Company: THC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000070318-25-000039
Chunk: 12

Company: TENET HEALTHCARE CORP
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 letter of credit facility (as amended to date, the “LC Facility”) that provides for the issuance, from time to time, of standby and documentary letters of credit in an aggregate principal amount of up to $200 million. At June 30, 2025, we had $106 million of standby letters of credit outstanding under the LC Facility.

NOTE 6. GUARANTEES

At June 30, 2025, the maximum potential amount of future payments under our income guarantees to certain physicians who agree to relocate and revenue collection guarantees to hospital‑based physician groups providing certain services at our hospitals was $151 million. We had a total liability of $130 million recorded for these guarantees included in other current liabilities in the accompanying Condensed Consolidated Balance Sheet at June 30, 2025.At June 30, 2025, we also had issued guarantees of the indebtedness and other obligations of our investees to third parties, the maximum potential amount of future payments under which was approximately $62 million.

NOTE 7. EMPLOYEE BENEFIT PLANS

The accompanying Condensed Consolidated Statements of Operations for the six months ended June 30, 2025 and 2024 include $41 million and $36 million, respectively, of pre-tax compensation costs related to our stock‑based compensation arrangements.

10

Stock OptionsAs of June 30, 2025, there were 186,497 stock options outstanding under our share-based compensation plans, which had a weighted average exercise price per share of $23.76. There was no activity related to our stock options during the six months ended June 30, 2025. During the six months ended June 30, 2024, 155,943 stock options were exercised with an aggregate intrinsic value of $13 million. Other than the exercise of these options, there was no activity related to our stock options during the six months ended June 30, 2024. All outstanding options were vested and exercisable at June 30, 2025, and the options collectively had an aggregate intrinsic value of $28 million.Restricted Stock UnitsThe following table presents information about our restricted stock unit (“RSU”) activity during the six months ended June 30, 2025:Number of RSUsWeighted AverageGrant Date Fair Value Per RSUUnvested at December 31, 20241,481,999 $83.84 Granted596,