2018 Q4 Form 10-K Financial Statement

#000092706619000025 Filed on February 22, 2019

View on sec.gov

Income Statement

Concept 2018 Q4 2017 Q4 2017 Q3
Revenue $2.821B $2.781B $2.765B
YoY Change 1.45% 3.02% 1.46%
Cost Of Revenue $2.027B $1.942B $1.952B
YoY Change 4.4% -473.84% -27.65%
Gross Profit $794.1M $839.2M $813.5M
YoY Change -5.37% 324.91% -21.24%
Gross Profit Margin 28.15% 30.18% 29.42%
Selling, General & Admin $268.5M $259.8M $270.2M
YoY Change 3.35% -346.02% -34.21%
% of Gross Profit 33.81% 30.96% 33.21%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $155.1M $184.0M $203.3M
YoY Change -15.71% -2.54% 11.83%
% of Gross Profit 19.53% 21.93% 24.99%
Operating Expenses $423.7M $404.1M $412.9M
YoY Change 4.85% -416.94% -30.3%
Operating Profit $387.9M $150.3M $395.3M
YoY Change 158.03% -58.64% -51.38%
Interest Expense -$138.9M -$112.2M -$114.6M
YoY Change 23.8% 21.96% 14.14%
% of Operating Profit -35.81% -74.63% -28.99%
Other Income/Expense, Net -$500.0K $5.500M $3.396M
YoY Change -109.09% -1016.67% 81.02%
Pretax Income $259.1M $46.83M $289.4M
YoY Change 453.34% -81.97% -59.26%
Income Tax $51.70M $101.7M $90.55M
% Of Pretax Income 19.95% 217.19% 31.29%
Net Earnings -$149.8M $303.4M -$214.5M
YoY Change -149.37% 92.36% -137.54%
Net Earnings / Revenue -5.31% 10.91% -7.76%
Basic Earnings Per Share -$0.90 $1.66 -$1.14
Diluted Earnings Per Share -$0.90 $1.64 -$1.12
COMMON SHARES
Basic Shares Outstanding 166.0M shares 183.3M shares 188.9M shares
Diluted Shares Outstanding 191.4M shares

Balance Sheet

Concept 2018 Q4 2017 Q4 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $361.4M $578.8M $1.104B
YoY Change -37.56% -42.8% -31.65%
Cash & Equivalents $323.0M $508.2M $846.1M
Short-Term Investments $38.36M $70.53M $257.5M
Other Short-Term Assets $5.594B $112.1M $205.2M
YoY Change 4892.06% 12.61% 15.94%
Inventory $107.4M $181.8M $154.4M
Prepaid Expenses $108.3M $104.7M
Receivables $1.859B $1.715B $2.091B
Other Receivables $469.8M $399.3M $599.4M
Total Short-Term Assets $8.424B $8.771B $4.034B
YoY Change -3.95% 119.56% -5.35%
LONG-TERM ASSETS
Property, Plant & Equipment $3.394B $3.149B $3.386B
YoY Change 7.76% 9.95% 11.2%
Goodwill $6.842B $6.610B $9.416B
YoY Change 3.5% 9.89% 0.35%
Intangibles $118.8M $113.8M $1.451B
YoY Change 4.41% 54.86% -7.94%
Long-Term Investments $0.00 $0.00 $0.00
YoY Change -100.0%
Other Assets $71.58M $47.29M $61.64M
YoY Change 51.38% 39.67% 43.41%
Total Long-Term Assets $10.69B $10.20B $14.98B
YoY Change 4.73% -30.87% 2.15%
TOTAL ASSETS
Total Short-Term Assets $8.424B $8.771B $4.034B
Total Long-Term Assets $10.69B $10.20B $14.98B
Total Assets $19.11B $18.97B $19.01B
YoY Change 0.72% 1.17% 0.46%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $463.3M $509.1M $566.9M
YoY Change -9.01% 11.5% 13.74%
Accrued Expenses $659.0M $616.0M $775.0M
YoY Change 6.98% -36.95% -8.39%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.929B $178.0M $190.0M
YoY Change 983.71% 11.25% 24.18%
Total Short-Term Liabilities $4.891B $3.068B $2.875B
YoY Change 59.45% 13.15% 8.92%
LONG-TERM LIABILITIES
Long-Term Debt $8.173B $9.158B $8.909B
YoY Change -10.76% 2.38% -0.7%
Other Long-Term Liabilities $450.7M $365.3M $548.2M
YoY Change 23.36% 15.11% 30.24%
Total Long-Term Liabilities $450.7M $365.3M $548.2M
YoY Change 23.36% 15.11% 30.24%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.891B $3.068B $2.875B
Total Long-Term Liabilities $450.7M $365.3M $548.2M
Total Liabilities $14.08B $13.08B $13.02B
YoY Change 7.65% 1.12% 1.42%
SHAREHOLDERS EQUITY
Retained Earnings $2.743B $3.634B $4.071B
YoY Change -24.51% -2.06% -19.86%
Common Stock $995.2M $1.043B $1.059B
YoY Change -4.59% 1.53% 2.56%
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00 $0.00 $348.8M
YoY Change -69.62%
Treasury Stock Shares
Shareholders Equity $3.703B $4.690B $4.785B
YoY Change
Total Liabilities & Shareholders Equity $19.11B $18.97B $19.01B
YoY Change 0.72% 1.17% 0.46%

Cashflow Statement

Concept 2018 Q4 2017 Q4 2017 Q3
OPERATING ACTIVITIES
Net Income -$149.8M $303.4M -$214.5M
YoY Change -149.37% 92.36% -137.54%
Depreciation, Depletion And Amortization $155.1M $184.0M $203.3M
YoY Change -15.71% -2.54% 11.83%
Cash From Operating Activities $419.1M $480.7M $503.2M
YoY Change -12.81% -5.11% -6.07%
INVESTING ACTIVITIES
Capital Expenditures -$281.4M -$265.5M $240.9M
YoY Change 5.99% 4.57% 11.21%
Acquisitions
YoY Change
Other Investing Activities -$62.80M $6.200M -$13.00M
YoY Change -1112.9% -98.0% -95.4%
Cash From Investing Activities -$344.3M -$259.2M -$253.9M
YoY Change 32.83% -567.03% -49.12%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -202.1M -236.5M -164.6M
YoY Change -14.55% -56.53% -59.3%
NET CHANGE
Cash From Operating Activities 419.1M 480.7M 503.2M
Cash From Investing Activities -344.3M -259.2M -253.9M
Cash From Financing Activities -202.1M -236.5M -164.6M
Net Change In Cash -127.3M -15.00M 84.70M
YoY Change 748.67% -182.87% -123.04%
FREE CASH FLOW
Cash From Operating Activities $419.1M $480.7M $503.2M
Capital Expenditures -$281.4M -$265.5M $240.9M
Free Cash Flow $700.5M $746.2M $262.3M
YoY Change -6.12% -1.88% -17.79%

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254000 USD
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4276000 USD
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518920000 USD
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683463000 USD
CY2015Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1244917000 USD
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
415420000 USD
CY2017Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
518920000 USD
CY2016Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
683463000 USD
CY2018 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
2 segment
CY2018 us-gaap Use Of Estimates
UseOfEstimates
