Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
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 | ' | 214,900,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Patient service revenues | $2,242,533 | $2,126,699 | $6,543,880 | $6,155,223 |
Less: Provision for uncollectible accounts | -98,971 | -74,477 | -270,220 | -216,725 |
Net patient service revenues | 2,143,562 | 2,052,222 | 6,273,660 | 5,938,498 |
Capitated revenues | 848,546 | 747,264 | 2,435,480 | 2,219,953 |
Other revenues | 259,716 | 200,100 | 757,949 | 542,390 |
Total net revenues | 3,251,824 | 2,999,586 | 9,467,089 | 8,700,841 |
Operating expenses and charges: | ' | ' | ' | ' |
Patient care costs and other costs | 2,326,534 | 2,095,334 | 6,752,844 | 6,070,545 |
General and administrative | 322,822 | 305,138 | 905,519 | 857,658 |
Depreciation and amortization | 149,196 | 132,765 | 437,682 | 389,263 |
Provision for uncollectible accounts | 3,961 | 1,498 | 9,680 | 3,636 |
Equity investment income | -5,225 | -9,223 | -18,692 | -26,239 |
Loss contingency reserve | 17,000 | 97,000 | 17,000 | 397,000 |
Contingent earn-out obligation adjustment | ' | ' | ' | -56,977 |
Total operating expenses and charges | 2,814,288 | 2,622,512 | 8,104,033 | 7,634,886 |
Operating income | 437,536 | 377,074 | 1,363,056 | 1,065,955 |
Debt expense | -99,878 | -108,421 | -312,345 | -322,334 |
Debt refinancing charges | ' | ' | -97,548 | ' |
Other (loss) income, net | -1,246 | 2,113 | 2,145 | 1,337 |
Consolidated income from continuing operations before income taxes | 336,412 | 270,766 | 955,308 | 744,958 |
Income tax expense (benefit) | 116,628 | 100,930 | 342,366 | 245,266 |
Income from continuing operations | 219,784 | 169,836 | 612,942 | 499,692 |
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 | 219,784 | 169,836 | 612,942 | 512,928 |
Less: Net income attributable to noncontrolling interests | -35,662 | -33,208 | -97,848 | -91,760 |
Net income | 184,122 | 136,628 | 515,094 | 421,168 |
Earnings per share: | ' | ' | ' | ' |
Basic income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $0.87 | $0.65 | $2.43 | $1.95 |
Basic net income per share attributable to DaVita HealthCare Partners Inc. | $0.87 | $0.65 | $2.43 | $2.01 |
Diluted income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $0.85 | $0.64 | $2.38 | $1.90 |
Diluted net income per share attributable to DaVita HealthCare Partners Inc. | $0.85 | $0.64 | $2.38 | $1.96 |
Weighted average shares for earnings per share: | ' | ' | ' | ' |
Basic | 212,617,238 | 210,394,560 | 212,086,735 | 209,725,439 |
Diluted | 217,236,493 | 214,902,860 | 216,695,033 | 214,631,587 |
Amounts attributable to DaVita HealthCare Partners Inc.: | ' | ' | ' | ' |
Income from continuing operations | 184,122 | 136,628 | 515,094 | 407,919 |
Discontinued operations | ' | ' | ' | 13,249 |
Net income | $184,122 | $136,628 | $515,094 | $421,168 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Net income | $219,784 | $169,836 | $612,942 | $512,928 |
Unrealized gains (losses) on interest rate swap and cap agreements: | ' | ' | ' | ' |
Unrealized gain (loss) on interest rate swap and cap agreements | 537 | -7,733 | -7,177 | 1,583 |
Reclassifications of net swap and cap agreements realized loss into net income | 1,403 | 3,464 | 9,759 | 9,433 |
Unrealized (loss) gains on investments: | ' | ' | ' | ' |
Unrealized (loss) gain on investments | -392 | 648 | 517 | 1,367 |
Reclassification of net investment realized gains into net income | ' | ' | -207 | -94 |
Foreign currency translation adjustments | -13,838 | 2,741 | -11,871 | -1,206 |
Other comprehensive (loss) income | -12,290 | -880 | -8,979 | 11,083 |
Total comprehensive income | 207,494 | 168,956 | 603,963 | 524,011 |
Less: Comprehensive income attributable to noncontrolling interests | -35,662 | -33,208 | -97,848 | -91,760 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $171,832 | $135,748 | $506,115 | $432,251 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $1,527,035 | $946,249 |
Short-term investments | 142,122 | 6,801 |
Accounts receivable, less allowance of $235,192 and $237,143 | 1,468,563 | 1,485,163 |
Inventories | 114,677 | 88,805 |
Other receivables | 346,712 | 349,090 |
Other current assets | 172,255 | 176,414 |
Income tax receivable | ' | 10,315 |
Deferred income taxes | 407,071 | 409,441 |
Total current assets | 4,178,435 | 3,472,278 |
Property and equipment, net of accumulated depreciation of $1,997,894 and $1,778,259 | 2,359,203 | 2,189,411 |
Intangibles, net of accumulated amortization of $577,124 and $483,773 | 1,997,772 | 2,024,373 |
Equity investments | 66,728 | 40,686 |
Long-term investments | 87,307 | 79,557 |
Other long-term assets | 67,330 | 79,598 |
Goodwill | 9,344,641 | 9,212,974 |
Total assets | 18,101,416 | 17,098,877 |
LIABILITIES AND EQUITY | ' | ' |
Accounts payable | 442,183 | 435,465 |
Other liabilities | 503,198 | 464,422 |
Accrued compensation and benefits | 761,912 | 603,013 |
Medical payables | 306,076 | 287,452 |
Loss contingency reserve | 414,000 | 397,000 |
Current portion of long-term debt | 121,530 | 274,697 |
Income tax payable | 48,732 | ' |
Total current liabilities | 2,597,631 | 2,462,049 |
Long-term debt | 8,380,903 | 8,141,231 |
Other long-term liabilities | 368,475 | 380,337 |
Deferred income taxes | 844,189 | 812,419 |
Total liabilities | 12,191,198 | 11,796,036 |
Commitments and contingencies | ' | ' |
Noncontrolling interests subject to put provisions | 758,743 | 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; 214,878,274 and 213,163,248 shares issued and outstanding at September 30, 2014 and at December 31, 2013, respectively) | 215 | 213 |
Additional paid-in capital | 1,107,368 | 1,070,922 |
Retained earnings | 3,879,083 | 3,363,989 |
Accumulated other comprehensive loss | -11,624 | -2,645 |
Total DaVita HealthCare Partners Inc. shareholders' equity | 4,975,042 | 4,432,479 |
Noncontrolling interests not subject to put provisions | 176,433 | 173,062 |
Total equity | 5,151,475 | 4,605,541 |
Total liabilities and equity | $18,101,416 | $17,098,877 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $235,192 | $237,143 |
Property and equipment, accumulated depreciation | 1,997,894 | 1,778,259 |
Intangibles, accumulated amortization | $577,124 | $483,773 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 214,878,274 | 213,163,248 |
Common stock, shares outstanding | 214,878,274 | 213,163,248 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $612,942 | $512,928 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Loss contingency reserve | 17,000 | 397,000 |
Depreciation and amortization | 437,335 | 389,387 |
Debt refinancing charges | 97,548 | ' |
Stock-based compensation expense | 44,323 | 47,095 |
Tax benefits from stock award exercises | 45,527 | 40,870 |
Excess tax benefits from stock award exercises | -32,665 | -31,722 |
Deferred income taxes | -2,167 | -52,085 |
Equity investment income, net | 6,007 | 1,074 |
Other non-cash charges (income) and loss on disposal of assets | 30,604 | -54,203 |
Changes in operating assets and liabilities, other than from acquisitions and divestitures: | ' | ' |
Accounts receivable | 16,610 | 20,856 |
Inventories | -25,198 | -5,494 |
Other receivables and other current assets | 7,563 | -35,757 |
Other long-term assets | 2,622 | 17,861 |
Accounts payable | 2,332 | -71,581 |
Accrued compensation and benefits | 147,570 | 114,877 |
Other current liabilities | 72,932 | 91,503 |
Income taxes | 72,283 | -15,212 |
Other long-term liabilities | -23,770 | 51,757 |
Net cash provided by operating activities | 1,529,398 | 1,419,154 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -443,507 | -399,527 |
Acquisitions | -218,117 | -234,802 |
Proceeds from asset and business sales | 3,620 | 62,282 |
Purchase of investments available for sale | -7,138 | -6,630 |
Purchase of investments held-to-maturity | -163,046 | -1,034 |
Proceeds from sale of investments available for sale | 1,321 | 1,091 |
Proceeds from sale of investments held-to-maturity | 27,781 | 1,376 |
Purchase of intangible assets and equity investment | -50 | -53 |
Purchase of an equity investment | -32,483 | ' |
Distributions received on equity investments | 434 | 211 |
Net cash provided by (used in) investing activities | -831,185 | -577,086 |
Cash flows from financing activities: | ' | ' |
Borrowings | 46,619,292 | 49,941,883 |
Payments on long-term debt and other financing costs | -46,587,984 | -50,325,455 |
Deferred financing costs and debt redemption costs | -122,154 | -719 |
Distributions to noncontrolling interests | -105,143 | -99,736 |
Stock award exercises and other share issuances, net | 14,524 | 12,432 |
Excess tax benefits from stock award exercises | 32,665 | 31,722 |
Contributions from noncontrolling interests | 38,083 | 30,041 |
Proceeds from sales of additional noncontrolling interests | 3,777 | 6,083 |
Purchases from noncontrolling interests | -12,069 | -474 |
Net cash provided by (used in) financing activities | -119,009 | -404,223 |
Effect of exchange rate changes on cash and cash equivalents | 1,582 | -899 |
Net increase in cash and cash equivalents | 580,786 | 436,946 |
Cash and cash equivalents at beginning of period | 946,249 | 533,748 |
Cash and cash equivalents at end of period | $1,527,035 | $970,694 |
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 | 612,942 | 65,262 | ' | ' | 515,094 | ' | ' | 515,094 | 32,586 |
Other comprehensive income | -8,979 | ' | ' | ' | ' | ' | -8,979 | -8,979 | ' |
Stock unit shares issued (in shares) | ' | ' | 298,000 | ' | ' | ' | ' | ' | ' |
Stock unit shares issued | ' | ' | ' | -27 | ' | ' | ' | -27 | ' |
Stock-settled SAR shares issued (in shares) | ' | ' | 1,417,000 | ' | ' | ' | ' | ' | ' |
Stock-settled SAR shares issued | ' | ' | 2 | -2 | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | 44,323 | ' | ' | ' | 44,323 | ' |
Excess tax benefits from stock awards exercised | ' | ' | ' | 32,665 | ' | ' | ' | 32,665 | ' |
Distributions to noncontrolling interests | ' | -67,150 | ' | ' | ' | ' | ' | ' | -37,993 |
Contributions from noncontrolling interests | ' | 26,926 | ' | ' | ' | ' | ' | ' | 11,157 |
Sales and assumptions of additional noncontrolling interests | ' | 852 | ' | 355 | ' | ' | ' | 355 | 4,165 |
Purchase and gains from noncontrolling interests | ' | -4,809 | ' | -716 | ' | ' | ' | -716 | -6,544 |
Adjustment in ownership interests | ' | ' | ' | 210 | ' | ' | ' | 210 | ' |
Changes in fair value of noncontrolling interests | ' | 40,362 | ' | -40,362 | ' | ' | ' | -40,362 | ' |
Ending Balance at Sep. 30, 2014 | $5,151,475 | $758,743 | $215 | $1,107,368 | $3,879,083 | ' | ($11,624) | $4,975,042 | $176,433 |
Ending Balance (in shares) at Sep. 30, 2014 | 214,878,274 | ' | 214,878,000 | ' | ' | ' | ' | ' | ' |
Condensed_consolidated_interim
Condensed consolidated interim financial statements | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 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 adjustments and disclosures. |
Earnings_per_share
Earnings per share | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic: | |||||||||||||||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 136,628 | $ | 515,094 | $ | 407,919 | |||||||||
Increase in noncontrolling interests redemption rights in excess of fair value | — | 259 | — | — | |||||||||||||
Income from continuing operations for basic earnings per share calculation | $ | 184,122 | $ | 136,887 | $ | 515,094 | $ | 407,919 | |||||||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | — | — | — | 13,249 | |||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. for basic earnings per share calculation | $ | 184,122 | $ | 136,887 | $ | 515,094 | $ | 421,168 | |||||||||
Weighted average shares outstanding during the period | 214,810 | 212,584 | 214,280 | 211,914 | |||||||||||||
Vested stock units | 1 | 5 | 1 | 5 | |||||||||||||
Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger | (2,194 | ) | (2,194 | ) | (2,194 | ) | (2,194 | ) | |||||||||
Weighted average shares for basic earnings per share calculation | 212,617 | 210,395 | 212,087 | 209,725 | |||||||||||||
Basic income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $ | 0.87 | $ | 0.65 | $ | 2.43 | $ | 1.95 | |||||||||
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 | $ | 0.65 | $ | 2.43 | $ | 2.01 | |||||||||
Diluted: | |||||||||||||||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 136,628 | $ | 515,094 | $ | 407,919 | |||||||||
Increase in noncontrolling interests redemption rights in excess of fair value | — | 259 | — | — | |||||||||||||
Income from continuing operations for diluted earnings per share calculation | $ | 184,122 | $ | 136,887 | $ | 515,094 | $ | 407,919 | |||||||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | — | — | — | 13,249 | |||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. for diluted earnings per share calculation | $ | 184,122 | $ | 136,887 | $ | 515,094 | $ | 421,168 | |||||||||
Weighted average shares outstanding during the period | 214,810 | 212,584 | 214,280 | 211,914 | |||||||||||||
Vested stock units | 1 | 5 | 1 | 5 | |||||||||||||
Assumed incremental shares from stock plans | 2,425 | 2,314 | 2,414 | 2,713 | |||||||||||||
Weighted average shares for diluted earnings per share calculation | 217,236 | 214,903 | 216,695 | 214,632 | |||||||||||||
Diluted income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $ | 0.85 | $ | 0.64 | $ | 2.38 | $ | 1.9 | |||||||||
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 | $ | 0.64 | $ | 2.38 | $ | 1.96 | |||||||||
Anti-dilutive stock-settled awards excluded from calculation(1) | 1,422 | 4,908 | 1,804 | 3,871 | |||||||||||||
(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 | 9 Months Ended |
Sep. 30, 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 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 nine months ended September 30, 2014, the Company’s allowance for doubtful accounts decreased by approximately $1,951. This was primarily due to an increase in Medicare and commercial collections, partially offset by an increase in dialysis provision for uncollectible accounts. 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 | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 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: | |||||||||||||||||||||||||
September 30, 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 | $ | 140,722 | $ | — | $ | 140,722 | $ | 5,601 | $ | — | $ | 5,601 | |||||||||||||
Investments in mutual funds and common stock | — | 26,237 | 26,237 | — | 19,421 | 19,421 | |||||||||||||||||||
$ | 140,722 | $ | 26,237 | $ | 166,959 | $ | 5,601 | $ | 19,421 | $ | 25,022 | ||||||||||||||
Short-term investments | $ | 140,722 | $ | 1,400 | $ | 142,122 | $ | 5,601 | $ | 1,200 | $ | 6,801 | |||||||||||||
Long-term investments | — | 24,837 | 24,837 | — | 18,221 | 18,221 | |||||||||||||||||||
$ | 140,722 | $ | 26,237 | $ | 166,959 | $ | 5,601 | $ | 19,421 | $ | 25,022 | ||||||||||||||
The cost of the certificates of deposit and money market funds at September 30, 2014 and December 31, 2013 approximates their fair value. As of September 30, 2014 and December 31, 2013, the available-for-sale investments included $5,594 and $5,096 of gross pre-tax unrealized gains, respectively. During the nine months ended September 30, 2014, the Company recorded gross pre-tax unrealized gains of $838, or $517 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the nine months ended September 30, 2014, the Company sold investments in mutual funds for net proceeds of $1,321 and recognized a pre-tax gain of $340, or $207 after-tax, which was previously recorded in other comprehensive income. During the nine months ended September 30, 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 September 30, 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 September 30, 2014, this minimum cash balance was approximately $56,000. |
Goodwill
Goodwill | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
5. Goodwill | |||||||||||||||||
Changes in goodwill by reportable segments were as follows: | |||||||||||||||||
Nine months ended September 30, 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 | 85,779 | 48,548 | 12,072 | 146,399 | |||||||||||||
Divestitures | (1,851 | ) | — | — | (1,851 | ) | |||||||||||
Other adjustments | — | (2,277 | ) | (10,604 | ) | (12,881 | ) | ||||||||||
Balance at September 30, 2014 | $ | 5,553,401 | $ | 3,562,433 | $ | 228,807 | $ | 9,344,641 | |||||||||
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 within 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. | |||||||||||||||||
HCP’s current and expected future operating results have been eroded, primarily as a result of recent reductions in its Medicare Advantage reimbursement rates. As a result, the Company has determined that three of its HCP reporting units, HCP California, HCP Nevada and HCP New Mexico, are at risk of goodwill impairment. HCP California, HCP Nevada and HCP New Mexico have goodwill of $2,511,477, $517,618, and $72,130, respectively. | |||||||||||||||||
The Company’s preliminary valuations of these three businesses as of September 30, 2014, resulted in the estimated fair values of HCP California, HCP Nevada and HCP New Mexico exceeding their total carrying values by approximately 5.3%, 11.3% and 8.3%, respectively. Further reductions in HCP’s reimbursement rates or other significant adverse changes in its expected future cash flows or valuation assumptions could result in a goodwill impairment charge in the future. | |||||||||||||||||
For example, a sustained, long-term reduction of 3% in operating income for HCP California, HCP Nevada and HCP New Mexico could reduce their estimated fair values by up to 2.4%, 2.9% and 2.7%, respectively. Separately, an increase in their respective discount rates of 100 basis points could reduce the estimated fair values of HCP California, HCP Nevada and HCP New Mexico by up to 5.1%, 6.0% and 5.7%, respectively. | |||||||||||||||||
During the first nine months of 2014, the Company did not record any goodwill impairment charges. Except as described above, none of the goodwill associated with the Company’s various other reporting units was considered at risk of impairment as of September 30, 2014. 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 key 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 | 9 Months Ended | ||||
Sep. 30, 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, 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 nine months ended September 30, 2014: | |||||
Nine months ended | |||||
September 30, 2014 | |||||
Health care costs payable, beginning of the period | $ | 172,310 | |||
Add: Components of incurred health care costs | |||||
Current year | 1,180,740 | ||||
Prior years | 6,442 | ||||
Total incurred health care costs | 1,187,182 | ||||
Less: Claims paid | |||||
Current year | 993,731 | ||||
Prior years | 156,525 | ||||
Total claims paid | 1,150,256 | ||||
Health care costs payable, end of the period | $ | 209,236 | |||
Our prior year estimates of health care costs payable increased by $6,442 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 | 9 Months Ended |
Sep. 30, 2014 | |
Income taxes | ' |
7. Income taxes | |
As of September 30, 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 $33,207, all of which would impact the Company’s effective tax rate if recognized. This balance represents a decrease of $27,331 from the December 31, 2013 balance of $60,538, of which $27,427 is due to a change of accounting method and did not impact the Company’s effective tax rate. | |
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. At September 30, 2014 and December 31, 2013, the Company had approximately $10,802 and $10,742, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefits. |
Longterm_debt
Long-term debt | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||
Long-term debt | ' | ||||||||||||||||||||||||||||||||||
8. Long-term debt | |||||||||||||||||||||||||||||||||||
Long-term debt was comprised of the following: | |||||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||
Senior Secured Credit Facilities: | |||||||||||||||||||||||||||||||||||
New Term Loan A | $ | 987,500 | $ | — | |||||||||||||||||||||||||||||||
New Term Loan B | 3,491,250 | — | |||||||||||||||||||||||||||||||||
Prior Term Loan A | — | 800,000 | |||||||||||||||||||||||||||||||||
Prior Term Loan A-3 | — | 1,282,500 | |||||||||||||||||||||||||||||||||
Prior Term Loan B | — | 1,697,500 | |||||||||||||||||||||||||||||||||
Prior Term Loan B-2 | — | 1,633,500 | |||||||||||||||||||||||||||||||||
Senior notes | 3,775,000 | 2,800,000 | |||||||||||||||||||||||||||||||||
Acquisition obligations and other notes payable | 70,847 | 67,352 | |||||||||||||||||||||||||||||||||
Capital lease obligations | 194,689 | 152,751 | |||||||||||||||||||||||||||||||||
Total debt principal outstanding | 8,519,286 | 8,433,603 | |||||||||||||||||||||||||||||||||
Discount on long-term debt | (16,853 | ) | (17,675 | ) | |||||||||||||||||||||||||||||||
8,502,433 | 8,415,928 | ||||||||||||||||||||||||||||||||||
Less current portion | (121,530 | ) | (274,697 | ) | |||||||||||||||||||||||||||||||
$ | 8,380,903 | $ | 8,141,231 | ||||||||||||||||||||||||||||||||
Scheduled maturities and pay-outs of long-term debt at September 30, 2014 were as follows: | |||||||||||||||||||||||||||||||||||
2014 (remainder of the year) | 35,170 | ||||||||||||||||||||||||||||||||||
2015 | 113,185 | ||||||||||||||||||||||||||||||||||
2016 | 116,633 | ||||||||||||||||||||||||||||||||||
2017 | 142,834 | ||||||||||||||||||||||||||||||||||
2018 | 154,782 | ||||||||||||||||||||||||||||||||||
2019 | 728,303 | ||||||||||||||||||||||||||||||||||
Thereafter | 7,228,379 | ||||||||||||||||||||||||||||||||||
During the first nine months of 2014, the Company made mandatory principal payments under its then existing Senior Secured Credit Facilities (before entering into a new senior secured credit agreement and repaying all outstanding amounts under the then existing 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. During the third quarter of 2014 we made mandatory principal payments under our New Senior Secured Credit Facility (the New Credit Agreement), as described below, totaling $12,500 on the New Term Loan A and $8,750 on the New Term Loan B. | |||||||||||||||||||||||||||||||||||
In June 2014, the Company entered into a $5,500,000 senior secured credit agreement. The New Credit Agreement consists of a five year Revolving Credit Facility in the aggregate principal amount of $1,000,000 (the New Revolver), a five year Term Loan A facility in the aggregate principal amount of $1,000,000 (the New Term Loan A) and a seven year Term Loan B facility in the aggregate principal amount of $3,500,000 (the New Term Loan B and collectively with the New Revolver and the New Term Loan A, the New Loans). In addition, the Company can increase the existing revolving commitments and enter into one or more incremental term loan facilities in an amount not to exceed the sum of $1,500,000 (less the amount of other permitted indebtedness incurred or issued in reliance on such amount), plus an amount of indebtedness such that the senior secured leverage ratio is not in excess of 3.50 to 1.00 after giving effect to such borrowings. The New Revolver and the New Term Loan A initially bear interest at LIBOR plus an interest rate margin of 1.75% which is subject to adjustment depending upon the Company’s leverage ratio and can range from 1.50% to 2.00%. The New Term Loan A requires annual principal payments beginning on September 30, 2014 of $25,000 in 2014, $50,000 in 2015, $62,500 in 2016, $87,500 in 2017 and $100,000 in 2018 with the balance of $675,000 due in 2019. The New Term Loan B bears interest at LIBOR (Floor of 0.75%) plus an interest rate margin of 2.75%. The New Term Loan B requires annual principal payments of $17,500 in 2014 and $35,000 for each year from 2015 through 2020, with the balance of $3,272,500 due in 2021. These New Loans under the New Credit Agreement are guaranteed by certain of the Company’s direct and indirect wholly-owned domestic subsidiaries holding most of the Company’s domestic assets and are secured by substantially all of the Company’s and the guarantors’ assets. The New Credit Agreement contains certain customary affirmative and negative covenants such as various restrictions or limitations on the amount of investments, acquisitions, the payment of dividends and redemptions and the incurrence of other indebtedness. Many of these restrictions and limitations will not apply as long as the Company’s leverage ratio is below 3.50 to 1.00. In addition, the New Credit Agreement places limitations on the amount of tangible net assets of the non-guarantor subsidiaries and also requires compliance with a maximum leverage ratio covenant. | |||||||||||||||||||||||||||||||||||
