HCA Holdings 2011 Annual Report Download - page 140

HCA HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE 13 — CAPITAL STOCK (Continued)
Stockholder Agreements and Equity Securities with Contingent Redemption Rights
Prior to the consummation of the initial public offering of our common stock, certain employees could elect
to have the Company redeem their common stock and vested options in the event of death or permanent
disability, pursuant to the terms of their management stockholder agreements. The consummation of the initial
public offering of our common stock effectively terminated the contingent redemption rights and the applicable
amounts have been reclassified back to stockholders’ equity.
NOTE 14 — EMPLOYEE BENEFIT PLANS
We maintain contributory, defined contribution benefit plans that are available to employees who meet
certain minimum requirements. Certain of the plans require that we match specified percentages of participant
contributions up to certain maximum levels (generally, 100% of the first 3% to 9%, depending upon years of
vesting service, of compensation deferred by participants). The cost of these plans totaled $321 million for 2011,
$307 million for 2010 and $283 million for 2009. Our contributions are funded periodically during each year.
We maintain the noncontributory, nonqualified Restoration Plan to provide certain retirement benefits for
eligible employees. Eligibility for the Restoration Plan is based upon earning eligible compensation in excess of
the Social Security Wage Base and attaining 1,000 or more hours of service during the plan year. Company
credits to participants’ account balances (the Restoration Plan is not funded) depend upon participants’
compensation, years of vesting service and certain IRS limitations related to the HCA 401(k) plan. Benefits
expense under this plan was $25 million for 2011, $19 million for 2010 and $26 million for 2009. Accrued
benefits liabilities under this plan totaled $105 million at December 31, 2011 and $84 million at December 31,
2010.
We maintain a Supplemental Executive Retirement Plan (“SERP”) for certain executives. The plan is
designed to ensure that upon retirement the participant receives the value of a prescribed life annuity from the
combination of the SERP and our other benefit plans. Benefits expense under the plan was $33 million for 2011,
$27 million for 2010 and $24 million for 2009. Accrued benefits liabilities under this plan totaled $237 million at
December 31, 2011 and $197 million at December 31, 2010.
We maintain defined benefit pension plans which resulted from certain hospital acquisitions in prior years.
Benefits expense under these plans was $37 million for 2011, $30 million for 2010, and $39 million for 2009.
Accrued benefits liabilities under these plans totaled $147 million at December 31, 2011 and $131 million at
December 31, 2010.
NOTE 15 — SEGMENT AND GEOGRAPHIC INFORMATION
We operate in one line of business, which is operating hospitals and related health care entities. Our
operations are structured into three geographically organized groups: the National, Southwest and Central
Groups. During February 2011, we reorganized our operational groups and have restated the prior period
amounts to reflect this reorganization. At December 31, 2011, the National Group includes 64 hospitals located
in Florida, South Carolina, southern Georgia, Alaska, California, Nevada, Utah and Idaho, the Southwest Group
includes 46 hospitals located in Colorado, Texas, Oklahoma and the Wichita, Kansas market, and the Central
Group includes 47 hospitals located in Louisiana, Indiana, Kentucky, Tennessee, Virginia, New Hampshire,
northern Georgia and the Kansas City market. We also operate six hospitals in England, and these facilities are
included in the Corporate and other group.
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