | 1,316,571 | 1,316,550 | |||||
Other long-term assets | 114,236 | 178,894 | |||||
Goodwill | 2,883,475 | 2,879,977 | |||||
Valuation allowance on disposal group | (98,201 | ) | — | ||||
Total current assets held for sale, net | $ | 5,947,786 | $ | 5,761,642 | |||
Liabilities | |||||||
Other liabilities | $ | 652,502 | $ | 505,734 | |||
Medical payables | 457,748 | 457,040 | |||||
Current portion of long-term debt | 2,839 | 2,845 | |||||
Long-term debt | 33,595 | 35,003 | |||||
Other long-term liabilities | 272,937 | 184,448 | |||||
Total current liabilities held for sale | $ | 1,419,621 | $ | 1,185,070 |
Nine months ended September 30, | |||||||
2019 | 2018 | ||||||
Net cash provided by operating activities from discontinued operations | $ | 97,005 | $ | 208,570 | |||
Net cash used in investing activities from discontinued operations | $ | (43,442 | ) | $ | (32,860 | ) |
September 30, 2018 | September 30, 2017 | ||||||
Net cash provided by operating activities from discontinued operations | $ | 208,570 | $ | 298,974 | |||
Net cash used in investing activities from discontinued operations | $ | (32,860 | ) | $ | (187,606 | ) |
Variable interest entities |
Fair values of financial instruments |
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 | $ | 37,641 | $ | 37,641 | $ | — | $ | — | |||||||
Interest rate cap agreements | $ | 20,642 | $ | — | $ | 20,642 | $ | — | |||||||
Liabilities | |||||||||||||||
Contingent earn-out obligations | $ | 19,833 | $ | — | $ | — | $ | 19,833 | |||||||
Temporary equity | |||||||||||||||
Noncontrolling interests subject to put provisions | $ | 1,296,059 | $ | — | $ | — | $ | 1,296,059 |
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 mutual funds and common stock | $ | 37,547 | $ | 37,547 | $ | — | $ | — | |||||||
Interest rate cap agreements | $ | 2,135 | $ | — | $ | 2,135 | $ | — | |||||||
Liabilities | |||||||||||||||
Contingent earn-out obligations | $ | 7,233 | $ | — | $ | — | $ | 7,233 | |||||||
Temporary equity | |||||||||||||||
Noncontrolling interests subject to put provisions | $ | 1,064,412 | $ | — | $ | — | $ | 1,064,412 |
Segment reporting |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Segment net revenues: | ||||||||||||||||||||||||||||||
Segment revenues: | ||||||||||||||||||||||||||||||
U.S. dialysis and related lab services | ||||||||||||||||||||||||||||||
Patient service revenues: | ||||||||||||||||||||||||||||||
External sources | $ | 2,559,345 | $ | 2,470,169 | $ | 7,661,244 | $ | 7,247,403 | $ | 2,652,946 | $ | 2,559,345 | $ | 7,782,435 | $ | 7,661,244 | ||||||||||||||
Intersegment revenues | 25,424 | 13,475 | 63,943 | 38,559 | 32,150 | 25,424 | 92,611 | 63,943 | ||||||||||||||||||||||
U.S. dialysis and related lab services patient service revenues | 2,584,769 | 2,483,644 | 7,725,187 | 7,285,962 | 2,685,096 | 2,584,769 | 7,875,046 | 7,725,187 | ||||||||||||||||||||||
Provision for uncollectible accounts | (12,900 | ) | (117,962 | ) | (37,108 | ) | (334,031 | ) | (3,977 | ) | (12,900 | ) | (19,689 | ) | (37,108 | ) | ||||||||||||||
Net U.S. dialysis and related lab services patient service revenues | 2,571,869 | 2,365,682 | 7,688,079 | 6,951,931 | 2,681,119 | 2,571,869 | 7,855,357 | 7,688,079 | ||||||||||||||||||||||
Other revenues(1) | 4,932 | 4,792 | 14,965 | 14,951 | ||||||||||||||||||||||||||
Other revenues(1): | ||||||||||||||||||||||||||||||
External sources | 10,096 | 4,932 | 19,989 | 14,965 | ||||||||||||||||||||||||||
Intersegment revenues | 212 | — | 726 | — | ||||||||||||||||||||||||||
Total U.S. dialysis and related lab services revenues | 2,576,801 | 2,370,474 | 7,703,044 | 6,966,882 | 2,691,427 | 2,576,801 | 7,876,072 | 7,703,044 | ||||||||||||||||||||||
Other—Ancillary services and strategic initiatives | ||||||||||||||||||||||||||||||
Patient service revenues, net | 112,279 | 90,015 | 320,204 | 229,587 | 128,223 | 112,279 | 367,951 | 320,204 | ||||||||||||||||||||||
Other external sources | 183,674 | 318,057 | 624,422 | 937,811 | 116,790 | 183,674 | 339,209 | 624,422 | ||||||||||||||||||||||
Intersegment revenues | 8,361 | 5,996 | 27,748 | 18,488 | 3,483 | 8,361 | 10,222 | 27,748 | ||||||||||||||||||||||
Total ancillary services and strategic initiatives revenues | 304,314 | 414,068 | 972,374 | 1,185,886 | 248,496 | 304,314 | 717,382 | 972,374 | ||||||||||||||||||||||
Total net segment revenues | 2,881,115 | 2,784,542 | 8,675,418 | 8,152,768 | 2,939,923 | 2,881,115 | 8,593,454 | 8,675,418 | ||||||||||||||||||||||
Elimination of intersegment revenues | (33,785 | ) | (19,471 | ) | (91,691 | ) | (57,047 | ) | (35,845 | ) | (33,785 | ) | (103,559 | ) | (91,691 | ) | ||||||||||||||
Consolidated revenues | $ | 2,847,330 | $ | 2,765,071 | $ | 8,583,727 | $ | 8,095,721 | $ | 2,904,078 | $ | 2,847,330 | $ | 8,489,895 | $ | 8,583,727 | ||||||||||||||
Segment operating margin: | ||||||||||||||||||||||||||||||
U.S. dialysis and related lab services | $ | 390,006 | $ | 442,777 | $ | 1,272,828 | $ | 1,837,989 | $ | 500,742 | $ | 390,006 | $ | 1,416,680 | $ | 1,272,828 | ||||||||||||||
Other—Ancillary services and strategic initiatives | (60,132 | ) | (36,518 | ) | (64,307 | ) | (142,984 | ) | (97,725 | ) | (60,132 | ) | (170,405 | ) | (64,307 | ) | ||||||||||||||
Total segment operating margin | 329,874 | 406,259 | 1,208,521 | 1,695,005 | 403,017 | 329,874 | 1,246,275 | 1,208,521 | ||||||||||||||||||||||
Reconciliation of segment operating margin to consolidated income from continuing operations before income taxes: | ||||||||||||||||||||||||||||||
Corporate administrative support | (40,836 | ) | (10,965 | ) | (70,605 | ) | (32,587 | ) | (24,681 | ) | (40,836 | ) | (65,546 | ) | (70,605 | ) | ||||||||||||||
Consolidated operating income | 289,038 | 395,294 | 1,137,916 | 1,662,418 | 378,336 | 289,038 | 1,180,729 | 1,137,916 | ||||||||||||||||||||||
Debt expense | (125,927 | ) | (109,306 | ) | (359,135 | ) | (321,637 | ) | (88,589 | ) | (125,927 | ) | (351,774 | ) | (359,135 | ) | ||||||||||||||
Debt prepayment, refinancing and redemption charges | (21,242 | ) | — | (33,402 | ) | — | ||||||||||||||||||||||||
Other income, net | 4,007 | 3,396 | 10,583 | 12,180 | 5,280 | 4,007 | 17,863 | 10,583 | ||||||||||||||||||||||
Consolidated income from continuing operations before income taxes | $ | 167,118 | $ | 289,384 | $ | 789,364 | $ | 1,352,961 | $ | 273,785 | $ | 167,118 | $ | 813,416 | $ | 789,364 |
(1) | Includes management |
September 30, 2019 | December 31, 2018 | ||||||
Segment assets | |||||||
U.S. dialysis and related lab services (including equity investments of $100,815 and $95,290, respectively) | $ | 15,997,552 | $ | 12,333,641 | |||
Other—Ancillary services and strategic initiatives (including equity investments of $118,571 and $129,321, respectively) | 1,454,278 | 1,387,046 | |||||
DMG—Held for sale (including equity investments of $0 and $4,833, respectively) | — | 5,389,565 | |||||
Consolidated assets | $ | 17,451,830 | $ | 19,110,252 |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
U.S. dialysis and related lab services | $ | 138,669 | $ | 132,112 | $ | 411,697 | $ | 387,142 | $ | 147,607 | $ | 138,669 | $ | 433,008 | $ | 411,697 | ||||||||||||||
Other—Ancillary services and strategic initiatives | 7,331 | 10,522 | 24,181 | 28,402 | 8,308 | 7,331 | 23,677 | 24,181 | ||||||||||||||||||||||
$ | 146,000 | $ | 142,634 | $ | 435,878 | $ | 415,544 | $ | 155,915 | $ | 146,000 | $ | 456,685 | $ | 435,878 |
September 30, 2018 | December 31, 2017 | ||||||
Segment assets | |||||||
U.S. dialysis and related lab services (including equity investments of $94,144 and $84,866, respectively) | $ | 12,101,111 | $ | 11,776,042 | |||
Other—Ancillary services and strategic initiatives (including equity investments of $146,676 and $160,668, respectively) | 1,308,892 | 1,410,509 | |||||
DMG—Held for sale (including equity investments of $5,060 and $10,321, respectively) | 5,947,786 | 5,761,642 | |||||
Consolidated assets | $ | 19,357,789 | $ | 18,948,193 |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
U.S. dialysis and related lab services | $ | 214,728 | $ | 207,472 | $ | 603,186 | $ | 538,620 | $ | 157,721 | $ | 214,728 | $ | 477,533 | $ | 603,186 | ||||||||||||||
Other—Ancillary services and strategic initiatives | 5,019 | 9,135 | 37,191 | 28,256 | 15,544 | 5,019 | 31,184 | 37,191 | ||||||||||||||||||||||
DMG—Held for sale | 11,935 | 24,282 | 65,282 | 72,953 | — | 11,935 | 38,466 | 65,282 | ||||||||||||||||||||||
$ | 231,682 | $ | 240,889 | $ | 705,659 | $ | 639,829 | $ | 173,265 | $ | 231,682 | $ | 547,183 | $ | 705,659 |
Changes in DaVita Inc.’s ownership interests in consolidated subsidiaries |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) attributable to DaVita Inc. | $ | 143,270 | $ | (136,796 | ) | $ | 566,110 | $ | 309,166 | ||||||
Changes in paid-in capital for: | |||||||||||||||
Sales of noncontrolling interests | — | — | — | 79 | |||||||||||
Purchases of noncontrolling interests | (202 | ) | (5,285 | ) | 10,732 | (17,482 | ) | ||||||||
Net transfers to noncontrolling interests | (202 | ) | (5,285 | ) | 10,732 | (17,403 | ) | ||||||||
Net income (loss) attributable to DaVita Inc., net of transfers to noncontrolling interests | $ | 143,068 | $ | (142,081 | ) | $ | 576,842 | $ | 291,763 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net (loss) income attributable to DaVita Inc. | $ | (136,796 | ) | $ | (214,476 | ) | $ | 309,166 | $ | 360,222 | |||||
Changes in paid-in capital for: | |||||||||||||||
Sales of noncontrolling interests | — | — | 79 | — | |||||||||||
Purchases of noncontrolling interests | (5,285 | ) | — | (17,482 | ) | 195 | |||||||||
Net transfers to noncontrolling interests | (5,285 | ) | — | (17,403 | ) | 195 | |||||||||