In addition, in June 2014, the Company issued $1,750,000 5 1⁄8% Senior Notes due 2024 (the 5 1⁄8% Senior Notes). The 5 1⁄8% Senior Notes pay interest on January 15 and July 15 of each year beginning January 15, 2015. The 5 1⁄8% Senior Notes are unsecured obligations and will rank equally in right of payment with our existing and future unsecured senior indebtedness. The 5 1⁄8% Senior Notes are guaranteed by each of the Company’s domestic subsidiaries that guarantees the Company’s New Credit Agreement. The Company may redeem up to 35% of the 5 1⁄8% Senior Notes at any time prior to July 15, 2017 at a certain specified price from the proceeds of one or more equity offerings. In addition, the Company may redeem the 5 1⁄8% Senior Notes at any time prior to July 15, 2019 at make whole redemption prices and after such date at certain specified redemption prices. | |||||||||||||||||||||||||||||||||||
The Company received total proceeds from these borrowings of $6,250,000, $4,500,000 from the issuance of the New Term Loans and $1,750,000 from the issuance of the 5 1⁄8% Senior Notes. The Company used a portion of the proceeds to pay off the total outstanding principal balances under its then existing Senior Secured Credit Facilities plus accrued interest totaling $5,362,428 and in addition, to purchase pursuant to a cash tender offer $483,093 of the outstanding principal balances of the Company’s $775,000 6 3⁄8% Senior Notes due 2018 (6 3⁄8% Senior Notes) plus accrued interest and cash tender premium totaling $512,386. The total amount paid for the 6 3⁄8% Senior Notes from the cash tender offer was $1,051.25 per 1,000 of principal amount of the 6 3⁄8% Senior Notes, which resulted in the Company paying a cash tender premium of $24,759 for the redemption of this portion of the 6 3⁄8% Senior Notes. The Company also incurred an additional $81,569 in fees, discounts and other professional expenses associated with these transactions. | |||||||||||||||||||||||||||||||||||
In July 2014, the Company also purchased an additional $188 principal amount of the 6 3⁄8% Senior Notes plus accrued interest totaling $194 pursuant to the cash tender offer at a price of $1,021.25 per 1,000 of principal amount of the 6 3⁄8% Senior Notes, which resulted in the Company paying an additional cash tender premium of $4. | |||||||||||||||||||||||||||||||||||
In addition, in July 2014, the Company redeemed the remaining outstanding principal balance of the 6 3⁄8% Senior Notes of $291,719 at a redemption price of $1,047.81 per 1,000 of principal amount of the 6 3⁄8% Senior Notes plus accrued interest and a redemption premium which totaled $309,954. This resulted in an additional redemption premium of $13,947 being recorded as debt refinancing charges. | |||||||||||||||||||||||||||||||||||
In addition, the Company terminated $1,137,500 notional amounts of amortizing swaps and also terminated $600,000 of forward swaps during June 2014, that resulted in the Company recognizing a loss of $3,140, of which $2,972 was previously recorded in other comprehensive income due to the Company’s previously outstanding principal debt being paid-off as described above, and as a result of future forecasted transactions that are no longer probable. The loss is included as a component of the Company’s debt refinancing charges. During the nine months ended September 30, 2014, the Company recognized debt expense of $6,137 from these swaps. | |||||||||||||||||||||||||||||||||||
As a result of these transactions, the Company recorded debt refinancing charges of $97,548 that consist of the cash tender premiums, the redemption premium, the write-off of existing deferred financing costs, the write-off of certain new refinancing costs, other professional fees and losses associated with the termination of several of the Company’s interest rate swap agreements. | |||||||||||||||||||||||||||||||||||
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 floating rate 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 September 30, 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 $866,875. 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 New Term Loan A to fixed rates ranging from 0.49% to 0.52%, resulting in an overall weighted average effective interest rate of 2.26%, including the New Term Loan A margin of 1.75%. The overall weighted average effective interest rate also includes the effects of $120,625 of unhedged New Term Loan A debt that bears interest at LIBOR plus an interest rate margin of 1.75%. The swap agreements expire on September 30, 2016 and require monthly interest payments. During the nine months ended September 30, 2014, the Company recognized debt expense of $2,387 from these swaps. As of September 30, 2014, the total fair value of these swap agreements was a net asset of approximately $2,702. The Company estimates that approximately $2,035 of existing unrealized pre-tax losses in other comprehensive income at September 30, 2014 will be reclassified into income over the next twelve months. | |||||||||||||||||||||||||||||||||||
As of September 30, 2014, the Company maintains several interest rate cap agreements that were entered into in March 2013 with notional amounts totaling $2,735,000 on the Company’s New Term Loan B 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 New Term Loan B. During the nine months ended September 30, 2014, the Company recognized debt expense of $1,829 from these caps. The cap agreements expire on September 30, 2016. As of September 30, 2014, the total fair value of these cap agreements was an asset of approximately $2,514. During the nine months ended September 30, 2014, the Company recorded a loss of $5,052 in other comprehensive income due to a decrease in the unrealized fair value of these cap agreements. | |||||||||||||||||||||||||||||||||||
Previously, the Company maintained five other interest rate cap agreements with notional amounts totaling $1,250,000. These agreements had 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 New Term Loan B debt. However, these interest rate cap agreements expired on September 30, 2014. During the nine months ended September 30, 2014, the Company recognized $2,691 of debt expense related to these cap agreements. | |||||||||||||||||||||||||||||||||||
The following table summarizes the Company’s derivative instruments as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||
September 30, 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 | $ | 2,035 | Other short-term liabilities | $ | 12,069 | |||||||||||||||||||||||||||||
Interest rate swap agreements | Other long-term assets | $ | 4,737 | Other long-term assets | $ | 10,004 | |||||||||||||||||||||||||||||
Interest rate cap agreements | Other long-term assets | $ | 2,514 | 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 and nine months ended September 30, 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 | |||||||||||||||||||||||||||||||||
Derivatives designated | Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
as cash flow hedges | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Interest rate swap agreements | $ | 1,058 | $ | (10,010 | ) | $ | (6,728 | ) | $ | 2,292 | Debt expense | $ | (795 | ) | $ | (4,162 | ) | $ | (11,495 | ) | $ | (11,528 | ) | ||||||||||||
(including | |||||||||||||||||||||||||||||||||||
refinancing | |||||||||||||||||||||||||||||||||||
charges) | |||||||||||||||||||||||||||||||||||
Interest rate cap agreements | (178 | ) | (2,646 | ) | (5,052 | ) | 299 | Debt expense | (1,507 | ) | (1,507 | ) | (4,521 | ) | (3,911 | ) | |||||||||||||||||||
(including | |||||||||||||||||||||||||||||||||||
refinancing | |||||||||||||||||||||||||||||||||||
charges) | |||||||||||||||||||||||||||||||||||
Tax benefit (expense) | (343 | ) | 4,923 | 4,603 | (1,008 | ) | 899 | 2,205 | 6,257 | 6,006 | |||||||||||||||||||||||||
Total | $ | 537 | $ | (7,733 | ) | $ | (7,177 | ) | $ | 1,583 | $ | (1,403 | ) | $ | (3,464 | ) | $ | (9,759 | ) | $ | (9,433 | ) | |||||||||||||
As of September 30, 2014, the interest rate on the Company’s New Term Loan B debt is effectively fixed because of an embedded LIBOR floor which is higher than actual LIBOR as of such date and the New Term Loan B is 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 rate on a majority of the Company’s New Term Loan A is economically fixed as a result of interest rate swaps. | |||||||||||||||||||||||||||||||||||
As a result of embedded LIBOR floors on the New Term Loan B debt agreement and the swap and cap agreements, the Company’s overall weighted average effective interest rate on the Senior Secured Credit Facilities was 3.43%, based upon the current margins in effect of 1.75% for the New Term Loan A and 2.75% for the New Term Loan B, as of September 30, 2014. | |||||||||||||||||||||||||||||||||||
The Company’s overall weighted average effective interest rate during the third quarter of 2014 was 4.52% and as of September 30, 2014 was 4.46%. | |||||||||||||||||||||||||||||||||||
As of September 30, 2014, the Company had undrawn revolving credit facilities totaling $1,000,000 of which approximately $96,000 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 | 9 Months Ended |
Sep. 30, 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: As previously disclosed, the U.S. Attorney’s Office for the District of Colorado and the OIG have been investigating, among other things, the Company’s 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. This investigation has been described in the Company’s prior Reports on Forms 10-K and 10-Q and referred to as the 2010 U.S. Attorney Physician Relationship Investigation. This investigation overlapped substantially with the investigation described below under the caption 2011 U.S. Attorney Physician Relationship Investigation. The Company disclosed earlier this year it had reached an agreement in principle with the government to resolve these matters. | |
As described more fully in the Company’s current report on Form 8-K filed on October 23, 2014, the Company entered into a final settlement agreement on October 22, 2014 (the Settlement Agreement) with the United States of America, acting through the United States Department of Justice and on behalf of the OIG, the Defense Health Agency on behalf of TRICARE, through its General Counsel (collectively, the United States) and relator David Barbetta, to resolve the pending 2010 and 2011 U.S. Attorney Physician Relationship Investigations. In connection with the resolution of these matters, the Company has agreed to pay to the United States $350 million plus accrued interest from the date of the Company’s agreement in principle with the United States, plus a civil forfeiture of $39 million. In addition, the Company has agreed in principle to a settlement of certain state Medicaid claims in the amount of $11.5 million plus interest. Under the Settlement Agreement, among other things, the United States agrees to release the Company from any civil or administrative monetary liability arising from allegations that the Company caused the submission of claims to the federal health care programs that were ineligible for reimbursement due to certain violations of the Anti-Kickback Statute in connection with certain of its dialysis center joint venture arrangements, and the United States and the relator agree to dismissal of the civil action filed by the relator under the qui tam provisions of the federal False Claims Act. The Company also has entered into a five-year corporate integrity agreement (the Corporate Integrity Agreement) with the OIG. The Corporate Integrity Agreement, among other things, (i) requires that the Company maintain certain elements of its compliance programs, (ii) imposes certain expanded compliance-related requirements during the term of the Corporate Integrity Agreement, including the appointment of a compliance monitor, and (iii) contains certain business restrictions related to a subset of the Company’s joint venture arrangements, including the Company’s agreeing to: (1) unwind 11 joint venture transactions that were created through partial divestitures to or partial acquisitions from nephrologists and that cover 26 of the Company’s 2,119 clinics; (2) not enter into certain types of partial divestiture joint venture transactions with nephrologists during the term of the Corporate Integrity Agreement; and (3) certain other restrictions. In the event of a breach of the Corporate Integrity Agreement, the Company could become liable for payment of certain stipulated penalties, or could be excluded from participation in federal health care programs. The costs associated with compliance with the Corporate Integrity Agreement could be substantial and may be greater than we currently anticipate. In 2013, the Company accrued an estimated loss contingency reserve of $397,000 related to this matter. In the third quarter of 2014, the Company accrued an additional $17,000 related to this matter which resulted in an increase in the reserve from $397,000 to $414,000. | |
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 related 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 overlapped substantially with the 2010 U.S. Attorney Physician Relationship Investigation described above. As described above, both the 2010 and 2011 U.S. Attorney Physician Relationship Investigations have now been resolved. The United States has informed the Company that it has declined to proceed with any criminal charges in connection with this matter. | |
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 have not been finalized. | |
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. The Company has entered into a settlement with the lead plaintiff, subject to court approval. The terms of the settlement, which will be described in a court-approved notice, include enhancements to the Company’s corporate governance practices and provides that the Company will not oppose the derivative plaintiff’s application for an award of fees and expenses, the dollar amount of which is not material to the Company. | |
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 reached an agreement with the plaintiffs to settle the claim that was remanded to the trial court, and that settlement has been finalized. 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 | 9 Months Ended |
Sep. 30, 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 interests 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. | |
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. In addition, the Company has certain other potential commitments related to service agreements of approximately $1,000. | |
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. |
Longterm_incentive_compensatio
Long-term incentive compensation | 9 Months Ended |
Sep. 30, 2014 | |
Long-term incentive compensation | ' |
11. Long-term incentive compensation | |
Long-term incentive program (LTIP) compensation includes both stock-based awards (principally stock-settled stock appreciation rights, restricted stock units and performance stock units) as well as long-term performance-based cash awards. Long-term incentive compensation expense, which was primarily general and administrative in nature, was attributed to the dialysis and related lab services business, the HCP business, corporate support costs, and the ancillary services and strategic initiatives. | |
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 nine months ended September 30, 2014, the Company granted 1,502 stock-settled stock appreciation rights with an aggregate grant-date fair value of $24,606 and a weighted-average expected life of approximately 4.2 years, and also granted 329 stock units with an aggregate grant-date fair value of $23,767 and a weighted-average expected life of approximately 3.4 years, 105 of which are performance-based. | |
For the nine months ended September 30, 2014 and 2013, the Company recognized $88,323 and $58,204, respectively, in total LTIP expense, of which $44,323 and $47,095, respectively, was 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 September 30, 2014 and 2013 was $16,075 and $17,466, respectively. As of September 30, 2014, there was $147,760 of total estimated unrecognized compensation cost for outstanding LTIP awards, including $87,729 related to stock-based compensation arrangements under the Company’s equity compensation and stock purchase plans. The Company expects to recognize the performance-based cash component of these LTIP costs over a weighted average remaining period of 1.1 years and the stock-based component of these LTIP costs over a weighted average remaining period of 1.4 years. | |
For the nine months ended September 30, 2014 and 2013, the Company received $45,527 and $40,870, respectively, in actual tax benefits upon the exercise of stock awards. |
Comprehensive_income
Comprehensive income | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Comprehensive income | ' | ||||||||||||||||||||||||||||||||
12. Comprehensive income | |||||||||||||||||||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-14 | ||||||||||||||||||||||||||||||||
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 | $ | (1,702 | ) | $ | 3,822 | $ | (1,454 | ) | $ | 666 | $ | (2,344 | ) | $ | 3,120 | $ | (3,421 | ) | $ | (2,645 | ) | ||||||||||||
Unrealized gains (losses) | 880 | (567 | ) | (13,838 | ) | (13,525 | ) | (11,780 | ) | 838 | (11,871 | ) | (22,813 | ) | |||||||||||||||||||
Related income tax (expense) benefit | (343 | ) | 175 | — | (168 | ) | 4,603 | (321 | ) | — | 4,282 | ||||||||||||||||||||||
537 | (392 | ) | (13,838 | ) | (13,693 | ) | (7,177 | ) | 517 | (11,871 | ) | (18,531 | ) | ||||||||||||||||||||
Reclassification from accumulated other comprehensive income into net income | 2,302 | — | — | 2,302 | 16,016 | (340 | ) | — | 15,676 | ||||||||||||||||||||||||
Related tax | (899 | ) | — | — | (899 | ) | (6,257 | ) | 133 | — | (6,124 | ) | |||||||||||||||||||||
1,403 | — | — | 1,403 | 9,759 | (207 | ) | — | 9,552 | |||||||||||||||||||||||||
Ending balance | $ | 238 | $ | 3,430 | $ | (15,292 | ) | $ | (11,624 | ) | $ | 238 | $ | 3,430 | $ | (15,292 | ) | $ | (11,624 | ) | |||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||||||
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 | $ | (117 | ) | $ | 1,935 | $ | (5,152 | ) | $ | (3,334 | ) | $ | (15,402 | ) | $ | 1,310 | $ | (1,205 | ) | $ | (15,297 | ) | |||||||||||
Unrealized (losses) gains | (12,656 | ) | 1,059 | 2,741 | (8,856 | ) | 2,591 | 2,236 | (1,206 | ) | 3,621 | ||||||||||||||||||||||
Related income tax benefit (expense) | 4,923 | (411 | ) | — | 4,512 | (1,008 | ) | (869 | ) | — | (1,877 | ) | |||||||||||||||||||||
(7,733 | ) | 648 | 2,741 | (4,344 | ) | 1,583 | 1,367 | (1,206 | ) | 1,744 | |||||||||||||||||||||||
Reclassification from accumulated other comprehensive income into net income | 5,669 | — | — | 5,669 | 15,439 | (155 | ) | — | 15,284 | ||||||||||||||||||||||||
Related tax | (2,205 | ) | — | — | (2,205 | ) | (6,006 | ) | 61 | — | (5,945 | ) | |||||||||||||||||||||
3,464 | — | — | 3,464 | 9,433 | (94 | ) | — | 9,339 | |||||||||||||||||||||||||
Ending balance | $ | (4,386 | ) | $ | 2,583 | $ | (2,411 | ) | $ | (4,214 | ) | $ | (4,386 | ) | $ | 2,583 | $ | (2,411 | ) | $ | (4,214 | ) | |||||||||||
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 | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Acquisitions | ' | ||||
13. Acquisitions | |||||
During the first nine months of 2014, the Company acquired dialysis businesses and other businesses consisting of sixteen dialysis centers located in the U.S., four dialysis centers located outside the U.S. and other medical businesses for a total of $218,117 in net cash and deferred purchase price obligations totaling $23,777. 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: | |||||
Nine months ended | |||||
September 30, 2014 | |||||
Tangible assets, principally leasehold improvements and equipment, net of cash | $ | 4,424 | |||
Amortizable intangible-customer relationships | 74,351 | ||||
Other amortizable intangible and long-term assets | 18,316 | ||||
Goodwill | 146,399 | ||||
Noncontrolling interest | (1,596 | ) | |||
Aggregate purchase price | $ | 241,894 | |||
Amortizable intangible assets acquired during the first nine months of 2014 had weighted-average estimated useful lives of 9.7 years. The total amount of goodwill deductible for tax purposes associated with these acquisitions was approximately $124,105. | |||||
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 approximately $140,300 or a portion of that amount if certain EBITDA performance targets and quality margins are met over the next two years, if certain percentages of operating income are met over the next three years or if certain percentages of other annual EBITDA targets are met. As of September 30, 2014, the Company has estimated the fair value of these contingent earn-out obligations to be $41,163. | |||||
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 $41,163 recognized at September 30, 2014, a total of $15,747 is included in other liabilities and the remaining $25,416 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 nine months ended September 30, 2014: | |||||
Beginning balance, January 1, 2014 | $ | 28,058 | |||
Contingent earn-out obligations associated with acquisitions | 18,234 | ||||
Remeasurement of fair value for other contingent earn-outs | (2,414 | ) | |||
Payments of contingent earn-outs | (2,715 | ) | |||
$ | 41,163 | ||||
Variable_interest_entities
Variable interest entities | 9 Months Ended |
Sep. 30, 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. generally accepted accounting principles (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 September 30, 2014, these condensed consolidated financial statements include total assets of VIEs of $572,026 and total liabilities and noncontrolling interests of VIEs to third parties of $312,363. | |
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 | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 September 30, 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 | $ | 26,237 | $ | 26,237 | $ | — | $ | — | |||||||||
Interest rate cap agreements | $ | 2,514 | $ | — | $ | 2,514 | $ | — | |||||||||
Interest rate swap agreements | $ | 4,737 | $ | — | $ | 4,737 | $ | — | |||||||||
Funds on deposit with third parties | $ | 79,247 | $ | 79,247 | $ | — | $ | — | |||||||||
Liabilities | |||||||||||||||||
Contingent earn-out obligations | $ | 41,163 | $ | — | $ | — | $ | 41,163 | |||||||||
