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Condensed Consolidating Financial Information
 6 Months Ended
Jun. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” Each of the subsidiary guarantors is 100% owned by HealthSouth, and all guarantees are full and unconditional and joint and several, subject to certain customary conditions for release. HealthSouth’s investments in its consolidated subsidiaries, as well as guarantor subsidiaries’ investments in nonguarantor subsidiaries and nonguarantor subsidiaries’ investments in guarantor subsidiaries, are presented under the equity method of accounting with the related investment presented within the line items Intercompany receivable and investments in consolidated affiliates and Intercompany payable in the accompanying condensed consolidating balance sheets.
The terms of our credit agreement allow us to declare and pay cash dividends on our common stock so long as: (1) we are not in default under our credit agreement and (2) our senior secured leverage ratio (as defined in our credit agreement) remains less than or equal to 1.75x. The terms of our senior note indenture allow us to declare and pay cash dividends on our common stock so long as (1) we are not in default, (2) the consolidated coverage ratio (as defined in the indenture) exceeds 2x or we are otherwise allowed under the indenture to incur debt, and (3) we have capacity under the indenture’s restricted payments covenant to declare and pay dividends. See Note 9, Long-term Debt, to the consolidated financial statements accompanying the 2016 Form 10-K.
Periodically, certain wholly owned subsidiaries of HealthSouth make dividends or distributions of available cash and/or intercompany receivable balances to their parents. In addition, HealthSouth makes contributions to certain wholly owned subsidiaries. When made, these dividends, distributions, and contributions impact the Intercompany receivable, Intercompany payable, and HealthSouth shareholders’ equity line items in the accompanying condensed consolidating balance sheet but have no impact on the consolidated financial statements of HealthSouth Corporation.
 
Three Months Ended June 30, 2017
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
5.3

 
$
571.8

 
$
435.8

 
$
(31.6
)
 
$
981.3

Less: Provision for doubtful accounts
—

 
(8.9
)
 
(4.8
)
 
—

 
(13.7
)
Net operating revenues less provision for doubtful accounts
5.3

 
562.9

 
431.0

 
(31.6
)
 
967.6

Operating expenses:
 

 
 

 
 

 
 

 
 
Salaries and benefits
8.7

 
269.1

 
255.2

 
(5.2
)
 
527.8

Other operating expenses
7.5

 
79.8

 
55.3

 
(12.1
)
 
130.5

Occupancy costs
0.5

 
23.3

 
8.8

 
(14.3
)
 
18.3

Supplies
—

 
23.6

 
13.5

 
—

 
37.1

General and administrative expenses
37.6

 
—

 
14.8

 
—

 
52.4

Depreciation and amortization
2.4

 
26.6

 
16.8

 
—

 
45.8

Total operating expenses
56.7

 
422.4

 
364.4

 
(31.6
)
 
811.9

Loss on early extinguishment of debt
10.4

 
—

 
—

 
—

 
10.4

Interest expense and amortization of debt discounts and fees
34.5

 
5.3

 
5.9

 
(5.3
)
 
40.4

Other income
(5.4
)
 
(0.1
)
 
(0.7
)
 
5.3

 
(0.9
)
Equity in net income of nonconsolidated affiliates
—

 
(1.8
)
 
(0.2
)
 
—

 
(2.0
)
Equity in net income of consolidated affiliates
(85.3
)
 
(7.5
)
 
—

 
92.8

 
—

Management fees
(36.1
)
 
27.3

 
8.8

 
—

 
—

Income from continuing operations before income tax (benefit) expense
30.5

 
117.3

 
52.8

 
(92.8
)
 
107.8

Provision for income tax (benefit) expense
(32.3
)
 
46.8

 
14.1

 
—

 
28.6

Income from continuing operations
62.8

 
70.5

 
38.7

 
(92.8
)
 
79.2

Income from discontinued operations, net of tax
0.2

 
—

 
—

 
—

 
0.2

Net income
63.0

 
70.5

 
38.7

 
(92.8
)
 
79.4

Less: Net income attributable to noncontrolling interests
—

 
—

 
(16.4
)
 
—

 
(16.4
)
Net income attributable to HealthSouth
$
63.0

 
$
70.5

 
$
22.3

 
$
(92.8
)
 
$
63.0

Comprehensive income
$
63.0

 
$
70.5

 
$
38.7

 
$
(92.8
)
 
$
79.4

Comprehensive income attributable to HealthSouth
$
63.0

 
$
70.5

 
$
22.3

 
$
(92.8
)
 
$
63.0

 
Three Months Ended June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
5.1

 
$
546.1

 
$
398.9

 
$
(29.4
)
 
$
920.7

Less: Provision for doubtful accounts
—

 
(10.6
)
 
