false2023Q3000092706612/310.0015,0000.001450,00091,34890,411nothttp://fasb.org/us-gaap/2023#InterestAndDebtExpense960,934500,0002024-06-282026-12-31250,0002024-12-312025-12-31five yearsadoptionadoptionterminationtermination00009270662023-01-012023-09-3000009270662023-11-03xbrli:shares00009270662023-07-012023-09-30iso4217:USD00009270662022-07-012022-09-3000009270662022-01-012022-09-30iso4217:USDxbrli:shares00009270662023-09-3000009270662022-12-3100009270662021-12-3100009270662022-09-300000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2023-06-300000927066us-gaap:CommonStockMember2023-06-300000927066us-gaap:AdditionalPaidInCapitalMember2023-06-300000927066us-gaap:RetainedEarningsMember2023-06-300000927066us-gaap:TreasuryStockCommonMember2023-06-300000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000927066us-gaap:ParentMember2023-06-300000927066us-gaap:NoncontrollingInterestMember2023-06-300000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2023-07-012023-09-300000927066us-gaap:RetainedEarningsMember2023-07-012023-09-300000927066us-gaap:ParentMember2023-07-012023-09-300000927066us-gaap:NoncontrollingInterestMember2023-07-012023-09-300000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000927066us-gaap:CommonStockMember2023-07-012023-09-300000927066us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2023-09-300000927066us-gaap:CommonStockMember2023-09-300000927066us-gaap:AdditionalPaidInCapitalMember2023-09-300000927066us-gaap:RetainedEarningsMember2023-09-300000927066us-gaap:TreasuryStockCommonMember2023-09-300000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000927066us-gaap:ParentMember2023-09-300000927066us-gaap:NoncontrollingInterestMember2023-09-300000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2022-12-310000927066us-gaap:CommonStockMember2022-12-310000927066us-gaap:AdditionalPaidInCapitalMember2022-12-310000927066us-gaap:RetainedEarningsMember2022-12-310000927066us-gaap:TreasuryStockCommonMember2022-12-310000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000927066us-gaap:ParentMember2022-12-310000927066us-gaap:NoncontrollingInterestMember2022-12-310000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2023-01-012023-09-300000927066us-gaap:RetainedEarningsMember2023-01-012023-09-300000927066us-gaap:ParentMember2023-01-012023-09-300000927066us-gaap:NoncontrollingInterestMember2023-01-012023-09-300000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000927066us-gaap:CommonStockMember2023-01-012023-09-300000927066us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2022-06-300000927066us-gaap:CommonStockMember2022-06-300000927066us-gaap:AdditionalPaidInCapitalMember2022-06-300000927066us-gaap:RetainedEarningsMember2022-06-300000927066us-gaap:TreasuryStockCommonMember2022-06-300000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000927066us-gaap:ParentMember2022-06-300000927066us-gaap:NoncontrollingInterestMember2022-06-300000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2022-07-012022-09-300000927066us-gaap:RetainedEarningsMember2022-07-012022-09-300000927066us-gaap:ParentMember2022-07-012022-09-300000927066us-gaap:NoncontrollingInterestMember2022-07-012022-09-300000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000927066us-gaap:CommonStockMember2022-07-012022-09-300000927066us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000927066us-gaap:TreasuryStockCommonMember2022-07-012022-09-300000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2022-09-300000927066us-gaap:CommonStockMember2022-09-300000927066us-gaap:AdditionalPaidInCapitalMember2022-09-300000927066us-gaap:RetainedEarningsMember2022-09-300000927066us-gaap:TreasuryStockCommonMember2022-09-300000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000927066us-gaap:ParentMember2022-09-300000927066us-gaap:NoncontrollingInterestMember2022-09-300000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2021-12-310000927066us-gaap:CommonStockMember2021-12-310000927066us-gaap:AdditionalPaidInCapitalMember2021-12-310000927066us-gaap:RetainedEarningsMember2021-12-310000927066us-gaap:TreasuryStockCommonMember2021-12-310000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000927066us-gaap:ParentMember2021-12-310000927066us-gaap:NoncontrollingInterestMember2021-12-310000927066dva:TemporaryEquityRedeemableNoncontrollingInterestsMember2022-01-012022-09-300000927066us-gaap:RetainedEarningsMember2022-01-012022-09-300000927066us-gaap:ParentMember2022-01-012022-09-300000927066us-gaap:NoncontrollingInterestMember2022-01-012022-09-300000927066us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000927066us-gaap:CommonStockMember2022-01-012022-09-300000927066us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300000927066us-gaap:TreasuryStockCommonMember2022-01-012022-09-300000927066dva:MedicareandMedicareAdvantageMemberdva:USDialysisAndRelatedLabServicesMember2023-07-012023-09-300000927066dva:MedicareandMedicareAdvantageMember2023-07-012023-09-300000927066dva:MedicareandMedicareAdvantageMemberdva:USDialysisAndRelatedLabServicesMember2022-07-012022-09-300000927066dva:MedicareandMedicareAdvantageMember2022-07-012022-09-300000927066dva:USDialysisAndRelatedLabServicesMemberdva:MedicaidandManagedMedicaidMember2023-07-012023-09-300000927066dva:MedicaidandManagedMedicaidMember2023-07-012023-09-300000927066dva:USDialysisAndRelatedLabServicesMemberdva:MedicaidandManagedMedicaidMember2022-07-012022-09-300000927066dva:MedicaidandManagedMedicaidMember2022-07-012022-09-300000927066dva:OtherGovernmentPayorsMemberdva:USDialysisAndRelatedLabServicesMember2023-07-012023-09-300000927066dva:OtherGovernmentPayorsMemberus-gaap:AllOtherSegmentsMember2023-07-012023-09-300000927066dva:OtherGovernmentPayorsMember2023-07-012023-09-300000927066dva:OtherGovernmentPayorsMemberdva:USDialysisAndRelatedLabServicesMember2022-07-012022-09-300000927066dva:OtherGovernmentPayorsMemberus-gaap:AllOtherSegmentsMember2022-07-012022-09-300000927066dva:OtherGovernmentPayorsMember2022-07-012022-09-300000927066dva:USDialysisAndRelatedLabServicesMemberdva:CommercialPayorsMember2023-07-012023-09-300000927066us-gaap:AllOtherSegmentsMemberdva:CommercialPayorsMember2023-07-012023-09-300000927066dva:CommercialPayorsMember2023-07-012023-09-300000927066dva:USDialysisAndRelatedLabServicesMemberdva:CommercialPayorsMember2022-07-012022-09-300000927066us-gaap:AllOtherSegmentsMemberdva:CommercialPayorsMember2022-07-012022-09-300000927066dva:CommercialPayorsMember2022-07-012022-09-300000927066us-gaap:AllOtherSegmentsMemberdva:MedicareandMedicareAdvantageMember2023-07-012023-09-300000927066us-gaap:AllOtherSegmentsMemberdva:MedicareandMedicareAdvantageMember2022-07-012022-09-300000927066us-gaap:AllOtherSegmentsMemberdva:MedicaidandManagedMedicaidMember2023-07-012023-09-300000927066us-gaap:AllOtherSegmentsMemberdva:MedicaidandManagedMedicaidMember2022-07-012022-09-300000927066dva:OtherSourcesofRevenueMemberdva:USDialysisAndRelatedLabServicesMember2023-07-012023-09-300000927066us-gaap:AllOtherSegmentsMemberdva:OtherSourcesofRevenueMember2023-07-012023-09-300000927066dva:OtherSourcesofRevenueMember2023-07-012023-09-300000927066dva:OtherSourcesofRevenueMemberdva:USDialysisAndRelatedLabServicesMember2022-07-012022-09-300000927066us-gaap:AllOtherSegmentsMemberdva:OtherSourcesofRevenueMember2022-07-012022-09-300000927066dva:OtherSourcesofRevenueMember2022-07-012022-09-300000927066us-gaap:IntersegmentEliminationMemberdva:USDialysisAndRelatedLabServicesMember2023-07-012023-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:IntersegmentEliminationMember2023-07-012023-09-300000927066us-gaap:IntersegmentEliminationMember2023-07-012023-09-300000927066us-gaap:IntersegmentEliminationMemberdva:USDialysisAndRelatedLabServicesMember2022-07-012022-09-300000927066us-gaap:IntersegmentEliminationMember2022-07-012022-09-300000927066dva:USDialysisAndRelatedLabServicesMember2023-07-012023-09-300000927066us-gaap:AllOtherSegmentsMember2023-07-012023-09-300000927066dva:USDialysisAndRelatedLabServicesMember2022-07-012022-09-300000927066us-gaap:AllOtherSegmentsMember2022-07-012022-09-300000927066dva:MedicareandMedicareAdvantageMemberdva:USDialysisAndRelatedLabServicesMember2023-01-012023-09-300000927066dva:MedicareandMedicareAdvantageMember2023-01-012023-09-300000927066dva:MedicareandMedicareAdvantageMemberdva:USDialysisAndRelatedLabServicesMember2022-01-012022-09-300000927066dva:MedicareandMedicareAdvantageMember2022-01-012022-09-300000927066dva:USDialysisAndRelatedLabServicesMemberdva:MedicaidandManagedMedicaidMember2023-01-012023-09-300000927066dva:MedicaidandManagedMedicaidMember2023-01-012023-09-300000927066dva