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 HCA HEALTHCARE, INC. CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT FOR THE QUARTER ENDED MARCH 31, 2019 (Dollars in millions) HCA HCA Inc. Subsidiary Subsidiary Eliminations Condensed 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 HCA Inc. Subsidiary Subsidiary Eliminations Condensed 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 HCA Inc. Subsidiary Subsidiary Eliminations Condensed 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 HCA Inc. Subsidiary Subsidiary Eliminations Condensed 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 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 HCA Inc. Subsidiary Subsidiary Eliminations Condensed 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 HCA Inc. Subsidiary Subsidiary Eliminations Condensed 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 |