Loretto Hospital

“Hospital and the Foundation are not-for-profit corporations as described in Section 501(c)(3) of the Internal Revenue Code (the Code) and are exempt from federal income taxes on related income pursuant to Section 501(a) of the Code. Westside does not consider itself to be engaged in a United States trade or business and therefore, is not considered subject to United States income taxes. If Westside should be considered to be engaged in a United States trade or business, it could be subject to federal income tax, federal alternative minimum tax, and branch profits tax. Under the Cayman Islands Tax Concessions Law, the Governor in Cabinet issued an undertaking to Westside on September 13, 1994 exempting it from all local income, profit, or capital gains taxes. The undertaking has been issued for a period of 20 years and, at the present time, no such taxes are levied in the Cayman Islands. Accordingly, no provisions for taxes are made in these financials. The Hospital applies the provisions of ASC Topic 740 to evaluate uncertain tax positions. This guidance creates a single model to address uncertain income tax positions and clarifies the accounting for income taxes by prescribing a more-likely-than-not minimum recognition threshold that a tax position is required to meet before recognized in the financial statements. Under the requirement of ASC Topic 740, tax exempt organizations may be required to record an obligation as the result of a tax position they have historically taken on various tax exposure items. A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Due to its tax-exempt status, the Hospital is not generally subject to U.S. federal income tax or state income tax. The Hospital's Form 990 has not been subject to examination by the Internal Revenue Service or the state of Illinois for the last three years. The Hospital does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months. The Hospital recognizes interest and/or penalties related to income tax matters in income tax expense. The Hospital did not have any amounts accrued for interest and penalties at June 30, 2016 and 2015.”

“Provisions for Bad Debt - 5317887”

“Provisions for Bad Debt - 5317887”