SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2012

Condensed Consolidating Statements of Income

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	0		$	5,152,816		$	2,562,781		$	(27,526	)	$	7,688,071
Less: Provision for doubtful accounts		0			411,538			315,133			0			726,671
Net Revenues		0			4,741,278			2,247,648			(27,526	)		6,961,400
Operating charges:
Salaries, wages and benefits		0			2,452,187			988,730			0			3,440,917
Other operating expenses		0			899,274			502,592			(25,744	)		1,376,122
Supplies expense		0			496,848			302,773			0			799,621
Depreciation and amortization		0			210,867			91,559			0			302,426
Lease and rental expense		0			59,596			37,071			(1,782	)		94,885
Transaction costs		0			5,716			0			0			5,716
EHR incentive income		0			(14,284	)		(15,754	)		0			(30,038	)
Costs related to extinguishment of debt		29,170			0			0			0			29,170
		29,170			4,110,204			1,906,971			(27,526	)		6,018,819
Income (loss) from operations		(29,170	)		631,074			340,677			0			942,581
Interest expense		172,467			3,749			2,702			0			178,918
Interest (income) expense, affiliate		0			93,363			(93,363	)		0			0
Equity in net income of consolidated affiliates		(567,906	)		(141,983	)		0			709,889			0
Income before income taxes		366,269			675,945			431,338			(709,889	)		763,663
Provision (benefit) for income taxes		(77,177	)		237,072			114,721			0			274,616
Net income		443,446			438,873			316,617			(709,889	)		489,047
Less: Income attributable to noncontrolling interests		0			0			45,601			0			45,601
Net income attributable to UHS	$	443,446		$	438,873		$	271,016		$	(709,889	)	$	443,446

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	0		$	4,917,358		$	2,465,916		$	(26,476	)	$	7,356,798
Less: Provision for doubtful accounts		0			340,121			256,455			0			596,576
Net revenues		0			4,577,237			2,209,461			(26,476	)		6,760,222
Operating charges:
Salaries, wages and benefits		0			2,371,961			954,417			0			3,326,378
Other operating expenses		200			923,579			454,601			(24,687	)		1,353,693
Supplies expense		0			499,200			306,289			0			805,489
Depreciation and amortization		0			207,981			79,230			0			287,211
Lease and rental expense		0			60,768			31,344			(1,789	)		90,323
		200			4,063,489			1,825,881			(26,476	)		5,863,094
Income (loss) from operations		(200	)		513,748			383,580			0			897,128
Interest expense		195,404			3,212			2,176			0			200,792
Interest (income) expense, affiliate		0			87,205			(87,205	)		0			0
Equity in net income of consolidated affiliates		(518,797	)		(157,009	)		0			675,806			0
Income before income taxes		323,193			580,340			468,609			(675,806	)		696,336
Provision (benefit) for income taxes		(74,974	)		198,091			124,349			0			247,466
Net income		398,167			382,249			344,260			(675,806	)		448,870
Less: Income attributable to noncontrolling interests		0			0			50,703			0			50,703
Net income attributable to UHS	$	398,167		$	382,249		$	293,557		$	(675,806	)	$	398,167

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net revenues before provision for doubtful accounts	$	903		$	3,494,351		$	1,981,571		$	(47,592	)	$	5,429,233
Less: Provision for doubtful accounts		0			272,335			256,751			0			529,086
Net revenues		903			3,222,016			1,724,820			(47,592	)		4,900,147
Operating charges:
Salaries, wages and benefits		0			1,611,394			751,989			0			2,363,383
Other operating expenses		0			633,838			381,218			(46,444	)		968,612
Supplies expense		0			422,877			294,048			0			716,925
Depreciation and amortization		0			147,645			69,285			0			216,930
Lease and rental expense		0			48,872			27,639			(1,148	)		75,363
Transaction costs		0			53,220			0			0			53,220
		0			2,917,846			1,524,179			(47,592	)		4,394,433
Income from operations		903			304,170			200,641			0			505,714
Interest expense, net		70,283			6,729			605			0			77,617
Interest (income) expense, affiliate		0			60,876			(60,876	)		0			0
Equity in net income of consolidated affiliates		(271,944	)		(134,760	)		0			406,704			0
Income before income taxes		202,564			371,325			260,912			(406,704	)		428,097
Provision (benefit) for income taxes		(27,619	)		134,547			45,374			0			152,302
Net income		230,183			236,778			215,538			(406,704	)		275,795
Less: Income attributable to noncontrolling interests		0			0			45,612			0			45,612
Net income attributable to UHS	$	230,183		$	236,778		$	169,926		$	(406,704	)	$	230,183

