Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2015

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statement of Income (Loss)

Condensed Consolidating Statement of Income
Three Months Ended June 30, 2015
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(5)	$	3,539	$	2,080	$	-	$	5,614
Provision for bad debts		-		-		440		292		-		732
Net operating revenues		-		(5)		3,099		1,788		-		4,882
Operating costs and expenses:
Salaries and benefits		-		-		1,237		980		-		2,217
Supplies		-		-		492		258		-		750
Other operating expenses		-		-		763		362		-		1,125
Government settlement and related costs		-		-		(6)		-		-		(6)
Electronic health records incentive reimbursement		-		-		(42)		(13)		-		(55)
Rent		-		-		60		53		-		113
Depreciation and amortization		-		-		200		91		-		291
Total operating costs and expenses		-		-		2,704		1,731		-		4,435
Income from operations		-		(5)		395		57		-		447
Interest expense, net		-		28		197		14		-		239
Loss from early extinguishment of debt		-		9		-		-		-		9
Equity in earnings of unconsolidated affiliates		(111)		(137)		(27)		-		254		(21)
Impairment of long-lived assets		-		-		6		-		-		6
Income from continuing operations before income taxes		111		95		219		43		(254)		214
Provision for (benefit from) income taxes		-		(16)		83		7		-		74
Income from continuing operations		111		111		136		36		(254)		140
Discontinued operations, net of taxes:
Loss from operations of entities sold or held for sale		-		-		(3)		(3)		-		(6)
Loss from discontinued operations, net of taxes		-		-		(3)		(3)		-		(6)
Net income		111		111		133		33		(254)		134
Less: Net income attributable to noncontrolling interests		-		-		-		23		-		23
Net income attributable to Community Health Systems,
Inc. stockholders	$	111	$	111	$	133	$	10	$	(254)	$	111

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	$	2,126	$	-	$	5,508
Provision for bad debts		-		-		456		287		-		743
Net operating revenues		-		(5)		2,931		1,839		-		4,765
Operating costs and expenses:
Salaries and benefits		-		-		1,240		981		-		2,221
Supplies		-		-		481		255		-		736
Other operating expenses		-		-		703		412		-		1,115
Electronic health records incentive reimbursement		-		-		(61)		(23)		-		(84)
Rent		-		-		59		52		-		111
Depreciation and amortization		-		-		200		81		-		281
Amortization of software to be abandoned		-		-		19		14		-		33
Total operating costs and expenses		-		-		2,641		1,772		-		4,413
Income from operations		-		(5)		290		67		-		352
Interest expense, net		-		31		206		18		-		255
Equity in earnings of unconsolidated affiliates		(42)		(61)		(24)		-		115		(12)
Income from continuing operations before income taxes		42		25		108		49		(115)		109
Provision for (benefit from) income taxes		-		(17)		42		8		-		33
Income from continuing operations		42		42		66		41		(115)		76
Discontinued operations, net of taxes:
Loss from operations of entities sold or held for sale		-		-		(8)		7		-		(1)
Impairment of hospitals sold or held for sale		-		-		-		(5)		-		(5)
Loss from discontinued operations, net of taxes		-		-		(8)		2		-		(6)
Net income		42		42		58		43		(115)		70
Less: Net income attributable to noncontrolling interests		-		-		-		28		-		28
Net income attributable to Community Health Systems,
Inc. stockholders	$	42	$	42	$	58	$	15	$	(115)	$	42

