Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statement of Loss

Condensed Consolidating Statement of Loss
Three Months Ended June 30, 2018
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Net operating revenues	$	-	$	(2)	$	2,147	$	1,417	$	-	$	3,562
Operating costs and expenses:
Salaries and benefits		-		-		810		807		-		1,617
Supplies		-		-		383		209		-		592
Other operating expenses		-		-		569		310		-		879
Government and other legal settlements and
related costs		-		-		1		-		-		1
Rent		-		-		43		42		-		85
Depreciation and amortization		-		-		109		68		-		177
Impairment and (gain) loss on sale of businesses, net		-		14		4		156		-		174
Total operating costs and expenses		-		14		1,919		1,592		-		3,525
(Loss) income from operations		-		(16)		228		(175)		-		37
Interest expense, net		-		98		143		(6)		-		235
(Gain) loss from early extinguishment of debt		-		(65)		1		-		-		(64)
Equity in earnings of unconsolidated affiliates		110		114		198		-		(427)		(5)
(Loss) income from continuing operations before
income taxes		(110)		(163)		(114)		(169)		427		(129)
(Benefit from) provision for income taxes		-		(53)		4		11		-		(38)
(Loss) income from continuing operations		(110)		(110)		(118)		(180)		427		(91)
Discontinued operations, net of taxes:
Loss from discontinued operations, net of taxes		-		-		-		-		-		-
Net (loss) income		(110)		(110)		(118)		(180)		427		(91)
Less: Net income attributable to noncontrolling interests		-		-		-		19		-		19
Net (loss) income attributable to Community Health
Systems, Inc. stockholders	$	(110)	$	(110)	$	(118)	$	(199)	$	427	$	(110)

Condensed Consolidating Statement of Loss
Three Months Ended June 30, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(6)	$	2,711	$	2,118	$	-	$	4,823
Provision for bad debts		-		-		377		302		-		679
Net operating revenues		-		(6)		2,334		1,816		-		4,144
Operating costs and expenses:
Salaries and benefits		-		-		897		1,023		-		1,920
Supplies		-		-		412		285		-		697
Other operating expenses		-		-		605		412		-		1,017
Government and other legal settlements and
related costs		-		-		7		-		-		7
Electronic health records incentive reimbursement		-		-		(9)		(8)		-		(17)
Rent		-		-		51		53		-		104
Depreciation and amortization		-		-		125		98		-		223
Impairment and (gain) loss on sale of businesses, net		-		-		39		41		-		80
Total operating costs and expenses		-		-		2,127		1,904		-		4,031
(Loss) income from operations		-		(6)		207		(88)		-		113
Interest expense, net		-		87		150		2		-		239
Loss from early extinguishment of debt		-		10		-		-		-		10
Equity in earnings of unconsolidated affiliates		137		50		70		-		(262)		(5)
Loss from continuing operations before income taxes		(137)		(153)		(13)		(90)		262		(131)
(Benefit from) provision for income taxes		-		(16)		38		(37)		-		(15)
(Loss) income from continuing operations		(137)		(137)		(51)		(53)		262		(116)
Discontinued operations, net of taxes:
Income (loss) from operations of entities sold or
held for sale		-		-		2		(3)		-		(1)
Impairment of hospitals sold or held for sale		-		-		(5)		-		-		(5)
Loss from discontinued operations, net of taxes		-		-		(3)		(3)		-		(6)
Net (loss) income		(137)		(137)		(54)		(56)		262		(122)
Less: Net income attributable to noncontrolling interests		-		-		-		15		-		15
Net (loss) income attributable to Community Health
Systems, Inc. stockholders	$	(137)	$	(137)	$	(54)	$	(71)	$	262	$	(137)

Condensed Consolidating Statement of Loss
Six Months Ended June 30, 2018
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Net operating revenues	$	-	$	(8)	$	4,393	$	2,866	$	-	$	7,251
Operating costs and expenses:
Salaries and benefits		-		-		1,634		1,631		-		3,265
Supplies		-		-		783		425		-		1,208
Other operating expenses		-		-		1,168		621		-		1,789
Government and other legal settlements and
related costs		-		-		7		-		-		7
Electronic health records incentive reimbursement		-		-		-		(1)		-		(1)
Rent		-		-		90		83		-		173
Depreciation and amortization		-		-		223		135		-		358
Impairment and (gain) loss on sale of businesses, net		-		14		20		168		-		202
Total operating costs and expenses		-		14		3,925		3,062		-		7,001
(Loss) income from operations		-		(22)		468		(196)		-		250
Interest expense, net		-		189		284		(9)		-		464
(Gain) loss from early extinguishment of debt		-		(61)		2		-		-		(59)
Equity in earnings of unconsolidated affiliates		135		80		220		-		(447)		(12)
Loss from continuing operations
before income taxes		(135)		(230)		(38)		(187)		447		(143)
(Benefit from) provision for income taxes		-		(95)		49		1		-		(45)
(Loss) income from continuing operations		(135)		(135)		(87)		(188)		447		(98)
Loss from discontinued operations, net of taxes		-		-		-		-		-		-
Net (loss) income		(135)		(135)		(87)		(188)		447		(98)
Less: Net income attributable to noncontrolling interests		-		-		-		37		-		37
Net (loss) income attributable to Community
Health Systems, Inc. stockholders	$	(135)	$	(135)	$	(87)	$	(225)	$	447	$	(135)

