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Condensed Consolidating Financial Information
 12 Months Ended
Dec. 31, 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 Encompass Health, and all guarantees are full and unconditional and joint and several, subject to certain customary conditions for release. Encompass Health’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 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 2x. 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.
Periodically, certain wholly owned subsidiaries of Encompass Health make dividends or distributions of available cash and/or intercompany receivable balances to their parents. In addition, Encompass Health makes contributions to certain wholly owned subsidiaries. When made, these dividends, distributions, and contributions impact the Intercompany receivable, Intercompany payable, and Encompass Health shareholders’ equity line items in the accompanying condensed consolidating balance sheet but have no impact on the consolidated financial statements of Encompass Health Corporation.
 
 
 
 
 
 
 
 
 
 
 
For the Year Ended December 31, 2017
 
Encompass Health Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
Encompass Health Consolidated
 
(In Millions)
Net operating revenues
$
21.3

 
$
2,258.7

 
$
1,817.5

 
$
(126.1
)
 
$
3,971.4

Less: Provision for doubtful accounts
—

 
(30.7
)
 
(21.7
)
 
—

 
(52.4
)
Net operating revenues less provision for doubtful accounts
21.3

 
2,228.0

 
1,795.8

 
(126.1
)
 
3,919.0

Operating expenses:
 

 
 

 
 

 
 

 
 

Salaries and benefits
34.7

 
1,077.4

 
1,063.5

 
(21.0
)
 
2,154.6

Other operating expenses
32.8

 
321.8

 
230.7

 
(48.6
)
 
536.7

Occupancy costs
1.9

 
93.4

 
34.7

 
(56.5
)
 
73.5

Supplies
—

 
93.2

 
56.1

 
—

 
149.3

General and administrative expenses
143.7

 
—

 
28.0

 
—

 
171.7

Depreciation and amortization
8.8

 
103.4

 
71.6

 
—

 
183.8

Total operating expenses
221.9

 
1,689.2

 
1,484.6

 
(126.1
)
 
3,269.6

Loss on early extinguishment of debt
10.7

 
—

 
—

 
—

 
10.7

Interest expense and amortization of debt discounts and fees
130.5

 
21.1

 
23.8

 
(21.0
)
 
154.4

Other (income) loss
(21.7
)
 
0.2

 
(3.6
)
 
21.0

 
(4.1
)
Equity in net income of nonconsolidated affiliates
—

 
(7.3
)
 
(0.7
)
 
—

 
(8.0
)
Equity in net income of consolidated affiliates
(341.6
)
 
(40.3
)
 
—

 
381.9

 
—

Management fees
(145.0
)
 
108.3

 
36.7

 
—

 
—

Income from continuing operations before income tax (benefit) expense
166.5

 
456.8

 
255.0

 
(381.9
)
 
496.4

Provision for income tax (benefit) expense
(90.2
)
 
182.3

 
68.5

 
—

 
160.6

Income from continuing operations
256.7

 
274.5

 
186.5

 
(381.9
)
 
335.8

Loss from discontinued operations, net of tax
(0.4
)
 
—

 
—

 
—

 
(0.4
)
Net income
256.3

 
274.5

 
186.5

 
(381.9
)
 
335.4

Less: Net income attributable to noncontrolling interests
—

 
—

 
(79.1
)
 
—

 
(79.1
)
Net income attributable to Encompass Health
$
256.3

 
$
274.5

 
$
107.4

 
$
(381.9
)
 
$
256.3

Comprehensive income
$
256.2

 
$
274.5

 
$
186.5

 
$
(381.9
)
 
$
335.3

Comprehensive income attributable to Encompass Health
$
256.2

 
$
274.5

 
$
107.4

 
$
(381.9
)
 
$
256.2


 
 
 
 
 
 
 
 
 
 
 
For the Year Ended December 31, 2016
 
Encompass Health Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
Encompass Health Consolidated
 
(In Millions)
Net operating revenues
$
20.1

 
$
2,171.7

 
$
1,633.3

 
$
(117.9
)
 
$
3,707.2

Less: Provision for doubtful accounts
—

 
(41.8
)
 
(19.4
)
 
—

 
(61.2
)
Net operating revenues less provision for doubtful accounts
20.1

 
2,129.9

 
1,613.9

 
(117.9
)
 
3,646.0

Operating expenses:
 

 
 

 
 

 
 

 
 

