Company: THC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000070318-25-000046
Chunk: 99

Company: TENET HEALTHCARE CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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 multiplying income before income taxes by the statutory federal tax rate is presented below:

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Tax expense at statutory federal rate of 21%$149 $194 $445 $965 State income taxes, net of federal income tax benefit23 66 78 291 Tax benefit attributable to noncontrolling interests(50)(44)(144)(128)Nondeductible goodwill— 33 — 161 Stock-based compensation tax benefit(1)(1)(6)(7)Changes in valuation allowance6 2 — (176)Other items6 (9)23 (5)Income tax expense$133 $241 $396 $1,101 

The enactment of the OBBBA resulted in significant changes to the U.S. federal tax code. We do not believe it will have a material impact on current year tax expense. Taxable income and current tax liability will be reduced due to the reinstatement of 100% bonus depreciation and changes to business interest deduction limitations. Under section 740 of the Accounting Standards Codification, the effects of the tax law changes are recognized in the period of enactment, which is the three months ending September 30, 2025.

Income before income taxes for the three months ended September 30, 2025 and 2024 was $712 million and $922 million, respectively, and $2.119 billion and $4.593 billion for the nine months ended September 30, 2025 and 2024, respectively. The change in our valuation allowance during the three months ended September 30, 2025 was related to state interest expense limitations and changes in the realizability of deferred tax assets. The change in our valuation allowance during the nine months ended September 30, 2025 was related to state interest expense limitations and changes in the realizability of deferred tax assets. The increase in our valuation allowance during the three months ended September 30, 2024 was related to state interest limitations and the utilization of interest expense carryforwards. The decrease in our valuation allowance during the nine months ended September 30, 2024 was primarily related to the utilization of interest expense carryforwards primarily due to gains from sales of facilities and state interest limitations.

Net Income Available to Noncontrolling Interests

The table below presents net income available to noncontrolling interests by segment for the periods indicated:

Three