Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2014

Condensed Consolidating Statements of Income

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2014

(amounts in thousands)

													Total
							Non			Consolidating			Consolidated
	Parent			Guarantors			Guarantors			Adjustments			Amounts
Net revenues before provision for doubtful accounts	$	0		$	1,520,223		$	683,074		$	(7,521	)	$	2,195,776
Less: Provision for doubtful accounts		0			121,531			54,424			0			175,955
Net revenues		0			1,398,692			628,650			(7,521	)		2,019,821
Operating charges:
Salaries, wages and benefits		0			688,041			273,879			0			961,920
Other operating expenses		0			283,869			151,927			(7,076	)		428,720
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			1,186,026			547,884			(7,521	)		1,726,389
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)

													Total
							Non			Consolidating			Consolidated
	Parent			Guarantors			Guarantors			Adjustments			Amounts
Net revenues before provision for doubtful accounts	$	0		$	2,984,143		$	1,354,661		$	(14,678	)	$	4,324,126
Less: Provision for doubtful accounts		0			257,517			126,622			0			384,139
Net revenues		0			2,726,626			1,228,039			(14,678	)		3,939,987
Operating charges:
Salaries, wages and benefits		0			1,357,294			539,991			0			1,897,285
Other operating expenses		0			524,045			300,452			(14,017	)		810,480
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			2,308,563			1,081,694			(14,678	)		3,375,579
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

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2013

(amounts in thousands)

													Total
							Non			Consolidating			Consolidated
	Parent			Guarantors			Guarantors			Adjustments			Amounts
Net revenues before provision for doubtful accounts	$	0		$	1,416,011		$	672,949		$	(7,298	)	$	2,081,662
Less: Provision for doubtful accounts		0			150,294			96,393			0			246,687
Net revenues		0			1,265,717			576,556			(7,298	)		1,834,975
Operating charges:
Salaries, wages and benefits		0			639,421			257,913			0			897,334
Other operating expenses		0			193,388			139,063			(6,889	)		325,562
Supplies expense		0			123,894			78,450			0			202,344
Depreciation and amortization		0			57,597			24,085			0			81,682
Lease and rental expense		0			15,536			8,955			(409	)		24,082
Electronic health records incentive income		0			(452	)		369			0			(83	)
		0			1,029,384			508,835			(7,298	)		1,530,921
Income from operations		0			236,333			67,721			0			304,054
Interest expense		36,772			846			618			0			38,236
Interest (income) expense, affiliate		0			24,391			(24,391	)		0			0
Equity in net income of consolidated affiliates		(174,539	)		(38,497	)		0			213,036			0
Income before income taxes		137,767			249,593			91,494			(213,036	)		265,818
Provision for income taxes		(14,074	)		93,570			18,519			0			98,015
Net income		151,841			156,023			72,975			(213,036	)		167,803
Less: Income attributable to noncontrolling interests		0			0			15,962			0			15,962
Net income attributable to UHS	$	151,841		$	156,023		$	57,013		$	(213,036	)	$	151,841

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2013

(amounts in thousands)

													Total
							Non			Consolidating			Consolidated
	Parent			Guarantors			Guarantors			Adjustments			Amounts
Net revenues before provision for doubtful accounts	$	0		$	2,837,863		$	1,336,155		$	(14,008	)	$	4,160,010
Less: Provision for doubtful accounts		0			300,062			193,341			0			493,403
Net revenues		0			2,537,801			1,142,814			(14,008	)		3,666,607
Operating charges:
Salaries, wages and benefits		0			1,285,015			514,615			0			1,799,630
Other operating expenses		0			437,807			282,266			(13,504	)		706,569
Supplies expense		0			252,604			154,382			0			406,986
Depreciation and amortization		0			113,376			48,118			0			161,494
Lease and rental expense		0			31,211			18,040			(504	)		48,747
Electronic health records incentive income		0			(3,568	)		(1,227	)		0			(4,795	)
		0			2,116,445			1,016,194			(14,008	)		3,118,631
Income from operations		0			421,356			126,620			0			547,976
Interest expense		74,718			1,700			1,756			0			78,174
Interest (income) expense, affiliate		0			48,782			(48,782	)		0			0
Equity in net income of consolidated affiliates		(317,745	)		(70,278	)		0			388,023			0
Income before income taxes		243,027			441,152			173,646			(388,023	)		469,802
Provision for income taxes		(28,598	)		158,893			41,769			0			172,064
Net income		271,625			282,259			131,877			(388,023	)		297,738
Less: Income attributable to noncontrolling interests		0			0			26,113			0			26,113
Net income attributable to UHS	$	271,625		$	282,259		$	105,764		$	(388,023	)	$	271,625

