Supplemental Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Consolidating Statements of Income

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2013

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	0		$	5,658,699		$	2,780,983		$	(28,644	)	$	8,411,038
Less: Provision for doubtful accounts		0			657,106			470,110			0			1,127,216
Net Revenues		0			5,001,593			2,310,873			(28,644	)		7,283,822
Operating charges:
Salaries, wages and benefits		0			2,573,205			1,031,415			0			3,604,620
Other operating expenses		0			972,170			523,382			(26,808	)		1,468,744
Supplies expense		0			510,078			311,011			0			821,089
Depreciation and amortization		0			236,958			100,214			0			337,172
Lease and rental expense		0			62,518			37,076			(1,836	)		97,758
EHR incentive income		0			(43,027	)		(17,997	)		0			(61,024	)
		0			4,311,902			1,985,101			(28,644	)		6,268,359
Income from operations		0			689,691			325,772			0			1,015,463
Interest expense		139,793			3,365			2,973			0			146,131
Interest (income) expense, affiliate		0			84,640			(84,640	)		0			0
Equity in net income of consolidated affiliates		(597,020	)		(141,004	)		0			738,024			0
Income before income taxes		457,227			742,690			407,439			(738,024	)		869,332
Provision for income taxes		(53,506	)		262,346			106,469			0			315,309
Net income		510,733			480,344			300,970			(738,024	)		554,023
Less: Income attributable to noncontrolling interests		0			0			43,290			0			43,290
Net income attributable to UHS	$	510,733		$	480,344		$	257,680		$	(738,024	)	$	510,733

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	0		$	5,152,816		$	2,562,781		$	(27,526	)	$	7,688,071
Less: Provision for doubtful accounts		0			411,538			315,133			0			726,671
Net Revenues		0			4,741,278			2,247,648			(27,526	)		6,961,400
Operating charges:
Salaries, wages and benefits		0			2,452,187			988,730			0			3,440,917
Other operating expenses		0			899,274			502,592			(25,744	)		1,376,122
Supplies expense		0			496,848			302,773			0			799,621
Depreciation and amortization		0			210,867			91,559			0			302,426
Lease and rental expense		0			59,596			37,071			(1,782	)		94,885
Transaction costs		0			5,716			0			0			5,716
EHR incentive income		0			(14,284	)		(15,754	)		0			(30,038	)
Costs related to extinguishment of debt		29,170			0			0			0			29,170
		29,170			4,110,204			1,906,971			(27,526	)		6,018,819
Income from operations		(29,170	)		631,074			340,677			0			942,581
Interest expense		172,467			3,749			2,702			0			178,918
Interest (income) expense, affiliate		0			93,363			(93,363	)		0			0
Equity in net income of consolidated affiliates		(567,906	)		(141,983	)		0			709,889			0
Income before income taxes		366,269			675,945			431,338			(709,889	)		763,663
Provision for income taxes		(77,177	)		237,072			114,721			0			274,616
Net income		443,446			438,873			316,617			(709,889	)		489,047
Less: Income attributable to noncontrolling interests		0			0			45,601			0			45,601
Net income attributable to UHS	$	443,446		$	438,873		$	271,016		$	(709,889	)	$	443,446

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	0		$	4,917,358		$	2,465,916		$	(26,476	)	$	7,356,798
Less: Provision for doubtful accounts		0			340,121			256,455			0			596,576
Net revenues		0			4,577,237			2,209,461			(26,476	)		6,760,222
Operating charges:
Salaries, wages and benefits		0			2,371,961			954,417			0			3,326,378
Other operating expenses		200			923,579			454,601			(24,687	)		1,353,693
Supplies expense		0			499,200			306,289			0			805,489
Depreciation and amortization		0			207,981			79,230			0			287,211
Lease and rental expense		0			60,768			31,344			(1,789	)		90,323
		200			4,063,489			1,825,881			(26,476	)		5,863,094
Income from operations		(200	)		513,748			383,580			0			897,128
Interest expense		195,404			3,212			2,176			0			200,792
Interest (income) expense, affiliate		0			87,205			(87,205	)		0			0
Equity in net income of consolidated affiliates		(518,797	)		(157,009	)		0			675,806			0
Income before income taxes		323,193			580,340			468,609			(675,806	)		696,336
Provision for income taxes		(74,974	)		198,091			124,349			0			247,466
Net income		398,167			382,249			344,260			(675,806	)		448,870
Less: Income attributable to noncontrolling interests		0			0			50,703			0			50,703
Net income attributable to UHS	$	398,167		$	382,249		$	293,557		$	(675,806	)	$	398,167

