Company: THC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000070318-25-000009
Chunk: 44

Company: TENET HEALTHCARE CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 44
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 which primarily arose from the consolidation of facilities by our Ambulatory Care segment.

Interest Expense

Interest expense declined from $901 million in the year ended December 31, 2023 to $826 million in the year ended December 31, 2024. This decrease was primarily driven by the debt extinguishments described below.

Loss from Early Extinguishment of Debt

During the year ended December 31, 2024, we recorded losses of $8 million related to the redemption of our 2026 Senior Secured First Lien Notes in advance of the notes’ maturity date. This loss derived from the write-off of unamortized issuance costs associated with these notes.

We recorded losses from the early extinguishment of debt totaling $11 million during the year ended December 31, 2023. These losses related to the redemption of all of the outstanding principal of our 4.625% senior secured first lien notes due July 2024 and our 4.625% senior secured first lien notes due September 2024, in each case in advance of the notes’ maturity dates, and derived from differences between the redemption price and the par value of the respective notes, as well as the write‑off of associated unamortized issuance costs.

Income Tax Expense

During the year ended December 31, 2024, we recorded income tax expense of $1.184 billion on pre‑tax income of $5.248 billion compared to income tax expense of $306 million on pre‑tax income of $1.617 billion during the year ended December 31, 2023.

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Table of Contents

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:

 Years Ended December 31, 20242023Tax expense at statutory federal rate of 21%$1,102 $340 State income taxes, net of federal income tax benefit288 70 Tax benefit attributable to noncontrolling interests(181)(147)Nondeductible goodwill161 — Nondeductible executive compensation7 6 Impact of change in state filing method, net of change in unrecognized tax benefit— (20)Stock-based compensation tax benefit(9)(2)Changes in valuation allowance(182)71 Prior-year provision to return adjustments and other changes in deferred taxes(1)(9)Other items(1)(3)Income tax expense$1