2024-05-14T09:02:10-05:00 2023-06-30 135565207 KPMG LLP 8350 BROAD STREET SUITE 900 MCLEAN VA 22102 990 2022-07-01 541278830 CHILDREN'S HEALTH SYSTEM INC CHIL 7576687000 601 CHILDRENS LANE NORFOLK VA 23507 KATHRYN ABSHIRE CFO/ASST TREAS/SECR 7576687000 2024-05-13 1 KATHRYN ABSHIRE 999009999 1 SHAWN HUTCHINSON P01048557 7032868000 2024-05-10 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z AMY SAMPSON 601 CHILDRENS LANE NORFOLK VA 23507 55384900 0 X WWW.CHKD.ORG X 1984 VA CHILDREN'S HEALTH SYSTEM IS A MULTI-SPECIALTY HEALTH SYSTEM SERVING SOUTHEASTERN VIRGINIA AND NORTHEASTERN NORTH CAROLINA OFFERING COMPREHENSIVE PEDIATRIC CARE FOR CHILDREN FROM BIRTH TO AGE 21. 18 15 57 19 0 0 9700000 12300000 18154518 19328589 710002 232630 667347 4915588 29231867 36776807 4500000 3300000 0 0 12627209 11956082 0 0 448070 17065771 20263267 34192980 35519349 -4961113 1257458 115004661 129852058 74285871 83269505 40718790 46582553 X SEE SCHEDULE OCHILDREN'S HEALTH SYSTEM IS A PEDIATRIC HEALTHCARE SYSTEM DEDICATED TO THE HEALTH AND WELLBEING OF CHILDREN AND YOUNG ADULTS FROM SOUTHEASTERN VIRGINIA, VIRGINIA'S EASTERN SHORE AND NORTHEASTERN NORTH CAROLINA. THROUGH ITS OVERSIGHT AND MANAGEMENT OF CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS, CHILDREN'S MEDICAL GROUP, CHILDREN'S SURGICAL SPECIALTY GROUP AND CHILDREN'S HEALTH FOUNDATION, THE HEALTH SYSTEM MEETS THE VARIED MEDICAL NEEDS OF MORE THAN 400,000 INFANTS, CHILDREN, TEENS AND YOUNG ADULTS. 0 0 29899584 3300000 19469161 THE HEALTH SYSTEM PROVIDED LONG RANGE PLANNING, MANAGEMENT AND SUPPORT SERVICES FOR ITS SUBSIDIARIES IN FURTHERANCE OF THEIR MISSIONS. 280 CONTINUING MEDICAL EDUCATION PROGRAMS FOR COMMUNITY PHYSICIANS AND SUPPORT SERVICES FOR ITS SUBSIDIARY CORPORATIONS IN THE FURTHERANCE OF THEIR MISSIONS. 29899864 1 1 0 1 0 0 0 0 0 0 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 1 43 0 1 57 1 0 0 0 0 0 0 0 0 0 0 1 0 X 18 15 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 NC VA X KATHRYN ABSHIRE 7576687000 601 CHILDRENS LANE NORFOLK VA 23507 MARTA SATIN-SMITH DIRECTOR 1.00 1.00 X 0 0 0 MILES LEON DIRECTOR 1.00 1.00 X 0 0 0 R JUSTIN FULTON DIRECTOR 1.00 1.00 X 0 0 0 SVINDER S TOOR MD DIRECTOR 1.00 1.00 X 0 0 0 MARTHA COLEN DIRECTOR 1.00 1.00 X 0 0 0 EDWARD WHITMORE TREASURER/DIRECTOR 2.00 2.00 X 0 0 0 STACEY VELLINES DIRECTOR 1.00 1.00 X 0 0 0 KIERAN POULOS DIRECTOR 1.00 1.00 X 0 0 0 OWEN GRIFFEN DIRECTOR 1.00 1.00 X 0 0 0 KEVIN MURPHY DIRECTOR 1.00 1.00 X 0 0 0 SCOTT NOTTINGHAM MD DIRECTOR 1.00 41.00 X 0 420028 40440 BRIAN SKINNER DIRECTOR 1.00 1.00 X 0 0 0 KATHERINE KNAUS DIRECTOR 1.00 1.00 X 0 0 0 