Salaries and benefits
45.5

 
1,006.1

 
952.6

 
(18.3
)
 
1,985.9

Other operating expenses
25.5

 
309.8

 
203.1

 
(46.3
)
 
492.1

Occupancy costs
2.9

 
89.8

 
31.9

 
(53.3
)
 
71.3

Supplies
—

 
89.9

 
50.1

 
—

 
140.0

General and administrative expenses
126.7

 
—

 
6.7

 
—

 
133.4

Depreciation and amortization
9.4

 
102.8

 
60.4

 
—

 
172.6

Professional fees—accounting, tax, and legal
1.9

 
—

 
—

 
—

 
1.9

Total operating expenses
211.9

 
1,598.4

 
1,304.8

 
(117.9
)
 
2,997.2

Loss on early extinguishment of debt
7.4

 
—

 
—

 
—

 
7.4

Interest expense and amortization of debt discounts and fees
147.3

 
21.6

 
23.1

 
(19.9
)
 
172.1

Other income
(19.6
)
 
(0.4
)
 
(2.8
)
 
19.9

 
(2.9
)
Equity in net income of nonconsolidated affiliates
—

 
(9.0
)
 
(0.8
)
 
—

 
(9.8
)
Equity in net income of consolidated affiliates
(347.2
)
 
(41.2
)
 
—

 
388.4

 
—

Management fees
(136.2
)
 
103.1

 
33.1

 
—

 
—

Income from continuing operations before income tax (benefit) expense
156.5

 
457.4

 
256.5

 
(388.4
)
 
482.0

Provision for income tax (benefit) expense
(91.1
)
 
182.6

 
72.4

 
—

 
163.9

Income from continuing operations
247.6

 
274.8

 
184.1

 
(388.4
)
 
318.1

Income from discontinued operations, net of tax
—

 
—

 
—

 
—

 
—

Net income
247.6

 
274.8

 
184.1

 
(388.4
)
 
318.1

Less: Net income attributable to noncontrolling interests
—

 
—

 
(70.5
)
 
—

 
(70.5
)
Net income attributable to Encompass Health
$
247.6

 
$
274.8

 
$
113.6

 
$
(388.4
)
 
$
247.6

Comprehensive income
$
247.6

 
$
274.8

 
$
184.1

 
$
(388.4
)
 
$
318.1

Comprehensive income attributable to Encompass Health
$
247.6

 
$
274.8

 
$
113.6

 
$
(388.4
)
 
$
247.6


 
 
 
 
 
 
 
 
 
 
 
For the Year Ended December 31, 2015
 
Encompass Health Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
Encompass Health Consolidated
 
(In Millions)
Net operating revenues
$
19.4

 
$
1,871.6

 
$
1,375.4

 
$
(103.5
)
 
$
3,162.9

Less: Provision for doubtful accounts
—

 
(33.7
)
 
(13.5
)
 
—

 
(47.2
)
Net operating revenues less provision for doubtful accounts
19.4

 
1,837.9


1,361.9


(103.5
)
 
3,115.7

Operating expenses:
 

 
 

 
 

 
 

 


Salaries and benefits
49.4

 
866.7

 
771.8

 
(17.1
)
 
1,670.8

Other operating expenses
31.3

 
266.2

 
175.9

 
(41.3
)
 
432.1

Occupancy costs
4.0

 
66.9

 
28.1

 
(45.1
)
 
53.9

Supplies
—

 
82.8

 
45.9

 
—

 
128.7

General and administrative expenses
128.3

 
—

 
5.0

 
—

 
133.3

Depreciation and amortization
9.9

 
82.8

 
47.0

 
—

 
139.7

Government, class action, and related settlements
7.5

 
—

 
—

 
—

 
7.5

Professional fees—accounting, tax, and legal
3.0

 
—

 
—

 
—

 
3.0

Total operating expenses
233.4

 
1,365.4


1,073.7


(103.5
)
 
2,569.0

Loss on early extinguishment of debt
22.4

 
—

 
—

 
—

 
22.4

Interest expense and amortization of debt discounts and fees
130.0

 
11.2

 
13.1

 
(11.4
)
 
142.9

Other income
(13.6
)
 
(0.2
)
 
(3.1
)
 
11.4

 
(5.5
)
Equity in net income of nonconsolidated affiliates
—

 
(8.5
)
 
(0.2
)
 
