Supplemental Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statement of Income (Loss)

Condensed Consolidating Statement of Income
Three Months Ended March 31, 2015
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(5)	$	3,488	$	2,163	$	-	$	5,646
Provision for bad debts		-		-		447		288		-		735
Net operating revenues		-		(5)		3,041		1,875		-		4,911
Operating costs and expenses:
Salaries and benefits		-		-		1,222		1,035		-		2,257
Supplies		-		-		492		270		-		762
Other operating expenses		-		-		708		391		-		1,099
Government settlement and related costs		-		-		8		-		-		8
Electronic health records incentive reimbursement		-		-		(17)		(9)		-		(26)
Rent		-		-		61		55		-		116
Depreciation and amortization		-		-		200		96		-		296
Total operating costs and expenses		-		-		2,674		1,838		-		4,512
Income from operations		-		(5)		367		37		-		399
Interest expense, net		-		21		211		9		-		241
Loss from early extinguishment of debt		-		8		-		-		-		8
Equity in earnings of unconsolidated affiliates		(79)		(104)		(5)		-		170		(18)
Income from continuing operations before income taxes		79		70		161		28		(170)		168
Provision for (benefit from) income taxes		-		(9)		61		4		-		56
Income from continuing operations		79		79		100		24		(170)		112
Discontinued operations, net of taxes:
Loss from operations of entities sold or held for sale		-		-		-		(11)		-		(11)
Impairment of hospitals sold or held for sale		-		-		(1)		-		-		(1)
Loss on sale, net		-		-		2		(3)		-		(1)
Loss from discontinued operations, net of taxes		-		-		1		(14)		-		(13)
Net income		79		79		101		10		(170)		99
Less: Net income attributable to noncontrolling interests		-		-		-		20		-		20
Net income attributable to Community Health Systems,
Inc. stockholders	$	79	$	79	$	101	$	(10)	$	(170)	$	79

Condensed Consolidating Statement of Loss
Three Months Ended March 31, 2014
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(4)	$	3,119	$	1,760	$	-	$	4,875
Provision for bad debts		-		-		476		223		-		699
Net operating revenues		-		(4)		2,643		1,537		-		4,176
Operating costs and expenses:
Salaries and benefits		-		-		1,147		845		-		1,992
Supplies		-		-		417		215		-		632
Other operating expenses		-		-		663		356		-		1,019
Electronic health records incentive reimbursement		-		-		(30)		(10)		-		(40)
Rent		-		-		54		44		-		98
Depreciation and amortization		-		-		189		66		-		255
Amortization of software to be abandoned		-		-		26		16		-		42
Total operating costs and expenses		-		-		2,466		1,532		-		3,998
Income from operations		-		(4)		177		5		-		178
Interest expense, net		-		40		172		12		-		224
Loss from early extinguishment of debt		-		73		-		-		-		73
Equity in earnings of unconsolidated affiliates		112		27		23		-		(173)		(11)
Impairment of long-lived assets		-		-		24		-		-		24
Income from continuing operations before income taxes		(112)		(144)		(42)		(7)		173		(132)
Provision for (benefit from) income taxes		-		(32)		(16)		(8)		-		(56)
Income from continuing operations		(112)		(112)		(26)		1		173		(76)
Discontinued operations, net of taxes:
Loss from operations of entities sold or held for sale		-		-		(3)		(1)		-		(4)
Impairment of hospitals sold or held for sale		-		-		-		(18)		-		(18)
Loss from discontinued operations, net of taxes		-		-		(3)		(19)		-		(22)
Net loss		(112)		(112)		(29)		(18)		173		(98)
Less: Net income attributable to noncontrolling interests		-		-		-		14		-		14
Net loss attributable to Community Health
Systems, Inc. stockholders	$	(112)	$	(112)	$	(29)	$	(32)	$	173	$	(112)

Schedule of Condensed Consolidating Statement of Comprehensive Income (Loss)

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended March 31, 2015
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net income	$	79	$	79	$	101	$	10	$	(170)	$	99
Other comprehensive income (loss), 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		1		1		1		-		(2)		1
Amortization and recognition of unrecognized pension
cost components, net of tax		1		1		1		-		(2)		1
Other comprehensive income (loss)		(7)		(7)		2		-		5		(7)
Comprehensive income		72		72		103		10		(165)		92
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		20		-		20
Comprehensive income (loss) attributable to Community
Health Systems, Inc. stockholders	$	72	$	72	$	103	$	(10)	$	(165)	$	72

