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Segment and Geographic Information
3 Months Ended
Mar. 31, 2020
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 96 hospitals located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, North Carolina, South Carolina, Utah and Virginia, and the American Group includes 84 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, losses (gains) on sales of facilities, losses on retirement of debt, 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, 2020 and 2019 are summarized in the following table (dollars in millions):
                 
 
2020
 
 
2019
 
Revenues:
   
     
 
National Group
 
$
6,474
 
  $
6,317
 
American Group
 
 
5,744
 
   
5,595
 
Corporate and other
 
 
643
 
   
605
 
                 
 
$
12,861
 
  $
12,517
 
                 
Equity in earnings of affiliates:
   
     
 
National Group
 
$
1
 
  $
(2
)
American Group
 
 
(9
)
   
(11
)
Corporate and other
 
 
1
 
   
2
 
                 
 
$
(7
)
  $
(11
)
                 
Adjusted segment EBITDA:
   
     
 
National Group
 
$
1,215
 
  $
1,454
 
American Group
 
 
1,115
 
   
1,141
 
Corporate and other
 
 
(130
)
   
(54
)
                 
 
$
2,200
 
  $
2,541
 
                 
Depreciation and amortization:
   
     
 
National Group
 
$
306
 
  $
265
 
American Group
 
 
287
 
   
281
 
Corporate and other
 
 
81
 
   
73
 
                 
 
$
674
 
  $
619
 
                 
Adjusted segment EBITDA
 
$
2,200
 
  $
2,541
 
Depreciation and amortization
 
 
674
 
   
619
 
Interest expense
 
 
428
 
   
461
 
Losses (gains) on sales of facilities
 
 
(7
)
   
1
 
Losses on retirement of debt
 
 
295
 
   
 
                 
Income before income taxes
 
$
810
 
  $
1,460