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Share Name | Share Symbol | Market | Type |
---|---|---|---|
DaVita Inc | NYSE:DVA | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.72 | 1.26% | 137.665 | 138.88 | 136.44 | 136.90 | 73,986 | 15:39:14 |
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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51-0354549
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(State of incorporation)
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(I.R.S. Employer Identification No.)
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2000 16th Street
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Denver,
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CO
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80202
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Title of each class:
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Trading symbol(s):
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Name of each exchange on which registered:
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Common Stock, $0.001 par value
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DVA
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NYSE
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page No.
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PART I. FINANCIAL INFORMATION
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II. OTHER INFORMATION
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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Three months ended June 30,
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Six months ended June 30,
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||||||||||||
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2020
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2019
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2020
|
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2019
|
||||||||
Dialysis patient service revenues
|
$
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2,758,197
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|
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$
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2,723,816
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$
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5,471,478
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$
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5,353,505
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Other revenues
|
121,782
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118,889
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249,738
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232,312
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||||
Total revenues
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2,879,979
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2,842,705
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5,721,216
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5,585,817
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Operating expenses and charges:
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Patient care costs
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1,984,564
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1,957,753
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3,960,013
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3,922,688
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General and administrative
|
316,209
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275,338
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579,785
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526,151
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Depreciation and amortization
|
157,376
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152,242
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312,055
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300,770
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||||
Equity investment income
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(4,342
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)
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(4,514
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)
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(22,185
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)
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(7,222
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)
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Loss on changes in ownership interest, net
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16,252
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—
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16,252
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—
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||||
Goodwill impairment charges
|
—
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—
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—
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41,037
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||||
Total operating expenses and charges
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2,470,059
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2,380,819
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4,845,920
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4,783,424
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||||
Operating income
|
409,920
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461,886
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875,296
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802,393
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||||
Debt expense
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(81,381
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)
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(131,666
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)
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(169,984
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)
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(263,185
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)
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Debt prepayment and refinancing charges
|
—
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(12,160
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)
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(2,948
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)
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(12,160
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)
|
||||
Other income, net
|
9,545
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5,643
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5,195
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12,583
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Income from continuing operations before income taxes
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338,084
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323,703
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707,559
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539,631
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||||
Income tax expense
|
83,212
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75,938
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174,772
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132,684
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Net income from continuing operations
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254,872
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247,765
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532,787
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406,947
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Net income from discontinued operations, net of tax
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—
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79,392
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9,980
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|
109,697
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Net income
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254,872
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327,157
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542,767
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|
516,644
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||||
Less: Net income attributable to noncontrolling interests
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(53,270
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)
|
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(53,606
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)
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(101,572
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)
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(93,804
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)
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||||
Net income attributable to DaVita Inc.
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$
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201,602
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$
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273,551
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$
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441,195
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$
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422,840
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Earnings per share attributable to DaVita Inc.:
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Basic net income from continuing operations per share
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$
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1.65
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$
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1.17
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$
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3.49
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$
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1.89
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Basic net income per share
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$
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1.65
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$
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1.64
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$
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3.57
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$
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2.54
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Diluted net income from continuing operations per share
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$
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1.62
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$
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1.16
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$
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3.44
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$
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1.89
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Diluted net income per share
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$
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1.62
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$
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1.64
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$
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3.52
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$
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2.54
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Weighted average shares for earnings per share:
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Basic
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122,074,452
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166,346,041
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123,485,412
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166,366,886
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Diluted
|
124,068,278
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166,799,525
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125,478,913
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166,789,978
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Amounts attributable to DaVita Inc.:
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Net income from continuing operations
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$
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201,602
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$
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194,223
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$
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431,215
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$
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314,477
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Net income from discontinued operations
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—
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79,328
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9,980
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|
108,363
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Net income attributable to DaVita Inc.
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$
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201,602
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$
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273,551
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$
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441,195
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$
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422,840
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Three months ended June 30,
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Six months ended June 30,
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||||||||||||
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2020
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2019
|
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2020
|
|
2019
|
||||||||
Net income
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$
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254,872
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$
|
327,157
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$
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542,767
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$
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516,644
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Other comprehensive income, net of tax:
|
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|
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Unrealized losses on interest rate cap agreements:
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Unrealized losses
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(1,824
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)
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(31
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)
|
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(14,842
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)
|
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(611
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)
|
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Reclassifications of net realized losses into net income
|
1,623
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1,606
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3,246
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3,212
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|
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Unrealized gains (losses) on foreign currency translation:
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Foreign currency translation adjustments
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5,619
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12,365
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(76,013
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)
|
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(1,288
|
)
|
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Other comprehensive income (loss)
|
5,418
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|
13,940
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(87,609
|
)
|
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1,313
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|
||||
Total comprehensive income
|
260,290
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341,097
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455,158
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517,957
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|
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Less: Comprehensive income attributable to noncontrolling interests
|
(53,270
|
)
|
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(53,606
|
)
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(101,572
|
)
|
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(93,804
|
)
|
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Comprehensive income attributable to DaVita Inc.
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$
|
207,020
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$
|
287,491
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$
|
353,586
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$
|
424,153
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June 30, 2020
|
|
December 31, 2019
|
||||
ASSETS
|
|
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|
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Cash and cash equivalents
|
$
|
2,928,910
|
|
|
$
|
1,102,372
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Restricted cash and equivalents
|
106,809
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|
|
106,346
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|
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Short-term investments
|
154,115
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|
11,572
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|
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Accounts receivable
|
1,772,259
|
|
|
1,795,598
|
|
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Inventories
|
97,902
|
|
|
97,949
|
|
||
Other receivables
|
614,606
|
|
|
489,695
|
|
||
Prepaid and other current assets
|
63,266
|
|
|
66,866
|
|
||
Income tax receivable
|
41,963
|
|
|
19,772
|
|
||
Total current assets
|
5,779,830
|
|
|
3,690,170
|
|
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Property and equipment, net of accumulated depreciation of $4,229,363 and $3,969,566,
respectively |
3,417,918
|
|
|
3,473,384
|
|
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Operating lease right-of-use assets
|
2,826,620
|
|
|
2,830,047
|
|
||
Intangible assets, net of accumulated amortization of $88,133 and $81,922, respectively
|
113,379
|
|
|
135,684
|
|
||
Equity method and other investments
|
255,489
|
|
|
241,983
|
|
||
Long-term investments
|
28,340
|
|
|
36,519
|
|
||
Other long-term assets
|
92,909
|
|
|
115,972
|
|
||
Goodwill
|
6,790,606
|
|
|
6,787,635
|
|
||
|
$
|
19,305,091
|
|
|
$
|
17,311,394
|
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LIABILITIES AND EQUITY
|
|
|
|
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|
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Accounts payable
|
$
|
357,283
|
|
|
$
|
403,840
|
|
Other liabilities
|
902,019
|
|
|
756,174
|
|
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Accrued compensation and benefits
|
686,700
|
|
|
695,052
|
|
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Current portion of operating lease liabilities
|
360,405
|
|
|
343,912
|
|
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Current portion of long-term debt
|
1,906,560
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|
|
130,708
|
|
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Income tax payable
|
61,596
|
|
|
42,412
|
|
||
Total current liabilities
|
4,274,563
|
|
|
2,372,098
|
|
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Long-term operating lease liabilities
|
2,709,569
|
|
|
2,723,800
|
|
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Long-term debt
|
7,894,674
|
|
|
7,977,526
|
|
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Other long-term liabilities
|
144,121
|
|
|
160,809
|
|
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Deferred income taxes
|
706,410
|
|
|
577,543
|
|
||
Total liabilities
|
15,729,337
|
|
|
13,811,776
|
|
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Commitments and contingencies
|
|
|
|
||||
Noncontrolling interests subject to put provisions
|
1,241,937
|
|
|
1,180,376
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|
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Equity:
|
|
|
|
|
|
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Preferred stock ($0.001 par value, 5,000,000 shares authorized; none issued)
|
—
|
|
|
—
|
|
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Common stock ($0.001 par value, 450,000,000 shares authorized; 126,036,632 and
121,984,334 shares issued and outstanding at June 30, 2020, respectively and 125,842,853 shares issued and outstanding at December 31, 2019) |
126
|
|
|
126
|
|
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Additional paid-in capital
|
719,102
|
|
|
749,043
|
|
||
Retained earnings
|
1,872,933
|
|
|
1,431,738
|
|
||
Treasury stock (4,052,298 and zero shares, respectively)
|
(303,139
|
)
|
|
—
|
|
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Accumulated other comprehensive loss
|
(135,107
|
)
|
|
(47,498
|
)
|
||
Total DaVita Inc. shareholders' equity
|
2,153,915
|
|
|
2,133,409
|
|
||
Noncontrolling interests not subject to put provisions
|
179,902
|
|
|
185,833
|
|
||
Total equity
|
2,333,817
|
|
|
2,319,242
|
|
||
|
$
|
19,305,091
|
|
|
$
|
17,311,394
|
|
|
Six months ended June 30,
|
||||||
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
542,767
|
|
|
$
|
516,644
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|||
Depreciation and amortization
|
312,055
|
|
|
300,770
|
|
||
Debt refinancing charges
|
884
|
|
|
—
|
|
||
Impairment charges
|
—
|
|
|
41,037
|
|
||
Stock-based compensation expense
|
42,125
|
|
|
29,045
|
|
||
Deferred income taxes
|
132,101
|
|
|
60,706
|
|
||
Equity investment (loss) income, net
|
(6,494
|
)
|
|
2,631
|
|
||
Loss on sales of business interests, net
|
16,252
|
|
|
23,022
|
|
||
Other non-cash charges, net
|
(5,885
|
)
|
|
25,857
|
|
||
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
|
|
|
|
||||
Accounts receivable
|
15,194
|
|
|
(288,437
|
)
|
||
Inventories
|
(696
|
)
|
|
11,542
|
|
||
Other receivables and other current assets
|
(131,988
|
)
|
|
(5,142
|
)
|
||
Other long-term assets
|
1,950
|
|
|
(410
|
)
|
||
Accounts payable
|
(15,858
|
)
|
|
(68,887
|
)
|
||
Accrued compensation and benefits
|
(19,325
|
)
|
|
(88,473
|
)
|
||
Other current liabilities
|
146,490
|
|
|
151,780
|
|
||
Income taxes
|
(4,800
|
)
|
|
57,551
|
|
||
Other long-term liabilities
|
(13,269
|
)
|
|
(18,121
|
)
|
||
Net cash provided by operating activities
|
1,011,503
|
|
|
751,115
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|||
Additions of property and equipment
|
(291,667
|
)
|
|
(373,918
|
)
|
||
Acquisitions
|
(44,267
|
)
|
|
(65,970
|
)
|
||
Proceeds from asset and business sales
|
70,615
|
|
|
3,851,381
|
|
||
Purchase of debt investments held-to-maturity
|
(142,483
|
)
|
|
(3,322
|
)
|
||
Purchase of other debt and equity investments
|
(3,034
|
)
|
|
(4,812
|
)
|
||
Proceeds from debt investments held-to-maturity
|
7,621
|
|
|
—
|
|
||
Proceeds from sale of other debt and equity investments
|
3,438
|
|
|
5,893
|
|
||
Purchase of equity method investments
|
(8,101
|
)
|
|
(6,715
|
)
|
||
Distributions from equity method investments
|
739
|
|
|
155
|
|
||
Net cash (used in) provided by investing activities
|
(407,139
|
)
|
|
3,402,692
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings
|
2,324,300
|
|
|
32,367,300
|
|
||
Payments on long-term debt
|
(635,695
|
)
|
|
(33,527,788
|
)
|
||
Deferred financing and debt redemption costs
|
(20,375
|
)
|
|
(3,621
|
)
|
||
Purchase of treasury stock
|
(321,798
|
)
|
|
(73,078
|
)
|
||
Distributions to noncontrolling interests
|
(118,553
|
)
|
|
(95,714
|
)
|
||
Stock award exercises and other share issuances, net
|
(2,106
|
)
|
|
2,107
|
|
||
Contributions from noncontrolling interests
|
20,582
|
|
|
31,281
|
|
||
Purchases of noncontrolling interests
|
(6,782
|
)
|
|
(11,040
|
)
|
||
Net cash provided by (used in) financing activities
|
1,239,573
|
|
|
(1,310,553
|
)
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(16,936
|
)
|
|
(77
|
)
|
||
Net increase in cash, cash equivalents and restricted cash
|
1,827,001
|
|
|
2,843,177
|
|
||
Less: Net decrease in cash, cash equivalents and restricted cash from discontinued operations
|
—
|
|
|
(423,813
|
)
|
||
Net increase in cash, cash equivalents and restricted cash from continuing operations
|
1,827,001
|
|
|
3,266,990
|
|
||
Cash, cash equivalents and restricted cash of continuing operations at beginning of the year
|
1,208,718
|
|
|
415,420
|
|
||
Cash, cash equivalents and restricted cash of continuing operations at end of the year
|
$
|
3,035,719
|
|
|
$
|
3,682,410
|
|
|
Three months ended June 30, 2020
|
||||||||||||||||||||||||||||||||||||
|
Non-
controlling interests subject to put provisions |
|
DaVita Inc. Shareholders’ Equity
|
|
Non-
controlling interests not subject to put provisions |
||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||
|
|
Common stock
|
|
Additional
paid-in capital |
|
Retained
earnings |
|
Treasury stock
|
|
Accumulated
other comprehensive loss |
|
|
|
||||||||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
Shares
|
|
Amount
|
|
|
Total
|
|
|||||||||||||||||||||||
Balance at March 31, 2020
|
$
|
1,228,036
|
|
|
125,857
|
|
|
$
|
126
|
|
|
$
|
720,053
|
|
|
$
|
1,671,331
|
|
|
(4,052
|
)
|
|
$
|
(303,139
|
)
|
|
$
|
(140,525
|
)
|
|
$
|
1,947,846
|
|
|
$
|
185,498
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net income
|
34,707
|
|
|
|
|
|
|
|
|
201,602
|
|
|
|
|
|
|
|
|
201,602
|
|
|
18,563
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,418
|
|
|
5,418
|
|
|
|
||||||||||||||||
Stock unit shares issued
|
|
|
153
|
|
|
|
|
(7,076
|
)
|
|
|
|
|
|
|
|
|
|
(7,076
|
)
|
|
|
|||||||||||||||
Stock appreciation rights shares
issued |
|
|
27
|
|
|
|
|
(815
|
)
|
|
|
|
|
|
|
|
|
|
(815
|
)
|
|
|
|||||||||||||||
Stock-settled stock-based
compensation expense |
|
|
|
|
|
|
21,881
|
|
|
|
|
|
|
|
|
|
|
21,881
|
|
|
|
||||||||||||||||
Changes in noncontrolling
interest from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Distributions
|
(39,569
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,853
|
)
|
||||||||||||||||
Contributions
|
8,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,383
|
|
||||||||||||||||
Acquisitions and divestitures
|
(3,214
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,383
|
)
|
||||||||||||||||
Partial purchases
|
(6,418
|
)
|
|
|
|
|
|
4,642
|
|
|
|
|
|
|
|
|
|
|
4,642
|
|
|
(4,306
|
)
|
||||||||||||||
Fair value remeasurements
|
19,583
|
|
|
|
|
|
|
(19,583
|
)
|
|
|
|
|
|
|
|
|
|
(19,583
|
)
|
|
|
|||||||||||||||
Purchase of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at June 30, 2020
|
$
|
1,241,937
|
|
|
126,037
|
|
|
$
|
126
|
|
|
$
|
719,102
|
|
|
$
|
1,872,933
|
|
|
(4,052
|
)
|
|
$
|
(303,139
|
)
|
|
$
|
(135,107
|
)
|
|
$
|
2,153,915
|
|
|
$
|
179,902
|
|
1.
