Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 28, 2014 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'DVA | ' |
Entity Registrant Name | 'DAVITA HEALTHCARE PARTNERS INC. | ' |
Entity Central Index Key | '0000927066 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 214,200,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Patient service revenues | $2,114,098 | $1,979,873 |
Less: Provision for uncollectible accounts | -83,197 | -70,057 |
Net patient service revenues | 2,030,901 | 1,909,816 |
Capitated revenues | 787,565 | 762,615 |
Other revenues | 224,310 | 157,151 |
Total net revenues | 3,042,776 | 2,829,582 |
Operating expenses and charges: | ' | ' |
Patient care costs and other costs | 2,179,772 | 1,960,891 |
General and administrative | 284,061 | 284,410 |
Depreciation and amortization | 142,579 | 125,909 |
Provision for uncollectible accounts | 2,511 | 878 |
Equity investment income | -7,372 | -9,367 |
Loss contingency reserve | ' | 300,000 |
Total operating expenses and charges | 2,601,551 | 2,662,721 |
Operating income | 441,225 | 166,861 |
Debt expense | -106,335 | -105,817 |
Other income, net | 1,698 | 598 |
Consolidated income from continuing operations before income taxes | 336,588 | 61,642 |
Income tax expense | 124,851 | 15,144 |
Income from continuing operations | 211,737 | 46,498 |
Discontinued operations: | ' | ' |
Loss from operations of discontinued operations, net of tax | ' | -139 |
Gain on disposal of discontinued operations, net of tax | ' | 13,375 |
Net income | 211,737 | 59,734 |
Less: Net income attributable to noncontrolling interests | -28,448 | -29,570 |
Net income | 183,289 | 30,164 |
Earnings per share: | ' | ' |
Basic income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $0.87 | $0.08 |
Basic net income per share attributable to DaVita HealthCare Partners Inc. | $0.87 | $0.14 |
Diluted income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $0.85 | $0.08 |
Diluted net income per share attributable to DaVita HealthCare Partners Inc. | $0.85 | $0.14 |
Weighted average shares for earnings per share: | ' | ' |
Basic | 211,375,232 | 208,968,952 |
Diluted | 216,118,922 | 214,127,266 |
Amounts attributable to DaVita HealthCare Partners Inc.: | ' | ' |
Income from continuing operations | 183,289 | 16,915 |
Discontinued operations | ' | 13,249 |
Net income | $183,289 | $30,164 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $211,737 | $59,734 |
Unrealized losses on interest rate swap and cap agreements: | ' | ' |
Unrealized losses on interest rate swap and cap agreements | -2,505 | -2,369 |
Reclassifications of net swap and cap agreements realized losses into net income | 3,359 | 2,507 |
Unrealized gains on investments: | ' | ' |
Unrealized gain on investments | 331 | 618 |
Reclassification of net investment realized gains into net income | -207 | -94 |
Foreign currency translation adjustments | 28 | -2,106 |
Other comprehensive income (loss) | 1,006 | -1,444 |
Total comprehensive income | 212,743 | 58,290 |
Less: Comprehensive income attributable to noncontrolling interests | -28,448 | -29,570 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $184,295 | $28,720 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,108,069 | $946,249 |
Short-term investments | 8,080 | 6,801 |
Accounts receivable, less allowance of $247,108 and $237,143 | 1,539,728 | 1,485,163 |
Inventories | 101,173 | 88,805 |
Other receivables | 374,017 | 349,090 |
Other current assets | 169,628 | 176,414 |
Income tax receivable | ' | 10,315 |
Deferred income taxes | 406,538 | 409,441 |
Total current assets | 3,707,233 | 3,472,278 |
Property and equipment, net of accumulated depreciation of $1,857,718 and $1,778,259 | 2,224,439 | 2,189,411 |
Intangibles, net of accumulated amortization of $530,540 and $483,773 | 2,025,822 | 2,024,373 |
Equity investments | 40,727 | 40,686 |
Long-term investments | 81,033 | 79,557 |
Other long-term assets | 76,909 | 79,598 |
Goodwill | 9,242,179 | 9,212,974 |
Total assets | 17,398,342 | 17,098,877 |
LIABILITIES AND EQUITY | ' | ' |
Accounts payable | 392,907 | 435,465 |
Other liabilities | 486,565 | 464,422 |
Accrued compensation and benefits | 629,669 | 603,013 |
Medical payables | 284,759 | 287,452 |
Loss contingency reserve | 397,000 | 397,000 |
Current portion of long-term debt | 292,220 | 274,697 |
Income tax payable | 83,054 | ' |
Total current liabilities | 2,566,174 | 2,462,049 |
Long-term debt | 8,071,622 | 8,141,231 |
Other long-term liabilities | 407,288 | 380,337 |
Deferred income taxes | 822,842 | 812,419 |
Total liabilities | 11,867,926 | 11,796,036 |
Commitments and contingencies | ' | ' |
Noncontrolling interests subject to put provisions | 692,780 | 697,300 |
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; 214,045,116 and 213,163,248 shares issued and outstanding at March 31, 2014 and at December 31, 2013, respectively) | 214 | 213 |
Additional paid-in capital | 1,113,714 | 1,070,922 |
Retained earnings | 3,547,278 | 3,363,989 |
Accumulated other comprehensive loss | -1,639 | -2,645 |
Total DaVita HealthCare Partners Inc. shareholders' equity | 4,659,567 | 4,432,479 |
Noncontrolling interests not subject to put provisions | 178,069 | 173,062 |
Total equity | 4,837,636 | 4,605,541 |
Total liabilities and equity | $17,398,342 | $17,098,877 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $247,108 | $237,143 |
Property and equipment, accumulated depreciation | 1,857,718 | 1,778,259 |
Intangibles, accumulated amortization | $530,540 | $483,773 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 214,045,116 | 213,163,248 |
Common stock, shares outstanding | 214,045,116 | 213,163,248 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOW (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $211,737 | $59,734 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Loss contingency reserve | ' | 300,000 |
Depreciation and amortization | 142,565 | 125,756 |
Stock-based compensation expense | 15,074 | 16,021 |
Tax benefits from stock award exercises | 22,978 | 9,368 |
Excess tax benefits from stock award exercises | -18,336 | -6,957 |
Deferred income taxes | 8,902 | -111,331 |
Equity investment income, net | -187 | -2,486 |
Other non-cash (income) charges and loss on disposal of assets | 8,346 | -11,396 |
Changes in operating assets and liabilities, other than from acquisitions and divestitures: | ' | ' |
Accounts receivable | -54,565 | -92,339 |
Inventories | -12,280 | 2,162 |
Other receivables and other current assets | -17,740 | -32,281 |
Other long-term assets | 1,418 | -9,865 |
Accounts payable | -42,558 | -83,896 |
Accrued compensation and benefits | 23,570 | -3,790 |
Other current liabilities | 20,615 | 79,277 |
Income taxes | 92,905 | 93,401 |
Other long-term liabilities | 16,663 | 47,829 |
Net cash (used in) provided by operating activities | 419,107 | 379,207 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -126,562 | -116,724 |
Acquisitions | -67,857 | -91,498 |
Proceeds from asset and business sales | 56 | 62,357 |
Purchase of investments available for sale | -1,824 | -1,212 |
Purchase of investments held-to-maturity | -2,511 | -4 |
Proceeds from sale of investments available for sale | 1,262 | 1,091 |
Proceeds from sale of investments held to maturity | 1,508 | ' |
Purchase of intangible assets | -11 | -137 |
Distributions received on equity investments | 146 | 116 |
Net cash provided by (used in) investing activities | -195,793 | -146,011 |
Cash flows from financing activities: | ' | ' |
Borrowings | 16,179,463 | 16,797,510 |
Payments on long-term debt and other financing costs | -16,244,613 | -16,861,197 |
Distributions to noncontrolling interests | -33,147 | -34,926 |
Stock award exercises and other share issuances, net | 3,450 | 5,833 |
Excess tax benefits from stock award exercises | 18,336 | 6,957 |
Contributions from noncontrolling interests | 13,625 | 14,257 |
Proceeds from sales of additional noncontrolling interests | 761 | 4,174 |
Net cash provided by (used in) financing activities | -62,125 | -67,392 |
Effect of exchange rate changes on cash and cash equivalents | 631 | 119 |
Net increase in cash and cash equivalents | 161,820 | 165,923 |
Cash and cash equivalents at beginning of period | 946,249 | 533,748 |
Cash and cash equivalents at end of period | 1,108,069 | 699,671 |
Supplemental cash flow information: | ' | ' |
Fixed assets under capital lease obligations | $11,918 | $13,594 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Non- controlling interests subject to put provisions | Common stock | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated Other comprehensive income (loss) | Total | Non- controlling interests not subject to put provisions |
In Thousands, except Share data, unless otherwise specified | |||||||||
Beginning Balance at Dec. 31, 2012 | ' | $580,692 | $270 | $1,208,665 | $3,731,835 | ($1,162,336) | ($15,297) | $3,763,137 | $153,788 |
Beginning Balance (in shares) at Dec. 31, 2012 | ' | ' | 269,725,000 | ' | ' | -58,728,000 | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | 78,215 | ' | ' | 633,446 | ' | ' | 633,446 | 45,540 |
Other comprehensive income | ' | ' | ' | ' | ' | ' | 12,652 | 12,652 | ' |
Stock purchase shares issued (in shares) | ' | ' | 238,000 | ' | ' | ' | ' | ' | ' |
Stock purchase shares issued | ' | ' | ' | 12,817 | ' | ' | ' | 12,817 | ' |
Stock unit shares issued (in shares) | ' | ' | 7,000 | ' | ' | 164,000 | ' | ' | ' |
Stock unit shares issued | ' | ' | ' | -3,286 | ' | 3,247 | ' | -39 | ' |
Stock-settled SAR shares issued (in shares) | ' | ' | 313,000 | ' | ' | 1,444,000 | ' | ' | ' |
Stock-settled SAR shares issued | ' | ' | ' | -29,025 | ' | 28,561 | ' | -464 | ' |
Stock-based compensation expense | ' | ' | ' | 59,998 | ' | ' | ' | 59,998 | ' |
Excess tax benefits from stock awards exercised | ' | ' | ' | 36,197 | ' | ' | ' | 36,197 | ' |
Distributions to noncontrolling interests | ' | -80,353 | ' | ' | ' | ' | ' | ' | -58,973 |
Contributions from noncontrolling interests | ' | 22,053 | ' | ' | ' | ' | ' | ' | 14,943 |
Sales and assumptions of additional noncontrolling interests | ' | 23,642 | ' | -1,442 | ' | ' | ' | -1,442 | 10,770 |
Purchases from noncontrolling interests | ' | -512 | ' | -3,119 | ' | ' | ' | -3,119 | -147 |
Expiration of put option and other reclassification | ' | -7,141 | ' | ' | ' | ' | ' | ' | 7,141 |
Changes in fair value of noncontrolling interests | ' | 80,704 | ' | -80,704 | ' | ' | ' | -80,704 | ' |
Treasury stock retirement (Shares) | ' | ' | -57,120,000 | ' | ' | 57,120,000 | ' | ' | ' |
Treasury stock retirement | ' | ' | -57 | -129,179 | -1,001,292 | 1,130,528 | ' | ' | ' |
Ending Balance at Dec. 31, 2013 | 4,605,541 | 697,300 | 213 | 1,070,922 | 3,363,989 | ' | -2,645 | 4,432,479 | 173,062 |
Ending Balance (in shares) at Dec. 31, 2013 | 213,163,248 | ' | 213,163,000 | ' | ' | ' | ' | ' | ' |
Comprehensive income: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 211,737 | 18,584 | ' | ' | 183,289 | ' | ' | 183,289 | 9,864 |
Other comprehensive income | 1,006 | ' | ' | ' | ' | ' | 1,006 | 1,006 | ' |
Stock unit shares issued (in shares) | ' | ' | 44,000 | ' | ' | ' | ' | ' | ' |
Stock unit shares issued | ' | ' | ' | -27 | ' | ' | ' | -27 | ' |
Stock-settled SAR shares issued (in shares) | ' | ' | 838,000 | ' | ' | ' | ' | ' | ' |
Stock-settled SAR shares issued | ' | ' | 1 | -1 | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | 15,074 | ' | ' | ' | 15,074 | ' |
Excess tax benefits from stock awards exercised | ' | ' | ' | 18,336 | ' | ' | ' | 18,336 | ' |
Distributions to noncontrolling interests | ' | -21,640 | ' | ' | ' | ' | ' | ' | -11,507 |
Contributions from noncontrolling interests | ' | 6,975 | ' | ' | ' | ' | ' | ' | 6,650 |
Sales and assumptions of additional noncontrolling interests | ' | 680 | ' | 81 | ' | ' | ' | 81 | ' |
Adjustment in ownership interests | ' | ' | ' | 210 | ' | ' | ' | 210 | ' |
Changes in fair value of noncontrolling interests | ' | -9,119 | ' | 9,119 | ' | ' | ' | 9,119 | ' |
Ending Balance at Mar. 31, 2014 | $4,837,636 | $692,780 | $214 | $1,113,714 | $3,547,278 | ' | ($1,639) | $4,659,567 | $178,069 |
Ending Balance (in shares) at Mar. 31, 2014 | 214,045,116 | ' | 214,045,000 | ' | ' | ' | ' | ' | ' |
Condensed_consolidated_interim
Condensed consolidated interim financial statements | 3 Months Ended |
Mar. 31, 2014 | |
Condensed consolidated interim financial statements | ' |
1. Condensed consolidated interim financial statements | |
The condensed consolidated interim financial statements included in this report are prepared by the Company without audit. In the opinion of management, all adjustments necessary for a fair presentation of the results of operations are reflected in these consolidated interim financial statements. All significant intercompany accounts and transactions have been eliminated. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The most significant estimates and assumptions underlying these financial statements and accompanying notes generally involve the accrual of an estimated loss contingency reserve and its impact on the Company’s income taxes, revenue recognition and accounts receivable, impairments of long-lived assets, fair value estimates, accounting for income taxes, variable compensation accruals, consolidation of variable interest entities, purchase accounting valuation estimates, long-term incentive program compensation and medical liability claims. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the operating results for the full year. The condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Prior year balances and amounts have been reclassified to conform to the current year presentation. The Company has evaluated subsequent events through the date these condensed consolidated financial statements were issued and has included all necessary disclosures. |
Earnings_per_share
Earnings per share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings per share | ' | ||||||||
2. Earnings per share | |||||||||
Basic net income per share is calculated by dividing net income attributable to the Company, adjusted for any change in noncontrolling interests redemption rights in excess of fair value, by the weighted average number of common shares and vested stock units outstanding. Diluted net income per share includes the dilutive effect of outstanding stock-settled stock appreciation rights and unvested stock units (under the treasury stock method). | |||||||||
The reconciliations of the numerators and denominators used to calculate basic and diluted earnings per share are as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic: | |||||||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $ | 183,289 | $ | 16,915 | |||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | — | 13,249 | |||||||
Net income attributable to DaVita HealthCare Partners Inc. for basic earnings per share calculation | $ | 183,289 | $ | 30,164 | |||||
Weighted average shares outstanding during the period | 213,564 | 211,157 | |||||||
Vested stock units | 5 | 6 | |||||||
Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger | (2,194 | ) | (2,194 | ) | |||||
Weighted average shares for basic earnings per share calculation | 211,375 | 208,969 | |||||||
Basic income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $ | 0.87 | $ | 0.08 | |||||
Basic income from discontinued operations per share attributable to DaVita HealthCare Partners Inc. | $ | — | $ | 0.06 | |||||
Basic net income per share attributable to DaVita HealthCare Partners Inc. | $ | 0.87 | $ | 0.14 | |||||
Diluted: | |||||||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $ | 183,289 | $ | 16,915 | |||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | — | 13,249 | |||||||
Net income attributable to DaVita HealthCare Partners Inc. for diluted earnings per share calculation | $ | 183,289 | $ | 30,164 | |||||
Weighted average shares outstanding during the period | 213,564 | 211,157 | |||||||
Vested stock units | 5 | 6 | |||||||
Assumed incremental shares from stock plans | 2,550 | 2,964 | |||||||
Weighted average shares for diluted earnings per share calculation | 216,119 | 214,127 | |||||||
Diluted income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $ | 0.85 | $ | 0.08 | |||||
Diluted income from discontinued operations per share attributable to DaVita HealthCare Partners Inc. | $ | — | $ | 0.06 | |||||
Diluted net income per share attributable to DaVita HealthCare Partners Inc. | $ | 0.85 | $ | 0.14 | |||||
Anti-dilutive stock-settled awards excluded from calculation(1) | 2,999 | 2,187 | |||||||
(1) | Shares associated with stock-settled stock appreciation rights that are excluded from the diluted denominator calculation because they are anti-dilutive under the treasury stock method. |
Accounts_receivable
Accounts receivable | 3 Months Ended |
Mar. 31, 2014 | |
Accounts receivable | ' |
3. Accounts receivable | |
Accounts receivable are reduced by an allowance for doubtful accounts. In evaluating the ultimate collectability of the Company’s accounts receivable, the Company analyzes its historical cash collection experience and trends for each of its government payors and commercial payors to estimate the adequacy of the allowance for doubtful accounts and the amount of the provision for uncollectible accounts. Management regularly updates its analysis based upon the most recent information available to determine its current provision for uncollectible accounts and the adequacy of its allowance for doubtful accounts. For receivables associated with dialysis patient services covered by government payors, like Medicare, the Company receives 80% of the payment directly from Medicare as established under the government’s bundled payment system, in the case of dialysis services receivables, and determines an appropriate allowance for doubtful accounts and provision for uncollectible accounts on the remaining balance due depending upon the Company’s estimate of the amounts ultimately collectible from other secondary coverage sources or from the patients. For receivables associated with services to patients covered by commercial payors that are either based upon contractual terms or for non-contracted health plan coverage, the Company provides an allowance for doubtful accounts by recording a provision for uncollectible accounts based upon its historical collection experience, potential inefficiencies in its billing processes and for which collectability is determined to be unlikely. Approximately 1% of the Company’s net accounts receivable are associated with patient pay and it is the Company’s policy to record an allowance for 100% of these outstanding dialysis accounts receivable balances when those amounts due are outstanding for more than four months. | |
During the three months ended March 31, 2014, the Company’s allowance for doubtful accounts increased by approximately $9,965. This was primarily due to an increase in the bad debt provision from 3.5% to 4.0% related to our U.S. dialysis and related lab services, primarily as a result of additional non-covered Medicare write-offs. There were no unusual transactions impacting the allowance for doubtful accounts. |
Investments_in_debt_and_equity
Investments in debt and equity securities and other investments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments in debt and equity securities and other investments | ' | ||||||||||||||||||||||||
4. Investments in debt and equity securities and other investments | |||||||||||||||||||||||||
Based on the Company’s intentions and strategy concerning investments in debt securities, the Company classifies certain debt securities as held-to-maturity and records them at amortized cost. Equity securities that have readily determinable fair values, including those of mutual funds, common stock and other debt securities, are classified as available-for-sale and recorded at fair value. | |||||||||||||||||||||||||
The Company’s investments in securities consist of the following: | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Held to | Available | Total | Held to | Available | Total | ||||||||||||||||||||
maturity | for sale | maturity | for sale | ||||||||||||||||||||||
Certificates of deposit and money market funds due within one year | $ | 6,604 | $ | — | $ | 6,604 | $ | 5,601 | $ | — | $ | 5,601 | |||||||||||||
Investments in mutual funds and common stock | — | 20,532 | 20,532 | — | 19,421 | 19,421 | |||||||||||||||||||
$ | 6,604 | $ | 20,532 | $ | 27,136 | $ | 5,601 | $ | 19,421 | $ | 25,022 | ||||||||||||||
Short-term investments | $ | 6,604 | $ | 1,476 | $ | 8,080 | $ | 5,601 | $ | 1,200 | $ | 6,801 | |||||||||||||
Long-term investments | — | 19,056 | 19,056 | — | 18,221 | 18,221 | |||||||||||||||||||
$ | 6,604 | $ | 20,532 | $ | 27,136 | $ | 5,601 | $ | 19,421 | $ | 25,022 | ||||||||||||||