—

 
(8.7
)
Equity in net income of consolidated affiliates
(320.4
)
 
(40.3
)
 
—

 
360.7

 
—

Management fees
(119.7
)
 
88.8

 
30.9

 
—

 
—

Income from continuing operations before income tax (benefit) expense
87.3

 
421.5


247.5


(360.7
)
 
395.6

Provision for income tax (benefit) expense
(96.9
)
 
168.2

 
70.6

 
—

 
141.9

Income from continuing operations
184.2

 
253.3


176.9


(360.7
)
 
253.7

(Loss) income from discontinued operations, net of tax
(1.1
)
 
—

 
0.2

 
—

 
(0.9
)
Net income
183.1

 
253.3


177.1


(360.7
)
 
252.8

Less: Net income attributable to noncontrolling interests
—

 
—

 
(69.7
)
 
—

 
(69.7
)
Net income attributable to Encompass Health
$
183.1

 
$
253.3


$
107.4


$
(360.7
)
 
$
183.1

Comprehensive income
$
182.4

 
$
253.3

 
$
177.1

 
$
(360.7
)
 
$
252.1

Comprehensive income attributable to Encompass Health
$
182.4

 
$
253.3

 
$
107.4

 
$
(360.7
)
 
$
182.4


 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
Encompass Health Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
Encompass Health Consolidated
 
(In Millions)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
34.3

 
$
2.9

 
$
17.2

 
$
—

 
$
54.4

Restricted cash
—

 
—

 
62.4

 
—

 
62.4

Accounts receivable, net
—

 
285.2

 
186.9

 
—

 
472.1

Prepaid expenses and other current assets
61.4

 
21.7

 
48.7

 
(18.5
)
 
113.3

Total current assets
95.7

 
309.8


315.2


(18.5
)
 
702.2

Property and equipment, net
101.8

 
991.5

 
423.8

 
—

 
1,517.1

Goodwill
—

 
854.6

 
1,118.0

 
—

 
1,972.6

Intangible assets, net
11.8

 
105.1

 
286.2

 
—

 
403.1

Deferred income tax assets
97.4

 
8.4

 
—

 
(42.2
)
 
63.6

Other long-term assets
49.2

 
100.5

 
85.4

 
—

 
235.1

Intercompany notes receivable
486.2

 
—

 
—

 
(486.2
)
 
—

Intercompany receivable and investments in consolidated affiliates
2,839.1

 
311.3

 
—

 
(3,150.4
)
 
—

Total assets
$
3,681.2

 
$
2,681.2


$
2,228.6


$
(3,697.3
)
 
$
4,893.7

Liabilities and Shareholders’ Equity
 

 
 

 
 

 
 

 


Current liabilities:
 

 
 

 
 

 
 

 


Current portion of long-term debt
$
32.8

 
$
7.4

 
$
9.6

 
$
(17.5
)
 
$
32.3

Accounts payable
10.4

 
43.5

 
24.5

 
—

 
78.4

Accrued payroll
36.1

 
63.8

 
72.2

 
—

 
172.1

Accrued interest payable
21.9

 
2.6

 
0.2

 
—

 
24.7

Other current liabilities
108.8

 
15.6

 
86.6

 
(1.0
)
 
210.0

Total current liabilities
210.0

 
132.9


193.1


(18.5
)
 
517.5

Long-term debt, net of current portion
2,258.5

 
242.2

 
44.7

 
—

 
2,545.4

Intercompany notes payable
—

 
—

 
486.2

 
(486.2
)
 
—

Self-insured risks
9.6

 
—

 
100.5

 
—

 
110.1

Other long-term liabilities
21.4

 
17.8

 
78.1

 
(42.1
)
 
75.2

Intercompany payable
—

 
—

 
144.8

 
(144.8
)
 
—

 
2,499.5

 
392.9


1,047.4


(691.6
)
 
3,248.2

Commitments and contingencies


 


 


 


 


Redeemable noncontrolling interests
—

 
—

 
220.9

 
—

 
220.9

Shareholders’ equity:
 

 
 

 
 

 
 

 


Encompass Health shareholders’ equity
1,181.7

 
2,288.3

 
717.4

 
(3,005.7
)
 
1,181.7

Noncontrolling interests
—

 
—

 
242.9

 
—

 
242.9

Total shareholders’ equity
1,181.7

 
2,288.3


960.3


(3,005.7
)
 
