Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | 5. INCOME TAXES The total amount of unrecognized benefit that would affect the effective tax rate, if recognized, was $46 million at June 30, 2026. A total of $10 million of interest and penalties is included in the amount of the liability for uncertain tax positions at June 30, 2026. It is the Company’s policy to recognize interest and penalties related to unrecognized benefits in its condensed consolidated statements of income as income tax expense. The Company’s income tax returns for the tax years are under examination by the Internal Revenue Service. The Company believes the result of this examination will not be material to its consolidated results of operations or consolidated financial position. The Company has extended the federal statute of limitations through March 31, 2028 for Community Health Systems, Inc. for the tax periods ended December 31, 2021 and 2022. The Company’s provision for income taxes was $76 million and $118 million for the three months ended June 30, 2026 and 2025, respectively, and $165 million and $160 million for the six months ended June 30, 2026 and 2025, respectively. The Company’s effective tax rates were 42.2% and 26.9% for the three months ended June 30, 2026 and 2025, respectively, and 67.6% and 31.7% for the six months ended June 30, 2026 and 2025, respectively. The decrease in the provision for income taxes and the change in the effective tax rate for the three months ended June 30, 2026, compared to the same period in 2025, was primarily due to a decrease in income before taxes, a decrease in non-deductible goodwill related to divested hospitals, and the tax effects of the federal budget reconciliation legislation which was enacted on July 4, 2025. The increase in the provision for income taxes and the change in the effective tax rate for the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to an increase in non-deductible goodwill related to divested hospitals, partially offset by a decrease in income before taxes and the tax effects of the aforementioned federal budget reconciliation legislation. Cash paid for income taxes, net of refunds received, resulted in a net payment of $61 million and $181 million during the three months ended June 30, 2026 and 2025, respectively, and $61 million and $101 million during the six months ended June 30, 2026 and 2025, respectively. Cash paid for taxes related to gains on divested hospitals was approximately $56 million and $74 million during the three and six months ended June 30, 2026 and 2025, respectively. During the three months ended June 30, 2026, the Company purchased $30 million of solar tax credits at a discounted amount of $28 million. Such solar tax credits are considered federal estimated income tax payments. The $2 million discount is recorded as a federal income tax benefit for the three months ended June 30, 2026. |