NOTE 12 — SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

On November 23, 2010, HCA Holdings, Inc. issued $1.525 billion aggregate principal amount of 7³/₄% senior unsecured notes due 2021. On December 6, 2012, HCA Holdings, Inc. issued $1.000 billion aggregate principal amount of 6.25% senior unsecured notes due 2021. These notes are senior unsecured obligations and are not guaranteed by any of our subsidiaries.

HCA Inc., a direct wholly-owned subsidiary of HCA Holdings, Inc., is the obligor under a significant portion of our other indebtedness, including our senior secured credit facilities, senior secured notes and senior unsecured notes (other than the senior unsecured notes issued by HCA Holdings, Inc.). The senior secured notes and senior unsecured notes issued by HCA Inc. are fully and unconditionally guaranteed by HCA Holdings, Inc. The senior secured credit facilities and senior secured notes are fully and unconditionally guaranteed by substantially all existing and future, direct and indirect, 100% owned material domestic subsidiaries that are “Unrestricted Subsidiaries” under our Indenture dated December 16, 1993 (except for certain special purpose subsidiaries that only guarantee and pledge their assets under our senior secured asset-based revolving credit facility).

Our summarized condensed consolidating comprehensive income statements for the quarters and six months ended June 30, 2014 and 2013, condensed consolidating balance sheets at June 30, 2014 and December 31, 2013 and condensed consolidating statements of cash flows for the six months ended June 30, 2014 and 2013, segregating HCA Holdings, Inc. issuer, HCA Inc. issuer, the subsidiary guarantors, the subsidiary non-guarantors and eliminations, follow:

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED JUNE 30, 2014

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	5,079		$	4,879		$	—		$	9,958
Provision for doubtful accounts		—			—			394			334			—			728

Revenues		—			—			4,685			4,545			—			9,230

Salaries and benefits		—			—			2,118			1,980			—			4,098
Supplies		—			—			805			727			—			1,532
Other operating expenses		5			—			789			850			—			1,644
Electronic health record incentive income		—			—			(24	)		(11	)		—			(35	)
Equity in earnings of affiliates		(549	)		—			(1	)		(8	)		549			(9	)
Depreciation and amortization		—			—			224			230			—			454
Interest expense		46			536			(112	)		(43	)		—			427
Gains on sales of facilities		—			—			(11	)		—			—			(11	)
Losses on retirement of debt		—			226			—			—			—			226
Management fees		—			—			(176	)		176			—			—

		(498	)		762			3,612			3,901			549			8,326

Income (loss) before income taxes		498			(762	)		1,073			644			(549	)		904
Provision (benefit) for income taxes		(18	)		(277	)		381			186			—			272

Net income (loss)		516			(485	)		692			458			(549	)		632
Net income attributable to noncontrolling interests		—			—			18			131			—			149

Net income (loss) attributable to HCA Holdings, Inc.	$	516		$	(485	)	$	674		$	327		$	(549	)	$	483

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	516		$	(477	)	$	677		$	349		$	(549	)	$	516

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE QUARTER ENDED JUNE 30, 2013

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	5,012		$	4,461		$	—		$	9,473
Provision for doubtful accounts		—			—			608			415			—			1,023

Revenues		—			—			4,404			4,046			—			8,450

Salaries and benefits		—			—			2,058			1,790			—			3,848
Supplies		—			—			776			694			—			1,470
Other operating expenses		1			—			757			749			—			1,507
Electronic health record incentive income		—			—			(33	)		(19	)		—			(52	)
Equity in earnings of affiliates		(504	)		—			(1	)		(11	)		504			(12	)
Depreciation and amortization		—			—			211			214			—			425
Interest expense		51			544			(109	)		(24	)		—			462
Losses (gains) on sales of facilities		—			—			3			(7	)		—			(4	)
Management fees		—			—			(181	)		181			—			—

		(452	)		544			3,481			3,567			504			7,644

Income (loss) before income taxes		452			(544	)		923			479			(504	)		806
Provision (benefit) for income taxes		(20	)		(213	)		354			148			—			269

