DaVita Inc.

Company Overview

Business Model: DaVita Inc. is a leading healthcare provider focused on transforming care delivery and improving the quality of life for patients globally. As a comprehensive kidney care provider, the Company offers services across the entire kidney health journey, from early diagnosis and prevention to transplant support, delivered at home, in dialysis centers, hospitals, and skilled nursing facilities. Its primary revenue generation mechanism is its U.S. dialysis and related lab services business, which treats patients with chronic kidney failure and end stage renal disease (ESRD) in the United States. Additionally, DaVita Inc. operates U.S. integrated kidney care (IKC) services and international dialysis operations, along with other ancillary services.

Market Position: DaVita Inc. is a leading dialysis provider in the United States, holding approximately a 36% share of the U.S. dialysis market based on the number of patients served. The Company has been an industry leader in clinical quality and innovation for 25 years, consistently recognized in the Centers for Medicare & Medicaid Services’ (CMS) Quality Incentive Program (QIP) for ten consecutive years and under CMS’ Five-Star Quality Rating System for nine consecutive years. Its largest competitor, Fresenius Medical Care, also manufactures dialysis supplies and equipment, which may provide cost advantages.

Recent Strategic Developments: DaVita Inc. has made significant investments in expanding its integrated care capabilities, aiming to coordinate care across the renal continuum from chronic kidney disease (CKD) to ESRD and kidney transplant. This includes leveraging improved technology, data sharing, and value-based contracting. The IKC business has grown to serve 70,400 patients in risk-based integrated care arrangements and an additional 11,600 patients in other integrated care arrangements as of December 31, 2024. The Company is an active participant in CMMI’s Comprehensive Kidney Care Contracting (CKCC) model and has percent-of-premium arrangements in Medicare Advantage ESRD Chronic Special Needs Plans. In 2024, DaVita Inc. expanded its international footprint by acquiring 198 dialysis centers and developing 5 new centers, contributing to a net increase of 142 international centers. This includes the acquisition of Fresenius Medical Care AG's dialysis operations in Chile, Ecuador, and Colombia, with the Brazil transaction expected to close mid-2025. The Company also completed financing transactions in 2024, extending the maturity of a portion of its Term Loan B-1 by $1.640 billion, incurring an incremental Term Loan A-1 of $1.100 billion, and issuing $1.000 billion in 6.875% senior notes due 2032, partially used to repay existing debt. Additionally, DaVita Inc. purchased $2.500 billion notional amount of forward interest rate caps to manage interest rate exposure through 2027.

Geographic Footprint: DaVita Inc. operates extensively across the United States and internationally. In the U.S., it manages 2,657 outpatient dialysis centers across 46 states and the District of Columbia, serving approximately 200,800 patients. Internationally, the Company operates or provides administrative services to 509 outpatient dialysis centers in 13 countries, serving approximately 80,300 patients as of December 31, 2024. These countries include Brazil (100 centers), Colombia (72), Chile (63), Poland (63), Germany (49), Malaysia (44), United Kingdom (27), Saudi Arabia (26), Ecuador (22), China (12), Japan (12), Portugal (12), and Singapore (7). International operations represented approximately 8% of consolidated revenues in 2024.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Operating Margin: 16.3% (2024) vs 13.2% (2023)
• Net Margin: 9.8% (2024) vs 7.9% (2023)

Investment in Growth:

• Capital Expenditures: $0.555 billion (2024) vs $0.568 billion (2023)
• Strategic Investments: Acquisition expenditures were $0.246 billion in 2024, significantly up from $0.026 billion in 2023, reflecting international expansion. The Company also made equity method investments of $5.2 million in 2024, following $276.2 million in 2023 (which included the formation of Mozarc Medical Holding LLC). DaVita Inc. continues to invest substantial resources in developing its integrated kidney care business and value-based care initiatives.

