Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | DVA | |
Entity Registrant Name | DAVITA HEALTHCARE PARTNERS INC. | |
Entity Central Index Key | 927,066 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 215,500,000 | |
Entity Public Float | $ 17 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Patient service revenues | $ 2,363,579 | $ 2,187,249 | $ 4,635,394 | $ 4,301,347 |
Less: Provision for uncollectible accounts | (105,965) | (88,052) | (205,129) | (171,249) |
Net patient service revenues | 2,257,614 | 2,099,197 | 4,430,265 | 4,130,098 |
Capitated revenues | 866,190 | 799,369 | 1,716,705 | 1,586,934 |
Other revenues | 310,814 | 273,923 | 575,613 | 498,233 |
Total net revenues | 3,434,618 | 3,172,489 | 6,722,583 | 6,215,265 |
Operating expenses and charges: | ||||
Patient care costs and other costs | 2,446,076 | 2,246,538 | 4,808,688 | 4,426,310 |
General and administrative | 352,025 | 298,636 | 693,826 | 582,697 |
Depreciation and amortization | 158,843 | 145,907 | 312,632 | 288,486 |
Provision for uncollectible accounts | 2,159 | 3,208 | 3,986 | 5,719 |
Equity investment income | (5,033) | (6,095) | (7,941) | (13,467) |
Settlement charge | 495,000 | |||
Total operating expenses and charges | 2,954,070 | 2,688,194 | 6,306,191 | 5,289,745 |
Operating income | 480,548 | 484,295 | 416,392 | 925,520 |
Debt expense | (104,248) | (106,132) | (201,640) | (212,467) |
Debt redemption and refinancing charges | (48,072) | (97,548) | (48,072) | (97,548) |
Other income, net | 2,311 | 1,693 | 1,778 | 3,391 |
Income before income taxes | 330,539 | 282,308 | 168,458 | 618,896 |
Income tax expense | 122,762 | 100,887 | 36,829 | 225,738 |
Net income | 207,777 | 181,421 | 131,629 | 393,158 |
Less: Net income attributable to noncontrolling interests | (37,300) | (33,738) | (71,769) | (62,186) |
Net income attributable to DaVita HealthCare Partners Inc. | $ 170,477 | $ 147,683 | $ 59,860 | $ 330,972 |
Earnings per share: | ||||
Basic net income per share attributable to DaVita HealthCare Partners Inc. | $ 0.80 | $ 0.70 | $ 0.28 | $ 1.56 |
Diluted net income per share attributable to DaVita HealthCare Partners Inc. | $ 0.78 | $ 0.68 | $ 0.27 | $ 1.53 |
Weighted average shares for earnings per share: | ||||
Basic | 212,991,606 | 212,258,994 | 213,188,268 | 211,817,893 |
Diluted | 217,606,198 | 216,720,944 | 217,790,617 | 216,420,713 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 207,777 | $ 181,421 | $ 131,629 | $ 393,158 |
Unrealized losses on interest rate swap and cap agreements: | ||||
Unrealized loss on interest rate swap and cap agreements | (2,453) | (5,209) | (8,213) | (7,714) |
Reclassifications of net swap and cap agreements realized loss into net income | 789 | 4,997 | 1,601 | 8,356 |
Unrealized (losses) gains on investments: | ||||
Unrealized (losses) gains on investments | (99) | 578 | 283 | 909 |
Reclassification of net investment realized gains into net income | (16) | (173) | (207) | |
Foreign currency translation adjustments | 5,025 | 1,939 | (12,860) | 1,967 |
Other comprehensive income (loss) | 3,246 | 2,305 | (19,362) | 3,311 |
Total comprehensive income | 211,023 | 183,726 | 112,267 | 396,469 |
Less: Comprehensive income attributable to noncontrolling interests | (37,300) | (33,738) | (71,769) | (62,186) |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ 173,723 | $ 149,988 | $ 40,498 | $ 334,283 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 933,735 | $ 965,241 |
Short-term investments | 942,141 | 337,399 |
Accounts receivable, less allowance of $265,797 and $242,674 | 1,666,969 | 1,525,849 |
Inventories | 159,353 | 136,085 |
Other receivables | 456,502 | 400,916 |
Other current assets | 189,528 | 186,842 |
Income tax receivable | 193,681 | 83,839 |
Deferred income taxes | 239,012 | 240,626 |
Total current assets | 4,780,921 | 3,876,797 |
Property and equipment, net of accumulated depreciation of $2,207,320 and $2,029,506 | 2,564,708 | 2,469,099 |
Intangibles, net of accumulated amortization of $706,413 and $621,891 | 1,868,432 | 1,949,498 |
Equity investments | 67,173 | 65,637 |
Long-term investments | 92,864 | 89,389 |
Other long-term assets | 121,774 | 77,000 |
Goodwill | 9,450,946 | 9,415,295 |
Total assets | 18,946,818 | 17,942,715 |
LIABILITIES AND EQUITY | ||
Accounts payable | 490,460 | 445,453 |
Other liabilities | 716,250 | 510,223 |
Accrued compensation and benefits | 678,853 | 698,475 |
Medical payables | 339,932 | 314,347 |
Current portion of long-term debt | 108,795 | 120,154 |
Total current liabilities | 2,334,290 | 2,088,652 |
Long-term debt | 9,101,052 | 8,383,280 |
Other long-term liabilities | 400,475 | 389,806 |
Deferred income taxes | 900,959 | 890,701 |
Total liabilities | 12,736,776 | 11,752,439 |
Commitments and contingencies: | ||
Noncontrolling interests subject to put provisions | $ 863,126 | $ 829,965 |
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; 215,640,968 and 215,640,968 shares issued and 215,466,069 and 215,640,968 shares outstanding, respectively) | $ 217 | $ 216 |
Additional paid-in capital | 1,128,161 | 1,108,211 |
Retained earnings | 4,146,963 | 4,087,103 |
Treasury stock (1,067,139 shares) | (84,113) | |
Accumulated other comprehensive loss | (44,379) | (25,017) |
Total DaVita HealthCare Partners Inc. shareholders’ equity | 5,146,849 | 5,170,513 |
Noncontrolling interests not subject to put provisions | 200,067 | 189,798 |
Total equity | 5,346,916 | 5,360,311 |
Total liabilities and equity | $ 18,946,818 | $ 17,942,715 |
CONSOLIDATED BALANCE SHEETS (u5
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 265,797 | $ 242,674 |
Property and equipment, accumulated depreciation | 2,207,320 | 2,029,506 |
Intangibles, accumulated amortization | $ 706,413 | $ 621,891 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 216,533,208 | 215,640,968 |
Common stock, shares outstanding | 215,466,069 | 215,640,968 |
Treasury stock, shares | 1,067,139 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 131,629 | $ 393,158 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Settlement charge | 495,000 | |
Settlement payments | (493,775) | |
Depreciation and amortization | 312,632 | 288,470 |
Debt redemption and refinancing charges | 48,072 | 97,548 |
Stock-based compensation expense | 28,299 | 29,699 |
Tax benefits from stock award exercises | 28,040 | 42,110 |
Excess tax benefits from stock award exercises | (16,913) | (30,238) |
Deferred income taxes | 4,418 | 13,826 |
Equity investment income, net | 5,257 | 2,257 |
Other non-cash charges and loss on disposal of assets | 24,718 | 22,861 |
Changes in operating assets and liabilities, other than from acquisitions and divestitures: | ||
Accounts receivable | (142,950) | (65,079) |
Inventories | (22,780) | (10,731) |
Other receivables and other current assets | (50,362) | (95,580) |
Other long-term assets | 378 | 2,158 |
Accounts payable | 50,823 | (46,022) |
Accrued compensation and benefits | (26,316) | 19,912 |
Other current liabilities | 177,733 | 31,970 |
Income taxes | (109,460) | 2,886 |
Other long-term liabilities | (2,912) | (17,707) |
Net cash provided by operating activities | 441,531 | 681,498 |
Cash flows from investing activities: | ||
Additions of property and equipment | (290,873) | (278,593) |
Acquisitions | (45,059) | (98,442) |
Proceeds from asset and business sales | 3,415 | 215 |
Purchase of investments available for sale | (3,872) | (6,117) |
Purchase of investments held-to-maturity | (1,039,632) | (121,333) |
Proceeds from sale of investments available for sale | 1,550 | 1,277 |
Proceeds from investments held-to-maturity | 434,684 | 64,561 |
Purchase of intangible assets | (10) | |
Purchase of equity investments | (7,550) | (4,750) |
Distributions received on equity investments | 337 | |
Net cash used in investing activities | (947,337) | (442,855) |
Cash flows from financing activities: | ||
Borrowings | 28,144,986 | 33,136,743 |
Payments on long-term debt and other financing costs | (27,476,994) | (32,788,307) |
Deferred financing costs and debt redemption and refinancing costs | (58,539) | (106,937) |
Purchase of treasury stock | (84,113) | |
Distributions to noncontrolling interests | (79,040) | (65,818) |
Stock award exercises and other share issuances, net | 4,680 | 7,274 |
Excess tax benefits from stock award exercises | 16,913 | 30,238 |
Contributions from noncontrolling interests | 18,040 | 28,265 |
Proceeds from sales of additional noncontrolling interests | 933 | |
Purchase of noncontrolling interests | (10,840) | (5,743) |
Net cash provided by financing activities | 475,093 | 236,648 |
Effect of exchange rate changes on cash and cash equivalents | (793) | (567) |
Net (decrease) increase in cash and cash equivalents | (31,506) | 474,724 |
Cash and cash equivalents at beginning of the year | 965,241 | 946,249 |
Cash and cash equivalents at end of the period | $ 933,735 | $ 1,420,973 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (unaudited) - USD ($) $ in Thousands | Total | Non- controlling Interests subject to put provisions | Common stock | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated other comprehensive(loss) | Total | Non-controlling interests not subject to put provisions |
Beginning Balance at Dec. 31, 2013 | $ 697,300 | $ 213 | $ 1,070,922 | $ 3,363,989 | $ (2,645) | $ 4,432,479 | $ 173,062 | ||
Beginning Balance (in shares) at Dec. 31, 2013 | 213,163,000 | ||||||||
Comprehensive income: | |||||||||
Net income | 88,425 | 723,114 | 723,114 | 51,791 | |||||
Other comprehensive loss | (22,372) | (22,372) | |||||||
Stock purchase shares issued | 19,010 | 19,010 | |||||||
Stock purchase shares issued (in shares) | 298,000 | ||||||||
Stock unit shares issued | $ 1 | (28) | (27) | ||||||
Stock unit shares issued (in shares) | 304,000 | ||||||||
Stock-settled SAR shares issued | $ 2 | (2) | |||||||
Stock-settled SAR shares issued (in shares) | 1,876,000 | ||||||||
Stock-settled stock-based compensation expense | 54,969 | 54,969 | |||||||
Excess tax benefits from stock awards exercised | 45,271 | 45,271 | |||||||
Distributions to noncontrolling interests | (93,884) | (55,455) | |||||||
Contributions from noncontrolling interests | 41,876 | 22,779 | |||||||
Sales and assumptions of additional noncontrolling interests | 25,220 | 355 | 355 | 4,165 | |||||
Purchases from noncontrolling interests | (6,111) | (5,357) | (5,357) | (6,544) | |||||
Other reclassification | 210 | 210 | |||||||
Changes in fair value of noncontrolling interests | 77,139 | (77,139) | (77,139) | ||||||
Ending Balance at Dec. 31, 2014 | $ 5,360,311 | 829,965 | $ 216 | 1,108,211 | 4,087,103 | (25,017) | 5,170,513 | 189,798 | |
Ending Balance (in shares) at Dec. 31, 2014 | 215,640,968 | 215,641,000 | |||||||
Comprehensive income: | |||||||||
Net income | 46,363 | 59,860 | 59,860 | 25,406 | |||||
Other comprehensive loss | $ (19,362) | (19,362) | (19,362) | ||||||
Stock unit shares issued | 5 | 5 | |||||||
Stock unit shares issued (in shares) | 337,000 | ||||||||
Stock-settled SAR shares issued | $ 1 | (1) | |||||||
Stock-settled SAR shares issued (in shares) | 555,000 | ||||||||
Stock-settled stock-based compensation expense | 28,466 | 28,466 | |||||||
Excess tax benefits from stock awards exercised | 16,913 | 16,913 | |||||||
Distributions to noncontrolling interests | (47,761) | (31,279) | |||||||
Contributions from noncontrolling interests | 7,935 | 10,105 | |||||||
Sales and assumptions of additional noncontrolling interests | 12,031 | 6,037 | |||||||
Purchases from noncontrolling interests | (2,419) | (8,421) | (8,421) | ||||||
Changes in fair value of noncontrolling interests | 17,012 | (17,012) | (17,012) | ||||||
Ending Balance at Jun. 30, 2015 | $ 5,346,916 | $ 863,126 | $ 217 | $ 1,128,161 | $ 4,146,963 | $ (84,113) | $ (44,379) | 5,146,849 | $ 200,067 |
Ending Balance (in shares) at Jun. 30, 2015 | 215,466,069 | 216,533,000 | (1,067,000) | ||||||
Comprehensive income: | |||||||||
Purchase of treasury stock | $ (84,113) | $ (84,113) | $ (84,113) | ||||||
Purchase of treasury stock (in shares) | (1,067,000) | (1,067,000) |
Condensed consolidated interim
Condensed consolidated interim financial statements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
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 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 six months ended June 30, 2015 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, 2014. 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 | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
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, net of shares held in escrow that under certain circumstances may be returned to the Company. 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) as well as contingently returnable shares held in escrow. The reconciliations of the numerators and denominators used to calculate basic and diluted earnings per share are as follows: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Basic: Net income attributable to DaVita HealthCare Partners Inc. $ 170,477 $ 147,683 $ 59,860 $ 330,972 Weighted average shares outstanding during the period 215,186 214,451 215,382 214,010 Vested stock units — 2 — 2 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 212,992 212,259 213,188 211,818 Basic net income per share attributable to DaVita HealthCare Partners Inc. $ 0.80 $ 0.70 $ 0.28 $ 1.56 Diluted: Net income attributable to DaVita HealthCare Partners Inc. $ 170,477 $ 147,683 $ 59,860 $ 330,972 Weighted average shares outstanding during the period 215,186 214,451 215,382 214,010 Vested stock units — 2 — 2 Assumed incremental shares from stock plans 2,420 2,268 2,409 2,409 Weighted average shares for diluted earnings per share calculation 217,606 216,721 217,791 216,421 Diluted net income per share attributable to DaVita HealthCare Partners Inc. $ 0.78 $ 0.68 $ 0.27 $ 1.53 Anti-dilutive potential common shares excluded from calculation (1) 691 990 1,046 1,995 ______________ (1) |
Accounts receivable
Accounts receivable | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
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 reserve 100% of the outstanding accounts receivable balances for dialysis services when those amounts due are outstanding for more than three months. During the six months ended June 30, 2015, the Company’s allowance for doubtful accounts increased by $23,123. This was primarily due to an increase in U.S. dialysis and lab provision for uncollectible accounts as a result of an increase in write-offs of certain balances. 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 | 6 Months Ended |
Jun. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
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: June 30, 2015 December 31, 2014 Held to Available Held to Available maturity for sale Total maturity for sale Total Certificates of deposit and money market funds due within one year $ 940,589 $ — $ 940,589 $ 335,975 $ — $ 335,975 Investments in mutual funds and common stock — 31,238 31,238 — 28,123 28,123 $ 940,589 $ 31,238 $ 971,827 $ 335,975 $ 28,123 $ 364,098 Short-term investments $ 940,589 $ 1,552 $ 942,141 $ 335,975 $ 1,424 $ 337,399 Long-term investments — 29,686 29,686 — 26,699 26,699 $ 940,589 $ 31,238 $ 971,827 $ 335,975 $ 28,123 $ 364,098 The cost of the certificates of deposit and money market funds at June 30, 2015 and December 31, 2014 approximates their fair value. As of June 30, 2015 and December 31, 2014, the available-for-sale investments included $5,358 and $5,181 of gross pre-tax unrealized gains, respectively. During the six months ended June 30, 2015, the Company recorded gross pre-tax unrealized gains of $461, or $283 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the six months ended June 30, 2015, the Company sold investments in mutual funds for net proceeds of $385 and recognized a pre-tax gain of $284, or $173 after-tax, which was previously recorded in other comprehensive income. During the six months ended June 30, 2014, the Company sold investments in mutual funds for net proceeds of $1,277 and recognized a pre-tax gain of $340, or $207 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 June 30, 2015, 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 June 30, 2015, this minimum cash balance was approximately $54,200. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 5. Goodwill Changes in goodwill by reportable segments were as follows: Other-ancillary U.S. dialysis and services and related lab services HCP strategic initiatives Consolidated total Balance at January 1, 2014 $ 5,469,473 $ 3,516,162 $ 227,339 $ 9,212,974 Acquisitions 143,021 48,649 29,844 221,514 Divestitures (1,851 ) — — (1,851 ) Foreign currency and other adjustments — (2,277 ) (15,065 ) (17,342 ) Balance at December 31, 2014 $ 5,610,643 $ 3,562,534 $ 242,118 $ 9,415,295 Acquisitions — 24,302 26,773 51,075 Divestitures — (446 ) — (446 ) Foreign currency and other adjustments — — (14,978 ) (14,978 ) Balance at June 30, 2015 $ 5,610,643 $ 3,586,390 $ 253,913 $ 9,450,946 Each of the Company’s operating segments described in Note 17 to these condensed consolidated financial statements represents an individual reporting unit for goodwill impairment testing purposes, except that each sovereign jurisdiction within the Company’s international operating 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 eroded, primarily as a result of recent reductions in its Medicare Advantage reimbursement rates, including the Medicare Advantage final benchmark rates for 2016 announced on April 6, 2015. As a result, the Company has determined that three of its HCP reporting units, HCP California, HCP Nevada and HCP New Mexico, remain at risk of goodwill impairment. HCP California, HCP Nevada and HCP New Mexico have goodwill of $2,518,569, $517,618, and $71,684, respectively. The Company obtained preliminary third-party valuations of these three businesses as of June 30, 2015, which indicate that the estimated fair values of HCP California, HCP Nevada and HCP New Mexico exceed their total carrying values by approximately 9.9%, 7.4% and 2.0%, 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 1.8%, 1.9% and 2.0%, 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 4.2%, 3.1% and 3.6%, respectively. During the first six months of 2015, the Company recorded an immaterial |
Health care costs payable
Health care costs payable | 6 Months Ended |
Jun. 30, 2015 | |
Health Care Organizations [Abstract] | |