(4.8
)
 
—

 
(15.4
)
Net operating revenues less provision for doubtful accounts
5.1

 
535.5

 
394.1

 
(29.4
)
 
905.3

Operating expenses:
 

 
 

 
 

 
 

 
 
Salaries and benefits
11.0

 
248.7

 
231.0

 
(4.6
)
 
486.1

Other operating expenses
6.9

 
76.7

 
49.4

 
(11.5
)
 
121.5

Occupancy costs
0.9

 
22.4

 
7.9

 
(13.3
)
 
17.9

Supplies
—

 
22.4

 
12.0

 
—

 
34.4

General and administrative expenses
31.2

 
—

 
3.2

 
—

 
34.4

Depreciation and amortization
2.4

 
25.9

 
14.6

 
—

 
42.9

Professional fees—accounting, tax, and legal
1.7

 
—

 
—

 
—

 
1.7

Total operating expenses
54.1

 
396.1

 
318.1

 
(29.4
)
 
738.9

Loss on early extinguishment of debt
2.4

 
—

 
—

 
—

 
2.4

Interest expense and amortization of debt discounts and fees
36.6

 
5.7

 
6.0

 
(4.9
)
 
43.4

Other income
(4.9
)
 
(0.1
)
 
(0.6
)
 
4.9

 
(0.7
)
Equity in net income of nonconsolidated affiliates
—

 
(2.2
)
 
(0.2
)
 
—

 
(2.4
)
Equity in net income of consolidated affiliates
(88.7
)
 
(10.4
)
 
—

 
99.1

 
—

Management fees
(33.8
)
 
25.9

 
7.9

 
—

 
—

Income from continuing operations before income tax (benefit) expense
39.4

 
120.5

 
62.9

 
(99.1
)
 
123.7

Provision for income tax (benefit) expense
(23.3
)
 
48.1

 
17.6

 
—

 
42.4

Income from continuing operations
62.7

 
72.4

 
45.3

 
(99.1
)
 
81.3

Loss from discontinued operations, net of
tax
(0.1
)
 
—

 
—

 
—

 
(0.1
)
Net income
62.6

 
72.4

 
45.3

 
(99.1
)
 
81.2

Less: Net income attributable to noncontrolling interests
—

 
—

 
(18.6
)
 
—

 
(18.6
)
Net income attributable to HealthSouth
$
62.6

 
$
72.4

 
$
26.7

 
$
(99.1
)
 
$
62.6

Comprehensive income
$
62.8

 
$
72.4

 
$
45.3

 
$
(99.1
)
 
$
81.4

Comprehensive income attributable to HealthSouth
$
62.8

 
$
72.4

 
$
26.7

 
$
(99.1
)
 
$
62.8

 
As of June 30, 2017
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
40.8

 
$
3.9

 
$
26.4

 
$
—

 
$
71.1

Accounts receivable, net
—

 
267.4

 
159.1

 
—

 
426.5

Other current assets
92.0

 
21.4

 
144.9

 
(62.4
)
 
195.9

Total current assets
132.8

 
292.7

 
330.4

 
(62.4
)
 
693.5

Property and equipment, net
71.4

 
984.5

 
396.2

 
—

 
1,452.1

Goodwill
—

 
860.6

 
1,089.0

 
—

 
1,949.6

Intangible assets, net
12.2

 
110.8

 
281.8

 
—

 
404.8

Deferred income tax assets
117.0

 
57.7

 
—

 
(72.6
)
 
102.1

Other long-term assets
48.4

 
107.7

 
81.8

 
—

 
237.9

Intercompany notes receivable
518.6

 
—

 
—

 
(518.6
)
 
—

Intercompany receivable and investments in consolidated affiliates
2,806.7

 
317.8

 
—

 
(3,124.5
)
 
—

Total assets
$
3,707.1

 
$
2,731.8

 
$
2,179.2

 
$
(3,778.1
)
 
$
4,840.0

Liabilities and Shareholders’ Equity
 

 
 

 
 

 
 

 


Current liabilities:
 

 
 

 
 

 
 

 


Current portion of long-term debt
$
40.1

 
$
7.0

 
$
8.7

 
$
(17.5
)
 
$
38.3

Accounts payable
9.8

 
43.4

 
24.3

 
—

 
77.5

Accrued expenses and other current liabilities
186.8

 
75.9

 
159.7

 
(44.9
)
 
377.5

Total current liabilities
236.7

 
126.3

 
192.7

 
(62.4
)
 
493.3

Long-term debt, net of current portion
2,331.1

 
246.1

 
47.9

 
—

 
2,625.1

Intercompany notes payable
—

 
—

 
518.6

 
(518.6
)
 