|
Condensed consolidated interim financial statements
|
2.
|
Revenue recognition
|
|
Three months ended June 30, 2020
|
|
Three months ended June 30, 2019
|
||||||||||||||||||||
|
U.S. dialysis
|
|
Other - Ancillary services
|
|
Consolidated
|
|
U.S. dialysis
|
|
Other - Ancillary services
|
|
Consolidated
|
||||||||||||
Dialysis patient service revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Medicare and Medicare Advantage
|
$
|
1,517,309
|
|
|
$
|
|
$
|
1,517,309
|
|
|
$
|
1,520,193
|
|
|
$
|
|
$
|
1,520,193
|
|
||||
Medicaid and Managed Medicaid
|
182,324
|
|
|
|
|
|
182,324
|
|
|
160,242
|
|
|
|
|
160,242
|
|
|||||||
Other government
|
116,758
|
|
|
90,813
|
|
|
207,571
|
|
|
110,565
|
|
|
88,770
|
|
|
199,335
|
|
||||||
Commercial
|
850,558
|
|
|
35,557
|
|
|
886,115
|
|
|
840,993
|
|
|
33,095
|
|
|
874,088
|
|
||||||
Other revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Medicare and Medicare Advantage
|
|
|
|
99,829
|
|
|
99,829
|
|
|
|
|
64,012
|
|
|
64,012
|
|
|||||||
Medicaid and Managed Medicaid
|
|
|
|
283
|
|
|
283
|
|
|
|
|
94
|
|
|
94
|
|
|||||||
Commercial
|
|
|
|
9,050
|
|
|
9,050
|
|
|
|
|
32,307
|
|
|
32,307
|
|
|||||||
Other(1)
|
7,995
|
|
|
9,103
|
|
|
17,098
|
|
|
5,501
|
|
|
20,670
|
|
|
26,171
|
|
||||||
Eliminations of intersegment revenues
|
(35,429
|
)
|
|
(4,171
|
)
|
|
(39,600
|
)
|
|
(30,334
|
)
|
|
(3,403
|
)
|
|
(33,737
|
)
|
||||||
Total
|
$
|
2,639,515
|
|
|
$
|
240,464
|
|
|
$
|
2,879,979
|
|
|
$
|
2,607,160
|
|
|
$
|
235,545
|
|
|
$
|
2,842,705
|
|
|
(1)
|
Other consists of management service fees earned in the respective Company line of business as well as other revenue from the Company's ancillary services.
|
|
Six months ended June 30, 2020
|
|
Six months ended June 30, 2019
|
||||||||||||||||||||
|
U.S. dialysis
|
|
Other - Ancillary services
|
|
Consolidated
|
|
U.S. dialysis
|
|
Other - Ancillary services
|
|
Consolidated
|
||||||||||||
Patient service revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Medicare and Medicare Advantage
|
$
|
3,019,529
|
|
|
$
|
|
$
|
3,019,529
|
|
|
$
|
3,013,709
|
|
|
$
|
|
$
|
3,013,709
|
|
||||
Medicaid and Managed Medicaid
|
353,791
|
|
|
|
|
353,791
|
|
|
314,431
|
|
|
|
|
314,431
|
|
||||||||
Other government
|
228,669
|
|
|
185,387
|
|
|
414,056
|
|
|
216,692
|
|
|
173,245
|
|
|
389,937
|
|
||||||
Commercial
|
1,676,140
|
|
|
75,024
|
|
|
1,751,164
|
|
|
1,629,407
|
|
|
66,483
|
|
|
1,695,890
|
|
||||||
Other revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Medicare and Medicare Advantage
|
|
|
198,307
|
|
|
198,307
|
|
|
|
|
125,713
|
|
|
125,713
|
|
||||||||
Medicaid and Managed Medicaid
|
|
|
649
|
|
|
649
|
|
|
|
|
100
|
|
|
100
|
|
||||||||
Commercial
|
|
|
19,571
|
|
|
19,571
|
|
|
|
|
64,925
|
|
|
64,925
|
|
||||||||
Other(1)
|
13,438
|
|
|
26,705
|
|
|
40,143
|
|
|
10,406
|
|
|
38,420
|
|
|
48,826
|
|
||||||
Eliminations of intersegment revenues
|
(67,670
|
)
|
|
(8,324
|
)
|
|
(75,994
|
)
|
|
(60,975
|
)
|
|
(6,739
|
)
|
|
(67,714
|
)
|
||||||
Total
|
$
|
5,223,897
|
|
|
$
|
497,319
|
|
|
$
|
5,721,216
|
|
|
$
|
5,123,670
|
|
|
$
|
462,147
|
|
|
$
|
5,585,817
|
|
|
(1)
|
Other consists of management service fees earned in the respective Company line of business as well as other revenue from the Company's ancillary services.
|
3.
|
Earnings per share
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income attributable to DaVita Inc. from:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
201,602
|
|
|
$
|
194,223
|
|
|
$
|
431,215
|
|
|
$
|
314,477
|
|
Discontinued operations
|
—
|
|
|
79,328
|
|
|
9,980
|
|
|
108,363
|
|
||||
Net income attributable to DaVita Inc.
|
$
|
201,602
|
|
|
$
|
273,551
|
|
|
$
|
441,195
|
|
|
$
|
422,840
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares - basic
|
122,074
|
|
|
166,346
|
|
|
123,485
|
|
|
166,367
|
|
||||
Assumed incremental shares from stock plans
|
1,994
|
|
|
454
|
|
|
1,994
|
|
|
423
|
|
||||
Weighted average shares - diluted
|
124,068
|
|
|
166,800
|
|
|
125,479
|
|
|
166,790
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic net income attributable to DaVita Inc. from:
|
|
|
|
|
|
|
|
||||||||
Continuing operations per share
|
$
|
1.65
|
|
|
$
|
1.17
|
|
|
$
|
3.49
|
|
|
$
|
1.89
|
|
Discontinued operations per share
|
—
|
|
|
0.47
|
|
|
0.08
|
|
|
0.65
|
|
||||
Basic net income per share attributable to DaVita Inc.
|
$
|
1.65
|
|
|
$
|
1.64
|
|
|
$
|
3.57
|
|
|
$
|
2.54
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income attributable to DaVita Inc. from:
|
|
|
|
|
|
|
|
||||||||
Continuing operations per share
|
$
|
1.62
|
|
|
$
|
1.16
|
|
|
$
|
3.44
|
|
|
$
|
1.89
|
|
Discontinued operations per share
|
—
|
|
|
0.48
|
|
|
0.08
|
|
|
0.65
|
|
||||
Diluted net income per share attributable to DaVita Inc.
|
$
|
1.62
|
|
|
$
|
1.64
|
|
|
$
|
3.52
|
|
|
$
|
2.54
|
|
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive stock-settled awards excluded from calculations(1)
|
3,216
|
|
|
5,797
|
|
|
3,211
|
|
|
5,974
|
|
|
(1)
|
Shares associated with stock-settled stock appreciation rights and performance stock units were excluded from the diluted denominator calculations because they are anti-dilutive under the treasury stock method.
|
4.
|
Short-term and long-term investments
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||||
|
Debt
securities |
|
Equity
securities |
|
Total
|
|
Debt
securities |
|
Equity
securities |
|
Total
|
||||||||||||
Certificates of deposit and other time deposits
|
$
|
143,059
|
|
|
$
|
—
|
|
|
$
|
143,059
|
|
|
$
|
8,140
|
|
|
$
|
—
|
|
|
$
|
8,140
|
|
Investments in mutual funds and common stock
|
—
|
|
|
39,396
|
|
|
39,396
|
|
|
—
|
|
|
39,951
|
|
|
39,951
|
|
||||||
|
$
|
143,059
|
|
|
$
|
39,396
|
|
|
$
|
182,455
|
|
|
$
|
8,140
|
|
|
$
|
39,951
|
|
|
$
|
48,091
|
|
Short-term investments
|
$
|
143,059
|
|
|
$
|
11,056
|
|
|
$
|
154,115
|
|
|
$
|
8,140
|
|
|
$
|
3,432
|
|
|
$
|
11,572
|
|
Long-term investments
|
—
|
|
|
28,340
|
|
|
28,340
|
|
|
—
|
|
|
36,519
|
|
|
36,519
|
|
||||||
|
$
|
143,059
|
|
|
$
|
39,396
|
|
|
$
|
182,455
|
|
|
$
|
8,140
|
|
|
$
|
39,951
|
|
|
$
|
48,091
|
|
5.
|
Equity method and other investments
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
APAC joint venture
|
$
|
122,137
|
|
|
$
|
116,924
|
|
Other equity method partnerships
|
115,247
|
|
|
114,611
|
|
||
Adjusted cost method investments
|
18,105
|
|
|
10,448
|
|
||
|
$
|
255,489
|
|
|
$
|
241,983
|
|
6.
|
Goodwill
|
|
U.S. dialysis
|
|
Other - Ancillary services
|
|
Consolidated
|
||||||
Balance at December 31, 2018
|
$
|
6,275,004
|
|
|
$
|
566,956
|
|
|
$
|
6,841,960
|
|
Acquisitions
|
18,089
|
|
|
72,137
|
|
|
90,226
|
|
|||
Impairment charges
|
—
|
|
|
(124,892
|
)
|
|
(124,892
|
)
|
|||
Foreign currency and other adjustments
|
(5,993
|
)
|
|
(13,666
|
)
|
|
(19,659
|
)
|
|||
Balance at December 31, 2019
|
$
|
6,287,100
|
|
|
$
|
500,535
|
|
|
$
|
6,787,635
|
|
Acquisitions
|
3,997
|
|
|
37,587
|
|
|
41,584
|
|
|||
Divestitures
|
(1,549
|
)
|
|
(6,744
|
)
|
|
(8,293
|
)
|
|||
Foreign currency and other adjustments
|
—
|
|
|
(30,320
|
)
|
|
(30,320
|
)
|
|||
Balance at June 30, 2020
|
$
|
6,289,548
|
|
|
$
|
501,058
|
|
|
$
|
6,790,606
|
|
|
|
|
|
|
|
||||||
Goodwill
|
$
|
6,289,548
|
|
|
$
|
626,224
|
|
|
$
|
6,915,772
|
|
Accumulated impairment charges
|
—
|
|
|
(125,166
|
)
|
|
(125,166
|
)
|
|||
|
$
|
6,289,548
|
|
|
$
|
501,058
|
|
|
$
|
6,790,606
|
|
7.
|
Income taxes
|
8.
|
Long-term debt
|
|
|
|
|
|
|
|
As of June 30, 2020
|
|||||||||
|
June 30, 2020
|
|
December 31, 2019
|
|
Maturity date
|
|
Interest rate
|
|
Estimated fair value(1)
|
|||||||
Senior Secured Credit Facilities:
|
|
|
|
|
|
|
|
|
|
|||||||
Term Loan A(2)
|
$
|
1,717,188
|
|
|
$
|
1,739,063
|
|
|
8/12/2024
|
|
LIBOR + 1.50%
|
|
$
|
1,669,965
|
|
|
Term Loan B-1(3)
|
2,729,409
|
|
|
—
|
|
|
8/12/2026
|
|
LIBOR + 1.75%
|
|
$
|
2,657,762
|
|
|||
Term Loan B(3)
|
—
|
|
|
2,743,125
|
|
|
8/12/2026
|
|
|
|
|
|||||
Revolving line of credit(2)
|
—
|
|
|
—
|
|
|
8/12/2024
|
|
LIBOR + 1.50%
|
|
$
|
—
|
|
|||
Senior Notes:
|
|
|
|
|
|
|
|
|
|
|||||||
4 ⅝% Senior Notes
|
1,750,000
|
|
|
—
|
|
|
6/1/2030
|
|
4.625
|
%
|
|
$
|
1,744,400
|
|
||
5 ⅛% Senior Notes(4)
|
1,750,000
|
|
|
1,750,000
|
|
|
7/15/2024
|
|
5.125
|
%
|
|
$
|
1,781,500
|
|
||
5% Senior Notes
|
1,500,000
|
|
|
1,500,000
|
|
|
5/1/2025
|
|
5.00
|
%
|
|
$
|
1,537,500
|
|
||
Acquisition obligations and other notes payable(5)
|
163,207
|
|
|
180,352
|
|
|
2020-2036
|
|
4.93
|
%
|
|
$
|
163,207
|
|
||
Financing lease obligations(6)
|
276,510
|
|
|
268,534
|
|
|
2020-2038
|
|
5.25
|
%
|
|
|
||||
Total debt principal outstanding
|
9,886,314
|
|
|
8,181,074
|
|
|
|
|
|
|
|
|||||
Discount and deferred financing costs
|
(85,080
|
)
|
|
(72,840
|
)
|
|
|
|
|
|
|
|||||
|
9,801,234
|
|
|
8,108,234
|
|
|
|
|
|
|
|
|||||
Less current portion
|
(1,906,560
|
)
|
|
(130,708
|
)
|
|
|
|
|
|
|
|||||
|
$
|
7,894,674
|
|
|
$
|
7,977,526
|
|
|
|
|
|
|
|
|
(1)
|
For the Company's senior secured credit facilities and senior notes, fair value estimates are based upon bid and ask quotes, typically a level 2 input. For the acquisition obligations and other notes payable, the carrying values presented here approximate their estimated fair values, based on estimates of their present values using level 2 interest rate inputs.