Interest rate swap agreements | $ | 2,035 | $ | — | $ | 2,035 | $ | — | |||||||||
Temporary equity | |||||||||||||||||
Noncontrolling interests subject to put provisions | $ | 758,743 | $ | — | $ | — | $ | 758,743 | |||||||||
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 probability of achieving gross margin 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 September 30, 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 $4,461,897 as of September 30, 2014, and the fair value was approximately $4,435,100 based upon quoted market prices. The fair value of the Company’s senior notes was approximately $3,834,700 at September 30, 2014 based upon quoted market prices, as compared to the carrying amount of $3,775,000. |
Segment_reporting
Segment reporting | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment reporting | ' | ||||||||||||||||
16. Segment reporting | |||||||||||||||||
The Company operates two major divisions, Kidney Care and HCP. The Kidney Care division is comprised of the Company’s U.S. dialysis and related lab services business, various other ancillary services and strategic initiatives, including its international dialysis operations, and the Company’s support expenses. The HCP division is comprised of the Company’s HealthCare Partners integrated healthcare business. | |||||||||||||||||
As of September 30, 2014, the Company’s 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 maker 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 is its 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 consist 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 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 | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Segment net revenues: | |||||||||||||||||
U.S. dialysis and related lab services | |||||||||||||||||
Patient service revenues: | |||||||||||||||||
External sources | $ | 2,153,914 | $ | 2,043,838 | $ | 6,279,263 | $ | 5,932,888 | |||||||||
Intersegment revenues | 10,701 | 7,867 | 27,617 | 23,537 | |||||||||||||
Total dialysis and related lab services revenues | 2,164,615 | 2,051,705 | 6,306,880 | 5,956,425 | |||||||||||||
Less: Provision for uncollectible accounts | (91,996 | ) | (71,819 | ) | (257,687 | ) | (208,475 | ) | |||||||||
Net dialysis and related lab services patient service revenues | 2,072,619 | 1,979,886 | 6,049,193 | 5,747,950 | |||||||||||||
Other revenues(1) | 3,427 | 3,016 | 10,159 | 9,335 | |||||||||||||
Total net dialysis and related lab services revenues | 2,076,046 | 1,982,902 | 6,059,352 | 5,757,285 | |||||||||||||
HCP | |||||||||||||||||
HCP revenues: | |||||||||||||||||
Capitated revenues | 827,933 | 730,400 | 2,382,656 | 2,168,828 | |||||||||||||
Net patient service revenues | 49,783 | 58,049 | 164,081 | 161,084 | |||||||||||||
Other revenues(2) | 14,013 | 14,156 | 72,566 | 37,459 | |||||||||||||
Intersegment capitated and other revenues | 251 | 144 | 608 | 144 | |||||||||||||
Total revenues | 891,980 | 802,749 | 2,619,911 | 2,367,515 | |||||||||||||
Other—Ancillary services and strategic initiatives | |||||||||||||||||
Net patient service revenues—U.S. | 5,250 | 4,159 | 14,112 | 10,648 | |||||||||||||
Net patient service revenues—International | 26,610 | 17,996 | 73,891 | 42,353 | |||||||||||||
Capitated revenues | 20,613 | 16,864 | 52,824 | 51,125 | |||||||||||||
Other external sources—U.S. | 240,770 | 181,499 | 670,441 | 491,244 | |||||||||||||
Other external sources—International | 1,507 | 1,428 | 4,783 | 4,352 | |||||||||||||
Intersegment revenues | 4,995 | 3,719 | 14,287 | 9,895 | |||||||||||||
Total ancillary services and strategic initiatives revenues | 299,745 | 225,665 | 830,338 | 609,617 | |||||||||||||
Total net segment revenues | 3,267,771 | 3,011,316 | 9,509,601 | 8,734,417 | |||||||||||||
Elimination of intersegment revenues | (15,947 | ) | (11,730 | ) | (42,512 | ) | (33,576 | ) | |||||||||
Consolidated net revenues | $ | 3,251,824 | $ | 2,999,586 | $ | 9,467,089 | $ | 8,700,841 | |||||||||
Segment operating margin (loss): | |||||||||||||||||
U.S. dialysis and related lab services | $ | 400,226 | $ | 305,987 | $ | 1,194,874 | $ | 792,215 | |||||||||
HCP | 46,339 | 97,862 | 182,341 | 287,328 | |||||||||||||
Other—Ancillary services and strategic initiatives | (5,502 | ) | (8,118 | ) | (5,744 | ) | (29,510 | ) | |||||||||
Total segment margin | 441,063 | 395,731 | 1,371,471 | 1,050,033 | |||||||||||||
Reconciliation of segment operating margin to consolidated income from continuing operations before income taxes: | |||||||||||||||||
Contingent earn-out obligation adjustment | — | — | — | 56,977 | |||||||||||||
Corporate support expenses | (3,527 | ) | (18,657 | ) | (8,415 | ) | (41,055 | ) | |||||||||
Consolidated operating income | 437,536 | 377,074 | 1,363,056 | 1,065,955 | |||||||||||||
Debt expense | (99,878 | ) | (108,421 | ) | (312,345 | ) | (322,334 | ) | |||||||||
Debt refinancing charges | — | — | (97,548 | ) | — | ||||||||||||
Other (loss) income | (1,246 | ) | 2,113 | 2,145 | 1,337 | ||||||||||||
Consolidated income from continuing operations before income taxes | $ | 336,412 | $ | 270,766 | $ | 955,308 | $ | 744,958 | |||||||||
(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, as well as revenue related to the maintenance of existing physician networks. | ||||||||||||||||
Depreciation and amortization expense by segment is as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
U.S. dialysis and related lab services. | $ | 101,870 | $ | 89,465 | $ | 297,477 | $ | 263,005 | |||||||||
HCP | 42,558 | 39,255 | 126,555 | 115,862 | |||||||||||||
Ancillary services and strategic initiatives | 4,768 | 4,045 | 13,650 | 10,396 | |||||||||||||
$ | 149,196 | $ | 132,765 | $ | 437,682 | $ | 389,263 | ||||||||||
Summary of assets by segment is as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Segment assets | |||||||||||||||||
U.S. dialysis and related lab services | $ | 11,097,897 | $ | 10,248,993 | |||||||||||||
HCP | 6,314,202 | 6,265,767 | |||||||||||||||
Other—Ancillary services and strategic initiatives | 689,317 | 584,117 | |||||||||||||||
Consolidated assets | $ | 18,101,416 | $ | 17,098,877 | |||||||||||||
Expenditures for property and equipment by segment is as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
U.S. dialysis and related lab services. | $ | 149,247 | $ | 128,799 | $ | 399,114 | $ | 359,574 | |||||||||
HCP | 6,121 | 6,281 | 16,401 | 20,660 | |||||||||||||
Ancillary services and strategic initiatives | 9,546 | 6,051 | 27,992 | 19,293 | |||||||||||||
$ | 164,914 | $ | 141,131 | $ | 443,507 | $ | 399,527 | ||||||||||
Changes_in_DaVita_HealthCare_P
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 136,628 | $ | 515,094 | $ | 421,168 | |||||||||
(Decrease) increase in paid-in capital for sales of noncontrolling interests | (316 | ) | 21 | 355 | (866 | ) | |||||||||||
Decrease in paid-in capital for the purchase of noncontrolling interests and adjustments to ownership interest | (1,962 | ) | — | (506 | ) | (474 | ) | ||||||||||
Net transfers to noncontrolling interests | (2,278 | ) | 21 | (151 | ) | (1,340 | ) | ||||||||||
Net income attributable to DaVita HealthCare Partners Inc., net of transfers to noncontrolling interests | $ | 181,844 | $ | 136,649 | $ | 514,943 | $ | 419,828 | |||||||||
New_accounting_standards
New accounting standards | 9 Months Ended |
Sep. 30, 2014 | |
New accounting standards | ' |
18. New accounting standards | |
In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
In April 2014, the FASB issued 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 | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 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 September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 1,592,398 | $ | 651,031 | $ | (896 | ) | $ | 2,242,533 | ||||||||||
Less: Provision for uncollectible accounts | — | (61,973 | ) | (36,998 | ) | — | (98,971 | ) | |||||||||||||
Net patient service revenues | — | 1,530,425 | 614,033 | (896 | ) | 2,143,562 | |||||||||||||||
Capitated revenues | — | 442,472 | 406,926 | (852 | ) | 848,546 | |||||||||||||||
Other revenues | 174,226 | 422,733 | 37,961 | (375,204 | ) | 259,716 | |||||||||||||||
Total net revenues | 174,226 | 2,395,630 | 1,058,920 | (376,952 | ) | 3,251,824 | |||||||||||||||
Operating expenses | 123,856 | 2,126,918 | 940,466 | (376,952 | ) | 2,814,288 | |||||||||||||||
Operating income | 50,370 | 268,712 | 118,454 | — | 437,536 | ||||||||||||||||
Debt expense, including debt refinancing charges | (98,496 | ) | (89,048 | ) | (8,730 | ) | 96,396 | (99,878 | ) | ||||||||||||
Other income (loss) | 94,258 | 388 | 504 | (96,396 | ) | (1,246 | ) | ||||||||||||||
Income tax expense (benefit) | 18,395 | 99,927 | (1,694 | ) | — | 116,628 | |||||||||||||||
Equity earnings in subsidiaries | 156,385 | 76,260 | — | (232,645 | ) | — | |||||||||||||||
Net income | 184,122 | 156,385 | 111,922 | (232,645 | ) | 219,784 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (35,662 | ) | (35,662 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 156,385 | $ | 111,922 | $ | (268,307 | ) | $ | 184,122 | ||||||||||
For the three months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 1,527,860 | $ | 602,708 | $ | (3,869 | ) | $ | 2,126,699 | ||||||||||
Less: Provision for uncollectible accounts | — | (47,381 | ) | (27,096 | ) | — | (74,477 | ) | |||||||||||||
Net patient service revenues | — | 1,480,479 | 575,612 | (3,869 | ) | 2,052,222 | |||||||||||||||
Capitated revenues | — | 357,058 | 392,040 | (1,834 | ) | 747,264 | |||||||||||||||
Other revenues | 159,546 | 384,676 | 26,411 | (370,533 | ) | 200,100 | |||||||||||||||
Total net revenues | 159,546 | 2,222,213 | 994,063 | (376,236 | ) | 2,999,586 | |||||||||||||||
Operating expenses | 117,216 | 2,014,126 | 867,406 | (376,236 | ) | 2,622,512 | |||||||||||||||
Operating income | 42,330 | 208,087 | 126,657 | — | 377,074 | ||||||||||||||||
Debt expense | (107,550 | ) | (83,432 | ) | (8,505 | ) | 91,066 | (108,421 | ) | ||||||||||||
Other income (expense) | 100,943 | (9,615 | ) | 1,851 | (91,066 | ) | 2,113 | ||||||||||||||
Income tax expense | 16,144 | 81,180 | 3,606 | — | 100,930 | ||||||||||||||||
Equity earnings in subsidiaries | 117,049 | 88,791 | — | (205,840 | ) | — | |||||||||||||||
Net income | 136,628 | 122,651 | 116,397 | (205,840 | ) | 169,836 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (33,208 | ) | (33,208 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 136,628 | $ | 122,651 | $ | 116,397 | $ | (239,048 | ) | $ | 136,628 | ||||||||||
For the nine months ended September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 4,622,943 | $ | 1,918,700 | $ | 2,237 | $ | 6,543,880 | |||||||||||
Less: Provision for uncollectible accounts | — | (169,133 | ) | (101,087 | ) | — | (270,220 | ) | |||||||||||||
Net patient service revenues | — | 4,453,810 | 1,817,613 | 2,237 | 6,273,660 | ||||||||||||||||
Capitated revenues | — | 1,261,385 | 1,175,354 | (1,259 | ) | 2,435,480 | |||||||||||||||
Other revenues | 518,468 | 1,241,043 | 105,964 | (1,107,526 | ) | 757,949 | |||||||||||||||
Total net revenues | 518,468 | 6,956,238 | 3,098,931 | (1,106,548 | ) | 9,467,089 | |||||||||||||||
Operating expenses | 358,968 | 6,141,200 | 2,710,413 | (1,106,548 | ) | 8,104,033 | |||||||||||||||
Operating income | 159,500 | 815,038 | 388,518 | — | 1,363,056 | ||||||||||||||||
Debt expense, including debt refinancing charges | (406,037 | ) | (277,854 | ) | (28,662 | ) | 302,660 | (409,893 | ) | ||||||||||||
Other income | 293,733 | 9,323 | 1,749 | (302,660 | ) | 2,145 | |||||||||||||||
Income tax expense | 18,826 | 315,473 | 8,067 | — | 342,366 | ||||||||||||||||
Equity earnings in subsidiaries | 486,724 | 255,690 | — | (742,414 | ) | — | |||||||||||||||
Net income | 515,094 | 486,724 | 353,538 | (742,414 | ) | 612,942 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (97,848 | ) | (97,848 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 515,094 | $ | 486,724 | $ | 353,538 | $ | (840,262 | ) | $ | 515,094 | ||||||||||
For the nine months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 4,456,215 | $ | 1,720,574 | $ | (21,566 | ) | $ | 6,155,223 | ||||||||||
Less: Provision for uncollectible accounts | — | (148,456 | ) | (68,269 | ) | — | (216,725 | ) | |||||||||||||
Net patient service revenues | — | 4,307,759 | 1,652,305 | (21,566 | ) | 5,938,498 | |||||||||||||||
Capitated revenues | — | 1,054,394 | 1,170,166 | (4,607 | ) | 2,219,953 | |||||||||||||||
Other revenues | 461,571 | 1,117,710 | 65,251 | (1,102,142 | ) | 542,390 | |||||||||||||||
Total net revenues | 461,571 | 6,479,863 | 2,887,722 | (1,128,315 | ) | 8,700,841 | |||||||||||||||
Operating expenses | 309,601 | 5,922,490 | 2,531,110 | (1,128,315 | ) | 7,634,886 | |||||||||||||||
Operating income | 151,970 | 557,373 | 356,612 | — | 1,065,955 | ||||||||||||||||
Debt expense | (320,218 | ) | (273,747 | ) | (30,475 | ) | 302,106 | (322,334 | ) | ||||||||||||
Other income | 302,111 | 66 | 1,266 | (302,106 | ) | 1,337 | |||||||||||||||
Income tax expense | 50,199 | 175,697 | 19,370 | — | 245,266 | ||||||||||||||||
Equity earnings in subsidiaries | 337,504 | 216,273 | — | (553,777 | ) | — | |||||||||||||||
Income from continuing operations | 421,168 | 324,268 | 308,033 | (553,777 | ) | 499,692 | |||||||||||||||
Discontinued operations | — | — | 13,236 | — | 13,236 | ||||||||||||||||
Net income | 421,168 | 324,268 | 321,269 | (553,777 | ) | 512,928 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (91,760 | ) | (91,760 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 421,168 | $ | 324,268 | $ | 321,269 | $ | (645,537 | ) | $ | 421,168 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||||||
For the three months ended September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 184,122 | $ | 156,385 | $ | 111,922 | $ | (232,645 | ) | $ | 219,784 | ||||||||||
Other comprehensive loss | (12,290 | ) | — | — | — | (12,290 | ) | ||||||||||||||
Total comprehensive income | 171,832 | 156,385 | 111,922 | (232,645 | ) | 207,494 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (35,662 | ) | (35,662 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 171,832 | $ | 156,385 | $ | 111,922 | $ | (268,307 | ) | $ | 171,832 | ||||||||||
For the three months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 136,628 | $ | 122,651 | $ | 116,397 | $ | (205,840 | ) | $ | 169,836 | ||||||||||
Other comprehensive loss | (880 | ) | — | — | — | (880 | ) | ||||||||||||||
Total comprehensive income | 135,748 | 122,651 | 116,397 | (205,840 | ) | 168,956 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (33,208 | ) | (33,208 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 135,748 | $ | 122,651 | $ | 116,397 | $ | (239,048 | ) | $ | 135,748 | ||||||||||
For the nine months ended September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 515,094 | $ | 486,724 | $ | 353,538 | $ | (742,414 | ) | $ | 612,942 | ||||||||||
Other comprehensive loss | (8,979 | ) | — | — | — | (8,979 | ) | ||||||||||||||
Total comprehensive income | 506,115 | 486,724 | 353,538 | (742,414 | ) | 603,963 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (97,848 | ) | (97,848 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 506,115 | $ | 486,724 | $ | 353,538 | $ | (840,262 | ) | $ | 506,115 | ||||||||||
For the nine months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 421,168 | $ | 324,268 | $ | 321,269 | $ | (553,777 | ) | $ | 512,928 | ||||||||||
Other comprehensive income | 11,083 | — | — | — | 11,083 | ||||||||||||||||
Total comprehensive income | 432,251 | 324,268 | 321,269 | (553,777 | ) | 524,011 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (91,760 | ) | (91,760 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 432,251 | $ | 324,268 | $ | 321,269 | $ | (645,537 | ) | $ | 432,251 | ||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||
As of September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,187,719 | $ | 127,331 | $ | 211,985 | $ | — | $ | 1,527,035 | |||||||||||
Accounts receivable, net | — | 886,574 | 581,989 | — | 1,468,563 | ||||||||||||||||
Other current assets | 157,897 | 929,139 | 95,801 | — | 1,182,837 | ||||||||||||||||
Total current assets | 1,345,616 | 1,943,044 | 889,775 | — | 4,178,435 | ||||||||||||||||
Property and equipment, net | 191,897 | 1,425,392 | 741,914 | — | 2,359,203 | ||||||||||||||||
Amortizable intangibles, net | 88,537 | 1,850,725 | 58,510 | — | 1,997,772 | ||||||||||||||||
Investments in subsidiaries | 8,714,911 | 1,544,864 | — | (10,259,775 | ) | — | |||||||||||||||
Intercompany receivables | 3,452,572 | — | 530,994 | (3,983,566 | ) | — | |||||||||||||||
Other long-term assets and investments | 59,555 | 84,940 | 76,870 | — | 221,365 | ||||||||||||||||
Goodwill | — | 7,955,215 | 1,389,426 | — | 9,344,641 | ||||||||||||||||
Total assets | $ | 13,853,088 | $ | 14,804,180 | $ | 3,687,489 | $ | (14,243,341 | ) | $ | 18,101,416 | ||||||||||
Current liabilities | 269,843 | 1,936,798 | 390,990 | — | 2,597,631 | ||||||||||||||||
Intercompany payables | — | 2,912,917 | 1,070,649 | (3,983,566 | ) | — | |||||||||||||||
Long-term debt and other long-term liabilities | 8,116,659 | 1,239,554 | 237,354 | — | 9,593,567 | ||||||||||||||||
Noncontrolling interests subject to put provisions | 491,544 | — | — | 267,199 | 758,743 | ||||||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,975,042 | 8,714,911 | 1,544,864 | (10,259,775 | ) | 4,975,042 | |||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 443,632 | (267,199 | ) | 176,433 | |||||||||||||||
Total equity | 4,975,042 | 8,714,911 | 1,988,496 | (10,526,974 | ) | 5,151,475 | |||||||||||||||
Total liabilities and equity | $ | 13,853,088 | $ | 14,804,180 | $ | 3,687,489 | $ | (14,243,341 | ) | $ | 18,101,416 | ||||||||||
As of December 31, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
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 | 908,010 | 104,946 | — | 1,040,866 | ||||||||||||||||
Total current assets | 630,098 | 2,022,557 | 819,623 | — | 3,472,278 | ||||||||||||||||
Property and equipment, net | 177,633 | 1,377,924 | 633,854 | — | 2,189,411 | ||||||||||||||||
Amortizable intangibles, net | 77,531 | 1,882,685 | 64,157 | — | 2,024,373 | ||||||||||||||||
Investments in subsidiaries | 8,231,059 | 1,389,558 | — | (9,620,617 | ) | — | |||||||||||||||
Intercompany receivables | 3,983,214 | — | 480,993 | (4,464,207 | ) | — | |||||||||||||||
Other long-term assets and investments | 61,391 | 67,402 | 71,048 | — | 199,841 | ||||||||||||||||
Goodwill | — | 7,837,421 | 1,375,553 | — | 9,212,974 | ||||||||||||||||
Total assets | $ | 13,160,926 | $ | 14,577,547 | $ | 3,445,228 | $ | (14,084,824 | ) | $ | 17,098,877 | ||||||||||
Current liabilities | $ | 328,875 | $ | 1,774,634 | $ | 358,540 | $ | — | $ | 2,462,049 | |||||||||||
Intercompany payables | — | 3,421,198 | 1,043,009 | (4,464,207 | ) | — | |||||||||||||||
Long-term debt and other long-term liabilities | 7,948,390 | 1,150,656 | 234,941 | — | 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 | 1,389,558 | (9,620,617 | ) | 4,432,479 | |||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 419,180 | (246,118 | ) | 173,062 | |||||||||||||||
Total equity | 4,432,479 | 8,231,059 | 1,808,738 | (9,866,735 | ) | 4,605,541 | |||||||||||||||
Total liabilities and equity | $ | 13,160,926 | $ | 14,577,547 | $ | 3,445,228 | $ | (14,084,824 | ) | $ | 17,098,877 | ||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||
For the nine months ended September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 515,094 | $ | 486,724 | $ | 353,538 | $ | (742,414 | ) | $ | 612,942 | ||||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (479,441 | ) | 578,851 | 74,632 | 742,414 | 916,456 | |||||||||||||||
Net cash provided by operating activities | 35,653 | 1,065,575 | 428,170 | — | 1,529,398 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Additions of property and equipment, net | (37,752 | ) | (215,072 | ) | (190,683 | ) | — | (443,507 | ) | ||||||||||||
Acquisitions | — | (204,670 | ) | (13,447 | ) | — | (218,117 | ) | |||||||||||||
Proceeds from asset and business sales | — | 3,620 | — | — | 3,620 | ||||||||||||||||
Purchases/proceeds from investment sales and other items | (137,313 | ) | (33,111 | ) | (2,757 | ) | — | (173,181 | ) | ||||||||||||
Net cash used in investing activities | (175,065 | ) | (449,233 | ) | (206,887 | ) | — | (831,185 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Long-term debt and related financing costs, net | 40,250 | (9,247 | ) | 295 | — | 31,298 | |||||||||||||||
Intercompany borrowing | 759,648 | (646,476 | ) | (113,172 | ) | — | — | ||||||||||||||
Other items | (74,955 | ) | (8,292 | ) | (67,060 | ) | — | (150,307 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 724,943 | (664,015 | ) | (179,937 | ) | — | (119,009 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | 1,582 | — | 1,582 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 585,531 | (47,673 | ) | 42,928 | — | 580,786 | |||||||||||||||
Cash and cash equivalents at beginning of period | 602,188 | 175,004 | 169,057 | — | 946,249 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,187,719 | $ | 127,331 | $ | 211,985 | $ | — | $ | 1,527,035 | |||||||||||
For the nine months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 421,168 | $ | 324,268 | $ | 321,269 | $ | (553,777 | ) | $ | 512,928 | ||||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (370,991 | ) | 720,662 | 2,778 | 553,777 | 906,226 | |||||||||||||||
Net cash provided by operating activities | 50,177 | 1,044,930 | 324,047 | — | 1,419,154 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Additions of property and equipment, net | (32,305 | ) | (196,918 | ) | (170,304 | ) | — | (399,527 | ) | ||||||||||||
Acquisitions | — | (185,945 | ) | (48,857 | ) | — | (234,802 | ) | |||||||||||||
Proceeds from asset sales | 60,650 | 1,632 | — | — | 62,282 | ||||||||||||||||
Purchases of investments and other items | (2,574 | ) | (2,565 | ) | 100 | — | (5,039 | ) | |||||||||||||
Net cash provided by (used in) investing activities | 25,771 | (383,796 | ) | (219,061 | ) | — | (577,086 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Long-term debt and related financing costs, net | (370,774 | ) | (9,211 | ) | (4,316 | ) | — | (384,301 | ) | ||||||||||||
Intercompany borrowing | 684,985 | (653,287 | ) | (31,698 | ) | — | — | ||||||||||||||
Other items | 44,164 | 5,609 | (69,695 | ) | — | (19,922 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 358,375 | (656,889 | ) | (105,709 | ) | — | (404,223 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | (899 | ) | — | (899 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 434,323 | 4,245 | (1,622 | ) | — | 436,946 | |||||||||||||||
Cash and cash equivalents at beginning of period | 195,037 | 166,107 | 172,604 | — | 533,748 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 629,360 | $ | 170,352 | $ | 170,982 | $ | — | $ | 970,694 | |||||||||||
Supplemental_data
Supplemental data | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Supplemental data | ' | ||||||||||||||||
20. Supplemental data | |||||||||||||||||
The following information is presented as supplemental data as required by the indentures governing our senior notes. | |||||||||||||||||
Condensed Consolidating Statements of Income | |||||||||||||||||
For the three months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||
Subsidiaries(1) | |||||||||||||||||
Patient service operating revenues | $ | 2,242,533 | $ | 31,231 | $ | — | $ | 2,211,302 | |||||||||
Less: Provision for uncollectible accounts | (98,971 | ) | (5,053 | ) | — | (93,918 | ) | ||||||||||