Condensed Consolidating Statements of Comprehensive Income

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2013

(amounts in thousands)

	Parent			Guarantors		Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	510,733		$	480,344	$	300,970	$	(738,024	)	$	554,023
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		16,963			0		0		0			16,963
Amortization of terminated hedge		(336	)		0		0		0			(336	)
Minimum Pension Liability		14,657			14,657		0		(14,657	)		14,657
Other comprehensive income before tax		31,284			14,657		0		(14,657	)		31,284
Income tax expense related to items of other comprehensive income		11,940			5,670		0		(5,670	)		11,940
Total other comprehensive income, net of tax		19,344			8,987		0		(8,987	)		19,344
Comprehensive income		530,077			489,331		300,970		(747,011	)		573,367
Less: Comprehensive income attributable to noncontrolling interests		0			0		43,290		0			43,290
Comprehensive income attributable to UHS	$	530,077		$	489,331	$	257,680	$	(747,011	)	$	530,077

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012

(amounts in thousands)

	Parent			Guarantors		Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	443,446		$	438,873	$	316,617	$	(709,889	)	$	489,047
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		6,677			0		0		0			6,677
Amortization of terminated hedge		(336	)		0		0		0			(336	)
Minimum Pension Liability		4,986			4,986		0		(4,986	)		4,986
Other comprehensive income before tax		11,327			4,986		0		(4,986	)		11,327
Income tax expense related to items of other comprehensive income		4,306			1,898		0		(1,898	)		4,306
Total other comprehensive income, net of tax		7,021			3,088		0		(3,088	)		7,021
Comprehensive income		450,467			441,961		316,617		(712,977	)		496,068
Less: Comprehensive income attributable to noncontrolling interests		0			0		45,601		0			45,601
Comprehensive income attributable to UHS	$	450,467		$	441,961	$	271,016	$	(712,977	)	$	450,467

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011 (amounts in thousands)
	Parent			Guarantors			Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	398,167		$	382,249		$	344,260	$	(675,806	)	$	448,870
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		(37,477	)		0			0		0			(37,477	)
Amortization of terminated hedge		(336	)		0			0		0			(336	)
Minimum Pension Liability		(12,397	)		(12,397	)		0		12,397			(12,397	)
Other comprehensive income before tax		(50,210	)		(12,397	)		0		12,397			(50,210	)
Income tax expense related to items of other comprehensive income		(19,174	)		(4,691	)		0		4,691			(19,174	)
Total other comprehensive income, net of tax		(31,036	)		(7,706	)		0		7,706			(31,036	)
Comprehensive income		367,131			374,543			344,260		(668,100	)		417,834
Less: Comprehensive income attributable to noncontrolling interests		0			0			50,703		0			50,703
Comprehensive income attributable to UHS	$	367,131		$	374,543		$	293,557	$	(668,100	)	$	367,131

Condensed Consolidating Balance Sheet

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2013

(amounts in thousands)

	Parent		Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Assets
Current assets:
Cash and cash equivalents	$	0	$	7,990		$	9,248		$	0		$	17,238
Accounts receivable, net		0		799,898			317,063			0			1,116,961
Supplies		0		63,562			38,219			0			101,781
Deferred income taxes		76,719		43,184			0			0			119,903
Other current assets		0		63,786			12,660			0			76,446
Total current assets		76,719		978,420			377,190			0			1,432,329
Investments in subsidiaries		6,378,499		1,476,911			0			(7,855,410	)		0
Intercompany receivable		226,592		0			531,411			(758,003	)		0
Intercompany note receivable		0		0			982,568			(982,568	)		0
Property and equipment		0		4,093,914			1,597,988			0			5,691,902
Less: accumulated depreciation		0		(1,478,758	)		(770,975	)		0			(2,249,733	)
		0		2,615,156			827,013			0			3,442,169
Other assets:
Goodwill		0		2,552,190			496,826			0			3,049,016
Deferred charges		49,866		5,577			2,438			0			57,881
Other		8,411		251,365			70,552			0			330,328
	$	6,740,087	$	7,879,619		$	3,287,998		$	(9,595,981	)	$	8,311,723
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	97,403		916			993			0		$	99,312
Accounts payable and accrued liabilities		28,099		837,354			87,996			0			953,449
Federal and state taxes		4,963		2,164			0			0			7,127
Total current liabilities		130,465		840,434			88,989			0			1,059,888
Intercompany payable		0		758,003			0			(758,003	)		0
Other noncurrent liabilities		7,591		199,104			77,894			0			284,589
Long-term debt		3,168,819		5,337			35,606			0			3,209,762
Intercompany note payable		0		982,568			0			(982,568	)		0
Deferred income taxes		183,233		55,915			0			0			239,148
Redeemable noncontrolling interests		0		0			218,107			0			218,107
UHS common stockholders’ equity		3,249,979		5,038,258			2,817,152			(7,855,410	)		3,249,979
Noncontrolling interest		0		0			50,250			0			50,250
Total equity		3,249,979		5,038,258			2,867,402			(7,855,410	)		3,300,229
	$	6,740,087	$	7,879,619		$	3,287,998		$	(9,595,981	)	$	8,311,723