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, 2014

(amounts in thousands)

											Total
						Non		Consolidating			Consolidated
	Parent			Guarantors		Guarantors		Adjustments			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)

											Total
						Non		Consolidating			Consolidated
	Parent			Guarantors		Guarantors		Adjustments			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

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2013

(amounts in thousands)

											Total
						Non		Consolidating			Consolidated
	Parent			Guarantors		Guarantors		Adjustments			Amounts
Net income	$	151,841		$	156,023	$	72,975	$	(213,036	)	$	167,803
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		5,282			0		0		0			5,282
Amortization of terminated hedge		(84	)		0		0		0			(84	)
Other comprehensive income before tax		5,198			0		0		0			5,198
Income tax expense related to items of other comprehensive income		1,960			0		0		0			1,960
Total other comprehensive income, net of tax		3,238			0		0		0			3,238
Comprehensive income		155,079			156,023		72,975		(213,036	)		171,041
Less: Comprehensive income attributable to noncontrolling interests		0			0		15,962		0			15,962
Comprehensive income attributable to UHS	$	155,079		$	156,023	$	57,013	$	(213,036	)	$	155,079

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2013

(amounts in thousands)

											Total
						Non		Consolidating			Consolidated
	Parent			Guarantors		Guarantors		Adjustments			Amounts
Net income	$	271,625		$	282,259	$	131,877	$	(388,023	)	$	297,738
Other comprehensive income (loss):
Unrealized derivative gains on cash flow hedges		9,817			0		0		0			9,817
Amortization of terminated hedge		(168	)		0		0		0			(168	)
Other comprehensive income before tax		9,649			0		0		0			9,649
Income tax expense related to items of other comprehensive income		3,638			0		0		0			3,638
Total other comprehensive income, net of tax		6,011			0		0		0			6,011
Comprehensive income		277,636			282,259		131,877		(388,023	)		303,749
Less: Comprehensive income attributable to noncontrolling interests		0			0		26,113		0			26,113
Comprehensive income attributable to UHS	$	277,636		$	282,259	$	105,764	$	(388,023	)	$	277,636

Condensed Consolidating Balance Sheet

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2014

(amounts in thousands)

												Total
						Non			Consolidating			Consolidated
	Parent		Guarantors			Guarantors			Adjustments			Amounts
Assets
Current assets:
Cash and cash equivalents	$	0	$	4,530		$	10,202		$	0		$	14,732
Accounts receivable, net		0		825,120			360,892			0			1,186,012
Supplies		0		65,008			39,272			0			104,280
Deferred income taxes		63,667		43,692			0			0			107,359
Other current assets		0		103,085			14,413			0			117,498
Total current assets		63,667		1,041,435			424,779			0			1,529,881
Investments in subsidiaries		6,709,704		1,569,774			0			(8,279,478	)		0
Intercompany receivable		51,457		0			505,656			(557,113	)		0
Intercompany note receivable		0		0			1,104,881			(1,104,881	)		0
Property and equipment		0		4,256,178			1,644,985			0			5,901,163
Less: accumulated depreciation		0		(1,579,351	)		(807,133	)		0			(2,386,484	)
		0		2,676,827			837,852			0			3,514,679
Other assets:
Goodwill		0		2,589,121			500,051			0			3,089,172
Deferred charges		40,985		5,469			2,522			0			48,976
Other		7,392		294,755			63,217			0			365,364
	$	6,873,205	$	8,177,381		$	3,438,958		$	(9,941,472	)	$	8,548,072
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	75,803	$	1,052		$	831		$	0		$	77,686
Accounts payable and accrued liabilities		25,038		901,868			111,281			0			1,038,187
Federal and state taxes		0		0			0			0			0
Total current liabilities		100,841		902,920			112,112			0			1,115,873
Intercompany payable		0		557,113			0			(557,113	)		0
Other noncurrent liabilities		2,311		196,428			77,723			0			276,462
Long-term debt		3,024,627		20,970			24,714			0			3,070,311
Intercompany note payable		0		1,104,881			0			(1,104,881	)		0
Deferred income taxes		199,292		55,281			0			0			254,573
Redeemable noncontrolling interests		0		0			231,545			0			231,545
UHS common stockholders’ equity		3,546,134		5,339,788			2,939,690			(8,279,478	)		3,546,134
Noncontrolling interest		0		0			53,174			0			53,174
Total equity		3,546,134		5,339,788			2,992,864			(8,279,478	)		3,599,308
	$	6,873,205	$	8,177,381		$	3,438,958		$	(9,941,472	)	$	8,548,072

