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Segment and Geographic Information
12 Months Ended
Dec. 31, 2017
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, 2017, the National Group included 87 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 86 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, losses on retirement of debt, legal claim costs (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,  
     2017      2016      2015  

Revenues:

        

National Group

   $ 20,772      $ 19,845      $ 18,756  

American Group

     20,912        19,670        18,875  

Corporate and other

     1,930        1,975        2,047  
  

 

 

    

 

 

    

 

 

 
   $ 43,614      $ 41,490      $ 39,678  
  

 

 

    

 

 

    

 

 

 

Equity in earnings of affiliates:

        

National Group

   $ (21    $ (20    $ (7

American Group

     (37      (38      (32

Corporate and other

     13        4        (7
  

 

 

    

 

 

    

 

 

 
   $ (45    $ (54    $ (46
  

 

 

    

 

 

    

 

 

 

Adjusted segment EBITDA:

        

National Group

   $ 4,600      $ 4,565      $ 4,271  

American Group

     4,231        4,173        4,207  

Corporate and other

     (598      (520      (563
  

 

 

    

 

 

    

 

 

 
   $ 8,233      $ 8,218      $ 7,915  
  

 

 

    

 

 

    

 

 

 

Depreciation and amortization:

        

National Group

   $ 867      $ 806      $ 769  

American Group

     986        908        885  

Corporate and other

     278        252        250  
  

 

 

    

 

 

    

 

 

 
   $ 2,131      $ 1,966      $ 1,904  
  

 

 

    

 

 

    

 

 

 

 

     For the Years Ended December 31,  
     2017      2016      2015  

Adjusted segment EBITDA

   $ 8,233      $ 8,218      $ 7,915  

Depreciation and amortization

     2,131        1,966        1,904  

Interest expense

     1,690        1,707        1,665  

Losses (gains) on sales of facilities

     (8      (23      5  

Losses on retirement of debt

     39        4        135  

Legal claim costs (benefits)

     —          (246      249  
  

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 4,381      $ 4,810      $ 3,957  
  

 

 

    

 

 

    

 

 

 
     December 31,  
     2017      2016      2015  

Assets:

        

National Group

   $ 13,097      $ 12,320      $ 11,332  

American Group

     18,136        16,208        15,240  

Corporate and other

     5,360        5,230        6,172  
  

 

 

    

 

 

    

 

 

 
   $ 36,593      $ 33,758      $ 32,744  
  

 

 

    

 

 

    

 

 

 

 

    National
Group
    American
Group
    Corporate
and Other
    Total  

Goodwill and other intangible assets:

       

Balance at December 31, 2014

  $ 1,170     $ 4,614     $ 632     $ 6,416  

Acquisitions

    318       27       —         345  

Foreign currency translation, amortization and other

    (7     (3     (20     (30
 

 

 

   

 

 

   

 

 

   

 

 

 

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