Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2016

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Loss
Three Months Ended June 30, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(6)	$	3,220	$	2,076	$	-	$	5,290
Provision for bad debts		-		-		452		248		-		700
Net operating revenues		-		(6)		2,768		1,828		-		4,590
Operating costs and expenses:
Salaries and benefits		-		-		1,130		1,024		-		2,154
Supplies		-		-		495		264		-		759
Other operating expenses		-		-		683		373		-		1,056
Government settlement and related costs		-		-		-		-		-		-
Electronic health records incentive reimbursement		-		-		(21)		(10)		-		(31)
Rent		-		-		56		56		-		112
Depreciation and amortization		-		-		181		95		-		276
Impairment of goodwill and long-lived assets		-		-		1,134		505		-		1,639
Total operating costs and expenses		-		-		3,658		2,307		-		5,965
Loss from operations		-		(6)		(890)		(479)		-		(1,375)
Interest expense, net		-		39		186		21		-		246
Loss from early extinguishment of debt		-		30		-		-		-		30
Gain on sale of investments in
unconsolidated affiliates		-		-		(94)		-		-		(94)
Equity in earnings of unconsolidated affiliates		1,432		1,384		462		-		(3,292)		(14)
Loss from continuing operations before income taxes		(1,432)		(1,459)		(1,444)		(500)		3,292		(1,543)
Provision for (benefit from) income taxes		-		(27)		(57)		(54)		-		(138)
Loss from continuing operations		(1,432)		(1,432)		(1,387)		(446)		3,292		(1,405)
Discontinued operations, net of taxes:
(Loss) income from operations of entities sold or
held for sale		-		-		(2)		1		-		(1)
(Loss) income from discontinued operations, net of taxes		-		-		(2)		1		-		(1)
Net loss		(1,432)		(1,432)		(1,389)		(445)		3,292		(1,406)
Less: Net income attributable to noncontrolling interests		-		-		-		26		-		26
Net loss attributable to Community Health Systems,
Inc. stockholders	$	(1,432)	$	(1,432)	$	(1,389)	$	(471)	$	3,292	$	(1,432)

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)	$	3,182	$	2,437	$	-	$	5,614
Provision for bad debts		-		-		410		322		-		732
Net operating revenues		-		(5)		2,772		2,115		-		4,882
Operating costs and expenses:
Salaries and benefits		-		-		1,083		1,134		-		2,217
Supplies		-		-		465		285		-		750
Other operating expenses		-		-		652		473		-		1,125
Government settlement and related costs		-		-		(6)		-		-		(6)
Electronic health records incentive reimbursement		-		-		(36)		(19)		-		(55)
Rent		-		-		54		59		-		113
Depreciation and amortization		-		-		178		113		-		291
Impairment of long-lived assets		-		-		6		-		-		6
Total operating costs and expenses		-		-		2,396		2,045		-		4,441
(Loss) income from operations		-		(5)		376		70		-		441
Interest expense, net		-		28		177		34		-		239
Loss from early extinguishment of debt		-		9		-		-		-		9
Equity in earnings of unconsolidated affiliates		(111)		(139)		(20)		-		249		(21)
Income from continuing operations before income taxes		111		97		219		36		(249)		214
Provision for (benefit from) income taxes		-		(14)		81		7		-		74
Income from continuing operations		111		111		138		29		(249)		140
Discontinued operations, net of taxes:
Loss from operations of entities sold or held for sale		-		-		(2)		(4)		-		(6)
Income (loss) on sale, net		-		-		1		(1)		-		-
Loss from discontinued operations, net of taxes		-		-		(1)		(5)		-		(6)
Net income		111		111		137		24		(249)		134
Less: Net income attributable to noncontrolling interests		-		-		-		23		-		23
Net income (loss) attributable to Community Health
Systems, Inc. stockholders	$	111	$	111	$	137	$	1	$	(249)	$	111

