Company: THC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000070318-25-000017
Chunk: 19

Company: TENET HEALTHCARE CORP
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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776 $2,727  Three Months Ended March 31, 20252024Hospital Operations$27 $21 Ambulatory Care94 80 Net income available to redeemable noncontrolling interests$121 $101 In June 2022, we entered into a share purchase agreement to acquire the 5% ownership interest then-held by Baylor University Medical Center in USPI for $406 million. Under the share purchase agreement, we are obligated to make non-interest-bearing monthly payments of approximately $11 million through June 2025. At March 31, 2025 and December 31, 2024, the remaining obligation under the share purchase agreement of $34 million and $68 million, respectively, was classified as a current liability and included in other current liabilities in the accompanying Condensed Consolidated Balance Sheets.

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NOTE 13. INCOME TAXES

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 Ended March 31,20252024Tax expense at statutory federal rate of 21%$161 $648 State income taxes, net of federal income tax benefit30 203 Tax benefit attributable to noncontrolling interests(44)(38)Nondeductible goodwill— 126 Stock-based compensation tax deficiency(4)(5)Changes in valuation allowance(1)(185)Other items1 1 Income tax expense$143 $750 Income before income taxes for the three months ended March 31, 2025 and 2024 was $765 million and $3.084 billion, respectively. Our provision for income taxes during interim reporting periods is calculated by applying an estimate of the annual effective tax rate to “ordinary” income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. In calculating “ordinary” income, non‑taxable income available to noncontrolling interests was deducted from pre-tax income. During the three months ended March 31, 2025, we recorded an income tax benefit of $1 million to decrease the valuation allowance, including an increase of $3 million related to interest expense carryforwards and a decrease of $4 million related to a change in realizability of deferred tax assets. During the three months ended March 31, 2024, we recorded an income tax benefit of $185 million to