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Summarized Financial Information
6 Months Ended
Jun. 30, 2020
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Summarized Financial Information

15.  SUMMARIZED FINANCIAL INFORMATION

The 6⅞% Senior Notes due 2022, which are senior unsecured obligations of CHS, and the % 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 non-profit, health organizations. 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 June 30, 2020.


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

 

 

Six Months Ended

 

 

June 30, 2020

 

Net operating revenues

$

3,672

 

Income from operations

 

532

 

Net income

 

168

 

Net income attributable to Community Health Systems, Inc. Stockholders

 

168

 

 

Summarized balance sheets (in millions):

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Current assets

 

$

3,596

 

 

$

2,464

 

Noncurrent assets (a)

 

 

14,495

 

 

 

14,596

 

Current liabilities

 

 

2,354

 

 

 

1,472

 

Noncurrent liabilities (b)

 

 

14,854

 

 

 

15,800

 

 

(a)

Includes amounts due from non-guarantor subsidiaries of $6.4 billion and $6.5 billion as of June 30, 2020 and December 31, 2019, respectively.

(b)

Includes amounts due to non-guarantor subsidiaries of $0.7 billion and $1.4 billion as of June 30, 2020 and December 31, 2019, respectively.