a-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(MARK ONE)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Common shares outstanding, as of July 31, 2024:
Class A |
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Class B |
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Class C |
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Class D |
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UNIVERSAL HEALTH SERVICES, INC.
INDEX
This Quarterly Report on Form 10-Q is for the quarter ended June 30, 2024. This Report modifies and supersedes documents filed prior to this Report. Information that we file with the Securities and Exchange Commission (the “SEC”) in the future will automatically update and supersede information contained in this Report.
In this Quarterly Report, “we,” “us,” “our” “UHS” and the “Company” refer to Universal Health Services, Inc. and its subsidiaries. UHS is a registered trademark of UHS of Delaware, Inc., the management company for, and a wholly-owned subsidiary of Universal Health Services, Inc. Universal Health Services, Inc. is a holding company and operates through its subsidiaries including its management company, UHS of Delaware, Inc. All healthcare and management operations are conducted by subsidiaries of Universal Health Services, Inc. To the extent any reference to “UHS” or “UHS facilities” in this report including letters, narratives or other forms contained herein relates to our healthcare or management operations it is referring to Universal Health Services, Inc.’s subsidiaries including UHS of Delaware, Inc. Further, the terms “we,” “us,” “our” or the “Company” in such context similarly refer to the operations of Universal Health Services Inc.’s subsidiaries including UHS of Delaware, Inc. Any reference to employees or employment contained herein refers to employment with or employees of the subsidiaries of Universal Health Services, Inc. including UHS of Delaware, Inc.
2
PART I. FINANCIAL INFORMATION
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except per share amounts)
(unaudited)
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Three months ended |
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Six months ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Net revenues |
$ |
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$ |
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$ |
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$ |
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Operating charges: |
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Salaries, wages and benefits |
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Other operating expenses |
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Supplies expense |
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Depreciation and amortization |
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Lease and rental expense |
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Income from operations |
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Interest expense, net |
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Other (income) expense, net |
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Income before income taxes |
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Provision for income taxes |
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Net income |
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Less: Net income (loss) attributable to noncontrolling interests |
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( |
) |
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( |
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Net income attributable to UHS |
$ |
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$ |
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$ |
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$ |
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Basic earnings per share attributable to UHS |
$ |
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$ |
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$ |
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$ |
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Diluted earnings per share attributable to UHS |
$ |
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$ |
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$ |
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$ |
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Weighted average number of common shares - basic |
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Add: Other share equivalents |
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Weighted average number of common shares and |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(amounts in thousands, unaudited)
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Three months ended |
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Six months ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Net income |
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$ |
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$ |
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$ |
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$ |
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Other comprehensive income (loss): |
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Foreign currency translation adjustment |
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( |
) |
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Other |
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- |
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- |
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- |
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Other comprehensive income (loss) before tax |
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( |
) |
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Income tax expense (benefit) related to items of other |
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Total other comprehensive (loss) income, net of tax |
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( |
) |
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Comprehensive income |
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Less: Comprehensive income (loss) attributable to noncontrolling |
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( |
) |
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( |
) |
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Comprehensive income attributable to UHS |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
4
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, unaudited)
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June 30, |
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December 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ |
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$ |
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Accounts receivable, net |
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Supplies |
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Other current assets |
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Total current assets |
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Property and equipment |
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Less: accumulated depreciation |
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( |
) |
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( |
) |
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Other assets: |
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Goodwill |
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Deferred income taxes |
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Right of use assets-operating leases |
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Deferred charges |
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Other |
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Total Assets |
$ |
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$ |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Current maturities of long-term debt |
$ |
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$ |
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Accounts payable and other liabilities |
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Operating lease liabilities |
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Federal and state taxes |
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Total current liabilities |
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Other noncurrent liabilities |
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Operating lease liabilities noncurrent |
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Long-term debt |
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Redeemable noncontrolling interests |
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Equity: |
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UHS common stockholders’ equity |
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Noncontrolling interest |
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Total equity |
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Total Liabilities and Stockholders’ Equity |
$ |
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$ |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
5
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Three and Six Months ended June 30, 2024
(amounts in thousands, unaudited)
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Accumulated |
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UHS |
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Redeemable |
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Other |
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Common |
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Noncontrolling |
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Class A |
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Class B |
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Class C |
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Class D |
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Cumulative |
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Retained |
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Comprehensive |
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Stockholders' |
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Noncontrolling |
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Interest |
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Common |
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Common |
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Common |
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Common |
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Dividends |
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Earnings |
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Income (Loss) |
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Equity |
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Interest |
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Total |
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Balance, April 1, 2024 |
|
$ |
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$ |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
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$ |
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$ |
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$ |
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$ |
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Common Stock |
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Issued/(converted) |
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— |
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— |
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( |
) |
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— |
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— |
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— |
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— |
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— |
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Repurchased, including excise tax |
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— |
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— |
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( |
) |
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— |
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— |
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— |
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( |
) |
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— |
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( |
) |
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— |
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( |
) |
Restricted share-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Dividends paid and accrued |
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— |
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— |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
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— |
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( |
) |
Stock option expense |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Distributions to noncontrolling interests |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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( |
) |
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( |
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Sale of ownership interests to minority members |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Comprehensive income: |
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Net income (loss) to UHS / noncontrolling interests |
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— |
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— |
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— |
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— |
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— |
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— |
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Other |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Foreign currency translation adjustments, net of income tax |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Subtotal - comprehensive income |
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— |
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— |
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— |
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— |
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— |
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Balance, June 30, 2024 |
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$ |
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$ |
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$ |
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$ |
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$ |
— |
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$ |
( |
) |
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$ |
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$ |
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$ |
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$ |
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$ |
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Accumulated |
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UHS |
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Redeemable |
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Other |
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Common |
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Noncontrolling |
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Class A |
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Class B |
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Class C |
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Class D |
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Cumulative |
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Retained |
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Comprehensive |
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Stockholders' |
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Noncontrolling |
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Interest |
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Common |
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Common |
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Common |
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Common |
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Dividends |
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Earnings |
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Income (Loss) |
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Equity |
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Interest |
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Total |
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Balance, January 1, 2024 |
|
$ |
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$ |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
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$ |
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$ |
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$ |
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$ |
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Common Stock |
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Issued/(converted) |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Repurchased, including excise tax |
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— |
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— |
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( |
) |
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— |
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— |
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— |
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( |
) |
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— |
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( |
) |
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— |
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( |
) |
Restricted share-based compensation expense |
|
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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|||
Dividends paid and accrued |
|
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— |
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— |
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— |
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— |
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— |
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( |
) |
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— |
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( |
) |
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— |
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( |
) |
|
Stock option expense |
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— |
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— |
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— |
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— |
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— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|||
Distributions to noncontrolling interests |
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Sale of ownership interests to minority members |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
||
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) to UHS / noncontrolling interests |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|||||
Other |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
||
Foreign currency translation adjustments, net of income tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Subtotal - comprehensive income |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||||
Balance, June 30, 2024 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Three and Six Months ended June 30, 2023
(amounts in thousands, unaudited)
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