Stockholders Equity

3 Months Ended

Mar. 31, 2012

Stockholders' Equity [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 March 31, 2012, 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 December 14, 2011, the Company adopted 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. The new repurchase program will conclude at the earliest of three years, when the maximum number of shares has been repurchased, or when the maximum dollar amount of repurchases has been expended. Through March 31, 2012, no shares have been purchased and retired under this program.

On September 15, 2010, the Company commenced an 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 of repurchases has been expended. During the three months ended March 31, 2012 and 2011, the Company did not repurchase any shares under this program. The cumulative number of shares that have been repurchased and retired under this program through March 31, 2012 is 3,921,138 shares at a weighted-average price of $25.39 per share.

The Company’s Credit Facility (as discussed below) limits the Company’s ability to pay dividends and/or repurchase stock to an amount not to exceed $50 million in the aggregate plus the aggregate amount of proceeds from the exercise of stock options. The indentures governing the 8  ⁷/8% Senior Notes due 2015 and the 8% Senior Notes due 2019 (collectively, the “Senior Notes”) also limit the Company’s ability to pay dividends and/or repurchase stock. As of March 31, 2012, under the most restrictive test under these agreements, the Company has approximately $80.4 million remaining available with which to pay permitted dividends and/or repurchase shares of stock or its Senior Notes.

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 three-month period ended March 31, 2012 (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, 2011	$	395,743		$	915		$	1,086,008		$	(6,678	)	$	(184,479	)	$	1,501,330	$	67,349		$	2,464,445
Comprehensive income		17,599			—			—			—			14,343			75,474		6,179			95,996
Distributions to noncontrolling interests, net of contributions		(15,904	)		—			—			—			—			—		(11,019	)		(11,019	)
Purchase of subsidiary shares from noncontrolling interests		(12,285	)		—			(18,673	)		—			—			—		(138	)		(18,811	)
Other reclassifications of noncontrolling interests		623			—			—			—			—			—		(623	)		(623	)
Adjustment to redemption value of redeemable noncontrolling interests		(22,236	)		—			22,236			—			—			—		—			22,236
Repurchase of common stock		—			—			—			—			—			—		—			—
Issuance of common stock in connection with the exercise of stock options		—			—			308			—			—			—		—			308
Cancellation of restricted stock for tax withholdings on vested shares		—			(3	)		(9,032	)		—			—			—		—			(9,035	)
Excess tax benefit from exercise of stock options		—			—			(1,895	)		—			—			—		—			(1,895	)
Share-based compensation		—			7			10,495			—			—			—		—			10,502
Balance, March 31, 2012	$	363,540		$	919		$	1,089,447		$	(6,678	)	$	(170,136	)	$	1,576,804	$	61,748		$	2,552,104

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):

	Three Months Ended March 31, 2012
Net income attributable to Community Health Systems, Inc.	$	75,474
Transfers to the noncontrolling interests:
Net decrease in Community Health Systems, Inc. paid-in capital for purchase of subsidiary partnership interests		(18,673	)
Net transfers to the noncontrolling interests		(18,673	)
Change to Community Health Systems, Inc. stockholders’ equity from net income attributable to Community Health Systems, Inc. and transfers to noncontrolling interests	$	56,801