Net patient service operating revenues | 2,143,562 | 26,178 | — | 2,117,384 | |||||||||||||
Capitated revenues | 848,546 | 387,405 | — | 461,141 | |||||||||||||
Other revenues | 259,716 | 856 | — | 258,860 | |||||||||||||
Total net operating revenues | 3,251,824 | 414,439 | — | 2,837,385 | |||||||||||||
Operating expenses | 2,814,288 | 409,550 | 27 | 2,404,711 | |||||||||||||
Operating income | 437,536 | 4,889 | (27 | ) | 432,674 | ||||||||||||
Debt expense, including refinancing charges | (99,878 | ) | (2,364 | ) | — | (97,514 | ) | ||||||||||
Other (loss) income | (1,246 | ) | 42 | — | (1,288 | ) | |||||||||||
Income tax expense | 116,628 | 721 | (11 | ) | 115,918 | ||||||||||||
Net income | 219,784 | 1,846 | (16 | ) | 217,954 | ||||||||||||
Minority interests | (35,662 | ) | — | — | (35,662 | ) | |||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 1,846 | $ | (16 | ) | $ | 182,292 | ||||||||
For the nine months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||
Subsidiaries(1) | |||||||||||||||||
Patient service operating revenues | $ | 6,543,880 | $ | 91,731 | $ | — | $ | 6,452,149 | |||||||||
Less: Provision for uncollectible accounts | (270,220 | ) | (7,642 | ) | — | (262,578 | ) | ||||||||||
Net patient service operating revenues | 6,273,660 | 84,089 | — | 6,189,571 | |||||||||||||
Capitated revenues | 2,435,480 | 1,122,085 | — | 1,313,395 | |||||||||||||
Other revenues | 757,949 | 3,735 | — | 754,214 | |||||||||||||
Total net operating revenues | 9,467,089 | 1,209,909 | — | 8,257,180 | |||||||||||||
Operating expenses | 8,104,033 | 1,185,349 | 263 | 6,918,421 | |||||||||||||
Operating income | 1,363,056 | 24,560 | (263 | ) | 1,338,759 | ||||||||||||
Debt expense, including refinancing charges | (409,893 | ) | (8,982 | ) | — | (400,911 | ) | ||||||||||
Other income | 2,145 | 75 | — | 2,070 | |||||||||||||
Income tax expense | 342,366 | 4,878 | (105 | ) | 337,593 | ||||||||||||
Net income | 612,942 | 10,775 | (158 | ) | 602,325 | ||||||||||||
Minority interests | (97,848 | ) | — | — | (97,848 | ) | |||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 515,094 | $ | 10,775 | $ | (158 | ) | $ | 504,477 | ||||||||
(1) | After the elimination of the unrestricted subsidiaries and the physician groups | ||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||
For the three months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||
Subsidiaries(1) | |||||||||||||||||
Net income | $ | 219,784 | $ | 1,846 | $ | (16 | ) | $ | 217,954 | ||||||||
Other comprehensive loss | (12,290 | ) | — | — | (12,290 | ) | |||||||||||
Total comprehensive income | 207,494 | 1,846 | (16 | ) | 205,664 | ||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | (35,662 | ) | — | — | (35,662 | ) | |||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 171,832 | $ | 1,846 | $ | (16 | ) | $ | 170,002 | ||||||||
For the nine months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||
Subsidiaries(1) | |||||||||||||||||
Net income | $ | 612,942 | $ | 10,775 | $ | (158 | ) | $ | 602,325 | ||||||||
Other comprehensive loss | (8,979 | ) | — | — | (8,979 | ) | |||||||||||
Total comprehensive income | 603,963 | 10,775 | (158 | ) | 593,346 | ||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | (97,848 | ) | — | — | (97,848 | ) | |||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 506,115 | $ | 10,775 | $ | (158 | ) | $ | 495,498 | ||||||||
(1) | After the elimination of the unrestricted subsidiaries and the physician groups | ||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
As of September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||
Subsidiaries(1) | |||||||||||||||||
Cash and cash equivalents | $ | 1,527,035 | $ | 112,135 | $ | — | $ | 1,414,900 | |||||||||
Accounts receivable, net | 1,468,563 | 235,882 | — | 1,232,681 | |||||||||||||
Other current assets | 1,182,837 | 20,349 | — | 1,162,488 | |||||||||||||
Total current assets | 4,178,435 | 368,366 | — | 3,810,069 | |||||||||||||
Property and equipment, net | 2,359,203 | 4,872 | — | 2,354,331 | |||||||||||||
Amortizable intangibles, net | 1,997,772 | 6,490 | — | 1,991,282 | |||||||||||||
Other long-term assets | 221,365 | 65,138 | 3,061 | 153,166 | |||||||||||||
Goodwill | 9,344,641 | 9,181 | — | 9,335,460 | |||||||||||||
Total assets | $ | 18,101,416 | $ | 454,047 | $ | 3,061 | $ | 17,644,308 | |||||||||
Current liabilities | $ | 2,597,631 | $ | 193,082 | $ | — | $ | 2,404,549 | |||||||||
Payables to parent | — | 166,269 | 3,061 | (169,330 | ) | ||||||||||||
Long-term debt and other long-term liabilities | 9,593,567 | 82,458 | — | 9,511,109 | |||||||||||||
Noncontrolling interests subject to put provisions | 758,743 | — | — | 758,743 | |||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,975,042 | 12,238 | — | 4,962,804 | |||||||||||||
Noncontrolling interests not subject to put provisions | 176,433 | — | — | 176,433 | |||||||||||||
Shareholders’ equity | 5,151,475 | 12,238 | — | 5,139,237 | |||||||||||||
Total liabilities and shareholder’s equity | $ | 18,101,416 | $ | 454,047 | $ | 3,061 | $ | 17,644,308 | |||||||||
As of December 31, 2013 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||
Subsidiaries(1) | |||||||||||||||||
Cash and cash equivalents | $ | 946,249 | $ | 127,309 | $ | — | $ | 818,940 | |||||||||
Accounts receivable, net | 1,485,163 | 235,463 | — | 1,249,700 | |||||||||||||
Other current assets | 1,040,866 | 35,640 | — | 1,005,226 | |||||||||||||
Total current assets | 3,472,278 | 398,412 | — | 3,073,866 | |||||||||||||
Property and equipment, net | 2,189,411 | 5,541 | — | 2,183,870 | |||||||||||||
Amortizable intangibles, net | 2,024,373 | 7,283 | — | 2,017,090 | |||||||||||||
Other long-term assets | 199,841 | 64,013 | 3,325 | 132,503 | |||||||||||||
Goodwill | 9,212,974 | 8,981 | — | 9,203,993 | |||||||||||||
Total assets | $ | 17,098,877 | $ | 484,230 | $ | 3,325 | $ | 16,611,322 | |||||||||
Current liabilities | $ | 2,462,049 | $ | 193,079 | $ | — | $ | 2,268,970 | |||||||||
Payables to parent | — | 194,958 | 3,325 | (198,283 | ) | ||||||||||||
Long-term debt and other long-term liabilities | 9,333,987 | 94,727 | — | 9,239,260 | |||||||||||||
Noncontrolling interests subject to put provisions | 697,300 | — | — | 697,300 | |||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,432,479 | 1,466 | — | 4,431,013 | |||||||||||||
Noncontrolling interests not subject to put provisions | 173,062 | — | — | 173,062 | |||||||||||||
Shareholders’ equity | 4,605,541 | 1,466 | — | 4,604,075 | |||||||||||||
Total liabilities and shareholder’s equity | $ | 17,098,877 | $ | 484,230 | $ | 3,325 | $ | 16,611,322 | |||||||||
(1) | After the elimination of the unrestricted subsidiaries and the physician groups | ||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
For the nine months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||
Subsidiaries(1) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 612,942 | $ | 10,775 | $ | (158 | ) | $ | 602,325 | ||||||||
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | 916,456 | 5,752 | 158 | 910,546 | |||||||||||||
Net cash provided by operating activities | 1,529,398 | 16,527 | — | 1,512,871 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Additions of property and equipment | (443,507 | ) | (145 | ) | — | (443,362 | ) | ||||||||||
Acquisitions and divestitures, net | (218,117 | ) | — | — | (218,117 | ) | |||||||||||
Proceeds from discontinued operations | 3,620 | — | — | 3,620 | |||||||||||||
Investments and other items | (173,181 | ) | (2,757 | ) | — | (170,424 | ) | ||||||||||
Net cash used in investing activities | (831,185 | ) | (2,902 | ) | — | (828,283 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||
Long-term debt | 31,298 | — | — | 31,298 | |||||||||||||
Intercompany | — | (28,799 | ) | — | 28,799 | ||||||||||||
Other items | (150,307 | ) | — | — | (150,307 | ) | |||||||||||
Net cash used in by financing activities | (119,009 | ) | (28,799 | ) | — | (90,210 | ) | ||||||||||
Effect of exchange rate changes on cash | 1,582 | — | — | 1,582 | |||||||||||||
Net increase (decrease) in cash | 580,786 | (15,174 | ) | — | 595,960 | ||||||||||||
Cash at beginning of year | 946,249 | 127,309 | — | 818,940 | |||||||||||||
Cash at end of year | $ | 1,527,035 | $ | 112,135 | $ | — | $ | 1,414,900 | |||||||||
(1) | After the elimination of the unrestricted subsidiaries and the physician groups |
Earnings_per_share_Tables
Earnings per share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic: | |||||||||||||||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 136,628 | $ | 515,094 | $ | 407,919 | |||||||||
Increase in noncontrolling interests redemption rights in excess of fair value | — | 259 | — | — | |||||||||||||
Income from continuing operations for basic earnings per share calculation | $ | 184,122 | $ | 136,887 | $ | 515,094 | $ | 407,919 | |||||||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | — | — | — | 13,249 | |||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. for basic earnings per share calculation | $ | 184,122 | $ | 136,887 | $ | 515,094 | $ | 421,168 | |||||||||
Weighted average shares outstanding during the period | 214,810 | 212,584 | 214,280 | 211,914 | |||||||||||||
Vested stock units | 1 | 5 | 1 | 5 | |||||||||||||
Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger | (2,194 | ) | (2,194 | ) | (2,194 | ) | (2,194 | ) | |||||||||
Weighted average shares for basic earnings per share calculation | 212,617 | 210,395 | 212,087 | 209,725 | |||||||||||||
Basic income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $ | 0.87 | $ | 0.65 | $ | 2.43 | $ | 1.95 | |||||||||
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 | $ | 0.65 | $ | 2.43 | $ | 2.01 | |||||||||
Diluted: | |||||||||||||||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 136,628 | $ | 515,094 | $ | 407,919 | |||||||||
Increase in noncontrolling interests redemption rights in excess of fair value | — | 259 | — | — | |||||||||||||
Income from continuing operations for diluted earnings per share calculation | $ | 184,122 | $ | 136,887 | $ | 515,094 | $ | 407,919 | |||||||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | — | — | — | 13,249 | |||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. for diluted earnings per share calculation | $ | 184,122 | $ | 136,887 | $ | 515,094 | $ | 421,168 | |||||||||
Weighted average shares outstanding during the period | 214,810 | 212,584 | 214,280 | 211,914 | |||||||||||||
Vested stock units | 1 | 5 | 1 | 5 | |||||||||||||
Assumed incremental shares from stock plans | 2,425 | 2,314 | 2,414 | 2,713 | |||||||||||||
Weighted average shares for diluted earnings per share calculation | 217,236 | 214,903 | 216,695 | 214,632 | |||||||||||||
Diluted income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $ | 0.85 | $ | 0.64 | $ | 2.38 | $ | 1.9 | |||||||||
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 | $ | 0.64 | $ | 2.38 | $ | 1.96 | |||||||||
Anti-dilutive stock-settled awards excluded from calculation(1) | 1,422 | 4,908 | 1,804 | 3,871 | |||||||||||||
(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) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
The Company’s investments in securities consist of the following: | |||||||||||||||||||||||||
September 30, 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 | $ | 140,722 | $ | — | $ | 140,722 | $ | 5,601 | $ | — | $ | 5,601 | |||||||||||||
Investments in mutual funds and common stock | — | 26,237 | 26,237 | — | 19,421 | 19,421 | |||||||||||||||||||
$ | 140,722 | $ | 26,237 | $ | 166,959 | $ | 5,601 | $ | 19,421 | $ | 25,022 | ||||||||||||||
Short-term investments | $ | 140,722 | $ | 1,400 | $ | 142,122 | $ | 5,601 | $ | 1,200 | $ | 6,801 | |||||||||||||
Long-term investments | — | 24,837 | 24,837 | — | 18,221 | 18,221 | |||||||||||||||||||
$ | 140,722 | $ | 26,237 | $ | 166,959 | $ | 5,601 | $ | 19,421 | $ | 25,022 | ||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Changes in Goodwill by Reportable Segments | ' | ||||||||||||||||
Changes in goodwill by reportable segments were as follows: | |||||||||||||||||
Nine months ended September 30, 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 | 85,779 | 48,548 | 12,072 | 146,399 | |||||||||||||
Divestitures | (1,851 | ) | — | — | (1,851 | ) | |||||||||||
Other adjustments | — | (2,277 | ) | (10,604 | ) | (12,881 | ) | ||||||||||
Balance at September 30, 2014 | $ | 5,553,401 | $ | 3,562,433 | $ | 228,807 | $ | 9,344,641 | |||||||||
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) | 9 Months Ended | ||||
Sep. 30, 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 nine months ended September 30, 2014: | |||||
Nine months ended | |||||
September 30, 2014 | |||||
Health care costs payable, beginning of the period | $ | 172,310 | |||
Add: Components of incurred health care costs | |||||
Current year | 1,180,740 | ||||
Prior years | 6,442 | ||||
Total incurred health care costs | 1,187,182 | ||||
Less: Claims paid | |||||
Current year | 993,731 | ||||
Prior years | 156,525 | ||||
Total claims paid | 1,150,256 | ||||
Health care costs payable, end of the period | $ | 209,236 | |||
Longterm_debt_Tables
Long-term debt (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||
Long Term Debt | ' | ||||||||||||||||||||||||||||||||||
Long-term debt was comprised of the following: | |||||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||
Senior Secured Credit Facilities: | |||||||||||||||||||||||||||||||||||
New Term Loan A | $ | 987,500 | $ | — | |||||||||||||||||||||||||||||||
New Term Loan B | 3,491,250 | — | |||||||||||||||||||||||||||||||||
Prior Term Loan A | — | 800,000 | |||||||||||||||||||||||||||||||||
Prior Term Loan A-3 | — | 1,282,500 | |||||||||||||||||||||||||||||||||
Prior Term Loan B | — | 1,697,500 | |||||||||||||||||||||||||||||||||
Prior Term Loan B-2 | — | 1,633,500 | |||||||||||||||||||||||||||||||||
Senior notes | 3,775,000 | 2,800,000 | |||||||||||||||||||||||||||||||||
Acquisition obligations and other notes payable | 70,847 | 67,352 | |||||||||||||||||||||||||||||||||
Capital lease obligations | 194,689 | 152,751 | |||||||||||||||||||||||||||||||||
Total debt principal outstanding | 8,519,286 | 8,433,603 | |||||||||||||||||||||||||||||||||
Discount on long-term debt | (16,853 | ) | (17,675 | ) | |||||||||||||||||||||||||||||||
8,502,433 | 8,415,928 | ||||||||||||||||||||||||||||||||||
Less current portion | (121,530 | ) | (274,697 | ) | |||||||||||||||||||||||||||||||
$ | 8,380,903 | $ | 8,141,231 | ||||||||||||||||||||||||||||||||
Scheduled Maturities of Long-term Debt | ' | ||||||||||||||||||||||||||||||||||
Scheduled maturities and pay-outs of long-term debt at September 30, 2014 were as follows: | |||||||||||||||||||||||||||||||||||
2014 (remainder of the year) | 35,170 | ||||||||||||||||||||||||||||||||||
2015 | 113,185 | ||||||||||||||||||||||||||||||||||
2016 | 116,633 | ||||||||||||||||||||||||||||||||||
2017 | 142,834 | ||||||||||||||||||||||||||||||||||
2018 | 154,782 | ||||||||||||||||||||||||||||||||||
2019 | 728,303 | ||||||||||||||||||||||||||||||||||
Thereafter | 7,228,379 | ||||||||||||||||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||||||||||||||||
The following table summarizes the Company’s derivative instruments as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||
September 30, 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 | $ | 2,035 | Other short-term liabilities | $ | 12,069 | |||||||||||||||||||||||||||||
Interest rate swap agreements | Other long-term assets | $ | 4,737 | Other long-term assets | $ | 10,004 | |||||||||||||||||||||||||||||
Interest rate cap agreements | Other long-term assets | $ | 2,514 | 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 and nine months ended September 30, 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 | |||||||||||||||||||||||||||||||||
Derivatives designated | Three months ended | Nine months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||
as cash flow hedges | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Interest rate swap agreements | $ | 1,058 | $ | (10,010 | ) | $ | (6,728 | ) | $ | 2,292 | Debt expense | $ | (795 | ) | $ | (4,162 | ) | $ | (11,495 | ) | $ | (11,528 | ) | ||||||||||||
(including | |||||||||||||||||||||||||||||||||||
refinancing | |||||||||||||||||||||||||||||||||||
charges) | |||||||||||||||||||||||||||||||||||
Interest rate cap agreements | (178 | ) | (2,646 | ) | (5,052 | ) | 299 | Debt expense | (1,507 | ) | (1,507 | ) | (4,521 | ) | (3,911 | ) | |||||||||||||||||||
(including | |||||||||||||||||||||||||||||||||||
refinancing | |||||||||||||||||||||||||||||||||||
charges) | |||||||||||||||||||||||||||||||||||
Tax benefit (expense) | (343 | ) | 4,923 | 4,603 | (1,008 | ) | 899 | 2,205 | 6,257 | 6,006 | |||||||||||||||||||||||||
Total | $ | 537 | $ | (7,733 | ) | $ | (7,177 | ) | $ | 1,583 | $ | (1,403 | ) | $ | (3,464 | ) | $ | (9,759 | ) | $ | (9,433 | ) | |||||||||||||
Comprehensive_income_Tables
Comprehensive income (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Comprehensive income | ' | ||||||||||||||||||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-14 | ||||||||||||||||||||||||||||||||
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 | $ | (1,702 | ) | $ | 3,822 | $ | (1,454 | ) | $ | 666 | $ | (2,344 | ) | $ | 3,120 | $ | (3,421 | ) | $ | (2,645 | ) | ||||||||||||
Unrealized gains (losses) | 880 | (567 | ) | (13,838 | ) | (13,525 | ) | (11,780 | ) | 838 | (11,871 | ) | (22,813 | ) | |||||||||||||||||||
Related income tax (expense) benefit | (343 | ) | 175 | — | (168 | ) | 4,603 | (321 | ) | — | 4,282 | ||||||||||||||||||||||
537 | (392 | ) | (13,838 | ) | (13,693 | ) | (7,177 | ) | 517 | (11,871 | ) | (18,531 | ) | ||||||||||||||||||||
Reclassification from accumulated other comprehensive income into net income | 2,302 | — | — | 2,302 | 16,016 | (340 | ) | — | 15,676 | ||||||||||||||||||||||||
Related tax | (899 | ) | — | — | (899 | ) | (6,257 | ) | 133 | — | (6,124 | ) | |||||||||||||||||||||
1,403 | — | — | 1,403 | 9,759 | (207 | ) | — | 9,552 | |||||||||||||||||||||||||
Ending balance | $ | 238 | $ | 3,430 | $ | (15,292 | ) | $ | (11,624 | ) | $ | 238 | $ | 3,430 | $ | (15,292 | ) | $ | (11,624 | ) | |||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||||||
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 | $ | (117 | ) | $ | 1,935 | $ | (5,152 | ) | $ | (3,334 | ) | $ | (15,402 | ) | $ | 1,310 | $ | (1,205 | ) | $ | (15,297 | ) | |||||||||||
Unrealized (losses) gains | (12,656 | ) | 1,059 | 2,741 | (8,856 | ) | 2,591 | 2,236 | (1,206 | ) | 3,621 | ||||||||||||||||||||||
Related income tax benefit (expense) | 4,923 | (411 | ) | — | 4,512 | (1,008 | ) | (869 | ) | — | (1,877 | ) | |||||||||||||||||||||
(7,733 | ) | 648 | 2,741 | (4,344 | ) | 1,583 | 1,367 | (1,206 | ) | 1,744 | |||||||||||||||||||||||
Reclassification from accumulated other comprehensive income into net income | 5,669 | — | — | 5,669 | 15,439 | (155 | ) | — | 15,284 | ||||||||||||||||||||||||
Related tax | (2,205 | ) | — | — | (2,205 | ) | (6,006 | ) | 61 | — | (5,945 | ) | |||||||||||||||||||||
3,464 | — | — | 3,464 | 9,433 | (94 | ) | — | 9,339 | |||||||||||||||||||||||||
Ending balance | $ | (4,386 | ) | $ | 2,583 | $ | (2,411 | ) | $ | (4,214 | ) | $ | (4,386 | ) | $ | 2,583 | $ | (2,411 | ) | $ | (4,214 | ) | |||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||
Sep. 30, 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: | |||||
Nine months ended | |||||
September 30, 2014 | |||||
Tangible assets, principally leasehold improvements and equipment, net of cash | $ | 4,424 | |||
Amortizable intangible-customer relationships | 74,351 | ||||
Other amortizable intangible and long-term assets | 18,316 | ||||
Goodwill | 146,399 | ||||
Noncontrolling interest | (1,596 | ) | |||
Aggregate purchase price | $ | 241,894 | |||
Reconciliation of Changes in Contingent Earn-Out Obligations | ' | ||||
The following is a reconciliation of changes in the contingent earn-out obligations for the nine months ended September 30, 2014: | |||||
Beginning balance, January 1, 2014 | $ | 28,058 | |||
Contingent earn-out obligations associated with acquisitions | 18,234 | ||||
Remeasurement of fair value for other contingent earn-outs | (2,414 | ) | |||
Payments of contingent earn-outs | (2,715 | ) | |||
$ | 41,163 | ||||
Fair_value_of_financial_instru1
Fair value of financial instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 September 30, 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 | $ | 26,237 | $ | 26,237 | $ | — | $ | — | |||||||||
Interest rate cap agreements | $ | 2,514 | $ | — | $ | 2,514 | $ | — | |||||||||
Interest rate swap agreements | $ | 4,737 | $ | — | $ | 4,737 | $ | — | |||||||||
Funds on deposit with third parties | $ | 79,247 | $ | 79,247 | $ | — | $ | — | |||||||||
Liabilities | |||||||||||||||||
Contingent earn-out obligations | $ | 41,163 | $ | — | $ | — | $ | 41,163 | |||||||||
Interest rate swap agreements | $ | 2,035 | $ | — | $ | 2,035 | $ | — | |||||||||
Temporary equity | |||||||||||||||||
Noncontrolling interests subject to put provisions | $ | 758,743 | $ | — | $ | — | $ | 758,743 | |||||||||
Segment_reporting_Tables
Segment reporting (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Segment net revenues: | |||||||||||||||||
U.S. dialysis and related lab services | |||||||||||||||||
Patient service revenues: | |||||||||||||||||
External sources | $ | 2,153,914 | $ | 2,043,838 | $ | 6,279,263 | $ | 5,932,888 | |||||||||
Intersegment revenues | 10,701 | 7,867 | 27,617 | 23,537 | |||||||||||||
Total dialysis and related lab services revenues | 2,164,615 | 2,051,705 | 6,306,880 | 5,956,425 | |||||||||||||
Less: Provision for uncollectible accounts | (91,996 | ) | (71,819 | ) | (257,687 | ) | (208,475 | ) | |||||||||
Net dialysis and related lab services patient service revenues | 2,072,619 | 1,979,886 | 6,049,193 | 5,747,950 | |||||||||||||
Other revenues(1) | 3,427 | 3,016 | 10,159 | 9,335 | |||||||||||||
Total net dialysis and related lab services revenues | 2,076,046 | 1,982,902 | 6,059,352 | 5,757,285 | |||||||||||||
HCP | |||||||||||||||||
HCP revenues: | |||||||||||||||||
Capitated revenues | 827,933 | 730,400 | 2,382,656 | 2,168,828 | |||||||||||||
Net patient service revenues | 49,783 | 58,049 | 164,081 | 161,084 | |||||||||||||
Other revenues(2) | 14,013 | 14,156 | 72,566 | 37,459 | |||||||||||||
Intersegment capitated and other revenues | 251 | 144 | 608 | 144 | |||||||||||||
Total revenues | 891,980 | 802,749 | 2,619,911 | 2,367,515 | |||||||||||||
Other—Ancillary services and strategic initiatives | |||||||||||||||||
Net patient service revenues—U.S. | 5,250 | 4,159 | 14,112 | 10,648 | |||||||||||||
Net patient service revenues—International | 26,610 | 17,996 | 73,891 | 42,353 | |||||||||||||
Capitated revenues | 20,613 | 16,864 | 52,824 | 51,125 | |||||||||||||
Other external sources—U.S. | 240,770 | 181,499 | 670,441 | 491,244 | |||||||||||||
Other external sources—International | 1,507 | 1,428 | 4,783 | 4,352 | |||||||||||||
Intersegment revenues | 4,995 | 3,719 | 14,287 | 9,895 | |||||||||||||
Total ancillary services and strategic initiatives revenues | 299,745 | 225,665 | 830,338 | 609,617 | |||||||||||||
Total net segment revenues | 3,267,771 | 3,011,316 | 9,509,601 | 8,734,417 | |||||||||||||
Elimination of intersegment revenues | (15,947 | ) | (11,730 | ) | (42,512 | ) | (33,576 | ) | |||||||||
Consolidated net revenues | $ | 3,251,824 | $ | 2,999,586 | $ | 9,467,089 | $ | 8,700,841 | |||||||||
Segment operating margin (loss): | |||||||||||||||||
U.S. dialysis and related lab services | $ | 400,226 | $ | 305,987 | $ | 1,194,874 | $ | 792,215 | |||||||||
HCP | 46,339 | 97,862 | 182,341 | 287,328 | |||||||||||||