Use of estimates<div style="line-height:120%;padding-top:13px;text-indent:37px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, contingencies and noncontrolling interests subject to put provisions. Although actual results in subsequent periods will differ from these estimates, such estimates are developed based on the best information available to management and management’s best judgments at the time. All significant assumptions and estimates underlying the amounts reported in the financial statements and accompanying notes are regularly reviewed and updated when necessary. Changes in estimates are reflected in the financial statements based upon on-going actual experience trends, or subsequent settlements and realizations depending on the nature and predictability of the estimates and contingencies. Interim changes in estimates related to annual operating costs are applied prospectively within annual periods.</span></div>The most significant assumptions and estimates underlying these financial statements and accompanying notes involve revenue recognition and accounts receivable, contingencies, impairments of goodwill and investments, accounting for income taxes, consolidation of variable interest entities, and certain fair value estimates. Specific estimating risks and contingencies are further addressed within these notes to the consolidated financial statements.
CY2018Q4 dva Number Of Entities That Third Parties Held Non Controlling Equity Interests
NumberOfEntitiesThatThirdPartiesHeldNonControllingEquityInterests
653 entity
CY2018 us-gaap Revenues
Revenues
11404851000 USD
CY2017 us-gaap Revenues
Revenues
10876634000 USD
CY2017 us-gaap Health Care Organization Patient Service Revenue Provisionfor Bad Debts
HealthCareOrganizationPatientServiceRevenueProvisionforBadDebts
485364000 USD
CY2016 us-gaap Revenues
Revenues
10707467000 USD
CY2016 us-gaap Health Care Organization Patient Service Revenue Provisionfor Bad Debts
HealthCareOrganizationPatientServiceRevenueProvisionforBadDebts
431304000 USD
CY2018 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
624321000 USD
CY2017 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
901277000 USD
CY2016 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
1032373000 USD
CY2018 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
-464927000 USD
CY2017 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
-237659000 USD
CY2016 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
IncomeLossFromDiscontinuedOperationsNetOfTaxAttributableToReportingEntity
-152499000 USD
CY2018 us-gaap Net Income Loss
NetIncomeLoss
159394000 USD
CY2017 us-gaap Net Income Loss
NetIncomeLoss
663618000 USD
CY2016 us-gaap Net Income Loss
NetIncomeLoss
879874000 USD
CY2018 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
171886000 shares
CY2017 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
190820000 shares
CY2016 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
203835000 shares
CY2018 us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
1100000 shares
CY2017 us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
2194000 shares
CY2016 us-gaap Weighted Average Number Of Shares Contingently Issuable
WeightedAverageNumberOfSharesContingentlyIssuable
2194000 shares
CY2018 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
170786000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
188626000 shares
CY2016 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
201641000 shares
CY2018 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
3.66
CY2017 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
4.78
CY2016 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
5.12
CY2018 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
-2.73
CY2017 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
-1.26
CY2016 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
-0.76
CY2018 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.93
CY2017 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
3.52
CY2016 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
4.36
CY2018 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
171886000 shares
CY2017 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
190820000 shares
CY2016 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
203835000 shares
CY2018 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
479000 shares
CY2017 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
529000 shares
CY2016 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
1070000 shares
CY2018 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
172365000 shares
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
191349000 shares
CY2016 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
204905000 shares
CY2018 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
3.62
CY2017 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
4.71
CY2016 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
5.04
CY2018 us-gaap Discontinued Operation Income Loss From Discontinued Operation Net Of Tax Per Diluted Share
DiscontinuedOperationIncomeLossFromDiscontinuedOperationNetOfTaxPerDilutedShare
-2.70
CY2017 us-gaap Discontinued Operation Income Loss From Discontinued Operation Net Of Tax Per Diluted Share
DiscontinuedOperationIncomeLossFromDiscontinuedOperationNetOfTaxPerDilutedShare
-1.24
CY2016 us-gaap Discontinued Operation Income Loss From Discontinued Operation Net Of Tax Per Diluted Share
DiscontinuedOperationIncomeLossFromDiscontinuedOperationNetOfTaxPerDilutedShare
-0.75
CY2018 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.92
CY2017 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
3.47
CY2016 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
4.29
CY2018 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
5295000 shares
CY2017 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4350000 shares
CY2016 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
2523000 shares
CY2018Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
92382000 USD
CY2017Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
10686000 USD
CY2018Q4 us-gaap Assets Held In Trust Current
AssetsHeldInTrustCurrent
79329000 USD
CY2018Q4 us-gaap Held To Maturity Securities
HeldToMaturitySecurities
2235000 USD
CY2018Q4 us-gaap Equity Securities Fv Ni
EquitySecuritiesFvNi
36124000 USD
CY2018Q4 us-gaap Marketable Securities
MarketableSecurities
38359000 USD
CY2017Q4 us-gaap Held To Maturity Securities
HeldToMaturitySecurities
31630000 USD
CY2017Q4 us-gaap Available For Sale Securities
AvailableForSaleSecurities
38895000 USD
CY2017Q4 us-gaap Marketable Securities
MarketableSecurities
70525000 USD
CY2018Q4 us-gaap Held To Maturity Securities Current
