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Financial Information for Subsidiary Guarantors and Non-guarantor Subsidiaries (Tables)
9 Months Ended
Mar. 31, 2013
Financial Information for Subsidiary Guarantors and Non Guarantor Subsidiaries [Abstract]  
Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets
June 30, 2012
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
—

 
$
—

 
$
305.8

 
$
149.7

 
$
—

 
$
455.5

Restricted cash
—

 
—

 
—

 
0.8

 
1.6

 
—

 
2.4

Accounts receivable, net
—

 
—

 
—

 
570.8

 
131.3

 
—

 
702.1

Inventories
—

 
—

 
—

 
93.2

 
3.8

 
—

 
97.0

Prepaid expenses and other current assets
0.1

 
—

 
—

 
281.8

 
44.1

 
—

 
326.0

Total current assets
0.1

 
—

 
—

 
1,252.4

 
330.5

 
—

 
1,583.0

Property, plant and equipment, net
—

 
—

 
—

 
1,802.6

 
307.5

 
—

 
2,110.1

Goodwill
—

 
—

 
—

 
680.9

 
87.5

 
—

 
768.4

Intangible assets, net
—

 
49.0

 
0.3

 
27.0

 
12.7

 
—

 
89.0

Investments in consolidated subsidiaries
608.8

 
—

 
—

 
—

 
—

 
(608.8
)
 
—

Investments in securities
—

 
—

 
—

 
—

 
51.8

 
—

 
51.8

Intercompany receivable
—

 
1,674.2

 
—

 
—

 
—

 
(1,674.2
)
 
—

Other assets
—

 
—

 
—

 
65.3

 
120.5

 
—

 
185.8

Total assets
$
608.9

 
$
1,723.2

 
$
0.3

 
$
3,828.2

 
$
910.5

 
$
(2,283.0
)
 
$
4,788.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
 

Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 

Accounts payable
$
—

 
$
—

 
$
—

 
$
316.8

 
$
73.8

 
$
—

 
$
390.6

Accrued expenses and other current liabilities
0.1

 
73.2

 
—

 
392.7

 
120.9

 
—

 
586.9

Current maturities of long-term debt
—

 
8.2

 
—

 
2.1

 
0.9

 
—

 
11.2

Total current liabilities
0.1

 
81.4

 
—

 
711.6

 
195.6

 
—

 
988.7

Other liabilities
—

 
—

 
—

 
547.6

 
201.8

 
—

 
749.4

Long-term debt, less current maturities
—

 
2,672.0

 
9.9

 
4.2

 
9.3

 
—

 
2,695.4

Intercompany payable
307.3

 
—

 
66.7

 
1,483.6

 
193.5

 
(2,051.1
)
 
—

Redeemable non-controlling interests
—

 
—

 
—

 
—

 
53.1

 
—

 
53.1

Total equity (deficit)
301.5

 
(1,030.2
)
 
(76.3
)
 
1,081.2

 
257.2

 
(231.9
)
 
301.5

Total liabilities and equity
$
608.9

 
$
1,723.2

 
$
0.3

 
$
3,828.2

 
$
910.5

 
$
(2,283.0
)
 
$
4,788.1



Condensed Consolidating Balance Sheets
March 31, 2013
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
—

 
$
—

 
$
425.6

 
$
97.2

 
$
—

 
$
522.8

Restricted cash
—

 
—

 
—

 
4.4

 
1.6

 
—

 
6.0

Accounts receivable, net
—

 
—

 
—

 
547.3

 
105.8

 
—

 
653.1

Inventories
—

 
—

 
—

 
88.1

 
11.1

 
—

 
99.2

Prepaid expenses and other current assets
—

 
—

 
—

 
227.2

 
61.1

 
—

 
288.3

Total current assets
—

 
—

 
—

 
1,292.6

 
276.8

 
—

 
1,569.4

Property, plant and equipment, net
—

 
—

 
—

 
1,903.1

 
299.5

 
—

 
2,202.6

Goodwill
—

 
—

 
—

 
672.2

 
100.3

 
—

 
772.5

Intangible assets, net
—

 
45.3

 
—

 
30.3

 
10.1

 
—

 
85.7

Investments in consolidated subsidiaries
608.8

 
—

 
—

 
—

 
—

 
(608.8
)
 
—

Investments in securities
—

 
—

 
—

 
—

 
59.3

 
—

 
59.3

Intercompany receivable
—

 
1,774.7

 
—

 
—

 
—

 
(1,774.7
)
 
