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Income Taxes
6 Months Ended
Jun. 30, 2016
Income Taxes [Abstract]  
Income Taxes Disclosure







7.  INCOME TAXES 



The total amount of unrecognized benefit that would affect the effective tax rate, if recognized, was approximately $5 million as of June 30, 2016. A total of approximately $3 million of interest and penalties is included in the amount of the liability for uncertain tax positions at June 30, 2016. 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.



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 condensed consolidated financial position.





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 March 31, 2017 for Triad Hospitals, Inc. 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 2011. The Company’s federal income tax returns for the 2009 and 2010 tax years are currently under examination by the Internal Revenue Service. The Company believes the results of these examinations will not be material to its consolidated results of operations or consolidated financial position. The Company has extended the federal statute of limitations through December 31, 2016 for Community Health Systems, Inc. for the tax periods ended December 31, 2007, 2008, 2009 and 2010, and through March 31, 2017 for the tax periods ended December 31, 2011 and 2012.



The Company’s effective tax rates were 8.9% and 34.6% for the three months ended June 30, 2016 and 2015, respectively, and 7.6% and 34.0% for the six months ended June 30, 2016 and 2015, respectively. The decrease in the Company’s effective tax rate for the three and six months ended June 30, 2016, when compared to the three and six months ended June 30, 2015, was primarily due to the impairment of non-deductible goodwill and the nondeductible nature of certain costs incurred to complete the spin-off of QHC.



Cash paid for income taxes, net of refunds received, resulted in net cash paid of $4 million and $8 million during the three months ended June 30, 2016 and 2015, respectively, and net cash paid of $4 million and $9 million during the six months ended June 30, 2016 and 2015, respectively.