Supplemental Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Condensed Consolidating Statements of Income

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2015

(amounts in thousands)


													Total
							Non			Consolidating			Consolidated
	Parent			Guarantors			Guarantors			Adjustments			Amounts
Net revenues before provision for doubtful accounts	$	0		$	1,661,612		$	726,080		$	(7,591	)	$	2,380,101
Less: Provision for doubtful accounts		0			106,304			48,444			0			154,748

Net revenues		0			1,555,308			677,636			(7,591	)		2,225,353

Operating charges:
Salaries, wages and benefits		0			740,554			291,149			0			1,031,703
Other operating expenses		0			351,580			161,686			(7,300	)		505,966
Supplies expense		0			141,361			97,380			0			238,741
Depreciation and amortization		0			69,645			29,353			0			98,998
Lease and rental expense		0			13,755			9,427			(291	)		22,891

		0			1,316,895			588,995			(7,591	)		1,898,299

Income from operations		0			238,413			88,641			0			327,054
Interest expense		28,512			1,227			298			0			30,037
Interest (income) expense, affiliate		0			23,054			(23,054	)		0			0
Equity in net income of consolidated affiliates		(191,898	)		(59,515	)		0			251,413			0

Income before income taxes		163,386			273,647			111,397			(251,413	)		297,017
Provision for income taxes		(10,913	)		92,130			21,477			0			102,694

Net income		174,299			181,517			89,920			(251,413	)		194,323
Less: Income attributable to noncontrolling interests		0			0			20,024			0			20,024

Net income attributable to UHS	$	174,299		$	181,517		$	69,896		$	(251,413	)	$	174,299

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2014

(amounts in thousands)


													Total
							Non			Consolidating			Consolidated
	Parent			Guarantors			Guarantors			Adjustments			Amounts
Net revenues before provision for doubtful accounts	$	0		$	1,478,459		$	675,196		$	(7,157	)	$	2,146,498
Less: Provision for doubtful accounts		0			135,986			72,198			0			208,184

Net revenues		0			1,342,473			602,998			(7,157	)		1,938,314

Operating charges:
Salaries, wages and benefits		0			669,253			266,112			0			935,365
Other operating expenses		0			254,715			152,134			(6,941	)		399,908
Supplies expense		0			131,475			84,323			0			215,798
EHR incentive income		0			(430	)		0			0			(430	)
Depreciation and amortization		0			67,714			25,645			0			93,359
Lease and rental expense		0			14,349			9,205			(216	)		23,338

		0			1,137,076			537,419			(7,157	)		1,667,338

Income from operations		0			205,397			65,579			0			270,976
Interest expense		33,573			824			796			0			35,193
Interest (income) expense, affiliate		0			22,112			(22,112	)		0			0
Equity in net income of consolidated affiliates		(158,801	)		(42,952	)		0			201,753			0

Income before income taxes		125,228			225,413			86,895			(201,753	)		235,783
Provision for income taxes		(12,850	)		78,753			18,028			0			83,931

Net income		138,078			146,660			68,867			(201,753	)		151,852
Less: Income attributable to noncontrolling interests		0			0			13,774			0			13,774

Net income attributable to UHS	$	138,078		$	146,660		$	55,093		$	(201,753	)	$	138,078

Condensed Consolidating Statements of Comprehensive Income

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2015

(amounts in thousands)


												Total
							Non		Consolidating			Consolidated
	Parent			Guarantors			Guarantors		Adjustments			Amounts
Net income	$	174,299		$	181,517		$	89,920	$	(251,413	)	$	194,323
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		4,132			0			0		0			4,132
Amortization of terminated hedge		(84	)		0			0		0			(84	)
Foreign currency translation adjustment		(418	)		(418	)		0		418			(418	)

Other comprehensive income before tax		3,630			(418	)		0		418			3,630
Income tax expense related to items of other comprehensive income		1,497			0			0		0			1,497

Total other comprehensive income, net of tax		2,133			(418	)		0		418			2,133

Comprehensive income		176,432			181,099			89,920		(250,995	)		196,456
Less: Comprehensive income attributable to noncontrolling interests		0			0			20,024		0			20,024

Comprehensive income attributable to UHS	$	176,432		$	181,099		$	69,896	$	(250,995	)	$	176,432

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2014

(amounts in thousands)


											Total
						Non		Consolidating			Consolidated
	Parent			Guarantors		Guarantors		Adjustments			Amounts
Net income	$	138,078		$	146,660	$	68,867	$	(201,753	)	$	151,852
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		3,745			0		0		0			3,745
Amortization of terminated hedge		(84	)		0		0		0			(84	)

