Guarantor Condensed Consolidating Financial Statements (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2012

Dec. 31, 2011

Guarantor Condensed Consolidating Financial Statements [Abstract]

Guarantor and Non-Guarantor Balance Sheet

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Balance Sheet

June 30, 2012

(in thousands)

(unaudited)

	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets:
Current assets:
Cash and cash equivalents	$	411	$	181,536	$	—	$	53,801		$	—		$	235,748
Accounts receivable, net	—		198,993		53,984		123,998			—			376,975
Inventories, net	—		105,370		72,361		70,937			(93,676		)	154,992
Deferred income taxes	—		77,457		—		2,853			(61,604		)	18,706
Prepaid expenses and other	—		13,467		6,427		360,435			(332,977		)	47,352
Intercompany receivables	167		1,207,980		1,959,983		46,343			(3,214,473		)	—
Total current assets	578		1,784,803		2,092,755		658,367			(3,702,730		)	833,773
Net property, plant and equipment	—		301,728		75,098		273,271			(151,450		)	498,647
Debt issuance costs, net	—		102,373		—		—			—			102,373
Deferred income taxes	—		—		—		20,231			—			20,231
Goodwill	—		2,475,372		996,535		—			—			3,471,907
Identifiable intangible assets, net	—		469,304		2,086,723		200,302			—			2,756,329
Other non-current assets	—		650		149		96,591			(90,900		)	6,490
Intercompany loan receivables	—		884,902		330,009		—			(1,214,911		)	—
Intercompany investments	1,445,764		230,490		530,744		—			(2,206,998		)	—
	$	1,446,342	$	6,249,622	$	6,112,013	$	1,248,762		$	(7,366,989	)	$	7,689,750
Liabilities and Equity:
Current liabilities:
Accounts payable	$	—	$	22,203	$	10,101	$	10,662		$	—		$	42,966
Accrued expenses and other	—		209,398		229,363		63,538			(188,235		)	314,064
Intercompany payables	162		429,545		2,337,168		1,190,949			(3,957,824		)	—
Current installments of long-term debt	—		23,399		—		—			—			23,399
Deferred income taxes	—		—		61,604		—			(61,604		)	—
Total current liabilities	162		684,545		2,638,236		1,265,149			(4,207,663		)	380,429
Long-term debt, net of current installments and discount	—		4,626,385		—		—			—			4,626,385
Non-current tax liabilities	—		31,988		—		7,159			—			39,147
Deferred income taxes	—		186,469		893,605		86,046			—			1,166,120
Other non-current liabilities	38		29,516		458		1,515			—			31,527
Intercompany loan payables	—		330,009		884,902		—			(1,214,911		)	—
Total liabilities	200		5,888,912		4,417,201		1,359,869			(5,422,574		)	6,243,608
Shareholders' equity	1,446,142		360,710		1,694,812		(111,107		)	(1,944,415		)	1,446,142
	$	1,446,342	$	6,249,622	$	6,112,013	$	1,248,762		$	(7,366,989	)	$	7,689,750

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Balance Sheet

December 31, 2011

(in thousands)

(unaudited)

	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Current assets:
Cash and cash equivalents	$	411	$	142,652	$	—	$	72,363	$	—		$	215,426
Accounts receivable, net	—		211,187		53,097		137,674		—			401,958
Inventories, net	—		79,302		87,171		81,797		(70,027		)	178,243
Deferred income taxes	—		98,062		—		2,853		(77,645		)	23,270
Prepaid expenses and other	—		30,663		7,257		354,633		(346,531		)	46,022
Intercompany receivables	—		998,244		1,891,483		50,787		(2,940,514		)	—
Total current assets	411		1,560,110		2,039,008		700,107		(3,434,717		)	864,919
Net property, plant and equipment	—		341,646		69,452		311,063		(176,814		)	545,347
Debt issuance costs, net	—		111,397		—		—		—			111,397
Deferred income taxes	—		—		—		18,322		—			18,322
Goodwill	—		2,499,690		997,842		—		—			3,497,532
Identifiable intangible assets, net	—		528,524		2,124,821		222,391		—			2,875,736
Other non-current assets	—		2,149		149		96,728		(90,900		)	8,126
Intercompany loan receivables	—		848,552		323,884		75,020		(1,247,456		)	—
Intercompany investments	1,593,033		332,987		775,147		—		(2,701,167		)	—
	$	1,593,444	$	6,225,055	$	6,330,303	$	1,423,631	$	(7,651,054	)	$	7,921,379
Liabilities and Equity:
Current liabilities:
Accounts payable	$	—	$	23,233	$	14,884	$	11,781	$	—		$	49,898
Accrued expenses and other	—		194,940		235,137		70,497		(188,957		)	311,617
Intercompany payables	—		163,543		2,314,174		462,799		(2,940,516		)	—
Current installments of long-term debt	—		23,491		—		—		—			23,491
Income taxes payable	—		—		662		14,050		(14,712		)	—
Deferred income taxes	—		—		77,645		—		(77,645		)	—
Total current liabilities	—		405,207		2,642,502		559,127		(3,221,830		)	385,006
Long-term debt, net of current installments and discount	—		4,639,728		—		—		—			4,639,728
Non-current tax liabilities	—		31,114		—		7,181		—			38,295
Deferred income taxes	—		244,517		911,417		97,410		—			1,253,344
Other non-current liabilities	—		9,837		802		923		—			11,562
Intercompany loan payables	—		398,904		848,552		—		(1,247,456		)	—
Total liabilities	—		5,729,307		4,403,273		664,641		(4,469,286		)	6,327,935
Shareholders' equity	1,593,444		495,748		1,927,030		758,990		(3,181,768		)	1,593,444
	$	1,593,444	$	6,225,055	$	6,330,303	$	1,423,631	$	(7,651,054	)	$	7,921,379

