Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Condensed Consolidating Comprehensive Income Statement

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED JUNE 30, 2015

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	5,597		$	5,335		$	—		$	10,932
Provision for doubtful accounts		—			—			550			485			—			1,035

Revenues		—			—			5,047			4,850			—			9,897

Salaries and benefits		—			—			2,250			2,242			—			4,492
Supplies		—			—			869			801			—			1,670
Other operating expenses		(4	)		—			838			921			—			1,755
Electronic health record incentive income		—			—			(12	)		(6	)		—			(18	)
Equity in earnings of affiliates		(603	)		—			(2	)		(8	)		603			(10	)
Depreciation and amortization		—			—			223			246			—			469
Interest expense		38			604			(168	)		(49	)		—			425
Losses on sales of facilities		—			—			5			—			—			5
Losses on retirement of debt		122			3			—			—			—			125
Management fees		—			—			(178	)		178			—			—

		(447	)		607			3,825			4,325			603			8,913

Income (loss) before income taxes		447			(607	)		1,222			525			(603	)		984
Provision (benefit) for income taxes		(60	)		(234	)		462			151			—			319

Net income (loss)		507			(373	)		760			374			(603	)		665
Net income attributable to noncontrolling interests		—			—			24			134			—			158

Net income (loss) attributable to HCA Holdings, Inc.	$	507		$	(373	)	$	736		$	240		$	(603	)	$	507

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	561		$	(358	)	$	740		$	275		$	(657	)	$	561

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED JUNE 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	$	—		$	—		$	5,079		$	4,879		$	—		$	9,958
Provision for doubtful accounts		—			—			394			334			—			728

Revenues		—			—			4,685			4,545			—			9,230

Salaries and benefits		—			—			2,118			1,980			—			4,098
Supplies		—			—			805			727			—			1,532
Other operating expenses		5			—			789			850			—			1,644
Electronic health record incentive income		—			—			(24	)		(11	)		—			(35	)
Equity in earnings of affiliates		(516	)		—			(1	)		(8	)		516			(9	)
Depreciation and amortization		—			—			224			230			—			454
Interest expense		46			536			(112	)		(43	)		—			427
Gains on sales of facilities		—			—			(11	)		—			—			(11	)
Losses on retirement of debt		—			226			—			—			—			226
Management fees		—			—			(176	)		176			—			—

		(465	)		762			3,612			3,901			516			8,326

Income (loss) before income taxes		465			(762	)		1,073			644			(516	)		904
Provision (benefit) for income taxes		(18	)		(277	)		381			186			—			272

Net income (loss)		483			(485	)		692			458			(516	)		632
Net income attributable to noncontrolling interests		—			—			18			131			—			149

Net income (loss) attributable to HCA Holdings, Inc.	$	483		$	(485	)	$	674		$	327		$	(516	)	$	483

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	516		$	(477	)	$	677		$	349		$	(549	)	$	516

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	10,798		$	10,456		$	—		$	21,254
Provision for doubtful accounts		—			—			846			835			—			1,681

Revenues		—			—			9,952			9,621			—			19,573

Salaries and benefits		—			—			4,467			4,423			—			8,890
Supplies		—			—			1,723			1,585			—			3,308
Other operating expenses		2			—			1,658			1,812			—			3,472
Electronic health record incentive income		—			—			(25	)		(12	)		—			(37	)
Equity in earnings of affiliates		(1,226	)		—			(3	)		(26	)		1,226			(29	)
Depreciation and amortization		—			—			453			489			—			942
Interest expense		84			1,199			(342	)		(97	)		—			844
Gains on sales of facilities		—			—			(4	)		—			—			(4	)
Losses on retirement of debt		122			3			—			—			—			125
Management fees		—			—			(356	)		356			—			—

		(1,018	)		1,202			7,571			8,530			1,226			17,511

Income (loss) before income taxes		1,018			(1,202	)		2,381			1,091			(1,226	)		2,062
Provision (benefit) for income taxes		(80	)		(458	)		890			325			—			677

Net income (loss)		1,098			(744	)		1,491			766			(1,226	)		1,385
Net income attributable to noncontrolling interests		—			—			47			240			—			287

Net income (loss) attributable to HCA Holdings, Inc.	$	1,098		$	(744	)	$	1,444		$	526		$	(1,226	)	$	1,098

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	1,131		$	(724	)	$	1,452		$	531		$	(1,259	)	$	1,131

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE SIX MONTHS ENDED JUNE 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	$	—		$	—		$	10,109		$	9,532		$	—		$	19,641
Provision for doubtful accounts		—			—			931			648			—			1,579