—

Other assets
—

 
—

 
—

 
91.7

 
109.7

 
—

 
201.4

Total assets
$
608.8

 
$
1,820.0

 
$
—

 
$
3,989.9

 
$
855.7

 
$
(2,383.5
)
 
$
4,890.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
 

Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 

Accounts payable
$
—

 
$
—

 
$
—

 
$
305.0

 
$
63.9

 
$
—

 
$
368.9

Accrued expenses and other current liabilities
0.1

 
27.8

 
—

 
346.2

 
98.7

 
—

 
472.8

Current maturities of long-term debt
—

 
10.9

 
—

 
2.7

 
0.9

 
—

 
14.5

Total current liabilities
0.1

 
38.7

 
—

 
653.9

 
163.5

 
—

 
856.2

Other liabilities
—

 
—

 
—

 
487.7

 
152.3

 
—

 
640.0

Long-term debt, less current maturities
—

 
2,965.8

 
—

 
8.1

 
6.9

 
—

 
2,980.8

Intercompany payable
251.2

 
—

 
78.4

 
1,644.7

 
177.3

 
(2,151.6
)
 
—

Redeemable non-controlling interests
—

 
—

 
—

 
—

 
56.4

 
—

 
56.4

Total equity (deficit)
357.5

 
(1,184.5
)
 
(78.4
)
 
1,195.5

 
299.3

 
(231.9
)
 
357.5

Total liabilities and equity
$
608.8

 
$
1,820.0

 
$
—

 
$
3,989.9

 
$
855.7

 
$
(2,383.5
)
 
$
4,890.9

Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations
For the three months ended March 31, 2012
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Patient service revenues, net
$
—

 
$
—

 
$
—

 
$
1,245.5

 
$
155.5

 
$
(9.3
)
 
$
1,391.7

Premium revenues
—

 
—

 
—

 
23.5

 
171.0

 
(3.7
)
 
190.8

Total revenues
—

 
—

 
—

 
1,269.0

 
326.5

 
(13.0
)
 
1,582.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
1.9

 
—

 
—

 
649.4

 
70.5

 
—

 
721.8

Health plan claims expense
—

 
—

 
—

 
7.6

 
148.3

 
(9.3
)
 
146.6

Supplies
—

 
—

 
—

 
209.7

 
25.8

 
—

 
235.5

Purchased services
—

 
—

 
—

 
122.9

 
21.7

 
—

 
144.6

Rents and leases
—

 
—

 
—

 
15.6

 
3.4

 
—

 
19.0

Other operating expenses
0.2

 
—

 
—

 
122.4

 
23.8

 
(3.7
)
 
142.7

Medicare and Medicaid EHR incentives
—

 
—

 
—

 
(2.4
)
 
—

 
—

 
(2.4
)
Depreciation and amortization
—

 
—

 
—

 
53.5

 
9.4

 
—

 
62.9

Interest, net
—

 
43.5

 
0.4

 
(4.7
)
 
4.2

 
—

 
43.4

Acquisition related expenses
—

 
—

 
—

 
—

 
1.2

 
—

 
1.2

Management fees
—

 
—

 
—

 
(7.6
)
 
7.6

 
—

 
—

Other
—

 
—

 
—

 
(2.2
)
 
—

 
—

 
(2.2
)
Income (loss) from continuing operations before income taxes
(2.1
)
 
(43.5
)
 
(0.4
)
 
104.8

 
10.6

 
—

 
69.4

Income tax benefit (expense)
(24.3
)
 
—

 
—

 
—

 
(4.5
)
 
4.5

 
(24.3
)
Equity in earnings of subsidiaries
70.4

 
—

 
—

 
—

 
—

 
(70.4
)
 
—

Income (loss) from continuing operations
44.0

 
(43.5
)
 
(0.4
)
 
104.8

 
6.1

 
(65.9
)
 
45.1

Loss from discontinued operations, net of taxes
—

 
—

 
—

 
(0.1
)
 
—

 
—

 
(0.1
)
Net income (loss)
44.0

 
(43.5
)
 
(0.4
)
 
104.7

 
6.1

 
(65.9
)
 
45.0

Net income attributable to non-controlling interests
—

 
—

 
—

 
—

 
(1.0
)
 
—

 
(1.0
)
Net income (loss) attributable to Vanguard Health Systems, Inc. stockholders
$
44.0