Net (loss) income attributable to DaVita Inc., net of transfers to noncontrolling interests | $ | (142,081 | ) | $ | (214,476 | ) | $ | 291,763 | $ | 360,417 |
New accounting standards |
Condensed consolidating financial statements |
For the three months ended September 30, 2019 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||
Patient services revenues | $ | — | $ | 1,761,235 | $ | 1,087,531 | $ | (67,597 | ) | $ | 2,781,169 | |||||||||
Provision for uncollectible accounts | — | (2,728 | ) | (1,249 | ) | — | (3,977 | ) | ||||||||||||
Net patient service revenues | — | 1,758,507 | 1,086,282 | (67,597 | ) | 2,777,192 | ||||||||||||||
Other revenues | 204,183 | 140,956 | 83,860 | (302,113 | ) | 126,886 | ||||||||||||||
Total net revenues | 204,183 | 1,899,463 | 1,170,142 | (369,710 | ) | 2,904,078 | ||||||||||||||
Operating expenses | 11,046 | 1,823,752 | 1,060,654 | (369,710 | ) | 2,525,742 | ||||||||||||||
Operating income | 193,137 | 75,711 | 109,488 | — | 378,336 | |||||||||||||||
Debt expense | (110,712 | ) | (43,535 | ) | (14,206 | ) | 58,622 | (109,831 | ) | |||||||||||
Other income, net | 51,150 | 2,994 | 9,758 | (58,622 | ) | 5,280 | ||||||||||||||
Income tax expense | 33,364 | 28,320 | 3,570 | — | 65,254 | |||||||||||||||
Equity earnings in subsidiaries | 43,059 | 123,186 | — | (166,245 | ) | — | ||||||||||||||
Net income from continuing operations | 143,270 | 130,036 | 101,470 | (166,245 | ) | 208,531 | ||||||||||||||
Net loss from discontinued operations, net of tax | — | — | (6,843 | ) | — | (6,843 | ) | |||||||||||||
Net income | 143,270 | 130,036 | 94,627 | (166,245 | ) | 201,688 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (58,418 | ) | (58,418 | ) | |||||||||||||
Net income attributable to DaVita Inc. | $ | 143,270 | $ | 130,036 | $ | 94,627 | $ | (224,663 | ) | $ | 143,270 |
DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | ||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2018 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||||||||||||||||||||
Patient services revenues | $ | — | $ | 1,810,009 | $ | 914,623 | $ | (53,931 | ) | $ | 2,670,701 | |||||||||||||||||||||||||||||
Patient service revenues | $ | — | $ | 1,699,109 | $ | 1,028,548 | $ | (56,956 | ) | $ | 2,670,701 | |||||||||||||||||||||||||||||
Provision for uncollectible accounts | — | (8,899 | ) | (3,078 | ) | — | (11,977 | ) | — | (9,246 | ) | (2,731 | ) | — | (11,977 | ) | ||||||||||||||||||||||||
Net patient service revenues | — | 1,801,110 | 911,545 | (53,931 | ) | 2,658,724 | — | 1,689,863 | 1,025,817 | (56,956 | ) | 2,658,724 | ||||||||||||||||||||||||||||
Other revenues | 207,968 | 192,467 | 36,508 | (248,337 | ) | 188,606 | 207,968 | 127,269 | 136,448 | (283,079 | ) | 188,606 | ||||||||||||||||||||||||||||
Total net revenues | 207,968 | 1,993,577 | 948,053 | (302,268 | ) | 2,847,330 | 207,968 | 1,817,132 | 1,162,265 | (340,035 | ) | 2,847,330 | ||||||||||||||||||||||||||||
Operating expenses and charges | 205,324 | 1,817,851 | 837,385 | (302,268 | ) | 2,558,292 | 205,324 | 1,649,128 | 1,043,875 | (340,035 | ) | 2,558,292 | ||||||||||||||||||||||||||||
Operating income | 2,644 | 175,726 | 110,668 | — | 289,038 | 2,644 | 168,004 | 118,390 | — | 289,038 | ||||||||||||||||||||||||||||||
Debt expense | (127,353 | ) | (52,011 | ) | (8,812 | ) | 62,249 | (125,927 | ) | (127,353 | ) | (50,254 | ) | (10,570 | ) | 62,250 | (125,927 | ) | ||||||||||||||||||||||
Other income, net | 106,148 | 2,339 | 5,982 | (110,462 | ) | 4,007 | 106,148 | 603 | 7,719 | (110,463 | ) | 4,007 | ||||||||||||||||||||||||||||
Income tax (benefit) expense | (3,536 | ) | 47,977 | 7,606 | — | 52,047 | (3,536 | ) | 43,583 | 12,000 | — | 52,047 | ||||||||||||||||||||||||||||
Equity earnings in subsidiaries | (121,771 | ) | 46,972 | — | 74,799 | — | (121,771 | ) | 60,448 | — | 61,323 | — | ||||||||||||||||||||||||||||
Net (loss) income from continuing operations | (136,796 | ) | 125,049 | 100,232 | 26,586 | 115,071 | (136,796 | ) | 135,218 | 103,539 | 13,110 | 115,071 | ||||||||||||||||||||||||||||
Net loss from discontinued operations, net of tax | — | (246,820 | ) | (13,132 | ) | 48,213 | (211,739 | ) | — | — | (259,952 | ) | 48,213 | (211,739 | ) | |||||||||||||||||||||||||
Net (loss) income | (136,796 | ) | (121,771 | ) | 87,100 | 74,799 | (96,668 | ) | (136,796 | ) | 135,218 | (156,413 | ) | 61,323 | (96,668 | ) | ||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (40,128 | ) | (40,128 | ) | — | — | — | (40,128 | ) | (40,128 | ) | ||||||||||||||||||||||||||
Net (loss) income attributable to DaVita Inc. | $ | (136,796 | ) | $ | (121,771 | ) | $ | 87,100 | $ | 34,671 | $ | (136,796 | ) | $ | (136,796 | ) | $ | 135,218 | $ | (156,413 | ) | $ | 21,195 | $ | (136,796 | ) |
Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||
For the three months ended September 30, 2017 | DaVita Inc. | |||||||||||||||||||
Patient service revenues | $ | — | $ | 1,710,708 | $ | 914,753 | $ | (63,918 | ) | $ | 2,561,543 | |||||||||
Provision for uncollectible accounts | — | (82,807 | ) | (42,649 | ) | 6,135 | (119,321 | ) | ||||||||||||
Net patient service revenues | — | 1,627,901 | 872,104 | (57,783 | ) | 2,442,222 | ||||||||||||||
Other revenues | 189,275 | 302,193 | 11,483 | (180,102 | ) | 322,849 | ||||||||||||||
Total net revenues | 189,275 | 1,930,094 | 883,587 | (237,885 | ) | 2,765,071 | ||||||||||||||
Operating expenses | 128,488 | 1,718,444 | 760,730 | (237,885 | ) | 2,369,777 | ||||||||||||||
Operating income | 60,787 | 211,650 | 122,857 | — | 395,294 | |||||||||||||||
Debt expense | (108,453 | ) | (48,622 | ) | (13,017 | ) | 60,786 | (109,306 | ) | |||||||||||
Other income | 104,250 | 819 | 5,941 | (107,614 | ) | 3,396 | ||||||||||||||
Income tax expense (benefit) | 21,199 | 82,780 | (13,433 | ) | — | 90,546 | ||||||||||||||
Equity earnings in subsidiaries | (249,861 | ) | 89,048 | — | 160,813 | — | ||||||||||||||
Net (loss) income from continuing operations | (214,476 | ) | 170,115 | 129,214 | 113,985 | 198,838 | ||||||||||||||
Net (loss) income from discontinued operations, net of tax | — | (419,976 | ) | 2,276 | 46,828 | (370,872 | ) | |||||||||||||
Net (loss) income | (214,476 | ) | (249,861 | ) | 131,490 | 160,813 | (172,034 | ) | ||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (42,442 | ) | (42,442 | ) | |||||||||||||
Net (loss) income attributable to DaVita Inc. | $ | (214,476 | ) | $ | (249,861 | ) | $ | 131,490 | $ | 118,371 | $ | (214,476 | ) |
DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | ||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Patient service revenues | $ | — | $ | 5,431,742 | $ | 2,699,670 | $ | (151,234 | ) | $ | 7,980,178 | |||||||||||||||||||||||||||||
For the nine months ended September 30, 2019 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||||||||||||||||||||
Patient services revenues | $ | — | $ | 5,181,017 | $ | 3,164,726 | $ | (195,357 | ) | $ | 8,150,386 | |||||||||||||||||||||||||||||
Provision for uncollectible accounts | — | (26,430 | ) | (9,408 | ) | — | (35,838 | ) | — | (13,530 | ) | (6,159 | ) | — | (19,689 | ) | ||||||||||||||||||||||||
Net patient service revenues | — | 5,405,312 | 2,690,262 | (151,234 | ) | 7,944,340 | — | 5,167,487 | 3,158,567 | (195,357 | ) | 8,130,697 | ||||||||||||||||||||||||||||
Other revenues | 608,850 | 611,693 | 150,578 | (731,734 | ) | 639,387 | 600,318 | 438,058 | 130,345 | (809,523 | ) | 359,198 | ||||||||||||||||||||||||||||
Total net revenues | 608,850 | 6,017,005 | 2,840,840 | (882,968 | ) | 8,583,727 | 600,318 | 5,605,545 | 3,288,912 | (1,004,880 | ) | 8,489,895 | ||||||||||||||||||||||||||||
Operating expenses | 484,329 | 5,459,322 | 2,385,128 | (882,968 | ) | 7,445,811 | ||||||||||||||||||||||||||||||||||
Operating expenses and charges | 315,169 | 5,106,307 | 2,892,570 | (1,004,880 | ) | 7,309,166 | ||||||||||||||||||||||||||||||||||
Operating income | 124,521 | 557,683 | 455,712 | — | 1,137,916 | 285,149 | 499,238 | 396,342 | — | 1,180,729 | ||||||||||||||||||||||||||||||
Debt expense | (362,501 | ) | (156,571 | ) | (25,461 | ) | 185,398 | (359,135 | ) | (389,203 | ) | (145,110 | ) | (39,807 | ) | 188,944 | (385,176 | ) | ||||||||||||||||||||||
Other income | 315,573 | 7,718 | 16,126 | (328,834 | ) | 10,583 | ||||||||||||||||||||||||||||||||||
Other income, net | 263,407 | 4,332 | 31,800 | (281,676 | ) | 17,863 | ||||||||||||||||||||||||||||||||||
Income tax expense | 24,108 | 136,939 | 45,605 | — | 206,652 | 41,017 | 122,633 | 34,288 | — | 197,938 | ||||||||||||||||||||||||||||||
Equity earnings in subsidiaries | 255,681 | 305,823 | — | (561,504 | ) | — | 447,774 | 318,431 | — | (766,205 | ) | — | ||||||||||||||||||||||||||||
Net income from continuing operations | 309,166 | 577,714 | 400,772 | (704,940 | ) | 582,712 | 566,110 | 554,258 | 354,047 | (858,937 | ) | 615,478 | ||||||||||||||||||||||||||||
Net (loss) income from discontinued operations, net of tax | — | (322,033 | ) | 30,768 | 143,436 | (147,829 | ) | |||||||||||||||||||||||||||||||||
Net income from discontinued operations, net of tax | — | — | 10,122 | 92,732 | 102,854 | |||||||||||||||||||||||||||||||||||
Net income | 309,166 | 255,681 | 431,540 | (561,504 | ) | 434,883 | 566,110 | 554,258 | 364,169 | (766,205 | ) | 718,332 | ||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (125,717 | ) | (125,717 | ) | — | — | — | (152,222 | ) | (152,222 | ) | ||||||||||||||||||||||||||
Net income attributable to DaVita Inc. | $ | 309,166 | $ | 255,681 | $ | 431,540 | $ | (687,221 | ) | $ | 309,166 | $ | 566,110 | $ | 554,258 | $ | 364,169 | $ | (918,427 | ) | $ | 566,110 |
DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | ||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||
Patient service revenues | $ | — | $ | 4,895,864 | $ | 2,723,764 | $ | (140,690 | ) | $ | 7,478,938 | |||||||||||||||||||||||||||||