Revenues		—			—			9,178			8,884			—			18,062

Salaries and benefits		—			—			4,217			3,931			—			8,148
Supplies		—			—			1,619			1,445			—			3,064
Other operating expenses		10			—			1,562			1,717			—			3,289
Electronic health record incentive income		—			—			(46	)		(19	)		—			(65	)
Equity in earnings of affiliates		(894	)		—			(2	)		(16	)		894			(18	)
Depreciation and amortization		—			—			442			459			—			901
Interest expense		92			1,093			(234	)		(64	)		—			887
Gains on sales of facilities		—			—			(32	)		—			—			(32	)
Losses on retirement of debt		—			226			—			—			—			226
Legal claim costs		—			78			—			—			—			78
Management fees		—			—			(350	)		350			—			—

		(792	)		1,397			7,176			7,803			894			16,478

Income (loss) before income taxes		792			(1,397	)		2,002			1,081			(894	)		1,584
Provision (benefit) for income taxes		(38	)		(524	)		733			327			—			498

Net income (loss)		830			(873	)		1,269			754			(894	)		1,086
Net income attributable to noncontrolling interests		—			—			47			209			—			256

Net income (loss) attributable to HCA Holdings, Inc.	$	830		$	(873	)	$	1,222		$	545		$	(894	)	$	830

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	888		$	(851	)	$	1,227		$	576		$	(952	)	$	888

Schedule of Condensed Consolidating Balance Sheet

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2015

(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	$	—		$	—		$	130		$	543	$	—		$	673
Accounts receivable, net		—			—			2,907			2,897		—			5,804
Inventories		—			—			807			541		—			1,348
Deferred income taxes		376			—			—			—		—			376
Other		57			—			421			614		—			1,092

		433			—			4,265			4,595		—			9,293

Property and equipment, net		—			—			7,968			6,592		—			14,560
Investments of insurance subsidiaries		—			—			—			404		—			404
Investments in and advances to affiliates		23,262			—			16			166		(23,262	)		182
Goodwill and other intangible assets		—			—			1,704			4,780		—			6,484
Other		571			—			21			195		—			787

	$	24,266		$	—		$	13,974		$	16,732	$	(23,262	)	$	31,710

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	7		$	—		$	1,149		$	728	$	—		$	1,884
Accrued salaries		—			—			721			561		—			1,282
Other accrued expenses		29			359			507			875		—			1,770
Long-term debt due within one year		—			1,264			59			51		—			1,374

		36			1,623			2,436			2,215		—			6,310

Long-term debt, net		982			26,865			225			291		—			28,363
Intercompany balances		30,108			(11,233	)		(22,244	)		3,369		—			—
Professional liability risks		—			—			—			1,132		—			1,132
Income taxes and other liabilities		546			467			459			388		—			1,860

		31,672			17,722			(19,124	)		7,395		—			37,665
Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(7,406	)		(17,722	)		32,976			8,008		(23,262	)		(7,406	)
Noncontrolling interests		—			—			122			1,329		—			1,451

		(7,406	)		(17,722	)		33,098			9,337		(23,262	)		(5,955	)

	$	24,266		$	—		$	13,974		$	16,732	$	(23,262	)	$	31,710

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 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	$	—		$	—		$	87		$	479	$	—		$	566
Accounts receivable, net		—			—			2,812			2,882		—			5,694
Inventories		—			—			756			523		—			1,279
Deferred income taxes		366			—			—			—		—			366
Other		118			—			376			531		—			1,025

		484			—			4,031			4,415		—			8,930

Property and equipment, net		—			—			7,871			6,484		—			14,355
Investments of insurance subsidiaries		—			—			—			494		—			494
Investments in and advances to affiliates		21,970			—			16			149		(21,970	)		165
Goodwill and other intangible assets		—			—			1,705			4,711		—			6,416
Other		435			—			27			158		—			620

	$	22,889		$	—		$	13,650		$	16,411	$	(21,970	)	$	30,980

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	1		$	—		$	1,272		$	762	$	—		$	2,035
Accrued salaries		—			—			783			587		—			1,370
Other accrued expenses		45			317			517			858		—			1,737
Long-term debt due within one year		—			231			56			51		—			338

		46			548			2,628			2,258		—			5,480

Long-term debt, net		2,499			26,124			185			280		—			29,088
Intercompany balances		27,685			(10,141	)		(21,405	)		3,861		—			—
Professional liability risks		—			—			—			1,078		—			1,078
Income taxes and other liabilities		553			487			605			187		—			1,832

		30,783			17,018			(17,987	)		7,664		—			37,478

Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(7,894	)		(17,018	)		31,516			7,472		(21,970	)		(7,894	)
Noncontrolling interests		—			—			121			1,275		—			1,396

		(7,894	)		(17,018	)		31,637			8,747		(21,970	)		(6,498	)

