Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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:


	2016			2015			2014
Federal statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		2.1			1.6			2.3
Change in liability for uncertain tax positions		(1.0	)		0.2			0.5
Tax benefit from settlements of employee equity awards		(3.6	)		—			—
Other items, net		(0.2	)		0.4			(0.6	)

Effective income tax rate on income applicable to HCA Holdings, Inc.		32.3			37.2			37.2
Income attributable to noncontrolling interests from consolidated partnerships		(3.6	)		(5.3	)		(5.4	)

Effective income tax rate on income before income taxes		28.7	%		31.9	%		31.8	%

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


	2016				2015
	Assets		Liabilities		Assets		Liabilities
Depreciation and fixed asset basis differences	$	—	$	235	$	—	$	222
Allowances for professional liability and other risks		495		—		443		—
Accounts receivable		351		—		363		—
Compensation		359		—		334		—
Other		794		918		845		820

	$	1,999	$	1,153	$	1,985	$	1,042

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


	2016			2015
Balance at January 1	$	487		$	503
Additions based on tax positions related to the current year		11			13
Additions for tax positions of prior years		8			22
Reductions for tax positions of prior years		(18	)		(45	)
Settlements		(101	)		—
Lapse of applicable statutes of limitations		(10	)		(6	)

Balance at December 31	$	377		$	487