Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2013

Supplemental Financial Information [Abstract]

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
June 30, 2013
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	132,258	$	118,969	$	-	$	251,227
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		774,919		1,398,145		-		2,173,064
Supplies		-		-		258,767		116,673		-		375,440
Prepaid income taxes		35,697		-		-		-		-		35,697
Deferred income taxes		117,045		-		-		-		-		117,045
Prepaid expenses and taxes		-		23		103,304		30,197		-		133,524
Other current assets		-		-		197,956		72,655		-		270,611
Total current assets		152,742		23		1,467,204		1,736,639		-		3,356,608
Intercompany receivable		500,908		9,587,164		4,370,413		3,556,452		(18,014,937)		-
Property and equipment, net		-		-		4,666,682		2,437,562		-		7,104,244
Goodwill		-		-		2,544,073		1,868,024		-		4,412,097
Other assets, net		-		148,931		1,226,988		782,953		(434,999)		1,723,873
Net investment in subsidiaries		3,123,934		8,716,933		3,729,454		-		(15,570,321)		-
Total assets	$	3,777,584	$	18,453,051	$	18,004,814	$	10,381,630	$	(34,020,257)	$	16,596,822
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	94,429	$	22,031	$	2,577	$	-	$	119,037
Accounts payable		-		31		561,863		191,115		-		753,009
Accrued interest		-		110,604		122		430		-		111,156
Accrued liabilities		5,449		-		669,266		329,032		-		1,003,747
Total current liabilities		5,449		205,064		1,253,282		523,154		-		1,986,949
Long-term debt		-		8,834,196		52,851		501,150		-		9,388,197
Intercompany payable		-		5,731,022		12,516,342		8,098,768		(26,346,132)		-
Deferred income taxes		808,489		-		-		-		-		808,489
Other long-term liabilities		1,191		558,838		690,973		203,412		(434,999)		1,019,415
Total liabilities		815,129		15,329,120		14,513,448		9,326,484		(26,781,131)		13,203,050
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		371,413		-		371,413
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		958		-		1		2		(3)		958
Additional paid-in capital		1,220,523		1,163,635		1,267,401		492,197		(2,923,233)		1,220,523
Treasury stock, at cost		(6,678)		-		-		-		-		(6,678)
Accumulated other comprehensive (loss)
income		(105,267)		(105,267)		(25,793)		-		131,060		(105,267)
Retained earnings		1,852,919		2,065,563		2,249,757		131,630		(4,446,950)		1,852,919
Total Community Health Systems, Inc.
stockholders’ equity		2,962,455		3,123,931		3,491,366		623,829		(7,239,126)		2,962,455
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		59,904		-		59,904
Total equity		2,962,455		3,123,931		3,491,366		683,733		(7,239,126)		3,022,359
Total liabilities and equity	$	3,777,584	$	18,453,051	$	18,004,814	$	10,381,630	$	(34,020,257)	$	16,596,822