Condensed Consolidating Statement of Loss
Six Months Ended June 30, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(12)	$	5,592	$	4,411	$	-	$	9,991
Provision for bad debts		-		-		866		496		-		1,362
Net operating revenues		-		(12)		4,726		3,915		-		8,629
Operating costs and expenses:
Salaries and benefits		-		-		1,825		2,156		-		3,981
Supplies		-		-		842		604		-		1,446
Other operating expenses		-		-		1,203		871		-		2,074
Government and other legal settlements and
related costs		-		-		(34)		-		-		(34)
Electronic health records incentive reimbursement		-		-		(11)		(12)		-		(23)
Rent		-		-		103		111		-		214
Depreciation and amortization		-		-		248		210		-		458
Impairment of goodwill and long-lived assets		-		-		80		250		-		330
Total operating costs and expenses		-		-		4,256		4,190		-		8,446
Loss from operations		-		(12)		470		(275)		-		183
Interest expense, net		-		157		300		11		-		468
Loss from early extinguishment of debt		-		31		-		-		-		31
Equity in earnings of unconsolidated affiliates		335		169		236		-		(749)		(9)
Loss from continuing operations before
income taxes		(335)		(369)		(66)		(286)		749		(307)
(Benefit from) provision for income taxes		-		(34)		107		(88)		-		(15)
Loss from continuing operations		(335)		(335)		(173)		(198)		749		(292)
Discontinued operations, net of taxes:
Loss from operations of entities sold or
held for sale		-		-		(1)		(1)		-		(2)
Impairment of hospitals sold or held for sale		-		-		(5)		-		-		(5)
Loss from discontinued operations, net of taxes		-		-		(6)		(1)		-		(7)
Net (loss) income		(335)		(335)		(179)		(199)		749		(299)
Less: Net income attributable to noncontrolling interests		-		-		-		36		-		36
Net (loss) income attributable to Community Health
Systems, Inc. stockholders	$	(335)	$	(335)	$	(179)	$	(235)	$	749	$	(335)

Schedule of Condensed Consolidating Statement of Comprehensive Loss

Condensed Consolidating Statement of Comprehensive Loss
Three Months Ended June 30, 2018
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net (loss) income	$	(110)	$	(110)	$	(118)	$	(180)	$	427	$	(91)
Other comprehensive income (loss), net of income taxes:
Net change in fair value of interest rate swaps, net of tax		7		7		-		-		(7)		7
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 income (loss)		7		7		-		-		(7)		7
Comprehensive (loss) income		(103)		(103)		(118)		(180)		420		(84)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		19		-		19
Comprehensive (loss) income attributable to
Community Health Systems, Inc. stockholders	$	(103)	$	(103)	$	(118)	$	(199)	$	420	$	(103)

Condensed Consolidating Statement of Comprehensive Loss
Three Months Ended June 30, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net (loss) income	$	(137)	$	(137)	$	(54)	$	(56)	$	262	$	(122)
Other comprehensive (loss) income, net of income taxes:
Net change in fair value of interest rate swaps, net of tax		(2)		(2)		-		-		2		(2)
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		1		1		3		-		(4)		1
Comprehensive (loss) income		(136)		(136)		(51)		(56)		258		(121)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		15		-		15
Comprehensive (loss) income attributable to
Community Health Systems, Inc. stockholders	$	(136)	$	(136)	$	(51)	$	(71)	$	258	$	(136)

Condensed Consolidating Statement of Comprehensive Loss
Six Months Ended June 30, 2018
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net (loss) income	$	(135)	$	(135)	$	(87)	$	(188)	$	447	$	(98)
Other comprehensive income (loss), net of income taxes:
Net change in fair value of interest rate swaps, net of tax		25		25		-		-		(25)		25
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		24		24		(1)		-		(23)		24
Comprehensive (loss) income		(111)		(111)		(88)		(188)		424		(74)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		37		-		37
Comprehensive (loss) income attributable to
Community Health Systems, Inc. stockholders	$	(111)	$	(111)	$	(88)	$	(225)	$	424	$	(111)