Health care costs payable | 6. Health care costs payable The following table includes estimates for the cost of professional medical services provided by non-employed physicians and other providers, as well as inpatient and other ancillary costs for all markets other than California. The Company does not include inpatient and other ancillary costs for contracts held by its California licensed health plan and for contracts held by its California medical group entities; only professional medical services are included as state regulation does not allow those medical group entities to assume risk for inpatient services. Health care costs payable are included in medical payables in the condensed consolidated balance sheet. The following table shows the components of changes in the health care costs payable for the six months ended June 30, 2015: Six months ended June 30, 2015 Health care costs payable, beginning of the period $ 214,405 Add: Components of incurred health care costs Current year 783,602 Prior years 838 Total incurred health care costs 784,440 Less: Claims paid Current year 623,940 Prior years 191,765 Total claims paid 815,705 Health care costs payable, end of the period $ 183,140 The Company’s prior year estimates of health care costs payable increased by $838 resulting from certain medical claims being settled in excess of amounts that were originally estimated. When significant increases (decreases) in prior-year health care cost estimates occur that the Company believes significantly impacts its current year operating results, the Company discloses 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 the Company’s year-end estimates. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 7. Income taxes As of June 30, 2015, the Company’s total liability for unrecognized tax benefits relating to tax positions that do not meet the more-likely-than-not threshold is $34,879, all of which would impact the Company’s effective tax rate if recognized. This balance represents an increase of $3,002 from the December 31, 2014 balance of $31,877. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. At June 30, 2015 and December 31, 2014, the Company had approximately $10,337 and $10,123, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefits. |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term debt | 8. Long-term debt Long-term debt was comprised of the following: June 30, December 31, 2015 2014 Senior Secured Credit Facilities: Term Loan A $ 950,000 $ 975,000 Term Loan B 3,465,000 3,482,500 Senior notes 4,500,000 3,775,000 Acquisition obligations and other notes payable 62,641 69,045 Capital lease obligations 247,128 218,097 Total debt principal outstanding 9,224,769 8,519,642 Discount on long-term debt (14,922 ) (16,208 ) 9,209,847 8,503,434 Less current portion (108,795 ) (120,154 ) $ 9,101,052 $ 8,383,280 Scheduled maturities of long-term debt at June 30, 2015 were as follows: 2015 (remainder of the year) 56,484 2016 119,993 2017 149,031 2018 159,637 2019 734,147 2020 57,876 Thereafter 7,947,601 During the first six months of 2015, the Company made mandatory principal payments under its Senior Secured Credit Facilities totaling $25,000 on the Term Loan A and $17,500 on the Term Loan B. In April 2015, the Company issued $1,500,000 5.0% Senior Notes due 2025 (the 5.0% Senior Notes). The 5.0% Senior Notes pay interest on May 1 and November 1 of each year beginning November 1, 2015. The 5.0% Senior Notes are unsecured senior obligations and rank equally in right of payment with the Company’s existing and future unsecured senior indebtedness. The 5.0% Senior Notes are guaranteed by certain of the Company’s domestic subsidiaries. The Company may redeem up to 35% of the 5.0% Senior Notes at any time prior to May 1, 2018 at a certain specified price from the proceeds of one or more equity offerings. In addition, the Company may redeem some or all of the 5.0% Senior Notes at any time prior to May 1, 2020 at make whole redemption prices and on or after such date at certain specified redemption prices. The proceeds from the 5.0% Senior Notes were used to repurchase all of the outstanding principal balances of the $775,000 6 ⅝% Senior Notes due 2020 (the 6 ⅝% Notes) through a combination of a tender offer and a redemption process, to pay fees and expenses, and the remaining proceeds may be used for general corporate purposes, future acquisitions and share repurchases. As a result of these transactions, the Company incurred $ 48,072 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 and several forward 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. The 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. 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 June 30, 2015, the Company maintains several interest rate swap agreements that were entered into in March 2013 with amortizing notional amounts of these swap agreements totaling $807,500. These agreements have the economic effect of modifying the LIBOR variable component of the Company’s interest rate on an equivalent amount of the Company’s Term Loan A to fixed rates ranging from 0.49% to 0.52%, resulting in an overall weighted average effective interest rate of 2.26 1.75 $3,670 As of June 30, 2015, the Company maintained several forward interest rate cap agreements that were entered into in November 2014 with notional amounts totaling $3,500,000. These forward cap agreements will be effective September 30, 2016 and will have the economic effect of capping the LIBOR variable component of the Company’s interest rate at a maximum of 3.50% on an equivalent amount of the Company’s debt. The cap agreements expire on June 30, 2018. As of June 30, 2015, the total fair value of these cap agreements was an asset of approximately $3,973. During the six months ended June 30, 2015, the Company recorded a loss of $8,367 As of June 30, 2015, 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 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 Term Loan B. During the six months ended June 30, 2015, the Company recognized debt expense of $1,220 from these caps. The cap agreements expire on September 30, 2016. As of June 30, 2015, the total fair value of these cap agreements was an asset of approximately $155. During the six months ended June 30, 2015, the Company recorded a loss of $1,439 in other comprehensive income due to a decrease in the unrealized fair value of these cap agreements. The following table summarizes the Company’s derivative instruments as of June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 Derivatives designated as hedging Balance sheet Balance sheet instruments location Fair value location Fair value Interest rate swap agreements Other short-term liabilities $ 1,131 Other short-term liabilities $ 1,457 Interest rate swap agreements Other long-term assets $ 691 Other long-term assets $ 3,281 Interest rate cap agreements Other long-term assets $ 4,128 Other long-term assets $ 13,934 The following table summarizes the effects of the Company’s interest rate swap and cap agreements for the three and six months ended June 30, 2015 and 2014: Amount of Amount of losses recognized in losses reclassified OCI on interest rate swap from accumulated and cap agreements Location of OCI into income Three months ended Six months ended losses reclassified Three months ended Six months ended Derivatives designated June 30, June 30, from accumulated June 30, June 30, as cash flow hedges 2015 2014 2015 2014 OCI into income 2015 2014 2015 2014 Interest rate swap agreements $ (976 ) $ (5,022 ) $ (3,670 ) $ (7,786 ) Debt expense $ (684 ) $ (6,694 ) $ (1,406 ) $ (10,700 ) Interest rate cap agreements (3,049 ) (3,527 ) (9,806 ) (4,874 ) Debt expense (610 ) (1,507 ) (1,220 ) (3,014 ) Tax benefit 1,572 3,340 5,263 4,946 505 3,204 1,025 5,358 Total $ (2,453 ) $ (5,209 ) $ (8,213 ) $ (7,714 ) $ (789 ) $ (4,997 ) $ (1,601 ) $ (8,356 ) As of June 30, 2015, the interest rate on the Company’s 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 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 Term Loan A is economically fixed as a result of interest rate swaps. As a result of embedded LIBOR floors on the 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 3.44 The Company’s overall weighted average effective interest rate during the second quarter of 2015 was 4.42 As of June 30, 2015, the Company had undrawn revolving credit facilities totaling $ 93,000 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
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 qui tam 2011 U.S. Attorney Medicaid Investigation Swoben Private Civil Suit qui tam qui tam 2015 U.S. Attorney Transportation Investigation 2015 U.S. OIG Medicare Advantage Civil Investigation In addition to the subpoena described above, in June 2015, the Company received a subpoena from the OIG. This civil subpoena covers the period from January 1, 2008 through the present and seeks production of a wide range of documents relating to the Company’s and its subsidiaries’ (including HealthCare Partners and its subsidiary JSA HealthCare Corporation) provision of services to Medicare Advantage plans and related patient diagnosis coding and risk adjustment submissions and payments. The Company believes that the request is part of a broader industry investigation into Medicare Advantage patient diagnosis coding and risk adjustment practices and potential overpayments by the government. Some of the information requested relates to what the Company disclosed in the risk factors of the Company’s quarterly report on Form 10-Q for the first quarter of 2015 as a potentially improper historical HCP coding practice related to a particular condition. The practice in question was discontinued following the Company’s November 1, 2012 acquisition of HCP and, as the Company previously disclosed, the Company notified CMS of the coding practice and potential overpayments. In connection with the HCP merger, the Company has certain indemnification rights against the sellers and an escrow was established as security for the indemnification. The Company would pursue an indemnification claim against the sellers secured by the escrow for any and all liabilities incurred. The Company can make no assurances that the indemnification and escrow would cover the full amount of the Company’s potential losses related to this matter. The Company is cooperating with the government and will gather and produce the requested information. 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 if criminal proceedings were 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. Shareholder Derivative Claims DaVita HealthCare Partners Inc. Derivative Litigation qui tam qui tam 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 condensed consolidated financial statements. In June 2015, the Company reached an agreement in principle to resolve the remainder of the claims in this litigation. The settlement must be approved by the court, and the parties are in the process of seeking that approval. The amount of the settlement is not material to the Company’s condensed 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 subjec
Noncontrolling interests subject to put provisions and other commitments | 6 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
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 services 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. |
Long-term incentive compensatio
Long-term incentive compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
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 six months ended June 30, 2015, the Company granted 811 stock-settled stock appreciation rights with an aggregate grant-date fair value of $14,888 and a weighted-average expected life of approximately 4.1 years, and also granted 265 stock units with an aggregate grant-date fair value of $21,432 and a weighted-average expected life of approximately 3.2 years. For the six months ended June 30, 2015 and 2014, the Company recognized $69,692 and $52,960, respectively, in total LTIP expense, of which $28,299 and $29,699, 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 for the six months ended June 30, 2015 and 2014 was $10,028 and $10,997, respectively. As of June 30, 2015, there was $161,079 of total estimated unrecognized compensation cost for outstanding LTIP awards, including $82,577 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 six months ended June 30, 2015 and 2014, the Company received $28,040 and $42,110, respectively, in actual tax benefits upon the exercise of stock awards. |
Share repurchases
Share repurchases | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Share Repurchases | 12. Share repurchases During the six months ended June 30, 2015, the Company repurchased a total of 1,067 shares of its common stock for $84,113, or an average price of $78.82 per share. The Company has not repurchased any additional shares of its common stock subsequent to June 30, 2015. On April 14, 2015, the Company’s Board of Directors approved additional share repurchases in the amount of $725,944. These recently approved share repurchases are in addition to the $274,056 remaining under the Company’s Board of Directors’ prior share repurchase approval announced on November 4, 2010. As a result, the Company now has a total of $1,000,000 in outstanding authorizations available for share repurchases. These share repurchase authorizations have no expiration dates. However, the Company is subject to share purchase limitations under the terms of its Senior Secured Credit Facilities and indenture governing its Senior Notes. |
Comprehensive income
Comprehensive income | 6 Months Ended |
Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |
Comprehensive income | 1 3 . Comprehensive income For the three months ended For the six months ended June 30, 2015 June 30, 2015 Interest Foreign Accumulated Interest Foreign Accumulated rate swap currency other rate swap currency other and cap Investment translation comprehensive and cap Investment translation comprehensive agreements securities adjustments income (loss) agreements securities adjustments income (loss) Beginning balance $ (6,743 ) $ 3,376 $ (44,258 ) $ (47,625 ) $ (1,795 ) $ 3,151 $ (26,373 ) $ (25,017 ) Unrealized (losses) gains (4,025 ) (83 ) 5,025 917 (13,476 ) 461 (12,860 ) (25,875 ) Related income tax benefit (expense) 1,572 (16 ) — 1,556 5,263 (178 ) — 5,085 (2,453 ) (99 ) 5,025 2,473 (8,213 ) 283 (12,860 ) (20,790 ) Reclassification from accumulated other comprehensive income into net income 1,294 (27 ) — 1,267 2,626 (284 ) — 2,342 Related income tax (expense) benefit (505 ) 11 — (494 ) (1,025 ) 111 — (914 ) 789 (16 ) — 773 1,601 (173 ) — 1,428 Ending balance $ (8,407 ) $ 3,261 $ (39,233 ) $ (44,379 ) $ (8,407 ) $ 3,261 $ (39,233 ) $ (44,379 ) For the three months ended For the six months ended June 30, 2014 June 30, 2014 Interest Foreign Accumulated Interest Foreign Accumulated rate swap currency other rate swap currency other and cap Investment translation comprehensive and cap Investment translation comprehensive agreements securities adjustments income (loss) agreements securities adjustments income (loss) Beginning balance $ (1,490 ) $ 3,244 $ (3,393 ) $ (1,639 ) $ (2,344 ) $ 3,120 $ (3,421 ) $ (2,645 ) Unrealized (losses) gains (8,549 ) 875 1,939 (5,736 ) (12,660 ) 1,405 1,967 (9,289 ) Related income tax benefit (expense) 3,340 (297 ) — 3,044 4,946 (496 ) — 4,451 (5,209 ) 578 1,939 (2,692 ) (7,714 ) 909 1,967 (4,838 ) Reclassification from accumulated other comprehensive income into net income 8,201 — — 8,201 13,714 (340 ) — 13,374 Related income tax (expense) benefit (3,204 ) — — (3,204 ) (5,358 ) 133 — (5,225 ) 4,997 — — 4,997 8,356 (207 ) — 8,149 Ending balance $ (1,702 ) $ 3,822 $ (1,454 ) $ 666 $ (1,702 ) $ 3,822 $ (1,454 ) $ 666 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 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 t |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 1 4 . Acquisitions During the first six months of 2015, the Company acquired dialysis businesses and other businesses consisting of one three 45,059 394 The following table summarizes the assets acquired and liabilities assumed in these transactions and recognized at their acquisition dates at estimated fair values: Six months ended June 30, 2015 Current assets $ 1,545 Property and equipment 9,740 Amortizable intangible and other long-term assets 2,444 Goodwill 51,075 Long-term deferred income taxes (750 ) Noncontrolling interests assumed (18,068 ) Liabilities assumed (533 ) Aggregate purchase price $ 45,453 Amortizable intangible assets acquired during the first six months of 2015 had weighted-average estimated useful lives of four six three 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 $ 134,321 34,957 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 16 34,957 25,728 9,229 The following is a reconciliation of changes in the contingent earn-out obligations for the six months ended June 30, 2015: Beginning balance, January 1, 2015 $ 39,129 Remeasurement of fair value for contingent earn-out obligations (1,834 ) Payments on contingent earn-out obligations (2,338 ) $ 34,957 |
Variable interest entities
Variable interest entities | 6 Months Ended |
Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable interest entities | 1 5 . 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 June 30, 2015, these condensed consolidated financial statements include total assets of VIEs of $627,739 and total liabilities and noncontrolling interests of VIEs to third parties of $327,787. 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 |
Fair value of financial instrum
Fair value of financial instruments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | 1 6 . 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 June 30, 2015: Quoted prices in Significant active Significant other unobservable identical assets observable inputs Total (Level 1) (Level 2) (Level 3) Assets Available-for-sale securities $ 31,238 $ 31,238 $ — $ — Interest rate cap agreements $ 4,128 $ — $ 4,128 $ — Interest rate swap agreements $ 691 $ — $ 691 $ — Funds on deposit with third parties $ 88,092 $ 88,092 $ — $ — Liabilities Contingent earn-out obligations $ 34,957 $ — $ — $ 34,957 Interest rate swap agreements $ 1,131 $ — $ 1,131 — Temporary equity Noncontrolling interests subject to put provisions $ 863,126 $ — $ — $ 863,126 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 margins or quality margins of certain medical procedures and the estimated probability of earn-out payments being made using an option pricing technique and a simulation model for expected EBITDA and operating income. In addition, a probability adjusted model was used to estimate the fair value amounts of the quality margins. 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 Other financial instruments consist primarily of cash, accounts receivable, life insurance contracts, accounts payable, other accrued liabilities and debt. The balances of the non-debt financial instruments are presented in the consolidated financial statements at June 30, 2015 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 $4,415,000 as of June 30, 2015, and the fair value was approximately $4,413,813 based upon quoted market prices. The fair value of the Company’s senior notes was approximately $4,485,000 at June 30, 2015 based upon quoted market prices, as compared to the carrying amount of $4,500,000. |
Segment reporting
Segment reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment reporting | 17. 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 corporate support costs. The Company’s U.S. dialysis and related lab services business is the Company’s largest line of business, and is a leading provider of kidney dialysis services in the U.S. for patients suffering from chronic kidney failure, also known as ESRD. The Company’s HCP division is a patient- and physician-focused integrated health care delivery and management company with nearly three decades of providing coordinated outcomes-based medical care in a cost-effective manner. As of June 30, 2015, the Company’s ancillary services and strategic initiatives consisted primarily of pharmacy services, disease management services, vascular access services, 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 various operating lines of business. 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 costs, 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 various operating lines of business. Corporate support costs in 2015 have been reduced by internal management fees received from 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 before income taxes: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Segment net revenues: U.S. dialysis and related lab services Patient service revenues: External sources $ 2,237,630 $ 2,096,605 $ 4,391,924 $ 4,125,349 Intersegment revenues 13,591 9,084 25,447 16,916 Total dialysis and related lab services revenues 2,251,221 2,105,689 4,417,371 4,142,265 Less: Provision for uncollectible accounts (101,304 ) (84,227 ) (198,781 ) (165,690 ) Net dialysis and related lab services patient service revenues 2,149,917 2,021,462 4,218,590 3,976,575 Other revenues (1) 3,540 3,579 6,724 6,732 Total net dialysis and related lab services revenues 2,153,457 2,025,041 4,225,314 3,983,307 HCP HCP revenues: Capitated revenues 848,595 783,182 1,681,067 1,554,724 Net patient service revenues 82,236 58,076 162,446 114,297 Other revenues (2) 35,326 46,029 50,379 58,553 Intersegment capitated and other revenues 185 204 222 357 Total revenues 966,342 887,491 1,894,114 1,727,931 Other—Ancillary services and strategic initiatives Net patient service revenues 39,052 28,744 74,676 56,143 Capitated revenues 17,595 16,187 35,638 32,210 Other external sources 271,948 224,314 518,510 432,947 Intersegment revenues 5,543 4,474 10,485 9,293 Total ancillary services and strategic initiatives revenues 334,138 273,719 639,309 530,593 Total net segment revenues 3,453,937 3,186,251 6,758,737 6,241,831 Elimination of intersegment revenues (19,319 ) (13,762 ) (36,154 ) (26,566 ) Consolidated net revenues $ 3,434,618 $ 3,172,489 $ 6,722,583 $ 6,215,265 Segment operating margin (loss): U.S. dialysis and related lab services $ 437,844 $ 407,948 $ 333,355 $ 794,648 HCP 72,336 82,048 132,630 136,002 Other—Ancillary services and strategic initiatives (26,207 ) (1,920 ) (40,035 ) (243 ) Total segment operating margin 483,973 488,076 425,950 930,407 Reconciliation of segment operating margin to consolidated income before income taxes: Corporate support costs (3,425 ) (3,781 ) (9,558 ) (4,887 ) Consolidated operating income 480,548 484,295 416,392 925,520 Debt expense (104,248 ) (106,132 ) (201,640 ) (212,467 ) Debt redemption and refinancing charges (48,072 ) (97,548 ) (48,072 ) (97,548 ) Other income 2,311 1,693 1,778 3,391 Consolidated income before income taxes $ 330,539 $ 282,308 $ 168,458 $ 618,896 (1) (2) 50 Depreciation and amortization expense by segment is as follows: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 U.S. dialysis and related lab services $ 109,461 $ 99,163 $ 214,453 $ 195,606 HCP 43,088 42,260 86,367 83,997 Ancillary services and strategic initiatives 6,294 4,484 11,812 8,883 $ 158,843 $ 145,907 $ 312,632 $ 288,486 Summary of assets by segment is as follows: June 30, December 31, 2015 2014 Segment assets U.S. dialysis and related lab services (including equity investments of $28,711 and $28,138, respectively) $ 11,837,990 $ 10,959,096 HCP (including equity investments of $16,752 and $15,393, respectively) 6,347,456 6,285,984 Other—Ancillary services and strategic initiatives (including equity investments of $21,710 and $22,106, respectively) 761,372 697,635 Consolidated assets $ 18,946,818 $ 17,942,715 Expenditures for property and equipment by segment is as follows: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 U.S. dialysis and related lab services. $ 141,656 $ 136,660 $ 247,051 $ 249,869 HCP 12,951 5,777 17,985 10,279 Ancillary services and strategic initiatives 14,845 9,594 25,837 18,445 $ 169,452 $ 152,031 $ 290,873 $ 278,593 |