HeldToMaturitySecuritiesCurrent
2235000 USD
CY2018Q4 us-gaap Marketable Securities Current
MarketableSecuritiesCurrent
2935000 USD
CY2017Q4 us-gaap Held To Maturity Securities Current
HeldToMaturitySecuritiesCurrent
31630000 USD
CY2017Q4 us-gaap Available For Sale Securities Current
AvailableForSaleSecuritiesCurrent
1200000 USD
CY2017Q4 us-gaap Marketable Securities Current
MarketableSecuritiesCurrent
32830000 USD
CY2018Q4 us-gaap Held To Maturity Securities Noncurrent
HeldToMaturitySecuritiesNoncurrent
0 USD
CY2018Q4 us-gaap Marketable Securities Noncurrent
MarketableSecuritiesNoncurrent
35424000 USD
CY2017Q4 us-gaap Held To Maturity Securities Noncurrent
HeldToMaturitySecuritiesNoncurrent
0 USD
CY2017Q4 us-gaap Available For Sale Securities Noncurrent
AvailableForSaleSecuritiesNoncurrent
37695000 USD
CY2017Q4 us-gaap Marketable Securities Noncurrent
MarketableSecuritiesNoncurrent
37695000 USD
CY2018Q4 us-gaap Held To Maturity Securities
HeldToMaturitySecurities
2235000 USD
CY2018Q4 us-gaap Equity Securities Fv Ni
EquitySecuritiesFvNi
36124000 USD
CY2018Q4 us-gaap Marketable Securities
MarketableSecurities
38359000 USD
CY2017Q4 us-gaap Held To Maturity Securities
HeldToMaturitySecurities
31630000 USD
CY2017Q4 us-gaap Available For Sale Securities
AvailableForSaleSecurities
38895000 USD
CY2017Q4 us-gaap Marketable Securities
MarketableSecurities
70525000 USD
CY2017 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
360000 USD
CY2017 dva Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Sold In Current Quarter Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfSoldInCurrentQuarterNetOfTax
220000 USD
CY2018Q4 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
469796000 USD
CY2017Q4 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
399262000 USD
CY2018Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
108315000 USD
CY2017Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
104727000 USD
CY2018Q4 us-gaap Other Assets Miscellaneous Current
OtherAssetsMiscellaneousCurrent
3525000 USD
CY2017Q4 us-gaap Other Assets Miscellaneous Current
OtherAssetsMiscellaneousCurrent
7331000 USD
CY2018Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
111840000 USD
CY2017Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
112058000 USD
CY2018Q4 us-gaap Land
Land
37384000 USD
CY2017Q4 us-gaap Land
Land
33814000 USD
CY2018Q4 us-gaap Buildings And Improvements Gross
BuildingsAndImprovementsGross
467181000 USD
CY2017Q4 us-gaap Buildings And Improvements Gross
BuildingsAndImprovementsGross
473489000 USD
CY2018Q4 us-gaap Leasehold Improvements Gross
LeaseholdImprovementsGross
3164943000 USD
CY2017Q4 us-gaap Leasehold Improvements Gross
LeaseholdImprovementsGross
2816675000 USD
CY2018Q4 us-gaap Machinery And Equipment Gross
MachineryAndEquipmentGross
2586564000 USD
CY2017Q4 us-gaap Machinery And Equipment Gross
MachineryAndEquipmentGross
2352246000 USD
CY2018Q4 us-gaap Construction In Progress Gross
ConstructionInProgressGross
661695000 USD
CY2017Q4 us-gaap Construction In Progress Gross
ConstructionInProgressGross
576651000 USD
CY2018Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
6917767000 USD
CY2017Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
6252875000 USD
CY2018Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
3524098000 USD
CY2017Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
3103662000 USD
CY2018Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
3393669000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
3149213000 USD
CY2018 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
574799000 USD
CY2017 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
544129000 USD
CY2016 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
494945000 USD
CY2018 us-gaap Interest Costs Capitalized
InterestCostsCapitalized
25978000 USD
CY2017 us-gaap Interest Costs Capitalized
InterestCostsCapitalized
19176000 USD
CY2016 us-gaap Interest Costs Capitalized
InterestCostsCapitalized
12990000 USD
CY2018 dva Amortization Of Intangible Assets And Liabilities Net
AmortizationOfIntangibleAssetsAndLiabilitiesNet
296000 USD
CY2017 dva Amortization Of Intangible Assets And Liabilities Net
AmortizationOfIntangibleAssetsAndLiabilitiesNet
203000 USD
CY2016 dva Amortization Of Intangible Assets And Liabilities Net
AmortizationOfIntangibleAssetsAndLiabilitiesNet
232000 USD
CY2018 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 USD
CY2018Q4 us-gaap Finite Lived Noncompete Agreements Gross
FiniteLivedNoncompeteAgreementsGross
131360000 USD
CY2017Q4 us-gaap Finite Lived Noncompete Agreements Gross
FiniteLivedNoncompeteAgreementsGross
429140000 USD
CY2018Q4 us-gaap Finite Lived Intangible Asset Off Market Lease Favorable Gross
FiniteLivedIntangibleAssetOffMarketLeaseFavorableGross
7584000 USD
CY2017Q4 us-gaap Finite Lived Intangible Asset Off Market Lease Favorable Gross
FiniteLivedIntangibleAssetOffMarketLeaseFavorableGross
7623000 USD
CY2018Q4 us-gaap Indefinite Lived Intangible Assets Excluding Goodwill
IndefiniteLivedIntangibleAssetsExcludingGoodwill
59885000 USD
CY2017Q4 us-gaap Indefinite Lived Intangible Assets Excluding Goodwill
IndefiniteLivedIntangibleAssetsExcludingGoodwill
33255000 USD
CY2018Q4 us-gaap Other Indefinite Lived Intangible Assets
OtherIndefiniteLivedIntangibleAssets
583000 USD
CY2017Q4 us-gaap Other Indefinite Lived Intangible Assets
OtherIndefiniteLivedIntangibleAssets
583000 USD
CY2018Q4 us-gaap Intangible Assets Gross Excluding Goodwill
IntangibleAssetsGrossExcludingGoodwill
199412000 USD
CY2017Q4 us-gaap Intangible Assets Gross Excluding Goodwill
IntangibleAssetsGrossExcludingGoodwill
470601000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
80566000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
356774000 USD
CY2018Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
118846000 USD
CY2017Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
113827000 USD
CY2018 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
16236000 USD
CY2017 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
15782000 USD
CY2016 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
14552000 USD
CY2018Q4 us-gaap Off Market Lease Unfavorable
OffMarketLeaseUnfavorable
5930000 USD
CY2017Q4 us-gaap Off Market Lease Unfavorable