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2012

(amounts in thousands)

	Parent		Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Assets
Current assets:
Cash and cash equivalents	$	0	$	11,949		$	11,522		$	0		$	23,471
Accounts receivable, net		7,154		741,983			318,060			0			1,067,197
Supplies		0		61,100			37,900			0			99,000
Deferred income taxes		61,364		43,555			322			(780	)		104,461
Other current assets		2,188		75,117			10,631			0			87,936
Current assets held for sale		0		0			25,431			0			25,431
Total current assets		70,706		933,704			403,866			(780	)		1,407,496
Investments in subsidiaries		5,781,479		1,326,920			0			(7,108,399	)		0
Intercompany receivable		644,105		0			360,538			(1,004,643	)		0
Intercompany note receivable		0		0			1,007,453			(1,007,453	)		0
Property and equipment		0		3,867,471			1,500,874			0			5,368,345
Less: accumulated depreciation		0		(1,288,975	)		(697,135	)		0			(1,986,110	)
		0		2,578,496			803,739			0			3,382,235
Other assets:
Goodwill		820		2,554,531			481,414			0			3,036,765
Deferred charges		67,831		5,839			2,218			0			75,888
Other		9,645		209,558			79,256			0			298,459
	$	6,574,586	$	7,609,048		$	3,138,484		$	(9,121,275	)	$	8,200,843
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	0		990			1,599			0		$	2,589
Accounts payable and accrued liabilities		10,985		740,484			138,088			0			889,557
Current liabilities held for sale		0		0			850			0			850
Federal and state taxes		0		900			620			(458	)		1,062
Total current liabilities		10,985		742,374			141,157			(458	)		894,058
Intercompany payable		0		1,004,643			0			(1,004,643	)		0
Other noncurrent liabilities		46,048		243,478			105,829			0			395,355
Long-term debt		3,676,940		5,372			45,119			0			3,727,431
Intercompany note payable		0		1,007,453			0			(1,007,453	)		0
Deferred income taxes		127,268		56,801			0			(322	)		183,747
Redeemable noncontrolling interests		0		0			234,303			0			234,303
UHS common stockholders’ equity		2,713,345		4,548,927			2,559,472			(7,108,399	)		2,713,345
Noncontrolling interest		0		0			52,604			0			52,604
Total equity		2,713,345		4,548,927			2,612,076			(7,108,399	)		2,765,949
	$	6,574,586	$	7,609,048		$	3,138,484		$	(9,121,275	)	$	8,200,843