Changes in DaVita HealthCare Pa
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries | 18. 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 Six months ended June 30, June 30, 2015 2014 2015 2014 Net income attributable to DaVita HealthCare Partners Inc. $ 170,477 $ 147,683 $ 59,860 $ 330,972 (Decrease) increase in paid-in capital for sales of noncontrolling interests — (66 ) — 15 (Decrease) increase in paid-in capital for the purchase of noncontrolling interests and adjustments to ownership interest (8,421 ) 1,247 (8,421 ) 1,457 Net transfers to noncontrolling interests (8,421 ) 1,181 (8,421 ) 1,472 Net income attributable to DaVita HealthCare Partners Inc., net of transfers to noncontrolling interests $ 162,056 $ 148,864 $ 51,439 $ 332,444 |
New accounting standards
New accounting standards | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
New accounting standards | 1 9 . New accounting standards In July 2015, the FASB issued Accounting Standards Updated (ASU) No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers |
Consolidating financial stateme
Consolidating financial statements | 6 Months Ended |
Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidating financial statements | 20 . 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 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2015 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,663,352 $ 735,456 $ (35,229 ) $ 2,363,579 Less: Provision for uncollectible accounts — (70,245 ) (35,720 ) — (105,965 ) Net patient service revenues — 1,593,107 699,736 (35,229 ) 2,257,614 Capitated revenues — 439,734 426,542 (86 ) 866,190 Other revenues 189,586 468,821 7,366 (354,959 ) 310,814 Total net revenues 189,586 2,501,662 1,133,644 (390,274 ) 3,434,618 Operating expenses 128,643 2,200,706 1,014,995 (390,274 ) 2,954,070 Operating income 60,943 300,956 118,649 — 480,548 Debt expense, including debt refinancing charges (150,105 ) (85,119 ) (11,480 ) 94,384 (152,320 ) Other income 91,000 4,348 1,347 (94,384 ) 2,311 Income tax expense (1,667 ) 133,859 (9,430 ) — 122,762 Equity earnings in subsidiaries 166,972 80,646 — (247,618 ) — Net income 170,477 166,972 117,946 (247,618 ) 207,777 Less: Net income attributable to noncontrolling interests — — — (37,300 ) (37,300 ) Net income attributable to DaVita HealthCare Partners Inc. $ 170,477 $ 166,972 $ 117,946 $ (284,918 ) $ 170,477 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2014 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,517,267 $ 697,325 $ (27,343 ) $ 2,187,249 Less: Provision for uncollectible accounts — (57,281 ) (30,771 ) — (88,052 ) Net patient service revenues — 1,459,986 666,554 (27,343 ) 2,099,197 Capitated revenues — 414,366 385,029 (26 ) 799,369 Other revenues 181,199 424,755 6,699 (338,730 ) 273,923 Total net revenues 181,199 2,299,107 1,058,282 (366,099 ) 3,172,489 Operating expenses 122,815 2,033,826 897,652 (366,099 ) 2,688,194 Operating income 58,384 265,281 160,630 — 484,295 Debt expense (202,258 ) (97,382 ) (10,180 ) 106,140 (203,680 ) Other income 99,532 7,379 922 (106,140 ) 1,693 Income tax expense (17,958 ) 111,415 7,430 — 100,887 Equity earnings in subsidiaries 174,067 110,204 — (284,271 ) — Net income 147,683 174,067 143,942 (284,271 ) 181,421 Less: Net income attributable to noncontrolling interests — — — (33,738 ) (33,738 ) Net income attributable to DaVita HealthCare Partners Inc. $ 147,683 $ 174,067 $ 143,942 $ (318,009 ) $ 147,683 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2015 Partners Inc. subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 3,245,311 $ 1,459,299 $ (69,216 ) $ 4,635,394 Less: Provision for uncollectible accounts — (134,322 ) (70,807 ) — (205,129 ) Net patient service revenues — 3,110,989 1,388,492 (69,216 ) 4,430,265 Capitated revenues — 887,072 829,666 (33 ) 1,716,705 Other revenues 357,851 879,849 13,678 (675,765 ) 575,613 Total net revenues 357,851 4,877,910 2,231,836 (745,014 ) 6,722,583 Operating expenses 252,412 4,798,659 2,000,134 (745,014 ) 6,306,191 Operating income 105,439 79,251 231,702 — 416,392 Debt expense, including debt refinancing charges (245,583 ) (170,902 ) (20,766 ) 187,539 (249,712 ) Other income 182,023 4,401 2,893 (187,539 ) 1,778 Income tax expense 15,847 4,624 16,358 — 36,829 Equity earnings in subsidiaries 33,828 125,702 — (159,530 ) — Net income 59,860 33,828 197,471 (159,530 ) 131,629 Less: Net income attributable to noncontrolling interests — — — (71,769 ) (71,769 ) Net income attributable to DaVita HealthCare Partners Inc. $ 59,860 $ 33,828 $ 197,471 $ (231,299 ) $ 59,860 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2014 Partners Inc. subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 3,030,545 $ 1,324,264 $ (53,462 ) $ 4,301,347 Less: Provision for uncollectible accounts — (107,160 ) (64,089 ) — (171,249 ) Net patient service revenues — 2,923,385 1,260,175 (53,462 ) 4,130,098 Capitated revenues — 818,913 768,428 (407 ) 1,586,934 Other revenues 344,242 818,310 11,408 (675,727 ) 498,233 Total net revenues 344,242 4,560,608 2,040,011 (729,596 ) 6,215,265 Operating expenses 235,112 4,014,282 1,769,947 (729,596 ) 5,289,745 Operating income 109,130 546,326 270,064 — 925,520 Debt expense (307,541 ) (188,806 ) (19,932 ) 206,264 (310,015 ) Other income (expense) 199,475 8,935 1,245 (206,264 ) 3,391 Income tax expense 431 215,546 9,761 — 225,738 Equity earnings in subsidiaries 330,339 179,430 — (509,769 ) — Net income 330,972 330,339 241,616 (509,769 ) 393,158 Less: Net income attributable to noncontrolling interests — — — (62,186 ) (62,186 ) Net income attributable to DaVita HealthCare Partners Inc. $ 330,972 $ 330,339 $ 241,616 $ (571,955 ) $ 330,972 Condensed Consolidating Statements of Comprehensive Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2015 Partners subsidiaries subsidiaries adjustments total Net income $ 170,477 $ 166,972 $ 117,946 $ (247,618 ) $ 207,777 Other comprehensive loss (1,779 ) — 5,025 — 3,246 Total comprehensive income 168,698 166,972 122,971 (247,618 ) 211,023 Less: comprehensive income attributable to the noncontrolling interests — — — (37,300 ) (37,300 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 168,698 $ 166,972 $ 122,971 $ (284,918 ) $ 173,723 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2014 Partners subsidiaries subsidiaries adjustments total Net income $ 147,683 $ 174,067 $ 143,942 $ (284,271 ) $ 181,421 Other comprehensive income 366 — 1,939 — 2,305 Total comprehensive income 148,049 174,067 145,881 (284,271 ) 183,726 Less: comprehensive income attributable to the noncontrolling interests — — — (33,738 ) (33,738 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 148,049 $ 174,067 $ 145,881 $ (318,009 ) $ 149,988 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2015 Partners Inc. subsidiaries subsidiaries adjustments total Net income $ 59,860 $ 33,828 $ 197,471 $ (159,530 ) $ 131,629 Other comprehensive loss (6,502 ) — (12,860 ) — (19,362 ) Total comprehensive income 53,358 33,828 184,611 (159,530 ) 112,267 Less: comprehensive income attributable to the noncontrolling interests — — — (71,769 ) (71,769 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 53,358 $ 33,828 $ 184,611 $ (231,299 ) $ 40,498 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2014 Partners Inc. subsidiaries subsidiaries adjustments total Net income $ 330,972 $ 330,339 $ 241,616 $ (509,769 ) $ 393,158 Other comprehensive income 1,344 — 1,967 — 3,311 Total comprehensive income 332,316 330,339 243,583 (509,769 ) 396,469 Less: comprehensive income attributable to the noncontrolling interests — — — (62,186 ) (62,186 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 332,316 $ 330,339 $ 243,583 $ (571,955 ) $ 334,283 Condensed Consolidating Balance Sheets DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of June 30, 2015 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 685,219 $ 58,195 $ 190,321 $ — $ 933,735 Accounts receivable, net — 995,284 671,685 — 1,666,969 Other current assets 964,057 1,093,115 123,045 — 2,180,217 Total current assets 1,649,276 2,146,594 985,051 — 4,780,921 Property and equipment, net 196,905 1,499,888 867,915 — 2,564,708 Amortizable intangibles, net 89,029 1,732,254 47,149 — 1,868,432 Investments in subsidiaries 8,768,681 1,541,700 — (10,310,381 ) — Intercompany receivables 3,783,559 — 578,943 (4,362,502 ) — Other long-term assets and investments 61,452 110,611 109,748 — 281,811 Goodwill — 8,004,695 1,446,251 — 9,450,946 Total assets $ 14,548,902 $ 15,035,742 $ 4,035,057 $ (14,672,883 ) $ 18,946,818 Current liabilities 38,757 1,808,645 486,888 — 2,334,290 Intercompany payables — 3,110,636 1,251,866 (4,362,502 ) — Long-term debt and other long-term liabilities 8,818,419 1,347,780 236,287 — 10,402,486 Noncontrolling interests subject to put provisions 544,877 — — 318,249 863,126 Total DaVita HealthCare Partners Inc. shareholders’ equity 5,146,849 8,768,681 1,541,700 (10,310,381 ) 5,146,849 Noncontrolling interests not subject to put provisions — — 518,316 (318,249 ) 200,067 Total equity 5,146,849 8,768,681 2,060,016 (10,628,630 ) 5,346,916 Total liabilities and equity $ 14,548,902 $ 15,035,742 $ 4,035,057 $ (14,672,883 ) $ 18,946,818 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of December 31, 2014 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 698,876 $ 77,921 $ 188,444 $ — $ 965,241 Accounts receivable, net — 915,851 609,998 — 1,525,849 Other current assets 362,672 930,093 92,942 — 1,385,707 Total current assets 1,061,548 1,923,865 891,384 — 3,876,797 Property and equipment, net 195,690 1,473,188 800,221 — 2,469,099 Amortizable intangibles, net 85,338 1,811,218 52,942 — 1,949,498 Investments in subsidiaries 8,868,335 1,561,195 — (10,429,530 ) — Intercompany receivables 3,723,454 — 564,241 (4,287,695 ) — Other long-term assets and investments 70,309 60,385 101,332 — 232,026 Goodwill — 7,958,221 1,457,074 — 9,415,295 Total assets $ 14,004,674 $ 14,788,072 $ 3,867,194 $ (14,717,225 ) $ 17,942,715 Current liabilities $ 180,977 $ 1,493,243 $ 414,432 $ — $ 2,088,652 Intercompany payables — 3,105,173 1,182,522 (4,287,695 ) — Long-term debt and other long-term liabilities 8,124,863 1,321,321 217,603 — 9,663,787 Noncontrolling interests subject to put provisions 528,321 — — 301,644 829,965 Total DaVita HealthCare Partners Inc. shareholders’ equity 5,170,513 8,868,335 1,561,195 (10,429,530 ) 5,170,513 Noncontrolling interests not subject to put provisions — — 491,442 (301,644 ) 189,798 Total equity 5,170,513 8,868,335 2,052,637 (10,731,174 ) 5,360,311 Total liabilities and equity $ 14,004,674 $ 14,788,072 $ 3,867,194 $ (14,717,225 ) $ 17,942,715 Condensed Consolidating Statements of Cash Flows DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2015 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net income $ 59,860 $ 33,828 $ 197,471 $ (159,530 ) $ 131,629 Changes in operating assets and liabilities and non-cash items included in net income (117,778 ) 215,135 53,015 159,530 309,902 Net cash (used in) provided by operating activities (57,918 ) 248,963 250,486 — 441,531 Cash flows from investing activities: Additions of property and equipment, net (21,179 ) (147,637 ) (122,057 ) — (290,873 ) Acquisitions — (44,740 ) (319 ) — (45,059 ) Proceeds from asset and business sales — 3,415 — — 3,415 Purchases/proceeds from investment sales and other items (604,922 ) (833 ) (9,065 ) — (614,820 ) Net cash used in investing activities (626,101 ) (189,795 ) (131,441 ) — (947,337 ) Cash flows from financing activities: Long-term debt and related financing costs, net 682,510 (7,922 ) (6,596 ) — 667,992 Intercompany borrowing 108,911 (60,132 ) (48,779 ) — — Other items (121,059 ) (10,840 ) (61,000 ) — (192,899 ) Net cash provided by (used in) financing activities 670,362 (78,894 ) (116,375 ) — 475,093 Effect of exchange rate changes on cash — — (793 ) — (793 ) Net increase (decrease) in cash and cash equivalents (13,657 ) (19,726 ) 1,877 — (31,506 ) Cash and cash equivalents at beginning of period 698,876 77,921 188,444 — 965,241 Cash and cash equivalents at end of period $ 685,219 $ 58,195 $ 190,321 $ — $ 933,735 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2014 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net income $ 330,972 $ 330,339 $ 241,616 $ (509,769 ) $ 393,158 Changes in operating assets and liabilities and non-cash items included in net income (191,299 ) 6,934 (37,064 ) 509,769 288,340 Net cash provided by operating activities 139,673 337,273 204,552 — 681,498 Cash flows from investing activities: Additions of property and equipment, net (25,377 ) (123,519 ) (129,697 ) (278,593 ) Acquisitions — (97,057 ) (1,385 ) (98,442 ) Proceeds from asset sales — 215 — 215 Purchases of investments and other items (58,496 ) (5,263 ) (2,276 ) (66,035 ) Net cash used in investing activities (83,873 ) (225,624 ) (133,358 ) — (442,855 ) Cash flows from financing activities: Long-term debt and related financing costs, net 353,406 (7,158 ) 2,188 348,436 Intercompany borrowing 139,052 (113,906 ) (25,146 ) — Other items (69,425 ) (4,810 ) (37,553 ) (111,788 ) Net cash provided by (used in) financing activities 423,033 (125,874 ) (60,511 ) — 236,648 Effect of exchange rate changes on cash (567 ) (567 ) Net increase (decrease) in cash and cash equivalents 478,833 (14,225 ) 10,116 474,724 Cash and cash equivalents at beginning of period 602,188 151,454 192,607 946,249 Cash and cash equivalents at end of period $ 1,081,021 $ 137,229 $ 202,723 $ — $ 1,420,973 |
Supplemental data
Supplemental data | 6 Months Ended |
Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental data | 2 1 . Supplemental data The following information is presented as supplemental data as required by the indentures governing the Company’s senior notes. Condensed Consolidating Statements of Income Company and Consolidated Physician Unrestricted Restricted For the six months ended June 30, 2015 Total Groups Subsidiaries Subsidiaries (1) Patient service operating revenues $ 4,635,394 $ 64,317 $ — $ 4,571,077 Less: Provision for uncollectible accounts (205,129 ) (2,182 ) — (202,947 ) Net patient service operating revenues 4,430,265 62,135 — 4,368,130 Capitated revenues 1,716,705 792,553 — 924,152 Other revenues 575,613 2,665 — 572,948 Total net operating revenues 6,722,583 857,353 — 5,865,230 Operating expenses 6,306,191 836,784 (327 ) 5,469,734 Operating income 416,392 20,569 327 395,496 Debt expense, including refinancing charges (249,712 ) (4,922 ) — (244,790 ) Other (loss) income 1,778 159 — 1,619 Income tax expense 36,829 1,569 131 35,129 Net income 131,629 14,237 196 117,196 Less: Net income attributable to noncontrolling interests (71,769 ) — — (71,769 ) Net income attributable to DaVita HealthCare Partners Inc. $ 59,860 $ 14,237 $ 196 $ 45,427 (1) After the elimination of the unrestricted subsidiaries and the physician groups Condensed Consolidating Statements of Comprehensive Income Company and Consolidated Physician Unrestricted Restricted For the six months ended June 30, 2015 Total Groups Subsidiaries Subsidiaries (1) Net income $ 131,629 $ 14,237 $ 196 $ 117,196 Other comprehensive loss (19,362 ) — — (19,362 ) Total comprehensive income 112,267 14,237 196 97,834 Less: comprehensive income attributable to the noncontrolling interests (71,769 ) — — (71,769 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 40,498 $ 14,237 $ 196 $ 26,065 (1) After the elimination of the unrestricted subsidiaries and the physician groups Condensed Consolidating Balance Sheets Company and Consolidated Physician Unrestricted Restricted As of June 30, 2015 Total Groups Subsidiaries Subsidiaries (1) Cash and cash equivalents $ 933,735 $ 97,209 $ — $ 836,526 Accounts receivable, net 1,666,969 290,827 — 1,376,142 Other current assets 2,180,217 13,465 — 2,166,752 Total current assets 4,780,921 401,501 — 4,379,420 Property and equipment, net 2,564,708 2,027 — 2,562,681 Amortizable intangibles, net 1,868,432 6,498 — 1,861,934 Other long-term assets 281,811 71,044 3,137 207,630 Goodwill 9,450,946 15,967 — 9,434,979 Total assets $ 18,946,818 $ 497,037 $ 3,137 $ 18,446,644 Current liabilities $ 2,334,290 $ 236,714 $ — $ 2,097,576 Payables to parent — 173,682 3,137 (176,819 ) Long-term debt and other long-term liabilities 10,402,486 55,492 — 10,346,994 Noncontrolling interests subject to put provisions 863,126 — — 863,126 Total DaVita HealthCare Partners Inc. shareholders’ equity 5,146,849 31,149 — 5,115,700 Noncontrolling interests not subject to put provisions 200,067 — — 200,067 Shareholders’ equity 5,346,916 31,149 — 5,315,767 Total liabilities and shareholder’s equity $ 18,946,818 $ 497,037 $ 3,137 $ 18,446,644 (1) After the elimination of the unrestricted subsidiaries and the physician groups Condensed Consolidating Statements of Cash Flows Company and Consolidated Physician Unrestricted Restricted For the six months ended June 30, 2015 Total Groups Subsidiaries Subsidiaries (1) Cash flows from operating activities: Net income $ 131,629 $ 14,237 $ 196 $ 117,196 Changes in operating and intercompany assets and liabilities and non-cash items included in net income 309,902 (19,648 ) (196 ) 329,746 Net cash provided by (used in) operating activities 441,531 (5,411 ) — 446,942 Cash flows from investing activities: Additions of property and equipment (290,873 ) (24 ) — (290,849 ) Acquisitions and divestitures, net (45,059 ) — — (45,059 ) Proceeds from discontinued operations 3,415 — — 3,415 Investments and other items (614,820 ) (1,581 ) — (613,239 ) Net cash used in investing activities (947,337 ) (1,605 ) — (945,732 ) Cash flows from financing activities: Long-term debt 667,992 — — 667,992 Intercompany — (8,223 ) — 8,223 Other items (192,899 ) — — (192,899 ) Net cash used in by financing activities 475,093 (8,223 ) — 483,316 Effect of exchange rate changes on cash (793 ) — — (793 ) Net increase (decrease) in cash (31,506 ) (15,239 ) — (16,267 ) Cash and cash equivalents at beginning of period 965,241 112,448 — 852,793 Cash and cash equivalents at end of period $ 933,735 $ 97,209 $ — $ 836,526 (1) After the elimination of the unrestricted subsidiaries and the physician groups |
Condensed consolidated interi29
Condensed consolidated interim financial statements (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
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 reserve 100% of the outstanding accounts receivable balances for dialysis services when those amounts due are outstanding for more than three months. |
Long-term incentive compensation | The Company’s stock-based compensation awards are measured at their estimated fair values on the date of grant if settled in shares or at their estimated fair values at the end of each reporting period if settled in cash. The value of stock-based awards so measured is recognized as compensation expense on a cumulative straight-line basis over the vesting terms of the awards, adjusted for expected forfeitures. |
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. |
New accounting standards | In July 2015, the FASB issued Accounting Standards Updated (ASU) No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers |
Accounting Policy [Abstract] | |
Goodwill | 5. Goodwill Changes in goodwill by reportable segments were as follows: Other-ancillary U.S. dialysis and services and related lab services HCP strategic initiatives Consolidated total Balance at January 1, 2014 $ 5,469,473 $ 3,516,162 $ 227,339 $ 9,212,974 Acquisitions 143,021 48,649 29,844 221,514 Divestitures (1,851 ) — — (1,851 ) Foreign currency and other adjustments — (2,277 ) (15,065 ) (17,342 ) Balance at December 31, 2014 $ 5,610,643 $ 3,562,534 $ 242,118 $ 9,415,295 Acquisitions — 24,302 26,773 51,075 Divestitures — (446 ) — (446 ) Foreign currency and other adjustments — — (14,978 ) (14,978 ) Balance at June 30, 2015 $ 5,610,643 $ 3,586,390 $ 253,913 $ 9,450,946 Each of the Company’s operating segments described in Note 17 to these condensed consolidated financial statements represents an individual reporting unit for goodwill impairment testing purposes, except that each sovereign jurisdiction within the Company’s international operating 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 eroded, primarily as a result of recent reductions in its Medicare Advantage reimbursement rates, including the Medicare Advantage final benchmark rates for 2016 announced on April 6, 2015. As a result, the Company has determined that three of its HCP reporting units, HCP California, HCP Nevada and HCP New Mexico, remain at risk of goodwill impairment. HCP California, HCP Nevada and HCP New Mexico have goodwill of $2,518,569, $517,618, and $71,684, respectively. The Company obtained preliminary third-party valuations of these three businesses as of June 30, 2015, which indicate that the estimated fair values of HCP California, HCP Nevada and HCP New Mexico exceed their total carrying values by approximately 9.9%, 7.4% and 2.0%, 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 1.8%, 1.9% and 2.0%, 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 4.2%, 3.1% and 3.6%, respectively. During the first six months of 2015, the Company recorded an immaterial |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
