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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 June 30, 2022
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
dva-20220630_g1.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 July 29, 2022, 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 6. 
  
Note: Items 3, 4 and 5 of Part II are omitted because they are not applicable. 
i



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


Three months ended June 30,Six months ended June 30,
 2022202120222021
Dialysis patient service revenues$2,810,099 $2,817,957 $5,526,380 $5,532,544 
Other revenues116,658 98,553 217,932 203,967 
Total revenues2,926,757 2,916,510 5,744,312 5,736,511 
Operating expenses:    
Patient care costs2,016,788 1,965,277 4,035,317 3,903,607 
General and administrative315,219 298,091 610,039 579,517 
Depreciation and amortization171,176 169,689 344,120 335,390 
Equity investment income, net(9,141)(7,023)(16,187)(15,081)
Total operating expenses2,494,042 2,426,034 4,973,289 4,803,433 
Operating income432,715 490,476 771,023 933,078 
Debt expense(82,586)(73,324)(156,377)(140,338)
Other (loss) income, net(1,284)15,188 (3,070)16,356 
Income before income taxes348,845 432,340 611,576 809,096 
Income tax expense64,229 81,309 121,242 166,520 
Net income284,616 351,031 490,334 642,576 
Less: Net income attributable to noncontrolling interests(59,807)(57,211)(103,403)(111,353)
Net income attributable to DaVita Inc.$224,809 $293,820 $386,931 $531,223 
Earnings per share attributable to DaVita Inc.:  
Basic net income$2.38 $2.76 $4.06 $4.94 
Diluted net income$2.30 $2.64 $3.90 $4.72 
Weighted average shares for earnings per share:
Basic shares94,457 106,364 95,382 107,606 
Diluted shares97,772 111,423 99,121 112,555 
See notes to condensed consolidated financial statements.
1


DAVITA INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
(dollars in thousands)
Three months ended June 30,Six months ended June 30,
 2022202120222021
Net income$284,616 $351,031 $490,334 $642,576 
Other comprehensive (loss) income, net of tax:  
Unrealized gains (losses) on interest rate cap agreements:  
Unrealized gains (losses)13,217 (2,059)54,349 2,823 
Reclassifications of net realized losses into net income1,033 1,033 2,066 2,066 
Unrealized (losses) gains on foreign currency translation:(91,176)57,910 (28,964)(4,634)
Other comprehensive (loss) income(76,926)56,884 27,451 255 
Total comprehensive income207,690 407,915 517,785 642,831 
Less: Comprehensive income attributable to
 noncontrolling interests
(59,807)(57,211)(103,403)(111,353)
Comprehensive income attributable to DaVita Inc.$147,883 $350,704 $414,382 $531,478 
 See notes to condensed consolidated financial statements.

2


DAVITA INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars and shares in thousands, except per share data)
June 30, 2022December 31, 2021
ASSETS  
Cash and cash equivalents$262,605 $461,900 
Restricted cash and equivalents93,132 93,060 
Short-term investments100,489 22,310 
Accounts receivable2,093,830 1,957,583 
Inventories109,522 107,428 
Other receivables502,921 427,321 
Prepaid and other current assets63,539 72,517 
Income tax receivable38,070 25,604 
Total current assets3,264,108 3,167,723 
Property and equipment, net of accumulated depreciation of $4,989,142 and $4,763,135, respectively
3,304,596 3,479,972 
Operating lease right-of-use assets2,771,757 2,824,787 
Intangible assets, net of accumulated amortization of $44,985 and $60,730, respectively
184,740 177,693 
Equity method and other investments253,457 238,881 
Long-term investments44,562 49,514 
Other long-term assets257,577 136,677 
Goodwill7,019,778 7,046,241 
 $17,100,575 $17,121,488 
LIABILITIES AND EQUITY  
Accounts payable$402,308 $402,049 
Other liabilities752,717 709,345 
Accrued compensation and benefits559,791 659,960 
Current portion of operating lease liabilities398,421 394,357 
Current portion of long-term debt197,510 179,030 
Income tax payable 53,792 
Total current liabilities2,310,747 2,398,533 
Long-term operating lease liabilities2,606,391 2,672,713 
Long-term debt9,064,916 8,729,150 
Other long-term liabilities105,137 119,158 
Deferred income taxes852,389 830,954 
Total liabilities14,939,580 14,750,508 
Commitments and contingencies
Noncontrolling interests subject to put provisions1,385,821 1,434,832 
Equity:  
Preferred stock ($0.001 par value, 5,000 shares authorized; none issued)
  
