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 parent company, and HCA Inc. became HCA Holdings, Inc.’s 100% 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. On December 6, 2012, HCA Holdings, Inc. issued $1.000 billion aggregate principal amount of 6.25% senior unsecured notes due 2021. These notes are senior unsecured obligations and are not guaranteed by any of our subsidiaries.

The senior secured credit facilities and senior secured notes are fully and unconditionally guaranteed by substantially all existing and future, direct and indirect, 100% 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 comprehensive income statements for the quarters and nine months ended September 30, 2013 and 2012, condensed consolidating balance sheets at September 30, 2013 and December 31, 2012 and condensed consolidating statements of cash flows for the nine months ended September 30, 2013 and 2012, segregating HCA Holdings, Inc. issuer, HCA Inc. issuer, the subsidiary guarantors, the subsidiary non-guarantors and eliminations, follow:

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED SEPTEMBER 30, 2013

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	4,945		$	4,466		$	—		$	9,411
Provision for doubtful accounts		—			—			560			395			—			955

Revenues		—			—			4,385			4,071			—			8,456

Salaries and benefits		—			—			2,090			1,826			—			3,916
Supplies		—			—			773			684			—			1,457
Other operating expenses		2			(1	)		771			792			—			1,564
Electronic health record incentive income		—			—			(53	)		(22	)		—			(75	)
Equity in earnings of affiliates		(443	)		—			—			(9	)		443			(9	)
Depreciation and amortization		—			—			216			227			—			443
Interest expense		41			549			(104	)		(28	)		—			458
Losses on sales of facilities		—			—			1			—			—			1
Management fees		—			—			(183	)		183			—			—

		(400	)		548			3,511			3,653			443			7,755

Income (loss) before income taxes		400			(548	)		874			418			(443	)		701
Provision (benefit) for income taxes		(17	)		(214	)		334			131			—			234

Net income (loss)		417			(334	)		540			287			(443	)		467
Net income attributable to noncontrolling interests		—			—			19			83			—			102

Net income (loss) attributable to HCA Holdings, Inc.	$	417		$	(334	)	$	521		$	204		$	(443	)	$	365

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	417		$	(331	)	$	532		$	242		$	(443	)	$	417

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED SEPTEMBER 30, 2012

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	4,672		$	4,221		$	—		$	8,893
Provision for doubtful accounts		—			—			484			347			—			831

Revenues		—			—			4,188			3,874			—			8,062

Salaries and benefits		—			—			1,995			1,786			—			3,781
Supplies		—			—			711			664			—			1,375
Other operating expenses		—			3			761			746			—			1,510
Electronic health record incentive income		—			—			(85	)		(46	)		—			(131	)
Equity in earnings of affiliates		(379	)		—			(1	)		(5	)		379			(6	)
Depreciation and amortization		—			—			205			212			—			417
Interest expense		30			545			(98	)		(31	)		—			446
Gains on sales of facilities		—			—			—			(7	)		—			(7	)
Management fees		—			—			(170	)		170			—			—

		(349	)		548			3,318			3,489			379			7,385

Income (loss) before income taxes		349			(548	)		870			385			(379	)		677
Provision (benefit) for income taxes		(11	)		(208	)		325			116			—			222

Net income (loss)		360			(340	)		545			269			(379	)		455
Net income attributable to noncontrolling interests		—			—			18			77			—			95

Net income (loss) attributable to HCA Holdings, Inc.	$	360		$	(340	)	$	527		$	192		$	(379	)	$	360

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	360		$	(357	)	$	531		$	214		$	(379	)	$	369

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	14,829		$	13,249		$	—		$	28,078
Provision for doubtful accounts		—			—			1,611			1,121			—			2,732

Revenues		—			—			13,218			12,128			—			25,346

Salaries and benefits		—			—			6,275			5,406			—			11,681
Supplies		—			—			2,340			2,066			—			4,406
Other operating expenses		4			(1	)		2,260			2,331			—			4,594
Electronic health record incentive income		—			—			(115	)		(51	)		—			(166	)
Equity in earnings of affiliates		(1,303	)		—			(2	)		(27	)		1,303			(29	)
Depreciation and amortization		—			—			636			656			—			1,292
Interest expense		138			1,651			(319	)		(78	)		—			1,392
Losses (gains) on sales of facilities		—			—			20			(7	)		—			13
Loss on retirement of debt		—			17			—			—			—			17
Management fees		—			—			(547	)		547			—			—

		(1,161	)		1,667			10,548			10,843			1,303			23,200

Income (loss) before income taxes		1,161			(1,667	)		2,670			1,285			(1,303	)		2,146
Provision (benefit) for income taxes		(54	)		(639	)		1,005			392			—			704

Net income (loss)		1,215			(1,028	)		1,665			893			(1,303	)		1,442
Net income attributable to noncontrolling interests		—			—			48			262			—			310

Net income (loss) attributable to HCA Holdings, Inc.	$	1,215		$	(1,028	)	$	1,617		$	631		$	(1,303	)	$	1,132

