XML 34 R18.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense (benefit) is comprised of the following (in millions):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  | 3.1 |  |  | 1.4 |  |  | 1.5 |
Deferred: |  |  |  |  |  |
Federal |  | 114.6 |  |  | (1.5) |  |  | 17.5 |
State |  | 16.9 |  |  | (0.2) |  |  | 4.3 |
Total income tax expense (benefit) |  | $ | 134.6 |  |  | $ | (0.3) |  |  | $ | 23.3 |
A reconciliation of the provision for income taxes as reported in the consolidated statements of operations and the amount of income tax expense (benefit) computed by multiplying consolidated income (loss) in each year by the U.S. federal statutory rate of 21% follows (in millions):
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Tax expense at U.S. federal statutory rate |  | $ | 30.8 |  |  | $ | 28.4 |  |  | $ | 23.2 |
State income tax, net of U.S. federal tax benefit |  | 19.9 |  |  | 0.9 |  |  | 6.0 |
Change in federal valuation allowance |  | 115.4 |  |  | 21.5 |  |  | 29.1 |
Net income attributable to non-controlling interests |  | (41.5) |  |  | (30.9) |  |  | (30.2) |
Stock option compensation |  | 5.5 |  |  | 0.1 |  |  | (2.5) |
Differences related to divested facilities |  | (3.3) |  |  | (18.9) |  |  | (1.4) |
Tax return reconciling differences |  | 8.0 |  |  | (1.0) |  |  | (1.0) |
Change in effective tax rate |  | — |  |  | — |  |  | (0.5) |
Tax receivable agreement liability |  | — |  |  | — |  |  | 0.4 |
Other |  | (0.2) |  |  | (0.4) |  |  | 0.2 |
Total income tax expense (benefit) |  | $ | 134.6 |  |  | $ | (0.3) |  |  | $ | 23.3 |
The components of temporary differences and the approximate tax effects that give rise to the Company’s net deferred tax balance are as follows (in millions):
|  | December 31,
|  | 2024 |  | 2023
Deferred tax assets: |  |  |  |
Medical malpractice liability |  | $ | 3.8 |  |  | $ | 3.6 |
Accrued vacation and incentive compensation |  | 0.2 |  |  | 3.0 |
Net operating loss carryforwards |  | 142.9 |  |  | 143.6 |
Allowance for bad debts |  | 1.1 |  |  | 1.2 |
Capital loss carryforwards |  | 3.3 |  |  | 1.8 |
Deferred financing costs |  | — |  |  | 3.3 |
Section 163(j) interest |  | 191.6 |  |  | 162.3 |
Interest rate derivative liability |  | 2.5 |  |  | 4.7 |
Right of use liability |  | 46.2 |  |  | 47.2 |
Software development costs |  | 2.1 |  |  | 1.7 |
Other deferred assets |  | 9.9 |  |  | 9.6 |
Total gross deferred tax assets |  | 403.6 |  |  | 382.0 |
Less: Valuation allowance |  | (284.7) |  |  | (150.1) |
Total deferred tax assets |  | 118.9 |  |  | 231.9 |
Deferred tax liabilities: |  |  |  |
Depreciation on property and equipment |  | (1.3) |  |  | (3.0) |
Basis differences of partnerships and joint ventures |  | (106.7) |  |  | (84.2) |
Right of use asset |  | (36.8) |  |  | (35.6) |
Deferred financing costs |  | (5.3) |  |  | — |
Amortization of intangible assets |  | (3.1) |  |  | (3.0) |
Interest rate derivative asset |  | (2.9) |  |  | (15.1) |
Other deferred liabilities |  | (2.0) |  |  | (1.5) |
Total deferred tax liabilities |  | (158.1) |  |  | (142.4) |
Net deferred tax (liabilities) assets |  | $ | (39.2) |  |  | $ | 89.5 |
The Company had federal NOL carryforwards of $529.0 million as of December 31, 2024, of which $434.3 million expire between 2030 and 2037. The remaining federal NOL carryforwards, which were generated after 2017, do not expire. The Company had state NOL carryforwards of $630.7 million as of December 31, 2024, which expire between 2025 and 2043. The Company had federal Section 163(j) interest limitation carryforwards of $792.1 million as of December 31, 2024, which do not expire. The Company recorded a valuation allowance against deferred tax assets at December 31, 2024 and 2023 totaling $284.7 million and $150.1 million, respectively, which represents an increase of $134.6 million. As of December 31, 2024, the Company was in a cumulative three-year pre-tax loss position and primarily due to this negative factor increased its valuation allowance during the year ended December 31, 2024. The Company, or one or more of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations for years prior to 2021 or state income tax examinations for years prior to 2020. The Company made income tax payments of $1.6 million, $1.4 million and $1.8 million for the years ended December 31, 2024, 2023 and 2022, respectively. In each of these periods the income tax payments related to states in which the Company does not have a NOL to offset taxable income. During the years ended December 31, 2024, 2023 and 2022, the Company made no federal income tax payments due to utilization of its NOL carryforwards. A reconciliation of the beginning and ending liability for gross unrecognized tax benefits for the years ended December 31, 2024 and 2023 is as follows (in millions):
|  | December 31,
|  | 2024 |  | 2023
Unrecognized tax benefits at beginning of year |  | $ | — |  |  | $ | 0.1 |
Additions for tax provisions of the current year |  | — |  |  | — |
Additions for acquired positions |  | — |  |  | — |
Additions for tax positions of prior years |  | — |  |  | — |
Reductions for tax positions of prior years |  | — |  |  | (0.1) |
Reductions for statute of limitations expirations |  | — |  |  | — |
Unrecognized tax benefits at end of year |  | $ | — |  |  | $ | — |
The Company recognizes interest and penalties related to uncertain tax positions in its provision for income taxes in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company had no accrued interest and penalties related to uncertain tax positions.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration