Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 206,500,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Patient service revenues | $ 2,477,738 | $ 2,271,815 |
Less: Provision for uncollectible accounts | (109,205) | (99,164) |
Net patient service revenues | 2,368,533 | 2,172,651 |
Capitated revenues | 887,047 | 850,515 |
Other revenues | 325,556 | 264,799 |
Total net revenues | 3,581,136 | 3,287,965 |
Operating expenses and charges: | ||
Patient care costs and other costs | 2,582,333 | 2,362,612 |
General and administrative | 386,429 | 341,801 |
Depreciation and amortization | 169,355 | 153,789 |
Provision for uncollectible accounts | 2,517 | 1,827 |
Equity investment income | (1,387) | (2,908) |
Goodwill impairment charge | 77,000 | |
Settlement charge | 495,000 | |
Total operating expenses and charges | 3,216,247 | 3,352,121 |
Operating income (loss) | 364,889 | (64,156) |
Debt expense | (102,884) | (97,392) |
Other income (loss), net | 2,976 | (533) |
Income (loss) before income taxes | 264,981 | (162,081) |
Income tax expense (benefit) | 126,822 | (85,933) |
Net income (loss) | 138,159 | (76,148) |
Less: Net income attributable to noncontrolling interests | (40,725) | (34,469) |
Net income (loss) attributable to DaVita HealthCare Partners Inc. | $ 97,434 | $ (110,617) |
Earnings per share: | ||
Basic net income (loss) per share attributable to DaVita HealthCare Partners Inc. | $ 0.48 | $ (0.52) |
Diluted net income (loss) per share attributable to DaVita HealthCare Partners Inc. | $ 0.47 | $ (0.52) |
Weighted average shares for earnings per share: | ||
Basic | 204,366,869 | 213,387,253 |
Diluted | 207,928,096 | 213,387,253 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 138,159 | $ (76,148) |
Unrealized losses on interest rate swap and cap agreements: | ||
Unrealized losses on interest rate swap and cap agreements | (5,469) | (5,760) |
Reclassifications of net swap and cap agreements realized losses into net income | 465 | 812 |
Unrealized gains (losses) on investments: | ||
Unrealized gains on investments | 229 | 382 |
Reclassification of net investment realized gains into net income | (93) | (157) |
Foreign currency translation adjustments | 11,181 | (17,885) |
Other comprehensive income (loss) | 6,313 | (22,608) |
Total comprehensive income (loss) | 144,472 | (98,756) |
Less: Comprehensive income attributable to noncontrolling interests | (40,725) | (34,469) |
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | $ 103,747 | $ (133,225) |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 1,041,427 | $ 1,499,116 |
Short-term investments | 396,468 | 408,084 |
Accounts receivable, less allowance of $280,988 and $264,144 | 1,855,285 | 1,724,228 |
Inventories | 192,689 | 185,575 |
Other receivables | 525,548 | 435,885 |
Other current assets | 187,287 | 190,322 |
Income taxes receivable | 856 | 60,070 |
Total current assets | 4,199,560 | 4,503,280 |
Property and equipment, net | 2,911,205 | 2,788,740 |
Intangible assets, net | 1,678,707 | 1,687,326 |
Equity investments | 75,059 | 73,368 |
Long-term investments | 97,770 | 94,122 |
Other long-term assets | 66,269 | 73,560 |
Goodwill | 9,485,628 | 9,294,479 |
Total assets | 18,514,198 | 18,514,875 |
LIABILITIES AND EQUITY | ||
Accounts payable | 480,288 | 513,950 |
Other liabilities | 779,141 | 682,123 |
Accrued compensation and benefits | 728,476 | 741,926 |
Medical payables | 317,747 | 332,102 |
Current portion of long-term debt | 137,966 | 129,037 |
Total current liabilities | 2,443,618 | 2,399,138 |
Long-term debt | 8,979,855 | 9,001,308 |
Other long-term liabilities | 464,250 | 439,229 |
Deferred income taxes | 792,038 | 726,962 |
Total liabilities | 12,679,761 | 12,566,637 |
Commitments and contingencies: | ||
Noncontrolling interests subject to put provisions | $ 912,705 | $ 864,066 |
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; 217,338,629 and 217,120,346 shares issued and 206,392,776 and 209,754,247 shares outstanding, respectively) | $ 217 | $ 217 |
Additional paid-in capital | 1,089,305 | 1,118,326 |
Retained earnings | 4,454,269 | 4,356,835 |
Treasury stock (10,945,853 and 7,366,099 shares, respectively) | (786,352) | (544,772) |
Accumulated other comprehensive loss | (53,513) | (59,826) |
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,703,926 | 4,870,780 |
Noncontrolling interests not subject to put provisions | 217,806 | 213,392 |
Total equity | 4,921,732 | 5,084,172 |
Total liabilities and equity | $ 18,514,198 | $ 18,514,875 |
CONSOLIDATED BALANCE SHEETS (u5
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 280,988 | $ 264,144 |
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 | 217,338,629 | 217,120,346 |
Common stock, shares outstanding | 206,392,776 | 209,754,247 |
Treasury stock, shares | 10,945,853 | 7,366,099 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 138,159 | $ (76,148) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Settlement charge | 495,000 | |
Depreciation and amortization | 169,355 | 153,789 |
Goodwill impairment charge | 77,000 | |
Stock-based compensation expense | 13,097 | 12,762 |
Tax benefits from stock award exercises | 8,668 | 9,366 |
Excess tax benefits from stock award exercises | (4,383) | (7,584) |
Deferred income taxes | 47,519 | (203,940) |
Equity investment income, net | 5,238 | 2,539 |
Other non-cash charges | 11,507 | 7,865 |
Changes in operating assets and liabilities, other than from acquisitions and divestitures: | ||
Accounts receivable | (78,097) | (151,743) |
Inventories | (4,924) | (9,193) |
Other receivables and other current assets | (75,326) | (18,619) |
Other long-term assets | (965) | 153 |
Accounts payable | 7,782 | (10,933) |
Accrued compensation and benefits | (32,909) | 30,638 |
Other current liabilities | 55,673 | 60,772 |
Income taxes | 72,400 | 106,970 |
Other long-term liabilities | 19,208 | 8,395 |
Net cash provided by operating activities | 429,002 | 410,089 |
Cash flows from investing activities: | ||
Additions of property and equipment | (173,187) | (121,421) |
Acquisitions | (405,154) | (40,650) |
Proceeds from asset and business sales | 4,657 | 2,565 |
Purchase of investments available for sale | (4,435) | (1,448) |
Purchase of investments held-to-maturity | (228,198) | (290,774) |
Proceeds from sale of investments available for sale | 5,155 | 1,217 |
Proceeds from investments held-to-maturity | 252,701 | 205,650 |
Purchase of equity investments | (5,850) | (7,426) |
Net cash used in investing activities | (554,311) | (252,287) |
Cash flows from financing activities: | ||
Borrowings | 13,098,553 | 13,353,767 |
Payments on long-term debt and other financing costs | (13,123,124) | (13,382,203) |
Purchase of treasury stock | (274,926) | (70,063) |
Distributions to noncontrolling interests | (50,409) | (41,499) |
Stock award exercises and other share issuances, net | 3,167 | 5,648 |
Excess tax benefits from stock award exercises | 4,383 | 7,584 |
Contributions from noncontrolling interests | 10,190 | 15,898 |
Proceeds from sales of additional noncontrolling interests | 3,557 | |
Purchase of noncontrolling interests | (4,300) | |
Deferred financing costs | (188) | |
Net cash used in financing activities | (333,097) | (110,868) |
Effect of exchange rate changes on cash and cash equivalents | 717 | (904) |
Net (decrease) increase in cash and cash equivalents | (457,689) | 46,030 |
Cash and cash equivalents at beginning of the year | 1,499,116 | 965,241 |
Cash and cash equivalents at end of the period | $ 1,041,427 | $ 1,011,271 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (unaudited) - USD ($) $ in Thousands | Total | Non- controlling Interests subject to put provisions | Common stock | Common stockRestricted Stock Units | Common stockStock Appreciation Rights | Additional paid-in capital | Additional paid-in capitalRestricted Stock Units | Additional paid-in capitalStock Appreciation Rights | Retained earnings | Treasury stock | Treasury stockRestricted Stock Units | Treasury stockStock Appreciation Rights | Accumulated other comprehensive(loss) | Total | Non-controlling interests not subject to put provisions |
Beginning Balance at Dec. 31, 2014 | $ 829,965 | $ 216 | $ 1,108,211 | $ 4,087,103 | $ (25,017) | $ 5,170,513 | $ 189,798 | ||||||||
Beginning Balance (in shares) at Dec. 31, 2014 | 215,641,000 | ||||||||||||||
Comprehensive income: | |||||||||||||||
Net income | 96,510 | 269,732 | 269,732 | 61,168 | |||||||||||
Other comprehensive income (loss) | (34,809) | (34,809) | |||||||||||||
Stock purchase shares issued | (6,079) | $ 30,608 | 24,529 | ||||||||||||
Stock purchase shares issued (in shares) | 414,000 | ||||||||||||||
Stock unit shares issued | $ 1 | $ (1) | |||||||||||||
Stock unit shares issued (in shares) | 348,000 | 1,131,000 | |||||||||||||
Stock-settled stock-based compensation expense | 56,899 | 56,899 | |||||||||||||
Excess tax benefits from stock awards exercised | 28,157 | 28,157 | |||||||||||||
Distributions to noncontrolling interests | (103,355) | (71,280) | |||||||||||||
Contributions from noncontrolling interests | 25,795 | 28,849 | |||||||||||||
Sales and assumptions of additional noncontrolling interests | 10,654 | 6,875 | |||||||||||||
Purchase of noncontrolling interests | (8,538) | (55,826) | (55,826) | (2,018) | |||||||||||
Changes in fair value of noncontrolling interests | 13,035 | (13,035) | (13,035) | ||||||||||||
Purchase of treasury stock | $ (575,380) | (575,380) | |||||||||||||
Purchase of treasury stock (in shares) | (7,780,000) | ||||||||||||||
Ending Balance at Dec. 31, 2015 | $ 5,084,172 | 864,066 | $ 217 | 1,118,326 | 4,356,835 | $ (544,772) | (59,826) | 4,870,780 | 213,392 | ||||||
Ending Balance (in shares) at Dec. 31, 2015 | 209,754,247 | 217,120,000 | (7,366,000) | ||||||||||||
Comprehensive income: | |||||||||||||||
Net income | 26,776 | 97,434 | 97,434 | 13,949 | |||||||||||
Other comprehensive income (loss) | $ 6,313 | 6,313 | 6,313 | ||||||||||||
Stock unit shares issued | $ (1,206) | $ (6,695) | $ 1,206 | $ 6,695 | |||||||||||
Stock unit shares issued (in shares) | 219,000 | 17,000 | 93,000 | ||||||||||||
Stock-settled stock-based compensation expense | 12,855 | 12,855 | |||||||||||||
Excess tax benefits from stock awards exercised | 4,383 | 4,383 | |||||||||||||
Distributions to noncontrolling interests | (29,151) | (21,258) | |||||||||||||
Contributions from noncontrolling interests | 7,389 | 2,801 | |||||||||||||
Sales and assumptions of additional noncontrolling interests | 7,719 | 885 | 885 | 9,885 | |||||||||||
Purchase of noncontrolling interests | (3,337) | (3,337) | (963) | ||||||||||||
Changes in fair value of noncontrolling interests | 35,906 | (35,906) | (35,906) | ||||||||||||
Purchase of treasury stock | $ (249,481) | $ (249,481) | (249,481) | ||||||||||||
Purchase of treasury stock (in shares) | (3,690,000) | (3,690,000) | |||||||||||||
Ending Balance at Mar. 31, 2016 | $ 4,921,732 | $ 912,705 | $ 217 | $ 1,089,305 | $ 4,454,269 | $ (786,352) | $ (53,513) | $ 4,703,926 | $ 217,806 | ||||||
Ending Balance (in shares) at Mar. 31, 2016 | 206,392,776 | 217,339,000 | (10,946,000) |
Condensed consolidated interim
Condensed consolidated interim financial statements | 3 Months Ended |
Mar. 31, 2016 | |
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, contingencies, impairments of goodwill and other long-lived assets, fair value estimates, accounting for income taxes, variable compensation accruals, consolidation of variable interest entities, purchase accounting valuation estimates, long-term incentive program compensation and medical liability claims. The results of operations for the three months ended March 31, 2016 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, 2015. 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 | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share | 2. Earnings per share Basic net income (loss) per share is calculated by dividing net income (loss) 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 (loss) 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 March 31, 2016 2015 Basic: Net income (loss) attributable to DaVita HealthCare Partners Inc. $ 97,434 $ (110,617 ) Weighted average shares outstanding during the period 206,561 215,581 Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger (2,194 ) (2,194 ) Weighted average shares for basic earnings per share calculation 204,367 213,387 Basic net income (loss) per share attributable to DaVita HealthCare Partners Inc. $ 0.48 $ (0.52 ) Diluted: Net income (loss) attributable to DaVita HealthCare Partners Inc. $ 97,434 $ (110,617 ) Weighted average shares outstanding during the period 206,561 215,581 Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger — (2,194 ) Assumed incremental shares from stock plans 1,367 — Weighted average shares for diluted earnings per share calculation 207,928 213,387 Diluted net income (loss) per share attributable to DaVita HealthCare Partners Inc. $ 0.47 $ (0.52 ) Anti-dilutive potential common shares excluded from calculation (1) 2,273 5,992 (1) Shares associated with stock-settled stock appreciation rights and contingently returnable shares that are excluded from the diluted denominator calculation because they are anti-dilutive on their terms or, in the case of the quarter ended March 31, 2015, due to the Company’s net loss attributable to DaVita HealthCare Partners Inc. |
Accounts receivable
Accounts receivable | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Accounts receivable | 3. Accounts receivable Accounts receivable are reduced by an allowance for doubtful accounts. In evaluating the ultimate collectability of 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 dialysis and related lab services 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 three months ended March 31, 2016, the Company’s allowance for doubtful accounts increased by $16,844. This was primarily due to an increase in outstanding balances related to the U.S. dialysis and lab business. There were no unusual transactions impacting the allowance for doubtful accounts. |
Investments in debt and equity
Investments in debt and equity securities and other investments | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 December 31, 2015 Held to Available Held to Available maturity for sale Total maturity for sale Total Certificates of deposit, commercial paper and money market funds due within one year $ 382,399 $ — $ 382,399 $ 406,884 $ — $ 406,884 Investments in mutual funds, debt securities and common stock — 48,667 48,667 — 33,482 33,482 $ 382,399 $ 48,667 $ 431,066 $ 406,884 $ 33,482 $ 440,366 Short-term investments $ 382,399 $ 14,069 $ 396,468 $ 406,884 $ 1,200 $ 408,084 Long-term investments — 34,598 34,598 — 32,282 32,282 $ 382,399 $ 48,667 $ 431,066 $ 406,884 $ 33,482 $ 440,366 The cost of the certificates of deposit, commercial paper and money market funds at March 31, 2016 and December 31, 2015 approximates their fair value. As of March 31, 2016 and December 31, 2015, the available-for-sale investments included $2,779 and $2,589 of gross pre-tax unrealized gains, respectively. During the three months ended March 31, 2016, the Company recorded gross pre-tax unrealized gains of $342, or $229 after tax, in other comprehensive income associated with changes in the fair value of these investments. During the three months ended March 31, 2016, the Company sold investments in mutual funds for net proceeds of $1,062 and recognized a pre-tax gain of $152, or $93 after-tax, which was previously recorded in other comprehensive income. During the three months ended March 31, 2015, the Company sold investments in mutual funds for net proceeds of $1,217 and recognized a pre-tax gain of $257, or $157 after-tax, which was previously recorded in other comprehensive income. The investments in mutual funds classified as available-for-sale are held within a trust to fund existing obligations associated with several of the Company’s non-qualified deferred compensation plans. As of March 31, 2016, the Company held $6,250 of preferred stock in two privately held companies that are accounted for under the cost method as these investments do not have readily determinable fair values. Certain HCP entities are required to maintain minimum cash balances in order to comply with regulatory requirements in conjunction with medical claim reserves. As of March 31, 2016, this minimum cash balance was approximately $ 58,567 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 $ 5,610,643 $ 3,562,534 $ 242,118 $ 9,415,295 Acquisitions 21,910 29,910 45,273 97,093 Divestitures (3,370 ) (5,411 ) — (8,781 ) Goodwill impairment charges — (188,769 ) (4,065 ) (192,834 ) Foreign currency and other adjustments — — (16,294 ) (16,294 ) Balance at December 31, 2015 $ 5,629,183 $ 3,398,264 $ 267,032 $ 9,294,479 Acquisitions — 251,216 9,233 260,449 Divestitures — — — — Goodwill impairment charge — (77,000 ) — (77,000 ) Foreign currency and other adjustments — — 7,700 7,700 Balance at March 31, 2016 $ 5,629,183 $ 3,572,480 $ 283,965 $ 9,485,628 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 international reporting unit. For the Company’s other operating segments, no component below the operating segment level is considered a discrete business and therefore these operating segments directly constitute individual reporting units. During the quarter ended March 31, 2016 the Company completed its annual goodwill impairment assessments for its at-risk HCP reporting units for the quarter ended December 31, 2015. The results of those completed assessments did not differ materially from the preliminary results reported in the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Based on continuing developments at the Company’s HCP reporting units, including changes in expectations concerning government reimbursement and the Company’s expected ability to mitigate them, medical cost trends and other market conditions, the Company performed additional impairment assessments on certain at-risk HCP reporting units during the quarter ended March 31, 2016. The Company’s HCP Nevada, HCP Florida, HCP Colorado Springs, Kidney Care Germany and Kidney Care Malaysia reporting units are at risk of goodwill impairment. As of March 31, 2016, these reporting units have goodwill amounts of $341,668, $537,813, $16,897, $129,242 and $13,998, respectively. As of March 31, 2016, the latest estimated fair values of the HCP Nevada, HCP Florida, HCP Colorado Springs, Kidney Care Germany and Kidney Care Malaysia reporting units (fell short of) exceeded their total carrying amounts by approximately (9.9)%, 4.0%, 15.4%, 13.0% and 6.1%, respectively. For the Company’s at-risk HCP reporting units, further reductions in reimbursement rates, increases in medical costs, or other significant adverse changes in expected future cash flows or valuation assumptions could result in further goodwill impairment charges in the future. For example, a sustained, long-term reduction of 3% in operating income for HCP Nevada or HCP Florida could reduce their estimated fair values by up to 2.4% and 1.8%, respectively. Separately, an increase in their respective discount rates of 100 basis points could reduce the estimated fair values of HCP Nevada and HCP Florida by up to 3.6% and 3.7%, respectively. Except as described above, none of the Company’s various other reporting units was considered at risk of goodwill impairment as of March 31, 2016. Since the dates of the Company’s last annual goodwill impairment tests, there have been certain developments, events, changes in operating performance and other changes in key circumstances that have affected the Company’s businesses. However, except as further described above, these did not cause management to believe it is more likely than not that the fair value of any of its reporting units would be less than its carrying amount. |
Health care costs payable
Health care costs payable | 3 Months Ended |
Mar. 31, 2016 | |
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 health care costs payable for the three months ended March 31, 2016: Three months ended March 31, 2016 Health care costs payable, beginning of the period $ 212,641 Add: Components of incurred health care costs Current year 409,170 Prior years 5,354 Total incurred health care costs 414,524 Less: Claims paid Current year 232,310 Prior years 180,185 Total claims paid 412,495 Health care costs payable, end of the period $ 214,670 The Company’s prior year estimates of health care costs payable increased by $5,354 resulting from certain medical claims being settled for amounts more than originally estimated. When significant increases (decreases) in prior-year health care cost estimates occur that 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 | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 7. Income taxes As of March 31, 2016, the Company’s total liability for unrecognized tax benefits relating to tax positions that do not meet the more-likely-than-not threshold is $39,273, all of which would impact the Company’s effective tax rate if recognized. This balance represents an increase of $262 from the December 31, 2015 balance of $39,011. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax expense. At March 31, 2016 and December 31, 2015, the Company had approximately $10,173 and $9,918, respectively, accrued for interest and penalties related to unrecognized tax benefits, net of federal tax benefits. |
Long-term debt
Long-term debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term debt | 8. Long-term debt Long-term debt was comprised of the following: March 31, December 31, 2016 2015 Senior Secured Credit Facilities: Term Loan A $ 912,500 $ 925,000 Term Loan B 3,438,750 3,447,500 Senior notes 4,500,000 4,500,000 Acquisition obligations and other notes payable 70,738 70,645 Capital lease obligations 287,783 283,185 Total debt principal outstanding 9,209,771 9,226,330 Discount and deferred financing costs (91,950 ) (95,985 ) 9,117,821 9,130,345 Less current portion (137,966 ) (129,037 ) $ 8,979,855 $ 9,001,308 Scheduled maturities of long-term debt at March 31, 2016 were as follows: 2016 (remainder of the year) 103,615 2017 154,525 2018 167,052 2019 741,960 2020 66,216 2021 3,297,308 Thereafter 4,679,095 During the first three months of 2016, the Company made mandatory principal payments under its Senior Secured Credit Facilities totaling $12,500 on the Term Loan A and $8,750 on the Term Loan B. 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 active and 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 March 31, 2016, the Company maintains several interest rate swap agreements that were entered into in March 2013 with amortizing notional amounts totaling $ 724,375 0.49 0.52 2.26 1.75 188,125 1.75 151 25 $692 25 As of March 31, 2016, the Company maintains several forward interest rate cap agreements that were entered into in October 2015 with notional amounts totaling $ 3,500,000 asset $6,545 $7,270 decrease As of March 31, 2016, the Company maintains several forward interest rate cap agreements that were entered into in November 2014 with notional amounts totaling $ 3,500,000 3.50 323 989 As of March 31, 2016, the Company maintains several interest rate cap agreements that were entered into in March 2013 with notional amounts totaling $ 2,735,000 2.50 610 immaterial The following table summarizes the Company’s derivative instruments as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Derivatives designated as hedging instruments Balance sheet location Fair value Balance sheet location Fair value Interest rate swap agreements Other short-term liabilities $ 25 Other short-term assets $ 516 Interest rate cap agreements Other long-term assets $ 6,868 Other long-term assets $ 15,127 The following table summarizes the effects of the Company’s interest rate swap and cap agreements for the three months ended March 31, 2016 and 2015: Amount of (losses) gains Amount of (losses) gains recognized in OCI on interest reclassified from rate swap and cap agreements Location of accumulated OCI into income Three months ended losses reclassified Three months ended March 31, from accumulated March 31, Derivatives designated as cash flow hedges 2016 2015 OCI into income 2016 2015 Interest rate swap agreements $ (692 ) $ (2,694 ) Debt expense $ (151 ) $ (722 ) Interest rate cap agreements (8,259 ) (6,757 ) Debt expense (610 ) (610 ) Tax benefit (expense) 3,482 3,691 296 520 Total $ (5,469 ) $ (5,760 ) $ (465 ) $ (812 ) As of March 31, 2016, the interest rate on the Company’s Term Loan B debt is effectively fixed subject to an embedded LIBOR floor which is higher than actual LIBOR as of such date. The Term Loan B is also subject to interest rate caps if LIBOR should rise above 2.50 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 3.46 1.75 2.75 The Company’s overall weighted average effective interest rate during the first quarter of 2016 was 4.40 As of March 31, 2016, the Company had undrawn revolving credit facilities totaling $1,000,000 91,178 1,286 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 June 2015, the Company finalized the terms of the settlement with plaintiffs, including a settlement amount of $450,000 and attorney fees and other costs of $45,000 which was paid in 2015. 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 HCPs and its subsidiary JSAs) 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. The information requested includes information relating to patient diagnosis coding practices for a number of conditions, including potentially improper historical HCP coding for a particular condition. With respect to that condition, the guidance related to that coding issue was discontinued following the Company’s November 1, 2012 acquisition of HCP and, the Company notified CMS in April 2015 of the coding practice and potential overpayments. The Company is cooperating with the government and is producing the requested information. In addition, the Company is continuing to review other HCP coding practices to determine whether there were any improper coding issues. In that regard, the Company has identified certain additional coding practices which may have been problematic and is in discussions with the DOJ about the scope and nature of a review of claims relating to those practices. 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 has submitted an indemnification claim against the sellers secured by the escrow for any and all liabilities incurred relating to these matters and intends to pursue recovery from the escrow. However, the Company can make no assurances that the indemnification and escrow will cover the full amount of the Company’s potential losses related to these matters. 2015 U.S. Department of Justice Vascular Access Investigation vascular access management services for dialysis patients 2016 U.S. Attorney Prescription Drug Investigation Solari Post-Acquisition Matter OIG for HHS that 16,000 Except for the private civil complaints filed by the relator 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 proceeding will continue to require management’s attention and significant legal expense. Any negative findings in the inquiries or relator proceeding 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 relator’s claims (except as described above), or the potential range of damages, if any. Shareholder Derivative Claims DaVita HealthCare Partners Inc. Derivative Litigation Other The Company 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 DOJ and certain agencies of the U.S. government. The Company has not received any further indication that any of these claims are active except for one payor claim relating to a special needs plan, and some of the other claims may be barred by applicable statutes of limitations. The Company is working to resolve the one active claim of which it is aware and, based on the dollar amount of the claim, expects that its eventual resolution will involve an amount that is immaterial. 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 could 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 $4,700. Certain consolidated joint ventures are originally 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 | 3 Months Ended |
Mar. 31, 2016 | |
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, is attributed among the U.S. dialysis and related lab services business, the HCP business, corporate administrative support, 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 three months ended March 31, 2016, the Company granted 104 stock-settled stock appreciation rights with an aggregate grant-date fair value of $1,432 and a weighted-average expected life of approximately 4.2 years, and also granted 16 stock units with an aggregate grant-date fair value of $1,133 and a weighted-average expected life of approximately 2.8 years. For the three months ended March 31, 2016 and 2015, the Company recognized $24,745 and $33,451, respectively, in total LTIP expense, of which $13,097 and $12,762, respectively, represented stock-based compensation expense for stock appreciation rights, stock units and discounted employee stock plan purchases, which are primarily included in general and administrative expense. The estimated tax benefits recorded for stock-based compensation for the three months ended March 31, 2016 and 2015 was $4,539 and $4,458, respectively. As of March 31, 2016, the Company had $107,824 of total estimated unrecognized compensation costs for outstanding LTIP awards, including $58,688 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 1.0 years and the stock-based component of these LTIP costs over a weighted average remaining period of 1.2 years. For the three months ended March 31, 2016 and 2015, the Company received $8,668 and $9,366, respectively, in actual tax benefits upon the exercise of stock awards. |
Share repurchases
Share repurchases | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Share Repurchases | 12. Share repurchases During the three months ended March 31, 2016, the Company repurchased a total of 3,690 249,481 67.61 On April 14, 2015, the Company’s Board of Directors approved additional share repurchases in the amount of $725,944. These share repurchases are in addition to the $274,056 remaining at that time under the Company’s Board of Directors’ prior share repurchase approval announced in November 2010. As a result of these transactions, the Company now has a total of $259,252 available under the current Board authorizations for additional repurchases as of April 29, 2016. These share repurchase authorizations have no expiration dates. However, the Company is subject to share repurchase limitations under the terms of its Senior Secured Credit Facilities and the indentures governing its Senior Notes. |
Comprehensive income
Comprehensive income | 3 Months Ended |
Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |
Comprehensive income | 13. Comprehensive income For the three months ended March 31, 2016 Interest Foreign Accumulated rate swap currency other and cap Investment translation comprehensive agreements securities adjustments (loss) income Beginning balance $ (10,925 ) $ 1,361 $ (50,262 ) $ (59,826 ) Unrealized (losses) gains (8,951 ) 342 11,181 2,572 Related income tax benefit (expense) 3,482 (113 ) — 3,369 (5,469 ) 229 11,181 5,941 Reclassification from accumulated other comprehensive income into net income 761 (152 ) — 609 Related income tax (expense) benefit (296 ) 59 — (237 ) 465 (93 ) — 372 Ending balance $ (15,929 ) $ 1,497 $ (39,081 ) $ (53,513 ) For the three months ended March 31, 2015 Interest Foreign Accumulated rate swap currency other and cap Investment translation comprehensive agreements securities adjustments income (loss) Beginning balance $ (1,795 ) $ 3,151 $ (26,373 ) $ (25,017 ) Unrealized (losses) gains (9,451 ) 544 (17,885 ) (26,792 ) Related income tax benefit (expense) 3,691 (162 ) — 3,529 (5,760 ) 382 (17,885 ) (23,263 ) Reclassification from accumulated other comprehensive income into net income 1,332 (257 ) — 1,075 Related income tax (expense) benefit (520 ) 100 — (420 ) 812 (157 ) — 655 Ending balance $ (6,743 ) $ 3,376 $ (44,258 ) $ (47,625 ) The reclassification of net swap and cap realized losses into income are recorded as debt expense in the corresponding consolidated statements of operations. See Note 8 to the condensed consolidated financial statements for further details. The reclassification of net investment realized gains into income are recorded in other income in the corresponding consolidated statements of operations. See Note 4 to the condensed consolidated financial statements for further details. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 14. Acquisitions On March 1, 2016, the Company completed its acquisition of The Everett Clinic Medical Group (TEC) pursuant to an agreement and plan of merger dated November 23, 2015, whereby TEC became a 100% consolidated subsidiary of HCP. The total consideration paid at closing for all outstanding common units of TEC was approximately $398,093, net of cash acquired, plus the assumption of certain liabilities totaling approximately $7,287, subject to certain post-closing adjustments. The initial purchase price allocation for the TEC acquisition is recorded at estimated fair values based upon the best information available to management and will be finalized when certain information arranged to be obtained has been received. The fair values of property and equipment and intangible assets were valued by an independent third party and are pending issuance of the final valuation report. Certain income tax amounts are pending issuance of final tax returns. The following table summarizes the assets acquired and liabilities assumed in the transaction and recognized at the acquisition date at their estimated fair values: Current assets, net of cash acquired $ 90,830 Property and equipment 107,310 Amortizable intangible and other long-term assets 34,050 Goodwill 249,278 Current liabilities assumed (49,322 ) Long-term deferred income taxes (16,881 ) Noncontrolling interests assumed (9,885 ) Aggregate purchase price $ 405,380 Amortizable intangible assets acquired in this acquisition had a weighted average estimated useful life of six years. Of the goodwill recognized in this acquisition, approximately $267 The noncontrolling interests acquired as part of the acquisition are stated at estimated fair value based on the estimated fair values of the underlying assets and liabilities of each non-wholly-owned entity. The operating results of TEC are included in the Company’s condensed consolidated financial statements effective March 1, 2016. Other routine acquisitions During the three months ended March 31, 2016, the Company acquired dialysis businesses and other businesses consisting of one dialysis center located outside the U.S., and one other medical business for a total of $ 7,061 100 The following table summarizes the assets acquired and liabilities assumed in these transactions and recognized at their acquisition dates at estimated fair values: Three months ended March 31, 2016 Current assets $ 56 Property and equipment 239 Amortizable intangible and other long-term assets 740 Goodwill 11,171 Noncontrolling interests assumed (5,045 ) Aggregate purchase price $ 7,161 The intangible asset acquired relates to a non-compete agreement with an estimated useful life and amortization period of seven years. The total amount of goodwill deductible for tax purposes associated with these acquisitions was approximately $ 6,851 Other pending transactions In the first quarter of 2016 the Company entered into a definitive agreement, subject to certain closing conditions, with Khazanah Nasional Berhad (Khazanah) and Mitsui and Co., Ltd (Mitsui) whereby Khazanah and Mitsui have subscribed to invest $300,000 over three years for a 40% total stake in the Company’s Asia-Pacific dialysis business. On August 17, 2015, the Company entered into a definitive agreement to acquire Colorado-based Renal Ventures Limited, LLC (Renal Ventures), including a 100 percent interest in all dialysis centers owned by Renal Ventures, for approximately $415,000 in cash, subject to, among other things, adjustments for certain items such as working capital. Renal Ventures currently operates 36 dialysis clinics in six states serving approximately 2,400 patients, and also operates other ancillary businesses. The transaction is subject to approval by the Federal Trade Commission (FTC) including Hart-Scott-Rodino antitrust clearance. The Company anticipates that it will be required by the FTC to divest a certain number of outpatient dialysis centers as a condition of the transaction. The Company expects the transaction to close in 2016. Pro forma financial information The following summary, prepared on a pro forma basis, combines the results of operations as if the acquisitions and divestitures in 2016 had been consummated as of the beginning of 2016 and 2015, after including the impact of certain adjustments such as amortization of intangibles and income tax effects. Three months ended March 31, 2016 2015 (unaudited) Pro forma net revenues $ 3,651,057 $ 3,398,247 Pro forma net income attributable to DaVita HealthCare Partners Inc. 97,010 (109,034 ) Pro forma basic net income per share attributable to DaVita HealthCare Partners Inc. 0.47 (0.51 ) Pro forma diluted net income per share attributable to DaVita HealthCare Partners Inc. 0.47 (0.51 ) 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 acquired companies a total of up to $ 128,603 Contingent earn-out obligations are 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 to these condensed consolidated financial statements for further details. As of March 31, 2016, the Company has estimated the fair value of these contingent earn-out obligations to be $32,903, of which a total of $28,029 is included in other liabilities and the remaining $4,874 is included in other long-term liabilities in the Company’s condensed consolidated balance sheet. The following is a reconciliation of changes in the contingent earn-out obligations for the three months ended March 31, 2016: Beginning balance, January 1, 2016 $ 34,135 Remeasurement of fair value for contingent earn-out obligations (373 ) Payments on contingent earn-out obligations (859 ) $ 32,903 |
Variable interest entities
Variable interest entities | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable interest entities | 15. 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 entities for which (i) the entity’s equity is not sufficient to finance its activities without additional subordinated financial support; (ii) 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) the voting rights of some investors are not proportional to their obligations to absorb the entity’s losses. 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 these 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 the nominee owners that effectively indemnify these parties from the economic losses from, or entitle the Company to the economic benefits of, these entities. The analyses upon which these consolidation determinations rest are complex, involve uncertainties, and require significant judgment on various matters, some of which could be subject to different interpretations. At March 31, 2016, these condensed consolidated financial statements include total assets of VIEs of $854,341 and total liabilities and noncontrolling interests of VIEs to third parties of $347,845. The Company also sponsors certain deferred compensation plans whose trusts qualify as VIEs and the Company consolidates each of these plans as their primary beneficiary. The assets of these plans are recorded in short-term or long-term investments with matching offsetting liabilities recorded in accrued compensation and benefits and other long-term liabilities. See Note 4 for disclosures on the assets of these consolidated non-qualified deferred compensation plans. |
Fair value of financial instrum
Fair value of financial instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | 16. 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 Financial Accounting Standards Board (FASB). The following table summarizes the Company’s assets, liabilities and temporary equity measured at fair value on a recurring basis as of March 31, 2016: Quoted prices in Significant active Significant other unobservable identical assets observable inputs Total (Level 1) (Level 2) (Level 3) Assets Available-for-sale securities $ 48,667 $ 48,667 $ — $ — Interest rate cap agreements $ 6,868 $ — $ 6,868 $ — Funds on deposit with third parties $ 76,527 $ 76,527 $ — $ — Liabilities Contingent earn-out obligations $ 32,903 $ — $ — $ 32,903 Interest rate swap agreements $ 25 $ — $ 25 — Temporary equity Noncontrolling interests subject to put provisions $ 912,705 $ — $ — $ 912,705 The available-for-sale securities represent investments in various open-ended registered investment companies, or mutual funds, and are recorded at estimated 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 estimated from 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 value estimates 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 are remeasured as of each reporting date and could fluctuate based upon any significant changes in key assumptions, such as changes in the Company credit risk adjusted rate that is used to discount obligations to present value. See Note 10 to these condensed consolidated financial statements for a discussion of the Company’s methodology for estimating the fair value of noncontrolling interests subject to put obligations. Other financial instruments consist primarily of cash, accounts receivable, 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 March 31, 2016 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 $4,351,250 as of March 31, 2016, and the fair value was approximately $4,358,000 based upon quoted market prices. The carrying balance of the Company’s senior notes was $4,500,000 as of March 31, 2016 and their fair value was approximately $4,557,000, based upon quoted market prices. |
Segment reporting
Segment reporting | 3 Months Ended |
Mar. 31, 2016 | |
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 administrative support. The Company’s U.S. dialysis and related lab services business is its 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 over two decades of providing coordinated outcomes-based medical care in a cost-effective manner. The Company’s ancillary services and strategic initiatives consist 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 performance 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 Asia Pacific, Latin America, and European and Middle Eastern markets, and under the Saudi Ministry of Health charter. 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 performance of the operating segments. For internal management reporting, segment operations include direct segment operating expenses but exclude corporate administrative 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 administrative support costs are 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 March 31, 2016 2015 Segment net revenues: U.S. dialysis and related lab services Patient service revenues: External sources $ 2,313,663 $ 2,154,294 Intersegment revenues 14,308 11,856 Total dialysis and related lab services revenues 2,327,971 2,166,150 Less: Provision for uncollectible accounts (104,751 ) (97,477 ) Net dialysis and related lab services patient service revenues 2,223,220 2,068,673 Other revenues (1) 3,973 3,184 Total net dialysis and related lab services revenues 2,227,193 2,071,857 HCP HCP revenues: Capitated revenues 866,019 832,472 Net patient service revenues 108,238 80,210 Other revenues (2) 14,530 15,053 Intersegment capitated and other revenues 71 37 Total revenues 988,858 927,772 Other—Ancillary services and strategic initiatives Net patient service revenues 51,383 35,624 Capitated revenues 21,028 18,043 Other external sources 307,053 246,562 Intersegment revenues 11,827 4,942 Total ancillary services and strategic initiatives revenues 391,291 305,171 Total net segment revenues 3,607,342 3,304,800 Elimination of intersegment revenues (26,206 ) (16,835 ) Consolidated net revenues $ 3,581,136 $ 3,287,965 Segment operating margin (loss): U.S. dialysis and related lab services $ 440,055 $ (104,489 ) HCP (57,145 ) 60,294 Other—Ancillary services and strategic initiatives (11,100 ) (13,828 ) Total segment operating margin (loss) 371,810 (58,023 ) Reconciliation of segment operating margin to consolidated income before income taxes: Corporate administrative support (6,921 ) (6,133 ) Consolidated operating income 364,889 (64,156 ) Debt expense (102,884 ) (97,392 ) Debt redemption and refinancing charges Other income (loss), net 2,976 (533 ) Consolidated income (loss) before income taxes $ 264,981 $ (162,081 ) (1) (2) 50 Depreciation and amortization expense by reportable segment is as follows: Three months ended March 31, 2016 2015 U.S. dialysis and related lab services $ 116,537 $ 104,993 HCP 46,263 43,279 Ancillary services and strategic initiatives 6,555 5,517 $ 169,355 $ 153,789 Summary of assets by reportable segment is as follows: March 31, December 31, 2016 2015 Segment assets U.S. dialysis and related lab services (including equity investments of $30,747 $ 11,049,206 $ 11,591,507 HCP (including equity investments of $23,990 and $22,714, respectively) 6,601,110 6,150,666 Other—Ancillary services and strategic initiatives (including equity investments of $20,322 and $20,853, respectively) 863,882 772,702 Consolidated assets $ 18,514,198 $ 18,514,875 Expenditures for property and equipment by reportable segment is as follows: Three months ended March 31, 2016 2015 U.S. dialysis and related lab services. $ 133,450 $ 105,395 HCP 20,145 5,034 Ancillary services and strategic initiatives 19,592 10,992 $ 173,187 $ 121,421 |
Changes in DaVita HealthCare Pa
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Net income (loss) attributable to DaVita HealthCare Partners Inc. $ 97,434 $ (110,617 ) Increase in paid-in capital for sales of noncontrolling interests 885 — Decrease in paid-in capital for the purchase of noncontrolling interests and adjustments to ownership interest (3,337 ) — Net transfers to noncontrolling interests (2,452 ) — Net income (loss) attributable to DaVita HealthCare Partners Inc., net of transfers to noncontrolling interests $ 94,982 $ (110,617 ) |
New accounting standards
New accounting standards | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
New accounting standards | 19. New accounting standards The Company adopted Accounting Standards Update (ASU) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, The Company adopted ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , Intangibles-Goodwill and Other-Internal-Use Software The Company adopted ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU No. 2016-01, Financial Statements – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). In July 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date. |
Condensed consolidating financi
Condensed consolidating financial statements | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed 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 subsidiaries. The subsidiary guarantors have guaranteed the senior notes on a joint and several basis. However, a subsidiary guarantor will be released from its obligations under its guarantee of the senior notes and the indentures governing the senior notes if, in general, there is a sale or other disposition of all or substantially all of the assets of such subsidiary guarantor, including by merger or consolidation, or a sale or other disposition of all of the equity interests in such subsidiary guarantor held by the Company and its restricted subsidiaries, as defined in the indentures; such subsidiary guarantor is designated by the Company as an unrestricted subsidiary, as defined in the indentures, or otherwise ceases to be a restricted subsidiary of the Company, in each case in accordance with the indentures; or such subsidiary guarantor no longer guarantees any other indebtedness, as defined in the indentures, of the Company or any of its restricted subsidiaries, except for guarantees that are contemporaneously released. The senior notes are not guaranteed by certain of the Company’s domestic subsidiaries, any of the Company’s foreign subsidiaries, or any entities that do not constitute subsidiaries within the meaning of the indentures, such as corporations in which the Company holds capital stock with less than a majority of the voting power, joint ventures and partnerships in which the Company holds less than a majority of the equity or voting interests, non-owned entities and third parties. Condensed Consolidating Statements of Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2016 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,653,312 $ 863,842 $ (39,416 ) $ 2,477,738 Less: Provision for uncollectible accounts — (58,813 ) (50,392 ) — (109,205 ) Net patient service revenues — 1,594,499 813,450 (39,416 ) 2,368,533 Capitated revenues — 467,001 420,173 (127 ) 887,047 Other revenues 186,975 485,316 31,716 (378,451 ) 325,556 Total net revenues 186,975 2,546,816 1,265,339 (417,994 ) 3,581,136 Operating expenses 122,273 2,377,630 1,134,338 (417,994 ) 3,216,247 Operating income 64,702 169,186 131,001 — 364,889 Debt expense, including debt refinancing charges (101,101 ) (92,173 ) (11,514 ) 101,904 (102,884 ) Other income 98,560 4,336 1,984 (101,904 ) 2,976 Income tax expense 35,146 73,254 18,422 — 126,822 Equity earnings in subsidiaries 70,419 62,324 — (132,743 ) — Net income 97,434 70,419 103,049 (132,743 ) 138,159 Less: Net income attributable to noncontrolling interests — — — (40,725 ) (40,725 ) Net income attributable to DaVita HealthCare Partners Inc. $ 97,434 $ 70,419 $ 103,049 $ (173,468 ) $ 97,434 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2015 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,581,959 $ 723,843 $ (33,987 ) $ 2,271,815 Less: Provision for uncollectible accounts — (64,077 ) (35,087 ) — (99,164 ) Net patient service revenues — 1,517,882 688,756 (33,987 ) 2,172,651 Capitated revenues — 447,338 403,124 53 850,515 Other revenues 168,265 411,028 6,312 (320,806 ) 264,799 Total net revenues 168,265 2,376,248 1,098,192 (354,740 ) 3,287,965 Operating expenses 123,769 2,597,953 985,139 (354,740 ) 3,352,121 Operating income (loss) 44,496 (221,705 ) 113,053 — (64,156 ) Debt expense, including debt refinancing charges (95,478 ) (85,783 ) (9,286 ) 93,155 (97,392 ) Other income 91,023 53 1,546 (93,155 ) (533 ) Income tax expense (benefit) 17,514 (129,235 ) 25,788 — (85,933 ) Equity (loss) earnings in subsidiaries (133,144 ) 45,056 — 88,088 — Net (loss) income (110,617 ) (133,144 ) 79,525 88,088 (76,148 ) Less: Net income attributable to noncontrolling interests — — — (34,469 ) (34,469 ) Net (loss) income attributable to DaVita HealthCare Partners Inc. $ (110,617 ) $ (133,144 ) $ 79,525 $ 53,619 $ (110,617 ) Condensed Consolidating Statements of Comprehensive Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2016 Partners subsidiaries subsidiaries adjustments total Net income $ 97,434 $ 70,419 $ 103,049 $ (132,743 ) $ 138,159 Other comprehensive (loss) income (4,868 ) — 11,181 — 6,313 Total comprehensive income 92,566 70,419 114,230 (132,743 ) 144,472 Less: comprehensive income attributable to the noncontrolling interests — — — (40,725 ) (40,725 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 92,566 $ 70,419 $ 114,230 $ (173,468 ) $ 103,747 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2015 Partners subsidiaries subsidiaries adjustments total Net (loss) income $ (110,617 ) $ (133,144 ) $ 79,525 $ 88,088 $ (76,148 ) Other comprehensive loss (4,723 ) — (17,885 ) — (22,608 ) Total comprehensive (loss) income (115,340 ) (133,144 ) 61,640 88,088 (98,756 ) Less: comprehensive income attributable to the noncontrolling interests — — — (34,469 ) (34,469 ) Comprehensive (loss) income attributable to DaVita HealthCare Partners Inc. $ (115,340 ) $ (133,144 ) $ 61,640 $ 53,619 $ (133,225 ) Condensed Consolidating Balance Sheets DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of March 31, 2016 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 667,109 $ 73,221 $ 301,097 $ — $ 1,041,427 Accounts receivable, net — 937,747 917,538 — 1,855,285 Other current assets 408,369 792,812 101,667 — 1,302,848 Total current assets 1,075,478 1,803,780 1,320,302 — 4,199,560 Property and equipment, net 270,106 1,555,802 1,085,297 — 2,911,205 Amortizable intangibles, net 660 1,596,973 81,074 — 1,678,707 Investments in subsidiaries 9,019,776 2,020,158 — (11,039,934 ) — Intercompany receivables 3,797,849 — 697,353 (4,495,202 ) — Other long-term assets and investments 67,725 55,403 115,970 — 239,098 Goodwill — 7,753,168 1,732,460 — 9,485,628 Total assets $ 14,231,594 $ 14,785,284 $ 5,032,456 $ (15,535,136 ) $ 18,514,198 Current liabilities $ 236,695 $ 1,686,198 $ 520,725 $ — $ 2,443,618 Intercompany payables — 2,889,630 1,605,572 (4,495,202 ) — Long-term debt and other long-term liabilities 8,713,321 1,189,680 333,142 — 10,236,143 Noncontrolling interests subject to put provisions 577,652 — — 335,053 912,705 Total DaVita HealthCare Partners Inc. shareholders’ equity 4,703,926 9,019,776 2,020,158 (11,039,934 ) 4,703,926 Noncontrolling interests not subject to put provisions — — 552,859 (335,053 ) 217,806 Total equity 4,703,926 9,019,776 2,573,017 (11,374,987 ) 4,921,732 Total liabilities and equity $ 14,231,594 $ 14,785,284 $ 5,032,456 $ (15,535,136 ) $ 18,514,198 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of December 31, 2015 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 1,186,636 $ 109,357 $ 203,123 $ — $ 1,499,116 Accounts receivable, net — 929,390 794,838 — 1,724,228 Other current assets 431,504 769,947 78,485 — 1,279,936 Total current assets 1,618,140 1,808,694 1,076,446 — 4,503,280 Property and equipment, net 268,066 1,575,890 944,784 — 2,788,740 Intangible assets, net 540 1,634,920 51,866 — 1,687,326 Investments in subsidiaries 8,893,079 1,597,185 — (10,490,264 ) — Intercompany receivables 3,474,133 — 701,814 (4,175,947 ) — Other long-term assets and investments 74,458 53,346 113,246 — 241,050 Goodwill — 7,834,257 1,460,222 — 9,294,479 Total assets $ 14,328,416 $ 14,504,292 $ 4,348,378 $ (14,666,211 ) $ 18,514,875 Current liabilities $ 185,217 $ 1,730,123 $ 483,798 $ — $ 2,399,138 Intercompany payables — 2,750,102 1,425,845 (4,175,947 ) — Long-term debt and other long-term liabilities 8,730,673 1,130,988 305,838 — 10,167,499 Noncontrolling interests subject to put provisions 541,746 — — 322,320 864,066 Total DaVita HealthCare Partners Inc. shareholders' equity 4,870,780 8,893,079 1,597,185 (10,490,264 ) 4,870,780 Noncontrolling interests not subject to put provisions — — 535,712 (322,320 ) 213,392 Total equity 4,870,780 8,893,079 2,132,897 (10,812,584 ) 5,084,172 Total liabilities and equity $ 14,328,416 $ 14,504,292 $ 4,348,378 $ (14,666,211 ) $ 18,514,875 Condensed Consolidating Statements of Cash Flows DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2016 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net income $ 97,434 $ 70,419 $ 103,049 $ (132,743 ) $ 138,159 Changes in operating assets and liabilities and non-cash items included in net income (18,699 ) 217,405 (40,606 ) 132,743 290,843 Net cash provided by operating activities 78,735 287,824 62,443 — 429,002 Cash flows from investing activities: Additions of property and equipment, net (16,865 ) (86,055 ) (70,267 ) — (173,187 ) Acquisitions — (400,093 ) (5,061 ) — (405,154 ) Proceeds from asset and business sales — 4,657 — — 4,657 (Purchases) proceeds from investment sales and other items 23,387 (7,438 ) 3,424 — 19,373 Net cash provided by (used in) investing activities 6,522 (488,929 ) (71,904 ) — (554,311 ) Cash flows from financing activities: Long-term debt and related financing costs, net (21,247 ) (1,977 ) (1,347 ) — (24,571 ) Intercompany borrowing (payments) (315,986 ) 167,702 148,284 — — Other items (267,551 ) (756 ) (40,219 ) — (308,526 ) Net cash provided by (used in) financing activities (604,784 ) 164,969 106,718 — (333,097 ) Effect of exchange rate changes on cash — — 717 — 717 Net (decrease) increase in cash and cash equivalents (519,527 ) (36,136 ) 97,974 — (457,689 ) Cash and cash equivalents at beginning of period 1,186,636 109,357 203,123 — 1,499,116 Cash and cash equivalents at end of period $ 667,109 $ 73,221 $ 301,097 $ — $ 1,041,427 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2015 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net (loss) income $ (110,617 ) $ (133,144 ) $ 79,525 $ 88,088 $ (76,148 ) Changes in operating assets and liabilities and non-cash items included in net income 154,352 410,880 9,093 (88,088 ) 486,237 Net cash provided by operating activities 43,735 277,736 88,618 — 410,089 Cash flows from investing activities: Additions of property and equipment, net (6,230 ) (48,802 ) (66,389 ) — (121,421 ) Acquisitions — (40,018 ) (632 ) — (40,650 ) Proceeds from asset and business sales — 2,565 — — 2,565 Purchases/proceeds from investment sales and other items (84,640 ) (537 ) (7,604 ) — (92,781 ) Net cash used in investing activities (90,870 ) (86,792 ) (74,625 ) — (252,287 ) Cash flows from financing activities: Long-term debt and related financing costs, net (21,250 ) (3,620 ) (3,569 ) — (28,439 ) Intercompany borrowing (payments) 180,207 (202,804 ) 22,597 — — Other items (56,828 ) — (25,601 ) — (82,429 ) Net cash provided by (used in) financing activities 102,129 (206,424 ) (6,573 ) — (110,868 ) Effect of exchange rate changes on cash — — (904 ) — (904 ) Net increase (decrease) in cash and cash equivalents 54,994 (15,480 ) 6,516 — 46,030 Cash and cash equivalents at beginning of period 698,876 77,921 188,444 — 965,241 Cash and cash equivalents at end of period $ 753,870 $ 62,441 $ 194,960 $ — $ 1,011,271 |
Supplemental data
