Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2015

Condensed Consolidating Statements of Income

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2015

(amounts in thousands)


	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	0		$	1,690,272		$	770,481		$	(8,073	)	$	2,452,680
Less: Provision for doubtful accounts		0			114,894			62,582			0			177,476

Net revenues		0			1,575,378			707,899			(8,073	)		2,275,204

Operating charges:
Salaries, wages and benefits		0			745,230			298,834			0			1,044,064
Other operating expenses		0			367,145			176,236			(7,670	)		535,711
Supplies expense		0			145,631			95,348			0			240,979
Depreciation and amortization		0			69,057			28,200			0			97,257
Lease and rental expense		0			14,144			9,455			(403	)		23,196
Electronic health records incentive income		0			(1,395	)		0			0			(1,395	)

		0			1,339,812			608,073			(8,073	)		1,939,812

Income from operations		0			235,566			99,826			0			335,392
Interest expense		26,032			1,166			486			0			27,684
Interest (income) expense, affiliate		0			23,055			(23,055	)		0			0
Equity in net income of consolidated affiliates		(198,261	)		(60,788	)		0			259,049			0

Income before income taxes		172,229			272,133			122,395			(259,049	)		307,708
Provision for income taxes		(9,964	)		90,739			25,529			0			106,304

Net income		182,193			181,394			96,866			(259,049	)		201,404
Less: Income attributable to noncontrolling interests		0			0			19,211			0			19,211

Net income attributable to UHS	$	182,193		$	181,394		$	77,655		$	(259,049	)	$	182,193

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(amounts in thousands)


	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	0		$	3,351,884		$	1,496,561		$	(15,664	)	$	4,832,781
Less: Provision for doubtful accounts		0			221,198			111,026			0			332,224

Net revenues		0			3,130,686			1,385,535			(15,664	)		4,500,557

Operating charges:
Salaries, wages and benefits		0			1,485,784			589,983			0			2,075,767
Other operating expenses		0			718,725			337,922			(14,970	)		1,041,677
Supplies expense		0			286,992			192,728			0			479,720
Depreciation and amortization		0			138,702			57,553			0			196,255
Lease and rental expense		0			27,899			18,882			(694	)		46,087
Electronic health records incentive income		0			(1,395	)		0			0			(1,395	)

		0			2,656,707			1,197,068			(15,664	)		3,838,111

Income from operations		0			473,979			188,467			0			662,446
Interest expense		54,544			2,393			784			0			57,721
Interest (income) expense, affiliate		0			46,109			(46,109	)		0			0
Equity in net income of consolidated affiliates		(390,159	)		(120,303	)		0			510,462			0

Income before income taxes		335,615			545,780			233,792			(510,462	)		604,725
Provision for income taxes		(20,877	)		182,869			47,006			0			208,998

Net income		356,492			362,911			186,786			(510,462	)		395,727
Less: Income attributable to noncontrolling interests		0			0			39,235			0			39,235

Net income attributable to UHS	$	356,492		$	362,911		$	147,551		$	(510,462	)	$	356,492

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2014

(amounts in thousands)


	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	0		$	1,547,499		$	687,743		$	(7,521	)	$	2,227,721
Less: Provision for doubtful accounts		0			121,531			54,424			0			175,955

Net revenues		0			1,425,968			633,319			(7,521	)		2,051,766

Operating charges:
Salaries, wages and benefits		0			688,041			273,879			0			961,920
Other operating expenses		0			311,145			156,596			(7,076	)		460,665
Supplies expense		0			136,754			87,020			0			223,774
Depreciation and amortization		0			64,622			26,069			0			90,691
Lease and rental expense		0			14,444			9,459			(445	)		23,458
Electronic health records incentive income		0			(1,704	)		(470	)		0			(2,174	)

		0			1,213,302			552,553			(7,521	)		1,758,334

Income from operations		0			212,666			80,766			0			293,432
Interest expense		33,589			1,147			351			0			35,087
Interest (income) expense, affiliate		0			22,112			(22,112	)		0			0
Equity in net income of consolidated affiliates		(172,404	)		(49,911	)		0			222,315			0

Income before income taxes		138,815			239,318			102,527			(222,315	)		258,345
Provision for income taxes		(12,856	)		84,448			20,139			0			91,731

Net income		151,671			154,870			82,388			(222,315	)		166,614
Less: Income attributable to noncontrolling interests		0			0			14,943			0			14,943

Net income attributable to UHS	$	151,671		$	154,870		$	67,445		$	(222,315	)	$	151,671

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(amounts in thousands)


	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	0		$	3,025,958		$	1,362,939		$	(14,678	)	$	4,374,219
Less: Provision for doubtful accounts		0			257,517			126,622			0			384,139

Net revenues		0			2,768,441			1,236,317			(14,678	)		3,990,080

Operating charges:
Salaries, wages and benefits		0			1,357,294			539,991			0			1,897,285
Other operating expenses		0			565,860			308,730			(14,017	)		860,573
Supplies expense		0			268,229			171,343			0			439,572
Depreciation and amortization		0			132,336			51,714			0			184,050
Lease and rental expense		0			28,793			18,664			(661	)		46,796
Electronic health records incentive income		0			(2,134	)		(470	)		0			(2,604	)

