Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Operations



	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



	Six Months Ended June 30, 2017
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net operating revenues	$	10.6		$	1,148.0		$	860.3		$	(62.8	)	$	1,956.1
Less: Provision for doubtful accounts	—			(19.7		)	(10.4		)	—			(30.1		)
Net operating revenues less provision for doubtful accounts	10.6			1,128.3			849.9			(62.8		)	1,926.0
Operating expenses:
Salaries and benefits	19.9			541.4			507.1			(10.5		)	1,057.9
Other operating expenses	15.7			157.5			110.4			(24.0		)	259.6
Occupancy costs	1.0			46.6			16.9			(28.3		)	36.2
Supplies	—			47.3			26.8			—			74.1
General and administrative expenses	69.2			—			19.7			—			88.9
Depreciation and amortization	4.8			53.2			33.0			—			91.0
Total operating expenses	110.6			846.0			713.9			(62.8		)	1,607.7
Loss on early extinguishment of debt	10.4			—			—			—			10.4
Interest expense and amortization of debt discounts and fees	69.7			10.7			11.7			(10.4		)	81.7
Other income	(10.8		)	(0.2		)	(1.3		)	10.4			(1.9		)
Equity in net income of nonconsolidated affiliates	—			(3.7		)	(0.4		)	—			(4.1		)
Equity in net income of consolidated affiliates	(171.6		)	(17.0		)	—			188.6			—
Management fees	(72.0		)	54.7			17.3			—			—
Income from continuing operations before income tax (benefit) expense	74.3			237.8			108.7			(188.6		)	232.2
Provision for income tax (benefit) expense	(55.6		)	94.9			29.0			—			68.3
Income from continuing operations	129.9			142.9			79.7			(188.6		)	163.9
Loss from discontinued operations, net of tax	(0.1		)	—			—			—			(0.1		)
Net income	129.8			142.9			79.7			(188.6		)	163.8
Less: Net income attributable to noncontrolling interests	—			—			(34.0		)	—			(34.0		)
Net income attributable to HealthSouth	$	129.8		$	142.9		$	45.7		$	(188.6	)	$	129.8
Comprehensive income	$	130.1		$	142.9		$	79.7		$	(188.6	)	$	164.1
Comprehensive income attributable to HealthSouth	$	130.1		$	142.9		$	45.7		$	(188.6	)	$	130.1



	Six Months Ended June 30, 2016
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net operating revenues	$	10.0		$	1,088.5		$	790.3		$	(58.3	)	$	1,830.5
Less: Provision for doubtful accounts	—			(22.4		)	(9.5		)	—			(31.9		)
Net operating revenues less provision for doubtful accounts	10.0			1,066.1			780.8			(58.3		)	1,798.6
Operating expenses:
Salaries and benefits	22.3			500.0			459.1			(9.2		)	972.2
Other operating expenses	12.5			152.6			98.1			(22.5		)	240.7
Occupancy costs	1.8			44.8			15.9			(26.6		)	35.9
Supplies	—			45.2			24.2			—			69.4
General and administrative expenses	64.3			—			2.0			—			66.3
Depreciation and amortization	4.8			51.8			28.7			—			85.3
Professional fees—accounting, tax, and legal	1.9			—			—			—			1.9
Total operating expenses	107.6			794.4			628.0			(58.3		)	1,471.7
Loss on early extinguishment of debt	4.8			—			—			—			4.8
Interest expense and amortization of debt discounts and fees	75.4			10.9			11.4			(9.7		)	88.0
Other income	(9.6		)	(0.2		)	(1.2		)	9.7			(1.3		)
Equity in net income of nonconsolidated affiliates	—			(4.4		)	(0.4		)	—			(4.8		)
Equity in net income of consolidated affiliates	(174.4		)	(19.9		)	—			194.3			—
Management fees	(68.0		)	51.7			16.3			—			—
Income from continuing operations before income tax (benefit) expense	74.2			233.6			126.7			(194.3		)	240.2
Provision for income tax (benefit) expense	(46.6		)	93.2			35.5			—			82.1
Income from continuing operations	120.8			140.4			91.2			(194.3		)	158.1
Loss from discontinued operations, net of tax	(0.2		)	—			—			—			(0.2		)
Net income	120.6			140.4			91.2			(194.3		)	157.9
Less: Net income attributable to noncontrolling interests	—			—			(37.3		)	—			(37.3		)
Net income attributable to HealthSouth	$	120.6		$	140.4		$	53.9		$	(194.3	)	$	120.6
Comprehensive income	$	120.9		$	140.4		$	91.2		$	(194.3	)	$	158.2
Comprehensive income attributable to HealthSouth	$	120.9		$	140.4		$	53.9		$	(194.3	)	$	120.9

Condensed Consolidating Balance Sheet



	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

Condensed Consolidating Statement of Cash Flows



	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