:USDialysisAndRelatedLabServicesMemberdva:MedicaidandManagedMedicaidMember2022-01-012022-09-300000927066dva:MedicaidandManagedMedicaidMember2022-01-012022-09-300000927066dva:OtherGovernmentPayorsMemberdva:USDialysisAndRelatedLabServicesMember2023-01-012023-09-300000927066dva:OtherGovernmentPayorsMemberus-gaap:AllOtherSegmentsMember2023-01-012023-09-300000927066dva:OtherGovernmentPayorsMember2023-01-012023-09-300000927066dva:OtherGovernmentPayorsMemberdva:USDialysisAndRelatedLabServicesMember2022-01-012022-09-300000927066dva:OtherGovernmentPayorsMemberus-gaap:AllOtherSegmentsMember2022-01-012022-09-300000927066dva:OtherGovernmentPayorsMember2022-01-012022-09-300000927066dva:USDialysisAndRelatedLabServicesMemberdva:CommercialPayorsMember2023-01-012023-09-300000927066us-gaap:AllOtherSegmentsMemberdva:CommercialPayorsMember2023-01-012023-09-300000927066dva:CommercialPayorsMember2023-01-012023-09-300000927066dva:USDialysisAndRelatedLabServicesMemberdva:CommercialPayorsMember2022-01-012022-09-300000927066us-gaap:AllOtherSegmentsMemberdva:CommercialPayorsMember2022-01-012022-09-300000927066dva:CommercialPayorsMember2022-01-012022-09-300000927066us-gaap:AllOtherSegmentsMemberdva:MedicareandMedicareAdvantageMember2023-01-012023-09-300000927066us-gaap:AllOtherSegmentsMemberdva:MedicareandMedicareAdvantageMember2022-01-012022-09-300000927066us-gaap:AllOtherSegmentsMemberdva:MedicaidandManagedMedicaidMember2023-01-012023-09-300000927066us-gaap:AllOtherSegmentsMemberdva:MedicaidandManagedMedicaidMember2022-01-012022-09-300000927066dva:OtherSourcesofRevenueMemberdva:USDialysisAndRelatedLabServicesMember2023-01-012023-09-300000927066us-gaap:AllOtherSegmentsMemberdva:OtherSourcesofRevenueMember2023-01-012023-09-300000927066dva:OtherSourcesofRevenueMember2023-01-012023-09-300000927066dva:OtherSourcesofRevenueMemberdva:USDialysisAndRelatedLabServicesMember2022-01-012022-09-300000927066us-gaap:AllOtherSegmentsMemberdva:OtherSourcesofRevenueMember2022-01-012022-09-300000927066dva:OtherSourcesofRevenueMember2022-01-012022-09-300000927066us-gaap:IntersegmentEliminationMemberdva:USDialysisAndRelatedLabServicesMember2023-01-012023-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:IntersegmentEliminationMember2023-01-012023-09-300000927066us-gaap:IntersegmentEliminationMember2023-01-012023-09-300000927066us-gaap:IntersegmentEliminationMemberdva:USDialysisAndRelatedLabServicesMember2022-01-012022-09-300000927066us-gaap:IntersegmentEliminationMember2022-01-012022-09-300000927066dva:USDialysisAndRelatedLabServicesMember2023-01-012023-09-300000927066us-gaap:AllOtherSegmentsMember2023-01-012023-09-300000927066dva:USDialysisAndRelatedLabServicesMember2022-01-012022-09-300000927066us-gaap:AllOtherSegmentsMember2022-01-012022-09-300000927066dva:CertificatesOfDepositCommercialPaperAndMoneyMarketFundsMember2023-09-300000927066dva:CertificatesOfDepositCommercialPaperAndMoneyMarketFundsMember2022-12-310000927066dva:MutualFundsAndCommonStockMember2023-09-300000927066dva:MutualFundsAndCommonStockMember2022-12-310000927066us-gaap:ShortTermInvestmentsMember2023-09-300000927066us-gaap:ShortTermInvestmentsMember2022-12-310000927066us-gaap:OtherLongTermInvestmentsMember2023-09-300000927066us-gaap:OtherLongTermInvestmentsMember2022-12-310000927066dva:USDialysisAndRelatedLabServicesMember2021-12-310000927066us-gaap:AllOtherSegmentsMember2021-12-310000927066dva:USDialysisAndRelatedLabServicesMember2022-01-012022-12-310000927066us-gaap:AllOtherSegmentsMember2022-01-012022-12-3100009270662022-01-012022-12-310000927066dva:USDialysisAndRelatedLabServicesMember2022-12-310000927066us-gaap:AllOtherSegmentsMember2022-12-310000927066dva:USDialysisAndRelatedLabServicesMember2023-09-300000927066us-gaap:AllOtherSegmentsMember2023-09-300000927066dva:OtherReportingUnitsMember2023-07-012023-09-30dva:segment0000927066dva:AgreementWithMedtronicMember2023-09-300000927066dva:DeconsolidatedNoncontrollingEntityMember2023-09-300000927066dva:DeconsolidatedNoncontrollingEntityMember2022-12-310000927066us-gaap:OtherOwnershipInterestMember2023-09-300000927066us-gaap:OtherOwnershipInterestMember2022-12-310000927066us-gaap:EquitySecuritiesMember2023-09-300000927066us-gaap:EquitySecuritiesMember2022-12-310000927066dva:EquityMethodInvestmentsInNonconsolidatedDialysisPartnershipsMember2023-01-012023-09-300000927066dva:EquityMethodInvestmentsInNonconsolidatedDialysisPartnershipsMember2022-01-012022-09-300000927066us-gaap:OtherNonoperatingIncomeExpenseMember2023-01-012023-09-300000927066us-gaap:OtherNonoperatingIncomeExpenseMember2022-01-012022-09-300000927066dva:AgreementWithMedtronicMember2023-04-012023-04-010000927066dva:AgreementWithMedtronicMember2023-04-01xbrli:pure0000927066dva:AgreementWithMedtronicMember2023-04-010000927066dva:TermLoanA1Member2023-09-300000927066dva:TermLoanA1Memberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-01-012023-09-300000927066dva:TermLoanB1Member2023-09-300000927066dva:TermLoanB1Member2022-12-310000927066dva:TermLoanB1Member2023-01-012023-09-300000927066us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberdva:TermLoanB1Member2023-01-012023-09-300000927066us-gaap:RevolvingCreditFacilityMember2023-09-300000927066us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-01-012023-09-300000927066dva:PriorTermLoanAMember2023-09-300000927066dva:PriorTermLoanAMember2022-12-310000927066dva:PriorTermLoanAMember2023-01-012023-09-300000927066dva:PriorRevolvingLineOfCreditMember2023-09-300000927066dva:PriorRevolvingLineOfCreditMember2022-12-310000927066dva:PriorRevolvingLineOfCreditMember2023-01-012023-09-300000927066dva:SeniorNotesFourPointSixTwoFivePercentDueTwentyThirtyMember2023-09-300000927066dva:SeniorNotesFourPointSixTwoFivePercentDueTwentyThirtyMember2022-12-310000927066dva:SeniorNotesFourPointSixTwoFivePercentDueTwentyThirtyMember2023-01-012023-09-300000927066dva:SeniorNotesThreePointSevenFivePercentDueTwentyThirtyOneMember2023-09-300000927066dva:SeniorNotesThreePointSevenFivePercentDueTwentyThirtyOneMember2022-12-310000927066dva:SeniorNotesThreePointSevenFivePercentDueTwentyThirtyOneMember2023-01-012023-09-300000927066us-gaap:NotesPayableOtherPayablesMember2023-09-300000927066us-gaap:NotesPayableOtherPayablesMember2022-12-310000927066us-gaap:NotesPayableOtherPayablesMember2023-01-012023-09-300000927066dva:FinanceLeaseMember2023-09-300000927066dva:FinanceLeaseMember2022-12-310000927066dva:FinanceLeaseMember2023-01-012023-09-300000927066us-gaap:RevolvingCreditFacilityMemberdva:TermLoanA1Memberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:SubsequentEventMember2023-10-012023-12-310000927066dva:TermLoanA1Member2023-07-012023-09-300000927066dva:TermLoanA1Memberus-gaap:RevolvingCreditFacilityMember2023-07-012023-09-300000927066dva:LondonInterbankOfferRateMemberdva:PriorRevolvingLineOfCreditMemberdva:PriorTermLoanAMember2023-01-012023-03-310000927066dva:SeniorSecuredCreditFacilitiesMember2023-09-300000927066us-gaap:SeniorNotesMember2023-09-300000927066dva:SeniorSecuredCreditFacilitiesMember2022-12-310000927066us-gaap:SeniorNotesMember2022-12-310000927066dva:TermLoanB1Member2023-04-032023-04-030000927066us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberdva:TermLoanB1Member2023-07-012023-09-300000927066srt:MinimumMemberdva:TermLoanB1Member2023-07-012023-09-300000927066us-gaap:RevolvingCreditFacilityMemberdva:TermLoanA1Membersrt:MinimumMember2023-07-012023-09-300000927066us-gaap:AdjustableRateLoansMemberdva:TermLoanB1Member2023-07-012023-09-300000927066dva:TermLoanA1Member2023-04-282023-04-280000927066dva:TermLoanA1Member2023-04-280000927066us-gaap:RevolvingCreditFacilityMember2023-04-280000927066us-gaap:AdjustableRateLoansMemberus-gaap:RevolvingCreditFacilityMemberdva:TermLoanA1Member2023-07-012023-09-300000927066us-gaap:RevolvingCreditFacilityMemberdva:TermLoanA1Memberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-07-012023-09-300000927066us-gaap:RevolvingCreditFacilityMemberdva:TermLoanA1Membersrt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-07-012023-09-300000927066us-gaap:RevolvingCreditFacilityMemberdva:TermLoanA1Memberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:MaximumMember2023-07-012023-09-300000927066dva:NewCreditAgreementAmendedMembersrt:MaximumMember2023-09-300000927066us-gaap:RevolvingCreditFacilityMember2023-04-282023-04-280000927066dva:PriorTermLoanAAndPriorRevolvingLineOfCreditMember2023-04-012023-06-300000927066dva:TermLoanA1Member2023-01-012023-09-3000009270662023-04-012023-06-300000927066dva:PriorTermLoanAMember2023-04-012023-06-300000927066dva:PriorRevolvingLineOfCreditMember2023-04-012023-06-300000927066srt:MaximumMemberdva:TermLoanFacilityMemberdva:A2019InterestRateCapAgreementsEffectiveJune302020Member2023-09-300000927066srt:MaximumMemberdva:TermLoanFacilityMemberdva:A2019InterestRateCapAgreementsEffectiveJune302020Member2023-01-012023-09-300000927066dva:A2019InterestRateCapAgreementsEffectiveJune302020Member2023-01-012023-09-300000927066us-gaap:CashFlowHedgingMemberdva:A2019InterestRateCapAgreementsEffectiveJune302020Member2023-01-012023-09-300000927066us-gaap:OtherNoncurrentAssetsMemberdva:A2019InterestRateCapAgreementsEffectiveJune302020Member2023-09-300000927066us-gaap:OtherNoncurrentAssetsMemberdva:A2019InterestRateCapAgreementsEffectiveJune302020Member2022-12-310000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820241Membersrt:MaximumMemberdva:TermLoanFacilityMember2023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820241Membersrt:MaximumMemberdva:TermLoanFacilityMember2023-01-012023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820241Member2023-01-012023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820241Memberus-gaap:CashFlowHedgingMember2023-01-012023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820241Memberus-gaap:OtherNoncurrentAssetsMember2023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820242Membersrt:MaximumMemberdva:TermLoanFacilityMember2023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820242Member2023-01-012023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820242Memberus-gaap:CashFlowHedgingMember2023-01-012023-09-300000927066us-gaap:OtherNoncurrentAssetsMemberdva:A2023InterestRateCapAgreementsEffectiveJune2820242Member2023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820244Membersrt:MaximumMemberdva:TermLoanFacilityMember2023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820244Member2023-01-012023-09-300000927066us-gaap:CashFlowHedgingMemberdva:A2023InterestRateCapAgreementsEffectiveJune2820244Member2023-01-012023-09-300000927066us-gaap:OtherNoncurrentAssetsMemberdva:A2023InterestRateCapAgreementsEffectiveJune2820244Member2023-09-300000927066srt:MaximumMemberdva:TermLoanFacilityMemberdva:A2023InterestRateCapAgreementsEffectiveJune3020243Member2023-09-300000927066srt:MaximumMemberdva:TermLoanFacilityMemberdva:A2023InterestRateCapAgreementsEffectiveJune3020243Member2023-01-012023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune3020243Member2023-01-012023-09-300000927066us-gaap:CashFlowHedgingMemberdva:A2023InterestRateCapAgreementsEffectiveJune3020243Member2023-01-012023-09-300000927066us-gaap:OtherNoncurrentAssetsMemberdva:A2023InterestRateCapAgreementsEffectiveJune3020243Member2023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820242Membersrt:MaximumMemberdva:TermLoanFacilityMember2023-01-012023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820242Membersrt:MaximumMemberus-gaap:SubsequentEventMemberdva:TermLoanFacilityMember2025-01-012025-01-010000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820244Membersrt:MaximumMemberdva:TermLoanFacilityMember2023-01-012023-09-300000927066dva:A2023InterestRateCapAgreementsEffectiveJune2820244Membersrt:MaximumMemberus-gaap:SubsequentEventMemberdva:TermLoanFacilityMember2025-01-012025-01-010000927066us-gaap:LetterOfCreditMember2023-09-300000927066dva:BilateralSecuredLetterOfCreditFacilityMember2023-09-300000927066dva:October2023InterestRateCapAgreementsEffectiveJune282024Membersrt:MaximumMemberus-gaap:SubsequentEventMemberdva:TermLoanFacilityMember2023-10-180000927066dva:October2023InterestRateCapAgreementsEffectiveJune282024Memberus-gaap:SubsequentEventMember2023-10-182023-10-180000927066dva:October2023InterestRateCapAgreementsEffectiveDecember312024Membersrt:MaximumMemberus-gaap:SubsequentEventMemberdva:TermLoanFacilityMember2023-10-180000927066dva:October2023InterestRateCapAgreementsEffectiveDecember312024Memberus-gaap:SubsequentEventMember2023-10-182023-10-1800009270662019-10-222019-10-220000927066dva:CommitmentsToProvideOperatingCapitalMember2023-09-300000927066us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300000927066us-gaap:SubsequentEventMember2023-10-012023-11-030000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2023-06-300000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-06-300000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-06-300000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2023-07-012023-09-300000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-07-012023-09-300000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-07-012023-09-300000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-09-300000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-09-300000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-09-300000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2022-06-300000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-06-300000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-06-300000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2021-12-310000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-12-310000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-12-310000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2022-07-012022-09-300000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-07-012022-09-300000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-07-012022-09-300000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-09-300000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-09-300000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-09-300000927066us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2022-09-300000927066us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-09-300000927066us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-09-300000927066us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-09-300000927066us-gaap:FairValueMeasurementsRecurringMember2023-09-300000927066us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000927066us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-09-300000927066us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000927066us-gaap:InterestRateCapMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000927066us-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateCapMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000927066us-gaap:InterestRateCapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000927066us-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateCapMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000927066srt:MaximumMember2023-01-012023-09-300000927066dva:OtherCompaniesMemberdva:EBITDAOperatingIncomePerformanceTargetsOrQualityMarginsMembersrt:MinimumMember2023-01-012023-09-300000927066dva:OtherCompaniesMemberdva:EBITDAOperatingIncomePerformanceTargetsOrQualityMarginsMembersrt:MaximumMember2023-01-012023-09-300000927066dva:ExternalSourcesMemberdva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300000927066dva:ExternalSourcesMemberdva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300000927066dva:ExternalSourcesMemberdva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300000927066dva:ExternalSourcesMemberdva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300000927066us-gaap:IntersubsegmentEliminationsMemberdva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300000927066us-gaap:IntersubsegmentEliminationsMemberdva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300000927066us-gaap:IntersubsegmentEliminationsMemberdva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300000927066us-gaap:IntersubsegmentEliminationsMemberdva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300000927066dva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300000927066dva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300000927066dva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300000927066dva:USDialysisAndRelatedLabServicesMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:IntersubsegmentEliminationsMemberus-gaap:OperatingSegmentsMember2023-07-012023-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:IntersubsegmentEliminationsMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:IntersubsegmentEliminationsMemberus-gaap:OperatingSegmentsMember2023-01-012023-09-300000927066us-gaap:AllOtherSegmentsMemberus-gaap:IntersubsegmentEliminationsMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300000927066us-gaap:OperatingSegmentsMember2023-07-012023-09-300000927066us-gaap:OperatingSegmentsMember2022-07-012022-09-300000927066us-gaap:OperatingSegmentsMember2023-01-012023-09-300000927066us-gaap:OperatingSegmentsMember2022-01-012022-09-300000927066dva:AccountingStandardsUpdateMember2023-07-01