Condensed Consolidating Statement of Comprehensive Loss
Six Months Ended June 30, 2017
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net (loss) income	$	(335)	$	(335)	$	(179)	$	(199)	$	749	$	(299)
Other comprehensive income (loss), net of income taxes:
Net change in fair value of interest rate swaps, net of tax		3		3		-		-		(3)		3
Net change in fair value of available-for-sale securities,
net of tax		5		5		5		-		(10)		5
Amortization and recognition of unrecognized pension
cost components, net of tax		1		1		1		-		(2)		1
Other comprehensive income		9		9		6		-		(15)		9
Comprehensive (loss) income		(326)		(326)		(173)		(199)		734		(290)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		36		-		36
Comprehensive (loss) income attributable to
Community Health Systems, Inc. stockholders	$	(326)	$	(326)	$	(173)	$	(235)	$	734	$	(326)

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
June 30, 2018
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	113	$	95	$	-	$	208
Patient accounts receivable		-		-		1,968		439		-		2,407
Supplies		-		-		290		142		-		432
Prepaid income taxes		8		-		-		-		-		8
Prepaid expenses and taxes		-		-		162		55		-		217
Other current assets		-		1		110		311		-		422
Total current assets		8		1		2,643		1,042		-		3,694
Intercompany receivable		-		13,018		4,403		7,158		(24,579)		-
Property and equipment, net		-		-		4,409		2,340		-		6,749
Goodwill		-		-		2,869		1,784		-		4,653
Deferred income taxes		101		-		-		-		-		101
Other assets, net		-		42		725		830		-		1,597
Net investment in subsidiaries		-		21,353		11,140		-		(32,493)		-
Total assets	$	109	$	34,414	$	26,189	$	13,154	$	(57,072)	$	16,794
LIABILITIES AND DEFICIT
Current liabilities:
Current maturities of long-term debt	$	-	$	-	$	33	$	8	$	-	$	41
Accounts payable		-		13		528		298		-		839
Accrued interest		-		174		-		-		-		174
Accrued liabilities		-		-		538		470		-		1,008
Total current liabilities		-		187		1,099		776		-		2,062
Long-term debt		-		13,361		211		101		-		13,673
Intercompany payable		960		21,677		23,523		12,926		(59,086)		-
Deferred income taxes		19		-		-		-		-		19
Other long-term liabilities		9		1		934		385		-		1,329
Total liabilities		988		35,226		25,767		14,188		(59,086)		17,083
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		514		-		514
Deficit:
Community Health Systems, Inc. stockholders’
deficit:
Common stock		1		-		-		-		-		1
Additional paid-in capital		2,013		230		(124)		462		(568)		2,013
Accumulated other comprehensive loss		(9)		(9)		(8)		(11)		28		(9)
(Accumulated deficit) retained earnings		(2,884)		(1,033)		554		(2,075)		2,554		(2,884)
Total Community Health Systems, Inc.
stockholders’ deficit		(879)		(812)		422		(1,624)		2,014		(879)
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		76		-		76
Total deficit		(879)		(812)		422		(1,548)		2,014		(803)
Total liabilities and deficit	$	109	$	34,414	$	26,189	$	13,154	$	(57,072)	$	16,794

Condensed Consolidating Balance Sheet
December 31, 2017
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	499	$	64	$	-	$	563
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		1,861		523		-		2,384
Supplies		-		-		288		156		-		444
Prepaid income taxes		17		-		-		-		-		17
Prepaid expenses and taxes		-		-		146		52		-		198
Other current assets		-		-		152		310		-		462
Total current assets		17		-		2,946		1,105		-		4,068
Intercompany receivable		-		13,381		5,092		7,873		(26,346)		-
Property and equipment, net		-		-		4,448		2,604		-		7,052
Goodwill		-		-		2,882		1,841		-		4,723
Deferred income taxes		62		-		-		-		-		62
Other assets, net		15		39		1,594		939		(1,042)		1,545
Net investment in subsidiaries		-		21,742		10,890		-		(32,632)		-
Total assets	$	94	$	35,162	$	27,852	$	14,362	$	(60,020)	$	17,450
LIABILITIES AND DEFICIT
Current liabilities:
Current maturities of long-term debt	$	-	$	-	$	25	$	8	$	-	$	33
Accounts payable		-		-		663		304		-		967
Accrued interest		-		228		1		-		-		229
Accrued liabilities		-		-		644		483		-		1,127
Total current liabilities		-		228		1,333		795		-		2,356
Long-term debt		-		12,998		779		103		-		13,880
Intercompany payable		833		21,607		23,465		13,874		(59,779)		-
Deferred income taxes		19		-		-		-		-		19
Other long-term liabilities		9		1,018		997		378		(1,042)		1,360
Total liabilities		861		35,851		26,574		15,150		(60,821)		17,615
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		527		-		527
Deficit:
Community Health Systems, Inc. stockholders’
deficit:
Common stock		1		-		-		-		-		1
Additional paid-in capital		2,014		(252)		960		(523)		(185)		2,014
Accumulated other comprehensive loss		(21)		(21)		(4)		(4)		29		(21)
(Accumulated deficit) retained earnings		(2,761)		(416)		322		(863)		957		(2,761)
Total Community Health Systems, Inc.
stockholders’ deficit		(767)		(689)		1,278		(1,390)		801		(767)
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		75		-		75
Total deficit		(767)		(689)		1,278		(1,315)		801		(692)
Total liabilities and deficit	$	94	$	35,162	$	27,852	$	14,362	$	(60,020)	$	17,450