|
(2)
|
The Company's interest rate on its Term Loan A and revolving line of credit is subject to adjustment depending upon the Company's leverage ratio under the credit agreement governing its senior secured credit facilities. Based on the Company's leverage ratio as of June 30, 2020, the Company’s interest rate effective in the third quarter of 2020 will be LIBOR plus 1.75% for its Term Loan A and revolving line of credit.
|
(3)
|
On February 13, 2020, the Company entered into an amendment to the credit agreement governing its senior secured credit facilities to refinance the senior secured Term Loan B with a $2,743,125 senior secured Term Loan B-1.
|
(4)
|
As described below, the Company redeemed in full all $1,750,000 in aggregate principal amount of its 5 ⅛% Senior Notes on July 15, 2020. These senior notes have therefore been classified in the current portion of long-term debt on the Company's balance sheet as of June 30, 2020.
|
(5)
|
The interest rate presented for acquisition obligations and other notes payable is their weighted average interest rate based on the current interest rates in effect and assuming no changes to the LIBOR based interest rates.
|
(6)
|
Financing lease obligations are measured at their approximate present values at inception. The interest rate presented is the weighted average discount rate embedded in financing leases outstanding.
|
2020 (remainder of the year)
|
$
|
1,832,231
|
|
2021
|
$
|
150,069
|
|
2022
|
$
|
171,395
|
|
2023
|
$
|
229,132
|
|
2024
|
$
|
1,421,882
|
|
2025
|
$
|
1,562,704
|
|
Thereafter
|
$
|
4,518,901
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, 2020 |
|
Fair value
|
||||||||||||||
|
Notional amount
|
|
LIBOR maximum rate
|
|
Effective date
|
|
Expiration date
|
|
Debt expense
|
|
Recorded OCI loss
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||
2019 cap agreements
|
$
|
3,500,000
|
|
|
2.00%
|
|
6/30/2020
|
|
6/30/2024
|
|
$
|
—
|
|
|
$
|
19,777
|
|
|
$
|
4,675
|
|
|
$
|
24,452
|
|
2015 cap agreements
|
$
|
3,500,000
|
|
|
3.50%
|
|
6/29/2018
|
|
6/30/2020
|
|
$
|
4,326
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Amount of unrealized losses in OCI on interest rate cap agreements
|
|
Income statement
location |
|
Reclassification from accumulated other comprehensive loss into net income
|
||||||||||||||||||||||||||||
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
|||||||||||||||||||||||||
Derivatives designated
as cash flow hedges |
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||||||||||
Interest rate cap agreements
|
|
$
|
(2,431
|
)
|
|
$
|
(42
|
)
|
|
$
|
(19,777
|
)
|
|
$
|
(823
|
)
|
|
Debt expense
|
|
$
|
2,163
|
|
|
$
|
2,163
|
|
|
$
|
4,326
|
|
|
$
|
4,326
|
|
Related income tax
|
|
607
|
|
|
11
|
|
|
4,935
|
|
|
212
|
|
|
Related income tax
|
|
(540
|
)
|
|
(557
|
)
|
|
(1,080
|
)
|
|
(1,114
|
)
|
||||||||
Total
|
|
$
|
(1,824
|
)
|
|
$
|
(31
|
)
|
|
$
|
(14,842
|
)
|
|
$
|
(611
|
)
|
|
|
|
$
|
1,623
|
|
|
$
|
1,606
|
|
|
$
|
3,246
|
|
|
$
|
3,212
|
|
9.
|
Contingencies
|
10.
|
Other commitments
|
11.
|
Long-term incentive compensation
|
12.
|
Share repurchases
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Open market repurchases:
|
|
||||||||||||||
Shares
|
—
|
|
|
2,060
|
|
|
4,052
|
|
|
2,060
|
|
||||
Amount paid
|
$
|
—
|
|
|
$
|
112,189
|
|
|
$
|
303,139
|
|
|
$
|
112,189
|
|
Average paid per share
|
$
|
—
|
|
|
$
|
54.46
|
|
|
$
|
74.81
|
|
|
$
|
54.46
|
|
13.
|
Accumulated other comprehensive loss
|
|
Three months ended June 30, 2020
|
|
Six months ended June 30, 2020
|
||||||||||||||||||||
|
Interest
rate cap agreements |
|
Foreign
currency translation adjustments |
|
Accumulated
other comprehensive loss |
|
Interest
rate cap agreements |
|
Foreign
currency translation adjustments |
|
Accumulated
other comprehensive loss |
||||||||||||
Beginning balance
|
$
|
(12,828
|
)
|
|
$
|
(127,697
|
)
|
|
$
|
(140,525
|
)
|
|
$
|
(1,433
|
)
|
|
$
|
(46,065
|
)
|
|
$
|
(47,498
|
)
|
Unrealized (losses) gains
|
(2,431
|
)
|
|
5,619
|
|
|
3,188
|
|
|
(19,777
|
)
|
|
(76,013
|
)
|
|
(95,790
|
)
|
||||||
Related income tax
|
607
|
|
|
—
|
|
|
607
|
|
|
4,935
|
|
|
—
|
|
|
4,935
|
|
||||||
|
(1,824
|
)
|
|
5,619
|
|
|
3,795
|
|
|
(14,842
|
)
|
|
(76,013
|
)
|
|
(90,855
|
)
|
||||||
Reclassification into net income
|
2,163
|
|
|
—
|
|
|
2,163
|
|
|
4,326
|
|
|
—
|
|
|
4,326
|
|
||||||
Related income tax
|
(540
|
)
|
|
—
|
|
|
(540
|
)
|
|
(1,080
|
)
|
|
—
|
|
|
(1,080
|
)
|
||||||
|
1,623
|
|
|
—
|
|
|
1,623
|
|
|
3,246
|
|
|
—
|
|
|
3,246
|
|
||||||
Ending balance
|
$
|
(13,029
|
)
|
|
$
|
(122,078
|
)
|
|
$
|
(135,107
|
)
|
|
$
|
(13,029
|
)
|
|
$
|
(122,078
|
)
|
|
$
|
(135,107
|
)
|
|
Three months ended June 30, 2019
|
|
Six months ended June 30, 2019
|
||||||||||||||||||||
|
Interest
rate cap agreements |
|
Foreign
currency translation adjustments |
|
Accumulated
other comprehensive loss |
|
Interest
rate cap agreements |
|
Foreign
currency translation adjustments |
|
Accumulated
other comprehensive loss |
||||||||||||
Beginning balance
|
$
|
(7,935
|
)
|
|
$
|
(39,616
|
)
|
|
$
|
(47,551
|
)
|
|
$
|
(8,961
|
)
|
|
$
|
(25,963
|
)
|
|
$
|
(34,924
|
)
|
Unrealized (losses) gains
|
(42
|
)
|
|
12,365
|
|
|
12,323
|
|
|
(823
|
)
|
|
(1,288
|
)
|
|
(2,111
|
)
|
||||||
Related income tax
|
11
|
|
|
—
|
|
|
11
|
|
|
212
|
|
|
—
|
|
|
212
|
|
||||||
|
(31
|
)
|
|
12,365
|
|
|
12,334
|
|
|
(611
|
)
|
|
(1,288
|
)
|
|
(1,899
|
)
|
||||||
Reclassification into net income
|
2,163
|
|
|
—
|
|
|
2,163
|
|
|
4,326
|
|
|
—
|
|
|
4,326
|
|
||||||
Related income tax
|
(557
|
)
|
|
—
|
|
|
(557
|
)
|
|
(1,114
|
)
|
|
—
|
|
|
(1,114
|
)
|
||||||
|
1,606
|
|
|
—
|
|
|
1,606
|
|
|
3,212
|
|
|
—
|
|
|
3,212
|
|
||||||
Ending balance
|
$
|
(6,360
|
)
|
|
$
|
(27,251
|
)
|
|
$
|
(33,611
|
)
|
|
$
|
(6,360
|
)
|
|
$
|
(27,251
|
)
|
|
$
|
(33,611
|
)
|
14.
|
Acquisitions and divestitures
|
Current assets
|
$
|
9,934
|
|
Property and equipment
|
9,204
|
|
|
Intangible and other long-term assets
|
7,138
|
|
|
Goodwill
|
41,584
|
|
|
Deferred income taxes
|
1,513
|
|
|
Current liabilities
|
(12,048
|
)
|
|
Noncontrolling interests
|
(596
|
)
|
|
|
$
|
56,729
|
|
|
Three months ended June 30, 2020
|
|
Six months ended June 30, 2020
|
||||
Beginning balance
|
$
|
22,386
|
|
|
$
|
24,586
|
|
Acquisitions
|
3,190
|
|
|
5,861
|
|
||
Foreign currency translation
|
(510
|
)
|
|
(5,383
|
)
|
||
Fair value remeasurements
|
(642
|
)
|
|
(640
|
)
|
||
Payments or other settlements
|
(367
|
)
|
|
(367
|
)
|
||
Ending balance
|
$
|
24,057
|
|
|
$
|
24,057
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues
|
$
|
—
|
|
|
$
|
1,330,777
|
|
|
$
|
—
|
|
|
$
|
2,713,059
|
|
Expenses
|
—
|
|
|
1,201,633
|
|
|
—
|
|
|
2,539,787
|
|
||||
Income from discontinued operations before taxes
|
—
|
|
|
129,144
|
|
|
—
|
|
|
173,272
|
|
||||
(Loss) gain on sale of discontinued operations before taxes
|
—
|
|
|
(23,022
|
)
|
|
9,980
|
|
|
(23,022
|
)
|
||||
Income tax expense
|
—
|
|
|
26,730
|
|
|
—
|
|
|
40,553
|
|
||||
Net income from discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
79,392
|
|
|
$
|
9,980
|
|
|
$
|
109,697
|
|
|
Six months ended June 30,
|
||||||
|
2020
|
|
2019
|
||||
Net cash provided by operating activities from discontinued operations
|
$
|
—
|
|
|
$
|
103,848
|
|
Net cash used in investing activities from discontinued operations
|
$
|
—
|
|
|
$
|
(43,442
|
)
|
16.
|
Variable interest entities (VIEs)
|
17.
|
Fair values of financial instruments
|
|
Total
|
|
Quoted prices in
active markets for identical assets (Level 1) |
|
Significant other
observable inputs (Level 2) |
|
Significant
unobservable inputs (Level 3) |
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investments in equity securities
|
$
|
39,396
|
|
|
$
|
39,396
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate cap agreements
|
$
|
4,675
|
|
|
$
|
—
|
|
|
$
|
4,675
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||
Contingent earn-out obligations
|
$
|
24,057
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,057
|
|
Temporary equity
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noncontrolling interests subject to put provisions
|
$
|
1,241,937
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,241,937
|
|
18.
|
Segment reporting
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Segment revenues:
|
|
|
|
|
|
|
|
||||||||
U.S. dialysis
|
|
|
|
|
|
|
|
||||||||
Dialysis patient service revenues:
|
|
|
|
|
|
|
|
||||||||
External sources
|
$
|
2,631,827
|
|
|
$
|
2,601,951
|
|
|
$
|
5,211,067
|
|
|
$
|
5,113,777
|
|
Intersegment revenues
|
35,122
|
|
|
30,042
|
|
|
67,062
|
|
|
60,462
|
|
||||
U.S. dialysis patient service revenues
|
2,666,949
|
|
|
2,631,993
|
|
|
5,278,129
|
|
|
5,174,239
|
|
||||
Other revenues(1):
|
|
|
|
|
|
|
|
||||||||
External sources
|
7,688
|
|
|
5,209
|
|
|
12,830
|
|
|
9,893
|
|
||||
Intersegment revenues
|
307
|
|
|
292
|
|
|
608
|
|
|
513
|
|
||||
Total U.S. dialysis revenues
|
2,674,944
|
|
|
2,637,494
|
|
|
5,291,567
|
|
|
5,184,645
|
|
||||
Other—Ancillary services
|
|
|
|
|
|
|
|
||||||||
Dialysis patient service revenues, net
|
126,370
|
|
|
121,865
|
|
|
260,411
|
|
|
239,728
|
|
||||
Other external sources
|
114,094
|
|
|
113,680
|
|
|
236,908
|
|
|
222,419
|
|
||||
Intersegment revenues
|
4,171
|
|
|
3,403
|
|
|
8,324
|
|
|
6,739
|
|
||||
Total ancillary services revenues
|
244,635
|
|
|
238,948
|
|
|
505,643
|
|
|
468,886
|
|
||||
Total net segment revenues
|
2,919,579
|
|
|
2,876,442
|
|
|
5,797,210
|
|
|
5,653,531
|
|
||||
Elimination of intersegment revenues
|
(39,600
|
)
|
|
(33,737
|
)
|
|
(75,994
|
)
|
|
(67,714
|
)
|
||||
Consolidated revenues
|
$
|
2,879,979
|
|
|
$
|
2,842,705
|
|
|
$
|
5,721,216
|
|
|
$
|
5,585,817
|
|
Segment operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. dialysis
|
$
|
522,630
|
|
|
$
|
498,957
|
|
|
$
|
1,014,236
|
|
|
$
|
915,939
|
|
Other—Ancillary services
|
(39,622
|
)
|
|
(15,050
|
)
|
|
(42,268
|
)
|
|
(72,680
|
)
|
||||
Total segment operating income
|
483,008
|
|
|
483,907
|
|
|
971,968
|
|
|
843,259
|
|
||||
Reconciliation of segment operating income to consolidated
income from continuing operations before income taxes: |
|
|
|
|
|
|
|
||||||||
Corporate administrative support
|
(73,088
|
)
|
|
(22,021
|
)
|
|
(96,672
|
)
|
|
(40,866
|
)
|
||||
Consolidated operating income
|
409,920
|
|
|
461,886
|
|
|
875,296
|
|
|
802,393
|
|
||||
Debt expense
|
(81,381
|
)
|
|
(131,666
|
)
|
|
(169,984
|
)
|
|
(263,185
|
)
|
||||
Debt prepayment and refinancing charges
|
—
|
|
|
(12,160
|
)
|
|
(2,948
|
)
|
|
(12,160
|
)
|
||||
Other income, net
|
9,545
|
|
|
5,643
|
|
|
5,195
|
|
|
12,583
|
|
||||
Consolidated income from continuing operations
before income taxes |
$
|
338,084
|
|
|
$
|
323,703
|
|
|
$
|
707,559
|
|
|
$
|
539,631
|
|
|
(1)
|
Includes management fee revenue from providing management and administrative services to dialysis ventures in which the Company owns a noncontrolling equity investment or which are wholly-owned by third parties.