NICOLE LEGUM DIRECTOR 1.00 1.00 X 0 0 0 CARL ST REMY MD DIRECTOR 1.00 40.00 X 0 696945 40904 JAMES D DAHLING UNTIL 62123 PRESIDENT/DIRECTOR 41.00 2.00 X X 1189913 0 40552 AMY SAMPSON AS OF 062123 PRESIDENT/DIRECTOR 41.00 2.00 X X 686334 0 289621 AKHIL JAIN CHAIRMAN/DIRECTOR 2.00 2.00 X X 0 0 0 ELLY BRADSHAW SMITH DIRECTOR 1.00 1.00 X 0 0 0 JOHN R LAWSON II DIRECTOR 1.00 1.00 X 0 0 0 JULIA CHILDRESS BECK DIRECTOR 1.00 1.00 X 0 0 0 KATHRYN M VAN BUREN DIRECTOR 1.00 1.00 X 0 0 0 KIM GEORGES SECRETARY/DIRECTOR 2.00 2.00 X 0 0 0 DENNIS RYAN UNTIL 070822 CFO & ASST. SECR./TREAS. 41.00 2.00 X 348254 0 31377 KATHRYN ABSHIRE AS OF 070822 CFO & ASST. SECR./TREAS. 41.00 1.00 X 567656 0 192618 TAMIKA HARRIS VP FACILITIES & SUPPORT SERV 0.00 40.00 X 0 283486 99698 JOSEPH BLACK JR DIRECTOR RISK & REGULATORY 40.00 0.00 X 218357 0 27587 DEBORAH BARNES VP - IS OPERATIONS 40.00 0.00 X 807442 0 260207 JOHN HARDING CHIEF OPERATING OFFICER 40.00 0.00 X 909227 0 371789 PAUL MORLOCK VP HR AND OCCUPATIONAL HEALTH 40.00 0.00 X 736006 0 17783 KIMBERLY DAY VP GENERAL COUNSEL 40.00 0.00 X 477920 0 110938 5941109 1400459 1523514 23 0 1 0 SYR INC 795 MONTICELLO AVE NORFOLK VA 23601 MGMT & WF FEE 9304459 DAVIS & COMPANY 1705 BALTIC AVE VIRGINIA BEACH VA 23455 ADVERTISING 1190082 KPMG PO BOX 120522 DALLAS TX 75312 ACCOUNTING 551441 ECG MANAGEMENT CONSULTANTS INC PO BOX 74008176 CHICAGO IL 606748176 PAYER CONSULTING 461410 KAUFMAN HALL & ASSOCIATES LLC 8610 SOLUTION CENTER CHICAGO IL 606778006 CONSULTING 222607 19 12300000 12300000 MANAGEMENT FEES FROM SUBSIDIARIES 900099 16514380 16514380 SALARY AND SUPPORT REVENUE 900099 1710594 1710594 CONTRACT REVENUE 900099 1103615 1103615 19328589 248288 248288 3261599 2432832 828767 828767 828767 2479162 2494820 -15658 -15658 -15658 16998370 13680441 3317929 3317929 GAIN/LOSS ON UNCONSOLIDATED SUBS. 900099 628320 628320 MISCELLANEOUS 900099 140572 140572 768892 36776807 19469161 0 5007646 3300000 3300000 2724541 491549 2022328 210664 6648015 4993127 1652079 2809 1399231 602240 796991 753731 641752 111629 350 430564 309854 120577 133 494648 79646 415002 478360 478270 90 288851 288851 3132683 3132018 615 50 1829129 1828457 672 208679 190749 5690 12240 183811 183811 224245 171553 52692 42714 41962 691 61 22473 17664 4809 1267269 1267269 9992471 9992471 45033 31943 13090 1393151 1281874 111277 OTHER EXPENSES 589572 512789 38741 38042 SUPPLIES 32961 27788 2173 3000 PURCHASED SERVICES 22169 22169 EQUIP RENTAL AND MAINT. 