Supplemental Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2017

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Loss
Three Months Ended March 31, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(6)	$	3,367	$	1,807	$	-	$	5,168
Provision for bad debts		-		-		489		193		-		682
Net operating revenues		-		(6)		2,878		1,614		-		4,486
Operating costs and expenses:
Salaries and benefits		-		-		1,135		926		-		2,061
Supplies		-		-		513		236		-		749
Other operating expenses		-		-		751		306		-		1,057
Government and other legal settlements and
related costs		-		-		(41)		-		-		(41)
Electronic health records incentive reimbursement		-		-		(2)		(4)		-		(6)
Rent		-		-		60		49		-		109
Depreciation and amortization		-		-		154		82		-		236
Impairment and (gain) loss on sale of businesses, net		-		-		184		66		-		250
Total operating costs and expenses		-		-		2,754		1,661		-		4,415
Loss from operations		-		(6)		124		(47)		-		71
Interest expense, net		-		70		153		6		-		229
Loss from early extinguishment of debt		-		21		-		-		-		21
Equity in earnings of unconsolidated affiliates		199		120		54		-		(376)		(3)
(Loss) income from continuing operations
before income taxes		(199)		(217)		(83)		(53)		376		(176)
(Benefit from) provision for income taxes		-		(18)		35		(17)		-		-
(Loss) income from continuing operations		(199)		(199)		(118)		(36)		376		(176)
Discontinued operations, net of taxes:
(Loss) income from operations of entities
sold or held for sale		-		-		(3)		2		-		(1)
Impairment of hospitals sold or held for sale		-		-		-		-		-		-
Loss from discontinued operations, net of taxes		-		-		(3)		2		-		(1)
Net (loss) income		(199)		(199)		(121)		(34)		376		(177)
Less: Net income attributable to noncontrolling interests		-		-		-		22		-		22
Net (loss) income attributable to Community
Health Systems, Inc. stockholders	$	(199)	$	(199)	$	(121)	$	(56)	$	376	$	(199)

Condensed Consolidating Statement of Income
Three Months Ended March 31, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(6)	$	3,357	$	2,403	$	-	$	5,754
Provision for bad debts		-		-		490		265		-		755
Net operating revenues		-		(6)		2,867		2,138		-		4,999
Operating costs and expenses:
Salaries and benefits		-		-		1,128		1,189		-		2,317
Supplies		-		-		506		293		-		799
Other operating expenses		-		-		696		477		-		1,173
Electronic health records incentive reimbursement		-		-		(6)		(12)		-		(18)
Rent		-		-		59		60		-		119
Depreciation and amortization		-		-		188		110		-		298
Impairment and (gain) loss on sale of businesses, net		-		-		12		5		-		17
Total operating costs and expenses		-		-		2,583		2,122		-		4,705
(Loss) income from operations		-		(6)		284		16		-		294
Interest expense, net		-		35		182		34		-		251
Equity in earnings of unconsolidated affiliates		(11)		(58)		6		-		43		(20)
Income (loss) from continuing operations before
income taxes		11		17		96		(18)		(43)		63
Provision for (benefit from) income taxes		-		6		38		(18)		-		26
Income (loss) from continuing operations		11		11		58		-		(43)		37
Discontinued operations, net of taxes:
Loss (gain) from operations of entities sold or
held for sale		-		-		(2)		2		-		-
Impairment of hospitals sold or held for sale		-		-		-		(1)		-		(1)
Loss (gain) from discontinued operations, net of taxes		-		-		(2)		1		-		(1)
Net income		11		11		56		1		(43)		36
Less: Net income attributable to noncontrolling interests		-		-		-		25		-		25
Net income (loss) attributable to Community Health
Systems, Inc. stockholders	$	11	$	11	$	56	$	(24)	$	(43)	$	11

Schedule of Condensed Consolidating Statement of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Loss
Three Months Ended March 31, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net loss	$	(199)	$	(199)	$	(121)	$	(34)	$	376	$	(177)
Other comprehensive income, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		5		5		-		-		(5)		5
Net change in fair value of available-for-sale securities,
net of tax		3		3		3		-		(6)		3
Amortization and recognition of unrecognized pension
cost components, net of tax		-		-		-		-		-		-
Other comprehensive income		8		8		3		-		(11)		8
Comprehensive loss		(191)		(191)		(118)		(34)		365		(169)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		22		-		22
Comprehensive loss attributable to
Community Health Systems, Inc. stockholders	$	(191)	$	(191)	$	(118)	$	(56)	$	365	$	(191)

