Stockholders Equity

6 Months Ended

Jun. 30, 2011

Stockholders' Equity & Comprehensive Income [Abstract]

STOCKHOLDERS' EQUITY

9. STOCKHOLDERS’ EQUITY

     Authorized capital shares of the Company include 400,000,000 shares of capital stock consisting of 300,000,000 shares of common stock and 100,000,000 shares of preferred stock. Each of the aforementioned classes of capital stock has a par value of $0.01 per share. Shares of preferred stock, none of which were outstanding as of June 30, 2011, may be issued in one or more series having such rights, preferences and other provisions as determined by the Board of Directors without approval by the holders of common stock.

     On September 15, 2010, the Company commenced a new open market repurchase program for up to 4,000,000 shares of the Company’s common stock, not to exceed $100 million in repurchases. This program will conclude at the earliest of three years from the commencement date, when the maximum number of shares has been repurchased or when the maximum dollar amount has been expended. During the three and six months ended June 30, 2011, the Company repurchased and retired 1,763,566 shares at a weighted-average price of $28.31 under this program. The cumulative number of shares that have been repurchased and retired under this program through June 30, 2011 is 2,214,838 shares at a weighted-average price of $28.82 per share.

     On December 9, 2009, the Company commenced the predecessor open market repurchase program for up to 3,000,000 shares of the Company’s common stock, not to exceed $100 million in repurchases. This program concluded in September 2010 when purchases approximated the total permitted maximum dollar amount allowed under the program. During the three and six months ended June 30, 2010, the Company repurchased and retired 356,000 shares at a weighted-average price of $34.24 under this program. During the year ended December 31, 2010, the Company repurchased and retired 2,964,528 shares, which is the cumulative number of shares that were repurchased under this program, at a weighted-average price of $33.69 per share.

     The following schedule presents the reconciliation of the carrying amount of total equity, equity attributable to the Company, and equity attributable to the noncontrolling interests for the six-month period ended June 30, 2011 (in thousands):

				Community Health Systems, Inc. Stockholders
													Accumulated
	Redeemable						Additional						Other								Total
	Noncontrolling			Common			Paid-in			Treasury			Comprehensive			Retained		Noncontrolling			Stockholders’
	Interests			Stock			Capital			Stock			Income (Loss)			Earnings		Interests			Equity
Balance, December 31, 2010	$	387,472		$	936		$	1,126,751		$	(6,678	)	$	(230,927	)	$	1,299,382	$	60,913		$	2,250,377
Comprehensive income:
Net income		25,211			—			—			—			—			96,713		9,948			106,661
Net change in fair value of interest rate swaps		—			—			—			—			27,477			—		—			27,477
Net change in fair value of available-for-sale securities		—			—			—			—			1,338			—		—			1,338
Amortization and recognition of unrecognized pension cost components		—			—			—			—			1,579			—		—			1,579
Total comprehensive income		25,211			—			—			—			30,394			96,713		9,948			137,055
Distributions to noncontrolling interests, net of contributions		(19,387	)		—			—			—			—			—		(9,828	)		(9,828	)
Purchase of subsidiary shares from noncontrolling interests		(2,792	)		—			(498	)		—			—			—		—			(498	)
Other reclassifications of noncontrolling interests		(2,004	)		—			—			—			—			—		272			272
Adjustment to redemption value of redeemable noncontrolling interests		(11,842	)		—			11,842			—			—			—		—			11,842
Repurchases of common stock		—			(18	)		(50,002	)		—			—			—		—			(50,020	)
Issuance of common stock in connection with the exercise of stock options		—			6			18,831			—			—			—		—			18,837
Cancellation of restricted stock for tax withholdings on vested shares		—			(3	)		(13,110	)		—			—			—		—			(13,113	)
Excess tax benefit from exercise of stock options		—			—			4,659			—			—			—		—			4,659
Share-based compensation		—			11			20,732			—			—			—		—			20,743
Balance, June 30, 2011	$	376,658		$	932		$	1,119,205		$	(6,678	)	$	(200,533	)	$	1,396,095	$	61,305		$	2,370,326

     The following schedule discloses the effects of changes in the Company’s ownership interest in its less-than-wholly-owned subsidiaries on Community Health Systems, Inc. stockholders’ equity (in thousands):

	Six Months Ended
	June 30, 2011
Net income attributable to Community Health Systems, Inc.	$	96,713
Transfers to the noncontrolling interests:
Net decrease in Community Health Systems, Inc. paid-in capital for purchase of subsidiary partnership interests		(498	)
Net transfers to the noncontrolling interests		(498	)
Change to Community Health Systems, Inc. stockholders’ equity from net income attributable to Community Health Systems, Inc. and transfers to noncontrolling interests	$	96,215