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Supplemental Condensed Consolidating Financial Information

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Condensed Consolidating Financial Information And Other Collateral-related Information

NOTE 13 — SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

HCA Healthcare, Inc. has $1.000 billion aggregate principal amount of 6.250% senior unsecured notes due 2021 outstanding. These notes are senior unsecured obligations and are not guaranteed by any of our subsidiaries.

HCA Inc., a direct wholly-owned subsidiary of HCA Healthcare, 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 Healthcare, Inc.). The senior secured notes and senior unsecured notes issued by HCA Inc. are fully and unconditionally guaranteed by HCA Healthcare, 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 ended March 31, 2019 and 2018, condensed consolidating balance sheets at March 31, 2019 and December 31, 2018 and condensed consolidating statements of cash flows for the quarters ended March 31, 2019 and 2018, segregating HCA Healthcare, Inc. issuer, HCA Inc. issuer, the subsidiary guarantors, the subsidiary non-guarantors and eliminations, follow:

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED MARCH 31, 2019

(Dollars in millions)

		HCA Healthcare, Inc. Issuer				HCA Inc. Issuer				Subsidiary Guarantors				Subsidiary Non- Guarantors				Eliminations				Condensed Consolidated
Revenues		$	—			$	—			$	7,224			$	5,293			$	—			$	12,517
Salaries and benefits			—				—				3,137				2,510				—				5,647
Supplies			—				—				1,177				864				—				2,041
Other operating expenses			2				—				1,146				1,151				—				2,299
Equity in earnings of affiliates			(1,026	)			—				(2	)			(9	)			1,026				(11	)
Depreciation and amortization			—				—				355				264				—				619
Interest expense (income)			16				995				(473	)			(77	)			—				461
Losses on sales of facilities			—				—				1				—				—				1
Management fees			—				—				(171	)			171				—				—
			(1,008	)			995				5,170				4,874				1,026				11,057
Income (loss) before income taxes			1,008				(995	)			2,054				419				(1,026	)			1,460
Provision (benefit) for income taxes			(31	)			(231	)			472				69				—				279
Net income (loss)			1,039				(764	)			1,582				350				(1,026	)			1,181
Net income attributable to noncontrolling interests			—				—				20				122				—				142
Net income (loss) attributable to HCA Healthcare, Inc.		$	1,039			$	(764	)		$	1,562			$	228			$	(1,026	)		$	1,039
Comprehensive income (loss) attributable to HCA Healthcare, Inc.		$	1,046			$	(782	)		$	1,564			$	251			$	(1,033	)		$	1,046

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 BALANCE SHEET

MARCH 31, 2019

(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		$	—			$	—			$	139			$	392			$	—			$	531
Accounts receivable			—				—				4,200				3,220				—				7,420
Inventories			—				—				1,149				629				—				1,778
Other			—				—				699				680				—				1,379
			—				—				6,187				4,921				—				11,108
Property and equipment, net			—				—				12,587				8,541				—				21,128
Investments of insurance subsidiaries			—				—				—				338				—				338
Investments in and advances to affiliates			34,199				—				29				217				(34,199	)			246
Goodwill and other intangible assets			—				—				5,725				2,434				—				8,159
Right-of-use operating lease assets			—				—				438				1,374				—				1,812
Other			404				40				32				112				—				588
		$	34,603			$	40			$	24,998			$	17,937			$	(34,199	)		$	43,379
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable		$	—			$	—			$	1,767			$	926			$	—			$	2,693
Accrued salaries			—				—				851				573				—				1,424
Other accrued expenses			300				302				736				1,280				—				2,618
Long-term debt due within one year			—				3,697				54				45				—				3,796
			300				3,999				3,408				2,824				—				10,531
Long-term debt, net			997				29,464				231				327				—				31,019
Intercompany balances			37,135				(7,851	)			(29,293	)			9				—				—
Professional liability risks			—				—				—				1,313				—				1,313
Right-of-use operating lease obligations			—				—				336				1,158				—				1,494
Income taxes and other liabilities			525				—				233				519				—				1,277
			38,957				25,612				(25,085	)			6,150				—				45,634
Stockholders’ (deficit) equity attributable to HCA Healthcare, Inc.			(4,354	)			(25,572	)			50,001				9,770				(34,199	)			(4,354	)
Noncontrolling interests			—				—				82				2,017				—				2,099
			(4,354	)			(25,572	)			50,083				11,787				(34,199	)			(2,255	)
		$	34,603			$	40			$	24,998			$	17,937			$	(34,199	)		$	43,379

