TENET HEALTHCARE CORP

For the period ended Jun 30, 2024. Filed Jul 30, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Jul 30, 2024

THC$289.00+2.0%Stored close · as of Nov 9, 2026

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Contents

Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

Dollars in Millions, Share Amounts in Thousands

	June 30,	December 31,
	2024	2023
ASSETS
Current assets:
Cash and cash equivalents	$2,880	$1,228
Accounts receivable	2,817	2,914
Inventories of supplies, at cost	382	411
Assets held for sale	21	775
Other current assets	1,855	1,839
Total current assets	7,955	7,167
Investments and other assets	3,156	3,157
Deferred income taxes	85	77
Property and equipment, at cost, less accumulated depreciation and amortization ($6,016 at June 30, 2024 and $6,478 at December 31, 2023)	5,857	6,236
Goodwill	10,799	10,307
Other intangible assets, at cost, less accumulated amortization ($1,331 at June 30, 2024 and $1,447 at December 31, 2023)	1,413	1,368
Total assets	$29,265	$28,312
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$102	$120
Accounts payable	1,270	1,408
Accrued compensation and benefits	788	930
Professional and general liability reserves	283	254
Accrued interest payable	149	200
Liabilities held for sale	11	69
Income tax payable	715	23
Other current liabilities	2,175	1,756
Total current liabilities	5,493	4,760
Long-term debt, net of current portion	12,769	14,882
Professional and general liability reserves	844	792
Defined benefit plan obligations	334	335
Deferred income taxes	245	326
Other long-term liabilities	1,711	1,709
Total liabilities	21,396	22,804
Commitments and contingencies
Redeemable noncontrolling interests in equity of consolidated subsidiaries	2,813	2,391
Equity:
Shareholders’ equity:
Common stock, $0.05 par value; authorized 262,500 shares; 157,930 shares issued at June 30, 2024 and 157,271 shares issued at December 31, 2023	8	8
Additional paid-in capital	4,840	4,834
Accumulated other comprehensive loss	(177)	(181)
Retained earnings (accumulated deficit)	2,218	(192)
Common stock in treasury, at cost, 62,111 shares at June 30, 2024 and 57,321 shares at December 31, 2023	(3,414)	(2,861)
Total shareholders’ equity	3,475	1,608
Noncontrolling interests	1,581	1,509
Total equity	5,056	3,117
Total liabilities and equity	$29,265	$28,312

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in Millions, Except Per-Share Amounts

	Three Months EndedJune 30,		Six Months EndedJune 30,
	2024	2023	2024	2023
Net operating revenues	$5,103	$5,082	$10,471	$10,103
Grant income	5	8	5	11
Equity in earnings of unconsolidated affiliates	61	54	120	104
Operating expenses:
Salaries, wages and benefits	2,168	2,285	4,489	4,543
Supplies	908	891	1,836	1,782
Other operating expenses, net	1,148	1,125	2,302	2,218
Depreciation and amortization	208	213	416	430
Impairment and restructuring charges, and acquisition-related costs	29	16	56	37
Litigation and investigation costs	5	10	9	14
Net gains on sales, consolidation and deconsolidation of facilities	(58)	—	(2,558)	(13)
Operating income	761	604	4,046	1,207
Interest expense	(203)	(226)	(421)	(447)
Other non-operating income, net	29	6	54	4
Loss from early extinguishment of debt	—	(11)	(8)	(11)
Income before income taxes	587	373	3,671	753
Income tax expense	(110)	(80)	(860)	(164)
Net income	477	293	2,811	589
Less: Net income available to noncontrolling interests	218	170	401	323
Net income available to Tenet Healthcare Corporation common shareholders	$259	$123	$2,410	$266
Earnings per share available to Tenet Healthcare Corporation common shareholders:
Basic earnings per share	$2.66	$1.21	$24.49	$2.61
Diluted earnings per share	$2.64	$1.15	$24.22	$2.47
Weighted average shares and dilutive securities outstanding (in thousands):
Basic	97,267	101,766	98,424	102,028
Diluted	98,444	104,778	99,557	105,354

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME

Dollars in Millions

	Three Months EndedJune 30,		Six Months EndedJune 30,
	2024	2023	2024	2023
Net income	$477	$293	$2,811	$589
Other comprehensive income:
Amortization of net actuarial loss included in other non-operating income, net	2	2	4	4
Foreign currency translation adjustments and other	—	—	1	—
Other comprehensive income before income taxes	2	2	5	4
Income tax expense related to items of other comprehensive income	—	(1)	(1)	(1)
Total other comprehensive income, net of tax	2	1	4	3
Comprehensive net income	479	294	2,815	592
Less: Comprehensive income available to noncontrolling interests	218	170	401	323
Comprehensive income available to Tenet Healthcare Corporation common shareholders	$261	$124	$2,414	$269

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in Millions

	Six Months Ended June 30,
	2024	2023
Net income	$2,811	$589
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	416	430
Deferred income tax expense (benefit)	(93)	37
Stock-based compensation expense	36	33
Impairment and restructuring charges, and acquisition-related costs	56	37
Litigation and investigation costs	9	14
Net gains on sales, consolidation and deconsolidation of facilities	(2,558)	(13)
Loss from early extinguishment of debt	8	11
Equity in earnings of unconsolidated affiliates, net of distributions received	(3)	7
Amortization of debt discount and debt issuance costs	14	18
Net gains from the sale of investments and long-lived assets	(1)	(15)
Other items, net	(3)	(3)
Changes in cash from operating assets and liabilities:
Accounts receivable	77	7
Inventories and other current assets	16	160
Income taxes	713	(31)
Accounts payable, accrued expenses and other current liabilities	(124)	(168)
Other long-term liabilities	23	12
Payments for restructuring charges, acquisition-related costs, and litigation costs and settlements	(64)	(78)
Net cash provided by operating activities	1,333	1,047
Cash flows from investing activities:
Purchases of property and equipment	(385)	(367)
Purchases of businesses or joint venture interests, net of cash acquired	(510)	(96)
Proceeds from sales of facilities and other assets	4,048	16
Proceeds from sales of marketable securities and long-term investments	17	26
Purchases of marketable securities and long-term investments	(26)	(37)
Other items, net	(10)	(9)
Net cash provided by (used in) investing activities	3,134	(467)
Cash flows from financing activities:
Repayments of borrowings	(2,179)	(1,437)
Proceeds from borrowings	8	1,362
Repurchases of common stock	(548)	(90)
Debt issuance costs	—	(15)
Distributions paid to noncontrolling interests	(323)	(270)
Proceeds from the sale of noncontrolling interests	10	30
Purchases of noncontrolling interests	(88)	(79)
Advances from managed care payers	342	—
Other items, net	(37)	(5)
Net cash used in financing activities	(2,815)	(504)
Net increase in cash and cash equivalents	1,652	76
Cash and cash equivalents at beginning of period	1,228	858
Cash and cash equivalents at end of period	$2,880	$934
Supplemental disclosures:
Interest paid, net of capitalized interest	$(459)	$(445)
Income tax payments, net	$(240)	$(158)

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