Supplemental Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statement of Loss

Condensed Consolidating Statement of Loss
Three Months Ended September 30, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(5)	$	2,661	$	1,677	$	-	$	4,333
Provision for bad debts		-		-		410		257		-		667
Net operating revenues		-		(5)		2,251		1,420		-		3,666
Operating costs and expenses:
Salaries and benefits		-		-		911		813		-		1,724
Supplies		-		-		403		207		-		610
Other operating expenses		-		-		614		297		-		911
Government and other legal settlements and
related costs		-		-		1		-		-		1
Electronic health records incentive reimbursement		-		-		(1)		(1)		-		(2)
Rent		-		-		51		42		-		93
Depreciation and amortization		-		-		129		77		-		206
Impairment and (gain) loss on sale of businesses, net		-		-		31		2		-		33
Total operating costs and expenses		-		-		2,139		1,437		-		3,576
(Loss) income from operations		-		(5)		112		(17)		-		90
Interest expense, net		-		84		153		1		-		238
Loss from early extinguishment of debt		-		4		-		-		-		4
Gain on sale of investments in
unconsolidated affiliates		-		-		-		-		-		-
Equity in earnings of unconsolidated affiliates		110		39		20		-		(174)		(5)
Loss from continuing operations before
income taxes		(110)		(132)		(61)		(18)		174		(147)
Benefit from income taxes		-		(22)		(23)		(14)		-		(59)
Loss from continuing operations		(110)		(110)		(38)		(4)		174		(88)
Discontinued operations, net of taxes:
Loss from operations of entities sold or
held for sale		-		-		-		(1)		-		(1)
Impairment of hospitals sold or held for sale		-		-		(2)		1		-		(1)
Loss from discontinued operations, net of taxes		-		-		(2)		-		-		(2)
Net loss		(110)		(110)		(40)		(4)		174		(90)
Less: Net income attributable to noncontrolling interests		-		-		-		20		-		20
Net loss attributable to Community Health
Systems, Inc. stockholders	$	(110)	$	(110)	$	(40)	$	(24)	$	174	$	(110)

Condensed Consolidating Statement of Loss
Three Months Ended September 30, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(6)	$	2,767	$	2,323	$	-	$	5,084
Provision for bad debts		-		-		393		311		-		704
Net operating revenues		-		(6)		2,374		2,012		-		4,380
Operating costs and expenses:
Salaries and benefits		-		-		969		1,098		-		2,067
Supplies		-		-		416		307		-		723
Other operating expenses		-		-		615		411		-		1,026
Government and other legal settlements and
related costs		-		-		5		5		-		10
Electronic health records incentive reimbursement		-		-		(4)		(1)		-		(5)
Rent		-		-		52		57		-		109
Depreciation and amortization		-		-		157		108		-		265
Impairment and (gain) loss on sale of businesses, net		-		-		18		21		-		39
Total operating costs and expenses		-		-		2,228		2,006		-		4,234
(Loss) income from operations		-		(6)		146		6		-		146
Interest expense, net		-		84		137		12		-		233
Loss from early extinguishment of debt		-		-		-		-		-		-
Gain on sale of investments in
unconsolidated affiliates		-		-		-		-		-		-
Equity in earnings of unconsolidated affiliates		79		14		18		-		(115)		(4)
Loss from continuing operations before income taxes		(79)		(104)		(9)		(6)		115		(83)
(Benefit from) provision for income taxes		-		(25)		5		(9)		-		(29)
(Loss) income from continuing operations		(79)		(79)		(14)		3		115		(54)
Discontinued operations, net of taxes:
Loss from operations of entities sold or
held for sale		-		-		(2)		-		-		(2)
Loss from discontinued operations, net of taxes		-		-		(2)		-		-		(2)
Net (loss) income		(79)		(79)		(16)		3		115		(56)
Less: Net income attributable to noncontrolling interests		-		-		-		23		-		23
Net loss attributable to Community Health
Systems, Inc. stockholders	$	(79)	$	(79)	$	(16)	$	(20)	$	115	$	(79)