Condensed Consolidating Statement of Income
Six Months Ended June 30, 2015
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(9)	$	7,027	$	4,242	$	-	$	11,260
Provision for bad debts		-		-		887		580		-		1,467
Net operating revenues		-		(9)		6,140		3,662		-		9,793
Operating costs and expenses:
Salaries and benefits		-		-		2,458		2,016		-		4,474
Supplies		-		-		984		528		-		1,512
Other operating expenses		-		-		1,474		751		-		2,225
Government settlement and related costs		-		-		1		-		-		1
Electronic health records incentive reimbursement		-		-		(58)		(23)		-		(81)
Rent		-		-		120		109		-		229
Depreciation and amortization		-		-		401		186		-		587
Total operating costs and expenses		-		-		5,380		3,567		-		8,947
Income from operations		-		(9)		760		95		-		846
Interest expense, net		-		48		408		25		-		481
Loss from early extinguishment of debt		-		16		-		-		-		16
Equity in earnings of unconsolidated affiliates		(189)		(238)		(36)		-		424		(39)
Impairment of long-lived assets		-		-		6		-		-		6
Income from continuing operations before income taxes		189		165		382		70		(424)		382
Provision for (benefit from) income taxes		-		(24)		144		10		-		130
Income from continuing operations		189		189		238		60		(424)		252
Discontinued operations, net of taxes:
Loss from operations of entities sold or held for sale		-		-		(3)		(14)		-		(17)
Impairment of hospitals sold or held for sale		-		-		(2)		-		-		(2)
Loss on sale, net		-		-		2		(3)		-		(1)
Loss from discontinued operations, net of taxes		-		-		(3)		(17)		-		(20)
Net income		189		189		235		43		(424)		232
Less: Net income attributable to noncontrolling interests		-		-		-		43		-		43
Net income attributable to Community Health Systems,
Inc. stockholders	$	189	$	189	$	235	$	-	$	(424)	$	189

Condensed Consolidating Statement of (Loss) Income
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)	$	6,504	$	3,888	$	-	$	10,383
Provision for bad debts		-		-		923		519		-		1,442
Net operating revenues		-		(9)		5,581		3,369		-		8,941
Operating costs and expenses:
Salaries and benefits		-		-		2,393		1,820		-		4,213
Supplies		-		-		899		469		-		1,368
Other operating expenses		-		-		1,369		764		-		2,133
Electronic health records incentive reimbursement		-		-		(84)		(40)		-		(124)
Rent		-		-		114		95		-		209
Depreciation and amortization		-		-		388		148		-		536
Amortization of software to be abandoned		-		-		45		30		-		75
Total operating costs and expenses		-		-		5,124		3,286		-		8,410
Income from operations		-		(9)		457		83		-		531
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 from continuing operations before income taxes		(70)		(122)		66		52		52		(22)
Provision for (benefit from) income taxes		-		(52)		25		4		-		(23)
Income from continuing operations		(70)		(70)		41		48		52		1
Discontinued operations, net of taxes:
Loss from operations of entities sold or held for sale		-		-		(14)		8		-		(6)
Impairment of hospitals sold or held for sale		-		-		-		(22)		-		(22)
Loss from discontinued operations, net of taxes		-		-		(14)		(14)		-		(28)
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)

Schedule of Condensed Consolidating Statement of Comprehensive Income (Loss)

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2015
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net income	$	111	$	111	$	133	$	33	$	(254)	$	134
Other comprehensive income (loss), net of income taxes:
Net change in fair value of interest rate swaps		8		8		-		-		(8)		8
Net change in fair value of available-for-sale securities		(2)		(2)		(2)		-		4		(2)
Amortization and recognition of unrecognized
pension cost components		-		-		-		-		-		-
Other comprehensive income (loss)		6		6		(2)		-		(4)		6
Comprehensive income		117		117		131		33		(258)		140
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		23		-		23
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	117	$	117	$	131	$	10	$	(258)	$	117

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	$	43	$	(115)	$	70
Other comprehensive income (loss), net of income 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		43		(121)		73
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		28		-		28
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	45	$	45	$	61	$	15	$	(121)	$	45

Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2015
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net income	$	189	$	189	$	235	$	43	$	(424)	$	232
Other comprehensive income (loss), net of income taxes:
Net change in fair value of interest rate swaps		(1)		(1)		-		-		1		(1)
Net change in fair value of available-for-sale securities		(1)		(1)		(1)		-		2		(1)
Amortization and recognition of unrecognized
pension cost components		1		1		1		-		(2)		1
Other comprehensive income (loss)		(1)		(1)		-		-		1		(1)
Comprehensive income		188		188		235		43		(423)		231
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		43		-		43
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	188	$	188	$	235	$	-	$	(423)	$	188

Condensed Consolidating Statement of Comprehensive (Loss) Income
Six Months Ended June 30, 2014
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net loss	$	(70)	$	(70)	$	27	$	34	$	52	$	(27)
Other comprehensive income (loss), net of income taxes:
Net change in fair value of interest rate swaps		9		9		-		-		(9)		9
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)		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)