Other—Ancillary services and strategic initiatives | (5,502 | ) | (8,118 | ) | (5,744 | ) | (29,510 | ) | |||||||||
Total segment margin | 441,063 | 395,731 | 1,371,471 | 1,050,033 | |||||||||||||
Reconciliation of segment operating margin to consolidated income from continuing operations before income taxes: | |||||||||||||||||
Contingent earn-out obligation adjustment | — | — | — | 56,977 | |||||||||||||
Corporate support expenses | (3,527 | ) | (18,657 | ) | (8,415 | ) | (41,055 | ) | |||||||||
Consolidated operating income | 437,536 | 377,074 | 1,363,056 | 1,065,955 | |||||||||||||
Debt expense | (99,878 | ) | (108,421 | ) | (312,345 | ) | (322,334 | ) | |||||||||
Debt refinancing charges | — | — | (97,548 | ) | — | ||||||||||||
Other (loss) income | (1,246 | ) | 2,113 | 2,145 | 1,337 | ||||||||||||
Consolidated income from continuing operations before income taxes | $ | 336,412 | $ | 270,766 | $ | 955,308 | $ | 744,958 | |||||||||
(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, as well as revenue related to the maintenance of existing physician networks. | ||||||||||||||||
Summary of Depreciation and Amortization Expense by Segment | ' | ||||||||||||||||
Depreciation and amortization expense by segment is as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
U.S. dialysis and related lab services. | $ | 101,870 | $ | 89,465 | $ | 297,477 | $ | 263,005 | |||||||||
HCP | 42,558 | 39,255 | 126,555 | 115,862 | |||||||||||||
Ancillary services and strategic initiatives | 4,768 | 4,045 | 13,650 | 10,396 | |||||||||||||
$ | 149,196 | $ | 132,765 | $ | 437,682 | $ | 389,263 | ||||||||||
Summary of Assets by Segment | ' | ||||||||||||||||
Summary of assets by segment is as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Segment assets | |||||||||||||||||
U.S. dialysis and related lab services | $ | 11,097,897 | $ | 10,248,993 | |||||||||||||
HCP | 6,314,202 | 6,265,767 | |||||||||||||||
Other—Ancillary services and strategic initiatives | 689,317 | 584,117 | |||||||||||||||
Consolidated assets | $ | 18,101,416 | $ | 17,098,877 | |||||||||||||
Summary of Expenditures for Property and Equipment by Segment | ' | ||||||||||||||||
Expenditures for property and equipment by segment is as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
U.S. dialysis and related lab services. | $ | 149,247 | $ | 128,799 | $ | 399,114 | $ | 359,574 | |||||||||
HCP | 6,121 | 6,281 | 16,401 | 20,660 | |||||||||||||
Ancillary services and strategic initiatives | 9,546 | 6,051 | 27,992 | 19,293 | |||||||||||||
$ | 164,914 | $ | 141,131 | $ | 443,507 | $ | 399,527 | ||||||||||
Changes_in_DaVita_HealthCare_P1
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 136,628 | $ | 515,094 | $ | 421,168 | |||||||||
(Decrease) increase in paid-in capital for sales of noncontrolling interests | (316 | ) | 21 | 355 | (866 | ) | |||||||||||
Decrease in paid-in capital for the purchase of noncontrolling interests and adjustments to ownership interest | (1,962 | ) | — | (506 | ) | (474 | ) | ||||||||||
Net transfers to noncontrolling interests | (2,278 | ) | 21 | (151 | ) | (1,340 | ) | ||||||||||
Net income attributable to DaVita HealthCare Partners Inc., net of transfers to noncontrolling interests | $ | 181,844 | $ | 136,649 | $ | 514,943 | $ | 419,828 | |||||||||
Supplemental_data_Tables
Supplemental data (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Condensed Consolidating Statements of Income | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Income | |||||||||||||||||||||
For the three months ended September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 1,592,398 | $ | 651,031 | $ | (896 | ) | $ | 2,242,533 | ||||||||||
Less: Provision for uncollectible accounts | — | (61,973 | ) | (36,998 | ) | — | (98,971 | ) | |||||||||||||
Net patient service revenues | — | 1,530,425 | 614,033 | (896 | ) | 2,143,562 | |||||||||||||||
Capitated revenues | — | 442,472 | 406,926 | (852 | ) | 848,546 | |||||||||||||||
Other revenues | 174,226 | 422,733 | 37,961 | (375,204 | ) | 259,716 | |||||||||||||||
Total net revenues | 174,226 | 2,395,630 | 1,058,920 | (376,952 | ) | 3,251,824 | |||||||||||||||
Operating expenses | 123,856 | 2,126,918 | 940,466 | (376,952 | ) | 2,814,288 | |||||||||||||||
Operating income | 50,370 | 268,712 | 118,454 | — | 437,536 | ||||||||||||||||
Debt expense, including debt refinancing charges | (98,496 | ) | (89,048 | ) | (8,730 | ) | 96,396 | (99,878 | ) | ||||||||||||
Other income (loss) | 94,258 | 388 | 504 | (96,396 | ) | (1,246 | ) | ||||||||||||||
Income tax expense (benefit) | 18,395 | 99,927 | (1,694 | ) | — | 116,628 | |||||||||||||||
Equity earnings in subsidiaries | 156,385 | 76,260 | — | (232,645 | ) | — | |||||||||||||||
Net income | 184,122 | 156,385 | 111,922 | (232,645 | ) | 219,784 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (35,662 | ) | (35,662 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 156,385 | $ | 111,922 | $ | (268,307 | ) | $ | 184,122 | ||||||||||
For the three months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 1,527,860 | $ | 602,708 | $ | (3,869 | ) | $ | 2,126,699 | ||||||||||
Less: Provision for uncollectible accounts | — | (47,381 | ) | (27,096 | ) | — | (74,477 | ) | |||||||||||||
Net patient service revenues | — | 1,480,479 | 575,612 | (3,869 | ) | 2,052,222 | |||||||||||||||
Capitated revenues | — | 357,058 | 392,040 | (1,834 | ) | 747,264 | |||||||||||||||
Other revenues | 159,546 | 384,676 | 26,411 | (370,533 | ) | 200,100 | |||||||||||||||
Total net revenues | 159,546 | 2,222,213 | 994,063 | (376,236 | ) | 2,999,586 | |||||||||||||||
Operating expenses | 117,216 | 2,014,126 | 867,406 | (376,236 | ) | 2,622,512 | |||||||||||||||
Operating income | 42,330 | 208,087 | 126,657 | — | 377,074 | ||||||||||||||||
Debt expense | (107,550 | ) | (83,432 | ) | (8,505 | ) | 91,066 | (108,421 | ) | ||||||||||||
Other income (expense) | 100,943 | (9,615 | ) | 1,851 | (91,066 | ) | 2,113 | ||||||||||||||
Income tax expense | 16,144 | 81,180 | 3,606 | — | 100,930 | ||||||||||||||||
Equity earnings in subsidiaries | 117,049 | 88,791 | — | (205,840 | ) | — | |||||||||||||||
Net income | 136,628 | 122,651 | 116,397 | (205,840 | ) | 169,836 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (33,208 | ) | (33,208 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 136,628 | $ | 122,651 | $ | 116,397 | $ | (239,048 | ) | $ | 136,628 | ||||||||||
For the nine months ended September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 4,622,943 | $ | 1,918,700 | $ | 2,237 | $ | 6,543,880 | |||||||||||
Less: Provision for uncollectible accounts | — | (169,133 | ) | (101,087 | ) | — | (270,220 | ) | |||||||||||||
Net patient service revenues | — | 4,453,810 | 1,817,613 | 2,237 | 6,273,660 | ||||||||||||||||
Capitated revenues | — | 1,261,385 | 1,175,354 | (1,259 | ) | 2,435,480 | |||||||||||||||
Other revenues | 518,468 | 1,241,043 | 105,964 | (1,107,526 | ) | 757,949 | |||||||||||||||
Total net revenues | 518,468 | 6,956,238 | 3,098,931 | (1,106,548 | ) | 9,467,089 | |||||||||||||||
Operating expenses | 358,968 | 6,141,200 | 2,710,413 | (1,106,548 | ) | 8,104,033 | |||||||||||||||
Operating income | 159,500 | 815,038 | 388,518 | — | 1,363,056 | ||||||||||||||||
Debt expense, including debt refinancing charges | (406,037 | ) | (277,854 | ) | (28,662 | ) | 302,660 | (409,893 | ) | ||||||||||||
Other income | 293,733 | 9,323 | 1,749 | (302,660 | ) | 2,145 | |||||||||||||||
Income tax expense | 18,826 | 315,473 | 8,067 | — | 342,366 | ||||||||||||||||
Equity earnings in subsidiaries | 486,724 | 255,690 | — | (742,414 | ) | — | |||||||||||||||
Net income | 515,094 | 486,724 | 353,538 | (742,414 | ) | 612,942 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (97,848 | ) | (97,848 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 515,094 | $ | 486,724 | $ | 353,538 | $ | (840,262 | ) | $ | 515,094 | ||||||||||
For the nine months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Patient service revenues | $ | — | $ | 4,456,215 | $ | 1,720,574 | $ | (21,566 | ) | $ | 6,155,223 | ||||||||||
Less: Provision for uncollectible accounts | — | (148,456 | ) | (68,269 | ) | — | (216,725 | ) | |||||||||||||
Net patient service revenues | — | 4,307,759 | 1,652,305 | (21,566 | ) | 5,938,498 | |||||||||||||||
Capitated revenues | — | 1,054,394 | 1,170,166 | (4,607 | ) | 2,219,953 | |||||||||||||||
Other revenues | 461,571 | 1,117,710 | 65,251 | (1,102,142 | ) | 542,390 | |||||||||||||||
Total net revenues | 461,571 | 6,479,863 | 2,887,722 | (1,128,315 | ) | 8,700,841 | |||||||||||||||
Operating expenses | 309,601 | 5,922,490 | 2,531,110 | (1,128,315 | ) | 7,634,886 | |||||||||||||||
Operating income | 151,970 | 557,373 | 356,612 | — | 1,065,955 | ||||||||||||||||
Debt expense | (320,218 | ) | (273,747 | ) | (30,475 | ) | 302,106 | (322,334 | ) | ||||||||||||
Other income | 302,111 | 66 | 1,266 | (302,106 | ) | 1,337 | |||||||||||||||
Income tax expense | 50,199 | 175,697 | 19,370 | — | 245,266 | ||||||||||||||||
Equity earnings in subsidiaries | 337,504 | 216,273 | — | (553,777 | ) | — | |||||||||||||||
Income from continuing operations | 421,168 | 324,268 | 308,033 | (553,777 | ) | 499,692 | |||||||||||||||
Discontinued operations | — | — | 13,236 | — | 13,236 | ||||||||||||||||
Net income | 421,168 | 324,268 | 321,269 | (553,777 | ) | 512,928 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | (91,760 | ) | (91,760 | ) | ||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 421,168 | $ | 324,268 | $ | 321,269 | $ | (645,537 | ) | $ | 421,168 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||||||
For the three months ended September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 184,122 | $ | 156,385 | $ | 111,922 | $ | (232,645 | ) | $ | 219,784 | ||||||||||
Other comprehensive loss | (12,290 | ) | — | — | — | (12,290 | ) | ||||||||||||||
Total comprehensive income | 171,832 | 156,385 | 111,922 | (232,645 | ) | 207,494 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (35,662 | ) | (35,662 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 171,832 | $ | 156,385 | $ | 111,922 | $ | (268,307 | ) | $ | 171,832 | ||||||||||
For the three months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 136,628 | $ | 122,651 | $ | 116,397 | $ | (205,840 | ) | $ | 169,836 | ||||||||||
Other comprehensive loss | (880 | ) | — | — | — | (880 | ) | ||||||||||||||
Total comprehensive income | 135,748 | 122,651 | 116,397 | (205,840 | ) | 168,956 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (33,208 | ) | (33,208 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 135,748 | $ | 122,651 | $ | 116,397 | $ | (239,048 | ) | $ | 135,748 | ||||||||||
For the nine months ended September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 515,094 | $ | 486,724 | $ | 353,538 | $ | (742,414 | ) | $ | 612,942 | ||||||||||
Other comprehensive loss | (8,979 | ) | — | — | — | (8,979 | ) | ||||||||||||||
Total comprehensive income | 506,115 | 486,724 | 353,538 | (742,414 | ) | 603,963 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (97,848 | ) | (97,848 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 506,115 | $ | 486,724 | $ | 353,538 | $ | (840,262 | ) | $ | 506,115 | ||||||||||
For the nine months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Net income | $ | 421,168 | $ | 324,268 | $ | 321,269 | $ | (553,777 | ) | $ | 512,928 | ||||||||||
Other comprehensive income | 11,083 | — | — | — | 11,083 | ||||||||||||||||
Total comprehensive income | 432,251 | 324,268 | 321,269 | (553,777 | ) | 524,011 | |||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | — | — | — | (91,760 | ) | (91,760 | ) | ||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 432,251 | $ | 324,268 | $ | 321,269 | $ | (645,537 | ) | $ | 432,251 | ||||||||||
Condensed Consolidating Balance Sheets | ' | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||
As of September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,187,719 | $ | 127,331 | $ | 211,985 | $ | — | $ | 1,527,035 | |||||||||||
Accounts receivable, net | — | 886,574 | 581,989 | — | 1,468,563 | ||||||||||||||||
Other current assets | 157,897 | 929,139 | 95,801 | — | 1,182,837 | ||||||||||||||||
Total current assets | 1,345,616 | 1,943,044 | 889,775 | — | 4,178,435 | ||||||||||||||||
Property and equipment, net | 191,897 | 1,425,392 | 741,914 | — | 2,359,203 | ||||||||||||||||
Amortizable intangibles, net | 88,537 | 1,850,725 | 58,510 | — | 1,997,772 | ||||||||||||||||
Investments in subsidiaries | 8,714,911 | 1,544,864 | — | (10,259,775 | ) | — | |||||||||||||||
Intercompany receivables | 3,452,572 | — | 530,994 | (3,983,566 | ) | — | |||||||||||||||
Other long-term assets and investments | 59,555 | 84,940 | 76,870 | — | 221,365 | ||||||||||||||||
Goodwill | — | 7,955,215 | 1,389,426 | — | 9,344,641 | ||||||||||||||||
Total assets | $ | 13,853,088 | $ | 14,804,180 | $ | 3,687,489 | $ | (14,243,341 | ) | $ | 18,101,416 | ||||||||||
Current liabilities | 269,843 | 1,936,798 | 390,990 | — | 2,597,631 | ||||||||||||||||
Intercompany payables | — | 2,912,917 | 1,070,649 | (3,983,566 | ) | — | |||||||||||||||
Long-term debt and other long-term liabilities | 8,116,659 | 1,239,554 | 237,354 | — | 9,593,567 | ||||||||||||||||
Noncontrolling interests subject to put provisions | 491,544 | — | — | 267,199 | 758,743 | ||||||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,975,042 | 8,714,911 | 1,544,864 | (10,259,775 | ) | 4,975,042 | |||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 443,632 | (267,199 | ) | 176,433 | |||||||||||||||
Total equity | 4,975,042 | 8,714,911 | 1,988,496 | (10,526,974 | ) | 5,151,475 | |||||||||||||||
Total liabilities and equity | $ | 13,853,088 | $ | 14,804,180 | $ | 3,687,489 | $ | (14,243,341 | ) | $ | 18,101,416 | ||||||||||
As of December 31, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
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 | 908,010 | 104,946 | — | 1,040,866 | ||||||||||||||||
Total current assets | 630,098 | 2,022,557 | 819,623 | — | 3,472,278 | ||||||||||||||||
Property and equipment, net | 177,633 | 1,377,924 | 633,854 | — | 2,189,411 | ||||||||||||||||
Amortizable intangibles, net | 77,531 | 1,882,685 | 64,157 | — | 2,024,373 | ||||||||||||||||
Investments in subsidiaries | 8,231,059 | 1,389,558 | — | (9,620,617 | ) | — | |||||||||||||||
Intercompany receivables | 3,983,214 | — | 480,993 | (4,464,207 | ) | — | |||||||||||||||
Other long-term assets and investments | 61,391 | 67,402 | 71,048 | — | 199,841 | ||||||||||||||||
Goodwill | — | 7,837,421 | 1,375,553 | — | 9,212,974 | ||||||||||||||||
Total assets | $ | 13,160,926 | $ | 14,577,547 | $ | 3,445,228 | $ | (14,084,824 | ) | $ | 17,098,877 | ||||||||||
Current liabilities | $ | 328,875 | $ | 1,774,634 | $ | 358,540 | $ | — | $ | 2,462,049 | |||||||||||
Intercompany payables | — | 3,421,198 | 1,043,009 | (4,464,207 | ) | — | |||||||||||||||
Long-term debt and other long-term liabilities | 7,948,390 | 1,150,656 | 234,941 | — | 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 | 1,389,558 | (9,620,617 | ) | 4,432,479 | |||||||||||||||
Noncontrolling interests not subject to put provisions | — | — | 419,180 | (246,118 | ) | 173,062 | |||||||||||||||
Total equity | 4,432,479 | 8,231,059 | 1,808,738 | (9,866,735 | ) | 4,605,541 | |||||||||||||||
Total liabilities and equity | $ | 13,160,926 | $ | 14,577,547 | $ | 3,445,228 | $ | (14,084,824 | ) | $ | 17,098,877 | ||||||||||
Condensed Consolidating Statements of Cash Flows | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||
For the nine months ended September 30, 2014 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 515,094 | $ | 486,724 | $ | 353,538 | $ | (742,414 | ) | $ | 612,942 | ||||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (479,441 | ) | 578,851 | 74,632 | 742,414 | 916,456 | |||||||||||||||
Net cash provided by operating activities | 35,653 | 1,065,575 | 428,170 | — | 1,529,398 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Additions of property and equipment, net | (37,752 | ) | (215,072 | ) | (190,683 | ) | — | (443,507 | ) | ||||||||||||
Acquisitions | — | (204,670 | ) | (13,447 | ) | — | (218,117 | ) | |||||||||||||
Proceeds from asset and business sales | — | 3,620 | — | — | 3,620 | ||||||||||||||||
Purchases/proceeds from investment sales and other items | (137,313 | ) | (33,111 | ) | (2,757 | ) | — | (173,181 | ) | ||||||||||||
Net cash used in investing activities | (175,065 | ) | (449,233 | ) | (206,887 | ) | — | (831,185 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Long-term debt and related financing costs, net | 40,250 | (9,247 | ) | 295 | — | 31,298 | |||||||||||||||
Intercompany borrowing | 759,648 | (646,476 | ) | (113,172 | ) | — | — | ||||||||||||||
Other items | (74,955 | ) | (8,292 | ) | (67,060 | ) | — | (150,307 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 724,943 | (664,015 | ) | (179,937 | ) | — | (119,009 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | 1,582 | — | 1,582 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 585,531 | (47,673 | ) | 42,928 | — | 580,786 | |||||||||||||||
Cash and cash equivalents at beginning of period | 602,188 | 175,004 | 169,057 | — | 946,249 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,187,719 | $ | 127,331 | $ | 211,985 | $ | — | $ | 1,527,035 | |||||||||||
For the nine months ended September 30, 2013 | DaVita | Guarantor | Non-Guarantor | Consolidating | Consolidated | ||||||||||||||||
HealthCare | subsidiaries | subsidiaries | adjustments | total | |||||||||||||||||
Partners Inc. | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 421,168 | $ | 324,268 | $ | 321,269 | $ | (553,777 | ) | $ | 512,928 | ||||||||||
Changes in operating assets and liabilities and non-cash items included in net income | (370,991 | ) | 720,662 | 2,778 | 553,777 | 906,226 | |||||||||||||||
Net cash provided by operating activities | 50,177 | 1,044,930 | 324,047 | — | 1,419,154 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Additions of property and equipment, net | (32,305 | ) | (196,918 | ) | (170,304 | ) | — | (399,527 | ) | ||||||||||||
Acquisitions | — | (185,945 | ) | (48,857 | ) | — | (234,802 | ) | |||||||||||||
Proceeds from asset sales | 60,650 | 1,632 | — | — | 62,282 | ||||||||||||||||
Purchases of investments and other items | (2,574 | ) | (2,565 | ) | 100 | — | (5,039 | ) | |||||||||||||
Net cash provided by (used in) investing activities | 25,771 | (383,796 | ) | (219,061 | ) | — | (577,086 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Long-term debt and related financing costs, net | (370,774 | ) | (9,211 | ) | (4,316 | ) | — | (384,301 | ) | ||||||||||||
Intercompany borrowing | 684,985 | (653,287 | ) | (31,698 | ) | — | — | ||||||||||||||
Other items | 44,164 | 5,609 | (69,695 | ) | — | (19,922 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 358,375 | (656,889 | ) | (105,709 | ) | — | (404,223 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | (899 | ) | — | (899 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 434,323 | 4,245 | (1,622 | ) | — | 436,946 | |||||||||||||||
Cash and cash equivalents at beginning of period | 195,037 | 166,107 | 172,604 | — | 533,748 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 629,360 | $ | 170,352 | $ | 170,982 | $ | — | $ | 970,694 | |||||||||||
Reportable Legal Entities | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Income | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Income | |||||||||||||||||||||
For the three months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||||||
Subsidiaries(1) | |||||||||||||||||||||
Patient service operating revenues | $ | 2,242,533 | $ | 31,231 | $ | — | $ | 2,211,302 | |||||||||||||
Less: Provision for uncollectible accounts | (98,971 | ) | (5,053 | ) | — | (93,918 | ) | ||||||||||||||
Net patient service operating revenues | 2,143,562 | 26,178 | — | 2,117,384 | |||||||||||||||||
Capitated revenues | 848,546 | 387,405 | — | 461,141 | |||||||||||||||||
Other revenues | 259,716 | 856 | — | 258,860 | |||||||||||||||||
Total net operating revenues | 3,251,824 | 414,439 | — | 2,837,385 | |||||||||||||||||
Operating expenses | 2,814,288 | 409,550 | 27 | 2,404,711 | |||||||||||||||||
Operating income | 437,536 | 4,889 | (27 | ) | 432,674 | ||||||||||||||||
Debt expense, including refinancing charges | (99,878 | ) | (2,364 | ) | — | (97,514 | ) | ||||||||||||||
Other (loss) income | (1,246 | ) | 42 | — | (1,288 | ) | |||||||||||||||
Income tax expense | 116,628 | 721 | (11 | ) | 115,918 | ||||||||||||||||
Net income | 219,784 | 1,846 | (16 | ) | 217,954 | ||||||||||||||||
Minority interests | (35,662 | ) | — | — | (35,662 | ) | |||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 184,122 | $ | 1,846 | $ | (16 | ) | $ | 182,292 | ||||||||||||
For the nine months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||||||
Subsidiaries(1) | |||||||||||||||||||||
Patient service operating revenues | $ | 6,543,880 | $ | 91,731 | $ | — | $ | 6,452,149 | |||||||||||||
Less: Provision for uncollectible accounts | (270,220 | ) | (7,642 | ) | — | (262,578 | ) | ||||||||||||||
Net patient service operating revenues | 6,273,660 | 84,089 | — | 6,189,571 | |||||||||||||||||
Capitated revenues | 2,435,480 | 1,122,085 | — | 1,313,395 | |||||||||||||||||
Other revenues | 757,949 | 3,735 | — | 754,214 | |||||||||||||||||
Total net operating revenues | 9,467,089 | 1,209,909 | — | 8,257,180 | |||||||||||||||||
Operating expenses | 8,104,033 | 1,185,349 | 263 | 6,918,421 | |||||||||||||||||
Operating income | 1,363,056 | 24,560 | (263 | ) | 1,338,759 | ||||||||||||||||
Debt expense, including refinancing charges | (409,893 | ) | (8,982 | ) | — | (400,911 | ) | ||||||||||||||
Other income | 2,145 | 75 | — | 2,070 | |||||||||||||||||
Income tax expense | 342,366 | 4,878 | (105 | ) | 337,593 | ||||||||||||||||
Net income | 612,942 | 10,775 | (158 | ) | 602,325 | ||||||||||||||||
Minority interests | (97,848 | ) | — | — | (97,848 | ) | |||||||||||||||
Net income attributable to DaVita HealthCare Partners Inc. | $ | 515,094 | $ | 10,775 | $ | (158 | ) | $ | 504,477 | ||||||||||||
(1) | After the elimination of the unrestricted subsidiaries and the physician groups | ||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income | |||||||||||||||||||||
For the three months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||||||
Subsidiaries(1) | |||||||||||||||||||||
Net income | $ | 219,784 | $ | 1,846 | $ | (16 | ) | $ | 217,954 | ||||||||||||
Other comprehensive loss | (12,290 | ) | — | — | (12,290 | ) | |||||||||||||||
Total comprehensive income | 207,494 | 1,846 | (16 | ) | 205,664 | ||||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | (35,662 | ) | — | — | (35,662 | ) | |||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 171,832 | $ | 1,846 | $ | (16 | ) | $ | 170,002 | ||||||||||||
For the nine months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||||||
Subsidiaries(1) | |||||||||||||||||||||
Net income | $ | 612,942 | $ | 10,775 | $ | (158 | ) | $ | 602,325 | ||||||||||||
Other comprehensive loss | (8,979 | ) | — | — | (8,979 | ) | |||||||||||||||
Total comprehensive income | 603,963 | 10,775 | (158 | ) | 593,346 | ||||||||||||||||
Less: comprehensive income attributable to the noncontrolling interests | (97,848 | ) | — | — | (97,848 | ) | |||||||||||||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ | 506,115 | $ | 10,775 | $ | (158 | ) | $ | 495,498 | ||||||||||||
(1) | After the elimination of the unrestricted subsidiaries and the physician groups | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ' | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||
As of September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||||||
