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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
(Mark One)
For the quarterly period ended
Or
For the transition period from to
Commission file number
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
(Zip Code) |
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(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.
Class of Common Stock |
Outstanding at October 28, 2024 |
Voting common stock, $.01 par value |
HCA HEALTHCARE, INC.
Form 10-Q
September 30, 2024
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Page of |
Part I. |
Financial Information |
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Item 1. |
Financial Statements (Unaudited): |
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3 |
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4 |
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Condensed Consolidated Balance Sheets — September 30, 2024 and December 31, 2023 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Item 4. |
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Part II. |
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Item 1. |
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Item 1A. |
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Item 2. |
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Item 5. |
Other Information |
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Item 6. |
30 |
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31 |
2
HCA HEALTHCARE, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Unaudited
(Dollars in millions, except per share amounts)
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Quarter |
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Nine Months |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues |
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$ |
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Salaries and benefits |
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Supplies |
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Other operating expenses |
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Equity in (earnings) losses of affiliates |
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Depreciation and amortization |
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Interest expense |
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Losses (gains) on sales of facilities |
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Income before income taxes |
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Provision for income taxes |
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Net income |
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Net income attributable to noncontrolling interests |
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Net income attributable to HCA Healthcare, Inc. |
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$ |
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$ |
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$ |
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Per share data: |
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Basic earnings |
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Diluted earnings |
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Shares used in earnings per share calculations (in millions): |
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Basic |
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Diluted |
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The accompanying notes are an integral part of the condensed consolidated financial statements.
3
HCA HEALTHCARE, INC.
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS
FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Unaudited
(Dollars in millions)
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Quarter |
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Nine Months |
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2024 |
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2023 |
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2023 |
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Net income |
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Other comprehensive income (loss) before taxes: |
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Foreign currency translation |
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Unrealized gains (losses) on available-for-sale securities |
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Defined benefit plans |
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Pension costs included in salaries and benefits |
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Other comprehensive income (loss) before taxes |
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Income taxes (benefits) related to other comprehensive income items |
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Other comprehensive income (loss) |
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Comprehensive income |
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Comprehensive income attributable to noncontrolling interests |
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Comprehensive income attributable to HCA Healthcare, Inc. |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of the condensed consolidated financial statements.
4
HCA HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(Dollars in millions)
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September 30, |
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December 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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Accounts receivable |
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Inventories |
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Other |
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Property and equipment, at cost |
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Accumulated depreciation |
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Investments of insurance subsidiaries |
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Investments in and advances to affiliates |
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Goodwill and other intangible assets |
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Right-of-use operating lease assets |
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Other |
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$ |
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$ |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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Accrued salaries |
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Other accrued expenses |
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Long-term debt due within one year |
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Long-term debt, less debt issuance costs and discounts of $ |
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Professional liability risks |
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Right-of-use operating lease obligations |
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Income taxes and other liabilities |
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Stockholders’ equity: |
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Common stock $ |
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Accumulated other comprehensive loss |
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Retained deficit |
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Stockholders’ deficit attributable to HCA Healthcare, Inc. |
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Noncontrolling interests |
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$ |
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$ |
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The accompanying notes are an integral part of the condensed consolidated financial statements.
5
HCA HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
FOR THE QUARTERS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Unaudited
(Dollars in millions)
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Equity (Deficit) Attributable to HCA Healthcare, Inc. |
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Capital |
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Accumulated |
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Equity |
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Common Stock |
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in Excess |
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Other |
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Attributable to |
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Shares |
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Par |
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of Par |
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Comprehensive |
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Retained |
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Noncontrolling |
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(in millions) |
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Value |
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Value |
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Loss |
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Deficit |
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Interests |
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Total |
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Balances, December 31, 2022 |
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$ |
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$ |
— |
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Comprehensive income |
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Repurchase of common stock |
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Share-based benefit plans |
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Cash dividends declared |
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Distributions |
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Other |
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Balances, March 31, 2023 |
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Comprehensive income |
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Repurchase of common stock |
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Share-based benefit plans |
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Cash dividends declared |
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Distributions |
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Other |
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Balances, June 30, 2023 |
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Comprehensive income (loss) |
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Repurchase of common stock |
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Share-based benefit plans |
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Cash dividends declared |
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Distributions |
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Other |
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Balances, September 30, 2023 |
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Comprehensive income |
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Repurchase of common stock |
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Share-based benefit plans |
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Cash dividends declared |
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Distributions |
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Other |
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Balances, December 31, 2023 |
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— |
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Comprehensive income (loss) |
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Repurchase of common stock |
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Share-based benefit plans |
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Cash dividends declared |
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Distributions |
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Other |
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Balances, March 31, 2024 |
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— |
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Comprehensive income |
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— |
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Repurchase of common stock |
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|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Share-based benefit plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash dividends declared |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Balances, June 30, 2024 |
|
|
|
|
|
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||||
Comprehensive income |
|
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|
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|
|
|
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|
|
|
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|
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|
|||||||
Repurchase of common stock |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Share-based benefit plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash dividends declared |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||||
Balances, September 30, 2024 |
|
|
|
|
$ |
|
|
$ |
— |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
The accompanying notes are an integral part of the condensed consolidated financial statements.
6
HCA HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Unaudited
(Dollars in millions)
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
|
|
$ |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Increase (decrease) in cash from operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
|
|
|
( |
) |
|
Inventories and other assets |
|
|
|
|
|
( |
) |
|
Accounts payable and accrued expenses |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
|
|
||
Income taxes |
|
|
( |
) |
|
|
|
|
Losses (gains) on sales of facilities |
|
|
( |
) |
|
|
|
|
Amortization of debt issuance costs and discounts |
|
|
|
|
|
|
||
Share-based compensation |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
( |
) |
|
|
( |
) |
Acquisition of hospitals and health care entities |
|
|
( |
) |
|
|
( |
) |
Sales of hospitals and health care entities |
|
|
|
|
|
|
||
Change in investments |
|
|
( |
) |
|
|
( |
) |
Other |
|
|
|
|
|
( |
) |
|
Net cash used in investing activities |
|
|
( |
) |
|
|
( |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Issuance of long-term debt |
|
|
|
|
|
|
||
Net change in revolving credit facilities |
|
|
( |
) |
|
|
( |
) |
Repayment of long-term debt |
|
|
( |
) |
|
|
( |
) |
Distributions to noncontrolling interests |
|
|
( |
) |
|
|
( |
) |
Payment of debt issuance costs |
|
|
( |
) |
|
|
( |
) |
Payment of dividends |
|
|
( |
) |
|
|
( |
) |
Repurchase of common stock |
|
|
( |
) |
|
|
( |
) |
Other |
|
|
( |
) |
|
|
( |
) |
Net cash used in financing activities |
|
|
( |
) |
|
|
( |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
|
|
|
|
||
Change in cash and cash equivalents |
|
|
|
|
|
( |
) |
|
Cash and cash equivalents at beginning of period |
|
|
|
|
|
|
||
Cash and cash equivalents at end of period |
|
$ |
|
|
$ |
|
||
Interest payments |
|
$ |
|
|
$ |
|
||
Income tax payments, net |
|
$ |
|
|
$ |
|
The accompanying notes are an integral part of the condensed consolidated financial statements.
7
HCA HEALTHCARE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 — BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
HCA Healthcare, Inc. is a holding company whose affiliates own and operate hospitals and related health care entities. The term “affiliates” includes direct and indirect subsidiaries of HCA Healthcare, Inc. and partnerships and joint ventures in which such subsidiaries are partners. At September 30, 2024, these affiliates owned and operated