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Balance Sheet

December 31, 2011

(in thousands)

	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Current assets:
Cash and cash equivalents	$	411	$	142,652	$	—	$	72,363	$	—		$	215,426
Accounts receivable, net	—		211,187		53,097		137,674		—			401,958
Inventories, net	—		79,302		87,171		81,797		(70,027		)	178,243
Deferred income taxes	—		98,062		—		2,853		(77,645		)	23,270
Prepaid expenses and other	—		30,663		7,257		354,633		(346,531		)	46,022
Intercompany receivables	—		998,244		1,891,483		50,787		(2,940,514		)	—
Total current assets	411		1,560,110		2,039,008		700,107		(3,434,717		)	864,919
Net property, plant and equipment	—		341,646		69,452		311,063		(176,814		)	545,347
Debt issuance costs, net	—		111,397		—		—		—			111,397
Deferred income taxes	—		—		—		18,322		—			18,322
Goodwill	—		2,499,690		997,842		—		—			3,497,532
Identifiable intangible assets, net	—		528,524		2,124,821		222,391		—			2,875,736
Other non-current assets	—		2,149		149		96,728		(90,900		)	8,126
Intercompany loan receivables	—		848,552		323,884		75,020		(1,247,456		)	—
Intercompany investments	1,593,033		332,987		775,147		—		(2,701,167		)	—
	$	1,593,444	$	6,225,055	$	6,330,303	$	1,423,631	$	(7,651,054	)	$	7,921,379
Liabilities and Equity:
Current liabilities:
Accounts payable	$	—	$	23,233	$	14,884	$	11,781	$	—		$	49,898
Accrued expenses and other	—		194,940		235,137		70,497		(188,957		)	311,617
Intercompany payables	—		163,543		2,314,174		462,799		(2,940,516		)	—
Current installments of long-term debt	—		23,491		—		—		—			23,491
Income taxes payable	—		—		662		14,050		(14,712		)	—
Deferred income taxes	—		—		77,645		—		(77,645		)	—
Total current liabilities	—		405,207		2,642,502		559,127		(3,221,830		)	385,006
Long-term debt, net of current installments and discount	—		4,639,728		—		—		—			4,639,728
Non-current tax liabilities	—		31,114		—		7,181		—			38,295
Deferred income taxes	—		244,517		911,417		97,410		—			1,253,344
Other non-current liabilities	—		9,837		802		923		—			11,562
Intercompany loan payables	—		398,904		848,552		—		(1,247,456		)	—
Total liabilities	—		5,729,307		4,403,273		664,641		(4,469,286		)	6,327,935
Shareholders' equity	1,593,444		495,748		1,927,030		758,990		(3,181,768		)	1,593,444
	$	1,593,444	$	6,225,055	$	6,330,303	$	1,423,631	$	(7,651,054	)	$	7,921,379

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Balance Sheet

December 31, 2010

(in thousands)

	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Current assets:
Cash and cash equivalents	$	—	$	228,763	$	4,252	$	83,588	$	—		$	316,603
Accounts receivable, net	—		235,004		43,773		135,306		—			414,083
Inventories, net	—		74,623		86,422		91,488		(79,981		)	172,552
Deferred income taxes	—		23,224		4,364		2,524		—			30,112
Prepaid expenses and other	—		15,372		9,913		315,130		(306,216		)	34,199
Intercompany receivables	—		—		771,162		100,994		(872,156		)	—
Total current assets	—		576,986		919,886		729,030		(1,258,353		)	967,549
Net property, plant and equipment	—		234,354		54,199		222,742		(240,232		)	271,063
Debt issuance costs, net	—		22,622		—		—		—			22,622
Deferred income taxes	—		—		—		17,151		—			17,151
Goodwill	—		198,244		1,121,519		9,118		—			1,328,881
Identifiable intangible assets, net	—		5,402		437,075		11,325		—			453,802
Other non-current assets	—		8,962		1,779		5,820		(1,630		)	14,931
Intercompany loan receivables	—		—		142,960		—		(142,960		)	—
Intercompany investments	—		2,254,058		261,993		29,609		(2,545,660		)	—
	$	—	$	3,300,628	$	2,939,411	$	1,024,795	$	(4,188,835	)	$	3,075,999
Liabilities and Equity:
Current liabilities:
Accounts payable	$	—	$	29,351	$	17,936	$	12,850	$	—		$	60,137
Accrued expenses and other	—		132,121		230,188		57,103		(193,888		)	225,524
Intercompany payables	—		292,018		431,851		123,287		(847,156		)	—
Current installments of long-term debt	—		169,500		—		—		—			169,500
Current installments of intercompany debt	—		25,000		—		—		(25,000		)	—
Income taxes payable	—		—		662		31		(693		)	—
Total current liabilities	—		647,990		680,637		193,271		(1,066,737		)	455,161
Long-term debt, net of current installments and discount	—		935,290		—		—		—			935,290
Non-current tax liabilities	—		28,258		—		7,330		—			35,588
Deferred income taxes	—		5,082		158,304		—		—			163,386
Other non-current liabilities	—		908		1,917		670		—			3,495
Intercompany loan payables	—		140,000		—		2,960		(142,960		)	—
Total liabilities	—		1,757,528		840,858		204,231		(1,209,697		)	1,592,920
Shareholders' equity	—		1,543,100		2,098,553		820,564		(2,979,138		)	1,483,079
	—		3,300,628		2,939,411		1,024,795		(4,188,835		)	3,075,999