 
$
(43.5
)
 
$
(0.4
)
 
$
104.7

 
$
5.1

 
$
(65.9
)
 
$
44.0


Condensed Consolidating Statements of Operations
For the three months ended March 31, 2013
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Patient service revenues, net
$
—

 
$
—

 
$
—

 
$
1,058.4

 
$
264.0

 
$
(6.4
)
 
$
1,316.0

Premium revenues
—

 
—

 
—

 
52.6

 
129.5

 
—

 
182.1

Total revenues
—

 
—

 
—

 
1,111.0

 
393.5

 
(6.4
)
 
1,498.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
0.6

 
—

 
—

 
549.2

 
145.5

 
—

 
695.3

Health plan claims expense
—

 
—

 
—

 
9.2

 
134.5

 
(6.4
)
 
137.3

Supplies
—

 
—

 
—

 
201.1

 
28.0

 
—

 
229.1

Purchased services
—

 
—

 
—

 
122.1

 
33.5

 
—

 
155.6

Rents and leases
—

 
—

 
—

 
14.4

 
5.0

 
—

 
19.4

Other operating expenses
0.1

 
—

 
—

 
97.5

 
26.8

 
—

 
124.4

Medicare and Medicaid EHR incentives
—

 
—

 
—

 
(5.3
)
 
(0.1
)
 
—

 
(5.4
)
Depreciation and amortization
—

 
—

 
—

 
49.9

 
10.8

 
—

 
60.7

Interest, net
—

 
51.5

 
0.2

 
(10.0
)
 
7.1

 
—

 
48.8

Acquisition related expenses
—

 
—

 
—

 
0.1

 
—

 
—

 
0.1

Debt extinguishment costs
—

 
0.5

 
0.8

 
—

 
—

 
—

 
1.3

Management fees
—

 
—

 
—

 
(3.4
)
 
3.4

 
—

 
—

Other
—

 
—

 
—

 
(4.9
)
 
—

 
—

 
(4.9
)
Income (loss) from continuing operations before income taxes
(0.7
)
 
(52.0
)
 
(1.0
)
 
91.1

 
(1.0
)
 
—

 
36.4

Income tax benefit (expense)
(12.4
)
 
—

 
—

 
—

 
6.6

 
(6.6
)
 
(12.4
)
Equity in earnings of subsidiaries
34.4

 
—

 
—

 
—

 
—

 
(34.4
)
 
—

Net income (loss)
21.3

 
(52.0
)
 
(1.0
)
 
91.1

 
5.6

 
(41.0
)
 
24.0

Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
(2.7
)
 
—

 
(2.7
)
Net income (loss) attributable to Vanguard Health Systems, Inc. stockholders
$
21.3

 
$
(52.0
)
 
$
(1.0
)
 
$
91.1

 
$
2.9

 
$
(41.0
)
 
$
21.3



Condensed Consolidating Statements of Operations
For the nine months ended March 31, 2012
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Patient service revenues, net
$
—

 
$
—

 
$
—

 
$
3,541.6

 
$
384.4

 
$
(22.4
)
 
$
3,903.6

Premium revenues
—

 
—

 
—

 
63.4

 
538.5

 
(11.3
)
 
590.6

Total revenues
—

 
—

 
—

 
3,605.0

 
922.9

 
(33.7
)
 
4,494.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
6.5

 
—

 
—

 
1,902.5

 
180.2

 
—

 
2,089.2

Health plan claims expense
—

 
—

 
—

 
23.9

 
457.1

 
(22.4
)
 
458.6

Supplies
—

 
—

 
—

 
613.4

 
63.6

 
—

 
677.0

Purchased services
—

 
—

 
—

 
349.4

 
55.6

 
—

 
405.0

Rents and leases
—

 
—

 
—

 
46.8

 
8.9

 
—

 
55.7

Other operating expenses
0.3

 
—

 
—

 
354.9

 
63.2

 
(11.3
)
 
407.1

Medicare and Medicaid EHR incentives
—

 
—

 
—

 
(26.8
)
 
—

 
—

 
(26.8
)
Depreciation and amortization
—

 
—

 
—

 
166.8

 
24.5

 
—

 
191.3

Interest, net
—

 
129.8

 
4.2

 
(12.3
)
 