Subsidiaries(1) | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,527,035 | $ | 112,135 | $ | — | $ | 1,414,900 | |||||||||||||
Accounts receivable, net | 1,468,563 | 235,882 | — | 1,232,681 | |||||||||||||||||
Other current assets | 1,182,837 | 20,349 | — | 1,162,488 | |||||||||||||||||
Total current assets | 4,178,435 | 368,366 | — | 3,810,069 | |||||||||||||||||
Property and equipment, net | 2,359,203 | 4,872 | — | 2,354,331 | |||||||||||||||||
Amortizable intangibles, net | 1,997,772 | 6,490 | — | 1,991,282 | |||||||||||||||||
Other long-term assets | 221,365 | 65,138 | 3,061 | 153,166 | |||||||||||||||||
Goodwill | 9,344,641 | 9,181 | — | 9,335,460 | |||||||||||||||||
Total assets | $ | 18,101,416 | $ | 454,047 | $ | 3,061 | $ | 17,644,308 | |||||||||||||
Current liabilities | $ | 2,597,631 | $ | 193,082 | $ | — | $ | 2,404,549 | |||||||||||||
Payables to parent | — | 166,269 | 3,061 | (169,330 | ) | ||||||||||||||||
Long-term debt and other long-term liabilities | 9,593,567 | 82,458 | — | 9,511,109 | |||||||||||||||||
Noncontrolling interests subject to put provisions | 758,743 | — | — | 758,743 | |||||||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,975,042 | 12,238 | — | 4,962,804 | |||||||||||||||||
Noncontrolling interests not subject to put provisions | 176,433 | — | — | 176,433 | |||||||||||||||||
Shareholders’ equity | 5,151,475 | 12,238 | — | 5,139,237 | |||||||||||||||||
Total liabilities and shareholder’s equity | $ | 18,101,416 | $ | 454,047 | $ | 3,061 | $ | 17,644,308 | |||||||||||||
As of December 31, 2013 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||||||
Subsidiaries(1) | |||||||||||||||||||||
Cash and cash equivalents | $ | 946,249 | $ | 127,309 | $ | — | $ | 818,940 | |||||||||||||
Accounts receivable, net | 1,485,163 | 235,463 | — | 1,249,700 | |||||||||||||||||
Other current assets | 1,040,866 | 35,640 | — | 1,005,226 | |||||||||||||||||
Total current assets | 3,472,278 | 398,412 | — | 3,073,866 | |||||||||||||||||
Property and equipment, net | 2,189,411 | 5,541 | — | 2,183,870 | |||||||||||||||||
Amortizable intangibles, net | 2,024,373 | 7,283 | — | 2,017,090 | |||||||||||||||||
Other long-term assets | 199,841 | 64,013 | 3,325 | 132,503 | |||||||||||||||||
Goodwill | 9,212,974 | 8,981 | — | 9,203,993 | |||||||||||||||||
Total assets | $ | 17,098,877 | $ | 484,230 | $ | 3,325 | $ | 16,611,322 | |||||||||||||
Current liabilities | $ | 2,462,049 | $ | 193,079 | $ | — | $ | 2,268,970 | |||||||||||||
Payables to parent | — | 194,958 | 3,325 | (198,283 | ) | ||||||||||||||||
Long-term debt and other long-term liabilities | 9,333,987 | 94,727 | — | 9,239,260 | |||||||||||||||||
Noncontrolling interests subject to put provisions | 697,300 | — | — | 697,300 | |||||||||||||||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,432,479 | 1,466 | — | 4,431,013 | |||||||||||||||||
Noncontrolling interests not subject to put provisions | 173,062 | — | — | 173,062 | |||||||||||||||||
Shareholders’ equity | 4,605,541 | 1,466 | — | 4,604,075 | |||||||||||||||||
Total liabilities and shareholder’s equity | $ | 17,098,877 | $ | 484,230 | $ | 3,325 | $ | 16,611,322 | |||||||||||||
(1) | After the elimination of the unrestricted subsidiaries and the physician groups | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ' | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | |||||||||||||||||||||
For the nine months ended September 30, 2014 | Consolidated | Physician | Unrestricted | Company and | |||||||||||||||||
Total | Groups | Subsidiaries | Restricted | ||||||||||||||||||
Subsidiaries(1) | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net income | $ | 612,942 | $ | 10,775 | $ | (158 | ) | $ | 602,325 | ||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | 916,456 | 5,752 | 158 | 910,546 | |||||||||||||||||
Net cash provided by operating activities | 1,529,398 | 16,527 | — | 1,512,871 | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Additions of property and equipment | (443,507 | ) | (145 | ) | — | (443,362 | ) | ||||||||||||||
Acquisitions and divestitures, net | (218,117 | ) | — | — | (218,117 | ) | |||||||||||||||
Proceeds from discontinued operations | 3,620 | — | — | 3,620 | |||||||||||||||||
Investments and other items | (173,181 | ) | (2,757 | ) | — | (170,424 | ) | ||||||||||||||
Net cash used in investing activities | (831,185 | ) | (2,902 | ) | — | (828,283 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Long-term debt | 31,298 | — | — | 31,298 | |||||||||||||||||
Intercompany | — | (28,799 | ) | — | 28,799 | ||||||||||||||||
Other items | (150,307 | ) | — | — | (150,307 | ) | |||||||||||||||
Net cash used in by financing activities | (119,009 | ) | (28,799 | ) | — | (90,210 | ) | ||||||||||||||
Effect of exchange rate changes on cash | 1,582 | — | — | 1,582 | |||||||||||||||||
Net increase (decrease) in cash | 580,786 | (15,174 | ) | — | 595,960 | ||||||||||||||||
Cash at beginning of year | 946,249 | 127,309 | — | 818,940 | |||||||||||||||||
Cash at end of year | $ | 1,527,035 | $ | 112,135 | $ | — | $ | 1,414,900 | |||||||||||||
(1) | After the elimination of the unrestricted subsidiaries and the physician groups |
Reconciliations_of_Numerators_
Reconciliations of Numerators and Denominators Used to Calculate Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Basic: | ' | ' | ' | ' | ||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | $184,122 | $136,628 | $515,094 | $407,919 | ||||
Increase in noncontrolling interests redemption rights in excess of fair value | ' | 259 | ' | ' | ||||
Income from continuing operations for basic earnings per share calculation | 184,122 | 136,887 | 515,094 | 407,919 | ||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | ' | ' | ' | 13,249 | ||||
Net income attributable to DaVita HealthCare Partners Inc. for basic earnings per share calculation | 184,122 | 136,887 | 515,094 | 421,168 | ||||
Weighted average shares outstanding during the period | 214,810,000 | 212,584,000 | 214,280,000 | 211,914,000 | ||||
Vested stock units | 1,000 | 5,000 | 1,000 | 5,000 | ||||
Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger | -2,194,000 | -2,194,000 | -2,194,000 | -2,194,000 | ||||
Weighted average shares for basic earnings per share calculation | 212,617,238 | 210,394,560 | 212,086,735 | 209,725,439 | ||||
Basic income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $0.87 | $0.65 | $2.43 | $1.95 | ||||
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 | $0.65 | $2.43 | $2.01 | ||||
Diluted: | ' | ' | ' | ' | ||||
Income from continuing operations attributable to DaVita HealthCare Partners Inc. | 184,122 | 136,628 | 515,094 | 407,919 | ||||
Increase in noncontrolling interests redemption rights in excess of fair value | ' | 259 | ' | ' | ||||
Income from continuing operations for diluted earnings per share calculation | 184,122 | 136,887 | 515,094 | 407,919 | ||||
Discontinued operations attributable to DaVita HealthCare Partners Inc. | ' | ' | ' | 13,249 | ||||
Net income attributable to DaVita HealthCare Partners Inc. for diluted earnings per share calculation | $184,122 | $136,887 | $515,094 | $421,168 | ||||
Weighted average shares outstanding during the period | 214,810,000 | 212,584,000 | 214,280,000 | 211,914,000 | ||||
Vested stock units | 1,000 | 5,000 | 1,000 | 5,000 | ||||
Assumed incremental shares from stock plans | 2,425,000 | 2,314,000 | 2,414,000 | 2,713,000 | ||||
Weighted average shares for diluted earnings per share calculation | 217,236,493 | 214,902,860 | 216,695,033 | 214,631,587 | ||||
Diluted income from continuing operations per share attributable to DaVita HealthCare Partners Inc. | $0.85 | $0.64 | $2.38 | $1.90 | ||||
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 | $0.64 | $2.38 | $1.96 | ||||
Anti-dilutive stock-settled awards excluded from calculation | 1,422,000 | [1] | 4,908,000 | [1] | 1,804,000 | [1] | 3,871,000 | [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 $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 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 |
Decreased in allowance for doubtful accounts | ($1,951) |
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 $) | Sep. 30, 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 | $140,722 | $5,601 |
Investments in mutual funds and common stock | 26,237 | 19,421 |
Total investment | 166,959 | 25,022 |
Short-term investments | 142,122 | 6,801 |
Long-term investments | 24,837 | 18,221 |
Total investment | 166,959 | 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 | 140,722 | 5,601 |
Total investment | 140,722 | 5,601 |
Short-term investments | 140,722 | 5,601 |
Total investment | 140,722 | 5,601 |
Available for sale | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Investments in mutual funds and common stock | 26,237 | 19,421 |
Total investment | 26,237 | 19,421 |
Short-term investments | 1,400 | 1,200 |
Long-term investments | 24,837 | 18,221 |
Total investment | $26,237 | $19,421 |
Recovered_Sheet1
Investments in Debt and Equity Securities and Other Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ' | ' |
Available for sale investments gross pre-tax unrealized gain (loss) | $5,594 | ' | $5,594 | ' | $5,096 |
Unrealized gain (loss) on investments, pre tax | ' | ' | 838 | ' | ' |
Unrealized gain (loss) on investments, net of tax | -392 | 648 | 517 | 1,367 | ' |
Proceeds from sale of investments available for sale | ' | ' | 1,321 | 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 | ' | 5,000 | ' | ' |
HealthCare Partners (HCP) | ' | ' | ' | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' | ' | ' | ' |
Required minimum cash balance | $56,000 | ' | $56,000 | ' | ' |
Changes_in_Goodwill_by_Reporta
Changes in Goodwill by Reportable Segments (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ' | ' |
Beginning balance | $9,212,974 | $8,952,750 |
Acquisitions | 146,399 | 271,267 |
Divestitures | -1,851 | -2,728 |
Other adjustments | -12,881 | -8,315 |
Ending balance | 9,344,641 | 9,212,974 |
U.S. dialysis and related lab services | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 5,469,473 | 5,309,152 |
Acquisitions | 85,779 | 163,037 |
Divestitures | -1,851 | -2,728 |
Other adjustments | ' | 12 |
Ending balance | 5,553,401 | 5,469,473 |
HealthCare Partners (HCP) | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 3,516,162 | 3,506,571 |
Acquisitions | 48,548 | 17,833 |
Other adjustments | -2,277 | -8,242 |
Ending balance | 3,562,433 | 3,516,162 |
Other-Ancillary services and strategic initiatives | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 227,339 | 137,027 |
Acquisitions | 12,072 | 90,397 |
Other adjustments | -10,604 | -85 |
Ending balance | $228,807 | $227,339 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $9,344,641 | $9,212,974 | $8,952,750 |
Goodwill impairment charge description | 'For example, a sustained, long-term reduction of 3% in operating income for HCP California, HCP Nevada and HCP New Mexico could reduce their estimated fair values by up to 2.4%, 2.9% and 2.7%, respectively. Separately, an increase in their respective discount rates of 100 basis points could reduce the estimated fair values of HCP California, HCP Nevada and HCP New Mexico by up to 5.1%, 6.0% and 5.7%, respectively. | ' | ' |
Pre-tax goodwill impairment charge | 0 | ' | ' |
HealthCare Partners (HCP) | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Number of reporting units | 3 | ' | ' |
Goodwill | 3,562,433 | 3,516,162 | 3,506,571 |
HealthCare Partners (HCP) | California | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 2,511,477 | ' | ' |
Percentage of Fair value in excess of carrying amount | 5.30% | ' | ' |
HealthCare Partners (HCP) | Nevada | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 517,618 | ' | ' |
Percentage of Fair value in excess of carrying amount | 11.30% | ' | ' |
HealthCare Partners (HCP) | New Mexico | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $72,130 | ' | ' |
Percentage of Fair value in excess of carrying amount | 8.30% | ' | ' |
Components_of_Changes_in_Healt
Components of Changes in Health Care Costs Payable (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Healthcare Cost | ||
Medical Expense And Medical Claims Payable [Line Items] | ' | ' | ' |
Health care costs payable, beginning of the period | $306,076 | $287,452 | $172,310 |
Add: Components of incurred health care costs | ' | ' | ' |
Current year | ' | ' | 1,180,740 |
Prior years | ' | ' | 6,442 |
Total incurred health care costs | ' | ' | 1,187,182 |
Less: Claims paid | ' | ' | ' |
Current year | ' | ' | 993,731 |
Prior years | ' | ' | 156,525 |
Total claims paid | ' | ' | 1,150,256 |
Health care costs payable, end of the period | $306,076 | $287,452 | $209,236 |
Health_Care_Costs_Payable_Addi
Health Care Costs Payable - Additional Information (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Medical Expense And Medical Claims Payable [Line Items] | ' |
Increase in prior year estimates of health care costs payable | $6,442 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | ' | ' |
Total unrecognized tax benefits that would affect effective tax rate, if recognized | $33,207 | ' |
Decrease in liability for unrecognized tax benefits | 27,331 | ' |
Liability for unrecognized tax benefits | 33,207 | 60,538 |
Unrecognized tax benefits that due to change of accounting method | 27,427 | ' |
Accrued interest and penalties related to unrecognized tax benefits, net of federal tax benefits | $10,802 | $10,742 |
Long_Term_Debt_Detail
Long Term Debt (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Senior notes | $3,775,000 | $2,800,000 |
Acquisition obligations and other notes payable | 70,847 | 67,352 |
Capital lease obligations | 194,689 | 152,751 |
Total debt principal outstanding | 8,519,286 | 8,433,603 |
Discount on long-term debt | -16,853 | -17,675 |
Carrying Amount of Long-Term Debt, Net of Unamortized Discount or Premium, Current and Noncurrent, Total | 8,502,433 | 8,415,928 |
Less current portion | -121,530 | -274,697 |
Long Term Debt and Capital Lease Obligations Noncurrent | 8,380,903 | 8,141,231 |
Carrying Amount of Long-Term Debt, Net of Unamortized Discount or Premium, Current and Noncurrent, Total | 8,502,433 | 8,415,928 |
New Term Loan A | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | 987,500 | ' |
New Term Loan B | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | 3,491,250 | ' |
Prior Term Loan A | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | ' | 800,000 |
Prior Term Loan A-3 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | ' | 1,282,500 |
Prior Term Loan B | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | ' | 1,697,500 |
Prior Term Loan B-2 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facilities | ' | $1,633,500 |
Scheduled_Maturities_of_Longte
Scheduled Maturities of Long-term Debt (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
2014 (remainder of the year) | $35,170 |
2015 | 113,185 |
2016 | 116,633 |
2017 | 142,834 |
2018 | 154,782 |
2019 | 728,303 |
Thereafter | $7,228,379 |
Longterm_Debt_Additional_Infor
Long-term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Maximum | Amortizing Swap | Interest rate swap agreements | Interest rate swap agreements | HealthCare Partners (HCP) | Revolving Credit Facility | New Term Loan A | New Term Loan A | New Term Loan A | New Term Loan A | New Term Loan A | New Term Loan A | New Term Loan A | New Term Loan A | New Term Loan A | New Term Loan B | New Term Loan B | New Term Loan B | New Term Loan B | New Term Loan B | New Term Loan B | New Term Loan B | New Term Loan B | New Term Loan B | Prior Term Loan A | Prior Term Loan B | Senior Notes 5.125 Percent Due 2024 | Senior Notes 5.125 Percent Due 2024 | Senior Notes 5.125 Percent Due 2024 | Senior Notes 5.125 Percent Due 2024 | New Term Loans and Senior Notes 5.125 Percent Due 2024 | New Term Loans | Senior Secured Credit Facilities | Senior Notes 6.375 Percent Due 2018 | Senior Notes 6.375 Percent Due 2018 | Senior Notes 6.375 Percent Due 2018 | Term Loan A-3 | Prior Term Loan B-2 | |||||||
Interest rate swap agreements | Interest rate swap agreements | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Maximum | Interest rate cap agreements | Interest rate cap agreements | Interest rate cap agreements | Interest rate cap agreements | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Maximum | Maximum | Debt Instrument, Redemption, Period One | Debt Instrument, Redemption, Period Two | |||||||||||||||||||||||||||
Unhedged | Maximum | Minimum | Interest rate swap agreements | Derivative Instrument 1 | Derivative Instrument 1 | Derivative Instrument 2 | Derivative Instrument 2 | |||||||||||||||||||||||||||||||||||||
Maximum | Contract | Maximum | ||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument principal payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,500 | ' | ' | ' | ' | ' | ' | ' | ' | $8,750 | ' | ' | ' | ' | ' | ' | ' | $37,500 | $4,375 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16,875 | $4,125 |
Facility, aggregate principal amount | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facility, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum additional borrowing capacity | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured leverage ratio | ' | ' | ' | ' | ' | ' | 350.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 1.75% | 2.00% | 1.50% | 1.75% | ' | ' | ' | ' | ' | ' | ' | 2.75% | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term borrowing annual principal payment, 2014 | ' | 35,170 | ' | 35,170 | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | 17,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term borrowing annual principal payment, 2015 | ' | 113,185 | ' | 113,185 | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term borrowing annual principal payment, 2016 | ' | 116,633 | ' | 116,633 | ' | ' | ' | ' | ' | ' | ' | ' | 62,500 | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term borrowing annual principal payment, 2017 | ' | 142,834 | ' | 142,834 | ' | ' | ' | ' | ' | ' | ' | ' | 87,500 | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term borrowing annual principal payment, 2018 | ' | 154,782 | ' | 154,782 | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term borrowing annual principal payment, 2019 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 675,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument Interest rate Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' | ' | 2.50% | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term borrowing annual principal payment, 2019 | ' | 728,303 | ' | 728,303 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term borrowing annual principal payment, 2020 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term borrowing annual principal payment, 2021 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,272,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenants factor leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior note | ' | 3,775,000 | ' | 3,775,000 | ' | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior note, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior note, due date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2024 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes interest payment period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The 5 1/8% Senior Notes pay interest on January 15 and July 15 of each year beginning January 15, 2015. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes interest payment, first required payment date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jan-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt redemption end date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jul-19 | ' | ' | 15-Jul-17 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of redemption | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from borrowings | ' | ' | ' | 46,619,292 | 49,941,883 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750,000 | ' | ' | ' | 6,250,000 | 4,500,000 | ' | ' | ' | ' | ' | ' |
Payment of total outstanding principal balances under existing Senior Secured Credit Facilities plus accrued interest | ' | ' | ' | 46,587,984 | 50,325,455 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,362,428 | ' | ' | ' | ' | ' |
Outstanding principal balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 483,093 | ' | ' | ' | ' |
Aggregate debt principal balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 775,000 | 188 | 291,719 | ' | ' |
Redemption of total amount of debt including principal and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 512,386 | 194 | 309,954 | ' | ' |
Debt instrument, redemption price ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,051.25 | 1,021.25 | 1,047.81 | ' | ' |
Cash tender premium for redemption | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,759 | 4 | 13,947 | ' | ' |
Fees, discounts and other professional expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,569 | ' | ' | ' | ' |
Notional amount terminated | ' | ' | ' | ' | ' | ' | ' | 1,137,500 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt refinancing charge | ' | ' | ' | 97,548 | ' | ' | ' | ' | 3,140 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of gains (losses) recognized in other comprehensive income on interest rate swap | 2,972 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt expense | ' | 99,878 | 108,421 | 312,345 | 322,334 | ' | ' | ' | ' | 6,137 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate agreements, notional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 866,875 | 120,625 | ' | ' | ' | ' | ' | ' | ' | ' | 2,735,000 | ' | 1,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate, lower limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.49% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate, upper limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.52% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.26% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-16 | ' | 30-Sep-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt expense recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,387 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,829 | ' | 2,691 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,702 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,514 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized pre-tax losses in other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,035 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized loss in other comprehensive income | ' | 537 | -7,733 | -7,177 | 1,583 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,052 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of interest rate agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR interest rate for interest cap | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overall weighted average effective interest rate on Senior Secured Credit Facilities | ' | 3.43% | ' | 3.43% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average effective interest rate | ' | 4.52% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overall weighted average effective interest rate | ' | 4.46% | ' | 4.46% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undrawn revolving credit facilities | ' | 1,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | $96,000 | ' | $96,000 | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_Detail
Derivative Instruments (Detail) (Designated as Hedging Instrument, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest rate swap agreements | Other short-term liabilities | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative liabilities, Fair value | $2,035 | $12,069 |