—

Other long-term liabilities
35.6

 
17.0

 
202.5

 
(72.5
)
 
182.6

Intercompany payable
—

 
—

 
140.5

 
(140.5
)
 
—

 
2,603.4

 
389.4

 
1,102.2

 
(794.0
)
 
3,301.0

Commitments and contingencies


 


 


 


 


Redeemable noncontrolling interests
—

 
—

 
216.0

 
—

 
216.0

Shareholders’ equity:
 

 
 

 
 

 
 

 


HealthSouth shareholders’ equity
1,103.7

 
2,342.4

 
641.7

 
(2,984.1
)
 
1,103.7

Noncontrolling interests
—

 
—

 
219.3

 
—

 
219.3

Total shareholders’ equity
1,103.7

 
2,342.4

 
861.0

 
(2,984.1
)
 
1,323.0

Total liabilities and shareholders’ equity
$
3,707.1

 
$
2,731.8

 
$
2,179.2

 
$
(3,778.1
)
 
$
4,840.0


 
As of December 31, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
20.6

 
$
1.6

 
$
18.3

 
$
—

 
$
40.5

Accounts receivable, net
—

 
276.5

 
167.3

 
—

 
443.8

Other current assets
49.9

 
24.2

 
114.7

 
(18.6
)
 
170.2

Total current assets
70.5

 
302.3

 
300.3

 
(18.6
)
 
654.5

Property and equipment, net
41.6

 
987.3

 
362.9

 
—

 
1,391.8

Goodwill
—

 
860.6

 
1,066.6

 
—

 
1,927.2

Intangible assets, net
12.0

 
115.6

 
283.7

 
—

 
411.3

Deferred income tax assets
90.9

 
57.6

 
—

 
(72.7
)
 
75.8

Other long-term assets
49.0

 
95.1

 
77.2

 
—

 
221.3

Intercompany notes receivable
528.8

 
—

 
—

 
(528.8
)
 
—

Intercompany receivable and investments in consolidated affiliates
2,855.5

 
96.3

 
—

 
(2,951.8
)
 
—

Total assets
$
3,648.3

 
$
2,514.8

 
$
2,090.7

 
$
(3,571.9
)
 
$
4,681.9

Liabilities and Shareholders’ Equity
 

 
 

 
 

 
 

 


Current liabilities:
 

 
 

 
 

 
 

 


Current portion of long-term debt
$
40.0

 
$
6.4

 
$
8.2

 
$
(17.5
)
 
$
37.1

Accounts payable
7.0

 
37.4

 
23.9

 
—

 
68.3

Accrued expenses and other current liabilities
150.7

 
82.3

 
138.3

 
(1.1
)
 
370.2

Total current liabilities
197.7

 
126.1


170.4


(18.6
)
 
475.6

Long-term debt, net of current portion
2,679.2

 
248.9

 
51.2

 
—

 
2,979.3

Intercompany notes payable
—

 
—

 
528.8

 
(528.8
)
 
—

Other long-term liabilities
35.5

 
15.2

 
181.6

 
(72.3
)
 
160.0

Intercompany payable
—

 
—

 
168.2

 
(168.2
)
 
—

 
2,912.4

 
390.2


1,100.2


(787.9
)
 
3,614.9

Commitments and contingencies


 


 


 


 


Redeemable noncontrolling interests
—

 
—

 
138.3

 
—

 
138.3

Shareholders’ equity:
 

 
 

 
 

 
 

 


HealthSouth shareholders’ equity
735.9

 
2,124.6

 
659.4

 
(2,784.0
)
 
735.9

Noncontrolling interests
—

 
—

 
192.8

 
—

 
192.8

Total shareholders’ equity
735.9

 
2,124.6


852.2


(2,784.0
)
 
928.7

Total liabilities and shareholders’ equity
$
3,648.3

 
$
2,514.8


$
2,090.7


$
(3,571.9
)
 
$
4,681.9

 
Six Months Ended June 30, 2017
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net cash provided by operating activities
$
32.6

 
$
172.9

 
$
126.5

 
$
—

 
$
332.0

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Purchases of property and equipment
(13.1
)
 
(40.2
)
 
(46.6
)
 
—

 
(99.9
)
Additions to capitalized software costs
(8.3
)
 
(0.2
)
 
(1.2
)
 
—

 
(9.7
)
Acquisitions of businesses, net of cash acquired
(10.9
)
 
—

 
(10.0
)
 
—

 
(20.9
)
Net change in restricted cash
—

 
—

 
(12.1
)
 
—

 
(12.1
)
Proceeds from repayment of intercompany note receivable
17.0

 
—

 
—

 
(17.0
)
 
—

Other, net
(1.7
)
 
