XML 21 R13.htm IDEA: XBRL DOCUMENT v3.24.2
Income Taxes
 6 Months Ended
Jun. 30, 2024
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, 2024. A total of $3 million of interest and penalties is included in the amount of the liability for uncertain tax positions at June 30, 2024. It is the Company’s policy to recognize interest and penalties related to unrecognized benefits in its condensed consolidated statements of loss as income tax expense.

It is possible the amount of unrecognized tax benefit could change in the next 12 months as a result of a lapse of the statute of limitations and settlements with taxing authorities; however, the Company does not anticipate the change will have a material impact on the Company’s condensed consolidated results of operations or financial position.

The Company’s income tax return for the 2018 tax year remains 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 June 30, 2025 for Community Health Systems, Inc. for the tax period ended December 31, 2018.

The Company’s provision for income taxes was $24 million and $38 million for the three months ended June 30, 2024 and 2023, respectively, and $52 million and $65 million for the six months ended June 30, 2024 and 2023, respectively. The Company’s effective tax rates were 48.0% and 95.0% for the three months ended June 30, 2024 and 2023, respectively, and 72.2% and 138.3% for the six months ended June 30, 2024 and 2023, respectively. The decrease in the provision for income taxes and the difference in the Company’s effective tax rate for the three and six months ended June 30, 2024, compared to the same periods in 2023 was primarily due to a decrease in nondeductible goodwill in the current period compared to the prior period.

Cash paid for income taxes, net of refunds received, resulted in a net payment of $84 million during both the three and six months ended June 30, 2024, and $37 million during both the three and six months ended June 30, 2023.