HCA Holdings 2012 Annual Report Download - page 128

HCA HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 3 — ACQUISITIONS AND DISPOSITIONS (continued)
Other Acquisitions and Dispositions
During 2012, we paid $58 million and assumed liabilities of $33 million to acquire a hospital and paid
$200 million to acquire other nonhospital health care entities. 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 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
$232 million, $68 million and $125 million in 2012, 2011 and 2010, 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 2012, we received proceeds of $30 million and recognized a net pretax gain of $15 million
($9 million after tax) related to the sales of real estate investments. 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.
NOTE 4 — IMPAIRMENTS OF LONG-LIVED ASSETS
There were no impairments of long-lived assets for 2012 and 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.
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 in 2010.
NOTE 5 — INCOME TAXES
The provision for income taxes consists of the following (dollars in millions):
2012 2011 2010
Current:
Federal ....................................... $ 604 $(119) $ 401
State ......................................... 58 (12) 26
Foreign ....................................... 43 44 33
Deferred:
Federal ....................................... 167 714 161
State ......................................... (8) 71 17
Foreign ....................................... 24 21 20
$ 888 $ 719 $ 658
F-20