OffMarketLeaseUnfavorable
5447000 USD
CY2018Q4 dva Intangible Lease Liabilities Accumulated Amortization
IntangibleLeaseLiabilitiesAccumulatedAmortization
4362000 USD
CY2017Q4 dva Intangible Lease Liabilities Accumulated Amortization
IntangibleLeaseLiabilitiesAccumulatedAmortization
3508000 USD
CY2018 us-gaap Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
-28064000 USD
CY2018Q4 us-gaap Goodwill
Goodwill
6841960000 USD
CY2018Q4 us-gaap Investments In Affiliates Subsidiaries Associates And Joint Ventures
InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures
224611000 USD
CY2017Q4 us-gaap Investments In Affiliates Subsidiaries Associates And Joint Ventures
InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures
245534000 USD
CY2018Q3 us-gaap Equity Method Investment Additional Information
EquityMethodInvestmentAdditionalInformation
During the third quarter of 2018, the investors in the APAC JV jointly agreed to a six-month deferral of the subscribed incremental capital contributions originally scheduled for August 1, 2018 based upon revised assessments of the capital needs of the joint venture.
CY2018Q4 dva Number Of Partnerships
NumberOfPartnerships
22
CY2018Q4 us-gaap Cost Method Investments Aggregate Carrying Amount Not Evaluated For Impairment
CostMethodInvestmentsAggregateCarryingAmountNotEvaluatedForImpairment
12386000 USD
CY2018 dva Valuation Adjustment
ValuationAdjustment
0 USD
CY2016Q4 us-gaap Goodwill
Goodwill
6015375000 USD
CY2017 us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
617032000 USD
CY2017 us-gaap Goodwill Written Off Related To Sale Of Business Unit
GoodwillWrittenOffRelatedToSaleOfBusinessUnit
32386000 USD
CY2017 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
36196000 USD
CY2017 us-gaap Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
46454000 USD
CY2017Q4 us-gaap Goodwill
Goodwill
6610279000 USD
CY2018 us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
278348000 USD
CY2018 us-gaap Goodwill Written Off Related To Sale Of Business Unit
GoodwillWrittenOffRelatedToSaleOfBusinessUnit
15497000 USD
CY2018 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
3106000 USD
CY2018Q4 us-gaap Goodwill Gross
GoodwillGross
6869233000 USD
CY2018Q4 us-gaap Goodwill Impaired Accumulated Impairment Loss
GoodwillImpairedAccumulatedImpairmentLoss
27273000 USD
CY2018Q4 us-gaap Goodwill
Goodwill
6841960000 USD
CY2018 dva Percentage Change In Operating Income Used To Evaluate Fair Value Of Reporting Unit For Goodwill Assessment
PercentageChangeInOperatingIncomeUsedToEvaluateFairValueOfReportingUnitForGoodwillAssessment
0.03
CY2018Q4 us-gaap Customer Advances And Deposits Current
CustomerAdvancesAndDepositsCurrent
302244000 USD
CY2017Q4 us-gaap Customer Advances And Deposits Current
CustomerAdvancesAndDepositsCurrent
292370000 USD
CY2018Q4 us-gaap Accrued Insurance Current
AccruedInsuranceCurrent
58569000 USD
CY2017Q4 us-gaap Accrued Insurance Current
AccruedInsuranceCurrent
64924000 USD
CY2018Q4 us-gaap Interest Payable Current
InterestPayableCurrent
82827000 USD
CY2017Q4 us-gaap Interest Payable Current
InterestPayableCurrent
83362000 USD
CY2018Q4 us-gaap Accrual For Taxes Other Than Income Taxes Current
AccrualForTaxesOtherThanIncomeTaxesCurrent
28663000 USD
CY2017Q4 us-gaap Accrual For Taxes Other Than Income Taxes Current
AccrualForTaxesOtherThanIncomeTaxesCurrent
28317000 USD
CY2018Q4 us-gaap Other Sundry Liabilities Current
OtherSundryLiabilitiesCurrent
123547000 USD
CY2017Q4 us-gaap Other Sundry Liabilities Current
OtherSundryLiabilitiesCurrent
110032000 USD
CY2018Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
595850000 USD
CY2017Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
579005000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
1083578000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
1725822000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
1278754000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
-35100000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
-326036000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
344351000 USD
CY2018 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
1048478000 USD
CY2017 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
1399786000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
1623105000 USD
CY2016 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
88412000 USD
CY2018 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
21096000 USD
CY2017 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
37347000 USD
CY2016 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
-28530000 USD
CY2018 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
4659000 USD
CY2018 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
140064000 USD
CY2017 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
330191000 USD
CY2016 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
322940000 USD
CY2018 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
32990000 USD
CY2017 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
47228000 USD
CY2016 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
44525000 USD
CY2018 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
7557000 USD
CY2017 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
3422000 USD
CY2016 us-gaap Current Foreign Tax Expense Benefit
CurrentForeignTaxExpenseBenefit
1928000 USD
CY2018 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
180611000 USD
CY2017 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
380841000 USD
CY2016 us-gaap Current Income Tax Expense Benefit
CurrentIncomeTaxExpenseBenefit
369393000 USD
CY2018 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
52034000 USD
CY2017 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
-98760000 USD
CY2017 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
4431000 USD
CY2016 us-gaap Deferred Foreign Income Tax Expense Benefit
DeferredForeignIncomeTaxExpenseBenefit
2486000 USD
CY2018 us-gaap Deferred Income Taxes And Tax Credits
DeferredIncomeTaxesAndTaxCredits
77789000 USD
CY2017 us-gaap Deferred Income Taxes And Tax Credits
DeferredIncomeTaxesAndTaxCredits
-56982000 USD
CY2016 us-gaap Deferred Income Taxes And Tax Credits
DeferredIncomeTaxesAndTaxCredits
62368000 USD