Condensed Consolidating Statement of Comprehensive Loss
Three Months Ended March 31, 2014
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net loss	$	(112)	$	(112)	$	(29)	$	(18)	$	173	$	(98)
Other comprehensive income (loss), 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		-		-		-		-		-		-
Amortization and recognition of unrecognized pension
cost components, net of tax		-		-		-		-		-		-
Other comprehensive income (loss)		9		9		-		-		(9)		9
Comprehensive loss		(103)		(103)		(29)		(18)		164		(89)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		14		-		14
Comprehensive loss attributable to Community
Health Systems, Inc. stockholders	$	(103)	$	(103)	$	(29)	$	(32)	$	164	$	(103)

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
March 31, 2015
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	37	$	185	$	-	$	222
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		1,430		2,176		-		3,606
Supplies		-		-		377		184		-		561
Deferred income taxes		341		-		-		-		-		341
Prepaid expenses and taxes		-		-		131		58		-		189
Other current assets		-		-		329		178		-		507
Total current assets		341		-		2,304		2,781		-		5,426
Intercompany receivable		1,257		16,512		3,314		6,131		(27,214)		-
Property and equipment, net		-		-		6,613		3,478		-		10,091
Goodwill		-		-		5,483		3,471		-		8,954
Other assets, net		6		303		1,817		1,164		(642)		2,648
Net investment in subsidiaries		3,361		18,435		7,643		-		(29,439)		-
Total assets	$	4,965	$	35,250	$	27,174	$	17,025	$	(57,295)	$	27,119
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	163	$	54	$	12	$	-	$	229
Accounts payable		-		1		873		318		-		1,192
Income tax payable		13		-		-		-		-		13
Deferred income taxes		23		-		-		-		-		23
Accrued interest		-		155		1		1		-		157
Accrued liabilities		4		-		1,051		492		-		1,547
Total current liabilities		40		319		1,979		823		-		3,161
Long-term debt		-		15,885		127		728		-		16,740
Intercompany payable		-		14,822		20,071		14,117		(49,010)		-
Deferred income taxes		844		-		-		-		-		844
Other long-term liabilities		-		862		1,113		361		(642)		1,694
Total liabilities		884		31,888		23,290		16,029		(49,652)		22,439
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		520		-		520
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		1		-		-		-		-		1
Additional paid-in capital		2,101		1,294		1,471		523		(3,288)		2,101
Treasury stock, at cost		(7)		-		-		-		-		(7)
Accumulated other comprehensive loss		(70)		(70)		(17)		-		87		(70)
Retained earnings		2,056		2,138		2,430		(126)		(4,442)		2,056
Total Community Health Systems, Inc.
stockholders’ equity		4,081		3,362		3,884		397		(7,643)		4,081
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		79		-		79
Total equity		4,081		3,362		3,884		476		(7,643)		4,160
Total liabilities and equity	$	4,965	$	35,250	$	27,174	$	17,025	$	(57,295)	$	27,119

Condensed Consolidating Balance Sheet
December 31, 2014
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	368	$	141	$	-	$	509
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		1,272		2,137		-		3,409
Supplies		-		-		373		184		-		557
Prepaid income taxes		30		-		-		-		-		30
Deferred income taxes		341		-		-		-		-		341
Prepaid expenses and taxes		-		-		138		54		-		192
Other current assets		-		-		356		172		-		528
Total current assets		371		-		2,507		2,688		-		5,566
Intercompany receivable		1,199		16,560		2,532		7,877		(28,168)		-
Property and equipment, net		-		-		6,548		3,621		-		10,169
Goodwill		-		-		5,480		3,471		-		8,951
Other assets, net		15		302		1,874		1,179		(635)		2,735
Net investment in subsidiaries		3,290		18,229		7,399		-		(28,918)		-
Total assets	$	4,875	$	35,091	$	26,340	$	18,836	$	(57,721)	$	27,421
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	163	$	61	$	11	$	-	$	235
Accounts payable		-		-		909		384		-		1,293
Deferred income taxes		23		-		-		-		-		23
Accrued interest		-		225		2		-		-		227
Accrued liabilities		4		-		1,249		558		-		1,811
Total current liabilities		27		388		2,221		953		-		3,589
Long-term debt		-		15,820		139		722		-		16,681
Intercompany payable		-		14,752		19,066		15,795		(49,613)		-
Deferred income taxes		845		-		-		-		-		845
Other long-term liabilities		-		841		1,140		346		(635)		1,692
Total liabilities		872		31,801		22,566		17,816		(50,248)		22,807
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		531		-		531
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		1		-		-		-		-		1
Additional paid-in capital		2,095		1,208		1,369		528		(3,105)		2,095
Treasury stock, at cost		(7)		-		-		-		-		(7)
Accumulated other comprehensive loss		(63)		(63)		(25)		5		83		(63)
Retained earnings		1,977		2,145		2,430		(124)		(4,451)		1,977
Total Community Health Systems, Inc.
stockholders’ equity		4,003		3,290		3,774		409		(7,473)		4,003
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		80		-		80
Total equity		4,003		3,290		3,774		489		(7,473)		4,083
Total liabilities and equity	$	4,875	$	35,091	$	26,340	$	18,836	$	(57,721)	$	27,421

