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Segment and Geographic Information
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment and Geographic Information
NOTE 12 — 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 95 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 83 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, 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 and nine months ended September 30, 2019 and 2018 are summarized in the following table (dollars in millions):
                                 
 
Quarter
   
Nine Months
 
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Revenues:
   
     
     
     
 
National Group
 
$
6,398
 
  $
5,542
   
$
19,159
 
  $
16,719
 
American Group
 
 
5,780
 
   
5,396
   
 
17,001
 
   
16,113
 
Corporate and other
 
 
516
 
   
513
   
 
1,653
 
   
1,571
 
                                 
 
$
12,694
 
  $
11,451
   
$
37,813
 
  $
34,403
 
                                 
Equity in earnings of affiliates:
 
 
 
   
   
 
 
   
 
National Group
 
$
2
 
  $
(1
)  
$
(3
)
  $
(5
)
American Group
 
 
(10
)
   
(10
)  
 
(32
)
   
(29
)
Corporate and other
 
 
4
 
   
2
   
 
12
 
   
9
 
                                 
 
$
(4
)
  $
(9
)  
$
(23
)
  $
(25
)
                                 
Adjusted segment EBITDA:
 
 
 
   
   
 
 
   
 
National Group
 
$
1,270
 
  $
1,127
   
$
4,088
 
  $
3,593
 
American Group
 
 
1,185
 
   
1,072
   
 
3,443
 
   
3,250
 
Corporate and other
 
 
(170
)
   
(103
)  
 
(412
)
   
(402
)
                                 
 
$
2,285
 
  $
2,096
   
$
7,119
 
  $
6,441
 
                                 
Depreciation and amortization:
 
 
 
   
   
 
 
   
 
National Group
 
$
291
 
  $
245
   
$
839
 
  $
702
 
American Group
 
 
277
 
   
258
   
 
828
 
   
765
 
Corporate and other
 
 
79
 
   
79
   
 
235
 
   
230
 
                                 
 
$
647
 
  $
582
   
$
1,902
 
  $
1,697
 
                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted segment EBITDA
 
$
2,285
 
  $
2,096
   
$
7,119
 
  $
6,441
 
Depreciation and amortization
 
 
647
 
   
582
   
 
1,902
 
   
1,697
 
Interest expense
 
 
448
 
   
442
   
 
1,386
 
   
1,309
 
Gains on sales of facilities
 
 
 
   
(6
)  
 
(17
)
   
(420
)
Losses on retirement of debt
 
 
211
 
   
9
   
 
211
 
   
9
 
                                 
Income before income taxes
 
$
979
 
  $
1,069
   
$
3,637
 
  $
3,846