Supplemental Condensed Consolidating Financial Information

9 Months Ended

Sep. 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 7  ³/4% 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 September 30, 2011 and December 31, 2010, condensed consolidating statements of income for the quarters and nine months ended September 30, 2011 and 2010 and condensed consolidating statements of cash flows for the nine months ended September 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 SEPTEMBER 30, 2011

(Dollars in millions)

	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	4,569		$	3,481		$	—		$	8,050
Provision for doubtful accounts		—			—			424			316			—			740
Revenues		—			—			4,145			3,165			—			7,310
Salaries and benefits		—			—			1,901			1,432			—			3,333
Supplies		—			—			702			561			—			1,263
Other operating expenses		—			1			697			672			—			1,370
Equity in earnings of affiliates		(77	)		—			(24	)		(44	)		77			(68	)
Depreciation and amortization		—			—			193			169			—			362
Interest expense		20			776			(245	)		(32	)		—			519
Losses on sales of facilities		—			—			2			—			—			2
Losses on retirement of debt		—			406			—			—			—			406
Management fees		—			—			(128	)		128			—			—
		(57	)		1,183			3,098			2,886			77			7,187
Income (loss) before income taxes		57			(1,183	)		1,047			279			(77	)		123
Provision (benefit) for income taxes		(4	)		(357	)		293			45			—			(23	)
Net income (loss)		61			(826	)		754			234			(77	)		146
Net income attributable to noncontrolling interests		—			—			16			69			—			85
Net income (loss) attributable to HCA Holdings, Inc.	$	61		$	(826	)	$	738		$	165		$	(77	)	$	61

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING INCOME STATEMENT

FOR THE QUARTER ENDED SEPTEMBER 30, 2010

(Dollars in millions)

	HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	4,415		$	3,232		$	—		$	7,647
Provision for doubtful accounts		—			452			269			—			721
Revenues		—			3,963			2,963			—			6,926
Salaries and benefits		—			1,829			1,305			—			3,134
Supplies		—			698			536			—			1,234
Other operating expenses		1			678			589			—			1,268
Equity in earnings of affiliates		(680	)		(27	)		(40	)		680			(67	)
Depreciation and amortization		—			196			156			—			352
Interest expense		685			(139	)		(21	)		—			525
Losses on sales of facilities		—			—			2			—			2
Impairments of long-lived assets		—			5			5			—			10
Management fees		—			(118	)		118			—			—
		6			3,122			2,650			680			6,458
Income (loss) before income taxes		(6	)		841			313			(680	)		468
Provision (benefit) for income taxes		(249	)		303			89			—			143
Net income		243			538			224			(680	)		325
Net income attributable to noncontrolling interests		—			4			78			—			82
Net income attributable to HCA Holdings, Inc.	$	243		$	534		$	146		$	(680	)	$	243

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING INCOME STATEMENT

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011

(Dollars in millions)

	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	13,662		$	10,506		$	—		$	24,168
Provision for doubtful accounts		—			—			1,298			866			—			2,164
Revenues		—			—			12,364			9,640			—			22,004
Salaries and benefits		—			—			5,669			4,279			—			9,948
Supplies		—			—			2,133			1,700			—			3,833
Other operating expenses		—			5			2,064			1,949			—			4,018
Equity in earnings of affiliates		(581	)		—			(84	)		(133	)		581			(217	)
Depreciation and amortization		—			—			582			496			—			1,078
Interest expense		80			2,208			(561	)		(155	)		—			1,572
Losses (gains) on sales of facilities		—			—			18			(15	)		—			3
Losses on retirement of debt		—			481			—			—			—			481
Termination of management agreement		—			181			—			—			—			181
Management fees		—			—			(381	)		381			—			—
		(501	)		2,875			9,440			8,502			581			20,897
Income (loss) before income taxes		501			(2,875	)		2,924			1,138			(581	)		1,107
Provision (benefit) for income taxes		(29	)		(1,055	)		1,055			336			—			307
Net income (loss)		530			(1,820	)		1,869			802			(581	)		800
Net income attributable to noncontrolling interests		—			—			47			223			—			270
Net income (loss) attributable to HCA Holdings, Inc.	$	530		$	(1,820	)	$	1,822		$	579		$	(581	)	$	530