Condensed Consolidating Statements of Comprehensive Income

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012

(amounts in thousands)

	Parent			Guarantors		Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	443,446		$	438,873	$	316,617	$	(709,889	)	$	489,047
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		6,677			0		0		0			6,677
Amortization of terminated hedge		(336	)		0		0		0			(336	)
Minimum Pension Liability		0			4,986		0		0			4,986
Other comprehensive income before tax		6,341			4,986		0		0			11,327
Income tax expense related to items of other comprehensive income		2,408			1,898		0		0			4,306
Total other comprehensive income, net of tax		3,933			3,088		0		0			7,021
Comprehensive income		447,379			441,961		316,617		(709,889	)		496,068
Less: Comprehensive income attributable to noncontrolling interests		0			0		45,601		0			45,601
Comprehensive income attributable to UHS	$	447,379		$	441,961	$	271,016	$	(709,889	)	$	450,467

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011

(amounts in thousands)

	Parent			Guarantors			Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	398,167		$	382,249		$	344,260	$	(675,806	)	$	448,870
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		(37,477	)		0			0		0			(37,477	)
Amortization of terminated hedge		(336	)		0			0		0			(336	)
Minimum Pension Liability		0			(12,397	)		0		0			(12,397	)
Other comprehensive income before tax		(37,813	)		(12,397	)		0		0			(50,210	)
Income tax expense related to items of other comprehensive income		(14,483	)		(4,691	)		0		0			(19,174	)
Total other comprehensive income, net of tax		(23,330	)		(7,706	)		0		0			(31,036	)
Comprehensive income		374,837			374,543			344,260		(675,806	)		417,834
Less: Comprehensive income attributable to noncontrolling interests		0			0			50,703		0			50,703
Comprehensive income attributable to UHS	$	374,837		$	374,543		$	293,557	$	(675,806	)	$	367,131

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010

(amounts in thousands)

	Parent			Guarantors		Non Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Net income	$	230,183		$	236,778	$	215,538	$	(406,704	)	$	275,795
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		1,396			0		0		0			1,396
Amortization of terminated hedge		(336	)		0		0		0			(336	)
Minimum Pension Liability		0			743		0		0			743
Other comprehensive income before tax		1,060			743		0		0			1,803
Income tax expense related to items of other comprehensive income		408			281		0		0			689
Total other comprehensive income, net of tax		652			462		0		0			1,114
Comprehensive income		230,835			237,240		215,538		(406,704	)		276,909
Less: Comprehensive income attributable to noncontrolling interests		0			0		45,612		0			45,612
Comprehensive income attributable to UHS	$	230,835		$	237,240	$	169,926	$	(406,704	)	$	231,297

Condensed Consolidating Balance Sheet

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2012

(amounts in thousands)

	Parent		Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Assets
Current assets:
Cash and cash equivalents	$	0	$	11,949		$	11,522		$	0		$	23,471
Accounts receivable, net		7,154		741,983			318,060			0			1,067,197
Supplies		0		61,100			37,900			0			99,000
Deferred income taxes		61,364		43,555			322			(780	)		104,461
Other current assets		2,188		75,117			10,631			0			87,936
Current assets held for sale		0		0			25,431			0			25,431
Total current assets		70,706		933,704			403,866			(780	)		1,407,496
Investments in subsidiaries		5,781,479		1,323,832			0			(7,105,311	)		0
Intercompany receivable		644,105		0			360,538			(1,004,643	)		0
Intercompany note receivable		0		0			1,007,453			(1,007,453	)		0
Property and equipment		0		3,867,471			1,500,874			0			5,368,345
Less: accumulated depreciation		0		(1,288,975	)		(697,135	)		0			(1,986,110	)
		0		2,578,496			803,739			0			3,382,235
Other assets:
Goodwill		820		2,554,531			481,414			0			3,036,765
Deferred charges		67,831		5,839			2,218			0			75,888
Other		9,645		209,558			79,256			0			298,459
	$	6,574,586	$	7,605,960		$	3,138,484		$	(9,118,187	)	$	8,200,843
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	0		990			1,599			0		$	2,589
Accounts payable and accrued liabilities		10,985		740,484			138,088			0			889,557
Current liabilities held for sale		0		0			850			0			850
Federal and state taxes		0		900			620			(458	)		1,062
Total current liabilities		10,985		742,374			141,157			(458	)		894,058
Intercompany payable		0		1,004,643			0			(1,004,643	)		0
Other noncurrent liabilities		46,048		243,478			105,829			0			395,355
Long-term debt		3,676,940		5,372			45,119			0			3,727,431
Intercompany note payable		0		1,007,453			0			(1,007,453	)		0
Deferred income taxes		127,268		56,801			0			(322	)		183,747
Redeemable noncontrolling interests		0		0			234,303			0			234,303
UHS common stockholders’ equity		2,713,345		4,545,839			2,559,472			(7,105,311	)		2,713,345
Noncontrolling interest		0		0			52,604			0			52,604
Total equity		2,713,345		4,545,839			2,612,076			(7,105,311	)		2,765,949
	$	6,574,586	$	7,605,960		$	3,138,484		$	(9,118,187	)	$	8,200,843

