Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2014

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
June 30, 2014
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	206	$	183	$	-	$	389
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		1,056		2,065		-		3,121
Supplies		-		-		370		180		-		550
Prepaid income taxes		193		-		-		-		-		193
Deferred income taxes		317		-		-		-		-		317
Prepaid expenses and taxes		-		-		149		54		-		203
Other current assets		-		-		277		347		-		624
Total current assets		510		-		2,058		2,829		-		5,397
Intercompany receivable		1,179		16,522		3,087		7,869		(28,657)		-
Property and equipment, net		-		-		7,126		3,691		-		10,817
Goodwill		-		-		5,267		3,252		-		8,519
Other assets, net		-		319		1,778		1,045		(605)		2,537
Net investment in subsidiaries		3,135		17,838		6,936		-		(27,909)		-
Total assets	$	4,824	$	34,679	$	26,252	$	18,686	$	(57,171)	$	27,270
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	146	$	54	$	9	$	-	$	209
Accounts payable		-		-		718		282		-		1,000
Deferred income taxes		-		-		-		-		-		-
Accrued interest		-		232		-		1		-		233
Accrued liabilities		4		-		1,216		507		-		1,727
Total current liabilities		4		378		1,988		799		-		3,169
Long-term debt		-		15,903		127		692		-		16,722
Intercompany payable		-		14,450		19,396		15,226		(49,072)		-
Deferred income taxes		1,043		-		-		-		-		1,043
Other long-term liabilities		2		812		1,190		383		(605)		1,782
Total liabilities		1,049		31,543		22,701		17,100		(49,677)		22,716
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		689		-		689
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		1		-		-		-		-		1
Additional paid-in capital		2,021		1,150		1,284		656		(3,090)		2,021
Treasury stock, at cost		(7)		-		-		-		-		(7)
Accumulated other comprehensive (loss)
income		(55)		(55)		(13)		-		68		(55)
Retained earnings		1,815		2,041		2,280		151		(4,472)		1,815
Total Community Health Systems, Inc.
stockholders’ equity		3,775		3,136		3,551		807		(7,494)		3,775
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		90		-		90
Total equity		3,775		3,136		3,551		897		(7,494)		3,865
Total liabilities and equity	$	4,824	$	34,679	$	26,252	$	18,686	$	(57,171)	$	27,270

Condensed Consolidating Balance Sheet
December 31, 2013
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	238	$	135	$	-	$	373
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		866		1,457		-		2,323
Supplies		-		-		256		115		-		371
Prepaid income taxes		107		-		-		-		-		107
Deferred income taxes		101		-		-		-		-		101
Prepaid expenses and taxes		-		-		98		29		-		127
Other current assets		-		-		262		83		-		345
Total current assets		208		-		1,720		1,819		-		3,747
Intercompany receivable		579		9,541		4,534		3,810		(18,464)		-
Property and equipment, net		-		-		4,657		2,394		-		7,051
Goodwill		-		-		2,530		1,894		-		4,424
Other assets, net		-		144		1,454		828		(531)		1,895
Net investment in subsidiaries		3,194		9,335		4,030		-		(16,559)		-
Total assets	$	3,981	$	19,020	$	18,925	$	10,745	$	(35,554)	$	17,117
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	152	$	13	$	2	$	-	$	167
Accounts payable		-		-		734		215		-		949
Deferred income taxes		3		-		-		-		-		3
Accrued interest		-		111		-		1		-		112
Accrued liabilities		4		-		871		352		-		1,227
Total current liabilities		7		263		1,618		570		-		2,458
Long-term debt		-		8,718		51		517		-		9,286
Intercompany payable		-		6,226		13,060		8,266		(27,552)		-
Deferred income taxes		906		-		-		-		-		906
Other long-term liabilities		-		619		671		218		(531)		977
Total liabilities		913		15,826		15,400		9,571		(28,083)		13,627
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		358		-		358
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		1		-		-		-		-		1
Additional paid-in capital		1,256		1,175		1,274		595		(3,044)		1,256
Treasury stock, at cost		(7)		-		-		-		-		(7)
Accumulated other comprehensive (loss)
income		(67)		(67)		(11)		-		78		(67)
Retained earnings		1,885		2,086		2,262		157		(4,505)		1,885
Total Community Health Systems, Inc.
stockholders’ equity		3,068		3,194		3,525		752		(7,471)		3,068
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		64		-		64
Total equity		3,068		3,194		3,525		816		(7,471)		3,132
Total liabilities and equity	$	3,981	$	19,020	$	18,925	$	10,745	$	(35,554)	$	17,117