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2023
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission File Number: 1-14106
logoa33.jpg
DAVITA INC.
Delaware 51-0354549
(State of incorporation) (I.R.S. Employer Identification No.)
2000 16th Street
Denver,CO80202
Telephone number (720631-2100
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: Trading symbol(s):Name of each exchange on which registered:
Common Stock, $0.001 par value DVANYSE
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
    
Non-accelerated filer☐ Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes      No  ☒
As of November 3, 2023, the number of shares of the registrant’s common stock outstanding was approximately 91.3 million shares.



DAVITA INC.
INDEX

   Page No.
  PART I. FINANCIAL INFORMATION 
    
Item 1.  
  
  
  
  
  
  
Item 2. 
Item 3. 
Item 4. 
    
  PART II. OTHER INFORMATION 
Item 1. 
Item 1A. 
Item 2. 
Item 3.
Item 4.
Item 5.
Item 6. 
  
    

i



DAVITA INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(dollars and shares in thousands, except per share data)


Three months ended September 30,Nine months ended September 30,
 2023202220232022
Dialysis patient service revenues$2,951,950 $2,846,494 $8,602,669 $8,372,874 
Other revenues169,382 102,200 391,731 320,132 
Total revenues3,121,332 2,948,694 8,994,400 8,693,006 
Operating expenses:    
Patient care costs2,067,315 2,085,555 6,181,348 6,120,872 
General and administrative376,883 365,447 1,072,513 975,486 
Depreciation and amortization188,423 194,414 550,166 538,534 
Equity investment income, net(7,228)(8,509)(22,502)(24,696)
Total operating expenses2,625,393 2,636,907 7,781,525 7,610,196 
Operating income495,939 311,787 1,212,875 1,082,810 
Debt expense(98,080)(99,680)(302,361)(256,057)
Debt extinguishment and modification costs  (7,962) 
Other loss, net(19,650)(4,898)(14,525)(7,968)
Income before income taxes378,209 207,209 888,027 818,785 
Income tax expense68,848 42,515 161,621 163,757 
Net income309,361 164,694 726,406 655,028 
Less: Net income attributable to noncontrolling interests(62,729)(59,328)(185,536)(162,731)
Net income attributable to DaVita Inc.$246,632 $105,366 $540,870 $492,297 
Earnings per share attributable to DaVita Inc.:  
Basic net income$2.70 $1.16 $5.95 $5.24 
Diluted net income$2.62 $1.13 $5.80 $5.07 
Weighted average shares for earnings per share:
Basic shares91,322 91,160 90,937 93,959 
Diluted shares94,041 93,263 93,317 97,153 
See notes to condensed consolidated financial statements.
1


DAVITA INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
(dollars in thousands)
Three months ended September 30,Nine months ended September 30,
 2023202220232022
Net income$309,361 $164,694 $726,406 $655,028 
Other comprehensive (loss) income, net of tax:  
Unrealized gains on interest rate cap agreements:  
Unrealized gains6,996 41,312 28,305 95,660 
Reclassifications of net realized (gains) losses into net income(21,198)1,033 (55,895)3,100 
Unrealized (losses) gains on foreign currency translation:(47,644)(66,100)27,878 (95,064)
Other comprehensive (loss) income(61,846)(23,755)288 3,696 
Total comprehensive income247,515 140,939 726,694 658,724 
Less: Comprehensive income attributable to noncontrolling interests(62,729)(59,328)(185,536)(162,731)
Comprehensive income attributable to DaVita Inc.$184,786 $81,611 $541,158 $495,993 
 See notes to condensed consolidated financial statements.

