Community Health Systems 2015 Annual Report Download - page 103

It is possible the amount of unrecognized tax benefit could change in the next 12 months as a result of a lapse
of the statute of limitations and settlements with taxing authorities; however, we do not anticipate the change will
have a material impact on our consolidated results of operations or consolidated financial position.
We, or one of our subsidiaries, files income tax returns in the United States federal jurisdiction and various
state jurisdictions. We have extended the federal statute of limitations through December 31, 2016 for Triad
Hospitals, Inc. for the tax periods ended December 31, 1999, December 31, 2000, April 30, 2001, June 30,
2001, December 31, 2001, December 31, 2002, December 31, 2003, December 31, 2004, December 31,
2005, December 31, 2006 and July 25, 2007. With few exceptions, we are no longer subject to state income tax
examinations for years prior to 2011.Our federal income tax returns for the 2009 and 2010 tax years are currently
under examination by the Internal Revenue Service. We believe the results of these examinations will not be
material to our consolidated results of operations or consolidated financial position. We have extended the
federal statute of limitations through December 31, 2016 for Community Health Systems, Inc. for the tax periods
ended December 31, 2007, 2008, 2009 and 2010, and through September 6, 2016 for the tax period ended
December 31, 2011.
Recent Accounting Pronouncements
In April 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-08, which changes the
requirements for reporting discontinued operations. A discontinued operation continues to include a component
of an entity or a group of components of an entity, or a business activity. However, in a shift reflecting
stakeholder concerns that too many disposals of small groups of assets that are recurring in nature qualified for
reporting as discontinued operations, a disposal of a component of an entity or a group of components of an
entity will be required to be reported in discontinued operations if the disposal represents a strategic shift that has
(or will have) a major effect on an entity’s operations and financial results. A business or nonprofit activity that,
on acquisition, meets the criteria to be classified as held for sale will still be a discontinued operation. Additional
disclosures will be required for significant components of the entity that are disposed of or are held for sale but
do not qualify as discontinued operations. This ASU is effective for fiscal years beginning after December 15,
2014 and is to be applied on a prospective basis for disposals or components initially classified as held for sale
after that date. We adopted this ASU on January 1, 2015 and the adoption resulted in divestitures occurring
subsequent to the date of adoption being included in continuing operations for the year ended December 31,
2015.
In May 2014, the FASB issued ASU 2014-09, which outlines a single comprehensive model for recognizing
revenue and supersedes most existing revenue recognition guidance, including guidance specific to the healthcare
industry. This ASU provides companies the option of applying a full or modified retrospective approach upon
adoption. This ASU is effective for fiscal years beginning after December 15, 2016. However, the FASB recently
issued a final ASU that defers the effective date by one year, with early adoption permitted for annual periods
beginning after December 15, 2016. We expect to adopt this ASU on January 1, 2018 and are currently
evaluating our plan for adoption and the impact on our revenue recognition policies, procedures and control
framework and the resulting impact on our consolidated financial position, results of operations and cash flows.
In April 2015, the FASB issued ASU 2015-03, which requires debt issuance costs related to a recognized debt
liability be presented in the balance sheet as a direct reduction from the carrying amount of that debt liability,
consistent with the accounting for debt discounts. The ASU did not change the measurement or recognition
guidance for debt issuance costs. This ASU is effective for fiscal years beginning after December 31, 2015, with
early adoption permitted. We adopted this ASU on January 1, 2016, which will result in the reclassification of
approximately $266 million of debt issuance costs from other long-term assets to a reduction of the related long-
term debt.
In November 2015, the FASB issued ASU 2015-17, which amended the balance sheet classification
requirements for deferred income taxes to simplify their presentation in the statement of financial position. The
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