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2011

(amounts in thousands)

	Parent		Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Assets
Current assets:
Cash and cash equivalents	$	0	$	33,221		$	8,008		$	0		$	41,229
Accounts receivable, net		8,891		663,593			297,318			0			969,802
Supplies		0		59,467			37,308			0			96,775
Deferred income taxes		67,189		41,755			322			(942	)		108,324
Other current assets		33,057		56,864			9,938			0			99,859
Current assets held for sale		0		48,916			0			0			48,916
Total current assets		109,137		903,816			352,894			(942	)		1,364,905
Investments in subsidiaries		5,213,573		1,181,849			0			(6,395,422	)		0
Intercompany receivable		669,112		0			20,375			(689,487	)		0
Intercompany note receivable		0		0			1,148,839			(1,148,839	)		0
Property and equipment		0		3,650,025			1,456,135			0			5,106,160
Less: accumulated depreciation		0		(1,184,283	)		(633,897	)		0			(1,818,180	)
		0		2,465,742			822,238			0			3,287,980
Other assets:
Goodwill		820		2,132,103			494,679			0			2,627,602
Deferred charges		103,434		5,972			2,374			0			111,780
Other		10,412		241,107			21,459			0			272,978
	$	6,106,488	$	6,930,589		$	2,862,858		$	(8,234,690	)	$	7,665,245
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	0	$	1,133		$	1,346		$	0		$	2,479
Accounts payable and accrued liabilities		14,201		616,026			201,898			0			832,125
Current liabilities held for sale		0		2,329			0			0			2,329
Federal and state taxes		0		0			620			(620	)		0
Total current liabilities		14,201		619,488			203,864			(620	)		836,933
Intercompany payable		0		689,487			0			(689,487	)		0
Other noncurrent liabilities		49,840		249,033			103,035			0			401,908
Long-term debt		3,594,182		3,616			53,630			0			3,651,428
Intercompany note payable		0		1,148,839			0			(1,148,839	)		0
Deferred income taxes		151,913		58,001			0			(322	)		209,592
Redeemable noncontrolling interests		0		0			218,266			0			218,266
UHS common stockholders’ equity		2,296,352		4,162,125			2,233,297			(6,395,422	)		2,296,352
Noncontrolling interest		0		0			50,766			0			50,766
Total equity		2,296,352		4,162,125			2,284,063			(6,395,422	)		2,347,118
	$	6,106,488	$	6,930,589		$	2,862,858		$	(8,234,690	)	$	7,665,245