Condensed Consolidating Statement of Loss
Six Months Ended June 30, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(12)	$	6,507	$	4,549	$	-	$	11,044
Provision for bad debts		-		-		929		526		-		1,455
Net operating revenues		-		(12)		5,578		4,023		-		9,589
Operating costs and expenses:
Salaries and benefits		-		-		2,235		2,235		-		4,470
Supplies		-		-		991		568		-		1,559
Other operating expenses		-		-		1,362		867		-		2,229
Government settlement and related costs		-		-		1		-		-		1
Electronic health records incentive reimbursement		-		-		(29)		(20)		-		(49)
Rent		-		-		113		118		-		231
Depreciation and amortization		-		-		366		208		-		574
Impairment of goodwill and long-lived assets		-		-		1,145		511		-		1,656
Total operating costs and expenses		-		-		6,184		4,487		-		10,671
Loss from operations		-		(12)		(606)		(464)		-		(1,082)
Interest expense, net		-		74		366		56		-		496
Loss from early extinguishment of debt		-		30		-		-		-		30
Gain on sale of investments in
unconsolidated affiliates		-		-		(94)		-		-		(94)
Equity in earnings of unconsolidated affiliates		1,421		1,325		469		-		(3,249)		(34)
Loss from continuing operations before income taxes		(1,421)		(1,441)		(1,347)		(520)		3,249		(1,480)
Provision for (benefit from) income taxes		-		(20)		(19)		(73)		-		(112)
Loss from continuing operations		(1,421)		(1,421)		(1,328)		(447)		3,249		(1,368)
Discontinued operations, net of taxes:
Loss from operations of entities sold or held for sale		-		-		(3)		1		-		(2)
Impairment of hospitals sold or held for sale		-		-		-		(1)		-		(1)
Loss from discontinued operations, net of taxes		-		-		(3)		-		-		(3)
Net loss		(1,421)		(1,421)		(1,331)		(447)		3,249		(1,371)
Less: Net income attributable to noncontrolling interests		-		-		-		50		-		50
Net loss attributable to Community Health Systems,
Inc. stockholders	$	(1,421)	$	(1,421)	$	(1,331)	$	(497)	$	3,249	$	(1,421)

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)	$	6,376	$	4,893	$	-	$	11,260
Provision for bad debts		-		-		848		619		-		1,467
Net operating revenues		-		(9)		5,528		4,274		-		9,793
Operating costs and expenses:
Salaries and benefits		-		-		2,177		2,297		-		4,474
Supplies		-		-		934		578		-		1,512
Other operating expenses		-		-		1,275		950		-		2,225
Government settlement and related costs		-		-		1		-		-		1
Electronic health records incentive reimbursement		-		-		(46)		(35)		-		(81)
Rent		-		-		110		119		-		229
Depreciation and amortization		-		-		360		227		-		587
Impairment of long-lived assets		-		-		6		-		-		6
Total operating costs and expenses		-		-		4,817		4,136		-		8,953
(Loss) income from operations		-		(9)		711		138		-		840
Interest expense, net		-		48		369		64		-		481
Loss from early extinguishment of debt		-		16		-		-		-		16
Equity in earnings of unconsolidated affiliates		(189)		(240)		(32)		-		422		(39)
Income from continuing operations before income taxes		189		167		374		74		(422)		382
Provision for (benefit from) income taxes		-		(22)		137		15		-		130
Income from continuing operations		189		189		237		59		(422)		252
Discontinued operations, net of taxes:
Loss from operations of entities sold or held for sale		-		-		-		(17)		-		(17)
Impairment of hospitals sold or held for sale		-		-		(2)		-		-		(2)
Loss on sale, net		-		-		-		(1)		-		(1)
Loss from discontinued operations, net of taxes		-		-		(2)		(18)		-		(20)
Net income		189		189		235		41		(422)		232
Less: Net income attributable to noncontrolling interests		-		-		-		43		-		43
Net income (loss) attributable to Community Health
Systems, Inc. stockholders	$	189	$	189	$	235	$	(2)	$	(422)	$	189

Schedule of Condensed Consolidating Statement of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Loss
Three Months Ended June 30, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net loss	$	(1,432)	$	(1,432)	$	(1,389)	$	(445)	$	3,292	$	(1,406)
Other comprehensive loss, net of income taxes:
Net change in fair value of interest rate swaps		(2)		(2)		-		-		2		(2)
Net change in fair value of available-for-sale securities		(3)		(3)		(3)		-		6		(3)
Amortization and recognition of unrecognized
pension cost components		2		2		2		-		(4)		2
Other comprehensive loss		(3)		(3)		(1)		-		4		(3)
Comprehensive loss		(1,435)		(1,435)		(1,390)		(445)		3,296		(1,409)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		26		-		26
Comprehensive loss attributable to Community
Health Systems, Inc. stockholders	$	(1,435)	$	(1,435)	$	(1,390)	$	(471)	$	3,296	$	(1,435)