For the nine months ended September 30, 2018 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||||||||||||||||||||
Patient services revenues | $ | — | $ | 5,100,487 | $ | 3,039,056 | $ | (159,365 | ) | $ | 7,980,178 | |||||||||||||||||||||||||||||
Provision for uncollectible accounts | — | (216,705 | ) | (125,409 | ) | 6,135 | (335,979 | ) | — | (26,430 | ) | (9,408 | ) | — | (35,838 | ) | ||||||||||||||||||||||||
Net patient service revenues | — | 4,679,159 | 2,598,355 | (134,555 | ) | 7,142,959 | — | 5,074,057 | 3,029,648 | (159,365 | ) | 7,944,340 | ||||||||||||||||||||||||||||
Other revenues | 604,246 | 913,130 | 43,408 | (608,022 | ) | 952,762 | 608,850 | 355,055 | 512,025 | (836,543 | ) | 639,387 | ||||||||||||||||||||||||||||
Total net revenues | 604,246 | 5,592,289 | 2,641,763 | (742,577 | ) | 8,095,721 | 608,850 | 5,429,112 | 3,541,673 | (995,908 | ) | 8,583,727 | ||||||||||||||||||||||||||||
Operating expenses | 398,502 | 4,609,747 | 2,167,631 | (742,577 | ) | 6,433,303 | ||||||||||||||||||||||||||||||||||
Operating expenses and charges | 484,329 | 4,949,070 | 3,008,320 | (995,908 | ) | 7,445,811 | ||||||||||||||||||||||||||||||||||
Operating income | 205,744 | 982,542 | 474,132 | — | 1,662,418 | 124,521 | 480,042 | 533,353 | — | 1,137,916 | ||||||||||||||||||||||||||||||
Debt expense | (317,276 | ) | (144,382 | ) | (38,287 | ) | 178,308 | (321,637 | ) | (362,501 | ) | (151,373 | ) | (30,660 | ) | 185,399 | (359,135 | ) | ||||||||||||||||||||||
Other income | 306,886 | 4,991 | 15,524 | (315,221 | ) | 12,180 | ||||||||||||||||||||||||||||||||||
Other income, net | 315,573 | 2,864 | 20,981 | (328,835 | ) | 10,583 | ||||||||||||||||||||||||||||||||||
Income tax expense | 75,680 | 389,945 | 8,501 | — | 474,126 | 24,108 | 112,193 | 70,351 | — | 206,652 | ||||||||||||||||||||||||||||||
Equity earnings in subsidiaries | 240,548 | 337,213 | — | (577,761 | ) | — | 255,681 | 328,042 | — | (583,723 | ) | — | ||||||||||||||||||||||||||||
Net income from continuing operations | 360,222 | 790,419 | 442,868 | (714,674 | ) | 878,835 | 309,166 | 547,382 | 453,323 | (727,159 | ) | 582,712 | ||||||||||||||||||||||||||||
Net (loss) income from discontinued operations, net of tax | — | (549,871 | ) | 23,999 | 136,913 | (388,959 | ) | |||||||||||||||||||||||||||||||||
Net loss from discontinued operations, net of tax | — | — | (291,265 | ) | 143,436 | (147,829 | ) | |||||||||||||||||||||||||||||||||
Net income | 360,222 | 240,548 | 466,867 | (577,761 | ) | 489,876 | 309,166 | 547,382 | 162,058 | (583,723 | ) | 434,883 | ||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (129,654 | ) | (129,654 | ) | — | — | — | (125,717 | ) | (125,717 | ) | ||||||||||||||||||||||||||
Net income attributable to DaVita Inc. | $ | 360,222 | $ | 240,548 | $ | 466,867 | $ | (707,415 | ) | $ | 360,222 | $ | 309,166 | $ | 547,382 | $ | 162,058 | $ | (709,440 | ) | $ | 309,166 |
Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||
For the three months ended September 30, 2018 | DaVita Inc. | |||||||||||||||||||
Net (loss) income | $ | (136,796 | ) | $ | (121,771 | ) | $ | 87,100 | $ | 74,799 | $ | (96,668 | ) | |||||||
Other comprehensive income (loss) | 1,643 | — | (8,827 | ) | — | (7,184 | ) | |||||||||||||
Total comprehensive (loss) income | (135,153 | ) | (121,771 | ) | 78,273 | 74,799 | (103,852 | ) | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (40,128 | ) | (40,128 | ) | |||||||||||||
Comprehensive (loss) income attributable to DaVita Inc. | $ | (135,153 | ) | $ | (121,771 | ) | $ | 78,273 | $ | 34,671 | $ | (143,980 | ) |
For the three months ended September 30, 2019 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||
Net income | $ | 143,270 | $ | 130,036 | $ | 94,627 | $ | (166,245 | ) | $ | 201,688 | |||||||||
Other comprehensive income (loss) | 509 | — | (44,502 | ) | — | (43,993 | ) | |||||||||||||
Total comprehensive income | 143,779 | 130,036 | 50,125 | (166,245 | ) | 157,695 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (58,418 | ) | (58,418 | ) | |||||||||||||
Comprehensive income attributable to DaVita Inc. | $ | 143,779 | $ | 130,036 | $ | 50,125 | $ | (224,663 | ) | $ | 99,277 |
For the three months ended September 30, 2018 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||
Net (loss) income | $ | (136,796 | ) | $ | 135,218 | $ | (156,413 | ) | $ | 61,323 | $ | (96,668 | ) | |||||||
Other comprehensive income (loss) | 1,643 | — | (8,827 | ) | — | (7,184 | ) | |||||||||||||
Total comprehensive (loss) income | (135,153 | ) | 135,218 | (165,240 | ) | 61,323 | (103,852 | ) | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (40,128 | ) | (40,128 | ) | |||||||||||||
Comprehensive (loss) income attributable to DaVita Inc. | $ | (135,153 | ) | $ | 135,218 | $ | (165,240 | ) | $ | 21,195 | $ | (143,980 | ) |
Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||
For the three months ended September 30, 2017 | DaVita Inc. | |||||||||||||||||||
Net (loss) income | $ | (214,476 | ) | $ | (249,861 | ) | $ | 131,490 | $ | 160,813 | $ | (172,034 | ) | |||||||
Other comprehensive income | 1,641 | — | 29,143 | — | 30,784 | |||||||||||||||
Total comprehensive (loss) income | (212,835 | ) | (249,861 | ) | 160,633 | 160,813 | (141,250 | ) | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (42,442 | ) | (42,442 | ) | |||||||||||||
Comprehensive (loss) income attributable to DaVita Inc. | $ | (212,835 | ) | $ | (249,861 | ) | $ | 160,633 | $ | 118,371 | $ | (183,692 | ) |
For the nine months ended September 30, 2019 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||
Net income | $ | 566,110 | $ | 554,258 | $ | 364,169 | $ | (766,205 | ) | $ | 718,332 | |||||||||
Other comprehensive income (loss) | 3,110 | — | (45,790 | ) | — | (42,680 | ) | |||||||||||||
Total comprehensive income | 569,220 | 554,258 | 318,379 | (766,205 | ) | 675,652 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (152,222 | ) | (152,222 | ) | |||||||||||||
Comprehensive income attributable to DaVita Inc. | $ | 569,220 | $ | 554,258 | $ | 318,379 | $ | (918,427 | ) | $ | 523,430 |
For the nine months ended September 30, 2018 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||
Net income | $ | 309,166 | $ | 547,382 | $ | 162,058 | $ | (583,723 | ) | $ | 434,883 | |||||||||
Other comprehensive income (loss) | 5,499 | — | (39,475 | ) | — | (33,976 | ) | |||||||||||||
Total comprehensive income | 314,665 | 547,382 | 122,583 | (583,723 | ) | 400,907 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (125,717 | ) | (125,717 | ) | |||||||||||||
Comprehensive income attributable to DaVita Inc. | $ | 314,665 | $ | 547,382 | $ | 122,583 | $ | (709,440 | ) | $ | 275,190 |
Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||
For the nine months ended September 30, 2018 | DaVita Inc. | |||||||||||||||||||
Net income | $ | 309,166 | $ | 255,681 | $ | 431,540 | $ | (561,504 | ) | $ | 434,883 | |||||||||
Other comprehensive income (loss) | 5,499 | — | (39,475 | ) | — | (33,976 | ) | |||||||||||||
Total comprehensive income | 314,665 | 255,681 | 392,065 | (561,504 | ) | 400,907 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (125,717 | ) | (125,717 | ) | |||||||||||||
Comprehensive income attributable to DaVita Inc. | $ | 314,665 | $ | 255,681 | $ | 392,065 | $ | (687,221 | ) | $ | 275,190 |
Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||
For the nine months ended September 30, 2017 | DaVita Inc. | |||||||||||||||||||
Net income | $ | 360,222 | $ | 240,548 | $ | 466,867 | $ | (577,761 | ) | $ | 489,876 | |||||||||
Other comprehensive income | 1,571 | — | 91,546 | — | 93,117 | |||||||||||||||
Total comprehensive income | 361,793 | 240,548 | 558,413 | (577,761 | ) | 582,993 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (129,652 | ) | (129,652 | ) | |||||||||||||
Comprehensive income attributable to DaVita Inc. | $ | 361,793 | $ | 240,548 | $ | 558,413 | $ | (707,413 | ) | $ | 453,341 |
Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||||||||||||||||||||||
As of September 30, 2018 | DaVita Inc. | |||||||||||||||||||||||||||||||||||||||
As of September 30, 2019 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 296,697 | $ | — | $ | 151,518 | $ | — | $ | 448,215 | $ | 831,514 | $ | 213,635 | $ | 208,107 | $ | — | $ | 1,253,256 | ||||||||||||||||||||
Restricted cash and equivalents | 1,004 | 11,985 | 78,951 | — | 91,940 | — | 14,444 | 89,441 | — | 103,885 | ||||||||||||||||||||||||||||||
Accounts receivable, net | — | 1,241,147 | 605,939 | — | 1,847,086 | — | 1,221,169 | 680,056 | — | 1,901,225 | ||||||||||||||||||||||||||||||
Other current assets | 37,185 | 467,669 | 89,620 | — | 594,474 | 161,548 | 455,616 | 123,188 | — | 740,352 | ||||||||||||||||||||||||||||||
Current assets held for sale, net | — | 4,999,748 | 948,038 | — | 5,947,786 | |||||||||||||||||||||||||||||||||||
Total current assets | 334,886 | 6,720,549 | 1,874,066 | — | 8,929,501 | 993,062 | 1,904,864 | 1,100,792 | — | 3,998,718 | ||||||||||||||||||||||||||||||
Property and equipment, net | 466,162 | 1,563,552 | 1,245,922 | — | 3,275,636 | 515,952 | 1,576,140 | 1,327,146 | — | 3,419,238 | ||||||||||||||||||||||||||||||
Operating lease right-of-use assets | 103,621 | 1,592,472 | 1,085,195 | — | 2,781,288 | |||||||||||||||||||||||||||||||||||
Intangible assets, net | 176 | 43,704 | 53,729 | — | 97,609 | 85 | 34,493 | 83,088 | — | 117,666 | ||||||||||||||||||||||||||||||
Investments in subsidiaries | 10,071,347 | 3,164,083 | — | (13,235,430 | ) | — | ||||||||||||||||||||||||||||||||||
Intercompany receivables | 3,496,240 | — | 1,478,557 | (4,974,797 | ) | — | ||||||||||||||||||||||||||||||||||
Investments in and advances to affiliates, net | 10,465,104 | 7,110,581 | 3,074,784 | (20,650,469 | ) | — | ||||||||||||||||||||||||||||||||||