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	1,215		$	(961	)	$	1,637		$	627		$	(1,303	)	$	1,215

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	14,328		$	12,917		$	—		$	27,245
Provision for doubtful accounts		—			—			1,505			1,161			—			2,666

Revenues		—			—			12,823			11,756			—			24,579

Salaries and benefits		—			—			5,928			5,296			—			11,224
Supplies		—			—			2,202			2,014			—			4,216
Other operating expenses		—			7			2,241			2,248			—			4,496
Electronic health record incentive income		—			—			(174	)		(82	)		—			(256	)
Equity in earnings of affiliates		(1,348	)		—			(4	)		(22	)		1,348			(26	)
Depreciation and amortization		—			—			614			640			—			1,254
Interest expense		90			1,603			(274	)		(83	)		—			1,336
Losses (gains) on sales of facilities		—			—			3			(7	)		—			(4	)
Management fees		—			—			(498	)		498			—			—

		(1,258	)		1,610			10,038			10,502			1,348			22,240

Income (loss) before income taxes		1,258			(1,610	)		2,785			1,254			(1,348	)		2,339
Provision (benefit) for income taxes		(33	)		(597	)		1,014			376			—			760

Net income (loss)		1,291			(1,013	)		1,771			878			(1,348	)		1,579
Net income attributable to noncontrolling interests		—			—			51			237			—			288

Net income (loss) attributable to HCA Holdings, Inc.	$	1,291		$	(1,013	)	$	1,720		$	641		$	(1,348	)	$	1,291

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	1,291		$	(1,055	)	$	1,733		$	670		$	(1,348	)	$	1,291

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

SEPTEMBER 30, 2013

(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	$	—		$	—		$	167		$	317	$	—		$	484
Accounts receivable, net		—			—			2,481			2,443		—			4,924
Inventories		—			—			667			468		—			1,135
Deferred income taxes		400			—			—			—		—			400
Other		6			—			327			495		—			828

		406			—			3,642			3,723		—			7,771

Property and equipment, net		—			—			7,467			5,855		—			13,322
Investments of insurance subsidiaries		—			—			—			402		—			402
Investments in and advances to affiliates		19,784			—			15			110		(19,784	)		125
Goodwill and other intangible assets		—			—			1,695			4,137		—			5,832
Deferred loan costs		30			220			—			—		—			250
Other		315			—			37			339		—			691

	$	20,535		$	220		$	12,856		$	14,566	$	(19,784	)	$	28,393

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	1		$	—		$	1,012		$	569	$	—		$	1,582
Accrued salaries		—			—			634			451		—			1,085
Other accrued expenses		255			259			441			809		—			1,764
Long-term debt due within one year		—			906			43			39		—			988

		256			1,165			2,130			1,868		—			5,419

Long-term debt		2,525			24,174			165			525		—			27,389
Intercompany balances		25,682			(10,477	)		(18,677	)		3,472		—			—
Professional liability risks		—			—			—			959		—			959
Income taxes and other liabilities		448			327			639			256		—			1,670

		28,911			15,189			(15,743	)		7,080		—			35,437
Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(8,376	)		(14,969	)		28,484			6,269		(19,784	)		(8,376	)
Noncontrolling interests		—			—			115			1,217		—			1,332

		(8,376	)		(14,969	)		28,599			7,486		(19,784	)		(7,044	)

	$	20,535		$	220		$	12,856		$	14,566	$	(19,784	)	$	28,393

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2012

(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	$	22		$	—		$	383		$	300	$	—		$	705
Accounts receivable, net		—			—			2,448			2,224		—			4,672
Inventories		—			—			629			457		—			1,086
Deferred income taxes		385			—			—			—		—			385
Other		122			—			342			451		—			915

		529			—			3,802			3,432		—			7,763

Property and equipment, net		—			—			7,417			5,768		—			13,185
Investments of insurance subsidiaries		—			—			—			515		—			515
Investments in and advances to affiliates		18,481			—			16			88		(18,481	)		104
Goodwill and other intangible assets		—			—			1,697			3,842		—			5,539
Deferred loan costs		32			258			—			—		—			290
Other		469			—			31			179		—			679

	$	19,511		$	258		$	12,963		$	13,824	$	(18,481	)	$	28,075

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	—		$	—		$	1,203		$	565	$	—		$	1,768
Accrued salaries		—			—			638			482		—			1,120
Other accrued expenses		30			567			464			788		—			1,849
Long-term debt due within one year		—			1,360			39			36		—			1,435

		30			1,927			2,344			1,871		—			6,172

Long-term debt		2,525			24,304			173			493		—			27,495
Intercompany balances		26,131			(12,407	)		(17,130	)		3,406		—			—
Professional liability risks		—			—			—			973		—			973
Income taxes and other liabilities		485			442			629			220		—			1,776