Condensed Consolidating Statement of Comprehensive Loss
Three Months Ended March 31, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net income	$	11	$	11	$	56	$	1	$	(43)	$	36
Other comprehensive (loss) income, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		(19)		(19)		-		-		19		(19)
Net change in fair value of available-for-sale securities,
net of tax		2		2		2		-		(4)		2
Amortization and recognition of unrecognized pension
cost components, net of tax		1		1		1		-		(2)		1
Other comprehensive (loss) income		(16)		(16)		3		-		13		(16)
Comprehensive (loss) income		(5)		(5)		59		1		(30)		20
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		25		-		25
Comprehensive (loss) income attributable to
Community Health Systems, Inc. stockholders	$	(5)	$	(5)	$	59	$	(24)	$	(30)	$	(5)

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
March 31, 2017
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	198	$	49	$	-	$	247
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		706		2,458		-		3,164
Supplies		-		-		299		159		-		458
Prepaid income taxes		17		-		-		-		-		17
Prepaid expenses and taxes		-		-		160		58		-		218
Other current assets		-		-		454		217		-		671
Total current assets		17		-		1,817		2,941		-		4,775
Intercompany receivable		303		14,719		521		5,737		(21,280)		-
Property and equipment, net		-		-		4,862		2,777		-		7,639
Goodwill		-		-		3,562		2,765		-		6,327
Other assets, net		15		-		3,187		1,081		(1,364)		2,919
Net investment in subsidiaries		1,538		22,452		9,002		-		(32,992)		-
Total assets	$	1,873	$	37,171	$	22,951	$	15,301	$	(55,636)	$	21,660
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	263	$	38	$	257	$	-	$	558
Accounts payable		-		-		743		245		-		988
Accrued interest		-		143		1		1		-		145
Accrued liabilities		17		-		821		467		-		1,305
Total current liabilities		17		406		1,603		970		-		2,996
Long-term debt		-		13,905		227		555		-		14,687
Intercompany payable		-		19,931		17,660		12,174		(49,765)		-
Deferred income taxes		415		-		-		-		-		415
Other long-term liabilities		12		1,392		1,080		350		(1,365)		1,469
Total liabilities		444		35,634		20,570		14,049		(51,130)		19,567
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		552		-		552
Equity:
Community Health Systems, Inc. stockholders’
equity:
Common stock		1		-		-		-		-		1
Additional paid-in capital		1,980		600		906		928		(2,434)		1,980
Accumulated other comprehensive loss		(54)		(54)		(21)		(7)		82		(54)
(Accumulated deficit) retained earnings		(498)		991		1,496		(333)		(2,154)		(498)
Total Community Health Systems, Inc.
stockholders’ equity		1,429		1,537		2,381		588		(4,506)		1,429
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		112		-		112
Total equity		1,429		1,537		2,381		700		(4,506)		1,541
Total liabilities and equity	$	1,873	$	37,171	$	22,951	$	15,301	$	(55,636)	$	21,660