Business Segment Analysis

U.S. dialysis

Financial Performance:

• Revenue: $11.391 billion (+4.2% YoY)
• Operating Income: $2.121 billion (+19.5% YoY)
• Operating Margin: 18.6%
• Key Growth Drivers: The increase in revenue was primarily driven by a $13.88 increase in average patient service revenue per treatment, resulting from higher average reimbursement rates (including Medicare rate increases), revenue cycle improvements, favorable changes in patient mix, and increased hospital inpatient dialysis rates. Treatment volume increased by 0.5% due to additional treatment days and acquired growth, partially offset by elevated missed treatments and flat overall patient growth in 2024 compared to 2023, influenced by elevated mortality rates relative to pre-COVID-19 levels. Approximately 89% of U.S. dialysis patients were covered by government-based programs, with 74% under Medicare and Medicare Advantage plans. Commercial payors accounted for 33% of U.S. dialysis patient service revenues and 11% of U.S. dialysis patients, with a slight increase in commercial patients as a percentage of total U.S. dialysis patients in 2024.

Product Portfolio:

• DaVita Inc. provides kidney dialysis services for patients with ESRD through a network of 2,657 outpatient dialysis centers in 46 states and the District of Columbia.
• The Company also contracts to provide hospital inpatient dialysis services in approximately 760 hospitals.
• Home-based dialysis services (home hemodialysis and peritoneal dialysis) are supported by many outpatient centers, with approximately 14% of U.S. ESKD dialysis patients utilizing home-based dialysis in 2022.
• A separately licensed clinical laboratory specializes in ESKD patient testing, providing routine and physician-prescribed tests.
• Management and administrative services are provided to 52 outpatient dialysis centers in which DaVita Inc. holds a noncontrolling interest or which are wholly-owned by third parties.

Market Dynamics:

• The U.S. dialysis industry is highly competitive, with competition from large and medium-sized providers for acquisitions, patients, and medical director services. New dialysis providers, individual nephrologists, and former medical directors also pose competition.
• Fresenius Medical Care, a major competitor, manufactures its own dialysis supplies and equipment, potentially offering cost advantages.
• The underlying ESKD dialysis patient population experienced a decline in annual growth of 0.4% from 2021 to 2022, a slowdown from historical compound annual growth rates of 3.3% (2012-2022) and 3.4% (2017-2022).

Other - Ancillary services

Financial Performance:

• Revenue: $1.510 billion (+16.2% YoY)
• Operating Income: $82.7 million (vs -$8.7 million in 2023)
• Operating Margin: 5.5%
• Key Growth Drivers: International revenues increased significantly due to acquired and non-acquired treatment growth and average reimbursement rate increases in certain countries. The U.S. Integrated Kidney Care (IKC) business saw a decrease in operating loss, primarily driven by a net increase in shared savings, decreased medical costs for special needs plans, and the divestiture of the physician services business, partially offset by decreased revenues from special needs plans and continued investments in integrated care support functions. International operating income also benefited from a $74.3 million non-cash gain on a change in business ownership interests from the consolidation of the APAC joint venture.

Product Portfolio:

• U.S. Integrated Kidney Care (IKC): Provides advanced integrated care management services to health plans and government programs for patients with ESKD and CKD. Services include health monitoring, clinical coordination, predictive analytics, and medical claims analysis, operating under percent-of-premium, shared savings/losses, and pay-for-performance models.
• U.S. Other Ancillary services:
  • DaVita Clinical Research (DCR): A provider-based specialty clinical research organization offering services for clinical drug research and device development.
  • MedSleuth: A transplant software business that enhances connectivity among transplant candidates, centers, physicians, and care teams.
  • DaVita Venture Group (DVG): Focuses on innovative products, solutions, and businesses in digital health, pharmaceuticals, medical devices, and care delivery models for kidney disease.
• International dialysis operations: Owns or operates 509 outpatient dialysis centers in 13 countries outside the U.S.

Market Dynamics:

• The integrated care market is competitive, with other dialysis providers and non-traditional entrants expanding into value-based care arrangements.
• International expansion faces competition from large and medium-sized providers for acquisition targets and physician relationships.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: DaVita Inc. repurchased 9.833 million shares for $1.389 billion in 2024, contributing to a 9.3% reduction in outstanding share count year-over-year. In 2023, 2.904 million shares were repurchased for $0.286 billion.
• Dividend Payments: The Company has not declared or paid cash dividends on its common stock since its initial public offering and has no current plans to do so.
• Future Capital Return Commitments: As of December 31, 2024, DaVita Inc. had a Board-authorized share repurchase plan of $2.0 billion, with $1.811 billion remaining available as of February 13, 2025. The Company also has a share repurchase agreement with Berkshire Hathaway Inc. to maintain its beneficial ownership at 45.0% of outstanding common stock.