		29,171			14,266			(13,984	)		6,963		—			36,416
Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(9,660	)		(14,008	)		26,847			5,642		(18,481	)		(9,660	)
Noncontrolling interests		—			—			100			1,219		—			1,319

		(9,660	)		(14,008	)		26,947			6,861		(18,481	)		(8,341	)

	$	19,511		$	258		$	12,963		$	13,824	$	(18,481	)	$	28,075

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013

(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 (loss)	$	1,215		$	(1,028	)	$	1,665		$	893		$	(1,303	)	$	1,442
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		47			(126	)		(1,848	)		(1,392	)		—			(3,319	)
Provision for doubtful accounts		—			—			1,611			1,121			—			2,732
Depreciation and amortization		—			—			636			656			—			1,292
Income taxes		158			—			—			—			—			158
Losses (gains) on sales of facilities		—			—			20			(7	)		—			13
Loss on retirement of debt		—			17			—			—			—			17
Amortization of deferred loan costs		3			38			—			—			—			41
Share-based compensation		81			—			—			—			—			81
Equity in earnings of affiliates		(1,303	)		—			—			—			1,303			—
Other		—			7			—			(10	)		—			(3	)

Net cash provided by (used in) operating activities		201			(1,092	)		2,084			1,261			—			2,454

Cash flows from investing activities:
Purchase of property and equipment		—			—			(684	)		(663	)		—			(1,347	)
Acquisition of hospitals and health care entities		—			—			—			(463	)		—			(463	)
Disposition of hospitals and health care entities		—			—			17			14			—			31
Change in investments		—			—			(6	)		103			—			97
Other		—			—			—			8			—			8

Net cash used in investing activities		—			—			(673	)		(1,001	)		—			(1,674	)

Cash flows from financing activities:
Net change in revolving bank credit facilities		—			630			—			—			—			630
Repayment of long-term debt		—			(1,243	)		(34	)		(23	)		—			(1,300	)
Distributions to noncontrolling interests		—			—			(34	)		(274	)		—			(308	)
Payment of debt issuance costs		—			(5	)		—			—			—			(5	)
Distributions to stockholders		(13	)		—			—			—			—			(13	)
Changes in intercompany balances with affiliates, net		(199	)		1,710			(1,559	)		48			—			—
Income tax benefits		70			—			—			—			—			70
Other		(81	)		—			—			6			—			(75	)

Net cash (used in) provided by financing activities		(223	)		1,092			(1,627	)		(243	)		—			(1,001	)

Change in cash and cash equivalents		(22	)		—			(216	)		17			—			(221	)
Cash and cash equivalents at beginning of period		22			—			383			300			—			705

Cash and cash equivalents at end of period	$	—		$	—		$	167		$	317		$	—		$	484

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012

(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 (loss)	$	1,291		$	(1,013	)	$	1,771		$	878		$	(1,348	)	$	1,579
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		30			(131	)		(1,475	)		(1,347	)		—			(2,923	)
Provision for doubtful accounts		—			—			1,505			1,161			—			2,666
Depreciation and amortization		—			—			614			640			—			1,254
Income taxes		250			—			—			—			—			250
Losses (gains) on sales of facilities		—			—			3			(7	)		—			(4	)
Amortization of deferred loan costs		1			43			—			—			—			44
Share-based compensation		39			—			—			—			—			39
Equity in earnings of affiliates		(1,348	)		—			—			—			1,348			—
Other		—			11			—			(4	)		—			7

Net cash provided by (used in) operating activities		263			(1,090	)		2,418			1,321			—			2,912

Cash flows from investing activities:
Purchase of property and equipment		—			—			(685	)		(583	)		—			(1,268	)
Acquisition of hospitals and health care entities		—			—			(72	)		(95	)		—			(167	)
Disposition of hospitals and health care entities		—			—			1			16			—			17
Change in investments		—			—			(9	)		82			—			73
Other		—			—			(1	)		6			—			5

Net cash used in investing activities		—			—			(766	)		(574	)		—			(1,340	)

Cash flows from financing activities:
Issuance of long-term debt		—			1,350			—			—			—			1,350
Net change in revolving bank credit facilities		—			(875	)		—			—			—			(875	)
Repayment of long-term debt		—			(604	)		(16	)		(69	)		—			(689	)
Distributions to noncontrolling interests		—			—			(46	)		(257	)		—			(303	)
Payment of debt issuance costs		—			(20	)		—			—			—			(20	)
Distributions to stockholders		(983	)		—			—			—			—			(983	)
Changes in intercompany balances with affiliates, net		675			1,239			(1,556	)		(358	)		—			—
Income tax benefits		82			—			—			—			—			82
Other		(37	)		—			—			2			—			(35	)

Net cash (used in) provided by financing activities		(263	)		1,090			(1,618	)		(682	)		—			(1,473	)

Change in cash and cash equivalents		—			—			34			65			—			99
Cash and cash equivalents at beginning of period		—			—			115			258			—			373

Cash and cash equivalents at end of period	$	—		$	—		$	149		$	323		$	—		$	472