Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental Condensed Consolidating Financial Information [Abstract]

Schedule of Condensed Consolidating Statement of Loss

Condensed Consolidating Statement of Loss
Three Months Ended June 30, 2019
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Net operating revenues	$	-	$	1	$	2,010	$	1,291	$	-	$	3,302
Operating costs and expenses:
Salaries and benefits		-		-		766		722		-		1,488
Supplies		-		-		351		188		-		539
Other operating expenses		-		22		592		279		-		893
Government and other legal settlements and
related costs		-		-		4		-		-		4
Lease cost and rent		-		-		43		38		-		81
Depreciation and amortization		-		-		93		60		-		153
Impairment and (gain) loss on sale of businesses, net		-		(2)		21		14		-		33
Total operating costs and expenses		-		20		1,870		1,301		-		3,191
(Loss) income from operations		-		(19)		140		(10)		-		111
Interest expense, net		-		157		127		(19)		-		265
Equity in earnings of unconsolidated affiliates		167		(7)		12		-		(177)		(5)
(Loss) income before income taxes		(167)		(169)		1		9		177		(149)
(Benefit from) provision for income taxes		-		(2)		(2)		1		-		(3)
Net (loss) income		(167)		(167)		3		8		177		(146)
Less: Net income attributable to noncontrolling interests		-		-		-		21		-		21
Net (loss) income attributable to Community Health
Systems, Inc. stockholders	$	(167)	$	(167)	$	3	$	(13)	$	177	$	(167)

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)	$	2,182	$	1,382	$	-	$	3,562
Operating costs and expenses:
Salaries and benefits		-		-		833		784		-		1,617
Supplies		-		-		388		204		-		592
Other operating expenses		-		-		577		302		-		879
Government and other legal settlements and
related costs		-		-		1		-		-		1
Lease cost and rent		-		-		44		41		-		85
Depreciation and amortization		-		-		113		64		-		177
Impairment and (gain) loss on sale of businesses, net		-		14		4		156		-		174
Total operating costs and expenses		-		14		1,960		1,551		-		3,525
(Loss) income from operations		-		(16)		222		(169)		-		37
Interest expense, net		-		98		145		(8)		-		235
(Gain) loss from early extinguishment of debt		-		(65)		1		-		-		(64)
Equity in earnings of unconsolidated affiliates		110		116		192		-		(423)		(5)
Loss before income taxes		(110)		(165)		(116)		(161)		423		(129)
(Benefit from) provision for income taxes		-		(55)		4		13		-		(38)
Net loss		(110)		(110)		(120)		(174)		423		(91)
Less: Net income attributable to noncontrolling interests		-		-		-		19		-		19
Net loss attributable to Community Health
Systems, Inc. stockholders	$	(110)	$	(110)	$	(120)	$	(193)	$	423	$	(110)

Condensed Consolidating Statement of Loss
Six Months Ended June 30, 2019
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In millions)
Net operating revenues	$	-	$	44	$	4,083	$	2,552	$	-	$	6,679
Operating costs and expenses:
Salaries and benefits		-		-		1,567		1,463		-		3,030
Supplies		-		-		724		373		-		1,097
Other operating expenses		-		22		1,122		560		-		1,704
Government and other legal settlements and
related costs		-		-		9		-		-		9
Lease cost and rent		-		-		84		78		-		162
Depreciation and amortization		-		-		186		119		-		305
Impairment and (gain) loss on sale of businesses, net		-		(2)		45		28		-		71
Total operating costs and expenses		-		20		3,737		2,621		-		6,378
Income (loss) from operations		-		24		346		(69)		-		301
Interest expense, net		-		296		263		(37)		-		522
Loss from early extinguishment of debt		-		31		-		-		-		31
Equity in earnings of unconsolidated affiliates		285		(9)		90		-		(375)		(9)
Loss before income taxes		(285)		(294)		(7)		(32)		375		(243)
(Benefit from) provision for income taxes		-		(9)		(4)		16		-		3
Net loss		(285)		(285)		(3)		(48)		375		(246)
Less: Net income attributable to noncontrolling interests		-		-		-		39		-		39
Net loss attributable to Community Health
Systems, Inc. stockholders	$	(285)	$	(285)	$	(3)	$	(87)	$	375	$	(285)