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
June 30, 2015
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	190	$	175	$	-	$	365
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		1,452		2,039		-		3,491
Supplies		-		-		385		183		-		568
Deferred income taxes		345		-		-		-		-		345
Prepaid expenses and taxes		-		-		161		55		-		216
Other current assets		-		-		308		207		-		515
Total current assets		345		-		2,496		2,659		-		5,500
Intercompany receivable		1,327		16,467		3,667		6,129		(27,590)		-
Property and equipment, net		-		-		6,690		3,400		-		10,090
Goodwill		-		-		5,483		3,473		-		8,956
Other assets, net		6		292		1,820		1,151		(629)		2,640
Net investment in subsidiaries		3,477		18,637		7,794		-		(29,908)		-
Total assets	$	5,155	$	35,396	$	27,950	$	16,812	$	(58,127)	$	27,186
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	162	$	72	$	12	$	-	$	246
Accounts payable		-		-		827		317		-		1,144
Income tax payable		83		-		-		-		-		83
Deferred income taxes		23		-		-		-		-		23
Accrued interest		-		225		-		1		-		226
Accrued liabilities		4		-		962		542		-		1,508
Total current liabilities		110		387		1,861		872		-		3,230
Long-term debt		-		15,793		117		711		-		16,621
Intercompany payable		-		14,882		20,834		13,904		(49,620)		-
Deferred income taxes		844		-		-		-		-		844
Other long-term liabilities		-		856		1,122		334		(629)		1,683
Total liabilities		954		31,918		23,934		15,821		(50,249)		22,378
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		524		-		524
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		1		-		-		-		-		1
Additional paid-in capital		2,105		1,335		1,521		508		(3,364)		2,105
Treasury stock, at cost		(7)		-		-		-		-		(7)
Accumulated other comprehensive loss		(64)		(64)		(18)		(2)		84		(64)
Retained earnings		2,166		2,207		2,513		(122)		(4,598)		2,166
Total Community Health Systems, Inc.
stockholders’ equity		4,201		3,478		4,016		384		(7,878)		4,201
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		83		-		83
Total equity		4,201		3,478		4,016		467		(7,878)		4,284
Total liabilities and equity	$	5,155	$	35,396	$	27,950	$	16,812	$	(58,127)	$	27,186

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
Six Months Ended June 30, 2015
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	(14)	$	(81)	$	285	$	314	$	-	$	504
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(22)		(5)		-		(27)
Purchases of property and equipment		-		-		(348)		(126)		-		(474)
Proceeds from disposition of hospitals
and other ancillary operations		-		-		4		58		-		62
Proceeds from sale of property and equipment		-		-		8		3		-		11
Purchases of available-for-sale securities		-		-		(32)		(58)		-		(90)
Proceeds from sales of available-for-sale securities		-		-		30		56		-		86
Increase in other investments		-		-		(63)		(17)		-		(80)
Net cash used in investing activities		-		-		(423)		(89)		-		(512)
Cash flows from financing activities:
Proceeds from exercise of stock options		22		-		-		-		-		22
Repurchase of restricted stock shares for payroll
tax withholding requirements		(20)		-		-		-		-		(20)
Deferred financing costs and other
debt-related costs		-		(30)		-		-		-		(30)
Redemption of noncontrolling investments in joint
ventures		-		-		-		(14)		-		(14)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(48)		-		(48)
Changes in intercompany balances with
affiliates, net		12		137		(33)		(116)		-		-
Borrowings under credit agreements		-		2,355		30		-		-		2,385
Proceeds from receivables facility		-		-		-		91		-		91
Repayments of long-term indebtedness		-		(2,381)		(37)		(104)		-		(2,522)
Net cash provided by (used in) financing
activities		14		81		(40)		(191)		-		(136)
Net change in cash and cash equivalents		-		-		(178)		34		-		(144)
Cash and cash equivalents at beginning of period		-		-		368		141		-		509
Cash and cash equivalents at end of period	$	-	$	-	$	190	$	175	$	-	$	365

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 provided (used in) 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 hospitals
and other 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)
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 (used in) provided by 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