Supplemental Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Condensed Consolidating Comprehensive Income Statement

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED MARCH 31, 2018

(Dollars in millions)


	HCA Healthcare, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues	$	—		$	—		$	6,776		$	4,647		$	—		$	11,423

Salaries and benefits		—			—			3,069			2,220			—			5,289
Supplies		—			—			1,141			774			—			1,915
Other operating expenses		1			—			1,128			981			—			2,110
Equity in earnings of affiliates		(1,090	)		—			(2	)		(7	)		1,090			(9	)
Depreciation and amortization		—			—			323			230			—			553
Interest expense		16			837			(367	)		(55	)		—			431
Gains on sales of facilities		—			—			(395	)		(10	)		—			(405	)
Management fees		—			—			(158	)		158			—			—

		(1,073	)		837			4,739			4,291			1,090			9,884

Income (loss) before income taxes		1,073			(837	)		2,037			356			(1,090	)		1,539
Provision (benefit) for income taxes		(71	)		(195	)		467			56			—			257

Net income (loss)		1,144			(642	)		1,570			300			(1,090	)		1,282
Net income attributable to noncontrolling interests		—			—			28			110			—			138

Net income (loss) attributable to HCA Healthcare, Inc.	$	1,144		$	(642	)	$	1,542		$	190		$	(1,090	)	$	1,144

Comprehensive income (loss) attributable to HCA Healthcare, Inc.	$	1,225		$	(615	)	$	1,546		$	240		$	(1,171	)	$	1,225

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED MARCH 31, 2017

(Dollars in millions)


	HCA Healthcare, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors (as adjusted)			Subsidiary Non- Guarantors (as adjusted)			Eliminations			Condensed Consolidated
Revenues	$	—		$	—		$	6,336		$	4,287		$	—		$	10,623

Salaries and benefits		—			—			2,904			1,997			—			4,901
Supplies		—			—			1,075			722			—			1,797
Other operating expenses		1			—			1,050			879			—			1,930
Equity in earnings of affiliates		(608	)		—			(2	)		(8	)		608			(10	)
Depreciation and amortization		—			—			310			211			—			521
Interest expense		16			733			(290	)		(40	)		—			419
Losses (gains) on sales of facilities		—			—			1			(2	)		—			(1	)
Management fees		—			—			(160	)		160			—			—

		(591	)		733			4,888			3,919			608			9,557

Income (loss) before income taxes		591			(733	)		1,448			368			(608	)		1,066
Provision (benefit) for income taxes		(68	)		(270	)		526			101			—			289

Net income (loss)		659			(463	)		922			267			(608	)		777
Net income attributable to noncontrolling interests		—			—			23			95			—			118

Net income (loss) attributable to HCA Healthcare, Inc.	$	659		$	(463	)	$	899		$	172		$	(608	)	$	659

Comprehensive income (loss) attributable to HCA Healthcare, Inc.	$	677		$	(456	)	$	902		$	180		$	(626	)	$	677

Schedule of Condensed Consolidating Balance Sheet

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 31, 2018

(Dollars in millions)


	HCA Healthcare, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	304		$	782		$	—		$	1,086
Accounts receivable		—			—			3,747			2,585			—			6,332
Inventories		—			—			1,143			534			—			1,677
Other		—			—			728			568			—			1,296

		—			—			5,922			4,469			—			10,391

Property and equipment, net		—			—			11,632			6,492			—			18,124

Investments of insurance subsidiaries		—			—			—			417			—			417
Investments in and advances to affiliates		30,752			—			31			200			(30,752	)		231
Goodwill and other intangible assets		—			—			5,438			2,033			—			7,471
Other		437			85			30			113			—			665

	$	31,189		$	85		$	23,053		$	13,724		$	(30,752	)	$	37,299

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	—		$	—		$	1,776		$	762		$	—		$	2,538
Accrued salaries		—			—			779			459			—			1,238
Other accrued expenses		190			281			545			989			—			2,005
Long-term debt due within one year		—			1,597			63			37			—			1,697

