NOTE 12 — SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

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.

HCA Inc., a direct wholly-owned subsidiary of HCA Holdings, Inc., is the obligor under a significant portion of our other indebtedness, including our senior secured credit facilities, senior secured notes and senior unsecured notes (other than the senior unsecured notes issued by HCA Holdings, Inc.). The senior secured notes and senior unsecured notes issued by HCA Inc. are fully and unconditionally guaranteed by HCA Holdings, Inc. 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, 2014 and 2013, condensed consolidating balance sheets at September 30, 2014 and December 31, 2013 and condensed consolidating statements of cash flows for the nine months ended September 30, 2014 and 2013, 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, 2014

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	5,133		$	4,845		$	—		$	9,978
Provision for doubtful accounts		—			—			457			301			—			758

Revenues		—			—			4,676			4,544			—			9,220

Salaries and benefits		—			—			2,176			2,035			—			4,211
Supplies		—			—			797			742			—			1,539
Other operating expenses		4			—			804			880			—			1,688
Electronic health record incentive income		—			—			(22	)		(10	)		—			(32	)
Equity in earnings of affiliates		(542	)		—			(3	)		(11	)		542			(14	)
Depreciation and amortization		—			—			225			235			—			460
Interest expense		46			536			(115	)		(40	)		—			427
Losses (gains) on sales of facilities		—			—			16			(4	)		—			12
Management fees		—			—			(178	)		178			—			—

		(492	)		536			3,700			4,005			542			8,291

Income (loss) before income taxes		492			(536	)		976			539			(542	)		929
Provision (benefit) for income taxes		(19	)		(205	)		365			177			—			318

Net income (loss)		511			(331	)		611			362			(542	)		611
Net income attributable to noncontrolling interests		—			—			18			75			—			93

Net income (loss) attributable to HCA Holdings, Inc.	$	511		$	(331	)	$	593		$	287		$	(542	)	$	518

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	511		$	(303	)	$	595		$	250		$	(542	)	$	511

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 NINE MONTHS ENDED SEPTEMBER 30, 2014

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	15,242		$	14,377		$	—		$	29,619
Provision for doubtful accounts		—			—			1,388			949			—			2,337

Revenues		—			—			13,854			13,428			—			27,282

Salaries and benefits		—			—			6,393			5,966			—			12,359
Supplies		—			—			2,416			2,187			—			4,603
Other operating expenses		14			—			2,366			2,597			—			4,977
Electronic health record incentive income		—			—			(68	)		(29	)		—			(97	)
Equity in earnings of affiliates		(1,494	)		—			(5	)		(27	)		1,494			(32	)
Depreciation and amortization		—			—			667			694			—			1,361
Interest expense		138			1,629			(349	)		(104	)		—			1,314
Gains on sales of facilities		—			—			(16	)		(4	)		—			(20	)
Losses on retirement of debt		—			226			—			—			—			226
Legal claim costs		—			78			—			—			—			78
Management fees		—			—			(528	)		528			—			—

		(1,342	)		1,933			10,876			11,808			1,494			24,769

Income (loss) before income taxes		1,342			(1,933	)		2,978			1,620			(1,494	)		2,513
Provision (benefit) for income taxes		(57	)		(729	)		1,098			504			—			816

Net income (loss)		1,399			(1,204	)		1,880			1,116			(1,494	)		1,697
Net income attributable to noncontrolling interests		—			—			65			284			—			349

Net income (loss) attributable to HCA Holdings, Inc.	$	1,399		$	(1,204	)	$	1,815		$	832		$	(1,494	)	$	1,348

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	1,399		$	(1,154	)	$	1,822		$	826		$	(1,494	)	$	1,399

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
Losses 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 BALANCE SHEET

SEPTEMBER 30, 2014

(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	$	—		$	—		$	113		$	402	$	—		$	515
Accounts receivable, net		—			—			2,671			2,853		—			5,524
Inventories		—			—			748			510		—			1,258
Deferred income taxes		320			—			—			—		—			320
Other		—			—			369			541		—			910

		320			—			3,901			4,306		—			8,527

Property and equipment, net		—			—			7,762			6,116		—			13,878
Investments of insurance subsidiaries		—			—			—			441		—			441
Investments in and advances to affiliates		21,850			—			16			151		(21,850	)		167
Goodwill and other intangible assets		—			—			1,698			4,201		—			5,899
Deferred loan costs		27			194			—			—		—			221
Other		476			—			21			195		—			692

	$	22,673		$	194		$	13,398		$	15,410	$	(21,850	)	$	29,825

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	3		$	—		$	1,132		$	652	$	—		$	1,787
Accrued salaries		—			—			721			517		—			1,238
Other accrued expenses		69			197			458			839		—			1,563
Long-term debt due within one year		—			952			51			41		—			1,044

