HCA Holdings 2011 Annual Report Download - page 88

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HCA HOLDINGS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS — (Continued)
Effects of Inflation and Changing Prices (Continued)
IRS Disputes
We are contesting, before the IRS Appeals Division, certain claimed deficiencies and adjustments proposed
by the IRS Examination Division in connection with its audit of HCA Inc.’s 2005 and 2006 federal income tax
returns. The disputed items include the timing of recognition of certain patient service revenues, the deductibility
of certain debt retirement costs and our method for calculating the tax allowance for doubtful accounts. The IRS
Examination Division began an audit of HCA Inc.’s 2007, 2008 and 2009 federal income tax returns in 2010.
Management believes HCA Holdings, Inc., its predecessors and affiliates properly reported taxable income
and paid taxes in accordance with applicable laws and agreements established with the IRS and final resolution
of these disputes will not have a material, adverse effect on our results of operations or financial position.
However, if payments due upon final resolution of these issues exceed our recorded estimates, such resolutions
could have a material, adverse effect on our results of operations or financial position.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
Information with respect to this Item is provided under the caption “Market Risk” under Item 7,
“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Item 8. Financial Statements and Supplementary Data
Information with respect to this Item is contained in our consolidated financial statements indicated in the
Index to Consolidated Financial Statements on Page F-1 of this annual report on Form 10-K.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A. Controls and Procedures
1. Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our principal executive
officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as
such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). Based on this evaluation, our principal executive officer and our principal financial officer
concluded that our disclosure controls and procedures were effective as of the end of the period covered by this
annual report.
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