Schedule K
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Information on Tax Exempt Bonds
SchKMediumBullet Complete if the organization answered "Yes" to Form 990, Part IV, line 24a. Provide descriptions,
explanations, and any additional information in Part VI.
SchKMediumBullet Attach to Form 990.
SchKMediumBulletInformation about Schedule K (Form 990) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2015
Open to Public
Inspection
Name of the organization
Banner Health
 
Employer identification number
45-0233470
Part I
Bond Issues
(a) Issuer name (b) Issuer EIN (c) CUSIP # (d) Date issued (e) Issue price (f) Description of purpose (g) Defeased (h) On
behalf of
issuer		 (i) Pool
financing
Yes No Yes No Yes No
A ARIZONA HEALTH FACILITIES AUTHORITY
  		86-0453292 040507HMO 05-10-2007 600,002,793 SERIES 2007A-B - SEE PART VI X     X   X
B ARIZONA HEALTH FACILITIES AUTHORITY
  		86-0453292 040507HN8 04-30-2008 226,464,588 SERIES 2008A - SEE PART VI   X   X   X
C ARIZONA HEALTH FACILITIES AUTHORITY
  		86-0453292 040507JY2 06-19-2008 197,500,000 SERIES 2008B-C - SEE PART VI   X   X   X
D ARIZONA HEALTH FACILITIES AUTHORITY
  		86-0453292 040507KYO 08-28-2008 915,742,826 SERIES 2008D - SEE PART VI   X   X   X
Part II
Proceeds
A B C D
1 Amount of bonds retired .................. 65,460,000 20,120,000 24,750,000 114,300,000
2 Amount of bonds legally defeased .............. 103,555,000 0 0 67,190,000
3 Total proceeds of issue .................. 654,681,003 226,464,588 197,500,000 919,855,595
4 Gross proceeds in reserve funds ............. 0 0 0 0
5 Capitalized interest from proceeds ............. 0 0 0 0
6 Proceeds in refunding escrows ............... 0 0 0 0
7 Issuance costs from proceeds ............... 3,221,064 1,836,731 2,489,789 5,438,540
8 Credit enhancement from proceeds ............. 0 0 100,211 0
9 Working capital expenditures from proceeds ............. 0 0 0 0
10 Capital expenditures from proceeds ............. 651,459,939 0 0 570,992,055
11 Other spent proceeds ............. 0 224,627,857 194,910,000 339,312,231
12 Other unspent proceeds ............. 0 0 0 0
13 Year of substantial completion ............. 2009 2009 2009 2011
Yes No Yes No Yes No Yes No
14 Were the bonds issued as part of a current refunding issue? ....   X X   X   X  
15 Were the bonds issued as part of an advance refunding issue? .....   X   X   X   X
16 Has the final allocation of proceeds been made? .......... X   X   X   X  
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? .................. X   X   X   X  
Part III
Private Business Use
A B C D
Yes No Yes No Yes No Yes No
1 Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds? .............   X   X   X   X
2 Are there any lease arrangements that may result in private business use of bond-financed property? ............... X   X   X   X  
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50193E
Schedule K (Form 990) 2015
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Schedule K (Form 990) 2015
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Part III
Private Business Use (Continued)
A B C D
Yes No Yes No Yes No Yes No
3a Are there any management or service contracts that may result in private business use of bond-financed property? ............. X   X   X   X  
b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? X   X   X   X  
c Are there any research agreements that may result in private business use of bond-financed property? ............. X   X   X   X  
d If "Yes" to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? X   X   X   X  
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government ....SchKMediumBullet 0.490 % 0.830 % 1.260 % 0.830 %
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government ......... SchKMediumBullet        
6 Total of lines 4 and 5 ............. 0.490 % 0.830 % 1.260 % 0.830 %
7 Does the bond issue meet the private security or payment test? ...   X   X   X   X
8a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?.............   X   X   X   X
b If "Yes" to line 8a, enter the percentage of bond-financed property sold or disposed of. ..        
c If "Yes" to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? .............   X   X   X   X
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under
Regulations sections 1.141-12 and 1.145-2? ........ 		X   X   X   X  
Part IV
Arbitrage
A B C D
Yes No Yes No Yes No Yes No
1 Has the issuer filed Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate? ...   X   X   X   X
2 If "No" to line 1, did the following apply? ....
a Rebate not due yet? .......   X   X   X   X
b Exception to rebate? ........   X X     X   X
c No rebate due? ......... X     X X   X  
If "Yes" to line 2c, provide in Part VI the date the rebate
computation was performed ......