See accompanying notes to condensed consolidated financial statements.

Guarantor and Non-Guarantor Statement of Operations and Comprehensive Income (Loss)

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Operations and Comprehensive Income (Loss)

(in thousands)

(unaudited)

	For the three months ended June 30, 2012
	Successor
	Centaur Guernsey L.P. Inc. Parent Company			Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Rental	$	—		$	190,152		$	1,504		$	61,142		$	—		$	252,798
Sales	—			81,563			107,645			138,251			(85,198		)	242,261
Total revenue	—			271,715			109,149			199,393			(85,198		)	495,059
Rental expenses	1			102,665			1,425			87,151			(28,812		)	162,430
Cost of sales	17			42,728			38,779			61,969			(73,810		)	69,683
Gross profit	(18		)	126,322			68,945			50,273			17,424			262,946
Selling, general and administrative expenses	474			97,724			32,265			31,650			(720		)	161,393
Research and development expenses	—			9,250			8,930			2,303			—			20,483
Acquired intangible asset amortization	—			25,233			18,851			10,241			—			54,325
Operating earnings	(492		)	(5,885		)	8,899			6,079			18,144			26,745
Non-operating intercompany transactions	—			5,641			2,161			(12,210		)	4,408			—
Interest income and other	—			18,158			3,062			43			(21,237		)	26
Interest expense	—			(137,375		)	(18,175		)	(32		)	21,237			(134,345		)
Foreign currency gain (loss)	—			22,340			(51		)	(1,868		)	—			20,421
Earnings (loss) before income taxes (benefit) and equity in earnings (loss) of subsidiaries	(492		)	(97,121		)	(4,104		)	(7,988		)	22,552			(87,153		)
Income tax expense (benefit)	—			(23,909		)	(4,126		)	(4,484		)	—			(32,519		)
Earnings (loss) before equity in earnings (loss) of subsidiaries	(492		)	(73,212		)	22			(3,504		)	22,552			(54,634		)
Equity in earnings (loss) of subsidiaries	(54,142		)	(1,497		)	(3,504		)	—			59,143			—
Net earnings (loss)	$	(54,634	)	$	(74,709	)	$	(3,482	)	$	(3,504	)	$	81,695		$	(54,634	)
Total comprehensive income (loss)	$	(54,634	)	$	(74,709	)	$	(3,482	)	$	(13,444	)	$	81,695		$	(64,574	)

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Operations and Comprehensive Income (Loss)

(in thousands)

(unaudited)

	For the three months ended June 30, 2011
	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Rental	$	—	$	205,677		$	347		$	72,439		$	—		$	278,463
Sales	—		84,653			96,501			135,490			(76,314		)	240,330
Total revenue	—		290,330			96,848			207,929			(76,314		)	518,793
Rental expenses	—		115,807			417			83,469			(53,340		)	146,353
Cost of sales	—		63,790			29,051			68,339			(100,762		)	60,418
Gross profit	—		110,733			67,380			56,121			77,788			312,022
Selling, general and administrative expenses	—		86,031			28,097			36,990			—			151,118
Research and development expenses	—		13,639			6,884			2,949			(61		)	23,411
Acquired intangible asset amortization	—		—			8,856			—			—			8,856
Operating earnings	—		11,063			23,543			16,182			77,849			128,637
Non-operating intercompany transactions	—		26,423			26,942			(74,057		)	20,692			—
Interest income and other	—		203			3,063			64			(3,063		)	267
Interest expense	—		(20,210		)	—			(10		)	3,063			(17,157		)
Foreign currency gain (loss)	—		(1,758		)	74			1,478			—			(206		)
Earnings (loss) before income taxes (benefit) and equity in earnings (loss) of subsidiaries	—		15,721			53,622			(56,343		)	98,541			111,541
Income tax expense (benefit)	—		4,742			22,353			3,021			—			30,116
Earnings (loss) before equity in earnings (loss) of subsidiaries	—		10,979			31,269			(59,364		)	98,541			81,425
Equity in earnings (loss) of subsidiaries			(28,095		)	(59,364		)	—			87,459			—
Net earnings (loss)	$	—	$	(17,116	)	$	(28,095	)	$	(59,364	)	$	186,000		$	81,425
Total comprehensive income (loss)	$	—	$	(17,765	)	$	(28,095	)	$	(57,450	)	$	186,000		$	82,690

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Operations and Comprehensive Income (Loss)

(in thousands)

(unaudited)