The cost of the certificates of deposit and money market funds at March 31, 2014 and December 31, 2013 approximates their fair value. As of March 31, 2014 and December 31, 2013, the available-for-sale investments included $5,286 and $5,096 of gross pre-tax unrealized gains, respectively. During the three months ended March 31, 2014, the Company recorded gross pre-tax unrealized gains of $530, or $331 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the three months ended March 31, 2014, the Company sold investments in mutual funds for net proceeds of $1,262 and recognized a pre-tax gain of $340, or $207 after-tax, which was previously recorded in other comprehensive income. During the three months ended March 31, 2013, the Company sold investments in mutual funds for net proceeds of $1,091 and recognized a pre-tax gain of $155, or $94 after-tax, which was previously recorded in other comprehensive income. | |||||||||||||||||||||||||
The investments in mutual funds classified as available-for-sale are held within a trust to fund existing obligations associated with several of the Company’s non-qualified deferred compensation plans. | |||||||||||||||||||||||||
As of March 31, 2014, the Company held $5,000 of preferred stock in a privately held company that is accounted for under the cost method as this investment does not have a readily determinable fair value. | |||||||||||||||||||||||||
Certain HCP entities are required to maintain minimum cash balances in order to comply with regulatory requirements in conjunction with medical claim reserves. As of March 31, 2014, this minimum cash balance was approximately $52,000. |
Goodwill
Goodwill | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
5. Goodwill | |||||||||||||||||
Changes in goodwill by reportable segments were as follows: | |||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||
U.S. dialysis and | HCP | Other-ancillary | Consolidated total | ||||||||||||||
related lab services | services and | ||||||||||||||||
strategic initiatives | |||||||||||||||||
Balance at December 31, 2013 | $ | 5,469,473 | $ | 3,516,162 | $ | 227,339 | $ | 9,212,974 | |||||||||
Acquisitions | 2,915 | 26,194 | — | 29,109 | |||||||||||||
Other adjustments | — | — | 96 | 96 | |||||||||||||
Balance at March 31, 2014 | $ | 5,472,388 | $ | 3,542,356 | $ | 227,435 | $ | 9,242,179 | |||||||||
Year ended December 31, 2013 | |||||||||||||||||
U.S. dialysis and | HCP | Other-ancillary | Consolidated total | ||||||||||||||
related lab services | services and | ||||||||||||||||
strategic initiatives | |||||||||||||||||
Balance at December 31, 2012 | $ | 5,309,152 | $ | 3,506,571 | $ | 137,027 | $ | 8,952,750 | |||||||||
Acquisitions | 163,037 | 17,833 | 90,397 | 271,267 | |||||||||||||
Divestitures | (2,728 | ) | — | — | (2,728 | ) | |||||||||||
Other adjustments | 12 | (8,242 | ) | (85 | ) | (8,315 | ) | ||||||||||
Balance at December 31, 2013 | $ | 5,469,473 | $ | 3,516,162 | $ | 227,339 | $ | 9,212,974 | |||||||||
Each of the Company’s operating segments described in Note 16 to these condensed consolidated financial statements represents an individual reporting unit for goodwill impairment testing purposes, except that each sovereign jurisdiction within our international operations segments is considered a separate reporting unit. | |||||||||||||||||
Within the U.S. dialysis and related lab services operating segment, the Company considers each of its dialysis centers to constitute an individual business for which discrete financial information is available. However, since these dialysis centers have similar operating and economic characteristics, and the allocation of resources and significant investment decisions concerning these businesses are highly centralized and the benefits broadly distributed, the Company has aggregated these centers and deemed them to constitute a single reporting unit. | |||||||||||||||||
The Company has applied a similar aggregation to the HCP operations in each region, to the vascular access service centers in its vascular access services reporting unit, to the physician practices in its physician services reporting unit, and to the dialysis centers in each sovereign international jurisdiction. For the Company’s additional operating segments, no component below the operating segment level is considered a discrete business and therefore these operating segments directly constitute individual reporting units. | |||||||||||||||||
During the first quarter of 2014, the Company did not record any goodwill impairment charges. As of March 31, 2014, none of the goodwill associated with the Company’s various reporting units was considered at risk of impairment. Since the dates of the Company’s last annual goodwill impairment tests, there have been certain developments, events, changes in operating performance and other changes in circumstances that have affected the Company’s businesses. However, these did not cause management to believe it is more likely than not that the fair value of any of its reporting units would be less than its carrying amount. |
Health_care_costs_payable
Health care costs payable | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Health care costs payable | ' | ||||
6. Health care costs payable | |||||
The health care costs shown in the following table include estimates for the cost of professional medical services provided by non-employed physicians and other providers, as well as inpatient and other ancillary costs for all markets, other than California, where state regulation allows for the assumption of global risk. Health care costs payable are included in medical payables. | |||||
The following table shows the components of changes in the health care costs payable for the three months ended March 31, 2014: | |||||
Three monthsended | |||||
March 31, 2014 | |||||
Health care costs payable, beginning of the period | $ | 172,310 | |||
Add: Components of incurred health care costs | |||||
Current year | 380,918 | ||||
Prior years | 3,824 | ||||
Total incurred health care costs | 384,742 | ||||
Less: Claims paid | |||||
Current year | 220,478 | ||||
Prior years | 140,078 | ||||
Total claims paid | 360,556 | ||||
Health care costs payable, end of the period | $ | 196,496 | |||
Our prior year estimates of health care costs payable increased by $3,824 resulting from certain medical claims being settled for amounts more than originally estimated. When significant increases (decreases) in prior-year health care cost estimates occur that we believe significantly impact our current year operating results, we disclose that amount as unfavorable (favorable) development of prior-year’s health care cost estimates. Actual claim payments for prior year services have not been materially different from our year-end estimates. |
Income_taxes
Income taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income taxes | ' |
7. Income taxes | |
As of March 31, 2014, the Company’s total liability for unrecognized tax benefits relating to tax positions that do not meet the more-likely-than-not threshold is $60,762, of which $33,151 would impact the Company’s effective tax rate if recognized. This balance represents an increase of $224 from the December 31, 2013 balance of $60,538. | |
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. At March 31, 2014 and December 31, 2013, the Company had approximately $11,746 and $10,742, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefits. | |
As of March 31, 2014, it is reasonably possible that $27,611 of unrecognized tax benefits may be recognized within the next 12 months, primarily related to the filing of tax accounting method changes. |
Longterm_debt
Long-term debt | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Long-term debt | ' | ||||||||||||||||||||
8. Long-term debt | |||||||||||||||||||||
Long-term debt was comprised of the following: | |||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Senior Secured Credit Facilities: | |||||||||||||||||||||
Term Loan A | $ | 762,500 | $ | 800,000 | |||||||||||||||||
Term Loan A-3 | 1,265,625 | 1,282,500 | |||||||||||||||||||
Term Loan B | 1,693,125 | 1,697,500 | |||||||||||||||||||
Term Loan B-2 | 1,629,375 | 1,633,500 | |||||||||||||||||||
Senior notes | 2,800,000 | 2,800,000 | |||||||||||||||||||
Acquisition obligations and other notes payable | 66,825 | 67,352 | |||||||||||||||||||
Capital lease obligations | 163,106 | 152,751 | |||||||||||||||||||
Total debt principal outstanding | 8,380,556 | 8,433,603 | |||||||||||||||||||
Discount on long-term debt | (16,714 | ) | (17,675 | ) | |||||||||||||||||
8,363,842 | 8,415,928 | ||||||||||||||||||||
Less current portion | (292,220 | ) | (274,697 | ) | |||||||||||||||||
$ | 8,071,622 | $ | 8,141,231 | ||||||||||||||||||
Scheduled maturities of long-term debt at March 31, 2014 were as follows: | |||||||||||||||||||||
2014 | 208,890 | ||||||||||||||||||||
2015 | 845,479 | ||||||||||||||||||||
2016 | 1,897,968 | ||||||||||||||||||||
2017 | 911,372 | ||||||||||||||||||||
2018 | 807,601 | ||||||||||||||||||||
2019 | 1,565,989 | ||||||||||||||||||||
Thereafter | 2,143,257 | ||||||||||||||||||||
During the first three months of 2014, the Company made mandatory principal payments under its Senior Secured Credit Facilities totaling $37,500 on the Term Loan A, $16,875 on the Term Loan A-3, $4,375 on the Term Loan B and $4,125 on the Term Loan B-2. | |||||||||||||||||||||
The Company has entered into several interest rate swap agreements as a means of hedging its exposure to and volatility from variable-based interest rate changes as part of its overall interest rate risk management strategy. These agreements are not held for trading or speculative purposes and have the economic effect of converting the LIBOR variable component of the Company’s interest rate to a fixed rate. These swap agreements are designated as cash flow hedges, and as a result, hedge-effective gains or losses resulting from changes in the fair values of these swaps are reported in other comprehensive income until such time as the hedged forecasted cash flows occur, at which time the amounts are reclassified into net income. Net amounts paid or received for each specific swap tranche that have settled have been reflected as adjustments to debt expense. In addition, the Company has entered into several interest rate cap agreements that have the economic effect of capping the Company’s maximum exposure to LIBOR variable interest rate changes on specific portions of the Company’s Term Loan B debt and Term Loan B-2 debt, as described below. Certain cap agreements are also designated as cash flow hedges and, as a result, changes in the fair values of these cap agreements are reported in other comprehensive income. Certain other cap agreements are ineffective cash flow hedges, and as a result, changes in the fair value of these cap agreements are reported in net income. The amortization of the original cap premium is recognized as a component of debt expense on a straight-line basis over the term of the cap agreements. The swap and cap agreements do not contain credit-risk contingent features. | |||||||||||||||||||||
As of March 31, 2014, the Company maintains several interest rate swap agreements that were entered into in March 2013 with amortizing notional amounts of these swap agreements totaling $1,265,625. These agreements have the economic effect of modifying the LIBOR variable component of the Company’s interest rate on an equivalent amount of the Company’s Term Loan A-3 to fixed rates ranging from 0.49% to 0.52%, resulting in an overall weighted average effective interest rate of 3.01%, including the Term Loan A-3 margin of 2.50%. The swap agreements expire on September 30, 2016 and require monthly interest payments. During the three months ended March 31, 2014, the Company recognized debt expense of $1,104 from these swaps. As of March 31, 2014, the total fair value of these swap agreements was a net asset of approximately $3,717. The Company estimates that approximately $3,930 of existing unrealized pre-tax losses in other comprehensive income at March 31, 2014 will be reclassified into income over the next twelve months. | |||||||||||||||||||||
In addition, as of March 31, 2014, the Company also maintains several forward interest rate swap agreements that were entered into in March 2013 with notional amounts totaling $600,000 that will amortize after the swap agreements have become effective. These forward swap agreements will be effective September 30, 2014 and will have the economic effect of modifying the LIBOR variable component of the Company’s interest rate on an equivalent amount of the Company’s outstanding debt to fixed rates ranging from 0.72% to 0.75%. These swap agreements expire on September 30, 2016 and will require monthly interest payments beginning in October 2014. Any unrealized gains or losses resulting from changes in the fair value of these swaps is recorded in other comprehensive income. As of March 31, 2014, the total fair value of these swap agreements was a net asset of approximately $880. The Company estimates that approximately $1,555 of existing unrealized pre-tax losses in other comprehensive income at March 31, 2014 will be reclassified into income over the next twelve months. | |||||||||||||||||||||
As of March 31, 2014, the Company maintains several interest rate cap agreements that were entered into in March 2013 with notional amounts totaling $1,250,000 on the Company’s Term Loan B debt and $1,485,000 on the Company’s Term Loan B-2 debt. These agreements have the economic effect of capping the LIBOR variable component of the Company’s interest rate at a maximum of 2.50% on an equivalent amount of the Company’s Term Loan B and Term Loan B-2 debt. During the three months ended March 31, 2014, the Company recognized debt expense of $610 from these caps. The cap agreements expire on September 30, 2016. As of March 31, 2014, the total fair value of these cap agreements was an asset of approximately $6,219. During the three months ended March 31, 2014, the Company recorded a loss of $1,347 in other comprehensive income due to a decrease in the unrealized fair value of these cap agreements. | |||||||||||||||||||||
As of March 31, 2014, the Company also maintains a total of nine other interest rate swap agreements with amortizing notional amounts totaling $762,500. These agreements had the economic effect of modifying the LIBOR variable component of the Company’s interest rate on an equivalent amount of the Company’s Term Loan A to fixed rates ranging from 1.59% to 1.64%, resulting in an overall weighted average effective interest rate of 4.36%, including the Term Loan A margin of 2.75%. The swap agreements expire on September 30, 2014 and require monthly interest payments. During the three months ended March 31, 2014, the Company recognized debt expense of $2,903 from these swaps. As of March 31, 2014, the total fair value of these swap agreements was a liability of approximately $5,420. The Company estimates that approximately $5,420 of existing unrealized pre-tax losses in other comprehensive income at March 31, 2014 will be reclassified into income over the next twelve months. | |||||||||||||||||||||
As of March 31, 2014, the Company also maintains five other interest rate cap agreements with notional amounts totaling $1,250,000. These agreements have the economic effect of capping the LIBOR variable component of our interest rate at a maximum of 4.00% on an equivalent amount of our Term Loan B debt. However, as a result of the new interest rate cap agreements that were entered into in March 2013, as described above, these interest rate cap agreements became ineffective cash flow hedges and as a result any changes in the fair value associated with these interest rate cap agreements will be charged to income. During the three months ended March 31, 2014, the Company recognized debt expense of $897 from these caps. The cap agreements expire on September 30, 2014. | |||||||||||||||||||||
The following table summarizes the Company’s derivative instruments as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Derivatives designated as hedging | Balance sheet | Fair value | Balance sheet | Fair value | |||||||||||||||||
instruments | location | location | |||||||||||||||||||
Interest rate swap agreements | Other short-term liabilities | $ | 10,905 | Other short-term liabilities | $ | 12,069 | |||||||||||||||
Interest rate swap agreements | Other long-term assets | $ | 10,081 | Other long-term assets | $ | 10,004 | |||||||||||||||
Interest rate cap agreements | Other long-term assets | $ | 6,219 | Other long-term assets | $ | 7,567 | |||||||||||||||
The following table summarizes the effects of the Company’s interest rate swap and cap agreements for the three months ended March 31, 2014 and 2013: | |||||||||||||||||||||
Amount of gains | Location of | Amount of | |||||||||||||||||||
(losses) recognized in | losses reclassified | losses reclassified | |||||||||||||||||||
OCI on interest rate swap | from accumulated | from accumulated | |||||||||||||||||||
and cap agreements | OCI into income | OCI into income | |||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||
Derivatives designated as cash flow hedges | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Interest rate swap agreements | $ | (2,764 | ) | $ | (964 | ) | Debt expense | $ | (4,006 | ) | $ | (3,207 | ) | ||||||||
Interest rate cap agreements | (1,347 | ) | (2,913 | ) | Debt expense | (1,507 | ) | (897 | ) | ||||||||||||
Tax benefit | 1,606 | 1,508 | 2,154 | 1,597 | |||||||||||||||||
Total | $ | (2,505 | ) | $ | (2,369 | ) | $ | (3,359 | ) | $ | (2,507 | ) | |||||||||
As of March 31, 2014, interest rates on the Company’s Term Loan B and Term Loan B-2 debt are effectively fixed because of an embedded LIBOR floor which is higher than actual LIBOR as of such date and these term loans are also subject to interest rate caps if LIBOR should rise above 2.50%. See above for further details. Interest rates on the Company’s senior notes are fixed by their terms. The LIBOR variable component of the Company’s interest rates on the Company’s Term Loan A and the Term Loan A-3 are economically fixed as a result of interest rate swaps. | |||||||||||||||||||||
As a result of embedded LIBOR floors in some of the Company’s debt agreements and the swap and cap agreements, the Company’s overall weighted average effective interest rate on the Senior Secured Credit Facilities was 4.19%, based upon the current margins in effect of 2.75% for the Term Loan A, 2.50% for the Term Loan A-3 and 3.00% for both the Term Loan B and for the Term Loan B-2, as of March 31, 2014. | |||||||||||||||||||||
The Company’s overall weighted average effective interest rate during the first quarter of 2014 was 4.89% and as of March 31, 2014 was 4.87%. | |||||||||||||||||||||
As of March 31, 2014, the Company had undrawn revolving credit facilities totaling $350,000 of which approximately $83,000 was committed for outstanding letters of credit. In addition, HCP has an outstanding letter of credit of approximately $1,000 that is secured by a certificate of deposit. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Contingencies | ' |
9. Contingencies | |
The majority of the Company’s revenues are from government programs and may be subject to adjustment as a result of: (i) examination by government agencies or contractors, for which the resolution of any matters raised may take extended periods of time to finalize; (ii) differing interpretations of government regulations by different Medicare contractors or regulatory authorities; (iii) differing opinions regarding a patient’s medical diagnosis or the medical necessity of services provided; and (iv) retroactive applications or interpretations of governmental requirements. In addition, the Company’s revenues from commercial payors may be subject to adjustment as a result of potential claims for refunds, as a result of government actions or as a result of other claims by commercial payors. | |
Inquiries by the Federal Government and Certain Related Civil Proceedings | |
Vainer Private Civil Suit: In December 2008, the Company received a subpoena for documents from the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services (HHS) relating to the pharmaceutical products Zemplar, Hectorol, Venofer, Ferrlecit and erythropoietin (EPO), as well as other related matters. The subpoena covered the period from January 2003 to December 2008. The Company has been in contact with the U.S. Attorney’s Office for the Northern District of Georgia and the U.S. Department of Justice in Washington, DC since November 2008 relating to this matter, and has been advised that this was a civil inquiry. On June 17, 2009, the Company learned that the allegations underlying this inquiry were made as part of a civil complaint filed by individuals and brought pursuant to the qui tam provisions of the federal False Claims Act. On April 1, 2011, the U.S. District Court for the Northern District of Georgia ordered the case to be unsealed. At that time, the Department of Justice and U.S. Attorney’s Office filed a notice of declination stating that the federal government would not be intervening and not pursuing the relators’ allegation in litigation. On July 25, 2011, the relators, Daniel Barbir and Dr. Alon Vainer, filed their amended complaint in the U.S. District Court for the Northern District of Georgia, purportedly on behalf of the federal government. The allegations in the complaint relate to the Company’s drug administration practices for the Company’s dialysis operations for Vitamin D and iron agents for a period from 2003 through 2010. The complaint seeks monetary damages and civil penalties as well as costs and expenses. The Company is vigorously defending this matter and intends to continue to do so. The Company can make no assurances as to the time or resources that will be needed to devote to this litigation or its final outcome. | |