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 Six months ended June 30, June 30, 2015 2014 2015 2014 Basic: Net income attributable to DaVita HealthCare Partners Inc. $ 170,477 $ 147,683 $ 59,860 $ 330,972 Weighted average shares outstanding during the period 215,186 214,451 215,382 214,010 Vested stock units — 2 — 2 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 212,992 212,259 213,188 211,818 Basic net income per share attributable to DaVita HealthCare Partners Inc. $ 0.80 $ 0.70 $ 0.28 $ 1.56 Diluted: Net income attributable to DaVita HealthCare Partners Inc. $ 170,477 $ 147,683 $ 59,860 $ 330,972 Weighted average shares outstanding during the period 215,186 214,451 215,382 214,010 Vested stock units — 2 — 2 Assumed incremental shares from stock plans 2,420 2,268 2,409 2,409 Weighted average shares for diluted earnings per share calculation 217,606 216,721 217,791 216,421 Diluted net income per share attributable to DaVita HealthCare Partners Inc. $ 0.78 $ 0.68 $ 0.27 $ 1.53 Anti-dilutive potential common shares excluded from calculation (1) 691 990 1,046 1,995 ______________ (1) |
Investments in debt and equit31
Investments in debt and equity securities and other investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | The Company’s investments in securities consist of the following: June 30, 2015 December 31, 2014 Held to Available Held to Available maturity for sale Total maturity for sale Total Certificates of deposit and money market funds due within one year $ 940,589 $ — $ 940,589 $ 335,975 $ — $ 335,975 Investments in mutual funds and common stock — 31,238 31,238 — 28,123 28,123 $ 940,589 $ 31,238 $ 971,827 $ 335,975 $ 28,123 $ 364,098 Short-term investments $ 940,589 $ 1,552 $ 942,141 $ 335,975 $ 1,424 $ 337,399 Long-term investments — 29,686 29,686 — 26,699 26,699 $ 940,589 $ 31,238 $ 971,827 $ 335,975 $ 28,123 $ 364,098 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Reportable Segments | Changes in goodwill by reportable segments were as follows: Other-ancillary U.S. dialysis and services and related lab services HCP strategic initiatives Consolidated total Balance at January 1, 2014 $ 5,469,473 $ 3,516,162 $ 227,339 $ 9,212,974 Acquisitions 143,021 48,649 29,844 221,514 Divestitures (1,851 ) — — (1,851 ) Foreign currency and other adjustments — (2,277 ) (15,065 ) (17,342 ) Balance at December 31, 2014 $ 5,610,643 $ 3,562,534 $ 242,118 $ 9,415,295 Acquisitions — 24,302 26,773 51,075 Divestitures — (446 ) — (446 ) Foreign currency and other adjustments — — (14,978 ) (14,978 ) Balance at June 30, 2015 $ 5,610,643 $ 3,586,390 $ 253,913 $ 9,450,946 |
Health care costs payable (Tabl
Health care costs payable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Health Care Organizations [Abstract] | |
Components of Changes in Health Care Costs Payable | The following table shows the components of changes in the health care costs payable for the six months ended June 30, 2015: Six months ended June 30, 2015 Health care costs payable, beginning of the period $ 214,405 Add: Components of incurred health care costs Current year 783,602 Prior years 838 Total incurred health care costs 784,440 Less: Claims paid Current year 623,940 Prior years 191,765 Total claims paid 815,705 Health care costs payable, end of the period $ 183,140 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long-term debt was comprised of the following: June 30, December 31, 2015 2014 Senior Secured Credit Facilities: Term Loan A $ 950,000 $ 975,000 Term Loan B 3,465,000 3,482,500 Senior notes 4,500,000 3,775,000 Acquisition obligations and other notes payable 62,641 69,045 Capital lease obligations 247,128 218,097 Total debt principal outstanding 9,224,769 8,519,642 Discount on long-term debt (14,922 ) (16,208 ) 9,209,847 8,503,434 Less current portion (108,795 ) (120,154 ) $ 9,101,052 $ 8,383,280 |
Scheduled Maturities of Long-term Debt | Scheduled maturities of long-term debt at June 30, 2015 were as follows: 2015 (remainder of the year) 56,484 2016 119,993 2017 149,031 2018 159,637 2019 734,147 2020 57,876 Thereafter 7,947,601 |
Derivative Instruments | The following table summarizes the Company’s derivative instruments as of June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 Derivatives designated as hedging Balance sheet Balance sheet instruments location Fair value location Fair value Interest rate swap agreements Other short-term liabilities $ 1,131 Other short-term liabilities $ 1,457 Interest rate swap agreements Other long-term assets $ 691 Other long-term assets $ 3,281 Interest rate cap agreements Other long-term assets $ 4,128 Other long-term assets $ 13,934 |
Effects of Interest Rate Swap and Cap Agreements | The following table summarizes the effects of the Company’s interest rate swap and cap agreements for the three and six months ended June 30, 2015 and 2014: Amount of Amount of losses recognized in losses reclassified OCI on interest rate swap from accumulated and cap agreements Location of OCI into income Three months ended Six months ended losses reclassified Three months ended Six months ended Derivatives designated June 30, June 30, from accumulated June 30, June 30, as cash flow hedges 2015 2014 2015 2014 OCI into income 2015 2014 2015 2014 Interest rate swap agreements $ (976 ) $ (5,022 ) $ (3,670 ) $ (7,786 ) Debt expense $ (684 ) $ (6,694 ) $ (1,406 ) $ (10,700 ) Interest rate cap agreements (3,049 ) (3,527 ) (9,806 ) (4,874 ) Debt expense (610 ) (1,507 ) (1,220 ) (3,014 ) Tax benefit 1,572 3,340 5,263 4,946 505 3,204 1,025 5,358 Total $ (2,453 ) $ (5,209 ) $ (8,213 ) $ (7,714 ) $ (789 ) $ (4,997 ) $ (1,601 ) $ (8,356 ) |
Comprehensive income (Tables)
Comprehensive income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |
Comprehensive income | For the three months ended For the six months ended June 30, 2015 June 30, 2015 Interest Foreign Accumulated Interest Foreign Accumulated rate swap currency other rate swap currency other and cap Investment translation comprehensive and cap Investment translation comprehensive agreements securities adjustments income (loss) agreements securities adjustments income (loss) Beginning balance $ (6,743 ) $ 3,376 $ (44,258 ) $ (47,625 ) $ (1,795 ) $ 3,151 $ (26,373 ) $ (25,017 ) Unrealized (losses) gains (4,025 ) (83 ) 5,025 917 (13,476 ) 461 (12,860 ) (25,875 ) Related income tax benefit (expense) 1,572 (16 ) — 1,556 5,263 (178 ) — 5,085 (2,453 ) (99 ) 5,025 2,473 (8,213 ) 283 (12,860 ) (20,790 ) Reclassification from accumulated other comprehensive income into net income 1,294 (27 ) — 1,267 2,626 (284 ) — 2,342 Related income tax (expense) benefit (505 ) 11 — (494 ) (1,025 ) 111 — (914 ) 789 (16 ) — 773 1,601 (173 ) — 1,428 Ending balance $ (8,407 ) $ 3,261 $ (39,233 ) $ (44,379 ) $ (8,407 ) $ 3,261 $ (39,233 ) $ (44,379 ) For the three months ended For the six months ended June 30, 2014 June 30, 2014 Interest Foreign Accumulated Interest Foreign Accumulated rate swap currency other rate swap currency other and cap Investment translation comprehensive and cap Investment translation comprehensive agreements securities adjustments income (loss) agreements securities adjustments income (loss) Beginning balance $ (1,490 ) $ 3,244 $ (3,393 ) $ (1,639 ) $ (2,344 ) $ 3,120 $ (3,421 ) $ (2,645 ) Unrealized (losses) gains (8,549 ) 875 1,939 (5,736 ) (12,660 ) 1,405 1,967 (9,289 ) Related income tax benefit (expense) 3,340 (297 ) — 3,044 4,946 (496 ) — 4,451 (5,209 ) 578 1,939 (2,692 ) (7,714 ) 909 1,967 (4,838 ) Reclassification from accumulated other comprehensive income into net income 8,201 — — 8,201 13,714 (340 ) — 13,374 Related income tax (expense) benefit (3,204 ) — — (3,204 ) (5,358 ) 133 — (5,225 ) 4,997 — — 4,997 8,356 (207 ) — 8,149 Ending balance $ (1,702 ) $ 3,822 $ (1,454 ) $ 666 $ (1,702 ) $ 3,822 $ (1,454 ) $ 666 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
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: Six months ended June 30, 2015 Current assets $ 1,545 Property and equipment 9,740 Amortizable intangible and other long-term assets 2,444 Goodwill 51,075 Long-term deferred income taxes (750 ) Noncontrolling interests assumed (18,068 ) Liabilities assumed (533 ) Aggregate purchase price $ 45,453 |
Reconciliation of Changes in Contingent Earn-Out Obligations | The following is a reconciliation of changes in the contingent earn-out obligations for the six months ended June 30, 2015: Beginning balance, January 1, 2015 $ 39,129 Remeasurement of fair value for contingent earn-out obligations (1,834 ) Payments on contingent earn-out obligations (2,338 ) $ 34,957 |
Fair value of financial instr37
Fair value of financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
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 June 30, 2015: Quoted prices in Significant active Significant other unobservable identical assets observable inputs Total (Level 1) (Level 2) (Level 3) Assets Available-for-sale securities $ 31,238 $ 31,238 $ — $ — Interest rate cap agreements $ 4,128 $ — $ 4,128 $ — Interest rate swap agreements $ 691 $ — $ 691 $ — Funds on deposit with third parties $ 88,092 $ 88,092 $ — $ — Liabilities Contingent earn-out obligations $ 34,957 $ — $ — $ 34,957 Interest rate swap agreements $ 1,131 $ — $ 1,131 — Temporary equity Noncontrolling interests subject to put provisions $ 863,126 $ — $ — $ 863,126 |
Segment reporting (Tables)
Segment reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of Segment Net Revenues, Segment Operating Income (Loss) and Reconciliation of Segment Income to Consolidated Income 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 before income taxes: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 Segment net revenues: U.S. dialysis and related lab services Patient service revenues: External sources $ 2,237,630 $ 2,096,605 $ 4,391,924 $ 4,125,349 Intersegment revenues 13,591 9,084 25,447 16,916 Total dialysis and related lab services revenues 2,251,221 2,105,689 4,417,371 4,142,265 Less: Provision for uncollectible accounts (101,304 ) (84,227 ) (198,781 ) (165,690 ) Net dialysis and related lab services patient service revenues 2,149,917 2,021,462 4,218,590 3,976,575 Other revenues (1) 3,540 3,579 6,724 6,732 Total net dialysis and related lab services revenues 2,153,457 2,025,041 4,225,314 3,983,307 HCP HCP revenues: Capitated revenues 848,595 783,182 1,681,067 1,554,724 Net patient service revenues 82,236 58,076 162,446 114,297 Other revenues (2) 35,326 46,029 50,379 58,553 Intersegment capitated and other revenues 185 204 222 357 Total revenues 966,342 887,491 1,894,114 1,727,931 Other—Ancillary services and strategic initiatives Net patient service revenues 39,052 28,744 74,676 56,143 Capitated revenues 17,595 16,187 35,638 32,210 Other external sources 271,948 224,314 518,510 432,947 Intersegment revenues 5,543 4,474 10,485 9,293 Total ancillary services and strategic initiatives revenues 334,138 273,719 639,309 530,593 Total net segment revenues 3,453,937 3,186,251 6,758,737 6,241,831 Elimination of intersegment revenues (19,319 ) (13,762 ) (36,154 ) (26,566 ) Consolidated net revenues $ 3,434,618 $ 3,172,489 $ 6,722,583 $ 6,215,265 Segment operating margin (loss): U.S. dialysis and related lab services $ 437,844 $ 407,948 $ 333,355 $ 794,648 HCP 72,336 82,048 132,630 136,002 Other—Ancillary services and strategic initiatives (26,207 ) (1,920 ) (40,035 ) (243 ) Total segment operating margin 483,973 488,076 425,950 930,407 Reconciliation of segment operating margin to consolidated income before income taxes: Corporate support costs (3,425 ) (3,781 ) (9,558 ) (4,887 ) Consolidated operating income 480,548 484,295 416,392 925,520 Debt expense (104,248 ) (106,132 ) (201,640 ) (212,467 ) Debt redemption and refinancing charges (48,072 ) (97,548 ) (48,072 ) (97,548 ) Other income 2,311 1,693 1,778 3,391 Consolidated income before income taxes $ 330,539 $ 282,308 $ 168,458 $ 618,896 (1) (2) 50 |
Summary of Depreciation and Amortization Expense by Segment | Depreciation and amortization expense by segment is as follows: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 U.S. dialysis and related lab services $ 109,461 $ 99,163 $ 214,453 $ 195,606 HCP 43,088 42,260 86,367 83,997 Ancillary services and strategic initiatives 6,294 4,484 11,812 8,883 $ 158,843 $ 145,907 $ 312,632 $ 288,486 |
Summary of Assets by Segment | Summary of assets by segment is as follows: June 30, December 31, 2015 2014 Segment assets U.S. dialysis and related lab services (including equity investments of $28,711 and $28,138, respectively) $ 11,837,990 $ 10,959,096 HCP (including equity investments of $16,752 and $15,393, respectively) 6,347,456 6,285,984 Other—Ancillary services and strategic initiatives (including equity investments of $21,710 and $22,106, respectively) 761,372 697,635 Consolidated assets $ 18,946,818 $ 17,942,715 |
Summary of Expenditures for Property and Equipment by Segment | Expenditures for property and equipment by segment is as follows: Three months ended Six months ended June 30, June 30, 2015 2014 2015 2014 U.S. dialysis and related lab services. $ 141,656 $ 136,660 $ 247,051 $ 249,869 HCP 12,951 5,777 17,985 10,279 Ancillary services and strategic initiatives 14,845 9,594 25,837 18,445 $ 169,452 $ 152,031 $ 290,873 $ 278,593 |
Changes in DaVita HealthCare 39
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
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 Six months ended June 30, June 30, 2015 2014 2015 2014 Net income attributable to DaVita HealthCare Partners Inc. $ 170,477 $ 147,683 $ 59,860 $ 330,972 (Decrease) increase in paid-in capital for sales of noncontrolling interests — (66 ) — 15 (Decrease) increase in paid-in capital for the purchase of noncontrolling interests and adjustments to ownership interest (8,421 ) 1,247 (8,421 ) 1,457 Net transfers to noncontrolling interests (8,421 ) 1,181 (8,421 ) 1,472 Net income attributable to DaVita HealthCare Partners Inc., net of transfers to noncontrolling interests $ 162,056 $ 148,864 $ 51,439 $ 332,444 |
Consolidating financial state40
Consolidating financial statements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidating Statements of Income | Condensed Consolidating Statements of Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2015 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,663,352 $ 735,456 $ (35,229 ) $ 2,363,579 Less: Provision for uncollectible accounts — (70,245 ) (35,720 ) — (105,965 ) Net patient service revenues — 1,593,107 699,736 (35,229 ) 2,257,614 Capitated revenues — 439,734 426,542 (86 ) 866,190 Other revenues 189,586 468,821 7,366 (354,959 ) 310,814 Total net revenues 189,586 2,501,662 1,133,644 (390,274 ) 3,434,618 Operating expenses 128,643 2,200,706 1,014,995 (390,274 ) 2,954,070 Operating income 60,943 300,956 118,649 — 480,548 Debt expense, including debt refinancing charges (150,105 ) (85,119 ) (11,480 ) 94,384 (152,320 ) Other income 91,000 4,348 1,347 (94,384 ) 2,311 Income tax expense (1,667 ) 133,859 (9,430 ) — 122,762 Equity earnings in subsidiaries 166,972 80,646 — (247,618 ) — Net income 170,477 166,972 117,946 (247,618 ) 207,777 Less: Net income attributable to noncontrolling interests — — — (37,300 ) (37,300 ) Net income attributable to DaVita HealthCare Partners Inc. $ 170,477 $ 166,972 $ 117,946 $ (284,918 ) $ 170,477 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2014 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,517,267 $ 697,325 $ (27,343 ) $ 2,187,249 Less: Provision for uncollectible accounts — (57,281 ) (30,771 ) — (88,052 ) Net patient service revenues — 1,459,986 666,554 (27,343 ) 2,099,197 Capitated revenues — 414,366 385,029 (26 ) 799,369 Other revenues 181,199 424,755 6,699 (338,730 ) 273,923 Total net revenues 181,199 2,299,107 1,058,282 (366,099 ) 3,172,489 Operating expenses 122,815 2,033,826 897,652 (366,099 ) 2,688,194 Operating income 58,384 265,281 160,630 — 484,295 Debt expense (202,258 ) (97,382 ) (10,180 ) 106,140 (203,680 ) Other income 99,532 7,379 922 (106,140 ) 1,693 Income tax expense (17,958 ) 111,415 7,430 — 100,887 Equity earnings in subsidiaries 174,067 110,204 — (284,271 ) — Net income 147,683 174,067 143,942 (284,271 ) 181,421 Less: Net income attributable to noncontrolling interests — — — (33,738 ) (33,738 ) Net income attributable to DaVita HealthCare Partners Inc. $ 147,683 $ 174,067 $ 143,942 $ (318,009 ) $ 147,683 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2015 Partners Inc. subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 3,245,311 $ 1,459,299 $ (69,216 ) $ 4,635,394 Less: Provision for uncollectible accounts — (134,322 ) (70,807 ) — (205,129 ) Net patient service revenues — 3,110,989 1,388,492 (69,216 ) 4,430,265 Capitated revenues — 887,072 829,666 (33 ) 1,716,705 Other revenues 357,851 879,849 13,678 (675,765 ) 575,613 Total net revenues 357,851 4,877,910 2,231,836 (745,014 ) 6,722,583 Operating expenses 252,412 4,798,659 2,000,134 (745,014 ) 6,306,191 Operating income 105,439 79,251 231,702 — 416,392 Debt expense, including debt refinancing charges (245,583 ) (170,902 ) (20,766 ) 187,539 (249,712 ) Other income 182,023 4,401 2,893 (187,539 ) 1,778 Income tax expense 15,847 4,624 16,358 — 36,829 Equity earnings in subsidiaries 33,828 125,702 — (159,530 ) — Net income 59,860 33,828 197,471 (159,530 ) 131,629 Less: Net income attributable to noncontrolling interests — — — (71,769 ) (71,769 ) Net income attributable to DaVita HealthCare Partners Inc. $ 59,860 $ 33,828 $ 197,471 $ (231,299 ) $ 59,860 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2014 Partners Inc. subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 3,030,545 $ 1,324,264 $ (53,462 ) $ 4,301,347 Less: Provision for uncollectible accounts — (107,160 ) (64,089 ) — (171,249 ) Net patient service revenues — 2,923,385 1,260,175 (53,462 ) 4,130,098 Capitated revenues — 818,913 768,428 (407 ) 1,586,934 Other revenues 344,242 818,310 11,408 (675,727 ) 498,233 Total net revenues 344,242 4,560,608 2,040,011 (729,596 ) 6,215,265 Operating expenses 235,112 4,014,282 1,769,947 (729,596 ) 5,289,745 Operating income 109,130 546,326 270,064 — 925,520 Debt expense (307,541 ) (188,806 ) (19,932 ) 206,264 (310,015 ) Other income (expense) 199,475 8,935 1,245 (206,264 ) 3,391 Income tax expense 431 215,546 9,761 — 225,738 Equity earnings in subsidiaries 330,339 179,430 — (509,769 ) — Net income 330,972 330,339 241,616 (509,769 ) 393,158 Less: Net income attributable to noncontrolling interests — — — (62,186 ) (62,186 ) Net income attributable to DaVita HealthCare Partners Inc. $ 330,972 $ 330,339 $ 241,616 $ (571,955 ) $ 330,972 |
Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2015 Partners subsidiaries subsidiaries adjustments total Net income $ 170,477 $ 166,972 $ 117,946 $ (247,618 ) $ 207,777 Other comprehensive loss (1,779 ) — 5,025 — 3,246 Total comprehensive income 168,698 166,972 122,971 (247,618 ) 211,023 Less: comprehensive income attributable to the noncontrolling interests — — — (37,300 ) (37,300 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 168,698 $ 166,972 $ 122,971 $ (284,918 ) $ 173,723 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2014 Partners subsidiaries subsidiaries adjustments total Net income $ 147,683 $ 174,067 $ 143,942 $ (284,271 ) $ 181,421 Other comprehensive income 366 — 1,939 — 2,305 Total comprehensive income 148,049 174,067 145,881 (284,271 ) 183,726 Less: comprehensive income attributable to the noncontrolling interests — — — (33,738 ) (33,738 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 148,049 $ 174,067 $ 145,881 $ (318,009 ) $ 149,988 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2015 Partners Inc. subsidiaries subsidiaries adjustments total Net income $ 59,860 $ 33,828 $ 197,471 $ (159,530 ) $ 131,629 Other comprehensive loss (6,502 ) — (12,860 ) — (19,362 ) Total comprehensive income 53,358 33,828 184,611 (159,530 ) 112,267 Less: comprehensive income attributable to the noncontrolling interests — — — (71,769 ) (71,769 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 53,358 $ 33,828 $ 184,611 $ (231,299 ) $ 40,498 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2014 Partners Inc. subsidiaries subsidiaries adjustments total Net income $ 330,972 $ 330,339 $ 241,616 $ (509,769 ) $ 393,158 Other comprehensive income 1,344 — 1,967 — 3,311 Total comprehensive income 332,316 330,339 243,583 (509,769 ) 396,469 Less: comprehensive income attributable to the noncontrolling interests — — — (62,186 ) (62,186 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 332,316 $ 330,339 $ 243,583 $ (571,955 ) $ 334,283 |