Balance Sheet Position:

• Cash and Equivalents: $0.795 billion (2024) vs $0.380 billion (2023)
• Total Debt: $9.511 billion (2024) vs $8.446 billion (2023)
• Net Cash Position: -$8.716 billion (net debt)
• Debt Maturity Profile (principal payments in millions):
  • 2025: $270,867
  • 2026: $174,693
  • 2027: $202,674
  • 2028: $1,922,275
  • 2029: $39,993
  • Thereafter: $6,900,604

Cash Flow Generation:

• Operating Cash Flow: $2.022 billion (2024) vs $2.059 billion (2023)
• Free Cash Flow: $1.162 billion (2024) vs $1.236 billion (2023)
• Cash Conversion Metrics: U.S. dialysis accounts receivable decreased to $1.615 billion in 2024 from $1.632 billion in 2023, with Days Sales Outstanding (DSO) improving to 52 days in 2024 from 54 days in 2023, primarily due to continued collections improvements. Approximately 23% of U.S. dialysis accounts receivable balances were more than six months old as of December 31, 2024.

Operational Excellence

Production & Service Model: DaVita Inc. employs a patient-centric care model that emphasizes choice in care models and modalities, aiming to improve equitable clinical outcomes and quality of life. Its clinical outcomes are driven by a team of registered nurses, licensed practical/vocational nurses, patient care technicians, social workers, registered dietitians, biomedical technicians, and administrative staff. The Company's domestic and international Chief Medical Officers lead teams of nephrologists, supported by a Physician Council that advises senior management. Value-based care arrangements foster collaboration among providers to enhance care coordination and early intervention, leading to improved outcomes and reduced costs.

Supply Chain Architecture: Key Suppliers & Partners:

• Dialysis Products & Equipment: Fresenius Medical Care is a significant supplier of dialysis products and equipment, with which DaVita Inc. has purchase agreements.
• Home-based Dialysis Supplies: The Company relies on a limited number of suppliers for critical home-based dialysis supplies, including saline and peritoneal dialysate. A severe weather event in 2024 impacted one such supplier, leading to increased expenses and slowed growth in the home-based dialysis business.
• Claims Processing: Change Healthcare, a subsidiary of UnitedHealth Group, serves as a key intermediary for processing the majority of domestic commercial and government payment claims. A cybersecurity breach at Change Healthcare in 2024 temporarily suspended claims processing, impacting DaVita Inc.'s cash flows and collections.

Facility Network:

• Corporate Headquarters: Located in Denver, Colorado (one owned, one leased).
• International Headquarters: Leased in the United Kingdom.
• Clinical Laboratory: Operates a leased facility in Florida.
• Outpatient Dialysis Centers: The vast majority of the 2,657 U.S. and 509 international outpatient dialysis centers are leased.
• Research & Development: DaVita Clinical Research operates as a provider-based specialty clinical research organization.

Operational Metrics:

• Total U.S. dialysis treatments increased by 0.5% to 29.046 million in 2024.
• Average treatments per day remained flat at 92,534 in 2024.
• Normalized non-acquired treatment growth was 0% in 2024.
• The Company achieved a net decrease of 18 U.S. dialysis centers in 2024, while international centers increased by 142.
• Average clinical hours per treatment decreased in 2024 due to reduced teammate turnover, though turnover remains elevated compared to pre-COVID-19 levels.
• DaVita Inc. has maintained its position as an industry leader in CMS's Quality Incentive Program and Five-Star Quality Rating System.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Primarily through its network of freestanding outpatient dialysis centers, staffed by care teams.
• Channel Partners: Contracts with approximately 760 hospitals across the U.S. to provide inpatient dialysis services.
• Digital Platforms: Leverages improved technology and data sharing as part of its integrated kidney care initiatives.

