Segment and Geographic Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 11 — SEGMENT AND GEOGRAPHIC INFORMATION

We operate in one line of business, which is operating hospitals and related health care entities. We operate in two geographically organized groups: the National and American Groups. The National Group includes 84 hospitals located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia, and the American Group includes 78 hospitals located in Colorado, northern Georgia, Kansas, southern Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas. We also operate six hospitals in England, and these facilities are included in the Corporate and other group.

Adjusted segment EBITDA is defined as income before depreciation and amortization, interest expense, losses (gains) on sales of facilities, legal claim costs, income taxes and net income attributable to noncontrolling interests. We use adjusted segment EBITDA as an analytical indicator for purposes of allocating resources to geographic areas and assessing their performance. Adjusted segment EBITDA is commonly used as an analytical indicator within the health care industry, and also serves as a measure of leverage capacity and debt service ability. Adjusted segment EBITDA should not be considered as a measure of financial performance under generally accepted accounting principles, and the items excluded from adjusted segment EBITDA are significant components in understanding and assessing financial performance. Because adjusted segment EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, adjusted segment EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. The geographic distributions of our revenues, equity in earnings of affiliates, adjusted segment EBITDA and depreciation and amortization for the quarters ended March 31, 2016 and 2015 are summarized in the following table (dollars in millions):

	2016			2015
Revenues:
National Group	$	4,967		$	4,650
American Group		4,780			4,501
Corporate and other		513			525
	$	10,260		$	9,676
Equity in earnings of affiliates:
National Group	$	(2	)	$	(3	)
American Group		(9	)		(8	)
Corporate and other		(1	)		(8	)
	$	(12	)	$	(19	)
Adjusted segment EBITDA:
National Group	$	1,138		$	1,081
American Group		983			949
Corporate and other		(118	)		(69	)
	$	2,003		$	1,961
Depreciation and amortization:
National Group	$	197		$	189
American Group		218			221
Corporate and other		64			63
	$	479		$	473
Adjusted segment EBITDA	$	2,003		$	1,961
Depreciation and amortization		479			473
Interest expense		416			419
Losses (gains) on sales of facilities		1			(9	)
Legal claim costs		12			—
Income before income taxes	$	1,095		$	1,078