2


DAVITA INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars and shares in thousands, except per share data)
September 30, 2023December 31, 2022
ASSETS  
Cash and cash equivalents$449,458 $244,086 
Restricted cash and equivalents95,667 94,903 
Short-term investments11,713 77,693 
Accounts receivable2,024,827 2,132,070 
Inventories109,620 109,122 
Other receivables352,965 413,976 
Prepaid and other current assets91,109 78,839 
Income tax receivable 4,603 
Total current assets3,135,359 3,155,292 
Property and equipment, net of accumulated depreciation of $5,650,912 and $5,265,372, respectively
3,097,483 3,256,397 
Operating lease right-of-use assets2,509,416 2,666,242 
Intangible assets, net of accumulated amortization of $37,738 and $49,772, respectively
185,403 182,687 
Equity method and other investments565,394 231,108 
Long-term investments45,320 44,329 
Other long-term assets302,142 315,587 
Goodwill7,088,223 7,076,610 
 $16,928,740 $16,928,252 
LIABILITIES AND EQUITY  
Accounts payable$435,417 $479,780 
Other liabilities808,000 802,469 
Accrued compensation and benefits770,184 692,654 
Current portion of operating lease liabilities393,440 395,401 
Current portion of long-term debt108,558 231,404 
Income tax payable22,331 18,039 
Total current liabilities2,537,930 2,619,747 
Long-term operating lease liabilities2,342,170 2,503,068 
Long-term debt8,285,146 8,692,617 
Other long-term liabilities184,944 105,233 
Deferred income taxes753,871 782,787 
Total liabilities14,104,061 14,703,452 
Commitments and contingencies
Noncontrolling interests subject to put provisions1,445,403 1,348,908 
Equity:  
Preferred stock ($0.001 par value, 5,000 shares authorized; none issued)
  
Common stock ($0.001 par value, 450,000 shares authorized; 91,348 and 90,411 shares issued
 and outstanding at September 30, 2023 and December 31, 2022, respectively)
91 90 
Additional paid-in capital552,651 606,935 
Retained earnings715,357 174,487 
Accumulated other comprehensive loss(68,898)(69,186)
Total DaVita Inc. shareholders' equity1,199,201 712,326 
Noncontrolling interests not subject to put provisions180,075 163,566 
Total equity1,379,276 875,892 
 $16,928,740 $16,928,252 
See notes to condensed consolidated financial statements.
3


DAVITA INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(unaudited)
(dollars in thousands)
Nine months ended September 30,
 20232022
Cash flows from operating activities:  
Net income$726,406 $655,028 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation and amortization550,166 538,534 
Loss on extinguishment of debt7,132  
Stock-based compensation expense82,313 77,904 
Deferred income taxes(17,767)(35,637)
Equity investment loss (income), net40,121 (417)
Other non-cash charges, net1,633 16,035 
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Accounts receivable118,148 (135,632)
Other current assets32,132 43,739 
Other long-term assets1,101 (49,326)
Accounts payable(33,837)38,870 
Accrued compensation and benefits65,279 35,491 
Other current liabilities10,822 87,248 
Income taxes(1,878)(37,770)
Other long-term liabilities(7,945)(13,219)
Net cash provided by operating activities1,573,826 1,220,848 
Cash flows from investing activities: 
Additions of property and equipment(409,011)(409,391)
Acquisitions(7,990)(43,811)
Proceeds from asset and business sales24,907 116,088 
Purchase of debt investments held-to-maturity(30,419)(94,602)
Purchase of other debt and equity investments(6,693)(3,322)
Proceeds from debt investments held-to-maturity94,414 40,660 
Proceeds from sale of other debt and equity investments3,930 3,763 
Other (782)
Purchase of equity method investments(276,006)(28,176)
Distributions from equity method investments3,364 2,490 
Net cash used in investing activities(603,504)(417,083)
Cash flows from financing activities:
Borrowings2,468,335 1,705,913 
Payments on long-term debt(2,992,248)(1,557,358)
Deferred and debt related financing costs(53,466) 
Purchase of treasury stock (802,228)
Distributions to noncontrolling interests(203,381)(188,592)
Net payments related to stock purchases and awards(41,155)(42,248)
Contributions from noncontrolling interests11,579 11,382 
Proceeds from sales of additional noncontrolling interests50,962 3,673 
Purchases of noncontrolling interests(7,875)(20,770)
Net cash used in financing activities(767,249)(890,228)
Effect of exchange rate changes on cash, cash equivalents and restricted cash3,063 (6,283)
Net increase (decrease) in cash, cash equivalents and restricted cash206,136 (92,746)
Cash, cash equivalents and restricted cash at beginning of the year338,989 554,960 
Cash, cash equivalents and restricted cash at end of the period$545,125 $462,214 
    See notes to condensed consolidated financial statements.
4


DAVITA INC.
CONSOLIDATED STATEMENTS OF EQUITY
(unaudited)
(dollars and shares in thousands)
Three months ended September 30, 2023
 Non-
controlling
interests
subject to
put provisions
DaVita Inc. Shareholders’ EquityNon-
controlling
interests not
subject to
put provisions
 Common stockAdditional
paid-in
capital
Retained
earnings
Treasury stockAccumulated
other
comprehensive
loss
 SharesAmountSharesAmountTotal
Balance at June 30, 2023$1,423,549 91,271 $91 $555,680 $468,725  $ $(7,052)$1,017,444 $188,626 
Comprehensive income:
Net income44,572 246,632 246,632 18,157 
Other comprehensive income(61,846)(61,846)
Stock award plan77 (4,750)(4,750)
Stock-settled stock-based
 compensation expense
27,071 27,071 
Changes in noncontrolling interest
 from:
Distributions(52,382)(26,821)
Contributions4,493 140 
Partial purchases(179)(179)(27)
Fair value remeasurements25,171 (25,171)(25,171)
Balance at September 30, 2023$1,445,403 91,348 $91 $552,651 $715,357  $ $(68,898)$1,199,201 $180,075 
                                                
Nine months ended September 30, 2023
 Non-
controlling
interests
subject to
put provisions
DaVita Inc. Shareholders’ EquityNon-
controlling
interests not
subject to
put provisions
 Common stockAdditional
paid-in
capital
Retained
earnings
Treasury stockAccumulated
other
comprehensive
loss
 SharesAmountSharesAmountTotal
Balance at December 31, 2022$1,348,908 90,411 $90 $606,935 $174,487  $ $(69,186)$712,326 $163,566 
Comprehensive income:
Net income131,523 540,870 540,870 54,013 
Other comprehensive income288 288 
Stock award plan937 1 (53,353)(53,352)
Stock-settled stock-based
 compensation expense
80,579 80,579 
Changes in noncontrolling interest
 from:
Distributions(133,656)(69,725)
Contributions10,102 1,477 
Acquisitions and divestitures13,077 13,077 30,776 
Partial purchases(700)(5,361)(5,361)(32)
Fair value remeasurements89,226 (89,226)(89,226)
Balance at September 30, 2023$1,445,403 91,348 $91 $552,651 $715,357  $ $(68,898)$1,199,201 $180,075 
See notes to condensed consolidated financial statements.