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING INCOME STATEMENT

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010

(Dollars in millions)

	HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	13,268		$	9,679		$	—		$	22,947
Provision for doubtful accounts		—			1,309			764			—			2,073
Revenues		—			11,959			8,915			—			20,874
Salaries and benefits		—			5,464			3,818			—			9,282
Supplies		—			2,112			1,573			—			3,685
Other operating expenses		4			1,981			1,711			—			3,696
Equity in earnings of affiliates		(2,236	)		(82	)		(128	)		2,236			(210	)
Depreciation and amortization		—			588			474			—			1,062
Interest expense		2,001			(376	)		(54	)		—			1,571
Losses on sales of facilities		—			—			2			—			2
Impairments of long-lived assets		—			58			61			—			119
Management fees		—			(356	)		356			—			—
		(231	)		9,389			7,813			2,236			19,207
Income before income taxes		231			2,570			1,102			(2,236	)		1,667
Provision (benefit) for income taxes		(693	)		875			306			—			488
Net income		924			1,695			796			(2,236	)		1,179
Net income attributable to noncontrolling interests		—			33			222			—			255
Net income attributable to HCA Holdings, Inc.	$	924		$	1,662		$	574		$	(2,236	)	$	924

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

SEPTEMBER 30, 2011

(Dollars in millions)

	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors		Eliminations			Condensed Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	95		$	264	$	—		$	359
Accounts receivable, net		—			—			2,259			1,666		—			3,925
Inventories		—			—			546			345		—			891
Deferred income taxes		643			—			—			—		—			643
Other		218			—			228			429		—			875
		861			—			3,128			2,704		—			6,693
Property and equipment, net		—			—			6,973			4,672		—			11,645
Investments of insurance subsidiary		—			—			—			545		—			545
Investments in and advances to affiliates		—			—			220			617		—			837
Goodwill		—			—			1,608			1,093		—			2,701
Deferred loan costs		22			275			—			—		—			297
Investments in and advances to subsidiaries		14,863			—			—			—		(14,863	)		—
Other		763			38			26			211		—			1,038
	$	16,509		$	313		$	11,955		$	9,842	$	(14,863	)	$	23,756
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	—		$	—		$	769		$	565	$	—		$	1,334
Accrued salaries		—			—			557			319		—			876
Other accrued expenses		44			234			350			708		—			1,336
Long-term debt due within one year		—			682			15			28		—			725
		44			916			1,691			1,620		—			4,271
Long-term debt		1,525			23,693			87			566		—			25,871
Intercompany balances		24,619			(12,397	)		(14,435	)		2,213		—			—
Professional liability risks		—			—			—			993		—			993
Income taxes and other liabilities		515			434			519			215		—			1,683
		26,703			12,646			(12,138	)		5,607		—			32,818
Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(10,194	)		(12,333	)		23,989			3,207		(14,863	)		(10,194	)
Noncontrolling interests		—			—			104			1,028		—			1,132
		(10,194	)		(12,333	)		24,093			4,235		(14,863	)		(9,062	)
	$	16,509		$	313		$	11,955		$	9,842	$	(14,863	)	$	23,756

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2010

(Dollars in millions)

	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors		Eliminations			Condensed 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 NINE MONTHS ENDED SEPTEMBER 30, 2011

(Dollars in millions)

