Community Health Systems 2015 Annual Report Download - page 143

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Loss from Early Extinguishment of Debt
The financing transactions discussed above resulted in a loss from the early extinguishment of debt of
$16 million, $73 million and $1 million for the years ended December 31, 2015, 2014 and 2013, respectively,
and an after-tax loss of $10 million, $45 million and $1 million for the years ended December 31, 2015 and 2014
and 2013, respectively.
Other Debt
As of December 31, 2015, other debt consisted primarily of the mortgage obligation on the Company’s
corporate headquarters and other obligations maturing in various installments through 2020.
To limit the effect of changes in interest rates on a portion of the Company’s long-term borrowings, the
Company is a party to 13 separate interest swap agreements in effect at December 31, 2015, with an aggregate
notional amount for currently effective swaps of $3.0 billion, and two forward-starting swap agreements with an
aggregate notional amount of $500 million. On each of these swaps, the Company receives a variable rate of
interest based on the three-month LIBOR in exchange for the payment of a fixed rate of interest. The Company
currently pays, on a quarterly basis, interest on the Revolving Facility and the Term A Facility at a rate per
annum equal to LIBOR plus 2.75%. Loans in respect of the Term F Facility accrue interest at a rate per annum
equal to LIBOR plus 3.25%. The Term G Loan and Term H Loan accrue interest at a rate per annum equal to
LIBOR plus 2.75% and 3.00%, in the case of LIBOR borrowings, respectively, and Alternate Base Rate plus
1.75% and 2.00%, respectively, in the case of Alternate Base Rate Borrowings. The Term G Loan and the Term
H Loan are subject to a 1.00% LIBOR floor and a 2.00% Alternate Base Rate floor. See Note 8 for additional
information regarding these swaps.
As of December 31, 2015, the scheduled maturities of long-term debt outstanding, including capital lease
obligations for each of the next five years and thereafter are as follows (in millions):
Year Amount
2016 ...................................................................... $ 229
2017 ...................................................................... 963
2018 ...................................................................... 3,767
2019 ...................................................................... 3,919
2020 ...................................................................... 1,239
Thereafter ................................................................. 6,919
Total maturities ............................................................. 17,036
Plus unamortized note premium ................................................ 15
Total long-term debt ......................................................... $ 17,051
The Company paid interest of $925 million, $831 million and $583 million on borrowings during the years
ended December 31, 2015, 2014 and 2013, respectively.
130