Interest rate swap agreements | Other long-term assets | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets, Fair value | 4,737 | 10,004 |
Interest rate cap agreements | Other long-term assets | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets, Fair value | $2,514 | $7,567 |
Effects_of_Interest_Rate_Swap_
Effects of Interest Rate Swap Agreements (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | ||
Interest rate swap agreements | Interest rate swap agreements | Interest rate swap agreements | Interest rate swap agreements | Interest rate swap agreements | Interest rate swap agreements | Interest rate swap agreements | Interest rate swap agreements | Interest rate cap agreements | Interest rate cap agreements | Interest rate cap agreements | Interest rate cap agreements | Interest rate cap agreements | Interest rate cap agreements | Interest rate cap agreements | Interest rate cap agreements | Tax benefit (expense) | Tax benefit (expense) | Tax benefit (expense) | Tax benefit (expense) | ||||||
Debt expense (including refinancing charges) | Debt expense (including refinancing charges) | Debt expense (including refinancing charges) | Debt expense (including refinancing charges) | Debt expense (including refinancing charges) | Debt expense (including refinancing charges) | Debt expense (including refinancing charges) | Debt expense (including refinancing charges) | ||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of gains (losses) recognized in OCI on interest rate swap and cap agreements | $2,972 | $537 | ($7,733) | ($7,177) | $1,583 | $1,058 | ($10,010) | ($6,728) | $2,292 | ' | ' | ' | ' | ($178) | ($2,646) | ($5,052) | $299 | ' | ' | ' | ' | ($343) | $4,923 | $4,603 | ($1,008) |
Amount of losses reclassified from accumulated OCI into income | ' | ($1,403) | ($3,464) | ($9,759) | ($9,433) | ' | ' | ' | ' | ($795) | ($4,162) | ($11,495) | ($11,528) | ' | ' | ' | ' | ($1,507) | ($1,507) | ($4,521) | ($3,911) | $899 | $2,205 | $6,257 | $6,006 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Legal Proceedings [Line Items] | ' | ' | ' | ' | ' |
Settlement payment before accrued interest | ' | ' | $350,000,000 | ' | ' |
Settlement payment, civil forfeiture | ' | ' | 39,000,000 | ' | ' |
Settlement of certain state Medicaid, agreed amount | 11,500,000 | ' | 11,500,000 | ' | ' |
Contingency reserve | 414,000,000 | ' | 414,000,000 | ' | 397,000,000 |
Loss contingency reserve | $17,000,000 | $97,000,000 | $17,000,000 | $397,000,000 | ' |
Period of Corporate integrity agreement | ' | ' | '5 years | ' | ' |
Recovered_Sheet2
Noncontrolling Interests Subject to Put Provisions and Other Commitments - Additional Information (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Commitments and Contingencies Disclosure [Line Items] | ' |
Other potential commitments to provide operating capital to several dialysis centers | $2,000 |
Additional other potential commitments | $1,000 |
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 |
Recovered_Sheet3
Long-term Incentive Compensation - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Long-term incentive program (LTIP) expense | $88,323 | $58,204 |
Stock-based compensation expense | 44,323 | 47,095 |
Tax benefit from stock-based compensation | 16,075 | 17,466 |
Unrecognized compensation cost related to outstanding LTIP awards | 147,760 | ' |
Unrecognized compensation cost related to nonvested stock-based compensation arrangements under equity compensation and stock purchase plans | 87,729 | ' |
Unrecognized compensation cost related to nonvested stock-based compensation arrangements under performance-based cash component of LTIP costs, weighted average remaining period (in years) | '1 year 1 month 6 days | ' |
Unrecognized compensation cost related to nonvested stock-based compensation arrangements under stock-based component of LTIP costs, weighted average remaining period (in years) | '1 year 4 months 24 days | ' |
Tax benefits from stock award exercises | 45,527 | 40,870 |
Stock Appreciation Rights | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock granted | 1,502 | ' |
Stock appreciation, aggregate grant-date fair value | 24,606 | ' |
Weighted-average expected life (in years) | '4 years 2 months 12 days | ' |
Stock Unit | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock granted | 329 | ' |
Weighted-average expected life (in years) | '3 years 4 months 24 days | ' |
Stock units, aggregate grant-date fair value | $23,767 | ' |
Performance-based | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock granted | 105 | ' |
Comprehensive_Income_Detail
Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | ' | ($2,645) | ' |
Unrealized (losses) gains | ' | ' | 838 | ' |
Unrealized (losses) gains net | -392 | 648 | 517 | 1,367 |
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 | -11,624 | ' | -11,624 | ' |
Interest Rate Swaps and Interest Rate Cap Agreements | ' | ' | ' | ' |
Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | -1,702 | -117 | -2,344 | -15,402 |
Unrealized (losses) gains | 880 | -12,656 | -11,780 | 2,591 |
Related income tax (expense) benefit | -343 | 4,923 | 4,603 | -1,008 |
Unrealized (losses) gains net | 537 | -7,733 | -7,177 | 1,583 |
Reclassification from accumulated other comprehensive income into net income | 2,302 | 5,669 | 16,016 | 15,439 |
Related tax | -899 | -2,205 | -6,257 | -6,006 |
Reclassification from accumulated other comprehensive income into net income net of tax | 1,403 | 3,464 | 9,759 | 9,433 |
Ending balance | 238 | -4,386 | 238 | -4,386 |
Investment securities | ' | ' | ' | ' |
Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | 3,822 | 1,935 | 3,120 | 1,310 |
Unrealized (losses) gains | -567 | 1,059 | 838 | 2,236 |
Related income tax (expense) benefit | 175 | -411 | -321 | -869 |
Unrealized (losses) gains net | -392 | 648 | 517 | 1,367 |
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 | 3,430 | 2,583 | 3,430 | 2,583 |
Foreign currency translation adjustments | ' | ' | ' | ' |
Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | -1,454 | -5,152 | -3,421 | -1,205 |
Unrealized (losses) gains | -13,838 | 2,741 | -11,871 | -1,206 |
Unrealized (losses) gains net | -13,838 | 2,741 | -11,871 | -1,206 |
Ending balance | -15,292 | -2,411 | -15,292 | -2,411 |
Accumulated other comprehensive income (loss) | ' | ' | ' | ' |
Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Beginning balance | 666 | -3,334 | -2,645 | -15,297 |
Unrealized (losses) gains | -13,525 | -8,856 | -22,813 | 3,621 |
Related income tax (expense) benefit | -168 | 4,512 | 4,282 | -1,877 |
Unrealized (losses) gains net | -13,693 | -4,344 | -18,531 | 1,744 |
Reclassification from accumulated other comprehensive income into net income | 2,302 | 5,669 | 15,676 | 15,284 |
Related tax | -899 | -2,205 | -6,124 | -5,945 |
Reclassification from accumulated other comprehensive income into net income net of tax | 1,403 | 3,464 | 9,552 | 9,339 |
Ending balance | ($11,624) | ($4,214) | ($11,624) | ($4,214) |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' | ' |
Amortizable intangible assets acquired, weighted-average estimated useful lives | '9 years 8 months 12 days | ' |
Goodwill deductible for tax purposes associated with acquisitions | $124,105 | ' |
Contingent earn-out obligations | 41,163 | 28,058 |
Other Accrued Liabilities | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Contingent earn-out obligations | 15,747 | ' |
Other long-term liabilities | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Contingent earn-out obligations | 25,416 | ' |
Other companies | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Additional cash consideration in the form of earn-out payments | 140,300 | ' |
Fair value of contingent earn-out consideration | 41,163 | ' |
Other companies | Scenario 1 | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Earn out consideration payment period | '2 years | ' |
Other companies | Earn-out obligations | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Earn out consideration payment period | '3 years | ' |
Other dialysis acquisitions | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Cash paid to acquire business | 218,117 | ' |
Deferred purchase price obligations | $23,777 | ' |
Other dialysis acquisitions | U.S. dialysis and related lab services | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Number of businesses acquired | 16 | ' |
Other dialysis acquisitions | Foreign Dialysis And Other Medical Businesses | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Number of businesses acquired | 4 | ' |
Assets_Acquired_and_Liabilitie
Assets Acquired and Liabilities Assumed and Recognized at Acquisition Dates at Estimated Fair Values (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | $9,344,641 | $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 | 4,424 | ' | ' |
Other amortizable intangible and long-term assets | 18,316 | ' | ' |
Goodwill | 146,399 | ' | ' |
Noncontrolling interest | -1,596 | ' | ' |
Aggregate purchase price | 241,894 | ' | ' |
U.S. dialysis and related lab services | Customer relationships | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Amortizable intangible-customer relationships | $74,351 | ' | ' |
Reconciliation_of_Changes_in_C
Reconciliation of Changes in Contingent Earn-Out Obligations (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Business Combination Segment Allocation [Line Items] | ' |
Beginning balance | $28,058 |
Contingent earn-out obligations associated with acquisitions | 18,234 |
Remeasurement of fair value | -2,414 |
Payments of contingent earn-outs | -2,715 |
Ending balance | $41,163 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Variable Interest Entity [Line Items] | ' |
Asset | $572,026 |
Liabilities | $312,363 |
Assets_Liabilities_and_Tempora
Assets, Liabilities and Temporary Equity Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities | ' | ' |
Contingent earn-out obligations | $41,163 | $28,058 |
Fair Value, Measurements, Recurring | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 26,237 | ' |
Funds on deposit with third parties | 79,247 | ' |
Liabilities | ' | ' |
Contingent earn-out obligations | 41,163 | ' |
Interest rate swap agreements | 2,035 | ' |
Temporary equity | ' | ' |
Noncontrolling interests subject to put provisions | 758,743 | ' |
Fair Value, Measurements, Recurring | Level 1 | ' | ' |
Assets | ' | ' |
Available-for-sale securities | 26,237 | ' |
Funds on deposit with third parties | 79,247 | ' |
Fair Value, Measurements, Recurring | Level 2 | ' | ' |
Liabilities | ' | ' |
Interest rate swap agreements | 2,035 | ' |
Fair Value, Measurements, Recurring | Level 3 | ' | ' |
Liabilities | ' | ' |
Contingent earn-out obligations | 41,163 | ' |
Temporary equity | ' | ' |
Noncontrolling interests subject to put provisions | 758,743 | ' |
Fair Value, Measurements, Recurring | Interest rate cap agreements | ' | ' |
Assets | ' | ' |
Interest rate derivative agreements | 2,514 | ' |
Fair Value, Measurements, Recurring | Interest rate cap agreements | Level 2 | ' | ' |
Assets | ' | ' |
Interest rate derivative agreements | 2,514 | ' |
Fair Value, Measurements, Recurring | Interest rate swap agreements | ' | ' |
Assets | ' | ' |
Interest rate derivative agreements | 4,737 | ' |
Fair Value, Measurements, Recurring | Interest rate swap agreements | Level 2 | ' | ' |
Assets | ' | ' |
Interest rate derivative agreements | $4,737 | ' |
Recovered_Sheet4
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt instrument, carrying amount | $8,519,286 | $8,433,603 |
Senior Secured Credit Facility | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt instrument, carrying amount | 4,461,897 | ' |
Debt instrument, fair value | 4,435,100 | ' |
Senior Notes | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt instrument, carrying amount | 3,775,000 | ' |
Debt instrument, fair value | $3,834,700 | ' |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of major lines of business | 2 |
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 | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Patient service revenues | $2,242,533 | $2,126,699 | $6,543,880 | $6,155,223 | ||||
Net patient service revenues | 2,143,562 | 2,052,222 | 6,273,660 | 5,938,498 | ||||
Other revenues | 259,716 | 200,100 | 757,949 | 542,390 | ||||
Total net operating revenues | 3,251,824 | 2,999,586 | 9,467,089 | 8,700,841 | ||||
Capitated revenues | 848,546 | 747,264 | 2,435,480 | 2,219,953 | ||||
Operating income | 437,536 | 377,074 | 1,363,056 | 1,065,955 | ||||
Contingent earn-out obligation adjustment | ' | ' | ' | 56,977 | ||||
Corporate support expenses | -3,527 | -18,657 | -8,415 | -41,055 | ||||
Debt expense | -99,878 | -108,421 | -312,345 | -322,334 | ||||
Debt refinancing charges | ' | ' | -97,548 | ' | ||||
Other (loss) income | -1,246 | 2,113 | 2,145 | 1,337 | ||||
Consolidated income from continuing operations before income taxes | 336,412 | 270,766 | 955,308 | 744,958 | ||||
U.S. dialysis and related lab services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Patient service revenues | 2,164,615 | 2,051,705 | 6,306,880 | 5,956,425 | ||||
Less: Provision for uncollectible accounts | -91,996 | -71,819 | -257,687 | -208,475 | ||||
Net patient service revenues | 2,072,619 | 1,979,886 | 6,049,193 | 5,747,950 | ||||
Other revenues | 3,427 | [1] | 3,016 | [1] | 10,159 | [1] | 9,335 | [1] |
HealthCare Partners (HCP) | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net patient service revenues | 49,783 | 58,049 | 164,081 | 161,084 | ||||
Other revenues | 14,013 | [2] | 14,156 | [2] | 72,566 | [2] | 37,459 | [2] |
Capitated revenues | 827,933 | 730,400 | 2,382,656 | 2,168,828 | ||||
Other-Ancillary services and strategic initiatives | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Capitated revenues | 20,613 | 16,864 | 52,824 | 51,125 | ||||
Other-Ancillary services and strategic initiatives | U.S. | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net patient service revenues | 5,250 | 4,159 | 14,112 | 10,648 | ||||
Other revenues | 240,770 | 181,499 | 670,441 | 491,244 | ||||
Other-Ancillary services and strategic initiatives | Ancillary Services And Strategic Initiatives And International | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net patient service revenues | 26,610 | 17,996 | 73,891 | 42,353 | ||||
Other revenues | 1,507 | 1,428 | 4,783 | 4,352 | ||||
Operating Segments | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total net operating revenues | 3,267,771 | 3,011,316 | 9,509,601 | 8,734,417 | ||||
Operating income | 441,063 | 395,731 | 1,371,471 | 1,050,033 | ||||
Operating Segments | U.S. dialysis and related lab services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Patient service revenues | 2,153,914 | 2,043,838 | 6,279,263 | 5,932,888 | ||||
Total net operating revenues | 2,076,046 | 1,982,902 | 6,059,352 | 5,757,285 | ||||
Operating income | 400,226 | 305,987 | 1,194,874 | 792,215 | ||||
Operating Segments | HealthCare Partners (HCP) | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total net operating revenues | 891,980 | 802,749 | 2,619,911 | 2,367,515 | ||||
Operating income | 46,339 | 97,862 | 182,341 | 287,328 | ||||
Operating Segments | Other-Ancillary services and strategic initiatives | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total net operating revenues | 299,745 | 225,665 | 830,338 | 609,617 | ||||
Operating income | -5,502 | -8,118 | -5,744 | -29,510 | ||||
Intersegment Elimination | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total net operating revenues | -15,947 | -11,730 | -42,512 | -33,576 | ||||
Intersegment Elimination | U.S. dialysis and related lab services | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Patient service revenues | 10,701 | 7,867 | 27,617 | 23,537 | ||||
Intersegment Elimination | HealthCare Partners (HCP) | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Other revenues | 251 | 144 | 608 | 144 | ||||
Intersegment Elimination | Other-Ancillary services and strategic initiatives | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Total net operating revenues | $4,995 | $3,719 | $14,287 | $9,895 | ||||
[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, as well as revenue related to the maintenance of existing physician networks. |
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) | 9 Months Ended |
Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ' |
Percentage of ownership in unconsolidated joint ventures | 50.00% |
Summary_of_Depreciation_and_Am
Summary of Depreciation and Amortization Expense by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation and amortization expense | $149,196 | $132,765 | $437,682 | $389,263 |
U.S. dialysis and related lab services | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation and amortization expense | 101,870 | 89,465 | 297,477 | 263,005 |
HealthCare Partners (HCP) | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation and amortization expense | 42,558 | 39,255 | 126,555 | 115,862 |
Other-Ancillary services and strategic initiatives | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Depreciation and amortization expense | $4,768 | $4,045 | $13,650 | $10,396 |
Summary_of_Assets_by_Segment_D
Summary of Assets by Segment (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment assets | ' | ' |
Total assets | $18,101,416 | $17,098,877 |
U.S. dialysis and related lab services | ' | ' |
Segment assets | ' | ' |
Total assets | 11,097,897 | 10,248,993 |
HealthCare Partners (HCP) | ' | ' |
Segment assets | ' | ' |
Total assets | 6,314,202 | 6,265,767 |
Other-Ancillary services and strategic initiatives | ' | ' |
Segment assets | ' | ' |
Total assets | $689,317 | $584,117 |
Summary_of_Expenditures_for_Pr
Summary of Expenditures for Property and Equipment by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Expenditures for property and equipment | $164,914 | $141,131 | $443,507 | $399,527 |
U.S. dialysis and related lab services | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Expenditures for property and equipment | 149,247 | 128,799 | 399,114 | 359,574 |
HealthCare Partners (HCP) | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Expenditures for property and equipment | 6,121 | 6,281 | 16,401 | 20,660 |
Other-Ancillary services and strategic initiatives | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Expenditures for property and equipment | $9,546 | $6,051 | $27,992 | $19,293 |
Effects_of_Changes_in_DaVita_I
Effects of Changes in DaVita Inc's Ownership Interest on Company's Equity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' | ' |
Net income attributable to DaVita HealthCare Partners Inc. | $184,122 | $136,628 | $515,094 | $421,168 |
Net transfers to noncontrolling interests | -2,278 | 21 | -151 | -1,340 |
Net income attributable to DaVita HealthCare Partners Inc., net of transfers to noncontrolling interests | 181,844 | 136,649 | 514,943 | 419,828 |
Additional paid-in capital | ' | ' | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' | ' |
(Decrease) increase in paid-in capital for sales of noncontrolling interests | -316 | 21 | 355 | -866 |
Decrease in paid-in capital for the purchase of noncontrolling interests and adjustments to ownership interest | ($1,962) | ' | ($506) | ($474) |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Patient service revenues | $2,242,533 | $2,126,699 | $6,543,880 | $6,155,223 |
Less: Provision for uncollectible accounts | -98,971 | -74,477 | -270,220 | -216,725 |
Net patient service revenues | 2,143,562 | 2,052,222 | 6,273,660 | 5,938,498 |
Capitated revenues | 848,546 | 747,264 | 2,435,480 | 2,219,953 |
Other revenues | 259,716 | 200,100 | 757,949 | 542,390 |
Total net revenues | 3,251,824 | 2,999,586 | 9,467,089 | 8,700,841 |
Operating expenses | 2,814,288 | 2,622,512 | 8,104,033 | 7,634,886 |
Operating income | 437,536 | 377,074 | 1,363,056 | 1,065,955 |
Debt expense | -99,878 | -108,421 | -409,893 | -322,334 |
Other income (loss), net | -1,246 | 2,113 | 2,145 | 1,337 |
Income tax expense (benefit) | 116,628 | 100,930 | 342,366 | 245,266 |
Income from continuing operations | 219,784 | 169,836 | 612,942 | 499,692 |
Discontinued operations | ' | ' | ' | 13,236 |
Net income | 219,784 | 169,836 | 612,942 | 512,928 |
Less: Net income attributable to noncontrolling interests | -35,662 | -33,208 | -97,848 | -91,760 |
Net income attributable to DaVita HealthCare Partners Inc. | 184,122 | 136,628 | 515,094 | 421,168 |
DaVita HealthCare Partners Inc. | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Other revenues | 174,226 | 159,546 | 518,468 | 461,571 |
Total net revenues | 174,226 | 159,546 | 518,468 | 461,571 |
Operating expenses | 123,856 | 117,216 | 358,968 | 309,601 |
Operating income | 50,370 | 42,330 | 159,500 | 151,970 |
Debt expense | -98,496 | -107,550 | -406,037 | -320,218 |
Other income (loss), net | 94,258 | 100,943 | 293,733 | 302,111 |
Income tax expense (benefit) | 18,395 | 16,144 | 18,826 | 50,199 |
Equity earnings in subsidiaries | 156,385 | 117,049 | 486,724 | 337,504 |
Income from continuing operations | ' | ' | ' | 421,168 |
Net income | 184,122 | 136,628 | 515,094 | 421,168 |
Net income attributable to DaVita HealthCare Partners Inc. | 184,122 | 136,628 | 515,094 | 421,168 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Patient service revenues | 1,592,398 | 1,527,860 | 4,622,943 | 4,456,215 |
Less: Provision for uncollectible accounts | -61,973 | -47,381 | -169,133 | -148,456 |
Net patient service revenues | 1,530,425 | 1,480,479 | 4,453,810 | 4,307,759 |
Capitated revenues | 442,472 | 357,058 | 1,261,385 | 1,054,394 |
Other revenues | 422,733 | 384,676 | 1,241,043 | 1,117,710 |
Total net revenues | 2,395,630 | 2,222,213 | 6,956,238 | 6,479,863 |
Operating expenses | 2,126,918 | 2,014,126 | 6,141,200 | 5,922,490 |
Operating income | 268,712 | 208,087 | 815,038 | 557,373 |
Debt expense | -89,048 | -83,432 | -277,854 | -273,747 |
Other income (loss), net | 388 | -9,615 | 9,323 | 66 |
Income tax expense (benefit) | 99,927 | 81,180 | 315,473 | 175,697 |
Equity earnings in subsidiaries | 76,260 | 88,791 | 255,690 | 216,273 |
Income from continuing operations | ' | ' | ' | 324,268 |
Net income | 156,385 | 122,651 | 486,724 | 324,268 |
Net income attributable to DaVita HealthCare Partners Inc. | 156,385 | 122,651 | 486,724 | 324,268 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Patient service revenues | 651,031 | 602,708 | 1,918,700 | 1,720,574 |
Less: Provision for uncollectible accounts | -36,998 | -27,096 | -101,087 | -68,269 |
Net patient service revenues | 614,033 | 575,612 | 1,817,613 | 1,652,305 |
Capitated revenues | 406,926 | 392,040 | 1,175,354 | 1,170,166 |
Other revenues | 37,961 | 26,411 | 105,964 | 65,251 |
Total net revenues | 1,058,920 | 994,063 | 3,098,931 | 2,887,722 |
Operating expenses | 940,466 | 867,406 | 2,710,413 | 2,531,110 |
Operating income | 118,454 | 126,657 | 388,518 | 356,612 |
Debt expense | -8,730 | -8,505 | -28,662 | -30,475 |
Other income (loss), net | 504 | 1,851 | 1,749 | 1,266 |
Income tax expense (benefit) | -1,694 | 3,606 | 8,067 | 19,370 |
Income from continuing operations | ' | ' | ' | 308,033 |
Discontinued operations | ' | ' | ' | 13,236 |
Net income | 111,922 | 116,397 | 353,538 | 321,269 |
Net income attributable to DaVita HealthCare Partners Inc. | 111,922 | 116,397 | 353,538 | 321,269 |
Consolidating Adjustments | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Patient service revenues | -896 | -3,869 | 2,237 | -21,566 |
Net patient service revenues | -896 | -3,869 | 2,237 | -21,566 |