		190			1,878			3,163			2,247			—			7,478

Long-term debt, net		995			30,125			293			181			—			31,594
Intercompany balances		35,687			(9,253	)		(25,158	)		(1,276	)		—			—
Professional liability risks		—			—			—			1,244			—			1,244
Income taxes and other liabilities		561			—			379			477			—			1,417

		37,433			22,750			(21,323)			2,873			—			41,733

Stockholders’ (deficit) equity attributable to HCA Healthcare, Inc.		(6,244	)		(22,665	)		44,301			9,116			(30,752	)		(6,244	)
Noncontrolling interests		—			—			75			1,735			—			1,810

		(6,244	)		(22,665	)		44,376			10,851			(30,752	)		(4,434	)

	$	31,189		$	85		$	23,053		$	13,724		$	(30,752	)	$	37,299

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2017

(Dollars in millions)


	HCA Healthcare, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1		$	—		$	112		$	619		$	—		$	732
Accounts receivable		—			—			3,693			2,808			—			6,501
Inventories		—			—			1,030			543			—			1,573
Other		—			—			663			508			—			1,171

		1			—			5,498			4,478			—			9,977

Property and equipment, net		—			—			11,110			6,785			—			17,895

Investments of insurance subsidiaries		—			—			—			418			—			418
Investments in and advances to affiliates		29,581			—			22			177			(29,581	)		199
Goodwill and other intangible assets		—			—			4,893			2,501			—			7,394
Other		510			50			47			103			—			710

	$	30,092		$	50		$	21,570		$	14,462		$	(29,581	)	$	36,593

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	—		$	—		$	1,793		$	813		$	—		$	2,606
Accrued salaries		—			—			862			507			—			1,369
Other accrued expenses		29			378			536			1,040			—			1,983
Long-term debt due within one year		—			97			64			39			—			200

		29			475			3,255			2,399			—			6,158

Long-term debt, net		995			31,367			307			189			—			32,858
Intercompany balances		35,322			(9,742	)		(25,228	)		(352	)		—			—
Professional liability risks		—			—			—			1,198			—			1,198
Income taxes and other liabilities		552			—			357			465			—			1,374

		36,898			22,100			(21,309	)		3,899			—			41,588
Stockholders’ (deficit) equity attributable to HCA Healthcare, Inc.		(6,806	)		(22,050	)		42,755			8,876			(29,581	)		(6,806	)
Noncontrolling interests		—			—			124			1,687			—			1,811

		(6,806	)		(22,050	)		42,879			10,563			(29,581	)		(4,995	)

	$	30,092		$	50		$	21,570		$	14,462		$	(29,581	)	$	36,593

Schedule of Condensed Consolidating Statement of Cash Flows

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE QUARTER ENDED MARCH 31, 2018

(Dollars in millions)


	HCA Healthcare, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Cash flows from operating activities:
Net income (loss)	$	1,144		$	(642	)	$	1,570		$	300		$	(1,090	)	$	1,282
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		(15	)		(99	)		(347	)		(7	)		—			(468	)
Depreciation and amortization		—			—			323			230			—			553
Income taxes		246			—			—			—			—			246
Gains on sales of facilities		—			—			(395	)		(10	)		—			(405	)
Amortization of debt issuance costs		—			8			—			—			—			8
Share-based compensation		—			—			60			—			—			60
Equity in earnings of affiliates		(1,090	)		—			—			—			1,090			—
Other		21			—			—			3			—			24

Net cash provided by (used in) operating activities		306			(733	)		1,211			516			—			1,300

Cash flows from investing activities:
Purchase of property and equipment		—			—			(413	)		(281	)		—			(694	)
Acquisition of hospitals and health care entities		—			—			(373	)		(6	)		—			(379	)
Disposition of hospitals and health care entities		—			—			767			—			—			767
Change in investments		—			—			13			(2	)		—			11
Other		—			—			(48	)		8			—			(40	)

Net cash used in investing activities		—			—			(54	)		(281	)		—			(335	)