	For the six months ended June 30, 2012
	Successor
	Centaur Guernsey L.P. Inc. Parent Company			Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Rental	$	—		$	382,510		$	2,766		$	124,153		$	—		$	509,429
Sales	—			162,164			214,624			249,587			(149,722		)	476,653
Total revenue	—			544,674			217,390			373,740			(149,722		)	986,082
Rental expenses	2			217,533			2,638			184,470			(62,636		)	342,007
Cost of sales	36			120,001			77,224			123,216			(180,729		)	139,748
Gross profit	(38		)	207,140			137,528			66,054			93,643			504,327
Selling, general and administrative expenses	951			178,959			63,993			75,389			(686		)	318,606
Research and development expenses	—			19,513			17,699			4,658			—			41,870
Acquired intangible asset amortization	—			59,220			40,951			23,579			—			123,750
Operating earnings	(989		)	(50,552		)	14,885			(37,572		)	94,329			20,101
Non-operating intercompany transactions	—			66,375			128,312			(221,571		)	26,884			—
Interest income and other	—			36,727			6,125			82			(42,478		)	456
Interest expense	—			(260,993		)	(36,350		)	(64		)	42,478			(254,929		)
Foreign currency gain (loss)	—			8,969			147			(3,582		)	—			5,534
Earnings (loss) before income taxes (benefit) and equity in earnings (loss) of subsidiaries	(989		)	(199,474		)	113,119			(262,707		)	121,213			(228,838		)
Income tax expense (benefit)	—			(44,208		)	(31,122		)	(8,196		)	—			(83,526		)
Earnings (loss) before equity in earnings (loss) of subsidiaries	(989		)	(155,266		)	144,241			(254,511		)	121,213			(145,312		)
Equity in earnings (loss) of subsidiaries	(144,323		)	(102,497		)	(254,511		)	—			501,331			—
Net earnings (loss)	$	(145,312	)	$	(257,763	)	$	(110,270	)	$	(254,511	)	$	622,544		$	(145,312	)
Total comprehensive income (loss)	$	(145,312	)	$	(257,763	)	$	(110,270	)	$	(257,695	)	$	622,544		$	(148,496	)

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Operations and Comprehensive Income (Loss)

(in thousands)

(unaudited)

	For the six months ended June 30, 2011
	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Rental	$	—	$	413,333		$	693		$	142,329		$	—		$	556,355
Sales	—		164,210			190,478			250,120			(142,165		)	462,643
Total revenue	—		577,543			191,171			392,449			(142,165		)	1,018,998
Rental expenses	—		240,884			769			162,467			(107,275		)	296,845
Cost of sales	—		129,721			57,536			126,588			(191,708		)	122,137
Gross profit	—		206,938			132,866			103,394			156,818			600,016
Selling, general and administrative expenses	—		172,410			54,013			68,083			—			294,506
Research and development expenses	—		26,433			13,244			4,935			(18		)	44,594
Acquired intangible asset amortization	—		—			17,712			—			—			17,712
Operating earnings	—		8,095			47,897			30,376			156,836			243,204
Non-operating intercompany transactions	—		76,541			100,098			(207,830		)	31,191			—
Interest income and other	—		333			6,126			142			(6,132		)	469
Interest expense	—		(44,106		)	—			(23		)	6,132			(37,997		)
Foreign currency gain (loss)	—		(3,091		)	189			2,877			—			(25		)
Earnings (loss) before income taxes (benefit) and equity in earnings (loss) of subsidiaries	—		37,772			154,310			(174,458		)	188,027			205,651
Income tax expense (benefit)	—		(13,447		)	65,391			3,864			—			55,808
Earnings (loss) before equity in earnings (loss) of subsidiaries	—		51,219			88,919			(178,322		)	188,027			149,843
Equity in earnings (loss) of subsidiaries			(89,403		)	(178,322		)	—			267,725			—
Net earnings (loss)	$	—	$	(38,184	)	$	(89,403	)	$	(178,322	)	$	455,752		$	149,843
Total comprehensive income (loss)	$	—	$	(38,531	)	$	(89,403	)	$	(168,544	)	$	455,752		$	159,274

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Operations and Comprehensive Income (Loss)

(in thousands)

	For the period from November 4 through December 31, 2011
	Successor
	Centaur Guernsey L.P. Inc. Parent Company			Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Rental	$	—		$	131,595		$	410		$	43,561		$	—		$	175,566
Sales	—			59,172			75,570			111,931			(74,983		)	171,690
Total revenue	—			190,767			75,980			155,492			(74,983		)	347,256
Rental expenses	—			73,240			647			60,137			(24,564		)	109,460
Cost of sales	11			76,396			25,674			44,650			(98,211		)	48,520
Gross profit	(11		)	41,131			49,659			50,705			47,792			189,276
Selling, general and administrative expenses	288			173,520			13,100			36,904			(1,119		)	222,693
Research and development expenses	—			9,063			5,631			1,420			—			16,114
Acquired intangible asset amortization	—			4,444			10,468			1,766			—			16,678
Operating earnings	(299		)	(145,896		)	20,460			10,615			48,911			(66,209		)
Non-operating intercompany transactions	—			49,423			10,426			(60,043		)	194			—
Interest income and other	—			11,453			2,042			100			(13,447		)	148
Interest expense	—			(117,028		)	(11,389		)	(22		)	13,447			(114,992		)
Foreign currency gain (loss)	—			25,873			(94		)	(3,529		)	—			22,250
Earnings (loss) before income taxes (benefit) and equity in earnings (loss) of subsidiaries	(299		)	(176,175		)	21,445			(52,879		)	49,105			(158,803		)
Income tax expense (benefit)	—			(41,505		)	(325		)	(2,104		)	—			(43,934		)
Earnings (loss) before equity in earnings (loss) of subsidiaries	(299		)	(134,670		)	21,770			(50,775		)	49,105			(114,869		)
Equity in earnings (loss) of subsidiaries	(114,570		)	397			(50,775		)	—			164,948			—
Net earnings (loss)	$	(114,869	)	$	(134,273	)	$	(29,005	)	$	(50,775	)	$	214,053		$	(114,869	)
Total comprehensive income (loss)	$	(114,869	)	$	(134,273	)	$	(29,005	)	$	(56,616	)	$	214,053		$	(120,710	)