Consolidating Balance Sheets | Condensed Consolidating Balance Sheets DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of June 30, 2015 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 685,219 $ 58,195 $ 190,321 $ — $ 933,735 Accounts receivable, net — 995,284 671,685 — 1,666,969 Other current assets 964,057 1,093,115 123,045 — 2,180,217 Total current assets 1,649,276 2,146,594 985,051 — 4,780,921 Property and equipment, net 196,905 1,499,888 867,915 — 2,564,708 Amortizable intangibles, net 89,029 1,732,254 47,149 — 1,868,432 Investments in subsidiaries 8,768,681 1,541,700 — (10,310,381 ) — Intercompany receivables 3,783,559 — 578,943 (4,362,502 ) — Other long-term assets and investments 61,452 110,611 109,748 — 281,811 Goodwill — 8,004,695 1,446,251 — 9,450,946 Total assets $ 14,548,902 $ 15,035,742 $ 4,035,057 $ (14,672,883 ) $ 18,946,818 Current liabilities 38,757 1,808,645 486,888 — 2,334,290 Intercompany payables — 3,110,636 1,251,866 (4,362,502 ) — Long-term debt and other long-term liabilities 8,818,419 1,347,780 236,287 — 10,402,486 Noncontrolling interests subject to put provisions 544,877 — — 318,249 863,126 Total DaVita HealthCare Partners Inc. shareholders’ equity 5,146,849 8,768,681 1,541,700 (10,310,381 ) 5,146,849 Noncontrolling interests not subject to put provisions — — 518,316 (318,249 ) 200,067 Total equity 5,146,849 8,768,681 2,060,016 (10,628,630 ) 5,346,916 Total liabilities and equity $ 14,548,902 $ 15,035,742 $ 4,035,057 $ (14,672,883 ) $ 18,946,818 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of December 31, 2014 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 698,876 $ 77,921 $ 188,444 $ — $ 965,241 Accounts receivable, net — 915,851 609,998 — 1,525,849 Other current assets 362,672 930,093 92,942 — 1,385,707 Total current assets 1,061,548 1,923,865 891,384 — 3,876,797 Property and equipment, net 195,690 1,473,188 800,221 — 2,469,099 Amortizable intangibles, net 85,338 1,811,218 52,942 — 1,949,498 Investments in subsidiaries 8,868,335 1,561,195 — (10,429,530 ) — Intercompany receivables 3,723,454 — 564,241 (4,287,695 ) — Other long-term assets and investments 70,309 60,385 101,332 — 232,026 Goodwill — 7,958,221 1,457,074 — 9,415,295 Total assets $ 14,004,674 $ 14,788,072 $ 3,867,194 $ (14,717,225 ) $ 17,942,715 Current liabilities $ 180,977 $ 1,493,243 $ 414,432 $ — $ 2,088,652 Intercompany payables — 3,105,173 1,182,522 (4,287,695 ) — Long-term debt and other long-term liabilities 8,124,863 1,321,321 217,603 — 9,663,787 Noncontrolling interests subject to put provisions 528,321 — — 301,644 829,965 Total DaVita HealthCare Partners Inc. shareholders’ equity 5,170,513 8,868,335 1,561,195 (10,429,530 ) 5,170,513 Noncontrolling interests not subject to put provisions — — 491,442 (301,644 ) 189,798 Total equity 5,170,513 8,868,335 2,052,637 (10,731,174 ) 5,360,311 Total liabilities and equity $ 14,004,674 $ 14,788,072 $ 3,867,194 $ (14,717,225 ) $ 17,942,715 |
Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2015 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net income $ 59,860 $ 33,828 $ 197,471 $ (159,530 ) $ 131,629 Changes in operating assets and liabilities and non-cash items included in net income (117,778 ) 215,135 53,015 159,530 309,902 Net cash (used in) provided by operating activities (57,918 ) 248,963 250,486 — 441,531 Cash flows from investing activities: Additions of property and equipment, net (21,179 ) (147,637 ) (122,057 ) — (290,873 ) Acquisitions — (44,740 ) (319 ) — (45,059 ) Proceeds from asset and business sales — 3,415 — — 3,415 Purchases/proceeds from investment sales and other items (604,922 ) (833 ) (9,065 ) — (614,820 ) Net cash used in investing activities (626,101 ) (189,795 ) (131,441 ) — (947,337 ) Cash flows from financing activities: Long-term debt and related financing costs, net 682,510 (7,922 ) (6,596 ) — 667,992 Intercompany borrowing 108,911 (60,132 ) (48,779 ) — — Other items (121,059 ) (10,840 ) (61,000 ) — (192,899 ) Net cash provided by (used in) financing activities 670,362 (78,894 ) (116,375 ) — 475,093 Effect of exchange rate changes on cash — — (793 ) — (793 ) Net increase (decrease) in cash and cash equivalents (13,657 ) (19,726 ) 1,877 — (31,506 ) Cash and cash equivalents at beginning of period 698,876 77,921 188,444 — 965,241 Cash and cash equivalents at end of period $ 685,219 $ 58,195 $ 190,321 $ — $ 933,735 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2014 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net income $ 330,972 $ 330,339 $ 241,616 $ (509,769 ) $ 393,158 Changes in operating assets and liabilities and non-cash items included in net income (191,299 ) 6,934 (37,064 ) 509,769 288,340 Net cash provided by operating activities 139,673 337,273 204,552 — 681,498 Cash flows from investing activities: Additions of property and equipment, net (25,377 ) (123,519 ) (129,697 ) (278,593 ) Acquisitions — (97,057 ) (1,385 ) (98,442 ) Proceeds from asset sales — 215 — 215 Purchases of investments and other items (58,496 ) (5,263 ) (2,276 ) (66,035 ) Net cash used in investing activities (83,873 ) (225,624 ) (133,358 ) — (442,855 ) Cash flows from financing activities: Long-term debt and related financing costs, net 353,406 (7,158 ) 2,188 348,436 Intercompany borrowing 139,052 (113,906 ) (25,146 ) — Other items (69,425 ) (4,810 ) (37,553 ) (111,788 ) Net cash provided by (used in) financing activities 423,033 (125,874 ) (60,511 ) — 236,648 Effect of exchange rate changes on cash (567 ) (567 ) Net increase (decrease) in cash and cash equivalents 478,833 (14,225 ) 10,116 474,724 Cash and cash equivalents at beginning of period 602,188 151,454 192,607 946,249 Cash and cash equivalents at end of period $ 1,081,021 $ 137,229 $ 202,723 $ — $ 1,420,973 |
Supplemental data (Tables)
Supplemental data (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Statements Captions [Line Items] | |
Consolidating Statements of Income | Condensed Consolidating Statements of Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2015 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,663,352 $ 735,456 $ (35,229 ) $ 2,363,579 Less: Provision for uncollectible accounts — (70,245 ) (35,720 ) — (105,965 ) Net patient service revenues — 1,593,107 699,736 (35,229 ) 2,257,614 Capitated revenues — 439,734 426,542 (86 ) 866,190 Other revenues 189,586 468,821 7,366 (354,959 ) 310,814 Total net revenues 189,586 2,501,662 1,133,644 (390,274 ) 3,434,618 Operating expenses 128,643 2,200,706 1,014,995 (390,274 ) 2,954,070 Operating income 60,943 300,956 118,649 — 480,548 Debt expense, including debt refinancing charges (150,105 ) (85,119 ) (11,480 ) 94,384 (152,320 ) Other income 91,000 4,348 1,347 (94,384 ) 2,311 Income tax expense (1,667 ) 133,859 (9,430 ) — 122,762 Equity earnings in subsidiaries 166,972 80,646 — (247,618 ) — Net income 170,477 166,972 117,946 (247,618 ) 207,777 Less: Net income attributable to noncontrolling interests — — — (37,300 ) (37,300 ) Net income attributable to DaVita HealthCare Partners Inc. $ 170,477 $ 166,972 $ 117,946 $ (284,918 ) $ 170,477 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2014 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,517,267 $ 697,325 $ (27,343 ) $ 2,187,249 Less: Provision for uncollectible accounts — (57,281 ) (30,771 ) — (88,052 ) Net patient service revenues — 1,459,986 666,554 (27,343 ) 2,099,197 Capitated revenues — 414,366 385,029 (26 ) 799,369 Other revenues 181,199 424,755 6,699 (338,730 ) 273,923 Total net revenues 181,199 2,299,107 1,058,282 (366,099 ) 3,172,489 Operating expenses 122,815 2,033,826 897,652 (366,099 ) 2,688,194 Operating income 58,384 265,281 160,630 — 484,295 Debt expense (202,258 ) (97,382 ) (10,180 ) 106,140 (203,680 ) Other income 99,532 7,379 922 (106,140 ) 1,693 Income tax expense (17,958 ) 111,415 7,430 — 100,887 Equity earnings in subsidiaries 174,067 110,204 — (284,271 ) — Net income 147,683 174,067 143,942 (284,271 ) 181,421 Less: Net income attributable to noncontrolling interests — — — (33,738 ) (33,738 ) Net income attributable to DaVita HealthCare Partners Inc. $ 147,683 $ 174,067 $ 143,942 $ (318,009 ) $ 147,683 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2015 Partners Inc. subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 3,245,311 $ 1,459,299 $ (69,216 ) $ 4,635,394 Less: Provision for uncollectible accounts — (134,322 ) (70,807 ) — (205,129 ) Net patient service revenues — 3,110,989 1,388,492 (69,216 ) 4,430,265 Capitated revenues — 887,072 829,666 (33 ) 1,716,705 Other revenues 357,851 879,849 13,678 (675,765 ) 575,613 Total net revenues 357,851 4,877,910 2,231,836 (745,014 ) 6,722,583 Operating expenses 252,412 4,798,659 2,000,134 (745,014 ) 6,306,191 Operating income 105,439 79,251 231,702 — 416,392 Debt expense, including debt refinancing charges (245,583 ) (170,902 ) (20,766 ) 187,539 (249,712 ) Other income 182,023 4,401 2,893 (187,539 ) 1,778 Income tax expense 15,847 4,624 16,358 — 36,829 Equity earnings in subsidiaries 33,828 125,702 — (159,530 ) — Net income 59,860 33,828 197,471 (159,530 ) 131,629 Less: Net income attributable to noncontrolling interests — — — (71,769 ) (71,769 ) Net income attributable to DaVita HealthCare Partners Inc. $ 59,860 $ 33,828 $ 197,471 $ (231,299 ) $ 59,860 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2014 Partners Inc. subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 3,030,545 $ 1,324,264 $ (53,462 ) $ 4,301,347 Less: Provision for uncollectible accounts — (107,160 ) (64,089 ) — (171,249 ) Net patient service revenues — 2,923,385 1,260,175 (53,462 ) 4,130,098 Capitated revenues — 818,913 768,428 (407 ) 1,586,934 Other revenues 344,242 818,310 11,408 (675,727 ) 498,233 Total net revenues 344,242 4,560,608 2,040,011 (729,596 ) 6,215,265 Operating expenses 235,112 4,014,282 1,769,947 (729,596 ) 5,289,745 Operating income 109,130 546,326 270,064 — 925,520 Debt expense (307,541 ) (188,806 ) (19,932 ) 206,264 (310,015 ) Other income (expense) 199,475 8,935 1,245 (206,264 ) 3,391 Income tax expense 431 215,546 9,761 — 225,738 Equity earnings in subsidiaries 330,339 179,430 — (509,769 ) — Net income 330,972 330,339 241,616 (509,769 ) 393,158 Less: Net income attributable to noncontrolling interests — — — (62,186 ) (62,186 ) Net income attributable to DaVita HealthCare Partners Inc. $ 330,972 $ 330,339 $ 241,616 $ (571,955 ) $ 330,972 |
Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2015 Partners subsidiaries subsidiaries adjustments total Net income $ 170,477 $ 166,972 $ 117,946 $ (247,618 ) $ 207,777 Other comprehensive loss (1,779 ) — 5,025 — 3,246 Total comprehensive income 168,698 166,972 122,971 (247,618 ) 211,023 Less: comprehensive income attributable to the noncontrolling interests — — — (37,300 ) (37,300 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 168,698 $ 166,972 $ 122,971 $ (284,918 ) $ 173,723 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended June 30, 2014 Partners subsidiaries subsidiaries adjustments total Net income $ 147,683 $ 174,067 $ 143,942 $ (284,271 ) $ 181,421 Other comprehensive income 366 — 1,939 — 2,305 Total comprehensive income 148,049 174,067 145,881 (284,271 ) 183,726 Less: comprehensive income attributable to the noncontrolling interests — — — (33,738 ) (33,738 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 148,049 $ 174,067 $ 145,881 $ (318,009 ) $ 149,988 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2015 Partners Inc. subsidiaries subsidiaries adjustments total Net income $ 59,860 $ 33,828 $ 197,471 $ (159,530 ) $ 131,629 Other comprehensive loss (6,502 ) — (12,860 ) — (19,362 ) Total comprehensive income 53,358 33,828 184,611 (159,530 ) 112,267 Less: comprehensive income attributable to the noncontrolling interests — — — (71,769 ) (71,769 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 53,358 $ 33,828 $ 184,611 $ (231,299 ) $ 40,498 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2014 Partners Inc. subsidiaries subsidiaries adjustments total Net income $ 330,972 $ 330,339 $ 241,616 $ (509,769 ) $ 393,158 Other comprehensive income 1,344 — 1,967 — 3,311 Total comprehensive income 332,316 330,339 243,583 (509,769 ) 396,469 Less: comprehensive income attributable to the noncontrolling interests — — — (62,186 ) (62,186 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 332,316 $ 330,339 $ 243,583 $ (571,955 ) $ 334,283 |
Consolidating Balance Sheets | Condensed Consolidating Balance Sheets DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of June 30, 2015 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 685,219 $ 58,195 $ 190,321 $ — $ 933,735 Accounts receivable, net — 995,284 671,685 — 1,666,969 Other current assets 964,057 1,093,115 123,045 — 2,180,217 Total current assets 1,649,276 2,146,594 985,051 — 4,780,921 Property and equipment, net 196,905 1,499,888 867,915 — 2,564,708 Amortizable intangibles, net 89,029 1,732,254 47,149 — 1,868,432 Investments in subsidiaries 8,768,681 1,541,700 — (10,310,381 ) — Intercompany receivables 3,783,559 — 578,943 (4,362,502 ) — Other long-term assets and investments 61,452 110,611 109,748 — 281,811 Goodwill — 8,004,695 1,446,251 — 9,450,946 Total assets $ 14,548,902 $ 15,035,742 $ 4,035,057 $ (14,672,883 ) $ 18,946,818 Current liabilities 38,757 1,808,645 486,888 — 2,334,290 Intercompany payables — 3,110,636 1,251,866 (4,362,502 ) — Long-term debt and other long-term liabilities 8,818,419 1,347,780 236,287 — 10,402,486 Noncontrolling interests subject to put provisions 544,877 — — 318,249 863,126 Total DaVita HealthCare Partners Inc. shareholders’ equity 5,146,849 8,768,681 1,541,700 (10,310,381 ) 5,146,849 Noncontrolling interests not subject to put provisions — — 518,316 (318,249 ) 200,067 Total equity 5,146,849 8,768,681 2,060,016 (10,628,630 ) 5,346,916 Total liabilities and equity $ 14,548,902 $ 15,035,742 $ 4,035,057 $ (14,672,883 ) $ 18,946,818 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of December 31, 2014 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 698,876 $ 77,921 $ 188,444 $ — $ 965,241 Accounts receivable, net — 915,851 609,998 — 1,525,849 Other current assets 362,672 930,093 92,942 — 1,385,707 Total current assets 1,061,548 1,923,865 891,384 — 3,876,797 Property and equipment, net 195,690 1,473,188 800,221 — 2,469,099 Amortizable intangibles, net 85,338 1,811,218 52,942 — 1,949,498 Investments in subsidiaries 8,868,335 1,561,195 — (10,429,530 ) — Intercompany receivables 3,723,454 — 564,241 (4,287,695 ) — Other long-term assets and investments 70,309 60,385 101,332 — 232,026 Goodwill — 7,958,221 1,457,074 — 9,415,295 Total assets $ 14,004,674 $ 14,788,072 $ 3,867,194 $ (14,717,225 ) $ 17,942,715 Current liabilities $ 180,977 $ 1,493,243 $ 414,432 $ — $ 2,088,652 Intercompany payables — 3,105,173 1,182,522 (4,287,695 ) — Long-term debt and other long-term liabilities 8,124,863 1,321,321 217,603 — 9,663,787 Noncontrolling interests subject to put provisions 528,321 — — 301,644 829,965 Total DaVita HealthCare Partners Inc. shareholders’ equity 5,170,513 8,868,335 1,561,195 (10,429,530 ) 5,170,513 Noncontrolling interests not subject to put provisions — — 491,442 (301,644 ) 189,798 Total equity 5,170,513 8,868,335 2,052,637 (10,731,174 ) 5,360,311 Total liabilities and equity $ 14,004,674 $ 14,788,072 $ 3,867,194 $ (14,717,225 ) $ 17,942,715 |
Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2015 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net income $ 59,860 $ 33,828 $ 197,471 $ (159,530 ) $ 131,629 Changes in operating assets and liabilities and non-cash items included in net income (117,778 ) 215,135 53,015 159,530 309,902 Net cash (used in) provided by operating activities (57,918 ) 248,963 250,486 — 441,531 Cash flows from investing activities: Additions of property and equipment, net (21,179 ) (147,637 ) (122,057 ) — (290,873 ) Acquisitions — (44,740 ) (319 ) — (45,059 ) Proceeds from asset and business sales — 3,415 — — 3,415 Purchases/proceeds from investment sales and other items (604,922 ) (833 ) (9,065 ) — (614,820 ) Net cash used in investing activities (626,101 ) (189,795 ) (131,441 ) — (947,337 ) Cash flows from financing activities: Long-term debt and related financing costs, net 682,510 (7,922 ) (6,596 ) — 667,992 Intercompany borrowing 108,911 (60,132 ) (48,779 ) — — Other items (121,059 ) (10,840 ) (61,000 ) — (192,899 ) Net cash provided by (used in) financing activities 670,362 (78,894 ) (116,375 ) — 475,093 Effect of exchange rate changes on cash — — (793 ) — (793 ) Net increase (decrease) in cash and cash equivalents (13,657 ) (19,726 ) 1,877 — (31,506 ) Cash and cash equivalents at beginning of period 698,876 77,921 188,444 — 965,241 Cash and cash equivalents at end of period $ 685,219 $ 58,195 $ 190,321 $ — $ 933,735 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the six months ended June 30, 2014 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net income $ 330,972 $ 330,339 $ 241,616 $ (509,769 ) $ 393,158 Changes in operating assets and liabilities and non-cash items included in net income (191,299 ) 6,934 (37,064 ) 509,769 288,340 Net cash provided by operating activities 139,673 337,273 204,552 — 681,498 Cash flows from investing activities: Additions of property and equipment, net (25,377 ) (123,519 ) (129,697 ) (278,593 ) Acquisitions — (97,057 ) (1,385 ) (98,442 ) Proceeds from asset sales — 215 — 215 Purchases of investments and other items (58,496 ) (5,263 ) (2,276 ) (66,035 ) Net cash used in investing activities (83,873 ) (225,624 ) (133,358 ) — (442,855 ) Cash flows from financing activities: Long-term debt and related financing costs, net 353,406 (7,158 ) 2,188 348,436 Intercompany borrowing 139,052 (113,906 ) (25,146 ) — Other items (69,425 ) (4,810 ) (37,553 ) (111,788 ) Net cash provided by (used in) financing activities 423,033 (125,874 ) (60,511 ) — 236,648 Effect of exchange rate changes on cash (567 ) (567 ) Net increase (decrease) in cash and cash equivalents 478,833 (14,225 ) 10,116 474,724 Cash and cash equivalents at beginning of period 602,188 151,454 192,607 946,249 Cash and cash equivalents at end of period $ 1,081,021 $ 137,229 $ 202,723 $ — $ 1,420,973 |
Additional Reporting Entities | |
Condensed Financial Statements Captions [Line Items] | |
Consolidating Statements of Income | Condensed Consolidating Statements of Income Company and Consolidated Physician Unrestricted Restricted For the six months ended June 30, 2015 Total Groups Subsidiaries Subsidiaries (1) Patient service operating revenues $ 4,635,394 $ 64,317 $ — $ 4,571,077 Less: Provision for uncollectible accounts (205,129 ) (2,182 ) — (202,947 ) Net patient service operating revenues 4,430,265 62,135 — 4,368,130 Capitated revenues 1,716,705 792,553 — 924,152 Other revenues 575,613 2,665 — 572,948 Total net operating revenues 6,722,583 857,353 — 5,865,230 Operating expenses 6,306,191 836,784 (327 ) 5,469,734 Operating income 416,392 20,569 327 395,496 Debt expense, including refinancing charges (249,712 ) (4,922 ) — (244,790 ) Other (loss) income 1,778 159 — 1,619 Income tax expense 36,829 1,569 131 35,129 Net income 131,629 14,237 196 117,196 Less: Net income attributable to noncontrolling interests (71,769 ) — — (71,769 ) Net income attributable to DaVita HealthCare Partners Inc. $ 59,860 $ 14,237 $ 196 $ 45,427 (1) After the elimination of the unrestricted subsidiaries and the physician groups |
Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income Company and Consolidated Physician Unrestricted Restricted For the six months ended June 30, 2015 Total Groups Subsidiaries Subsidiaries (1) Net income $ 131,629 $ 14,237 $ 196 $ 117,196 Other comprehensive loss (19,362 ) — — (19,362 ) Total comprehensive income 112,267 14,237 196 97,834 Less: comprehensive income attributable to the noncontrolling interests (71,769 ) — — (71,769 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 40,498 $ 14,237 $ 196 $ 26,065 (1) After the elimination of the unrestricted subsidiaries and the physician groups |
Consolidating Balance Sheets | Condensed Consolidating Balance Sheets Company and Consolidated Physician Unrestricted Restricted As of June 30, 2015 Total Groups Subsidiaries Subsidiaries (1) Cash and cash equivalents $ 933,735 $ 97,209 $ — $ 836,526 Accounts receivable, net 1,666,969 290,827 — 1,376,142 Other current assets 2,180,217 13,465 — 2,166,752 Total current assets 4,780,921 401,501 — 4,379,420 Property and equipment, net 2,564,708 2,027 — 2,562,681 Amortizable intangibles, net 1,868,432 6,498 — 1,861,934 Other long-term assets 281,811 71,044 3,137 207,630 Goodwill 9,450,946 15,967 — 9,434,979 Total assets $ 18,946,818 $ 497,037 $ 3,137 $ 18,446,644 Current liabilities $ 2,334,290 $ 236,714 $ — $ 2,097,576 Payables to parent — 173,682 3,137 (176,819 ) Long-term debt and other long-term liabilities 10,402,486 55,492 — 10,346,994 Noncontrolling interests subject to put provisions 863,126 — — 863,126 Total DaVita HealthCare Partners Inc. shareholders’ equity 5,146,849 31,149 — 5,115,700 Noncontrolling interests not subject to put provisions 200,067 — — 200,067 Shareholders’ equity 5,346,916 31,149 — 5,315,767 Total liabilities and shareholder’s equity $ 18,946,818 $ 497,037 $ 3,137 $ 18,446,644 (1) After the elimination of the unrestricted subsidiaries and the physician groups |
Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Company and Consolidated Physician Unrestricted Restricted For the six months ended June 30, 2015 Total Groups Subsidiaries Subsidiaries (1) Cash flows from operating activities: Net income $ 131,629 $ 14,237 $ 196 $ 117,196 Changes in operating and intercompany assets and liabilities and non-cash items included in net income 309,902 (19,648 ) (196 ) 329,746 Net cash provided by (used in) operating activities 441,531 (5,411 ) — 446,942 Cash flows from investing activities: Additions of property and equipment (290,873 ) (24 ) — (290,849 ) Acquisitions and divestitures, net (45,059 ) — — (45,059 ) Proceeds from discontinued operations 3,415 — — 3,415 Investments and other items (614,820 ) (1,581 ) — (613,239 ) Net cash used in investing activities (947,337 ) (1,605 ) — (945,732 ) Cash flows from financing activities: Long-term debt 667,992 — — 667,992 Intercompany — (8,223 ) — 8,223 Other items (192,899 ) — — (192,899 ) Net cash used in by financing activities 475,093 (8,223 ) — 483,316 Effect of exchange rate changes on cash (793 ) — — (793 ) Net increase (decrease) in cash (31,506 ) (15,239 ) — (16,267 ) Cash and cash equivalents at beginning of period 965,241 112,448 — 852,793 Cash and cash equivalents at end of period $ 933,735 $ 97,209 $ — $ 836,526 (1) After the elimination of the unrestricted subsidiaries and the physician groups |
Reconciliations of Numerators a
Reconciliations of Numerators and Denominators Used to Calculate Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Basic: | |||||
Net income attributable to DaVita HealthCare Partners Inc. | $ 170,477 | $ 147,683 | $ 59,860 | $ 330,972 | |
Weighted average shares outstanding during the period | 215,186,000 | 214,451,000 | 215,382,000 | 214,010,000 | |
Vested stock units | 2,000 | 2,000 | |||
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 | 212,991,606 | 212,258,994 | 213,188,268 | 211,817,893 | |
Basic net income per share attributable to DaVita HealthCare Partners Inc. | $ 0.80 | $ 0.70 | $ 0.28 | $ 1.56 | |
Diluted: | |||||
Net income attributable to DaVita HealthCare Partners Inc. | $ 170,477 | $ 147,683 | $ 59,860 | $ 330,972 | |
Weighted average shares outstanding during the period | 215,186,000 | 214,451,000 | 215,382,000 | 214,010,000 | |
Vested stock units | 2,000 | 2,000 | |||
Assumed incremental shares from stock plans | 2,420,000 | 2,268,000 | 2,409,000 | 2,409,000 | |
Weighted average shares for diluted earnings per share calculation | 217,606,198 | 216,720,944 | 217,790,617 | 216,420,713 | |
Diluted net income per share attributable to DaVita HealthCare Partners Inc. | $ 0.78 | $ 0.68 | $ 0.27 | $ 1.53 | |
Anti-dilutive potential common shares excluded from calculation | [1] | 691,000 | 990,000 | 1,046,000 | 1,995,000 |
[1] | (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 - Additiona
Accounts Receivable - Additional Information (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Accounts Notes And Loans 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 | 3 months |
Increase in allowance for doubtful accounts | $ 23,123 |
Government-based Programs, Medicare and Medicaid | Accounts Receivable | |
Accounts Notes And Loans Receivable [Line Items] | |
Percentage of accounts receivable due | 80.00% |
Health Care Patient | Accounts Receivable | |
Accounts Notes And Loans Receivable [Line Items] | |
Percentage of accounts receivable due | 1.00% |
Investments (Detail)
Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investment Holdings [Line Items] | ||
Held to maturity | $ 940,589 | $ 335,975 |
Available for sale | 31,238 | 28,123 |
Total | 971,827 | 364,098 |
Held to maturity, short-term investments | 940,589 | 335,975 |
Available for sale, short-term investments | 1,552 | 1,424 |
Total, short-term investments | 942,141 | 337,399 |
Available for sale, long-term investments | 29,686 | 26,699 |
Total, long-term investments | 29,686 | 26,699 |
Certificates of deposit and money market funds | ||
Investment Holdings [Line Items] | ||
Held to maturity | 940,589 | 335,975 |
Total | 940,589 | 335,975 |
Investments in mutual funds and common stock | ||
Investment Holdings [Line Items] | ||
Available for sale, equity securities | 31,238 | 28,123 |
Total | $ 31,238 | $ 28,123 |
Investments in Debt and Equit45
Investments in Debt and Equity Securities and Other Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Investment Holdings [Line Items] | |||||
Available for sale investments gross pre-tax unrealized gain (loss) | $ 5,358 | $ 5,358 | $ 5,181 | ||
Unrealized gain (loss) on investments, net of tax | (99) | $ 578 | 283 | $ 909 | |
Proceeds from sale of investments available for sale | 385 | 1,277 | |||
Pre tax reclassification of net investment realized gain (loss) into net income | 284 | 340 | |||
Reclassification of net investment realized gain (loss) into net income, net of tax | 16 | 173 | $ 207 | ||
HealthCare Partners (HCP) | |||||
Investment Holdings [Line Items] | |||||
Required minimum cash balance | 54,200 | 54,200 | |||
Preferred Stock | |||||
Investment Holdings [Line Items] | |||||
Preferred stock, in a privately held company | $ 5,000 | 5,000 | |||
Certificates of deposit and money market funds | |||||
Investment Holdings [Line Items] | |||||
Unrealized gain (loss) on investments, pre tax | 461 | ||||
Unrealized gain (loss) on investments, net of tax | $ 283 |
Changes in Goodwill by Reportab
Changes in Goodwill by Reportable Segments (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Beginning balance | $ 9,415,295 | $ 9,212,974 |
Acquisitions | 51,075 | 221,514 |
Divestitures | (446) | (1,851) |
Foreign currency and other adjustments | (14,978) | (17,342) |
Ending balance | 9,450,946 | 9,415,295 |
U.S. dialysis and related lab services | ||
Goodwill [Line Items] | ||
Beginning balance | $ 5,610,643 | 5,469,473 |
Acquisitions | 143,021 | |
Divestitures | (1,851) | |
Ending balance | $ 5,610,643 | 5,610,643 |
HealthCare Partners (HCP) | ||
Goodwill [Line Items] | ||
Beginning balance | 3,562,534 | 3,516,162 |
Acquisitions | 24,302 | 48,649 |
Divestitures | (446) | |
Foreign currency and other adjustments | (2,277) | |
Ending balance | 3,586,390 | 3,562,534 |
Other-Ancillary services and strategic initiatives | ||
Goodwill [Line Items] | ||
Beginning balance | 242,118 | 227,339 |
Acquisitions | 26,773 | 29,844 |
Foreign currency and other adjustments | (14,978) | (15,065) |
Ending balance | $ 253,913 | $ 242,118 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) | 6 Months Ended | ||
Jun. 30, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Goodwill [Line Items] | |||
Goodwill | $ 9,450,946,000 | $ 9,415,295,000 | $ 9,212,974,000 |
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 1.8%, 1.9% and 2.0%, 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 4.2%, 3.1% and 3.6%, respectively. | ||
Pre-tax goodwill impairment charge | $ 0 | ||
HealthCare Partners (HCP) | |||
Goodwill [Line Items] | |||
Number of reporting units | Segment | 3 | ||
Goodwill | $ 3,586,390,000 | $ 3,562,534,000 | $ 3,516,162,000 |
HealthCare Partners (HCP) | Long-term Reduction of 3% Percent Operating Income | |||
Goodwill [Line Items] | |||
Decrease in operating income percentage used for assessment of fair values | 3.00% | ||
HealthCare Partners (HCP) | Increase In Discount Rates By 100 Basis Points | |||
Goodwill [Line Items] | |||
Increase in discount rates used for assessment of fair values | 1.00% | ||
HealthCare Partners (HCP) | California | |||
Goodwill [Line Items] | |||
Goodwill | $ 2,518,569,000 | ||
Percentage of Fair value in excess of carrying amount | 9.90% | ||
HealthCare Partners (HCP) | California | Long-term Reduction of 3% Percent Operating Income | |||
Goodwill [Line Items] | |||
Percentage of Fair value in excess of carrying amount | (1.80%) | ||
HealthCare Partners (HCP) | California | Increase In Discount Rates By 100 Basis Points | |||
Goodwill [Line Items] | |||
Percentage of Fair value in excess of carrying amount | (4.20%) | ||
HealthCare Partners (HCP) | Nevada | |||
Goodwill [Line Items] | |||
Goodwill | $ 517,618,000 | ||
Percentage of Fair value in excess of carrying amount | 7.40% | ||
HealthCare Partners (HCP) | Nevada | Long-term Reduction of 3% Percent Operating Income | |||
Goodwill [Line Items] | |||
Percentage of Fair value in excess of carrying amount | (1.90%) | ||
HealthCare Partners (HCP) | Nevada | Increase In Discount Rates By 100 Basis Points | |||
Goodwill [Line Items] | |||
Percentage of Fair value in excess of carrying amount | (3.10%) | ||
HealthCare Partners (HCP) | New Mexico | |||
Goodwill [Line Items] | |||
Goodwill | $ 71,684,000 | ||
Percentage of Fair value in excess of carrying amount | 2.00% | ||
HealthCare Partners (HCP) | New Mexico | Long-term Reduction of 3% Percent Operating Income | |||
Goodwill [Line Items] | |||
Percentage of Fair value in excess of carrying amount | (2.00%) | ||
HealthCare Partners (HCP) | New Mexico | Increase In Discount Rates By 100 Basis Points | |||
Goodwill [Line Items] | |||
Percentage of Fair value in excess of carrying amount | (3.60%) |
Components of Changes in Health
Components of Changes in Health Care Costs Payable (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Medical Expense And Medical Claims Payable [Line Items] | |
Health care costs payable, beginning of the period | $ 314,347 |
Less: Claims paid | |
Health care costs payable, end of the period | 339,932 |
Healthcare Cost | |
Medical Expense And Medical Claims Payable [Line Items] | |
Health care costs payable, beginning of the period | 214,405 |
Add: Components of incurred health care costs | |
Current year | 783,602 |
Prior years | 838 |
Total incurred health care costs | 784,440 |
Less: Claims paid | |
Current year | 623,940 |
Prior years | 191,765 |
Total claims paid | 815,705 |
Health care costs payable, end of the period | $ 183,140 |
Health Care Costs Payable - Add
Health Care Costs Payable - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Health Care Organizations [Abstract] | |
Increase (decrease) in prior year estimates of health care costs payable | $ 838 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Liability for unrecognized tax benefits which would impact effective tax rate if recognized | $ 34,879 | |
Increase in liability for unrecognized tax benefits | 3,002 | |
Liability for unrecognized tax benefits | $ 31,877 | |
Accrued interest and penalties related to unrecognized tax benefits, net of federal tax benefits | $ 10,337 | $ 10,123 |
Long Term Debt (Detail)
Long Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Senior notes | $ 4,500,000 | $ 3,775,000 |
Acquisition obligations and other notes payable | 62,641 | 69,045 |
Capital lease obligations | 247,128 | 218,097 |
Total debt principal outstanding | 9,224,769 | 8,519,642 |
Discount on long-term debt | (14,922) | (16,208) |
Carrying Amount of Long-Term Debt, Net of Unamortized Discount or Premium, Current and Noncurrent, Total | 9,209,847 | 8,503,434 |
Less current portion | (108,795) | (120,154) |
Long-term debt | 9,101,052 | 8,383,280 |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Senior Secured Credit Facilities | 950,000 | 975,000 |
Term Loan B | ||
Debt Instrument [Line Items] | ||
Senior Secured Credit Facilities | $ 3,465,000 | $ 3,482,500 |
Scheduled Maturities of Long-te
Scheduled Maturities of Long-term Debt (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
2015 (remainder of the year) | $ 56,484 |
2,016 | 119,993 |
2,017 | 149,031 |
2,018 | 159,637 |
2,019 | 734,147 |
2,020 | 57,876 |
Thereafter | $ 7,947,601 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | |||||
Unrealized loss on interest rate swap and cap agreements | $ (2,453,000) | $ (5,209,000) | $ (8,213,000) | $ (7,714,000) | |
Weighted average effective interest rate | 4.38% | 4.38% | |||
Weighted average effective interest rate | 4.42% | ||||
Outstanding letters of credit | $ 3,000,000 | $ 3,000,000 | |||
Secured by Certificate of Deposit | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 1,000,000 | 1,000,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Undrawn revolving credit facilities | 1,000,000,000 | 1,000,000,000 | |||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 93,000,000 | $ 93,000,000 | |||
Interest rate cap agreements | |||||
Debt Instrument [Line Items] | |||||
Derivative, expiration date | Jun. 30, 2018 | ||||
Interest rate agreements, notional amount | 3,500,000,000 | $ 3,500,000,000 | |||
Fair value of assets | $ 3,973,000 | 3,973,000 | |||
Unrealized loss on interest rate swap and cap agreements | $ (8,367,000) | ||||
Interest rate cap agreements | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
LIBOR cap rate | 3.50% | 3.50% | |||
Senior Notes 5.0 Percent Due 2025 | |||||
Debt Instrument [Line Items] | |||||
Senior notes, principal balance | $ 1,500,000,000 | ||||
Senior notes, interest rate | 5.00% | ||||
Senior notes, due date | 2,025 | ||||
Debt Instrument, frequency of periodic payment | The 5.0% Senior Notes pay interest on May 1 and November 1 | ||||
Senior notes interest payment, first required payment date | Nov. 1, 2015 | ||||
Debt instrument, redemption description | The Company may redeem up to 35% of the 5.0% Senior Notes at any time prior to May 1, 2018 at a certain specified price from the proceeds of one or more equity offerings. In addition, the Company may redeem some or all of the 5.0% Senior Notes at any time prior to May 1, 2020 at make whole redemption prices and on or after such date at certain specified redemption prices. | ||||
Senior Notes 6.625 Percent | |||||
Debt Instrument [Line Items] | |||||
Senior notes, principal balance | $ 775,000,000 | ||||
Senior notes, interest rate | 6.625% | ||||
Debt redemption and refinance charges | $ 48,072,000 | ||||
Maximum | Senior Notes 5.0 Percent Due 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, redemption price percentage | 35.00% | ||||
Senior Notes Redemption Period One | Senior Notes 5.0 Percent Due 2025 | |||||
Debt Instrument [Line Items] | |||||
End date of debt instrument redemption period | May 1, 2018 | ||||
Senior Notes Redemption Period Two | Senior Notes 5.0 Percent Due 2025 | |||||
Debt Instrument [Line Items] | |||||
End date of debt instrument redemption period | May 1, 2020 | ||||
Term Loan A | |||||
Debt Instrument [Line Items] | |||||
Principal payments under Senior Secured Credit Facilities | $ 25,000,000 | ||||
Term Loan A | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable interest rate margin | 1.75% | ||||
Term Loan A | Interest rate swap agreements | |||||
Debt Instrument [Line Items] | |||||
Interest rate agreements, notional amount | $ 807,500,000 | $ 807,500,000 | |||
Weighted average effective interest rate | 2.26% | 2.26% | |||
Debt instrument, variable interest rate margin | 1.75% | ||||
Derivative, expiration date | Sep. 30, 2016 | ||||
Debt expense recognized | $ 1,406,000 | ||||
Fair value of liability, net | $ (440,000) | (440,000) | |||
Other comprehensive income unrealized gain loss on swaps arising during period net of tax | 3,670,000 | ||||
Unrealized pre-tax losses in other comprehensive income | $ (1,131,000) | ||||
Term Loan A | Interest rate swap agreements | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate, lower limit | 0.49% | 0.49% | |||
Fixed interest rate, upper limit | 0.52% | 0.52% | |||
Term Loan A | Interest rate swap agreements | Not Designated as Hedging Instrument | |||||
Debt Instrument [Line Items] | |||||
Interest rate agreements, notional amount | $ 142,500,000 | $ 142,500,000 | |||
Debt instrument, variable interest rate margin | 1.75% | ||||
Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Principal payments under Senior Secured Credit Facilities | $ 17,500,000 | ||||
Term Loan B | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable interest rate margin | 2.75% | ||||
Term Loan B | Interest rate cap agreements | |||||
Debt Instrument [Line Items] | |||||
Derivative, expiration date | Sep. 30, 2016 | ||||
Debt expense recognized | $ 1,220,000 | ||||
Interest rate agreements, notional amount | 2,735,000,000 | 2,735,000,000 | |||
Fair value of assets | $ 155,000 | 155,000 | |||
Unrealized loss on interest rate swap and cap agreements | $ (1,439,000) | ||||
Term Loan B | Interest rate cap agreements | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
LIBOR cap rate | 2.50% | 2.50% | |||
Senior Secured Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Weighted average effective interest rate | 3.44% | 3.44% |
Derivative Instruments (Detail)
Derivative Instruments (Detail) - Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Interest rate swap agreements | Other short-term liabilities | ||
Derivative [Line Items] | ||
Derivative liabilities, Fair value | $ 1,131 | $ 1,457 |
Interest rate swap agreements | Other long-term assets | ||
Derivative [Line Items] | ||
Derivative assets, Fair value | 691 | 3,281 |
Interest rate cap agreements | Other long-term assets | ||
Derivative [Line Items] | ||
Derivative assets, Fair value | $ 4,128 | $ 13,934 |
Effects of Interest Rate Swap a
Effects of Interest Rate Swap and Cap Agreements (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of gains (losses) recognized in OCI on interest rate swap and cap agreements | $ (2,453) | $ (5,209) | $ (8,213) | $ (7,714) |
Amount of losses reclassified from accumulated OCI into income | (789) | (4,997) | (1,601) | (8,356) |
Tax benefit | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of gains (losses) recognized in OCI on interest rate swap and cap agreements | 1,572 | 3,340 | 5,263 | 4,946 |
Amount of losses reclassified from accumulated OCI into income | 505 | 3,204 | 1,025 | 5,358 |
Interest rate swap agreements | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of gains (losses) recognized in OCI on interest rate swap and cap agreements | (976) | (5,022) | (3,670) | (7,786) |
Interest rate swap agreements | Debt Expense (Including Refinancing Charges) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of losses reclassified from accumulated OCI into income | (684) | (6,694) | (1,406) | (10,700) |
Interest rate cap agreements | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of gains (losses) recognized in OCI on interest rate swap and cap agreements | (3,049) | (3,527) | (9,806) | (4,874) |
Interest rate cap agreements | Debt Expense (Including Refinancing Charges) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of losses reclassified from accumulated OCI into income | $ (610) | $ (1,507) | $ (1,220) | $ (3,014) |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - Vainer Private Civil Suit $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Other Commitments [Line Items] | |
Litigation settlement amount | $ 450,000 |
Legal fees | $ 45,000 |
Noncontrolling Interests Subj57
Noncontrolling Interests Subject to Put Provisions and Other Commitments - Additional Information (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Other Commitments [Line Items] | |
Schedule of Joint ventures to dissolve | Certain consolidated joint ventures are contractually scheduled to dissolve after terms ranging from ten to fifty years. |
Minimum | |
Other Commitments [Line Items] | |
Scheduled dissolution term of joint ventures | 10 years |
Maximum | |
Other Commitments [Line Items] | |
Scheduled dissolution term of joint ventures | 50 years |
Commitments to provide operating capital | |
Other Commitments [Line Items] | |
Other potential commitments to provide operating capital to several dialysis centers | $ 1,000 |
Long-term Incentive Compensat58
Long-term Incentive Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long-term incentive program (LTIP) expense | $ 69,692 | $ 52,960 |
Stock-based compensation expense | 28,299 | 29,699 |
Estimated tax benefits recorded for stock-based compensation | 10,028 | 10,997 |
Unrecognized compensation cost related to outstanding LTIP awards | 161,079 | |
Unrecognized compensation cost related to nonvested stock-based compensation arrangements under equity compensation and stock purchase plans | $ 82,577 | |
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 | $ 28,040 | $ 42,110 |
Stock Appreciation Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock granted | 811 | |
Aggregate grant-date fair value | $ 14,888 | |
Weighted-average expected life (in years) | 4 years 1 month 6 days | |
Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock granted | 265 | |
Aggregate grant-date fair value | $ 21,432 | |
Weighted-average expected life (in years) | 3 years 2 months 12 days |
Share Repurchases - Additional
Share Repurchases - Additional information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Apr. 14, 2015 | Nov. 04, 2010 | |
Equity [Abstract] | |||
Purchase of treasury stock (in shares) | 1,067,000 | ||
Purchase of treasury stock | $ 84,113 | ||
Purchase of treasury stock, average price per share | $ 78.82 | ||
Share repurchase program, authorized amount | $ 725,944 | $ 274,056 | |
Share repurchase program, outstanding authorizations available for share repurchase | $ 1,000,000 |
Comprehensive Income (Detail)
Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (25,017) | |||
Ending balance | $ (44,379) | (44,379) | ||
Interest rate swaps and cap agreements | ||||
Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (6,743) | $ (1,490) | (1,795) | $ (2,344) |
Unrealized (losses) gains | (4,025) | (8,549) | (13,476) | (12,660) |
Related income tax benefit (expense) | 1,572 | 3,340 | 5,263 | 4,946 |
