Company: THC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000070318-25-000046
Chunk: 133

Company: TENET HEALTHCARE CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 The inputs used to establish the fair value of the borrowings outstanding under the Credit Agreement are considered to be Level 2 inputs. At September 30, 2025 and December 31, 2024, the estimated fair value of our long‑term debt was approximately 100.1% and 97.8%, respectively, of the carrying value of the debt.

NOTE 16. ACQUISITIONS

We are required to allocate the purchase prices of acquired businesses to assets acquired or liabilities assumed and, if applicable, noncontrolling interests based on their fair values. The excess of the purchase price allocated over those fair values is recorded as goodwill. The purchase price allocations for certain acquisitions completed in 2025 and 2024 are preliminary. We are in the process of assessing working capital balances and lease and other agreements assumed, as well as obtaining and evaluating valuations of the acquired property and equipment, management contracts and other intangible assets, and noncontrolling interests. Therefore, those purchase price allocations, including goodwill, recorded in the accompanying Condensed Consolidated Financial Statements are subject to adjustment once the assessments and valuation work are completed and evaluated. Such adjustments will be recorded as soon as practical and within the measurement period as defined by the accounting literature.Preliminary purchase price allocations (representing the fair value of the consideration conveyed) for all acquisitions made during the nine months ended September 30, 2025 and 2024 were as follows:Nine Months Ended September 30,20252024Current assets$49 $67 Property and equipment39 60 Other intangible assets13 133 Goodwill477 847 Long-term operating lease assets86 101 Other long-term assets— 1 Previously held investments in unconsolidated affiliates(80)(34)Current liabilities(35)(55)Current portion of long-term lease liabilities(6)(14)Long-term operating lease liabilities(81)(12)Other long-term liabilities(12)(101)Redeemable noncontrolling interests in equity of consolidated subsidiaries(135)(393)Noncontrolling interests(70)(59)Cash paid, net of cash acquired(257)(514)Gains (losses) on consolidations$(12)$27 

20

The goodwill generated from our 2025 acquisitions, the majority of which we believe will not be deductible for income tax purposes, can be attributed to the benefits that we expect to realize from operating efficiencies and growth strategies. Goodwill recognized related to our acquisition activity during the nine