Supplemental Condensed Consolidating Financial Information

6 Months Ended

Jun. 30, 2011

Supplemental Condensed Consolidating Financial Information [Abstract]

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

NOTE 12 — SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

On November 22, 2010, HCA Inc. reorganized by creating a new holding company structure. HCA Holdings, Inc. became the new parent company, and HCA Inc. is now HCA Holdings, Inc.’s wholly-owned direct subsidiary. On November 23, 2010, HCA Holdings, Inc. issued $1.525 billion aggregate principal amount of 73/4% senior unsecured notes due 2021. These notes are senior unsecured obligations and are not guaranteed by any of our subsidiaries.

Our senior secured credit facilities and senior secured notes are fully and unconditionally guaranteed by substantially all existing and future, direct and indirect, wholly-owned material domestic subsidiaries that are “Unrestricted Subsidiaries” under our Indenture dated December 16, 1993 (except for certain special purpose subsidiaries that only guarantee and pledge their assets under our senior secured asset-based revolving credit facility).

Our summarized condensed consolidating balance sheets at June 30, 2011 and December 31, 2010, condensed consolidating statements of income for the quarters and six months ended June 30, 2011 and 2010 and condensed consolidating statements of cash flows for the six months ended June 30, 2011 and 2010, segregating HCA Holdings, Inc. issuer, HCA Inc. issuer, the subsidiary guarantors, the subsidiary non-guarantors and eliminations, follow:

HCA HOLDINGS, INC.
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE QUARTER ENDED JUNE 30, 2011
(Dollars in millions)

	HCA									Subsidiary
	Holdings, Inc.			HCA Inc.			Subsidiary			Non-						Condensed
	Issuer			Issuer			Guarantors			Guarantors			Eliminations			Consolidated
Revenues	$	—		$	—		$	4,515		$	3,548		$	—		$	8,063
Salaries and benefits		—			—			1,872			1,448			—			3,320
Supplies		—			—			720			575			—			1,295
Other operating expenses		—			2			686			638			—			1,326
Provision for doubtful accounts		—			—			457			318			—			775
Equity in earnings of affiliates		(246	)		—			(30	)		(43	)		246			(73	)
Depreciation and amortization		—			—			194			164			—			358
Interest expense		30			741			(153	)		(98	)		—			520
Loss on retirement of debt		—			75			—			—			—			75
Management fees		—			—			(129	)		129			—			—
		(216	)		818			3,617			3,131			246			7,596
Income (loss) before income taxes		216			(818	)		898			417			(246	)		467
Provision for income taxes		(13	)		(323	)		347			136			—			147
Net income (loss)		229			(495	)		551			281			(246	)		320
Net income attributable to noncontrolling interests		—			—			18			73			—			91
Net income (loss) attributable to HCA Holdings, Inc.	$	229		$	(495	)	$	533		$	208		$	(246	)	$	229

HCA HOLDINGS, INC.
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE QUARTER ENDED JUNE 30, 2010
(Dollars in millions)

							Subsidiary
	HCA Inc.			Subsidiary			Non-						Condensed
	Issuer			Guarantors			Guarantors			Eliminations			Consolidated
Revenues	$	—		$	4,479		$	3,277		$	—		$	7,756
Salaries and benefits		—			1,809			1,267			—			3,076
Supplies		—			724			527			—			1,251
Other operating expenses		1			665			560			—			1,226
Provision for doubtful accounts		—			499			289			—			788
Equity in earnings of affiliates		(745	)		(28	)		(47	)		745			(75	)
Depreciation and amortization		—			197			158			—			355
Interest expense		668			(122	)		(16	)		—			530
Impairments of long-lived assets		—			38			53			—			91
Management fees		—			(120	)		120			—			—
		(76	)		3,662			2,911			745			7,242
Income before income taxes		76			817			366			(745	)		514
Provision for income taxes		(217	)		259			94			—			136
Net income		293			558			272			(745	)		378
Net income attributable to noncontrolling interests		—			14			71			—			85
Net income attributable to HCA Holdings, Inc.	$	293		$	544		$	201		$	(745	)	$	293