10.7

 
—

 
132.4

Acquisition related expenses
—

 
—

 
—

 
8.0

 
5.8

 
—

 
13.8

Debt extinguishment costs
—

 
—

 
38.9

 
—

 
—

 
—

 
38.9

Management fees
—

 
—

 
—

 
(21.0
)
 
21.0

 
—

 
—

Other
—

 
—

 
—

 
(6.1
)
 
(0.3
)
 
—

 
(6.4
)
Income (loss) from continuing operations before income taxes
(6.8
)
 
(129.8
)
 
(43.1
)
 
205.5

 
32.6

 
—

 
58.4

Income tax benefit (expense)
(20.4
)
 
—

 
—

 
—

 
(14.2
)
 
14.2

 
(20.4
)
Equity in earnings of subsidiaries
65.2

 
—

 
—

 
—

 
—

 
(65.2
)
 
—

Income (loss) from continuing operations
38.0

 
(129.8
)
 
(43.1
)
 
205.5

 
18.4

 
(51.0
)
 
38.0

Loss from discontinued operations, net of taxes
—

 
—

 
—

 
(0.5
)
 
—

 
—

 
(0.5
)
Net income (loss)
38.0

 
(129.8
)
 
(43.1
)
 
205.0

 
18.4

 
(51.0
)
 
37.5

Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
0.5

 
—

 
0.5

Net income (loss) attributable to Vanguard Health Systems, Inc. stockholders
$
38.0

 
$
(129.8
)
 
$
(43.1
)
 
$
205.0

 
$
18.9

 
$
(51.0
)
 
$
38.0







Condensed Consolidating Statements of Operations
For the nine months ended March 31, 2013
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Patient service revenues, net
$
—

 
$
—

 
$
—

 
$
3,259.7

 
$
690.2

 
$
(19.8
)
 
$
3,930.1

Premium revenues
—

 
—

 
—

 
82.6

 
469.2

 
—

 
551.8

Total revenues
—

 
—

 
—

 
3,342.3

 
1,159.4

 
(19.8
)
 
4,481.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
5.5

 
—

 
—

 
1,638.8

 
429.3

 
—

 
2,073.6

Health plan claims expense
—

 
—

 
—

 
26.2

 
415.0

 
(19.8
)
 
421.4

Supplies
—

 
—

 
—

 
608.8

 
78.9

 
—

 
687.7

Purchased services
—

 
—

 
—

 
354.5

 
96.5

 
—

 
451.0

Rents and leases
—

 
—

 
—

 
42.4

 
14.8

 
—

 
57.2

Other operating expenses
0.3

 
—

 
—

 
334.6

 
78.8

 
—

 
413.7

Medicare and Medicaid EHR incentives
—

 
—

 
—

 
(25.7
)
 
(5.5
)
 
—

 
(31.2
)
Depreciation and amortization
—

 
—

 
—

 
162.3

 
31.8

 
—

 
194.1

Interest, net
—

 
154.3

 
0.8

 
(27.8
)
 
22.0

 
—

 
149.3

Acquisition related expenses
—

 
—

 
—

 
0.2

 
—

 
—

 
0.2

Debt extinguishment costs
—

 
0.5

 
0.8

 
—

 
—

 
—

 
1.3

Management fees
—

 
—

 
—

 
(10.0
)
 
10.0

 
—

 
—

Other
—

 
—

 
—

 
(11.6
)
 
(0.2
)
 
—

 
(11.8
)
Income (loss) from continuing operations before income taxes
(5.8
)
 
(154.8
)
 
(1.6
)
 
249.6

 
(12.0
)
 
—

 
75.4

Income tax benefit (expense)
(24.5
)
 
—

 
—

 
—

 
(11.6
)
 
11.6

 
(24.5
)
Equity in earnings of subsidiaries
77.7

 
—

 
—

 
—

 
—

 
(77.7
)
 
—

Income (loss) from continuing operations
47.4

 
(154.8
)
 
(1.6
)
 
249.6

 
(23.6
)
 
(66.1
)
 
50.9

Income from discontinued operations, net of taxes
—

 
—

 
—

 
0.1

 
—

 
—

 
0.1

Net income (loss)
47.4

 
(154.8
)
 
(1.6
)
 
249.7

 
(23.6
)
 
(66.1
)
 
51.0

Net income attributable to non-controlling interests
—

 
—

 
—

 
—

 
(3.6
)
 
—

 
(3.6
)
Net income (loss) attributable to Vanguard Health Systems, Inc. stockholders
$
47.4