5


DAVITA INC.
CONSOLIDATED STATEMENTS OF EQUITY
(unaudited)
(dollars and shares in thousands)
Three months ended September 30, 2022
 Non-
controlling
interests
subject to
put provisions
DaVita Inc. Shareholders’ EquityNon-
controlling
interests not
subject to
put provisions
 Common stockAdditional
paid-in
capital
Retained
earnings
Treasury stockAccumulated
other
comprehensive
loss
 
 SharesAmountSharesAmountTotal
Balance at June 30, 2022$1,385,821 98,179 $98 $578,272 $741,268 (5,973)$(603,058)$(111,796)$604,784 $170,390 
Comprehensive income:
Net income39,205 105,366 105,366 20,123 
Other comprehensive loss(23,755)(23,755)
Stock purchase shares issued
Stock award plan20 (986)(986)
Stock-settled stock-based
 compensation expense
27,619 27,619 
Changes in noncontrolling interest
 from:
Distributions(48,275)(22,002)
Contributions1,996 270 
Acquisitions and divestitures867 
Partial purchases(215)(3,339)(3,339)(193)
Fair value remeasurements(7,779)7,779 7,779 
Purchase of treasury stock(2,122)(184,796)(184,796)
Balance at September 30, 2022$1,370,753 98,199 $98 $609,345 $846,634 (8,095)$(787,854)$(135,551)$532,672 $169,455 
    

Nine months ended September 30, 2022
 Non-
controlling
interests
subject to
put provisions
DaVita Inc. Shareholders’ EquityNon-
controlling
interests not
subject to
put provisions
 Common stockAdditional
paid-in
capital
Retained
earnings
Treasury stockAccumulated
other
comprehensive
loss
 
 SharesAmountSharesAmountTotal
Balance at December 31, 2021$1,434,832 97,289 $97 $540,321 $354,337  $ $(139,247)$755,508 $180,640 
Comprehensive income:
Net income113,157 492,297 492,297 49,574 
Other comprehensive income3,696 3,696 
Stock award plan9101(55,359)(55,358)
Stock-settled stock-based
 compensation expense
77,835 77,835 
Changes in noncontrolling interest
 from:
Distributions(125,534)(63,058)
Contributions9,300 2,082 
Acquisitions and divestitures2,392 939 939 867 
Partial purchases(11,633)(6,609)(6,609)(193)
Fair value remeasurements(52,218)52,218 52,218 
Other457 (457)
Purchase of treasury stock(8,095)(787,854)(787,854)
Balance at September 30, 2022$1,370,753 98,199 $98 $609,345 $846,634 (8,095)$(787,854)$(135,551)$532,672 $169,455 
    

See notes to condensed consolidated financial statements.
6


DAVITA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(dollars and shares in thousands, except per share data)

Unless otherwise indicated in this Quarterly Report on Form 10-Q, "the Company", "we", "us", "our" and similar terms refer to DaVita Inc. and its consolidated subsidiaries.
1.     Condensed consolidated interim financial statements
The unaudited condensed consolidated interim financial statements included in this report are prepared by the Company. In the opinion of management, all adjustments necessary for a fair presentation of the results of operations are reflected in these condensed consolidated interim financial statements. All significant intercompany accounts and transactions have been eliminated. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, contingencies and noncontrolling interests subject to put provisions. The most significant estimates and assumptions underlying these financial statements and accompanying notes generally involve revenue recognition and accounts receivable, certain fair value estimates, accounting for income taxes and loss contingencies. The results of operations reflected in these interim financial statements may not necessarily be indicative of annual operating results. These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (2022 10-K). Prior period classifications conform to the current period presentation. The Company has evaluated subsequent events through the date these condensed consolidated interim financial statements were issued and has included all necessary adjustments and disclosures.
2.     Revenue recognition
The following tables summarize the Company's segment revenues by primary payor source:
Three months ended September 30, 2023Three months ended September 30, 2022
U.S. dialysisOther — Ancillary servicesConsolidatedU.S. dialysisOther — Ancillary servicesConsolidated
Dialysis patient service revenues:
Medicare and Medicare Advantage$1,515,860 $1,515,860 $1,535,680 $1,535,680 
Medicaid and Managed Medicaid207,327 207,327 193,853 193,853 
Other government90,549 $128,980 219,529 86,852 $116,084 202,936 
Commercial965,331 68,192 1,033,523 880,812 56,170 936,982 
Other revenues:
Medicare and Medicare Advantage137,149 137,149 78,345 78,345 
Medicaid and Managed Medicaid331 331 412 412 
Commercial16,063 16,063 6,484 6,484 
Other(1)
6,239 11,832 18,071 6,056 10,903 16,959 
Eliminations of intersegment revenues(24,289)(2,232)(26,521)(22,957)— (22,957)
Total$2,761,017 $360,315 $3,121,332 $2,680,296 $268,398 $2,948,694 
(1)    Other primarily consists of management service fees earned in the respective Company line of business as well as other non-patient service revenue from the Company's U.S. integrated kidney care (IKC) and other ancillary services and international operations.
7


DAVITA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
(unaudited)
(dollars and shares in thousands, except per share data)

Nine months ended September 30, 2023Nine months ended September 30, 2022
U.S. dialysisOther — Ancillary servicesConsolidatedU.S. dialysisOther — Ancillary servicesConsolidated
Dialysis patient service revenues:
Medicare and Medicare Advantage$4,538,264 $4,538,264 $4,529,300 $4,529,300 
Medicaid and Managed Medicaid629,118 629,118 570,380 570,380 
Other government265,119 $376,530 641,649 253,731 $349,633 603,364 
Commercial2,676,758 183,578 2,860,336 2,570,054 164,302 2,734,356 
Other revenues:
Medicare and Medicare Advantage317,624 317,624 255,204 255,204 
Medicaid and Managed Medicaid1,296 1,296 1,181 1,181 
Commercial20,888 20,888 16,029 16,029 
Other(1)
18,822 38,108 56,930 18,124 29,584 47,708 
Eliminations of intersegment revenues(66,698)(5,007)(71,705)(64,516)— (64,516)
Total$8,061,383 $933,017 $8,994,400 $7,877,073 $815,933 $8,693,006 
(1)    Other primarily consists of management service fees earned in the respective Company line of business as well as other non-patient service revenue from the Company's U.S. integrated kidney care (IKC) and other ancillary services and international operations.
There are significant uncertainties associated with estimating revenue, many of which take several years to resolve. These estimates are subject to ongoing insurance coverage changes, geographic coverage differences, differing interpretations of contract coverage and other payor issues, as well as patient issues, including determination of applicable primary and secondary coverage, changes in patient insurance coverage and coordination of benefits. As these estimates are refined over time, both positive and negative adjustments to revenue are recognized in the current period.
Dialysis patient service revenues. Revenues are recognized based on the Company’s estimate of the transaction price the Company expects to collect as a result of satisfying its performance obligations. Dialysis patient service revenues are recognized in the period services are provided based on these estimates. Revenues consist primarily of payments from government and commercial health plans for dialysis services provided to patients.     
Other revenues. Other revenues consist of revenues earned by the Company's non-dialysis ancillary services as well as fees for management and administrative services to outpatient dialysis businesses that the Company does not consolidate. Other revenues are estimated in the period services are provided. The Company's integrated kidney care (IKC) revenues include revenues earned under risk-based arrangements, including value-based care (VBC) arrangements. Under its VBC arrangements, the Company assumes full or shared financial risk for the total medical cost of care for patients below or above a benchmark. The benchmarks against which the Company incurs profit or loss on these contracts are typically based on the underlying premiums paid to the insuring entity (the Company's counterparty), with adjustments where applicable, or on trended or adjusted medical cost targets.
3.    Earnings per share
Basic earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of common shares outstanding. Weighted average common shares outstanding include restricted stock unit awards that are no longer subject to forfeiture because the recipients have satisfied either the explicit vesting terms or retirement eligibility requirements.
Diluted earnings per share includes the dilutive effect of outstanding stock-settled stock appreciation rights and unvested stock units as computed under the treasury stock method.
8