HCA HOLDINGS, INC.
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2011
(Dollars in millions)

	HCA									Subsidiary
	Holdings, Inc.			HCA Inc.			Subsidiary			Non-						Condensed
	Issuer			Issuer			Guarantors			Guarantors			Eliminations			Consolidated
Revenues	$	—		$	—		$	9,093		$	7,025		$	—		$	16,118
Salaries and benefits		—			—			3,768			2,847			—			6,615
Supplies		—			—			1,431			1,139			—			2,570
Other operating expenses		—			4			1,367			1,277			—			2,648
Provision for doubtful accounts		—			—			874			550			—			1,424
Equity in earnings of affiliates		(504	)		—			(60	)		(89	)		504			(149	)
Depreciation and amortization		—			—			389			327			—			716
Interest expense		60			1,432			(316	)		(123	)		—			1,053
Losses (gains) on sales of facilities		—			—			16			(15	)		—			1
Loss on retirement of debt		—			75			—			—			—			75
Termination of management agreement		—			181			—			—			—			181
Management fees		—			—			(253	)		253			—			—
		(444	)		1,692			7,216			6,166			504			15,134
Income (loss) before income taxes		444			(1,692	)		1,877			859			(504	)		984
Provision for income taxes		(25	)		(698	)		762			291			—			330
Net income (loss)		469			(994	)		1,115			568			(504	)		654
Net income attributable to noncontrolling interests		—			—			31			154			—			185
Net income (loss) attributable to HCA Holdings, Inc.	$	469		$	(994	)	$	1,084		$	414		$	(504	)	$	469

HCA HOLDINGS, INC.
CONDENSED CONSOLIDATING INCOME STATEMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(Dollars in millions)

							Subsidiary
	HCA Inc.			Subsidiary			Non-						Condensed
	Issuer			Guarantors			Guarantors			Eliminations			Consolidated
Revenues	$	—		$	8,853		$	6,447		$	—		$	15,300
Salaries and benefits		—			3,635			2,513			—			6,148
Supplies		—			1,414			1,037			—			2,451
Other operating expenses		3			1,303			1,122			—			2,428
Provision for doubtful accounts		—			857			495			—			1,352
Equity in earnings of affiliates		(1,556	)		(55	)		(88	)		1,556			(143	)
Depreciation and amortization		—			392			318			—			710
Interest expense		1,316			(237	)		(33	)		—			1,046
Impairments of long-lived assets		—			53			56			—			109
Management fees		—			(238	)		238			—			—
		(237	)		7,124			5,658			1,556			14,101
Income before income taxes		237			1,729			789			(1,556	)		1,199
Provision for income taxes		(444	)		572			217			—			345
Net income		681			1,157			572			(1,556	)		854
Net income attributable to noncontrolling interests		—			29			144			—			173
Net income attributable to HCA Holdings, Inc.	$	681		$	1,128		$	428		$	(1,556	)	$	681

HCA HOLDINGS, INC.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2011
(Dollars in millions)