Supplemental data | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental data | 21. 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 three months ended March 31, 2016 Total Groups Subsidiaries Subsidiaries (1) Patient service operating revenues $ 2,477,738 $ 62,692 $ — $ 2,415,046 Less: Provision for uncollectible accounts (109,205 ) (2,093 ) — (107,112 ) Net patient service operating revenues 2,368,533 60,599 — 2,307,934 Capitated revenues 887,047 398,429 — 488,618 Other revenues 325,556 7,573 — 317,983 Total net operating revenues 3,581,136 466,601 — 3,114,535 Operating expenses 3,216,247 468,588 (158 ) 2,747,817 Operating income 364,889 (1,987 ) 158 366,718 Debt expense, including refinancing charges (102,884 ) (3,740 ) — (99,144 ) Other income 2,976 155 — 2,821 Income tax expense 126,822 11,295 63 115,464 Net income 138,159 (16,867 ) 95 154,931 Less: Net income attributable to noncontrolling interests (40,725 ) — — (40,725 ) Net income attributable to DaVita HealthCare Partners Inc. $ 97,434 $ (16,867 ) $ 95 $ 114,206 (1) Condensed Consolidating Statements of Comprehensive Income Company and Consolidated Physician Unrestricted Restricted For the three months ended March 31, 2016 Total Groups Subsidiaries Subsidiaries (1) Net income $ 138,159 $ (16,867 ) $ 95 $ 154,931 Other comprehensive loss 6,313 — — 6,313 Total comprehensive income 144,472 (16,867 ) 95 161,244 Less: comprehensive loss attributable to the noncontrolling interests (40,725 ) — — (40,725 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 103,747 $ (16,867 ) $ 95 $ 120,519 (1) Condensed Consolidating Balance Sheets Company and Consolidated Physician Unrestricted Restricted As of March 31, 2016 Total Groups Subsidiaries Subsidiaries (1) Cash and cash equivalents $ 1,041,427 $ 143,953 $ — $ 897,474 Accounts receivable, net 1,855,285 435,688 — 1,419,597 Other current assets 1,302,848 22,287 — 1,280,561 Total current assets 4,199,560 601,928 — 3,597,632 Property and equipment, net 2,911,205 1,678 — 2,909,527 Amortizable intangibles, net 1,678,707 5,656 — 1,673,051 Other long-term assets 239,098 74,692 2,982 161,424 Goodwill 9,485,628 16,234 — 9,469,394 Total assets $ 18,514,198 $ 700,188 $ 2,982 $ 17,811,028 Current liabilities $ 2,443,618 $ 255,174 $ — $ 2,188,444 Payables to parent — 343,657 2,982 (346,639 ) Long-term debt and other long-term liabilities 10,236,143 49,705 — 10,186,438 Noncontrolling interests subject to put provisions 912,705 — — 912,705 Total DaVita HealthCare Partners Inc. shareholders’ equity 4,703,926 51,652 — 4,652,274 Noncontrolling interests not subject to put provisions 217,806 — — 217,806 Shareholders’ equity 4,921,732 51,652 — 4,870,080 Total liabilities and shareholder’s equity $ 18,514,198 $ 700,188 $ 2,982 $ 17,811,028 (1) Condensed Consolidating Statements of Cash Flows Company and Consolidated Physician Unrestricted Restricted For the three months ended March 31, 2016 Total Groups Subsidiaries Subsidiaries (1) Cash flows from operating activities: Net income $ 138,159 $ (16,867 ) $ 95 $ 154,931 Changes in operating and intercompany assets and liabilities and non-cash items included in net income 290,843 (64,656 ) (95 ) 355,594 Net cash provided by (used in) operating activities 429,002 (81,523 ) — 510,525 Cash flows from investing activities: Additions of property and equipment (173,187 ) (200 ) — (172,987 ) Acquisitions and divestitures, net (405,154 ) — — (405,154 ) Proceeds from discontinued operations 4,657 — — 4,657 Investments and other items 19,373 (536 ) — 19,909 Net cash used in investing activities (554,311 ) (736 ) — (553,575 ) Cash flows from financing activities: Long-term debt (24,571 ) — — (24,571 ) Intercompany — 137,967 — (137,967 ) Other items (308,526 ) — — (308,526 ) Net cash (used in) provided by financing activities (333,097 ) 137,967 — (471,064 ) Effect of exchange rate changes on cash 717 — — 717 Net increase (decrease) in cash (457,689 ) 55,708 — (513,397 ) Cash and cash equivalents at beginning of period 1,499,116 88,245 — 1,410,871 Cash and cash equivalents at end of period $ 1,041,427 $ 143,953 $ — $ 897,474 (1) |
Condensed consolidated interi29
Condensed consolidated interim financial statements (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Accounts receivable | Accounts receivable are reduced by an allowance for doubtful accounts. In evaluating the ultimate collectability of 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 dialysis and related lab services 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. |
New accounting standards | The Company adopted Accounting Standards Update (ASU) No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, The Company adopted ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , Intangibles-Goodwill and Other-Internal-Use Software The Company adopted ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU No. 2016-01, Financial Statements – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). In July 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date. |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Basic: Net income (loss) attributable to DaVita HealthCare Partners Inc. $ 97,434 $ (110,617 ) Weighted average shares outstanding during the period 206,561 215,581 Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger (2,194 ) (2,194 ) Weighted average shares for basic earnings per share calculation 204,367 213,387 Basic net income (loss) per share attributable to DaVita HealthCare Partners Inc. $ 0.48 $ (0.52 ) Diluted: Net income (loss) attributable to DaVita HealthCare Partners Inc. $ 97,434 $ (110,617 ) Weighted average shares outstanding during the period 206,561 215,581 Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger — (2,194 ) Assumed incremental shares from stock plans 1,367 — Weighted average shares for diluted earnings per share calculation 207,928 213,387 Diluted net income (loss) per share attributable to DaVita HealthCare Partners Inc. $ 0.47 $ (0.52 ) Anti-dilutive potential common shares excluded from calculation (1) 2,273 5,992 (1) Shares associated with stock-settled stock appreciation rights and contingently returnable shares that are excluded from the diluted denominator calculation because they are anti-dilutive on their terms or, in the case of the quarter ended March 31, 2015, due to the Company’s net loss attributable to DaVita HealthCare Partners Inc. |
Investments in debt and equit31
Investments in debt and equity securities and other investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | The Company’s investments in securities consist of the following: March 31, 2016 December 31, 2015 Held to Available Held to Available maturity for sale Total maturity for sale Total Certificates of deposit, commercial paper and money market funds due within one year $ 382,399 $ — $ 382,399 $ 406,884 $ — $ 406,884 Investments in mutual funds, debt securities and common stock — 48,667 48,667 — 33,482 33,482 $ 382,399 $ 48,667 $ 431,066 $ 406,884 $ 33,482 $ 440,366 Short-term investments $ 382,399 $ 14,069 $ 396,468 $ 406,884 $ 1,200 $ 408,084 Long-term investments — 34,598 34,598 — 32,282 32,282 $ 382,399 $ 48,667 $ 431,066 $ 406,884 $ 33,482 $ 440,366 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 $ 5,610,643 $ 3,562,534 $ 242,118 $ 9,415,295 Acquisitions 21,910 29,910 45,273 97,093 Divestitures (3,370 ) (5,411 ) — (8,781 ) Goodwill impairment charges — (188,769 ) (4,065 ) (192,834 ) Foreign currency and other adjustments — — (16,294 ) (16,294 ) Balance at December 31, 2015 $ 5,629,183 $ 3,398,264 $ 267,032 $ 9,294,479 Acquisitions — 251,216 9,233 260,449 Divestitures — — — — Goodwill impairment charge — (77,000 ) — (77,000 ) Foreign currency and other adjustments — — 7,700 7,700 Balance at March 31, 2016 $ 5,629,183 $ 3,572,480 $ 283,965 $ 9,485,628 |
Health care costs payable (Tabl
Health care costs payable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Health Care Organizations [Abstract] | |
Components of Changes in Health Care Costs Payable | The following table shows the components of changes in health care costs payable for the three months ended March 31, 2016: Three months ended March 31, 2016 Health care costs payable, beginning of the period $ 212,641 Add: Components of incurred health care costs Current year 409,170 Prior years 5,354 Total incurred health care costs 414,524 Less: Claims paid Current year 232,310 Prior years 180,185 Total claims paid 412,495 Health care costs payable, end of the period $ 214,670 |
Long-term debt (Tables)
Long-term debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt was comprised of the following: March 31, December 31, 2016 2015 Senior Secured Credit Facilities: Term Loan A $ 912,500 $ 925,000 Term Loan B 3,438,750 3,447,500 Senior notes 4,500,000 4,500,000 Acquisition obligations and other notes payable 70,738 70,645 Capital lease obligations 287,783 283,185 Total debt principal outstanding 9,209,771 9,226,330 Discount and deferred financing costs (91,950 ) (95,985 ) 9,117,821 9,130,345 Less current portion (137,966 ) (129,037 ) $ 8,979,855 $ 9,001,308 |
Scheduled Maturities of Long-term Debt | Scheduled maturities of long-term debt at March 31, 2016 were as follows: 2016 (remainder of the year) 103,615 2017 154,525 2018 167,052 2019 741,960 2020 66,216 2021 3,297,308 Thereafter 4,679,095 |
Derivative Instruments | The following table summarizes the Company’s derivative instruments as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Derivatives designated as hedging instruments Balance sheet location Fair value Balance sheet location Fair value Interest rate swap agreements Other short-term liabilities $ 25 Other short-term assets $ 516 Interest rate cap agreements Other long-term assets $ 6,868 Other long-term assets $ 15,127 |
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 months ended March 31, 2016 and 2015: Amount of (losses) gains Amount of (losses) gains recognized in OCI on interest reclassified from rate swap and cap agreements Location of accumulated OCI into income Three months ended losses reclassified Three months ended March 31, from accumulated March 31, Derivatives designated as cash flow hedges 2016 2015 OCI into income 2016 2015 Interest rate swap agreements $ (692 ) $ (2,694 ) Debt expense $ (151 ) $ (722 ) Interest rate cap agreements (8,259 ) (6,757 ) Debt expense (610 ) (610 ) Tax benefit (expense) 3,482 3,691 296 520 Total $ (5,469 ) $ (5,760 ) $ (465 ) $ (812 ) |
Comprehensive income (Tables)
Comprehensive income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |
Comprehensive income | For the three months ended March 31, 2016 Interest Foreign Accumulated rate swap currency other and cap Investment translation comprehensive agreements securities adjustments (loss) income Beginning balance $ (10,925 ) $ 1,361 $ (50,262 ) $ (59,826 ) Unrealized (losses) gains (8,951 ) 342 11,181 2,572 Related income tax benefit (expense) 3,482 (113 ) — 3,369 (5,469 ) 229 11,181 5,941 Reclassification from accumulated other comprehensive income into net income 761 (152 ) — 609 Related income tax (expense) benefit (296 ) 59 — (237 ) 465 (93 ) — 372 Ending balance $ (15,929 ) $ 1,497 $ (39,081 ) $ (53,513 ) For the three months ended March 31, 2015 Interest Foreign Accumulated rate swap currency other and cap Investment translation comprehensive agreements securities adjustments income (loss) Beginning balance $ (1,795 ) $ 3,151 $ (26,373 ) $ (25,017 ) Unrealized (losses) gains (9,451 ) 544 (17,885 ) (26,792 ) Related income tax benefit (expense) 3,691 (162 ) — 3,529 (5,760 ) 382 (17,885 ) (23,263 ) Reclassification from accumulated other comprehensive income into net income 1,332 (257 ) — 1,075 Related income tax (expense) benefit (520 ) 100 — (420 ) 812 (157 ) — 655 Ending balance $ (6,743 ) $ 3,376 $ (44,258 ) $ (47,625 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Acquisition [Line Items] | |
Aggregate Purchase Cost Allocations for Acquisitions | The following table summarizes the assets acquired and liabilities assumed in the transaction and recognized at the acquisition date at their estimated fair values: Current assets, net of cash acquired $ 90,830 Property and equipment 107,310 Amortizable intangible and other long-term assets 34,050 Goodwill 249,278 Current liabilities assumed (49,322 ) Long-term deferred income taxes (16,881 ) Noncontrolling interests assumed (9,885 ) Aggregate purchase price $ 405,380 |
Pro Forma Financial Information, Results of Operations | The following summary, prepared on a pro forma basis, combines the results of operations as if the acquisitions and divestitures in 2016 had been consummated as of the beginning of 2016 and 2015, after including the impact of certain adjustments such as amortization of intangibles and income tax effects. Three months ended March 31, 2016 2015 (unaudited) Pro forma net revenues $ 3,651,057 $ 3,398,247 Pro forma net income attributable to DaVita HealthCare Partners Inc. 97,010 (109,034 ) Pro forma basic net income per share attributable to DaVita HealthCare Partners Inc. 0.47 (0.51 ) Pro forma diluted net income per share attributable to DaVita HealthCare Partners Inc. 0.47 (0.51 ) |
Reconciliation of Changes in Contingent Earn-Out Obligations | The following is a reconciliation of changes in the contingent earn-out obligations for the three months ended March 31, 2016: Beginning balance, January 1, 2016 $ 34,135 Remeasurement of fair value for contingent earn-out obligations (373 ) Payments on contingent earn-out obligations (859 ) $ 32,903 |
Dialysis businesses and other businesses | |
Business Acquisition [Line Items] | |
Aggregate Purchase Cost Allocations for Acquisitions | The following table summarizes the assets acquired and liabilities assumed in these transactions and recognized at their acquisition dates at estimated fair values: Three months ended March 31, 2016 Current assets $ 56 Property and equipment 239 Amortizable intangible and other long-term assets 740 Goodwill 11,171 Noncontrolling interests assumed (5,045 ) Aggregate purchase price $ 7,161 |
Fair value of financial instr37
Fair value of financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016: Quoted prices in Significant active Significant other unobservable identical assets observable inputs Total (Level 1) (Level 2) (Level 3) Assets Available-for-sale securities $ 48,667 $ 48,667 $ — $ — Interest rate cap agreements $ 6,868 $ — $ 6,868 $ — Funds on deposit with third parties $ 76,527 $ 76,527 $ — $ — Liabilities Contingent earn-out obligations $ 32,903 $ — $ — $ 32,903 Interest rate swap agreements $ 25 $ — $ 25 — Temporary equity Noncontrolling interests subject to put provisions $ 912,705 $ — $ — $ 912,705 |
Segment reporting (Tables)
Segment reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Segment net revenues: U.S. dialysis and related lab services Patient service revenues: External sources $ 2,313,663 $ 2,154,294 Intersegment revenues 14,308 11,856 Total dialysis and related lab services revenues 2,327,971 2,166,150 Less: Provision for uncollectible accounts (104,751 ) (97,477 ) Net dialysis and related lab services patient service revenues 2,223,220 2,068,673 Other revenues (1) 3,973 3,184 Total net dialysis and related lab services revenues 2,227,193 2,071,857 HCP HCP revenues: Capitated revenues 866,019 832,472 Net patient service revenues 108,238 80,210 Other revenues (2) 14,530 15,053 Intersegment capitated and other revenues 71 37 Total revenues 988,858 927,772 Other—Ancillary services and strategic initiatives Net patient service revenues 51,383 35,624 Capitated revenues 21,028 18,043 Other external sources 307,053 246,562 Intersegment revenues 11,827 4,942 Total ancillary services and strategic initiatives revenues 391,291 305,171 Total net segment revenues 3,607,342 3,304,800 Elimination of intersegment revenues (26,206 ) (16,835 ) Consolidated net revenues $ 3,581,136 $ 3,287,965 Segment operating margin (loss): U.S. dialysis and related lab services $ 440,055 $ (104,489 ) HCP (57,145 ) 60,294 Other—Ancillary services and strategic initiatives (11,100 ) (13,828 ) Total segment operating margin (loss) 371,810 (58,023 ) Reconciliation of segment operating margin to consolidated income before income taxes: Corporate administrative support (6,921 ) (6,133 ) Consolidated operating income 364,889 (64,156 ) Debt expense (102,884 ) (97,392 ) Debt redemption and refinancing charges Other income (loss), net 2,976 (533 ) Consolidated income (loss) before income taxes $ 264,981 $ (162,081 ) (1) (2) 50 |
Summary of Depreciation and Amortization Expense by Reportable Segment | Depreciation and amortization expense by reportable segment is as follows: Three months ended March 31, 2016 2015 U.S. dialysis and related lab services $ 116,537 $ 104,993 HCP 46,263 43,279 Ancillary services and strategic initiatives 6,555 5,517 $ 169,355 $ 153,789 |
Summary of Assets by Reportable Segment | Summary of assets by reportable segment is as follows: March 31, December 31, 2016 2015 Segment assets U.S. dialysis and related lab services (including equity investments of $30,747 $ 11,049,206 $ 11,591,507 HCP (including equity investments of $23,990 and $22,714, respectively) 6,601,110 6,150,666 Other—Ancillary services and strategic initiatives (including equity investments of $20,322 and $20,853, respectively) 863,882 772,702 Consolidated assets $ 18,514,198 $ 18,514,875 |
Summary of Expenditures for Property and Equipment by Reportable Segment | Expenditures for property and equipment by reportable segment is as follows: Three months ended March 31, 2016 2015 U.S. dialysis and related lab services. $ 133,450 $ 105,395 HCP 20,145 5,034 Ancillary services and strategic initiatives 19,592 10,992 $ 173,187 $ 121,421 |
Changes in DaVita HealthCare 39
Changes in DaVita HealthCare Partners Inc.'s ownership interest in consolidated subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Net income (loss) attributable to DaVita HealthCare Partners Inc. $ 97,434 $ (110,617 ) Increase in paid-in capital for sales of noncontrolling interests 885 — Decrease in paid-in capital for the purchase of noncontrolling interests and adjustments to ownership interest (3,337 ) — Net transfers to noncontrolling interests (2,452 ) — Net income (loss) attributable to DaVita HealthCare Partners Inc., net of transfers to noncontrolling interests $ 94,982 $ (110,617 ) |
Condensed consolidating finan40