Other long-term assets and investments | 54,853 | 86,821 | 210,710 | — | 352,384 | 96,953 | 91,115 | 181,193 | — | 369,261 | ||||||||||||||||||||||||||||||
Goodwill | — | 4,778,542 | 1,924,117 | — | 6,702,659 | — | 4,818,001 | 1,947,658 | — | 6,765,659 | ||||||||||||||||||||||||||||||
Total assets | $ | 14,423,664 | $ | 16,357,251 | $ | 6,787,101 | $ | (18,210,227 | ) | $ | 19,357,789 | $ | 12,174,777 | $ | 17,127,666 | $ | 8,799,856 | $ | (20,650,469 | ) | $ | 17,451,830 | ||||||||||||||||||
Current liabilities | $ | 1,815,234 | $ | 1,149,518 | $ | 470,731 | $ | — | $ | 3,435,483 | $ | 313,934 | $ | 1,233,054 | $ | 659,652 | $ | — | $ | 2,206,640 | ||||||||||||||||||||
Current liabilities held for sale | — | 892,548 | 527,073 | — | 1,419,621 | |||||||||||||||||||||||||||||||||||
Intercompany payables | — | 3,485,322 | 1,489,475 | (4,974,797 | ) | — | ||||||||||||||||||||||||||||||||||
Intercompany liabilities, net | 922,571 | 3,074,785 | 2,572,810 | (6,570,166 | ) | — | ||||||||||||||||||||||||||||||||||
Long-term operating leases liabilities | 131,743 | 1,508,343 | 1,042,039 | — | 2,682,125 | |||||||||||||||||||||||||||||||||||
Long-term debt and other long-term liabilities | 8,186,683 | 758,516 | 463,812 | — | 9,409,011 | 7,746,653 | 664,470 | 343,360 | — | 8,754,483 | ||||||||||||||||||||||||||||||
Noncontrolling interests subject to put provisions | 597,098 | — | — | 467,314 | 1,064,412 | 741,300 | — | — | 554,759 | 1,296,059 | ||||||||||||||||||||||||||||||
Total DaVita Inc. shareholders' equity | 3,824,649 | 10,071,347 | 3,164,083 | (13,235,430 | ) | 3,824,649 | 2,318,576 | 10,647,014 | 3,433,289 | (14,080,303 | ) | 2,318,576 | ||||||||||||||||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 671,927 | (467,314 | ) | 204,613 | — | — | 748,706 | (554,759 | ) | 193,947 | ||||||||||||||||||||||||||||
Total equity | 3,824,649 | 10,071,347 | 3,836,010 | (13,702,744 | ) | 4,029,262 | 2,318,576 | 10,647,014 | 4,181,995 | (14,635,062 | ) | 2,512,523 | ||||||||||||||||||||||||||||
Total liabilities and equity | $ | 14,423,664 | $ | 16,357,251 | $ | 6,787,101 | $ | (18,210,227 | ) | $ | 19,357,789 | $ | 12,174,777 | $ | 17,127,666 | $ | 8,799,856 | $ | (20,650,469 | ) | $ | 17,451,830 |
Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||||||||||||||||||||||
As of December 31, 2017 | DaVita Inc. | |||||||||||||||||||||||||||||||||||||||
As of December 31, 2018 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 149,305 | $ | — | $ | 358,929 | $ | — | $ | 508,234 | $ | 60,653 | $ | 1,232 | $ | 261,153 | $ | — | $ | 323,038 | ||||||||||||||||||||
Restricted cash and equivalents | 1,002 | 9,384 | 300 | — | 10,686 | 1,005 | 12,048 | 79,329 | — | 92,382 | ||||||||||||||||||||||||||||||
Accounts receivable, net | — | 1,208,715 | 506,035 | — | 1,714,750 | — | 1,204,122 | 654,486 | — | 1,858,608 | ||||||||||||||||||||||||||||||
Other current assets | 67,025 | 595,066 | 86,955 | — | 749,046 | 37,185 | 565,974 | 157,407 | — | 760,566 | ||||||||||||||||||||||||||||||
Current assets held for sale | — | 4,992,067 | 769,575 | — | 5,761,642 | — | — | 5,389,565 | — | 5,389,565 | ||||||||||||||||||||||||||||||
Total current assets | 217,332 | 6,805,232 | 1,721,794 | — | 8,744,358 | 98,843 | 1,783,376 | 6,541,940 | — | 8,424,159 | ||||||||||||||||||||||||||||||
Property and equipment, net | 408,010 | 1,560,390 | 1,180,813 | — | 3,149,213 | 491,462 | 1,584,321 | 1,317,886 | — | 3,393,669 | ||||||||||||||||||||||||||||||
Intangible assets, net | 250 | 50,971 | 62,606 | — | 113,827 | 153 | 42,896 | 75,797 | — | 118,846 | ||||||||||||||||||||||||||||||
Investments in subsidiaries | 10,009,874 | 3,085,722 | — | (13,095,596 | ) | — | ||||||||||||||||||||||||||||||||||
Intercompany receivables | 3,677,947 | — | 1,313,213 | (4,991,160 | ) | — | ||||||||||||||||||||||||||||||||||
Investments in and advances to affiliates, net | 13,522,198 | 6,196,801 | 2,498,545 | (22,217,544 | ) | — | ||||||||||||||||||||||||||||||||||
Other long-term assets and investments | 47,297 | 68,344 | 214,875 | — | 330,516 | 53,385 | 90,037 | 188,196 | — | 331,618 | ||||||||||||||||||||||||||||||
Goodwill | — | 4,732,320 | 1,877,959 | — | 6,610,279 | — | 4,806,939 | 2,035,021 | — | 6,841,960 | ||||||||||||||||||||||||||||||
Total assets | $ | 14,360,710 | $ | 16,302,979 | $ | 6,371,260 | $ | (18,086,756 | ) | $ | 18,948,193 | $ | 14,166,041 | $ | 14,504,370 | $ | 12,657,385 | $ | (22,217,544 | ) | $ | 19,110,252 | ||||||||||||||||||
Current liabilities | $ | 238,706 | $ | 1,181,139 | $ | 436,262 | $ | — | $ | 1,856,107 | $ | 1,945,943 | $ | 1,217,526 | $ | 483,933 | $ | — | $ | 3,647,402 | ||||||||||||||||||||
Current liabilities held for sale | — | 739,294 | 445,776 | — | 1,185,070 | — | — | 1,243,759 | — | 1,243,759 | ||||||||||||||||||||||||||||||
Intercompany payables | — | 3,690,042 | 1,301,118 | (4,991,160 | ) | — | ||||||||||||||||||||||||||||||||||
Intercompany liabilities, net | — | 2,498,545 | 6,161,292 | (8,659,837 | ) | — | ||||||||||||||||||||||||||||||||||
Long-term debt and other long-term liabilities | 8,857,373 | 682,630 | 469,587 | — | 10,009,590 | 7,918,581 | 687,443 | 580,028 | — | 9,186,052 | ||||||||||||||||||||||||||||||
Noncontrolling interests subject to put provisions | 574,602 | — | — | 436,758 | 1,011,360 | 598,075 | — | — | 526,566 | 1,124,641 | ||||||||||||||||||||||||||||||
Total DaVita Inc. shareholders' equity | 4,690,029 | 10,009,874 | 3,085,722 | (13,095,596 | ) | 4,690,029 | 3,703,442 | 10,100,856 | 3,456,851 | (13,557,707 | ) | 3,703,442 | ||||||||||||||||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 632,795 | (436,758 | ) | 196,037 | — | — | 731,522 | (526,566 | ) | 204,956 | ||||||||||||||||||||||||||||
Total equity | 4,690,029 | 10,009,874 | 3,718,517 | (13,532,354 | ) | 4,886,066 | 3,703,442 | 10,100,856 | 4,188,373 | (14,084,273 | ) | 3,908,398 | ||||||||||||||||||||||||||||
Total liabilities and equity | $ | 14,360,710 | $ | 16,302,979 | $ | 6,371,260 | $ | (18,086,756 | ) | $ | 18,948,193 | $ | 14,166,041 | $ | 14,504,370 | $ | 12,657,385 | $ | (22,217,544 | ) | $ | 19,110,252 |
Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2018 | DaVita Inc. | |||||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2019 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||||||||||||||||||||
Cash flows provided by operating activities: | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 309,166 | $ | 255,681 | $ | 431,540 | $ | (561,504 | ) | $ | 434,883 | $ | 566,110 | $ | 554,258 | $ | 364,169 | $ | (766,205 | ) | $ | 718,332 | ||||||||||||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (235,558 | ) | 469,008 | 152,411 | 561,504 | 947,365 | (336,223 | ) | (74,600 | ) | 318,111 | 766,205 | 673,493 | |||||||||||||||||||||||||||
Net cash provided by operating activities | 73,608 | 724,689 | 583,951 | — | 1,382,248 | 229,887 | 479,658 | 682,280 | — | 1,391,825 | ||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Cash flows provided by (used in) investing activities: | ||||||||||||||||||||||||||||||||||||||||
Additions of property and equipment | (124,585 | ) | (385,765 | ) | (195,309 | ) | — | (705,659 | ) | (106,476 | ) | (218,839 | ) | (221,868 | ) | — | (547,183 | ) | ||||||||||||||||||||||
Acquisitions | — | (18,549 | ) | (94,977 | ) | — | (113,526 | ) | — | (11,832 | ) | (65,516 | ) | — | (77,348 | ) | ||||||||||||||||||||||||
Proceeds from asset and business sales | — | 47,025 | 88,243 | — | 135,268 | |||||||||||||||||||||||||||||||||||
Proceeds (purchases) from investment sales and other items, net | 32,345 | (9,746 | ) | (1 | ) | — | 22,598 | |||||||||||||||||||||||||||||||||
Net cash used in investing activities | (92,240 | ) | (367,035 | ) | (202,044 | ) | — | (661,319 | ) | |||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
Proceeds (purchases) from asset and business sales | 3,824,516 | (244 | ) | 39,347 | — | 3,863,619 | ||||||||||||||||||||||||||||||||||
purchases from investment sales and other items, net | (94,322 | ) | (7,474 | ) | (3,267 | ) | — | (105,063 | ) | |||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 3,623,718 | (238,389 | ) | (251,304 | ) | — | 3,134,025 | |||||||||||||||||||||||||||||||||
Cash flows used in financing activities: | ||||||||||||||||||||||||||||||||||||||||
Long-term debt and related financing costs, net | 866,537 | (9,135 | ) | (11,566 | ) | — | 845,836 | (2,028,954 | ) | (8,025 | ) | (13,033 | ) | — | (2,050,012 | ) | ||||||||||||||||||||||||
Intercompany borrowing (payments) | 454,410 | (217,518 | ) | (236,892 | ) | — | — | |||||||||||||||||||||||||||||||||
Intercompany borrowings (payments) | 785,450 | (14,854 | ) | (770,596 | ) | — | — | |||||||||||||||||||||||||||||||||
Other items | (1,154,921 | ) | (94,281 | ) | (19,973 | ) | — | (1,269,175 | ) | (1,840,245 | ) | (3,591 | ) | (109,916 | ) | — | (1,953,752 | ) | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | 166,026 | (320,934 | ) | (268,431 | ) | — | (423,339 | ) | ||||||||||||||||||||||||||||||||
Net cash used in financing activities | (3,083,749 | ) | (26,470 | ) | (893,545 | ) | — | (4,003,764 | ) | |||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | (5,790 | ) | — | (5,790 | ) | — | — | (4,178 | ) | — | (4,178 | ) | ||||||||||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 147,394 | 36,720 | 107,686 | — | 291,800 | |||||||||||||||||||||||||||||||||||
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations | — | 34,119 | 236,446 | — | 270,565 | |||||||||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 769,856 | 214,799 | (466,747 | ) | — | 517,908 | ||||||||||||||||||||||||||||||||||