Common stock ($0.001 par value, 450,000 shares authorized; 98,179 and 92,206 shares
 issued and outstanding at June 30, 2022, respectively, and 97,289 shares issued and
 outstanding at December 31, 2021)
98 97 
Additional paid-in capital578,272 540,321 
Retained earnings741,268 354,337 
Treasury stock (5,973 and zero shares, respectively)
(603,058) 
Accumulated other comprehensive loss(111,796)(139,247)
Total DaVita Inc. shareholders' equity604,784 755,508 
Noncontrolling interests not subject to put provisions170,390 180,640 
Total equity775,174 936,148 
 $17,100,575 $17,121,488 
See notes to condensed consolidated financial statements.
3


DAVITA INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(unaudited)
(dollars in thousands)
Six months ended June 30,
 20222021
Cash flows from operating activities:  
Net income$490,334 $642,576 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation and amortization344,120 335,390 
Stock-based compensation expense50,109 51,717 
Deferred income taxes9,069 40,685 
Equity investment loss (income), net90 (2,764)
Other non-cash charges, net(32,858)1,274 
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
Accounts receivable(132,043)(117,171)
Inventories(1,927)(3,270)
Other receivables and prepaid and other current assets(61,811)14,465 
Other long-term assets(49,093)(13,706)
Accounts payable24,517 (47,390)
Accrued compensation and benefits(102,513)(90,381)
Other current liabilities42,517 25,090 
Income taxes(63,638)10,753 
Other long-term liabilities(6,557)(13,232)
Net cash provided by operating activities510,316 834,036 
Cash flows from investing activities: 
Additions of property and equipment(265,461)(294,438)
Acquisitions(9,491)(23,890)
Proceeds from asset and business sales114,829 29,774 
Purchase of debt investments held-to-maturity(89,530)(7,923)
Purchase of other debt and equity investments(3,010)(2,164)
Proceeds from debt investments held-to-maturity8,415 7,923 
Proceeds from sale of other debt and equity investments3,775 11,908 
Purchase of equity method investments(23,806)(6,029)
Distributions from equity method investments1,047 1,140 
Net cash used in investing activities(263,232)(283,699)
Cash flows from financing activities:
Borrowings1,182,911 1,611,086 
Payments on long-term debt(841,687)(754,407)
Deferred financing and debt redemption costs (9,089)
Purchase of treasury stock(617,432)(560,507)
Distributions to noncontrolling interests(118,315)(99,362)
Net payments related to stock purchases and awards(47,866)(43,605)
Contributions from noncontrolling interests9,116 15,925 
Proceeds from sales of additional noncontrolling interests3,673  
Purchases of noncontrolling interests(15,365)(4,493)
Net cash (used in) provided by financing activities(444,965)155,548 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(1,342)(1,197)
Net (decrease) increase in cash, cash equivalents and restricted cash(199,223)704,688 
Cash, cash equivalents and restricted cash at beginning of the year554,960 501,790 
Cash, cash equivalents and restricted cash at end of the period$355,737 $1,206,478 
See notes to condensed consolidated financial statements.
4


DAVITA INC.
CONSOLIDATED STATEMENTS OF EQUITY
(unaudited)
(dollars and shares in thousands)
Three months ended June 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 March 31, 2022$1,390,757 97,342 $97 $595,403 $516,459 (2,104)$(233,318)$(34,870)$843,771 $174,552 
Comprehensive income:
Net income45,571 224,809 224,809 14,236 
Other comprehensive loss(76,926)(76,926)
Stock award plan837 1 (50,885)(50,884)
Stock-settled stock-based
 compensation expense
25,590 25,590 
Changes in noncontrolling
 interest from:
Distributions(34,378)(18,485)
Contributions4,107 80 
Acquisitions and divestitures(29)56 56 
Partial purchases(10,596)(1,496)(1,496)
Fair value remeasurements(9,604)9,604 9,604 
Other(7)7 
Purchase of treasury stock(3,869)(369,740)(369,740)
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 
Six months ended June 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 income73,952 386,931 386,931 29,451 
Other comprehensive income27,451 27,451 
Stock award plan890 1 (54,373)(54,372)
Stock-settled stock-based
 compensation expense
50,216 50,216 
Changes in noncontrolling
 interest from:
Distributions(77,259)(41,056)
Contributions7,304 1,812 
Acquisitions and divestitures2,392 939 939 
Partial purchases(11,418)(3,270)(3,270)
Fair value remeasurements(44,439)44,439 44,439 
Other457 (457)
Purchase of treasury stock(5,973)(603,058)(603,058)
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 
See notes to condensed consolidated financial statements.

