Income Taxes |
9 Months Ended |
|---|---|
Sep. 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 $47 million at September 30, 2026. A total of $11 million of interest and penalties is included in the amount of the liability for uncertain tax positions at September 30, 2026. It is the Company’s policy to recognize interest and penalties related to unrecognized benefits in its condensed consolidated statements of (loss) 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 benefit from income taxes was $(3) million and $(173) million for the three months ended September 30, 2026 and 2025, respectively. The Company’s provision for (benefit from) income taxes was $163 million and $(13) million for the nine months ended September 30, 2026 and 2025, respectively. The Company’s effective tax rates were 5.7% and 8,650.0% for the three months ended September 30, 2026 and 2025, respectively, and 85.3% and (2.6)% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in the benefit from income taxes for the three months ended September 30, 2026, the increase in the provision for income taxes for the nine months ended September 30, 2026, and the change in the effective tax rates for the three and nine months ended September 30, 2026, compared to the same periods in 2025, was primarily due to recognition of the tax effects of the federal budget reconciliation legislation during the three months ended September 30, 2025. More specifically, a decrease in valuation allowances stemming from increased interest deductibility and increased bonus depreciation resulted in an income tax benefit of approximately $163 million during the three months ended September 30, 2025, which did not recur during the three or nine months ended September 30, 2026. Cash paid for taxes, net of refunds received, resulted in a net payment of $15 million and $91 million during the three months ended September 30, 2026 and 2025, respectively, and $76 million and $192 million during the nine months ended September 30, 2026 and 2025, respectively. Cash paid for taxes related to gains on divested hospitals was approximately $14 million and $52 million during the three months ended September 30, 2026 and 2025, respectively, and $70 million and $126 million during the nine months ended September 30, 2026 and 2025, respectively. During the nine months ended September 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 nine months ended September 30, 2026. |