Community Health Systems 2015 Annual Report Download - page 135

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
is included in the amount of the liability for uncertain tax positions at December 31, 2015. It is the Company’s
policy to recognize interest and penalties related to unrecognized benefits in its 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 consolidated results of operations or consolidated
financial position.
The following is a tabular reconciliation of the total amount of unrecognized tax benefit for the years ended
December 31, 2015, 2014 and 2013 (in millions):
Year Ended December 31,
2015 2014 2013
Unrecognized tax benefit, beginning of year ............. $ 16 $ - $ 1
Gross increases — assumed liability of acquired entity ..... - 26 -
Reductions — tax positions in prior period .............. - (8) -
Lapse of statute of limitations ......................... (1) (1) -
Settlements ....................................... - (1) (1)
Unrecognized tax benefit, end of year .................. $ 15 $ 16 $ -
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,
2016 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 September 6, 2016 for the tax period ended December 31, 2011.
Cash paid for income taxes, net of refunds received, resulted in net cash paid of $12 million and $73 million
during the years ended December 31, 2015 and 2013, respectively, and a net cash refund of $180 million during
the year ended December 31, 2014.
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