Condensed consolidating financial statements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statements of Income | Condensed Consolidating Statements of Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2016 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,653,312 $ 863,842 $ (39,416 ) $ 2,477,738 Less: Provision for uncollectible accounts — (58,813 ) (50,392 ) — (109,205 ) Net patient service revenues — 1,594,499 813,450 (39,416 ) 2,368,533 Capitated revenues — 467,001 420,173 (127 ) 887,047 Other revenues 186,975 485,316 31,716 (378,451 ) 325,556 Total net revenues 186,975 2,546,816 1,265,339 (417,994 ) 3,581,136 Operating expenses 122,273 2,377,630 1,134,338 (417,994 ) 3,216,247 Operating income 64,702 169,186 131,001 — 364,889 Debt expense, including debt refinancing charges (101,101 ) (92,173 ) (11,514 ) 101,904 (102,884 ) Other income 98,560 4,336 1,984 (101,904 ) 2,976 Income tax expense 35,146 73,254 18,422 — 126,822 Equity earnings in subsidiaries 70,419 62,324 — (132,743 ) — Net income 97,434 70,419 103,049 (132,743 ) 138,159 Less: Net income attributable to noncontrolling interests — — — (40,725 ) (40,725 ) Net income attributable to DaVita HealthCare Partners Inc. $ 97,434 $ 70,419 $ 103,049 $ (173,468 ) $ 97,434 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2015 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,581,959 $ 723,843 $ (33,987 ) $ 2,271,815 Less: Provision for uncollectible accounts — (64,077 ) (35,087 ) — (99,164 ) Net patient service revenues — 1,517,882 688,756 (33,987 ) 2,172,651 Capitated revenues — 447,338 403,124 53 850,515 Other revenues 168,265 411,028 6,312 (320,806 ) 264,799 Total net revenues 168,265 2,376,248 1,098,192 (354,740 ) 3,287,965 Operating expenses 123,769 2,597,953 985,139 (354,740 ) 3,352,121 Operating income (loss) 44,496 (221,705 ) 113,053 — (64,156 ) Debt expense, including debt refinancing charges (95,478 ) (85,783 ) (9,286 ) 93,155 (97,392 ) Other income 91,023 53 1,546 (93,155 ) (533 ) Income tax expense (benefit) 17,514 (129,235 ) 25,788 — (85,933 ) Equity (loss) earnings in subsidiaries (133,144 ) 45,056 — 88,088 — Net (loss) income (110,617 ) (133,144 ) 79,525 88,088 (76,148 ) Less: Net income attributable to noncontrolling interests — — — (34,469 ) (34,469 ) Net (loss) income attributable to DaVita HealthCare Partners Inc. $ (110,617 ) $ (133,144 ) $ 79,525 $ 53,619 $ (110,617 ) |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2016 Partners subsidiaries subsidiaries adjustments total Net income $ 97,434 $ 70,419 $ 103,049 $ (132,743 ) $ 138,159 Other comprehensive (loss) income (4,868 ) — 11,181 — 6,313 Total comprehensive income 92,566 70,419 114,230 (132,743 ) 144,472 Less: comprehensive income attributable to the noncontrolling interests — — — (40,725 ) (40,725 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 92,566 $ 70,419 $ 114,230 $ (173,468 ) $ 103,747 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2015 Partners subsidiaries subsidiaries adjustments total Net (loss) income $ (110,617 ) $ (133,144 ) $ 79,525 $ 88,088 $ (76,148 ) Other comprehensive loss (4,723 ) — (17,885 ) — (22,608 ) Total comprehensive (loss) income (115,340 ) (133,144 ) 61,640 88,088 (98,756 ) Less: comprehensive income attributable to the noncontrolling interests — — — (34,469 ) (34,469 ) Comprehensive (loss) income attributable to DaVita HealthCare Partners Inc. $ (115,340 ) $ (133,144 ) $ 61,640 $ 53,619 $ (133,225 ) |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of March 31, 2016 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 667,109 $ 73,221 $ 301,097 $ — $ 1,041,427 Accounts receivable, net — 937,747 917,538 — 1,855,285 Other current assets 408,369 792,812 101,667 — 1,302,848 Total current assets 1,075,478 1,803,780 1,320,302 — 4,199,560 Property and equipment, net 270,106 1,555,802 1,085,297 — 2,911,205 Amortizable intangibles, net 660 1,596,973 81,074 — 1,678,707 Investments in subsidiaries 9,019,776 2,020,158 — (11,039,934 ) — Intercompany receivables 3,797,849 — 697,353 (4,495,202 ) — Other long-term assets and investments 67,725 55,403 115,970 — 239,098 Goodwill — 7,753,168 1,732,460 — 9,485,628 Total assets $ 14,231,594 $ 14,785,284 $ 5,032,456 $ (15,535,136 ) $ 18,514,198 Current liabilities $ 236,695 $ 1,686,198 $ 520,725 $ — $ 2,443,618 Intercompany payables — 2,889,630 1,605,572 (4,495,202 ) — Long-term debt and other long-term liabilities 8,713,321 1,189,680 333,142 — 10,236,143 Noncontrolling interests subject to put provisions 577,652 — — 335,053 912,705 Total DaVita HealthCare Partners Inc. shareholders’ equity 4,703,926 9,019,776 2,020,158 (11,039,934 ) 4,703,926 Noncontrolling interests not subject to put provisions — — 552,859 (335,053 ) 217,806 Total equity 4,703,926 9,019,776 2,573,017 (11,374,987 ) 4,921,732 Total liabilities and equity $ 14,231,594 $ 14,785,284 $ 5,032,456 $ (15,535,136 ) $ 18,514,198 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of December 31, 2015 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 1,186,636 $ 109,357 $ 203,123 $ — $ 1,499,116 Accounts receivable, net — 929,390 794,838 — 1,724,228 Other current assets 431,504 769,947 78,485 — 1,279,936 Total current assets 1,618,140 1,808,694 1,076,446 — 4,503,280 Property and equipment, net 268,066 1,575,890 944,784 — 2,788,740 Intangible assets, net 540 1,634,920 51,866 — 1,687,326 Investments in subsidiaries 8,893,079 1,597,185 — (10,490,264 ) — Intercompany receivables 3,474,133 — 701,814 (4,175,947 ) — Other long-term assets and investments 74,458 53,346 113,246 — 241,050 Goodwill — 7,834,257 1,460,222 — 9,294,479 Total assets $ 14,328,416 $ 14,504,292 $ 4,348,378 $ (14,666,211 ) $ 18,514,875 Current liabilities $ 185,217 $ 1,730,123 $ 483,798 $ — $ 2,399,138 Intercompany payables — 2,750,102 1,425,845 (4,175,947 ) — Long-term debt and other long-term liabilities 8,730,673 1,130,988 305,838 — 10,167,499 Noncontrolling interests subject to put provisions 541,746 — — 322,320 864,066 Total DaVita HealthCare Partners Inc. shareholders' equity 4,870,780 8,893,079 1,597,185 (10,490,264 ) 4,870,780 Noncontrolling interests not subject to put provisions — — 535,712 (322,320 ) 213,392 Total equity 4,870,780 8,893,079 2,132,897 (10,812,584 ) 5,084,172 Total liabilities and equity $ 14,328,416 $ 14,504,292 $ 4,348,378 $ (14,666,211 ) $ 18,514,875 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2016 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net income $ 97,434 $ 70,419 $ 103,049 $ (132,743 ) $ 138,159 Changes in operating assets and liabilities and non-cash items included in net income (18,699 ) 217,405 (40,606 ) 132,743 290,843 Net cash provided by operating activities 78,735 287,824 62,443 — 429,002 Cash flows from investing activities: Additions of property and equipment, net (16,865 ) (86,055 ) (70,267 ) — (173,187 ) Acquisitions — (400,093 ) (5,061 ) — (405,154 ) Proceeds from asset and business sales — 4,657 — — 4,657 (Purchases) proceeds from investment sales and other items 23,387 (7,438 ) 3,424 — 19,373 Net cash provided by (used in) investing activities 6,522 (488,929 ) (71,904 ) — (554,311 ) Cash flows from financing activities: Long-term debt and related financing costs, net (21,247 ) (1,977 ) (1,347 ) — (24,571 ) Intercompany borrowing (payments) (315,986 ) 167,702 148,284 — — Other items (267,551 ) (756 ) (40,219 ) — (308,526 ) Net cash provided by (used in) financing activities (604,784 ) 164,969 106,718 — (333,097 ) Effect of exchange rate changes on cash — — 717 — 717 Net (decrease) increase in cash and cash equivalents (519,527 ) (36,136 ) 97,974 — (457,689 ) Cash and cash equivalents at beginning of period 1,186,636 109,357 203,123 — 1,499,116 Cash and cash equivalents at end of period $ 667,109 $ 73,221 $ 301,097 $ — $ 1,041,427 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2015 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net (loss) income $ (110,617 ) $ (133,144 ) $ 79,525 $ 88,088 $ (76,148 ) Changes in operating assets and liabilities and non-cash items included in net income 154,352 410,880 9,093 (88,088 ) 486,237 Net cash provided by operating activities 43,735 277,736 88,618 — 410,089 Cash flows from investing activities: Additions of property and equipment, net (6,230 ) (48,802 ) (66,389 ) — (121,421 ) Acquisitions — (40,018 ) (632 ) — (40,650 ) Proceeds from asset and business sales — 2,565 — — 2,565 Purchases/proceeds from investment sales and other items (84,640 ) (537 ) (7,604 ) — (92,781 ) Net cash used in investing activities (90,870 ) (86,792 ) (74,625 ) — (252,287 ) Cash flows from financing activities: Long-term debt and related financing costs, net (21,250 ) (3,620 ) (3,569 ) — (28,439 ) Intercompany borrowing (payments) 180,207 (202,804 ) 22,597 — — Other items (56,828 ) — (25,601 ) — (82,429 ) Net cash provided by (used in) financing activities 102,129 (206,424 ) (6,573 ) — (110,868 ) Effect of exchange rate changes on cash — — (904 ) — (904 ) Net increase (decrease) in cash and cash equivalents 54,994 (15,480 ) 6,516 — 46,030 Cash and cash equivalents at beginning of period 698,876 77,921 188,444 — 965,241 Cash and cash equivalents at end of period $ 753,870 $ 62,441 $ 194,960 $ — $ 1,011,271 |
Supplemental data (Tables)
Supplemental data (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Statements Captions [Line Items] | |
Condensed Consolidating Statements of Income | Condensed Consolidating Statements of Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2016 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,653,312 $ 863,842 $ (39,416 ) $ 2,477,738 Less: Provision for uncollectible accounts — (58,813 ) (50,392 ) — (109,205 ) Net patient service revenues — 1,594,499 813,450 (39,416 ) 2,368,533 Capitated revenues — 467,001 420,173 (127 ) 887,047 Other revenues 186,975 485,316 31,716 (378,451 ) 325,556 Total net revenues 186,975 2,546,816 1,265,339 (417,994 ) 3,581,136 Operating expenses 122,273 2,377,630 1,134,338 (417,994 ) 3,216,247 Operating income 64,702 169,186 131,001 — 364,889 Debt expense, including debt refinancing charges (101,101 ) (92,173 ) (11,514 ) 101,904 (102,884 ) Other income 98,560 4,336 1,984 (101,904 ) 2,976 Income tax expense 35,146 73,254 18,422 — 126,822 Equity earnings in subsidiaries 70,419 62,324 — (132,743 ) — Net income 97,434 70,419 103,049 (132,743 ) 138,159 Less: Net income attributable to noncontrolling interests — — — (40,725 ) (40,725 ) Net income attributable to DaVita HealthCare Partners Inc. $ 97,434 $ 70,419 $ 103,049 $ (173,468 ) $ 97,434 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2015 Partners subsidiaries subsidiaries adjustments total Patient service revenues $ — $ 1,581,959 $ 723,843 $ (33,987 ) $ 2,271,815 Less: Provision for uncollectible accounts — (64,077 ) (35,087 ) — (99,164 ) Net patient service revenues — 1,517,882 688,756 (33,987 ) 2,172,651 Capitated revenues — 447,338 403,124 53 850,515 Other revenues 168,265 411,028 6,312 (320,806 ) 264,799 Total net revenues 168,265 2,376,248 1,098,192 (354,740 ) 3,287,965 Operating expenses 123,769 2,597,953 985,139 (354,740 ) 3,352,121 Operating income (loss) 44,496 (221,705 ) 113,053 — (64,156 ) Debt expense, including debt refinancing charges (95,478 ) (85,783 ) (9,286 ) 93,155 (97,392 ) Other income 91,023 53 1,546 (93,155 ) (533 ) Income tax expense (benefit) 17,514 (129,235 ) 25,788 — (85,933 ) Equity (loss) earnings in subsidiaries (133,144 ) 45,056 — 88,088 — Net (loss) income (110,617 ) (133,144 ) 79,525 88,088 (76,148 ) Less: Net income attributable to noncontrolling interests — — — (34,469 ) (34,469 ) Net (loss) income attributable to DaVita HealthCare Partners Inc. $ (110,617 ) $ (133,144 ) $ 79,525 $ 53,619 $ (110,617 ) |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2016 Partners subsidiaries subsidiaries adjustments total Net income $ 97,434 $ 70,419 $ 103,049 $ (132,743 ) $ 138,159 Other comprehensive (loss) income (4,868 ) — 11,181 — 6,313 Total comprehensive income 92,566 70,419 114,230 (132,743 ) 144,472 Less: comprehensive income attributable to the noncontrolling interests — — — (40,725 ) (40,725 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 92,566 $ 70,419 $ 114,230 $ (173,468 ) $ 103,747 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2015 Partners subsidiaries subsidiaries adjustments total Net (loss) income $ (110,617 ) $ (133,144 ) $ 79,525 $ 88,088 $ (76,148 ) Other comprehensive loss (4,723 ) — (17,885 ) — (22,608 ) Total comprehensive (loss) income (115,340 ) (133,144 ) 61,640 88,088 (98,756 ) Less: comprehensive income attributable to the noncontrolling interests — — — (34,469 ) (34,469 ) Comprehensive (loss) income attributable to DaVita HealthCare Partners Inc. $ (115,340 ) $ (133,144 ) $ 61,640 $ 53,619 $ (133,225 ) |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of March 31, 2016 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 667,109 $ 73,221 $ 301,097 $ — $ 1,041,427 Accounts receivable, net — 937,747 917,538 — 1,855,285 Other current assets 408,369 792,812 101,667 — 1,302,848 Total current assets 1,075,478 1,803,780 1,320,302 — 4,199,560 Property and equipment, net 270,106 1,555,802 1,085,297 — 2,911,205 Amortizable intangibles, net 660 1,596,973 81,074 — 1,678,707 Investments in subsidiaries 9,019,776 2,020,158 — (11,039,934 ) — Intercompany receivables 3,797,849 — 697,353 (4,495,202 ) — Other long-term assets and investments 67,725 55,403 115,970 — 239,098 Goodwill — 7,753,168 1,732,460 — 9,485,628 Total assets $ 14,231,594 $ 14,785,284 $ 5,032,456 $ (15,535,136 ) $ 18,514,198 Current liabilities $ 236,695 $ 1,686,198 $ 520,725 $ — $ 2,443,618 Intercompany payables — 2,889,630 1,605,572 (4,495,202 ) — Long-term debt and other long-term liabilities 8,713,321 1,189,680 333,142 — 10,236,143 Noncontrolling interests subject to put provisions 577,652 — — 335,053 912,705 Total DaVita HealthCare Partners Inc. shareholders’ equity 4,703,926 9,019,776 2,020,158 (11,039,934 ) 4,703,926 Noncontrolling interests not subject to put provisions — — 552,859 (335,053 ) 217,806 Total equity 4,703,926 9,019,776 2,573,017 (11,374,987 ) 4,921,732 Total liabilities and equity $ 14,231,594 $ 14,785,284 $ 5,032,456 $ (15,535,136 ) $ 18,514,198 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated As of December 31, 2015 Partners subsidiaries subsidiaries adjustments total Cash and cash equivalents $ 1,186,636 $ 109,357 $ 203,123 $ — $ 1,499,116 Accounts receivable, net — 929,390 794,838 — 1,724,228 Other current assets 431,504 769,947 78,485 — 1,279,936 Total current assets 1,618,140 1,808,694 1,076,446 — 4,503,280 Property and equipment, net 268,066 1,575,890 944,784 — 2,788,740 Intangible assets, net 540 1,634,920 51,866 — 1,687,326 Investments in subsidiaries 8,893,079 1,597,185 — (10,490,264 ) — Intercompany receivables 3,474,133 — 701,814 (4,175,947 ) — Other long-term assets and investments 74,458 53,346 113,246 — 241,050 Goodwill — 7,834,257 1,460,222 — 9,294,479 Total assets $ 14,328,416 $ 14,504,292 $ 4,348,378 $ (14,666,211 ) $ 18,514,875 Current liabilities $ 185,217 $ 1,730,123 $ 483,798 $ — $ 2,399,138 Intercompany payables — 2,750,102 1,425,845 (4,175,947 ) — Long-term debt and other long-term liabilities 8,730,673 1,130,988 305,838 — 10,167,499 Noncontrolling interests subject to put provisions 541,746 — — 322,320 864,066 Total DaVita HealthCare Partners Inc. shareholders' equity 4,870,780 8,893,079 1,597,185 (10,490,264 ) 4,870,780 Noncontrolling interests not subject to put provisions — — 535,712 (322,320 ) 213,392 Total equity 4,870,780 8,893,079 2,132,897 (10,812,584 ) 5,084,172 Total liabilities and equity $ 14,328,416 $ 14,504,292 $ 4,348,378 $ (14,666,211 ) $ 18,514,875 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2016 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net income $ 97,434 $ 70,419 $ 103,049 $ (132,743 ) $ 138,159 Changes in operating assets and liabilities and non-cash items included in net income (18,699 ) 217,405 (40,606 ) 132,743 290,843 Net cash provided by operating activities 78,735 287,824 62,443 — 429,002 Cash flows from investing activities: Additions of property and equipment, net (16,865 ) (86,055 ) (70,267 ) — (173,187 ) Acquisitions — (400,093 ) (5,061 ) — (405,154 ) Proceeds from asset and business sales — 4,657 — — 4,657 (Purchases) proceeds from investment sales and other items 23,387 (7,438 ) 3,424 — 19,373 Net cash provided by (used in) investing activities 6,522 (488,929 ) (71,904 ) — (554,311 ) Cash flows from financing activities: Long-term debt and related financing costs, net (21,247 ) (1,977 ) (1,347 ) — (24,571 ) Intercompany borrowing (payments) (315,986 ) 167,702 148,284 — — Other items (267,551 ) (756 ) (40,219 ) — (308,526 ) Net cash provided by (used in) financing activities (604,784 ) 164,969 106,718 — (333,097 ) Effect of exchange rate changes on cash — — 717 — 717 Net (decrease) increase in cash and cash equivalents (519,527 ) (36,136 ) 97,974 — (457,689 ) Cash and cash equivalents at beginning of period 1,186,636 109,357 203,123 — 1,499,116 Cash and cash equivalents at end of period $ 667,109 $ 73,221 $ 301,097 $ — $ 1,041,427 DaVita Non- HealthCare Guarantor Guarantor Consolidating Consolidated For the three months ended March 31, 2015 Partners subsidiaries subsidiaries adjustments total Cash flows from operating activities: Net (loss) income $ (110,617 ) $ (133,144 ) $ 79,525 $ 88,088 $ (76,148 ) Changes in operating assets and liabilities and non-cash items included in net income 154,352 410,880 9,093 (88,088 ) 486,237 Net cash provided by operating activities 43,735 277,736 88,618 — 410,089 Cash flows from investing activities: Additions of property and equipment, net (6,230 ) (48,802 ) (66,389 ) — (121,421 ) Acquisitions — (40,018 ) (632 ) — (40,650 ) Proceeds from asset and business sales — 2,565 — — 2,565 Purchases/proceeds from investment sales and other items (84,640 ) (537 ) (7,604 ) — (92,781 ) Net cash used in investing activities (90,870 ) (86,792 ) (74,625 ) — (252,287 ) Cash flows from financing activities: Long-term debt and related financing costs, net (21,250 ) (3,620 ) (3,569 ) — (28,439 ) Intercompany borrowing (payments) 180,207 (202,804 ) 22,597 — — Other items (56,828 ) — (25,601 ) — (82,429 ) Net cash provided by (used in) financing activities 102,129 (206,424 ) (6,573 ) — (110,868 ) Effect of exchange rate changes on cash — — (904 ) — (904 ) Net increase (decrease) in cash and cash equivalents 54,994 (15,480 ) 6,516 — 46,030 Cash and cash equivalents at beginning of period 698,876 77,921 188,444 — 965,241 Cash and cash equivalents at end of period $ 753,870 $ 62,441 $ 194,960 $ — $ 1,011,271 |
Additional Reporting Entities | |
Condensed Financial Statements Captions [Line Items] | |
Condensed Consolidating Statements of Income | Condensed Consolidating Statements of Income Company and Consolidated Physician Unrestricted Restricted For the three months ended March 31, 2016 Total Groups Subsidiaries Subsidiaries (1) Patient service operating revenues $ 2,477,738 $ 62,692 $ — $ 2,415,046 Less: Provision for uncollectible accounts (109,205 ) (2,093 ) — (107,112 ) Net patient service operating revenues 2,368,533 60,599 — 2,307,934 Capitated revenues 887,047 398,429 — 488,618 Other revenues 325,556 7,573 — 317,983 Total net operating revenues 3,581,136 466,601 — 3,114,535 Operating expenses 3,216,247 468,588 (158 ) 2,747,817 Operating income 364,889 (1,987 ) 158 366,718 Debt expense, including refinancing charges (102,884 ) (3,740 ) — (99,144 ) Other income 2,976 155 — 2,821 Income tax expense 126,822 11,295 63 115,464 Net income 138,159 (16,867 ) 95 154,931 Less: Net income attributable to noncontrolling interests (40,725 ) — — (40,725 ) Net income attributable to DaVita HealthCare Partners Inc. $ 97,434 $ (16,867 ) $ 95 $ 114,206 (1) |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income Company and Consolidated Physician Unrestricted Restricted For the three months ended March 31, 2016 Total Groups Subsidiaries Subsidiaries (1) Net income $ 138,159 $ (16,867 ) $ 95 $ 154,931 Other comprehensive loss 6,313 — — 6,313 Total comprehensive income 144,472 (16,867 ) 95 161,244 Less: comprehensive loss attributable to the noncontrolling interests (40,725 ) — — (40,725 ) Comprehensive income attributable to DaVita HealthCare Partners Inc. $ 103,747 $ (16,867 ) $ 95 $ 120,519 (1) |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets Company and Consolidated Physician Unrestricted Restricted As of March 31, 2016 Total Groups Subsidiaries Subsidiaries (1) Cash and cash equivalents $ 1,041,427 $ 143,953 $ — $ 897,474 Accounts receivable, net 1,855,285 435,688 — 1,419,597 Other current assets 1,302,848 22,287 — 1,280,561 Total current assets 4,199,560 601,928 — 3,597,632 Property and equipment, net 2,911,205 1,678 — 2,909,527 Amortizable intangibles, net 1,678,707 5,656 — 1,673,051 Other long-term assets 239,098 74,692 2,982 161,424 Goodwill 9,485,628 16,234 — 9,469,394 Total assets $ 18,514,198 $ 700,188 $ 2,982 $ 17,811,028 Current liabilities $ 2,443,618 $ 255,174 $ — $ 2,188,444 Payables to parent — 343,657 2,982 (346,639 ) Long-term debt and other long-term liabilities 10,236,143 49,705 — 10,186,438 Noncontrolling interests subject to put provisions 912,705 — — 912,705 Total DaVita HealthCare Partners Inc. shareholders’ equity 4,703,926 51,652 — 4,652,274 Noncontrolling interests not subject to put provisions 217,806 — — 217,806 Shareholders’ equity 4,921,732 51,652 — 4,870,080 Total liabilities and shareholder’s equity $ 18,514,198 $ 700,188 $ 2,982 $ 17,811,028 (1) |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Company and Consolidated Physician Unrestricted Restricted For the three months ended March 31, 2016 Total Groups Subsidiaries Subsidiaries (1) Cash flows from operating activities: Net income $ 138,159 $ (16,867 ) $ 95 $ 154,931 Changes in operating and intercompany assets and liabilities and non-cash items included in net income 290,843 (64,656 ) (95 ) 355,594 Net cash provided by (used in) operating activities 429,002 (81,523 ) — 510,525 Cash flows from investing activities: Additions of property and equipment (173,187 ) (200 ) — (172,987 ) Acquisitions and divestitures, net (405,154 ) — — (405,154 ) Proceeds from discontinued operations 4,657 — — 4,657 Investments and other items 19,373 (536 ) — 19,909 Net cash used in investing activities (554,311 ) (736 ) — (553,575 ) Cash flows from financing activities: Long-term debt (24,571 ) — — (24,571 ) Intercompany — 137,967 — (137,967 ) Other items (308,526 ) — — (308,526 ) Net cash (used in) provided by financing activities (333,097 ) 137,967 — (471,064 ) Effect of exchange rate changes on cash 717 — — 717 Net increase (decrease) in cash (457,689 ) 55,708 — (513,397 ) Cash and cash equivalents at beginning of period 1,499,116 88,245 — 1,410,871 Cash and cash equivalents at end of period $ 1,041,427 $ 143,953 $ — $ 897,474 (1) |
