Deferred purchase price obligations

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

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended June 30, 2022 |  | Six months ended June 30, 2022 |
|  | Interestrate capagreements |  | Foreigncurrencytranslationadjustments |  | Accumulatedothercomprehensiveloss |  | Interestrate capagreements |  | Foreigncurrencytranslationadjustments |  | Accumulatedothercomprehensiveloss |
| Beginning balance | $ | 40,987  |  |  | $ | (75,857) |  |  | $ | (34,870) |  |  | $ | (1,178) |  |  | $ | (138,069) |  |  | $ | (139,247) |  |
| Unrealized gains (losses) | 17,610  |  |  | (91,176) |  |  | (73,566) |  |  | 72,416  |  |  | (28,964) |  |  | 43,452  |  |
| Related income tax | (4,393) |  |  | —  |  |  | (4,393) |  |  | (18,067) |  |  | —  |  |  | (18,067) |  |
|   | 13,217  |  |  | (91,176) |  |  | (77,959) |  |  | 54,349  |  |  | (28,964) |  |  | 25,385  |  |
| Reclassification into net income | 1,377  |  |  | —  |  |  | 1,377  |  |  | 2,754  |  |  | —  |  |  | 2,754  |  |
| Related income tax | (344) |  |  | —  |  |  | (344) |  |  | (688) |  |  | —  |  |  | (688) |  |
|   | 1,033  |  |  | —  |  |  | 1,033  |  |  | 2,066  |  |  | —  |  |  | 2,066  |  |
| Ending balance | $ | 55,237  |  |  | $ | (167,033) |  |  | $ | (111,796) |  |  | $ | 55,237  |  |  | $ | (167,033) |  |  | $ | (111,796) |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended June 30, 2021 |  | Six months ended June 30, 2021 |
|  | Interestrate capagreements |  | Foreigncurrencytranslationadjustments |  | Accumulatedothercomprehensiveloss |  | Interestrate capagreements |  | Foreigncurrencytranslationadjustments |  | Accumulatedothercomprehensiveloss |
| Beginning balance | $ | (6,551) |  |  | $ | (116,232) |  |  | $ | (122,783) |  |  | $ | (12,466) |  |  | $ | (53,688) |  |  | $ | (66,154) |  |
| Unrealized (losses) gains | (2,744) |  |  | 57,910  |  |  | 55,166  |  |  | 3,761  |  |  | (4,634) |  |  | (873) |  |
| Related income tax | 685  |  |  | —  |  |  | 685  |  |  | (938) |  |  | —  |  |  | (938) |  |
|  | (2,059) |  |  | 57,910  |  |  | 55,851  |  |  | 2,823  |  |  | (4,634) |  |  | (1,811) |  |
| Reclassification into net income | 1,377  |  |  | —  |  |  | 1,377  |  |  | 2,754  |  |  | —  |  |  | 2,754  |  |
| Related income tax | (344) |  |  | —  |  |  | (344) |  |  | (688) |  |  | —  |  |  | (688) |  |
|  | 1,033  |  |  | —  |  |  | 1,033  |  |  | 2,066  |  |  | —  |  |  | 2,066  |  |
| Ending balance | $ | (7,577) |  |  | $ | (58,322) |  |  | $ | (65,899) |  |  | $ | (7,577) |  |  | $ | (58,322) |  |  | $ | (65,899) |  |

The interest rate cap agreement net realized losses reclassified into net income are recorded as debt expense in the corresponding consolidated statements of income. See Note 6 for further details.10.     Acquisitions and divestituresRoutine acquisitionsDuring the six months ended June 30, 2022, the Company acquired dialysis businesses consisting of five dialysis centers located outside the U.S. for total net cash of $9,491, contingent earn-out obligations of $523 and deferred purchase price and liabilities assumed of $5,784. The assets and liabilities for these acquisitions were recorded at their estimated fair values at the dates of the acquisitions and are included in the Company’s condensed consolidated financial statements, as are their operating results, from the designated effective dates of the acquisitions.The initial purchase price allocations have been recorded at estimated fair values based on information available to management and will be finalized when certain information arranged to be obtained has been received. In particular, certain income tax amounts are pending final evaluation and quantification of any pre-acquisition tax contingencies. In addition, valuation of intangibles, leases and certain other working capital items relating to these acquisitions are pending final quantification.The amount of goodwill recognized or adjusted during the six months ended June 30, 2022 that is deductible for tax purposes was $(1,145).16