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	$	137	$	24	$	(249)	$	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		135		24		(253)		140
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		23		-		23
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	117	$	117	$	135	$	1	$	(253)	$	117

Condensed Consolidating Statement of Comprehensive Loss
Six Months Ended June 30, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net loss	$	(1,421)	$	(1,421)	$	(1,331)	$	(447)	$	3,249	$	(1,371)
Other comprehensive (loss) income, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		(21)		(21)		-		-		21		(21)
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		3		3		3		-		(6)		3
Other comprehensive (loss) income		(19)		(19)		2		-		17		(19)
Comprehensive loss		(1,440)		(1,440)		(1,329)		(447)		3,266		(1,390)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		50		-		50
Comprehensive loss attributable to
Community Health Systems, Inc. stockholders	$	(1,440)	$	(1,440)	$	(1,329)	$	(497)	$	3,266	$	(1,440)

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	$	41	$	(422)	$	232
Other comprehensive loss, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		(1)		(1)		-		-		1		(1)
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 loss		(1)		(1)		-		-		1		(1)
Comprehensive income		188		188		235		41		(421)		231
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		43		-		43
Comprehensive income (loss) attributable to
Community Health Systems, Inc. stockholders	$	188	$	188	$	235	$	(2)	$	(421)	$	188

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
June 30, 2016
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	178	$	283	$	-	$	461
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		846		2,333		-		3,179
Supplies		-		-		359		168		-		527
Prepaid income taxes		33		-		-		-		-		33
Prepaid expenses and taxes		-		-		150		67		-		217
Other current assets		-		-		252		173		-		425
Total current assets		33		-		1,785		3,024		-		4,842
Intercompany receivable		262		15,370		5,402		8,453		(29,487)		-
Property and equipment, net		-		-		5,905		3,050		-		8,955
Goodwill		-		-		4,055		2,871		-		6,926
Other assets, net		-		-		2,132		842		(1,265)		1,709
Net investment in subsidiaries		2,000		20,224		9,834		-		(32,058)		-
Total assets	$	2,295	$	35,594	$	29,113	$	18,240	$	(62,810)	$	22,432
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	170	$	73	$	10	$	-	$	253
Accounts payable		-		-		695		284		-		979
Accrued interest		-		206		1		1		-		208
Accrued liabilities		4		-		707		577		-		1,288
Total current liabilities		4		376		1,476		872		-		2,728
Long-term debt		-		14,232		107		771		-		15,110
Intercompany payable		-		17,736		23,705		14,994		(56,435)		-
Deferred income taxes		388		-		-		-		-		388
Other long-term liabilities		8		1,250		1,177		488		(1,265)		1,658
Total liabilities		400		33,594		26,465		17,125		(57,700)		19,884
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		546		-		546
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		1		-		-		-		-		1
Additional paid-in capital		1,965		788		1,004		763		(2,555)		1,965
Treasury stock, at cost		-		-		-		-		-		-
Accumulated other comprehensive loss		(90)		(90)		(15)		(8)		113		(90)
Retained earnings (deficit)		19		1,302		1,659		(293)		(2,668)		19
Total Community Health Systems, Inc.
stockholders’ equity		1,895		2,000		2,648		462		(5,110)		1,895
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		107		-		107
Total equity		1,895		2,000		2,648		569		(5,110)		2,002
Total liabilities and equity	$	2,295	$	35,594	$	29,113	$	18,240	$	(62,810)	$	22,432