3 Is the bond issue a variable rate issue? ..... X     X   X   X
4a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue? X     X X     X
b Name of provider .......... MORGAN STANLEY
  		0
  		MORGAN STANLEY
  		0
 
c Term of hedge ......... 2967 %   2665 %  
d Was the hedge superintegrated? ...... X         X    
e Was the hedge terminated? ........   X       X    
Schedule K (Form 990) 2015
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Schedule K (Form 990) 2015
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Part IV
Arbitrage (Continued)
A B C D
Yes No Yes No Yes No Yes No
5a Were gross proceeds invested in a guaranteed investment contract (GIC)? X     X   X   X
b Name of provider .......... MORGAN STANLEY
  		0
  		0
  		0
 
c Term of GIC ......... 3 %      
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? ........ X              
6 Were any gross proceeds invested beyond an available temporary period?   X   X   X   X
7 Has the organization established written procedures to monitor the requirements of section 148? ... X   X   X   X  
Part V
Procedures To Undertake Corrective Action
A B C D
Yes No Yes No Yes No Yes No
Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations? X   X   X   X  
Part VI
Supplemental Information. Provide additional information for responses to questions on Schedule K (see instructions).
Return Reference Explanation
SCHEDULE K, PART I, COLUMN (F) 2007A-B: THE BONDS WERE ISSUED TO: (1) FINANCE A PORTION OF THE COSTS OF ACQUISITION, CONSTRUCTION, RENOVATION, INSTALLATION AND EQUIPPING OF THE VARIOUS PROJECTS, INCLUDING THE REIMBURSEMENT OF CERTAIN PRIOR CAPITAL EXPENDITURES PAID BY BANNER HEALTH; (2) REFUND AND REDEEM ON A CURRENT BASIS A PORTION OF BANNER HEALTH'S OUTSTANDING COMMERCIAL PAPER NOTES;(3) PAY CERTAIN LEGAL, ACCOUNTING AND FINANCING COSTS, INCLUDING UNDERWRITERS' DISCOUNT, INCURRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AND (4) PAY PREMIUMS FOR MUNICIPAL BONDS INSURANCE POLICIES TO SECURE PAYMENT OF DEBT SERVICE ON THE BONDS. 2008A: THE BONDS WERE ISSUED TO: (1) REFINANCE PRIOR BONDS ISSUED ON MAY 12, 2005, INCLUDING INTEREST ACCRUED THEREON; AND (2) PAY CERTAIN LEGAL, ACCOUNTING AND FINANCING COSTS, INCLUDING UNDERWRITERS' DISCOUNT. 2008B-C: THE BONDS WERE ISSUED TO: (1) REFINANCE PRIOR BONDS ISSUED ON MAY 12, 2005; (2) PAY CERTAIN LEGAL, ACCOUNTING AND FINANCING COSTS, INCLUDING UNDERWRITERS' DISCOUNT, INCURRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AND (3) PAY FEES AND EXPENSES WITH RESPECT TO THE LETTER OF CREDIT. 2008D: THE BONDS WERE ISSUED, TOGETHER WITH OTHER AVAILABLE MONEYS OF BANNER HEALTH, TO: (1) FINANCE A PORTION OF THE COSTS OF ACQUISITION, CONSTRUCTION, RENOVATION, INSTALLATION AND EQUIPPING OF PROJECTS, INCLUDING REIMBURSEMENT OF CERTAIN PRIOR CAPITAL EXPENDITURES PAID BY BANNER HEALTH; (2) FINANCE THE COSTS OF THE SUN HEALTH ACQUISITION; (3)CURRENTLY REFUND $50,700,000 OUTSTANDING PRINCIPAL AMOUNT OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF MESA, ARIZONA, VARIABLE RATE REVENUE BONDS (DISCOVERY HEALTH SYSTEM), SERIES 1999B; (4) CURRENTLY REFUND $73,225,000 OUTSTANDING PRINCIPAL AMOUNT OF THE AUTHORITY'S REVENUE BONDS (BANNER HEALTH SYSTEM), SERIES 2002A; (5) CURRENTLY REFUND $73,175,000 OUTSTANDING PRINCIPAL AMOUNT OF THE AUTHORITY'S REVENUE BONDS(BANNER HEALTH SYSTEM), SERIES 2002B; (6) CURRENTLY REFUND $146,325,000 OUTSTANDING PRINCIPAL AMOUNT OF THE AUTHORITY'S REVENUE BONDS (BANNER HEALTH SYSTEM), SERIES 2002C; AND (7) PAY CERTAIN LEGAL, ACCOUNTING AND FINANCING COSTS, INCLUDING UNDERWRITER'S DISCOUNT, INCURRED IN CONNECTIONWITH THE ISSUANCE OF THE BONDS. 