Summarized Financial Information

3 Months Ended

Mar. 31, 2020

Summarized Financial Information [Abstract]

15. SUMMARIZED FINANCIAL INFORMATION

The 6⅞% Senior Notes due 2022, which are senior unsecured obligations of CHS, and the 6¼% Senior Secured Notes due 2023, which are senior secured obligations of CHS (collectively, “the Notes”) are guaranteed on a senior basis by the Company and by certain of its existing and subsequently acquired or organized 100% owned domestic subsidiaries (collectively, the “subsidiary guarantors”). In addition, equity interests held by the Company in non-guarantor subsidiaries have been pledged as collateral under the Notes, except for equity interests held in three hospitals owned jointly with a non-profit, health organization. The Notes are fully and unconditionally guaranteed on a joint and several basis, with exceptions considered customary for such guarantees, limited to the release of the guarantee when a subsidiary guarantor’s capital stock is sold, or a sale of all of the subsidiary guarantor’s assets used in operations. There are no significant restrictions on the ability of the subsidiary guarantors to make distributions to the issuer. Summarized financial information is provided for Community Health Systems, Inc. (parent guarantor), CHS (issuer) and the subsidiary guarantors on a combined basis in accordance with SEC Regulation S-X Rules 3-10 and 13-01.

The accounting policies used in the preparation of this summarized financial information are consistent with those elsewhere in the condensed consolidated financial statements of the Company, except that intercompany transactions and balances of the parent, issuer and subsidiary guarantor entities with non-guarantors entities have not been eliminated. Equity in earnings from investments in non-guarantors entities has not been presented.

From time to time, subsidiaries of the Company sell and/or repurchase noncontrolling interests in consolidated subsidiaries, which may change subsidiaries between guarantors and non-guarantors. Amounts for prior periods have been revised to reflect the status of guarantors and non-guarantors as of March 31, 2020.

Summarized statements of income (loss) (in millions):


	Three Months Ended
	March 31, 2020
Net operating revenues	$	1,996
Income from operations		249
Net income		86
Net income attributable to Community Health Systems, Inc. Stockholders		86

Summarized balance sheets (in millions):


	March 31, 2020		December 31, 2019
Current assets	$	2,469	$	2,464
Noncurrent assets (a)		14,450		14,596
Current liabilities		1,413		1,472
Noncurrent liabilities (b)		17,330		15,800

(a) Includes amounts due from non-guarantor subsidiaries of $6.5 billion at both March 31, 2020 and December 31, 2019.
(b) Includes amounts due to non-guarantor subsidiaries of $3.0 billion and $1.4 billion as of March 31, 2020 and December 31, 2019,
respectively.