The following financial and operating data should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements filed as part of this report. The following table presents selected consolidated financial and operating data for the periods indicated. These selected consolidated financial results have been recast for all prior periods presented to reflect the retrospective application of these new presentation and disclosure requirements for patient service revenues.
Year ended December 31,
2016
2015
2014
2013
2012 (5)
(in thousands, except share data)
Income statement data:
Net revenues
$
14,745,105
$
13,781,837
$
12,795,106
$
11,764,050
$
8,186,280
Operating expenses and charges(2)
12,850,562
12,611,142
10,979,965
10,213,916
6,889,196
Operating income
1,894,543
1,170,695
1,815,141
1,550,134
1,297,084
Debt expense
(414,382
)
(408,380
)
(410,294
)
(429,943
)
(288,554
)
Debt refinancing and redemption charges
—
(48,072
)
(97,548
)
—
(10,963
)
Other income, net
8,734
8,893
2,374
4,787
3,737
Income from continuing operations before income taxes
1,488,895
723,136
1,309,673
1,124,978
1,001,304
Income tax expense
455,813
295,726
446,343
381,013
359,845
Income from continuing operations
1,033,082
427,410
863,330
743,965
641,459
Income from operations of discontinued operations, net of tax(3)
—
—
—
(139
)
(222
)
Gain (Loss) on disposal of discontinued operations, net of tax(3)
—
—
—
13,375
—
Net income
$
1,033,082
$
427,410
$
863,330
$
757,201
$
641,237
Less: Net income attributable to noncontrolling interests
(153,208
)
(157,678
)
(140,216
)
(123,755
)
(105,220
)
Net income attributable to DaVita Inc.
$
879,874
$
269,732
$
723,114
$
633,446
$
536,017
Basic income from continuing operations per share attributable to DaVita Inc.(3)(4)
$
4.36
$
1.27
$
3.41
$
2.95
$
2.79
Diluted income from continuing operations per share attributable to DaVita Inc.(3)(4)
$
4.29
$
1.25
$
3.33
$
2.89
$
2.74
Weighted average shares outstanding:(4)
Basic
201,641,000
211,868,000
212,302,000
209,939,000
192,036,000
Diluted
204,905,000
216,252,000
216,928,000
214,764,000
195,942,000
Ratio of earnings to fixed charges(6)
3.17:1
1.95:1
3.05:1
2.73:1
3.17:1
Balance sheet data:
Working capital(1)
$
1,283,783
$
2,104,142
$
1,547,519
$
600,788
$
546,478
Total assets(1)
18,741,257
18,514,875
17,617,432
16,612,401
15,594,345
Long-term debt(1)
8,947,327
9,001,308
8,298,624
8,064,196
8,230,393
Total DaVita Inc. shareholders equity(4)
4,648,047
4,870,780
5,170,513
4,432,479
3,763,137
(1)
In 2015, we retrospectively adopted ASU 2015-03 related to simplification of debt issuance costs as well as ASU 2015-17 related to classification of deferred taxes. See “New Accounting Standards” below. All prior periods have been recast to conform to the current year presentation.
(2)
Operating expenses and charges in 2016 include estimated goodwill impairment charges of $253,000 related to our DMG reporting units and $28,415 related to our vascular access reporting unit, an impairment of a minority equity investment of $14,993, a gain on the APAC JV ownership changes of $374,374, a gain related to the sale of our Tandigm ownership interest of $40,280, a loss on the sale of our DMG Arizona business of $10,489, an adjustment to reduce receivables associated with the DMG acquisition escrow provision relating to income tax items of $30,934, and an estimated accrual for damages and liabilities associated with our DMG Nevada hospice business of $16,000 and $15,770 associated with our pharmacy business. 2015 included a settlement charge of $495,000 related to a private civil suit, estimated goodwill and intangible asset impairment charges of $210,234, primarily related to certain DMG reporting units, and an estimated accrual for damages and liabilities of $22,530 associated with our pharmacy business. Operating expenses and charges in 2014 and 2013 include an additional $17,000 and $397,000, loss contingency accrual related to the settlement of the 2010 and 2011 U.S. Attorney physician relationship investigations, respectively. Operating expenses and charges in 2013 also include a contingent earn-out obligation gain adjustment of $56,977 related to a decrease in DMG’s 2013 contingent earn-out obligation and an adjustment to reduce a tax asset associated with the DMG acquisition escrow provisions of $7,721. In addition, 2012 included $85,837 for a legal settlement and related expenses, and $30,753 of transaction expenses associated with the acquisition of DMG.
(3)
Income from operations of discontinued operations, net of tax includes the operations for all prior periods presented of HomeChoice Partners Inc. (HomeChoice) which was divested on February 1, 2013.
(4)
In the third quarter of 2013, the Board of Directors approved a two-for-one stock split of our common stock in the form of a stock dividend payable on September 6, 2013 to stockholders of record on August 23, 2013. Our common stock began trading on a post-split basis on September 9, 2013. All share and per share data for all prior periods presented have been adjusted to reflect the effects of the stock split. Share repurchases consisted of 16,649,090 shares of common stock for $1,072,377 in 2016, and 7,779,958 shares of common stock for $575,380 in 2015. Shares issued in connection with stock awards were $1,011,328 in 2016, 1,479,217 in 2015, 2,179,766 in 2014, 1,928,137 in 2013 and 4,751,142 in 2012.
(5)
On November 1, 2012, we completed our acquisition of DMG whereby DMG became a wholly-owned subsidiary of the Company. The total consideration paid for all of the outstanding common units of DMG was approximately $4.71 billion, which consisted of $3.65 billion in cash, net of cash acquired, and 18,760,624 shares of our common stock valued at approximately $1.06 billion. The operating results of DMG are included in our consolidated results beginning November 1, 2012.
(6)
The ratio of earnings to fixed charges was computed by dividing earnings by fixed charges. Earnings for this purpose is defined as pretax income from continuing operations adjusted by adding back fixed charges expensed during the period, less noncontrolling interests. Fixed charges include debt expense (interest expense and the write-off and amortization of deferred financing costs), the estimated interest component of rental expense on operating leases and capitalized interest.
filings.tools