Stockholders' Equity

3 Months Ended

Mar. 31, 2015

Stockholders' Equity [Abstract]

Stockholders' Equity Disclosure

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, 2015, 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 10, 2014, the Company adopted a new open market repurchase program for up to 5,000,000 shares of the Company’s common stock, not to exceed $150 million in repurchases.  The repurchase program will expire 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, 2015, the Company did not repurchase and retire any shares under this program.

With the exception of a cash dividend of $0.25 per share paid by the Company in December 2012, historically, the Company has not paid any cash dividends. The Company’s Credit Facility limits the Company’s ability to pay dividends and/or repurchase stock to an amount not to exceed $200 million in the aggregate plus an additional $25 million in any particular year plus the aggregate amount of proceeds from the exercise of stock options. The indentures governing the senior and senior secured notes also limit the Company’s ability to pay dividends and/or repurchase stock. As of March 31, 2015, under the most restrictive test under these agreements, the Company has approximately $461 million remaining available with which to pay permitted dividends and/or repurchase shares of stock or its senior and senior secured 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, 2015 (in millions):

			Community Health Systems, Inc. Stockholders
	Redeemable Noncontrolling Interest		Common Stock		Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Noncontrolling Interest		Total Stockholders’ Equity
Balance, December 31, 2014	$	531	$	1	$	2,095	$	(7)	$	(63)	$	1,977	$	80	$	4,083
Comprehensive income		16		-		-		-		(7)		79		4		76
Distributions to noncontrolling
interests, net of contributions		(17)		-		-		-		-		-		(6)		(6)
Purchase of subsidiary shares
from noncontrolling interests		(7)		-		-		-		-		-		-		-
Disposition of less-than-wholly
owned hospital		(8)		-		-		-		-		-		-		-
Other reclassifications of
noncontrolling interests		(1)		-		-		-		-		-		1		1
Adjustment to redemption
value of redeemable
noncontrolling interests		6		-		(6)		-		-		-		-		(6)
Issuance of common stock
in connection with the
exercise of stock options		-		-		18		-		-		-		-		18
Cancellation of restricted
stock for tax withholdings
on vested shares		-		-		(20)		-		-		-		-		(20)
Share-based compensation		-		-		14		-		-		-		-		14
Balance, March 31, 2015	$	520	$	1	$	2,101	$	(7)	$	(70)	$	2,056	$	79	$	4,160

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 millions): 

	Three Months Ended
	March 31, 2015
Net income attributable to Community Health Systems,
Inc. stockholders	$	79
Transfers to the noncontrolling interests:
Net decrease in Community Health Systems, Inc. paid-in
capital for  purchase of subsidiary partnership interests		-
Net transfers to the noncontrolling interests		-
Change to Community Health Systems, Inc. stockholders’ equity
from net income attributable to Community Health Systems,
Inc. stockholders and transfers to noncontrolling interests	$	79