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
U.S. dialysis (including equity investments of $130,732
and $124,188, respectively) |
$
|
17,896,917
|
|
|
$
|
15,778,880
|
|
Other—Ancillary services (including equity investments
of $124,757 and $117,795, respectively) |
1,408,174
|
|
|
1,532,514
|
|
||
Consolidated assets
|
$
|
19,305,091
|
|
|
$
|
17,311,394
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
U.S. dialysis
|
$
|
148,312
|
|
|
$
|
144,621
|
|
|
$
|
294,612
|
|
|
$
|
285,401
|
|
Other—Ancillary services
|
9,064
|
|
|
7,621
|
|
|
17,443
|
|
|
15,369
|
|
||||
|
$
|
157,376
|
|
|
$
|
152,242
|
|
|
$
|
312,055
|
|
|
$
|
300,770
|
|
|
Six months ended June 30,
|
||||||
|
2020
|
|
2019
|
||||
U.S. dialysis
|
$
|
280,801
|
|
|
$
|
319,812
|
|
Other—Ancillary services
|
10,866
|
|
|
15,640
|
|
||
DMG—Discontinued operations
|
—
|
|
|
38,466
|
|
||
|
$
|
291,667
|
|
|
$
|
373,918
|
|
19.
|
Changes in DaVita Inc.’s ownership interests in consolidated subsidiaries
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income attributable to DaVita Inc.
|
$
|
201,602
|
|
|
$
|
273,551
|
|
|
$
|
441,195
|
|
|
$
|
422,840
|
|
Changes in paid-in capital for:
|
|
|
|
|
|
|
|
||||||||
Purchases of noncontrolling interests
|
4,642
|
|
|
13,140
|
|
|
4,197
|
|
|
10,934
|
|
||||
Net transfers to noncontrolling interests
|
4,642
|
|
|
13,140
|
|
|
4,197
|
|
|
10,934
|
|
||||
Net income attributable to DaVita Inc., net of transfers to noncontrolling interests
|
$
|
206,244
|
|
|
$
|
286,691
|
|
|
$
|
445,392
|
|
|
$
|
433,774
|
|
20.
|
New accounting standards
|
21.
|
Condensed consolidating financial statements
|
For the three months ended June 30, 2020
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries
|
|
Non-
Guarantor
subsidiaries
|
|
Consolidating
adjustments
|
|
Consolidated
total
|
||||||||||
Patient service revenues
|
|
$
|
—
|
|
|
$
|
1,715,449
|
|
|
$
|
1,120,072
|
|
|
$
|
(77,324
|
)
|
|
$
|
2,758,197
|
|
Other revenues
|
|
211,996
|
|
|
163,738
|
|
|
30,625
|
|
|
(284,577
|
)
|
|
121,782
|
|
|||||
Total net revenues
|
|
211,996
|
|
|
1,879,187
|
|
|
1,150,697
|
|
|
(361,901
|
)
|
|
2,879,979
|
|
|||||
Operating expenses
|
|
250,311
|
|
|
1,663,321
|
|
|
918,328
|
|
|
(361,901
|
)
|
|
2,470,059
|
|
|||||
Operating (loss) income
|
|
(38,315
|
)
|
|
215,866
|
|
|
232,369
|
|
|
—
|
|
|
409,920
|
|
|||||
Debt expense
|
|
(79,578
|
)
|
|
(52,604
|
)
|
|
(11,199
|
)
|
|
62,000
|
|
|
(81,381
|
)
|
|||||
Other income, net
|
|
59,980
|
|
|
658
|
|
|
10,907
|
|
|
(62,000
|
)
|
|
9,545
|
|
|||||
Income tax (benefit) expense
|
|
(14,449
|
)
|
|
81,644
|
|
|
16,017
|
|
|
—
|
|
|
83,212
|
|
|||||
Equity earnings in subsidiaries
|
|
245,066
|
|
|
159,325
|
|
|
—
|
|
|
(404,391
|
)
|
|
—
|
|
|||||
Net income from continuing operations
|
|
201,602
|
|
|
241,601
|
|
|
216,060
|
|
|
(404,391
|
)
|
|
254,872
|
|
|||||
Net income from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net income
|
|
201,602
|
|
|
241,601
|
|
|
216,060
|
|
|
(404,391
|
)
|
|
254,872
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,270
|
)
|
|
(53,270
|
)
|
|||||
Net income attributable to DaVita Inc.
|
|
$
|
201,602
|
|
|
$
|
241,601
|
|
|
$
|
216,060
|
|
|
$
|
(457,661
|
)
|
|
$
|
201,602
|
|
For the three months ended June 30, 2019
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-
Guarantor subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Patient service revenues
|
|
$
|
—
|
|
|
$
|
1,702,387
|
|
|
$
|
1,085,912
|
|
|
$
|
(64,483
|
)
|
|
$
|
2,723,816
|
|
Other revenues
|
|
207,299
|
|
|
150,985
|
|
|
39,395
|
|
|
(278,790
|
)
|
|
118,889
|
|
|||||
Total net revenues
|
|
207,299
|
|
|
1,853,372
|
|
|
1,125,307
|
|
|
(343,273
|
)
|
|
2,842,705
|
|
|||||
Operating expenses and charges
|
|
160,464
|
|
|
1,648,270
|
|
|
915,358
|
|
|
(343,273
|
)
|
|
2,380,819
|
|
|||||
Operating income
|
|
46,835
|
|
|
205,102
|
|
|
209,949
|
|
|
—
|
|
|
461,886
|
|
|||||
Debt expense
|
|
(144,896
|
)
|
|
(50,925
|
)
|
|
(13,052
|
)
|
|
65,047
|
|
|
(143,826
|
)
|
|||||
Other income, net
|
|
102,059
|
|
|
690
|
|
|
10,982
|
|
|
(108,088
|
)
|
|
5,643
|
|
|||||
Income tax expense
|
|
627
|
|
|
59,097
|
|
|
16,214
|
|
|
—
|
|
|
75,938
|
|
|||||
Equity earnings in subsidiaries
|
|
270,180
|
|
|
139,681
|
|
|
—
|
|
|
(409,861
|
)
|
|
—
|
|
|||||
Net income from continuing operations
|
|
273,551
|
|
|
235,451
|
|
|
191,665
|
|
|
(452,902
|
)
|
|
247,765
|
|
|||||
Net income from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
36,351
|
|
|
43,041
|
|
|
79,392
|
|
|||||
Net income
|
|
273,551
|
|
|
235,451
|
|
|
228,016
|
|
|
(409,861
|
)
|
|
327,157
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,606
|
)
|
|
(53,606
|
)
|
|||||
Net income attributable to DaVita Inc.
|
|
$
|
273,551
|
|
|
$
|
235,451
|
|
|
$
|
228,016
|
|
|
$
|
(463,467
|
)
|
|
$
|
273,551
|
|
For the six months ended June 30, 2020
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-Guarantor
subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Net patient service revenues
|
|
$
|
—
|
|
|
$
|
3,445,189
|
|
|
$
|
2,170,949
|
|
|
$
|
(144,660
|
)
|
|
$
|
5,471,478
|
|
Other revenues
|
|
409,279
|
|
|
320,598
|
|
|
72,053
|
|
|
(552,192
|
)
|
|
249,738
|
|
|||||
Total net revenues
|
|
409,279
|
|
|
3,765,787
|
|
|
2,243,002
|
|
|
(696,852
|
)
|
|
5,721,216
|
|
|||||
Operating expenses
|
|
404,962
|
|
|
3,304,142
|
|
|
1,833,668
|
|
|
(696,852
|
)
|
|
4,845,920
|
|
|||||
Operating income
|
|
4,317
|
|
|
461,645
|
|
|
409,334
|
|
|
—
|
|
|
875,296
|
|
|||||
Debt expense
|
|
(170,940
|
)
|
|
(111,697
|
)
|
|
(22,536
|
)
|
|
132,241
|
|
|
(172,932
|
)
|
|||||
Other income, net
|
|
122,433
|
|
|
1,463
|
|
|
13,540
|
|
|
(132,241
|
)
|
|
5,195
|
|
|||||
Income tax (benefit) expense
|
|
(11,025
|
)
|
|
162,619
|
|
|
23,178
|
|
|
—
|
|
|
174,772
|
|
|||||
Equity earnings in subsidiaries
|
|
474,360
|
|
|
258,120
|
|
|
—
|
|
|
(732,480
|
)
|
|
—
|
|
|||||
Net income from continuing operations
|
|
441,195
|
|
|
446,912
|
|
|
377,160
|
|
|
(732,480
|
)
|
|
532,787
|
|
|||||
Net income from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
9,980
|
|
|
—
|
|
|
9,980
|
|
|||||
Net income
|
|
441,195
|
|
|
446,912
|
|
|
387,140
|
|
|
(732,480
|
)
|
|
542,767
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(101,572
|
)
|
|
(101,572
|
)
|
|||||
Net income attributable to DaVita Inc.
|
|
$
|
441,195
|
|
|
$
|
446,912
|
|
|
$
|
387,140
|
|
|
$
|
(834,052
|
)
|
|
$
|
441,195
|
|
For the six months ended June 30, 2019
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-Guarantor
subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Net patient service revenues
|
|
$
|
—
|
|
|
$
|
3,408,980
|
|
|
$
|
2,072,285
|
|
|
$
|
(127,760
|
)
|
|
$
|
5,353,505
|
|
Other revenues
|
|
396,135
|
|
|
297,102
|
|
|
74,304
|
|
|
(535,229
|
)
|
|
232,312
|
|
|||||
Total net revenues
|
|
396,135
|
|
|
3,706,082
|
|
|
2,146,589
|
|
|
(662,989
|
)
|
|
5,585,817
|
|
|||||
Operating expenses
|
|
304,123
|
|
|
3,282,555
|
|
|
1,859,735
|
|
|
(662,989
|
)
|
|
4,783,424
|
|
|||||
Operating income
|
|
92,012
|
|
|
423,527
|
|
|
286,854
|
|
|
—
|
|
|
802,393
|
|
|||||
Debt expense
|
|
(278,491
|
)
|
|
(101,575
|
)
|
|
(25,601
|
)
|
|
130,322
|
|
|
(275,345
|
)
|
|||||
Other income, net
|
|
212,257
|
|
|
1,338
|
|
|
22,042
|
|
|
(223,054
|
)
|
|
12,583
|
|
|||||
Income tax expense
|
|
7,653
|
|
|
103,124
|
|
|
21,907
|
|
|
—
|
|
|
132,684
|
|
|||||
Equity earnings in subsidiaries
|
|
404,715
|
|
|
204,056
|
|
|
—
|
|
|
(608,771
|
)
|
|
—
|
|
|||||
Net income from continuing operations
|
|
422,840
|
|
|
424,222
|
|
|
261,388
|
|
|
(701,503
|
)
|
|
406,947
|
|
|||||
Net income from discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
16,965
|
|
|
92,732
|
|
|
109,697
|
|
|||||
Net income
|
|
422,840
|
|
|
424,222
|
|
|
278,353
|
|
|
(608,771
|
)
|
|
516,644
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93,804
|
)
|
|
(93,804
|
)
|
|||||
Net income attributable to DaVita Inc.
|
|
$
|
422,840
|
|
|
$
|
424,222
|
|
|
$
|
278,353
|
|
|
$
|
(702,575
|
)
|
|
$
|
422,840
|
|
For the three months ended June 30, 2020
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-
Guarantor subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Net income
|
|
$
|
201,602
|
|
|
$
|
241,601
|
|
|
$
|
216,060
|
|
|
$
|
(404,391
|
)
|
|
$
|
254,872
|
|
Other comprehensive (loss) income
|
|
(201
|
)
|
|
—
|
|
|
5,619
|
|
|
—
|
|
|
5,418
|
|
|||||
Total comprehensive income
|
|
201,401
|
|
|
241,601
|
|
|
221,679
|
|
|
(404,391
|
)
|
|
260,290
|
|
|||||
Less: Comprehensive income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,270
|
)
|
|
(53,270
|
)
|
|||||
Comprehensive income attributable to DaVita Inc.
|
|
$
|
201,401
|
|
|
$
|
241,601
|
|
|
$
|
221,679
|
|
|
$
|
(457,661
|
)
|
|
$
|
207,020
|
|
For the three months ended June 30, 2019
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-
Guarantor subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Net income
|
|
$
|
273,551
|
|
|
$
|
235,451
|
|
|
$
|
228,016
|
|
|
$
|
(409,861
|
)
|
|
$
|
327,157
|
|
Other comprehensive income
|
|
1,575
|
|
|
—
|
|
|
12,365
|
|
|
—
|
|
|
13,940
|
|
|||||
Total comprehensive income
|
|
275,126
|
|
|
235,451
|
|
|
240,381
|
|
|
(409,861
|
)
|
|
341,097
|
|
|||||
Less: Comprehensive income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,606
|
)
|
|
(53,606
|
)
|
|||||
Comprehensive income attributable to DaVita Inc.
