Guarantor

12 Months Ended

Dec. 31, 2013

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

16.Financial Information for the Company and Its Subsidiaries

The Senior Unsecured Notes, issued in 2012, are senior unsecured obligations of the Company and are guaranteed by the Company and certain of its existing and subsequently acquired or organized wholly owned domestic subsidiaries. The Senior Unsecured Notes are guaranteed on a full and unconditional and joint and several basis, with limited exceptions considered customary for such guarantees, including the release of the guarantee when a subsidiary's assets are sold. The following condensed consolidating financial statements present the Company (as parent issuer), the subsidiary guarantors, the subsidiary non-guarantors andconsolidating adjustments. These condensed consolidating financial statements have been prepared and presented in accordance with SEC Regulation S-X Rule 3-10 "Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered."The operating and investing activities of the separate legal entities are fully interdependent and integrated. Accordingly, the results of the separate legal entities are not representative of what the operating results would be on a stand-alone basis.

Condensed Consolidating Balance Sheet - December 31, 2013 (In thousands)
						Guarantor		Non-Guarantor		Consolidating		Total
				Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Assets
Current assets:
	Cash and cash equivalents			$	6,710	$	-	$	44,130	$	-	$	50,840
	Accounts receivable, net				-		-		105,072		-		105,072
	Supplies inventory				33		-		18,381		-		18,414
	Deferred income taxes				3,097		-		-		-		3,097
	Prepaid and other current assets				23,993		-		13,971		(4,362)		33,602
		Total current assets			33,833		-		181,554		(4,362)		211,025
Property and equipment, net					9,829		-		160,066		-		169,895
Investments in unconsolidated affiliates and long-term notes receivable					1,484,974		1,453,596		-		(2,922,178)		16,392
Goodwill and other intangible assets, net					20,684		-		978		1,758,970		1,780,632
			Total assets	$	1,549,320	$	1,453,596	$	342,598	$	(1,167,570)	$	2,177,944
Liabilities and Equity
Current liabilities:
	Current portion of long-term debt			$	10,714	$	-	$	10,130	$	-	$	20,844
	Accounts payable				1,972		-		29,487		(3,958)		27,501
	Other accrued liabilities				27,419		-		14,510		(404)		41,525
		Total current liabilities			40,105		-		54,127		(4,362)		89,870
Long-term debt					561,429		-		53,246		(31,377)		583,298
Deferred income taxes					176,020		-		-		-		176,020
Other long-term liabilities					7,569		-		17,934		-		25,503
Noncontrolling interests – redeemable					-		-		63,704		113,993		177,697
Equity:
		Total AmSurg Corp. equity			764,197		1,453,596		114,671		(1,568,267)		764,197
		Noncontrolling interests – non-redeemable			-		-		38,916		322,443		361,359
		Total equity			764,197		1,453,596		153,587		(1,245,824)		1,125,556
			Total liabilities and equity	$	1,549,320	$	1,453,596	$	342,598	$	(1,167,570)	$	2,177,944

Condensed Consolidating Balance Sheet - December 31, 2012 (In thousands)
						Guarantor		Non-Guarantor		Consolidating		Total
				Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Assets
Current assets:
	Cash and cash equivalents			$	7,259	$	-	$	39,139	$	-	$	46,398
	Accounts receivable, net				-		-		96,752		-		96,752
	Supplies inventory				-		-		18,406		-		18,406
	Deferred income taxes				3,088		-		-		-		3,088
	Prepaid and other current assets				19,342		-		13,160		(4,965)		27,537
		Total current assets			29,689		-		167,457		(4,965)		192,181
Property and equipment, net					9,199		-		157,413		-		166,612
Investments in unconsolidated affiliates and long-term notes receivable					1,413,061		1,381,596		-		(2,783,383)		11,274
Goodwill and other intangible assets, net					21,311		-		1,206		1,652,002		1,674,519
			Total assets	$	1,473,260	$	1,381,596	$	326,076	$	(1,136,346)	$	2,044,586
Liabilities and Equity
Current liabilities:
	Current portion of long-term debt			$	5,357	$	-	$	12,050	$	-	$	17,407
	Accounts payable				1,379		-		26,035		(3,905)		23,509
	Other accrued liabilities				29,380		-		15,177		(1,060)		43,497
		Total current liabilities			36,116		-		53,262		(4,965)		84,413
Long-term debt					599,423		-		52,747		(31,465)		620,705
Deferred income taxes					137,648		-		-		-		137,648
Other long-term liabilities					10,585		-		15,387		-		25,972
Noncontrolling interests – redeemable					-		-		61,939		113,443		175,382
Equity:
		Total AmSurg Corp. equity			689,488		1,381,596		108,412		(1,490,008)		689,488
		Noncontrolling interests – non-redeemable			-		-		34,329		276,649		310,978
		Total equity			689,488		1,381,596		142,741		(1,213,359)		1,000,466
			Total liabilities and equity	$	1,473,260	$	1,381,596	$	326,076	$	(1,136,346)	$	2,044,586