		0			2,350,378			1,089,972			(14,678	)		3,425,672

Income from operations		0			418,063			146,345			0			564,408
Interest expense		67,162			1,971			1,147			0			70,280
Interest (income) expense, affiliate		0			44,224			(44,224	)		0			0
Equity in net income of consolidated affiliates		(331,205	)		(92,863	)		0			424,068			0

Income before income taxes		264,043			464,731			189,422			(424,068	)		494,128
Provision for income taxes		(25,706	)		163,201			38,167			0			175,662

Net income		289,749			301,530			151,255			(424,068	)		318,466
Less: Income attributable to noncontrolling interests		0			0			28,717			0			28,717

Net income attributable to UHS	$	289,749		$	301,530		$	122,538		$	(424,068	)	$	289,749

Condensed Consolidating Statements of Comprehensive Income

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2015

(amounts in thousands)


	Parent			Guarantors		Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	182,193		$	181,394	$	96,866	$	(259,049	)	$	201,404
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		806			0		0		0			806
Amortization of terminated hedge		(84	)		0		0		0			(84	)
Foreign currency translation adjustment		2,626			2,626		0		(2,626	)		2,626

Other comprehensive income before tax		3,348			2,626		0		(2,626	)		3,348
Income tax expense related to items of other comprehensive income		715			0		0		0			715

Total other comprehensive income, net of tax		2,633			2,626		0		(2,626	)		2,633

Comprehensive income		184,826			184,020		96,866		(261,675	)		204,037
Less: Comprehensive income attributable to noncontrolling interests		0			0		19,211		0			19,211

Comprehensive income attributable to UHS	$	184,826		$	184,020	$	77,655	$	(261,675	)	$	184,826

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(amounts in thousands)


	Parent			Guarantors		Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	356,492		$	362,911	$	186,786	$	(510,462	)	$	395,727
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		4,938			0		0		0			4,938
Amortization of terminated hedge		(168	)		0		0		0			(168	)
Foreign currency translation adjustment		2,208			2,208		0		(2,208	)		2,208

Other comprehensive income before tax		6,978			2,208		0		(2,208	)		6,978
Income tax expense related to items of other comprehensive income		2,212			0		0		0			2,212

Total other comprehensive income, net of tax		4,766			2,208		0		(2,208	)		4,766

Comprehensive income		361,258			365,119		186,786		(512,670	)		400,493
Less: Comprehensive income attributable to noncontrolling interests		0			0		39,235		0			39,235

Comprehensive income attributable to UHS	$	361,258		$	365,119	$	147,551	$	(512,670	)	$	361,258

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2014

(amounts in thousands)


	Parent			Guarantors		Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	151,671		$	154,870	$	82,388	$	(222,315	)	$	166,614
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		4,465			0		0		0			4,465
Amortization of terminated hedge		(84	)		0		0		0			(84	)

Other comprehensive income before tax		4,381			0		0		0			4,381
Income tax expense related to items of other comprehensive income		1,620			0		0		0			1,620

Total other comprehensive income, net of tax		2,761			0		0		0			2,761

Comprehensive income		154,432			154,870		82,388		(222,315	)		169,375
Less: Comprehensive income attributable to noncontrolling interests		0			0		14,943		0			14,943

Comprehensive income attributable to UHS	$	154,432		$	154,870	$	67,445	$	(222,315	)	$	154,432

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(amounts in thousands)


	Parent			Guarantors		Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	289,749		$	301,530	$	151,255	$	(424,068	)	$	318,466
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		8,210			0		0		0			8,210
Amortization of terminated hedge		(168	)		0		0		0			(168	)

Other comprehensive income before tax		8,042			0		0		0			8,042
Income tax expense related to items of other comprehensive income		2,974			0		0		0			2,974

Total other comprehensive income, net of tax		5,068			0		0		0			5,068

Comprehensive income		294,817			301,530		151,255		(424,068	)		323,534
Less: Comprehensive income attributable to noncontrolling interests		0			0		28,717		0			28,717

Comprehensive income attributable to UHS	$	294,817		$	301,530	$	122,538	$	(424,068	)	$	294,817

Condensed Consolidating Balance Sheet

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2015

(amounts in thousands)


	Parent		Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Assets
Current assets:
Cash and cash equivalents	$	0	$	29,556			12,908		$	0		$	42,464
Accounts receivable, net		0		947,030			413,943			0			1,360,973
Supplies		0		67,001			42,116			0			109,117
Deferred income taxes		122,658		2,199			0			0			124,857
Other current assets		0		60,873			10,675			0			71,548

Total current assets		122,658		1,106,659			479,642			0			1,708,959

Investments in subsidiaries		7,405,907		1,781,599			0			(9,187,506	)		0
Intercompany receivable		0		0			517,996			(517,996	)		0
Intercompany note receivable		0		0			1,222,637			(1,222,637	)		0
Property and equipment		0		4,579,230			1,792,537			0			6,371,767
Less: accumulated depreciation		0		(1,794,709	)		(891,021	)		0			(2,685,730	)