Less: Net decrease in cash, cash equivalents and restricted cash from discontinued operations | — | — | (423,813 | ) | — | (423,813 | ) | |||||||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations | 147,394 | 2,601 | (128,760 | ) | — | 21,235 | 769,856 | 214,799 | (42,934 | ) | — | 941,721 | ||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year | 150,307 | 9,384 | 359,229 | — | 518,920 | 61,658 | 13,280 | 340,482 | — | 415,420 | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of the period | $ | 297,701 | $ | 11,985 | $ | 230,469 | $ | — | $ | 540,155 | $ | 831,514 | $ | 228,079 | $ | 297,548 | $ | — | $ | 1,357,141 |
For the nine months ended September 30, 2018 | DaVita Inc. | Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||
Cash flows provided by operating activities: | ||||||||||||||||||||
Net income | $ | 309,166 | $ | 547,382 | $ | 162,058 | $ | (583,723 | ) | $ | 434,883 | |||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (235,558 | ) | (104,179 | ) | 703,379 | 583,723 | 947,365 | |||||||||||||
Net cash provided by operating activities | 73,608 | 443,203 | 865,437 | — | 1,382,248 | |||||||||||||||
Cash flows used in investing activities: | ||||||||||||||||||||
Additions of property and equipment | (124,585 | ) | (296,028 | ) | (285,046 | ) | — | (705,659 | ) | |||||||||||
Acquisitions | — | (5,646 | ) | (107,880 | ) | — | (113,526 | ) | ||||||||||||
Proceeds from asset and business sales | — | 55,035 | 80,233 | — | 135,268 | |||||||||||||||
Proceeds (purchases) from investment sales and other items, net | 32,345 | (2,295 | ) | (7,452 | ) | — | 22,598 | |||||||||||||
Net cash used in investing activities | (92,240 | ) | (248,934 | ) | (320,145 | ) | — | (661,319 | ) | |||||||||||
Cash flows provided by (used in) financing activities: | ||||||||||||||||||||
Long-term debt and related financing costs, net | 866,537 | (8,601 | ) | (12,100 | ) | — | 845,836 | |||||||||||||
Intercompany borrowings (payments) | 454,410 | (174,148 | ) | (280,262 | ) | — | — | |||||||||||||
Other items | (1,154,921 | ) | (18,713 | ) | (95,541 | ) | — | (1,269,175 | ) | |||||||||||
Net cash provided by (used in) financing activities | 166,026 | (201,462 | ) | (387,903 | ) | — | (423,339 | ) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | (5,790 | ) | — | (5,790 | ) | |||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 147,394 | (7,193 | ) | 151,599 | — | 291,800 | ||||||||||||||
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations | — | — | 270,565 | — | 270,565 | |||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations | 147,394 | (7,193 | ) | (118,966 | ) | — | 21,235 | |||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year | 150,307 | 19,963 | 348,650 | — | 518,920 | |||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of the period | $ | 297,701 | $ | 12,770 | $ | 229,684 | $ | — | $ | 540,155 |
Guarantor subsidiaries | Non- Guarantor subsidiaries | Consolidating adjustments | Consolidated total | |||||||||||||||||
For the nine months ended September 30, 2017 | DaVita Inc. | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 360,222 | $ | 240,548 | $ | 466,867 | $ | (577,761 | ) | $ | 489,876 | |||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (282,651 | ) | 585,836 | 197,328 | 577,761 | 1,078,274 | ||||||||||||||
Net cash provided by operating activities | 77,571 | 826,384 | 664,195 | — | 1,568,150 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Additions of property and equipment | (94,385 | ) | (305,261 | ) | (240,183 | ) | — | (639,829 | ) | |||||||||||
Acquisitions | — | (627,324 | ) | (99,214 | ) | — | (726,538 | ) | ||||||||||||
Proceeds from asset and business sales | — | 90,533 | 1,996 | — | 92,529 | |||||||||||||||
Proceeds (purchases) from investment sales and other items, net | 123,894 | (4,788 | ) | 49,183 | — | 168,289 | ||||||||||||||
Net cash provided by (used in) investing activities | 29,509 | (846,840 | ) | (288,218 | ) | — | (1,105,549 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Long-term debt and related financing costs, net | (92,721 | ) | (10,394 | ) | (5,348 | ) | — | (108,463 | ) | |||||||||||
Intercompany borrowing (payments) | 188,977 | (7,968 | ) | (181,009 | ) | — | — | |||||||||||||
Other items | (305,630 | ) | (1,432 | ) | (114,307 | ) | — | (421,369 | ) | |||||||||||
Net cash used in financing activities | (209,374 | ) | (19,794 | ) | (300,664 | ) | — | (529,832 | ) | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | 5,449 | — | 5,449 | |||||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (102,294 | ) | (40,250 | ) | 80,762 | — | (61,782 | ) | ||||||||||||
Less: Net increase (decrease) in cash, cash equivalents and restricted cash from discontinued operations | — | (41,934 | ) | 124,628 | — | 82,694 | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations | (102,294 | ) | 1,684 | (43,866 | ) | — | (144,476 | ) | ||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year | 549,921 | 8,687 | 124,855 | — | 683,463 | |||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of the period | $ | 447,627 | $ | 10,371 | $ | 80,989 | $ | — | $ | 538,987 |
Supplemental data |
Consolidated Total | Physician Groups | Unrestricted Subsidiaries | Company and Restricted Subsidiaries(1) | |||||||||||||||||||||||||||||
For the nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2019 | Consolidated Total | Physician Groups | Unrestricted Subsidiaries | Company and Restricted Subsidiaries(1) | ||||||||||||||||||||||||||||
Patient service operating revenues | $ | 7,980,178 | $ | — | $ | — | $ | 7,980,178 | $ | 8,150,386 | $ | — | $ | — | $ | 8,150,386 | ||||||||||||||||
Provision for uncollectible accounts | (35,838 | ) | — | — | (35,838 | ) | (19,689 | ) | — | — | (19,689 | ) | ||||||||||||||||||||
Net patient service operating revenues | 7,944,340 | — | — | 7,944,340 | 8,130,697 | — | — | 8,130,697 | ||||||||||||||||||||||||
Other revenues | 639,387 | — | — | 639,387 | 359,198 | — | — | 359,198 | ||||||||||||||||||||||||
Total net operating revenues | 8,583,727 | — | — | 8,583,727 | 8,489,895 | — | — | 8,489,895 | ||||||||||||||||||||||||
Operating expenses | 7,445,811 | — | — | 7,445,811 | 7,309,166 | — | — | 7,309,166 | ||||||||||||||||||||||||
Operating income | 1,137,916 | — | — | 1,137,916 | 1,180,729 | — | — | 1,180,729 | ||||||||||||||||||||||||
Debt expense, including refinancing charges | (359,135 | ) | — | — | (359,135 | ) | ||||||||||||||||||||||||||
Debt expense | (385,176 | ) | — | — | (385,176 | ) | ||||||||||||||||||||||||||
Other income | 10,583 | — | — | 10,583 | 17,863 | — | — | 17,863 | ||||||||||||||||||||||||
Income tax expense | 206,652 | — | — | 206,652 | 197,938 | — | — | 197,938 | ||||||||||||||||||||||||
Net income from continuing operations | 582,712 | — | — | 582,712 | 615,478 | — | — | 615,478 | ||||||||||||||||||||||||
Net (loss) income from discontinued operations, net of tax | (147,829 | ) | 20,773 | 298 | (168,900 | ) | ||||||||||||||||||||||||||
Net income from discontinued operations, net of tax | 102,854 | 12,706 | 249 | 89,899 | ||||||||||||||||||||||||||||
Net income | 434,883 | 20,773 | 298 | 413,812 | 718,332 | 12,706 | 249 | 705,377 | ||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | (125,717 | ) | (6,961 | ) | — | (118,756 | ) | (152,222 | ) | (1,255 | ) | — | (150,967 | ) | ||||||||||||||||||
Net income attributable to DaVita Inc. | $ | 309,166 | $ | 13,812 | $ | 298 | $ | 295,056 | $ | 566,110 | $ | 11,451 | $ | 249 | $ | 554,410 |
(1) | After elimination of the unrestricted subsidiaries and the physician groups. |
Consolidated Total | Physician Groups | Unrestricted Subsidiaries | Company and Restricted Subsidiaries(1) | |||||||||||||||||||||||||||||
For the nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2019 | Consolidated Total | Physician Groups | Unrestricted Subsidiaries | Company and Restricted Subsidiaries(1) | ||||||||||||||||||||||||||||
Net income | $ | 434,883 | $ | 20,773 | $ | 298 | $ | 413,812 | $ | 718,332 | $ | 12,706 | $ | 249 | $ | 705,377 | ||||||||||||||||
Other comprehensive loss | (33,976 | ) | — | — | (33,976 | ) | ||||||||||||||||||||||||||
Other comprehensive income | (42,680 | ) | — | — | (42,680 | ) | ||||||||||||||||||||||||||
Total comprehensive income | 400,907 | 20,773 | 298 | 379,836 | 675,652 | 12,706 | 249 | 662,697 | ||||||||||||||||||||||||
Less: Comprehensive income attributable to the noncontrolling interests | (125,717 | ) | (6,961 | ) | — | (118,756 | ) | (152,222 | ) | (1,255 | ) | — | (150,967 | ) | ||||||||||||||||||
Comprehensive income attributable to DaVita Inc. | $ | 275,190 | $ | 13,812 | $ | 298 | $ | 261,080 | $ | 523,430 | $ | 11,451 | $ | 249 | $ | 511,730 |
(1) | After elimination of the unrestricted subsidiaries and the physician groups. |
Consolidated Total | Physician Groups | Unrestricted Subsidiaries | Company and Restricted Subsidiaries(1) | |||||||||||||||||||||||||||||
As of September 30, 2018 | ||||||||||||||||||||||||||||||||
As of September 30, 2019 | Consolidated Total | Physician Groups | Unrestricted Subsidiaries | Company and Restricted Subsidiaries(1) | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 448,215 | $ | — | $ | — | $ | 448,215 | $ | 1,253,256 | $ | — | $ | — | $ | 1,253,256 | ||||||||||||||||
Restricted cash and equivalents | 91,940 | — | — | 91,940 | 103,885 | — | — | 103,885 | ||||||||||||||||||||||||
Accounts receivable, net | 1,847,086 | — | — | 1,847,086 | 1,901,225 | — | — | 1,901,225 | ||||||||||||||||||||||||
Other current assets | 594,474 | — | — | 594,474 | 740,352 | — | — | 740,352 | ||||||||||||||||||||||||
Current assets held for sale, net | 5,947,786 | 567,216 | 3,031 | 5,377,539 | ||||||||||||||||||||||||||||
Total current assets | 8,929,501 | 567,216 | 3,031 | 8,359,254 | 3,998,718 | — | — | 3,998,718 | ||||||||||||||||||||||||