Condensed Consolidating Statement of Earnings and Comprehensive Income - Year Ended December 31, 2013 (In thousands)
							Guarantor		Non-Guarantor		Consolidating		Total
					Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Revenues					$	24,167	$	-	$	1,072,694	$	(17,518)	$	1,079,343
Operating expenses:
	Salaries and benefits					61,038		-		272,619		(467)		333,190
	Supply cost					-		-		157,771		-		157,771
	Other operating expenses					22,660		-		217,068		(17,051)		222,677
	Depreciation and amortization					3,186		-		29,842		-		33,028
		Total operating expenses				86,884		-		677,300		(17,518)		746,666
Gain on deconsolidation						2,237		2,237		-		(2,237)		2,237
Equity in earnings of unconsolidated affiliates						204,962		204,962		-		(406,773)		3,151
		Operating income				144,482		207,199		395,394		(409,010)		338,065
Interest expense						27,282		-		2,256		-		29,538
	Earnings from continuing operations before income taxes					117,200		207,199		393,138		(409,010)		308,527
Income tax expense						48,239		-		1,515		-		49,754
	Net earnings from continuing operations					68,961		207,199		391,623		(409,010)		258,773
	Net earnings (loss) from discontinued operations					3,742		-		(971)		-		2,771
		Net earnings				72,703		207,199		390,652		(409,010)		261,544
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations					-		-		186,120		-		186,120
	Net earnings from discontinued operations					-		-		2,721		-		2,721
		Total net earnings attributable to noncontrolling interests				-		-		188,841		-		188,841
			Net earnings attributable to AmSurg Corp. common shareholders		$	72,703	$	207,199	$	201,811	$	(409,010)	$	72,703
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax				$	68,961	$	207,199	$	205,503	$	(409,010)	$	72,653
	Discontinued operations, net of income tax					3,742		-		(3,692)		-		50
			Net earnings attributable to AmSurg Corp. common shareholders		$	72,703	$	207,199	$	201,811	$	(409,010)	$	72,703
Net earnings and comprehensive income, net of income tax					$	72,703	$	207,199	$	390,652	$	(409,010)	$	261,544
	Less comprehensive income attributable to noncontrolling interests					-		-		188,841		-		188,841
		Comprehensive income attributable to AmSurg Corp.
				common shareholders	$	72,703	$	207,199	$	201,811	$	(409,010)	$	72,703

Condensed Consolidating Statement of Earnings and Comprehensive Income - Year Ended December 31, 2012 (In thousands)
							Guarantor		Non-Guarantor		Consolidating		Total
					Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Revenues					$	19,907	$	-	$	918,176	$	(14,901)	$	923,182
Operating expenses:
	Salaries and benefits					54,895		-		235,618		(450)		290,063
	Supply cost					-		-		131,055		-		131,055
	Other operating expenses					20,499		-		186,977		(14,451)		193,025
	Depreciation and amortization					2,860		-		26,990		-		29,850
		Total operating expenses				78,254		-		580,640		(14,901)		643,993
Equity in earnings of unconsolidated affiliates						178,137		178,137		-		(354,710)		1,564
		Operating income				119,790		178,137		337,536		(354,710)		280,753
Interest expense						14,803		-		2,164		-		16,967
	Earnings from continuing operations before income taxes					104,987		178,137		335,372		(354,710)		263,786
Income tax expense						40,810		-		1,554		-		42,364
	Net earnings from continuing operations					64,177		178,137		333,818		(354,710)		221,422
	Net (loss) earnings from discontinued operations					(1,614)		-		3,835		-		2,221
		Net earnings				62,563		178,137		337,653		(354,710)		223,643
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations					-		-		159,187		-		159,187
	Net earnings from discontinued operations					-		-		1,893		-		1,893
		Total net earnings attributable to noncontrolling interests				-		-		161,080		-		161,080
			Net earnings attributable to AmSurg Corp. common shareholders		$	62,563	$	178,137	$	176,573	$	(354,710)	$	62,563
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax				$	64,177	$	178,137	$	174,631	$	(354,710)	$	62,235
	Discontinued operations, net of income tax					(1,614)		-		1,942		-		328
			Net earnings attributable to AmSurg Corp. common shareholders		$	62,563	$	178,137	$	176,573	$	(354,710)	$	62,563
Net earnings and comprehensive income, net of income tax					$	62,563	$	178,137	$	337,653	$	(354,710)	$	223,643
	Less comprehensive income attributable to noncontrolling interests					-		-		161,080		-		161,080
		Comprehensive income attributable to AmSurg Corp.
				common shareholders	$	62,563	$	178,137	$	176,573	$	(354,710)	$	62,563