Customer Portfolio: Enterprise Customers:

• Strategic Partnerships: Maintains strong relationships with local nephrologists and payors. Nearly 5,300 nephrologists refer patients to DaVita Inc.'s outpatient dialysis centers, and over 900 individual physicians and physician groups are contracted as medical directors. The Company also engages in joint ventures with nephrologists, hospitals, and other healthcare providers.
• Customer Concentration: No single commercial payor accounted for more than 10% of total U.S. dialysis revenues in 2024.
• Government Programs: Approximately 89% of U.S. dialysis patients are covered by government-based programs, with 74% under Medicare and Medicare Advantage plans.

Geographic Revenue Distribution:

• U.S. dialysis: Represents approximately 88% of consolidated revenues in 2024.
  • Medicare and Medicare Advantage plans: 56% of U.S. dialysis patient service revenues.
  • Medicaid and managed Medicaid plans: 8% of U.S. dialysis patient service revenues.
  • Other government-based programs: 3% of U.S. dialysis patient service revenues.
  • Commercial (including hospital dialysis services): 33% of U.S. dialysis patient service revenues.
• International operations: Account for approximately 8% of consolidated revenues in 2024.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The U.S. dialysis industry is highly competitive, with a consistent influx of new and emerging entrants in the kidney healthcare sector. The underlying ESKD dialysis patient population experienced a slight decline in annual growth of 0.4% from 2021 to 2022, a slowdown from previous growth trends. Value-based care arrangements are increasingly influencing the kidney health space, fostering greater collaboration among nephrologists and other providers. The industry has also seen increased union organizing activities.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Fresenius Medical Care: The largest competitor, which manufactures dialysis supplies and equipment in addition to operating dialysis centers globally, potentially providing cost advantages.
• Large and medium-sized providers: Compete for acquisitions, patients, and medical director services.
• New dialysis providers, individual nephrologists, and former medical directors: Establish their own dialysis units or facilities.
• Other dialysis providers: Expanding into integrated care market arrangements with payors, physicians, and hospitals.

Emerging Competitive Threats:

• Non-traditional providers: New entrants with substantial resources and capital are pursuing opportunities in the dialysis and pre-dialysis space, including developing innovative technologies and new business activities across the kidney care continuum.
• Disruptive Technologies & Treatments: The development and application of innovative technologies, drugs (e.g., GLP-1 receptor agonists, SGLT2 inhibitors), or other treatments that could slow CKD progression or increase transplant rates may impact the growth rate of the kidney care patient population and transform the industry.

Competitive Response Strategy: DaVita Inc. is expanding its offerings across the full kidney care continuum, from CKD care to dialysis treatment and transplant facilitation. This includes continued dialysis acquisitions, development of new outpatient dialysis centers, and maintaining strong referral source relationships. The Company is also investing significantly in its integrated kidney care business and value-based care initiatives to adapt to evolving market dynamics.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: The Company faces risks from general economic, marketplace, and global health conditions, including inflation, interest rate volatility, labor market conditions, wage pressure, and supply chain challenges. Elevated patient mortality rates (relative to pre-COVID-19 levels) and increased missed treatment rates (due to severe weather events and supply disruptions) have negatively impacted treatment volumes and patient census. The potential expiration of ACA premium tax credits at the end of 2025 could reduce commercial insurance affordability, shifting patients to lower-paying government programs. Commercial payors may also implement restrictive plan designs or cease primary payments after 30 months. Challenges to charitable premium assistance (e.g., California AB 290) could limit patient access to optimal insurance coverage. Technology Disruption: The development of innovative technologies, drugs (such as GLP-1 receptor agonists and SGLT2 inhibitors), or other treatments that slow CKD progression or increase kidney transplant availability could reduce demand for dialysis services. Customer Concentration: A material portion of commercial and Medicare Advantage revenue is concentrated with a limited number of commercial payors, making the Company vulnerable to changes in these relationships or payment terms.

Operational & Execution Risks

Supply Chain Vulnerabilities: DaVita Inc. is exposed to risks from a limited number of suppliers for critical home-based dialysis products, as demonstrated by a severe weather event in 2024 that disrupted supply. Reliance on Fresenius Medical Care as a major supplier also presents dependency risk. Capacity Constraints: Potential staffing shortages, particularly for skilled clinical personnel, or high turnover rates could lead to unplanned center closures, adversely impacting clinical operations and service delivery.