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)	$	4,467	$	2,792	$	-	$	7,251
Operating costs and expenses:
Salaries and benefits		-		-		1,680		1,585		-		3,265
Supplies		-		-		793		415		-		1,208
Other operating expenses		-		-		1,184		605		-		1,789
Government and other legal settlements and
related costs		-		-		7		-		-		7
Electronic health records incentive reimbursement		-		-		-		(1)		-		(1)
Lease cost and rent		-		-		90		83		-		173
Depreciation and amortization		-		-		229		129		-		358
Impairment and (gain) loss on sale of businesses, net		-		14		20		168		-		202
Total operating costs and expenses		-		14		4,003		2,984		-		7,001
Loss from operations		-		(22)		464		(192)		-		250
Interest expense, net		-		189		288		(13)		-		464
(Gain) loss from early extinguishment of debt		-		(61)		2		-		-		(59)
Equity in earnings of unconsolidated affiliates		135		82		214		-		(443)		(12)
Loss from income taxes		(135)		(232)		(40)		(179)		443		(143)
(Benefit from) provision for income taxes		-		(97)		48		4		-		(45)
Net loss		(135)		(135)		(88)		(183)		443		(98)
Less: Net income attributable to noncontrolling interests		-		-		-		37		-		37
Net loss attributable to Community Health
Systems, Inc. stockholders	$	(135)	$	(135)	$	(88)	$	(220)	$	443	$	(135)

Schedule of Condensed Consolidating Statement of Comprehensive Loss

Condensed Consolidating Statement of Comprehensive Loss
Three Months Ended June 30, 2019
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net (loss) income	$	(167)	$	(167)	$	3	$	8	$	177	$	(146)
Other comprehensive income (loss), net of income taxes:
Net change in fair value of interest rate swaps, net of tax		-		-		-		-		-		-
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		-		-		-		-		-		-
Other comprehensive income (loss)		2		2		2		-		(4)		2
Comprehensive (loss) income		(165)		(165)		5		8		173		(144)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		21		-		21
Comprehensive (loss) income attributable to
Community Health Systems, Inc. stockholders	$	(165)	$	(165)	$	5	$	(13)	$	173	$	(165)

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	$	(110)	$	(110)	$	(120)	$	(174)	$	423	$	(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		7		7		-		-		(7)		7
Comprehensive loss		(103)		(103)		(120)		(174)		416		(84)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		19		-		19
Comprehensive loss attributable to
Community Health Systems, Inc. stockholders	$	(103)	$	(103)	$	(120)	$	(193)	$	416	$	(103)

Condensed Consolidating Statement of Comprehensive Loss
Six Months Ended June 30, 2019
	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In millions)
Net loss	$	(285)	$	(285)	$	(3)	$	(48)	$	375	$	(246)
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		4		4		4		-		(8)		4
Amortization and recognition of unrecognized pension
cost components, net of tax		-		-		-		-		-		-
Other comprehensive income		2		2		4		-		(6)		2
Comprehensive (loss) income		(283)		(283)		1		(48)		369		(244)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		39		-		39
Comprehensive (loss) income attributable to
Community Health Systems, Inc. stockholders	$	(283)	$	(283)	$	1	$	(87)	$	369	$	(283)

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	$	(135)	$	(135)	$	(88)	$	(183)	$	443	$	(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 (loss)		24		24		(1)		-		(23)		24
Comprehensive loss		(111)		(111)		(89)		(183)		420		(74)
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		37		-		37
Comprehensive loss attributable to
Community Health Systems, Inc. stockholders	$	(111)	$	(111)	$	(89)	$	(220)	$	420	$	(111)

