REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF CONSOLIDATED SUBSIDIARIES

9 Months Ended

Sep. 30, 2016

REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF CONSOLIDATED SUBSIDIARIES

REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF CONSOLIDATED SUBSIDIARIES

NOTE 11. REDEEMABLE NONCONTROLLING INTERESTS IN EQUITY OF CONSOLIDATED SUBSIDIARIES

As previously disclosed, as part of the formation of our USPI joint venture in 2015, we entered into a put/call agreement (the “Put/Call Agreement”) with respect to the equity interests in the joint venture held by our joint venture partners. Each year starting in 2016, our joint venture partners must put to us at least 12.5%, and may put up to 25%, of the equity held by them in the joint venture immediately after the closing. In January 2016, Welsh, Carson, Anderson & Stowe, on behalf of our joint venture partners, delivered a put notice for the minimum number of shares they were required to put to us in 2016 according to the Put/Call Agreement. In April 2016, we paid approximately $127 million to purchase these shares, which increased our ownership interest in the USPI joint venture to approximately 56.3%.  

The following table shows the changes in redeemable noncontrolling interests in equity of consolidated subsidiaries during the nine months ended September 30, 2016 and 2015:

	Nine Months Ended
	September 30,
	2016		2015
Balances at beginning of period	$	2,266	$	401
Net income		170		86
Distributions paid to noncontrolling interests		(69)		(30)
Purchase accounting adjustments		(47)		—
Purchases and sales of businesses and noncontrolling interests, net		(13)		1,225
Balances at end of period	$	2,307	$	1,682

Our redeemable noncontrolling interests balances at September 30, 2016 and 2015 in the table above were comprised of $526 million and $142 million, respectively, from our Hospital Operations and other segment, $1.637 billion and $1.446 billion, respectively, from our Ambulatory Care segment, and $144 million and $94 million, respectively, from our Conifer segment. Our net income attributable to redeemable noncontrolling interests for the nine months ended September 30, 2016 and 2015, respectively, in the table above were comprised of $16 million and $8 million, respectively, from our Hospital Operations and other segment, $116 million and $40 million, respectively, from our Ambulatory Care segment, and $38 million and $38 million, respectively, from our Conifer segment.