DaVita DVA · USD

Segment reportingThe Company's operating divisions are composed of its U.S. dialysis and related lab services business (its U.S. dialysis business), its U.S. integrated kidney care business, its U.S. other ancillary services and its international operations (collectively, its ancillary services), as well as its corporate administrative support functions. See Note 1 "Organization" for a summary description of the Company's businesses.The Company’s operating segments have been defined based on the separate financial information that is regularly produced and reviewed by the Company’s chief operating decision maker in making decisions about allocating resources to and assessing the financial performance of the Company’s various operating lines of business. The chief operating decision maker for the Company is its Chief Executive Officer.The Company’s separate operating segments include its U.S. dialysis and related lab services business, its U.S. integrated kidney care business, its U.S. other ancillary services, and its operations in each foreign sovereign jurisdiction. The U.S. dialysis and related lab services business qualifies as a separately reportable segment, and all other operating segments have been combined and disclosed in the other segments category.The Company’s operating segment financial information included in this report is prepared on the internal management reporting basis that the chief operating decision maker uses to assess the financial performance of and allocate resources among the Company's operating segments. For internal management reporting, segment operations include direct segment operating expenses but generally exclude corporate administrative support costs, which consist primarily of indirect labor, benefits and long-term incentive compensation expenses of certain departments which provide support to more than one of the Company’s various operating lines of business. The chief operating decision maker uses segment operating margin to assess segment profitability and resource allocation. The chief operating decision maker does not review total assets by segment to make decisions regarding resources; therefore, the total assets by segment disclosure has not been included.The following is a summary of segment revenues, segment operating margin, and a reconciliation of segment operating margin to consolidated income from continuing operations before income taxes:Year ended December 31,202520242023Segment revenues:U.S.

Revenue recognition and accounts receivableThe Company's revenues by segment and primary payor source were as follows:Year ended December 31, 2025U.S. dialysisOther - Ancillary servicesConsolidatedPatient service revenues:Medicare and Medicare Advantage$6,740,392 $$6,740,392 Medicaid and Managed Medicaid871,695 871,695 Other government349,651 914,387 1,264,038 Commercial3,806,596 385,423 4,192,019 Other revenues:Medicare and Medicare Advantage507,613 507,613 Medicaid and Managed Medicaid2 2 Commercial15,399 15,399 Other(1)24,610 99,462 124,072 Eliminations of intersegment revenues(60,958)(11,203)(72,161)Total$11,731,986 $1,911,083 $13,643,069 Year ended December 31, 2024U.S. dialysisOther - Ancillary servicesConsolidatedPatient service revenues:Medicare and Medicare Advantage$6,374,882 $$6,374,882 Medicaid and Managed Medicaid863,947 863,947 Other government343,705 717,735 1,061,440 Commercial3,783,827 248,026 4,031,853 Other revenues:Medicare and Medicare Advantage463,731 463,731 Medicaid and Managed Medicaid740 740 Commercial21,396 21,396 Other(1)24,356 58,862 83,218 Eliminations of intersegment revenues(71,747)(13,910)(85,657)Total$11,318,970 $1,496,580 $12,815,550 Year ended December 31, 2023U.S. dialysisOther - Ancillary servicesConsolidatedPatient service revenues:Medicare and Medicare Advantage$6,100,183 $$6,100,183 Medicaid and Managed Medicaid833,744 833,744 Other government354,304 500,137 854,441 Commercial3,623,516 251,279 3,874,795 Other revenues:Medicare and Medicare Advantage460,991 460,991 Medicaid and Managed Medicaid1,733 1,733 Commercial32,329 32,329 Other(1)25,251 52,754 78,005 Eliminations of intersegment revenues(88,222)(7,852)(96,074)Total$10,848,776 $1,291,371 $12,140,147 (1)Consists primarily of management service fees in the Company's U.S. dialysis business and research fees, management fees, and other non-patient service revenues in the Other - ancillary services businesses.The majority of the Company's non-patient service revenues from Medicare and Medicare Advantage, Medicaid and Managed Medicaid, and commercial sources represent risk-based revenues earned by the Company's U.S. IKC business.For its IKC business, the Company recognized revenues for performance obligations satisfied in previous years of $171,385, $116,336, and $94,361 during the years ended December 31, 2025, 2024 and 2023, respectively.