|
|
$
|
275,126
|
|
|
$
|
235,451
|
|
|
$
|
240,381
|
|
|
$
|
(463,467
|
)
|
|
$
|
287,491
|
|
For the six months ended June 30, 2020
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-Guarantor
subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Net income
|
|
$
|
441,195
|
|
|
$
|
446,912
|
|
|
$
|
387,140
|
|
|
$
|
(732,480
|
)
|
|
$
|
542,767
|
|
Other comprehensive loss
|
|
(11,596
|
)
|
|
—
|
|
|
(76,013
|
)
|
|
—
|
|
|
(87,609
|
)
|
|||||
Total comprehensive income
|
|
429,599
|
|
|
446,912
|
|
|
311,127
|
|
|
(732,480
|
)
|
|
455,158
|
|
|||||
Less: Comprehensive income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(101,572
|
)
|
|
(101,572
|
)
|
|||||
Comprehensive income attributable to DaVita Inc.
|
|
$
|
429,599
|
|
|
$
|
446,912
|
|
|
$
|
311,127
|
|
|
$
|
(834,052
|
)
|
|
$
|
353,586
|
|
For the six months ended June 30, 2019
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-Guarantor
subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Net income
|
|
$
|
422,840
|
|
|
$
|
424,222
|
|
|
$
|
278,353
|
|
|
$
|
(608,771
|
)
|
|
$
|
516,644
|
|
Other comprehensive income (loss)
|
|
2,601
|
|
|
—
|
|
|
(1,288
|
)
|
|
—
|
|
|
1,313
|
|
|||||
Total comprehensive income
|
|
425,441
|
|
|
424,222
|
|
|
277,065
|
|
|
(608,771
|
)
|
|
517,957
|
|
|||||
Less: Comprehensive income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93,804
|
)
|
|
(93,804
|
)
|
|||||
Comprehensive income attributable to DaVita Inc.
|
|
$
|
425,441
|
|
|
$
|
424,222
|
|
|
$
|
277,065
|
|
|
$
|
(702,575
|
)
|
|
$
|
424,153
|
|
As of June 30, 2020
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-
Guarantor subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Cash and cash equivalents
|
|
$
|
2,719,413
|
|
|
$
|
247
|
|
|
$
|
209,250
|
|
|
$
|
—
|
|
|
$
|
2,928,910
|
|
Restricted cash and equivalents
|
|
14,543
|
|
|
—
|
|
|
92,266
|
|
|
—
|
|
|
106,809
|
|
|||||
Accounts receivable, net
|
|
—
|
|
|
1,170,426
|
|
|
601,833
|
|
|
—
|
|
|
1,772,259
|
|
|||||
Other current assets
|
|
343,732
|
|
|
515,207
|
|
|
122,656
|
|
|
(9,743
|
)
|
|
971,852
|
|
|||||
Total current assets
|
|
3,077,688
|
|
|
1,685,880
|
|
|
1,026,005
|
|
|
(9,743
|
)
|
|
5,779,830
|
|
|||||
Property and equipment, net
|
|
568,053
|
|
|
1,550,132
|
|
|
1,307,385
|
|
|
(7,652
|
)
|
|
3,417,918
|
|
|||||
Operating lease right-of-use assets
|
|
105,783
|
|
|
1,620,214
|
|
|
1,118,064
|
|
|
(17,441
|
)
|
|
2,826,620
|
|
|||||
Intangible assets, net
|
|
317
|
|
|
26,004
|
|
|
87,058
|
|
|
—
|
|
|
113,379
|
|
|||||
Investments in and advances to affiliates, net
|
|
11,216,535
|
|
|
8,467,107
|
|
|
3,203,408
|
|
|
(22,887,050
|
)
|
|
—
|
|
|||||
Other long-term assets and investments
|
|
78,135
|
|
|
130,986
|
|
|
189,356
|
|
|
(21,739
|
)
|
|
376,738
|
|
|||||
Goodwill
|
|
—
|
|
|
4,812,208
|
|
|
1,978,398
|
|
|
—
|
|
|
6,790,606
|
|
|||||
Total assets
|
|
$
|
15,046,511
|
|
|
$
|
18,292,531
|
|
|
$
|
8,909,674
|
|
|
$
|
(22,943,625
|
)
|
|
$
|
19,305,091
|
|
Current liabilities
|
|
$
|
2,254,858
|
|
|
$
|
1,345,482
|
|
|
$
|
670,742
|
|
|
$
|
3,481
|
|
|
$
|
4,274,563
|
|
Intercompany liabilities, net
|
|
2,118,906
|
|
|
3,203,408
|
|
|
2,645,387
|
|
|
(7,967,701
|
)
|
|
—
|
|
|||||
Long-term operating leases liabilities
|
|
131,709
|
|
|
1,530,117
|
|
|
1,064,328
|
|
|
(16,585
|
)
|
|
2,709,569
|
|
|||||
Long-term debt and other long-term liabilities
|
|
7,671,918
|
|
|
798,494
|
|
|
318,264
|
|
|
(43,471
|
)
|
|
8,745,205
|
|
|||||
Noncontrolling interests subject to put provisions
|
|
715,205
|
|
|
—
|
|
|
—
|
|
|
526,732
|
|
|
1,241,937
|
|
|||||
Total DaVita Inc. shareholders' equity
|
|
2,153,915
|
|
|
11,415,030
|
|
|
3,504,319
|
|
|
(14,919,349
|
)
|
|
2,153,915
|
|
|||||
Noncontrolling interests not subject to put
provisions |
|
—
|
|
|
—
|
|
|
706,634
|
|
|
(526,732
|
)
|
|
179,902
|
|
|||||
Total equity
|
|
2,153,915
|
|
|
11,415,030
|
|
|
4,210,953
|
|
|
(15,446,081
|
)
|
|
2,333,817
|
|
|||||
Total liabilities and equity
|
|
$
|
15,046,511
|
|
|
$
|
18,292,531
|
|
|
$
|
8,909,674
|
|
|
$
|
(22,943,625
|
)
|
|
$
|
19,305,091
|
|
As of December 31, 2019
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-
Guarantor subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Cash and cash equivalents
|
|
$
|
758,241
|
|
|
$
|
532
|
|
|
$
|
343,599
|
|
|
$
|
—
|
|
|
$
|
1,102,372
|
|
Restricted cash and equivalents
|
|
14,499
|
|
|
—
|
|
|
91,847
|
|
|
—
|
|
|
106,346
|
|
|||||
Accounts receivable, net
|
|
—
|
|
|
1,189,301
|
|
|
606,297
|
|
|
—
|
|
|
1,795,598
|
|
|||||
Other current assets
|
|
76,787
|
|
|
548,553
|
|
|
102,410
|
|
|
(41,896
|
)
|
|
685,854
|
|
|||||
Total current assets
|
|
849,527
|
|
|
1,738,386
|
|
|
1,144,153
|
|
|
(41,896
|
)
|
|
3,690,170
|
|
|||||
Property and equipment, net
|
|
543,932
|
|
|
1,589,417
|
|
|
1,344,543
|
|
|
(4,508
|
)
|
|
3,473,384
|
|
|||||
Operating lease right-of-use assets
|
|
109,415
|
|
|
1,656,145
|
|
|
1,084,552
|
|
|
(20,065
|
)
|
|
2,830,047
|
|
|||||
Intangible assets, net
|
|
362
|
|
|
31,569
|
|
|
103,753
|
|
|
—
|
|
|
135,684
|
|
|||||
Investments in and advances to affiliates, net
|
|
10,813,991
|
|
|
7,611,402
|
|
|
3,051,208
|
|
|
(21,476,601
|
)
|
|
—
|
|
|||||
Other long-term assets and investments
|
|
102,779
|
|
|
133,698
|
|
|
176,315
|
|
|
(18,318
|
)
|
|
394,474
|
|
|||||
Goodwill
|
|
—
|
|
|
4,812,972
|
|
|
1,974,663
|
|
|
—
|
|
|
6,787,635
|
|
|||||
Total assets
|
|
$
|
12,420,006
|
|
|
$
|
17,573,589
|
|
|
$
|
8,879,187
|
|
|
$
|
(21,561,388
|
)
|
|
$
|
17,311,394
|
|
Current liabilities
|
|
$
|
379,286
|
|
|
$
|
1,327,378
|
|
|
$
|
666,470
|
|
|
$
|
(1,036
|
)
|
|
$
|
2,372,098
|
|
Intercompany payables
|
|
1,381,863
|
|
|
3,051,208
|
|
|
2,615,151
|
|
|
(7,048,222
|
)
|
|
—
|
|
|||||
Long-term operating lease liabilities
|
|
136,123
|
|
|
1,567,776
|
|
|
1,039,145
|
|
|
(19,244
|
)
|
|
2,723,800
|
|
|||||
Long-term debt and other long-term liabilities
|
|
7,741,725
|
|
|
674,558
|
|
|
364,102
|
|
|
(64,507
|
)
|
|
8,715,878
|
|
|||||
Noncontrolling interests subject to put provisions
|
|
647,600
|
|
|
—
|
|
|
—
|
|
|
532,776
|
|
|
1,180,376
|
|
|||||
Total DaVita Inc. shareholders' equity
|
|
2,133,409
|
|
|
10,952,669
|
|
|
3,475,710
|
|
|
(14,428,379
|
)
|
|
2,133,409
|
|
|||||
Noncontrolling interests not subject to put
provisions |
|
—
|
|
|
—
|
|
|
718,609
|
|
|
(532,776
|
)
|
|
185,833
|
|
|||||
Total equity
|
|
2,133,409
|
|
|
10,952,669
|
|
|
4,194,319
|
|
|
(14,961,155
|
)
|
|
2,319,242
|
|
|||||
Total liabilities and equity
|
|
$
|
12,420,006
|
|
|
$
|
17,573,589
|
|
|
$
|
8,879,187
|
|
|
$
|
(21,561,388
|
)
|
|
$
|
17,311,394
|
|
For the six months ended June 30, 2020
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-
Guarantor subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Cash flows provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
$
|
441,195
|
|
|
$
|
446,912
|
|
|
$
|
387,140
|
|
|
$
|
(732,480
|
)
|
|
$
|
542,767
|
|
Changes in operating assets and liabilities and non-cash
items included in net income |
|
(357,763
|
)
|
|
87,552
|
|
|
6,467
|
|
|
732,480
|
|
|
468,736
|
|
|||||
Net cash provided by operating activities
|
|
83,432
|
|
|
534,464
|
|
|
393,607
|
|
|
—
|
|
|
1,011,503
|
|
|||||
Cash flows used in investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Additions of property and equipment
|
|
(89,785
|
)
|
|
(93,331
|
)
|
|
(108,551
|
)
|
|
—
|
|
|
(291,667
|
)
|
|||||
Acquisitions
|
|
—
|
|
|
(984
|
)
|
|
(43,283
|
)
|
|
—
|
|
|
(44,267
|
)
|
|||||
Proceeds from asset and business sales
|
|
2
|
|
|
2,991
|
|
|
67,622
|
|
|
—
|
|
|
70,615
|
|
|||||
(Purchases) proceeds from investment sales and other items, net
|
|
(134,674
|
)
|
|
661
|
|
|
(7,807
|
)
|
|
—
|
|
|
(141,820
|
)
|
|||||
Net cash used in investing activities
|
|
(224,457
|
)
|
|
(90,663
|
)
|
|
(92,019
|
)
|
|
—
|
|
|
(407,139
|
)
|
|||||
Cash flows provided by (used in) financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt and related financing costs, net
|
|
1,694,037
|
|
|
(5,468
|
)
|
|
(20,339
|
)
|
|
—
|
|
|
1,668,230
|
|
|||||
Intercompany borrowings (payments)
|
|
738,213
|
|
|
(439,037
|
)
|
|
(299,176
|
)
|
|
—
|
|
|
—
|
|
|||||
Other items
|
|
(330,009
|
)
|
|
419
|
|
|
(99,067
|
)
|
|
—
|
|
|
(428,657
|
)
|
|||||
Net cash provided by (used in) financing activities
|
|
2,102,241
|
|
|
(444,086
|
)
|
|
(418,582
|
)
|
|
—
|
|
|
1,239,573
|
|
|||||
Effect of exchange rate changes on cash, cash
equivalents and restricted cash |
|
—
|
|
|
—
|
|
|
(16,936
|
)
|
|
—
|
|
|
(16,936
|
)
|
|||||
Net increase (decrease) in cash, cash equivalents and
restricted cash |
|
1,961,216
|
|
|
(285
|
)
|
|
(133,930
|
)
|
|
—
|
|
|
1,827,001
|
|
|||||
Cash, cash equivalents and restricted cash of continuing
operations at beginning of the year |
|
772,740
|
|
|
532
|
|
|
435,446
|
|
|
—
|
|
|
1,208,718
|
|
|||||
Cash, cash equivalents and restricted cash of continuing
operations at end of the period |
|
$
|
2,733,956
|
|
|
$
|
247
|
|
|
$
|
301,516
|
|
|
$
|
—
|
|
|
$
|
3,035,719
|
|
For the six months ended June 30, 2019
|
|
DaVita Inc.
