HCA Holdings 2012 Annual Report Download - page 86

HCA HOLDINGS, INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
Liquidity and Capital Resources (continued)
During 2012, we received cash of $30 million from sales of real estate investments and other health care
entities. We also received net cash proceeds of $16 million related to net changes in our investments. During
2011, we received cash of $281 million from sales of one hospital, other health care entities and real estate
investments. We also received net cash proceeds of $80 million related to net changes in our investments. During
2010, we received cash proceeds of $37 million from sales of other health care entities and real estate
investments. We also received net cash proceeds of $472 million related to net changes in our investments.
Cash used in financing activities totaled $1.780 billion in 2012, $976 million in 2011 and $1.947 billion in
2010. During 2012, we had an increase of $1.724 billion to our indebtedness, net of debt repayments. During
2011, we received cash of $2.506 billion related to the issuance of common stock in conjunction with our initial
public offering; we used cash of $1.503 billion for repurchases of common stock; and we used cash proceeds
from issuance of common stock and available cash provided by operations to make net debt repayments of
$1.589 billion. During 2010, we received net proceeds of $2.533 billion from our debt issuance and debt
repayment activities. During 2012, 2011 and 2010, we paid $3.148 billion, $31 million and $4.257 billion,
respectively, in distributions to our stockholders. During 2010, we received contributions from noncontrolling
interests of $57 million. During 2012, 2011 and 2010, we made distributions to noncontrolling interests of
$401 million, $378 million and $342 million, respectively. We paid debt issuance costs of $62 million,
$92 million and $50 million for 2012, 2011 and 2010, respectively. During 2012, 2011 and 2010, we received
income tax benefits of $174 million, $63 million and $114 million, respectively, for certain items (primarily the
cash distributions to holders of our stock options and exercises of stock options) that were deductible expenses
for tax purposes, but were recognized as adjustments to stockholders’ deficit for financial reporting purposes. We
or our affiliates, including affiliates of the Investors, may in the future repurchase portions of our debt or equity
securities, subject to certain limitations, from time to time in either the open market or through privately
negotiated transactions, in accordance with applicable SEC and other legal requirements. The timing, prices, and
sizes of purchases depend upon prevailing trading prices, general economic and market conditions, and other
factors, including applicable securities laws. Funds for the repurchase of debt or equity securities have, and are
expected to, come primarily from cash generated from operations and borrowed funds.
In addition to cash flows from operations, available sources of capital include amounts available under our
senior secured credit facilities ($2.964 billion as of December 31, 2012 and $3.515 billion as of January 31,
2013) and anticipated access to public and private debt and equity markets.
During 2012, our Board of Directors declared three distributions to our stockholders and holders of certain
vested share-based awards. The distributions totaled $6.50 per share and vested share-based award, or
$3.142 billion in the aggregate. The distributions were funded using funds available under our existing senior
secured credit facilities and proceeds from the December 2012 issuance of $1.000 billion aggregate principal
amount of 6
1
⁄ 4 % senior unsecured notes due 2021.
During 2010, our Board of Directors declared three distributions to our stockholders and holders of stock
options. The distributions totaled $9.43 per share and vested stock option, or $4.332 billion in the aggregate. The
distributions were funded using funds available under our existing senior secured credit facilities and proceeds
from the November 2010 issuance of $1.525 billion aggregate principal amount of 7
3
⁄ 4 % senior unsecured notes
due 2021.
Investments of our professional liability insurance subsidiaries, to maintain statutory equity and pay claims,
totaled $570 million and $628 million at December 31, 2012 and 2011, respectively. The insurance subsidiary
maintained net reserves for professional liability risks of $352 million and $410 million at December 31, 2012
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