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2015
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	(10)	$	(123)	$	23	$	49	$	-	$	(61)
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(11)		(2)		-		(13)
Purchases of property and equipment		-		-		(199)		(42)		-		(241)
Proceeds from disposition of hospitals
and other ancillary operations		-		-		4		58		-		62
Proceeds from sale of property and equipment		-		-		-		3		-		3
Purchases of available-for-sale securities		-		-		(22)		(37)		-		(59)
Proceeds from sales of available-for-sale securities		-		-		19		37		-		56
Increase in other investments		-		-		(30)		(9)		-		(39)
Net cash used in investing activities		-		-		(239)		8		-		(231)
Cash flows from financing activities:
Proceeds from exercise of stock options		17		-		-		-		-		17
Repurchase of restricted stock shares for payroll
tax withholding requirements		(20)		-		-		-		-		(20)
Deferred financing costs and other
debt-related costs		-		(20)		-		-		-		(20)
Redemption of noncontrolling investments in joint
ventures		-		-		-		(7)		-		(7)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(23)		-		(23)
Changes in intercompany balances with
affiliates, net		13		77		(101)		11		-		-
Borrowings under credit agreements		-		1,250		1		-		-		1,251
Issuance of long-term debt		-		-		-		-		-		-
Proceeds from receivables facility		-		-		-		75		-		75
Repayments of long-term indebtedness		-		(1,184)		(15)		(69)		-		(1,268)
Net cash provided by (used in) financing
activities		10		123		(115)		(13)		-		5
Net change in cash and cash equivalents		-		-		(331)		44		-		(287)
Cash and cash equivalents at beginning of period		-		-		368		141		-		509
Cash and cash equivalents at end of period	$	-	$	-	$	37	$	185	$	-	$	222

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2014
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	73	$	298	$	62	$	(368)	$	-	$	65
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(2,760)		(14)		-		(2,774)
Purchases of property and equipment		-		-		(143)		(38)		-		(181)
Purchases of available-for-sale securities		-		-		-		(78)		-		(78)
Proceeds from sales of available-for-sale securities		-		-		-		76		-		76
Increase in other investments		-		-		(75)		(24)		-		(99)
Net cash used in investing activities		-		-		(2,978)		(78)		-		(3,056)
Cash flows from financing activities:
Proceeds from exercise of stock options		6		-		-		-		-		6
Repurchase of restricted stock shares for payroll
tax withholding requirements		(11)		-		-		-		-		(11)
Deferred financing costs and other
debt-related costs		-		(269)		-		-		-		(269)
Excess tax benefit relating to
stock-based compensation		3		-		-		-		-		3
Redemption of noncontrolling investments in joint
ventures		-		-		-		(5)		-		(5)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(19)		-		(19)
Changes in intercompany balances with
affiliates, net		(71)		(3,417)		3,117		371		-		-
Borrowings under credit agreements		-		7,062		17		-		-		7,079
Issuance of long-term debt		-		4,000		-		-		-		4,000
Proceeds from receivables facility		-		-		-		133		-		133
Repayments of long-term indebtedness		-		(7,674)		(7)		(5)		-		(7,686)
Net cash provided by (used in) financing
activities		(73)		(298)		3,127		475		-		3,231
Net change in cash and cash equivalents		-		-		211		29		-		240
Cash and cash equivalents at beginning of period		-		-		239		134		-		373
Cash and cash equivalents at end of period	$	-	$	-	$	450	$	163	$	-	$	613