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Operations and Comprehensive Income (Loss)

(in thousands)

	For the period from January 1 through November 3, 2011
	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Rental	$	—	$	690,994		$	1,455		$	233,443		$	—		$	925,892
Sales	—		284,442			323,349			450,380			(265,941		)	792,230
Total revenue	—		975,436			324,804			683,823			(265,941		)	1,718,122
Rental expenses	—		372,269			1,519			264,612			(159,279		)	479,121
Cost of sales	—		214,489			95,803			221,410			(326,325		)	205,377
Gross profit	—		388,678			227,482			197,801			219,663			1,033,624
Selling, general and administrative expenses	—		388,969			93,411			111,777						594,157
Research and development expenses	—		43,107			24,343			8,537			(34		)	75,953
Acquired intangible asset amortization	—		—			29,518			—			—			29,518
Operating earnings	—		(43,398		)	80,210			77,487			219,697			333,996
Non-operating intercompany transactions	—		85,085			113,318			(210,403		)	12,000			—
Interest income and other	—		747			26,920			231			(26,926		)	972
Interest expense	—		(88,697		)	9			(169		)	26,926			(61,931		)
Foreign currency gain (loss)	—		(3,193		)	409			6			—			(2,778		)
Earnings (loss) before income taxes (benefit) and equity in earnings (loss) of subsidiaries	—		(49,456		)	220,866			(132,848		)	231,697			270,259
Income tax expense (benefit)	—		(6,010		)	78,442			6,889			—			79,321
Earnings (loss) before equity in earnings (loss) of subsidiaries	—		(43,446		)	142,424			(139,737		)	231,697			190,938
Equity in earnings (loss) of subsidiaries			2,687			(139,737		)	—			137,050			—
Net earnings (loss)	$	—	$	(40,759	)	$	2,687		$	(139,737	)	$	368,747		$	190,938
Total comprehensive income (loss)	$	—	$	(39,669	)	$	2,687		$	(137,901	)	$	368,747		$	193,864

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Operations and Comprehensive Income (Loss)

(in thousands)

	For the year ended December 31, 2010
	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Rental	$	—	$	860,389		$	907		$	275,936		$	—		$	1,137,232
Sales	—		324,322			346,085			458,172			(252,217		)	876,362
Total revenue	—		1,184,711			346,992			734,108			(252,217		)	2,013,594
Rental expenses	—		530,192			991			303,167			(209,073		)	625,277
Cost of sales	—		227,565			109,621			224,028			(310,961		)	250,253
Gross profit	—		426,954			236,380			206,913			267,817			1,138,064
Selling, general and administrative expenses	—		351,313			92,943			122,110			(2,358		)	564,008
Research and development expenses	—		44,949			26,874			18,588			(156		)	90,255
Acquired intangible asset amortization	—		—			37,426			—			—			37,426
Operating earnings	—		30,692			79,137			66,215			270,331			446,375
Non-operating intercompany transactions	—		143,843			74,147			(273,890		)	55,900			—
Interest income and other	—		422			12,251			688			(12,510		)	851
Interest expense	—		(99,438		)	—			(125		)	12,510			(87,053		)
Foreign currency gain (loss)	—		442			177			(5,119		)	—			(4,500		)
Earnings (loss) before income taxes (benefit) and equity in earnings (loss) of subsidiaries	—		75,961			165,712			(212,231		)	326,231			355,673
Income tax expense (benefit)	—		28,913			64,003			6,673			—			99,589
Earnings (loss) before equity in earnings (loss) of subsidiaries	—		47,048			101,709			(218,904		)	326,231			256,084
Equity in earnings (loss) of subsidiaries	—		(117,195		)	(218,904		)	—			336,099			—
Net earnings (loss)	$	—	$	(70,147	)	$	(117,195	)	$	(218,904	)	$	662,330		$	256,084
Total comprehensive income (loss)	$	—	$	(65,742	)	$	(117,195	)	$	(221,827	)	$	662,330		$	257,566

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Operations and Comprehensive Income (Loss)

(in thousands)

