12) QUARTERLY RESULTS (unaudited)

The following tables summarize the quarterly financial data for the two years ended December 31, 2014 and 2013:


2014	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
	(amounts in thousands, except per share amounts)
Net revenues	$	1,920,166	$	2,019,821	$	2,017,758	$	2,107,581	$	8,065,326
Net income	$	151,852	$	166,614	$	96,038	$	190,492	$	604,996
Less: Net income attributable to noncontrolling interests	$	13,774	$	14,943	$	13,241	$	17,695	$	59,653

Net income attributable to UHS	$	138,078	$	151,671	$	82,797	$	172,797	$	545,343

Earnings per share attributable to UHS-Basic:

Total basic earnings per share	$	1.40	$	1.53	$	0.84	$	1.75	$	5.52

Earnings per share attributable to UHS-Diluted:

Total diluted earnings per share	$	1.38	$	1.51	$	0.82	$	1.71	$	5.42

The 2014 quarterly financial data presented above includes the following:

First Quarter:

•

an unfavorable $8.9 million pre-tax impact ($4.9 million, or $.05 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications;

•

a favorable $10.1 million pre-tax impact ($6.3 million, or $0.07 per diluted share, net of taxes) resulting from the gain realized on the sale of a non-operating investment.

Second Quarter:

•

an unfavorable $7.1 million pre-tax impact ($3.9 million, or $.04 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications.

Third Quarter:

•

an unfavorable $7.9 million pre-tax impact ($4.5 million, or $.04 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications;

•

an unfavorable $36.2 million pre-tax impact ($22.7 million, or $0.23 per diluted share, net of taxes) recorded in connection with the costs related to extinguishment of debt resulting primarily from the early redemption of our previously outstanding $250 million, 7.00% senior unsecured notes that were scheduled to mature in 2018 and the repayment of $550 million of borrowings pursuant to the terms of our previously outstanding Term Loan B facility which was scheduled to mature in 2016;

•

an unfavorable $44.0 million pre-tax impact ($27.6 million, or $0.27 per diluted share, net of taxes) incurred in connection with the previously disclosed $65 million settlement of the Garden City matter. This matter was a shareholder class action lawsuit filed in 2009 against PSI and certain of its former officers alleging their violations of federal securities laws and we assumed the defense and liability of this matter as a result of our acquisition of PSI in 2010. This charge is net of approximately $17 million of commercial insurance recoveries that we were entitled to and a previously recorded estimated reserve.

Fourth Quarter:

•

a favorable $13.8 million pre-tax impact ($8.6 million, or $.08 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications;

•

a favorable $19.7 million pre-tax impact reduction ($11.7 million, or $.12 per diluted share, net of taxes) to our professional and general liability self-insurance reserves relating to years prior to 2014, as discussed in Self-Insured/Other Insurance Risks.


2013	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
	(amounts in thousands, except per share amounts)
Net revenues	$	1,831,632	$	1,834,975	$	1,816,369	$	1,800,846	$	7,283,822
Net income	$	129,935	$	167,803	$	123,099	$	133,186	$	554,023
Less: Net income attributable to noncontrolling interests	$	10,151	$	15,962	$	8,512	$	8,665	$	43,290

Net income attributable to UHS	$	119,784	$	151,841	$	114,587	$	124,521	$	510,733

Earnings per share attributable to UHS-Basic:

Total basic earnings per share	$	1.23	$	1.55	$	1.17	$	1.27	$	5.21

Earnings per share attributable to UHS-Diluted:

Total diluted earnings per share	$	1.21	$	1.53	$	1.15	$	1.24	$	5.14

The 2013 quarterly financial data presented above includes the following:

First Quarter:

•

an unfavorable $1.1 million pre-tax impact ($327,000, or $.01 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications.

Second Quarter:

•

an unfavorable $8.9 million pre-tax impact ($4.9 million, or $.05 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications;

•

a favorable $65.0 million pre-tax impact reduction ($37.8 million, or $.38 per diluted share, net of taxes) to our professional and general liability self-insurance reserves relating to years prior to 2013, as discussed in Self-Insured/Other Insurance Risks.

Third Quarter:

•

a favorable $8.4 million pre-tax impact ($5.1 million, or $.05 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications.

Fourth Quarter:

•

a favorable $19.4 million pre-tax impact ($11.8 million, or $.12 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications;

•

a favorable $15.6 million pre-tax impact reduction ($9.2 million, or $.09 per diluted share, net of taxes) to our professional and general liability self-insurance reserves relating to years prior to 2013, as discussed in Self-Insured/Other Insurance Risks.