Condensed Consolidating Statement of Loss
Nine Months Ended September 30, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(17)	$	8,437	$	5,903	$	-	$	14,323
Provision for bad debts		-		-		1,337		691		-		2,028
Net operating revenues		-		(17)		7,100		5,212		-		12,295
Operating costs and expenses:
Salaries and benefits		-		-		2,786		2,918		-		5,704
Supplies		-		-		1,263		793		-		2,056
Other operating expenses		-		-		1,860		1,124		-		2,984
Government and other legal settlements and
related costs		-		-		(32)		-		-		(32)
Electronic health records incentive reimbursement		-		-		(12)		(13)		-		(25)
Rent		-		-		155		151		-		306
Depreciation and amortization		-		-		385		280		-		665
Impairment and (gain) loss on sale of businesses, net		-		-		291		72		-		363
Total operating costs and expenses		-		-		6,696		5,325		-		12,021
(Loss) income from operations		-		(17)		404		(113)		-		274
Interest expense, net		-		241		448		17		-		706
Loss from early extinguishment of debt		-		35		-		-		-		35
Equity in earnings of unconsolidated affiliates		446		210		105		-		(774)		(13)
Loss from continuing operations
before income taxes		(446)		(503)		(149)		(130)		774		(454)
(Benefit from) provision for income taxes		-		(57)		56		(73)		-		(74)
Loss from continuing operations		(446)		(446)		(205)		(57)		774		(380)
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		-		-		(5)		(1)		-		(6)
Loss from discontinued operations, net of taxes		-		-		(8)		(2)		-		(10)
Net loss		(446)		(446)		(213)		(59)		774		(390)
Less: Net income attributable to noncontrolling interests		-		-		-		56		-		56
Net loss attributable to Community
Health Systems, Inc. stockholders	$	(446)	$	(446)	$	(213)	$	(115)	$	774	$	(446)

Condensed Consolidating Statement of Loss
Nine Months Ended September 30, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(18)	$	8,594	$	7,552	$	-	$	16,128
Provision for bad debts		-		-		1,349		810		-		2,159
Net operating revenues		-		(18)		7,245		6,742		-		13,969
Operating costs and expenses:
Salaries and benefits		-		-		2,901		3,636		-		6,537
Supplies		-		-		1,288		993		-		2,281
Other operating expenses		-		-		1,766		1,490		-		3,256
Government and other legal settlements and
related costs		-		-		6		4		-		10
Electronic health records incentive reimbursement		-		-		(28)		(26)		-		(54)
Rent		-		-		153		187		-		340
Depreciation and amortization		-		-		477		362		-		839
Impairment and (gain) loss on sale of businesses, net		-		-		1,163		532		-		1,695
Total operating costs and expenses		-		-		7,726		7,178		-		14,904
Loss from operations		-		(18)		(481)		(436)		-		(935)
Interest expense, net		-		158		497		75		-		730
Loss from early extinguishment of debt		-		30		-		-		-		30
Gain on sale of investments in
unconsolidated affiliates		-		-		(94)		-		-		(94)
Equity in earnings of unconsolidated affiliates		1,500		1,340		478		-		(3,356)		(38)
Loss from continuing operations before
income taxes		(1,500)		(1,546)		(1,362)		(511)		3,356		(1,563)
Benefit from income taxes		-		(46)		(18)		(77)		-		(141)
Loss from continuing operations		(1,500)		(1,500)		(1,344)		(434)		3,356		(1,422)
Discontinued operations, net of taxes:
(Loss) income from operations of entities sold or
held for sale		-		-		(6)		2		-		(4)
Impairment of hospitals sold or held for sale		-		-		-		(1)		-		(1)
(Loss) income from discontinued operations, net of taxes		-		-		(6)		1		-		(5)
Net loss		(1,500)		(1,500)		(1,350)		(433)		3,356		(1,427)
Less: Net income attributable to noncontrolling interests		-		-		-		73		-		73
Net loss attributable to Community Health
Systems, Inc. stockholders	$	(1,500)	$	(1,500)	$	(1,350)	$	(506)	$	3,356	$	(1,500)

Schedule of Condensed Consolidating Statement of Comprehensive Loss

Condensed Consolidating Statement of Comprehensive Loss
Three Months Ended September 30, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net loss	$	(110)	$	(110)	$	(40)	$	(4)	$	174	$	(90)
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		2		2		2		-		(4)		2
Amortization and recognition of unrecognized
pension cost components, net of tax		1		1		1		-		(2)		1
Other comprehensive income		8		8		3		-		(11)		8
Comprehensive loss		(102)		(102)		(37)		(4)		163		(82)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		20		-		20
Comprehensive loss attributable to
Community Health Systems, Inc. stockholders	$	(102)	$	(102)	$	(37)	$	(24)	$	163	$	(102)

Condensed Consolidating Statement of Comprehensive Loss
Three Months Ended September 30, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net (loss) income	$	(79)	$	(79)	$	(16)	$	3	$	115	$	(56)
Other comprehensive (loss) income, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		10		10		-		-		(10)		10
Net change in fair value of available-for-sale securities,
net of tax		(7)		(7)		(7)		-		14		(7)
Amortization and recognition of unrecognized
pension cost components, net of tax		-		-		-		-		-		-
Other comprehensive income (loss)		3		3		(7)		-		4		3
Comprehensive (loss) income		(76)		(76)		(23)		3		119		(53)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		23		-		23
Comprehensive loss attributable to
Community Health Systems, Inc. stockholders	$	(76)	$	(76)	$	(23)	$	(20)	$	119	$	(76)