	For the year ended December 31, 2009
	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenue:
Rental	$	—	$	882,153		$	616		$	292,033		$	—		$	1,174,802
Sales	—		324,843			295,728			492,308			(299,195		)	813,684
Total revenue	—		1,206,996			296,344			784,341			(299,195		)	1,988,486
Rental expenses	—		533,191			(1,884		)	284,693			(175,654		)	640,346
Cost of sales	—		226,537			96,681			210,319			(288,753		)	244,784
Gross profit	—		447,268			201,547			289,329			165,212			1,103,356
Selling, general and administrative expenses	—		336,957			84,152			109,191			(2,150		)	528,150
Research and development expenses	—		52,777			28,904			10,517			(110		)	92,088
Acquired intangible asset amortization	—		—			40,634			—			—			40,634
Operating earnings	—		57,534			47,857			169,621			167,472			442,484
Non-operating intercompnay transactions	—		128,072			118,107			(236,775		)	(9,404		)	—
Interest income and other	—		221			12,252			861			(12,515		)	819
Interest expense	—		(117,221		)	—			(212		)	12,515			(104,918		)
Foreign currency gain (loss)	—		(8,098		)	(29		)	4,123			—			(4,004		)
Earnings (loss) before income taxes (benefit) and equity in earnings (loss) of subsidiaries	—		60,508			178,187			(62,382		)	158,068			334,381
Income tax expense (benefit)	—		24,985			71,173			9,521			—			105,679
Earnings (loss) before equity in earnings (loss) of subsidiaries	—		35,523			107,014			(71,903		)	158,068			228,702
Equity in earnings (loss) of subsidiaries	—		35,111			(71,903		)	—			36,792			—
Net earnings (loss)	$	—	$	70,634		$	35,111		$	(71,903	)	$	194,860		$	228,702
Total comprehensive income (loss)	$	—	$	73,745		$	35,111		$	(68,081	)	$	194,860		$	235,635

See accompanying notes to condensed consolidated financial statements.

Guarantor and Non-Guarantor Statement of Cash Flows

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Cash Flows

(in thousands)

(unaudited)

	For the six months ended June 30, 2012
	Successor
	Centaur Guernsey L.P. Inc. Parent Company			Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net earnings (loss)	$	(145,312	)	$	(257,763	)	$	(110,270	)	$	(254,511	)	$	622,544		$	(145,312	)
Adjustments to reconcile net earnings (loss) to net cash provided	989			202,308			(26,652		)	824,642			(774,043		)	227,244
Net cash provided by operating activities	(144,323		)	(55,455		)	(136,922		)	570,131			(151,499		)	81,932
Cash flows from investing activities:
Net additions to property, plant and equipment	—			(17,254		)	(12,796		)	(50,696		)	34,211			(46,535		)
Increase in identifiable intangible assets and other non-current assets	—			26			(2,962		)	110			1			(2,825		)
Net cash used by investing activities	—			(17,228		)	(15,758		)	(50,586		)	34,212			(49,360		)
Cash flows from financing activities:
Capital contributions from limited partners	239			—			—			—			—			239
Repayments of long-term debt and capital lease obligations	—			(8,300		)	—			(3		)	(3,355		)	(11,658		)
Debt issuance costs	—			(111		)	—			—			—			(111		)
Proceeds (payments) on intercompany loans	—			(105,245		)	30,225			75,020			—			—
Proceeds (payments) on intercompany investments	144,084			225,223			122,455			(612,404		)	120,642			—
Net cash provided (used) by financing activities	144,323			111,567			152,680			(537,387		)	117,287			(11,530		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(720		)	—			(720		)
Net increase in cash and cash equivalents	—			38,884			—			(18,562		)	—			20,322
Cash and cash equivalents, beginning of period	411			142,652			—			72,363			—			215,426
Cash and cash equivalents, end of period	$	411		$	181,536		$	—		$	53,801		$	—		$	235,748

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Cash Flows

(in thousands)

(unaudited)

	For the six months ended June 30, 2011
	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net earnings (loss)	$	—	$	(38,184	)	$	(89,403	)	$	(178,322	)	$	455,752		$	149,843
Adjustments to reconcile net earnings (loss) to net cash provided	—		182,227			(76,188		)	22,538			(41,959		)	86,618
Net cash provided by operating activities	—		144,043			(165,591		)	(155,784		)	413,793			236,461
Cash flows from investing activities:
Net additions to property, plant and equipment	—		(46,576		)	(2,827		)	(63,070		)	39,397			(73,076		)
Increase in identifiable intangible assets and other non-current assets	—		24			(7,084		)	(10,304		)	—			(17,364		)
Net cash used by investing activities	—		(46,552		)	(9,911		)	(73,374		)	39,397			(90,440		)
Cash flows from financing activities:
Repayments of long-term debt and capital lease obligations	—		(13,750		)	—			(80		)	—			(13,830		)
Proceeds (payments) on intercompany loans	—		(25,000		)	(24		)	25,024			—			—
Proceeds from exercise of stock options and employee stock purchases	—		40,111			—			—			—			40,111
Excess tax benefit from equity-based payment arrangements	—		2,082			—			—			—			2,082
Purchase of immature shares for minimum tax withholdings	—		(3,681		)	—			—			—			(3,681		)
Refinancing of senior credit facility:
Proceeds from senior credit facility – due 2016	—		146,012			—			—			—			146,012
Repayments on senior credit facility – due 2013	—		(123,346		)	—			—			—			(123,346		)
Payment of debt issuance costs	—		(14,676		)	—			—			—			(14,676		)
Proceeds (payments) on intercompany investments	—		89,404			180,599			183,187			(453,190		)	—
Net cash provided (used) by financing activities	—		97,156			180,575			208,131			(453,190		)	32,672
Effect of exchange rate changes on cash and cash equivalents	—		—			—			3,128			—			3,128
Net increase in cash and cash equivalents	—		194,647			5,073			(17,899		)	—			181,821
Cash and cash equivalents, beginning of period	—		228,763			4,252			83,588			—			316,603
Cash and cash equivalents, end of period	$	—	$	423,410		$	9,325		$	65,689		$	—		$	498,424