	HCA									Subsidiary
	Holdings, Inc.			HCA Inc.			Subsidiary			Non-					Condensed
	Issuer			Issuer			Guarantors			Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	131		$	408	$	—		$	539
Accounts receivable, net		—			—			2,235			1,711		—			3,946
Inventories		—			—			545			342		—			887
Deferred income taxes		894			—			—			—		—			894
Other		—			—			182			443		—			625
		894			—			3,093			2,904		—			6,891
Property and equipment, net		—			—			6,953			4,631		—			11,584
Investments of insurance subsidiary		—			—			—			515		—			515
Investments in and advances to affiliates		—			—			222			621		—			843
Goodwill		—			—			1,609			1,110		—			2,719
Deferred loan costs		23			309			—			—		—			332
Investments in and advances to subsidiaries		14,786			—			—			—		(14,786	)		—
Other		668			92			29			204		—			993
	$	16,371		$	401		$	11,906		$	9,985	$	(14,786	)	$	23,877
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	—		$	—		$	751		$	546	$	—		$	1,297
Accrued salaries		—			—			628			381		—			1,009
Other accrued expenses		50			271			318			644		—			1,283
Long-term debt due within one year		—			651			14			24		—			689
		50			922			1,711			1,595		—			4,278
Long-term debt		1,525			22,437			82			587		—			24,631
Intercompany balances		23,040			(11,785	)		(13,775	)		2,520		—			—
Professional liability risks		—			—			—			987		—			987
Income taxes and other liabilities		437			334			535			209		—			1,515
		25,052			11,908			(11,447	)		5,898		—			31,411
Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(8,681	)		(11,507	)		23,251			3,042		(14,786	)		(8,681	)
Noncontrolling interests		—			—			102			1,045		—			1,147
		(8,681	)		(11,507	)		23,353			4,087		(14,786	)		(7,534	)
	$	16,371		$	401		$	11,906		$	9,985	$	(14,786	)	$	23,877

HCA HOLDINGS, INC.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2010
(Dollars in millions)

	HCA									Subsidiary
	Holdings, Inc.			HCA Inc.			Subsidiary			Non-					Condensed
	Issuer			Issuer			Guarantors			Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	6		$	—		$	156		$	249	$	—		$	411
Accounts receivable, net		—			—			2,214			1,618		—			3,832
Inventories		—			—			547			350		—			897
Deferred income taxes		931			—			—			—		—			931
Other		202			—			223			423		—			848
		1,139			—			3,140			2,640		—			6,919
Property and equipment, net		—			—			6,817			4,535		—			11,352
Investments of insurance subsidiary		—			—			—			642		—			642
Investments in and advances to affiliates		—			—			248			621		—			869
Goodwill		—			—			1,635			1,058		—			2,693
Deferred loan costs		23			351			—			—		—			374
Investments in and advances to subsidiaries		14,282			—			—			—		(14,282	)		—
Other		776			39			21			167		—			1,003
	$	16,220		$	390		$	11,861		$	9,663	$	(14,282	)	$	23,852
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	—		$	—		$	919		$	618	$	—		$	1,537
Accrued salaries		—			—			556			339		—			895
Other accrued expenses		12			296			328			609		—			1,245
Long-term debt due within one year		—			554			12			26		—			592
		12			850			1,815			1,592		—			4,269
Long-term debt		1,525			25,758			95			255		—			27,633
Intercompany balances		25,985			(16,130	)		(12,833	)		2,978		—			—
Professional liability risks		—			—			—			995		—			995
Income taxes and other liabilities		483			425			505			195		—			1,608
		28,005			10,903			(10,418	)		6,015		—			34,505
Equity securities with contingent redemption rights		141			—			—			—		—			141
Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(11,926	)		(10,513	)		22,167			2,628		(14,282	)		(11,926	)
Noncontrolling interests		—			—			112			1,020		—			1,132
		(11,926	)		(10,513	)		22,279			3,648		(14,282	)		(10,794	)
	$	16,220		$	390		$	11,861		$	9,663	$	(14,282	)	$	23,852

HCA HOLDINGS, INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2011
(Dollars in millions)