9.0

 
3.7

 
—

 
11.0

Net cash used in investing activities
(17.0
)
 
(31.4
)

(66.2
)

(17.0
)
 
(131.6
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 


Principal payments on debt, including pre-payments
(11.9
)
 
—

 
(1.5
)
 
—

 
(13.4
)
Principal payments on intercompany note payable
—

 
—

 
(17.0
)
 
17.0

 
—

Borrowings on revolving credit facility
105.0

 
—

 
—

 
—

 
105.0

Payments on revolving credit facility
(187.0
)
 
—

 
—

 
—

 
(187.0
)
Repurchases of common stock, including fees and expenses
(18.1
)
 
—

 
—

 
—

 
(18.1
)
Dividends paid on common stock
(43.5
)
 
—

 
—

 
—

 
(43.5
)
Proceeds from exercising stock warrants
26.6

 
—

 
—

 
—

 
26.6

Distributions paid to noncontrolling interests of consolidated affiliates
—

 
—

 
(24.1
)
 
—

 
(24.1
)
Taxes paid on behalf of employees for shares withheld
(19.5
)
 
—

 
(0.3
)
 
—

 
(19.8
)
Other, net
0.4

 
(3.3
)
 
7.4

 
—

 
4.5

Change in intercompany advances
152.6

 
(135.9
)
 
(16.7
)
 
—

 
—

Net cash provided by (used in) financing activities
4.6

 
(139.2
)

(52.2
)

17.0

 
(169.8
)
Increase in cash and cash equivalents
20.2

 
2.3


8.1


—

 
30.6

Cash and cash equivalents at beginning of period
20.6

 
1.6

 
18.3

 
—

 
40.5

Cash and cash equivalents at end of period
$
40.8

 
$
3.9


$
26.4


$
—

 
$
71.1

 
 
 
 
 
 
 
 
 
 
Supplemental schedule of noncash financing activities:
 
 
 
 
 
 
 
 
 
Conversion of convertible debt
$
319.4

 
$
—

 
$
—

 
$
—

 
$
319.4


 
Six Months Ended June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net cash provided by operating activities
$
41.4

 
$
182.5

 
$
97.9

 
$
—

 
$
321.8

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Purchases of property and equipment
(5.4
)
 
(35.3
)
 
(30.7
)
 
—

 
(71.4
)
Additions to capitalized software costs
(14.3
)
 
—

 
(0.9
)
 
—

 
(15.2
)
Acquisitions of businesses, net of cash acquired
—

 
—

 
(9.4
)
 
—

 
(9.4
)
Net change in restricted cash
—

 
—

 
(11.5
)
 
—

 
(11.5
)
Funding of intercompany note receivable
(6.5
)
 
—

 
—

 
6.5

 
—

Proceeds from repayment of intercompany note receivable
22.0

 
—

 
—

 
(22.0
)
 
—

Other, net
(2.8
)
 
(0.1
)
 
4.9

 
—

 
2.0

Net cash used in investing activities
(7.0
)
 
(35.4
)
 
(47.6
)
 
(15.5
)
 
(105.5
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 


Principal payments on debt, including pre-payments
(111.2
)
 
(0.8
)
 
(0.8
)
 
—

 
(112.8
)
Principal borrowings on intercompany note receivable
—

 
—

 
6.5

 
(6.5
)
 
—

Principal payments on intercompany note payable
—

 
—

 
(22.0
)
 
22.0

 
—

Borrowings on revolving credit facility
165.0

 
—

 
—

 
—

 
165.0

Payments on revolving credit facility
(145.0
)
 
—

 
—

 
—

 
(145.0
)
Repurchases of common stock, including fees and expenses
(24.1
)
 
—

 
—

 
—

 
(24.1
)
Dividends paid on common stock
(41.9
)
 
—

 
—

 
—

 
(41.9
)
Distributions paid to noncontrolling interests of consolidated affiliates
—

 
—

 
(33.6
)
 
—

 
(33.6
)
Taxes paid on behalf of employees for shares withheld
(9.9
)
 
—

 
—

 
—

 
(9.9
)
Other, net
2.2

 
(2.9
)
 
(4.6
)
 
—

 
(5.3
)
Change in intercompany advances
145.8

 
(142.2
)
 
(3.6
)
 
—

 
—

Net cash used in financing activities
(19.1
)
 
(145.9
)
 
(58.1
)
 
15.5

 
(207.6
)
Increase (decrease) in cash and cash equivalents
15.3

 
1.2

 
(7.8
)
 
—

 
8.7

Cash and cash equivalents at beginning of period
41.2

 
1.2

 
19.2

 
—

 
61.6

Cash and cash equivalents at end of period
$
56.5

 
$
2.4

 
$
11.4

 
$
—

 
$
70.3