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet
June 30, 2019
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	163	$	44	$	-	$	207
Patient accounts receivable		-		-		1,949		407		-		2,356
Supplies		-		-		241		137		-		378
Prepaid income taxes		-		-		-		-		-		-
Prepaid expenses and taxes		-		-		128		49		-		177
Other current assets		-		-		112		254		-		366
Total current assets		-		-		2,593		891		-		3,484
Intercompany receivable		-		12,552		4,791		6,161		(23,504)		-
Property and equipment, net		-		-		3,802		2,132		-		5,934
Goodwill		-		-		2,692		1,802		-		4,494
Deferred income taxes		57		-		-		-		-		57
Other assets, net		-		-		1,255		908		-		2,163
Net investment in subsidiaries		-		22,182		11,867		-		(34,049)		-
Total assets	$	57	$	34,734	$	27,000	$	11,894	$	(57,553)	$	16,132
LIABILITIES AND DEFICIT
Current liabilities:
Current maturities of long-term debt	$	-	$	155	$	26	$	25	$	-	$	206
Current operating lease liabilities		-		-		72		61		-		133
Accounts payable		-		-		507		305		-		812
Accrued interest		-		388		-		-		-		388
Accrued liabilities		-		1		522		441		-		964
Total current liabilities		-		544		1,127		832		-		2,503
Long-term debt		-		13,173		144		76		-		13,393
Intercompany payable		1,863		22,762		24,639		11,759		(61,023)		-
Deferred income taxes		26		-		-		-		-		26
Long-term operating lease liabilities		-		-		234		245		-		479
Other long-term liabilities		1		3		720		263		-		987
Total liabilities		1,890		36,482		26,864		13,175		(61,023)		17,388
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		503		-		503
Deficit:
Community Health Systems, Inc. stockholders’
deficit:
Common stock		1		-		-		-		-		1
Additional paid-in capital		2,002		(393)		161		(586)		818		2,002
Accumulated other comprehensive loss		(8)		(8)		(10)		-		18		(8)
(Accumulated deficit) retained earnings		(3,828)		(1,347)		(15)		(1,272)		2,634		(3,828)
Total Community Health Systems, Inc.
stockholders’ (deficit) equity		(1,833)		(1,748)		136		(1,858)		3,470		(1,833)
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		74		-		74
Total (deficit) equity		(1,833)		(1,748)		136		(1,784)		3,470		(1,759)
Total liabilities and deficit	$	57	$	34,734	$	27,000	$	11,894	$	(57,553)	$	16,132

Condensed Consolidating Balance Sheet
December 31, 2018
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	135	$	61	$	-	$	196
Patient accounts receivable		-		-		1,974		378		-		2,352
Supplies		-		-		262		140		-		402
Prepaid income taxes		3		-		-		-		-		3
Prepaid expenses and taxes		-		-		132		64		-		196
Other current assets		-		-		132		268		-		400
Total current assets		3		-		2,635		911		-		3,549
Intercompany receivable		-		12,696		4,895		6,314		(23,905)		-
Property and equipment, net		-		-		3,994		2,145		-		6,139
Goodwill		-		-		2,760		1,799		-		4,559
Deferred income taxes		69		-		-		-		-		69
Other assets, net		-		25		958		560		-		1,543
Net investment in subsidiaries		-		21,642		11,617		-		(33,259)		-
Total assets	$	72	$	34,363	$	26,859	$	11,729	$	(57,164)	$	15,859
LIABILITIES AND DEFICIT
Current liabilities:
Current maturities of long-term debt	$	-	$	155	$	22	$	27	$	-	$	204
Accounts payable		-		-		595		292		-		887
Accrued interest		-		206		-		-		-		206
Accrued liabilities		-		-		638		457		-		1,095
Total current liabilities		-		361		1,255		776		-		2,392
Long-term debt		-		13,167		147		78		-		13,392
Intercompany payable		1,572		22,299		24,599		11,796		(60,266)		-
Deferred income taxes		26		-		-		-		-		26
Other long-term liabilities		9		2		714		283		-		1,008
Total liabilities		1,607		35,829		26,715		12,933		(60,266)		16,818
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		504		-		504
Deficit:
Community Health Systems, Inc. stockholders’
deficit:
Common stock		1		-		-		-		-		1
Additional paid-in capital		2,017		(329)		162		(565)		732		2,017
Accumulated other comprehensive loss		(10)		(10)		(5)		(9)		24		(10)
(Accumulated deficit) retained earnings		(3,543)		(1,127)		(13)		(1,206)		2,346		(3,543)
Total Community Health Systems, Inc.
stockholders’ (deficit) equity		(1,535)		(1,466)		144		(1,780)		3,102		(1,535)
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		72		-		72
Total (deficit) equity		(1,535)		(1,466)		144		(1,708)		3,102		(1,463)
Total liabilities and deficit	$	72	$	34,363	$	26,859	$	11,729	$	(57,164)	$	15,859