The Company's revenues by segment and primary payor source were as follows:Year ended December 31, 2025U.S. dialysisOther - Ancillary servicesConsolidatedPatient service revenues:Medicare and Medicare Advantage$6,740,392 $$6,740,392 Medicaid and Managed Medicaid871,695 871,695 Other government349,651 914,387 1,264,038 Commercial3,806,596 385,423 4,192,019 Other revenues:Medicare and Medicare Advantage507,613 507,613 Medicaid and Managed Medicaid2 2 Commercial15,399 15,399 Other(1)24,610 99,462 124,072 Eliminations of intersegment revenues(60,958)(11,203)(72,161)Total$11,731,986 $1,911,083 $13,643,069 Year ended December 31, 2024U.S. dialysisOther - Ancillary servicesConsolidatedPatient service revenues:Medicare and Medicare Advantage$6,374,882 $$6,374,882 Medicaid and Managed Medicaid863,947 863,947 Other government343,705 717,735 1,061,440 Commercial3,783,827 248,026 4,031,853 Other revenues:Medicare and Medicare Advantage463,731 463,731 Medicaid and Managed Medicaid740 740 Commercial21,396 21,396 Other(1)24,356 58,862 83,218 Eliminations of intersegment revenues(71,747)(13,910)(85,657)Total$11,318,970 $1,496,580 $12,815,550 Year ended December 31, 2023U.S. dialysisOther - Ancillary servicesConsolidatedPatient service revenues:Medicare and Medicare Advantage$6,100,183 $$6,100,183 Medicaid and Managed Medicaid833,744 833,744 Other government354,304 500,137 854,441 Commercial3,623,516 251,279 3,874,795 Other revenues:Medicare and Medicare Advantage460,991 460,991 Medicaid and Managed Medicaid1,733 1,733 Commercial32,329 32,329 Other(1)25,251 52,754 78,005 Eliminations of intersegment revenues(88,222)(7,852)(96,074)Total$10,848,776 $1,291,371 $12,140,147 (1)Consists primarily of management service fees in the Company's U.S. dialysis business and research fees, management fees, and other non-patient service revenues in the Other - ancillary services businesses.

Long-term debtLong-term debt comprised the following: December 31,As of December 31, 202520252024Maturity dateInterest rateEstimated fair value(1)Senior Secured Credit Facilities:Term Loan A-1(2)$— $2,259,295 4/28/2028$— Term Loan A-2(3)2,000,000 — 11/24/2030SOFR + 1.50%$1,995,000 Term Loan B-1(4)— 1,636,150 5/9/2031$— Term Loan B-21,868,559 — 5/9/2031SOFR + 1.75%$1,877,902 Revolving line of credit(2,3)— — 11/24/2030SOFR + 1.50%$— Senior Notes:4.625% Senior Notes2,750,000 2,750,000 6/1/20304.625 %$2,667,500 3.75% Senior Notes1,500,000 1,500,000 2/15/20313.75 %$1,383,750 6.875% Senior Notes1,000,000 1,000,000 9/1/20326.875 %$1,036,250 6.75% Senior Notes1,000,000 — 7/15/20336.75 %$1,035,000 Acquisition obligations and other notes payable(5)40,904 56,483 2026-20384.89 %$40,904 Financing lease obligations(6)185,120 216,401 2026-20394.44 %CHC temporary funding assistance— 92,777 — %$— Total debt principal outstanding10,344,583 9,511,106 Discount, premium and deferred financing costs(7)(71,394)(64,336)10,273,189 9,446,770 Less current portion(109,201)(270,867)$10,163,988 $9,175,903 (1)For the Company's senior secured credit facilities, fair value estimates are based on bid and ask quotes, a level 2 input. For the Company's senior notes, fair value estimates are based on market level 1 inputs. For acquisition obligations and other notes payable, the carrying values presented here approximate their estimated fair values, based on estimates of their present values typically using level 2 interest rate inputs.(2)At September 30, 2025, the Company's then-existing Term Loan A-1 and revolving line of credit bore interest at the secured overnight financing rate that is published by CME Group Benchmark Administration Limited (Term SOFR) plus an interest rate margin of 1.75% and a credit spread adjustment of 0.10%. On November 24, 2025, the Company repaid all amounts outstanding under its then-existing Term Loan A-1.(3)Outstanding Term Loan A-2 and revolving line of credit balances are due on November 24, 2030, unless any of the 4.625% senior notes due 2030 (the 4.625% Senior Notes) remain outstanding 91 days prior to the 4.625% Senior Notes maturity date, in which case the outstanding Term Loan A-2 and revolving line of credit balances become due at that 91 day date (March 2, 2030).(4)At June 30, 2025, the interest rate on the Company's then-existing Term Loan B-1 was Term SOFR plus an interest rate margin of 2.00%.

Income taxesThe Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.Income before income taxes from continuing operations consisted of the following: Year ended December 31, 202520242023Domestic$1,224,860 $1,374,571 $1,100,420 International121,963 155,822 76,674 $1,346,823 $1,530,393 $1,177,094 Income tax expense for continuing operations consisted of the following:Year ended December 31,202520242023Current:Federal$134,287 $253,504 $200,070 State26,913 52,410 38,370 International45,338 31,532 21,008 Total current income tax206,538 337,446 259,448 Deferred:Federal76,506 (47,715)(40,234)State11,225 (2,855)367 International(1,162)(7,220)535 Total deferred income tax86,569 (57,790)(39,332) $293,107 $279,656 $220,116 Income taxes are allocated between continuing and discontinued operations as follows:Year ended December 31,202520242023Continuing operations$293,107 $279,656 $220,116 Discontinued operations— — — $293,107 $279,656 $220,116 The reconciliation between the Company’s effective tax rate from continuing operations and the U.S. federal income tax rate is as follows: Year ended December 31, 202520242023U.S. Federal income tax$282,833 21.0 %$321,383 21.0 %$247,190 21.0 %Tax credits(12,804)(1.0)(14,195)(0.9)(12,823)(1.1)Nontaxable/Nondeductible items:Impact of noncontrolling interests(69,029)(5.1)(66,186)(4.3)(55,245)(4.7)Nondeductible executive compensation15,703 1.2 6,738 0.4 9,112 0.8 Other954 0.1 (8,210)(0.6)634 — Valuation allowances13,346 1.0 9,159 0.6 5,634 0.5 Cross-border tax impacts99 — 1,500 0.1 (102)— State and local income taxes, net of federal benefit(1)32,895 2.4 44,218 2.9 29,072 2.5 Foreign tax effects(2)19,706 1.5 (4,836)(0.3)9,114 0.8 Unrecognized tax benefits9,404 0.7 (9,915)(0.6)(12,470)(1.1)Effective tax rate$293,107 21.8 %$279,656 18.3 %$220,116 18.7 %(1)The majority (greater than 50%) of state tax expense comprises income taxes in California, Illinois, Pennsylvania, New York and New Jersey for the years presented.