Property and equipment, net | 3,275,636 | — | — | 3,275,636 | 3,419,238 | — | — | 3,419,238 | ||||||||||||||||||||||||
Operating lease right-of-use assets | 2,781,288 | — | — | 2,781,288 | ||||||||||||||||||||||||||||
Amortizable intangibles, net | 97,609 | — | — | 97,609 | 117,666 | — | — | 117,666 | ||||||||||||||||||||||||
Other long-term assets | 352,384 | — | — | 352,384 | 369,261 | — | — | 369,261 | ||||||||||||||||||||||||
Goodwill | 6,702,659 | — | — | 6,702,659 | 6,765,659 | — | — | 6,765,659 | ||||||||||||||||||||||||
Total assets | $ | 19,357,789 | $ | 567,216 | $ | 3,031 | $ | 18,787,542 | $ | 17,451,830 | $ | — | $ | — | $ | 17,451,830 | ||||||||||||||||
Current liabilities | $ | 3,435,483 | $ | — | $ | — | $ | 3,435,483 | $ | 2,206,640 | $ | — | $ | — | $ | 2,206,640 | ||||||||||||||||
Current liabilities held for sale | 1,419,621 | 350,640 | — | 1,068,981 | ||||||||||||||||||||||||||||
Payables to parent | — | 78,496 | 3,031 | (81,527 | ) | |||||||||||||||||||||||||||
Long-term operating leases liabilities | 2,682,125 | — | — | 2,682,125 | ||||||||||||||||||||||||||||
Long-term debt and other long-term liabilities | 9,409,011 | — | — | 9,409,011 | 8,754,483 | — | — | 8,754,483 | ||||||||||||||||||||||||
Noncontrolling interests subject to put provisions | 1,064,412 | — | — | 1,064,412 | 1,296,059 | — | — | 1,296,059 | ||||||||||||||||||||||||
Total DaVita Inc. shareholders’ equity | 3,824,649 | 138,080 | — | 3,686,569 | 2,318,576 | — | — | 2,318,576 | ||||||||||||||||||||||||
Noncontrolling interests not subject to put provisions | 204,613 | — | — | 204,613 | 193,947 | — | — | 193,947 | ||||||||||||||||||||||||
Shareholders’ equity | 4,029,262 | 138,080 | — | 3,891,182 | 2,512,523 | — | — | 2,512,523 | ||||||||||||||||||||||||
Total liabilities and shareholder’s equity | $ | 19,357,789 | $ | 567,216 | $ | 3,031 | $ | 18,787,542 | $ | 17,451,830 | $ | — | $ | — | $ | 17,451,830 |
(1) | After elimination of the unrestricted subsidiaries and the physician groups. |
Consolidated Total | Physician Groups | Unrestricted Subsidiaries | Company and Restricted Subsidiaries(1) | |||||||||||||||||||||||||||||
For the nine months ended September 30, 2018 | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2019 | Consolidated Total | Physician Groups | Unrestricted Subsidiaries | Company and Restricted Subsidiaries(1) | ||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||
Net income | $ | 434,883 | $ | 20,773 | $ | 298 | $ | 413,812 | $ | 718,332 | $ | 12,706 | $ | 249 | $ | 705,377 | ||||||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | 947,365 | 77,229 | (298 | ) | 870,434 | 673,493 | (4,607 | ) | (249 | ) | 678,349 | |||||||||||||||||||||
Net cash provided by operating activities | 1,382,248 | 98,002 | — | 1,284,246 | 1,391,825 | 8,099 | — | 1,383,726 | ||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||
Additions of property and equipment | (705,659 | ) | (2,575 | ) | — | (703,084 | ) | (547,183 | ) | (846 | ) | — | (546,337 | ) | ||||||||||||||||||
Acquisitions | (113,526 | ) | — | — | (113,526 | ) | (77,348 | ) | — | — | (77,348 | ) | ||||||||||||||||||||
Proceeds from asset and business sales | 135,268 | — | — | 135,268 | 3,863,619 | — | — | 3,863,619 | ||||||||||||||||||||||||
Investments and other items | 22,598 | (1 | ) | — | 22,599 | (105,063 | ) | (1,882 | ) | — | (103,181 | ) | ||||||||||||||||||||
Net cash used in investing activities | (661,319 | ) | (2,576 | ) | — | (658,743 | ) | |||||||||||||||||||||||||
Net cash provided by (used in) investing activities | 3,134,025 | (2,728 | ) | — | 3,136,753 | |||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||
Long-term debt | 845,836 | — | — | 845,836 | (2,050,012 | ) | — | — | (2,050,012 | ) | ||||||||||||||||||||||
Intercompany | — | 77,286 | — | (77,286 | ) | — | (247,175 | ) | — | 247,175 | ||||||||||||||||||||||
Other items | (1,269,175 | ) | — | — | (1,269,175 | ) | (1,953,752 | ) | — | — | (1,953,752 | ) | ||||||||||||||||||||
Net cash (used in) provided by financing activities | (423,339 | ) | 77,286 | — | (500,625 | ) | ||||||||||||||||||||||||||
Net cash used in financing activities | (4,003,764 | ) | (247,175 | ) | — | (3,756,589 | ) | |||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5,790 | ) | — | — | (5,790 | ) | (4,178 | ) | — | — | (4,178 | ) | ||||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 291,800 | 172,712 | — | 119,088 | ||||||||||||||||||||||||||||
Less: Net increase in cash, cash equivalents and restricted cash from discontinued operations | 270,565 | 172,712 | — | 97,853 | ||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 517,908 | (241,804 | ) | — | 759,712 | |||||||||||||||||||||||||||
Less: Net decrease in cash, cash equivalents and restricted cash from discontinued operations | (423,813 | ) | (241,804 | ) | — | (182,009 | ) | |||||||||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash from continuing operations | 21,235 | — | — | 21,235 | 941,721 | — | — | 941,721 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year | 518,920 | — | — | 518,920 | 415,420 | — | — | 415,420 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash of continuing operations at end of the period | $ | 540,155 | $ | — | $ | — | $ | 540,155 | $ | 1,357,141 | $ | — | $ | — | $ | 1,357,141 |
(1) | After elimination of the unrestricted subsidiaries and the physician groups. |
Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dialysis and related lab patient service revenues | $ | 2,671 | $ | 2,718 | $ | 2,562 | $ | 7,980 | $ | 7,479 | $ | 2,781 | $ | 2,734 | $ | 2,671 | $ | 8,150 | $ | 7,980 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for uncollectible accounts | (12 | ) | (49 | ) | (119 | ) | (36 | ) | (336 | ) | (4 | ) | (10 | ) | (12 | ) | (20 | ) | (36 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net dialysis and related lab patient service revenues | 2,659 | 2,669 | 2,442 | 7,944 | 7,143 | 2,777 | 2,724 | 2,659 | 8,131 | 7,944 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | 189 | 218 | 323 | 639 | 953 | 127 | 119 | 189 | 359 | 639 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consolidated revenues | 2,847 | 100 | % | 2,887 | 100 | % | 2,765 | 100 | % | 8,584 | 100 | % | 8,096 | 100 | % | 2,904 | 100 | % | 2,843 | 100 | % | 2,847 | 100 | % | 8,490 | 100 | % | 8,584 | 100 | % | ||||||||||||||||||||||||||||||||||||||
Operating expenses and charges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Patient care costs | 2,064 | 72 | % | 2,069 | 72 | % | 1,952 | 71 | % | 6,168 | 72 | % | 5,698 | 70 | % | 1,991 | 69 | % | 1,958 | 69 | % | 2,064 | 72 | % | 5,914 | 70 | % | 6,168 | 72 | % | ||||||||||||||||||||||||||||||||||||||
General and administrative | 336 | 12 | % | 264 | 9 | % | 273 | 10 | % | 867 | 10 | % | 799 | 10 | % | 299 | 10 | % | 275 | 10 | % | 336 | 12 | % | 825 | 10 | % | 867 | 10 | % | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 146 | 5 | % | 147 | 5 | % | 143 | 5 | % | 436 | 5 | % | 416 | 5 | % | 156 | 5 | % | 152 | 5 | % | 146 | 5 | % | 457 | 5 | % | 436 | 5 | % | ||||||||||||||||||||||||||||||||||||||
Equity investment loss (income) | 4 | — | % | (10 | ) | — | % | 5 | — | % | (6 | ) | — | % | 5 | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Equity investment (income) loss | (4 | ) | — | % | (5 | ) | — | 4 | — | % | (11 | ) | — | % | (6 | ) | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for uncollectible accounts | 1 | — | % | (2 | ) | — | % | (3 | ) | — | % | (7 | ) | — | % | (1 | ) | — | % | — | — | % | — | — | 1 | — | % | — | — | % | (7 | ) | — | % | ||||||||||||||||||||||||||||||||||
Investment and other asset impairments | 6 | — | % | 11 | — | % | — | — | % | 17 | — | % | 15 | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of other assets | — | — | % | — | — | % | 6 | — | % | — | — | % | 17 | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment charges | — | — | % | 3 | — | % | — | — | % | 3 | — | % | 35 | — | % | 84 | 3 | % | — | — | % | — | — | % | 125 | 1 | % | 3 | — | % | ||||||||||||||||||||||||||||||||||||||
Loss (gain) on changes in ownership interests, net | 2 | — | % | (34 | ) | (1 | )% | — | — | % | (32 | ) | — | % | (6 | ) | — | % | — | — | % | — | — | % | 2 | — | % | — | — | % | (32 | ) | — | % | ||||||||||||||||||||||||||||||||||
Gain on settlement, net | — | — | % | — | — | % | — | — | % | — | — | % | (527 | ) | (7 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses and charges | 2,558 | 90 | % | 2,449 | 85 | % | 2,370 | 86 | % | 7,446 | 87 | % | 6,433 | 79 | % | 2,526 | 87 | % | 2,381 | 84 | % | 2,558 | 90 | % | 7,309 | 86 | % | 7,446 | 87 | % | ||||||||||||||||||||||||||||||||||||||
Operating income | $ | 289 | 10 | % | $ | 438 | 15 | % | $ | 395 | 14 | % | $ | 1,138 | 13 | % | $ | 1,662 | 21 | % | $ | 378 | 13 | % | $ | 462 | 16 | % | $ | 289 | 10 | % | $ | 1,181 | 14 | % | $ | 1,138 | 13 | % |
Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | |||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
U.S. dialysis and related lab services patient service revenues | $ | 2,585 | $ | 2,633 | $ | 2,484 | $ | 7,725 | $ | 7,286 | $ | 2,685 | $ | 2,642 | $ | 2,585 | $ | 7,875 | $ | 7,725 | ||||||||||||||||||
Provision for uncollectible accounts | (13 | ) | (49 | ) | (118 | ) | (37 | ) | (334 | ) | (4 | ) | (10 | ) | (13 | ) | (20 | ) | (37 | ) | ||||||||||||||||||
U.S. dialysis and related lab services net patient service revenues | 2,572 | 2,583 | 2,366 | 7,688 | 6,952 | 2,681 | 2,632 | 2,572 | 7,855 | 7,688 | ||||||||||||||||||||||||||||
Other revenues | 5 | 5 | 5 | 15 | 15 | 10 | 6 | 5 | 21 | 15 | ||||||||||||||||||||||||||||
Total U.S. dialysis and related lab services revenues | 2,577 | 2,588 | 2,370 | 7,703 | 6,967 | |||||||||||||||||||||||||||||||||