|
|
Guarantor
subsidiaries |
|
Non-
Guarantor subsidiaries |
|
Consolidating
adjustments |
|
Consolidated
total |
||||||||||
Cash flows provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
$
|
422,840
|
|
|
$
|
424,222
|
|
|
$
|
278,353
|
|
|
$
|
(608,771
|
)
|
|
$
|
516,644
|
|
Changes in operating assets and liabilities and non-cash
items included in net income |
|
(292,988
|
)
|
|
(198,192
|
)
|
|
116,880
|
|
|
608,771
|
|
|
234,471
|
|
|||||
Net cash provided by operating activities
|
|
129,852
|
|
|
226,030
|
|
|
395,233
|
|
|
—
|
|
|
751,115
|
|
|||||
Cash flows provided by (used in) investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Additions of property and equipment
|
|
(63,037
|
)
|
|
(148,050
|
)
|
|
(162,831
|
)
|
|
—
|
|
|
(373,918
|
)
|
|||||
Acquisitions
|
|
—
|
|
|
(8,974
|
)
|
|
(56,996
|
)
|
|
—
|
|
|
(65,970
|
)
|
|||||
Proceeds from asset and business sales
|
|
3,824,509
|
|
|
1,194
|
|
|
25,678
|
|
|
—
|
|
|
3,851,381
|
|
|||||
Proceeds (purchases) from investment sales and other items, net
|
|
729
|
|
|
(6,492
|
)
|
|
(3,038
|
)
|
|
—
|
|
|
(8,801
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
3,762,201
|
|
|
(162,322
|
)
|
|
(197,187
|
)
|
|
—
|
|
|
3,402,692
|
|
|||||
Cash flows provided by financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt and related financing costs, net
|
|
(1,152,510
|
)
|
|
(6,611
|
)
|
|
(4,988
|
)
|
|
—
|
|
|
(1,164,109
|
)
|
|||||
Intercompany borrowings (payments)
|
|
656,704
|
|
|
(58,208
|
)
|
|
(598,496
|
)
|
|
—
|
|
|
—
|
|
|||||
Other items
|
|
(82,011
|
)
|
|
86
|
|
|
(64,519
|
)
|
|
—
|
|
|
(146,444
|
)
|
|||||
Net cash used in financing activities
|
|
(577,817
|
)
|
|
(64,733
|
)
|
|
(668,003
|
)
|
|
—
|
|
|
(1,310,553
|
)
|
|||||
Effect of exchange rate changes on cash, cash
equivalents and restricted cash |
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
—
|
|
|
(77
|
)
|
|||||
Net increase (decrease) in cash, cash equivalents and
restricted cash |
|
3,314,236
|
|
|
(1,025
|
)
|
|
(470,034
|
)
|
|
—
|
|
|
2,843,177
|
|
|||||
Less: Net increase in cash, cash equivalents and
restricted cash from discontinued operations |
|
—
|
|
|
—
|
|
|
(423,813
|
)
|
|
—
|
|
|
(423,813
|
)
|
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash from continuing operations
|
|
3,314,236
|
|
|
(1,025
|
)
|
|
(46,221
|
)
|
|
—
|
|
|
3,266,990
|
|
|||||
Cash, cash equivalents and restricted cash of continuing
operations at beginning of the year |
|
61,658
|
|
|
13,280
|
|
|
340,482
|
|
|
—
|
|
|
415,420
|
|
|||||
Cash, cash equivalents and restricted cash of continuing
operations at end of the period |
|
$
|
3,375,894
|
|
|
$
|
12,255
|
|
|
$
|
294,261
|
|
|
$
|
—
|
|
|
$
|
3,682,410
|
|
•
|
the continuing impact of the dynamic and rapidly evolving COVID-19 pandemic, including, without limitation, on our patients, teammates, physician partners, suppliers, business, operations, reputation, financial condition and results of operations, the government’s response to the COVID-19 pandemic, and the consequences of an extended economic downturn resulting from the impacts of COVID-19, any of which may also have the effect of heightening many of the other risks and uncertainties discussed below;
|
•
|
our need, ability and willingness to utilize any funds received under the CARES Act or subsequent legislation, and the consequences of our decisions with respect thereto;
|
•
|
the concentration of profits generated by higher-paying commercial payor plans for which there is continued downward pressure on average realized payment rates, and a reduction in the number or percentage of our patients under such plans, including without limitation as a result of restrictions or prohibitions on the use and/or availability of charitable premium assistance, which may result in the loss of revenues or patients, or our making incorrect assumptions about how our patients will respond to any change in financial assistance from charitable organizations;
|
•
|
noncompliance by us or our business associates with any privacy or security laws or any security breach by us or a third party involving the misappropriation, loss or other unauthorized use or disclosure of confidential information;
|
•
|
the extent to which the ongoing implementation of healthcare reform, or changes in or new legislation, regulations or guidance, enforcement thereof or related litigation, result in a reduction in coverage or reimbursement rates for our services, a reduction in the number of patients enrolled in higher-paying commercial plans or that are enrolled in or select Medicare Advantage plans, or other material impacts to our business; or our making incorrect assumptions about how our patients will respond to any such developments;
|
•
|
a reduction in government payment rates under the Medicare End Stage Renal Disease program or other government-based programs and the impact of the Medicare Advantage benchmark structure;
|
•
|
risks arising from potential and proposed federal and/or state legislation, regulation, ballot, executive action or other initiatives, including such initiatives related to healthcare and/or labor matters, such as Proposition 23 in California;
|
•
|
the impact of the upcoming election cycle, the political environment and related developments on the current healthcare marketplace and on our business, including with respect to the future of the Affordable Care Act, the exchanges and many other core aspects of the current healthcare marketplace;
|
•
|
our ability to successfully implement our strategy with respect to home-based dialysis, including maintaining our existing business and further developing our capabilities in a complex and highly regulated environment;
|
•
|
changes in pharmaceutical practice patterns, reimbursement and payment policies and processes, or pharmaceutical pricing, including with respect to calcimimetics;
|
•
|
legal and compliance risks, such as our continued compliance with complex government regulations;
|
•
|
continued increased competition from dialysis providers and others, and other potential marketplace changes;
|
•
|
our ability to maintain contracts with physician medical directors, changing affiliation models for physicians, and the emergence of new models of care introduced by the government or private sector that may erode our patient base and reimbursement rates, such as accountable care organizations, independent practice associations and integrated delivery systems;
|
•
|
our ability to complete acquisitions, mergers or dispositions that we might announce or be considering, on terms favorable to us or at all, or to integrate and successfully operate any business we may acquire or have acquired, or to successfully expand our operations and services in markets outside the United States, or to businesses outside of dialysis;
|
•
|
uncertainties related to potential payments and/or adjustments under certain provisions of the equity purchase agreement for the sale of our DaVita Medical Group (DMG) business, such as post-closing adjustments and indemnification obligations;
|
•
|
the variability of our cash flows, including without limitation any extended billing or collections cycles; the risk that we may not be able to generate or access sufficient cash in the future to service our indebtedness or to fund our other liquidity needs; and the risk that we may not be able to refinance our indebtedness as it becomes due, on terms favorable to us or at all;
|
•
|
factors that may impact our ability to repurchase stock under our stock repurchase program and the timing of any such stock repurchases;
|
•
|
risks arising from the use of accounting estimates, judgments and interpretations in our financial statements;
|
•
|
impairment of our goodwill, investments or other assets; and
|
•
|
uncertainties associated with the other risk factors set forth in DaVita Inc.'s Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and this Quarterly Report on Form 10-Q, and the risks and uncertainties discussed in any subsequent reports that DaVita has filed or furnished with the Securities and Exchange Commission from time to time.
|
|
Three months ended
|
|
Q2 2020 vs. Q1 2020
|
|
Q2 2020 vs. Q2 2019
|
||||||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dialysis
|
$
|
2,675
|
|
|
$
|
2,617
|
|
|
$
|
2,637
|
|
|
$
|
58
|
|
|
2.2
|
%
|
|
$
|
38
|
|
|
1.4
|
%
|
Other - ancillary services
|
245
|
|
|
261
|
|
|
239
|
|
|
(16
|
)
|
|
(6.1
|
)%
|
|
6
|
|
|
2.5
|
%
|
|||||
Elimination of intersegment revenues
|
(40
|
)
|
|
(36
|
)
|
|
(34
|
)
|
|
(4
|
)
|
|
(11.1
|
)%
|
|
(6
|
)
|
|
(17.6
|
)%
|
|||||
Total consolidated revenues
|
$
|
2,880
|
|
|
$
|
2,841
|
|
|
$
|
2,843
|
|
|
$
|
39
|
|
|
1.4
|
%
|
|
$
|
37
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dialysis
|
$
|
523
|
|
|
$
|
492
|
|
|
$
|
499
|
|
|
$
|
31
|
|
|
6.3
|
%
|
|
$
|
24
|
|
|
4.8
|
%
|
Other - ancillary services
|
(40
|
)
|
|
(3
|
)
|
|
(15
|
)
|
|
(37
|
)
|
|
(1,233.3
|
)%
|
|
(25
|
)
|
|
(166.7
|
)%
|
|||||
Corporate administrative support
|
(73
|
)
|
|
(24
|
)
|
|
(22
|
)
|
|
(49
|
)
|
|
(204.2
|
)%
|
|
(51
|
)
|
|
(231.8
|
)%
|
|||||
Operating income
|
$
|
410
|
|
|
$
|
465
|
|
|
$
|
462
|
|
|
$
|
(55
|
)
|
|
(11.8
|
)%
|
|
$
|
(52
|
)
|
|
(11.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted operating income (loss)(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dialysis
|
$
|
523
|
|
|
$
|
492
|
|
|
$
|
499
|
|
|
$
|
31
|
|
|
6.3
|
%
|
|
$
|
24
|
|
|
4.8
|
%
|
Other - ancillary services
|
(23
|
)
|
|
(3
|
)
|
|
(15
|
)
|
|
(20
|
)
|
|
(666.7
|
)%
|
|
(8
|
)
|
|
(53.3
|
)%
|
|||||
Corporate administrative support
|
(38
|
)
|
|
(24
|
)
|
|
(22
|
)
|
|
(14
|
)
|
|
(58.3
|
)%
|
|
(16
|
)
|
|
(72.7
|
)%
|
|||||
Adjusted operating income
|
$
|
461
|
|
|
$
|
465
|
|
|
$
|
462
|
|
|
$
|
(4
|
)
|
|
(0.9
|
)%
|
|
$
|
(1
|
)
|
|
(0.2
|
)%
|
|
(1)
|
For a reconciliation of adjusted operating income (loss) by reportable segment, see "Reconciliations of Non-GAAP measures" section below.
|
|
Six months ended
|
|
YTD Q2 2020 vs. YTD Q2 2019
|
|||||||||||
|
June 30, 2020
|
|
June 30, 2019
|
|
Amount
|
|
Percent
|
|||||||
|
(dollars in millions)
|
|||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
U.S. dialysis
|
$
|
5,292
|
|
|
$
|
5,185
|
|
|
$
|
107
|
|
|
2.1
|
%
|
Other - ancillary services
|
506
|
|
|
469
|
|
|
37
|
|
|
7.9
|
%
|
|||
Elimination of intersegment revenues
|
(76
|
)
|
|
(68
|
)
|
|
(8
|
)
|
|
(11.8
|
)%
|
|||
Total consolidated revenues
|
$
|
5,721
|
|
|
$
|
5,586
|
|
|
$
|
135
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Operating income (loss):
|
|
|
|
|
|
|
|
|||||||
U.S. dialysis
|
$
|
1,014
|
|
|
$
|
916
|
|
|
$
|
98
|
|
|
10.7
|
%
|
Other - ancillary services
|
(42
|
)
|
|
(73
|
)
|
|
31
|
|
|
42.5
|
%
|
|||
Corporate administrative support
|
(97
|
)
|
|
(41
|
)
|
|
(56
|
)
|
|
(136.6
|
)%
|
|||
Operating income
|
$
|
875
|
|
|
$
|
802
|
|
|
$
|
73
|
|
|
9.1
|
%
|
|
|
|
|
|
|
|
|
|||||||
Adjusted operating income (loss)(1):
|
|
|
|
|
|
|
|
|||||||
U.S. dialysis
|
$
|
1,014
|
|
|
$
|
916
|
|
|
$
|
98
|
|
|
10.7
|
%
|
Other - ancillary services
|
(26
|
)
|
|
(32
|
)
|
|
6
|
|
|
18.8
|
%
|
|||
Corporate administrative support
|
(62
|
)
|
|
(41
|
)
|
|
(21
|
)
|
|
(51.2
|
)%
|
|||
Adjusted operating income
|
$
|
927
|
|
|
$
|
843
|
|
|
$
|
84
|
|
|
10.0
|
%
|
|
(1)
|
For a reconciliation of adjusted operating income (loss) by reportable segment, see "Reconciliations of Non-GAAP measures" section below.
|
|
Three months ended
|
|
Q2 2020 vs. Q1 2020
|
|
Q2 2020 vs. Q2 2019
|
||||||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
|
(dollars in millions, except per treatment data)
|
||||||||||||||||||||||||
Total revenues
|
$
|
2,675
|
|
|
$
|
2,617
|
|
|
$
|
2,637
|
|
|
$
|
58
|
|
|
2.2
|
%
|
|
$
|
38
|
|
|
1.4
|
%
|
Dialysis treatments
|
7,570,908
|
|
|
7,513,321
|
|
|
7,520,587
|
|
|
57,587
|
|
|
0.8
|
%
|
|
50,321
|
|
|
0.7
|
%
|
|||||
Average treatments per day
|
97,063
|
|
|
96,821
|
|
|
96,418
|
|
|
242
|
|
|
0.2
|
%
|
|
645
|
|
|
0.7
|
%
|
|||||
Treatment days
|
78.0
|
|
|
77.6
|
|
|
78.0
|
|
|
0.4
|
|
|
0.5
|
%
|
|
—
|
|
|
—
|
%
|
|||||
Average patient service
revenue per treatment |
$
|
352.26
|
|
|
$
|
347.54
|
|
|
$
|
349.97
|
|
|
$
|
4.72
|
|
|
1.4
|
%
|
|
$
|
2.29
|
|
|
0.7
|
%
|
Normalized non-acquired
treatment growth(1)
|
1.6
|
%
|
|
2.3
|
%
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
(1)
|
Normalized non-acquired treatment growth reflects year over year growth in treatment volume, adjusted to exclude acquisitions and other similar transactions, further adjusted to normalize for the number and mix of treatment days in a given quarter versus the prior year quarter.