		72			1,149			2,362			2,049		—			5,632

Long-term debt		2,525			24,528			187			186		—			27,426
Intercompany balances		26,932			(9,497	)		(20,763	)		3,328		—			—
Professional liability risks		—			—			—			1,045		—			1,045
Income taxes and other liabilities		528			500			486			226		—			1,740

		30,057			16,680			(17,728	)		6,834		—			35,843

Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(7,384	)		(16,486	)		31,007			7,329		(21,850	)		(7,384	)
Noncontrolling interests		—			—			119			1,247		—			1,366

		(7,384	)		(16,486	)		31,126			8,576		(21,850	)		(6,018	)

	$	22,673		$	194		$	13,398		$	15,410	$	(21,850	)	$	29,825

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 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	$	—		$	—		$	112		$	302	$	—		$	414
Accounts receivable, net		—			—			2,565			2,643		—			5,208
Inventories		—			—			692			487		—			1,179
Deferred income taxes		489			—			—			—		—			489
Other		—			—			301			446		—			747

		489			—			3,670			3,878		—			8,037

Property and equipment, net		—			—			7,504			6,115		—			13,619
Investments of insurance subsidiaries		—			—			—			448		—			448
Investments in and advances to affiliates		20,356			—			13			108		(20,356	)		121
Goodwill and other intangible assets		—			—			1,695			4,208		—			5,903
Deferred loan costs		30			207			—			—		—			237
Other		250			—			48			168		—			466

	$	21,125		$	207		$	12,930		$	14,925	$	(20,356	)	$	28,831

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	1		$	—		$	1,169		$	633	$	—		$	1,803
Accrued salaries		—			—			694			499		—			1,193
Other accrued expenses		272			353			464			824		—			1,913
Long-term debt due within one year		—			702			45			39		—			786

		273			1,055			2,372			1,995		—			5,695

Long-term debt		2,525			24,701			181			183		—			27,590
Intercompany balances		26,107			(10,513	)		(19,428	)		3,834		—			—
Professional liability risks		—			—			—			949		—			949
Income taxes and other liabilities		490			296			521			218		—			1,525

		29,395			15,539			(16,354	)		7,179		—			35,759

Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(8,270	)		(15,332	)		29,185			6,503		(20,356	)		(8,270	)
Noncontrolling interests		—			—			99			1,243		—			1,342

		(8,270	)		(15,332	)		29,284			7,746		(20,356	)		(6,928	)

	$	21,125		$	207		$	12,930		$	14,925	$	(20,356	)	$	28,831

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014

(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)	$	1,399		$	(1,204	)	$	1,880		$	1,116		$	(1,494	)	$	1,697
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		18			(151	)		(1,660	)		(1,152	)		—			(2,945	)
Provision for doubtful accounts		—			—			1,388			949			—			2,337
Depreciation and amortization		—			—			667			694			—			1,361
Income taxes		(61	)		—			—			—			—			(61	)
Gains on sales of facilities		—			—			(16	)		(4	)		—			(20	)
Losses on retirement of debt		—			226			—			—			—			226
Legal claim costs		—			78			—			—			—			78
Amortization of deferred loan costs		2			31			—			—			—			33
Share-based compensation		118			—			—			—			—			118
Equity in earnings of affiliates		(1,494	)		—			—			—			1,494			—
Other		—			3			—			(6	)		—			(3	)

Net cash (used in) provided by operating activities		(18	)		(1,017	)		2,259			1,597			—			2,821

Cash flows from investing activities:
Purchase of property and equipment		—			—			(893	)		(589	)		—			(1,482	)
Acquisition of hospitals and health care entities		—			—			(7	)		(90	)		—			(97	)
Disposition of hospitals and health care entities		—			—			31			7			—			38
Change in investments		—			—			22			—			—			22
Other		—			—			—			7			—			7

Net cash used in investing activities		—			—			(847	)		(665	)		—			(1,512	)

Cash flows from financing activities:
Issuance of long-term debt		—			3,502			—			—			—			3,502
Net change in revolving credit facilities		—			(160	)		—			—			—			(160	)
Repayment of long-term debt		—			(3,462	)		(35	)		(28	)		—			(3,525	)
Distributions to noncontrolling interests		—			—			(45	)		(280	)		—			(325	)
Payment of debt issuance costs		—			(49	)		—			—			—			(49	)
Repurchase of common stock		(750	)		—			—			—			—			(750	)
Distributions to stockholders		(7	)		—			—			—			—			(7	)
Changes in intercompany balances with affiliates, net		654			1,186			(1,331	)		(509	)		—			—
Income tax benefits		119			—			—			—			—			119
Other		2			—			—			(15	)		—			(13	)

Net cash provided by (used in) financing activities		18			1,017			(1,411	)		(832	)		—			(1,208	)

Change in cash and cash equivalents		—			—			1			100			—			101
Cash and cash equivalents at beginning of period		—			—			112			302			—			414

Cash and cash equivalents at end of period	$	—		$	—		$	113		$	402		$	—		$	515

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
Losses 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