UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

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 1-11239

HCA Healthcare, Inc.

(Exact name of registrant as specified in its charter)

Delaware	27-3865930
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Park Plaza Nashville, Tennessee	37203
(Address of principal executive offices)	(Zip Code)

(615) 344-9551

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Voting common stock, $.01 par value	HCA	New York Stock Exchange

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. Yes ☒ No ☐

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). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an 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.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
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 ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

Class of Common Stock	Outstanding at July 25, 2022
Voting common stock, $.01 par value	287,024,800 shares

HCA HEALTHCARE, INC.

Form 10-Q

June 30, 2022

		Page of Form 10-Q
Part I.	Financial Information
Item 1.	Financial Statements (Unaudited):
	Condensed Consolidated Income Statements — for the quarters and six months ended June 30, 2022 and 2021	3
	Condensed Consolidated Comprehensive Income Statements — for the quarters and six months ended June 30, 2022 and 2021	4
	Condensed Consolidated Balance Sheets — June 30, 2022 and December 31, 2021	5
	Condensed Consolidated Statements of Stockholders’ Equity (Deficit) — for the quarters and six months ended June 30, 2022 and 2021	6
	Condensed Consolidated Statements of Cash Flows — for the six months ended June 30, 2022 and 2021	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32
Part II.	Other Information
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 6.	Exhibits	34
Signatures		35

2

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

Unaudited

(Dollars in millions, except per share amounts)

	Quarter						Six Months
	2022			2021			2022			2021
Revenues	$	14,820		$	14,435		$	29,765		$	28,412
Salaries and benefits		6,792			6,385			13,731			12,686
Supplies		2,301			2,380			4,622			4,604
Other operating expenses		2,693			2,473			5,445			4,894
Equity in earnings of affiliates		(8	)		(22	)		(19	)		(43	)
Depreciation and amortization		738			712			1,470			1,409
Interest expense		434			386			842			770
Losses (gains) on sales of facilities		32			(8	)		22			(10	)
Losses on retirement of debt		78			12			78			12
		13,060			12,318			26,191			24,322
Income before income taxes		1,760			2,117			3,574			4,090
Provision for income taxes		381			453			730			846
Net income		1,379			1,664			2,844			3,244
Net income attributable to noncontrolling interests		224			214			416			371
Net income attributable to HCA Healthcare, Inc.	$	1,155		$	1,450		$	2,428		$	2,873
Per share data:
Basic earnings	$	3.95		$	4.42		$	8.16		$	8.62
Diluted earnings	$	3.90		$	4.36		$	8.05		$	8.50
Shares used in earnings per share calculations (in millions):
Basic		292.527			328.171			297.459			333.119
Diluted		296.061			332.613			301.690			337.940

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

Unaudited

(Dollars in millions)

	Quarter						Six Months
	2022			2021			2022			2021
Net income	$	1,379		$	1,664		$	2,844		$	3,244
Other comprehensive (loss) income before taxes:
Foreign currency translation		(71	)		3			(105	)		11
Unrealized (losses) gains on available-for-sale securities		(16	)		2			(42	)		(9	)
Losses included in other operating expenses		1			—			1			—
		(15	)		2			(41	)		(9	)
Defined benefit plans		—			—			—			—
Pension costs included in salaries and benefits		3			7			5			14
		3			7			5			14
Change in fair value of derivative financial instruments		1			(1	)		5			—
Interest costs included in interest expense		2			9			4			18
		3			8			9			18
Other comprehensive (loss) income before taxes		(80	)		20			(132	)		34
Income taxes (benefits) related to other comprehensive income items		(12	)		4			(21	)		7
Other comprehensive (loss) income		(68	)		16			(111	)		27
Comprehensive income		1,311			1,680			2,733			3,271
Comprehensive income attributable to noncontrolling interests		224			214			416			371
Comprehensive income attributable to HCA Healthcare, Inc.	$	1,087		$	1,466		$	2,317		$	2,900

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(Dollars in millions)

	June 30, 2022			December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	858		$	1,451
Accounts receivable		8,628			8,095
Inventories		2,043			1,986
Other		2,408			2,010
		13,937			13,542
Property and equipment, at cost		52,816			51,350
Accumulated depreciation		(28,229	)		(27,287	)
		24,587			24,063
Investments of insurance subsidiaries		379			438
Investments in and advances to affiliates		435			448
Goodwill and other intangible assets		9,593			9,540
Right-of-use operating lease assets		2,139			2,113
Other		514			598
	$	51,584		$	50,742
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,742		$	4,111
Accrued salaries		1,895			1,912
Other accrued expenses		3,116			3,322
Long-term debt due within one year		246			237
		8,999			9,582
Long-term debt, less debt issuance costs and discounts of $316 and $248		38,657			34,342
Professional liability risks		1,533			1,514
Right-of-use operating lease obligations		1,796			1,755
Income taxes and other liabilities		1,741			2,060
Stockholders’ equity (deficit):
Common stock $0.01 par; authorized 1,800,000,000 shares; outstanding 287,004,400 shares — 2022 and 305,476,800 shares — 2021		3			3
Accumulated other comprehensive loss		(515	)		(404	)
Retained deficit		(3,168	)		(532	)
Stockholders’ deficit attributable to HCA Healthcare, Inc.		(3,680	)		(933	)
Noncontrolling interests		2,538			2,422
		(1,142	)		1,489
	$	51,584		$	50,742

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

HCA HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

Unaudited

(Dollars in millions)

	Equity (Deficit) Attributable to HCA Healthcare, Inc.
						Capital			Accumulated						Equity
	Common Stock					in Excess			Other			Retained			Attributable to
	Shares			Par		of Par			Comprehensive			Earnings			Noncontrolling
	(in millions)			Value		Value			Loss			(Deficit)			Interests			Total
Balances, December 31, 2020		339.426		$	3	$	294		$	(502	)	$	777		$	2,320		$	2,892
Comprehensive income										11			1,423			157			1,591
Repurchase of common stock		(8.477	)				(225	)					(1,302	)					(1,527	)
Share-based benefit plans		2.765					(75	)											(75	)
Cash dividends declared    ($0.48 per share)													(163	)					(163	)
Distributions																(234	)		(234	)
Other							6									(8	)		(2	)
Balances, March 31, 2021		333.714			3		—			(491	)		735			2,235			2,482
Comprehensive income										16			1,450			214			1,680
Repurchase of common stock		(11.261	)				(142	)					(2,145	)					(2,287	)
Share-based benefit plans		0.372					140												140
Cash dividends declared    ($0.48 per share)													(161	)					(161	)
Distributions																(123	)		(123	)
Other							2									57			59
Balances, June 30, 2021		322.825			3		—			(475	)		(121	)		2,383			1,790
Comprehensive income										(17	)		2,269			203			2,455
Repurchase of common stock		(9.605	)				(130	)					(2,199	)					(2,329	)
Share-based benefit plans		0.282					127												127
Cash dividends declared    ($0.48 per share)													(155	)					(155	)
Distributions																(144	)		(144	)
Other							3									78			81
Balances, September 30, 2021		313.502			3		—			(492	)		(206	)		2,520			1,825
Comprehensive income