Condensed Consolidating Statement of Earnings and Comprehensive Income - Year Ended December 31, 2011 (In thousands)
							Guarantor		Non-Guarantor		Consolidating		Total
					Parent Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Revenues					$	11,253	$	-	$	768,823	$	(8,001)	$	772,075
Operating expenses:
	Salaries and benefits					42,739		-		196,358		(359)		238,738
	Supply cost					-		-		101,364		-		101,364
	Other operating expenses					19,468		-		156,521		(7,642)		168,347
	Depreciation and amortization					2,487		-		23,158		-		25,645
		Total operating expenses				64,694		-		477,401		(8,001)		534,094
Equity in earnings of unconsolidated affiliates						152,409		152,409		-		(304,205)		613
		Operating income				98,968		152,409		291,422		(304,205)		238,594
Interest expense						13,195		-		2,132		-		15,327
	Earnings from continuing operations before income taxes					85,773		152,409		289,290		(304,205)		223,267
Income tax expense						33,806		-		1,167		-		34,973
	Net earnings from continuing operations					51,967		152,409		288,123		(304,205)		188,294
	Net (loss) earnings from discontinued operations					(1,970)		-		3,790		-		1,820
		Net earnings				49,997		152,409		291,913		(304,205)		190,114
Less net earnings attributable to noncontrolling interests:
	Net earnings from continuing operations					-		-		138,269		-		138,269
	Net earnings from discontinued operations					-		-		1,848		-		1,848
		Total net earnings attributable to noncontrolling interests				-		-		140,117		-		140,117
			Net earnings attributable to AmSurg Corp. common shareholders		$	49,997	$	152,409	$	151,796	$	(304,205)	$	49,997
Amounts attributable to AmSurg Corp. common shareholders:
	Earnings from continuing operations, net of income tax				$	51,967	$	152,409	$	149,854	$	(304,205)	$	50,025
	Discontinued operations, net of income tax					(1,970)		-		1,942		-		(28)
			Net earnings attributable to AmSurg Corp. common shareholders		$	49,997	$	152,409	$	151,796	$	(304,205)	$	49,997
Net earnings					$	49,997	$	152,409	$	291,913	$	(304,205)	$	190,114
Other comprehensive income, net of income tax:
	Unrealized gain on interest rate swap, net of income tax					515		-		-		-		515
		Comprehensive income, net of income tax				50,512		152,409		291,913		(304,205)		190,629
	Less comprehensive income attributable to noncontrolling interests					-		-		140,117		-		140,117
		Comprehensive income attributable to AmSurg Corp.
				common shareholders	$	50,512	$	152,409	$	151,796	$	(304,205)	$	50,512