15048 12058 2990 35519349 29899864 5171415 448070 5425540 5898901 23309 18188 747268 719415 56113864 10024947 47098457 46088917 4723048 5651985 2450019 6877032 54537020 64597620 115004661 129852058 3738929 4254831 47356713 46811013 23190229 32203661 74285871 83269505 X 40718790 46582553 40718790 46582553 115004661 129852058 X 1257458 3818725 593497 194083 X 0 1 X 1 1 1 X X 1 CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS INC 540506321 3 1 3300000 0 1 3300000 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 PART I, LINE 12G, COLUMN VI: THE EXPENSES INCURRED BY CHILDREN'S HEALTH SYSTEM, INC. THAT ARE REPORTED ON FORM 990, PART IX WERE EXPENDED TO PROVIDE SUPPORT AND MANAGEMENT TO ITS SUPPORTED ORGANIZATION. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 0 0 0 0 1 351711 0 0 351711 0 PART II-B, LINE 1: CHILDREN'S HEALTH SYSTEM (CHS) TAKES THE WELFARE OF THE CHILDREN THAT ARE CARED FOR WITHIN THE CHS FAMILY AS A PRIORITY. AS SUCH, THERE ARE MANY LEGISLATIVE ISSUES THAT OUR STATE AND FEDERAL GOVERNMENTS HANDLE THAT COULD AFFECT CHS. CHS RELIES ON VOLUNTEERS FROM THE NORFOLK CITY UNION OF THE KING'S DAUGHTERS, INC. (NCUKD) TO ASSIST IN LETTER-WRITING, EXERCISING THE PERSONAL RIGHTS TO VOTE AND IN SPREADING EDUCATION ON LEGISLATIVE ISSUES AFFECTING THE ORGANIZATION. ADDITIONALLY, CHS HAS PAID STAFF AND MANAGEMENT ALONG WITH MEMBERSHIP IN HEALTHCARE ASSOCIATIONS AND RETENTION OF PROFESSIONAL LOBBYING FIRMS THAT WORK ON LOBBYING ISSUES AND HAVE DIRECT CONTACT WITH LEGISLATORS, GOVERNMENT OFFICIALS AND OTHER MEMBERS OF LEGISLATIVE INFLUENCE. ISSUES THAT ARE ADDRESSED INCLUDE PEDIATRIC GENERAL AND MENTAL HEALTH CARE, CHILDREN'S HOSPITALS GRADUATE MEDICAL EDUCATION BUDGET AND FUNDING, TRICARE FUNDING FOR CHILDREN'S HEALTH ISSUES, MEDICAID/CHIP, CHILDREN'S MENTAL HEALTH SERVICES, MEDICAL EDUCATION, DEFENSE HEALTH AGENCY PEDIATRIC CARE, THE DEPARTMENT OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATIONS ACT 2023, MILITARY TREATMENT FACILITIES RESTRUCTURING, CONGRESSIONALLY DIRECTED SPENDING AND COMMUNITY PROJECT FUNDING, AND THE DONOR MILK SAFETY ACT. 19662039 19662039 34151522 8532990 25618532 271350 234193 37157 1883501 1257764 625737 145452 145452 46088917 CLOSE-HELD EQUITY INTERESTS 6877032 C 6877032 INVESTMENT IN SUBSIDIARIES 36897015 457B/TOPHAT INVESTMENT 10162028 INSURANCE RECOVERABLE 3745713 CSV OF LIFE INSURANCE 508155 INTERCOMPANY RECEIVABLE 1581899 SERP PLAN ASSETS 656268 ACCOUNTS RECEIVABLE MISC 670860 DERIVATIVE INSTRUMENTS 4759505 RIGHT OF USE ASSETS 5616177 64597620 SERP LIABILITIES 11868954 457B/TOPHAT LIAB 10162028 IBNE INSURANCE CLAIMS 3745713 ACCRUED TAIL COVERAGE 516780 EXEC CAP APPREC ACCT (CAA) 132764 INTERCOMPANY LIABILITIES 112142 RIGHT OF USE LIABILITY 5665280 32203661 