Community Health Systems 2015 Annual Report Download - page 88

The table below sets forth additional detail about our upcoming cash obligations and a further discussion of
our existing Credit Facility is set out under the section “Capital Resources” in Item 7 of this Form 10-K. We do
not anticipate the need to use funds currently available under our Credit Facility for purposes of funding our
operations, although these funds could be used for the purpose of making further acquisitions or for restructuring
our existing debt. Furthermore, we anticipate we will remain in compliance with our debt covenants during 2016.
As described in Notes 7, 10 and 17 of the Notes to Consolidated Financial Statements, at December 31, 2015,
we had certain cash obligations, which are due as follows (in millions):
2022
Total 2016 2017-2019 2020-2021 and thereafter
Long-term debt .............$ 7,307 $ 187 $ 4,301 $ 62 $ 2,757
8% Senior Notes due 2019 .... 2,000 - 2,000 - -
7
1
⁄ 8 % Senior Notes due 2020 . . 1,200 - - 1,200 -
5
1
⁄ 8 % Senior Secured Notes due
2018 .................... 1,600 - 1,600 - -
5
1
⁄ 8 % Senior Secured Notes due
2021 .................... 1,000 - - 1,000 -
6
7
⁄ 8 % Senior Notes due 2022 . . 3,000 - - - 3,000
Receivables facility .......... 700 - 700 - -
Total long-term debt ......... 16,807 187 8,601 2,262 5,757
Interest on credit facility, notes
and receivables facility (1) . . 3,827 848 2,295 667 17
Capital lease obligations,
including interest .......... 384 48 76 30 230
Operating leases ............. 1,102 288 504 149 161
Replacement facilities and other
capital commitments (2) .... 382 101 274 4 3
Open purchase orders (3) ...... 646 509 137 - -
Liability for uncertain tax
positions, including interest
and penalties ............. 7 - 6 - 1
Total ......................$ 23,155 $ 1,981 $ 11,893 $ 3,112 $ 6,169
(1) Estimate of interest payments assumes the interest rates at December 31, 2015 remain constant during the
period presented for our credit facility and our receivables facility, which are variable rate debt. The interest
rate used to calculate interest payments for our credit facility was the London Interbank Offered Rate, or
LIBOR, as of December 31, 2015 plus the applicable spread. The 8% Senior Notes are fixed at an interest
rate of 8% per annum. The 7
1
⁄ 8 % Senior Notes are fixed at an interest rate of 7.125% per annum. The 5
1
⁄ 8 %
Senior Secured Notes due 2018 and 2021 are fixed at an interest rate of 5.125% per annum. The 6
7
⁄ 8 %
Senior Notes are fixed at an interest rate of 6.875% per annum.
(2) Pursuant to hospital purchase agreements in effect as of December 31, 2015, we have commitments to build
one replacement facility and the following capital commitments. As part of an acquisition in 2012, we
agreed to build a replacement hospital in York, Pennsylvania, by July 2017. Construction costs, including
equipment costs, for this replacement facility is currently estimated to be approximately $125 million, of
which approximately $5 million has been incurred to date. In addition, under other purchase agreements, we
have committed to spend approximately $516 million for costs such as capital improvements, equipment,
selected leases and physician recruiting. These commitments are required to be fulfilled generally over a
five to seven year period after acquisition. Through December 31, 2015, we have incurred approximately
$254 million related to these commitments.
(3) Open purchase orders represent our commitment for items or services ordered but not yet received.
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