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 | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Basic: | |||
Net income (loss) attributable to DaVita HealthCare Partners Inc. | $ 97,434 | $ (110,617) | |
Weighted average shares outstanding during the period | 206,561,000 | 215,581,000 | |
Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger | (2,194,000) | (2,194,000) | |
Weighted average shares for basic earnings per share calculation | 204,366,869 | 213,387,253 | |
Basic net income (loss) per share attributable to DaVita HealthCare Partners Inc. | $ 0.48 | $ (0.52) | |
Diluted: | |||
Net income (loss) attributable to DaVita HealthCare Partners Inc. | $ 97,434 | $ (110,617) | |
Weighted average shares outstanding during the period | 206,561,000 | 215,581,000 | |
Contingently returnable shares held in escrow for the DaVita HealthCare Partners merger | (2,194,000) | ||
Assumed incremental shares from stock plans | 1,367,000 | ||
Weighted average shares for diluted earnings per share calculation | 207,928,096 | 213,387,253 | |
Diluted net income (loss) per share attributable to DaVita HealthCare Partners Inc. | $ 0.47 | $ (0.52) | |
Anti-dilutive potential common shares excluded from calculation | [1] | 2,273,000 | 5,992,000 |
[1] | Shares associated with stock-settled stock appreciation rights and contingently returnable shares that are excluded from the diluted denominator calculation because they are anti-dilutive on their terms or, in the case of the quarter ended March 31, 2015, due to the Company’s net loss attributable to DaVita HealthCare Partners Inc. |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
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 | $ 16,844 |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Investment Holdings [Line Items] | ||
Held to maturity | $ 382,399 | $ 406,884 |
Available for sale | 48,667 | 33,482 |
Total | 431,066 | 440,366 |
Held to maturity, short-term investments | 382,399 | 406,884 |
Available for sale, short-term investments | 14,069 | 1,200 |
Total, short-term investments | 396,468 | 408,084 |
Available for sale, long-term investments | 34,598 | 32,282 |
Total, long-term investments | 34,598 | 32,282 |
Certificates of deposit, commercial paper and money market funds | ||
Investment Holdings [Line Items] | ||
Held to maturity | 382,399 | 406,884 |
Total | 382,399 | 406,884 |
Investments in mutual funds, debt securities and common stock | ||
Investment Holdings [Line Items] | ||
Available for sale, equity securities | 48,667 | 33,482 |
Total | $ 48,667 | $ 33,482 |
Investments in Debt and Equit45
Investments in Debt and Equity Securities and Other Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Available for sale investments gross pre-tax unrealized gain (loss) | $ 2,779 | $ 2,589 | |
Unrealized gain (losses) on investments, net of tax | 229 | $ 382 | |
Proceeds from sale of investments available for sale | 1,062 | 1,217 | |
Pre tax reclassification of net investment realized gain (loss) into net income | 152 | 257 | |
Reclassification of net investment realized gain (loss) into net income, net of tax | 93 | $ 157 | |
HealthCare Partners (HCP) | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Required minimum cash balance | 58,567 | ||
Preferred Stock | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Preferred stock, in a privately held company | 6,250 | ||
Certificates of deposit, commercial paper and money market funds | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Unrealized gain (losses) on investments, pre tax | 342 | ||
Unrealized gain (losses) on investments, net of tax | $ 229 |
Changes in Goodwill by Reportab
Changes in Goodwill by Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Beginning balance | $ 9,294,479 | $ 9,415,295 |
Acquisitions | 260,449 | 97,093 |
Divestitures | (8,781) | |
Goodwill impairment charges | (77,000) | (192,834) |
Foreign currency and other adjustments | 7,700 | (16,294) |
Ending balance | 9,485,628 | 9,294,479 |
U.S. Dialysis And Related Lab Services | ||
Goodwill [Line Items] | ||
Beginning balance | 5,629,183 | 5,610,643 |
Acquisitions | 21,910 | |
Divestitures | (3,370) | |
Ending balance | 5,629,183 | 5,629,183 |
HealthCare Partners (HCP) | ||
Goodwill [Line Items] | ||
Beginning balance | 3,398,264 | 3,562,534 |
Acquisitions | 251,216 | 29,910 |
Divestitures | (5,411) | |
Goodwill impairment charges | (77,000) | (188,769) |
Ending balance | 3,572,480 | 3,398,264 |
Other Segments | ||
Goodwill [Line Items] | ||
Beginning balance | 267,032 | 242,118 |
Acquisitions | 9,233 | 45,273 |
Goodwill impairment charges | (4,065) | |
Foreign currency and other adjustments | 7,700 | (16,294) |
Ending balance | $ 283,965 | $ 267,032 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Goodwill impaired facts and circumstances leading to impairment description | Based on continuing developments at the Company’s HCP reporting units, including changes in expectations concerning government reimbursement and the Company’s expected ability to mitigate them, medical cost trends and other market conditions, the Company performed additional impairment assessments on certain at-risk HCP reporting units during the quarter ended March 31, 2016. Based on these first quarter assessments, the Company recognized an additional $77,000 goodwill impairment charge for its HCP Nevada reporting unit during the quarter ended March 31, 2016. | ||
Goodwill impairment charges | $ 77,000 | $ 192,834 | |
Goodwill | $ 9,485,628 | 9,294,479 | $ 9,415,295 |
Goodwill impairment charge description | For example, a sustained, long-term reduction of 3% in operating income for HCP Nevada or HCP Florida could reduce their estimated fair values by up to 2.4% and 1.8%, respectively. Separately, an increase in their respective discount rates of 100 basis points could reduce the estimated fair values of HCP Nevada and HCP Florida by up to 3.6% and 3.7%, respectively. | ||
HealthCare Partners (HCP) | |||
Goodwill [Line Items] | |||
Goodwill impairment charges | $ 77,000 | 188,769 | |
Goodwill | $ 3,572,480 | $ 3,398,264 | $ 3,562,534 |
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) | Nevada | |||
Goodwill [Line Items] | |||
Goodwill impairment charges | $ 77,000 | ||
Goodwill | $ 341,668 | ||
Percentage of fair value in excess of (short of) carrying amount | (9.90%) | ||
HealthCare Partners (HCP) | Nevada | Long-term Reduction of 3% Percent Operating Income | |||
Goodwill [Line Items] | |||
Percentage of Fair value in excess of carrying amount | 2.40% | ||
HealthCare Partners (HCP) | Nevada | Increase In Discount Rates By 100 Basis Points | |||
Goodwill [Line Items] | |||
Percentage of Fair value in excess of carrying amount | 3.60% | ||
HealthCare Partners (HCP) | Florida | |||
Goodwill [Line Items] | |||
Goodwill | $ 537,813 | ||
Percentage of fair value in excess of (short of) carrying amount | 4.00% | ||
HealthCare Partners (HCP) | Florida | 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) | Florida | Increase In Discount Rates By 100 Basis Points | |||
Goodwill [Line Items] | |||
Percentage of Fair value in excess of carrying amount | 3.70% | ||
HealthCare Partners (HCP) | Colorado | |||
Goodwill [Line Items] | |||
Goodwill | $ 16,897 | ||
Percentage of fair value in excess of (short of) carrying amount | 15.40% | ||
Kidney Care | GERMANY | |||
Goodwill [Line Items] | |||
Goodwill | $ 129,242 | ||
Percentage of fair value in excess of (short of) carrying amount | 13.00% | ||
Kidney Care | Malaysia | |||
Goodwill [Line Items] | |||
Goodwill | $ 13,998 | ||
Percentage of fair value in excess of (short of) carrying amount | 6.10% |
Components of Changes in Health
Components of Changes in Health Care Costs Payable (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Medical Expense And Medical Claims Payable [Line Items] | |
Health care costs payable, beginning of the period | $ 332,102 |
Less: Claims paid | |
Health care costs payable, end of the period | 317,747 |
Healthcare Cost | |
Medical Expense And Medical Claims Payable [Line Items] | |
Health care costs payable, beginning of the period | 212,641 |
Add: Components of incurred health care costs | |
Current year | 409,170 |
Prior years | 5,354 |
Total incurred health care costs | 414,524 |
Less: Claims paid | |
Current year | 232,310 |
Prior years | 180,185 |
Total claims paid | 412,495 |
Health care costs payable, end of the period | $ 214,670 |
Health Care Costs Payable - Add
Health Care Costs Payable - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Health Care Organizations [Abstract] | |
Increase (decrease) in prior year estimates of health care costs payable | $ 5,354 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Liability for unrecognized tax benefits | $ 39,273 | $ 39,011 |
Increase in liability for unrecognized tax benefits | 262 | |
Accrued interest and penalties related to unrecognized tax benefits, net of federal tax benefits | $ 10,173 | $ 9,918 |
Long-term Debt (Detail)
Long-term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Senior notes | $ 4,500,000 | $ 4,500,000 |
Acquisition obligations and other notes payable | 70,738 | 70,645 |
Capital lease obligations | 287,783 | 283,185 |
Total debt principal outstanding | 9,209,771 | 9,226,330 |
Discount and deferred financing costs | (91,950) | (95,985) |
Carrying Amount of Long-Term Debt, Net of Unamortized Discount or Premium, Current and Noncurrent, Total | 9,117,821 | 9,130,345 |
Less current portion | (137,966) | (129,037) |
Long-term debt | 8,979,855 | 9,001,308 |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Senior Secured Credit Facilities | 912,500 | 925,000 |
Term Loan B | ||
Debt Instrument [Line Items] | ||
Senior Secured Credit Facilities | $ 3,438,750 | $ 3,447,500 |
Scheduled Maturities of Long-te
Scheduled Maturities of Long-term Debt (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2016 (remainder of the year) | $ 103,615 |
2,017 | 154,525 |
2,018 | 167,052 |
2,019 | 741,960 |
2,020 | 66,216 |
2,021 | 3,297,308 |
Thereafter | $ 4,679,095 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||
Unrealized losses on interest rate swap and cap agreements | $ (5,469,000) | $ (5,760,000) |
Weighted average effective interest rate | 4.40% | |
Weighted average effective interest rate | 4.40% | |
HealthCare Partners (HCP) | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 1,286,000 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Undrawn revolving credit facilities | 1,000,000,000 | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 91,178,000 | |
Interest Rate Cap Agreements Effective June 29, 2018 | ||
Debt Instrument [Line Items] | ||
Derivative, expiration date | Jun. 30, 2020 | |
Interest rate agreements, notional amount | $ 3,500,000,000 | |
Derivative, effective date | Jun. 29, 2018 | |
Fair value of assets | $ 6,545,000 | |
Unrealized losses on interest rate swap and cap agreements | $ (7,270,000) | |
Interest Rate Cap Agreements Effective September 30, 2016 | ||
Debt Instrument [Line Items] | ||
Derivative, expiration date | Jun. 30, 2018 | |
Interest rate agreements, notional amount | $ 3,500,000,000 | |
Derivative, effective date | Sep. 30, 2016 | |
Fair value of assets | $ 323,000 | |
Unrealized losses on interest rate swap and cap agreements | (989,000) | |
Not Designated as Hedging Instrument | Interest rate swap agreements | ||
Debt Instrument [Line Items] | ||
Notional amount | $ 188,125,000 | |
Debt instrument, variable interest rate margin | 1.75% | |
London Interbank Offered Rate (LIBOR) | Interest Rate Cap Agreements Effective June 29, 2018 | ||
Debt Instrument [Line Items] | ||
LIBOR cap rate | 3.50% | |
London Interbank Offered Rate (LIBOR) | Interest Rate Cap Agreements Effective September 30, 2016 | ||
Debt Instrument [Line Items] | ||
LIBOR cap rate | 3.50% | |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Debt instrument, annual principal payment | $ 12,500,000 | |
Term Loan A | Interest rate swap agreements | ||
Debt Instrument [Line Items] | ||
Notional amount | $ 724,375,000 | |
Weighted average effective interest rate | 2.26% | |
Debt instrument, variable interest rate margin | 1.75% | |
Derivative, expiration date | Sep. 30, 2016 | |
Debt expense recognized | $ 151,000 | |
Amount of gains (losses) recognized in OCI on swaps arising during the period net of tax | (692,000) | |
Unrealized pre-tax losses in other comprehensive income | (25,000) | |
Fair value of liability | $ 25,000 | |
Term Loan A | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable interest rate margin | 1.75% | |
Term Loan A | London Interbank Offered Rate (LIBOR) | Interest rate swap agreements | ||
Debt Instrument [Line Items] | ||
Fixed interest rate, lower limit | 0.49% | |
Fixed interest rate, upper limit | 0.52% | |
Term Loan B | ||
Debt Instrument [Line Items] | ||
Debt instrument, annual principal payment | $ 8,750,000 | |
Term Loan B | Interest rate cap agreements | ||
Debt Instrument [Line Items] | ||
Derivative, expiration date | Sep. 30, 2016 | |
Debt expense recognized | $ 610,000 | |
Interest rate agreements, notional amount | $ 2,735,000,000 | |
Term Loan B | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable interest rate margin | 2.75% | |
LIBOR cap rate | 2.50% | |
Senior Secured Credit Facilities | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate | 3.46% |
Derivative Instruments (Detail)
Derivative Instruments (Detail) - Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Interest rate swap agreements | Other short-term liabilities | ||
Derivative [Line Items] | ||
Derivative liabilities, Fair value | $ 25 | |
Interest rate swap agreements | Other short-term assets | ||
Derivative [Line Items] | ||
Derivative assets, Fair value | $ 516 | |
Interest rate cap agreements | Other long-term assets | ||
Derivative [Line Items] | ||
Derivative assets, Fair value | $ 6,868 | $ 15,127 |
Effects of Interest Rate Swap a
Effects of Interest Rate Swap and Cap Agreements (Detail) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (losses) gains recognized in OCI on interest rate swap and cap agreements | $ (5,469) | $ (5,760) |
Amount of (losses) gains reclassified from accumulated OCI into income | (465) | (812) |
Tax benefit (expense) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (losses) gains recognized in OCI on interest rate swap and cap agreements | 3,482 | 3,691 |
Amount of (losses) gains reclassified from accumulated OCI into income | 296 | 520 |
Interest rate swap agreements | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (losses) gains recognized in OCI on interest rate swap and cap agreements | (692) | (2,694) |
Interest rate swap agreements | Debt Expense (Including Refinancing Charges) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (losses) gains reclassified from accumulated OCI into income | (151) | (722) |
Interest rate cap agreements | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (losses) gains recognized in OCI on interest rate swap and cap agreements | (8,259) | (6,757) |
Interest rate cap agreements | Debt Expense (Including Refinancing Charges) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (losses) gains reclassified from accumulated OCI into income | $ (610) | $ (610) |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2012Entity | Dec. 31, 2015USD ($) | |
Dialysis businesses and other businesses | ||||
Other Commitments [Line Items] | ||||
Number of businesses acquired | Entity | 2 | |||
Vainer Private Civil Suit | ||||
Other Commitments [Line Items] | ||||
Litigation settlement amount | $ 450,000 | |||
Legal fees | $ 45,000 | |||
2016 U.S. Attorney Prescription Drug Investigation | ||||
Other Commitments [Line Items] | ||||
Estimated accrual for potential damages and liabilities | $ 22,530 | |||
Solari Post-Acquisition Matter | ||||
Other Commitments [Line Items] | ||||
Estimated accrual for potential damages and liabilities | $ 16,000 |
Noncontrolling Interests Subj57
Noncontrolling Interests Subject to Put Provisions and Other Commitments - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | |
Schedule of Joint ventures to dissolve | Certain consolidated joint ventures are originally contractually scheduled to dissolve after terms ranging from ten to fifty years. |
Minimum | |
Commitments And Contingencies Disclosure [Line Items] | |
Scheduled dissolution term of joint ventures | 10 years |
Maximum | |
Commitments And Contingencies Disclosure [Line Items] | |
Scheduled dissolution term of joint ventures | 50 years |
Commitments to provide operating capital | |
Commitments And Contingencies Disclosure [Line Items] | |
Other potential commitments to provide operating capital to several dialysis centers | $ 4,700 |
Long-term Incentive Compensat58
Long-term Incentive Compensation - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long-term incentive program (LTIP) expense | $ 24,745 | $ 33,451 |
Stock-based compensation expense | 13,097 | 12,762 |
Estimated tax benefits recorded for stock-based compensation | 4,539 | 4,458 |
Unrecognized compensation cost related to outstanding LTIP awards | 107,824 | |
Unrecognized compensation cost related to nonvested stock-based compensation arrangements under equity compensation and stock purchase plans | $ 58,688 | |
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 | |
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 2 months 12 days | |
Tax benefits from stock award exercises | $ 8,668 | $ 9,366 |
Stock Appreciation Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock granted | 104 | |
Aggregate grant-date fair value | $ 1,432 | |
Weighted-average expected life (in years) | 4 years 2 months 12 days | |
Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock granted | 16 | |
Aggregate grant-date fair value | $ 1,133 | |
Weighted-average expected life (in years) | 2 years 9 months 18 days |
Share Repurchases - Additional
Share Repurchases - Additional information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Apr. 29, 2016 | Apr. 14, 2015 | Nov. 30, 2010 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Purchase of treasury stock (in shares) | 3,690 | |||
Purchase of treasury stock | $ 249,481 | |||
Purchase of treasury stock, average price per share | $ 67.61 | |||
Share repurchase program, authorized amount | $ 725,944 | $ 274,056 | ||
Subsequent Event | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Share repurchase program, outstanding authorizations available for share repurchase | $ 259,252 |
Comprehensive Income (Detail)
Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (59,826) | |
Ending balance | (53,513) | |
Interest rate swaps and cap agreements | ||
Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (10,925) | $ (1,795) |
Unrealized (losses) gains | (8,951) | (9,451) |