Condensed Consolidating Balance Sheet
December 31, 2012
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	271,559	$	116,254	$		$	387,813
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		676,649		1,390,730				2,067,379
Supplies		-		-		254,853		113,319				368,172
Prepaid income taxes		49,888		-		-		-				49,888
Deferred income taxes		117,045		-		-		-				117,045
Prepaid expenses and taxes		-		115		86,628		39,818				126,561
Other current assets				-		222,424		79,860				302,284
Total current assets		166,933		115		1,512,113		1,739,981		-		3,419,142
Intercompany receivable		406,534		9,837,904		3,723,120		3,262,823		(17,230,381)		-
Property and equipment, net		-		-		4,660,557		2,491,316		-		7,151,873
Goodwill		-		-		2,544,195		1,863,943		-		4,408,138
Other assets, net		-		165,236		1,273,347		816,373		(627,774)		1,627,182
Net investment in subsidiaries		2,974,965		8,686,242		3,427,182		-		(15,088,389)		-
Total assets	$	3,548,432	$	18,689,497	$	17,140,514	$	10,174,436	$	(32,946,544)	$	16,606,335
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	75,679	$	11,103	$	3,129	$	-	$	89,911
Accounts payable		-		74		583,865		241,975		-		825,914
Accrued interest		-		110,091		295		316		-		110,702
Accrued liabilities		7,580		-		748,010		361,103		-		1,116,693
Total current liabilities		7,580		185,844		1,343,273		606,523		-		2,143,220
Long-term debt		-		9,079,392		53,201		318,801		-		9,451,394
Intercompany payable		-		5,639,928		11,693,119		7,822,313		(25,155,360)		-
Deferred income taxes		808,489		-		-		-		-		808,489
Other long-term liabilities		1,156		809,372		675,341		180,950		(627,774)		1,039,045
Total liabilities		817,225		15,714,536		13,764,934		8,928,587		(25,783,134)		13,442,148
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		367,666		-		367,666
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		929		-		1		2		(3)		929
Additional paid-in capital		1,138,274		1,176,342		1,283,499		690,929		(3,150,770)		1,138,274
Treasury stock, at cost		(6,678)		-		-		-		-		(6,678)
Accumulated other comprehensive (loss)
income		(145,310)		(145,310)		(28,927)		-		174,237		(145,310)
Retained earnings		1,743,992		1,943,929		2,121,007		121,938		(4,186,874)		1,743,992
Total Community Health Systems, Inc.
stockholders’ equity		2,731,207		2,974,961		3,375,580		812,869		(7,163,410)		2,731,207
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		65,314		-		65,314
Total equity		2,731,207		2,974,961		3,375,580		878,183		(7,163,410)		2,796,521
Total liabilities and equity	$	3,548,432	$	18,689,497	$	17,140,514	$	10,174,436	$	(32,946,544)	$	16,606,335

Schedule of Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Income
Three Months Ended June 30, 2013
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(3,982)	$	2,413,268	$	1,358,800	$	-	$	3,768,086
Provision for bad debts		-		-		368,942		162,753		-		531,695
Net operating revenues		-		(3,982)		2,044,326		1,196,047		-		3,236,391
Operating costs and expenses:
Salaries and benefits		-		-		916,695		639,256		-		1,555,951
Supplies		-		-		327,618		170,412		-		498,030
Other operating expenses		-		162		472,485		257,150		-		729,797
Electronic health records incentive reimbursement		-		-		(15,602)		(8,782)		-		(24,384)
Rent		-		-		40,425		31,395		-		71,820
Depreciation and amortization		-		-		131,310		63,295		-		194,605
Total operating costs and expenses		-		162		1,872,931		1,152,726		-		3,025,819
Income from operations		-		(4,144)		171,395		43,321		-		210,572
Interest expense, net		-		(10,779)		149,927		15,908		-		155,056
Loss from early extinguishment of debt		-		-		-		-		-		-
Equity in earnings of unconsolidated affiliates		(29,753)		(24,438)		(13,309)		-		58,446		(9,054)
Income from continuing operations before income taxes		29,753		31,073		34,777		27,413		(58,446)		64,570
Provision for (benefit from) income taxes		-		1,320		12,532		3,633		-		17,485
Income from continuing operations		29,753		29,753		22,245		23,780		(58,446)		47,085
Discontinued operations, net of taxes:
Loss from operations of entities sold		-		-		-		-		-		-
Loss from discontinued operations, net of taxes		-		-		-		-		-		-
Net income		29,753		29,753		22,245		23,780		(58,446)		47,085
Less: Net income attributable to noncontrolling interests		-		-		-		17,332		-		17,332
Net income attributable to Community Health Systems,
Inc. stockholders	$	29,753	$	29,753	$	22,245	$	6,448	$	(58,446)	$	29,753