X PART X, LINE 2: ASC 740 FOOTNOTE FROM CONSOLIDATED AUDIT REPORT CHS RECOGNIZES ANY BENEFITS FROM AN UNCERTAINTY IN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. IF APPLICABLE, THE TAX BENEFITS RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS FROM SUCH A POSITION WOULD BE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE RESOLUTION. CHS DOES NOT BELIEVE ANY UNCERTAIN TAX PROVISIONS REQUIRE RECORDING IN ITS CONSOLIDATED FINANCIAL STATEMENTS. 1 CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS 601 CHILDRENS LANE NORFOLK VA 23507 540506321 501(C)(3) 3300000 0 SUPPORT MISSION 1 0 SCHEDULE I, PART II: CHILDREN'S HEALTH SYSTEM, INC. DID NOT PROVIDE GRANTS TO UNRELATED THIRD PARTIES DURING THE TAX YEAR. THE AMOUNTS LISTED ON PART II ARE CONTRIBUTIONS TO THE ORGANIZATIONS LISTED. X 1 1 X X X X 0 1 0 0 0 0 0 0 0 JOHN HARDING CHIEF OPERATING OFFICER 488108 0 0 0 421119 0 338305 0 33484 0 1281016 0 262810 0 JAMES D DAHLING UNTIL 62123 PRESIDENT/DIRECTOR 1078156 0 0 0 111757 0 12200 0 28352 0 1230465 0 0 0 DEBORAH BARNES VP - IS OPERATIONS 431022 0 0 0 376420 0 230378 0 29829 0 1067649 0 343695 0 AMY SAMPSON AS OF 062123 PRESIDENT/DIRECTOR 405847 0 19125 0 261362 0 270031 0 19590 0 975955 0 247211 0 KATHRYN ABSHIRE AS OF 070822 CFO & ASST. SECR./TREAS. 477698 0 0 0 89958 0 156267 0 36351 0 760274 0 76184 0 PAUL MORLOCK VP HR AND OCCUPATIONAL HEALTH 233186 0 0 0 502820 0 10467 0 7316 0 753789 0 291255 0 CARL ST REMY MD DIRECTOR 0 696531 0 0 0 414 0 12200 0 28704 0 737849 0 0 KIMBERLY DAY VP GENERAL COUNSEL 409583 0 0 0 68337 0 83260 0 27678 0 588858 0 52146 0 SCOTT NOTTINGHAM MD DIRECTOR 0 419778 0 0 0 250 0 12200 0 28240 0 460468 0 0 TAMIKA HARRIS VP FACILITIES & SUPPORT SERV 0 252549 0 0 0 30937 0 64041 0 35657 0 383184 0 17761 DENNIS RYAN UNTIL 070822 CFO & ASST. SECR./TREAS. 296651 0 0 0 51603 0 12179 0 19198 0 379631 0 35452 0 JOSEPH BLACK JR DIRECTOR RISK & REGULATORY 173314 0 6546 0 38497 0 7489 0 20098 0 245944 0 0 0 PART I, LINE 1A IN CONNECTION WITH A RETIREMENT PROGRAM, TAX GROSS-UP PAYMENTS ARE PROVIDED TO CERTAIN EMPLOYEES WHOSE EMPLOYER FUNDED CONTRIBUTIONS ARE IMMEDIATELY TAXABLE, IN ORDER TO PROVIDE THEM WITH BENEFITS THAT ARE TAX-EQUIVALENT TO BENEFITS OF PARTICIPANTS WHOSE CONTRIBUTIONS ARE NOT IMMEDIATELY TAXABLE. PART I, LINE 4B CHILDREN'S HEALTH SYSTEM SPONSORS TWO SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (THE PLANS). THE PLANS ARE DESIGNED TO RETAIN EXECUTIVES IN POSITIONS ESSENTIAL TO THE SUCCESS OF CHILDREN'S HEALTH SYSTEM. DURING THE YEAR, THE FOLLOWING INDIVIDUALS WERE PARTICIPANTS IN ONE OF THE SPONSORED SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS AND RECEIVED THE FOLLOWING ANNUAL ACTUARIAL INCREASE OR DEFERRED CONTRIBUTION (INCLUDED IN SCHEDULE J, PART II, COLUMN (C)) AND/OR PAYMENT (INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(III)). AMOUNTS REPORTED IN SCHEDULE J, PART II, COLUMN (B) III MAY DIFFER FROM AMOUNTS PAID DUE TO TIMING DIFFERENCES IN VESTING AND PAYMENTS. NAME: DENNIS RYAN ACT. INCREASE: $0 AMT. PAID: $0 NAME: AMY SAMPSON ACT. INCREASE: $230,294 AMT. PAID: $101,131 NAME: KATHRYN ABSHIRE ACT. INCREASE: $121,446 AMT. PAID: $32,987 NAME: DEBORAH BARNES ACT. INCREASE: $200,974 AMT. PAID: $147,204 NAME: TAMIKA HARRIS ACT. INCREASE: $33,103 AMT. PAID: $0 NAME: JOHN HARDING ACT. INCREASE: $315,725 AMT. PAID: $162,661 NAME: KIMBERLY DAY ACT. INCREASE: $71,060 AMT. PAID: $59,337 NAME: PAUL MORLOCK ACT. INCREASE: $0 AMT. PAID: $620,667 A VA SMALL BUSINESS FINANCING AUTHORITY 541300845 000000000 2015-12-01 100000000 FINANCING OF HEALTHCARE FACILITIES 0 0 0 A 4488987 51300000 51300000 2018 0 0 1 1 A 0 1 1 1 1 1 0.00330 0.00330 0 0 1 A 0 0 0 1 1 0 0 0 1 A 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: VA SMALL BUSINESS FINANCING AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 05/12/2021 PART II, LINE 10: CAPITAL EXPENDITURES FROM REQUISITIONED PROCEEDS CURRENTLY TOTAL $99,950,000, OF WHICH $51,300,000 WAS ALLOCATED TO CHILDREN'S HEALTH SYSTEM AND $48,650,000 WAS ALLOCATED TO CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS. PART III, LINE 4: WE HAVE CONCLUDED THAT OUT OF THE ACTIVITIES CONDUCTED IN THIS BOND FINANCED SPACE, WE HAVE NOTED THAT .33% OF THE SPACE WAS PRIVATE BUSINESS USE. THE REMAINING SPACE DID NOT RESULT IN PRIVATE BUSINESS USE DUE TO EQUITY PROVIDED OR A REGULATORY SAFE HARBOR. X SELLING PRICE 0 1 1 PART I, LINE 32B: CHILDREN'S HEALTH SYSTEM PAYS SYR, INC. MANAGEMENT FEES TO MANAGE THRIFT STORES FOR THE BENEFIT OF THE ORGANIZATION. PART I, LINE 33: CHILDREN'S HEALTH SYSTEM RECEIVED NON-CASH CONTRIBUTIONS DURING THE YEAR; HOWEVER THESE NON CASH CONTRIBUTIONS WERE NOT VALUED UNTIL THE ITEMS WERE SOLD IN THE THRIFT STORE. FORM 990, PART VI, SECTION A, LINE 6 CHILDREN'S HEALTH SYSTEM, INC. HAS TWO CLASSES OF MEMBERS: 1) CLASS A MEMBERS (I.E., THE THEN CURRENT MEMBERS IN GOOD STANDING OF THE NORFOLK CITY UNION OF THE KING'S DAUGHTERS, INC., A VIRGINIA NON-STOCK NOT-FOR-PROFIT CORPORATION); AND 2) CLASS B MEMBERS (I.E., THE THEN CURRENT DIRECTORS ON THE BOARD OF DIRECTORS OF CHILDREN'S HEALTH SYSTEM, INC.). FORM 990, PART VI, SECTION A, LINE 7A THE CLASS A MEMBERS OF CHILDREN'S HEALTH SYSTEM, INC. (I.E., THE THEN CURRENT