Condensed Consolidating Statement of Comprehensive Loss
Nine Months Ended September 30, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net loss	$	(446)	$	(446)	$	(213)	$	(59)	$	774	$	(390)
Other comprehensive income, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		8		8		-		-		(8)		8
Net change in fair value of available-for-sale securities,
net of tax		7		7		7		-		(14)		7
Amortization and recognition of unrecognized pension
cost components, net of tax		2		2		2		-		(4)		2
Other comprehensive income		17		17		9		-		(26)		17
Comprehensive loss		(429)		(429)		(204)		(59)		748		(373)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		56		-		56
Comprehensive loss attributable to
Community Health Systems, Inc. stockholders	$	(429)	$	(429)	$	(204)	$	(115)	$	748	$	(429)

Condensed Consolidating Statement of Comprehensive Loss
Nine Months Ended September 30, 2016
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net loss	$	(1,500)	$	(1,500)	$	(1,350)	$	(433)	$	3,356	$	(1,427)
Other comprehensive (loss) income, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		(11)		(11)		-		-		11		(11)
Net change in fair value of available-for-sale securities,
net of tax		(8)		(8)		(8)		-		16		(8)
Amortization and recognition of unrecognized pension
cost components, net of tax		3		3		3		-		(6)		3
Other comprehensive loss		(16)		(16)		(5)		-		21		(16)
Comprehensive loss		(1,516)		(1,516)		(1,355)		(433)		3,377		(1,443)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		73		-		73
Comprehensive loss attributable to
Community Health Systems, Inc. stockholders	$	(1,516)	$	(1,516)	$	(1,355)	$	(506)	$	3,377	$	(1,516)

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
September 30, 2017
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	529	$	61	$	-	$	590
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		740		2,148		-		2,888
Supplies		-		-		288		157		-		445
Prepaid income taxes		22		-		-		-		-		22
Prepaid expenses and taxes		-		-		155		52		-		207
Other current assets		-		-		343		183		-		526
Total current assets		22		-		2,055		2,601		-		4,678
Intercompany receivable		207		13,511		4,336		7,033		(25,087)		-
Property and equipment, net		-		-		4,613		2,718		-		7,331
Goodwill		-		-		3,773		2,375		-		6,148
Other assets, net		15		25		1,716		880		(1,058)		1,578
Net investment in subsidiaries		1,300		21,453		10,735		-		(33,488)		-
Total assets	$	1,544	$	34,989	$	27,228	$	15,607	$	(59,633)	$	19,735
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	-	$	32	$	8	$	-	$	40
Accounts payable		-		-		560		290		-		850
Accrued interest		-		237		-		1		-		238
Accrued liabilities		-		-		672		477		-		1,149
Total current liabilities		-		237		1,264		776		-		2,277
Long-term debt		-		13,047		219		635		-		13,901
Intercompany payable		-		19,355		22,436		12,989		(54,780)		-
Deferred income taxes		319		-		-		-		-		319
Other long-term liabilities		12		1,050		1,026		369		(1,058)		1,399
Total liabilities		331		33,689		24,945		14,769		(55,838)		17,896
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		530		-		530
Equity:
Community Health Systems, Inc. stockholders’
equity:
Common stock		1		-		-		-		-		1
Additional paid-in capital		2,002		507		867		572		(1,946)		2,002
Accumulated other comprehensive loss		(45)		(45)		(17)		(5)		67		(45)
(Accumulated deficit) retained earnings		(745)		838		1,433		(355)		(1,916)		(745)
Total Community Health Systems, Inc.
stockholders’ equity		1,213		1,300		2,283		212		(3,795)		1,213
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		96		-		96
Total equity		1,213		1,300		2,283		308		(3,795)		1,309
Total liabilities and equity	$	1,544	$	34,989	$	27,228	$	15,607	$	(59,633)	$	19,735