Other comprehensive income before tax		3,661			0		0		0			3,661
Income tax expense related to items of other comprehensive income		1,354			0		0		0			1,354

Total other comprehensive income, net of tax		2,307			0		0		0			2,307

Comprehensive income		140,385			146,660		68,867		(201,753	)		154,159
Less: Comprehensive income attributable to noncontrolling interests		0			0		13,774		0			13,774

Comprehensive income attributable to UHS	$	140,385		$	146,660	$	55,093	$	(201,753	)	$	140,385

Condensed Consolidating Balance Sheet

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2015

(amounts in thousands)


												Total
						Non			Consolidating			Consolidated
	Parent		Guarantors			Guarantors			Adjustments			Amounts
Assets
Current assets:
Cash and cash equivalents	$	0	$	15,518		$	19,560		$	0		$	35,078
Accounts receivable, net		0		992,008			391,956			0			1,383,964
Supplies		0		67,246			41,023			0			108,269
Deferred income taxes		108,654		748			0			0			109,402
Other current assets		0		66,039			14,485			0			80,524

Total current assets		108,654		1,141,559			467,024			0			1,717,237

Investments in subsidiaries		7,205,020		1,720,811			0			(8,925,831	)		0
Intercompany receivable		14,763		0			452,172			(466,935	)		0
Intercompany note receivable		0		0			1,222,637			(1,222,637	)		0
Property and equipment		0		4,544,670			1,756,740			0			6,301,410
Less: accumulated depreciation		0		(1,741,915	)		(868,715	)		0			(2,610,630	)

		0		2,802,755			888,025			0			3,690,780

Other assets:
Goodwill		0		2,770,705			526,731			0			3,297,436
Deferred charges		30,661		5,463			2,637			0			38,761
Other		9,028		278,743			52,370			0			340,141

	$	7,368,126	$	8,720,036		$	3,611,596		$	(10,615,403	)	$	9,084,355

Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	65,674	$	1,215		$	22,134		$	0		$	89,023
Accounts payable and accrued liabilities		17,230		1,024,897			59,016			0			1,101,143
Federal and state taxes		65,106		0			0			0			65,106

Total current liabilities		148,010		1,026,112			81,150			0			1,255,272

Intercompany payable		0		466,935			0			(466,935	)		0
Other noncurrent liabilities		1,354		193,215			83,048			0			277,617
Long-term debt		3,031,137		17,696			2,738			0			3,051,571
Intercompany note payable		0		1,222,637			0			(1,222,637	)		0
Deferred income taxes		280,662		0			0			0			280,662
Redeemable noncontrolling interests		0		0			254,843			0			254,843
UHS common stockholders’ equity		3,906,963		5,793,441			3,132,390			(8,925,831	)		3,906,963
Noncontrolling interest		0		0			57,427			0			57,427

Total equity		3,906,963		5,793,441			3,189,817			(8,925,831	)		3,964,390

	$	7,368,126	$	8,720,036		$	3,611,596		$	(10,615,403	)	$	9,084,355

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2014

(amounts in thousands)


												Total
						Non			Consolidating			Consolidated
	Parent		Guarantors			Guarantors			Adjustments			Amounts
Assets
Current assets:
Cash and cash equivalents	$	0	$	21,784		$	10,285		$	0		$	32,069
Accounts receivable, net		0		933,971			348,764			0			1,282,735
Supplies		0		67,847			40,268			0			108,115
Deferred income taxes		113,822		743			0			0			114,565
Other current assets		0		62,431			15,223			0			77,654

Total current assets		113,822		1,086,776			414,540			0			1,615,138

Investments in subsidiaries		7,013,540		1,661,296			0			(8,674,836	)		0
Intercompany receivable		103,808		0			408,682			(512,490	)		0
Intercompany note receivable		0		0			1,222,637			(1,222,637	)		0
Property and equipment		0		4,494,567			1,717,463			0			6,212,030
Less: accumulated depreciation		0		(1,686,192	)		(846,149	)		0			(2,532,341	)

		0		2,808,375			871,314			0			3,679,689

Other assets:
Goodwill		0		2,764,555			526,658			0			3,291,213
Deferred charges		32,379		5,402			2,538			0			40,319
Other		9,601		283,302			55,181			0			348,084