|
|
Six months ended June 30,
|
|
YTD Q2 2020 vs. YTD Q2 2019
|
|||||||||||
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
|
(dollars in millions, except per treatment data)
|
|||||||||||||
Total revenues
|
$
|
5,292
|
|
|
$
|
5,185
|
|
|
$
|
107
|
|
|
2.1
|
%
|
Dialysis treatments
|
15,084,229
|
|
|
14,818,046
|
|
|
266,183
|
|
|
1.8
|
%
|
|||
Average treatments per day
|
96,942
|
|
|
95,848
|
|
|
1,094
|
|
|
1.1
|
%
|
|||
Treatment days
|
155.6
|
|
|
154.6
|
|
|
1.0
|
|
|
0.6
|
%
|
|||
Average patient service revenue per treatment
|
$
|
349.91
|
|
|
$
|
349.18
|
|
|
$
|
0.73
|
|
|
0.2
|
%
|
|
Three months ended
|
|
Q2 2020 vs. Q1 2020
|
|
Q2 2020 vs. Q2 2019
|
||||||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
|
(dollars in millions, except per treatment data)
|
||||||||||||||||||||||||
Patient care costs
|
$
|
1,802
|
|
|
$
|
1,783
|
|
|
$
|
1,785
|
|
|
$
|
19
|
|
|
1.1
|
%
|
|
$
|
17
|
|
|
1.0
|
%
|
General and administrative
|
210
|
|
|
204
|
|
|
216
|
|
|
6
|
|
|
2.9
|
%
|
|
(6
|
)
|
|
(2.8
|
)%
|
|||||
Depreciation and amortization
|
148
|
|
|
146
|
|
|
145
|
|
|
2
|
|
|
1.4
|
%
|
|
3
|
|
|
2.1
|
%
|
|||||
Equity investment income
|
(8
|
)
|
|
(9
|
)
|
|
(7
|
)
|
|
1
|
|
|
11.1
|
%
|
|
(1
|
)
|
|
14.3
|
%
|
|||||
Total operating expenses and charges
|
$
|
2,152
|
|
|
$
|
2,125
|
|
|
$
|
2,139
|
|
|
$
|
27
|
|
|
1.3
|
%
|
|
$
|
13
|
|
|
0.6
|
%
|
Patient care costs per treatment
|
$
|
238.02
|
|
|
$
|
237.35
|
|
|
$
|
237.34
|
|
|
$
|
0.67
|
|
|
0.3
|
%
|
|
$
|
0.68
|
|
|
0.3
|
%
|
|
Six months ended June 30,
|
|
YTD Q2 2020 vs. YTD Q2 2019
|
|||||||||||
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
|
(dollars in millions, except per treatment data)
|
|||||||||||||
Patient care costs
|
$
|
3,585
|
|
|
$
|
3,582
|
|
|
$
|
3
|
|
|
0.1
|
%
|
General and administrative
|
414
|
|
|
413
|
|
|
1
|
|
|
0.2
|
%
|
|||
Depreciation and amortization
|
295
|
|
|
285
|
|
|
10
|
|
|
3.5
|
%
|
|||
Equity investment income
|
(17
|
)
|
|
(12
|
)
|
|
(5
|
)
|
|
(41.7
|
)%
|
|||
Total operating expenses and charges
|
$
|
4,277
|
|
|
$
|
4,269
|
|
|
$
|
8
|
|
|
0.2
|
%
|
Patient care costs per treatment
|
$
|
237.69
|
|
|
$
|
241.75
|
|
|
$
|
(4.06
|
)
|
|
(1.7
|
)%
|
|
Three months ended
|
|
Q2 2020 vs. Q1 2020
|
|
Q2 2020 vs. Q2 2019
|
||||||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||
Operating income
|
$
|
523
|
|
|
$
|
492
|
|
|
$
|
499
|
|
|
$
|
31
|
|
|
6.3
|
%
|
|
$
|
24
|
|
|
4.8
|
%
|
|
Six months ended June 30,
|
|
YTD Q2 2020 vs. YTD Q2 2019
|
|||||||||||
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
|
(dollars in millions)
|
|||||||||||||
Operating income
|
$
|
1,014
|
|
|
$
|
916
|
|
|
$
|
98
|
|
|
10.7
|
%
|
|
Three months ended
|
|
Q2 2020 vs. Q1 2020
|
|
Q2 2020 vs. Q2 2019
|
||||||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. ancillary
|
$
|
116
|
|
|
$
|
124
|
|
|
$
|
114
|
|
|
$
|
(8
|
)
|
|
(6.5
|
)%
|
|
$
|
2
|
|
|
1.8
|
%
|
International
|
129
|
|
|
137
|
|
|
125
|
|
|
(8
|
)
|
|
(5.8
|
)%
|
|
4
|
|
|
3.2
|
%
|
|||||
Total ancillary services revenues
|
$
|
245
|
|
|
$
|
261
|
|
|
$
|
239
|
|
|
$
|
(16
|
)
|
|
(6.1
|
)%
|
|
$
|
6
|
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating (loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. ancillary
|
$
|
(41
|
)
|
|
$
|
(19
|
)
|
|
$
|
(16
|
)
|
|
$
|
(22
|
)
|
|
(115.8
|
)%
|
|
$
|
(25
|
)
|
|
(156.3
|
)%
|
International(1)
|
1
|
|
|
17
|
|
|
1
|
|
|
(16
|
)
|
|
(94.1
|
)%
|
|
—
|
|
|
—
|
%
|
|||||
Total ancillary services operating loss
|
$
|
(40
|
)
|
|
$
|
(3
|
)
|
|
$
|
(15
|
)
|
|
$
|
(37
|
)
|
|
(1,233.3
|
)%
|
|
$
|
(25
|
)
|
|
(166.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted operating (loss) income(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. ancillary
|
$
|
(25
|
)
|
|
$
|
(19
|
)
|
|
$
|
(16
|
)
|
|
$
|
(6
|
)
|
|
(31.6
|
)%
|
|
$
|
(9
|
)
|
|
(56.3
|
)%
|
International(1)
|
1
|
|
|
17
|
|
|
1
|
|
|
(16
|
)
|
|
(94.1
|
)%
|
|
—
|
|
|
—
|
%
|
|||||
Total ancillary services adjusted operating loss
|
$
|
(23
|
)
|
|
$
|
(3
|
)
|
|
$
|
(15
|
)
|
|
$
|
(20
|
)
|
|
(666.7
|
)%
|
|
$
|
(8
|
)
|
|
(53.3
|
)%
|
|
(1)
|
The reported operating income (loss) and adjusted operating income (loss) for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019, include approximately $(4) million, $10 million and $(0.5) million, respectively, of foreign currency (loss) gain.
|
(2)
|
For a reconciliation of adjusted operating income (loss) by reportable segment, see the "Reconciliations of non-GAAP measures" section below.
|
|
Six months ended June 30,
|
|
YTD Q2 2020 vs. YTD Q2 2019
|
|||||||||||
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
|
(dollars in millions)
|
|||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||||
U.S. ancillary
|
$
|
240
|
|
|
$
|
224
|
|
|
$
|
16
|
|
|
7.1
|
%
|
International
|
265
|
|
|
245
|
|
|
20
|
|
|
8.2
|
%
|
|||
Total ancillary services revenues
|
$
|
506
|
|
|
$
|
469
|
|
|
$
|
37
|
|
|
7.9
|
%
|
|
|
|
|
|
|
|
|
|||||||
Operating (loss) income:
|
|
|
|
|
|
|
|
|||||||
U.S. ancillary
|
$
|
(60
|
)
|
|
$
|
(31
|
)
|
|
$
|
(29
|
)
|
|
(93.5
|
)%
|
International(1)
|
18
|
|
|
(42
|
)
|
|
60
|
|
|
142.9
|
%
|
|||
Total ancillary services operating (loss) income
|
$
|
(42
|
)
|
|
$
|
(73
|
)
|
|
$
|
31
|
|
|
42.5
|
%
|
|
|
|
|
|
|
|
|
|||||||
Adjusted operating (loss) income(2):
|
|
|
|
|
|
|
|
|||||||
U.S. ancillary
|
$
|
(44
|
)
|
|
$
|
(31
|
)
|
|
$
|
(13
|
)
|
|
(41.9
|
)%
|
International(1)
|
18
|
|
|
(1
|
)
|
|
19
|
|
|
1,900.0
|
%
|
|||
Total ancillary services adjusted operating loss
|
$
|
(26
|
)
|
|
$
|
(32
|
)
|
|
$
|
6
|
|
|
18.8
|
%
|
|
(1)
|
The reported operating income (loss) and adjusted operating income (loss) for the six months ended June 30, 2020 and June 30, 2019, include approximately $6 million and $(1) million, respectively, of foreign currency gain (loss).
|
(2)
|
For a reconciliation of adjusted operating income (loss) by reportable segment, see the "Reconciliations of non-GAAP measures" section below.
|
|
Three months ended
|
|
Q2 2020 vs. Q1 2020
|
|
Q2 2020 vs. Q2 2019
|
||||||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||
Corporate administrative support
|
$
|
(73
|
)
|
|
$
|
(24
|
)
|
|
$
|
(22
|
)
|
|
$
|
(49
|
)
|
|
(204.2
|
)%
|
|
$
|
(51
|
)
|
|
(231.8
|
)%
|
Adjusted corporate administrative support(1)
|
$
|
(38
|
)
|
|
$
|
(24
|
)
|
|
$
|
(22
|
)
|
|
$
|
(14
|
)
|
|
(58.3
|
)%
|
|
$
|
(16
|
)
|
|
(72.7
|
)%
|
|
Six months ended
|
|
YTD Q2 2020 vs. YTD Q2 2019
|
|||||||||||
|
June 30, 2020
|
|
June 30, 2019
|
|
Amount
|
|
Percent
|
|||||||
|
(dollars in millions)
|
|||||||||||||
Corporate administrative support
|
$
|
(97
|
)
|
|
$
|
(41
|
)
|
|
$
|
(56
|
)
|
|
(136.6
|
)%
|
Adjusted corporate administrative support(1)
|
$
|
(62
|
)
|
|
$
|
(41
|
)
|
|
$
|
(21
|
)
|
|
(51.2
|
)%
|
|
(1)
|
For a reconciliation of adjusted operating income (loss) by reportable segment, see the "Reconciliations of non-GAAP measures" section below.
|
|
Three months ended
|
|
Q2 2020 vs. Q1 2020
|
|
Q2 2020 vs. Q2 2019
|
||||||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||
Debt expense
|
$
|
(81
|
)
|
|
$
|
(89
|
)
|
|
$
|
(132
|
)
|
|
$
|
(8
|
)
|
|
(9.0
|
)%
|
|
$
|
(51
|
)
|
|
(38.6
|
)%
|
Debt prepayment and refinancing charges
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
(12
|
)
|
|
$
|
(3
|
)
|
|
100.0
|
%
|
|
$
|
(12
|
)
|
|
(100.0
|
)%
|
Other income (loss)
|
$
|
10
|
|
|
$
|
(4
|
)
|
|
$
|
6
|
|
|
$
|
14
|
|
|
350.0
|
%
|
|
$
|
4
|
|
|
66.7
|
%
|
Effective income tax rate
|
24.6
|
%
|
|
24.8
|
%
|
|
23.5
|
%
|
|
|
|
(0.2
|
)%
|
|
|
|
1.1
|
%
|
|||||||
Effective income tax rate from continuing
operations attributable to DaVita Inc.(1) |
29.2
|
%
|
|
28.5
|
%
|
|
28.0
|
%
|
|
|
|
0.7
|
%
|
|
|
|
1.2
|
%
|
|||||||
Net income attributable to noncontrolling
interests |
$
|
(53
|
)
|
|
$
|
(48
|
)
|
|
$
|
(54
|
)
|
|
$
|
5
|
|
|
10.4
|
%
|
|
$
|
(1
|
)
|
|
(1.9
|
)%
|
|
Six months ended June 30,
|
|
YTD Q2 2020 vs. YTD Q2 2019
|
|||||||||||
|
2020
|
|
2019
|
|
Amount
|
|
Percent
|
|||||||
|
(dollars in millions)
|
|||||||||||||
Debt expense
|
$
|
(170
|
)
|
|
$
|
(263
|
)
|
|
$
|
(93
|
)
|
|
(35.4
|
)%
|
Debt prepayment and refinancing charges
|
$
|
(3
|
)
|
|
$
|
(12
|
)
|
|
$
|
(9
|
)
|
|
(75.0
|
)%
|
Other income (loss)
|
$
|
5
|
|
|
$
|
13
|
|
|
$
|
(8
|
)
|
|
(61.5
|
)%
|
Effective income tax rate
|
24.7
|
%
|
|
24.6
|
%
|
|
|
|
0.1
|
%
|
||||
Effective income tax rate from continuing
operations attributable to DaVita Inc.(1) |
28.8
|
%
|
|
29.6
|
%
|
|
|
|
(0.8
|
)%
|
||||
Net income attributable to noncontrolling
interests |
$
|
(102
|
)
|
|
$
|
(94
|
)
|
|
$
|
8
|
|
|
8.5
|
%
|
|
(1)
|
For a reconciliation of our effective income tax rate from continuing operations attributable to DaVita Inc., see "Reconciliations of non-GAAP measures" section below.