DAVITA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
(unaudited)
(dollars and shares in thousands, except per share data)

The reconciliations of the numerators and denominators used to calculate basic and diluted earnings per share were as follows:
Three months ended September 30,Nine months ended September 30,
 2023202220232022
Net income attributable to DaVita Inc.$246,632 $105,366 $540,870 $492,297 
Weighted average shares outstanding:
Basic shares91,322 91,160 90,937 93,959 
Assumed incremental from stock plans2,719 2,103 2,380 3,194 
Diluted shares94,041 93,263 93,317 97,153 
Basic net income per share attributable to DaVita Inc.$2.70 $1.16 $5.95 $5.24 
Diluted net income per share attributable to DaVita Inc.$2.62 $1.13 $5.80 $5.07 
Anti-dilutive stock-settled awards excluded from calculation(1)
271 1,260 615 878 
(1)Shares associated with stock awards excluded from the diluted denominator calculation because they were anti-dilutive under the treasury stock method.
4.     Short-term and long-term investments
The Company’s short-term and long-term debt and equity investments, consisting of debt instruments classified as held-to-maturity and equity investments with readily determinable fair values or redemption values, were as follows:
 September 30, 2023December 31, 2022
Debt
securities
Equity
securities
TotalDebt
securities
Equity
securities
Total
Certificates of deposit and other time deposits$20,430 $ $20,430 $82,879 $ $82,879 
Investments in mutual funds and common stocks 36,603 36,603  39,143 39,143 
 $20,430 $36,603 $57,033 $82,879 $39,143 $122,022 
Short-term investments$5,419 $6,294 $11,713 $67,872 $9,821 $77,693 
Long-term investments15,011 30,309 45,320 15,007 29,322 44,329 
 $20,430 $36,603 $57,033 $82,879 $39,143 $122,022 
Debt securities. The Company's short-term debt investments are principally bank certificates of deposit with contractual maturities longer than three months but shorter than one year. The Company's long-term debt investments are bank time deposits with contractual maturities longer than one year. These debt securities are accounted for as held-to-maturity and recorded at amortized cost, which approximated their fair values at September 30, 2023 and December 31, 2022.
Equity securities. The Company holds certain equity investments that have readily determinable fair values from public markets. The Company's remaining short-term and long-term equity investments are held within a trust to fund existing obligations associated with the Company’s non-qualified deferred compensation plans.
9


DAVITA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
(unaudited)
(dollars and shares in thousands, except per share data)

5.     Goodwill
Changes in the carrying value of goodwill by reportable segment were as follows:
U.S. dialysisOther — Ancillary servicesConsolidated
Balance at December 31, 2021$6,400,162 $646,079 $7,046,241 
Acquisitions16,750 32,297 49,047 
Divestitures(87)(3,263)(3,350)
Foreign currency and other adjustments (15,328)(15,328)
Balance at December 31, 2022$6,416,825 $659,785 $7,076,610 
Acquisitions 4,688 4,688 
Foreign currency and other adjustments 6,925 6,925 
Balance at September 30, 2023$6,416,825 $671,398 $7,088,223 
Balance at September 30, 2023:
Goodwill$6,416,825 $789,338 $7,206,163 
Accumulated impairment charges (117,940)(117,940)
$6,416,825 $671,398 $7,088,223 
The Company did not recognize any goodwill impairment charges during the nine months ended September 30, 2023 and 2022.
The Company's business continues to be impacted by the effects of the coronavirus (COVID-19). While the Company does not currently expect a material adverse impact to its business as a result of COVID-19, there can be no assurance that the magnitude of the cumulative impacts from COVID-19 will not have a material adverse impact on one or more of the Company's businesses. These cumulative impacts from COVID-19 may include, among other things, the cumulative impact on mortality rates for the kidney patient population and the cumulative impact on certain conditions and developments in the U.S. and global economies, labor market conditions, inflation and monetary policies.
Developments, events, changes in operating performance and other changes in key circumstances since the dates of the Company’s last annual goodwill impairment assessments have not caused management to believe it is more likely than not that the fair values of any of the Company's reporting units would be less than their respective carrying amounts as of September 30, 2023. Except for the Company's Germany kidney care reporting unit as described further in Note 10 to the Company's consolidated financial statements included in the 2022 10-K, none of the Company's various other reporting units were considered at risk of significant goodwill impairment as of September 30, 2023. 
6.    Equity method and other investments
The Company maintains equity method and other minor investments in the private securities of certain other healthcare and healthcare-related businesses as follows:
September 30, 2023December 31, 2022
Mozarc Medical Holdings LLC$342,315 
APAC joint venture98,215 $99,141 
Other equity method partnerships112,305 116,403 
Adjusted cost method and other investments12,559 15,564 
$565,394 $231,108 
During the nine months ended September 30, 2023 and 2022 the Company recognized equity investment income of $22,502 and $24,696, respectively, from its equity method investments in nonconsolidated dialysis partnerships. The Company also recognized equity investment losses from other equity method investments of $38,653 and $1,974 in other (loss) income during the nine months ended September 30, 2023 and 2022, respectively.
10


DAVITA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
(unaudited)
(dollars and shares in thousands, except per share data)

On May 25, 2022, the Company entered into an agreement with Medtronic, Inc. and one of its subsidiaries (collectively, Medtronic) to form a new, independent kidney care-focused medical device company (Mozarc Medical Holding LLC, or Mozarc) via a deconsolidating partial interest sale from Medtronic to the Company, which closed effective April 1, 2023. The Company holds a 50% voting equity interest in Mozarc and Medtronic holds the other 50% voting equity interest. The Company does not maintain a controlling financial interest in Mozarc and therefore accounts for this investment on the equity method, with equity method income or loss recognized in Other income (loss), net, on a one-month lag.
At the closing, the Company made an estimated purchase price payment, including certain transaction cost adjustments, to Medtronic of $44,651, subject to certain customary post-closing adjustments, and contributed certain other non-cash assets to Mozarc with an estimated value of $14,000. In addition, the Company agreed to pay Medtronic additional consideration of up to $300,000 if certain regulatory, commercial and financial milestones are achieved between 2024 and 2028. At close, the Company and Medtronic also each contributed an additional $224,415 in cash to Mozarc to fund its development initiatives.
The Company’s investment in Mozarc was recorded at an initial estimated cost of $375,326, which represents the sum of the cash amounts paid and contributed for the Company’s investment in Mozarc, the estimated fair value of the non-cash assets contributed, the estimated fair value of the Company’s contingent consideration payable to Medtronic for its interest in Mozarc of $86,200, and direct costs incurred to complete this transaction. The foregoing cost estimates are based upon the best information available to management but remain subject to change based on finalization of post-closing purchase price adjustments yet to be completed between the parties and finalization of related third-party valuation reports. As of September 30, 2023, the book value of the Company's contingent consideration payable to Medtronic approximates its estimated fair value.
The recorded cost of the Company's equity method investment in Mozarc, and its prospective equity method income (or loss) from that investment, remain subject to finalization of fair value estimates for the following based on third-party valuation reports: the Company's non-cash assets contributed to Mozarc, the Company's contingent consideration payable to Medtronic, and valuation of Mozarc's underlying net assets, including its intangible assets, fixed assets, leases and certain working capital items, some of which are pending final quantification for certain post-closing purchase price adjustments.
See Note 9 to the Company's consolidated financial statements included in the 2022 10-K for further description of the Company's other equity method investments.
11


