Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Registrant

VCA Inc. and Subsidiaries

Schedule I — Condensed Financial Information of Registrant

VCA Inc. (Parent Company)

Condensed Balance Sheets

(In thousands)

	December 31,
	2016			2015
Assets:
Investment in subsidiaries	$	1,724,547		$	1,510,723
Intercompany payable	(253,324		)	(265,761		)
Total assets	$	1,471,223		$	1,244,962
Stockholders’ equity:
Common stock	$	81		$	81
Additional paid-in capital	32,157			19,708
Retained earnings	1,484,391			1,275,207
Accumulated other comprehensive loss	(45,406		)	(50,034		)
Total stockholders’ equity	$	1,471,223		$	1,244,962

The accompanying notes are an integral part of these condensed financial statements.

See accompanying Report of Independent Registered Public Accounting Firm.

VCA Inc. and Subsidiaries

Schedule I — Condensed Financial Information of Registrant — (Continued)

VCA Inc. (Parent Company)

Condensed Statements of Income

(In thousands)

	For the Years Ended December 31,
	2016		2015		2014
Revenue	$	—	$	—	$	—
Direct costs	—		—		—
Gross profit	—		—		—
Selling, general and administrative expense	—		—		—
Loss on sale of assets	—		—		—
Operating income	—		—		—
Interest income, net	—		—		—
Equity interest in income of subsidiaries	209,196		211,049		135,438
Income before provision for income taxes	209,196		211,049		135,438
Provision for income taxes	—		—		—
Net income	209,196		211,049		135,438
Net income attributable to noncontrolling interests	—		—		—
Net income attributable to VCA Inc.	$	209,196	$	211,049	$	135,438

The accompanying notes are an integral part of these condensed financial statements.

See accompanying Report of Independent Registered Public Accounting Firm.

VCA Inc. and Subsidiaries

Schedule I — Condensed Financial Information of Registrant — (Continued)

VCA Inc. (Parent Company)

Condensed Statements of Cash Flows

(In thousands)

	For the Years Ended December 31,
	2016			2015			2014
Cash flows from operating activities:
Net income	$	209,196		$	211,049		$	135,438
Adjustments to reconcile net income to net cash used in operating activities:
Equity interest in earnings of subsidiaries	(209,196		)	(211,049		)	(135,438		)
Net cash used in operating activities	—			—			—
Cash flows used in investing activities:
Decrease in intercompany receivable	(3,965		)	(2,683		)	(2,859		)
Net cash used in investing activities	(3,965		)	(2,683		)	(2,859		)
Cash flows provided by financing activities:
Proceeds from issuance of common stock under stock option plans	3,965			2,683			2,859
Net cash provided by financing activities	3,965			2,683			2,859
Increase (decrease) in cash and cash equivalents	—			—			—
Cash and cash equivalents at beginning of year	—			—			—
Cash and cash equivalents at end of year	$	—		$	—		$	—

The accompanying notes are an integral part of these condensed financial statements.

See accompanying Report of Independent Registered Public Accounting Firm.

VCA Inc. and Subsidiaries

Schedule I — Condensed Financial Information of Registrant — (Continued)

VCA Inc. (Parent Company)

Notes to Condensed Financial Statements

Guarantees

The borrowings under the New Senior Credit Facility are guaranteed by VCA Inc. (“VCA”) and its wholly-owned subsidiaries. Vicar Operating, Inc. (“Vicar”), a wholly-owned subsidiary of VCA, may borrow up to $800 million under a revolving line of credit under the New Senior Credit Facility. VCA’s guarantee under the New Senior Credit Facility is secured by a pledge of substantially all of our consolidated assets, including 65% of the voting equity and 100% of the non-voting equity interest in each of our foreign subsidiaries.

See Note 7, Long-Term Obligations, in our accompanying consolidated financial statements of this annual report on Form 10-K for a five-year schedule of debt maturities.

Dividends from Subsidiaries

The senior credit facility has restrictions on the ability of Vicar and its consolidated subsidiaries to transfer assets in the form of cash, dividends, loans or advances to VCA. In 2016, 2015 and 2014, VCA did not receive any cash dividends from its consolidated subsidiaries.