Schedule of Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Income
Three Months Ended June 30, 2014
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(5)	$	3,387	$	2,149	$	-	$	5,531
Provision for bad debts		-		-		456		296		-		752
Net operating revenues		-		(5)		2,931		1,853		-		4,779
Operating costs and expenses:
Salaries and benefits		-		-		1,240		988		-		2,228
Supplies		-		-		481		257		-		738
Other operating expenses		-		-		703		417		-		1,120
Electronic health records incentive reimbursement		-		-		(61)		(23)		-		(84)
Rent		-		-		59		52		-		111
Depreciation and amortization						200		82				282
Amortization of software to be abandoned		-		-		19		14		-		33
Total operating costs and expenses		-		-		2,641		1,787		-		4,428
Income from operations		-		(5)		290		66		-		351
Interest expense, net		-		31		206		18		-		255
Loss from early extinguishment of debt		-		-		-		-		-		-
Equity in earnings of unconsolidated affiliates		(42)		(61)		(24)		-		116		(11)
Income from continuing operations before income taxes		42		25		108		48		(116)		107
Provision for (benefit from) income taxes		-		(17)		42		7		-		32
Income from continuing operations		42		42		66		41		(116)		75
Discontinued operations, net of taxes:
(Loss) income from operations of entities held for sale		-		-		(8)		8		-		-
Impairment of hospitals held for sale		-		-		-		(5)		-		(5)
Loss from discontinued operations, net of taxes		-		-		(8)		3		-		(5)
Net income (loss)		42		42		58		44		(116)		70
Less: Net income attributable to noncontrolling interests		-		-		-		28		-		28
Net income (loss) attributable to Community Health
Systems, Inc. stockholders	$	42	$	42	$	58	$	16	$	(116)	$	42

Condensed Consolidating Statement of Income
Three Months Ended June 30, 2013
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(4)	$	2,389	$	1,326	$	-	$	3,711
Provision for bad debts		-		-		375		145		-		520
Net operating revenues		-		(4)		2,014		1,181		-		3,191
Operating costs and expenses:
Salaries and benefits		-		-		899		629		-		1,528
Supplies		-		-		324		169		-		493
Other operating expenses		-		-		461		252		-		713
Electronic health records incentive reimbursement		-		-		(16)		(8)		-		(24)
Rent		-		-		40		30		-		70
Depreciation and amortization		-		-		129		63		-		192
Total operating costs and expenses		-		-		1,837		1,135		-		2,972
Income from operations		-		(4)		177		46		-		219
Interest expense, net		-		(11)		141		24		-		154
Loss from early extinguishment of debt		-		-		-		-		-		-
Equity in earnings of unconsolidated affiliates		(30)		(24)		(13)		-		58		(9)
Income from continuing operations before income taxes		30		31		49		22		(58)		74
Provision for (benefit from) income taxes		-		1		18		2		-		21
Income from continuing operations		30		30		31		20		(58)		53
Discontinued operations, net of taxes:
(Loss) income from operations of entities held for sale		-		-		(9)		3		-		(6)
Impairment of hospitals held for sale		-		-		-		-		-		-
Loss from discontinued operations, net of taxes		-		-		(9)		3		-		(6)
Net income (loss)		30		30		22		23		(58)		47
Less: Net income attributable to noncontrolling interests		-		-		-		17		-		17
Net income (loss) attributable to Community Health
Systems, Inc. stockholders	$	30	$	30	$	22	$	6	$	(58)	$	30

Condensed Consolidating Statement of Loss
Six Months Ended June 30, 2014
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(9)	$	6,519	$	3,910	$	-	$	10,420
Provision for bad debts		-		-		938		518		-		1,456
Net operating revenues		-		(9)		5,581		3,392		-		8,964
Operating costs and expenses:
Salaries and benefits		-		-		2,393		1,832		-		4,225
Supplies		-		-		899		472		-		1,371
Other operating expenses		-		-		1,369		772		-		2,141
Electronic health records incentive reimbursement		-		-		(84)		(40)		-		(124)
Rent		-		-		114		96		-		210
Depreciation and amortization		-		-		388		149		-		537
Amortization of software to be abandoned		-		-		45		30		-		75
Total operating costs and expenses		-		-		5,124		3,311		-		8,435
Income from operations		-		(9)		457		81		-		529
Interest expense, net		-		71		376		31		-		478
Loss from early extinguishment of debt		-		73		-		-		-		73
Equity in earnings of unconsolidated affiliates		70		(31)		(9)		-		(52)		(22)
Impairment of long-lived assets		-		-		24		-		-		24
(Loss) income from continuing operations before income taxes		(70)		(122)		66		50		52		(24)
Provision for (benefit from) income taxes		-		(52)		25		3		-		(24)
(Loss) income from continuing operations		(70)		(70)		41		47		52		-
Discontinued operations, net of taxes:
(Loss) income from operations of entities held for sale		-		-		(14)		9		-		(5)
Impairment of hospitals held for sale		-		-		-		(22)		-		(22)
Loss from discontinued operations, net of taxes		-		-		(14)		(13)		-		(27)
Net (loss) income		(70)		(70)		27		34		52		(27)
Less: Net income attributable to noncontrolling interests		-		-		-		43		-		43
Net (loss) income attributable to Community Health
Systems, Inc. stockholders	$	(70)	$	(70)	$	27	$	(9)	$	52	$	(70)