DAVITA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
(unaudited)
(dollars and shares in thousands, except per share data)

7.     Long-term debt
Long-term debt comprised the following:
As of September 30, 2023
September 30,
2023
December 31, 2022Maturity dateInterest rate
Estimated fair value(1)
Senior Secured Credit Facilities:  
Term Loan A-1(2)
$1,242,188 
(3)
SOFR+CSA+2.00%$1,220,449 
Term Loan B-12,610,643 $2,660,831 8/12/2026SOFR+CSA+1.75%$2,578,010 
New Revolving line of credit(2)
 
(3)
SOFR+CSA+2.00%$ 
Prior Term Loan A 1,498,438 8/12/2024
(4)
$ 
Prior Revolving line of credit 165,000 8/12/2024
(4)
$ 
Senior Notes:
4.625% Senior Notes2,750,000 2,750,000 6/1/20304.625 %$2,258,438 
3.75% Senior Notes1,500,000 1,500,000 2/15/20313.75 %$1,143,750 
Acquisition obligations and other notes payable(5)
97,657 120,562 2023-20366.89 %$97,657 
Financing lease obligations(6)
250,695 273,688 2024-20394.48 %
Total debt principal outstanding8,451,183 8,968,519 
Discount, premium and deferred financing costs(7)
(57,479)(44,498)
 8,393,704 8,924,021 
Less current portion(108,558)(231,404)
 $8,285,146 $8,692,617 
(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 acquisition obligations and other notes payable, the carrying values presented approximate their estimated fair values, based on estimates of their present values using level 2 interest rate inputs.
(2)The Company's interest rate in its Term Loan A-1 and new 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 September 30, 2023, the Company's interest rate effective in the fourth quarter of 2023 will be SOFR plus CSA plus 1.75% for its Term Loan A-1 and new revolving line of credit.
(3)Outstanding Term Loan A-1 and new revolving line of credit balances are due on April 28, 2028, unless any of Term Loan B-1 remains outstanding 91 days prior to the Term Loan B-1 maturity date, in which case the outstanding Term Loan A-1 and the new revolving line of credit balances become due at that 91 day date (May 13, 2026).
(4)At March 31, 2023, the interest rate on the Company's then-existing credit facilities was LIBOR plus an interest rate margin in effect of 1.75% for the prior Term Loan A and prior revolving line of credit.
(5)The interest rate presented for acquisition obligations and other notes payable is their weighted average interest rate based on the current fixed and variable interest rate components in effect as of September 30, 2023.
(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.
(7)As of September 30, 2023, the carrying amount of the Company's senior secured credit facilities have been reduced by a discount of $2,724 and deferred financing costs of $34,688, and the carrying amount of the Company's senior notes have been reduced by deferred financing costs of $32,668 and increased by a debt premium of $12,601. As of December 31, 2022, the carrying amount of the Company's senior secured credit facilities were reduced by a discount of $3,497 and deferred financing costs of $18,816, and the carrying amount of the Company's senior notes were reduced by deferred financing costs of $36,203 and increased by a debt premium of $14,018.
12


DAVITA INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(continued)
(unaudited)
(dollars and shares in thousands, except per share data)

Scheduled maturities of long-term debt at September 30, 2023 were as follows:
2023 (remainder of the year)$29,877 
2024$110,271 
2025$129,871 
2026$2,660,604 
2027$113,551 
2028$1,014,649 
Thereafter$4,392,360 
On April 3, 2023, the Company entered into the Second Amendment (the Second Amendment) to its senior secured credit agreement (the Credit Agreement). The Second Amendment modifies the Credit Agreement to, among other things, transition the interest pricing on Term Loan B-1 from LIBOR + 1.75% to a forward-looking term rate (Term SOFR) based on the Secured Overnight Financing Rate (SOFR) + 1.75% plus an additional credit spread adjustment (CSA), provided that this adjusted rate shall never be less than 0.00%, as well as to update the successor interest rate provisions in the Credit Agreement with respect to Term Loan B-1. As of September 30, 2023, the CSA for all tranches outstanding on the Company's Term Loan B-1 was 0.11%. The Company adopted Accounting Standards Update (ASU) No. 2020-04 and ASU No. 2022-06 regarding reference rate reform during the second quarter and applied one of their practical expedients to treat the amendment of Term Loan B-1 as a non-substantial modification.
On April 28, 2023, the Company entered into the Third Amendment (the Third Amendment, and together with the Second Amendment, the Amendments) to the Credit Agreement. The Third Amendment modifies the Credit Agreement to, among other things, refinance its Term Loan A and revolving line of credit with a secured Term Loan A-1 facility in the aggregate principal amount of $1,250,000 and a secured revolving line of credit in the aggregate principal amount of up to $1,500,000 (the foregoing referred to as the new Term Loan A-1 and new revolving line of credit, respectively).
The new Term Loan A-1 and new revolving line of credit initially bear interest at Term SOFR, plus a CSA of 0.10% and an interest rate margin of 2.00%, which is subject to adjustment depending upon the Company's leverage ratio under the Credit Agreement, as amended, and which can range from 1.25% to 2.25%, provided that this adjusted rate shall never be less than 0.00%. The new Term Loan A-1 requires amortizing quarterly principal payments beginning on September 30, 2023 of $7,813 per quarter for the first four payments, $15,625 per quarter for the fifth through sixteenth payments, $23,438 per quarter for the seventeenth through nineteenth payments, with the balance due on April 28, 2028. The new revolving line of credit has a five-year term. However, under the Third Amendment, Term Loan A-1 and the new revolving line of credit become due if any of Term Loan B-1 remains outstanding 91 days prior to the Term Loan B-1 maturity date, in which case the Term Loan A-1 balance and any outstanding balance on the new revolving line of credit become due at that 91 day date (May 13, 2026).
Borrowings under the Company's senior secured credit facilities are guaranteed and secured by substantially all of DaVita Inc.'s and certain of the Company’s domestic subsidiaries' assets and rank senior to all unsecured indebtedness. Borrowings under the new Term Loan A-1, Term Loan B-1 and new revolving line of credit rank equal in priority for that security and related subsidiary guarantees under the facility's terms. The Credit Agreement, as amended, contains certain customary affirmative and negative covenants such as various restrictions or limitations on permitted amounts of investments (including acquisitions), share repurchases, payment of dividends, and redemptions and incurrence of other indebtedness. Many of these restrictions and limitations will not apply as long as the Company’s leverage ratio calculated in accordance with the Amendments is below 4.00:1.00. In addition, the Amendments require compliance with a maximum leverage ratio covenant, tested quarterly, of 5.00:1.00 through June 30, 2026 and 4.50:1.00 thereafter.
In the second quarter of 2023, the Company used a portion of the proceeds from the new Term Loan A-1 and initial borrowing of $400,000 on the new revolving line of credit to pay off the remaining principal balance outstanding and accrued interest and fees on its prior Term Loan A and prior revolving line of credit in the amount of $