Condensed Consolidating Statement of Cash Flows - Year Ended December 31, 2013 (In thousands)
			Parent		Guarantor		Non-Guarantor		Consolidating		Total
			Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Cash flows from operating activities:
		Net cash flows provided by operating activities	$	45,127	$	208,773	$	426,572	$	(347,648)	$	332,824
Cash flows from investing activities:
	Acquisition of interests in surgery centers and related transactions			-		(74,288)		-		694		(73,594)
	Acquisition of property and equipment			(3,693)		-		(25,163)		-		(28,856)
	Proceeds from sale of interests in surgery centers			-		3,553		-		-		3,553
	Other			-		159		-		-		159
		Net cash flows used in investing activities		(3,693)		(70,576)		(25,163)		694		(98,738)
Cash flows from financing activities:
	Proceeds from long-term borrowings			152,700		-		9,504		-		162,204
	Repayment on long-term borrowings			(188,081)		-		(14,002)		-		(202,083)
	Distributions to owners, including noncontrolling interests			-		(138,875)		(392,922)		347,648		(184,149)
	Changes in intercompany balances with affiliates, net			88		-		(88)		-		-
	Other financing activities, net			(6,690)		678		1,090		(694)		(5,616)
		Net cash flows used in financing activities		(41,983)		(138,197)		(396,418)		346,954		(229,644)
Net increase (decrease) in cash and cash equivalents				(549)		-		4,991		-		4,442
Cash and cash equivalents, beginning of year				7,259		-		39,139		-		46,398
Cash and cash equivalents, end of year			$	6,710	$	-	$	44,130	$	-	$	50,840

Condensed Consolidating Statement of Cash Flows - Year Ended December 31, 2012 (In thousands)
			Parent		Guarantor		Non-Guarantor		Consolidating		Total
			Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Cash flows from operating activities:
		Net cash flows provided by (used in) operating activities	$	(83,605)	$	182,851	$	379,257	$	(182,851)	$	295,652
Cash flows from investing activities:
	Acquisition of interests in surgery centers and related transactions			(90,029)		(280,189)		-		92,830		(277,388)
	Acquisition of property and equipment			(3,681)		-		(25,183)		-		(28,864)
	Proceeds from sale of interests in surgery centers			-		7,309		-		-		7,309
		Net cash flows used in investing activities		(93,710)		(272,880)		(25,183)		92,830		(298,943)
Cash flows from financing activities:
	Proceeds from long-term borrowings			560,000		-		5,566		-		565,566
	Repayment on long-term borrowings			(381,220)		-		(12,944)		-		(394,164)
	Distributions to owners, including noncontrolling interests			-		-		(345,792)		182,851		(162,941)
	Capital contributions			-		90,029		-		(90,029)		-
	Changes in intercompany balances with affiliates, net			(2,666)		-		2,666		-		-
	Other financing activities, net			(70)		-		3,381		(2,801)		510
		Net cash flows provided by (used in) financing activities		176,044		90,029		(347,123)		90,021		8,971
Net increase (decrease) in cash and cash equivalents				(1,271)		-		6,951		-		5,680
Cash and cash equivalents, beginning of year				8,530		-		32,188		-		40,718
Cash and cash equivalents, end of year			$	7,259	$	-	$	39,139	$	-	$	46,398

Condensed Consolidating Statement of Cash Flows - Year Ended December 31, 2011 (In thousands)
			Parent		Guarantor		Non-Guarantor		Consolidating		Total
			Issuer		Subsidiaries		Subsidiaries		Adjustments		Consolidated
Cash flows from operating activities:
		Net cash flows provided by (used in) operating activities	$	(67,911)	$	151,558	$	311,334	$	(151,558)	$	243,423
Cash flows from investing activities:
	Acquisition of interests in surgery centers and related transactions			(84,597)		(243,429)		-		88,803		(239,223)
	Acquisition of property and equipment			(2,858)		-		(19,312)		-		(22,170)
	Proceeds from sale of interests in surgery centers			-		7,274		(248)		-		7,026
		Net cash flows used in investing activities		(87,455)		(236,155)		(19,560)		88,803		(254,367)
Cash flows from financing activities:
	Proceeds from long-term borrowings			281,100		-		7,769		-		288,869
	Repayment on long-term borrowings			(118,100)		-		(11,007)		-		(129,107)
	Distributions to owners, including noncontrolling interests			-		-		(290,282)		151,558		(138,724)
	Capital contributions			-		84,597		-		(84,597)		-
	Changes in intercompany balances with affiliates, net			(178)		-		178		-		-
	Other financing activities, net			(3,609)		-		4,292		(4,206)		(3,523)
		Net cash flows provided by (used in) financing activities		159,213		84,597		(289,050)		62,755		17,515
Net increase in cash and cash equivalents				3,847		-		2,724		-		6,571
Cash and cash equivalents, beginning of year				4,683		-		29,464		-		34,147
Cash and cash equivalents, end of year			$	8,530	$	-	$	32,188	$	-	$	40,718