Financial & Regulatory Risks

Market & Financial Risks: The Company's substantial indebtedness (total debt of $9.511 billion as of December 31, 2024) and variable interest rate debt expose it to interest rate volatility. Its ability to service debt and fund operations depends on generating sufficient cash flows, which are subject to economic and regulatory factors. Debt covenants, including a maximum leverage ratio, impose restrictions on financial and operational flexibility. Goodwill, valued at $7.375 billion, is subject to impairment risk from deteriorating economic conditions. Regulatory & Compliance Risks: DaVita Inc. operates in a complex and evolving regulatory environment, subject to extensive federal, state, local, and international laws (e.g., Medicare/Medicaid, Anti-Kickback Statute, Stark Law, False Claims Act, HIPAA, Cures Act, No Surprises Act, price transparency rules, state-specific regulations like California SB 525). Non-compliance or changes in these regulations could result in significant financial penalties, loss of certifications, exclusion from government programs, and reputational harm. Ongoing legal proceedings and governmental investigations (e.g., U.S. Attorney investigations, California Department of Insurance, District of Columbia Office of Attorney General, Federal Trade Commission antitrust investigations, and a putative class action suit) pose risks of substantial financial penalties, mandated practice changes, and diversion of management attention.

Geopolitical & External Risks

Geopolitical Exposure: Global events such as conflicts (e.g., Russia-Ukraine, Israel-Gaza), severe weather events, and natural disasters can intensify supply chain challenges, impact macroeconomic conditions, and disrupt operations. International expansion exposes the Company to political instability, public health crises, trade regulations, foreign currency fluctuations, and varying legal systems in 13 countries.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: DaVita Inc. focuses on innovation across the kidney care continuum. DaVita Clinical Research (DCR) is a provider-based clinical research organization engaged in drug and device development. MedSleuth, its transplant software business, aims to improve connectivity and outcomes for transplant patients. The DaVita Venture Group (DVG) actively invests in and partners with companies focused on digital health, pharmaceuticals, medical devices, and care delivery models for kidney disease. The Company is also investing in integrating clinical IT systems and building data interoperability capabilities, with increasing adoption of machine learning and artificial intelligence in its operations.

Intellectual Property Portfolio: While specific details on patent holdings or licensing programs are not provided, the Company emphasizes protecting its proprietary rights to systems as a key aspect of its information security strategy.

Technology Partnerships: DaVita Inc. engages in technology-based, administrative, financial, and other collaboration and incentive arrangements with physician partners and other providers to support its innovative care model and expand IKC programs.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Board of Directors actively engages in annual work with the CEO on management development and succession planning to ensure leadership continuity.

Board Composition: The Board of Directors is composed of 40% women and 20% people of color. Board Committees, including the Audit Committee, Nominating and Governance Committee, and Compensation Committee, are composed solely of independent directors and operate under written charters. Two members of the Audit Committee hold a CERT Certificate in Cybersecurity Oversight.

Human Capital Strategy

Workforce Composition: As of December 31, 2024, DaVita Inc. employed approximately 76,000 teammates globally, with about 75% located in the U.S. The U.S. workforce is composed of 78% women and 58% people of color. Managers in the U.S. are 73% women and 62% directors are women, while leaders with profit and loss responsibility are 52% women and 27% people of color.

Talent Management: Acquisition & Retention: The Company implements strategies to attract, develop, and retain talent, including programs to cultivate a talent pipeline and provide professional growth opportunities. Clinical teammate turnover decreased in 2024 but remains elevated compared to pre-COVID-19 levels. In 2024, approximately 58% of U.S. managers were promoted from within. Programs like "DaVita Ladders" offer clarity on career progression and competitive pay, while "Bridge to Your Dreams" supports high-performing teammates pursuing nursing degrees with financial assistance and role placement. Diversity & Development: DaVita Inc. is committed to fostering a welcoming and open environment, with 84% of U.S. teammates reporting a sense of belonging. The Company offers training for leaders on cultivating belonging and reducing bias. It provides a robust set of career development offerings and leadership programs.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: While specific emissions targets or carbon neutrality commitments are not detailed, the Company has engaged in virtual power purchase arrangements, which contributed to lower expenses in 2023. Social Impact Initiatives: DaVita Inc. supports its teammates through the DaVita Village Network, providing financial assistance for specific tragedies or hardships. The Company's care model aims for more preventative, better integrated, and personalized care to improve patient outcomes and quality of life.