 
$
(154.8
)
 
$
(1.6
)
 
$
249.7

 
$
(27.2
)
 
$
(66.1
)
 
$
47.4

Condensed Statements of Comprehensive Income (Loss)

Condensed Consolidating Statements of Comprehensive Income (Loss)
For the three months ended March 31, 2012
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Net income (loss)
$
44.0

 
$
(43.5
)
 
$
(0.4
)
 
$
104.7

 
$
6.1

 
$
(65.9
)
 
$
45.0

Other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in unrealized holding gains on investments in securities, net
—

 
—

 
—

 
—

 
3.0

 
—

 
3.0

Other comprehensive income before taxes
—

 
—

 
—

 
—

 
3.0

 
—

 
3.0

Change in income tax expense
—

 
—

 
—

 
—

 
(1.0
)
 
—

 
(1.0
)
Other comprehensive income, net of taxes
—

 
—

 
—

 
—

 
2.0

 
—

 
2.0

Comprehensive income (loss)
44.0

 
(43.5
)
 
(0.4
)
 
104.7

 
8.1

 
(65.9
)
 
47.0

Net income attributable to non-controlling interests
—

 
—

 
—

 
—

 
(1.0
)
 
—

 
(1.0
)
Comprehensive income (loss) attributable to Vanguard Health Systems, Inc. stockholders
$
44.0

 
$
(43.5
)
 
$
(0.4
)
 
$
104.7

 
$
7.1

 
$
(65.9
)
 
$
46.0



Condensed Consolidating Statements of Comprehensive Income (Loss)
For the three months ended March 31, 2013
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Net income (loss)
$
21.3

 
$
(52.0
)
 
$
(1.0
)
 
$
91.1

 
$
5.6

 
$
(41.0
)
 
$
24.0

Other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in unrealized holding gains on investments in securities, net
—

 
—

 
—

 
—

 
1.6

 
—

 
1.6

Other comprehensive income before taxes
—

 
—

 
—

 
—

 
1.6

 
—

 
1.6

Change in income tax expense
—

 
—

 
—

 
—

 
(0.7
)
 
—

 
(0.7
)
Other comprehensive income, net of taxes
—

 
—

 
—

 
—

 
0.9

 
—

 
0.9

Comprehensive income (loss)
21.3

 
(52.0
)
 
(1.0
)
 
91.1

 
6.5

 
(41.0
)
 
24.9

Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
(2.7
)
 
—

 
(2.7
)
Comprehensive income (loss) attributable to Vanguard Health Systems, Inc. stockholders
$
21.3

 
$
(52.0
)
 
$
(1.0
)
 
$
91.1

 
$
3.8

 
$
(41.0
)
 
$
22.2



Condensed Consolidating Statements of Comprehensive Income (Loss)
For the nine months ended March 31, 2012

 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Net income (loss)
$
38.0

 
$
(129.8
)
 
$
(43.1
)
 
$
205.0

 
$
18.4

 
$
(51.0
)
 
$
37.5

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in unrealized holding losses on investments in securities, net
—

 
—

 
—

 
—

 
1.2

 
—

 
1.2

Other comprehensive loss before taxes
—

 
—

 
—

 
—

 
1.2

 
—

 
1.2

Change in income tax benefit
—

 
—

 
—

 
—

 
(0.2
)
 
—

 
(0.2
)
Other comprehensive loss, net of taxes
—

 
—

 
—

 
—

 
1.0

 
—

 
1.0

Comprehensive income (loss)
38.0

 
(129.8
)
 
(43.1
)
 
205.0

 
19.4

 
(51.0
)
 
38.5

Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
0.5

 
—

 
0.5

Comprehensive income (loss) attributable to Vanguard Health Systems, Inc. stockholders
$
38.0

 
$
(129.8
)
 
$
(43.1
)
 
$
205.0

 
$
19.9

 
$
(51.0
)
 
$
39.0



Condensed Consolidating Statements of Comprehensive Income (Loss)
For the nine months ended March 31, 2013
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Net income (loss)
$
47.4

 
$
(154.8
)
 
$
(1.6
)
 
$
249.7

 
$
(23.6
)
 
$
(66.1
)
 
$
51.0

Other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in unrealized holding gains on investments in securities, net
—

 
—

 
—

 
—

 
4.9

 
—

 
4.9

Other comprehensive income before taxes
—

 
—

 
—

 
—

 
4.9

 
—

 
4.9

Change in income tax expense
—

 
—

 
—

 
—

 
(2.1
)
 