Condensed Consolidating Balance Sheet
December 31, 2016
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	162	$	76	$	-	$	238
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		843		2,333		-		3,176
Supplies		-		-		324		156		-		480
Prepaid income taxes		17		-		-		-		-		17
Prepaid expenses and taxes		-		-		133		54		-		187
Other current assets		-		-		283		285		-		568
Total current assets		17		-		1,745		2,904		-		4,666
Intercompany receivable		295		14,966		667		6,985		(22,913)		-
Property and equipment, net		-		-		5,403		2,746		-		8,149
Goodwill		-		-		3,735		2,786		-		6,521
Other assets, net		15		-		2,820		995		(1,222)		2,608
Net investment in subsidiaries		1,728		22,205		8,607		-		(32,540)		-
Total assets	$	2,055	$	37,171	$	22,977	$	16,416	$	(56,675)	$	21,944
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	149	$	56	$	250	$	-	$	455
Accounts payable		-		-		715		280		-		995
Accrued interest		-		205		1		1		-		207
Accrued liabilities		17		-		775		438		-		1,230
Total current liabilities		17		354		1,547		969		-		2,887
Long-term debt		-		14,018		233		538		-		14,789
Intercompany payable		-		19,811		17,508		13,393		(50,712)		-
Deferred income taxes		411		-		-		-		-		411
Other long-term liabilities		12		1,259		1,187		339		(1,222)		1,575
Total liabilities		440		35,442		20,475		15,239		(51,934)		19,662
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		554		-		554
Equity:
Community Health Systems, Inc. stockholders’
equity:
Common stock		1		-		-		-		-		1
Additional paid-in capital		1,975		676		1,080		816		(2,572)		1,975
Treasury stock, at cost		-		(62)		(22)		(9)		93		-
Accumulated other comprehensive loss		(62)		-		-		-		-		(62)
Retained earnings		(299)		1,115		1,444		(297)		(2,262)		(299)
Total Community Health Systems, Inc.
stockholders’ equity		1,615		1,729		2,502		510		(4,741)		1,615
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		113		-		113
Total equity		1,615		1,729		2,502		623		(4,741)		1,728
Total liabilities and equity	$	2,055	$	37,171	$	22,977	$	16,416	$	(56,675)	$	21,944

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2017
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash provided by (used in) operating
activities	$	1	$	(124)	$	192	$	173	$	-	$	242
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		-		(2)		-		(2)
Purchases of property and equipment		-		-		(99)		(47)		-		(146)
Proceeds from sale of property and equipment		-		-		-		-		-		-
Purchases of available-for-sale securities		-		-		(8)		(4)		-		(12)
Proceeds from sales of available-for-sale securities		-		-		20		6		-		26
Increase in other investments		-		-		(33)		(4)		-		(37)
Net cash used in investing  activities		-		-		(120)		(51)		-		(171)
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		-		(40)		-		-		-		(40)
Proceeds from noncontrolling investors in
joint ventures		-		-		-		5		-		5
Redemption of noncontrolling investments in
joint ventures		-		-		-		(4)		-		(4)
Distributions to noncontrolling investors in
joint ventures		-		-		-		(28)		-		(28)
Changes in intercompany balances with
affiliates, net		4		157		(16)		(145)		-		-
Borrowings under credit agreements		-		596		12		2		-		610
Issuance of long-term debt		-		2,200		-		-		-		2,200
Proceeds from receivables facility		-		-		-		26		-		26
Repayments of long-term indebtedness		-		(2,789)		(32)		(5)		-		(2,826)
Net cash (used in) provided by financing
activities		(1)		124		(36)		(149)		-		(62)
Net change in cash and cash equivalents		-		-		36		(27)		-		9
Cash and cash equivalents at beginning of period		-		-		162		76		-		238
Cash and cash equivalents at end of period	$	-	$	-	$	198	$	49	$	-	$	247

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2016
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	-	$	(223)	$	351	$	166	$	-	$	294
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(2)		(97)		-		(99)
Purchases of property and equipment		-		-		(152)		(72)		-		(224)
Proceeds from disposition of hospitals
and other ancillary operations		-		-		12		-		-		12
Proceeds from sale of property and equipment		-		-		3		1		-		4
Purchases of available-for-sale securities		-		-		(13)		(24)		-		(37)
Proceeds from sales of available-for-sale securities		-		-		11		29		-		40
Increase in other investments		-		-		(49)		(18)		-		(67)
Net cash used in investing activities		-		-		(190)		(181)		-		(371)
Cash flows from financing activities:
Repurchase of restricted stock shares for payroll
tax withholding requirements		(7)		-		-		-		-		(7)
Redemption of noncontrolling investments in joint
ventures		-		-		-		(16)		-		(16)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(18)		-		(18)
Changes in intercompany balances with
affiliates, net		7		89		(159)		63		-		-
Borrowings under credit agreements		-		1,563		1		-		-		1,564
Proceeds from receivables facility		-		-		-		31		-		31
Repayments of long-term indebtedness		-		(1,429)		(18)		(33)		-		(1,480)
Net cash provided by (used in) financing
activities		-		223		(176)		27		-		74
Net change in cash and cash equivalents		-		-		(15)		12		-		(3)
Cash and cash equivalents at beginning of period		-		-		31		153		-		184
Cash and cash equivalents at end of period	$	-	$	-	$	16	$	165	$	-	$	181