CY2018 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
258400000 USD
CY2017 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
323859000 USD
CY2016 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
431761000 USD
CY2018 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
258400000 USD
CY2017 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
323859000 USD
CY2016 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
431761000 USD
CY2018 us-gaap Discontinued Operation Tax Effect Of Income Loss From Discontinued Operation During Phase Out Period
DiscontinuedOperationTaxEffectOfIncomeLossFromDiscontinuedOperationDuringPhaseOutPeriod
99768000 USD
CY2017 us-gaap Discontinued Operation Tax Effect Of Income Loss From Discontinued Operation During Phase Out Period
DiscontinuedOperationTaxEffectOfIncomeLossFromDiscontinuedOperationDuringPhaseOutPeriod
-364856000 USD
CY2016 us-gaap Discontinued Operation Tax Effect Of Income Loss From Discontinued Operation During Phase Out Period
DiscontinuedOperationTaxEffectOfIncomeLossFromDiscontinuedOperationDuringPhaseOutPeriod
24052000 USD
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Contingencies<div style="line-height:120%;padding-bottom:12px;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The majority of the Company’s revenues are from government programs and may be subject to adjustment as a result of: (i) examination by government agencies or contractors, for which the resolution of any matters raised may take extended periods of time to finalize; (ii) differing interpretations of government regulations by different Medicare contractors or regulatory authorities; (iii) differing opinions regarding a patient’s medical diagnosis or the medical necessity of services provided; and (iv) retroactive applications or interpretations of governmental requirements. In addition, the Company’s revenues from commercial payors may be subject to adjustment as a result of potential claims for refunds, as a result of government actions or as a result of other claims by commercial payors.</span></div><div style="line-height:120%;padding-bottom:12px;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company operates in a highly regulated industry and is a party to various lawsuits, claims, </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">qui tam</span><span style="font-family:inherit;font-size:10pt;"> suits, governmental investigations and audits (including investigations resulting from its obligation to self-report suspected violations of law) and other legal proceedings. The Company records accruals for certain legal proceedings and regulatory matters to the extent that the Company determines an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. As of </span><span style="font-family:inherit;font-size:10pt;">December 31, 2018</span><span style="font-family:inherit;font-size:10pt;">, and </span><span style="font-family:inherit;font-size:10pt;">December 31, 2017</span><span style="font-family:inherit;font-size:10pt;">, the Company’s total recorded accruals, including DMG, with respect to legal proceedings and regulatory matters, net of anticipated third party recoveries, were immaterial. While these accruals reflect the Company’s best estimate of the probable loss for those matters as of the dates of those accruals, the recorded amounts may differ materially from the actual amount of the losses for those matters, and any anticipated third party recoveries for any such losses may not ultimately be recoverable. Additionally, in some cases, no estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because of the inherently unpredictable nature of legal proceedings and regulatory matters, which also may be impacted by various factors, including that they may involve indeterminate claims for monetary damages or may involve fines, penalties or non-monetary remedies; present novel legal theories or legal uncertainties; involve disputed facts; represent a shift in regulatory policy; are in the early stages of the proceedings; or result in a change of business practices. Further, there may be various levels of judicial review available to the Company in connection with any such proceeding.</span></div><div style="line-height:120%;padding-top:13px;text-indent:37px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The following is a description of certain lawsuits, claims, governmental investigations and audits and other legal proceedings to which the Company is subject.</span></div><div style="line-height:120%;padding-top:13px;text-indent:18px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Inquiries by the Federal Government and Certain Related Civil Proceedings</span></div><div style="line-height:120%;padding-top:13px;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">2016 U.S. Attorney Texas Investigation</span><span style="font-family:inherit;font-size:10pt;">: In early February 2016, the Company announced that its pharmacy services’ wholly-owned subsidiary, DaVita Rx, LLC (DaVita Rx), received a Civil Investigative Demand (CID) from the U.S. Attorney’s Office, Northern District of Texas. The government is conducting a federal False Claims Act (FCA) investigation concerning allegations that DaVita Rx presented or caused to be presented false claims for payment to the government for prescription medications, as well as an investigation into the Company’s relationships with pharmaceutical manufacturers. The CID covers the period from January 1, 2006 through the present. In connection with the Company’s ongoing efforts working with the government, the Company learned that a </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">qui tam</span><span style="font-family:inherit;font-size:10pt;"> complaint had been filed covering some of the issues in the CID and practices that had been identified by the Company in a self-disclosure filed with the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services (HHS) in February 2016. In December 2017, the Company finalized and executed a settlement agreement with the government and relators in the </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">qui tam</span><span style="font-family:inherit;font-size:10pt;"> matter that included total monetary consideration of </span><span style="font-family:inherit;font-size:10pt;"><span>$63,700</span></span><span style="font-family:inherit;font-size:10pt;">, as previously disclosed, of which </span><span style="font-family:inherit;font-size:10pt;"><span>$41,500</span></span><span style="font-family:inherit;font-size:10pt;"> was an incremental cash payment and </span><span style="font-family:inherit;font-size:10pt;"><span>$22,200</span></span><span style="font-family:inherit;font-size:10pt;"> was for amounts previously refunded, and all of which was previously accrued. The government’s investigation into certain of the Company's relationships with pharmaceutical manufacturers is ongoing, and in July 2018 the OIG served the Company with a subpoena seeking additional documents and information relating to those relationships. The Company is continuing to cooperate with the government in this investigation.