Unrealized (losses) gains net | (2,453) | (5,209) | (8,213) | (7,714) |
Reclassification from accumulated other comprehensive income into net income | 1,294 | 8,201 | 2,626 | 13,714 |
Related income tax (expense) benefit | (505) | (3,204) | (1,025) | (5,358) |
Reclassification from accumulated other comprehensive income into net income net of tax | 789 | 4,997 | 1,601 | 8,356 |
Ending balance | (8,407) | (1,702) | (8,407) | (1,702) |
Investment securities | ||||
Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 3,376 | 3,244 | 3,151 | 3,120 |
Unrealized (losses) gains | (83) | 875 | 461 | 1,405 |
Related income tax benefit (expense) | (16) | (297) | (178) | (496) |
Unrealized (losses) gains net | (99) | 578 | 283 | 909 |
Reclassification from accumulated other comprehensive income into net income | (27) | (284) | (340) | |
Related income tax (expense) benefit | 11 | 111 | 133 | |
Reclassification from accumulated other comprehensive income into net income net of tax | (16) | (173) | (207) | |
Ending balance | 3,261 | 3,822 | 3,261 | 3,822 |
Foreign currency translation adjustments | ||||
Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (44,258) | (3,393) | (26,373) | (3,421) |
Unrealized (losses) gains | 5,025 | 1,939 | (12,860) | 1,967 |
Unrealized (losses) gains net | 5,025 | 1,939 | (12,860) | 1,967 |
Ending balance | (39,233) | (1,454) | (39,233) | (1,454) |
Accumulated other comprehensive(loss) | ||||
Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (47,625) | (1,639) | (25,017) | (2,645) |
Unrealized (losses) gains | 917 | (5,736) | (25,875) | (9,289) |
Related income tax benefit (expense) | 1,556 | 3,044 | 5,085 | 4,451 |
Unrealized (losses) gains net | 2,473 | (2,692) | (20,790) | (4,838) |
Reclassification from accumulated other comprehensive income into net income | 1,267 | 8,201 | 2,342 | 13,374 |
Related income tax (expense) benefit | (494) | (3,204) | (914) | (5,225) |
Reclassification from accumulated other comprehensive income into net income net of tax | 773 | 4,997 | 1,428 | 8,149 |
Ending balance | $ (44,379) | $ 666 | $ (44,379) | $ 666 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)Entity | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Business Acquisition [Line Items] | |||
Cash paid to acquire business | $ 45,059 | $ 98,442 | |
Dialysis businesses and other businesses | |||
Business Acquisition [Line Items] | |||
Cash paid to acquire business | 45,059 | ||
Deferred purchase price obligations | $ 394 | ||
Amortizable intangible assets acquired, weighted-average estimated useful lives | 4 years | ||
Goodwill deductible for tax purposes associated with acquisitions | $ 33,732 | ||
Additional cash consideration in the form of earn-out payments | 134,321 | ||
Fair value of contingent earn-out consideration | 34,957 | $ 39,129 | |
Dialysis businesses and other businesses | Other short-term liabilities | |||
Business Acquisition [Line Items] | |||
Fair value of contingent earn-out consideration | 25,728 | ||
Dialysis businesses and other businesses | Other long-term liabilities | |||
Business Acquisition [Line Items] | |||
Fair value of contingent earn-out consideration | $ 9,229 | ||
Dialysis businesses and other businesses | EBITDA or Operating Income Performance Targets or Quality Margins | Minimum | |||
Business Acquisition [Line Items] | |||
Earn out consideration payment period | 1 year | ||
Dialysis businesses and other businesses | EBITDA or Operating Income Performance Targets or Quality Margins | Maximum | |||
Business Acquisition [Line Items] | |||
Earn out consideration payment period | 3 years | ||
Dialysis businesses and other businesses | Non-Compete Agreements | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets acquired, weighted-average estimated useful lives | 6 years | ||
Dialysis businesses and other businesses | Trade Names | |||
Business Acquisition [Line Items] | |||
Amortizable intangible assets acquired, weighted-average estimated useful lives | 3 years | ||
Dialysis businesses and other businesses | U.S. dialysis and related lab services | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | Entity | 1 | ||
Dialysis businesses and other businesses | Foreign dialysis and other medical businesses | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | Entity | 1 | ||
Dialysis businesses and other businesses | Vascular access centers | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | Entity | 3 |
Assets Acquired and Liabilities
Assets Acquired and Liabilities Assumed and Recognized at Acquisition Dates at Estimated Fair Values (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,450,946 | $ 9,415,295 | $ 9,212,974 |
Dialysis businesses and other businesses | |||
Business Acquisition [Line Items] | |||
Current assets | 1,545 | ||
Property and equipment | 9,740 | ||
Amortizable intangible and other long-term assets | 2,444 | ||
Goodwill | 51,075 | ||
Long-term deferred income taxes | (750) | ||
Noncontrolling interests assumed | (18,068) | ||
Liabilities assumed | (533) | ||
Aggregate purchase price | $ 45,453 |
Reconciliation of Changes in Co
Reconciliation of Changes in Contingent Earn-Out Obligations (Detail) - Dialysis businesses and other businesses $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Business Acquisition Contingent Consideration [Line Items] | |
Beginning balance | $ 39,129 |
Remeasurement of fair value for contingent earn-out obligations | (1,834) |
Payments on contingent earn-out obligations | (2,338) |
Ending balance | $ 34,957 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - Variable Interest Entities $ in Thousands | Jun. 30, 2015USD ($) |
Variable Interest Entity [Line Items] | |
Asset | $ 627,739 |
Liabilities | $ 327,787 |
Assets, Liabilities and Tempora
Assets, Liabilities and Temporary Equity Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Available-for-sale securities | $ 31,238 | $ 28,123 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Available-for-sale securities | 31,238 | |
Funds on deposit with third parties | 88,092 | |
Liabilities | ||
Contingent earn-out obligations | 34,957 | |
Interest rate swap agreements | 1,131 | |
Temporary equity | ||
Noncontrolling interests subject to put provisions | 863,126 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Available-for-sale securities | 31,238 | |
Funds on deposit with third parties | 88,092 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Liabilities | ||
Interest rate swap agreements | 1,131 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Liabilities | ||
Contingent earn-out obligations | 34,957 | |
Temporary equity | ||
Noncontrolling interests subject to put provisions | 863,126 | |
Interest rate cap agreements | Fair Value, Measurements, Recurring | ||
Assets | ||
Interest rate derivative agreements | 4,128 | |
Interest rate cap agreements | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Interest rate derivative agreements | 4,128 | |
Interest rate swap agreements | Fair Value, Measurements, Recurring | ||
Assets | ||
Interest rate derivative agreements | 691 | |
Interest rate swap agreements | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Interest rate derivative agreements | $ 691 |
Fair Value of Financial Instr66
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument, carrying amount | $ 9,224,769 | $ 8,519,642 |
Senior Secured Credit Facilities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument, carrying amount | 4,415,000 | |
Debt instrument, fair value | 4,413,813 | |
Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument, carrying amount | 4,500,000 | |
Debt instrument, fair value | $ 4,485,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
Summary of Segment Net Revenues
Summary of Segment Net Revenues, Segment Operating Income (Loss) and Reconciliation of Segment Income to Consolidated Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Patient service revenues | $ 2,363,579 | $ 2,187,249 | $ 4,635,394 | $ 4,301,347 | |
Less: Provision for uncollectible accounts | (105,965) | (88,052) | (205,129) | (171,249) | |
Net patient service revenues | 2,257,614 | 2,099,197 | 4,430,265 | 4,130,098 | |
Other revenues | 310,814 | 273,923 | 575,613 | 498,233 | |
Total net operating revenues | 3,434,618 | 3,172,489 | 6,722,583 | 6,215,265 | |
Capitated revenues | 866,190 | 799,369 | 1,716,705 | 1,586,934 | |
Operating income (loss) | 480,548 | 484,295 | 416,392 | 925,520 | |
Corporate support costs | (3,425) | (3,781) | (9,558) | (4,887) | |
Debt expense | (104,248) | (106,132) | (201,640) | (212,467) | |
Debt redemption and refinancing charges | (48,072) | (97,548) | (48,072) | (97,548) | |
Other income | 2,311 | 1,693 | 1,778 | 3,391 | |
Income before income taxes | 330,539 | 282,308 | 168,458 | 618,896 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total net operating revenues | 3,453,937 | 3,186,251 | 6,758,737 | 6,241,831 | |
Operating income (loss) | 483,973 | 488,076 | 425,950 | 930,407 | |
Operating Segments | U.S. dialysis and related lab services | |||||
Segment Reporting Information [Line Items] | |||||
Patient service revenues | 2,251,221 | 2,105,689 | 4,417,371 | 4,142,265 | |
Less: Provision for uncollectible accounts | (101,304) | (84,227) | (198,781) | (165,690) | |
Net patient service revenues | 2,149,917 | 2,021,462 | 4,218,590 | 3,976,575 | |
Other revenues | [1] | 3,540 | 3,579 | 6,724 | 6,732 |
Total net operating revenues | 2,153,457 | 2,025,041 | 4,225,314 | 3,983,307 | |
Operating income (loss) | 437,844 | 407,948 | 333,355 | 794,648 | |
Operating Segments | U.S. dialysis and related lab services | External Sources | |||||
Segment Reporting Information [Line Items] | |||||
Patient service revenues | 2,237,630 | 2,096,605 | 4,391,924 | 4,125,349 | |
Operating Segments | U.S. dialysis and related lab services | Intersegment Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Patient service revenues | 13,591 | 9,084 | 25,447 | 16,916 | |
Operating Segments | HealthCare Partners (HCP) | |||||
Segment Reporting Information [Line Items] | |||||
Net patient service revenues | 82,236 | 58,076 | 162,446 | 114,297 | |
Other revenues | [2] | 35,326 | 46,029 | 50,379 | 58,553 |
Total net operating revenues | 966,342 | 887,491 | 1,894,114 | 1,727,931 | |
Capitated revenues | 848,595 | 783,182 | 1,681,067 | 1,554,724 | |
Operating income (loss) | 72,336 | 82,048 | 132,630 | 136,002 | |
Operating Segments | HealthCare Partners (HCP) | Intersegment Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Other revenues | 185 | 204 | 222 | 357 | |
Operating Segments | Other-Ancillary services and strategic initiatives | |||||
Segment Reporting Information [Line Items] | |||||
Net patient service revenues | 39,052 | 28,744 | 74,676 | 56,143 | |
Total net operating revenues | 334,138 | 273,719 | 639,309 | 530,593 | |
Capitated revenues | 17,595 | 16,187 | 35,638 | 32,210 | |
Operating income (loss) | (26,207) | (1,920) | (40,035) | (243) | |
Operating Segments | Other-Ancillary services and strategic initiatives | External Sources | |||||
Segment Reporting Information [Line Items] | |||||
Other revenues | 271,948 | 224,314 | 518,510 | 432,947 | |
Operating Segments | Other-Ancillary services and strategic initiatives | Intersegment Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Total net operating revenues | 5,543 | 4,474 | 10,485 | 9,293 | |
Intersegment Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Total net operating revenues | $ (19,319) | $ (13,762) | $ (36,154) | $ (26,566) | |
[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 Revenu69
Summary of Segment Net Revenues, Segment Operating income (Loss) and Reconciliation of Segment Income to Consolidated Income Before Income Taxes (Detail) (Parenthetical) (Detail) | Jun. 30, 2015 |
Segment Reporting [Abstract] | |
Percentage of ownership in unconsolidated joint ventures | 50.00% |
Summary of Depreciation and Amo
Summary of Depreciation and Amortization Expense by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 158,843 | $ 145,907 | $ 312,632 | $ 288,486 |
U.S. dialysis and related lab services | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 109,461 | 99,163 | 214,453 | 195,606 |
HealthCare Partners (HCP) | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 43,088 | 42,260 | 86,367 | 83,997 |
Other-Ancillary services and strategic initiatives | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 6,294 | $ 4,484 | $ 11,812 | $ 8,883 |
Summary of Assets by Segment (D
Summary of Assets by Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Total assets | $ 18,946,818 | $ 17,942,715 |
U.S. dialysis and related lab services | ||
ASSETS | ||
Total assets | 11,837,990 | 10,959,096 |
HealthCare Partners (HCP) | ||
ASSETS | ||
Total assets | 6,347,456 | 6,285,984 |
Other-Ancillary services and strategic initiatives | ||
ASSETS | ||
Total assets | $ 761,372 | $ 697,635 |
Summary of Assets by Segment (P
Summary of Assets by Segment (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Equity investments | $ 67,173 | $ 65,637 |
U.S. dialysis and related lab services | ||
Segment Reporting Information [Line Items] | ||
Equity investments | 28,711 | 28,138 |
HealthCare Partners (HCP) | ||
Segment Reporting Information [Line Items] | ||
Equity investments | 16,752 | 15,393 |
Other-Ancillary services and strategic initiatives | ||
Segment Reporting Information [Line Items] | ||
Equity investments | $ 21,710 | $ 22,106 |
Summary of Expenditures for Pro
Summary of Expenditures for Property and Equipment by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Expenditures for property and equipment | $ 169,452 | $ 152,031 | $ 290,873 | $ 278,593 |
U.S. dialysis and related lab services | ||||
Segment Reporting Information [Line Items] | ||||
Expenditures for property and equipment | 141,656 | 136,660 | 247,051 | 249,869 |
HealthCare Partners (HCP) | ||||
Segment Reporting Information [Line Items] | ||||
Expenditures for property and equipment | 12,951 | 5,777 | 17,985 | 10,279 |
Other-Ancillary services and strategic initiatives | ||||
Segment Reporting Information [Line Items] | ||||
Expenditures for property and equipment | $ 14,845 | $ 9,594 | $ 25,837 | $ 18,445 |
Effects of Changes in DaVita In
Effects of Changes in DaVita Inc's Ownership Interest on Company's Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Net income attributable to DaVita HealthCare Partners Inc. | $ 170,477 | $ 147,683 | $ 59,860 | $ 330,972 |
Net transfers to noncontrolling interests | (8,421) | 1,181 | (8,421) | 1,472 |
Net income attributable to DaVita HealthCare Partners Inc., net of transfers to noncontrolling interests | 162,056 | 148,864 | 51,439 | 332,444 |
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 | (66) | 15 | ||
(Decrease) increase in paid-in capital for the purchase of noncontrolling interests and adjustments to ownership interest | $ (8,421) | $ 1,247 | $ (8,421) | $ 1,457 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Financial Statements Captions [Line Items] | ||||
Patient service revenues | $ 2,363,579 | $ 2,187,249 | $ 4,635,394 | $ 4,301,347 |
Less: Provision for uncollectible accounts | (105,965) | (88,052) | (205,129) | (171,249) |
Net patient service revenues | 2,257,614 | 2,099,197 | 4,430,265 | 4,130,098 |
Capitated revenues | 866,190 | 799,369 | 1,716,705 | 1,586,934 |
Other revenues | 310,814 | 273,923 | 575,613 | 498,233 |
Total net revenues | 3,434,618 | 3,172,489 | 6,722,583 | 6,215,265 |
Operating expenses | 2,954,070 | 2,688,194 | 6,306,191 | 5,289,745 |
Operating income | 480,548 | 484,295 | 416,392 | 925,520 |
Debt expense, including debt refinancing charges | (152,320) | (203,680) | (249,712) | (310,015) |
Other income | 2,311 | 1,693 | 1,778 | 3,391 |
Income tax expense | 122,762 | 100,887 | 36,829 | 225,738 |
Net income | 207,777 | 181,421 | 131,629 | 393,158 |
Less: Net income attributable to noncontrolling interests | (37,300) | (33,738) | (71,769) | (62,186) |
Net income attributable to DaVita HealthCare Partners Inc. | 170,477 | 147,683 | 59,860 | 330,972 |
Consolidation, Eliminations | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Patient service revenues | (35,229) | (27,343) | (69,216) | (53,462) |
Net patient service revenues | (35,229) | (27,343) | (69,216) | (53,462) |
Capitated revenues | (86) | (26) | (33) | (407) |
Other revenues | (354,959) | (338,730) | (675,765) | (675,727) |
Total net revenues | (390,274) | (366,099) | (745,014) | (729,596) |
Operating expenses | (390,274) | (366,099) | (745,014) | (729,596) |
Debt expense, including debt refinancing charges | 94,384 | 106,140 | 187,539 | 206,264 |
Other income | (94,384) | (106,140) | (187,539) | (206,264) |
Equity earnings in subsidiaries | (247,618) | (284,271) | (159,530) | (509,769) |
Net income | (247,618) | (284,271) | (159,530) | (509,769) |
Less: Net income attributable to noncontrolling interests | (37,300) | (33,738) | (71,769) | (62,186) |
Net income attributable to DaVita HealthCare Partners Inc. | (284,918) | (318,009) | (231,299) | (571,955) |
DaVita HealthCare Partners Inc. | Reportable Legal Entities | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Other revenues | 189,586 | 181,199 | 357,851 | 344,242 |
Total net revenues | 189,586 | 181,199 | 357,851 | 344,242 |
Operating expenses | 128,643 | 122,815 | 252,412 | 235,112 |
Operating income | 60,943 | 58,384 | 105,439 | 109,130 |
Debt expense, including debt refinancing charges | (150,105) | (202,258) | (245,583) | (307,541) |
Other income | 91,000 | 99,532 | 182,023 | 199,475 |
Income tax expense | (1,667) | (17,958) | 15,847 | 431 |
Equity earnings in subsidiaries | 166,972 | 174,067 | 33,828 | 330,339 |
Net income | 170,477 | 147,683 | 59,860 | 330,972 |
Net income attributable to DaVita HealthCare Partners Inc. | 170,477 | 147,683 | 59,860 | 330,972 |
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Patient service revenues | 1,663,352 | 1,517,267 | 3,245,311 | 3,030,545 |
Less: Provision for uncollectible accounts | (70,245) | (57,281) | (134,322) | (107,160) |
Net patient service revenues | 1,593,107 | 1,459,986 | 3,110,989 | 2,923,385 |
Capitated revenues | 439,734 | 414,366 | 887,072 | 818,913 |
Other revenues | 468,821 | 424,755 | 879,849 | 818,310 |
Total net revenues | 2,501,662 | 2,299,107 | 4,877,910 | 4,560,608 |
Operating expenses | 2,200,706 | 2,033,826 | 4,798,659 | 4,014,282 |
Operating income | 300,956 | 265,281 | 79,251 | 546,326 |
Debt expense, including debt refinancing charges | (85,119) | (97,382) | (170,902) | (188,806) |
Other income | 4,348 | 7,379 | 4,401 | 8,935 |
Income tax expense | 133,859 | 111,415 | 4,624 | 215,546 |
Equity earnings in subsidiaries | 80,646 | 110,204 | 125,702 | 179,430 |
Net income | 166,972 | 174,067 | 33,828 | 330,339 |
Net income attributable to DaVita HealthCare Partners Inc. | 166,972 | 174,067 | 33,828 | 330,339 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Patient service revenues | 735,456 | 697,325 | 1,459,299 | 1,324,264 |
Less: Provision for uncollectible accounts | (35,720) | (30,771) | (70,807) | (64,089) |
Net patient service revenues | 699,736 | 666,554 | 1,388,492 | 1,260,175 |
Capitated revenues | 426,542 | 385,029 | 829,666 | 768,428 |
Other revenues | 7,366 | 6,699 | 13,678 | 11,408 |
Total net revenues | 1,133,644 | 1,058,282 | 2,231,836 | 2,040,011 |
Operating expenses | 1,014,995 | 897,652 | 2,000,134 | 1,769,947 |
Operating income | 118,649 | 160,630 | 231,702 | 270,064 |
Debt expense, including debt refinancing charges | (11,480) | (10,180) | (20,766) | (19,932) |
Other income | 1,347 | 922 | 2,893 | 1,245 |
Income tax expense | (9,430) | 7,430 | 16,358 | 9,761 |
Net income | 117,946 | 143,942 | 197,471 | 241,616 |
Net income attributable to DaVita HealthCare Partners Inc. | $ 117,946 | $ 143,942 | $ 197,471 | $ 241,616 |
Condensed Consolidating State76
Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Financial Statements Captions [Line Items] | ||||
Net income | $ 207,777 | $ 181,421 | $ 131,629 | $ 393,158 |
Other comprehensive income (loss) | 3,246 | 2,305 | (19,362) | 3,311 |
Total comprehensive income | 211,023 | 183,726 | 112,267 | 396,469 |
Less: Comprehensive income attributable to noncontrolling interests | (37,300) | (33,738) | (71,769) | (62,186) |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 173,723 | 149,988 | 40,498 | 334,283 |
Consolidation, Eliminations | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Net income | (247,618) | (284,271) | (159,530) | (509,769) |
Total comprehensive income | (247,618) | (284,271) | (159,530) | (509,769) |
Less: Comprehensive income attributable to noncontrolling interests | (37,300) | (33,738) | (71,769) | (62,186) |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | (284,918) | (318,009) | (231,299) | (571,955) |
DaVita HealthCare Partners Inc. | Reportable Legal Entities | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Net income | 170,477 | 147,683 | 59,860 | 330,972 |
Other comprehensive income (loss) | (1,779) | 366 | (6,502) | 1,344 |
Total comprehensive income | 168,698 | 148,049 | 53,358 | 332,316 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 168,698 | 148,049 | 53,358 | 332,316 |
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Net income | 166,972 | 174,067 | 33,828 | 330,339 |