Condensed Consolidating Statement of Income
Six Months Ended June 30, 2013
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(7)	$	4,780	$	2,677	$	-	$	7,450
Provision for bad debts		-		-		707		290		-		997
Net operating revenues		-		(7)		4,073		2,387		-		6,453
Operating costs and expenses:
Salaries and benefits		-		-		1,800		1,276		-		3,076
Supplies		-		-		644		342		-		986
Other operating expenses		-		-		894		511		-		1,405
Electronic health records incentive reimbursement		-		-		(27)		(16)		-		(43)
Rent		-		-		79		60		-		139
Depreciation and amortization		-		-		256		125		-		381
Total operating costs and expenses		-		-		3,646		2,298		-		5,944
Income from operations		-		(7)		427		89		-		509
Interest expense, net		-		3		268		39		-		310
Loss from early extinguishment of debt		-		1		-		-		-		1
Equity in earnings of unconsolidated affiliates		(109)		(117)		(31)		-		233		(24)
Impairment of long-lived assets		-		-		-		-		-		-
Income from continuing operations before income taxes		109		106		190		50		(233)		222
Provision for (benefit from) income taxes		-		(3)		67		6		-		70
Income from continuing operations		109		109		123		44		(233)		152
Discontinued operations, net of taxes:
(Loss) income from operations of entities held for sale		-		-		(10)		1		-		(9)
Impairment of hospitals held for sale		-		-		-		-		-		-
Loss from discontinued operations, net of taxes		-		-		(10)		1		-		(9)
Net income (loss)		109		109		113		45		(233)		143
Less: Net income attributable to noncontrolling interests		-		-		-		34		-		34
Net income (loss) attributable to Community Health
Systems, Inc. stockholders	$	109	$	109	$	113	$	11	$	(233)	$	109

Schedule of Condensed Consolidating Statement of Comprehensive Income (Loss)

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2014
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net income	$	42	$	42	$	58	$	44	$	(116)	$	70
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		-		-		-		-		-		-
Net change in fair value of available-for-sale securities		3		3		3		-		(6)		3
Amortization and recognition of unrecognized
pension cost components		-		-		-		-		-		-
Other comprehensive income (loss)		3		3		3		-		(6)		3
Comprehensive income		45		45		61		44		(122)		73
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		28		-		28
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	45	$	45	$	61	$	16	$	(122)	$	45

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2013
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net income	$	30	$	30	$	22	$	23	$	(58)	$	47
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		21		21		-		-		(21)		21
Net change in fair value of available-for-sale securities		-		-		-		-		-		-
Amortization and recognition of unrecognized
pension cost components		-		-		-		-		-		-
Other comprehensive income (loss)		21		21		-		-		(21)		21
Comprehensive income		51		51		22		23		(79)		68
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		17		-		17
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	51	$	51	$	22	$	6	$	(79)	$	51

Condensed Consolidating Statement of Comprehensive Loss
Six Months Ended June 30, 2014
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net (loss) income	$	(70)	$	(70)	$	27	$	34	$	52	$	(27)
Other comprehensive income, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		9		9		-		-		(9)		9
Net change in fair value of available-for-sale securities, net
of tax		3		3		3		-		(6)		3
Amortization and recognition of unrecognized pension
cost components, net of tax		-		-		-		-		-		-
Other comprehensive income		12		12		3		-		(15)		12
Comprehensive (loss) income		(58)		(58)		30		34		37		(15)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		43		-		43
Comprehensive (loss) income attributable to Community
Health Systems, Inc. stockholders	$	(58)	$	(58)	$	30	$	(9)	$	37	$	(58)

Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2013
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net income	$	109	$	109	$	113	$	45	$	(233)	$	143
Other comprehensive income, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		37		37		-		-		(37)		37
Net change in fair value of available-for-sale securities, net
of tax		2		2		2		-		(4)		2
Amortization and recognition of unrecognized pension
cost components, net of tax		1		1		1		-		(2)		1
Other comprehensive income		40		40		3		-		(43)		40
Comprehensive income		149		149		116		45		(276)		183
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		34		-		34
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	149	$	149	$	116	$	11	$	(276)	$	149

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2014
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	69	$	196	$	392	$	(143)	$	-	$	514
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(2,828)		(213)		-		(3,041)
Purchases of property and equipment		-		-		(282)		(79)		-		(361)
Proceeds from disposition of ancillary operations		-		-		-		12		-		12
Proceeds from sale of property and equipment		-		-		2		1		-		3
Purchases of available-for-sale securities		-		-		-		(137)		-		(137)
Proceeds from sales of available-for-sale securities		-		-		-		123		-		123
Increase in other investments		-		-		(185)		(66)		-		(251)
Net cash used in investing activities		-		-		(3,293)		(359)		-		(3,652)
Cash flows from financing activities:
Proceeds from exercise of stock options		14		-		-		-		-		14
Repurchase of restricted stock shares for payroll
tax withholding requirements		(11)		-		-		-		-		(11)
Stock buy-back		-		-		-		-		-		-
Deferred financing costs and
other-debt related costs		-		(269)		-		-		-		(269)
Excess tax benefit relating to
stock-based compensation		3		-		-		-		-		3
Proceeds from noncontrolling investors in joint
ventures		-		-		-		10		-		10
Redemption of noncontrolling investments in joint
ventures		-		-		-		(6)		-		(6)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(44)		-		(44)
Changes in intercompany balances with
affiliates, net		(75)		(3,282)		2,855		502		-		-
Borrowings under credit agreements		-		7,455		20		13		-		7,488
Issuance of long-term debt		-		4,000		-		-		-		4,000
Proceeds from receivables facility		-		-		-		133		-		133
Repayments of long-term indebtedness		-		(8,100)		(6)		(58)		-		(8,164)
Net cash provided by (used in) financing
activities		(69)		(196)		2,869		550		-		3,154
Net change in cash and cash equivalents		-		-		(32)		48		-		16
Cash and cash equivalents at beginning of period		-		-		238		135		-		373
Cash and cash equivalents at end of period	$	-	$	-	$	206	$	183	$	-	$	389

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2013
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	(83)	$	4	$	431	$	(43)	$	-	$	309
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(5)		(5)		-		(10)
Purchases of property and equipment		-		-		(254)		(41)		-		(295)
Proceeds from sale of property and equipment		-		-		1		1		-		2
Purchases of available-for-sale securities		-		-		-		-		-		-
Proceeds from sales of available-for-sale securities		-		-		-		-		-		-
Increase in other investments		-		-		(110)		(25)		-		(135)
Net cash used in investing activities		-		-		(368)		(70)		-		(438)
Cash flows from financing activities:
Proceeds from exercise of stock options		104		-		-		-		-		104
Repurchase of restricted stock shares for payroll
tax withholding requirements		(15)		-		-		-		-		(15)
Stock buy-back		(27)		-		-		-		-		(27)
Deferred financing costs and
other-debt related costs		-		-		-		(1)		-		(1)
Excess tax benefit relating to
stock-based compensation		6		-		-		-		-		6
Proceeds from noncontrolling investors in joint
ventures		-		-		-		-		-		-
Redemption of noncontrolling investments in joint
ventures		-		-		-		-		-		-
Distributions to noncontrolling investors in joint
ventures		-		-		-		(38)		-		(38)
Changes in intercompany balances with
affiliates, net		15		221		(209)		(27)		-		-
Borrowings under credit agreements		-		275		20		1		-		296
Issuance of long-term debt		-		-		-		-		-		-
Proceeds from receivables facility		-		-		-		300		-		300
Repayments of long-term indebtedness		-		(500)		(14)		(119)		-		(633)
Net cash provided by (used in) financing
activities		83		(4)		(203)		116		-		(8)
Net change in cash and cash equivalents		-		-		(140)		3		-		(137)
Cash and cash equivalents at beginning of period		-		-		272		116		-		388
Cash and cash equivalents at end of period	$	-	$	-	$	132	$	119	$	-	$	251