Condensed Consolidating Statements of Cash Flows

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net cash provided by (used in) operating activities	$	(21,608	)	$	594,606		$	242,273		$	0		$	815,271
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(312,190	)		(51,002	)		0			(363,192	)
Acquisition of property and businesses		0			(513,596	)		(14,251	)		0			(527,847	)
Proceeds received from sale of assets and businesses		0			142,667			6,644			0			149,311
Costs incurred for purchase and development of electronic health records application		0			(54,362	)		0			0			(54,362	)
Return of Deposit on terminated purchase agreement		6,500			0			0			0			6,500
Net cash provided by (used in) investing activities		6,500			(737,481	)		(58,609	)		0			(789,590	)
Cash Flows from Financing Activities:
Reduction of long-term debt		(843,002	)		0			(8,258	)		1,613			(849,647	)
Additional borrowings		913,500			1,613			0			(1,613	)		913,500
Financing costs		(8,283	)		0			0			0			(8,283	)
Repurchase of common shares		(19,154	)		0			0			0			(19,154	)
Dividends paid		(58,395	)		0			0			0			(58,395	)
Issuance of common stock		5,435			0			0			0			5,435
Profit distributions to noncontrolling interests		0			0			(26,895	)		0			(26,895	)
Changes in intercompany balances with affiliates, net		25,007			119,990			(144,997	)		0			0
Net cash provided by (used in) financing activities		15,108			121,603			(180,150	)		0			(43,439	)
Increase (decrease) in cash and cash equivalents		0			(21,272	)		3,514			0			(17,758	)
Cash and cash equivalents, beginning of period		0			33,221			8,008			0			41,229
Cash and cash equivalents, end of period	$	0		$	11,949		$	11,522		$	0		$	23,471

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Net cash provided by (used in) operating activities	$	(4,990	)	$	518,462		$	204,779		$	0		$	718,251
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(226,848	)		(58,834	)		0			(285,682	)
Acquisition of property and businesses		0			0			(29,466	)		0			(29,466	)
Proceeds received from sale of assets and businesses		0			0			67,592			0			67,592
Costs incurred for purchase and development of electronic health records application		0			(38,249	)		0			0			(38,249	)
Net cash used in investing activities		0			(265,097	)		(20,708	)		0			(285,805	)
Cash Flows from Financing Activities:
Reduction of long-term debt		(382,060	)		(1,442	)		0			1,985			(381,517	)
Additional borrowings		98,100			0			1,985			(1,985	)		98,100
Financing costs		(23,608	)		0			0			0			(23,608	)
Repurchase of common shares		(60,482	)		0			0			0			(60,482	)
Dividends paid		(19,466	)		0			0			0			(19,466	)
Issuance of common stock		4,779			0			0			0			4,779
Profit distributions to noncontrolling interests		0			0			(38,497	)		0			(38,497	)
Changes in intercompany balances with affiliates, net		387,727			(240,087	)		(147,640	)		0			0
Net cash provided by (used in) financing activities		4,990			(241,529	)		(184,152	)		0			(420,691	)
Increase (decrease) in cash and cash equivalents		0			11,836			(81	)		0			11,755
Cash and cash equivalents, beginning of period		0			21,385			8,089			0			29,474
Cash and cash equivalents, end of period	$	0		$	33,221		$	8,008		$	0		$	41,229

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010

(amounts in thousands)

	Parent			Guarantors			Non Guarantors			Consolidating Adjustments		Total Consolidated Amounts
Net cash provided by (used in) operating activities	$	(139,226	)	$	342,633		$	297,937		$	0	$	501,344
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(186,967	)		(52,307	)		0		(239,274	)
Acquisition of property and businesses		0			(1,958,904	)		606			0		(1,958,298	)
Proceeds received from sale of assets and businesses		0			21,460			0			0		21,460
Costs incurred for purchase and development of electronic health records application		0			(17,971	)		0			0		(17,971	)
Net cash used in investing activities		0			(2,142,382	)		(51,701	)		0		(2,194,083	)
Cash Flows from Financing Activities:
Reduction of long-term debt		(1,388,679	)		(753	)		(2,654	)		0		(1,392,086	)
Additional borrowings		3,266,146			0			0			0		3,266,146
Financing costs		(101,815	)		0			0			0		(101,815	)
Repurchase of common shares		(11,528	)		0			0			0		(11,528	)
Dividends paid		(19,422	)		0			0			0		(19,422	)
Issuance of common stock		3,594			0			0			0		3,594
Profit distributions to noncontrolling interests		0			0			(32,456	)		0		(32,456	)
Proceeds from sale of noncontrolling interest in majority owned business		0			0			600			0		600
Changes in intercompany balances with affiliates, net		(1,609,070	)		1,816,520			(207,450	)		0		0
Net cash provided by (used in) by financing activities		139,226			1,815,767			(241,960	)		0		1,713,033
Increase (decrease) in cash and cash equivalents		0			16,018			4,276			0		20,294
Cash and cash equivalents, beginning of period		0			5,367			3,813			0		9,180
Cash and cash equivalents, end of period	$	0		$	21,385		$	8,089		$	0	$	29,474