Capitated revenues | -852 | -1,834 | -1,259 | -4,607 |
Other revenues | -375,204 | -370,533 | -1,107,526 | -1,102,142 |
Total net revenues | -376,952 | -376,236 | -1,106,548 | -1,128,315 |
Operating expenses | -376,952 | -376,236 | -1,106,548 | -1,128,315 |
Debt expense | 96,396 | 91,066 | 302,660 | 302,106 |
Other income (loss), net | -96,396 | -91,066 | -302,660 | -302,106 |
Equity earnings in subsidiaries | -232,645 | -205,840 | -742,414 | -553,777 |
Income from continuing operations | ' | ' | ' | -553,777 |
Net income | -232,645 | -205,840 | -742,414 | -553,777 |
Less: Net income attributable to noncontrolling interests | -35,662 | -33,208 | -97,848 | -91,760 |
Net income attributable to DaVita HealthCare Partners Inc. | ($268,307) | ($239,048) | ($840,262) | ($645,537) |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | $219,784 | $169,836 | $612,942 | $512,928 |
Other comprehensive income | -12,290 | -880 | -8,979 | 11,083 |
Total comprehensive income | 207,494 | 168,956 | 603,963 | 524,011 |
Less: Comprehensive income attributable to noncontrolling interests | -35,662 | -33,208 | -97,848 | -91,760 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 171,832 | 135,748 | 506,115 | 432,251 |
DaVita HealthCare Partners Inc. | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | 184,122 | 136,628 | 515,094 | 421,168 |
Other comprehensive income | -12,290 | -880 | -8,979 | 11,083 |
Total comprehensive income | 171,832 | 135,748 | 506,115 | 432,251 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 171,832 | 135,748 | 506,115 | 432,251 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | 156,385 | 122,651 | 486,724 | 324,268 |
Total comprehensive income | 156,385 | 122,651 | 486,724 | 324,268 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 156,385 | 122,651 | 486,724 | 324,268 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | 111,922 | 116,397 | 353,538 | 321,269 |
Total comprehensive income | 111,922 | 116,397 | 353,538 | 321,269 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 111,922 | 116,397 | 353,538 | 321,269 |
Consolidating Adjustments | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | -232,645 | -205,840 | -742,414 | -553,777 |
Total comprehensive income | -232,645 | -205,840 | -742,414 | -553,777 |
Less: Comprehensive income attributable to noncontrolling interests | -35,662 | -33,208 | -97,848 | -91,760 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | ($268,307) | ($239,048) | ($840,262) | ($645,537) |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $1,527,035 | $946,249 | $970,694 | $533,748 |
Accounts receivable, net | 1,468,563 | 1,485,163 | ' | ' |
Other current assets | 1,182,837 | 1,040,866 | ' | ' |
Total current assets | 4,178,435 | 3,472,278 | ' | ' |
Property and equipment, net | 2,359,203 | 2,189,411 | ' | ' |
Amortizable intangibles, net | 1,997,772 | 2,024,373 | ' | ' |
Other long-term assets and investments | 221,365 | 199,841 | ' | ' |
Goodwill | 9,344,641 | 9,212,974 | ' | 8,952,750 |
Total assets | 18,101,416 | 17,098,877 | ' | ' |
Current liabilities | 2,597,631 | 2,462,049 | ' | ' |
Long-term debt and other long-term liabilities | 9,593,567 | 9,333,987 | ' | ' |
Noncontrolling interests subject to put provisions | 758,743 | 697,300 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | 4,975,042 | 4,432,479 | ' | ' |
Noncontrolling interests not subject to put provisions | 176,433 | 173,062 | ' | ' |
Total equity | 5,151,475 | 4,605,541 | ' | ' |
Total liabilities and equity | 18,101,416 | 17,098,877 | ' | ' |
DaVita HealthCare Partners Inc. | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 1,187,719 | 602,188 | 629,360 | 195,037 |
Other current assets | 157,897 | 27,910 | ' | ' |
Total current assets | 1,345,616 | 630,098 | ' | ' |
Property and equipment, net | 191,897 | 177,633 | ' | ' |
Amortizable intangibles, net | 88,537 | 77,531 | ' | ' |
Investments in subsidiaries | 8,714,911 | 8,231,059 | ' | ' |
Intercompany receivables | 3,452,572 | 3,983,214 | ' | ' |
Other long-term assets and investments | 59,555 | 61,391 | ' | ' |
Total assets | 13,853,088 | 13,160,926 | ' | ' |
Current liabilities | 269,843 | 328,875 | ' | ' |
Long-term debt and other long-term liabilities | 8,116,659 | 7,948,390 | ' | ' |
Noncontrolling interests subject to put provisions | 491,544 | 451,182 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | 4,975,042 | 4,432,479 | ' | ' |
Total equity | 4,975,042 | 4,432,479 | ' | ' |
Total liabilities and equity | 13,853,088 | 13,160,926 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 127,331 | 175,004 | 170,352 | 166,107 |
Accounts receivable, net | 886,574 | 939,543 | ' | ' |
Other current assets | 929,139 | 908,010 | ' | ' |
Total current assets | 1,943,044 | 2,022,557 | ' | ' |
Property and equipment, net | 1,425,392 | 1,377,924 | ' | ' |
Amortizable intangibles, net | 1,850,725 | 1,882,685 | ' | ' |
Investments in subsidiaries | 1,544,864 | 1,389,558 | ' | ' |
Other long-term assets and investments | 84,940 | 67,402 | ' | ' |
Goodwill | 7,955,215 | 7,837,421 | ' | ' |
Total assets | 14,804,180 | 14,577,547 | ' | ' |
Current liabilities | 1,936,798 | 1,774,634 | ' | ' |
Intercompany payables | 2,912,917 | 3,421,198 | ' | ' |
Long-term debt and other long-term liabilities | 1,239,554 | 1,150,656 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | 8,714,911 | 8,231,059 | ' | ' |
Total equity | 8,714,911 | 8,231,059 | ' | ' |
Total liabilities and equity | 14,804,180 | 14,577,547 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 211,985 | 169,057 | 170,982 | 172,604 |
Accounts receivable, net | 581,989 | 545,620 | ' | ' |
Other current assets | 95,801 | 104,946 | ' | ' |
Total current assets | 889,775 | 819,623 | ' | ' |
Property and equipment, net | 741,914 | 633,854 | ' | ' |
Amortizable intangibles, net | 58,510 | 64,157 | ' | ' |
Intercompany receivables | 530,994 | 480,993 | ' | ' |
Other long-term assets and investments | 76,870 | 71,048 | ' | ' |
Goodwill | 1,389,426 | 1,375,553 | ' | ' |
Total assets | 3,687,489 | 3,445,228 | ' | ' |
Current liabilities | 390,990 | 358,540 | ' | ' |
Intercompany payables | 1,070,649 | 1,043,009 | ' | ' |
Long-term debt and other long-term liabilities | 237,354 | 234,941 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | 1,544,864 | 1,389,558 | ' | ' |
Noncontrolling interests not subject to put provisions | 443,632 | 419,180 | ' | ' |
Total equity | 1,988,496 | 1,808,738 | ' | ' |
Total liabilities and equity | 3,687,489 | 3,445,228 | ' | ' |
Consolidating Adjustments | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Investments in subsidiaries | -10,259,775 | -9,620,617 | ' | ' |
Intercompany receivables | -3,983,566 | -4,464,207 | ' | ' |
Total assets | -14,243,341 | -14,084,824 | ' | ' |
Intercompany payables | -3,983,566 | -4,464,207 | ' | ' |
Noncontrolling interests subject to put provisions | 267,199 | 246,118 | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | -10,259,775 | -9,620,617 | ' | ' |
Noncontrolling interests not subject to put provisions | -267,199 | -246,118 | ' | ' |
Total equity | -10,526,974 | -9,866,735 | ' | ' |
Total liabilities and equity | ($14,243,341) | ($14,084,824) | ' | ' |
Condensed_Consolidating_Statem2
Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $612,942 | $512,928 |
Changes in operating assets and liabilities and non-cash items included in net income | 916,456 | 906,226 |
Net cash provided by operating activities | 1,529,398 | 1,419,154 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -443,507 | -399,527 |
Acquisitions | -218,117 | -234,802 |
Proceeds from asset and business sales | 3,620 | 62,282 |
Purchases of investments and other items | -173,181 | -5,039 |
Net cash provided by (used in) investing activities | -831,185 | -577,086 |
Cash flows from financing activities: | ' | ' |
Long-term debt and related financing costs, net | 31,298 | -384,301 |
Other items | -150,307 | -19,922 |
Net cash provided by (used in) financing activities | -119,009 | -404,223 |
Effect of exchange rate changes on cash | 1,582 | -899 |
Net increase (decrease) in cash and cash equivalents | 580,786 | 436,946 |
Cash and cash equivalents at beginning of period | 946,249 | 533,748 |
Cash and cash equivalents at end of period | 1,527,035 | 970,694 |
DaVita HealthCare Partners Inc. | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 515,094 | 421,168 |
Changes in operating assets and liabilities and non-cash items included in net income | -479,441 | -370,991 |
Net cash provided by operating activities | 35,653 | 50,177 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -37,752 | -32,305 |
Proceeds from asset and business sales | ' | 60,650 |
Purchases of investments and other items | -137,313 | -2,574 |
Net cash provided by (used in) investing activities | -175,065 | 25,771 |
Cash flows from financing activities: | ' | ' |
Long-term debt and related financing costs, net | 40,250 | -370,774 |
Intercompany borrowing | 759,648 | 684,985 |
Other items | -74,955 | 44,164 |
Net cash provided by (used in) financing activities | 724,943 | 358,375 |
Net increase (decrease) in cash and cash equivalents | 585,531 | 434,323 |
Cash and cash equivalents at beginning of period | 602,188 | 195,037 |
Cash and cash equivalents at end of period | 1,187,719 | 629,360 |
Guarantor Subsidiaries | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 486,724 | 324,268 |
Changes in operating assets and liabilities and non-cash items included in net income | 578,851 | 720,662 |
Net cash provided by operating activities | 1,065,575 | 1,044,930 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -215,072 | -196,918 |
Acquisitions | -204,670 | -185,945 |
Proceeds from asset and business sales | 3,620 | 1,632 |
Purchases of investments and other items | -33,111 | -2,565 |
Net cash provided by (used in) investing activities | -449,233 | -383,796 |
Cash flows from financing activities: | ' | ' |
Long-term debt and related financing costs, net | -9,247 | -9,211 |
Intercompany borrowing | -646,476 | -653,287 |
Other items | -8,292 | 5,609 |
Net cash provided by (used in) financing activities | -664,015 | -656,889 |
Net increase (decrease) in cash and cash equivalents | -47,673 | 4,245 |
Cash and cash equivalents at beginning of period | 175,004 | 166,107 |
Cash and cash equivalents at end of period | 127,331 | 170,352 |
Non-Guarantor Subsidiaries | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 353,538 | 321,269 |
Changes in operating assets and liabilities and non-cash items included in net income | 74,632 | 2,778 |
Net cash provided by operating activities | 428,170 | 324,047 |
Cash flows from investing activities: | ' | ' |
Additions of property and equipment, net | -190,683 | -170,304 |
Acquisitions | -13,447 | -48,857 |
Purchases of investments and other items | -2,757 | 100 |
Net cash provided by (used in) investing activities | -206,887 | -219,061 |
Cash flows from financing activities: | ' | ' |
Long-term debt and related financing costs, net | 295 | -4,316 |
Intercompany borrowing | -113,172 | -31,698 |
Other items | -67,060 | -69,695 |
Net cash provided by (used in) financing activities | -179,937 | -105,709 |
Effect of exchange rate changes on cash | 1,582 | -899 |
Net increase (decrease) in cash and cash equivalents | 42,928 | -1,622 |
Cash and cash equivalents at beginning of period | 169,057 | 172,604 |
Cash and cash equivalents at end of period | 211,985 | 170,982 |
Consolidating Adjustments | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | -742,414 | -553,777 |
Changes in operating assets and liabilities and non-cash items included in net income | $742,414 | $553,777 |
Supplemental_Data_Condensed_Co
Supplemental Data - Condensed Consolidating Statements of Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Patient service operating revenues | $2,242,533 | $2,126,699 | $6,543,880 | $6,155,223 | ||
Less: Provision for uncollectible accounts | -98,971 | -74,477 | -270,220 | -216,725 | ||
Net patient service operating revenues | 2,143,562 | 2,052,222 | 6,273,660 | 5,938,498 | ||
Capitated revenues | 848,546 | 747,264 | 2,435,480 | 2,219,953 | ||
Other revenues | 259,716 | 200,100 | 757,949 | 542,390 | ||
Total net operating revenues | 3,251,824 | 2,999,586 | 9,467,089 | 8,700,841 | ||
Operating expenses | 2,814,288 | 2,622,512 | 8,104,033 | 7,634,886 | ||
Operating income | 437,536 | 377,074 | 1,363,056 | 1,065,955 | ||
Debt expense, including refinancing charges | -99,878 | -108,421 | -409,893 | -322,334 | ||
Other income (loss), net | -1,246 | 2,113 | 2,145 | 1,337 | ||
Income tax expense (benefit) | 116,628 | 100,930 | 342,366 | 245,266 | ||
Net income | 219,784 | 169,836 | 612,942 | 512,928 | ||
Minority interests | -35,662 | -33,208 | -97,848 | -91,760 | ||
Net income | 184,122 | 136,628 | 515,094 | 421,168 | ||
Physician Groups | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Patient service operating revenues | 31,231 | ' | 91,731 | ' | ||
Less: Provision for uncollectible accounts | -5,053 | ' | -7,642 | ' | ||
Net patient service operating revenues | 26,178 | ' | 84,089 | ' | ||
Capitated revenues | 387,405 | ' | 1,122,085 | ' | ||
Other revenues | 856 | ' | 3,735 | ' | ||
Total net operating revenues | 414,439 | ' | 1,209,909 | ' | ||
Operating expenses | 409,550 | ' | 1,185,349 | ' | ||
Operating income | 4,889 | ' | 24,560 | ' | ||
Debt expense, including refinancing charges | -2,364 | ' | -8,982 | ' | ||
Other income (loss), net | 42 | ' | 75 | ' | ||
Income tax expense (benefit) | 721 | ' | 4,878 | ' | ||
Net income | 1,846 | ' | 10,775 | ' | ||
Net income | 1,846 | ' | 10,775 | ' | ||
Unrestricted Subsidiaries | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Operating expenses | 27 | ' | 263 | ' | ||
Operating income | -27 | ' | -263 | ' | ||
Income tax expense (benefit) | -11 | ' | -105 | ' | ||
Net income | -16 | ' | -158 | ' | ||
Net income | -16 | ' | -158 | ' | ||
Company and Restricted Subsidiaries | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Patient service operating revenues | 2,211,302 | [1] | ' | 6,452,149 | [1] | ' |
Less: Provision for uncollectible accounts | -93,918 | [1] | ' | -262,578 | [1] | ' |
Net patient service operating revenues | 2,117,384 | [1] | ' | 6,189,571 | [1] | ' |
Capitated revenues | 461,141 | [1] | ' | 1,313,395 | [1] | ' |
Other revenues | 258,860 | [1] | ' | 754,214 | [1] | ' |
Total net operating revenues | 2,837,385 | [1] | ' | 8,257,180 | [1] | ' |
Operating expenses | 2,404,711 | [1] | ' | 6,918,421 | [1] | ' |
Operating income | 432,674 | [1] | ' | 1,338,759 | [1] | ' |
Debt expense, including refinancing charges | -97,514 | [1] | ' | -400,911 | [1] | ' |
Other income (loss), net | -1,288 | [1] | ' | 2,070 | [1] | ' |
Income tax expense (benefit) | 115,918 | [1] | ' | 337,593 | [1] | ' |
Net income | 217,954 | [1] | ' | 602,325 | [1] | ' |
Minority interests | -35,662 | [1] | ' | -97,848 | [1] | ' |
Net income | $182,292 | [1] | ' | $504,477 | [1] | ' |
[1] | After the elimination of the unrestricted subsidiaries and the physician groups |
Supplemental_Data_Condensed_Co1
Supplemental Data - Condensed Consolidating Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Net income | $219,784 | $169,836 | $612,942 | $512,928 | ||
Other comprehensive loss | -12,290 | -880 | -8,979 | 11,083 | ||
Total comprehensive income | 207,494 | 168,956 | 603,963 | 524,011 | ||
Less: Comprehensive income attributable to noncontrolling interests | -35,662 | -33,208 | -97,848 | -91,760 | ||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 171,832 | 135,748 | 506,115 | 432,251 | ||
Physician Groups | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Net income | 1,846 | ' | 10,775 | ' | ||
Total comprehensive income | 1,846 | ' | 10,775 | ' | ||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 1,846 | ' | 10,775 | ' | ||
Unrestricted Subsidiaries | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Net income | -16 | ' | -158 | ' | ||
Total comprehensive income | -16 | ' | -158 | ' | ||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | -16 | ' | -158 | ' | ||
Company and Restricted Subsidiaries | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Net income | 217,954 | [1] | ' | 602,325 | [1] | ' |
Other comprehensive loss | -12,290 | [1] | ' | -8,979 | [1] | ' |
Total comprehensive income | 205,664 | [1] | ' | 593,346 | [1] | ' |
Less: Comprehensive income attributable to noncontrolling interests | -35,662 | [1] | ' | -97,848 | [1] | ' |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $170,002 | [1] | ' | $495,498 | [1] | ' |
[1] | After the elimination of the unrestricted subsidiaries and the physician groups |
Supplemental_Data_Condensed_Co2
Supplemental Data - Condensed Consolidating Balance Sheets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | $1,527,035 | $946,249 | $970,694 | $533,748 | ||
Accounts receivable, net | 1,468,563 | 1,485,163 | ' | ' | ||
Other current assets | 1,182,837 | 1,040,866 | ' | ' | ||
Total current assets | 4,178,435 | 3,472,278 | ' | ' | ||
Property and equipment, net | 2,359,203 | 2,189,411 | ' | ' | ||
Amortizable intangibles, net | 1,997,772 | 2,024,373 | ' | ' | ||
Other long-term assets | 221,365 | 199,841 | ' | ' | ||
Goodwill | 9,344,641 | 9,212,974 | ' | 8,952,750 | ||
Total assets | 18,101,416 | 17,098,877 | ' | ' | ||
Current liabilities | 2,597,631 | 2,462,049 | ' | ' | ||
Long-term debt and other long-term liabilities | 9,593,567 | 9,333,987 | ' | ' | ||
Noncontrolling interests subject to put provisions | 758,743 | 697,300 | ' | ' | ||
Total DaVita HealthCare Partners Inc. shareholders' equity | 4,975,042 | 4,432,479 | ' | ' | ||
Noncontrolling interests not subject to put provisions | 176,433 | 173,062 | ' | ' | ||
Shareholders' equity | 5,151,475 | 4,605,541 | ' | ' | ||
Total liabilities and shareholder's equity | 18,101,416 | 17,098,877 | ' | ' | ||
Physician Groups | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 112,135 | 127,309 | ' | ' | ||
Accounts receivable, net | 235,882 | 235,463 | ' | ' | ||
Other current assets | 20,349 | 35,640 | ' | ' | ||
Total current assets | 368,366 | 398,412 | ' | ' | ||
Property and equipment, net | 4,872 | 5,541 | ' | ' | ||
Amortizable intangibles, net | 6,490 | 7,283 | ' | ' | ||
Other long-term assets | 65,138 | 64,013 | ' | ' | ||
Goodwill | 9,181 | 8,981 | ' | ' | ||
Total assets | 454,047 | 484,230 | ' | ' | ||
Current liabilities | 193,082 | 193,079 | ' | ' | ||
Payables to parent | 166,269 | 194,958 | ' | ' | ||
Long-term debt and other long-term liabilities | 82,458 | 94,727 | ' | ' | ||
Total DaVita HealthCare Partners Inc. shareholders' equity | 12,238 | 1,466 | ' | ' | ||
Shareholders' equity | 12,238 | 1,466 | ' | ' | ||
Total liabilities and shareholder's equity | 454,047 | 484,230 | ' | ' | ||
Unrestricted Subsidiaries | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Other long-term assets | 3,061 | 3,325 | ' | ' | ||
Total assets | 3,061 | 3,325 | ' | ' | ||
Payables to parent | 3,061 | 3,325 | ' | ' | ||
Total liabilities and shareholder's equity | 3,061 | 3,325 | ' | ' | ||
Company and Restricted Subsidiaries | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Cash and cash equivalents | 1,414,900 | [1] | 818,940 | [1] | ' | ' |
Accounts receivable, net | 1,232,681 | [1] | 1,249,700 | [1] | ' | ' |
Other current assets | 1,162,488 | [1] | 1,005,226 | [1] | ' | ' |
Total current assets | 3,810,069 | [1] | 3,073,866 | [1] | ' | ' |
Property and equipment, net | 2,354,331 | [1] | 2,183,870 | [1] | ' | ' |
Amortizable intangibles, net | 1,991,282 | [1] | 2,017,090 | [1] | ' | ' |
Other long-term assets | 153,166 | [1] | 132,503 | [1] | ' | ' |
Goodwill | 9,335,460 | [1] | 9,203,993 | [1] | ' | ' |
Total assets | 17,644,308 | [1] | 16,611,322 | [1] | ' | ' |
Current liabilities | 2,404,549 | [1] | 2,268,970 | [1] | ' | ' |
Payables to parent | -169,330 | [1] | -198,283 | [1] | ' | ' |
Long-term debt and other long-term liabilities | 9,511,109 | [1] | 9,239,260 | [1] | ' | ' |
Noncontrolling interests subject to put provisions | 758,743 | [1] | 697,300 | [1] | ' | ' |
Total DaVita HealthCare Partners Inc. shareholders' equity | 4,962,804 | [1] | 4,431,013 | [1] | ' | ' |
Noncontrolling interests not subject to put provisions | 176,433 | [1] | 173,062 | [1] | ' | ' |
Shareholders' equity | 5,139,237 | [1] | 4,604,075 | [1] | ' | ' |
Total liabilities and shareholder's equity | $17,644,308 | [1] | $16,611,322 | [1] | ' | ' |
[1] | After the elimination of the unrestricted subsidiaries and the physician groups |
Supplemental_Data_Condensed_Co3
Supplemental Data - Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net income | $612,942 | $512,928 | |
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | 916,456 | 906,226 | |
Net cash provided by operating activities | 1,529,398 | 1,419,154 | |
Cash flows from investing activities: | ' | ' | |
Additions of property and equipment | -443,507 | -399,527 | |
Acquisitions and divestitures, net | -218,117 | ' | |
Proceeds from discontinued operations | 3,620 | ' | |
Investments and other items | -173,181 | -5,039 | |
Net cash provided by (used in) investing activities | -831,185 | -577,086 | |
Cash flows from financing activities: | ' | ' | |
Long-term debt | 31,298 | -384,301 | |
Other items | -150,307 | -19,922 | |
Net cash used in by financing activities | -119,009 | -404,223 | |
Effect of exchange rate changes on cash | 1,582 | -899 | |
Net increase (decrease) in cash | 580,786 | 436,946 | |
Cash and cash equivalents at beginning of period | 946,249 | 533,748 | |
Cash and cash equivalents at end of period | 1,527,035 | 970,694 | |
Physician Groups | ' | ' | |
Cash flows from operating activities: | ' | ' | |
Net income | 10,775 | ' | |
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | 5,752 | ' | |
Net cash provided by operating activities | 16,527 | ' | |
Cash flows from investing activities: | ' | ' | |
Additions of property and equipment | -145 | ' | |
Investments and other items | -2,757 | ' | |
Net cash provided by (used in) investing activities | -2,902 | ' | |
Cash flows from financing activities: | ' | ' | |
Intercompany | -28,799 | ' | |
Net cash used in by financing activities | -28,799 | ' | |
Net increase (decrease) in cash | -15,174 | ' | |
Cash and cash equivalents at beginning of period | 127,309 | ' | |
Cash and cash equivalents at end of period | 112,135 | ' | |
Unrestricted Subsidiaries | ' | ' | |
Cash flows from operating activities: | ' | ' | |
Net income | -158 | ' | |
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | 158 | ' | |
Company and Restricted Subsidiaries | ' | ' | |
Cash flows from operating activities: | ' | ' | |
Net income | 602,325 | [1] | ' |
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | 910,546 | [1] | ' |
Net cash provided by operating activities | 1,512,871 | [1] | ' |
Cash flows from investing activities: | ' | ' | |
Additions of property and equipment | -443,362 | [1] | ' |
Acquisitions and divestitures, net | -218,117 | [1] | ' |
Proceeds from discontinued operations | 3,620 | [1] | ' |
Investments and other items | -170,424 | [1] | ' |
Net cash provided by (used in) investing activities | -828,283 | [1] | ' |
Cash flows from financing activities: | ' | ' | |
Long-term debt | 31,298 | [1] | ' |
Intercompany | 28,799 | [1] | ' |
Other items | -150,307 | [1] | ' |
Net cash used in by financing activities | -90,210 | [1] | ' |
Effect of exchange rate changes on cash | 1,582 | [1] | ' |
Net increase (decrease) in cash | 595,960 | [1] | ' |
Cash and cash equivalents at beginning of period | 818,940 | [1] | ' |
Cash and cash equivalents at end of period | $1,414,900 | [1] | ' |
[1] | After the elimination of the unrestricted subsidiaries and the physician groups |