2010 U.S. Attorney Physician Relationship Investigation: In May 2010, the Company received a subpoena from the OIG’s office in Dallas, Texas. The civil subpoena covers the period from January 2005 to May 2010, and seeks production of a wide range of documents relating to the Company’s dialysis operations, including documents related to, among other things, financial relationships with physicians and joint ventures, and whether those relationships and joint ventures comply with the federal anti-kickback statute and the False Claims Act. The Company has been advised by the attorneys conducting this civil investigation that they believe that some or all of the Company’s joint ventures do not comply with the anti-kickback statute and the False Claims Act. The Company disagrees that its joint venture structure generally, which the Company believes is widely used in the dialysis industry and other segments of the healthcare industry substantially in the form that the Company uses it, violates the federal anti-kickback statute or the False Claims Act. As to individual transactions, the Company made significant effort to ensure that its joint venture structures and process complied with the rules, but the Company is talking with the government about addressing its concerns. The focus of this investigation overlaps substantially with the 2011 U.S. Attorney Physician Relationship Investigation described below. The Company has agreed to a framework for a global resolution with the United States Attorney’s Office for the District of Colorado, the Civil Division of the United States Department of Justice and the Office of the Inspector General for both the 2010 and the 2011 U.S. Attorney Physician Relationship Investigations. The final settlement remains subject to negotiation of specific terms. The settlement will include the payment of approximately $389,000, entry into a corporate integrity agreement, the appointment of an independent compliance monitor, and the imposition of certain other business restrictions related to a subset of the Company’s joint venture arrangements. Under the terms of the framework for resolution, the Company has agreed to unwind a limited subset of joint ventures that were created through partial divestiture to nephrologists, and agreed not to enter into this type of partial divestiture joint venture with nephrologists in the future. In 2013, the Company accrued an estimated loss contingency reserve of $397,000 related to this matter. The final settlement remains subject to negotiation of specific terms and will continue to require management’s attention and significant legal expense. The Company can make no assurances as to the final outcome. | |
2011 U.S. Attorney Physician Relationship Investigation: In August 2011, the Company announced it had learned that the U.S. Attorney’s Office for the District of Colorado would be investigating certain activities of its dialysis business in connection with information being provided to a grand jury. This investigation relates to the Company’s relationships with physicians, including its joint ventures, and whether those relationships and joint ventures comply with the federal anti-kickback statute, and overlaps substantially with the 2010 U.S. Attorney Physician Relationship Investigation described above. As noted above, the Company has agreed to a framework for a global resolution with the United States Attorney’s Office for the District of Colorado, the Civil Division of the United States Department of Justice and the Office of the Inspector General for both the 2010 and the 2011 U.S. Attorney Physician Relationship Investigations. The final settlement remains subject to negotiation of specific terms and will continue to require management’s attention and significant legal expense. The Company can make no assurances as to the final outcome. | |
2011 U.S. Attorney Medicaid Investigation: In October 2011, the Company announced that it would be receiving a request for documents, which could include an administrative subpoena from the OIG. Subsequent to the Company’s announcement of this 2011 U.S. Attorney Medicaid Investigation, the Company received a request for documents in connection with the inquiry by the U.S. Attorney’s Office for the Eastern District of New York. The request relates to payments for infusion drugs covered by Medicaid composite payments for dialysis. It is the Company’s understanding that this inquiry is civil in nature. The Company understands that certain other providers that operate dialysis clinics in New York may be receiving or have received a similar request for documents. The Company has cooperated with the government and produced the requested documents. In April 2014, we reached an agreement in principle to resolve this matter. The specific terms of a settlement remain subject to ongoing negotiation. | |
Swoben Private Civil Suit: In April 2013, the Company’s HealthCare Partners (HCP) subsidiary was served with a civil complaint filed by a former employee of SCAN Health Plan (SCAN), a health maintenance organization (HMO). On July 13, 2009, pursuant to the qui tam provisions of the federal False Claims Act and the California False Claims Act, James M. Swoben, as relator, filed a qui tam action in the United States District Court for the Central District of California purportedly on behalf of the United States of America and the State of California against SCAN, and certain other defendants whose identities were under seal. The allegations in the complaint relate to alleged overpayments received from government healthcare programs. In or about August 2012, SCAN entered into a settlement agreement with the United States of America and the State of California. The United States and the State of California partially intervened in the action for the purpose of settlement with and dismissal of the action against SCAN. In or about November 2011, the relator filed his Third Amended Complaint under seal alleging violations of the federal False Claims Act and the California False Claims Act, which named additional defendants, including HCP and certain health insurance companies (the defendant HMOs). The allegations in the complaint against HCP relate to patient diagnosis coding to determine reimbursement in the Medicare Advantage program, referred to as Hierarchical Condition Coding (HCC) and Risk Adjustment Factor (RAF) scores. The complaint sought monetary damages and civil penalties as well as costs and expenses. The United States Department of Justice reviewed these allegations and in January 2013 declined to intervene in the case. On June 26, 2013, HCP and the defendant HMOs filed their respective motions to dismiss the Third Amended Complaint pursuant to Federal Rules of Civil Procedure 12(b)(6) and 9(b), challenging the legal sufficiency of the claims asserted in the complaint. On July 30, 2013, the court granted HCP’s motion and dismissed with prejudice all of the claims in the Third Amended Complaint and judgment was entered in September 2013. The court specifically determined that further amendments to the complaint would be futile because, in part, the allegations were publicly disclosed in reports and other sources relating to audits conducted by the Centers of Medicare & Medicaid Services. In October 2013, the plaintiff appealed to the United States Court of Appeals for the Ninth Circuit and the court’s disposition of the appeal is pending. | |
Except for the private civil complaints filed by the relators as described above, to the Company’s knowledge, no proceedings have been initiated against the Company at this time in connection with any of the inquiries by the federal government. Although the Company cannot predict whether or when proceedings might be initiated or when these matters may be resolved, it is not unusual for inquiries such as these to continue for a considerable period of time through the various phases of document and witness requests and on-going discussions with regulators. Responding to the subpoenas or inquiries and defending the Company in the relator proceedings will continue to require management’s attention and significant legal expense. Any negative findings in the inquiries or relator proceedings could result in substantial financial penalties or awards against the Company, exclusion from future participation in the Medicare and Medicaid programs and, to the extent criminal proceedings may be initiated against the Company, possible criminal penalties. At this time, the Company cannot predict the ultimate outcome of these inquiries, or the potential outcome of the relators’ claims (except as described above), or the potential range of damages, if any. | |
In re DaVita HealthCare Partners, Inc. Derivative Litigation: On January 7, 2014, the U.S. District Court for the District of Colorado consolidated the two previously disclosed shareholder derivative lawsuits: the Haverhill Retirement System action filed on May 17, 2013 and the Clark Shareholder action filed on August 7, 2012. The court appointed Haverhill lead plaintiff. The complaints filed against the directors of the Company and against the Company, as nominal defendant allege, among other things, that our directors breached fiduciary duties to the Company relating to the 2010 and 2011 U.S. Attorney Physician Relationship Investigations described above, the Vainer qui tam private civil suit described above and the Woodard qui tam private civil suit for which the Company previously announced a settlement in July 2012. | |
Other | |
The Company has received several notices of claims from commercial payors and other third parties related to historical billing practices and claims against DVA Renal Healthcare (formerly known as Gambro Healthcare), a subsidiary of the Company, related to historical Gambro Healthcare billing practices and other matters covered by its 2004 settlement agreement with the Department of Justice and certain agencies of the U.S. government. The Company has received no further indication that any of these claims are active, and some of them may be barred by applicable statutes of limitations. To the extent any of these claims might proceed, the Company intends to defend against them vigorously; however, the Company may not be successful and these claims may lead to litigation and any such litigation may be resolved unfavorably. At this time, the Company cannot predict the ultimate outcome of these matters or the potential range of damages, if any. | |
A wage and hour claim, which has been styled as a class action, is pending against the Company in the Superior Court of California. The Company was served with the complaint in this lawsuit in April 2008, and it has been amended since that time. The complaint, as amended, alleges that the Company failed to provide meal periods, failed to pay compensation in lieu of providing rest or meal periods, failed to pay overtime, and failed to comply with certain other California Labor Code requirements. In September 2011, the court denied the plaintiffs’ motion for class certification. Plaintiffs appealed that decision. In January 2013, the Court of Appeals affirmed the trial court’s decision on some claims, but remanded the case to the trial court for clarification of its decision on one of the claims. The Company has reached an agreement with the plaintiffs to settle the claim that was remanded to the trial court, and the court has preliminarily approved that settlement. The amount of the settlement is not material to the Company’s consolidated financial statements. The Company intends to continue to vigorously defend against the remaining claims. Any potential settlement of the remaining claims is not anticipated to be material to the Company’s consolidated financial statements. | |
In addition to the foregoing, the Company is subject to claims and suits, including from time to time, contractual disputes and professional and general liability claims, as well as audits and investigations by various government entities, in the ordinary course of business. The Company believes that the ultimate resolution of any such pending proceedings, whether the underlying claims are covered by insurance or not, will not have a material adverse effect on its financial condition, results of operations or cash flows. |
Noncontrolling_interests_subje
Noncontrolling interests subject to put provisions and other commitments | 3 Months Ended |
Mar. 31, 2014 | |
Noncontrolling interests subject to put provisions and other commitments | ' |
10. Noncontrolling interests subject to put provisions and other commitments | |
The Company has potential obligations to purchase the noncontrolling interests held by third parties in several of its majority-owned joint ventures, non-owned and minority-owned entities. These obligations are in the form of put provisions and are exercisable at the third-party owners’ discretion within specified periods as outlined in each specific put provision. If these put provisions were exercised, the Company would be required to purchase the third-party owners’ noncontrolling interests at either the appraised fair market value or a predetermined multiple of earnings or cash flow attributable to the noncontrolling interests put to the Company, which is intended to approximate fair value. The methodology the Company uses to estimate the fair values of noncontrolling interests subject to put provisions assumes the higher of either a liquidation value of net assets or an average multiple of earnings, based on historical earnings, patient mix and other performance indicators that can affect future results, as well as other factors. The estimated fair values of the noncontrolling interests subject to put provisions is a critical accounting estimate that involves significant judgments and assumptions and may not be indicative of the actual values at which the noncontrolling interest may ultimately be settled, which could vary significantly from the Company’s current estimates. The estimated fair values of noncontrolling interests subject to put provisions can fluctuate and the implicit multiple of earnings at which these noncontrolling interests obligations may be settled will vary significantly depending upon market conditions including potential purchasers’ access to the capital markets, which can impact the level of competition for dialysis and non-dialysis related businesses, the economic performance of these businesses and the restricted marketability of the third-party owners’ noncontrolling interests. The amount of noncontrolling interests subject to put provisions that employ a contractually predetermined multiple of earnings rather than fair value are immaterial. | |
Additionally, the Company has certain other potential commitments to provide operating capital to several dialysis centers that are wholly-owned by third parties or centers in which the Company owns a minority equity investment as well as to physician-owned vascular access clinics or medical practices that the Company operates under management and administrative service agreements of approximately $2,000. | |
Certain consolidated joint ventures are contractually scheduled to dissolve after terms ranging from ten to fifty years. Accordingly, the noncontrolling interests in these joint ventures are considered mandatorily redeemable instruments, for which the classification and measurement requirements have been indefinitely deferred. Future distributions upon dissolution of these entities would be valued below the related noncontrolling interest carrying balances in the consolidated balance sheet. |
Stockbased_compensation
Stock-based compensation | 3 Months Ended |
Mar. 31, 2014 | |
Stock-based compensation | ' |
11. Stock-based compensation | |
The Company’s stock-based compensation awards are measured at their estimated fair values on the date of grant if settled in shares or at their estimated fair values at the end of each reporting period if settled in cash. The value of stock-based awards so measured is recognized as compensation expense on a cumulative straight-line basis over the vesting terms of the awards, adjusted for expected forfeitures. | |
During the three months ended March 31, 2014, the Company granted 29 stock-settled stock appreciation rights with an aggregate grant-date fair value of $452 and a weighted-average expected life of approximately 4.3 years, and also granted 2 stock units with an aggregate grant-date fair value of $167 and a weighted-average expected life of approximately 0.2 years. | |
For the three months ended March 31, 2014 and 2013, the Company recognized $15,074 and $16,021, respectively, in stock-based compensation expense for stock appreciation rights, stock units and discounted employee stock plan purchases, which are primarily included in general and administrative expenses. The estimated tax benefits recorded for stock-based compensation through March 31, 2014 and 2013 was $5,580 and $6,088, respectively. As of March 31, 2014, there was $79,262 of total estimated unrecognized compensation cost related to unvested stock-based compensation arrangements under the Company’s equity compensation and stock purchase plans. The Company expects to recognize this cost over a weighted average remaining period of 1.2 years. | |
For the three months ended March 31, 2014 and 2013, the Company received $22,978 and $9,368, respectively, in actual tax benefits upon the exercise of stock awards. |
Comprehensive_income
Comprehensive income | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Comprehensive income | ' | ||||||||||||||||||||||||||||||||
12. Comprehensive income | |||||||||||||||||||||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||||||||||||||||||||||
Interest | Investment | Foreign | Accumulated | Interest | Investment | Foreign | Accumulated | ||||||||||||||||||||||||||
rate swap | securities | currency | other | rate swap | securities | currency | other | ||||||||||||||||||||||||||
and cap | translation | comprehensive | and cap | translation | comprehensive | ||||||||||||||||||||||||||||
agreements | adjustments | income (loss) | agreements | adjustments | income (loss) | ||||||||||||||||||||||||||||
Beginning balance | $ | (2,344 | ) | $ | 3,120 | $ | (3,421 | ) | $ | (2,645 | ) | $ | (15,402 | ) | $ | 1,310 | $ | (1,205 | ) | $ | (15,297 | ) | |||||||||||
Unrealized (losses) gains | (4,111 | ) | 530 | 28 | (3,553 | ) | (3,877 | ) | 1,011 | (2,106 | ) | (4,972 | ) | ||||||||||||||||||||
Related income tax benefit (expense) | 1,606 | (199 | ) | — | 1,407 | 1,508 | (393 | ) | — | 1,115 | |||||||||||||||||||||||
(2,505 | ) | 331 | 28 | (2,146 | ) | (2,369 | ) | 618 | (2,106 | ) | (3,857 | ) | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income into net income | 5,513 | (340 | ) | — | 5,173 | 4,104 | (155 | ) | — | 3,949 | |||||||||||||||||||||||
Related tax | (2,154 | ) | 133 | — | (2,021 | ) | (1,597 | ) | 61 | — | (1,536 | ) | |||||||||||||||||||||
3,359 | (207 | ) | — | 3,152 | 2,507 | (94 | ) | — | 2,413 | ||||||||||||||||||||||||
Ending balance | $ | (1,490 | ) | $ | 3,244 | $ | (3,393 | ) | $ | (1,639 | ) | $ | (15,264 | ) | $ | 1,834 | $ | (3,311 | ) | $ | (16,741 | ) | |||||||||||
The reclassification of net swap and cap realized losses into income are recorded as debt expense in the corresponding condensed consolidated statements of income. See Note 8 to the condensed consolidated financial statements for further details. | |||||||||||||||||||||||||||||||||
The reclassification of net investment realized gains into income are recorded in other income in the corresponding condensed consolidated statements of income. See Note 4 to the condensed consolidated financial statements for further details. |
Acquisitions
Acquisitions | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Acquisitions | ' | ||||
13. Acquisitions | |||||
During the first three months of 2014, the Company acquired dialysis businesses and other businesses consisting of one dialysis center located in the U.S. and other medical businesses for a total of $67,857 in net cash and deferred purchase price obligations totaling $10,100. The assets and liabilities for all acquisitions were recorded at their estimated fair values at the dates of the acquisitions and are included in the Company’s condensed consolidated financial statements and operating results from the designated effective dates of the acquisitions. Certain income tax amounts are pending final evaluation and quantification of any pre-acquisition tax contingencies. In addition, valuation of medical claims reserves and certain other working capital items relating to several of these acquisitions are pending final quantification. | |||||
