Stockholders' Deficit

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

STOCKHOLDERS' DEFICIT

10. STOCKHOLDERS’ DEFICIT

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 September 30, 2023, 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.

The Company is a holding company which operates through its subsidiaries. The ABL Facility and the indentures governing each series of the Company’s outstanding notes contain various covenants under which the assets of the subsidiaries of the Company are subject to certain restrictions relating to, among other matters, dividends and distributions, as referenced in the paragraph below.

The ABL Facility and the indentures governing each series of the Company’s outstanding notes restrict the Company’s subsidiaries from, among other matters, paying dividends and making distributions to the Company, which thereby limits the Company’s ability to pay dividends and/or repurchase stock. As of September 30, 2023, under the most restrictive test in these agreements (and subject to certain exceptions), the Company has approximately $300 million of capacity to pay permitted dividends and/or repurchase shares of stock or make other restricted payments.

The schedule below presents the reconciliation of the carrying amount of total equity, equity attributable to the Company’s stockholders, and equity attributable to noncontrolling interests as of September 30, 2023, and during each of the three-month periods following December 31, 2022 (in millions). Other reclassifications of noncontrolling interests reflects reclassification of amounts from redeemable noncontrolling interests to noncontrolling interests due to the expiration of redemption features.

				Community Health Systems, Inc. Stockholders
	Redeemable Noncontrolling Interest			Common Stock		Additional Paid-In Capital			Accumulated Other Comprehensive (Loss) Income			Accumulated Deficit			Noncontrolling Interest			Total Stockholders’ Deficit
Balance, December 31, 2022	$	541		$	1	$	2,084		$	(21	)	$	(3,431	)	$	92		$	(1,275	)
Comprehensive income (loss)		21			—		—			3			(51	)		11			(37	)
Distributions to noncontrolling interests		(33	)		—		—			—			—			(11	)		(11	)
Purchases of subsidiary shares from noncontrolling    interests		(1	)		—		—			—			—			—			—
Contributions from noncontrolling interests		1			—		—			—			—			1			1
Adjustment to redemption value of redeemable    noncontrolling interests		32			—		(32	)		—			—			—			(32	)
Cancellation of restricted stock for tax    withholdings on vested shares		—			—		(4	)		—			—			—			(4	)
Share-based compensation		—			—		6			—			—			—			6
Balance, March 31, 2023		561			1		2,054			(18	)		(3,482	)		93			(1,352	)
Comprehensive income (loss)		28			—		—			(1	)		(38	)		11			(28	)
Distributions to noncontrolling interests		(21	)		—		—			—			—			(19	)		(19	)
Contributions from noncontrolling interests		—			—		—			—			—			1			1
Purchases of subsidiary shares from noncontrolling    interests		(6	)		—		5			—			—			—			5
Noncontrolling interest in acquired entity		7			—		—			—			—			—			—
Adjustment to redemption value of redeemable    noncontrolling interests		14			—		(14	)		—			—			—			(14	)
Share-based compensation		—			—		4			—			—			—			4
Balance, June 30, 2023		583			1		2,049			(19	)		(3,520	)		86			(1,403	)
Comprehensive income (loss)		12			—		—			(3	)		(91	)		27			(67	)
Distributions to noncontrolling interests		(8	)		—		—			—			—			(17	)		(17	)
Other reclassifications of noncontrolling interests		(265	)		—		122			(1	)		—			145			266
Adjustment to redemption value of redeemable    noncontrolling interests		7			—		(7	)		—			—			—			(7	)
Share-based compensation		—			—		6			—			—			—			6
Balance, September 30, 2023	$	329		$	1	$	2,170		$	(23	)	$	(3,611	)	$	241		$	(1,222	)

The following schedule presents the reconciliation of the carrying amount of total equity, equity attributable to the Company’s stockholders, and equity attributable to the noncontrolling interests as of September 30, 2022, and during each of the three-month periods following December 31, 2021 (in millions):

				Community Health Systems, Inc. Stockholders
	Redeemable Noncontrolling Interest			Common Stock		Additional Paid-In Capital			Accumulated Other Comprehensive (Loss) Income (1)			Accumulated Deficit			Noncontrolling Interest			Total Stockholders’ Deficit (1)
Balance, December 31, 2021	$	480		$	1	$	2,118		$	(14	)	$	(3,477	)	$	82		$	(1,290	)
Comprehensive income (loss)		16			—		—			(8	)		(1	)		15			6
Distributions to noncontrolling interests		(12	)		—		—			—			—			(17	)		(17	)
Purchases of subsidiary shares from noncontrolling    interests		1			—		(1	)		—			—			—			(1	)
Contributions from noncontrolling interests		1			—		—			—			—			—			—
Adjustment to redemption value of redeemable    noncontrolling interests		7			—		(7	)		—			—			—			(7	)
Cancellation of restricted stock for tax    withholdings on vested shares		—			—		(8	)		—			—			—			(8	)
Share-based compensation		—			—		5			—			—			—			5
Balance, March 31, 2022		493			1		2,107			(22	)		(3,478	)		80			(1,312	)
Comprehensive income (loss)		21			—		—			(6	)		(326	)		7			(324	)
Distributions to noncontrolling interests		(39	)		—		—			—			—			(5	)		(5	)
Noncontrolling interest in acquired entity		3			—		—			—			—			2			2
Adjustment to redemption value of redeemable    noncontrolling interests		20			—		(20	)		—			—			—			(20	)
Share-based compensation		—			—		3			—			—			—			3
Balance, June 30, 2022		498			1		2,090			(27	)		(3,804	)		84			(1,656	)
Comprehensive income (loss)		30			—		—			(6	)		(41	)		12			(35	)
Contributions from noncontrolling interests		1			—		—			—			—			8			8
Distributions to noncontrolling interests		(20	)		—		—			—			—			(12	)		(12	)
Purchases of subsidiary shares from noncontrolling    interests		(1	)		—		(1	)		—			—			—			(1	)
Adjustment to redemption value of redeemable    noncontrolling interests		4			—		(4	)		—			—			—			(4	)
Noncontrolling interest in acquired entity		4			—		—			—			—			—			—
Share-based compensation		—			—		6			—			—			—			6
Balance, September 30, 2022	$	516		$	1	$	2,091		$	(33	)	$	(3,845	)	$	92		$	(1,694	)

_______________________________

(1) Totals may not add due to rounding.

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’ deficit (in millions):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Net loss attributable to Community Health Systems,    Inc. stockholders	$	(91	)	$	(42	)	$	(180	)	$	(369	)
Transfers to the noncontrolling interests:
Net increase (decrease) in Community Health Systems,    Inc. paid-in-capital for purchase of    subsidiary partnership interests		—			(1	)		5			(2	)
Net transfers to the noncontrolling interests		—			(1	)		5			(2	)
Change to Community Health Systems, Inc. stockholders'    deficit from net loss attributable to    Community Health Systems, Inc. stockholders and    transfers to noncontrolling interests	$	(91	)	$	(43	)	$	(175	)	$	(371	)