1,424.6

Total liabilities and shareholders’ equity
$
3,681.2

 
$
2,681.2


$
2,228.6


$
(3,697.3
)
 
$
4,893.7


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

 
$
1.6

 
$
18.3

 
$
—

 
$
40.5

Restricted cash
—

 
—

 
60.9

 
—

 
60.9

Accounts receivable, net
—

 
273.3

 
170.5

 
—

 
443.8

Prepaid expenses and other current assets
49.9

 
24.0

 
54.0

 
(18.6
)
 
109.3

Total current assets
70.5

 
298.9


303.7


(18.6
)
 
654.5

Property and equipment, net
41.6

 
979.7

 
370.5

 
—

 
1,391.8

Goodwill
—

 
858.4

 
1,068.8

 
—

 
1,927.2

Intangible assets, net
12.0

 
115.5

 
283.8

 
—

 
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

 
107.7

 
—

 
(2,963.2
)
 
—

Total assets
$
3,648.3

 
$
2,512.9


$
2,104.0


$
(3,583.3
)
 
$
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

 
37.2

 
24.1

 
—

 
68.3

Accrued payroll
31.6

 
57.3

 
58.4

 
—

 
147.3

Accrued interest payable
22.8

 
2.8

 
0.2

 
—

 
25.8

Other current liabilities
96.3

 
21.6

 
80.3

 
(1.1
)
 
197.1

Total current liabilities
197.7

 
125.3


171.2


(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
)
 
—

Self-insured risks
14.1

 
—

 
96.3

 
—

 
110.4

Other long-term liabilities
21.4

 
15.2

 
85.3

 
(72.3
)
 
49.6

Intercompany payable
—

 
—

 
167.6

 
(167.6
)
 
—

 
2,912.4

 
389.4


1,100.4


(787.3
)
 
3,614.9

Commitments and contingencies


 


 


 


 


Redeemable noncontrolling interests
—

 
—

 
138.3

 
—

 
138.3

Shareholders’ equity:
 

 
 

 
 

 
 

 


Encompass Health shareholders’ equity
735.9

 
2,123.5

 
672.5

 
(2,796.0
)
 
735.9

Noncontrolling interests
—

 
—

 
192.8

 
—

 
192.8

Total shareholders’ equity
735.9

 
2,123.5


865.3


(2,796.0
)
 
928.7

Total liabilities and shareholders’ equity
$
3,648.3

 
$
2,512.9


$
2,104.0


$
(3,583.3
)
 
$
4,681.9

 
For the Year Ended December 31, 2017
 
Encompass Health Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
Encompass Health Consolidated
 
(In Millions)
Net cash provided by operating activities
$
27.6

 
$
381.3

 
$
248.3

 
$
—

 
$
657.2

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Acquisition of businesses, net of cash acquired
(10.9
)
 
—

 
(27.9
)
 
—

 
(38.8
)
Purchases of property and equipment
(39.4
)
 
(106.1
)
 
(80.3
)
 
—

 
(225.8
)
Additions to capitalized software costs
(16.3
)
 
(0.2
)
 
(2.7
)
 
—

 
(19.2
)
Proceeds from disposal of assets
—

 
11.7

 
0.6

 
—

 
12.3

Purchases of restricted investments
—

 
—

 
(8.5
)
 
—

 
(8.5
)
Net change in restricted cash
—

 
—

 
(1.5
)
 
—

 
(1.5
)
Proceeds from repayment of intercompany note receivable
51.0

 
—

 
—

 
(51.0
)
 
—

Other
(3.7
)
 
—

 
0.7

 
—

 
(3.0
)
Net cash used in investing activities
(19.3
)
 
(94.6
)

(119.6
)

(51.0
)

(284.5
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 


Principal payments on debt, including pre-payments
(126.9
)
 
—

 
(3.0
)
 
—

 
(129.9
)
Principal payments on intercompany note payable
—

 
—

 
(51.0
)
 
51.0

 
—

Borrowings on revolving credit facility
273.3

 
—

 
—

 
—

 
273.3

Payments on revolving credit facility
(330.3
)
 
—

 
—

 
—

 
(330.3
)
Principal payments under capital lease obligations
—

 
(6.8
)
 
(8.5
)
 
—

 
(15.3
)
Debt amendment and issuance costs
(3.1
)
 
—

 
—

 
—

 
(3.1
)
Repurchases of common stock, including fees and expenses
(38.1
)
 
