Deferred financing and debt redemption costs

  
DAVITA INC.CONSOLIDATED STATEMENTS OF CASH FLOW(unaudited)(dollars in thousands)

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Six months ended June 30, |
|   | 2022 |  | 2021 |
| 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 amortization | 344,120  |  |  | 335,390  |  |
|  |  |  |  |
|  |  |  |  |
| Stock-based compensation expense | 50,109  |  |  | 51,717  |  |
| Deferred income taxes | 9,069  |  |  | 40,685  |  |
| Equity investment loss (income), net | 90  |  |  | (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 payable | 24,517  |  |  | (47,390) |  |
| Accrued compensation and benefits | (102,513) |  |  | (90,381) |  |
| Other current liabilities | 42,517  |  |  | 25,090  |  |
| Income taxes | (63,638) |  |  | 10,753  |  |
| Other long-term liabilities | (6,557) |  |  | (13,232) |  |
| Net cash provided by operating activities | 510,316  |  |  | 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 sales | 114,829  |  |  | 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-maturity | 8,415  |  |  | 7,923  |  |
| Proceeds from sale of other debt and equity investments | 3,775  |  |  | 11,908  |  |
|  |  |  |  |
| Purchase of equity method investments | (23,806) |  |  | (6,029) |  |
| Distributions from equity method investments | 1,047  |  |  | 1,140  |  |
| Net cash used in investing activities | (263,232) |  |  | (283,699) |  |
| Cash flows from financing activities: |  |  |  |
| Borrowings | 1,182,911  |  |  | 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 interests | 9,116  |  |  | 15,925  |  |
| Proceeds from sales of additional noncontrolling interests | 3,673  |  |  | —  |  |
| 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 year | 554,960  |  |  | 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
