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Segment and Geographic Information
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment and Geographic Information

NOTE 14 — 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. At December 31, 2018, the National Group included 88 hospitals located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia, and the American Group included 85 hospitals located in Colorado, northern Georgia, Kansas, southern Kentucky, Louisiana, Mississippi, Missouri, 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, gains on sales of facilities, losses on retirement of debt, legal claim benefits, 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, depreciation and amortization, assets and goodwill and other intangible assets are summarized in the following table (dollars in millions):

 

     For the Years Ended December 31,  
     2018      2017      2016  

Revenues:

        

National Group

   $ 22,581      $ 20,772      $ 19,845  

American Group

     21,959        20,912        19,670  

Corporate and other

     2,137        1,930        1,975  
  

 

 

    

 

 

    

 

 

 
   $ 46,677      $ 43,614      $ 41,490  
  

 

 

    

 

 

    

 

 

 

Equity in earnings of affiliates:

        

National Group

   $ (4    $ (21    $ (20

American Group

     (40      (37      (38

Corporate and other

     15        13        4  
  

 

 

    

 

 

    

 

 

 
   $ (29    $ (45    $ (54
  

 

 

    

 

 

    

 

 

 

Adjusted segment EBITDA:

        

National Group

   $ 4,980      $ 4,600      $ 4,565  

American Group

     4,593        4,231        4,173  

Corporate and other

     (624      (598      (520
  

 

 

    

 

 

    

 

 

 
   $ 8,949      $ 8,233      $ 8,218  
  

 

 

    

 

 

    

 

 

 

Depreciation and amortization:

        

National Group

   $ 946      $ 867      $ 806  

American Group

     1,027        986        908  

Corporate and other

     305        278        252  
  

 

 

    

 

 

    

 

 

 
   $ 2,278      $ 2,131      $ 1,966  
  

 

 

    

 

 

    

 

 

 

 

     For the Years Ended December 31,  
     2018      2017      2016  

Adjusted segment EBITDA

   $ 8,949      $ 8,233      $ 8,218  

Depreciation and amortization

     2,278        2,131        1,966  

Interest expense

     1,755        1,690        1,707  

Gains on sales of facilities

     (428      (8      (23

Losses on retirement of debt

     9        39        4  

Legal claim benefits

     —          —          (246
  

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 5,335      $ 4,381      $ 4,810  
  

 

 

    

 

 

    

 

 

 
     December 31,  
     2018      2017      2016  

Assets:

        

National Group

   $ 14,839      $ 13,097      $ 12,320  

American Group

     19,122        18,136        16,208  

Corporate and other

     5,246        5,360        5,230  
  

 

 

    

 

 

    

 

 

 
   $ 39,207      $ 36,593      $ 33,758  
  

 

 

    

 

 

    

 

 

 

 

     National
Group
     American
Group
     Corporate
and Other
    Total  

Goodwill and other intangible assets:

          

Balance at December 31, 2015

   $ 1,481      $ 4,638      $ 612     $ 6,731  

Acquisitions

     —          33        8       41  

Foreign currency translation, amortization and other

     (23      (10      (35     (68
  

 

 

    

 

 

    

 

 

   

 

 

 

Balance at December 31, 2016

     1,458        4,661        585       6,704  

Acquisitions

     19        612        62       693  

Foreign currency translation, amortization and other

     (3      (8      8       (3
  

 

 

    

 

 

    

 

 

   

 

 

 

Balance at December 31, 2017

     1,474        5,265        655       7,394  

Acquisitions

     132        504        —         636  

Foreign currency translation, amortization and other

     (9      (40      (28     (77
  

 

 

    

 

 

    

 

 

   

 

 

 

Balance at December 31, 2018

   $ 1,597      $ 5,729      $ 627     $ 7,953