—

 
—

 
—

 
(38.1
)
Dividends paid on common stock
(91.5
)
 
—

 
—

 
—

 
(91.5
)
Proceeds from exercising stock warrants
26.6

 
—

 
—

 
—

 
26.6

Distributions paid to noncontrolling interests of consolidated affiliates
—

 
—

 
(51.9
)
 
—

 
(51.9
)
Taxes paid on behalf of employees for shares withheld
(19.5
)
 
—

 
(0.3
)
 
—

 
(19.8
)
Contributions from consolidated affiliates
—

 
—

 
20.8

 
—

 
20.8

Other
1.1

 
—

 
(0.7
)
 
—

 
0.4

Change in intercompany advances
313.8

 
(278.6
)
 
(35.2
)
 
—

 
—

Net cash provided by (used in) financing activities
5.4

 
(285.4
)

(129.8
)

51.0

 
(358.8
)
Increase (decrease) in cash and cash equivalents
13.7

 
1.3


(1.1
)

—

 
13.9

Cash and cash equivalents at beginning of year
20.6

 
1.6

 
18.3

 
—

 
40.5

Cash and cash equivalents at end of year
$
34.3

 
$
2.9


$
17.2


$
—

 
$
54.4

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

 
$
—

 
$
—

 
$
—

 
$
319.4








 
For the Year Ended December 31, 2016
 
Encompass Health Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
Encompass Health Consolidated
 
(In Millions)
Net cash provided by operating activities
$
65.8

 
$
327.4

 
$
241.2

 
$
—

 
$
634.4

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Acquisition of businesses, net of cash acquired
—

 
—

 
(48.1
)
 
—

 
(48.1
)
Purchases of property and equipment
(21.8
)
 
(77.4
)
 
(78.5
)
 
—

 
(177.7
)
Additions to capitalized software costs
(22.8
)
 
(0.2
)
 
(2.2
)
 
—

 
(25.2
)
Proceeds from disposal of assets
—

 
0.7

 
23.2

 
—

 
23.9

Purchases of restricted investments
—

 
—

 
(1.3
)
 
—

 
(1.3
)
Net change in restricted cash
—

 
—

 
(15.1
)
 
—

 
(15.1
)
Funding of intercompany note receivable
(22.5
)
 
—

 
—

 
22.5

 
—

Proceeds from repayment of intercompany note receivable
52.0

 
—

 
—

 
(52.0
)
 
—

Other
(3.7
)
 
(0.2
)
 
2.3

 
—

 
(1.6
)
Net cash provided by investing activities of discontinued operations
0.1

 
—

 
—

 
—

 
0.1

Net cash used in investing activities
(18.7
)
 
(77.1
)
 
(119.7
)
 
(29.5
)
 
(245.0
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 


Principal payments on debt, including pre-payments
(198.5
)
 
(1.3
)
 
(2.3
)
 
—

 
(202.1
)
Principal borrowings on intercompany notes payable
—

 
—

 
22.5

 
(22.5
)
 
—

Principal payments on intercompany notes payable
—

 
—

 
(52.0
)
 
52.0

 
—

Borrowings on revolving credit facility
335.0

 
—

 
—

 
—

 
335.0

Payments on revolving credit facility
(313.0
)
 
—

 
—

 
—

 
(313.0
)
Principal payments under capital lease obligations
(0.1
)
 
(5.9
)
 
(7.3
)
 
—

 
(13.3
)
Repurchases of common stock, including fees and expenses
(65.6
)
 
—

 
—

 
—

 
(65.6
)
Dividends paid on common stock
(83.8
)
 
—

 
—

 
—

 
(83.8
)
Distributions paid to noncontrolling interests of consolidated affiliates
—

 
—

 
(64.9
)
 
—

 
(64.9
)
Taxes paid on behalf of employees for shares withheld
(11.6
)
 
—

 
—

 
—

 
(11.6
)
Contributions from consolidated affiliates
—

 
—

 
3.5

 
—

 
3.5

Other
6.9

 
—

 
(1.6
)
 
—

 
5.3

Change in intercompany advances
263.0

 
(242.7
)
 
(20.3
)
 
—

 
—

Net cash used in financing activities
(67.7
)
 
(249.9
)

(122.4
)

29.5

 
(410.5
)
(Decrease) increase in cash and cash equivalents
(20.6
)
 