Condensed Consolidating Statement of Income
Three Months Ended June 30, 2012
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(2,666)	$	2,349,686	$	1,399,408	$	-	$	3,746,428
Provision for bad debts		-		-		332,152		171,302		-		503,454
Net operating revenues		-		(2,666)		2,017,534		1,228,106		-		3,242,974
Operating costs and expenses:
Salaries and benefits		-		-		884,820		612,626		-		1,497,446
Supplies		-		-		322,987		166,742		-		489,729
Other operating expenses		-		20		448,592		287,613		-		736,225
Electronic health records incentive reimbursement		-		-		(6,313)		(10,489)		-		(16,802)
Rent		-		-		37,085		29,378		-		66,463
Depreciation and amortization		-		-		119,909		59,892		-		179,801
Total operating costs and expenses		-		20		1,807,080		1,145,762		-		2,952,862
Income from operations		-		(2,686)		210,454		82,344		-		290,112
Interest expense, net		-		17,588		123,067		10,952		-		151,607
Loss from early extinguishment of debt		-		-		-		-		-		-
Equity in earnings of unconsolidated affiliates		(83,359)		(86,292)		(45,237)		-		201,707		(13,181)
Income from continuing operations before income taxes		83,359		66,018		132,624		71,392		(201,707)		151,686
Provision for (benefit from) income taxes		-		(17,341)		47,877		18,983		-		49,519
Income from continuing operations		83,359		83,359		84,747		52,409		(201,707)		102,167
Discontinued operations, net of taxes:
Loss from operations of entities sold		-		-		-		-		-		-
Loss from discontinued operations, net of taxes		-		-		-		-		-		-
Net income		83,359		83,359		84,747		52,409		(201,707)		102,167
Less: Net income attributable to noncontrolling interests		-		-		-		18,808		-		18,808
Net income attributable to Community Health Systems,
Inc. stockholders	$	83,359	$	83,359	$	84,747	$	33,601	$	(201,707)	$	83,359

Condensed Consolidating Statement of Income
Six Months Ended June 30, 2013
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(7,303)	$	4,846,148	$	2,729,105	$	-	$	7,567,950
Provision for bad debts		-		-		707,373		312,436		-		1,019,809
Net operating revenues		-		(7,303)		4,138,775		2,416,669		-		6,548,141
Operating costs and expenses:
Salaries and benefits		-		-		1,835,963		1,297,136		-		3,133,099
Supplies		-		-		651,631		344,240		-		995,871
Other operating expenses		-		239		917,074		520,458		-		1,437,771
Electronic health records incentive reimbursement		-		-		(27,578)		(17,722)		-		(45,300)
Rent		-		-		80,651		62,723		-		143,374
Depreciation and amortization		-		-		260,187		126,576		-		386,763
Total operating costs and expenses		-		239		3,717,928		2,333,411		-		6,051,578
Income from operations		-		(7,542)		420,847		83,258		-		496,563
Interest expense, net		-		3,490		276,393		31,523		-		311,406
Loss from early extinguishment of debt		-		1,295		-		-		-		1,295
Equity in earnings of unconsolidated affiliates		(108,927)		(116,762)		(31,661)		-		232,616		(24,734)
Income from continuing operations before income taxes		108,927		104,435		176,115		51,735		(232,616)		208,596
Provision for (benefit from) income taxes		-		(4,492)		63,463		6,217		-		65,188
Income from continuing operations		108,927		108,927		112,652		45,518		(232,616)		143,408
Discontinued operations, net of taxes:
Loss from operations of entities sold		-		-		-		-		-		-
Loss from discontinued operations, net of taxes		-		-		-		-		-		-
Net income		108,927		108,927		112,652		45,518		(232,616)		143,408
Less: Net income attributable to noncontrolling interests		-		-		-		34,481		-		34,481
Net income attributable to Community Health Systems,
Inc. stockholders	$	108,927	$	108,927	$	112,652	$	11,037	$	(232,616)	$	108,927