The following table summarizes the assets acquired and liabilities assumed in these transactions and recognized at their acquisition dates at estimated fair values: | |||||
Three months ended | |||||
March 31, 2014 | |||||
Tangible assets, principally leasehold improvements and equipment, net of cash | $ | 646 | |||
Amortizable intangible and other long-term assets | 48,443 | ||||
Goodwill | 29,109 | ||||
Other adjustments | (241 | ) | |||
Aggregate purchase price | $ | 77,957 | |||
Amortizable intangible assets acquired during the first three months of 2014 had weighted-average estimated useful lives of 10 years. The total amount of goodwill deductible for tax purposes associated with these acquisitions was approximately $19,196. | |||||
Contingent earn-out obligations | |||||
The Company has several contingent earn-out obligations associated with acquisitions that could result in the Company paying the former shareholders of those acquired companies a total of up to $131,500 or a certain portion of that amount if certain EBITDA performance targets and quality margins are met over the next three years, if certain percentages of operating income are met over the next five years or if certain percentages of other annual EBITDA targets are met. As of March 31, 2014, the Company has estimated the fair value of these contingent earn-out obligations to be $36,691. | |||||
Contingent earn-out obligations will be remeasured to fair value at each reporting date until the contingencies are resolved with changes in the liability due to the re-measurement recorded in earnings. See Note 15 to the condensed consolidated financial statements for further details. Of the total contingent earn-out obligations of $36,691 recognized at March 31, 2014, a total of $6,577 is included in other accrued liabilities and the remaining $30,114 is included in other long-term liabilities in the Company’s condensed consolidated balance sheet. | |||||
The following is a reconciliation of changes in the contingent earn-out obligations for the three months ended March 31, 2014: | |||||
Beginning balance, January 1, 2014 | $ | 28,058 | |||
Contingent earn-out obligations associated with acquisitions | 9,875 | ||||
Remeasurement of fair value for other contingent earn-outs | (1,026 | ) | |||
Payments of contingent earn-outs | (216 | ) | |||
$ | 36,691 | ||||
Variable_interest_entities
Variable interest entities | 3 Months Ended |
Mar. 31, 2014 | |
Variable interest entities | ' |
14. Variable interest entities | |
The Company relies on the operating activities of certain entities that it does not directly own or control, but over which it has indirect influence and of which it is considered the primary beneficiary. These entities are subject to the consolidation guidance applicable to variable interest entities (VIEs). | |
Under U.S. GAAP, VIEs typically include (i) those for which the entity’s equity is not sufficient to finance its activities without additional subordinated financial support; (ii) those for which the equity holders as a group lack the power to direct the activities that most significantly influence the entity’s economic performance, the obligation to absorb the entity’s expected losses, or the right to receive the entity’s expected returns; or (iii) those for which the voting rights of some investors are not proportional to their obligations to absorb the entity’s losses. | |
Under U.S. GAAP, the Company has determined that substantially all of the entities it is associated with that qualify as VIEs must be included in its consolidated financial statements. The Company manages these entities and provides operating and capital funding as necessary for the entities to accomplish their operational and strategic objectives. A number of these entities are subject to nominee share ownership or share transfer restriction agreements that effectively transfer the majority of the economic risks and rewards of their ownership to the Company. In other cases the Company’s management agreements with these entities include both financial terms and protective and participating rights to the entities’ operating, strategic and non-clinical governance decisions which transfer substantial powers over and economic responsibility for the entities to the Company. In some cases such entities are subject to broad exclusivity or noncompetition restrictions that benefit the Company. Further, in some cases the Company has contractual arrangements with its related party nominee owners that effectively indemnify these parties from the economic losses from, or entitle the Company to the economic benefits of, these entities. | |
The analyses upon which these consolidation determinations rest are complex, involve uncertainties, and require significant judgment on various matters, some of which could be subject to different interpretations. At March 31, 2014, these consolidated financial statements include total assets of VIEs of $519,107 and total liabilities and noncontrolling interests of VIEs to third parties of $327,732. | |
The Company also sponsors certain deferred compensation plans whose trusts qualify as VIEs and the Company consolidates each of these plans as their primary beneficiary. The assets of these plans are recorded in short-term or long-term investments with matching offsetting liabilities recorded in accrued compensation and benefits and other long-term liabilities. See Note 4 for disclosures on the assets of these consolidated non-qualified deferred compensation plans. |
Fair_value_of_financial_instru
Fair value of financial instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair value of financial instruments | ' | ||||||||||||||||
15. Fair value of financial instruments | |||||||||||||||||
The Company measures the fair value of certain assets, liabilities and noncontrolling interests subject to put provisions (temporary equity) based upon certain valuation techniques that include observable or unobservable inputs and assumptions that market participants would use in pricing these assets, liabilities, temporary equity and commitments. The Company also has classified certain assets, liabilities and temporary equity that are measured at fair value into the appropriate fair value hierarchy levels as defined by the FASB. | |||||||||||||||||
The following table summarizes the Company’s assets, liabilities and temporary equity measured at fair value on a recurring basis as of March 31, 2014: | |||||||||||||||||
Total | Quoted prices in | Significant other | Significant | ||||||||||||||
active markets for | observable inputs | unobservable | |||||||||||||||
identical assets | (Level 2) | inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | $ | 20,532 | $ | 20,532 | $ | — | $ | — | |||||||||
Interest rate cap agreements | $ | 6,219 | $ | — | $ | 6,219 | $ | — | |||||||||
Interest rate swap agreements | $ | 10,081 | $ | — | $ | 10,081 | $ | — | |||||||||
Funds on deposit with third parties | $ | 74,954 | $ | 74,954 | $ | — | $ | — | |||||||||
Liabilities | |||||||||||||||||
Contingent earn-out obligations | $ | 36,691 | $ | — | $ | — | $ | 36,691 | |||||||||
Interest rate swap agreements | $ | 10,905 | $ | — | $ | 10,905 | $ | — | |||||||||
Temporary equity | |||||||||||||||||
Noncontrolling interests subject to put provisions | $ | 692,780 | $ | — | $ | — | $ | 692,780 | |||||||||
The available for sale securities represent investments in various open-ended registered investment companies, or mutual funds, and are recorded at fair value based upon quoted prices reported by each mutual fund. See Note 4 to these condensed consolidated financial statements for further discussion. | |||||||||||||||||
The interest rate swap and cap agreements are recorded at fair value based upon valuation models utilizing the income approach and commonly accepted valuation techniques that use inputs from closing prices for similar assets and liabilities in active markets as well as other relevant observable market inputs at quoted intervals such as current interest rates, forward yield curves, implied volatility and credit default swap pricing. The Company does not believe the ultimate amount that could be realized upon settlement of these interest rate swap and cap agreements would be materially different from the fair values currently reported. See Note 8 to the condensed consolidated financial statements for further discussion. | |||||||||||||||||
The funds on deposit with third parties represent funds held with various third parties as required by regulation or contract and invested by those parties in various investments, which are measured at estimated fair value based primarily on quoted market prices. | |||||||||||||||||
The estimated fair value measurements of contingent earn-out obligations are primarily based on unobservable inputs including projected EBITDA, estimated probabilities of achieving gross margin of certain medical procedures and the estimated probability of earn-out payments being made using an option pricing technique and a simulation model for expected EBITDA and operating income. In addition, a probability adjusted model was used to estimate the fair values of the quality results amounts. The estimated fair value of these contingent earn-out obligations will be remeasured as of each reporting date and could fluctuate based upon any significant changes in key assumptions, such as changes in the Company credit risk adjusted rate that is used to discount obligations to present value. | |||||||||||||||||
See Note 10 to these condensed consolidated financial statements for a discussion of the Company’s methodology for estimating the fair value of noncontrolling interests subject to put obligations. | |||||||||||||||||
Other financial instruments consist primarily of cash, accounts receivable, accounts payable, other accrued liabilities and debt. The balances of the non-debt financial instruments are presented in the consolidated financial statements at March 31, 2014 at their approximate fair values due to the short-term nature of their settlements. The carrying balance of the Company’s Senior Secured Credit Facilities totaled $5,333,911 as of March 31, 2014, and the fair value was approximately $5,370,500 based upon quoted market prices. The fair value of the Company’s senior notes was approximately $2,971,200 at March 31, 2014 based upon quoted market prices, as compared to the carrying amount of $2,800,000. |
Segment_reporting
Segment reporting | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment reporting | ' | ||||||||
16. Segment reporting | |||||||||
The Company primarily operates two major lines of business, the largest being its U.S. dialysis and related lab services business and the other being HCP. The Company also operates various other ancillary services and strategic initiatives. | |||||||||
As of March 31, 2014, the ancillary services and strategic initiatives consisted primarily of pharmacy services, disease management services, vascular access services, ESRD clinical research programs, physician services, direct primary care and the Company’s international dialysis operations. | |||||||||
The Company’s operating segments have been defined based on the separate financial information that is regularly produced and reviewed by the Company’s chief operating decision makers in making decisions about allocating resources to and assessing the financial results of the Company’s different business units. The chief operating decision maker for the Company, its U.S. dialysis business and its ancillary services and strategic initiatives, is its Chief Executive Officer. The chief operating decision makers for the HCP business are the Chief Executive Officer and HCP’s Chief Executive Officer. | |||||||||
The Company’s separate operating segments include its U.S. dialysis and related lab services business, its HCP operations in each region, each of its ancillary services and strategic initiatives, and its international operations in the European and Middle Eastern, Asia Pacific, and Latin American regions. The U.S. dialysis and related lab services business and the HCP business each qualify as separately reportable segments, and all of the other ancillary services and strategic initiatives operating segments, including the international operating segments, have been combined and disclosed in the other segments category. | |||||||||
The Company’s operating segment financial information included in this report is prepared on the internal management reporting basis that the chief operating decision maker uses to allocate resources and assess the financial results of the operating segments. For internal management reporting, segment operations include direct segment operating expenses but exclude corporate support expenses, which consists primarily of indirect labor, benefits and long-term incentive based compensation of certain departments which provide support to all of the Company’s different operating lines of business. Corporate support expenses in the first quarter of 2014, have been reduced by internal management fees paid by the Company’s ancillary lines of businesses. | |||||||||
The following is a summary of segment net revenues, segment operating margin (loss), and a reconciliation of segment operating margin to consolidated income from continuing operations before income taxes: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Segment net revenues: | |||||||||
U.S. dialysis and related lab services | |||||||||
Patient service revenues: | |||||||||
External sources | $ | 2,028,743 | $ | 1,908,783 | |||||
Intersegment revenues | 7,832 | 7,511 | |||||||
Total dialysis and related lab services revenues | 2,036,575 | 1,916,294 | |||||||
Less: Provision for uncollectible accounts | (81,463 | ) | (67,071 | ) | |||||
Net dialysis and related lab services patient service revenues | 1,955,112 | 1,849,223 | |||||||
Other revenues(1) | 3,154 | 2,895 | |||||||
Total net dialysis and related lab services revenues | 1,958,266 | 1,852,118 | |||||||
HCP | |||||||||
HCP revenues: | |||||||||
Capitated revenues | 771,542 | 746,071 | |||||||
Net patient service revenues | 56,222 | 53,602 | |||||||
Other revenues(2) | 12,523 | 4,086 | |||||||
Intersegment capitated and other revenues | 152 | — | |||||||
Total revenues | 840,439 | 803,759 | |||||||
Other—Ancillary services and strategic initiatives | |||||||||
Net patient service revenues—U.S. | 4,153 | 3,439 | |||||||
Net patient service revenues—International. | 23,246 | 11,063 | |||||||
Capitated revenues | 16,023 | 16,544 | |||||||
Other external sources—U.S. | 206,955 | 148,758 | |||||||
Other external sources—International. | 1,678 | 1,412 | |||||||
Intersegment revenues | 4,819 | 2,779 | |||||||
Total ancillary services and strategic initiatives revenues | 256,874 | 183,995 | |||||||
Total net segment revenues | 3,055,579 | 2,839,872 | |||||||
Elimination of intersegment revenues | (12,803 | ) | (10,290 | ) | |||||
Consolidated net revenues | $ | 3,042,776 | $ | 2,829,582 | |||||
Segment operating margin (loss): | |||||||||
U.S. dialysis and related lab services | $ | 386,700 | $ | 84,813 | |||||
HCP | 53,953 | 108,084 | |||||||
Other—Ancillary services and strategic initiatives | 1,678 | (14,601 | ) | ||||||
Total segment margin | 442,331 | 178,296 | |||||||
Reconciliation of segment operating margin to consolidated income from continuing operations before income taxes: | |||||||||
Corporate support expenses | (1,106 | ) | (11,435 | ) | |||||
Consolidated operating income | 441,225 | 166,861 | |||||||
Debt expense | (106,335 | ) | (105,817 | ) | |||||
Other income, net | 1,698 | 598 | |||||||
Consolidated income from continuing operations before income taxes | $ | 336,588 | $ | 61,642 | |||||
(1) | Includes management fees for providing management and administrative services to dialysis centers that are wholly-owned by third parties or centers in which the Company owns a minority equity investment. | ||||||||
(2) | Includes payments received for medical consulting services and management fees for providing management and administrative services to an unconsolidated joint venture that provides medical services in which the Company owns a 50% interest. | ||||||||
For the three months ended March 31, 2014, depreciation and amortization expense for the U.S. dialysis and related lab services, HCP and the ancillary services and strategic initiatives was $96,443, $41,737 and $4,399, respectively. | |||||||||
For the three months ended March 31, 2013, depreciation and amortization expense for the U.S. dialysis and related lab services, HCP and the ancillary services and strategic initiatives was $84,953, $38,017 and $2,939, respectively. | |||||||||
Summary of assets by segment is as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Segment assets | |||||||||
U.S. dialysis and related lab services | $ | 10,451,802 | $ | 10,248,993 | |||||
HCP | 6,320,690 | 6,265,767 | |||||||
Other—Ancillary services and strategic initiatives | 625,850 | 584,117 | |||||||
Consolidated assets | $ | 17,398,342 | $ | 17,098,877 | |||||
For the three months ended March 31, 2014, the total amount of expenditures for property and equipment, excluding capital leases for the U.S. dialysis and related lab services was $113,230, $4,502 for HCP and was $8,830 for the ancillary services and strategic initiatives. | |||||||||
For the three months ended March 31, 2013, the total amount of expenditures for property and equipment, excluding capital leases for U.S. dialysis and related lab services, was $102,076, $6,539 for HCP and was $8,109 for the ancillary services and strategic initiatives. |
Changes_in_DaVita_HealthCare_P
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries | ' | ||||||||
17. Changes in DaVita HealthCare Partners Inc.’s ownership interest in consolidated subsidiaries | |||||||||
The effects of changes in DaVita HealthCare Partners Inc.’s ownership interest on the Company’s equity are as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 183,289 | $ | 30,164 | |||||
Increase (decrease) in paid-in capital for sales of noncontrolling interests | 81 | (809 | ) | ||||||
Increase in paid-in capital for adjustments in ownership interests | 210 | — | |||||||
Net transfers to noncontrolling interests | 291 | (809 | ) | ||||||
Change from net income attributable to DaVita HealthCare Partners Inc. and transfers to noncontrolling interests | $ | 183,580 | $ | 29,355 | |||||
New_accounting_standards
New accounting standards | 3 Months Ended |
Mar. 31, 2014 | |
New accounting standards | ' |
18. New accounting standards | |
In April 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in the ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. The amendments in this ASU enhance convergence between U.S. GAAP and International Financial Reporting Standards (IFRS). Part of the new definition of discontinued operation is based on elements of the definition of discontinued operations in IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations. The amendments in the ASU are effective in the first quarter of 2015 for public organizations with calendar year ends. Early adoption is permitted. The adoption of this standard will not have a material impact on the Company’s condensed consolidated financial statements. |
Condensed_consolidating_financ
Condensed consolidating financial statements | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Condensed consolidating financial statements | ' | ||||||||||||||||||||
19. Condensed consolidating financial statements | |||||||||||||||||||||
The following information is presented in accordance with Rule 3-10 of Regulation S-X. The operating and investing activities of the separate legal entities included in the Company’s consolidated financial statements are fully interdependent and integrated. Revenues and operating expenses of the separate legal entities include intercompany charges for management and other administrative services. The Company’s senior notes are guaranteed by substantially all of its domestic wholly-owned subsidiaries. Each of the guarantor subsidiaries has guaranteed the notes on a joint and several basis. However, the guarantor subsidiaries can be released from their obligations in the event of a sale or other disposition of all or substantially all of the assets of such subsidiary, including by merger or consolidation or the sale of all equity interests in such subsidiary owned by the Company, if such subsidiary guarantor is designated as an unrestricted subsidiary or otherwise ceases to be a restricted subsidiary, and if such subsidiary guarantor no longer guaranties any other indebtedness of the Company. Non-wholly-owned subsidiaries, certain wholly-owned subsidiaries, foreign subsidiaries, joint ventures, partnerships, non-owned entities and third parties are not guarantors of these obligations. | |||||||||||||||||||||
