Segment and Geographic Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 10 — SEGMENT AND GEOGRAPHIC INFORMATION

Effective January 1, 2023, we reorganized our operations from two geographically organized groups into three geographically organized groups: the National, American and Atlantic Groups. The National Group includes 57 hospitals located in Alaska, California, Idaho, Indiana, Kentucky, Nevada, New Hampshire, North Carolina, Tennessee, Utah and Virginia, the American Group includes 55 hospitals located in Colorado, central Kansas, Louisiana and Texas, and the Atlantic Group includes 61 hospitals located in Florida, Georgia, northern Kansas, Missouri and South Carolina. The seven hospitals we operate in England remain in the Corporate and other group. Prior periods presented have been restated according to the new organizational structure.

NOTE 10 — SEGMENT AND GEOGRAPHIC INFORMATION (continued)

Adjusted segment EBITDA is defined as income before depreciation and amortization, interest expense, gains and losses on sales of facilities, 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, 2023 and 2022 and assets at March 31, 2023 and December 31, 2022 are summarized in the following table (dollars in millions):

	2023			2022
Revenues:
National Group	$	4,616		$	4,202
Atlantic Group		5,109			4,686
American Group		5,199			5,206
Corporate and other		667			851
	$	15,591		$	14,945
Equity in losses (earnings) of affiliates:
National Group	$	(1	)	$	—
Atlantic Group		(1	)		—
American Group		(12	)		(9	)
Corporate and other		32			(2	)
	$	18		$	(11	)
Adjusted segment EBITDA:
National Group	$	1,149		$	955
Atlantic Group		1,086			850
American Group		1,133			1,316
Corporate and other		(196	)		(177	)
	$	3,172		$	2,944
Depreciation and amortization:
National Group	$	207		$	197
Atlantic Group		239			222
American Group		237			232
Corporate and other		73			81
	$	756		$	732
Adjusted segment EBITDA	$	3,172		$	2,944
Depreciation and amortization		756			732
Interest expense		479			408
Losses (gains) on sales of facilities		15			(10	)
Income before income taxes	$	1,922		$	1,814
	March 31, 2023			December 31, 2022
Assets:
National Group	$	12,058		$	11,793
Atlantic Group		15,383			15,092
American Group		17,742			17,934
Corporate and other		7,528			7,619
	$	52,711		$	52,438