Condensed Consolidating Statement of Income
Six Months Ended June 30, 2012
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(4,430)	$	4,801,625	$	2,732,724	$	-	$	7,529,919
Provision for bad debts		-		-		681,463		308,447		-		989,910
Net operating revenues		-		(4,430)		4,120,162		2,424,277		-		6,540,009
Operating costs and expenses:
Salaries and benefits		-		-		1,783,411		1,239,010		-		3,022,421
Supplies		-		-		651,242		337,066		-		988,308
Other operating expenses		-		335		927,658		517,175		-		1,445,168
Electronic health records incentive reimbursement		-		-		(25,144)		(17,826)		-		(42,970)
Rent		-		-		74,455		59,232		-		133,687
Depreciation and amortization		-		-		235,575		118,580		-		354,155
Total operating costs and expenses		-		335		3,647,197		2,253,237		-		5,900,769
Income from operations		-		(4,765)		472,965		171,040		-		639,240
Interest expense, net		-		33,325		246,623		23,834		-		303,782
Loss from early extinguishment of debt		-		63,429		-		-		-		63,429
Equity in earnings of unconsolidated affiliates		(158,833)		(204,793)		(87,037)		-		425,469		(25,194)
Income from continuing operations before income taxes		158,833		103,274		313,379		147,206		(425,469)		297,223
Provision for (benefit from) income taxes		-		(55,559)		113,130		37,767		-		95,338
Income from continuing operations		158,833		158,833		200,249		109,439		(425,469)		201,885
Discontinued operations, net of taxes:
Loss from operations of entities sold		-		-		-		(466)		-		(466)
Loss from discontinued operations, net of taxes		-		-		-		(466)		-		(466)
Net income		158,833		158,833		200,249		108,973		(425,469)		201,419
Less: Net income attributable to noncontrolling interests		-		-		-		42,586		-		42,586
Net income attributable to Community Health Systems,
Inc. stockholders	$	158,833	$	158,833	$	200,249	$	66,387	$	(425,469)	$	158,833

Schedule of Condensed Consolidating Statement of Comprehensive Income (Loss)

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2013
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
Net income	$	29,753	$	29,753	$	22,245	$	23,780	$	(58,446)	$	47,085
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		21,139		21,139		-		-		(21,139)		21,139
Net change in fair value of available-for-sale securities		(139)		(139)		(139)		-		278		(139)
Amortization and recognition of unrecognized
pension cost components		731		731		731		-		(1,462)		731
Other comprehensive income (loss)		21,731		21,731		592		-		(22,323)		21,731
Comprehensive income		51,484		51,484		22,837		23,780		(80,769)		68,816
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		17,332		-		17,332
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	51,484	$	51,484	$	22,837	$	6,448	$	(80,769)	$	51,484

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2012
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
Net income	$	83,359	$	83,359	$	84,747	$	52,409	$	(201,707)	$	102,167
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		9,976		9,976		-		-		(9,976)		9,976
Net change in fair value of available-for-sale securities		(527)		(527)		(527)		-		1,054		(527)
Amortization and recognition of unrecognized
pension cost components		1,140		1,140		1,140		-		(2,280)		1,140
Other comprehensive income (loss)		10,589		10,589		613		-		(11,202)		10,589
Comprehensive income		93,948		93,948		85,360		52,409		(212,909)		112,756
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		18,808		-		18,808
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	93,948	$	93,948	$	85,360	$	33,601	$	(212,909)	$	93,948

+

Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2013
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
Net income	$	108,927	$	108,927	$	112,652	$	45,518	$	(232,616)	$	143,408
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		36,909		36,909		-		-		(36,909)		36,909
Net change in fair value of available-for-sale securities		1,670		1,670		1,670		-		(3,340)		1,670
Amortization and recognition of unrecognized
pension cost components		1,464		1,464		1,464		-		(2,928)		1,464
Other comprehensive income (loss)		40,043		40,043		3,134		-		(43,177)		40,043
Comprehensive income		148,970		148,970		115,786		45,518		(275,793)		183,451
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		34,481		-		34,481
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	148,970	$	148,970	$	115,786	$	11,037	$	(275,793)	$	148,970

Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2012
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
Net income	$	158,833	$	158,833	$	200,249	$	108,973	$	(425,469)	$	201,419
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		20,512		20,512		-		-		(20,512)		20,512
Net change in fair value of available-for-sale securities		2,140		2,140		2,140		-		(4,280)		2,140
Amortization and recognition of unrecognized
pension cost components		2,281		2,281		2,281		-		(4,562)		2,281
Other comprehensive income (loss)		24,933		24,933		4,421		-		(29,354)		24,933
Comprehensive income		183,766		183,766		204,670		108,973		(454,823)		226,352
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		42,586		-		42,586
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	183,766	$	183,766	$	204,670	$	66,387	$	(454,823)	$	183,766

