Stockholders' Equity

6 Months Ended

Jun. 30, 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 June 30, 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 six months ended June 30, 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. Subject to certain exceptions, 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 June 30, 2015, under the most restrictive test under these agreements (and subject to certain exceptions), the Company has approximately $465 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 six-month period ended June 30, 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		33		-		-		-		(1)		189		10		198
Distributions to noncontrolling
interests, net of contributions		(34)		-		-		-		-		-		(14)		(14)
Purchase of subsidiary shares
from noncontrolling interests		(5)		-		(14)		-		-		-		6		(8)
Disposition of less-than-wholly
owned hospital		(8)		-		-		-		-		-		-		-
Other reclassifications of
noncontrolling interests		(1)		-		-		-		-		-		1		1
Adjustment to redemption
value of redeemable
noncontrolling interests		8		-		(8)		-		-		-		-		(8)
Issuance of common stock
in connection with the
exercise of stock options		-		-		22		-		-		-		-		22
Cancellation of restricted
stock for tax withholdings
on vested shares		-		-		(20)		-		-		-		-		(20)
Share-based compensation		-		-		30		-		-		-		-		30
Balance, June 30, 2015	$	524	$	1	$	2,105	$	(7)	$	(64)	$	2,166	$	83	$	4,284

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): 

	Six Months Ended
	June 30, 2015
Net income attributable to Community Health Systems,
Inc. stockholders	$	189
Transfers to the noncontrolling interests:
Net decrease in Community Health Systems, Inc. paid-in
capital for  purchase of subsidiary partnership interests		(14)
Net transfers to the noncontrolling interests		(14)
Change to Community Health Systems, Inc. stockholders’ equity
from net income attributable to Community Health Systems,
Inc. stockholders and transfers to noncontrolling interests	$	175