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">2017 U.S. Attorney Massachusetts Investigation</span><span style="font-family:inherit;font-size:10pt;">: In January 2017, the Company was served with an administrative subpoena for records by the U.S. Attorney’s Office, District of Massachusetts, relating to an investigation into possible federal </span></div><div style="line-height:120%;padding-top:13px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">health care offenses. The subpoena covers the period from January 1, 2007 through the present, and seeks documents relevant to charitable patient assistance organizations, particularly the American Kidney Fund, including documents related to efforts to provide patients with information concerning the availability of charitable assistance. The Company is continuing to cooperate with the government in this investigation.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">2017 U.S. Attorney Colorado Investigation</span><span style="font-family:inherit;font-size:10pt;">: In November 2017, the U.S. Attorney’s Office, District of Colorado informed the Company of an investigation it was conducting into possible federal health care offenses involving DaVita Kidney Care, as well as several of the Company’s wholly-owned subsidiaries, including DMG, DaVita Rx, DaVita Laboratory Services, Inc. (DaVita Labs), and RMS Lifeline Inc. (Lifeline). In August 2018, the Company received a CID from the U.S. Attorney's Office. The CID was issued pursuant to the FCA and covers the period from January 2005 through the present. In connection with the resolution of the </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">2015 U.S. OIG Medicare Advantage Civil Investigation</span><span style="font-family:inherit;font-size:10pt;"> referred to below, the Company resolved possible claims relating to DMG in this investigation. The Company is continuing to cooperate with the government in this investigation. </span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">2017 U.S. Attorney Florida Investigation</span><span style="font-family:inherit;font-size:10pt;">: In November 2017, the U.S. Attorney’s Office, Southern District of Florida informed the Company of an investigation it was conducting into possible federal healthcare offenses involving the Company's wholly-owned subsidiary, Lifeline. The Company is continuing to cooperate with the government in this investigation.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">2018 U.S. Attorney Florida Investigation</span><span style="font-family:inherit;font-size:10pt;">: In March 2018, DaVita Labs received two CIDs from the U.S. Attorney’s Office, Middle District of Florida that were identical in nature but directed to the two different labs. According to the face of the CIDs, the U.S. Attorney’s Office is conducting an investigation as to whether the Company’s subsidiary submitted claims for blood, urine, and fecal testing, where there were insufficient test validation or stability studies to ensure accurate results, in violation of the FCA. In October 2018, DaVita Labs received a subpoena from the OIG in connection with this matter requesting certain patient records linked to clinical laboratory tests. The Company is continuing to cooperate with the government in this investigation.</span></div><div style="line-height:120%;padding-top:13px;text-align:center;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">* * *</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Although the Company cannot predict whether or when proceedings might be initiated or when these matters may be resolved (other than as may be described above), it is not unusual for inquiries such as these to continue for a considerable period of time through the various phases of document and witness requests and on-going discussions with regulators and to develop over the course of time. In addition to the inquiries and proceedings specifically identified above, the Company frequently is subject to other inquiries by state or federal government agencies and/or private civil </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">qui tam</span><span style="font-family:inherit;font-size:10pt;"> complaints filed by relators. Negative findings or terms and conditions that the Company might agree to accept as part of a negotiated resolution of pending or future government inquiries or relator proceedings could result in, among other things, substantial financial penalties or awards against the Company, substantial payments made by the Company, harm to the Company’s reputation, required changes to the Company’s business practices, exclusion from future participation in the Medicare, Medicaid and other federal health care programs and, if criminal proceedings were initiated against the Company, possible criminal penalties, any of which could have a material adverse effect on the Company.