Cash flows from financing activities:
Net change in revolving credit facilities		—			270			—			—			—			270
Repayment of long-term debt		—			(18	)		(22	)		(10	)		—			(50	)
Distributions to noncontrolling interests		—			—			(24	)		(68	)		—			(92	)
Payment of debt issuance costs		—			(2)			—			—			—			(2	)
Payment of cash dividends		(123	)		—			—			—			—			(123	)
Repurchases of common stock		(423	)		—			—			—			—			(423	)
Changes in intercompany balances with affiliates, net		434			483			(919	)		2			—			—
Other		(195	)		—			—			4			—			(191	)

Net cash (used in) provided by financing activities		(307	)		733			(965	)		(72	)		—			(611	)

Change in cash and cash equivalents		(1	)		—			192			163			—			354
Cash and cash equivalents at beginning of period		1			—			112			619			—			732

Cash and cash equivalents at end of period	$	—		$	—		$	304		$	782		$	—		$	1,086

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE QUARTER ENDED MARCH 31, 2017

(Dollars in millions)


	HCA Healthcare, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors (as adjusted)			Subsidiary Non- Guarantors (as adjusted)			Eliminations			Condensed Consolidated
Cash flows from operating activities:
Net income (loss)	$	659		$	(463	)	$	922		$	267		$	(608	)	$	777
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		(15	)		(295	)		(199	)		89			—			(420	)
Depreciation and amortization		—			—			310			211			—			521
Income taxes		292			—			—			—			—			292
Losses (gains) on sales of facilities		—			—			1			(2	)		—			(1	)
Amortization of debt issuance costs		—			8			—			—			—			8
Share-based compensation		—			—			73			—			—			73
Equity in earnings of affiliates		(608	)		—			—			—			608			—
Other		19			—			1			10			—			30

Net cash provided by (used in) operating activities		347			(750	)		1,108			575			—			1,280

Cash flows from investing activities:
Purchase of property and equipment		—			—			(312	)		(259	)		—			(571	)
Acquisition of hospitals and health care entities		—			—			(5	)		(85	)		—			(90	)
Disposition of hospitals and health care entities		—			—			4			—			—			4
Change in investments		—			—			2			(21	)		—			(19	)
Other		—			—			1			6			—			7

Net cash used in investing activities		—			—			(310	)		(359	)		—			(669	)

Cash flows from financing activities:
Net change in revolving credit facilities		—			160			—			—			—			160
Repayment of long-term debt		—			(18	)		(13	)		(12	)		—			(43	)
Distributions to noncontrolling interests		—			—			(57	)		(88	)		—			(145	)
Payment of debt issuance costs		—			(2	)		—			—			—			(2	)
Repurchases of common stock		(424	)		—			—			—			—			(424	)
Changes in intercompany balances with affiliates, net		134			610			(656	)		(88	)		—			—
Other		(57	)		—			—			7			—			(50	)

Net cash (used in) provided by financing activities		(347	)		750			(726	)		(181	)		—			(504	)

Change in cash and cash equivalents		—			—			72			35			—			107
Cash and cash equivalents at beginning of period		—			—			113			533			—			646

Cash and cash equivalents at end of period	$	—		$	—		$	185		$	568		$	—		$	753

Summary of Restatement Adjustments to Financial Statements

The application of these adjustments to the consolidating information for the quarter ended March 31, 2017 is summarized as follows (dollars in millions):


	As Previously Reported			Adjustment			As Adjusted
Quarter ended March 31, 2017
Net income (loss) attributable to HCA Healthcare, Inc.:
HCA Healthcare, Inc. Issuer	$	659		$	—		$	659
HCA Inc. Issuer		(463	)		—			(463	)
Subsidiary Guarantors		818			81			899
Subsidiary Non-Guarantors		253			(81	)		172
Eliminations		(608	)		—			(608	)

Condensed Consolidated	$	659		$	—		$	659


	As Previously Reported			Adjustment			As Adjusted
Quarter ended March 31, 2017
Net cash provided (used in) operating activities:
HCA Healthcare, Inc. Issuer	$	347		$	—		$	347
HCA Inc. Issuer		(750	)		—			(750	)
Subsidiary Guarantors		983			125			1,108
Subsidiary Non-Guarantors		700			(125	)		575
Eliminations		—			—			—

Condensed Consolidated	$	1,280		$	—		$	1,280