Supplemental Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2015

Schedule of Condensed Consolidating Comprehensive Income Statement

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED SEPTEMBER 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	$	—		$	—		$	5,721		$	5,293		$	—		$	11,014
Provision for doubtful accounts		—			—			689			469			—			1,158

Revenues		—			—			5,032			4,824			—			9,856

Salaries and benefits		—			—			2,357			2,262			—			4,619
Supplies		—			—			853			791			—			1,644
Other operating expenses		7			—			865			924			—			1,796
Electronic health record incentive income		—			—			(6	)		(3	)		—			(9	)
Equity in earnings of affiliates		(464	)		—			(1	)		(8	)		464			(9	)
Depreciation and amortization		—			—			230			252			—			482
Interest expense		16			608			(156	)		(57	)		—			411
Losses (gains) on sales of facilities		—			—			(1	)		3			—			2
Legal claim costs		—			77			—			—			—			77
Management fees		—			—			(178	)		178			—			—

		(441	)		685			3,963			4,342			464			9,013

Income (loss) before income taxes		441			(685	)		1,069			482			(464	)		843
Provision (benefit) for income taxes		(8	)		(258	)		394			142			—			270

Net income (loss)		449			(427	)		675			340			(464	)		573
Net income attributable to noncontrolling interests		—			—			21			103			—			124

Net income (loss) attributable to HCA Holdings, Inc.	$	449		$	(427	)	$	654		$	237		$	(464	)	$	449

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	430		$	(418	)	$	657		$	206		$	(445	)	$	430

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		(549	)		—			(3	)		(11	)		549			(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			—			—

		(499	)		536			3,700			4,005			549			8,291

Income (loss) before income taxes		499			(536	)		976			539			(549	)		929
Provision (benefit) for income taxes		(19	)		(205	)		365			177			—			318

Net income (loss)		518			(331	)		611			362			(549	)		611
Net income attributable to noncontrolling interests		—			—			18			75			—			93

Net income (loss) attributable to HCA Holdings, Inc.	$	518		$	(331	)	$	593		$	287		$	(549	)	$	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 NINE MONTHS ENDED SEPTEMBER 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	$	—		$	—		$	16,519		$	15,749		$	—		$	32,268
Provision for doubtful accounts		—			—			1,535			1,304			—			2,839

Revenues		—			—			14,984			14,445			—			29,429

Salaries and benefits		—			—			6,824			6,685			—			13,509
Supplies		—			—			2,576			2,376			—			4,952
Other operating expenses		9			—			2,523			2,736			—			5,268
Electronic health record incentive income		—			—			(31	)		(15	)		—			(46	)
Equity in earnings of affiliates		(1,690	)		—			(4	)		(34	)		1,690			(38	)
Depreciation and amortization		—			—			683			741			—			1,424
Interest expense		100			1,807			(498	)		(154	)		—			1,255
Losses (gains) on sales of facilities		—			—			(5	)		3			—			(2	)
Losses on retirement of debt		122			3			—			—			—			125
Legal claim costs		—			77			—			—			—			77
Management fees		—			—			(534	)		534			—			—

		(1,459	)		1,887			11,534			12,872			1,690			26,524

Income (loss) before income taxes		1,459			(1,887	)		3,450			1,573			(1,690	)		2,905
Provision (benefit) for income taxes		(88	)		(716	)		1,284			467			—			947

Net income (loss)		1,547			(1,171	)		2,166			1,106			(1,690	)		1,958
Net income attributable to noncontrolling interests		—			—			68			343			—			411

Net income (loss) attributable to HCA Holdings, Inc.	$	1,547		$	(1,171	)	$	2,098		$	763		$	(1,690	)	$	1,547

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	1,561		$	(1,142	)	$	2,109		$	737		$	(1,704	)	$	1,561

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		(1,443	)		—			(5	)		(27	)		1,443			(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			—			—

		(1,291	)		1,933			10,876			11,808			1,443			24,769

Income (loss) before income taxes		1,291			(1,933	)		2,978			1,620			(1,443	)		2,513
Provision (benefit) for income taxes		(57	)		(729	)		1,098			504			—			816

Net income (loss)		1,348			(1,204	)		1,880			1,116			(1,443	)		1,697
Net income attributable to noncontrolling interests		—			—			65			284			—			349

Net income (loss) attributable to HCA Holdings, Inc.	$	1,348		$	(1,204	)	$	1,815		$	832		$	(1,443	)	$	1,348