MEMBERS IN GOOD STANDING OF THE NORFOLK CITY UNION OF THE KING'S DAUGHTERS, INC., A VIRGINIA NON-STOCK NOT-FOR-PROFIT CORPORATION) ELECT ONE THIRD OF THE ELECTED DIRECTORS OF CHILDREN'S HEALTH SYSTEM, INC. THE CLASS B MEMBERS OF CHILDREN'S HEALTH SYSTEM, INC. (I.E., THE THEN CURRENT DIRECTORS ON THE BOARD OF DIRECTORS OF CHILDREN'S HEALTH SYSTEM, INC.) ELECT TWO THIRDS OF THE ELECTED DIRECTORS OF CHILDREN'S HEALTH SYSTEM, INC. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING DECISIONS OF THE BOARD OF DIRECTORS OF CHILDREN'S HEALTH SYSTEM, INC. ARE SUBJECT TO APPROVAL BY THE CLASS A AND CLASS B MEMBERS OF CHILDREN'S HEALTH SYSTEM, INC.: 1) ANY AMENDMENTS TO THE ARTICLES OF INCORPORATION OF THE CORPORATION; AND 2) ANY PROPOSED MERGER OR CONSOLIDATION OF THE CORPORATION, OR ANY SALE, LEASE, EXCHANGE, MORTGAGE, PLEDGE OR OTHER DISPOSITION OF ALL, OR SUBSTANTIALLY ALL, OF THE PROPERTY AND ASSETS OF THE CORPORATION. FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM USING THE ANNUAL FINANCIAL STATEMENTS THAT ARE REVIEWED BY THE BOARD AND AUDITED ANNUALLY AS A PART OF THE CONSOLIDATED FINANCIAL STATEMENTS OF CHILDREN'S HEALTH SYSTEM, INC. UPON COMPLETION OF THE DRAFT OF THE RETURN, A DETAIL REVIEW IS PERFORMED BY SEVERAL MEMBERS OF STAFF AND MANAGEMENT. PRIOR TO FILING WITH THE IRS, THE BOARD IS PROVIDED A COPY TO REVIEW. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT POLICY CONSIDERATIONS CHS CONFLICT OF INTEREST POLICY INCLUDES OFFICERS, MEMBERS OF THE BOARD OF DIRECTORS AND BOARD COMMITTEES, KEY EMPLOYEES, ALL OTHER EMPLOYEES, PROFESSIONAL STAFF AND SUBSTANTIAL DONORS. ANNUALLY, A QUESTIONNAIRE IS DISTRIBUTED AND COLLECTED FROM OFFICERS, MEMBERS OF THE BOARD OF DIRECTORS AND BOARD COMMITTEES AND KEY EMPLOYEES. RESPONSES TO THE QUESTIONNAIRES ARE REVIEWED BY THE LEGAL AND FINANCE DEPARTMENTS. FOR KNOWN CONFLICTS, THE PERSON INVOLVED RECUSES HIMSELF OR HERSELF FROM DELIBERATIONS REGARDING THE TRANSACTION. VIOLATIONS OF THE CONFLICT OF INTEREST POLICY ARE REPORTED TO THE CHS BOARD CHAIR OR THE CHS COMPLIANCE OFFICER, AS APPLICABLE, AND MAY REQUIRE CORRECTIVE ACTION UP TO AND INCLUDING TERMINATION OF EMPLOYMENT. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION PROCESS CONSIDERATIONS AN INDEPENDENT COMPENSATION CONSULTANT APPROVED AND RETAINED BY THE COMPENSATION COMMITTEE OF THE BOARD ANNUALLY, USUALLY IN APRIL, PROVIDES EDUCATION AND PRESENTS TO THE FULL BOARD COMPARATIVE SALARIES AND SALARY RANGES FROM A DATABASE COMPRISED OF CHILDREN'S HOSPITALS AND OTHER APPLICABLE HOSPITALS FOR OFFICERS AND EXECUTIVES FOR THE BOARD TO REVIEW. THE COMPENSATION COMMITTEE WITH THE AID OF THE CONSULTANT REVIEWS AND MAKES DECISIONS AS TO EXECUTIVE SALARIES OF CHS AND ITS SUBSIDIARIES. THOSE SALARY CHANGES AND APPROVALS ARE CONTEMPORANEOUSLY DOCUMENTED BY MINUTES MAINTAINED BY THE COMPENSATION COMMITTEE AND SIGNED BY THE CHAIRMAN OF THE BOARD. