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Stockholders' Deficit
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
STOCKHOLDERS' DEFICIT

10. STOCKHOLDERS’ DEFICIT

Authorized capital shares of the Company include 400,000,000 shares of capital stock consisting of 300,000,000 shares of common stock and 100,000,000 shares of preferred stock. Each of the aforementioned classes of capital stock has a par value of $0.01 per share. Shares of preferred stock, none of which were outstanding as of March 31, 2024, may be issued in one or more series having such rights, preferences and other provisions as determined by the Board of Directors without approval by the holders of common stock.

The Company is a holding company, which operates through its subsidiaries. The ABL Facility and the indentures governing each series of the Company’s outstanding notes contain various covenants under which the assets of the subsidiaries of the Company are subject to certain restrictions relating to, among other matters, dividends and distributions, as referenced in the paragraph below.

The ABL Facility and the indentures governing each series of the Company’s outstanding notes restrict the Company’s subsidiaries from, among other matters, paying dividends and making distributions to the Company, which thereby limits the Company’s ability to pay dividends and/or repurchase stock. As of March 31, 2024, under the most restrictive test in these agreements (and subject to certain exceptions), the Company has approximately $300 million of capacity to pay permitted dividends and/or repurchase shares of stock or make other restricted payments.

 

The schedule below presents the reconciliation of the carrying amount of total equity, equity attributable to the Company’s stockholders, and equity attributable to noncontrolling interests as of March 31, 2024, and during the three-month period following December 31, 2023 (in millions). Other reclassifications of noncontrolling interests reflects reclassification of amounts from redeemable noncontrolling interests to noncontrolling interests due to the expiration of redemption features.

 

 

 

 

 

 

 

 

Community Health Systems, Inc. Stockholders

 

 

 

 

 

 

 

 

 

Redeemable
Noncontrolling
Interest

 

 

 

Common
Stock

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Other
Comprehensive
(Loss) Income

 

 

Accumulated
Deficit

 

 

Noncontrolling
Interest

 

 

Total
Stockholders’
Deficit

 

Balance, December 31, 2023

 

$

323

 

 

 

$

1

 

 

$

2,185

 

 

$

(14

)

 

$

(3,564

)

 

$

245

 

 

$

(1,147

)

Comprehensive income (loss)

 

 

16

 

 

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

(41

)

 

 

19

 

 

 

(24

)

Distributions to noncontrolling
   interests

 

 

(17

)

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(33

)

 

 

(33

)

Adjustment to redemption value of
   redeemable noncontrolling
   interests

 

 

(3

)

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

Cancellation of restricted stock for
   tax withholdings on vested shares

 

 

—

 

 

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Other reclassifications of
   noncontrolling interests

 

 

10

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10

)

 

 

(10

)

Share-based compensation

 

 

—

 

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

Balance, March 31, 2024

 

$

329

 

 

 

$

1

 

 

$

2,192

 

 

$

(16

)

 

$

(3,605

)

 

$

221

 

 

$

(1,207

)

The following schedule presents the reconciliation of the carrying amount of total equity, equity attributable to the Company’s stockholders, and equity attributable to the noncontrolling interests as of March 31, 2023, and during the three-month period following December 31, 2022 (in millions):

 

 

 

 

 

 

 

Community Health Systems, Inc. Stockholders

 

 

 

 

 

 

 

 

 

Redeemable
Noncontrolling
Interest

 

 

 

Common
Stock

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Other
Comprehensive
(Loss) Income

 

 

Accumulated
Deficit

 

 

Noncontrolling
Interest

 

 

Total
Stockholders’
Deficit

 

Balance, December 31, 2022

 

$

541

 

 

 

$

1

 

 

$

2,084

 

 

$

(21

)

 

$

(3,431

)

 

$

92

 

 

$

(1,275

)

Comprehensive income (loss)

 

 

21

 

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

(51

)

 

 

11

 

 

 

(37

)

Distributions to noncontrolling
   interests

 

 

(33

)

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(11

)

 

 

(11

)

Purchases of subsidiary shares
   from noncontrolling interests

 

 

(1

)

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Contributions from noncontrolling
   interests

 

 

1

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Adjustment to redemption value of
   redeemable noncontrolling
   interests

 

 

32

 

 

 

 

—

 

 

 

(32

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(32

)

Cancellation of restricted stock for
   tax withholdings on vested
   shares

 

 

—

 

 

 

 

—

 

 

 

(4

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4

)

Share-based compensation

 

 

—

 

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

Balance, March 31, 2023

 

$

561

 

 

 

$

1

 

 

$

2,054

 

 

$

(18

)

 

$

(3,482

)

 

$

93

 

 

$

(1,352

)