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Cash Flows

(in thousands)

	For the period November 4 through December 31, 2011
	Successor
	Centaur Guernsey L.P. Inc. Parent Company			Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net earnings (loss)	$	(114,869	)	$	(134,273	)	$	(29,005	)	$	(50,775	)	$	214,053		$	(114,869	)
Adjustments to reconcile net earnings (loss) to net cash provided	299			(1,787,282		)	1,296,975			591,299			(63,996		)	37,295
Net cash provided by operating activities	(114,570		)	(1,921,555		)	1,267,970			540,524			150,057			(77,574		)
Cash flows from investing activities:
Net additions to property, plant and equipment	—			(38,479		)	(6,360		)	(46,262		)	61,251			(29,850		)
Dispositions of assets subject to leveraged lease, net	—			7,435			—			—			—			7,435
Increase in identifiable intangible assets and other non-current assets	—			1,261,578			(1,248,161		)	(103,896		)	89,262			(1,217		)
Cash used to acquire entity	—			(2,611,846		)	(1,716,581		)	(856,932		)	—			(5,185,359		)
Net cash used by investing activities	—			(1,381,312		)	(2,971,102		)	(1,007,090		)	150,513			(5,208,991		)
Cash flows from financing activities:
Capital contributions from limited partners	1,714,398			—			—			—			—			1,714,398
Distribution to limited partners	(543		)	—			—			—			—			(543		)
Repayments of long-term debt and capital lease obligations	—			(1,532,652		)	(989		)	(489		)	—			(1,534,130		)
Proceeds (payments) on intercompany loans	—			(449,648		)	524,668			(75,020		)	—			—
Settlement of convertible debt warrants	—			(280,220		)	—			—			—			(280,220		)
Settlement of convertible debt hedges	—			314,856			—			—			—			314,856
KCI acquisition financing:
Proceeds from B1, B2, 2nd lien notes and unsecured notes	—			4,685,896			—			—			—			4,685,896
Debt issuance costs – 2011 merger financing	—			(106,076		)	—			—			—			(106,076		)
Purchase of interest rate caps	—			(2,150		)	—			—			—			(2,150		)
Proceeds (payments) on intercompany investments	(1,598,874		)	179,279			1,179,453			540,712			(300,570		)	—
Net cash provided (used) by financing activities	114,981			2,809,285			1,703,132			465,203			(300,570		)	4,792,031
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(1,925		)	—			(1,925		)
Net increase in cash and cash equivalents	411			(493,582		)	—			(3,288		)	—			(496,459		)
Cash and cash equivalents, beginning of period	—			636,234			—			75,651			—			711,885
Cash and cash equivalents, end of period	$	411		$	142,652		$	—		$	72,363		$	—		$	215,426

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Cash Flows

(in thousands)

	For the period January 1 through November 3, 2011
	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net earnings (loss)	$	—	$	(40,759	)	$	2,687		$	(139,737	)	$	368,747		$	190,938
Adjustments to reconcile net earnings (loss) to net cash provided	—		61,984			253,684			101,886			(120,524		)	297,030
Net cash provided by operating activities	—		21,225			256,371			(37,851		)	248,223			487,968
Cash flows from investing activities:
Net additions to property, plant and equipment	—		(81,054		)	(7,161		)	(68,851		)	54,049			(103,017		)
Dispositions of assets subject to leveraged lease, net	—		—			—			—			—			—
Increase in identifiable intangible assets and other non-current assets	—		3			(5,209		)	(14,434		)	—			(19,640		)
Net cash used by investing activities	—		(81,051		)	(12,370		)	(83,285		)	54,049			(122,657		)
Cash flows from financing activities:
Repayments of long-term debt and capital lease obligations	—		(20,624		)	—			(150		)	—			(20,774		)
Proceeds (payments) on intercompany loans	—		231,843			(178,883		)	(77,960		)	25,000			—
Proceeds from exercise of stock options and employee stock purchases	—		42,973			—			—			—			42,973
Proceeds from the purchase of stock in ESPP and other	—		8,059			—			—			—			8,059
Excess tax benefit from equity-based payment arrangements	—		2,439			—			—			—			2,439
Purchase of immature shares for minimum tax withholdings	—		(3,855		)	—			—			—			(3,855		)
KCI acquisition financing:
Debt issuance costs – 2011 merger financing	—		(7,879		)	—			—			—			(7,879		)
First quarter 2011 refinancing of senior credit facility:
Proceeds from senior credit facility – due 2016	—		146,012			—			—			—			146,012
Payments on senior credit facility – due 2013	—		(123,346		)	—			—			—			(123,346		)
Purchase of debt issuance costs	—		(14,676		)	—			—			—			(14,676		)
Proceeds (payments) on intercompany investments	—		206,351			(69,370		)	190,291			(327,272		)	—
Net cash provided (used) by financing activities	—		467,297			(248,253		)	112,181			(302,272		)	28,953
Effect of exchange rate changes on cash and cash equivalents	—		—			—			1,018			—			1,018
Net increase in cash and cash equivalents	—		407,471			(4,252		)	(7,937		)	—			395,282
Cash and cash equivalents, beginning of period	—		228,763			4,252			83,588			—			316,603
Cash and cash equivalents, end of period	$	—	$	636,234		$	—		$	75,651		$	—		$	711,885