Condensed Consolidating Statements of Income | |||||||||||||||||||||
For the three months ended March 31, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 1,513,748 | $ | 598,887 | $ | 1,463 | $ | 2,114,098 | |||||||||||
Less: Provision for uncollectible accounts | — | (49,906 | ) | (33,291 | ) | — | (83,197 | ) | |||||||||||||
Net patient service revenues | — | 1,463,842 | 565,596 | 1,463 | 2,030,901 | ||||||||||||||||
Capitated revenues | — | 697,081 | 366,129 | (275,645 | ) | 787,565 | |||||||||||||||
Other revenues | 163,043 | 393,304 | 32,291 | (364,328 | ) | 224,310 | |||||||||||||||
Total net revenues | 163,043 | 2,554,227 | 964,016 | (638,510 | ) | 3,042,776 | |||||||||||||||
Operating expenses | 112,297 | 2,259,571 | 868,193 | (638,510 | ) | 2,601,551 | |||||||||||||||
Operating income | 50,746 | 294,656 | 95,823 | — | 441,225 | ||||||||||||||||
Debt expense | (105,283 | ) | (91,437 | ) | (9,739 | ) | 100,124 | (106,335 | ) | ||||||||||||
Other income (expense) | 99,943 | 1,556 | 323 | (100,124 | ) | 1,698 | |||||||||||||||
Income tax expense | 18,389 | 104,030 | 2,432 | — | 124,851 | ||||||||||||||||
Equity earnings in subsidiaries | 156,272 | 55,527 | — | (211,799 | ) | — | |||||||||||||||
Net income | 183,289 | 156,272 | 83,975 | (211,799 | ) | 211,737 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (28,448 | ) | (28,448 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 183,289 | $ | 156,272 | $ | 83,975 | $ | (240,247 | ) | $ | 183,289 | ||||||||||
For the three months ended March 31, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 1,452,220 | $ | 536,658 | $ | (9,005 | ) | $ | 1,979,873 | ||||||||||
Less: Provision for uncollectible accounts | — | (63,857 | ) | (6,200 | ) | — | (70,057 | ) | |||||||||||||
Net patient service revenues | — | 1,388,363 | 530,458 | (9,005 | ) | 1,909,816 | |||||||||||||||
Capitated revenues | — | 360,024 | 403,675 | (1,084 | ) | 762,615 | |||||||||||||||
Other revenues | 135,375 | 358,457 | 17,657 | (354,338 | ) | 157,151 | |||||||||||||||
Total net revenues | 135,375 | 2,106,844 | 951,790 | (364,427 | ) | 2,829,582 | |||||||||||||||
Operating expenses | 120,504 | 2,081,223 | 825,421 | (364,427 | ) | 2,662,721 | |||||||||||||||
Operating income | 14,871 | 25,621 | 126,369 | — | 166,861 | ||||||||||||||||
Debt expense | (105,331 | ) | (94,715 | ) | (10,723 | ) | 104,952 | (105,817 | ) | ||||||||||||
Other income (expense) | 100,221 | 5,967 | (638 | ) | (104,952 | ) | 598 | ||||||||||||||
Income tax expense (benefit) | 4,597 | (3,212 | ) | 13,759 | — | 15,144 | |||||||||||||||
Equity earnings in subsidiaries | 25,000 | 66,077 | — | (91,077 | ) | — | |||||||||||||||
Income from continuing operations | 30,164 | 6,162 | 101,249 | (91,077 | ) | 46,498 | |||||||||||||||
Discontinued operations | — | — | 13,236 | — | 13,236 | ||||||||||||||||
Net income | 30,164 | 6,162 | 114,485 | (91,077 | ) | 59,734 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (29,570 | ) | (29,570 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 30,164 | $ | 6,162 | $ | 114,485 | $ | (120,647 | ) | $ | 30,164 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||||||
For the three months ended March 31, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 183,289 | $ | 156,272 | $ | 83,975 | $ | (211,799 | ) | $ | 211,737 | ||||||||||
Other comprehensive income | 1,006 | — | — | — | 1,006 | ||||||||||||||||
Total comprehensive income | 184,295 | 156,272 | 83,975 | (211,799 | ) | 212,743 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (28,448 | ) | (28,448 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 184,295 | $ | 156,272 | $ | 83,975 | $ | (240,247 | ) | $ | 184,295 | ||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Net income | $ | 30,164 | $ | 6,162 | $ | 114,485 | $ | (91,077 | ) | $ | 59,734 | ||||||||||
Other comprehensive loss | (1,444 | ) | — | — | — | (1,444 | ) | ||||||||||||||
Total comprehensive income | 28,720 | 6,162 | 114,485 | (91,077 | ) | 58,290 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (29,570 | ) | (29,570 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 28,720 | $ | 6,162 | $ | 114,485 | $ | (120,647 | ) | $ | 28,720 | ||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||
As of March 31, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash and cash equivalents | $ | 793,890 | $ | 142,955 | $ | 171,224 | $ | — | $ | 1,108,069 | |||||||||||
Accounts receivable, net | — | 974,294 | 565,434 | — | 1,539,728 | ||||||||||||||||
Other current assets | 28,046 | 933,748 | 97,642 | — | 1,059,436 | ||||||||||||||||
Total current assets | 821,936 | 2,050,997 | 834,300 | — | 3,707,233 | ||||||||||||||||
Property and equipment, net | 181,470 | 1,380,425 | 662,544 | — | 2,224,439 | ||||||||||||||||
Amortizable intangibles, net | 72,736 | 1,890,759 | 62,327 | — | 2,025,822 | ||||||||||||||||
Investments in subsidiaries | 8,451,785 | 1,407,504 | — | (9,859,289 | ) | — | |||||||||||||||
Intercompany receivables | 3,820,966 | — | 453,436 | (4,274,402 | ) | — | |||||||||||||||
Other long-term assets and investments | 60,391 | 69,829 | 68,449 | — | 198,669 | ||||||||||||||||
Goodwill | — | 7,878,857 | 1,363,322 | — | 9,242,179 | ||||||||||||||||
Total assets | $ | 13,409,284 | $ | 14,678,371 | $ | 3,444,378 | $ | (14,133,691 | ) | $ | 17,398,342 | ||||||||||
Current liabilities | 434,428 | 1,757,191 | 374,555 | — | 2,566,174 | ||||||||||||||||
Intercompany payables | — | 3,264,363 | 1,010,039 | (4,274,402 | ) | — | |||||||||||||||
Long-term debt and other long-term liabilities | 7,873,226 | 1,205,032 | 223,494 | — | 9,301,752 | ||||||||||||||||
Noncontrolling interests subject to put provisions | 442,063 | — | — | 250,717 | 692,780 | ||||||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,659,567 | 8,451,785 | 1,407,504 | (9,859,289 | ) | 4,659,567 | |||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 428,786 | (250,717 | ) | 178,069 | |||||||||||||||
Total equity | 4,659,567 | 8,451,785 | 1,836,290 | (10,110,006 | ) | 4,837,636 | |||||||||||||||
Total liabilities and equity | $ | 13,409,284 | $ | 14,678,371 | $ | 3,444,378 | $ | (14,133,691 | ) | $ | 17,398,342 | ||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Cash and cash equivalents | $ | 602,188 | $ | 175,004 | $ | 169,057 | $ | — | $ | 946,249 | |||||||||||
Accounts receivable, net | — | 939,543 | 545,620 | — | 1,485,163 | ||||||||||||||||
Other current assets | 27,910 | 904,852 | 108,104 | — | 1,040,866 | ||||||||||||||||
Total current assets | 630,098 | 2,019,399 | 822,781 | — | 3,472,278 | ||||||||||||||||
Property and equipment, net | 177,633 | 1,378,017 | 633,761 | — | 2,189,411 | ||||||||||||||||
Amortizable intangibles, net | 77,531 | 1,882,685 | 64,157 | — | 2,024,373 | ||||||||||||||||
Investments in subsidiaries | 8,231,059 | 1,391,655 | — | (9,622,714 | ) | — | |||||||||||||||
Intercompany receivables | 3,983,214 | — | 480,993 | (4,464,207 | ) | — | |||||||||||||||
Other long-term assets and investments | 61,391 | 70,728 | 67,722 | — | 199,841 | ||||||||||||||||
Goodwill | — | 7,850,910 | 1,362,064 | — | 9,212,974 | ||||||||||||||||
Total assets | $ | 13,160,926 | $ | 14,593,394 | $ | 3,431,478 | $ | (14,086,921 | ) | $ | 17,098,877 | ||||||||||
Current liabilities | $ | 328,875 | $ | 1,776,419 | $ | 356,755 | $ | — | $ | 2,462,049 | |||||||||||
Intercompany payables | — | 3,426,433 | 1,037,774 | (4,464,207 | ) | — | |||||||||||||||
Long-term debt and other long-term liabilities | 7,948,390 | 1,159,483 | 226,114 | — | 9,333,987 | ||||||||||||||||
Noncontrolling interests subject to put provisions | 451,182 | — | — | 246,118 | 697,300 | ||||||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,432,479 | 8,231,059 | 1,391,655 | (9,622,714 | ) | 4,432,479 | |||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 419,180 | (246,118 | ) | 173,062 | |||||||||||||||
Total equity | 4,432,479 | 8,231,059 | 1,810,835 | (9,868,832 | ) | 4,605,541 | |||||||||||||||
Total liabilities and equity | $ | 13,160,926 | $ | 14,593,394 | $ | 3,431,478 | $ | (14,086,921 | ) | $ | 17,098,877 | ||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||
For the three months ended March 31, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 183,289 | $ | 156,272 | $ | 83,975 | $ | (211,799 | ) | $ | 211,737 | ||||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (28,933 | ) | (2,155 | ) | 26,659 | 211,799 | 207,370 | ||||||||||||||
Net cash provided by operating activities | 154,356 | 154,117 | 110,634 | — | 419,107 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Additions of property and equipment, net | (11,100 | ) | (60,113 | ) | (55,349 | ) | — | (126,562 | ) | ||||||||||||
Acquisitions | — | (67,857 | ) | — | — | (67,857 | ) | ||||||||||||||
Proceeds from asset and business sales | — | 56 | — | — | 56 | ||||||||||||||||
Purchases/proceeds from investment sales and other items | (776 | ) | 135 | (789 | ) | — | (1,430 | ) | |||||||||||||
Net cash used in investing activities | (11,876 | ) | (127,779 | ) | (56,138 | ) | — | (195,793 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Long-term debt and related financing costs, net | (62,853 | ) | (1,579 | ) | (721 | ) | — | (65,153 | ) | ||||||||||||
Intercompany borrowing | 90,289 | (57,572 | ) | (32,717 | ) | — | — | ||||||||||||||
Other items | 21,786 | 764 | (19,522 | ) | — | 3,028 | |||||||||||||||
Net cash provided by (used in) financing activities | 49,222 | (58,387 | ) | (52,960 | ) | — | (62,125 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | 631 | — | 631 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 191,702 | (32,049 | ) | 2,167 | — | 161,820 | |||||||||||||||
Cash and cash equivalents at beginning of period | 602,188 | 175,004 | 169,057 | — | 946,249 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 793,890 | $ | 142,955 | $ | 171,224 | $ | — | $ | 1,108,069 | |||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 30,164 | $ | 6,162 | $ | 114,485 | $ | (91,077 | ) | $ | 59,734 | ||||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (35,465 | ) | 311,971 | (48,110 | ) | 91,077 | 319,473 | ||||||||||||||
Net cash (used in) provided by operating activities | (5,301 | ) | 318,133 | 66,375 | — | 379,207 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Additions of property and equipment, net | (19,582 | ) | (51,574 | ) | (45,568 | ) | — | (116,724 | ) | ||||||||||||
Acquisitions | — | (81,505 | ) | (9,993 | ) | — | (91,498 | ) | |||||||||||||
Proceeds from asset sales | 60,650 | 1,707 | — | — | 62,357 | ||||||||||||||||
Purchases of investments and other items | (125 | ) | (21 | ) | — | — | (146 | ) | |||||||||||||
Net cash provided by (used in) investing activities | 40,943 | (131,393 | ) | (55,561 | ) | — | (146,011 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Long-term debt and related financing costs, net | (50,725 | ) | (3,907 | ) | (9,055 | ) | — | (63,687 | ) | ||||||||||||
Intercompany borrowing | 111,085 | (130,566 | ) | 19,481 | — | — | |||||||||||||||
Other items | 12,790 | 4,174 | (20,669 | ) | — | (3,705 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 73,150 | (130,299 | ) | (10,243 | ) | — | (67,392 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | 119 | — | 119 | ||||||||||||||||
Net increase in cash and cash equivalents | 108,792 | 56,441 | 690 | — | 165,923 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 195,037 | 166,107 | 172,604 | — | 533,748 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 303,829 | $ | 222,548 | $ | 173,294 | $ | — | $ | 699,671 | |||||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Reconciliations of Numerators and Denominators Used to Calculate Basic and Diluted Earnings Per Share | ' | ||||||||
The reconciliations of the numerators and denominators used to calculate basic and diluted earnings per share are as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Basic: | |||||||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $ | 183,289 | $ | 16,915 | |||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | — | 13,249 | |||||||
Net income attributable to DaVita HealthCare Partners Inc. for basic earnings per share calculation | $ | 183,289 | $ | 30,164 | |||||
Weighted average shares outstanding during the period | 213,564 | 211,157 | |||||||
Vested stock units | 5 | 6 | |||||||
Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger | (2,194 | ) | (2,194 | ) | |||||
Weighted average shares for basic earnings per share calculation | 211,375 | 208,969 | |||||||
Basic income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $ | 0.87 | $ | 0.08 | |||||
Basic income from discontinued operations per share attributable to DaVita HealthCare Partners Inc. | $ | — | $ | 0.06 | |||||
Basic net income per share attributable to DaVita HealthCare Partners Inc. | $ | 0.87 | $ | 0.14 | |||||
Diluted: | |||||||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $ | 183,289 | $ | 16,915 | |||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | — | 13,249 | |||||||
Net income attributable to DaVita HealthCare Partners Inc. for diluted earnings per share calculation | $ | 183,289 | $ | 30,164 | |||||
Weighted average shares outstanding during the period | 213,564 | 211,157 | |||||||
Vested stock units | 5 | 6 | |||||||
Assumed incremental shares from stock plans | 2,550 | 2,964 | |||||||
Weighted average shares for diluted earnings per share calculation | 216,119 | 214,127 | |||||||
Diluted income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $ | 0.85 | $ | 0.08 | |||||
Diluted income from discontinued operations per share attributable to DaVita HealthCare Partners Inc. | $ | — | $ | 0.06 | |||||
Diluted net income per share attributable to DaVita HealthCare Partners Inc. | $ | 0.85 | $ | 0.14 | |||||
Anti-dilutive stock-settled awards excluded from calculation(1) | 2,999 | 2,187 | |||||||
(1) | Shares associated with stock-settled stock appreciation rights that are excluded from the diluted denominator calculation because they are anti-dilutive under the treasury stock method. |
Investments_in_debt_and_equity1
Investments in debt and equity securities and other investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
The Company’s investments in securities consist of the following: | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Held to | Available | Total | Held to | Available | Total | ||||||||||||||||||||
maturity | for sale | maturity | for sale | ||||||||||||||||||||||
Certificates of deposit and money market funds due within one year | $ | 6,604 | $ | — | $ | 6,604 | $ | 5,601 | $ | — | $ | 5,601 | |||||||||||||
Investments in mutual funds and common stock | — | 20,532 | 20,532 | — | 19,421 | 19,421 | |||||||||||||||||||
$ | 6,604 | $ | 20,532 | $ | 27,136 | $ | 5,601 | $ | 19,421 | $ | 25,022 | ||||||||||||||
Short-term investments | $ | 6,604 | $ | 1,476 | $ | 8,080 | $ | 5,601 | $ | 1,200 | $ | 6,801 | |||||||||||||
Long-term investments | — | 19,056 | 19,056 | — | 18,221 | 18,221 | |||||||||||||||||||
$ | 6,604 | $ | 20,532 | $ | 27,136 | $ | 5,601 | $ | 19,421 | $ | 25,022 | ||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Changes in Goodwill by Reportable Segments | ' | ||||||||||||||||
Changes in goodwill by reportable segments were as follows: | |||||||||||||||||
Three months ended March 31, 2014 | |||||||||||||||||
U.S. dialysis and | HCP | Other-ancillary | Consolidated total | ||||||||||||||
related lab services | services and | ||||||||||||||||
strategic initiatives | |||||||||||||||||
Balance at December 31, 2013 | $ | 5,469,473 | $ | 3,516,162 | $ | 227,339 | $ | 9,212,974 | |||||||||
Acquisitions | 2,915 | 26,194 | — | 29,109 | |||||||||||||
Other adjustments | — | — | 96 | 96 | |||||||||||||
Balance at March 31, 2014 | $ | 5,472,388 | $ | 3,542,356 | $ | 227,435 | $ | 9,242,179 | |||||||||
Year ended December 31, 2013 | |||||||||||||||||
U.S. dialysis and | HCP | Other-ancillary | Consolidated total | ||||||||||||||
related lab services | services and | ||||||||||||||||
strategic initiatives | |||||||||||||||||
Balance at December 31, 2012 | $ | 5,309,152 | $ | 3,506,571 | $ | 137,027 | $ | 8,952,750 | |||||||||
Acquisitions | 163,037 | 17,833 | 90,397 | 271,267 | |||||||||||||
Divestitures | (2,728 | ) | — | — | (2,728 | ) | |||||||||||
Other adjustments | 12 | (8,242 | ) | (85 | ) | (8,315 | ) | ||||||||||
Balance at December 31, 2013 | $ | 5,469,473 | $ | 3,516,162 | $ | 227,339 | $ | 9,212,974 | |||||||||
Health_care_costs_payable_Tabl
Health care costs payable (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Components of Changes in Health Care Costs Payable | ' | ||||
The following table shows the components of changes in the health care costs payable for the three months ended March 31, 2014: | |||||
Three monthsended | |||||
March 31, 2014 | |||||
Health care costs payable, beginning of the period | $ | 172,310 | |||
Add: Components of incurred health care costs | |||||
Current year | 380,918 | ||||
Prior years | 3,824 | ||||
Total incurred health care costs | 384,742 | ||||
Less: Claims paid | |||||
Current year | 220,478 | ||||
Prior years | 140,078 | ||||
Total claims paid | 360,556 | ||||
Health care costs payable, end of the period | $ | 196,496 | |||
Longterm_debt_Tables
Long-term debt (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Long Term Debt | ' | ||||||||||||||||||||
Long-term debt was comprised of the following: | |||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Senior Secured Credit Facilities: | |||||||||||||||||||||
Term Loan A | $ | 762,500 | $ | 800,000 | |||||||||||||||||
Term Loan A-3 | 1,265,625 | 1,282,500 | |||||||||||||||||||
Term Loan B | 1,693,125 | 1,697,500 | |||||||||||||||||||
Term Loan B-2 | 1,629,375 | 1,633,500 | |||||||||||||||||||
Senior notes | 2,800,000 | 2,800,000 | |||||||||||||||||||
Acquisition obligations and other notes payable | 66,825 | 67,352 | |||||||||||||||||||
Capital lease obligations | 163,106 | 152,751 | |||||||||||||||||||
Total debt principal outstanding | 8,380,556 | 8,433,603 | |||||||||||||||||||
Discount on long-term debt | (16,714 | ) | (17,675 | ) | |||||||||||||||||
8,363,842 | 8,415,928 | ||||||||||||||||||||
Less current portion | (292,220 | ) | (274,697 | ) | |||||||||||||||||
$ | 8,071,622 | $ | 8,141,231 | ||||||||||||||||||
Scheduled Maturities of Long-term Debt | ' | ||||||||||||||||||||
Scheduled maturities of long-term debt at March 31, 2014 were as follows: | |||||||||||||||||||||
2014 | 208,890 | ||||||||||||||||||||
2015 | 845,479 | ||||||||||||||||||||
2016 | 1,897,968 | ||||||||||||||||||||
2017 | 911,372 | ||||||||||||||||||||
2018 | 807,601 | ||||||||||||||||||||
2019 | 1,565,989 | ||||||||||||||||||||
Thereafter | 2,143,257 | ||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||
The following table summarizes the Company’s derivative instruments as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Derivatives designated as hedging | Balance sheet | Fair value | Balance sheet | Fair value | |||||||||||||||||
instruments | location | location | |||||||||||||||||||
Interest rate swap agreements | Other short-term liabilities | $ | 10,905 | Other short-term liabilities | $ | 12,069 | |||||||||||||||
Interest rate swap agreements | Other long-term assets | $ | 10,081 | Other long-term assets | $ | 10,004 | |||||||||||||||
Interest rate cap agreements | Other long-term assets | $ | 6,219 | Other long-term assets | $ | 7,567 | |||||||||||||||
Effects of Interest Rate Swap Agreements | ' | ||||||||||||||||||||
The following table summarizes the effects of the Company’s interest rate swap and cap agreements for the three months ended March 31, 2014 and 2013: | |||||||||||||||||||||
Amount of gains | Location of | Amount of | |||||||||||||||||||
(losses) recognized in | losses reclassified | losses reclassified | |||||||||||||||||||
OCI on interest rate swap | from accumulated | from accumulated | |||||||||||||||||||
and cap agreements | OCI into income | OCI into income | |||||||||||||||||||
Three months ended | Three months ended | ||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||
Derivatives designated as cash flow hedges | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Interest rate swap agreements | $ | (2,764 | ) | $ | (964 | ) | Debt expense | $ | (4,006 | ) | $ | (3,207 | ) | ||||||||
Interest rate cap agreements | (1,347 | ) | (2,913 | ) | Debt expense | (1,507 | ) | (897 | ) | ||||||||||||
Tax benefit | 1,606 | 1,508 | 2,154 | 1,597 | |||||||||||||||||
Total | $ | (2,505 | ) | $ | (2,369 | ) | $ | (3,359 | ) | $ | (2,507 | ) | |||||||||
Comprehensive_income_Tables
Comprehensive income (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Comprehensive income | ' | ||||||||||||||||||||||||||||||||
For the three months ended | For the three months ended | ||||||||||||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||||||||||||||||||||||
