HCA Holdings 2011 Annual Report Download - page 153

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HCA HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
NOTE 18 — SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION AND
OTHER COLLATERAL-RELATED INFORMATION (Continued)
Healthtrust, Inc. — The Hospital Company (“Healthtrust”) is the first-tier subsidiary of HCA Inc. The
common stock of Healthtrust has been pledged as collateral for the senior secured credit facilities and senior
secured notes described in Note 10. Rule 3-16 of Regulation S-X under the Securities Act requires the filing of
separate financial statements for any affiliate of the registrant whose securities constitute a substantial portion of
the collateral for any class of securities registered or being registered. We believe the separate financial
statements requirement applies to Healthtrust due to the pledge of its common stock as collateral for the senior
secured notes. Due to the corporate structure relationship of HCA and Healthtrust, HCA’s operating subsidiaries
are also the operating subsidiaries of Healthtrust. The corporate structure relationship, combined with the
application of push-down accounting in Healthtrust’s consolidated financial statements related to HCA’s debt
and financial instruments, results in the consolidated financial statements of Healthtrust being substantially
identical to the consolidated financial statements of HCA. The consolidated financial statements of HCA and
Healthtrust present the identical amounts for revenues, expenses, net income, assets, liabilities, total
stockholders’ deficit, net cash provided by operating activities, net cash used in investing activities and net cash
used in financing activities. Certain individual line items in the HCA consolidated statements of stockholders’
deficit are combined into one line item in the Healthtrust consolidated statements of stockholder’s deficit.
Reconciliations of the HCA Holdings, Inc. Consolidated Statements of Stockholders’ Deficit presentation to
the Healthtrust, Inc. — The Hospital Company Consolidated Statements of Stockholder’s Deficit presentation for
the years ended December 31, 2011, 2010 and 2009 are as follows (dollars in millions):
2011 2010 2009
Presentation in HCA Holdings, Inc. Consolidated Statements of Stockholders’ Deficit:
Share-based benefit plans ....................................................... $35 $ 43 $47
Reclassification of certain equity securities with contingent redemption rights .............. 141 ——
Other ....................................................................... 36 120 14
Presentation in Healthtrust, Inc. — The Hospital Company Consolidated Statements of
Stockholder’s Deficit:
Distributions from HCA Holdings, Inc., net of contributions to HCA Holdings, Inc. ......... $212 $163 $61
Due to the consolidated financial statements of Healthtrust being substantially identical to the consolidated
financial statements of HCA, except for the items presented in the tables above, the separate consolidated
financial statements of Healthtrust are not presented.
NOTE 19 — SUBSEQUENT EVENT
On February 3, 2012, our Board of Directors declared a distribution to the Company’s stockholders and
holders of vested stock awards. The distribution will be $2.00 per share and vested stock award, or approximately
$975 million in the aggregate. The distribution is expected to be paid on February 29, 2012 to holders of record
on February 16, 2012. The distribution is expected to be funded using funds available under our existing senior
secured credit facilities. Pursuant to the terms of our stock award plans, the holders of nonvested stock options
and stock appreciation rights will receive a $2.00 per share reduction (subject to certain tax related limitations for
certain stock awards that resulted in deferred distributions for a portion of the declared distribution, which will be
paid upon the vesting of the applicable stock award) to the exercise price of their share-based awards. The
holders of any nonvested restricted share units will be paid $2.00 per unit upon the vesting of the applicable
restricted share units.
F-48