Total comprehensive income | 166,972 | 174,067 | 33,828 | 330,339 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 166,972 | 174,067 | 33,828 | 330,339 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Net income | 117,946 | 143,942 | 197,471 | 241,616 |
Other comprehensive income (loss) | 5,025 | 1,939 | (12,860) | 1,967 |
Total comprehensive income | 122,971 | 145,881 | 184,611 | 243,583 |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ 122,971 | $ 145,881 | $ 184,611 | $ 243,583 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Condensed Financial Statements Captions [Line Items] | ||||
Cash and cash equivalents | $ 933,735 | $ 965,241 | $ 1,420,973 | $ 946,249 |
Accounts receivable, net | 1,666,969 | 1,525,849 | ||
Other current assets | 2,180,217 | 1,385,707 | ||
Total current assets | 4,780,921 | 3,876,797 | ||
Property and equipment, net | 2,564,708 | 2,469,099 | ||
Amortizable intangibles, net | 1,868,432 | 1,949,498 | ||
Other long-term assets and investments | 281,811 | 232,026 | ||
Goodwill | 9,450,946 | 9,415,295 | 9,212,974 | |
Total assets | 18,946,818 | 17,942,715 | ||
Current liabilities | 2,334,290 | 2,088,652 | ||
Long-term debt and other long-term liabilities | 10,402,486 | 9,663,787 | ||
Noncontrolling interests subject to put provisions | 863,126 | 829,965 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 5,146,849 | 5,170,513 | ||
Noncontrolling interests not subject to put provisions | 200,067 | 189,798 | ||
Total equity | 5,346,916 | 5,360,311 | ||
Total liabilities and equity | 18,946,818 | 17,942,715 | ||
Consolidation, Eliminations | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Investments in subsidiaries | (10,310,381) | (10,429,530) | ||
Intercompany receivables | (4,362,502) | (4,287,695) | ||
Total assets | (14,672,883) | (14,717,225) | ||
Intercompany payables | (4,362,502) | (4,287,695) | ||
Noncontrolling interests subject to put provisions | 318,249 | 301,644 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | (10,310,381) | (10,429,530) | ||
Noncontrolling interests not subject to put provisions | (318,249) | (301,644) | ||
Total equity | (10,628,630) | (10,731,174) | ||
Total liabilities and equity | (14,672,883) | (14,717,225) | ||
DaVita HealthCare Partners Inc. | Reportable Legal Entities | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Cash and cash equivalents | 685,219 | 698,876 | 1,081,021 | 602,188 |
Other current assets | 964,057 | 362,672 | ||
Total current assets | 1,649,276 | 1,061,548 | ||
Property and equipment, net | 196,905 | 195,690 | ||
Amortizable intangibles, net | 89,029 | 85,338 | ||
Investments in subsidiaries | 8,768,681 | 8,868,335 | ||
Intercompany receivables | 3,783,559 | 3,723,454 | ||
Other long-term assets and investments | 61,452 | 70,309 | ||
Total assets | 14,548,902 | 14,004,674 | ||
Current liabilities | 38,757 | 180,977 | ||
Long-term debt and other long-term liabilities | 8,818,419 | 8,124,863 | ||
Noncontrolling interests subject to put provisions | 544,877 | 528,321 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 5,146,849 | 5,170,513 | ||
Total equity | 5,146,849 | 5,170,513 | ||
Total liabilities and equity | 14,548,902 | 14,004,674 | ||
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Cash and cash equivalents | 58,195 | 77,921 | 137,229 | 151,454 |
Accounts receivable, net | 995,284 | 915,851 | ||
Other current assets | 1,093,115 | 930,093 | ||
Total current assets | 2,146,594 | 1,923,865 | ||
Property and equipment, net | 1,499,888 | 1,473,188 | ||
Amortizable intangibles, net | 1,732,254 | 1,811,218 | ||
Investments in subsidiaries | 1,541,700 | 1,561,195 | ||
Other long-term assets and investments | 110,611 | 60,385 | ||
Goodwill | 8,004,695 | 7,958,221 | ||
Total assets | 15,035,742 | 14,788,072 | ||
Current liabilities | 1,808,645 | 1,493,243 | ||
Intercompany payables | 3,110,636 | 3,105,173 | ||
Long-term debt and other long-term liabilities | 1,347,780 | 1,321,321 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 8,768,681 | 8,868,335 | ||
Total equity | 8,768,681 | 8,868,335 | ||
Total liabilities and equity | 15,035,742 | 14,788,072 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Cash and cash equivalents | 190,321 | 188,444 | $ 202,723 | $ 192,607 |
Accounts receivable, net | 671,685 | 609,998 | ||
Other current assets | 123,045 | 92,942 | ||
Total current assets | 985,051 | 891,384 | ||
Property and equipment, net | 867,915 | 800,221 | ||
Amortizable intangibles, net | 47,149 | 52,942 | ||
Intercompany receivables | 578,943 | 564,241 | ||
Other long-term assets and investments | 109,748 | 101,332 | ||
Goodwill | 1,446,251 | 1,457,074 | ||
Total assets | 4,035,057 | 3,867,194 | ||
Current liabilities | 486,888 | 414,432 | ||
Intercompany payables | 1,251,866 | 1,182,522 | ||
Long-term debt and other long-term liabilities | 236,287 | 217,603 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 1,541,700 | 1,561,195 | ||
Noncontrolling interests not subject to put provisions | 518,316 | 491,442 | ||
Total equity | 2,060,016 | 2,052,637 | ||
Total liabilities and equity | $ 4,035,057 | $ 3,867,194 |
Condensed Consolidating State78
Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||||
Net income | $ 207,777 | $ 181,421 | $ 131,629 | $ 393,158 |
Changes in operating assets and liabilities and non-cash items included in net income | 309,902 | 288,340 | ||
Net cash provided by operating activities | 441,531 | 681,498 | ||
Cash flows from investing activities: | ||||
Additions of property and equipment | (169,452) | (152,031) | (290,873) | (278,593) |
Acquisitions | (45,059) | (98,442) | ||
Proceeds from asset and business sales | 3,415 | 215 | ||
Purchases/proceeds from investment sales and other items | (614,820) | (66,035) | ||
Net cash used in investing activities | (947,337) | (442,855) | ||
Cash flows from financing activities: | ||||
Long-term debt and related financing costs, net | 667,992 | 348,436 | ||
Other items | (192,899) | (111,788) | ||
Net cash provided by financing activities | 475,093 | 236,648 | ||
Effect of exchange rate changes on cash | (793) | (567) | ||
Net (decrease) increase in cash and cash equivalents | (31,506) | 474,724 | ||
Cash and cash equivalents at beginning of the year | 965,241 | 946,249 | ||
Cash and cash equivalents at end of the period | 933,735 | 1,420,973 | 933,735 | 1,420,973 |
Consolidation, Eliminations | ||||
Cash flows from operating activities: | ||||
Net income | (247,618) | (284,271) | (159,530) | (509,769) |
Changes in operating assets and liabilities and non-cash items included in net income | 159,530 | 509,769 | ||
DaVita HealthCare Partners Inc. | Reportable Legal Entities | ||||
Cash flows from operating activities: | ||||
Net income | 170,477 | 147,683 | 59,860 | 330,972 |
Changes in operating assets and liabilities and non-cash items included in net income | (117,778) | (191,299) | ||
Net cash provided by operating activities | (57,918) | 139,673 | ||
Cash flows from investing activities: | ||||
Additions of property and equipment | (21,179) | (25,377) | ||
Purchases/proceeds from investment sales and other items | (604,922) | (58,496) | ||
Net cash used in investing activities | (626,101) | (83,873) | ||
Cash flows from financing activities: | ||||
Long-term debt and related financing costs, net | 682,510 | 353,406 | ||
Intercompany borrowing | 108,911 | 139,052 | ||
Other items | (121,059) | (69,425) | ||
Net cash provided by financing activities | 670,362 | 423,033 | ||
Net (decrease) increase in cash and cash equivalents | (13,657) | 478,833 | ||
Cash and cash equivalents at beginning of the year | 698,876 | 602,188 | ||
Cash and cash equivalents at end of the period | 685,219 | 1,081,021 | 685,219 | 1,081,021 |
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Cash flows from operating activities: | ||||
Net income | 166,972 | 174,067 | 33,828 | 330,339 |
Changes in operating assets and liabilities and non-cash items included in net income | 215,135 | 6,934 | ||
Net cash provided by operating activities | 248,963 | 337,273 | ||
Cash flows from investing activities: | ||||
Additions of property and equipment | (147,637) | (123,519) | ||
Acquisitions | (44,740) | (97,057) | ||
Proceeds from asset and business sales | 3,415 | 215 | ||
Purchases/proceeds from investment sales and other items | (833) | (5,263) | ||
Net cash used in investing activities | (189,795) | (225,624) | ||
Cash flows from financing activities: | ||||
Long-term debt and related financing costs, net | (7,922) | (7,158) | ||
Intercompany borrowing | (60,132) | (113,906) | ||
Other items | (10,840) | (4,810) | ||
Net cash provided by financing activities | (78,894) | (125,874) | ||
Net (decrease) increase in cash and cash equivalents | (19,726) | (14,225) | ||
Cash and cash equivalents at beginning of the year | 77,921 | 151,454 | ||
Cash and cash equivalents at end of the period | 58,195 | 137,229 | 58,195 | 137,229 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Cash flows from operating activities: | ||||
Net income | 117,946 | 143,942 | 197,471 | 241,616 |
Changes in operating assets and liabilities and non-cash items included in net income | 53,015 | (37,064) | ||
Net cash provided by operating activities | 250,486 | 204,552 | ||
Cash flows from investing activities: | ||||
Additions of property and equipment | (122,057) | (129,697) | ||
Acquisitions | (319) | (1,385) | ||
Purchases/proceeds from investment sales and other items | (9,065) | (2,276) | ||
Net cash used in investing activities | (131,441) | (133,358) | ||
Cash flows from financing activities: | ||||
Long-term debt and related financing costs, net | (6,596) | 2,188 | ||
Intercompany borrowing | (48,779) | (25,146) | ||
Other items | (61,000) | (37,553) | ||
Net cash provided by financing activities | (116,375) | (60,511) | ||
Effect of exchange rate changes on cash | (793) | (567) | ||
Net (decrease) increase in cash and cash equivalents | 1,877 | 10,116 | ||
Cash and cash equivalents at beginning of the year | 188,444 | 192,607 | ||
Cash and cash equivalents at end of the period | $ 190,321 | $ 202,723 | $ 190,321 | $ 202,723 |
Supplemental Data - Condensed C
Supplemental Data - Condensed Consolidating Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Condensed Financial Statements Captions [Line Items] | |||||
Patient service operating revenues | $ 2,363,579 | $ 2,187,249 | $ 4,635,394 | $ 4,301,347 | |
Less: Provision for uncollectible accounts | (105,965) | (88,052) | (205,129) | (171,249) | |
Net patient service revenues | 2,257,614 | 2,099,197 | 4,430,265 | 4,130,098 | |
Capitated revenues | 866,190 | 799,369 | 1,716,705 | 1,586,934 | |
Other revenues | 310,814 | 273,923 | 575,613 | 498,233 | |
Total net revenues | 3,434,618 | 3,172,489 | 6,722,583 | 6,215,265 | |
Operating expenses | 2,954,070 | 2,688,194 | 6,306,191 | 5,289,745 | |
Operating income | 480,548 | 484,295 | 416,392 | 925,520 | |
Debt expense, including debt refinancing charges | (152,320) | (203,680) | (249,712) | (310,015) | |
Other income, net | 2,311 | 1,693 | 1,778 | 3,391 | |
Income tax expense | 122,762 | 100,887 | 36,829 | 225,738 | |
Net income | 207,777 | 181,421 | 131,629 | 393,158 | |
Less: Net income attributable to noncontrolling interests | (37,300) | (33,738) | (71,769) | (62,186) | |
Net income attributable to DaVita HealthCare Partners Inc. | $ 170,477 | $ 147,683 | 59,860 | $ 330,972 | |
Physician Groups | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Patient service operating revenues | 64,317 | ||||
Less: Provision for uncollectible accounts | (2,182) | ||||
Net patient service revenues | 62,135 | ||||
Capitated revenues | 792,553 | ||||
Other revenues | 2,665 | ||||
Total net revenues | 857,353 | ||||
Operating expenses | 836,784 | ||||
Operating income | 20,569 | ||||
Debt expense, including debt refinancing charges | (4,922) | ||||
Other income, net | 159 | ||||
Income tax expense | 1,569 | ||||
Net income | 14,237 | ||||
Net income attributable to DaVita HealthCare Partners Inc. | 14,237 | ||||
Unrestricted Subsidiaries | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Operating expenses | (327) | ||||
Operating income | 327 | ||||
Income tax expense | 131 | ||||
Net income | 196 | ||||
Net income attributable to DaVita HealthCare Partners Inc. | 196 | ||||
Company and Restricted Subsidiaries | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Patient service operating revenues | [1] | 4,571,077 | |||
Less: Provision for uncollectible accounts | [1] | (202,947) | |||
Net patient service revenues | [1] | 4,368,130 | |||
Capitated revenues | [1] | 924,152 | |||
Other revenues | [1] | 572,948 | |||
Total net revenues | [1] | 5,865,230 | |||
Operating expenses | [1] | 5,469,734 | |||
Operating income | [1] | 395,496 | |||
Debt expense, including debt refinancing charges | [1] | (244,790) | |||
Other income, net | [1] | 1,619 | |||
Income tax expense | [1] | 35,129 | |||
Net income | [1] | 117,196 | |||
Less: Net income attributable to noncontrolling interests | [1] | (71,769) | |||
Net income attributable to DaVita HealthCare Partners Inc. | [1] | $ 45,427 | |||
[1] | (1) After the elimination of the unrestricted subsidiaries and the physician groups |
Supplemental Data - Condensed80
Supplemental Data - Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Condensed Financial Statements Captions [Line Items] | |||||
Net income | $ 207,777 | $ 181,421 | $ 131,629 | $ 393,158 | |
Other comprehensive income (loss) | 3,246 | 2,305 | (19,362) | 3,311 | |
Total comprehensive income | 211,023 | 183,726 | 112,267 | 396,469 | |
Less: Comprehensive income attributable to noncontrolling interests | (37,300) | (33,738) | (71,769) | (62,186) | |
Comprehensive income attributable to DaVita HealthCare Partners Inc. | $ 173,723 | $ 149,988 | 40,498 | $ 334,283 | |
Physician Groups | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Net income | 14,237 | ||||
Total comprehensive income | 14,237 | ||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 14,237 | ||||
Unrestricted Subsidiaries | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Net income | 196 | ||||
Total comprehensive income | 196 | ||||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | 196 | ||||
Company and Restricted Subsidiaries | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Net income | [1] | 117,196 | |||
Other comprehensive income (loss) | [1] | (19,362) | |||
Total comprehensive income | [1] | 97,834 | |||
Less: Comprehensive income attributable to noncontrolling interests | [1] | (71,769) | |||
Comprehensive income attributable to DaVita HealthCare Partners Inc. | [1] | $ 26,065 | |||
[1] | (1) After the elimination of the unrestricted subsidiaries and the physician groups |
Supplemental Data - Condensed81
Supplemental Data - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements Captions [Line Items] | |||||
Cash and cash equivalents | $ 933,735 | $ 965,241 | $ 1,420,973 | $ 946,249 | |
Accounts receivable, net | 1,666,969 | 1,525,849 | |||
Other current assets | 2,180,217 | 1,385,707 | |||
Total current assets | 4,780,921 | 3,876,797 | |||
Property and equipment, net | 2,564,708 | 2,469,099 | |||
Amortizable intangibles, net | 1,868,432 | 1,949,498 | |||
Other long-term assets | 281,811 | 232,026 | |||
Goodwill | 9,450,946 | 9,415,295 | $ 9,212,974 | ||
Total assets | 18,946,818 | 17,942,715 | |||
Current liabilities | 2,334,290 | 2,088,652 | |||
Long-term debt and other long-term liabilities | 10,402,486 | 9,663,787 | |||
Noncontrolling interests subject to put provisions | 863,126 | 829,965 | |||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 5,146,849 | 5,170,513 | |||
Noncontrolling interests not subject to put provisions | 200,067 | 189,798 | |||
Total equity | 5,346,916 | 5,360,311 | |||
Total liabilities and equity | 18,946,818 | 17,942,715 | |||
Physician Groups | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash and cash equivalents | 97,209 | 112,448 | |||
Accounts receivable, net | 290,827 | ||||
Other current assets | 13,465 | ||||
Total current assets | 401,501 | ||||
Property and equipment, net | 2,027 | ||||
Amortizable intangibles, net | 6,498 | ||||
Other long-term assets | 71,044 | ||||
Goodwill | 15,967 | ||||
Total assets | 497,037 | ||||
Current liabilities | 236,714 | ||||
Payables to parent | 173,682 | ||||
Long-term debt and other long-term liabilities | 55,492 | ||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 31,149 | ||||
Total equity | 31,149 | ||||
Total liabilities and equity | 497,037 | ||||
Unrestricted Subsidiaries | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Other long-term assets | 3,137 | ||||
Total assets | 3,137 | ||||
Payables to parent | 3,137 | ||||
Total liabilities and equity | 3,137 | ||||
Company and Restricted Subsidiaries | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Cash and cash equivalents | [1] | 836,526 | $ 852,793 | ||
Accounts receivable, net | [1] | 1,376,142 | |||
Other current assets | [1] | 2,166,752 | |||
Total current assets | [1] | 4,379,420 | |||
Property and equipment, net | [1] | 2,562,681 | |||
Amortizable intangibles, net | [1] | 1,861,934 | |||
Other long-term assets | [1] | 207,630 | |||
Goodwill | [1] | 9,434,979 | |||
Total assets | [1] | 18,446,644 | |||
Current liabilities | [1] | 2,097,576 | |||
Payables to parent | [1] | (176,819) | |||
Long-term debt and other long-term liabilities | [1] | 10,346,994 | |||
Noncontrolling interests subject to put provisions | [1] | 863,126 | |||
Total DaVita HealthCare Partners Inc. shareholders’ equity | [1] | 5,115,700 | |||
Noncontrolling interests not subject to put provisions | [1] | 200,067 | |||
Total equity | [1] | 5,315,767 | |||
Total liabilities and equity | [1] | $ 18,446,644 | |||
[1] | (1) After the elimination of the unrestricted subsidiaries and the physician groups |
Supplemental Data - Condensed82
Supplemental Data - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Cash flows from operating activities: | |||||
Net income | $ 207,777 | $ 181,421 | $ 131,629 | $ 393,158 | |
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | 309,902 | 288,340 | |||
Net cash provided by operating activities | 441,531 | 681,498 | |||
Cash flows from investing activities: | |||||
Additions of property and equipment | (169,452) | (152,031) | (290,873) | (278,593) | |
Acquisitions | (45,059) | (98,442) | |||
Proceeds from discontinued operations | 3,415 | 215 | |||
Investments and other items | (614,820) | (66,035) | |||
Net cash used in investing activities | (947,337) | (442,855) | |||
Cash flows from financing activities: | |||||
Long-term debt | 667,992 | 348,436 | |||
Other items | (192,899) | (111,788) | |||
Net cash provided by financing activities | 475,093 | 236,648 | |||
Effect of exchange rate changes on cash | (793) | (567) | |||
Net (decrease) increase in cash and cash equivalents | (31,506) | 474,724 | |||
Cash and cash equivalents at beginning of the year | 965,241 | 946,249 | |||
Cash and cash equivalents at end of the period | 933,735 | $ 1,420,973 | 933,735 | $ 1,420,973 | |
Physician Groups | |||||
Cash flows from operating activities: | |||||
Net income | 14,237 | ||||
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | (19,648) | ||||
Net cash provided by operating activities | (5,411) | ||||
Cash flows from investing activities: | |||||
Additions of property and equipment | (24) | ||||
Investments and other items | (1,581) | ||||
Net cash used in investing activities | (1,605) | ||||
Cash flows from financing activities: | |||||
Intercompany | (8,223) | ||||
Net cash provided by financing activities | (8,223) | ||||
Net (decrease) increase in cash and cash equivalents | (15,239) | ||||
Cash and cash equivalents at beginning of the year | 112,448 | ||||
Cash and cash equivalents at end of the period | 97,209 | 97,209 | |||
Unrestricted Subsidiaries | |||||
Cash flows from operating activities: | |||||
Net income | 196 | ||||
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | (196) | ||||
Company and Restricted Subsidiaries | |||||
Cash flows from operating activities: | |||||
Net income | [1] | 117,196 | |||
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | [1] | 329,746 | |||
Net cash provided by operating activities | [1] | 446,942 | |||
Cash flows from investing activities: | |||||
Additions of property and equipment | [1] | (290,849) | |||
Acquisitions | [1] | (45,059) | |||
Proceeds from discontinued operations | [1] | 3,415 | |||
Investments and other items | [1] | (613,239) | |||
Net cash used in investing activities | [1] | (945,732) | |||
Cash flows from financing activities: | |||||
Long-term debt | [1] | 667,992 | |||
Intercompany | [1] | 8,223 | |||
Other items | [1] | (192,899) | |||
Net cash provided by financing activities | [1] | 483,316 | |||
Effect of exchange rate changes on cash | [1] | (793) | |||
Net (decrease) increase in cash and cash equivalents | [1] | (16,267) | |||
Cash and cash equivalents at beginning of the year | [1] | 852,793 | |||
Cash and cash equivalents at end of the period | [1] | $ 836,526 | $ 836,526 | ||
[1] | (1) After the elimination of the unrestricted subsidiaries and the physician groups |