Condensed Consolidating Statements of Cash Flows

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2013

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments		Total Consolidated Amounts
Net cash provided by operating activities	$	17,946		$	587,083		$	279,212		$	0	$	884,241
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(269,419	)		(89,074	)		0		(358,493	)
Acquisition of property and businesses		0			(8,094	)		(4,542	)		0		(12,636	)
Proceeds received from sale of assets and businesses		0			7,916			29,566			0		37,482
Costs incurred for purchase and development of electronic health records application		0			(49,811	)		0			0		(49,811	)
Net cash used in investing activities		0			(319,408	)		(64,050	)		0		(383,458	)
Cash Flows from Financing Activities:
Reduction of long-term debt		(429,996	)		(109	)		(10,119	)		0		(440,224	)
Additional borrowings		15,761			0			0			0		15,761
Financing costs		(231	)		0			0			0		(231	)
Repurchase of common shares		(27,201	)		0			0			0		(27,201	)
Dividends paid		(19,621	)		0			0			0		(19,621	)
Issuance of common stock		5,708			0			0			0		5,708
Excess income tax benefits related to stock based compensation		20,121			0			0			0		20,121
Profit distributions to noncontrolling interests		0			0			(61,329	)		0		(61,329	)
Changes in intercompany balances with affiliates, net		417,513			(271,525	)		(145,988	)		0		0
Net cash used in financing activities		(17,946	)		(271,634	)		(217,436	)		0		(507,016	)
Decrease in cash and cash equivalents		0			(3,959	)		(2,274	)		0		(6,233	)
Cash and cash equivalents, beginning of period		0			11,949			11,522			0		23,471
Cash and cash equivalents, end of period	$	0		$	7,990		$	9,248		$	0	$	17,238

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net cash (used in) provided by operating activities	$	(37,648	)	$	594,606		$	242,273		$	0		$	799,231
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(312,190	)		(51,002	)		0			(363,192	)
Acquisition of property and businesses		0			(513,596	)		(14,251	)		0			(527,847	)
Proceeds received from sale of assets and businesses		0			142,667			6,644			0			149,311
Costs incurred for purchase and development of electronic health records application		0			(54,362	)		0			0			(54,362	)
Return of Deposit on terminated purchase agreement		6,500			0			0			0			6,500
Net cash provided by (used in) investing activities		6,500			(737,481	)		(58,609	)		0			(789,590	)
Cash Flows from Financing Activities:
Reduction of long-term debt		(843,002	)		0			(8,258	)		1,613			(849,647	)
Additional borrowings		913,500			1,613			0			(1,613	)		913,500
Financing costs		(8,283	)		0			0			0			(8,283	)
Repurchase of common shares		(19,154	)		0			0			0			(19,154	)
Dividends paid		(58,395	)		0			0			0			(58,395	)
Issuance of common stock		5,435			0			0			0			5,435
Excess income tax benefits related to stock based compensation		16,040			0			0			0			16,040
Profit distributions to noncontrolling interests		0			0			(26,895	)		0			(26,895	)
Changes in intercompany balances with affiliates, net		25,007			119,990			(144,997	)		0			0
Net cash provided by (used in) financing activities		31,148			121,603			(180,150	)		0			(27,399	)
Increase (decrease) in cash and cash equivalents		0			(21,272	)		3,514			0			(17,758	)
Cash and cash equivalents, beginning of period		0			33,221			8,008			0			41,229
Cash and cash equivalents, end of period	$	0		$	11,949		$	11,522		$	0		$	23,471

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net cash (used in) provided by operating activities	$	(12,558	)	$	518,462		$	204,779		$	0		$	710,683
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(226,848	)		(58,834	)		0			(285,682	)
Acquisition of property and businesses		0			0			(29,466	)		0			(29,466	)
Proceeds received from sale of assets and businesses		0			0			67,592			0			67,592
Costs incurred for purchase and development of electronic health records application		0			(38,249	)		0			0			(38,249	)
Net cash used in investing activities		0			(265,097	)		(20,708	)		0			(285,805	)
Cash Flows from Financing Activities:
Reduction of long-term debt		(382,060	)		(1,442	)		0			1,985			(381,517	)
Additional borrowings		98,100			0			1,985			(1,985	)		98,100
Financing costs		(23,608	)		0			0			0			(23,608	)
Repurchase of common shares		(60,482	)		0			0			0			(60,482	)
Dividends paid		(19,466	)		0			0			0			(19,466	)
Issuance of common stock		4,779			0			0			0			4,779
Excess income tax benefits related to stock based compensation		7,568			0			0			0			7,568
Profit distributions to noncontrolling interests		0			0			(38,497	)		0			(38,497	)
Changes in intercompany balances with affiliates, net		387,727			(240,087	)		(147,640	)		0			0
Net cash provided by (used in) financing activities		12,558			(241,529	)		(184,152	)		0			(413,123	)
Increase (decrease) in cash and cash equivalents		0			11,836			(81	)		0			11,755
Cash and cash equivalents, beginning of period		0			21,385			8,089			0			29,474
Cash and cash equivalents, end of period	$	0		$	33,221		$	8,008		$	0		$	41,229