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS (PART OF THE CONSOLIDATED FINANCIAL STATEMENTS OF CHILDREN'S HEALTH SYSTEM, INC.) ALONG WITH GOVERNING DOCUMENTS OF THE ORGANIZATION INCLUDING THE CONFLICT OF INTEREST POLICY ARE AVAILABLE TO THE PUBLIC THROUGH DIRECT INQUIRY AND REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN DERIVATIVE 2,299,406. CHANGE IN PENSION LIABILITY -2,105,323. CHKD THRIFT STORES LLC 601 CHILDRENS LANE NORFOLK VA 23507 THRIFT STORES VA 16998370 7753765 CHS INC CHILDREN'S REAL ESTATE 601 CHILDRENS LANE NORFOLK VA 23507 LESSOR VA 3261599 52724070 CHS INC CHILDREN'S RESEARCH HOLDINGS LLC 601 CHILDRENS LANE NORFOLK VA 23507 RESEARCH INV VA 0 5201883 CHS INC CHILDREN'S QUALITY CARE LLC 601 CHILDRENS LANE NORFOLK VA 23507 CIN VA 1589569 2323760 CHS INC CHILDREN'S PHARMACY SERVICES LLC 601 CHILDRENS LANE NORFOLK VA 23507 PHARMACY VA 0 279495 CHS INC CHILDREN'S HOSPITAL OF THE KING'S DAUGHT 601 CHILDRENS LANE NORFOLK VA 23507 540506321 HEALTHCARE VA 501(C)(3) 3 CHILDREN'S HEALTH SYSTEM 1 CHILDREN'S HEALTH FOUNDATION INC 601 CHILDRENS LANE NORFOLK VA 23507 541278865 SUPP CHKD VA 501(C)(3) 12A CHILDREN'S HEALTH SYSTEM 1 FORTIFY CHILDREN'S HEALTH LLC 1330 JEFFERSON PARK AVENUE CHARLOTTESVILLE VA 22903 831442745 HEALTHCARE VA N/A RELATED 226342 2687611 0 1 0.50000 REALTA HOLDINGS LLC 601 CHILDRENS LANE NORFOLK VA 23507 823954346 RESEARCH VA N/A RELATED 1540153 0 1 0.39170 CHILDREN'S SURGICAL SPECIALTY GROUP INC 601 CHILDRENS LANE NORFOLK VA 23507 311610834 HEALTHCARE VA N/A C 26058802 2427308 1.00000 1 CHILDREN'S MEDICAL GROUP INC 601 CHILDRENS LANE NORFOLK VA 23507 541778786 HEALTHCARE VA N/A C 93582316 50258391 1.00000 1 CMG OF NORTH CAROLINA INC 601 CHILDRENS LANE NORFOLK VA 23507 561960102 HEALTHCARE NC N/A C 3442120 814356 1.00000 1 1 1 1 1 0 0 0 0 0 1 0 1 1 1 1 1 1 1 0 CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS L 16514380 BOOK VALUE CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS D 1477218 BOOK VALUE CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS B 3300000 CASH CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS C 12300000 CASH CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS A 3261599 CASH CHILDREN'S SURGICAL SPECIALTY GROUP INC R 9992471 BOOK VALUE CHILDREN'S HOSPITAL OF THE KING'S DAUGHTERS M 593498 BOOK VALUE