Total net U.S. dialysis and related lab services revenues | 2,691 | 2,637 | 2,577 | 7,876 | 7,703 | |||||||||||||||||||||||||||||||||
Other—Ancillary services and strategic initiatives other revenues | 192 | 222 | 324 | 652 | 956 | 120 | 117 | 192 | 349 | 652 | ||||||||||||||||||||||||||||
Other—Ancillary services and strategic initiatives patient service revenues, net | 112 | 106 | 90 | 320 | 230 | 128 | 122 | 112 | 368 | 320 | ||||||||||||||||||||||||||||
Total other—ancillary services and strategic initiatives revenues | 304 | 328 | 414 | 972 | 1,186 | |||||||||||||||||||||||||||||||||
Total net other—ancillary services and strategic initiatives revenues | 248 | 239 | 304 | 717 | 972 | |||||||||||||||||||||||||||||||||
Elimination of intersegment revenues | (34 | ) | (29 | ) | (19 | ) | (92 | ) | (57 | ) | (36 | ) | (34 | ) | (34 | ) | (104 | ) | (92 | ) | ||||||||||||||||||
Consolidated revenues | $ | 2,847 | $ | 2,887 | $ | 2,765 | $ | 8,584 | $ | 8,096 | $ | 2,904 | $ | 2,843 | $ | 2,847 | $ | 8,490 | $ | 8,584 |
Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | |||||||||||||||||||||||||||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||||||||||||||
U.S. dialysis and related lab services | $ | 390 | $ | 449 | $ | 443 | $ | 1,273 | $ | 1,838 | $ | 501 | $ | 499 | $ | 390 | $ | 1,417 | $ | 1,273 | ||||||||||||||||||
Other—Ancillary services and strategic initiatives | (60 | ) | 3 | (37 | ) | (64 | ) | (143 | ) | (98 | ) | (15 | ) | (60 | ) | (170 | ) | (64 | ) | |||||||||||||||||||
Corporate administrative support | (41 | ) | (14 | ) | (11 | ) | (71 | ) | (33 | ) | (25 | ) | (22 | ) | (41 | ) | (66 | ) | (71 | ) | ||||||||||||||||||
Total consolidated operating income | $ | 289 | $ | 438 | $ | 395 | $ | 1,138 | $ | 1,662 | $ | 378 | $ | 462 | $ | 289 | $ | 1,181 | $ | 1,138 | ||||||||||||||||||
Reconciliation of non-GAAP measures: | ||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Goodwill impairment charges | $ | — | $ | 3 | $ | — | $ | 3 | $ | 35 | $ | 84 | $ | — | $ | — | $ | 125 | $ | 3 | ||||||||||||||||||
Equity investment loss related to APAC JV goodwill impairment | 6 | — | 6 | 6 | 6 | |||||||||||||||||||||||||||||||||
Impairment of assets | 6 | 11 | — | 17 | 15 | — | — | 6 | — | 17 | ||||||||||||||||||||||||||||
Restructuring charges | 11 | — | 3 | 11 | 3 | — | — | 11 | — | 11 | ||||||||||||||||||||||||||||
Gain on settlement, net | — | — | — | — | (527 | ) | ||||||||||||||||||||||||||||||||
Equity investment income related to gain on settlement | — | — | — | — | (3 | ) | ||||||||||||||||||||||||||||||||
Loss (gain) on changes in ownership interests, net | 2 | (34 | ) | — | (32 | ) | (6 | ) | — | — | 2 | — | (32 | ) | ||||||||||||||||||||||||
Equity investment loss: | ||||||||||||||||||||||||||||||||||||||
Loss due to impairments in APAC JV | — | — | 6 | — | 6 | |||||||||||||||||||||||||||||||||
Adjusted consolidated operating income(1) | $ | 314 | $ | 419 | $ | 404 | $ | 1,143 | $ | 1,185 | $ | 462 | $ | 462 | $ | 314 | $ | 1,306 | $ | 1,143 |
(1) | For the periods presented in the table above adjusted operating income is defined as operating income before certain items which we do not believe are indicative of ordinary results, including |
Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||
(dollars in millions, except per treatment data) | (dollars in millions, except per treatment data) | |||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
U.S. dialysis and related lab services patient service revenues | $ | 2,585 | $ | 2,633 | $ | 2,484 | $ | 7,725 | $ | 7,286 | $ | 2,685 | $ | 2,642 | $ | 2,585 | $ | 7,875 | $ | 7,725 | ||||||||||||||||||
Provision for uncollectible accounts | (13 | ) | (49 | ) | (118 | ) | (37 | ) | (334 | ) | (4 | ) | (10 | ) | (13 | ) | (20 | ) | (37 | ) | ||||||||||||||||||
U.S. dialysis and related lab services net patient service revenues | 2,572 | 2,583 | 2,366 | 7,688 | 6,952 | 2,681 | 2,632 | 2,572 | 7,855 | 7,688 | ||||||||||||||||||||||||||||
Other revenues | 5 | 5 | 5 | 15 | 15 | 10 | 6 | 5 | 21 | 15 | ||||||||||||||||||||||||||||
Total U.S. dialysis and related lab services revenues | 2,577 | 2,588 | 2,370 | 7,703 | 6,967 | 2,691 | 2,637 | 2,577 | 7,876 | 7,703 | ||||||||||||||||||||||||||||
Operating expenses and charges: | ||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Patient care costs | 1,819 | 1,810 | 1,607 | 5,408 | 4,715 | 1,813 | 1,785 | 1,819 | 5,396 | 5,408 | ||||||||||||||||||||||||||||
General and administrative | 233 | 196 | 197 | 626 | 574 | 235 | 216 | 233 | 648 | 626 | ||||||||||||||||||||||||||||
Depreciation and amortization | 139 | 138 | 132 | 412 | 387 | 148 | 145 | 139 | 433 | 412 | ||||||||||||||||||||||||||||
Equity investment income | (4 | ) | (6 | ) | (8 | ) | (15 | ) | (20 | ) | (5 | ) | (7 | ) | (4 | ) | (17 | ) | (15 | ) | ||||||||||||||||||
Gain on settlement, net | — | — | — | — | (527 | ) | ||||||||||||||||||||||||||||||||
Total operating expenses and charges | 2,187 | 2,139 | 1,928 | 6,430 | 5,129 | |||||||||||||||||||||||||||||||||
Total operating expenses | 2,191 | 2,139 | 2,187 | 6,459 | 6,430 | |||||||||||||||||||||||||||||||||
Operating income | $ | 390 | $ | 449 | $ | 443 | $ | 1,273 | $ | 1,838 | $ | 501 | $ | 499 | $ | 390 | $ | 1,417 | $ | 1,273 | ||||||||||||||||||
Reconciliation of non-GAAP measures: | ||||||||||||||||||||||||||||||||||||||
Gain on settlement, net | — | — | — | — | (527 | ) | ||||||||||||||||||||||||||||||||
Equity investment income related to gain on settlement | — | — | — | — | (3 | ) | ||||||||||||||||||||||||||||||||
Adjusted operating income(2) | $ | 390 | $ | 449 | $ | 443 | $ | 1,273 | $ | 1,308 | ||||||||||||||||||||||||||||
Dialysis treatments | 7,377,277 | 7,331,590 | 7,186,280 | 21,882,892 | 21,026,558 | 7,673,191 | 7,520,587 | 7,377,277 | 22,491,237 | 21,882,892 | ||||||||||||||||||||||||||||
Average dialysis treatments per treatment day | 94,580 | 93,995 | 90,966 | 93,717 | 89,857 | 97,129 | 96,418 | 94,580 | 96,281 | 93,717 | ||||||||||||||||||||||||||||
Average dialysis and related lab services net revenue per treatment | $ | 348.62 | $ | 352.37 | $ | 329.19 | $ | 351.33 | $ | 330.63 | $ | 349.41 | $ | 349.97 | $ | 348.62 | $ | 349.26 | $ | 351.33 |
Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | September 30, 2019 | June 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | |||||||||||||||||||||||||||||||||||||
U.S. revenues: | ||||||||||||||||||||||||||||||||||||||
Other revenues | $ | 191 | $ | 221 | $ | 323 | $ | 649 | $ | 952 | $ | 118 | $ | 114 | $ | 191 | $ | 341 | $ | 649 | ||||||||||||||||||
Total | 191 | 221 | 323 | 649 | 952 | 118 | 114 | 191 | 341 | 649 | ||||||||||||||||||||||||||||
International revenues: | ||||||||||||||||||||||||||||||||||||||
Dialysis patient service revenues | 112 | 106 | 90 | 320 | 230 | 128 | 122 | 112 | 368 | 320 | ||||||||||||||||||||||||||||
Other revenues | 1 | 1 | 1 | 3 | 4 | 2 | 3 | 1 | 8 | 3 | ||||||||||||||||||||||||||||
Total | 113 | 107 | 91 | 324 | 233 | 131 | 125 | 113 | 376 | 324 | ||||||||||||||||||||||||||||
Total net revenues | $ | 304 | $ | 328 | $ | 414 | $ | 972 | $ | 1,186 | $ | 248 | $ | 239 | $ | 304 | $ | 717 | $ | 972 | ||||||||||||||||||
Operating expenses and charges: | ||||||||||||||||||||||||||||||||||||||
Operating and other general expenses | $ | 357 | $ | 345 | $ | 451 | $ | 1,049 | $ | 1,285 | $ | 262 | $ | 254 | $ | 357 | $ | 763 | $ | 1,049 | ||||||||||||||||||
Goodwill impairment | — | 3 | — | 3 | 35 | |||||||||||||||||||||||||||||||||
Goodwill impairment charges | 84 | — | — | 125 | 3 | |||||||||||||||||||||||||||||||||
Impairment of other assets | 6 | 11 | — | 17 | 15 | — | — | 6 | — | 17 | ||||||||||||||||||||||||||||
Loss (gain) on changes in ownership interests | 2 | (34 | ) | — | (32 | ) | (6 | ) | ||||||||||||||||||||||||||||||
Loss (gain) on changes in ownership interests, net | — | — | 2 | — | (32 | ) | ||||||||||||||||||||||||||||||||
Total operating expenses and charges | 364 | 325 | 451 | 1,037 | 1,329 | 346 | 254 | 364 | 888 | 1,037 | ||||||||||||||||||||||||||||
Total ancillary services and strategic initiatives operating (loss) income | $ | (60 | ) | $ | 3 | $ | (37 | ) | $ | (64 | ) | $ | (143 | ) | ||||||||||||||||||||||||
Total ancillary services and strategic initiatives operating loss | $ | (98 | ) | $ | (15 | ) | $ | (60 | ) | $ | (170 | ) | $ | (64 | ) | |||||||||||||||||||||||
U.S. operating (loss) income | $ | (50 | ) | $ | 4 | $ | (19 | ) | $ | (51 | ) | $ | (108 | ) | ||||||||||||||||||||||||
Reconciliation of non-GAAP: | ||||||||||||||||||||||||||||||||||||||
Goodwill impairment charges | — | — | — | — | 35 | |||||||||||||||||||||||||||||||||
U.S. operating loss | $ | (15 | ) | $ | (16 | ) | $ | (50 | ) | $ | (45 | ) | $ | (51 | ) | |||||||||||||||||||||||
Impairment of other assets | 6 | 11 | — | 17 | 15 | — | — | 6 | — | 17 | ||||||||||||||||||||||||||||
Restructuring charges | 11 | — | — | 11 | — | — | — | 11 | — | 11 | ||||||||||||||||||||||||||||
Loss (gain) on changes in ownership interests, net | 2 | (35 | ) | — | (34 | ) | — | — | — | 2 | — | (34 | ) | |||||||||||||||||||||||||
Adjusted operating loss(2) | $ | (31 | ) | $ | (20 | ) | $ | (19 | ) | $ | (56 | ) | $ | (58 | ) | |||||||||||||||||||||||
Adjusted operating loss(1) | $ | (15 | ) | $ | (16 | ) | $ | (31 | ) | $ | (45 | ) | $ | (56 | ) | |||||||||||||||||||||||
International operating loss | $ | (10 | ) | $ | (1 | ) | $ | (17 | ) | $ | (13 | ) | $ | (35 | ) | |||||||||||||||||||||||
International operating (loss) income | $ | (83 | ) | $ | 1 | $ | (10 | ) | $ | (125 | ) | $ | (13 | ) | ||||||||||||||||||||||||
Reconciliation of non-GAAP: | ||||||||||||||||||||||||||||||||||||||
Goodwill impairment charge | — | 3 | — | 3 | — | |||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Goodwill impairment charges | 84 | — | — | 125 | 3 | |||||||||||||||||||||||||||||||||
