Segment and Geographic Information

12 Months Ended

Dec. 31, 2014

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, 2014, the National Group included 82 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 77 hospitals located in Colorado, northern Georgia, Kansas, southern Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas. We also operate seven 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, 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,
	2014			2013			2012
Revenues:
National Group	$	17,325		$	15,968		$	15,505
American Group		17,532			16,487			16,115
Corporate and other		2,061			1,727			1,393
	$	36,918		$	34,182		$	33,013
Equity in earnings of affiliates:
National Group	$	(15	)	$	(9	)	$	(9	)
American Group		(31	)		(24	)		(28	)
Corporate and other		3			4			1
	$	(43	)	$	(29	)	$	(36	)
Adjusted segment EBITDA:
National Group	$	3,847		$	3,301		$	3,325
American Group		4,025			3,662			3,575
Corporate and other		(444	)		(389	)		(369	)
	$	7,428		$	6,574		$	6,531
Depreciation and amortization:
National Group	$	749		$	718		$	694
American Group		840			835			816
Corporate and other		231			200			169
	$	1,820		$	1,753		$	1,679

	For the Years Ended December 31,
	2014			2013		2012
Adjusted segment EBITDA	$	7,428		$	6,574	$	6,531
Depreciation and amortization		1,820			1,753		1,679
Interest expense		1,743			1,848		1,798
Losses (gains) on sales of facilities		(29	)		10		(15	)
Losses on retirement of debt		335			17		—
Legal claim costs		78			—		175
Income before income taxes	$	3,481		$	2,946	$	2,894
	December 31,
	2014			2013		2012
Assets:
National Group	$	10,588		$	10,206	$	9,451
American Group		15,091			13,911		13,744
Corporate and other		5,520			4,714		4,880
	$	31,199		$	28,831	$	28,075

	National Group			American Group			Corporate and Other			Total
Goodwill and other intangible assets:
Balance at December 31, 2011	$	991		$	3,988		$	272		$	5,251
Acquisitions		48			200			40			288
Foreign currency translation, amortization and other		(4	)		1			3			—
Balance at December 31, 2012		1,035			4,189			315			5,539
Acquisitions		68			13			297			378
Foreign currency translation, amortization and other		1			(12	)		(3	)		(14	)
Balance at December 31, 2013		1,104			4,190			609			5,903
Acquisitions		72			428			48			548
Foreign currency translation, amortization and other		(6	)		(4	)		(25	)		(35	)
Balance at December 31, 2014	$	1,170		$	4,614		$	632		$	6,416