	HCA									Subsidiary
	Holdings, Inc.			HCA Inc.			Subsidiary			Non-						Condensed
	Issuer			Issuer			Guarantors			Guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	469		$	(994	)	$	1,115		$	568		$	(504	)	$	654
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		4			(24	)		(916	)		(640	)		—			(1,576	)
Provision for doubtful accounts		—			—			874			550			—			1,424
Depreciation and amortization		—			—			389			327			—			716
Income taxes		317			—			—			—			—			317
Losses (gains) on sales of facilities		—			—			15			(14	)		—			1
Loss on retirement of debt		—			75			—			—			—			75
Amortization of deferred loan costs		—			39			—			—			—			39
Share-based compensation		16			—			—			—			—			16
Equity in earnings of affiliates		(504	)		—			—			—			504			—
Other		—			6			—			(6	)		—			—
Net cash provided by (used in) operating activities		302			(898	)		1,477			785			—			1,666
Cash flows from investing activities:
Purchase of property and equipment		—			—			(389	)		(387	)		—			(776	)
Acquisition of hospitals and health care entities		—			—			(136	)		(32	)		—			(168	)
Disposition of hospitals and health care entities		—			—			1			53			—			54
Change in investments		—			—			24			52			—			76
Other		—			—			—			2			—			2
Net cash used in investing activities		—			—			(500	)		(312	)		—			(812	)
Cash flows from financing activities:
Net change in revolving bank credit facilities		—			(1,524	)		—			—			—			(1,524	)
Repayment of long-term debt		—			(1,456	)		(6	)		(46	)		—			(1,508	)
Distributions to noncontrolling interests		—			—			(41	)		(144	)		—			(185	)
Distributions to stockholders		(30	)		—			—			—			—			(30	)
Changes in intercompany balances with affiliates, net		(2,805	)		3,890			(955	)		(130	)		—			—
Payment of debt issuance costs		—			(12	)		—			—			—			(12	)
Issuances of common stock		2,506			—			—			—			—			2,506
Income tax benefits		49			—			—			—			—			49
Other		(28	)		—			—			6			—			(22	)
Net cash (used in) provided by financing activities		(308	)		898			(1,002	)		(314	)		—			(726	)
Change in cash and cash equivalents		(6	)		—			(25	)		159			—			128
Cash and cash equivalents at beginning of period		6			—			156			249			—			411
Cash and cash equivalents at end of period	$	—		$	—		$	131		$	408		$	—		$	539

HCA HOLDINGS, INC.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(Dollars in millions)

							Subsidiary
	HCA Inc.			Subsidiary			Non-						Condensed
	Issuer			Guarantors			Guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	681		$	1,157		$	572		$	(1,556	)	$	854
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Changes in operating assets and liabilities		31			(1,057	)		(672	)		—			(1,698	)
Provision for doubtful accounts		—			857			495			—			1,352
Depreciation and amortization		—			392			318			—			710
Income taxes		(111	)		—			—			—			(111	)
Impairments of long-lived assets		—			48			61			—			109
Amortization of deferred loan costs		40			—			—			—			40
Share-based compensation		16			—			—			—			16
Equity in earnings of affiliates		(1,556	)		—			—			1,556			—
Other		23			—			—			—			23
Net cash (used in) provided by operating activities		(876	)		1,397			774			—			1,295
Cash flows from investing activities:
Purchase of property and equipment		—			(225	)		(311	)		—			(536	)
Acquisition of hospitals and health care entities		—			(21	)		(10	)		—			(31	)
Disposition of hospitals and health care entities		—			24			1			—			25
Change in investments		—			10			492			—			502
Other		—			(1	)		(10	)		—			(11	)
Net cash (used in) provided by investing activities		—			(213	)		162			—			(51	)
Cash flows from financing activities:
Issuance of long-term debt		1,387			—			—			—			1,387
Net change in revolving credit facilities		1,329			—			—			—			1,329
Repayment of long-term debt		(1,508	)		(11	)		(10	)		—			(1,529	)
Distributions to noncontrolling interests		—			(41	)		(135	)		—			(176	)
Distributions to stockholders		(2,251	)		—			—			—			(2,251	)
Changes in intercompany balances with affiliates, net		1,893			(1,119	)		(774	)		—			—
Payment of debt issuance costs		(25	)		—			—			—			(25	)
Income tax benefits		56			—			—			—			56
Other		(5	)		—			8			—			3
Net cash provided by (used in) financing activities		876			(1,171	)		(911	)		—			(1,206	)
Change in cash and cash equivalents		—			13			25			—			38
Cash and cash equivalents at beginning of period		—			95			217			—			312
Cash and cash equivalents at end of period	$	—		$	108		$	242		$	—		$	350