|
|
Six months ended June 30,
|
|
YTD Q2 2020 vs. YTD Q2 2019
|
|||||||||||
|
2020
|
|
2019(1)
|
|
Amount
|
|
Percent
|
|||||||
|
(dollars in millions)
|
|||||||||||||
Net cash provided by operating activities:
|
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
543
|
|
|
$
|
517
|
|
|
$
|
26
|
|
|
5.0
|
%
|
Non-cash items
|
491
|
|
|
483
|
|
|
8
|
|
|
1.7
|
%
|
|||
Working capital
|
(11
|
)
|
|
(230
|
)
|
|
219
|
|
|
(95.2
|
)%
|
|||
Other
|
(11
|
)
|
|
(19
|
)
|
|
8
|
|
|
(42.1
|
)%
|
|||
|
$
|
1,012
|
|
|
$
|
751
|
|
|
$
|
261
|
|
|
34.8
|
%
|
|
|
|
|
|
|
|
|
|||||||
Net cash (used in) provided by investing activities:
|
|
|
|
|
|
|
|
|||||||
Capital expenditures:
|
|
|
|
|
|
|
|
|||||||
Routine maintenance/IT/other
|
$
|
(156
|
)
|
|
$
|
(161
|
)
|
|
$
|
5
|
|
|
(3.1
|
)%
|
Development and relocations
|
(136
|
)
|
|
(213
|
)
|
|
77
|
|
|
(36.2
|
)%
|
|||
Acquisition expenditures
|
(44
|
)
|
|
(66
|
)
|
|
22
|
|
|
(33.3
|
)%
|
|||
Proceeds from sale of self-developed properties
|
69
|
|
|
27
|
|
|
42
|
|
|
155.6
|
%
|
|||
DMG sale net proceeds received at closing, net of DMG cash divested
|
—
|
|
|
3,825
|
|
|
(3,825
|
)
|
|
(100.0
|
)%
|
|||
Other
|
(140
|
)
|
|
(9
|
)
|
|
(131
|
)
|
|
1,455.6
|
%
|
|||
|
$
|
(407
|
)
|
|
$
|
3,403
|
|
|
$
|
(3,810
|
)
|
|
(112.0
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Net cash provided by (used in) financing activities:
|
|
|
|
|
|
|
|
|||||||
Debt issuances net of (payments) and financing costs
|
$
|
1,668
|
|
|
$
|
(1,164
|
)
|
|
$
|
2,832
|
|
|
(243.3
|
)%
|
Distributions to noncontrolling interest
|
(119
|
)
|
|
(96
|
)
|
|
(23
|
)
|
|
24.0
|
%
|
|||
Contributions from noncontrolling interest
|
21
|
|
|
31
|
|
|
(10
|
)
|
|
(32.3
|
)%
|
|||
Share repurchases
|
(322
|
)
|
|
(73
|
)
|
|
(249
|
)
|
|
341.1
|
%
|
|||
Other
|
(8
|
)
|
|
(9
|
)
|
|
1
|
|
|
(11.1
|
)%
|
|||
|
$
|
1,240
|
|
|
$
|
(1,311
|
)
|
|
$
|
2,551
|
|
|
(194.6
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Total number of shares repurchased
|
4,052,298
|
|
|
2,059,976
|
|
|
1,992,322
|
|
|
96.7
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Free cash flow from continuing operations(2)
|
$
|
691
|
|
|
$
|
274
|
|
|
$
|
417
|
|
|
152.2
|
%
|
|
(1)
|
Represents consolidated cash flow activity, including cash flows related to discontinued operations.
|
(2)
|
For a reconciliation of our free cash flow from continuing operations, see "Reconciliations of Non-GAAP measures" section below.
|
|
U.S.
|
|
International
|
||||||||||||||||||||
|
Three months ended
June 30, |
|
Six months ended
June 30, |
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Number of centers operated at beginning of period
|
2,772
|
|
|
2,689
|
|
|
2,753
|
|
|
2,664
|
|
|
282
|
|
|
243
|
|
|
259
|
|
|
241
|
|
Acquired centers
|
1
|
|
|
3
|
|
|
3
|
|
|
5
|
|
|
3
|
|
|
5
|
|
|
25
|
|
|
7
|
|
Developed centers
|
28
|
|
|
33
|
|
|
50
|
|
|
60
|
|
|
2
|
|
|
—
|
|
|
4
|
|
|
—
|
|
Net change in non-owned managed or
administered centers(1) |
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Sold and closed centers(2)
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Closed centers(3)
|
(4
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Net change in Asia Pacific joint venture centers
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Number of centers operated at end of period
|
2,795
|
|
|
2,723
|
|
|
2,795
|
|
|
2,723
|
|
|
287
|
|
|
248
|
|
|
287
|
|
|
248
|
|
|
(1)
|
Represents dialysis centers which we manage or provide administrative services to but in which we own a noncontrolling equity interest or which are wholly-owned by third parties.
|
(2)
|
Represents dialysis centers that were sold and/or closed for which patients were not retained.
|
(3)
|
Represents dialysis centers that were closed for which the majority of patients were retained and transferred to one of our other existing outpatient dialysis centers.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Open market repurchases:
|
(dollars in millions, except for per share)
|
||||||||||||||
Shares
|
—
|
|
|
2,059,976
|
|
|
4,052,298
|
|
|
2,059,976
|
|
||||
Amount paid
|
$
|
—
|
|
|
$
|
112
|
|
|
$
|
303
|
|
|
$
|
112
|
|
Average paid per share
|
$
|
—
|
|
|
$
|
54.46
|
|
|
$
|
74.81
|
|
|
$
|
54.46
|
|
|
Three months ended June 30, 2020
|
||||||||||||||||||||||
|
U.S. dialysis
|
|
Ancillary services
|
|
Corporate administration
|
|
|
||||||||||||||||
|
|
U.S.
|
|
International
|
|
Total
|
|
|
Consolidated
|
||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
523
|
|
|
$
|
(41
|
)
|
|
$
|
1
|
|
|
$
|
(40
|
)
|
|
$
|
(73
|
)
|
|
$
|
410
|
|
Loss on changes in ownership interests, net
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||
Accrual for legal matters
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
35
|
|
||||||
Adjusted operating income (loss)
|
$
|
523
|
|
|
$
|
(25
|
)
|
|
$
|
1
|
|
|
$
|
(23
|
)
|
|
$
|
(38
|
)
|
|
$
|
461
|
|
|
Three months ended March 31, 2020
|
||||||||||||||||||||||
|
U.S. dialysis
|
|
Ancillary services
|
|
Corporate administration
|
|
|
||||||||||||||||
|
|
U.S.
|
|
International
|
|
Total
|
|
|
Consolidated
|
||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
492
|
|
|
$
|
(19
|
)
|
|
$
|
17
|
|
|
$
|
(3
|
)
|
|
$
|
(24
|
)
|
|
$
|
465
|
|
Adjusted operating income (loss)
|
$
|
492
|
|
|
$
|
(19
|
)
|
|
$
|
17
|
|
|
$
|
(3
|
)
|
|
$
|
(24
|
)
|
|
$
|
465
|
|
|
Three months ended June 30, 2019
|
||||||||||||||||||||||
|
U.S. dialysis
|
|
Ancillary services
|
|
Corporate administration
|
|
|
||||||||||||||||
|
|
U.S.
|
|
International
|
|
Total
|
|
|
Consolidated
|
||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
499
|
|
|
$
|
(16
|
)
|
|
$
|
1
|
|
|
$
|
(15
|
)
|
|
$
|
(22
|
)
|
|
$
|
462
|
|
Adjusted operating income (loss)
|
$
|
499
|
|
|
$
|
(16
|
)
|
|
$
|
1
|
|
|
$
|
(15
|
)
|
|
$
|
(22
|
)
|
|
$
|
462
|
|
|
Six months ended June 30, 2020
|
||||||||||||||||||||||
|
U.S. dialysis
|
|
Ancillary services
|
|
Corporate administration
|
|
|
||||||||||||||||
|
|
U.S.
|
|
International
|
|
Total
|
|
|
Consolidated
|
||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
1,014
|
|
|
$
|
(60
|
)
|
|
$
|
18
|
|
|
$
|
(42
|
)
|
|
$
|
(97
|
)
|
|
$
|
875
|
|
Loss on changes in ownership interests, net
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||
Accrual for legal matters
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
35
|
|
||||||
Adjusted operating income (loss)
|
$
|
1,014
|
|
|
$
|
(44
|
)
|
|
$
|
18
|
|
|
$
|
(26
|
)
|
|
$
|
(62
|
)
|
|
$
|
927
|
|
|
Six months ended June 30, 2019
|
||||||||||||||||||||||
|
U.S. dialysis
|
|
Ancillary services
|
|
Corporate administration
|
|
|
||||||||||||||||
|
|
U.S.
|
|
International
|
|
Total
|
|
|
Consolidated
|
||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||
Operating income (loss)
|
$
|
916
|
|
|
$
|
(31
|
)
|
|
$
|
(42
|
)
|
|
$
|
(73
|
)
|
|
$
|
(41
|
)
|
|
$
|
802
|
|
Goodwill impairment
|
—
|
|
|
—
|
|
|
41
|
|
|
41
|
|
|
—
|
|
|
41
|
|
||||||
Adjusted operating income (loss)
|
$
|
916
|
|
|
$
|
(31
|
)
|
|
$
|
(1
|
)
|
|
$
|
(32
|
)
|
|
$
|
(41
|
)
|
|
$
|
843
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||
|
June 30, 2020
|
|
March 31, 2020
|
|
June 30, 2019
|
|
June 30, 2020
|
|
June 30, 2019
|
||||||||||
|
(dollars in millions)
|
||||||||||||||||||
Income from continuing operations before income taxes
|
$
|
338
|
|
|
$
|
369
|
|
|
$
|
324
|
|
|
$
|
708
|
|
|
$
|
540
|
|
Less: Noncontrolling owners' income primarily attributable to
non-tax paying entities |
(53
|
)
|
|
(48
|
)
|
|
(54
|
)
|
|
(102
|
)
|
|
(93
|
)
|
|||||
Income from continuing operations before income taxes
attributable to DaVita Inc. |
$
|
285
|
|
|
$
|
321
|
|
|
$
|
270
|
|
|
$
|
606
|
|
|
$
|
447
|
|
Income tax expense for continuing operations
|
$
|
83
|
|
|
$
|
92
|
|
|
$
|
76
|
|
|
$
|
175
|
|
|
$
|
133
|
|
Less: Income tax attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Income tax expense from continuing operations attributable to
DaVita Inc. |
$
|
83
|
|
|
$
|
91
|
|
|
$
|
76
|
|
|
$
|
175
|
|
|
$
|
132
|
|
Effective income tax rate on income from continuing
operations attributable to DaVita Inc. |
29.2
|
%
|
|
28.5
|
%
|
|
28.0
|
%
|
|
28.8
|
%
|
|
29.6
|
%
|
|
Six months ended
|
||||||
|
June 30, 2020
|
|
June 30, 2019
|
||||
|
(dollars in millions)
|
||||||
Net cash provided by continuing operating activities
|
$
|
1,012
|
|
|
$
|
647
|
|
Less: Distributions to noncontrolling interests
|
(119
|
)
|
|
(96
|
)
|
||
Plus: Contributions to noncontrolling interests
|
21
|
|
|
31
|
|
||
Cash provided by continuing operating activities attributable to DaVita Inc.
|
914
|
|
|
583
|
|
||
Less: Expenditures for routine maintenance and information technology
|
(156
|
)
|
|
(142
|
)
|
||
Less: Expenditures for development
|
(136
|
)
|
|
(194
|
)
|
||
Plus: Proceeds from sale of self-developed properties
|
69
|
|
|
27
|
|
||
Free cash flow from continuing operations
|
$
|
691
|
|
|
$
|
274
|
|
|
Remainder of 2020
|
|
2021-2023
|
|
2024-2025
|
|
After
5 years |
|
Total
|
||||||||||
Potential cash requirements under other commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Letters of credit
|
$
|
57
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
57
|
|
Noncontrolling interests subject to put provisions
|
837
|
|
|
217
|
|
|
113
|
|
|
75
|
|
|
1,242
|
|
|||||
Non-owned and minority owned put provisions
|
85
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|||||
Operating capital advances
|
1
|
|
|
3
|
|
|
1
|
|
|
4
|
|
|
9
|
|
|||||
Purchase commitments
|
184
|
|
|
717
|
|
|
—
|
|
|
—
|
|
|
901
|
|
|||||
|
$
|
1,164
|
|
|
$
|
942
|
|
|
$
|
114
|
|
|
$
|
79
|
|
|
$
|
2,299
|
|
|
(1)
|
Represents the fair value of the Company’s long-term debt excluding financing leases. See Note 8 to the condensed consolidated financial statements for further details.
|
|
Notional Amount
|
|
Contract maturity date
|
|
|
|
|
|
Fair
Value |
||||||||||||||||||||||||||||
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
2025
|
|
Thereafter
|
|
Receive variable
|
|
||||||||||||||||||||
|
(dollars in millions)
|
||||||||||||||||||||||||||||||||||||
2019 cap agreements
|
$
|
3,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
LIBOR above 2.0%
|
|
$
|
4.7
|
|
Period
|
|
Total number
of shares purchased |
|
Average price
paid per share |
|
Total number
of shares purchased as part of publicly announced plans or programs |
|
Approximate
dollar value of shares that may yet be purchased under the plans or programs (in millions) |
||||||
April 1-30, 2020
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
1,400
|
|
May 1-31, 2020
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
1,400
|
|
|
June 1-30, 2020
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
1,400
|
|
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
|
Exhibit
|
|
|
Number
|
|
|
|
|
|
|
Indenture, dated as of June 9, 2020, by and among DaVita Inc., the subsidiary guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee. (1)
|
|
|
|
|
|
Form of 4.625% Senior Notes due 2030 (included with Exhibit 4.1). (1)
|
|
|
|
|
|
Amendment to Stock Appreciation Rights Agreements, effective June 11, 2020, by and between DaVita Inc. and William L. Roper, M.D. *ü
|
|
|
|
|
|
Certification of the Chief Executive Officer, dated July 30, 2020, pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. ü
|
|
|
|
|
|
Certification of the Chief Financial Officer, dated July 30, 2020, pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. ü
|
|
|
|
|
|
Certification of the Chief Executive Officer, dated July 30, 2020, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ü
|
|
|
|
|
|
Certification of the Chief Financial Officer, dated July 30, 2020, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ü
|
|
|
|
|
101.INS
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XBRL Instance Document - the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. ü
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101.SCH
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Inline XBRL Taxonomy Extension Schema Document. ü
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101.CAL
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Inline XBRL Taxonomy Extension Calculation Linkbase Document. ü
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101.DEF
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Inline XBRL Taxonomy Extension Definition Linkbase Document. ü
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101.LAB
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Inline XBRL Taxonomy Extension Label Linkbase Document. ü
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101.PRE
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Inline XBRL Taxonomy Extension Presentation, Linkbase Document. ü
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104
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Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). ü
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*
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Management contract or executive compensation plan or arrangement.
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ü
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Filed or furnished herewith.
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DAVITA INC.
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||
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BY:
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/s/ JOHN D. WINSTEL
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John D. Winstel
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Chief Accounting Officer*
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*
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Mr. Winstel has signed both on behalf of the Registrant as a duly authorized officer and as the Registrant’s principal accounting officer.
|
1 Year DaVita Chart |
1 Month DaVita Chart |
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