</span></div><div style="line-height:120%;padding-top:13px;text-indent:18px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Shareholder and Derivative Claims</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">Peace Officers’ Annuity and Benefit Fund of Georgia Securities Class Action Civil Suit</span><span style="font-family:inherit;font-size:10pt;">: On February 1, 2017, the Peace Officers’ Annuity and Benefit Fund of Georgia filed a putative federal securities class action complaint in the U.S. District Court for the District of Colorado against the Company and certain executives. The complaint covers the time period of August 2015 to October 2016 and alleges, generally, that the Company and its executives violated</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;"> </span><span style="font-family:inherit;font-size:10pt;">federal securities laws concerning the Company’s financial results and revenue derived from patients who received charitable premium assistance from an industry-funded non-profit organization. The complaint further alleges that the process by which patients obtained commercial insurance and received charitable premium assistance was improper and "created a false impression of DaVita’s business and operational status and future growth prospects." In November 2017, the court appointed the lead plaintiff and an amended complaint was filed on January 12, 2018. On March 27, 2018, the Company and various individual defendants filed a motion to dismiss. Briefing on the motion is complete. The plaintiffs filed an opposition to the motion to dismiss on June 6, 2018. The Company filed a reply in support of the motion on July 19, 2018. The Company disputes these allegations and intends to defend this action accordingly.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">In re DaVita Inc. Stockholder Derivative Litigation</span><span style="font-family:inherit;font-size:10pt;">: On August 15, 2017, the U.S. District Court for the District of Delaware consolidated three previously disclosed shareholder derivative lawsuits: the Blackburn Shareholder action filed on February 10, 2017, the Gabilondo Shareholder action filed on May 30, 2017, and the City of Warren Police and Fire Retirement </span></div><div style="line-height:120%;padding-top:13px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">System Shareholder action filed on June 9, 2017. The complaint covers the time period from 2015 to present and alleges, generally, breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, corporate waste, and misrepresentations and/or failures to disclose certain information in violation of the federal securities laws in connection with an alleged practice to direct patients with government-subsidized health insurance into private health insurance plans to maximize the Company’s profits. An amended complaint was filed in September 2017, and on December 18, 2017, the Company filed a motion to dismiss and a motion to stay proceedings in the alternative. The plaintiffs filed an opposition to the motion to dismiss on March 9, 2018. On June 25, 2018, the U.S. District Court for the District of Delaware granted the Company’s motion to stay proceedings and stayed the case until January 7, 2019, the date of the next status conference. During the status conference on January 7, 2019 the court further extended the stay until February 8, 2019. The parties submitted a proposed scheduling order on that date. The Company asked the Court to rule on the fully-briefed motion to dismiss before opening discovery. The Company disputes these allegations and intends to defend this action accordingly.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;padding-left:16px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Other Proceedings</span></div><div style="line-height:120%;padding-top:13px;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In addition to the foregoing, from time to time the Company is subject to other lawsuits, demands, claims, governmental investigations and audits and legal proceedings that arise due to the nature of its business, including contractual disputes, such as with payors, suppliers and others, employee-related matters and professional and general liability claims. From time to time, the Company also initiates litigation or other legal proceedings as a plaintiff arising out of contracts or other matters.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:16px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Resolved Matters</span></div><div style="line-height:120%;padding-top:13px;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">2011 Suit against the U.S. Department of Veterans Affairs</span><span style="font-family:inherit;font-size:10pt;">: As previously disclosed, the Company had a pending lawsuit in the U.S. Court of Federal Claims against the federal government which was originally filed in May 2011. The lawsuit related to the U.S. Department of Veterans Affairs (VA) underpayment of dialysis services the Company provided from 2005 through 2011 to veterans pursuant to VA regulations. In the first quarter of 2017, the Company received a payment of </span><span style="font-family:inherit;font-size:10pt;"><span>$538,000</span></span><span style="font-family:inherit;font-size:10pt;"> related to the settlement with the VA. The Company's consolidated entities recognized a net gain of </span><span style="font-family:inherit;font-size:10pt;"><span>$527,000</span></span><span style="font-family:inherit;font-size:10pt;"> on this settlement. The Company's nonconsolidated and managed entities recognized a gain of </span><span style="font-family:inherit;font-size:10pt;"><span>$9,000</span></span><span style="font-family:inherit;font-size:10pt;">, of which the Company's equity investment share was </span><span style="font-family:inherit;font-size:10pt;"><span>$3,000</span></span><span style="font-family:inherit;font-size:10pt;">. The net effect was a net increase of </span><span style="font-family:inherit;font-size:10pt;"><span>$530,000</span></span><span style="font-family:inherit;font-size:10pt;"> to the Company's operating income.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">2015 OIG Medicare Advantage Civil Investigation</span><span style="font-family:inherit;font-size:10pt;">: In March 2015, JSA HealthCare Corporation (JSA), a subsidiary of DMG, received a subpoena from the OIG requesting documents and information for the period from January 1, 2008 through December 31, 2013, for certain MA plans for which JSA provided services. It also requested information regarding JSA’s communications about patient diagnoses as they related to certain MA plans generally, and more specifically as related to two Florida physicians with whom JSA previously contracted.