Related income tax benefit (expense) | 3,482 | 3,691 |
Unrealized (losses) gains net | (5,469) | (5,760) |
Reclassification from accumulated other comprehensive income into net income | 761 | 1,332 |
Related income tax (expense) benefit | (296) | (520) |
Reclassification from accumulated other comprehensive income into net income net of tax | 465 | 812 |
Ending balance | (15,929) | (6,743) |
Investment securities | ||
Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 1,361 | 3,151 |
Unrealized (losses) gains | 342 | 544 |
Related income tax benefit (expense) | (113) | (162) |
Unrealized (losses) gains net | 229 | 382 |
Reclassification from accumulated other comprehensive income into net income | (152) | (257) |
Related income tax (expense) benefit | 59 | 100 |
Reclassification from accumulated other comprehensive income into net income net of tax | (93) | (157) |
Ending balance | 1,497 | 3,376 |
Foreign currency translation adjustments | ||
Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (50,262) | (26,373) |
Unrealized (losses) gains | 11,181 | (17,885) |
Unrealized (losses) gains net | 11,181 | (17,885) |
Ending balance | (39,081) | (44,258) |
Accumulated other comprehensive (loss) income | ||
Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (59,826) | (25,017) |
Unrealized (losses) gains | 2,572 | (26,792) |
Related income tax benefit (expense) | 3,369 | 3,529 |
Unrealized (losses) gains net | 5,941 | (23,263) |
Reclassification from accumulated other comprehensive income into net income | 609 | 1,075 |
Related income tax (expense) benefit | (237) | (420) |
Reclassification from accumulated other comprehensive income into net income net of tax | 372 | 655 |
Ending balance | $ (53,513) | $ (47,625) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | Mar. 01, 2016USD ($) | Aug. 17, 2015USD ($)ClinicStatePatient | Dec. 31, 2012Entity | Mar. 31, 2016USD ($)Entity | Mar. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Cash paid to acquire business | $ 405,154 | $ 40,650 | |||
Goodwill deductible for tax purposes associated with acquisitions | 6,851 | ||||
Other Accrued Liabilities | |||||
Business Acquisition [Line Items] | |||||
Fair value of contingent earn-out consideration | 28,029 | ||||
Other long-term liabilities | |||||
Business Acquisition [Line Items] | |||||
Fair value of contingent earn-out consideration | 4,874 | ||||
Other companies | |||||
Business Acquisition [Line Items] | |||||
Additional cash consideration in the form of earn-out payments | 128,603 | ||||
Fair value of contingent earn-out consideration | $ 32,903 | ||||
Minimum | Other companies | EBITDA or Operating Income Performance Targets or Quality Margins | |||||
Business Acquisition [Line Items] | |||||
Earn out consideration payment period | 1 year | ||||
Maximum | Other companies | EBITDA or Operating Income Performance Targets or Quality Margins | |||||
Business Acquisition [Line Items] | |||||
Earn out consideration payment period | 2 years | ||||
Noncompetition agreements | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets acquired, weighted-average estimated useful lives | 7 years | ||||
Other Segments | Asia-Pacific dialysis business | Khazanah Nasional Berhad and Mitsui and Co., LTD | |||||
Business Acquisition [Line Items] | |||||
Ownership interest percentage | 40.00% | ||||
Subscribed investment amount | $ 300,000 | ||||
Investment period | 3 years | ||||
The Everett Clinic Medical Group (TEC) | |||||
Business Acquisition [Line Items] | |||||
Date of acquisition agreement | Nov. 23, 2015 | ||||
Effective date of acquisition | Mar. 1, 2016 | ||||
Cash paid to acquire business | $ 398,093 | ||||
Assumptions of certain liabilities | $ 7,287 | ||||
Ownership interest percentage | 100.00% | ||||
Amortizable intangible assets acquired, weighted-average estimated useful lives | 6 years | ||||
Goodwill deductible for tax purposes associated with acquisitions | $ 267 | ||||
Dialysis businesses and other businesses | |||||
Business Acquisition [Line Items] | |||||
Cash paid to acquire business | 7,061 | ||||
Number of businesses acquired | Entity | 2 | ||||
Deferred purchase price obligations | $ 100 | ||||
Dialysis businesses and other businesses | Other Segments | Foreign Dialysis And Other Medical Businesses | |||||
Business Acquisition [Line Items] | |||||
Number of businesses acquired | Entity | 1 | ||||
Renal Ventures Limited, LLC | |||||
Business Acquisition [Line Items] | |||||
Cash paid to acquire business | $ 415,000 | ||||
Ownership interest percentage | 100.00% | ||||
Number of dialysis clinics ventures operations | Clinic | 36 | ||||
Number Of dialysis clinics venture operations states | State | 6 | ||||
Number of dialysis clinic patients | Patient | 2,400 |
Assets Acquired and Liabilities
Assets Acquired and Liabilities Assumed and Recognized at Acquisition Dates at Estimated Fair Values (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,485,628 | $ 9,294,479 | $ 9,415,295 |
The Everett Clinic Medical Group (TEC) | |||
Business Acquisition [Line Items] | |||
Current assets, net of cash acquired | 90,830 | ||
Property and equipment | 107,310 | ||
Amortizable intangible and other long-term assets | 34,050 | ||
Goodwill | 249,278 | ||
Current liabilities assumed | (49,322) | ||
Long-term deferred income taxes | (16,881) | ||
Noncontrolling interests assumed | (9,885) | ||
Aggregate purchase price | $ 405,380 |
Aggregate Purchase Cost Allocat
Aggregate Purchase Cost Allocations for Acquisitions (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,485,628 | $ 9,294,479 | $ 9,415,295 |
Dialysis businesses and other businesses | |||
Business Acquisition [Line Items] | |||
Current assets | 56 | ||
Property and equipment | 239 | ||
Amortizable intangible and other long-term assets | 740 | ||
Goodwill | 11,171 | ||
Noncontrolling interests assumed | (5,045) | ||
Aggregate purchase price | $ 7,161 |
Pro Forma Financial Information
Pro Forma Financial Information, Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Business Combinations [Abstract] | ||
Pro forma net revenues | $ 3,651,057 | $ 3,398,247 |
Pro forma net income attributable to DaVita HealthCare Partners Inc. | $ 97,010 | $ (109,034) |
Pro forma basic net income per share attributable to DaVita HealthCare Partners Inc. | $ 0.47 | $ (0.51) |
Pro forma diluted net income per share attributable to DaVita HealthCare Partners Inc. | $ 0.47 | $ (0.51) |
Reconciliation of Changes in Co
Reconciliation of Changes in Contingent Earn-Out Obligations (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Business Combinations [Abstract] | |
Beginning balance | $ 34,135 |
Remeasurement of fair value for contingent earn-out obligations | (373) |
Payments on contingent earn-out obligations | (859) |
Ending balance | $ 32,903 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Asset | $ 854,341 |
Liabilities | $ 347,845 |
Assets, Liabilities and Tempora
Assets, Liabilities and Temporary Equity Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Available-for-sale securities | $ 48,667 | $ 33,482 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Available-for-sale securities | 48,667 | |
Funds on deposit with third parties | 76,527 | |
Liabilities | ||
Contingent earn-out obligations | 32,903 | |
Interest rate swap agreements | 25 | |
Temporary equity | ||
Noncontrolling interests subject to put provisions | 912,705 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Available-for-sale securities | 48,667 | |
Funds on deposit with third parties | 76,527 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Liabilities | ||
Interest rate swap agreements | 25 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Liabilities | ||
Contingent earn-out obligations | 32,903 | |
Temporary equity | ||
Noncontrolling interests subject to put provisions | 912,705 | |
Interest rate cap agreements | Fair Value, Measurements, Recurring | ||
Assets | ||
Interest rate derivative agreements | 6,868 | |
Interest rate cap agreements | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Interest rate derivative agreements | $ 6,868 |
Fair Value of Financial Instr68
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument, carrying amount | $ 9,209,771 | $ 9,226,330 |
Senior Secured Credit Facilities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument, carrying amount | 4,351,250 | |
Debt instrument, fair value | 4,358,000 | |
Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument, carrying amount | 4,500,000 | |
Debt instrument, fair value | $ 4,557,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016Segment | |
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 | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Segment Reporting Information [Line Items] | |||
Patient service revenues | $ 2,477,738 | $ 2,271,815 | |
Less: Provision for uncollectible accounts | (109,205) | (99,164) | |
Net patient service revenues | 2,368,533 | 2,172,651 | |
Other revenues | 325,556 | 264,799 | |
Total net operating revenues | 3,581,136 | 3,287,965 | |
Capitated revenues | 887,047 | 850,515 | |
Operating income (loss) | 364,889 | (64,156) | |
Corporate administrative support | (6,921) | (6,133) | |
Debt expense | (102,884) | (97,392) | |
Other income (loss), net | 2,976 | (533) | |
Income (loss) before income taxes | 264,981 | (162,081) | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net operating revenues | 3,607,342 | 3,304,800 | |
Operating income (loss) | 371,810 | (58,023) | |
Operating Segments | U.S. Dialysis And Related Lab Services | |||
Segment Reporting Information [Line Items] | |||
Patient service revenues | 2,327,971 | 2,166,150 | |
Less: Provision for uncollectible accounts | (104,751) | (97,477) | |
Net patient service revenues | 2,223,220 | 2,068,673 | |
Other revenues | [1] | 3,973 | 3,184 |
Total net operating revenues | 2,227,193 | 2,071,857 | |
Operating income (loss) | 440,055 | (104,489) | |
Operating Segments | U.S. Dialysis And Related Lab Services | External Sources | |||
Segment Reporting Information [Line Items] | |||
Patient service revenues | 2,313,663 | 2,154,294 | |
Operating Segments | U.S. Dialysis And Related Lab Services | Intersegment Revenue | |||
Segment Reporting Information [Line Items] | |||
Patient service revenues | 14,308 | 11,856 | |
Operating Segments | HealthCare Partners (HCP) | |||
Segment Reporting Information [Line Items] | |||
Net patient service revenues | 108,238 | 80,210 | |
Other revenues | [2] | 14,530 | 15,053 |
Total net operating revenues | 988,858 | 927,772 | |
Capitated revenues | 866,019 | 832,472 | |
Operating income (loss) | (57,145) | 60,294 | |
Operating Segments | HealthCare Partners (HCP) | Intersegment Revenue | |||
Segment Reporting Information [Line Items] | |||
Other revenues | 71 | 37 | |
Operating Segments | Other Segments | |||
Segment Reporting Information [Line Items] | |||
Net patient service revenues | 51,383 | 35,624 | |
Other revenues | 307,053 | 246,562 | |
Total net operating revenues | 391,291 | 305,171 | |
Capitated revenues | 21,028 | 18,043 | |
Operating income (loss) | (11,100) | (13,828) | |
Operating Segments | Other Segments | Intersegment Revenue | |||
Segment Reporting Information [Line Items] | |||
Total net operating revenues | 11,827 | 4,942 | |
Intersegment Elimination | |||
Segment Reporting Information [Line Items] | |||
Total net operating revenues | $ (26,206) | $ (16,835) | |
[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 noncontrolling 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 Revenu71
Summary of Segment Net Revenues, Segment Operating income (Loss) and Reconciliation of Segment Income to Consolidated Income Before Income Taxes (Detail) (Parenthetical) (Detail) | Mar. 31, 2016 |
Unconsolidated Joint Venture | |
Segment Reporting Information [Line Items] | |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | $ 169,355 | $ 153,789 |
U.S. Dialysis And Related Lab Services | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 116,537 | 104,993 |
HealthCare Partners (HCP) | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 46,263 | 43,279 |
Other Segments | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | $ 6,555 | $ 5,517 |
Summary of Assets by Segment (D
Summary of Assets by Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Total assets | $ 18,514,198 | $ 18,514,875 |
U.S. Dialysis And Related Lab Services | ||
ASSETS | ||
Total assets | 11,049,206 | 11,591,507 |
HealthCare Partners (HCP) | ||
ASSETS | ||
Total assets | 6,601,110 | 6,150,666 |
Other Segments | ||
ASSETS | ||
Total assets | $ 863,882 | $ 772,702 |
Summary of Assets by Segment (P
Summary of Assets by Segment (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Equity investments | $ 75,059 | $ 73,368 |
U.S. Dialysis And Related Lab Services | ||
Segment Reporting Information [Line Items] | ||
Equity investments | 30,747 | 29,801 |
HealthCare Partners (HCP) | ||
Segment Reporting Information [Line Items] | ||
Equity investments | 23,990 | 22,714 |
Other Segments | ||
Segment Reporting Information [Line Items] | ||
Equity investments | $ 20,322 | $ 20,853 |
Summary of Expenditures for Pro
Summary of Expenditures for Property and Equipment by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Expenditures for property and equipment | $ 173,187 | $ 121,421 |
U.S. Dialysis And Related Lab Services | ||
Segment Reporting Information [Line Items] | ||
Expenditures for property and equipment | 133,450 | 105,395 |
HealthCare Partners (HCP) | ||
Segment Reporting Information [Line Items] | ||
Expenditures for property and equipment | 20,145 | 5,034 |
Other Segments | ||
Segment Reporting Information [Line Items] | ||
Expenditures for property and equipment | $ 19,592 | $ 10,992 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Net income (loss) attributable to DaVita HealthCare Partners Inc. | $ 97,434 | $ (110,617) |
Net transfers to noncontrolling interests | (2,452) | |
Net income (loss) attributable to DaVita HealthCare Partners Inc., net of transfers to noncontrolling interests | 94,982 | $ (110,617) |
Additional paid-in capital | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Increase in paid-in capital for sales of noncontrolling interests | 885 | |
Decrease in paid-in capital for the purchase of noncontrolling interests and adjustments to ownership interest | $ (3,337) |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Income Statements Captions [Line Items] | ||
Patient service revenues | $ 2,477,738 | $ 2,271,815 |
Less: Provision for uncollectible accounts | (109,205) | (99,164) |
Net patient service revenues | 2,368,533 | 2,172,651 |
Capitated revenues | 887,047 | 850,515 |
Other revenues | 325,556 | 264,799 |
Total net revenues | 3,581,136 | 3,287,965 |
Operating expenses | 3,216,247 | 3,352,121 |
Operating income (loss) | 364,889 | (64,156) |
Debt expense, including debt refinancing charges | (102,884) | (97,392) |
Other income | 2,976 | (533) |
Income tax expense (benefit) | 126,822 | (85,933) |
Net income (loss) | 138,159 | (76,148) |
Less: Net income attributable to noncontrolling interests | (40,725) | (34,469) |
Net income (loss) attributable to DaVita HealthCare Partners Inc. | 97,434 | (110,617) |
Consolidation, Eliminations | ||
Condensed Income Statements Captions [Line Items] | ||
Patient service revenues | (39,416) | (33,987) |
Net patient service revenues | (39,416) | (33,987) |
Capitated revenues | (127) | 53 |
Other revenues | (378,451) | (320,806) |
Total net revenues | (417,994) | (354,740) |
Operating expenses | (417,994) | (354,740) |
Debt expense, including debt refinancing charges | 101,904 | 93,155 |
Other income | (101,904) | (93,155) |
Equity (loss) earnings in subsidiaries | (132,743) | 88,088 |
Net income (loss) | (132,743) | 88,088 |
Less: Net income attributable to noncontrolling interests | (40,725) | (34,469) |
Net income (loss) attributable to DaVita HealthCare Partners Inc. | (173,468) | 53,619 |
DaVita HealthCare Partners Inc. | Reportable Legal Entities | ||
Condensed Income Statements Captions [Line Items] | ||
Other revenues | 186,975 | 168,265 |
Total net revenues | 186,975 | 168,265 |
Operating expenses | 122,273 | 123,769 |
Operating income (loss) | 64,702 | 44,496 |
Debt expense, including debt refinancing charges | (101,101) | (95,478) |
Other income | 98,560 | 91,023 |
Income tax expense (benefit) | 35,146 | 17,514 |
Equity (loss) earnings in subsidiaries | 70,419 | (133,144) |
Net income (loss) | 97,434 | (110,617) |
Net income (loss) attributable to DaVita HealthCare Partners Inc. | 97,434 | (110,617) |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Income Statements Captions [Line Items] | ||
Patient service revenues | 1,653,312 | 1,581,959 |
Less: Provision for uncollectible accounts | (58,813) | (64,077) |
Net patient service revenues | 1,594,499 | 1,517,882 |
Capitated revenues | 467,001 | 447,338 |
Other revenues | 485,316 | 411,028 |
Total net revenues | 2,546,816 | 2,376,248 |
Operating expenses | 2,377,630 | 2,597,953 |
Operating income (loss) | 169,186 | (221,705) |
Debt expense, including debt refinancing charges | (92,173) | (85,783) |
Other income | 4,336 | 53 |
Income tax expense (benefit) | 73,254 | (129,235) |
Equity (loss) earnings in subsidiaries | 62,324 | 45,056 |
Net income (loss) | 70,419 | (133,144) |
Net income (loss) attributable to DaVita HealthCare Partners Inc. | 70,419 | (133,144) |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Income Statements Captions [Line Items] | ||
Patient service revenues | 863,842 | 723,843 |
Less: Provision for uncollectible accounts | (50,392) | (35,087) |
Net patient service revenues | 813,450 | 688,756 |
Capitated revenues | 420,173 | 403,124 |
Other revenues | 31,716 | 6,312 |
Total net revenues | 1,265,339 | 1,098,192 |
Operating expenses | 1,134,338 | 985,139 |
Operating income (loss) | 131,001 | 113,053 |
Debt expense, including debt refinancing charges | (11,514) | (9,286) |
Other income | 1,984 | 1,546 |
Income tax expense (benefit) | 18,422 | 25,788 |
Net income (loss) | 103,049 | 79,525 |
Net income (loss) attributable to DaVita HealthCare Partners Inc. | $ 103,049 | $ 79,525 |
Condensed Consolidating State78
Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | $ 138,159 | $ (76,148) |
Other comprehensive (loss) income | 6,313 | (22,608) |
Total comprehensive income (loss) | 144,472 | (98,756) |
Less: Comprehensive income attributable to noncontrolling interests | (40,725) | (34,469) |
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | 103,747 | (133,225) |
Consolidation, Eliminations | ||
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | (132,743) | 88,088 |
Total comprehensive income (loss) | (132,743) | 88,088 |
Less: Comprehensive income attributable to noncontrolling interests | (40,725) | (34,469) |
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | (173,468) | 53,619 |
DaVita HealthCare Partners Inc. | Reportable Legal Entities | ||
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | 97,434 | (110,617) |
Other comprehensive (loss) income | (4,868) | (4,723) |
Total comprehensive income (loss) | 92,566 | (115,340) |
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | 92,566 | (115,340) |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | 70,419 | (133,144) |
Total comprehensive income (loss) | 70,419 | (133,144) |
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | 70,419 | (133,144) |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements Captions [Line Items] | ||
Net income (loss) | 103,049 | 79,525 |
Other comprehensive (loss) income | 11,181 | (17,885) |
Total comprehensive income (loss) | 114,230 | 61,640 |