	$	22,889		$	—		$	13,650		$	16,411	$	(21,970	)	$	30,980

Schedule of Condensed Consolidating Statement of Cash Flows

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(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)	$	1,098		$	(744	)	$	1,491		$	766		$	(1,226	)	$	1,385
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		21			22			(1,360	)		(779	)		—			(2,096	)
Provision for doubtful accounts		—			—			846			835			—			1,681
Depreciation and amortization		—			—			453			489			—			942
Income taxes		(101	)		—			—			—			—			(101	)
Gains on sales of facilities		—			—			(4	)		—			—			(4	)
Losses on retirement of debt		122			3			—			—			—			125
Amortization of debt issuance costs		2			17			—			—			—			19
Share-based compensation		103			—			—			—			—			103
Equity in earnings of affiliates		(1,226	)		—			—			—			1,226			—
Other		34			—			(2	)		(11	)		—			21

Net cash provided by (used in) operating activities		53			(702	)		1,424			1,300			—			2,075

Cash flows from investing activities:
Purchase of property and equipment		—			—			(470	)		(534	)		—			(1,004	)
Acquisition of hospitals and health care entities		—			—			(16	)		(79	)		—			(95	)
Disposition of hospitals and health care entities		—			—			14			8			—			22
Change in investments		—			—			6			61			—			67
Other		—			—			(6	)		7			—			1

Net cash used in investing activities		—			—			(472	)		(537	)		—			(1,009	)

Cash flows from financing activities:
Issuance of long-term debt		—			4,048			—			—			—			4,048
Net change in revolving credit facilities		—			(300	)		—			—			—			(300	)
Repayment of long-term debt		(1,632	)		(1,971	)		(24	)		(17	)		—			(3,644	)
Distributions to noncontrolling interests		—			—			(46	)		(191	)		—			(237	)
Payment of debt issuance costs		—			(33	)		—			—			—			(33	)
Repurchases of common stock		(940	)		—			—			—			—			(940	)
Changes in intercompany balances with affiliates, net		2,354			(1,042	)		(839	)		(473	)		—			—
Income tax benefits		197			—			—			—			—			197
Other		(32	)		—			—			(18	)		—			(50	)

Net cash (used in) provided by financing activities		(53	)		702			(909	)		(699	)		—			(959	)

Change in cash and cash equivalents		—			—			43			64			—			107
Cash and cash equivalents at beginning of period		—			—			87			479			—			566

Cash and cash equivalents at end of period	$	—		$	—		$	130		$	543		$	—		$	673

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 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)	$	830		$	(873	)	$	1,269		$	754		$	(894	)	$	1,086
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		13			(32	)		(1,258	)		(874	)		—			(2,151	)
Provision for doubtful accounts		—			—			931			648			—			1,579
Depreciation and amortization		—			—			442			459			—			901
Income taxes		(94	)		—			—			—			—			(94	)
Gains on sales of facilities		—			—			(32	)		—			—			(32	)
Losses on retirement of debt		—			226			—			—			—			226
Legal claim costs		—			78			—			—			—			78
Amortization of deferred loan costs		2			21			—			—			—			23
Share-based compensation		77			—			—			—			—			77
Equity in earnings of affiliates		(894	)		—			—			—			894			—
Other		—			1			—			(1	)		—			—

Net cash (used in) provided by operating activities		(66	)		(579	)		1,352			986			—			1,693

Cash flows from investing activities:
Purchase of property and equipment		—			—			(583	)		(330	)		—			(913	)
Acquisition of hospitals and health care entities		—			—			(2	)		(25	)		—			(27	)
Disposition of hospitals and health care entities		—			—			25			7			—			32
Change in investments		—			—			26			17			—			43
Other		—			—			—			1			—			1

Net cash used in investing activities		—			—			(534	)		(330	)		—			(864	)

Cash flows from financing activities:
Issuance of long-term debt		—			3,502			—			—			—			3,502
Net change in revolving credit facilities		—			340			—			—			—			340
Repayment of long-term debt		—			(3,441	)		(25	)		(16	)		—			(3,482	)
Distributions to noncontrolling interests		—			—			(27	)		(170	)		—			(197	)
Payment of debt issuance costs		—			(49	)		—			—			—			(49	)
Repurchase of common stock		(750	)		—			—			—			—			(750	)
Changes in intercompany balances with affiliates, net		756			227			(663	)		(320	)		—			—
Income tax benefits		75			—			—			—			—			75
Other		(15	)		—			—			(9	)		—			(24	)

Net cash provided by (used in) financing activities		66			579			(715	)		(515	)		—			(585	)

Change in cash and cash equivalents		—			—			103			141			—			244
Cash and cash equivalents at beginning of period		—			—			112			302			—			414

Cash and cash equivalents at end of period	$	—		$	—		$	215		$	443		$	—		$	658