Company: THC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000070318-25-000039
Chunk: 95

Company: TENET HEALTHCARE CORP
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 95
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 of debt during the six months ended June 30, 2025. We incurred a loss of $8 million during the six months ended June 30, 2024 related to the redemption of our 4.875% senior secured first lien notes due 2026 in advance of their maturity date. This loss derived from the write-off of unamortized issuance costs associated with these notes.

Income Tax Expense

A reconciliation between the amount of reported income tax expense and the amount computed by multiplying income before income taxes by the statutory federal tax rate is presented below:

Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Tax expense at statutory federal rate of 21%$135 $123 $296 $771 State income taxes, net of federal income tax benefit25 22 55 225 Tax benefit attributable to noncontrolling interests(50)(46)(94)(84)Nondeductible goodwill— 2 — 128 Stock-based compensation tax benefit(1)(1)(5)(6)Changes in valuation allowance(5)7 (6)(178)Other items16 3 17 4 Income tax expense$120 $110 $263 $860 

We are currently evaluating the implications of the OBBBA, but 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 will be the three months ending September 30, 2025.

Income before income taxes for the three months ended June 30, 2025 and 2024 was $642 million and $587 million, respectively, and $1.407 billion and $3.671 billion for the six months ended June 30, 2025 and 2024, respectively. The decrease in our valuation allowance during the three months ended June 30, 2025 was related to interest expense limitations and changes in realizability of deferred tax assets. The decrease in our valuation allowance during the six months ended June 30, 2025 was related to interest expense limitations and changes in realizability of deferred tax assets. The increase in our valuation allowance during the three months ended June 30, 2024 was related to