HCA Holdings 2011 Annual Report Download - page 126

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HCA HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE 4 — IMPAIRMENTS OF LONG-LIVED ASSETS
There were no impairments of long-lived assets for 2011. During 2010, we recorded pretax charges of
$123 million to reduce the carrying value of identified assets to estimated fair value. The $123 million asset
impairment includes $57 million related to a hospital facility in our Central Group, $5 million related to other
health care entity investments in our National Group, $17 million related to a hospital facility in our Southwest
Group and $44 million related to Corporate and other, which includes $35 million for the writeoff of capitalized
engineering and design costs related to certain building safety requirements (California earthquake standards)
that have been revised. During 2009, we recorded pretax charges of $43 million to reduce the carrying value of
identified assets to estimated fair value. The $43 million asset impairment includes $15 million related to certain
hospital facilities and other health care entity investments in our Central Group, $16 million related to other
health care entity investments in our National Group and $12 million related to certain hospital facilities in our
Southwest Group.
The asset impairment charges did not have a significant impact on our operations or cash flows and are not
expected to significantly impact cash flows for future periods. The impairment charges affected our property and
equipment asset category by $109 million and $24 million in 2010 and 2009, respectively.
NOTE 5 — INCOME TAXES
The provision for income taxes consists of the following (dollars in millions):
2011 2010 2009
Current:
Federal .................................................... $(119) $401 $ 809
State ...................................................... (12) 26 75
Foreign .................................................... 44 33 21
Deferred:
Federal .................................................... 714 161 (274)
State ...................................................... 71 17 (37)
Foreign .................................................... 21 20 33
$ 719 $658 $ 627
The provision for income taxes reflects $100 million, $69 million and $18 million ($63 million, $44 million
and $12 million net of tax, respectively) reductions in interest related to taxing authority examinations for the
years ended December 31, 2011, 2010 and 2009, respectively.
A reconciliation of the federal statutory rate to the effective income tax rate follows:
2011 2010 2009
Federal statutory rate ............................................... 35.0% 35.0% 35.0%
State income taxes, net of federal tax benefit ............................. 2.0 2.7 3.2
Change in liability for uncertain tax positions ............................ 1.0 0.3 (0.2)
Nontaxable gain on acquisition of controlling interest in equity investment ..... (13.8) ——
Tax exempt interest income .......................................... (0.2) (0.4) (0.8)
Income attributable to noncontrolling interests from consolidated partnerships . . (2.4) (5.8) (6.0)
Other items, net .................................................... (1.4) (2.3) 0.1
Effective income tax rate ............................................ 20.2% 29.5% 31.3%
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