Net income (loss)		472			(331	)		569			331			(504	)		537
Net income attributable to noncontrolling interests		—			—			16			98			—			114

Net income (loss) attributable to HCA Holdings, Inc.	$	472		$	(331	)	$	553		$	233		$	(504	)	$	423

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	472		$	(283	)	$	558		$	229		$	(504	)	$	472

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	10,109		$	9,532		$	—		$	19,641
Provision for doubtful accounts		—			—			931			648			—			1,579

Revenues		—			—			9,178			8,884			—			18,062

Salaries and benefits		—			—			4,217			3,931			—			8,148
Supplies		—			—			1,619			1,445			—			3,064
Other operating expenses		10			—			1,562			1,717			—			3,289
Electronic health record incentive income		—			—			(46	)		(19	)		—			(65	)
Equity in earnings of affiliates		(952	)		—			(2	)		(16	)		952			(18	)
Depreciation and amortization		—			—			442			459			—			901
Interest expense		92			1,093			(234	)		(64	)		—			887
Gains on sales of facilities		—			—			(32	)		—			—			(32	)
Losses on retirement of debt		—			226			—			—			—			226
Legal claim costs		—			78			—			—			—			78
Management fees		—			—			(350	)		350			—			—

		(850	)		1,397			7,176			7,803			952			16,478

Income (loss) before income taxes		850			(1,397	)		2,002			1,081			(952	)		1,584
Provision (benefit) for income taxes		(38	)		(524	)		733			327			—			498

Net income (loss)		888			(873	)		1,269			754			(952	)		1,086
Net income attributable to noncontrolling interests		—			—			47			209			—			256

Net income (loss) attributable to HCA Holdings, Inc.	$	888		$	(873	)	$	1,222		$	545		$	(952	)	$	830

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	888		$	(851	)	$	1,227		$	576		$	(952	)	$	888

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING COMPREHENSIVE INCOME STATEMENT

FOR THE SIX MONTHS ENDED JUNE 30, 2013

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Revenues before provision for doubtful accounts	$	—		$	—		$	9,884		$	8,783		$	—		$	18,667
Provision for doubtful accounts		—			—			1,051			726			—			1,777

Revenues		—			—			8,833			8,057			—			16,890

Salaries and benefits		—			—			4,185			3,580			—			7,765
Supplies		—			—			1,567			1,382			—			2,949
Other operating expenses		2			—			1,489			1,539			—			3,030
Electronic health record incentive income		—			—			(62	)		(29	)		—			(91	)
Equity in earnings of affiliates		(860	)		—			(2	)		(18	)		860			(20	)
Depreciation and amortization		—			—			420			429			—			849
Interest expense		97			1,102			(215	)		(50	)		—			934
Losses (gains) on sales of facilities		—			—			19			(7	)		—			12
Loss on retirement of debt		—			17			—			—			—			17
Management fees		—			—			(364	)		364			—			—

		(761	)		1,119			7,037			7,190			860			15,445

Income (loss) before income taxes		761			(1,119	)		1,796			867			(860	)		1,445
Provision (benefit) for income taxes		(37	)		(425	)		671			261			—			470

Net income (loss)		798			(694	)		1,125			606			(860	)		975
Net income attributable to noncontrolling interests		—			—			29			179			—			208

Net income (loss) attributable to HCA Holdings, Inc.	$	798		$	(694	)	$	1,096		$	427		$	(860	)	$	767

Comprehensive income (loss) attributable to HCA Holdings, Inc.	$	798		$	(630	)	$	1,105		$	385		$	(860	)	$	798

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2014

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors		Eliminations			Condensed Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	215		$	443	$	—		$	658
Accounts receivable, net		—			—			2,709			2,763		—			5,472
Inventories		—			—			707			504		—			1,211
Deferred income taxes		500			—			—			—		—			500
Other		—			—			344			587		—			931

		500			—			3,975			4,297		—			8,772

Property and equipment, net		—			—			7,676			6,045		—			13,721
Investments of insurance subsidiaries		—			—			—			426		—			426
Investments in and advances to affiliates		21,308			—			15			135		(21,308	)		150
Goodwill and other intangible assets		—			—			1,694			4,215		—			5,909
Deferred loan costs		27			203			—			—		—			230
Other		406			—			19			189		—			614