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Cash Flows

(in thousands)

	For the year ended December 31, 2010
	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net earnings (loss)	$	—	$	(70,147	)	$	(117,195	)	$	(218,904	)	$	662,330		$	256,084
Adjustments to reconcile net earnings (loss) to net cash provided	—		515,557			(79,937		)	(40,707		)	(298,276		)	96,637
Net cash provided by operating activities	—		445,410			(197,132		)	(259,611		)	364,054			352,721
Cash flows from investing activities:
Net additions to property, plant and equipment	—		(52,187		)	(9,309		)	(91,537		)	77,781			(75,252		)
Increase in identifiable intangible assets and other non-current assets	—		(6,011		)	(424		)	(12,245		)	—			(18,680		)
Net cash used by investing activities	—		(58,198		)	(9,733		)	(103,782		)	77,781			(93,932		)
Cash flows from financing activities:
Repayments of long-term debt and capital lease obligations	—		(222,667		)	—			(60		)	—			(222,727		)
Proceeds (payments) on intercompany loans	—		(151,000		)	(2,960		)	2,960			151,000			—
Proceeds from exercise of stock options and employee stock purchases	—		12,221			—			—			—			12,221
Proceeds from the purchase of stock in ESPP and other	—		6,540			—			—			—			6,540
Excess tax benefit from equity-based payment arrangements	—		1,505			—			—			—			1,505
Purchase of immature shares for minimum tax withholdings	—		(1,741		)	—			—			—			(1,741		)
Proceeds (payments) on intercompany investments	—		122,185			211,568			259,082			(592,835		)	—
Net cash provided (used) by financing activities	—		(232,957		)	208,608			261,982			(441,835		)	(204,202		)
Effect of exchange rate changes on cash and cash equivalents	—		—			—			(1,141		)	—			(1,141		)
Net increase in cash and cash equivalents	—		154,255			1,743			(102,552		)	—			53,446
Cash and cash equivalents, beginning of period	—		74,508			2,509			186,140			—			263,157
Cash and cash equivalents, end of period	$	—	$	228,763		$	4,252		$	83,588		$	—		$	316,603

See accompanying notes to condensed consolidated financial statements.

Condensed Consolidating Parent Company, Co-Issuers,

Guarantor and Non-Guarantor Statement of Cash Flows

(in thousands)

	For the year ended December 31, 2009
	Predecessor
	Centaur Guernsey L.P. Inc. Parent Company		Kinetic Concepts, Inc. and KCI USA, Inc. Borrower			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net earnings (loss)	$	—	$	70,634		$	35,111		$	(71,903	)	$	194,860		$	228,702
Adjustments to reconcile net earnings (loss) to net cash provided	—		270,751			(163,783		)	(17,943		)	69,794			158,819
Net cash provided by operating activities	—		341,385			(128,672		)	(89,846		)	264,654			387,521
Cash flows from investing activities:															—
Net additions to property, plant and equipment	—		(89,989		)	(9,940		)	(161,402		)	171,480			(89,851		)
Business acquired in purchase transaction, net of cash acquired	—		—			(173		)	—			—			(173		)
Increase in identifiable intangible assets and other non-current assets	—		(161,886		)	116,329			(14,586		)	(2,751		)	(62,894		)
Net cash used by investing activities	—		(251,875		)	106,216			(175,988		)	168,729			(152,918		)
Cash flows from financing activities:
Proceeds from revolving credit facility	—		105,000			—			—			—			105,000
Repayments of long-term debt and capital lease obligations	—		(334,000		)	—			—			—			(334,000		)
Proceeds (payments) from intercompany loans	—		176,000			—			—			(176,000		)	—
Proceeds from exercise of stock options and employee stock purchases	—		1,850			—			—			—			1,850
Proceeds from the purchase of stock in ESPP and other	—		5,938			—			—			—			5,938
Excess tax benefit from equity-based payment arrangements	—		1,214			—			—			—			1,214
Purchase of immature shares for minimum tax withholdings	—		(1,419		)	—			—			—			(1,419		)
Proceeds (payments) on intercompany investments	—		25,032			21,509			210,842			(257,383		)	—
Net cash provided (used) by financing activities	—		(20,385		)	21,509			210,842			(433,383		)	(221,417		)
Effect of exchange rate changes on cash and cash equivalents	—		—			—			2,204			—			2,204
Net increase in cash and cash equivalents	—		69,125			(947		)	(52,788		)	—			15,390
Cash and cash equivalents, beginning of period	—		5,383			3,456			238,928			—			247,767
Cash and cash equivalents, end of period	$	—	$	74,508		$	2,509		$	186,140		$	—		$	263,157

See accompanying notes to condensed consolidated financial statements.