2008E-H: THE BONDS WERE ISSUED TO: (1) REFINANCE THE OUTSTANDING PRINCIPAL AMOUNT OF THE AUTHORITY'S $396,995,000 REVENUE BONDS (BANNER HEALTH) SERIES 2005A; (2) PAY CERTAIN LEGAL, ACCOUNTING AND FINANCING COSTS, INCLUDING UNDERWRITERS' DISCOUNT, INCURRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AND (3) PAY FEES AND EXPENSES WITH RESPECT TO THE LETTER OF CREDIT. 2012A: THE BONDS WERE ISSUED TO: (1) FINANCE THE CONSTRUCTION OF A NEW TOWER, A FIVE-STORY PARKING STRUCTURE FOR VISITORS, A THREE-STORY PARKING STRUCTURE FOR STAFF, A TWO-STORY WING TO ACCOMMODATE ADDITIONAL CARDIAC CATHETERIZATION, ENDOSCOPY AND OTHER PROCEDURES AND PROVIDE SPACE FOR A NICU AND EXPANDED WOMEN'S AND INFANTS SERVICES, AND EXPANSION OF THE OPERATING ROOMS AND THE EMERGENCY DEPARTMENT AT BANNER ESTRELLA MEDICAL CENTER ("BANNER ESTRELLA") AND (2) FINANCE THE DESIGN AND BUILD-OUT OF TWO SHELLED FLOORS AT BANNER BAYWOOD MEDICAL CENTER ("BANNER BAYWOOD"), TO ADD 56 PRIVATE PATIENT ROOMS AND TO CONVERT EXISTING SEMI- PRIVATE BEDS TO PRIVATE BEDS. 2014A: THE PROCEEDS OF THE BONDS ARE BEING USED: (1) TO FINANCE AND REFINANCE THE COSTS OF THE ACQUISITION AND THE COST OF CAPITAL IMPROVEMENTS OF BANNER CASA GRANDE, AN ACUTE CARE COMMUNITY HOSPITAL, (2) TO FINANCE THE CONSTRUCTION, IMPROVEMENT, RENOVATION AND EQUIPPING OF THE NEW BANNER FORT COLLINS MEDICAL CENTER, AND (3) TO FINANCE THE CONSTRUCTION, IMPROVEMENT, RENOVATION AND EQUIPPING OF THE BANNER M.D. ANDERSON CANCER CENTER. 2015A: THE BONDS WERE USED TO: (1) ADVANCE REFUND THE PORTION OF THE AUTHORITYS REVENUE BONDS (BANNER HEALTH), SERIES 2007A MATURING ON JANUARY 1 IN THE YEARS 2018 THROUGH 2025; AND (2) PAY CERTAIN LEGAL, ACCOUNTING AND FINANCING COSTS, INCLUDING UNDERWRITERS DISCOUNT, INCURRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS (THE "COST OF ISSUANCE"). 2015B-D: THE PROCEEDS OF THE BONDS ARE BEING USED FOR: (1) REFINANCE A PORTION OF THE OUTSTANDING PRINCIPAL AMOUNT OF A TAXABLE TERM LOAN TO THE BANNER HEALTH FROM MIZUHO BANK LTD. THE PROCEEDS OF THE LOAN WERE USED TO ACQUIRE A PORTION OF THE ASSETS OF THE UNIVERSITY OF ARIZONA HEALTH NETWORK, INC.; (2) REFINANCE A PORTION OF THE OUTSTANDING PRINCIPLE
SCHEDULE K, PART II, LINE 1, COLUMN (D) 2008D: AN INTERIM REBATE CALCULATION WAS COMPLETED AS OF 10/18/2014 WITH NO REBATE LIABILITY DUE. $67,190,000 THAT WAS REFUNDED BY THE 2012B TAXABLE ISSUE. SCHEDULE K, PART II, LINE 3 DIFFERENCE BETWEEN ISSUE PRICE AND TOTAL PROCEEDS 2007A-B & 2012A: THE TOTAL PROCEEDS OF THE ISSUE EXCEED THE ISSUE PRICE BY THE INVESTMENT EARNINGS EARNED. SCHEDULE K, PART II, LINE 11 WHERE AMOUNTS ARE PRESENT HERE, THE OTHER SPENT PROCEEDS OF THE ISSUE ARE THE CURRENT REFUNDING PROCEEDS. SCHEDULE K, PART IV, LINE 2(C) 2007A-B: A REBATE CALCULATION WAS COMPLETED AS OF 5/10/2015 WITH NO REBATE LIABILITY DUE. 2008D: A REBATE CALCULATION WAS COMPLETED AS OF 8/28/2015 WITH NO REBATE LIABILITY DUE. 2008E-H: A REBATE CALCULATION WAS PERFORMED AS OF 9/18/2015 WITH NO REBATE LIABILITY DUE. 2012A: A REBATE CALCULATION WAS COMPLETED AS OF 11/5/2015 WITH NO REBATE LIABILITY DUE. 2014A: A REBATE CALCULATION WAS COMPLETED AS OF 10/22/2015 WITH NO REBATE LIABILITY DUE. 2014A: A REBATE CALCULATION WAS COMPLETED AS OF 10/22/2015 WITH NO REBATE LIABILITY DUE.
Schedule K (Form 990) 2015

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