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2019
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In millions)
Net cash provided by (used in) operating
activities	$	4	$	(67)	$	210	$	118	$	-	$	265
Cash flows from investing activities:
Acquisitions of facilities and other related
businesses		-		-		(6)		(7)		-		(13)
Purchases of property and equipment		-		-		(176)		(36)		-		(212)
Proceeds from disposition of hospitals
and other ancillary operations		-		18		135		8		-		161
Proceeds from sale of property and equipment		-		-		-		1		-		1
Purchases of available-for-sale securities
and equity securities		-		-		(15)		(24)		-		(39)
Proceeds from sales of available-for-sale securities
and equity securities		-		-		25		27		-		52
Increase in other investments		-		-		(63)		(34)		-		(97)
Net cash provided by (used in)
investing activities		-		18		(100)		(65)		-		(147)
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		-		(28)		-		-		-		(28)
Proceeds from noncontrolling investors in
joint ventures		-		-		-		2		-		2
Redemption of noncontrolling investments in
joint ventures		-		-		-		(2)		-		(2)
Distributions to noncontrolling investors in
joint ventures		-		-		-		(57)		-		(57)
Changes in intercompany balances with
affiliates, net		(3)		94		(82)		(9)		-		-
Borrowings under credit agreements		-		-		23		-		-		23
Issuance of long-term debt		-		2,034		-		-		-		2,034
Proceeds from ABL facility		-		25		-		-		-		25
Repayments of long-term indebtedness		-		(2,076)		(23)		(4)		-		(2,103)
Net cash (used in) provided by
financing activities		(4)		49		(82)		(70)		-		(107)
Net change in cash and cash equivalents		-		-		28		(17)		-		11
Cash and cash equivalents at beginning of period		-		-		135		61		-		196
Cash and cash equivalents at end of period	$	-	$	-	$	163	$	44	$	-	$	207

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)	$	94	$	191	$	-	$	94
Cash flows from investing activities:
Acquisitions of facilities and other related
businesses		-		-		(3)		(7)		-		(10)
Purchases of property and equipment		-		-		(213)		(82)		-		(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		-		-		(202)		(39)		-		(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)		315		(93)		-		-
Borrowings under credit agreements		-		-		22		4		-		26
Issuance of long-term debt		-		-		-		-		-		-
Proceeds from ABL facility		-		538		49		-		-		587
Repayments of long-term indebtedness		-		(70)		(636)		(3)		-		(709)
Net cash (used in) provided by financing
activities		(37)		228		(250)		(149)		-		(208)
Net change in cash and cash equivalents		-		-		(358)		3		-		(355)
Cash and cash equivalents at beginning of period		-		-		471		92		-		563
Cash and cash equivalents at end of period	$	-	$	-	$	113	$	95	$	-	$	208