	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Cash flows from operating activities:
Net income	$	530		$	(1,820	)	$	1,869		$	802		$	(581	)	$	800
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		34			(61	)		(1,442	)		(867	)		—			(2,336	)
Provision for doubtful accounts		—			—			1,298			866			—			2,164
Depreciation and amortization		—			—			582			496			—			1,078
Income taxes		348			—			—			—			—			348
Losses (gains) on sales of facilities		—			—			18			(15	)		—			3
Losses on retirement of debt		—			481			—			—			—			481
Amortization of deferred loan costs		—			56			—			—			—			56
Share-based compensation		24			—			—			—			—			24
Pay-in-kind interest		—			(78	)		—			—			—			(78	)
Equity in earnings of affiliates		(581	)		—			—			—			581			—
Other		—			7			—			(1	)		—			6
Net cash provided by (used in) operating activities		355			(1,415	)		2,325			1,281			—			2,546
Cash flows from investing activities:
Purchase of property and equipment		—			—			(594	)		(576	)		—			(1,170	)
Acquisition of hospitals and health care entities		—			—			(136	)		(73	)		—			(209	)
Disposition of hospitals and health care entities		—			—			1			54			—			55
Change in investments		—			—			31			49			—			80
Other		—			—			—			4			—			4
Net cash used in investing activities		—			—			(698	)		(542	)		—			(1,240	)
Cash flows from financing activities:
Issuance of long-term debt		—			5,000			—			—			—			5,000
Net change in revolving bank credit facilities		—			(414	)		—			—			—			(414	)
Repayment of long-term debt		—			(6,529	)		(8	)		(46	)		—			(6,583	)
Distributions to noncontrolling interests		—			—			(55	)		(226	)		—			(281	)
Distributions to stockholders		(31	)		—			—			—			—			(31	)
Changes in intercompany balances with affiliates, net		(1,358	)		3,442			(1,625	)		(459	)		—			—
Payment of debt issuance costs		—			(84	)		—			—			—			(84	)
Issuances of common stock		2,506			—			—			—			—			2,506
Repurchase of common stock		(1,503	)		—			—			—			—			(1,503	)
Income tax benefits		54			—			—			—			—			54
Other		(29	)		—			—			7			—			(22	)
Net cash (used in) provided by financing activities		(361	)		1,415			(1,688	)		(724	)		—			(1,358	)
Change in cash and cash equivalents		(6	)		—			(61	)		15			—			(52	)
Cash and cash equivalents at beginning of period		6			—			156			249			—			411
Cash and cash equivalents at end of period	$	—		$	—		$	95		$	264		$	—		$	359

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010

(Dollars in millions)

	HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Cash flows from operating activities:
Net income	$	924		$	1,695		$	796		$	(2,236	)	$	1,179
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Changes in operating assets and liabilities		111			(1,358	)		(680	)		—			(1,927	)
Provision for doubtful accounts		—			1,309			764			—			2,073
Depreciation and amortization		—			588			474			—			1,062
Income taxes		(70	)		—			—			—			(70	)
Losses on sales of facilities		—			—			2			—			2
Impairments of long-lived assets		—			58			61			—			119
Amortization of deferred loan costs		60			—			—			—			60
Share-based compensation		24			—			—			—			24
Equity in earnings of affiliates		(2,236	)		—			—			2,236			—
Other		29			—			—			—			29
Net cash (used in) provided by operating activities		(1,158	)		2,292			1,417			—			2,551
Cash flows from investing activities:
Purchase of property and equipment		—			(338	)		(522	)		—			(860	)
Acquisition of hospitals and health care entities		—			(21	)		(14	)		—			(35	)
Disposition of hospitals and health care entities		—			24			2			—			26
Change in investments		—			1			472			—			473
Other		—			—			(2	)		—			(2	)
Net cash used in investing activities		—			(334	)		(64	)		—			(398	)
Cash flows from financing activities:
Issuance of long-term debt		1,387			—			—			—			1,387
Net change in revolving credit facilities		1,035			—			—			—			1,035
Repayment of long-term debt		(1,956	)		(16	)		(48	)		—			(2,020	)
Distributions to noncontrolling interests		—			(49	)		(233	)		—			(282	)
Distributions to stockholders		(2,251	)		—			—			—			(2,251	)
Changes in intercompany balances with affiliates, net		2,913			(1,896	)		(1,017	)		—			—
Payment of debt issuance costs		(25	)		—			—			—			(25	)
Income tax benefits		60			—			—			—			60
Other		(5	)		—			13			—			8
Net cash provided by (used in) financing activities		1,158			(1,961	)		(1,285	)		—			(2,088	)
Change in cash and cash equivalents		—			(3	)		68			—			65
Cash and cash equivalents at beginning of period		—			95			217			—			312
Cash and cash equivalents at end of period	$	—		$	92		$	285		$	—		$	377