	$	22,241		$	203		$	13,379		$	15,307	$	(21,308	)	$	29,822

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	4		$	—		$	1,081		$	632	$	—		$	1,717
Accrued salaries		—			—			656			484		—			1,140
Other accrued expenses		407			330			433			822		—			1,992
Long-term debt due within one year		—			952			50			44		—			1,046

		411			1,282			2,220			1,982		—			5,895

Long-term debt		2,525			25,047			183			187		—			27,942
Intercompany balances		26,762			(10,203	)		(20,098	)		3,539		—			—
Professional liability risks		—			—			—			1,019		—			1,019
Income taxes and other liabilities		533			260			543			218		—			1,554

		30,231			16,386			(17,152	)		6,945		—			36,410

Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(7,990	)		(16,183	)		30,412			7,079		(21,308	)		(7,990	)
Noncontrolling interests		—			—			119			1,283		—			1,402

		(7,990	)		(16,183	)		30,531			8,362		(21,308	)		(6,588	)

	$	22,241		$	203		$	13,379		$	15,307	$	(21,308	)	$	29,822

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2013

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors		Eliminations			Condensed Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	112		$	302	$	—		$	414
Accounts receivable, net		—			—			2,565			2,643		—			5,208
Inventories		—			—			692			487		—			1,179
Deferred income taxes		489			—			—			—		—			489
Other		—			—			301			446		—			747

		489			—			3,670			3,878		—			8,037

Property and equipment, net		—			—			7,504			6,115		—			13,619
Investments of insurance subsidiaries		—			—			—			448		—			448
Investments in and advances to affiliates		20,356			—			13			108		(20,356	)		121
Goodwill and other intangible assets		—			—			1,695			4,208		—			5,903
Deferred loan costs		30			207			—			—		—			237
Other		250			—			48			168		—			466

	$	21,125		$	207		$	12,930		$	14,925	$	(20,356	)	$	28,831

LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable	$	1		$	—		$	1,169		$	633	$	—		$	1,803
Accrued salaries		—			—			694			499		—			1,193
Other accrued expenses		272			353			464			824		—			1,913
Long-term debt due within one year		—			702			45			39		—			786

		273			1,055			2,372			1,995		—			5,695

Long-term debt		2,525			24,701			181			183		—			27,590
Intercompany balances		26,107			(10,513	)		(19,428	)		3,834		—			—
Professional liability risks		—			—			—			949		—			949
Income taxes and other liabilities		490			296			521			218		—			1,525

		29,395			15,539			(16,354	)		7,179		—			35,759

Stockholders’ (deficit) equity attributable to HCA Holdings, Inc.		(8,270	)		(15,332	)		29,185			6,503		(20,356	)		(8,270	)
Noncontrolling interests		—			—			99			1,243		—			1,342

		(8,270	)		(15,332	)		29,284			7,746		(20,356	)		(6,928	)

	$	21,125		$	207		$	12,930		$	14,925	$	(20,356	)	$	28,831

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Cash flows from operating activities:
Net income (loss)	$	888		$	(873	)	$	1,269		$	754		$	(952	)	$	1,086
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		13			(32	)		(1,258	)		(874	)		—			(2,151	)
Provision for doubtful accounts		—			—			931			648			—			1,579
Depreciation and amortization		—			—			442			459			—			901
Income taxes		(94	)		—			—			—			—			(94	)
Gains on sales of facilities		—			—			(32	)		—			—			(32	)
Losses on retirement of debt		—			226			—			—			—			226
Legal claim costs		—			78			—			—			—			78
Amortization of deferred loan costs		2			21			—			—			—			23
Share-based compensation		77			—			—			—			—			77
Equity in earnings of affiliates		(952	)		—			—			—			952			—
Other		—			1			—			(1	)		—			—

Net cash (used in) provided by operating activities		(66	)		(579	)		1,352			986			—			1,693