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | $ 114,230 | $ 61,640 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Cash and cash equivalents | $ 1,041,427 | $ 1,499,116 | $ 1,011,271 | $ 965,241 |
Accounts receivable, net | 1,855,285 | 1,724,228 | ||
Other current assets | 1,302,848 | 1,279,936 | ||
Total current assets | 4,199,560 | 4,503,280 | ||
Property and equipment, net | 2,911,205 | 2,788,740 | ||
Intangible assets, net | 1,678,707 | 1,687,326 | ||
Other long-term assets and investments | 239,098 | 241,050 | ||
Goodwill | 9,485,628 | 9,294,479 | 9,415,295 | |
Total assets | 18,514,198 | 18,514,875 | ||
Current liabilities | 2,443,618 | 2,399,138 | ||
Long-term debt and other long-term liabilities | 10,236,143 | 10,167,499 | ||
Noncontrolling interests subject to put provisions | 912,705 | 864,066 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,703,926 | 4,870,780 | ||
Noncontrolling interests not subject to put provisions | 217,806 | 213,392 | ||
Total equity | 4,921,732 | 5,084,172 | ||
Total liabilities and equity | 18,514,198 | 18,514,875 | ||
Consolidation, Eliminations | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Investments in subsidiaries | (11,039,934) | (10,490,264) | ||
Intercompany receivables | (4,495,202) | (4,175,947) | ||
Total assets | (15,535,136) | (14,666,211) | ||
Intercompany payables | (4,495,202) | (4,175,947) | ||
Noncontrolling interests subject to put provisions | 335,053 | 322,320 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | (11,039,934) | (10,490,264) | ||
Noncontrolling interests not subject to put provisions | (335,053) | (322,320) | ||
Total equity | (11,374,987) | (10,812,584) | ||
Total liabilities and equity | (15,535,136) | (14,666,211) | ||
DaVita HealthCare Partners Inc. | Reportable Legal Entities | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Cash and cash equivalents | 667,109 | 1,186,636 | 753,870 | 698,876 |
Other current assets | 408,369 | 431,504 | ||
Total current assets | 1,075,478 | 1,618,140 | ||
Property and equipment, net | 270,106 | 268,066 | ||
Intangible assets, net | 660 | 540 | ||
Investments in subsidiaries | 9,019,776 | 8,893,079 | ||
Intercompany receivables | 3,797,849 | 3,474,133 | ||
Other long-term assets and investments | 67,725 | 74,458 | ||
Total assets | 14,231,594 | 14,328,416 | ||
Current liabilities | 236,695 | 185,217 | ||
Long-term debt and other long-term liabilities | 8,713,321 | 8,730,673 | ||
Noncontrolling interests subject to put provisions | 577,652 | 541,746 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,703,926 | 4,870,780 | ||
Total equity | 4,703,926 | 4,870,780 | ||
Total liabilities and equity | 14,231,594 | 14,328,416 | ||
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Cash and cash equivalents | 73,221 | 109,357 | 62,441 | 77,921 |
Accounts receivable, net | 937,747 | 929,390 | ||
Other current assets | 792,812 | 769,947 | ||
Total current assets | 1,803,780 | 1,808,694 | ||
Property and equipment, net | 1,555,802 | 1,575,890 | ||
Intangible assets, net | 1,596,973 | 1,634,920 | ||
Investments in subsidiaries | 2,020,158 | 1,597,185 | ||
Other long-term assets and investments | 55,403 | 53,346 | ||
Goodwill | 7,753,168 | 7,834,257 | ||
Total assets | 14,785,284 | 14,504,292 | ||
Current liabilities | 1,686,198 | 1,730,123 | ||
Intercompany payables | 2,889,630 | 2,750,102 | ||
Long-term debt and other long-term liabilities | 1,189,680 | 1,130,988 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 9,019,776 | 8,893,079 | ||
Total equity | 9,019,776 | 8,893,079 | ||
Total liabilities and equity | 14,785,284 | 14,504,292 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Cash and cash equivalents | 301,097 | 203,123 | $ 194,960 | $ 188,444 |
Accounts receivable, net | 917,538 | 794,838 | ||
Other current assets | 101,667 | 78,485 | ||
Total current assets | 1,320,302 | 1,076,446 | ||
Property and equipment, net | 1,085,297 | 944,784 | ||
Intangible assets, net | 81,074 | 51,866 | ||
Intercompany receivables | 697,353 | 701,814 | ||
Other long-term assets and investments | 115,970 | 113,246 | ||
Goodwill | 1,732,460 | 1,460,222 | ||
Total assets | 5,032,456 | 4,348,378 | ||
Current liabilities | 520,725 | 483,798 | ||
Intercompany payables | 1,605,572 | 1,425,845 | ||
Long-term debt and other long-term liabilities | 333,142 | 305,838 | ||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 2,020,158 | 1,597,185 | ||
Noncontrolling interests not subject to put provisions | 552,859 | 535,712 | ||
Total equity | 2,573,017 | 2,132,897 | ||
Total liabilities and equity | $ 5,032,456 | $ 4,348,378 |
Condensed Consolidating State80
Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 138,159 | $ (76,148) |
Changes in operating assets and liabilities and non-cash items included in net income | 290,843 | 486,237 |
Net cash provided by operating activities | 429,002 | 410,089 |
Cash flows from investing activities: | ||
Additions of property and equipment | (173,187) | (121,421) |
Acquisitions | (405,154) | (40,650) |
Proceeds from asset and business sales | 4,657 | 2,565 |
(Purchases) proceeds from investment sales and other items | 19,373 | (92,781) |
Net cash used in investing activities | (554,311) | (252,287) |
Cash flows from financing activities: | ||
Long-term debt and related financing costs, net | (24,571) | (28,439) |
Other items | (308,526) | (82,429) |
Net cash used in financing activities | (333,097) | (110,868) |
Effect of exchange rate changes on cash | 717 | (904) |
Net (decrease) increase in cash and cash equivalents | (457,689) | 46,030 |
Cash and cash equivalents at beginning of the year | 1,499,116 | 965,241 |
Cash and cash equivalents at end of the period | 1,041,427 | 1,011,271 |
Consolidation, Eliminations | ||
Cash flows from operating activities: | ||
Net income (loss) | (132,743) | 88,088 |
Changes in operating assets and liabilities and non-cash items included in net income | 132,743 | (88,088) |
DaVita HealthCare Partners Inc. | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net income (loss) | 97,434 | (110,617) |
Changes in operating assets and liabilities and non-cash items included in net income | (18,699) | 154,352 |
Net cash provided by operating activities | 78,735 | 43,735 |
Cash flows from investing activities: | ||
Additions of property and equipment | (16,865) | (6,230) |
(Purchases) proceeds from investment sales and other items | 23,387 | (84,640) |
Net cash used in investing activities | 6,522 | (90,870) |
Cash flows from financing activities: | ||
Long-term debt and related financing costs, net | (21,247) | (21,250) |
Intercompany borrowing (payments) | (315,986) | 180,207 |
Other items | (267,551) | (56,828) |
Net cash used in financing activities | (604,784) | 102,129 |
Net (decrease) increase in cash and cash equivalents | (519,527) | 54,994 |
Cash and cash equivalents at beginning of the year | 1,186,636 | 698,876 |
Cash and cash equivalents at end of the period | 667,109 | 753,870 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net income (loss) | 70,419 | (133,144) |
Changes in operating assets and liabilities and non-cash items included in net income | 217,405 | 410,880 |
Net cash provided by operating activities | 287,824 | 277,736 |
Cash flows from investing activities: | ||
Additions of property and equipment | (86,055) | (48,802) |
Acquisitions | (400,093) | (40,018) |
Proceeds from asset and business sales | 4,657 | 2,565 |
(Purchases) proceeds from investment sales and other items | (7,438) | (537) |
Net cash used in investing activities | (488,929) | (86,792) |
Cash flows from financing activities: | ||
Long-term debt and related financing costs, net | (1,977) | (3,620) |
Intercompany borrowing (payments) | 167,702 | (202,804) |
Other items | (756) | |
Net cash used in financing activities | 164,969 | (206,424) |
Net (decrease) increase in cash and cash equivalents | (36,136) | (15,480) |
Cash and cash equivalents at beginning of the year | 109,357 | 77,921 |
Cash and cash equivalents at end of the period | 73,221 | 62,441 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net income (loss) | 103,049 | 79,525 |
Changes in operating assets and liabilities and non-cash items included in net income | (40,606) | 9,093 |
Net cash provided by operating activities | 62,443 | 88,618 |
Cash flows from investing activities: | ||
Additions of property and equipment | (70,267) | (66,389) |
Acquisitions | (5,061) | (632) |
(Purchases) proceeds from investment sales and other items | 3,424 | (7,604) |
Net cash used in investing activities | (71,904) | (74,625) |
Cash flows from financing activities: | ||
Long-term debt and related financing costs, net | (1,347) | (3,569) |
Intercompany borrowing (payments) | 148,284 | 22,597 |
Other items | (40,219) | (25,601) |
Net cash used in financing activities | 106,718 | (6,573) |
Effect of exchange rate changes on cash | 717 | (904) |
Net (decrease) increase in cash and cash equivalents | 97,974 | 6,516 |
Cash and cash equivalents at beginning of the year | 203,123 | 188,444 |
Cash and cash equivalents at end of the period | $ 301,097 | $ 194,960 |
Supplemental Data - Condensed C
Supplemental Data - Condensed Consolidating Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Condensed Income Statements Captions [Line Items] | |||
Patient service operating revenues | $ 2,477,738 | $ 2,271,815 | |
Less: Provision for uncollectible accounts | (109,205) | (99,164) | |
Net patient service revenues | 2,368,533 | 2,172,651 | |
Capitated revenues | 887,047 | 850,515 | |
Other revenues | 325,556 | 264,799 | |
Total net revenues | 3,581,136 | 3,287,965 | |
Operating expenses | 3,216,247 | 3,352,121 | |
Operating income (loss) | 364,889 | (64,156) | |
Debt expense, including debt refinancing charges | (102,884) | (97,392) | |
Other income | 2,976 | (533) | |
Income tax expense | 126,822 | (85,933) | |
Net income (loss) | 138,159 | (76,148) | |
Less: Net income attributable to noncontrolling interests | (40,725) | (34,469) | |
Net income (loss) attributable to DaVita HealthCare Partners Inc. | 97,434 | $ (110,617) | |
Physician Groups | |||
Condensed Income Statements Captions [Line Items] | |||
Patient service operating revenues | 62,692 | ||
Less: Provision for uncollectible accounts | (2,093) | ||
Net patient service revenues | 60,599 | ||
Capitated revenues | 398,429 | ||
Other revenues | 7,573 | ||
Total net revenues | 466,601 | ||
Operating expenses | 468,588 | ||
Operating income (loss) | (1,987) | ||
Debt expense, including debt refinancing charges | (3,740) | ||
Other income | 155 | ||
Income tax expense | 11,295 | ||
Net income (loss) | (16,867) | ||
Net income (loss) attributable to DaVita HealthCare Partners Inc. | (16,867) | ||
Unrestricted Subsidiaries | |||
Condensed Income Statements Captions [Line Items] | |||
Operating expenses | (158) | ||
Operating income (loss) | 158 | ||
Income tax expense | 63 | ||
Net income (loss) | 95 | ||
Net income (loss) attributable to DaVita HealthCare Partners Inc. | 95 | ||
Company and Restricted Subsidiaries | |||
Condensed Income Statements Captions [Line Items] | |||
Patient service operating revenues | [1] | 2,415,046 | |
Less: Provision for uncollectible accounts | [1] | (107,112) | |
Net patient service revenues | [1] | 2,307,934 | |
Capitated revenues | [1] | 488,618 | |
Other revenues | [1] | 317,983 | |
Total net revenues | [1] | 3,114,535 | |
Operating expenses | [1] | 2,747,817 | |
Operating income (loss) | [1] | 366,718 | |
Debt expense, including debt refinancing charges | [1] | (99,144) | |
Other income | [1] | 2,821 | |
Income tax expense | [1] | 115,464 | |
Net income (loss) | [1] | 154,931 | |
Less: Net income attributable to noncontrolling interests | [1] | (40,725) | |
Net income (loss) attributable to DaVita HealthCare Partners Inc. | [1] | $ 114,206 | |
[1] | After elimination of the unrestricted subsidiaries and the physician groups. |
Supplemental Data - Condensed82
Supplemental Data - Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Condensed Financial Statements Captions [Line Items] | |||
Net income (loss) | $ 138,159 | $ (76,148) | |
Other comprehensive (loss) income | 6,313 | (22,608) | |
Total comprehensive income (loss) | 144,472 | (98,756) | |
Less: Comprehensive income attributable to noncontrolling interests | (40,725) | (34,469) | |
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | 103,747 | $ (133,225) | |
Physician Groups | |||
Condensed Financial Statements Captions [Line Items] | |||
Net income (loss) | (16,867) | ||
Total comprehensive income (loss) | (16,867) | ||
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | (16,867) | ||
Unrestricted Subsidiaries | |||
Condensed Financial Statements Captions [Line Items] | |||
Net income (loss) | 95 | ||
Total comprehensive income (loss) | 95 | ||
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | 95 | ||
Company and Restricted Subsidiaries | |||
Condensed Financial Statements Captions [Line Items] | |||
Net income (loss) | [1] | 154,931 | |
Other comprehensive (loss) income | [1] | 6,313 | |
Total comprehensive income (loss) | [1] | 161,244 | |
Less: Comprehensive income attributable to noncontrolling interests | [1] | (40,725) | |
Comprehensive income (loss) attributable to DaVita HealthCare Partners Inc. | [1] | $ 120,519 | |
[1] | After elimination of the unrestricted subsidiaries and the physician groups. |
Supplemental Data - Condensed83
Supplemental Data - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Condensed Balance Sheet Statements Captions [Line Items] | |||||
Cash and cash equivalents | $ 1,041,427 | $ 1,499,116 | $ 1,011,271 | $ 965,241 | |
Accounts receivable, net | 1,855,285 | 1,724,228 | |||
Other current assets | 1,302,848 | 1,279,936 | |||
Total current assets | 4,199,560 | 4,503,280 | |||
Property and equipment, net | 2,911,205 | 2,788,740 | |||
Amortizable intangibles, net | 1,678,707 | ||||
Other long-term assets | 239,098 | 241,050 | |||
Goodwill | 9,485,628 | 9,294,479 | $ 9,415,295 | ||
Total assets | 18,514,198 | 18,514,875 | |||
Current liabilities | 2,443,618 | 2,399,138 | |||
Long-term debt and other long-term liabilities | 10,236,143 | 10,167,499 | |||
Noncontrolling interests subject to put provisions | 912,705 | 864,066 | |||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 4,703,926 | 4,870,780 | |||
Noncontrolling interests not subject to put provisions | 217,806 | 213,392 | |||
Total equity | 4,921,732 | 5,084,172 | |||
Total liabilities and equity | 18,514,198 | 18,514,875 | |||
Physician Groups | |||||
Condensed Balance Sheet Statements Captions [Line Items] | |||||
Cash and cash equivalents | 143,953 | 88,245 | |||
Accounts receivable, net | 435,688 | ||||
Other current assets | 22,287 | ||||
Total current assets | 601,928 | ||||
Property and equipment, net | 1,678 | ||||
Amortizable intangibles, net | 5,656 | ||||
Other long-term assets | 74,692 | ||||
Goodwill | 16,234 | ||||
Total assets | 700,188 | ||||
Current liabilities | 255,174 | ||||
Payables to parent | 343,657 | ||||
Long-term debt and other long-term liabilities | 49,705 | ||||
Total DaVita HealthCare Partners Inc. shareholders’ equity | 51,652 | ||||
Total equity | 51,652 | ||||
Total liabilities and equity | 700,188 | ||||
Unrestricted Subsidiaries | |||||
Condensed Balance Sheet Statements Captions [Line Items] | |||||
Other long-term assets | 2,982 | ||||
Total assets | 2,982 | ||||
Payables to parent | 2,982 | ||||
Total liabilities and equity | 2,982 | ||||
Company and Restricted Subsidiaries | |||||
Condensed Balance Sheet Statements Captions [Line Items] | |||||
Cash and cash equivalents | [1] | 897,474 | $ 1,410,871 | ||
Accounts receivable, net | [1] | 1,419,597 | |||
Other current assets | [1] | 1,280,561 | |||
Total current assets | [1] | 3,597,632 | |||
Property and equipment, net | [1] | 2,909,527 | |||
Amortizable intangibles, net | [1] | 1,673,051 | |||
Other long-term assets | [1] | 161,424 | |||
Goodwill | [1] | 9,469,394 | |||
Total assets | [1] | 17,811,028 | |||
Current liabilities | [1] | 2,188,444 | |||
Payables to parent | [1] | (346,639) | |||
Long-term debt and other long-term liabilities | [1] | 10,186,438 | |||
Noncontrolling interests subject to put provisions | [1] | 912,705 | |||
Total DaVita HealthCare Partners Inc. shareholders’ equity | [1] | 4,652,274 | |||
Noncontrolling interests not subject to put provisions | [1] | 217,806 | |||
Total equity | [1] | 4,870,080 | |||
Total liabilities and equity | [1] | $ 17,811,028 | |||
[1] | After elimination of the unrestricted subsidiaries and the physician groups. |
Supplemental Data - Condensed84
Supplemental Data - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 138,159 | $ (76,148) | |
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | 290,843 | 486,237 | |
Net cash provided by operating activities | 429,002 | 410,089 | |
Cash flows from investing activities: | |||
Additions of property and equipment | (173,187) | (121,421) | |
Acquisitions and divestitures, net | (405,154) | ||
Proceeds from discontinued operations | 4,657 | 2,565 | |
Investments and other items | 19,373 | (92,781) | |
Net cash used in investing activities | (554,311) | (252,287) | |
Cash flows from financing activities: | |||
Long-term debt | (24,571) | (28,439) | |
Other items | (308,526) | (82,429) | |
Net cash used in financing activities | (333,097) | (110,868) | |
Effect of exchange rate changes on cash | 717 | (904) | |
Net (decrease) increase in cash and cash equivalents | (457,689) | 46,030 | |
Cash and cash equivalents at beginning of the year | 1,499,116 | 965,241 | |
Cash and cash equivalents at end of the period | 1,041,427 | $ 1,011,271 | |
Physician Groups | |||
Cash flows from operating activities: | |||
Net income (loss) | (16,867) | ||
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | (64,656) | ||
Net cash provided by operating activities | (81,523) | ||
Cash flows from investing activities: | |||
Additions of property and equipment | (200) | ||
Investments and other items | (536) | ||
Net cash used in investing activities | (736) | ||
Cash flows from financing activities: | |||
Intercompany | 137,967 | ||
Net cash used in financing activities | 137,967 | ||
Net (decrease) increase in cash and cash equivalents | 55,708 | ||
Cash and cash equivalents at beginning of the year | 88,245 | ||
Cash and cash equivalents at end of the period | 143,953 | ||
Unrestricted Subsidiaries | |||
Cash flows from operating activities: | |||
Net income (loss) | 95 | ||
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | (95) | ||
Company and Restricted Subsidiaries | |||
Cash flows from operating activities: | |||
Net income (loss) | [1] | 154,931 | |
Changes in operating and intercompany assets and liabilities and non-cash items included in net income | [1] | 355,594 | |
Net cash provided by operating activities | [1] | 510,525 | |
Cash flows from investing activities: | |||
Additions of property and equipment | [1] | (172,987) | |
Acquisitions and divestitures, net | [1] | (405,154) | |
Proceeds from discontinued operations | [1] | 4,657 | |
Investments and other items | [1] | 19,909 | |
Net cash used in investing activities | [1] | (553,575) | |
Cash flows from financing activities: | |||
Long-term debt | [1] | (24,571) | |
Intercompany | [1] | (137,967) | |
Other items | [1] | (308,526) | |
Net cash used in financing activities | [1] | (471,064) | |
Effect of exchange rate changes on cash | [1] | 717 | |
Net (decrease) increase in cash and cash equivalents | [1] | (513,397) | |
Cash and cash equivalents at beginning of the year | [1] | 1,410,871 | |
Cash and cash equivalents at end of the period | [1] | $ 897,474 | |
[1] | After elimination of the unrestricted subsidiaries and the physician groups. |