5


DAVITA INC.
CONSOLIDATED STATEMENTS OF EQUITY
(unaudited)
(dollars and shares in thousands)
Three months ended June 30, 2021
 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 March 31, 2021$1,349,160 110,027 $110 $603,172 $1,089,940 (2,949)$(322,333)$(122,783)$1,248,106 $185,109 
Comprehensive income:
Net income44,992 293,820 293,820 12,219 
Other comprehensive income56,884 56,884 
Stock award plans617 1(44,907)(44,906)
Stock-settled stock-based
 compensation expense
26,958 26,958 
Changes in noncontrolling
 interest from:
Distributions(29,983)(15,512)
Contributions3,094 2,142 
Acquisitions and divestitures1,249 
Partial purchases(351)(2,886)(2,886)(161)
Fair value remeasurements59,299 (59,299)(59,299)
Purchase of treasury stock(2,070)(240,897)(240,897)
Balance at June 30, 2021$1,426,211 110,644 $111 $523,038 $1,383,760 (5,019)$(563,230)$(65,899)$1,277,780 $185,046 
Six months ended June 30, 2021
 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, 2020$1,330,028 109,933 $110 $597,073 $852,537  $ $(66,154)$1,383,566 $183,186 
Comprehensive income:
Net income80,592 531,223 531,223 30,761 
Other comprehensive income255 255 
Stock award plans7111(51,177)(51,176)
Stock-settled stock-based
 compensation expense
50,513 50,513 
Changes in noncontrolling
 interest from:
Distributions(64,242)(35,120)
Contributions10,789 5,136 
Acquisitions and divestitures1,249 
Partial purchases(552)(3,775)(3,775)(166)
Fair value remeasurements69,596 (69,596)(69,596)
Purchase of treasury stock(5,019)(563,230)(563,230)
Balance at June 30, 2021$1,426,211 110,644 $111 $523,038 $1,383,760 (5,019)$(563,230)$(65,899)$1,277,780 $185,046 

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, 2021 (2021 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 June 30, 2022Three months ended June 30, 2021
U.S. dialysisOther — Ancillary servicesConsolidatedU.S. dialysisOther — Ancillary servicesConsolidated
Dialysis patient service revenues:
Medicare and Medicare Advantage$1,529,534 $$1,529,534 $1,562,164 $$1,562,164 
Medicaid and Managed Medicaid186,873 186,873 194,641 194,641 
Other government86,079 116,653 202,732 82,317 118,464 200,781 
Commercial854,662 55,708 910,370 830,801 50,817 881,618 
Other revenues:
Medicare and Medicare Advantage93,262 93,262 80,211 80,211 
Medicaid and Managed Medicaid232 232 305 305 
Commercial8,207 8,207 1,189 1,189 
Other(1)
6,092 8,844 14,936 6,415 10,503 16,918 
Eliminations of intersegment revenues(19,389)(19,389)(21,317) (21,317)
Total$2,643,851 $282,906 $2,926,757 $2,655,021 $261,489 $2,916,510 
(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. 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)

Six months ended June 30, 2022Six months ended June 30, 2021
U.S. dialysisOther - Ancillary servicesConsolidatedU.S. dialysisOther - Ancillary servicesConsolidated
Dialysis patient service revenues:
Medicare and Medicare Advantage$2,993,621 $$2,993,621 $3,042,461 $$3,042,461 
Medicaid and Managed Medicaid376,528 376,528 381,884 381,884 
Other government166,879 233,548 400,427 162,501 225,293 387,794 
Commercial1,689,240 108,132 1,797,372 1,666,280 102,315 1,768,595 
Other revenues:
Medicare and Medicare Advantage176,859 176,859 165,807 165,807 
Medicaid and Managed Medicaid769 769 605 605 
Commercial9,546 9,546 7,223 7,223 
Other(1)
12,068 18,680 30,748 13,091 21,665 34,756 
Eliminations of intersegment revenues(41,558)(41,558)(48,320)(4,294)(52,614)
Total$5,196,778 $547,534 $5,744,312 $5,217,897 $518,614 $5,736,511