—

 
(2.1
)
Other comprehensive income, net of taxes
—

 
—

 
—

 
—

 
2.8

 
—

 
2.8

Comprehensive income (loss)
47.4

 
(154.8
)
 
(1.6
)
 
249.7

 
(20.8
)
 
(66.1
)
 
53.8

Net income attributable to non-controlling interests
—

 
—

 
—

 
—

 
(3.6
)
 
—

 
(3.6
)
Comprehensive income (loss) attributable to Vanguard Health Systems, Inc. stockholders
$
47.4

 
$
(154.8
)
 
$
(1.6
)
 
$
249.7

 
$
(24.4
)
 
$
(66.1
)
 
$
50.2

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows
For the nine months ended March 31, 2012
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
38.0

 
$
(129.8
)
 
$
(43.1
)
 
$
205.0

 
$
18.4

 
$
(51.0
)
 
$
37.5

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
—

 
—

 
—

 
166.8

 
24.5

 
—

 
191.3

Amortization of loan costs
—

 
4.8

 
—

 
—

 
—

 
—

 
4.8

Accretion of principal on notes
—

 
2.0

 
4.2

 
—

 
—

 
—

 
6.2

Acquisition related expenses
—

 
—

 
—

 
8.0

 
5.8

 
—

 
13.8

Stock compensation
6.5

 
—

 
—

 
—

 
—

 
—

 
6.5

Deferred income taxes
15.4

 
—

 
—

 
—

 
—

 
—

 
15.4

Debt extinguishment costs
—

 
—

 
38.9

 
—

 
—

 
—

 
38.9

Other
—

 
—

 
—

 
(0.9
)
 
—

 
—

 
(0.9
)
Changes in operating assets and liabilities net of the impact of acquisitions
(59.9
)
 
(14.8
)
 
—

 
(248.7
)
 
(44.9
)
 
65.2

 
(303.1
)
Net cash provided by (used in) operating activities
$
—

 
$
(137.8
)
 
$
—

 
$
130.2

 
$
3.8

 
$
14.2

 
$
10.4



Condensed Consolidating Statements of Cash Flows
For the nine months ended March 31, 2012
(Continued)
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions and related expenses, net of cash acquired
$
—

 
$
—

 
$
—

 
$
(216.0
)
 
$
2.3

 
$
—

 
$
(213.7
)
Capital expenditures
—

 
—

 
—

 
(188.6
)
 
(7.5
)
 
—

 
(196.1
)
Net proceeds from sales of investments in securities
—

 
—

 
—

 
1.8

 
10.0

 
—

 
11.8

Net deposits to restricted cash and escrow fund
—

 
—

 
—

 
(40.6
)
 
—

 
—

 
(40.6
)
Other investing activities
—

 
—

 
—

 
2.4

 
—

 
—

 
2.4

Net cash provided by (used in) investing activities
—

 
—

 
—

 
(441.0
)
 
4.8

 
—

 
(436.2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 
 
 
 
 
 
 
 
 
 
 
 

Payments of long-term debt and capital lease obligations
—

 
(86.1
)
 
(457.4
)
 
(2.7
)
 
(1.5
)
 
—

 
(547.7
)
Proceeds from debt borrowings
—

 
452.2

 
—

 
—

 
—

 
—

 
452.2

Payments of debt issuance costs
—

 
(7.5
)
 
—

 
—

 
—

 
—

 
(7.5
)
Proceeds from issuance of common stock
67.5

 
—

 
—

 
—

 
—

 
—

 
67.5

Payments of IPO related costs
(6.9
)
 
—

 
—

 
—

 
—

 
—

 
(6.9
)
Payment of tender premiums on note redemption
—

 
—

 
(27.6
)
 
—

 
—

 
—

 
(27.6
)
Cash provided by (used in) intercompany activity
(59.6
)
 
(220.8
)
 
485.0

 
(23.9
)
 
(163.2
)
 
(17.5
)
 
—

Other financing activities
(1.0
)
 
—

 
—

 
—

 
(5.5
)
 
3.3

 
(3.2
)
Net cash provided by (used in) financing activities
—

 
137.8

 
—

 
(26.6
)
 
(170.2
)
 
(14.2
)
 
(73.2
)
Net decrease in cash and cash equivalents
—

 
—

 
—

 
(337.4
)
 