Loss on changes in ownership interests, net | — | — | — | — | 1 | |||||||||||||||||||||||||||||||||
Equity investment loss: | ||||||||||||||||||||||||||||||||||||||
Equity investment loss related to APAC JV goodwill impairment | 6 | — | 6 | 6 | 6 | — | — | 6 | — | 6 | ||||||||||||||||||||||||||||
Restructuring charges | — | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||
Equity investment loss related to restructuring charges | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||
Loss (gain) on changes in ownership interests, net | — | 1 | — | 1 | (6 | ) | ||||||||||||||||||||||||||||||||
Adjusted operating (loss) income (2) | $ | (4 | ) | $ | 3 | $ | (8 | ) | $ | (3 | ) | $ | (32 | ) | ||||||||||||||||||||||||
Total adjusted ancillary services and strategic initiatives operating loss(2) | $ | (35 | ) | $ | (17 | ) | $ | (28 | ) | $ | (59 | ) | $ | (90 | ) | |||||||||||||||||||||||
Adjusted operating income (loss)(1) | $ | 1 | $ | 1 | $ | (4 | ) | $ | — | $ | (3 | ) | ||||||||||||||||||||||||||
Total adjusted ancillary services and strategic initiatives operating loss(1) | $ | (14 | ) | $ | (15 | ) | $ | (35 | ) | $ | (46 | ) | $ | (59 | ) |
(1) |
For the periods presented in the table above, adjusted operating loss is defined as operating loss before certain items which we do not believe are indicative of ordinary results, including the effect of |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||
(dollars in millions) | |||||||||||||||
Net cash provided by operating activities: | |||||||||||||||
Net income | $ | 202 | $ | (97 | ) | $ | 718 | $ | 435 | ||||||
Non-cash items | 305 | 466 | 788 | 832 | |||||||||||
Working capital | 141 | 88 | (89 | ) | 108 | ||||||||||
Other | (7 | ) | — | (25 | ) | 8 | |||||||||
$ | 641 | $ | 458 | $ | 1,392 | $ | 1,382 | ||||||||
Net cash (used in) provided by investing activities: | |||||||||||||||
Capital expenditures: | |||||||||||||||
Routine maintenance/IT/other | $ | (84 | ) | $ | (101 | ) | $ | (245 | ) | $ | (316 | ) | |||
Development and relocations | (90 | ) | (131 | ) | (302 | ) | (390 | ) | |||||||
Acquisition expenditures | (11 | ) | (24 | ) | (77 | ) | (114 | ) | |||||||
Proceeds from sale of self-developed properties | 12 | 7 | 38 | 33 | |||||||||||
DMG sale net proceeds received at closing, net of DMG cash divested | — | — | 3,825 | — | |||||||||||
Other | (96 | ) | 12 | (105 | ) | 126 | |||||||||
$ | (269 | ) | $ | (237 | ) | $ | 3,134 | $ | (661 | ) | |||||
Net cash used in financing activities: | |||||||||||||||
Debt (payments) issuances, net | $ | (886 | ) | $ | 274 | $ | (2,050 | ) | $ | 846 | |||||
Distributions to noncontrolling interest | (61 | ) | (46 | ) | (157 | ) | (140 | ) | |||||||
Contributions from noncontrolling interest | 13 | 12 | 44 | 43 | |||||||||||
Other | 5 | (1 | ) | (4 | ) | (10 | ) | ||||||||
Share repurchases | (1,764 | ) | (356 | ) | (1,837 | ) | (1,162 | ) | |||||||
$ | (2,693 | ) | $ | (117 | ) | $ | (4,004 | ) | $ | (423 | ) | ||||
Total number of shares repurchased | 30,591,750 | 4,849,051 | 32,651,726 | 16,844,067 |
U.S. Dialysis Centers | International Dialysis Centers | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Centers at beginning of period | 2,723 | 2,580 | 2,664 | 2,510 | 248 | 253 | 241 | 237 | ||||||||||||||||
Acquired | 2 | 3 | 7 | 5 | 2 | — | 9 | 18 | ||||||||||||||||
Developed | 24 | 47 | 84 | 118 | 1 | — | 1 | 1 | ||||||||||||||||
Managed and administrative, net(1) | — | — | (1 | ) | — | — | — | — | — | |||||||||||||||
Sold and closed(2) | (3 | ) | (1 | ) | (6 | ) | (2 | ) | (1 | ) | — | (1 | ) | (2 | ) | |||||||||
Closed(3) | (10 | ) | (4 | ) | (12 | ) | (6 | ) | — | — | — | — | ||||||||||||
APAC JV operated, net | (1 | ) | (2 | ) | (1 | ) | (3 | ) | ||||||||||||||||
Number of centers at end of period | 2,736 | 2,625 | 2,736 | 2,625 | 249 | 251 | 249 | 251 |
(1) | Represents dialysis centers that we manage or provide administrative services for 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. |
Three months ended September 30, 2019 | Nine months ended September 30, 2019 | ||||||||||||||||||||
Shares repurchased | Amount paid (in millions) | Average amount | Shares repurchased | Amount paid (in millions) | Average amount | ||||||||||||||||
Tender Offer(1) | 21,801,975 | $ | 1,234 | $ | 56.60 | 21,801,975 | $ | 1,234 | $ | 56.60 | |||||||||||
Open market repurchases | 8,789,775 | 514 | 58.49 | 10,849,751 | 626 | 57.72 | |||||||||||||||
30,591,750 | $ | 1,748 | $ | 57.14 | 32,651.726 | $ | 1,860 | $ | 56.97 |
(1) | The amount paid for shares repurchased associated with the Company's Tender Offer during the three and nine months ended September 30, 2019 includes the clearing price of $56.50 per share plus related fees and expenses of $2 million. |
Remainder of 2018 | 1-3 years | 4-5 years | After 5 years | Total | |||||||||||||||
Scheduled payments under contractual obligations: | |||||||||||||||||||
Long-term debt | $ | 43 | $ | 5,350 | $ | 1,279 | $ | 3,317 | $ | 9,989 | |||||||||
Interest payments on the senior notes | 38 | 710 | 401 | 202 | 1,351 | ||||||||||||||
Interest payments on Term Loan B(1) | 43 | 417 | — | — | 460 | ||||||||||||||
Interest payments on Term Loan A(2) | 8 | 14 | — | — | 22 | ||||||||||||||
Interest payments on Term Loan A-2(2) | 8 | 16 | — | — | 24 | ||||||||||||||
Kidney Care capital lease obligations | 7 | 66 | 46 | 170 | 289 | ||||||||||||||
Kidney Care operating leases | 122 | 1,360 | 719 | 1,487 | 3,688 | ||||||||||||||
DMG capital lease obligations | 35 | — | — | — | 35 | ||||||||||||||
DMG operating leases | 23 | 237 | 113 | 263 | 636 | ||||||||||||||
$ | 327 | $ | 8,170 | $ | 2,558 | $ | 5,439 | $ | 16,494 | ||||||||||
Potential cash requirements under other commitments: | |||||||||||||||||||
Letters of credit | $ | 37 | $ | — | $ | — | $ | — | $ | 37 | |||||||||
Noncontrolling interests subject to put provisions | 640 | 196 | 115 | 113 | 1,064 | ||||||||||||||
Non-owned and minority owned put provisions | 30 | 307 | — | — | 337 | ||||||||||||||
Operating capital advances | — | 2 | 1 | 2 | 5 | ||||||||||||||
Purchase commitments | 91 | 875 | 251 | — | 1,217 | ||||||||||||||
$ | 798 | $ | 1,380 | $ | 367 | $ | 115 | $ | 2,660 |
Remainder of 2019 | 1-3 years | 4-5 years | After 5 years | Total | |||||||||||||||
Potential cash requirements under other commitments: | |||||||||||||||||||
Letters of credit | $ | 73 | $ | — | $ | — | $ | — | $ | 73 | |||||||||
Noncontrolling interests subject to put provisions | 875 | 196 | 106 | 119 | 1,296 | ||||||||||||||
Non-owned and minority owned put provisions | 3 | 43 | — | — | 46 | ||||||||||||||
Operating capital advances | — | 3 | 1 | 3 | 7 | ||||||||||||||
Purchase commitments | 80 | 1,026 | — | — | 1,106 | ||||||||||||||
$ | 1,031 | $ | 1,268 | $ | 107 | $ | 122 | $ | 2,528 |
Average interest rate | Average interest rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected maturity date | Fair Value | Expected maturity date | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long term debt: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | $ | 15 | $ | 31 | $ | 30 | $ | 28 | $ | 1,279 | $ | 28 | $ | 3,480 | $ | 4,891 | 5.28 | % | $ | 4,796 | $ | 11 | $ | 32 | $ | 26 | $ | 29 | $ | 42 | $ | 1,777 | $ | 1,721 | $ | 3,638 | 5.11 | % | $ | 3,657 | ||||||||||||||||||||||||||||||||||||
Variable rate | $ | 35 | $ | 1,998 | $ | 45 | $ | 3,284 | $ | 10 | $ | 8 | $ | 7 | $ | 5,387 | 4.80 | % | $ | 5,418 | $ | 19 | $ | 97 | $ | 127 | $ | 140 | $ | 182 | $ | 1,395 | $ | 2,614 | $ | 4,574 | 4.31 | % | $ | 4,594 |
Notional Amount | Contract maturity date | Fair Value | |||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | Receive variable | ||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||
Cap agreements | $ | 3,500 | $ | — | $ | — | $ | 3,500 | $ | — | $ | — | LIBOR above 3.5% | $ | 2 |
Notional Amount | Contract maturity date | Fair Value | |||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 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% | $ | 20.6 |
• | the 21st Century Cures Act; |
• | federal and state laws regarding the collection, use and disclosure of patient health information (e.g., Health Insurance Portability and Accountability Act of 1996 (HIPAA)) and the storage, handling, shipment, disposal and/or dispensing of pharmaceuticals and blood products and other biological materials. |
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) | |||||||||||
Period | ||||||||||||||
July 1-31, 2018 | 3,871,905 | $ | 70.48 | 3,871,905 | $ | 1,426.3 | ||||||||
August 1-31, 2018 | 977,146 | 72.36 | 977,146 | 1,355.6 | ||||||||||
September 1-30, 2018 | — | — | — | 1,355.6 | ||||||||||
4,849,051 | $ | 70.86 | 4,849,051 |
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) | ||||||||||
July 1-31, 2019 | 4,214,205 | $ | 56.47 | 4,214,205 | $ | 2,000 | ||||||||
August 1-31, 2019 | 21,801,975 | 56.57 | 21,801,975 | $ | 768 | |||||||||
September 1-30, 2019 | 4,575,570 | 60.47 | 4,575,570 | $ | 492 | |||||||||
30,591,750 | $ | 57.14 | 30,591,750 |
Exhibit | ||
Number | ||
10.1 | ||
Certification of the Chief Executive Officer, dated November | ||
Certification of the Chief Financial Officer, dated November | ||
Certification of the Chief Executive Officer, dated November | ||
Certification of the Chief Financial Officer, dated November | ||
101.INS | XBRL Instance | |
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 |
ü | Filed or furnished herewith. |
(1) | Filed on |
DAVITA INC. | |||
BY: | /s/ JAMES K. HILGER | ||
James K. Hilger | |||
Chief Accounting Officer* |
* | Mr. Hilger has signed both on behalf of the Registrant as a duly authorized officer and as the Registrant’s principal accounting officer. |