Condensed Consolidating Balance Sheet
December 31, 2015
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	32	$	152	$	-	$	184
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		894		2,717		-		3,611
Supplies		-		-		355		225		-		580
Prepaid income taxes		27		-		-		-		-		27
Prepaid expenses and taxes		-		-		125		72		-		197
Other current assets		-		-		335		232		-		567
Total current assets		27		-		1,741		3,398		-		5,166
Intercompany receivable		1,159		16,004		4,590		7,478		(29,231)		-
Property and equipment, net		-		-		6,199		3,913		-		10,112
Goodwill		-		-		4,965		4,000		-		8,965
Other assets, net		-		-		2,018		1,379		(1,045)		2,352
Net investment in subsidiaries		3,438		20,218		9,414		-		(33,070)		-
Total assets	$	4,624	$	36,222	$	28,927	$	20,168	$	(63,346)	$	26,595
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	162	$	62	$	5	$	-	$	229
Accounts payable		-		-		774		484		-		1,258
Accrued interest		-		226		-		1		-		227
Accrued liabilities		4		-		814		540		-		1,358
Total current liabilities		4		388		1,650		1,030		-		3,072
Long-term debt		-		15,603		136		817		-		16,556
Intercompany payable		-		15,577		22,143		16,196		(53,916)		-
Deferred income taxes		593		-		-		-		-		593
Other long-term liabilities		8		1,216		1,028		491		(1,045)		1,698
Total liabilities		605		32,784		24,957		18,534		(54,961)		21,919
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		571		-		571
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		1		-		-		-		-		1
Additional paid-in capital		1,963		1,324		1,505		964		(3,793)		1,963
Treasury stock, at cost		(7)		-		-		-		-		(7)
Accumulated other comprehensive loss		(73)		(73)		(22)		(1)		96		(73)
Retained earnings		2,135		2,187		2,487		14		(4,688)		2,135
Total Community Health Systems, Inc.
stockholders’ equity		4,019		3,438		3,970		977		(8,385)		4,019
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		86		-		86
Total equity		4,019		3,438		3,970		1,063		(8,385)		4,105
Total liabilities and equity	$	4,624	$	36,222	$	28,927	$	20,168	$	(63,346)	$	26,595

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	(5)	$	(294)	$	599	$	332	$	-	$	632
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(3)		(111)		-		(114)
Purchases of property and equipment		-		-		(282)		(125)		-		(407)
Proceeds from disposition of hospitals
and other ancillary operations		-		-		8		4		-		12
Proceeds from sale of property and equipment		-		-		4		3		-		7
Purchases of available-for-sale securities		-		-		(21)		(42)		-		(63)
Proceeds from sales of available-for-sale securities		-		-		14		219		-		233
Proceeds from sale of investments in
unconsolidated affiliates		-		-		403		-		-		403
Distribution from Quorum Health Corporation		-		1,219		-		-		-		1,219
Increase in other investments		-		-		(84)		(29)		-		(113)
Net cash provided by (used in) investing
activities		-		1,219		39		(81)		-		1,177
Cash flows from financing activities:
Repurchase of restricted stock shares for payroll
tax withholding requirements		(5)		-		-		-		-		(5)
Deferred financing costs and other
debt-related costs		-		(22)		-		-		-		(22)
Redemption of noncontrolling investments in joint
ventures		-		-		-		(16)		-		(16)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(47)		-		(47)
Changes in intercompany balances with
affiliates, net		10		497		(469)		(38)		-		-
Borrowings under credit agreements		-		2,783		2		21		-		2,806
Proceeds from receivables facility		-		-		-		31		-		31
Repayments of long-term indebtedness		-		(4,183)		(25)		(71)		-		(4,279)
Net cash provided by (used in) financing
activities		5		(925)		(492)		(120)		-		(1,532)
Net change in cash and cash equivalents		-		-		146		131		-		277
Cash and cash equivalents at beginning of period		-		-		32		152		-		184
Cash and cash equivalents at end of period	$	-	$	-	$	178	$	283	$	-	$	461

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)	$	242	$	357	$	-	$	504
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(20)		(7)		-		(27)
Purchases of property and equipment		-		-		(338)		(136)		-		(474)
Proceeds from disposition of hospitals
and other ancillary operations		-		-		4		58		-		62
Proceeds from sale of property and equipment		-		-		5		6		-		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		-		-		(57)		(23)		-		(80)
Net cash used in investing activities		-		-		(408)		(104)		-		(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		(26)		(123)		-		-
Borrowings under credit agreements		-		2,355		30		-		-		2,385
Proceeds from receivables facility		-		-		-		91		-		91
Repayments of long-term indebtedness		-		(2,381)		(19)		(122)		-		(2,522)
Net cash provided by (used in) financing
activities		14		81		(15)		(216)		-		(136)
Net change in cash and cash equivalents		-		-		(181)		37		-		(144)
Cash and cash equivalents at beginning of period		-		-		373		136		-		509
Cash and cash equivalents at end of period	$	-	$	-	$	192	$	173	$	-	$	365