(161.6
)
 
—

 
(499.0
)
Cash and cash equivalents, beginning of period
—

 
—

 
—

 
644.1

 
292.5

 
—

 
936.6

Cash and cash equivalents, end of period
$
—

 
$
—

 
$
—

 
$
306.7

 
$
130.9

 
$
—

 
$
437.6



Condensed Consolidating Statements of Cash Flows
For the nine months ended March 31, 2013
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
47.4

 
$
(154.8
)
 
$
(1.6
)
 
$
249.7

 
$
(23.6
)
 
$
(66.1
)
 
$
51.0

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
—

 
—

 
—

 
162.3

 
31.8

 
—

 
194.1

Amortization of loan costs
—

 
6.7

 
—

 
—

 
—

 
—

 
6.7

Accretion of principal on senior discount notes
—

 
2.5

 
0.7

 
—

 
—

 
—

 
3.2

Acquisition related expenses
—

 
—

 
—

 
0.2

 
—

 
—

 
0.2

Stock compensation
5.5

 
—

 
—

 
—

 
—

 
—

 
5.5

Deferred income taxes
12.8

 
—

 
—

 
—

 
—

 
—

 
12.8

Debt extinguishment costs
—

 
0.5

 
0.8

 
—

 
—

 
—

 
1.3

Other
—

 
—

 
—

 
1.2

 
0.4

 
—

 
1.6

Changes in operating assets and liabilities, net of impact of acquisitions
(65.7
)
 
(45.4
)
 
—

 
(25.6
)
 
(127.4
)
 
77.7

 
(186.4
)
Net cash provided by (used in) operating activities
$
—

 
$
(190.5
)
 
$
(0.1
)
 
$
387.8

 
$
(118.8
)
 
$
11.6

 
$
90.0



Condensed Consolidating Statements of Cash Flows
For the nine months ended March 31, 2013
(Continued)
 
Parent
 
Issuers of
Senior
Notes and
Term Debt
 
Issuers of
Senior
Discount
Notes
 
Guarantor
Subsidiaries
 
Combined
Non-
Guarantors
 
Eliminations
 
Total
Consolidated
 
(In millions)
Investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions and related expenses, net of cash acquired
$
—

 
$
—

 
$
—

 
$
(6.9
)
 
$
(0.3
)
 
$
—

 
$
(7.2
)
Capital expenditures
—

 
—

 
—

 
(270.9
)
 
(18.5
)
 
—

 
(289.4
)
Net purchases of investments in securities
—

 
—

 
—

 
—

 
(2.9
)
 
—

 
(2.9
)
Net reimbursements from restricted cash and escrow fund
—

 
—

 
—

 
0.3

 
—

 
—

 
0.3

Other investing activities
—

 
—

 
—

 
(0.4
)
 
—

 
—

 
(0.4
)
Net cash used in investing activities
—

 
—

 
—

 
(277.9
)
 
(21.7
)
 
—

 
(299.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing activities:
 
 
 
 
 
 
 
 
 
 
 
 

Payments of long-term debt and capital lease obligations
—

 
(6.0
)
 
(10.6
)
 
(0.4
)
 
(2.1
)
 
—

 
(19.1
)
Proceeds from debt borrowings
—

 
300.0

 
—

 
—

 
—

 
—

 
300.0

Payments of debt issuance costs
—

 
(2.6
)
 
—

 
—

 
—

 
—

 
(2.6
)
Payments of tender premiums on note redemption
—

 
—

 
(0.5
)
 
—

 
—

 
—

 
(0.5
)
Other financing activities
(0.4
)
 
—

 
—

 
—

 
(0.5
)
 
—

 
(0.9
)
Cash provided by (used in) intercompany activity
0.4

 
(100.9
)
 
11.2

 
10.3

 
90.6

 
(11.6
)
 
—

Net cash provided by (used in) financing activities
—

 
190.5

 
0.1

 
9.9

 
88.0

 
(11.6
)
 
276.9

Net decrease in cash and cash equivalents
—

 
—

 
—

 
119.8

 
(52.5
)
 
—

 
67.3

Cash and cash equivalents, beginning of period
—

 
—

 
—

 
305.8

 
149.7

 
—

 
455.5

Cash and cash equivalents, end of period
$
—

 
$
—

 
$
—

 
$
425.6

 
$
97.2

 
$
—

 
$
522.8