Interest | Investment | Foreign | Accumulated | Interest | Investment | Foreign | Accumulated | ||||||||||||||||||||||||||
rate swap | securities | currency | other | rate swap | securities | currency | other | ||||||||||||||||||||||||||
and cap | translation | comprehensive | and cap | translation | comprehensive | ||||||||||||||||||||||||||||
agreements | adjustments | income (loss) | agreements | adjustments | income (loss) | ||||||||||||||||||||||||||||
Beginning balance | $ | (2,344 | ) | $ | 3,120 | $ | (3,421 | ) | $ | (2,645 | ) | $ | (15,402 | ) | $ | 1,310 | $ | (1,205 | ) | $ | (15,297 | ) | |||||||||||
Unrealized (losses) gains | (4,111 | ) | 530 | 28 | (3,553 | ) | (3,877 | ) | 1,011 | (2,106 | ) | (4,972 | ) | ||||||||||||||||||||
Related income tax benefit (expense) | 1,606 | (199 | ) | — | 1,407 | 1,508 | (393 | ) | — | 1,115 | |||||||||||||||||||||||
(2,505 | ) | 331 | 28 | (2,146 | ) | (2,369 | ) | 618 | (2,106 | ) | (3,857 | ) | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income into net income | 5,513 | (340 | ) | — | 5,173 | 4,104 | (155 | ) | — | 3,949 | |||||||||||||||||||||||
Related tax | (2,154 | ) | 133 | — | (2,021 | ) | (1,597 | ) | 61 | — | (1,536 | ) | |||||||||||||||||||||
3,359 | (207 | ) | — | 3,152 | 2,507 | (94 | ) | — | 2,413 | ||||||||||||||||||||||||
Ending balance | $ | (1,490 | ) | $ | 3,244 | $ | (3,393 | ) | $ | (1,639 | ) | $ | (15,264 | ) | $ | 1,834 | $ | (3,311 | ) | $ | (16,741 | ) | |||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Aggregate Purchase Cost Allocations | ' | ||||
The following table summarizes the assets acquired and liabilities assumed in these transactions and recognized at their acquisition dates at estimated fair values: | |||||
Three months ended | |||||
March 31, 2014 | |||||
Tangible assets, principally leasehold improvements and equipment, net of cash | $ | 646 | |||
Amortizable intangible and other long-term assets | 48,443 | ||||
Goodwill | 29,109 | ||||
Other adjustments | (241 | ) | |||
Aggregate purchase price | $ | 77,957 | |||
Reconciliation of Changes in Contingent Earn-Out Obligations | ' | ||||
The following is a reconciliation of changes in the contingent earn-out obligations for the three months ended March 31, 2014: | |||||
Beginning balance, January 1, 2014 | $ | 28,058 | |||
Contingent earn-out obligations associated with acquisitions | 9,875 | ||||
Remeasurement of fair value for other contingent earn-outs | (1,026 | ) | |||
Payments of contingent earn-outs | (216 | ) | |||
$ | 36,691 | ||||
Fair_value_of_financial_instru1
Fair value of financial instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Assets, Liabilities and Temporary Equity Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
The following table summarizes the Company’s assets, liabilities and temporary equity measured at fair value on a recurring basis as of March 31, 2014: | |||||||||||||||||
Total | Quoted prices in | Significant other | Significant | ||||||||||||||
active markets for | observable inputs | unobservable | |||||||||||||||
identical assets | (Level 2) | inputs | |||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | $ | 20,532 | $ | 20,532 | $ | — | $ | — | |||||||||
Interest rate cap agreements | $ | 6,219 | $ | — | $ | 6,219 | $ | — | |||||||||
Interest rate swap agreements | $ | 10,081 | $ | — | $ | 10,081 | $ | — | |||||||||
Funds on deposit with third parties | $ | 74,954 | $ | 74,954 | $ | — | $ | — | |||||||||
Liabilities | |||||||||||||||||
Contingent earn-out obligations | $ | 36,691 | $ | — | $ | — | $ | 36,691 | |||||||||
Interest rate swap agreements | $ | 10,905 | $ | — | $ | 10,905 | $ | — | |||||||||
Temporary equity | |||||||||||||||||
Noncontrolling interests subject to put provisions | $ | 692,780 | $ | — | $ | — | $ | 692,780 | |||||||||
Segment_reporting_Tables
Segment reporting (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Summary of Segment Net Revenues, Segment Operating Income Loss and Reconciliation of Segment Income to Consolidated Income from Continuing Operations Before Income Taxes | ' | ||||||||
The following is a summary of segment net revenues, segment operating margin (loss), and a reconciliation of segment operating margin to consolidated income from continuing operations before income taxes: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Segment net revenues: | |||||||||
U.S. dialysis and related lab services | |||||||||
Patient service revenues: | |||||||||
External sources | $ | 2,028,743 | $ | 1,908,783 | |||||
Intersegment revenues | 7,832 | 7,511 | |||||||
Total dialysis and related lab services revenues | 2,036,575 | 1,916,294 | |||||||
Less: Provision for uncollectible accounts | (81,463 | ) | (67,071 | ) | |||||
Net dialysis and related lab services patient service revenues | 1,955,112 | 1,849,223 | |||||||
Other revenues(1) | 3,154 | 2,895 | |||||||
Total net dialysis and related lab services revenues | 1,958,266 | 1,852,118 | |||||||
HCP | |||||||||
HCP revenues: | |||||||||
Capitated revenues | 771,542 | 746,071 | |||||||
Net patient service revenues | 56,222 | 53,602 | |||||||
Other revenues(2) | 12,523 | 4,086 | |||||||
Intersegment capitated and other revenues | 152 | — | |||||||
Total revenues | 840,439 | 803,759 | |||||||
Other—Ancillary services and strategic initiatives | |||||||||
Net patient service revenues—U.S. | 4,153 | 3,439 | |||||||
Net patient service revenues—International. | 23,246 | 11,063 | |||||||
Capitated revenues | 16,023 | 16,544 | |||||||
Other external sources—U.S. | 206,955 | 148,758 | |||||||
Other external sources—International. | 1,678 | 1,412 | |||||||
Intersegment revenues | 4,819 | 2,779 | |||||||
Total ancillary services and strategic initiatives revenues | 256,874 | 183,995 | |||||||
Total net segment revenues | 3,055,579 | 2,839,872 | |||||||
Elimination of intersegment revenues | (12,803 | ) | (10,290 | ) | |||||
Consolidated net revenues | $ | 3,042,776 | $ | 2,829,582 | |||||
Segment operating margin (loss): | |||||||||
U.S. dialysis and related lab services | $ | 386,700 | $ | 84,813 | |||||
HCP | 53,953 | 108,084 | |||||||
Other—Ancillary services and strategic initiatives | 1,678 | (14,601 | ) | ||||||
Total segment margin | 442,331 | 178,296 | |||||||
Reconciliation of segment operating margin to consolidated income from continuing operations before income taxes: | |||||||||
Corporate support expenses | (1,106 | ) | (11,435 | ) | |||||
Consolidated operating income | 441,225 | 166,861 | |||||||
Debt expense | (106,335 | ) | (105,817 | ) | |||||
Other income, net | 1,698 | 598 | |||||||
Consolidated income from continuing operations before income taxes | $ | 336,588 | $ | 61,642 | |||||
(1) | Includes management fees for providing management and administrative services to dialysis centers that are wholly-owned by third parties or centers in which the Company owns a minority equity investment. | ||||||||
(2) | Includes payments received for medical consulting services and management fees for providing management and administrative services to an unconsolidated joint venture that provides medical services in which the Company owns a 50% interest. | ||||||||
Summary of Assets by Segment | ' | ||||||||
Summary of assets by segment is as follows: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Segment assets | |||||||||
U.S. dialysis and related lab services | $ | 10,451,802 | $ | 10,248,993 | |||||
HCP | 6,320,690 | 6,265,767 | |||||||
Other—Ancillary services and strategic initiatives | 625,850 | 584,117 | |||||||
Consolidated assets | $ | 17,398,342 | $ | 17,098,877 | |||||
Changes_in_DaVita_HealthCare_P1
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Effects of Changes in DaVita Inc's Ownership Interest on Company's Equity | ' | ||||||||
The effects of changes in DaVita HealthCare Partners Inc.’s ownership interest on the Company’s equity are as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 183,289 | $ | 30,164 | |||||
Increase (decrease) in paid-in capital for sales of noncontrolling interests | 81 | (809 | ) | ||||||
Increase in paid-in capital for adjustments in ownership interests | 210 | — | |||||||
Net transfers to noncontrolling interests | 291 | (809 | ) | ||||||
Change from net income attributable to DaVita HealthCare Partners Inc. and transfers to noncontrolling interests | $ | 183,580 | $ | 29,355 | |||||
Condensed_consolidating_financ1
Condensed consolidating financial statements (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Condensed Consolidating Statements of Income | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Income | |||||||||||||||||||||
For the three months ended March 31, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 1,513,748 | $ | 598,887 | $ | 1,463 | $ | 2,114,098 | |||||||||||
Less: Provision for uncollectible accounts | — | (49,906 | ) | (33,291 | ) | — | (83,197 | ) | |||||||||||||
Net patient service revenues | — | 1,463,842 | 565,596 | 1,463 | 2,030,901 | ||||||||||||||||
Capitated revenues | — | 697,081 | 366,129 | (275,645 | ) | 787,565 | |||||||||||||||
Other revenues | 163,043 | 393,304 | 32,291 | (364,328 | ) | 224,310 | |||||||||||||||
Total net revenues | 163,043 | 2,554,227 | 964,016 | (638,510 | ) | 3,042,776 | |||||||||||||||
Operating expenses | 112,297 | 2,259,571 | 868,193 | (638,510 | ) | 2,601,551 | |||||||||||||||
Operating income | 50,746 | 294,656 | 95,823 | — | 441,225 | ||||||||||||||||
Debt expense | (105,283 | ) | (91,437 | ) | (9,739 | ) | 100,124 | (106,335 | ) | ||||||||||||
Other income (expense) | 99,943 | 1,556 | 323 | (100,124 | ) | 1,698 | |||||||||||||||
Income tax expense | 18,389 | 104,030 | 2,432 | — | 124,851 | ||||||||||||||||
Equity earnings in subsidiaries | 156,272 | 55,527 | — | (211,799 | ) | — | |||||||||||||||
Net income | 183,289 | 156,272 | 83,975 | (211,799 | ) | 211,737 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (28,448 | ) | (28,448 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 183,289 | $ | 156,272 | $ | 83,975 | $ | (240,247 | ) | $ | 183,289 | ||||||||||
For the three months ended March 31, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 1,452,220 | $ | 536,658 | $ | (9,005 | ) | $ | 1,979,873 | ||||||||||
Less: Provision for uncollectible accounts | — | (63,857 | ) | (6,200 | ) | — | (70,057 | ) | |||||||||||||
Net patient service revenues | — | 1,388,363 | 530,458 | (9,005 | ) | 1,909,816 | |||||||||||||||
Capitated revenues | — | 360,024 | 403,675 | (1,084 | ) | 762,615 | |||||||||||||||
Other revenues | 135,375 | 358,457 | 17,657 | (354,338 | ) | 157,151 | |||||||||||||||
Total net revenues | 135,375 | 2,106,844 | 951,790 | (364,427 | ) | 2,829,582 | |||||||||||||||
Operating expenses | 120,504 | 2,081,223 | 825,421 | (364,427 | ) | 2,662,721 | |||||||||||||||
Operating income | 14,871 | 25,621 | 126,369 | — | 166,861 | ||||||||||||||||
Debt expense | (105,331 | ) | (94,715 | ) | (10,723 | ) | 104,952 | (105,817 | ) | ||||||||||||
Other income (expense) | 100,221 | 5,967 | (638 | ) | (104,952 | ) | 598 | ||||||||||||||
Income tax expense (benefit) | 4,597 | (3,212 | ) | 13,759 | — | 15,144 | |||||||||||||||
Equity earnings in subsidiaries | 25,000 | 66,077 | — | (91,077 | ) | — | |||||||||||||||
Income from continuing operations | 30,164 | 6,162 | 101,249 | (91,077 | ) | 46,498 | |||||||||||||||
Discontinued operations | — | — | 13,236 | — | 13,236 | ||||||||||||||||
Net income | 30,164 | 6,162 | 114,485 | (91,077 | ) | 59,734 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (29,570 | ) | (29,570 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 30,164 | $ | 6,162 | $ | 114,485 | $ | (120,647 | ) | $ | 30,164 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||||||
For the three months ended March 31, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 183,289 | $ | 156,272 | $ | 83,975 | $ | (211,799 | ) | $ | 211,737 | ||||||||||
Other comprehensive income | 1,006 | — | — | — | 1,006 | ||||||||||||||||
Total comprehensive income | 184,295 | 156,272 | 83,975 | (211,799 | ) | 212,743 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (28,448 | ) | (28,448 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 184,295 | $ | 156,272 | $ | 83,975 | $ | (240,247 | ) | $ | 184,295 | ||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Net income | $ | 30,164 | $ | 6,162 | $ | 114,485 | $ | (91,077 | ) | $ | 59,734 | ||||||||||
Other comprehensive loss | (1,444 | ) | — | — | — | (1,444 | ) | ||||||||||||||
Total comprehensive income | 28,720 | 6,162 | 114,485 | (91,077 | ) | 58,290 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (29,570 | ) | (29,570 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 28,720 | $ | 6,162 | $ | 114,485 | $ | (120,647 | ) | $ | 28,720 | ||||||||||
Condensed Consolidating Balance Sheets | ' | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||
As of March 31, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash and cash equivalents | $ | 793,890 | $ | 142,955 | $ | 171,224 | $ | — | $ | 1,108,069 | |||||||||||
Accounts receivable, net | — | 974,294 | 565,434 | — | 1,539,728 | ||||||||||||||||
Other current assets | 28,046 | 933,748 | 97,642 | — | 1,059,436 | ||||||||||||||||
Total current assets | 821,936 | 2,050,997 | 834,300 | — | 3,707,233 | ||||||||||||||||
Property and equipment, net | 181,470 | 1,380,425 | 662,544 | — | 2,224,439 | ||||||||||||||||
Amortizable intangibles, net | 72,736 | 1,890,759 | 62,327 | — | 2,025,822 | ||||||||||||||||
Investments in subsidiaries | 8,451,785 | 1,407,504 | — | (9,859,289 | ) | — | |||||||||||||||
Intercompany receivables | 3,820,966 | — | 453,436 | (4,274,402 | ) | — | |||||||||||||||
Other long-term assets and investments | 60,391 | 69,829 | 68,449 | — | 198,669 | ||||||||||||||||
Goodwill | — | 7,878,857 | 1,363,322 | — | 9,242,179 | ||||||||||||||||
Total assets | $ | 13,409,284 | $ | 14,678,371 | $ | 3,444,378 | $ | (14,133,691 | ) | $ | 17,398,342 | ||||||||||
Current liabilities | 434,428 | 1,757,191 | 374,555 | — | 2,566,174 | ||||||||||||||||
Intercompany payables | — | 3,264,363 | 1,010,039 | (4,274,402 | ) | — | |||||||||||||||
Long-term debt and other long-term liabilities | 7,873,226 | 1,205,032 | 223,494 | — | 9,301,752 | ||||||||||||||||
Noncontrolling interests subject to put provisions | 442,063 | — | — | 250,717 | 692,780 | ||||||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,659,567 | 8,451,785 | 1,407,504 | (9,859,289 | ) | 4,659,567 | |||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 428,786 | (250,717 | ) | 178,069 | |||||||||||||||
Total equity | 4,659,567 | 8,451,785 | 1,836,290 | (10,110,006 | ) | 4,837,636 | |||||||||||||||
Total liabilities and equity | $ | 13,409,284 | $ | 14,678,371 | $ | 3,444,378 | $ | (14,133,691 | ) | $ | 17,398,342 | ||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Cash and cash equivalents | $ | 602,188 | $ | 175,004 | $ | 169,057 | $ | — | $ | 946,249 | |||||||||||
Accounts receivable, net | — | 939,543 | 545,620 | — | 1,485,163 | ||||||||||||||||
Other current assets | 27,910 | 904,852 | 108,104 | — | 1,040,866 | ||||||||||||||||
Total current assets | 630,098 | 2,019,399 | 822,781 | — | 3,472,278 | ||||||||||||||||
Property and equipment, net | 177,633 | 1,378,017 | 633,761 | — | 2,189,411 | ||||||||||||||||
Amortizable intangibles, net | 77,531 | 1,882,685 | 64,157 | — | 2,024,373 | ||||||||||||||||
Investments in subsidiaries | 8,231,059 | 1,391,655 | — | (9,622,714 | ) | — | |||||||||||||||
Intercompany receivables | 3,983,214 | — | 480,993 | (4,464,207 | ) | — | |||||||||||||||
Other long-term assets and investments | 61,391 | 70,728 | 67,722 | — | 199,841 | ||||||||||||||||
Goodwill | — | 7,850,910 | 1,362,064 | — | 9,212,974 | ||||||||||||||||
Total assets | $ | 13,160,926 | $ | 14,593,394 | $ | 3,431,478 | $ | (14,086,921 | ) | $ | 17,098,877 | ||||||||||
Current liabilities | $ | 328,875 | $ | 1,776,419 | $ | 356,755 | $ | — | $ | 2,462,049 | |||||||||||
Intercompany payables | — | 3,426,433 | 1,037,774 | (4,464,207 | ) | — | |||||||||||||||
Long-term debt and other long-term liabilities | 7,948,390 | 1,159,483 | 226,114 | — | 9,333,987 | ||||||||||||||||
Noncontrolling interests subject to put provisions | 451,182 | — | — | 246,118 | 697,300 | ||||||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,432,479 | 8,231,059 | 1,391,655 | (9,622,714 | ) | 4,432,479 | |||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 419,180 | (246,118 | ) | 173,062 | |||||||||||||||
Total equity | 4,432,479 | 8,231,059 | 1,810,835 | (9,868,832 | ) | 4,605,541 | |||||||||||||||
Total liabilities and equity | $ | 13,160,926 | $ | 14,593,394 | $ | 3,431,478 | $ | (14,086,921 | ) | $ | 17,098,877 | ||||||||||
Condensed Consolidating Statements of Cash Flows | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||
For the three months ended March 31, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 183,289 | $ | 156,272 | $ | 83,975 | $ | (211,799 | ) | $ | 211,737 | ||||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (28,933 | ) | (2,155 | ) | 26,659 | 211,799 | 207,370 | ||||||||||||||
Net cash provided by operating activities | 154,356 | 154,117 | 110,634 | — | 419,107 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Additions of property and equipment, net | (11,100 | ) | (60,113 | ) | (55,349 | ) | — | (126,562 | ) | ||||||||||||
Acquisitions | — | (67,857 | ) | — | — | (67,857 | ) | ||||||||||||||
Proceeds from asset and business sales | — | 56 | — | — | 56 | ||||||||||||||||
Purchases/proceeds from investment sales and other items | (776 | ) | 135 | (789 | ) | — | (1,430 | ) | |||||||||||||
Net cash used in investing activities | (11,876 | ) | (127,779 | ) | (56,138 | ) | — | (195,793 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Long-term debt and related financing costs, net | (62,853 | ) | (1,579 | ) | (721 | ) | — | (65,153 | ) | ||||||||||||
Intercompany borrowing | 90,289 | (57,572 | ) | (32,717 | ) | — | — | ||||||||||||||
Other items | 21,786 | 764 | (19,522 | ) | — | 3,028 | |||||||||||||||
Net cash provided by (used in) financing activities | 49,222 | (58,387 | ) | (52,960 | ) | — | (62,125 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | 631 | — | 631 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 191,702 | (32,049 | ) | 2,167 | — | 161,820 | |||||||||||||||
Cash and cash equivalents at beginning of period | 602,188 | 175,004 | 169,057 | — | 946,249 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 793,890 | $ | 142,955 | $ | 171,224 | $ | — | $ | 1,108,069 | |||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 30,164 | $ | 6,162 | $ | 114,485 | $ | (91,077 | ) | $ | 59,734 | ||||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (35,465 | ) | 311,971 | (48,110 | ) | 91,077 | 319,473 | ||||||||||||||
Net cash (used in) provided by operating activities | (5,301 | ) | 318,133 | 66,375 | — | 379,207 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Additions of property and equipment, net | (19,582 | ) | (51,574 | ) | (45,568 | ) | — | (116,724 | ) | ||||||||||||
Acquisitions | — | (81,505 | ) | (9,993 | ) | — | (91,498 | ) | |||||||||||||
Proceeds from asset sales | 60,650 | 1,707 | — | — | 62,357 | ||||||||||||||||
Purchases of investments and other items | (125 | ) | (21 | ) | — | — | (146 | ) | |||||||||||||
Net cash provided by (used in) investing activities | 40,943 | (131,393 | ) | (55,561 | ) | — | (146,011 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Long-term debt and related financing costs, net | (50,725 | ) | (3,907 | ) | (9,055 | ) | — | (63,687 | ) | ||||||||||||
Intercompany borrowing | 111,085 | (130,566 | ) | 19,481 | — | — | |||||||||||||||
Other items | 12,790 | 4,174 | (20,669 | ) | — | (3,705 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 73,150 | (130,299 | ) | (10,243 | ) | — | (67,392 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | 119 | — | 119 | ||||||||||||||||
Net increase in cash and cash equivalents | 108,792 | 56,441 | 690 | — | 165,923 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 195,037 | 166,107 | 172,604 | — | 533,748 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 303,829 | $ | 222,548 | $ | 173,294 | $ | — | $ | 699,671 | |||||||||||
Reconciliations_of_Numerators_
Reconciliations of Numerators and Denominators Used to Calculate Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Basic: | ' | ' | ||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $183,289 | $16,915 | ||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | ' | 13,249 | ||
Net income attributable to DaVita HealthCare Partners Inc. for basic earnings per share calculation | 183,289 | 30,164 | ||
Weighted average shares outstanding during the period | 213,564 | 211,157 | ||
Vested stock units | 5 | 6 | ||
Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger | -2,194 | -2,194 | ||
Weighted average shares for basic earnings per share calculation | 211,375 | 208,969 | ||
Basic income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $0.87 | $0.08 | ||
Basic income from discontinued operations per share attributable to DaVita HealthCare Partners Inc. | ' | $0.06 | ||