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In addition to the subpoena described above, in June 2015, the Company received a civil subpoena from the OIG seeking production of a wide range of documents relating to the Company’s and its subsidiaries’ (including DMG and its subsidiary JSA) provision of services to MA plans and related patient diagnosis coding and risk adjustment submissions and payments. The Company believes that the request was part of a broader industry investigation into MA patient diagnosis coding and risk adjustment practices and potential overpayments by the government. The information requested included information related to patient diagnosis coding practices for a number of conditions, including potentially improper historical DMG coding for a particular condition. With respect to that condition, the guidance related to that coding issue was discontinued following the Company’s November 1, 2012, acquisition of HealthCare Partners (now known as the Company's DMG business), and the Company notified Centers for Medicare and Medicaid Services (CMS) in April 2015 of the coding practice and potential overpayments. In that regard, the Company identified certain additional coding practices which may have been problematic, some of which were the subject of the previously disclosed and dismissed</span><span style="font-family:inherit;font-size:10pt;font-style:italic;"> Swoben Private Civil Suit</span><span style="font-family:inherit;font-size:10pt;">.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Company entered into a settlement agreement with the DOJ and OIG to resolve these matters on </span><span style="font-family:inherit;font-size:10pt;"><span>September 28, 2018</span></span><span style="font-family:inherit;font-size:10pt;">. As previously disclosed, an escrow established in connection with the Company's acquisition of HealthCare Partners in 2012 held back a portion of the purchase price to the prior owners of HealthCare Partners as security for the indemnification rights of the Company. The settlement amount of </span><span style="font-family:inherit;font-size:10pt;"><span>$270,000</span></span><span style="font-family:inherit;font-size:10pt;"> was paid with these escrowed funds.</span></div><div style="line-height:120%;padding-top:13px;text-align:left;text-indent:36px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;text-decoration:underline;">White, Kathleen, et al. v. DaVita Healthcare Partners, Inc., Civil Action No. 15-cv-2106, U.S. District Court for the District of Colorado</span><span style="font-family:inherit;font-size:10pt;">: </span><span style="font-family:inherit;font-size:10pt;"><span>Three</span></span><span style="font-family:inherit;font-size:10pt;"> actions (Menchaca v. DaVita Healthcare Partners, Inc., Saldana v. DaVita Healthcare Partners, Inc. and Hardin v. DaVita Healthcare Partners, Inc.) were consolidated in December 2016 into one action in U.S. District Court for the District of Colorado. In all three actions, the plaintiffs brought claims for wrongful death based on allegations related to Granuflo®, a product used as a component of the dialysis process. The Menchaca and Saldana actions arose out of the treatment of patients in California, while the Hardin action arose out of the treatment of a patient in Illinois. On </span><span style="font-family:inherit;font-size:10pt;"><span><span style="white-space:nowrap">June 27, 2018</span></span></span><span style="font-family:inherit;font-size:10pt;">, </span></div><div style="line-height:120%;padding-top:13px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">the jury returned a verdict in favor of the plaintiffs, collectively awarding </span><span style="font-family:inherit;font-size:10pt;"><span>$8,500</span></span><span style="font-family:inherit;font-size:10pt;"> in compensatory damages and </span><span style="font-family:inherit;font-size:10pt;"><span>$375,000</span></span><span style="font-family:inherit;font-size:10pt;"> in punitive damages. Judgment on this verdict was not entered.  In November 2018, the parties settled all three of the consolidated actions collectively for </span><span style="font-family:inherit;font-size:10pt;"><span>$25,500</span></span><span style="font-family:inherit;font-size:10pt;">, and all </span><span style="font-family:inherit;font-size:10pt;"><span>three</span></span><span style="font-family:inherit;font-size:10pt;"> cases were dismissed with prejudice. One of the Company’s insurance carriers paid </span><span style="font-family:inherit;font-size:10pt;"><span>$9,200</span></span><span style="font-family:inherit;font-size:10pt;"> of the settlement. The Company believes it is probable that it will be able to recover the remainder of the settlement amount from other insurers, indemnitors, and the like; however, the Company can make no assurances that it will recover the full amount.</span></div><div style="line-height:120%;padding-top:13px;text-align:center;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">* * *</span></div><span style="font-family:inherit;font-size:10pt;">Other than as described above, the Company cannot predict the ultimate outcomes of the various legal proceedings and regulatory matters to which the Company is or may be subject from time to time, including those described in this Note </span><span style="font-family:inherit;font-size:10pt;">17</span> to these consolidated financial statements, or the timing of their resolution or the ultimate losses or impact of developments in those matters, which could have a material adverse effect on the Company’s revenues, earnings and cash flows. Further, any legal proceedings or regulatory matters involving the Company, whether meritorious or not, are time consuming, and often require management’s attention and result in significant legal expense, and may result in the diversion of significant operational resources, or otherwise harm the Company’s business, results of operations, financial condition, cash flows or reputation.
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