0.4


(0.9
)

—

 
(21.1
)
Cash and cash equivalents at beginning of year
41.2

 
1.2

 
19.2

 
—

 
61.6

Cash and cash equivalents at end of year
$
20.6

 
$
1.6


$
18.3


$
—

 
$
40.5






 
For the Year Ended December 31, 2015
 
Encompass Health Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
Encompass Health Consolidated
 
(In Millions)
Net cash provided by operating activities
$
59.7

 
$
214.6

 
$
227.7

 
$
—

 
$
502.0

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Acquisition of businesses, net of cash acquired
(954.6
)
 
—

 
(30.5
)
 
—

 
(985.1
)
Purchases of property and equipment
(15.9
)
 
(62.0
)
 
(50.5
)
 
—

 
(128.4
)
Additions to capitalized software costs
(24.5
)
 
(0.4
)
 
(3.2
)
 
—

 
(28.1
)
Proceeds from disposal of assets
—

 
3.5

 
0.5

 
—

 
4.0

Proceeds from sale of nonrestricted marketable securities
12.8

 
—

 
—

 
—

 
12.8

Purchases of restricted investments
—

 
—

 
(7.1
)
 
—

 
(7.1
)
Net change in restricted cash
—

 
—

 
2.7

 
—

 
2.7

Funding of intercompany note receivable
(2.0
)
 
—

 
—

 
2.0

 
—

Proceeds from repayment of intercompany note receivable
24.0

 
—

 
—

 
(24.0
)
 
—

Other
(0.5
)
 
(1.9
)
 
1.3

 
—

 
(1.1
)
Net cash provided by investing activities of
discontinued operations
0.5

 
—

 
—

 
—

 
0.5

Net cash used in investing activities
(960.2
)
 
(60.8
)

(86.8
)

(22.0
)
 
(1,129.8
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 


Principal borrowings on term loan facilities
250.0

 
—

 
—

 
—

 
250.0

Proceeds from bond issuance
1,400.0

 
—

 
—

 
—

 
1,400.0

Principal payments on debt, including pre-payments
(595.0
)
 
(1.6
)
 
(0.8
)
 
—

 
(597.4
)
Principal borrowings on intercompany notes payable
—

 
—

 
2.0

 
(2.0
)
 
—

Principal payments on intercompany notes payable
—

 
—

 
(24.0
)
 
24.0

 
—

Borrowings on revolving credit facility
540.0

 
—

 
—

 
—

 
540.0

Payments on revolving credit facility
(735.0
)
 
—

 
—

 
—

 
(735.0
)
Principal payments under capital lease obligations
(0.3
)
 
(4.5
)
 
(6.2
)
 
—

 
(11.0
)
Debt amendment and issuance costs
(31.9
)
 
—

 
—

 
—

 
(31.9
)
Repurchases of common stock, including fees and expenses
(45.3
)
 
—

 
—

 
—

 
(45.3
)
Dividends paid on common stock
(77.2
)
 
—

 
—

 
—

 
(77.2
)
Distributions paid to noncontrolling interests of consolidated affiliates
—

 
—

 
(54.4
)
 
—

 
(54.4
)
Taxes paid on behalf of employees for shares withheld
(17.2
)
 
—

 
—

 
—

 
(17.2
)
Contributions from consolidated affiliates
—

 
—

 
3.0

 
—

 
3.0

Other
(0.9
)
 
1.5

 
(1.5
)
 
—

 
(0.9
)
Change in intercompany advances
212.6

 
(149.4
)
 
(63.2
)
 
—

 
—

Net cash provided by (used in) financing activities
899.8

 
(154.0
)

(145.1
)

22.0

 
622.7

Decrease in cash and cash equivalents
(0.7
)
 
(0.2
)

(4.2
)

—

 
(5.1
)
Cash and cash equivalents at beginning of year
41.9

 
1.4

 
23.4

 
—

 
66.7

Cash and cash equivalents at end of year
$
41.2

 
$
1.2


$
19.2


$
—

 
$
61.6

 
 
 
 
 
 
 
 
 
 
Supplemental schedule of noncash financing activities:
 
 
 
 
 
 
 
 
 
Conversion of preferred stock to common stock
$
93.2

 
$
—

 
$
—

 
$
—

 
$
93.2

Intercompany note activity
$
(183.5
)
 
$
—

 
$
183.5

 
$
—

 
$
—