Basic net income per share attributable to DaVita HealthCare Partners Inc. | $0.87 | $0.14 | ||
Diluted: | ' | ' | ||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | 183,289 | 16,915 | ||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | ' | 13,249 | ||
Net income attributable to DaVita HealthCare Partners Inc. for diluted earnings per share calculation | $183,289 | $30,164 | ||
Weighted average shares outstanding during the period | 213,564 | 211,157 | ||
Vested stock units | 5 | 6 | ||
Assumed incremental shares from stock plans | 2,550 | 2,964 | ||
Weighted average shares for diluted earnings per share calculation | 216,119 | 214,127 | ||
Diluted income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $0.85 | $0.08 | ||
Diluted income from discontinued operations per share attributable to DaVita HealthCare Partners Inc. | ' | $0.06 | ||
Diluted net income per share attributable to DaVita HealthCare Partners Inc. | $0.85 | $0.14 | ||
Anti-dilutive stock-settled awards excluded from calculation | 2,999 | [1] | 2,187 | [1] |
[1] | Shares associated with stock-settled stock appreciation rights that are excluded from the diluted denominator calculation because they are anti-dilutive under the treasury stock method. |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Percentage of outstanding patient accounts receivables to be reserved as per Company's policy | 100.00% |
Account receivable outstanding, number of months | '4 months |
Increased in allowance for doubtful accounts | $9,965 |
U.S. dialysis and related lab services | Minimum | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Bad debt provision rate | 3.50% |
U.S. dialysis and related lab services | Maximum | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Bad debt provision rate | 4.00% |
Government-based Programs, Medicare and Medicaid | Accounts Receivable | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Percentage of accounts receivable due | 80.00% |
Health Care Patient | Accounts Receivable | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Percentage of accounts receivable due | 1.00% |
Investments_Detail
Investments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Certificates of deposit and money market funds due within one year | $6,604 | $5,601 |
Investments in mutual funds and common stock | 20,532 | 19,421 |
Total investment | 27,136 | 25,022 |
Short-term investments | 8,080 | 6,801 |
Long-term investments | 19,056 | 18,221 |
Total investment | 27,136 | 25,022 |
Held to maturity | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Certificates of deposit and money market funds due within one year | 6,604 | 5,601 |
Total investment | 6,604 | 5,601 |
Short-term investments | 6,604 | 5,601 |
Total investment | 6,604 | 5,601 |
Available for sale | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Investments in mutual funds and common stock | 20,532 | 19,421 |
Total investment | 20,532 | 19,421 |
Short-term investments | 1,476 | 1,200 |
Long-term investments | 19,056 | 18,221 |
Total investment | $20,532 | $19,421 |
Recovered_Sheet1
Investments in Debt and Equity Securities and Other Investments - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' |
Available for sale investments gross pre-tax unrealized gain (loss) | $5,286 | ' | $5,096 |
Unrealized gain (loss) on investments, pre tax | 530 | ' | ' |
Unrealized gain (loss) on investments, net of tax | 331 | 618 | ' |
Proceeds from sale of investments available for sale | 1,262 | 1,091 | ' |
Pre tax reclassification of net investment realized gain (loss) into net income | 340 | 155 | ' |
Reclassification of net investment realized gain (loss) into net income, net of tax | 207 | 94 | ' |
Preferred Stock | ' | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' |
Preferred stock, in a privately held company | 5,000 | ' | ' |
HealthCare Partners (HCP) | ' | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' |
Required minimum cash balance | $52,000 | ' | ' |
Changes_in_Goodwill_by_Reporta
Changes in Goodwill by Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Beginning balance | $9,212,974 | $8,952,750 |
Acquisitions | 29,109 | 271,267 |
Divestitures | ' | -2,728 |
Other adjustments | 96 | -8,315 |
Ending balance | 9,242,179 | 9,212,974 |
U.S. dialysis and related lab services | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 5,469,473 | 5,309,152 |
Acquisitions | 2,915 | 163,037 |
Divestitures | ' | -2,728 |
Other adjustments | ' | 12 |
Ending balance | 5,472,388 | 5,469,473 |
HealthCare Partners (HCP) | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 3,516,162 | 3,506,571 |
Acquisitions | 26,194 | 17,833 |
Other adjustments | ' | -8,242 |
Ending balance | 3,542,356 | 3,516,162 |
Other-Ancillary services and strategic initiatives | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 227,339 | 137,027 |
Acquisitions | ' | 90,397 |
Other adjustments | 96 | -85 |
Ending balance | $227,435 | $227,339 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Goodwill [Line Items] | ' |
Pre-tax goodwill impairment charge | $0 |
Components_of_Change_in_Health
Components of Change in Health Care Costs Payable (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Healthcare Cost | ||
Medical Expense And Medical Claims Payable [Line Items] | ' | ' | ' |
Health care costs payable, beginning of the period | $284,759 | $287,452 | $172,310 |
Add: Components of incurred health care costs | ' | ' | ' |
Current year | ' | ' | 380,918 |
Prior years | ' | ' | 3,824 |
Total incurred health care costs | ' | ' | 384,742 |
Less: Claims paid | ' | ' | ' |
Current year | ' | ' | 220,478 |
Prior years | ' | ' | 140,078 |
Total claims paid | ' | ' | 360,556 |
Health care costs payable, end of the period | $284,759 | $287,452 | $196,496 |
Health_Care_Costs_Payable_Addi
Health Care Costs Payable - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Medical Expense And Medical Claims Payable [Line Items] | ' |
Increase in prior year estimates of health care costs payable | $3,824 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | ' | ' |
Total unrecognized tax benefits that would affect effective tax rate, if recognized | $33,151 | ' |
Increase in beginning balance due to addition of liabilities for current year | 224 | ' |
Liability for unrecognized tax benefits | 60,762 | 60,538 |
Accrued interest and penalties related to unrecognized tax benefits, net of federal tax benefits | 11,746 | 10,742 |
Unrecognized tax benefits that may be recognized within the next 12 months | $27,611 | ' |
Long_Term_Debt_Detail
Long Term Debt (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Senior notes | $2,800,000 | $2,800,000 |
Acquisition obligations and other notes payable | 66,825 | 67,352 |
Capital lease obligations | 163,106 | 152,751 |
Total debt principal outstanding | 8,380,556 | 8,433,603 |
Discount on long-term debt | -16,714 | -17,675 |
Carrying Amount of Long-Term Debt, Net of Unamortized Discount or Premium, Current and Noncurrent, Total | 8,363,842 | 8,415,928 |
Less current portion | -292,220 | -274,697 |
Long Term Debt and Capital Lease Obligations Noncurrent | 8,071,622 | 8,141,231 |
Term Loan A | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | 762,500 | 800,000 |
Term Loan A-3 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | 1,265,625 | 1,282,500 |
Term Loan B | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | 1,693,125 | 1,697,500 |
Term Loan B-2 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | $1,629,375 | $1,633,500 |
Scheduled_Maturities_of_Longte
Scheduled Maturities of Long-term Debt (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
2014 | $208,890 |
2015 | 845,479 |
2016 | 1,897,968 |
2017 | 911,372 |
2018 | 807,601 |
2019 | 1,565,989 |
Thereafter | $2,143,257 |
Longterm_Debt_Additional_Infor
Long-term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Unrealized loss in other comprehensive income | ($2,505) | ($2,369) |
Overall weighted average effective interest rate on Senior Secured Credit Facilities | 4.19% | ' |
Weighted average effective interest rate | 4.89% | ' |
Overall weighted average effective interest rate | 4.87% | ' |
Undrawn revolving credit facilities | 350,000 | ' |
Outstanding letters of credit | 83,000 | ' |
HealthCare Partners (HCP) | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Outstanding letters of credit | 1,000 | ' |
Interest rate swap agreements | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate agreements, notional amount | 600,000 | ' |
Fixed interest rate, lower limit | 0.72% | ' |
Fixed interest rate, upper limit | 0.75% | ' |
Cap agreements, expiration date | 30-Sep-16 | ' |
Fair value of assets | 880 | ' |
Unrealized pre-tax losses in other comprehensive income | 1,555 | ' |
Swap rate agreement effective date | '2014-09-30 | ' |
Interest rate cap agreements | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Cap agreements, expiration date | 30-Sep-16 | ' |
Debt expense recognized | 610 | ' |
Fair value of assets | 6,219 | ' |
Debt Instrument interest LIBOR rate | 2.50% | ' |
Unrealized loss in other comprehensive income | -1,347 | ' |
Term Loan A | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument principal payment | 37,500 | ' |
Current margin in effect | 2.75% | ' |
Term Loan A | Interest rate swap agreements | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate agreements, notional amount | 762,500 | ' |
Fixed interest rate, lower limit | 1.59% | ' |
Fixed interest rate, upper limit | 1.64% | ' |
Weighted average effective interest rate | 4.36% | ' |
Interest rate margin in effect | 2.75% | ' |
Cap agreements, expiration date | 30-Sep-14 | ' |
Debt expense recognized | 2,903 | ' |
Unrealized pre-tax losses in other comprehensive income | 5,420 | ' |
Number of interest rate agreements | 9 | ' |
Total liability fair value | 5,420 | ' |
Term Loan A-3 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument principal payment | 16,875 | ' |
Current margin in effect | 2.50% | ' |
Term Loan A-3 | Interest rate swap agreements | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate agreements, notional amount | 1,265,625 | ' |
Fixed interest rate, lower limit | 0.49% | ' |
Fixed interest rate, upper limit | 0.52% | ' |
Weighted average effective interest rate | 3.01% | ' |
Interest rate margin in effect | 2.50% | ' |
Cap agreements, expiration date | 30-Sep-16 | ' |
Debt expense recognized | 1,104 | ' |
Fair value of assets | 3,717 | ' |
Unrealized pre-tax losses in other comprehensive income | 3,930 | ' |
Term Loan B | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument principal payment | 4,375 | ' |
Current margin in effect | 3.00% | ' |
Term Loan B | Interest rate cap agreements | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate agreements, notional amount | 1,250,000 | ' |
Cap agreements, expiration date | 30-Sep-14 | ' |
Debt expense recognized | 897 | ' |
Number of interest rate agreements | 5 | ' |
Term Loan B | Interest rate cap agreements | Maximum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument interest LIBOR rate | 4.00% | ' |
Term Loan B-2 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument principal payment | 4,125 | ' |
LIBOR interest rate for interest cap | 2.50% | ' |
Current margin in effect | 3.00% | ' |
Term Loan B-2 | Interest rate cap agreements | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate agreements, notional amount | $1,485,000 | ' |
Derivative_Instruments_Detail
Derivative Instruments (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest rate swap agreements | Other Current Liabilities | ' | ' |
Derivative [Line Items] | ' | ' |
Interest rate swap agreements | $10,905 | $12,069 |
Interest rate swap agreements | Other long-term assets | ' | ' |
Derivative [Line Items] | ' | ' |
Interest rate swap agreements | 10,081 | 10,004 |
Interest rate cap agreements | Other long-term assets | ' | ' |
Derivative [Line Items] | ' | ' |
Interest rate swap agreements | $6,219 | $7,567 |
Effects_of_Interest_Rate_Swap_
Effects of Interest Rate Swap Agreements (Detail) (Cash Flow Hedging, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative [Line Items] | ' | ' |
Amount of gains (losses) recognized in OCI on interest rate swap and cap agreements | ($2,505) | ($2,369) |
Amount of losses reclassified from accumulated OCI into income | -3,359 | -2,507 |
Interest rate swap agreements | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of gains (losses) recognized in OCI on interest rate swap and cap agreements | -2,764 | -964 |
Interest rate swap agreements | Debt Expense | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of losses reclassified from accumulated OCI into income | -4,006 | -3,207 |
Interest rate cap agreements | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of gains (losses) recognized in OCI on interest rate swap and cap agreements | -1,347 | -2,913 |
Interest rate cap agreements | Debt Expense | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of losses reclassified from accumulated OCI into income | -1,507 | -897 |
Tax (expense) benefit | ' | ' |
Derivative [Line Items] | ' | ' |
Amount of gains (losses) recognized in OCI on interest rate swap and cap agreements | 1,606 | 1,508 |
Amount of losses reclassified from accumulated OCI into income | $2,154 | $1,597 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (U.S. Attorney Physician Relationship Investigation, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
U.S. Attorney Physician Relationship Investigation | ' |
Legal Proceedings [Line Items] | ' |
Contingency reserve | $397,000 |
settlement payment | $389,000 |
Recovered_Sheet2
Noncontrolling Interests Subject to Put Provisions and Other Commitments - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Commitments and Contingencies Disclosure [Line Items] | ' |
Other potential commitments to provide operating capital to several dialysis centers | $2,000 |
Schedule of Joint ventures to dissolve | 'Certain consolidated joint ventures are contractually scheduled to dissolve after terms ranging from ten to fifty years. |
Minimum | ' |
Commitments and Contingencies Disclosure [Line Items] | ' |
Scheduled dissolution term of joint ventures | '10 years |
Maximum | ' |
Commitments and Contingencies Disclosure [Line Items] | ' |
Scheduled dissolution term of joint ventures | '50 years |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock-based compensation expense | $15,074 | $16,021 |
Tax benefit from stock-based compensation | 5,580 | 6,088 |
Unrecognized compensation cost related to nonvested stock-based compensation arrangements under equity compensation and stock purchase plans | 79,262 | ' |
Unrecognized compensation cost related to nonvested stock-based compensation arrangements under equity compensation and stock purchase plans, weighted average remaining period (in years) | '1 year 2 months 12 days | ' |
Tax benefits from stock award exercises | 22,978 | 9,368 |
Stock Appreciation Rights | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock granted | 29 | ' |
Stock appreciation, aggregate grant-date fair value | 452 | ' |
Weighted-average expected life (in years) | '4 years 3 months 12 days | ' |
Stock Unit | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock granted | 2 | ' |
Weighted-average expected life (in years) | '2 months 12 days | ' |
Stock units, aggregate grant-date fair value | $167 | ' |
Comprehensive_Income_Detail
Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | ($2,645) | ' |
Unrealized (losses) gains | 530 | ' |
Unrealized (losses) gains net | 331 | 618 |
Reclassification from accumulated other comprehensive income into net income | -340 | -155 |
Reclassification from accumulated other comprehensive income into net income net of tax | -207 | -94 |
Ending balance | -1,639 | ' |
Interest Rate Swaps and Interest Rate Cap Agreements | ' | ' |
Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -2,344 | -15,402 |
Unrealized (losses) gains | -4,111 | -3,877 |
Related income tax benefit (expense) | 1,606 | 1,508 |
Unrealized (losses) gains net | -2,505 | -2,369 |
Reclassification from accumulated other comprehensive income into net income | 5,513 | 4,104 |
Related tax | -2,154 | -1,597 |
Reclassification from accumulated other comprehensive income into net income net of tax | 3,359 | 2,507 |
Ending balance | -1,490 | -15,264 |
Investment securities | ' | ' |
Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | 3,120 | 1,310 |
Unrealized (losses) gains | 530 | 1,011 |
Related income tax benefit (expense) | -199 | -393 |
Unrealized (losses) gains net | 331 | 618 |
Reclassification from accumulated other comprehensive income into net income | -340 | -155 |
Related tax | 133 | 61 |
Reclassification from accumulated other comprehensive income into net income net of tax | -207 | -94 |
Ending balance | 3,244 | 1,834 |
Foreign currency translation adjustments | ' | ' |
Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -3,421 | -1,205 |
Unrealized (losses) gains | 28 | -2,106 |
Unrealized (losses) gains net | 28 | -2,106 |
Ending balance | -3,393 | -3,311 |
Accumulated Other comprehensive income (loss) | ' | ' |
Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -2,645 | -15,297 |
Unrealized (losses) gains | -3,553 | -4,972 |
Related income tax benefit (expense) | 1,407 | 1,115 |
Unrealized (losses) gains net | -2,146 | -3,857 |
Reclassification from accumulated other comprehensive income into net income | 5,173 | 3,949 |
Related tax | -2,021 | -1,536 |
Reclassification from accumulated other comprehensive income into net income net of tax | 3,152 | 2,413 |
Ending balance | ($1,639) | ($16,741) |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' | ' |
Amortizable intangible assets acquired, weighted-average estimated useful lives | '10 years | ' |
Goodwill deductible for tax purposes associated with acquisitions | $19,196 | ' |
Contingent earn-out obligations | 36,691 | 28,058 |
Other Accrued Liabilities | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Contingent earn-out obligations | 6,577 | ' |
Other long-term liabilities | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Contingent earn-out obligations | 30,114 | ' |
Other companies | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Additional cash consideration in the form of earn-out payments | 131,500 | ' |
Fair value of contingent earn-out consideration | 36,691 | ' |
Other companies | Scenario 1 | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Earn out consideration payment period | '3 years | ' |
Other companies | Earn-out obligations | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Earn out consideration payment period | '5 years | ' |
Other dialysis acquisitions | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Cash paid to acquire business | 67,857 | ' |
Deferred purchase price obligations | $10,100 | ' |
Other dialysis acquisitions | U.S. dialysis and related lab services | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Number of businesses acquired | 1 | ' |
Assets_Acquired_and_Liabilitie
Assets Acquired and Liabilities Assumed and Recognized at Acquisition Dates at Estimated Fair Values (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | $9,242,179 | $9,212,974 | $8,952,750 |
U.S. dialysis and related lab services | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Tangible assets, principally leasehold improvements and equipment, net of cash | 646 | ' | ' |
Amortizable intangible and other long-term assets | 48,443 | ' | ' |
Goodwill | 29,109 | ' | ' |
Other adjustments | -241 | ' | ' |
Aggregate purchase price | $77,957 | ' | ' |
Reconciliation_of_Changes_in_C
Reconciliation of Changes in Contingent Earn-Out Obligations (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Business Combination Segment Allocation [Line Items] | ' |
Beginning balance | $28,058 |
Contingent earn-out obligations associated with acquisitions | 9,875 |
Remeasurement of fair value | -1,026 |
Payments of contingent earn-outs | -216 |
Ending balance | $36,691 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Variable Interest Entity [Line Items] | ' |
Asset | $519,107 |
Liabilities | $327,732 |
Assets_Liabilities_and_Tempora
Assets, Liabilities and Temporary Equity Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities | ' | ' |
Contingent earn-out obligations | $36,691 | $28,058 |
Fair Value, Measurements, Recurring | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 20,532 | ' |
Funds on deposit with third parties | 74,954 | ' |
Liabilities | ' | ' |
Contingent earn-out obligations | 36,691 | ' |
Interest rate swap agreements | 10,905 | ' |
Temporary equity | ' | ' |
Noncontrolling interests subject to put provisions | 692,780 | ' |
Fair Value, Measurements, Recurring | Interest rate cap agreements | ' | ' |
Assets | ' | ' |
Interest rate derivative agreements | 6,219 | ' |
Fair Value, Measurements, Recurring | Interest rate swap agreements | ' | ' |
Assets | ' | ' |
Interest rate derivative agreements | 10,081 | ' |
Fair Value, Measurements, Recurring | Level 1 | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 20,532 | ' |
