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Income Taxes
9 Months Ended
Sep. 30, 2013
Income Taxes [Abstract]  
Income Taxes Disclosure

 

 

6.  INCOME TAXES 

 

The total amount of unrecognized benefit that would affect the effective tax rate, if recognized, was approximately $0.5 million as of September 30, 2013.  A total of approximately $0.4 million of interest and penalties is included in the amount of the liability for uncertain tax positions at September 30, 2013.  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.  During the nine months ended September 30, 2013, the Company decreased liabilities for uncertain tax positions by $0.4 million. 

 

The Company, or one of its subsidiaries, files income tax returns in the United States federal jurisdiction and various state jurisdictions.  The Company has extended the federal statute of limitations through December 31, 2013 for Triad Hospitals, Inc. (“Triad”) for the tax periods ended December 31, 1999, December 31, 2000, April 30, 2001, June 30, 2001, December 31, 2001, December 31, 2002, December 31, 2003, December 31, 2004, December 31, 2005, December 31, 2006 and July 25, 2007.  With few exceptions, the Company is no longer subject to state income tax examinations for years prior to 2009.  The Company’s federal income tax returns for the 2009 and 2010 tax years are currently under examination by the Internal Revenue Service (“IRS”).  The Company believes the results of these examinations will not be material to its consolidated results of operations or consolidated financial position.  During the three months ended June 30, 2013, the IRS concluded its examination of the federal tax return of Community Health Systems, Inc. for the tax periods ended December 31, 2007 and 2008.  The results of these examinations did not have a material effect on the Company’s consolidated results of operations or consolidated financial position.  The Company has extended the federal statute of limitations through April 30, 2014 for Community Health Systems, Inc. for the tax periods ended December 31, 2007 and 2008, and through July 18, 2014 for the tax period ended December 31, 2009.

 

Cash paid for income taxes, net of refunds received, resulted in net cash paid of $2.1 million and $33.4 million for the three months ended September 30, 2013 and 2012, respectively, and $72.5 million and $55.4 million during the nine months ended September 30, 2013 and 2012, respectively.