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 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		$	—			$	—			$	174			$	328			$	—			$	502
Accounts receivable, net			—				—				3,964				2,825				—				6,789
Inventories			—				—				1,178				554				—				1,732
Other			—				—				669				521				—				1,190
			—				—				5,985				4,228				—				10,213
Property and equipment, net			—				—				12,450				7,307				—				19,757
Investments of insurance subsidiaries			—				—				—				362				—				362
Investments in and advances to affiliates			33,166				—				29				203				(33,166	)			232
Goodwill and other intangible assets			—				—				5,724				2,229				—				7,953
Other			478				64				35				113				—				690
		$	33,644			$	64			$	24,223			$	14,442			$	(33,166	)		$	39,207
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable		$	—			$	—			$	1,721			$	856			$	—			$	2,577
Accrued salaries			—				—				998				582				—				1,580
Other accrued expenses			142				403				905				1,174				—				2,624
Long-term debt due within one year			—				696				55				37				—				788
			142				1,099				3,679				2,649				—				7,569
Long-term debt, net			996				30,544				212				281				—				32,033
Intercompany balances			36,951				(6,789	)			(28,415	)			(1,747	)			—				—
Professional liability risks			—				—				—				1,275				—				1,275
Income taxes and other liabilities			505				—				223				520				—				1,248
			38,594				24,854				(24,301	)			2,978				—				42,125
Stockholders’ (deficit) equity attributable to HCA Healthcare, Inc.			(4,950	)			(24,790	)			48,437				9,519				(33,166	)			(4,950	)
Noncontrolling interests			—				—				87				1,945				—				2,032
			(4,950	)			(24,790	)			48,524				11,464				(33,166	)			(2,918	)
		$	33,644			$	64			$	24,223			$	14,442			$	(33,166	)		$	39,207

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE QUARTER ENDED MARCH 31, 2019

(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)		$	1,039			$	(764	)		$	1,582			$	350			$	(1,026	)		$	1,181
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities			(15	)			(101	)			(600	)			(478	)			—				(1,194	)
Depreciation and amortization			—				—				355				264				—				619
Income taxes			269				—				—				—				—				269
Losses on sales of facilities			—				—				1				—				—				1
Amortization of debt issuance costs			—				8				—				—				—				8
Share-based compensation			—				—				62				—				—				62
Equity in earnings of affiliates			(1,026	)			—				—				—				1,026				—
Other			25				—				5				(2	)			—				28
Net cash provided by (used in) operating activities			292				(857	)			1,405				134				—				974
Cash flows from investing activities:
Purchase of property and equipment			—				—				(471	)			(310	)			—				(781	)
Acquisition of hospitals and health care entities			—				—				(12	)			(1,462	)			—				(1,474	)
Disposition of hospitals and health care entities			—				—				30				—				—				30
Change in investments			—				—				—				36				—				36
Other			—				—				(5	)			29				—				24
Net cash used in investing activities			—				—				(458	)			(1,707	)			—				(2,165	)
Cash flows from financing activities:
Issuance of long-term debt			—				1,500				—				—				—				1,500
Net change in revolving credit facilities			—				460				—				—				—				460
Repayment of long-term debt			—				(23	)			(16	)			(10	)			—				(49	)
Distributions to noncontrolling interests			—				—				(25	)			(111	)			—				(136	)
Payment of debt issuance costs			—				(22	)			—				—				—				(22	)
Payment of cash dividends			(141	)			—				—				—				—				(141	)
Repurchases of common stock			(278	)			—				—				—				—				(278	)
Changes in intercompany balances with affiliates, net			243				(1,058	)			(941	)			1,756				—				—
Other			(116	)			—				—				(2	)			—				(118	)
Net cash (used in) provided by financing activities			(292	)			857				(982	)			1,633				—				1,216
Effect on exchange rate changes on cash and cash equivalents			—				—				—				4				—				4
Change in cash and cash equivalents			—				—				(35	)			64				—				29
Cash and cash equivalents at beginning of period			—				—				174				328				—				502
Cash and cash equivalents at end of period		$	—			$	—			$	139			$	392			$	—			$	531

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	)			(24	)			—				(485	)
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				499				—				1,283
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	)
Effect on exchange rate changes on cash and cash equivalents			—				—				—				17				—				17
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

X

- Definition

The entire disclosure for condensed financial statements.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 3
-Paragraph d
-Subparagraph 4
-Subsection 10

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 3
-Paragraph c
-Subparagraph 4
-Subsection 10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 12
-Paragraph a
-Subsection 04

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 3
-Paragraph e
-Subparagraph 4
-Subsection 10

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 3
-Paragraph f
-Subparagraph 4
-Subsection 10

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690

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X

- References

No definition available.

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