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2013

(amounts in thousands)

												Total
						Non			Consolidating			Consolidated
	Parent		Guarantors			Guarantors			Adjustments			Amounts
Assets
Current assets:
Cash and cash equivalents	$	0	$	7,990		$	9,248		$	0		$	17,238
Accounts receivable, net		0		799,898			317,063			0			1,116,961
Supplies		0		63,562			38,219			0			101,781
Deferred income taxes		76,719		43,184			0			0			119,903
Other current assets		0		63,786			12,660			0			76,446
Total current assets		76,719		978,420			377,190			0			1,432,329
Investments in subsidiaries		6,378,499		1,476,911			0			(7,855,410	)		0
Intercompany receivable		226,592		0			531,411			(758,003	)		0
Intercompany note receivable		0		0			982,568			(982,568	)		0
Property and equipment		0		4,093,914			1,597,988			0			5,691,902
Less: accumulated depreciation		0		(1,478,758	)		(770,975	)		0			(2,249,733	)
		0		2,615,156			827,013			0			3,442,169
Other assets:
Goodwill		0		2,552,190			496,826			0			3,049,016
Deferred charges		49,866		5,577			2,438			0			57,881
Other		8,411		251,365			70,552			0			330,328
	$	6,740,087	$	7,879,619		$	3,287,998		$	(9,595,981	)	$	8,311,723
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	97,403		916			993			0		$	99,312
Accounts payable and accrued liabilities		28,099		837,354			87,996			0			953,449
Federal and state taxes		4,963		2,164			0			0			7,127
Total current liabilities		130,465		840,434			88,989			0			1,059,888
Intercompany payable		0		758,003			0			(758,003	)		0
Other noncurrent liabilities		7,591		199,104			77,894			0			284,589
Long-term debt		3,168,819		5,337			35,606			0			3,209,762
Intercompany note payable		0		982,568			0			(982,568	)		0
Deferred income taxes		183,233		55,915			0			0			239,148
Redeemable noncontrolling interests		0		0			218,107			0			218,107
UHS common stockholders’ equity		3,249,979		5,038,258			2,817,152			(7,855,410	)		3,249,979
Noncontrolling interest		0		0			50,250			0			50,250
Total equity		3,249,979		5,038,258			2,867,402			(7,855,410	)		3,300,229
	$	6,740,087	$	7,879,619		$	3,287,998		$	(9,595,981	)	$	8,311,723

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, 2014

(amounts in thousands)

												Total
							Non			Consolidating		Consolidated
	Parent			Guarantors			Guarantors			Adjustments		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

UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2013

(amounts in thousands)

												Total
							Non			Consolidating		Consolidated
	Parent			Guarantors			Guarantors			Adjustments		Amounts
Net cash provided by operating activities	$	929		$	242,016			147,972		$	0	$	390,917
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		0			(133,607	)		(42,337	)		0		(175,944	)
Proceeds received from sale of assets and businesses		0			7,552			26,456			0		34,008
Cash paid/reserved related to acquisition of property and businesses		0			(1,320	)		0			0		(1,320	)
Costs incurred for purchase and implementation of electronic health records application		0			(33,396	)		0			0		(33,396	)
Net cash used in investing activities		0			(160,771	)		(15,881	)		0		(176,652	)
Cash Flows from Financing Activities:
Reduction of long-term debt		(189,188	)		(526	)		(6,382	)		0		(196,096	)
Additional borrowings		11,000			0			0			0		11,000
Repurchase of common shares		(21,373	)		0			0			0		(21,373	)
Dividends paid		(9,795	)		0			0			0		(9,795	)
Issuance of common stock		2,735			0			0			0		2,735
Excess income tax benefits related to stock-based compensation		15,085			0			0			0		15,085
Profit distributions to noncontrolling interests		0			0			(26,734	)		0		(26,734	)
Changes in intercompany balances with affiliates, net		190,607			(89,098	)		(101,509	)		0		0
Net cash used in financing activities		(929	)		(89,624	)		(134,625	)		0		(225,178	)
Decrease in cash and cash equivalents		0			(8,379	)		(2,534	)		0		(10,913	)
Cash and cash equivalents, beginning of period		0			11,949			11,522			0		23,471
Cash and cash equivalents, end of period	$	0		$	3,570		$	8,988		$	0	$	12,558