Business Cyclicality & Seasonality

Demand Patterns: Treatment volumes can be adversely impacted by higher missed treatment rates, particularly in the second half of the year due to severe weather events. The business is sensitive to economic conditions, as deterioration can lead to reduced federal and state tax revenues, potentially impacting government-sponsored programs. Extended job losses could result in a smaller percentage of patients covered by higher-paying commercial insurance plans. The ESKD dialysis patient population growth rate has shown recent slowdowns, which could impact demand for dialysis treatments.

Planning & Forecasting: DaVita Inc. implements cost savings initiatives, including general and administrative cost efficiencies, clinic optimization, capacity utilization improvement, and revenue cycle management, to mitigate cost and volume pressures.

Regulatory Environment & Compliance

Regulatory Framework: DaVita Inc. operates under a complex and extensive regulatory framework, including federal and state Medicare and Medicaid coverage and reimbursement statutes, anti-kickback laws, Stark Law, False Claims Act, and state fraud and abuse laws. The Company's dialysis centers require certification by CMS and state licenses. Value-based care initiatives are influenced by CMMI payment models (e.g., ETC, KCF, CKCC). Recent regulations like the 21st Century Cures Act (data interoperability, information blocking, patient access) and the No Surprises Act (Good Faith Estimate requirements) impact operations and compliance. State-level initiatives, such as California's AB 290 (limiting reimbursement for charitable premium assistance) and SB 525 (raising minimum wage for healthcare workers), also affect the business. Internationally, the Company is subject to the Foreign Corrupt Practices Act and various data protection laws (e.g., GDPR, UK GDPR, LGPD, DSL).

Legal Proceedings: DaVita Inc. is a party to various lawsuits, governmental investigations, and audits. In 2024, the Company finalized a settlement for a 2017 U.S. Attorney Colorado Investigation for $34.487 million. Other ongoing matters include a 2020 U.S. Attorney New Jersey Investigation (with a pending motion to dismiss a fourth amended complaint), a 2020 California Department of Insurance Investigation regarding patient communications about insurance and charitable assistance, a 2023 District of Columbia Office of Attorney General antitrust investigation into the American Kidney Fund, and a 2024 Federal Trade Commission investigation into medical director services and restrictive covenants. A 2021 antitrust indictment against the Company and its former CEO was acquitted in 2022, but a related putative class action complaint is ongoing.

Tax Strategy & Considerations

Tax Profile: DaVita Inc.'s effective income tax rate was 18.3% in 2024, down from 18.7% in 2023, primarily due to non-taxable non-cash gains from previously nonconsolidated businesses and decreased nondeductible executive compensation, partially offset by additional expense for finalized tax returns and reduced benefits from uncertain tax positions. The effective income tax rate attributable to DaVita Inc. was 22.9% in 2024, down from 24.3% in 2023. The Company holds federal, state, and international net operating loss carryforwards, with varying expiration dates. DaVita Inc. remains indefinitely reinvested in several foreign jurisdictions, and no significant taxes are expected upon remittance of such earnings due to the 2017 Tax Act.

Insurance & Risk Transfer

Risk Management Framework: DaVita Inc. is primarily self-insured for professional and general liability, workers' compensation, automobile risks, and a portion of employment liability practice risks through wholly-owned captive insurance companies. It is also predominantly self-insured for employee medical and other health benefits. The Company maintains excess coverage or reinsurance for various liabilities, including cybersecurity. Medical directors are required to maintain their own malpractice insurance, with DaVita Inc.'s liability policies covering their duties at its outpatient dialysis centers. The Audit Committee oversees cybersecurity insurance, and the Company maintains a cybersecurity risk insurance policy.

Risk Transfer Mechanisms: DaVita Inc. manages interest rate risk through derivative financial instruments, specifically interest rate cap agreements. In 2024, the Company purchased an additional $2.500 billion notional amount of forward interest rate caps to hedge against significant interest rate increases through 2027. As of December 31, 2024, the effective portion of its 2023 interest rate cap agreements capped exposure to SOFR variable interest rate changes on a significant portion of its floating rate debt. The Company does not consider its foreign exchange risk significant to the consolidated enterprise and has not engaged in hedging international transactions or net investments.