HCA Holdings 2011 Annual Report Download - page 125

HCA HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE 3 — ACQUISITIONS AND DISPOSITIONS (Continued)
HealthONE Acquisition (Continued)
The acquired HealthONE operating results have been included in the consolidated income statements since
the acquisition date. The revenues and net income attributable to HCA Holdings, Inc. related to the acquired
HealthONE operations for the period from November 1, 2011 through December 31, 2011 were $347 million and
$15 million, respectively. The unaudited pro forma combined summary of our operations gives effect to
including the acquired HealthONE operating results as if the acquisition had occurred as of January 1, 2010,
follows (in millions):
Years Ended
December 31,
2011 2010
Pro forma revenues ........................................ $31,383 $29,925
Pro forma net income attributable to HCA Holdings, Inc. .......... 2,507 1,257
Pro forma adjustments to net income attributable to HCA Holdings, Inc. include adjustments to record
HealthONE’s operating results on a consolidated basis and eliminate the equity method operating results, to
record depreciation expense based on the estimated fair value assigned to the long-lived assets acquired, to
record interest expense assuming the increase in long-term debt used to fund the acquisition had occurred as of
January 1, 2010 and to record the related tax effects. These pro forma results are not necessarily indicative of the
actual results of operations that would have occurred if the acquisition had occurred on January 1, 2010.
Other Acquisitions and Dispositions
During 2011, we paid $136 million to acquire a hospital and $96 million to acquire other nonhospital health
care entities. During 2010, we paid $163 million to acquire two hospitals and $70 million to acquire other health
care entities. During 2009, we paid $61 million to acquire nonhospital health care entities. Purchase price
amounts have been allocated to the related assets acquired and liabilities assumed based upon their respective fair
values. The purchase price paid in excess of the fair value of identifiable net assets of these acquired entities
aggregated $68 million, $125 million and $5 million in 2011, 2010 and 2009, respectively. The consolidated
financial statements include the accounts and operations of the acquired entities subsequent to the respective
acquisition dates. The pro forma effects of these acquired entities on our results of operations for periods prior to
the respective acquisition dates were not significant.
During 2011, we received proceeds of $281 million and recognized a net pretax gain of $142 million
($80 million after tax) related to the sales of a hospital facility and our investment in a hospital joint venture.
During 2010, we received proceeds of $37 million and recognized a net pretax gain of $4 million ($2 million
after tax) from sales of nonhospital health care entities and real estate investments. During 2009, we received
proceeds of $3 million and recognized a net pretax loss of $8 million ($5 million after tax) on the sales of three
hospitals. We also received proceeds of $38 million and recognized a net pretax loss of $7 million ($4 million
after tax) from sales of other health care entities and real estate investments.
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