Funds on deposit with third parties | 74,954 | ' |
Fair Value, Measurements, Recurring | Level 2 | ' | ' |
Liabilities | ' | ' |
Interest rate swap agreements | 10,905 | ' |
Fair Value, Measurements, Recurring | Level 2 | Interest rate cap agreements | ' | ' |
Assets | ' | ' |
Interest rate derivative agreements | 6,219 | ' |
Fair Value, Measurements, Recurring | Level 2 | Interest rate swap agreements | ' | ' |
Assets | ' | ' |
Interest rate derivative agreements | 10,081 | ' |
Fair Value, Measurements, Recurring | Level 3 | ' | ' |
Liabilities | ' | ' |
Contingent earn-out obligations | 36,691 | ' |
Temporary equity | ' | ' |
Noncontrolling interests subject to put provisions | $692,780 | ' |
Recovered_Sheet3
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt instrument, carrying amount | $8,380,556 | $8,433,603 |
Senior Secured Credit Facility | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt instrument, carrying amount | 5,333,911 | ' |
Debt instrument, fair value | 5,370,500 | ' |
Senior Notes | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt instrument, carrying amount | 2,800,000 | ' |
Debt instrument, fair value | $2,971,200 | ' |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Number of major lines of business | 2 | ' |
U.S. dialysis and related lab services | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Depreciation and amortization expense | $96,443 | $84,953 |
Total amount of expenditures for property and equipment | 113,230 | 102,076 |
HealthCare Partners (HCP) | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Depreciation and amortization expense | 41,737 | 38,017 |
Total amount of expenditures for property and equipment | 4,502 | 6,539 |
Other-Ancillary services and strategic initiatives | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Depreciation and amortization expense | 4,399 | 2,939 |
Total amount of expenditures for property and equipment | $8,830 | $8,109 |
Summary_of_Segment_Net_Revenue
Summary of Segment Net Revenues, Segment Operating Income Loss and Reconciliation of Segment Income to Consolidated Income from Continuing Operations Before Income Taxes (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Patient service operating revenues | $2,114,098 | $1,979,873 | ||
Net patient service revenues | 2,030,901 | 1,909,816 | ||
Other revenues | 224,310 | 157,151 | ||
Total net operating revenues | 3,042,776 | 2,829,582 | ||
Operating income | 441,225 | 166,861 | ||
Corporate support expenses | -1,106 | -11,435 | ||
Debt expense | -106,335 | -105,817 | ||
Other income, net | 1,698 | 598 | ||
Consolidated income from continuing operations before income taxes | 336,588 | 61,642 | ||
U.S. dialysis and related lab services | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Patient service operating revenues | 2,036,575 | 1,916,294 | ||
Less: Provision for uncollectible accounts | -81,463 | -67,071 | ||
Net patient service revenues | 1,955,112 | 1,849,223 | ||
Other revenues | 3,154 | [1] | 2,895 | [1] |
HealthCare Partners (HCP) | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Patient service operating revenues | 771,542 | 746,071 | ||
Net patient service revenues | 56,222 | 53,602 | ||
Other revenues | 12,523 | [2] | 4,086 | [2] |
Other-Ancillary services and strategic initiatives | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Patient service operating revenues | 16,023 | 16,544 | ||
Other-Ancillary services and strategic initiatives | U.S. | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net patient service revenues | 4,153 | 3,439 | ||
Other revenues | 206,955 | 148,758 | ||
Other-Ancillary services and strategic initiatives | International | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net patient service revenues | 23,246 | 11,063 | ||
Other revenues | 1,678 | 1,412 | ||
Operating Segments | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total net operating revenues | 3,055,579 | 2,839,872 | ||
Operating income | 442,331 | 178,296 | ||
Operating Segments | U.S. dialysis and related lab services | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Patient service operating revenues | 2,028,743 | 1,908,783 | ||
Total net operating revenues | 1,958,266 | 1,852,118 | ||
Operating income | 386,700 | 84,813 | ||
Operating Segments | HealthCare Partners (HCP) | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total net operating revenues | 840,439 | 803,759 | ||
Operating income | 53,953 | 108,084 | ||
Operating Segments | Other-Ancillary services and strategic initiatives | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total net operating revenues | 256,874 | 183,995 | ||
Operating income | 1,678 | -14,601 | ||
Intersegment Elimination | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total net operating revenues | -12,803 | -10,290 | ||
Intersegment Elimination | U.S. dialysis and related lab services | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Patient service operating revenues | 7,832 | 7,511 | ||
Intersegment Elimination | HealthCare Partners (HCP) | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Other revenues | 152 | ' | ||
Intersegment Elimination | Other-Ancillary services and strategic initiatives | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total net operating revenues | $4,819 | $2,779 | ||
[1] | Includes management fees for providing management and administrative services to dialysis centers that are wholly-owned by third parties or centers in which the Company owns a minority equity investment. | |||
[2] | Includes payments received for medical consulting services and management fees for providing management and administrative services to an unconsolidated joint venture that provides medical services in which the Company owns a 50% interest. |
Summary_of_Segment_Net_Revenue1
Summary of Segment Net Revenues, Segment Operating Income Loss and Reconciliation of Segment Income to Consolidated Income from Continuing Operations Before Income Taxes (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | ' |
Percentage of ownership in unconsolidated joint ventures | 50.00% |
Summary_of_Assets_by_Segment_D
Summary of Assets by Segment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment assets | ' | ' |
Total assets | $17,398,342 | $17,098,877 |
U.S. dialysis and related lab services | ' | ' |
Segment assets | ' | ' |
Total assets | 10,451,802 | 10,248,993 |
HealthCare Partners (HCP) | ' | ' |
Segment assets | ' | ' |
Total assets | 6,320,690 | 6,265,767 |
Other-Ancillary services and strategic initiatives | ' | ' |
Segment assets | ' | ' |
Total assets | $625,850 | $584,117 |
Effects_of_Changes_in_DaVita_I
Effects of Changes in DaVita Inc's Ownership Interest on Company's Equity (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Net income attributable to DaVita HealthCare Partners Inc. | $183,289 | $30,164 |
Net transfers to noncontrolling interests | 291 | -809 |
Change from net income attributable to DaVita HealthCare Partners Inc. and transfers to noncontrolling interests | 183,580 | 29,355 |
Additional paid-in capital | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' |
Increase (decrease) in paid-in capital for sales of noncontrolling interests | 81 | -809 |
Increase in paid-in capital for adjustments in ownership interests | $210 | ' |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Patient service revenues | $2,114,098 | $1,979,873 |
Less: Provision for uncollectible accounts | -83,197 | -70,057 |
Net patient service revenues | 2,030,901 | 1,909,816 |
Capitated revenues | 787,565 | 762,615 |
Other revenues | 224,310 | 157,151 |
Total net revenues | 3,042,776 | 2,829,582 |
Operating expenses | 2,601,551 | 2,662,721 |
Operating income | 441,225 | 166,861 |
Debt expense | -106,335 | -105,817 |
Other income (expense) | 1,698 | 598 |
Income tax expense (benefit) | 124,851 | 15,144 |
Income from continuing operations | 211,737 | 46,498 |
Discontinued operations | ' | 13,236 |
Net income | 211,737 | 59,734 |
Less: Net income attributable to noncontrolling interests | -28,448 | -29,570 |
Net income | 183,289 | 30,164 |
DaVita HealthCare Partners Inc. | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Other revenues | 163,043 | 135,375 |
Total net revenues | 163,043 | 135,375 |
Operating expenses | 112,297 | 120,504 |
Operating income | 50,746 | 14,871 |
Debt expense | -105,283 | -105,331 |
Other income (expense) | 99,943 | 100,221 |
Income tax expense (benefit) | 18,389 | 4,597 |
Equity earnings in subsidiaries | 156,272 | 25,000 |
Income from continuing operations | ' | 30,164 |
Net income | 183,289 | 30,164 |
Net income | 183,289 | 30,164 |
Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Patient service revenues | 1,513,748 | 1,452,220 |
Less: Provision for uncollectible accounts | -49,906 | -63,857 |
Net patient service revenues | 1,463,842 | 1,388,363 |
Capitated revenues | 697,081 | 360,024 |
Other revenues | 393,304 | 358,457 |
Total net revenues | 2,554,227 | 2,106,844 |
Operating expenses | 2,259,571 | 2,081,223 |
Operating income | 294,656 | 25,621 |
Debt expense | -91,437 | -94,715 |
Other income (expense) | 1,556 | 5,967 |
Income tax expense (benefit) | 104,030 | -3,212 |
Equity earnings in subsidiaries | 55,527 | 66,077 |
Income from continuing operations | ' | 6,162 |
Net income | 156,272 | 6,162 |
Net income | 156,272 | 6,162 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Patient service revenues | 598,887 | 536,658 |
Less: Provision for uncollectible accounts | -33,291 | -6,200 |
Net patient service revenues | 565,596 | 530,458 |
Capitated revenues | 366,129 | 403,675 |
Other revenues | 32,291 | 17,657 |
Total net revenues | 964,016 | 951,790 |
Operating expenses | 868,193 | 825,421 |
Operating income | 95,823 | 126,369 |
Debt expense | -9,739 | -10,723 |
Other income (expense) | 323 | -638 |
Income tax expense (benefit) | 2,432 | 13,759 |
Income from continuing operations | ' | 101,249 |
Discontinued operations | ' | 13,236 |
Net income | 83,975 | 114,485 |
Net income | 83,975 | 114,485 |
Consolidating Adjustments | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Patient service revenues | 1,463 | -9,005 |
Net patient service revenues | 1,463 | -9,005 |
Capitated revenues | -275,645 | -1,084 |
Other revenues | -364,328 | -354,338 |
Total net revenues | -638,510 | -364,427 |
Operating expenses | -638,510 | -364,427 |
Debt expense | 100,124 | 104,952 |
Other income (expense) | -100,124 | -104,952 |
Equity earnings in subsidiaries | -211,799 | -91,077 |
Income from continuing operations | ' | -91,077 |
Net income | -211,799 | -91,077 |
Less: Net income attributable to noncontrolling interests | -28,448 | -29,570 |
Net income | ($240,247) | ($120,647) |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | $211,737 | $59,734 |
Other comprehensive income (loss) | 1,006 | -1,444 |
Total comprehensive income | 212,743 | 58,290 |
Less: comprehensive income attributable to the noncontrolling interests | -28,448 | -29,570 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 184,295 | 28,720 |
DaVita HealthCare Partners Inc. | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 183,289 | 30,164 |
Other comprehensive income (loss) | 1,006 | -1,444 |
Total comprehensive income | 184,295 | 28,720 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 184,295 | 28,720 |
Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 156,272 | 6,162 |
Total comprehensive income | 156,272 | 6,162 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 156,272 | 6,162 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | 83,975 | 114,485 |
Total comprehensive income | 83,975 | 114,485 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 83,975 | 114,485 |
Consolidating Adjustments | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net income | -211,799 | -91,077 |
Total comprehensive income | -211,799 | -91,077 |
Less: comprehensive income attributable to the noncontrolling interests | -28,448 | -29,570 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | ($240,247) | ($120,647) |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $1,108,069 | $946,249 | $699,671 | $533,748 |
Accounts receivable, net | 1,539,728 | 1,485,163 | ' | ' |
Other current assets | 1,059,436 | 1,040,866 | ' | ' |
Total current assets | 3,707,233 | 3,472,278 | ' | ' |
Property and equipment, net | 2,224,439 | 2,189,411 | ' | ' |
Amortizable intangibles, net | 2,025,822 | 2,024,373 | ' | ' |
Other long-term assets and investments | 198,669 | 199,841 | ' | ' |
Goodwill | 9,242,179 | 9,212,974 | ' | 8,952,750 |
Total assets | 17,398,342 | 17,098,877 | ' | ' |
Current liabilities | 2,566,174 | 2,462,049 | ' | ' |
Long-term debt and other long-term liabilities | 9,301,752 | 9,333,987 | ' | ' |
Noncontrolling interests subject to put provisions | 692,780 | 697,300 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | 4,659,567 | 4,432,479 | ' | ' |
Noncontrolling interests not subject to put provisions | 178,069 | 173,062 | ' | ' |
Total equity | 4,837,636 | 4,605,541 | ' | ' |
Total liabilities and equity | 17,398,342 | 17,098,877 | ' | ' |
DaVita HealthCare Partners Inc. | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 793,890 | 602,188 | 303,829 | 195,037 |
Other current assets | 28,046 | 27,910 | ' | ' |
Total current assets | 821,936 | 630,098 | ' | ' |
Property and equipment, net | 181,470 | 177,633 | ' | ' |
Amortizable intangibles, net | 72,736 | 77,531 | ' | ' |
Investments in subsidiaries | 8,451,785 | 8,231,059 | ' | ' |
Intercompany receivables | 3,820,966 | 3,983,214 | ' | ' |
Other long-term assets and investments | 60,391 | 61,391 | ' | ' |
Total assets | 13,409,284 | 13,160,926 | ' | ' |
Current liabilities | 434,428 | 328,875 | ' | ' |
Long-term debt and other long-term liabilities | 7,873,226 | 7,948,390 | ' | ' |
Noncontrolling interests subject to put provisions | 442,063 | 451,182 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | 4,659,567 | 4,432,479 | ' | ' |
Total equity | 4,659,567 | 4,432,479 | ' | ' |
Total liabilities and equity | 13,409,284 | 13,160,926 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 142,955 | 175,004 | 222,548 | 166,107 |
Accounts receivable, net | 974,294 | 939,543 | ' | ' |
Other current assets | 933,748 | 904,852 | ' | ' |
Total current assets | 2,050,997 | 2,019,399 | ' | ' |
Property and equipment, net | 1,380,425 | 1,378,017 | ' | ' |
Amortizable intangibles, net | 1,890,759 | 1,882,685 | ' | ' |
Investments in subsidiaries | 1,407,504 | 1,391,655 | ' | ' |
Other long-term assets and investments | 69,829 | 70,728 | ' | ' |
Goodwill | 7,878,857 | 7,850,910 | ' | ' |
Total assets | 14,678,371 | 14,593,394 | ' | ' |
Current liabilities | 1,757,191 | 1,776,419 | ' | ' |
Intercompany payables | 3,264,363 | 3,426,433 | ' | ' |
Long-term debt and other long-term liabilities | 1,205,032 | 1,159,483 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | 8,451,785 | 8,231,059 | ' | ' |
Total equity | 8,451,785 | 8,231,059 | ' | ' |
Total liabilities and equity | 14,678,371 | 14,593,394 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 171,224 | 169,057 | 173,294 | 172,604 |
Accounts receivable, net | 565,434 | 545,620 | ' | ' |
Other current assets | 97,642 | 108,104 | ' | ' |
Total current assets | 834,300 | 822,781 | ' | ' |
Property and equipment, net | 662,544 | 633,761 | ' | ' |
Amortizable intangibles, net | 62,327 | 64,157 | ' | ' |
Intercompany receivables | 453,436 | 480,993 | ' | ' |
Other long-term assets and investments | 68,449 | 67,722 | ' | ' |
Goodwill | 1,363,322 | 1,362,064 | ' | ' |
Total assets | 3,444,378 | 3,431,478 | ' | ' |
Current liabilities | 374,555 | 356,755 | ' | ' |
Intercompany payables | 1,010,039 | 1,037,774 | ' | ' |
Long-term debt and other long-term liabilities | 223,494 | 226,114 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | 1,407,504 | 1,391,655 | ' | ' |
Noncontrolling interests not subject to put provisions | 428,786 | 419,180 | ' | ' |
Total equity | 1,836,290 | 1,810,835 | ' | ' |
Total liabilities and equity | 3,444,378 | 3,431,478 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Investments in subsidiaries | -9,859,289 | -9,622,714 | ' | ' |
Intercompany receivables | -4,274,402 | -4,464,207 | ' | ' |
Total assets | -14,133,691 | -14,086,921 | ' | ' |
Intercompany payables | -4,274,402 | -4,464,207 | ' | ' |
Noncontrolling interests subject to put provisions | 250,717 | 246,118 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | -9,859,289 | -9,622,714 | ' | ' |
Noncontrolling interests not subject to put provisions | -250,717 | -246,118 | ' | ' |
Total equity | -10,110,006 | -9,868,832 | ' | ' |
Total liabilities and equity | ($14,133,691) | ($14,086,921) | ' | ' |
Condensed_Consolidating_Statem2
Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $211,737 | $59,734 |
Changes in operating assets and liabilities and non-cash items included in net income | 207,370 | 319,473 |
Net cash (used in) provided by operating activities | 419,107 | 379,207 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -126,562 | -116,724 |
Acquisitions | -67,857 | -91,498 |
Proceeds from asset and business sales | 56 | 62,357 |
Purchases/proceeds from investment sales and other items | -1,430 | -146 |
Net cash provided by (used in) investing activities | -195,793 | -146,011 |
Cash flows from financing activities: | ' | ' |
Long-term debt and related financing costs, net | -65,153 | -63,687 |
Other items | 3,028 | -3,705 |
Net cash provided by (used in) financing activities | -62,125 | -67,392 |
Effect of exchange rate changes on cash | 631 | 119 |
Net increase (decrease) in cash and cash equivalents | 161,820 | 165,923 |
Cash and cash equivalents at beginning of period | 946,249 | 533,748 |
Cash and cash equivalents at end of period | 1,108,069 | 699,671 |
DaVita HealthCare Partners Inc. | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 183,289 | 30,164 |
Changes in operating assets and liabilities and non-cash items included in net income | -28,933 | -26,097 |
Net cash (used in) provided by operating activities | 154,356 | 4,067 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -11,100 | -19,582 |
Proceeds from asset and business sales | ' | 60,650 |
Purchases/proceeds from investment sales and other items | -776 | -125 |
Net cash provided by (used in) investing activities | -11,876 | 40,943 |
Cash flows from financing activities: | ' | ' |
Long-term debt and related financing costs, net | -62,853 | -50,725 |
Intercompany borrowing | 90,289 | 101,717 |
Other items | 21,786 | 12,790 |
Net cash provided by (used in) financing activities | 49,222 | 63,782 |
Net increase (decrease) in cash and cash equivalents | 191,702 | 108,792 |
Cash and cash equivalents at beginning of period | 602,188 | 195,037 |
Cash and cash equivalents at end of period | 793,890 | 303,829 |
Guarantor Subsidiaries | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 156,272 | 6,162 |
Changes in operating assets and liabilities and non-cash items included in net income | -2,155 | 302,603 |
Net cash (used in) provided by operating activities | 154,117 | 308,765 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -60,113 | -51,574 |
Acquisitions | -67,857 | -81,505 |
Proceeds from asset and business sales | 56 | 1,707 |
Purchases/proceeds from investment sales and other items | 135 | -21 |
Net cash provided by (used in) investing activities | -127,779 | -131,393 |
Cash flows from financing activities: | ' | ' |
Long-term debt and related financing costs, net | -1,579 | -3,907 |
Intercompany borrowing | -57,572 | -121,198 |
Other items | 764 | 4,174 |
Net cash provided by (used in) financing activities | -58,387 | -120,931 |
Net increase (decrease) in cash and cash equivalents | -32,049 | 56,441 |
Cash and cash equivalents at beginning of period | 175,004 | 166,107 |
Cash and cash equivalents at end of period | 142,955 | 222,548 |
Non-Guarantor Subsidiaries | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 83,975 | 114,485 |
Changes in operating assets and liabilities and non-cash items included in net income | 26,659 | -48,110 |
Net cash (used in) provided by operating activities | 110,634 | 66,375 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -55,349 | -45,568 |
Acquisitions | ' | -9,993 |
Purchases/proceeds from investment sales and other items | -789 | ' |
Net cash provided by (used in) investing activities | -56,138 | -55,561 |
Cash flows from financing activities: | ' | ' |
Long-term debt and related financing costs, net | -721 | -9,055 |
Intercompany borrowing | -32,717 | 19,481 |
Other items | -19,522 | -20,669 |
Net cash provided by (used in) financing activities | -52,960 | -10,243 |
Effect of exchange rate changes on cash | 631 | 119 |
Net increase (decrease) in cash and cash equivalents | 2,167 | 690 |
Cash and cash equivalents at beginning of period | 169,057 | 172,604 |
Cash and cash equivalents at end of period | 171,224 | 173,294 |
Consolidating Adjustments | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | -211,799 | -91,077 |
Changes in operating assets and liabilities and non-cash items included in net income | $211,799 | $91,077 |