Cash flows from investing activities:
Purchase of property and equipment		—			—			(583	)		(330	)		—			(913	)
Acquisition of hospitals and health care entities		—			—			(2	)		(25	)		—			(27	)
Disposition of hospitals and health care entities		—			—			25			7			—			32
Change in investments		—			—			26			17			—			43
Other		—			—			—			1			—			1

Net cash used in investing activities		—			—			(534	)		(330	)		—			(864	)

Cash flows from financing activities:
Issuance of long-term debt		—			3,502			—			—			—			3,502
Net change in revolving credit facilities		—			340			—			—			—			340
Repayment of long-term debt		—			(3,441	)		(25	)		(16	)		—			(3,482	)
Distributions to noncontrolling interests		—			—			(27	)		(170	)		—			(197	)
Payment of debt issuance costs		—			(49	)		—			—			—			(49	)
Repurchase of common stock		(750	)		—			—			—			—			(750	)
Distributions to stockholders		(7	)		—			—			—			—			(7	)
Changes in intercompany balances with affiliates, net		756			227			(663	)		(320	)		—			—
Income tax benefits		75			—			—			—			—			75
Other		(8	)		—			—			(9	)		—			(17	)

Net cash provided by (used in) financing activities		66			579			(715	)		(515	)		—			(585	)

Change in cash and cash equivalents		—			—			103			141			—			244
Cash and cash equivalents at beginning of period		—			—			112			302			—			414

Cash and cash equivalents at end of period	$	—		$	—		$	215		$	443		$	—		$	658

HCA HOLDINGS, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2013

(Dollars in millions)


	HCA Holdings, Inc. Issuer			HCA Inc. Issuer			Subsidiary Guarantors			Subsidiary Non- Guarantors			Eliminations			Condensed Consolidated
Cash flows from operating activities:
Net income (loss)	$	798		$	(694	)	$	1,125		$	606		$	(860	)	$	975
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Changes in operating assets and liabilities		41			(18	)		(1,217	)		(1,141	)		—			(2,335	)
Provision for doubtful accounts		—			—			1,051			726			—			1,777
Depreciation and amortization		—			—			420			429			—			849
Income taxes		183			—			—			—			—			183
Losses (gains) on sales of facilities		—			—			19			(7	)		—			12
Loss on retirement of debt		—			17			—			—			—			17
Amortization of deferred loan costs		2			26			—			—			—			28
Share-based compensation		51			—			—			—			—			51
Equity in earnings of affiliates		(860	)		—			—			—			860			—
Other		—			4			—			(7	)		—			(3	)

Net cash provided by (used in) operating activities		215			(665	)		1,398			606			—			1,554

Cash flows from investing activities:
Purchase of property and equipment		—			—			(434	)		(462	)		—			(896	)
Acquisition of hospitals and health care entities		—			—			—			(23	)		—			(23	)
Disposition of hospitals and health care entities		—			—			17			14			—			31
Change in investments		—			—			5			97			—			102
Other		—			—			(1	)		(3	)		—			(4	)

Net cash used in investing activities		—			—			(413	)		(377	)		—			(790	)

Cash flows from financing activities:
Net change in revolving credit facilities		—			(20	)		—			—			—			(20	)
Repayment of long-term debt		—			(726	)		(22	)		(20	)		—			(768	)
Distributions to noncontrolling interests		—			—			(29	)		(167	)		—			(196	)
Payment of debt issuance costs		—			(5	)		—			—			—			(5	)
Distributions to stockholders		(10	)		—			—			—			—			(10	)
Changes in intercompany balances with affiliates, net		(216	)		1,416			(1,165	)		(35	)		—			—
Income tax benefits		61			—			—			—			—			61
Other		(72	)		—			—			3			—			(69	)

Net cash (used in) provided by financing activities		(237	)		665			(1,216	)		(219	)		—			(1,007	)

Change in cash and cash equivalents		(22	)		—			(231	)		10			—			(243	)
Cash and cash equivalents at beginning of period		22			—			383			300			—			705

Cash and cash equivalents at end of period	$	—		$	—		$	152		$	310		$	—		$	462