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	$	-	$	-	$	171	$	67	$	-	$	238
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		800		2,376		-		3,176
Supplies		-		-		270		210		-		480
Prepaid income taxes		17		-		-		-		-		17
Prepaid expenses and taxes		-		-		120		67		-		187
Other current assets		-		-		216		352		-		568
Total current assets		17		-		1,577		3,072		-		4,666
Intercompany receivable		295		14,970		1,994		7,558		(24,817)		-
Property and equipment, net		-		-		4,606		3,543		-		8,149
Goodwill		-		-		3,735		2,786		-		6,521
Other assets, net		15		-		2,620		1,195		(1,222)		2,608
Net investment in subsidiaries		1,728		21,383		9,983		-		(33,094)		-
Total assets	$	2,055	$	36,353	$	24,515	$	18,154	$	(59,133)	$	21,944
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	149	$	53	$	253	$	-	$	455
Accounts payable		-		-		637		358		-		995
Accrued interest		-		205		1		1		-		207
Accrued liabilities		17		-		679		534		-		1,230
Total current liabilities		17		354		1,370		1,146		-		2,887
Long-term debt		-		14,018		219		552		-		14,789
Intercompany payable		-		18,994		19,341		14,822		(53,157)		-
Deferred income taxes		411		-		-		-		-		411
Other long-term liabilities		12		1,259		1,094		432		(1,222)		1,575
Total liabilities		440		34,625		22,024		16,952		(54,379)		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		675		948		825		(2,448)		1,975
Accumulated other comprehensive loss		(62)		(62)		(23)		(8)		93		(62)
(Accumulated deficit) retained earnings		(299)		1,115		1,566		(282)		(2,399)		(299)
Total Community Health Systems, Inc.
stockholders’ equity		1,615		1,728		2,491		535		(4,754)		1,615
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		113		-		113
Total equity		1,615		1,728		2,491		648		(4,754)		1,728
Total liabilities and equity	$	2,055	$	36,353	$	24,515	$	18,154	$	(59,133)	$	21,944

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2017
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	(44)	$	(228)	$	645	$	244	$	-	$	617
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		-		(4)		-		(4)
Purchases of property and equipment		-		-		(278)		(150)		-		(428)
Proceeds from disposition of hospitals
and other ancillary operations		-		-		593		1,073		-		1,666
Proceeds from sale of property and equipment		-		-		4		-		-		4
Purchases of available-for-sale securities		-		-		(58)		(27)		-		(85)
Proceeds from sales of available-for-sale securities		-		-		84		49		-		133
Increase in other investments		-		-		(73)		(22)		-		(95)
Net cash provided by investing activities		-		-		272		919		-		1,191
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		-		(65)		-		(1)		-		(66)
Proceeds from noncontrolling investors in
joint ventures		-		-		-		5		-		5
Redemption of noncontrolling investments in
joint ventures		-		-		-		(5)		-		(5)
Distributions to noncontrolling investors in
joint ventures		-		-		-		(79)		-		(79)
Changes in intercompany balances with
affiliates, net		49		1,414		(525)		(938)		-		-
Borrowings under credit agreements		-		795		27		17		-		839
Issuance of long-term debt		-		3,100		-		-		-		3,100
Proceeds from receivables facility		-		-		-		26		-		26
Repayments of long-term indebtedness		-		(5,016)		(61)		(194)		-		(5,271)
Net cash provided by (used in) financing
activities		44		228		(559)		(1,169)		-		(1,456)
Net change in cash and cash equivalents		-		-		358		(6)		-		352
Cash and cash equivalents at beginning of period		-		-		171		67		-		238
Cash and cash equivalents at end of period	$	-	$	-	$	529	$	61	$	-	$	590

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2016
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	(13)	$	(322)	$	479	$	666	$	-	$	810
Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(3)		(119)		-		(122)
Purchases of property and equipment		-		-		(359)		(202)		-		(561)
Proceeds from disposition of hospitals
and other ancillary operations		-		-		13		(1)		-		12
Proceeds from sale of property and equipment		-		-		5		5		-		10
Purchases of available-for-sale securities		-		-		(171)		(224)		-		(395)
Proceeds from sales of available-for-sale securities		-		-		157		229		-		386
Proceeds from sale of investments in
unconsolidated affiliates		-		-		403		-		-		403
Distribution from Quorum Health Corporation		-		1,219		-		-		-		1,219
Increase in other investments		-		-		(129)		(72)		-		(201)
Net cash provided by (used in)
investing activities		-		1,219		(84)		(384)		-		751
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		-		-		-		(19)		-		(19)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(69)		-		(69)
Changes in intercompany balances with
affiliates, net		18		529		(384)		(163)		-		-
Borrowings under credit agreements		-		3,905		23		1		-		3,929
Proceeds from receivables facility		-		-		-		66		-		66
Repayments of long-term indebtedness		-		(5,309)		(49)		(134)		-		(5,492)
Net cash provided by (used in) financing
activities		13		(897)		(410)		(318)		-		(1,612)
Net change in cash and cash equivalents		-		-		(15)		(36)		-		(51)
Cash and cash equivalents at beginning of period		-		-		37		147		-		184
Cash and cash equivalents at end of period	$	-	$	-	$	22	$	111	$	-	$	133