Stock-based compensationStock-based compensation consists primarily of stock-settled stock appreciation rights, restricted stock units and performance stock units. Stock-based compensation, which is primarily general and administrative in nature, is attributed to the Company’s U.S. dialysis business, its corporate administrative support, and its ancillary services. See Note 1 "Organization and summary of significant accounting policies" for more information on how the Company measures and recognizes stock-based compensation expense.Long-term incentive compensation plansThe DaVita Inc. 2020 Incentive Award Plan (the 2020 Plan) is the Company’s current omnibus equity compensation plan and provides for grants of stock-based awards to employees, directors and other individuals providing services to the Company, except that incentive stock options may only be awarded to employees. The 2020 Plan provides for the grant of stock appreciation rights, nonqualified stock options, incentive stock options, restricted stock units, restricted stock, performance stock awards, dividend equivalents, stock payments, deferred stock unit awards, deferred stock awards and performance cash awards. The 2020 Plan mandates a maximum award term of 10 years for stock appreciation rights and stock options and stipulates that awards of these types be granted with a base or exercise price per share of not less than the fair market value of the Company's common stock on the date of grant. Shares available under the 2020 Plan are stated on a full value share basis. The 2020 Plan therefore provides that shares available for issuance under the plan are reduced by one share available for every four shares underlying stock appreciation rights and stock options, and are reduced by one share available for every one share underlying stock-based awards other than stock appreciation rights and stock options. At December 31, 2025, there were 4,334 shares available for future grants under the 2020 Plan. The Company’s stock awards granted under the 2020 Plan generally vest over 36 months to 48 months from the date of grant.

A summary of the status of the Company’s stock-settled awards, including base shares for stock-settled stock appreciation rights (SSARs) and stock-settled stock unit awards is as follows: Year ended December 31, 2025 Stock appreciation rightsStock unitsAwardsWeightedaverageexercisepriceWeightedaverageremainingcontractual lifeAwardsWeightedaverageremainingcontractual lifeOutstanding at beginning of year268 $108.02 3,146 Granted96 $143.45 799 Added by performance factor6 Exercised/Vested(20)$85.65 (710) Canceled— $— (246) Outstanding at end of period344 $119.18 1.692,995 1.74Exercisable at end of period183 $109.53 0.56— — Weighted-average fair value of grants:2025$51.82 $144.10 2024 $142.36 2023 $77.

LeasesThe Company leases substantially all of its dialysis facilities. The majority of the Company’s facilities are leased under non-cancellable operating leases. The Company's leases are generally subject to fixed escalation clauses or contain consumer price index increases. See Note 1 for further information on how the Company accounts for leases.As of December 31, 2025 and December 31, 2024, assets recorded under finance leases were $291,850 and $309,363, respectively, and accumulated amortization associated with finance leases was $148,997 and $139,071, respectively, included in property and equipment, net, on the Company's consolidated balance sheet. Finance lease obligations are included in long-term debt. See Note 12 for further details on long-term debt.In certain markets, the Company acquires and develops dialysis centers. Upon completion, the Company sells the center to a third party and leases the space back with the intent of operating the center on a long-term basis. Both the sale and leaseback terms are generally market terms. Substantially all of the lease terms are consistent with the Company's other leases with the majority of the leases under non-cancellable operating leases.The components of lease expense were as follows:Year ended December 31,Lease cost202520242023Operating lease cost(1):Fixed lease expense$570,303 $557,591 $556,844 Variable lease expense131,877 131,539 135,990 Finance lease cost:Amortization of leased assets26,596 28,262 26,964 Interest on lease liabilities8,981 10,885 11,724 Net lease cost$737,757 $728,277 $731,522 (1)Includes short-term lease expense and sublease income, which are immaterial. Other information related to leases was as follows:Year ended December 31,Lease term and discount rate202520242023Weighted average remaining lease term (years):Operating leases6.87.27.6Finance leases7.47.98.5Weighted average discount rate:Operating leases4.3 %4.1 %4.0 %Finance leases4.4 %4.6 %4.