	$	7,273,150	$	8,609,706		$	3,501,550		$	(10,409,963	)	$	8,974,443

Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	44,874		1,260			22,185			0		$	68,319
Accounts payable and accrued liabilities		20,245		1,051,309			41,508			0			1,113,062
Federal and state taxes		1,446		0			0			0			1,446

Total current liabilities		66,565		1,052,569			63,693			0			1,182,827

Intercompany payable		0		512,490			0			(512,490	)		0
Other noncurrent liabilities		1,322		189,456			77,777			0			268,555
Long-term debt		3,187,103		20,212			2,900			0			3,210,215
Intercompany note payable		0		1,222,637			0			(1,222,637	)		0
Deferred income taxes		282,214		0			0			0			282,214
Redeemable noncontrolling interests		0		0			239,552			0			239,552
UHS common stockholders’ equity		3,735,946		5,612,342			3,062,494			(8,674,836	)		3,735,946
Noncontrolling interest		0		0			55,134			0			55,134

Total equity		3,735,946		5,612,342			3,117,628			(8,674,836	)		3,791,080

	$	7,273,150	$	8,609,706		$	3,501,550		$	(10,409,963	)	$	8,974,443

Condensed Consolidating Statements of Cash Flows

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2015

(amounts in thousands)


												Total
							Non			Consolidating		Consolidated
	Parent			Guarantors			Guarantors			Adjustments		Amounts
Net cash provided by operating activities	$	62,343			124,046			84,886		$	0	$	271,275

Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(59,217	)		(30,059	)		0		(89,276	)
Acquisition of property and businesses		0			(22,513	)		(11,987	)		0		(34,500	)

Net cash used in investing activities		0			(81,730	)		(42,046	)		0		(123,776	)

Cash Flows from Financing Activities:
Reduction of long-term debt		(156,097	)		(2,561	)		(213	)		0		(158,871	)
Additional borrowings		20,800			0			0			0		20,800
Repurchase of common shares		(28,767	)		0			0			0		(28,767	)
Dividends paid		(9,899	)		0			0			0		(9,899	)
Issuance of common stock		1,768			0			0			0		1,768
Excess income tax benefits related to stock-based compensation		20,807			0			0			0		20,807
Profit distributions to noncontrolling interests		0			0			(2,413	)		0		(2,413	)
Proceeds received from sale/leaseback of real property		0			0			12,551			0		12,551
Changes in intercompany balances with affiliates, net		89,045			(45,555	)		(43,490	)		0		0

Net cash used in financing activities		(62,343	)		(48,116	)		(33,565	)		0		(144,024	)

Effect of exchange rate changes on cash and cash equivalents		0			(466	)		0			0		(466	)

Increase (decrease) in cash and cash equivalents		0			(6,266	)		9,275			0		3,009
Cash and cash equivalents, beginning of period		0			21,784			10,285			0		32,069

Cash and cash equivalents, end of period	$	0		$	15,518		$	19,560		$	0	$	35,078

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2014

(amounts in thousands)


												Total
							Non			Consolidating		Consolidated
	Parent			Guarantors			Guarantors			Adjustments		Amounts
Net cash provided by operating activities	$	70,888			51,661			72,090		$	0	$	194,639

Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(70,385	)		(22,002	)		0		(92,387	)
Proceeds received from sale of assets and businesses		0			11,450			0			0		11,450
Acquisition of property and businesses		0			0			(3,301	)				(3,301	)
Costs incurred for purchase and implementation of electronic health records application		0			(6,504	)		0			0		(6,504	)

Net cash used in investing activities		0			(65,439	)		(25,303	)		0		(90,742	)

Cash Flows from Financing Activities:
Reduction of long-term debt		(97,975	)		(228	)		(10,851	)		0		(109,054	)
Additional borrowings		11,900			0			0			0		11,900
Repurchase of common shares		(13,993	)		0			0			0		(13,993	)
Dividends paid		(4,933	)		0			0			0		(4,933	)
Issuance of common stock		1,445			0			0			0		1,445
Excess income tax benefits related to stock-based compensation		11,750			0			0			0		11,750
Profit distributions to noncontrolling interests		0			0			(1,989	)		0		(1,989	)
Changes in intercompany balances with affiliates, net		20,918			13,735			(34,653	)		0		0

Net cash (used in) provided by financing activities		(70,888	)		13,507			(47,493	)		0		(104,874	)

Decrease in cash and cash equivalents		0			(271	)		(706	)		0		(977	)
Cash and cash equivalents, beginning of period		0			7,990			9,248			0		17,238

Cash and cash equivalents, end of period	$	0		$	7,719		$	8,542		$	0	$	16,261