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

Schedule of Condensed Consolidating Balance Sheet

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

SEPTEMBER 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	$	—		$	—		$	109		$	479	$	—		$	588
Accounts receivable, net		—			—			2,874			2,953		—			5,827
Inventories		—			—			821			558		—			1,379
Deferred income taxes		412			—			—			—		—			412
Other		13			—			428			574		—			1,015

		425			—			4,232			4,564		—			9,221

Property and equipment, net		—			—			8,078			6,626		—			14,704
Investments of insurance subsidiaries		—			—			—			409		—			409
Investments in and advances to affiliates		23,674			—			17			169		(23,674	)		186
Goodwill and other intangible assets		—			—			1,703			4,837		—			6,540
Other		625			—			24			187		—			836

	$	24,724		$	—		$	14,054		$	16,792	$	(23,674	)	$	31,896

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	9		$	—		$	1,165		$	703	$	—		$	1,877
Accrued salaries		—			—			770			588		—			1,358
Other accrued expenses		14			245			540			902		—			1,701
Long-term debt due within one year		—			1,264			61			52		—			1,377

		23			1,509			2,536			2,245		—			6,313

Long-term debt, net		982			26,874			222			297		—			28,375
Intercompany balances		30,472			(10,757	)		(22,877	)		3,162		—			—
Professional liability risks		—			—			—			1,117		—			1,117
Income taxes and other liabilities		541			534			428			400		—			1,903

		32,018			18,160			(19,691	)		7,221		—			37,708
Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(7,294	)		(18,160	)		33,626			8,208		(23,674	)		(7,294	)
Noncontrolling interests		—			—			119			1,363		—			1,482

		(7,294	)		(18,160	)		33,745			9,571		(23,674	)		(5,812	)

	$	24,724		$	—		$	14,054		$	16,792	$	(23,674	)	$	31,896

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 NINE MONTHS ENDED SEPTEMBER 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)	$	1,547		$	(1,171	)	$	2,166		$	1,106		$	(1,690	)	$	1,958
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		(22	)		(56	)		(1,959	)		(1,296	)		—			(3,333	)
Provision for doubtful accounts		—			—			1,535			1,304			—			2,839
Depreciation and amortization		—			—			683			741			—			1,424
Income taxes		(148	)		—			—			—			—			(148	)
Losses (gains) on sales of facilities		—			—			(5	)		3			—			(2	)
Losses on retirement of debt		122			3			—			—			—			125
Legal claim costs		—			77			—			—			—			77
Amortization of debt issuance costs		3			24			—			—			—			27
Share-based compensation		171			—			—			—			—			171
Equity in earnings of affiliates		(1,690	)		—			—			—			1,690			—
Other		49			3			—			(14	)		—			38

Net cash provided by (used in) operating activities		32			(1,120	)		2,420			1,844			—			3,176

Cash flows from investing activities:
Purchase of property and equipment		—			—			(764	)		(807	)		—			(1,571	)
Acquisition of hospitals and health care entities		—			—			(51	)		(133	)		—			(184	)
Disposition of hospitals and health care entities		—			—			19			8			—			27
Change in investments		—			—			2			92			—			94
Other		—			—			(6	)		9			—			3

Net cash used in investing activities		—			—			(800	)		(831	)		—			(1,631	)

Cash flows from financing activities:
Issuance of long-term debt		—			4,048			—			—			—			4,048
Net change in revolving credit facilities		—			(270	)		—			—			—			(270	)
Repayment of long-term debt		(1,632	)		(2,001	)		(45	)		(24	)		—			(3,702	)
Distributions to noncontrolling interests		—			—			(70	)		(297	)		—			(367	)
Payment of debt issuance costs		—			(34	)		—			—			—			(34	)
Repurchases of common stock		(1,386	)		—			—			—			—			(1,386	)
Changes in intercompany balances with affiliates, net		2,784			(623)			(1,483	)		(678	)		—			—
Income tax benefits		231			—			—			—			—			231
Other		(29	)		—			—			(14	)		—			(43	)

Net cash (used in) provided by financing activities		(32	)		1,120			(1,598	)		(1,013	)		—			(1,523	)

Change in cash and cash equivalents		—			—			22			—			—			22
Cash and cash equivalents at beginning of period		—			—			87			479			—			566

Cash and cash equivalents at end of period	$	—		$	—		$	109		$	479		$	—		$	588

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)	$	1,348		$	(1,204	)	$	1,880		$	1,116		$	(1,443	)	$	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		(1,443	)		—			—			—			1,443			—
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	)
Changes in intercompany balances with affiliates, net		654			1,186			(1,331	)		(509	)		—			—
Income tax benefits		119			—			—			—			—			119
Other		(5	)		—			—			(15	)		—			(20	)

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