INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

The provision for income taxes consists of the following (dollars in millions):

A reconciliation of the federal statutory rate to the effective income tax rate follows:


	2012			2011			2010
Federal statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		2.2			2.0			2.7
Change in liability for uncertain tax positions		—			1.0			0.3
Nontaxable gain on acquisition of controlling interest in equity investment		—			(13.8	)		—
Tax exempt interest income		(0.2	)		(0.2	)		(0.4	)
Other items, net		(1.4	)		(1.4	)		(2.3	)

Effective income tax rate on income applicable to HCA Holdings, Inc.		35.6			22.6			35.3
Income attributable to noncontrolling interests from consolidated partnerships		(4.9	)		(2.4	)		(5.8	)

Effective income tax rate on income before income taxes		30.7	%		20.2	%		29.5	%

A summary of the items comprising the deferred tax assets and liabilities at December 31 follows (dollars in millions):


	2012				2011
	Assets		Liabilities		Assets		Liabilities
Depreciation and fixed asset basis differences	$	—	$	292	$	—	$	402
Allowances for professional liability and other risks		355		—		337		—
Accounts receivable		405		—		706		—
Compensation		237		—		216		—
Other		744		595		698		511

	$	1,741	$	887	$	1,957	$	913

The following table summarizes the activity related to our unrecognized tax benefits (dollars in millions):


	2012			2011
Balance at January 1	$	445		$	313
Additions based on tax positions related to the current year		16			83
Additions for tax positions of prior years		92			73
Reductions for tax positions of prior years		(19	)		(15	)
Settlements		(103	)		—
Lapse of applicable statutes of limitations		(6	)		(9	)

Balance at December 31	$	425		$	445