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2013
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In thousands)
Net cash (used in) provided by operating
activities	$	(77,788)	$	4,246	$	425,234	$	(42,520)	$	-	$	309,172
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(5,301)		(5,191)		-		(10,492)
Purchases of property and equipment		-		-		(253,801)		(41,190)		-		(294,991)
Proceeds from sale of property and equipment		-		-		1,000		1,056		-		2,056
Increase in other investments		-		-		(109,997)		(24,392)		-		(134,389)
Net cash used in investing activities		-		-		(368,099)		(69,717)		-		(437,816)
Cash flows from financing activities:
Proceeds from exercise of stock options		103,626		-		-		-		-		103,626
Repurchase of restricted stock shares for payroll
tax withholding requirements		(14,569)		-		-		-		-		(14,569)
Stock buy-back		(27,133)		-		-		-		-		(27,133)
Deferred financing costs		-		(924)		-		-		-		(924)
Excess tax benefit relating to
stock-based compensation		6,331		-		-		-		-		6,331
Proceeds from noncontrolling investors in joint
ventures		-		-		-		64		-		64
Redemption of noncontrolling investments in joint
ventures		-		-		-		(701)		-		(701)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(37,937)		-		(37,937)
Changes in intercompany balances with
affiliates, net		9,533		221,906		(203,171)		(28,268)		-		-
Borrowings under credit agreements		-		275,000		20,441		560		-		296,001
Issuance of long-term debt		-		-		-		-		-		-
Proceeds from receivables facility		-		-		-		300,000		-		300,000
Repayments of long-term indebtedness		-		(500,228)		(13,706)		(118,766)		-		(632,700)
Net cash provided by (used in) financing
activities		77,788		(4,246)		(196,436)		114,952		-		(7,942)
Net change in cash and cash equivalents		-		-		(139,301)		2,715		-		(136,586)
Cash and cash equivalents at beginning of period		-		-		271,559		116,254		-		387,813
Cash and cash equivalents at end of period	$	-	$	-	$	132,258	$	118,969	$	-	$	251,227

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2012
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In thousands)
Net cash (used in) provided by operating
activities	$	(23,273)	$	(59,325)	$	358,137	$	207,388	$	-	$	482,927
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(237,543)		(7,684)		-		(245,227)
Purchases of property and equipment		-		-		(252,067)		(134,394)		-		(386,461)
Proceeds from sale of property and equipment		-		-		1,460		1,977		-		3,437
Increase in other investments		-		-		(116,339)		(45,977)		-		(162,316)
Net cash used in investing activities		-		-		(604,489)		(186,078)		-		(790,567)
Cash flows from financing activities:
Proceeds from exercise of stock options		1,269		-		-		-		-		1,269
Repurchase of restricted stock shares for payroll
tax withholding requirements		(9,074)		-		-		-		-		(9,074)
Stock buy-back		-		-		-		-		-		-
Deferred financing costs		-		(63,986)		-		-		-		(63,986)
Excess tax benefit relating to
stock-based compensation		1,037		-		-		-		-		1,037
Proceeds from noncontrolling investors in joint
ventures		-		-		-		637		-		637
Redemption of noncontrolling investments in joint
ventures		-		-		-		(35,888)		-		(35,888)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(34,590)		-		(34,590)
Changes in intercompany balances with
affiliates, net		30,041		(16,362)		239,214		(252,893)		-		-
Borrowings under credit agreements		-		3,615,000		18,589		-		-		3,633,589
Issuance of long-term debt		-		1,025,000		-		-		-		1,025,000
Proceeds from receivables facility		-		-		-		300,000		-		300,000
Repayments of long-term indebtedness		-		(4,500,327)		(11,880)		(12,903)		-		(4,525,110)
Net cash provided by (used in) financing
activities		23,273		59,325		245,923		(35,637)		-		292,884
Net change in cash and cash equivalents		-		-		(429)		(14,327)		-		(14,756)
Cash and cash equivalents at beginning of period		-		-		8,920		120,945		-		129,865
Cash and cash equivalents at end of period	$	-	$	-	$	8,491	$	106,618	$	-	$	115,109