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2018
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash provided by (used in) operating
activities	$	37	$	(228)	$	49	$	236	$	-	$	94
Cash flows from investing activities:
Acquisitions of facilities and other related
businesses		-		-		(3)		(7)		-		(10)
Purchases of property and equipment		-		-		(210)		(85)		-		(295)
Proceeds from disposition of hospitals
and other ancillary operations		-		-		12		76		-		88
Proceeds from sale of property and equipment		-		-		1		3		-		4
Purchases of available-for-sale securities
and equity securities		-		-		(25)		(13)		-		(38)
Proceeds from sales of available-for-sale securities
and equity securities		-		-		50		13		-		63
Increase in other investments		-		-		(24)		(29)		-		(53)
Net cash used in investing activities		-		-		(199)		(42)		-		(241)
Cash flows from financing activities:
Repurchase of restricted stock shares for
payroll tax withholding requirements		(1)		-		-		-		-		(1)
Deferred financing costs and other debt-related
costs		-		(54)		-		-		-		(54)
Proceeds from noncontrolling investors in
joint ventures		-		-		-		1		-		1
Redemption of noncontrolling investments in
joint ventures		-		-		-		(6)		-		(6)
Distributions to noncontrolling investors in
joint ventures		-		-		-		(52)		-		(52)
Changes in intercompany balances with
affiliates, net		(36)		(186)		329		(107)		-		-
Borrowings under credit agreements		-		-		22		4		-		26
Proceeds from ABL and receivables facility		-		538		49		-		-		587
Repayments of long-term indebtedness		-		(70)		(636)		(3)		-		(709)
Net cash (used in) provided by financing
activities		(37)		228		(236)		(163)		-		(208)
Net change in cash and cash equivalents		-		-		(386)		31		-		(355)
Cash and cash equivalents at beginning of period		-		-		499		64		-		563
Cash and cash equivalents at end of period	$	-	$	-	$	113	$	95	$	-	$	208

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2017
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash (used in) provided by operating
activities	$	(11)	$	(163)	$	364	$	313	$	-	$	503
Cash flows from investing activities:
Acquisitions of facilities and other related
businesses		-		-		-		(4)		-		(4)
Purchases of property and equipment		-		-		(174)		(100)		-		(274)
Proceeds from disposition of hospitals
and other ancillary operations		-		-		111		810		-		921
Proceeds from sale of property and equipment		-		-		3		-		-		3
Purchases of available-for-sale securities
and equity securities		-		-		(27)		(10)		-		(37)
Proceeds from sales of available-for-sale securities
and equity securities		-		-		38		9		-		47
Increase in other investments		-		-		(49)		(11)		-		(60)
Net cash (used in) provided by
investing activities		-		-		(98)		694		-		596
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		-		(62)		-		-		-		(62)
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		-		-		-		(53)		-		(53)
Changes in intercompany balances with						-
affiliates, net		16		578		316		(910)		-		-
Borrowings under credit agreements		-		795		26		19		-		840
Issuance of long-term debt		-		3,100		-		-		-		3,100
Proceeds from receivables facility		-		-		26		-		-		26
Repayments of long-term indebtedness		-		(4,248)		(151)		(17)		-		(4,416)
Net cash provided by (used in) financing
activities		11		163		217		(960)		-		(569)
Net change in cash and cash equivalents		-		-		483		47		-		530
Cash and cash equivalents at beginning of period		-		-		176		62		-		238
Cash and cash equivalents at end of period	$	-	$	-	$	659	$	109	$	-	$	768