		0		2,784,521			901,516			0			3,686,037

Other assets:
Goodwill		0		2,789,994			526,951			0			3,316,945
Deferred charges		28,887		5,659			2,381			0			36,927
Other		11,906		272,316			45,469			0			329,691

	$	7,569,358	$	8,740,748		$	3,696,592		$	(10,928,139	)	$	9,078,559

Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	50,074	$	1,206		$	22,527		$	0		$	73,807
Accounts payable and accrued liabilities		17,137		1,004,946			73,998			0			1,096,081
Federal and state taxes		24,423		0			0			0			24,423

Total current liabilities		91,634		1,006,152			96,525			0			1,194,311

Intercompany payable		208,304		309,692			0			(517,996	)		0
Other noncurrent liabilities		1,385		207,405			70,491			0			279,281
Long-term debt		2,935,170		17,401			8,944			0			2,961,515
Intercompany note payable		0		1,222,637			0			(1,222,637	)		0
Deferred income taxes		271,109		0			0			0			271,109
Redeemable noncontrolling interests		0		0			250,533			0			250,533
UHS common stockholders’ equity		4,061,756		5,977,461			3,210,045			(9,187,506	)		4,061,756
Noncontrolling interest		0		0			60,054			0			60,054

Total equity		4,061,756		5,977,461			3,270,099			(9,187,506	)		4,121,810

	$	7,569,358	$	8,740,748		$	3,696,592		$	(10,928,139	)	$	9,078,559

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2014

(amounts in thousands)


	Parent		Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated 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 SIX MONTHS ENDED JUNE 30, 2015

(amounts in thousands)


	Parent			Guarantors			Non Guarantors			Consolidating Adjustments		Total Consolidated Amounts
Net cash (used in) provided by operating activities	$	(9,690	)		333,512			207,781		$		$	531,603

Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(97,857	)		(72,723	)		0		(170,580	)
Acquisition of property and businesses		0			(22,513	)		(11,987	)		0		(34,500	)

Net cash used in investing activities		0			(120,370	)		(84,710	)		0		(205,080	)

Cash Flows from Financing Activities:
Reduction of long-term debt		(252,189	)		(2,865	)		(604	)		0		(255,658	)
Additional borrowings		5,200			0			0			0		5,200
Repurchase of common shares		(68,157	)		0			0			0		(68,157	)
Dividends paid		(19,804	)		0			0			0		(19,804	)
Issuance of common stock		4,039			0			0			0		4,039
Excess income tax benefits related to stock-based compensation		28,489			0			0			0		28,489
Profit distributions to noncontrolling interests		0			0			(23,295	)		0		(23,295	)
Proceeds received from sale/leaseback of real property		0			0			12,765			0		12,765
Changes in intercompany balances with affiliates, net		312,112			(202,798	)		(109,314	)		0		0

Net cash provided by (used in) financing activities		9,690			(205,663	)		(120,448	)		0		(316,421	)

Effect of exchange rate changes on cash and cash equivalents		0			293			0			0		293

Increase in cash and cash equivalents		0			7,772			2,623			0		10,395
Cash and cash equivalents, beginning of period		0			21,784			10,285			0		32,069

Cash and cash equivalents, end of period	$	0		$	29,556		$	12,908		$	0	$	42,464

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(amounts in thousands)


	Parent			Guarantors			Non Guarantors			Consolidating Adjustments		Total Consolidated Amounts
Net cash provided by operating activities	$	6,497			256,770			195,149		$	0	$	458,416

Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(116,688	)		(70,098	)		0		(186,786	)
Proceeds received from sale of assets and businesses		0			11,450			0			0		11,450
Cash paid/reserved related to acquisition of property and businesses		0			(67,699	)		(3,301	)		0		(71,000	)
Costs incurred for purchase and implementation of electronic health records application		0			(8,399	)		0			0		(8,399	)

Net cash used in investing activities		0			(181,336	)		(73,399	)		0		(254,735	)

Cash Flows from Financing Activities:
Reduction of long-term debt		(167,755	)		(317	)		(11,054	)		0		(179,126	)
Repurchase of common shares		(35,773	)		0			0			0		(35,773	)
Dividends paid		(9,884	)		0			0			0		(9,884	)
Issuance of common stock		3,287			0			0			0		3,287
Excess income tax benefits related to stock-based compensation		28,493			0			0			0		28,493
Profit distributions to noncontrolling interests		0			0			(13,184	)		0		(13,184	)
Changes in intercompany balances with affiliates, net		175,135			(78,577	)		(96,558	)		0		0

Net cash (used in) provided by financing activities		(6,497	)		(78,894	)		(120,796	)		0		(206,187	)

(Decrease) increase in cash and cash equivalents		0			(3,460	)		954			0		(2,506	)
Cash and cash equivalents, beginning of period		0			7,990			9,248			0		17,238

Cash and cash equivalents, end of period	$	0		$	4,530		$	10,202		$	0	$	14,732