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Segment Reporting (Tables)
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Selected financial information for our reportable segments is as follows (in millions):
 
Inpatient Rehabilitation
 
Home Health and Hospice
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Net operating revenues
$
872.3

 
$
825.6

 
$
2,616.3

 
$
2,500.5

 
$
289.3

 
$
242.0

 
$
804.3

 
$
680.8

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inpatient rehabilitation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
459.1

 
423.6

 
1,347.7

 
1,264.3

 

 

 

 

Other operating expenses
131.3

 
124.3

 
386.1

 
374.1

 

 

 

 

Supplies
37.0

 
33.6

 
109.3

 
104.2

 

 

 

 

Occupancy costs
17.0

 
15.9

 
49.1

 
47.4

 

 

 

 

Home health and hospice:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services sold (excluding depreciation and amortization)

 

 

 

 
136.4

 
114.6

 
372.8

 
322.3

Support and overhead costs

 

 

 

 
99.6

 
82.4

 
278.1

 
235.2

 
644.4

 
597.4

 
1,892.2

 
1,790.0

 
236.0

 
197.0

 
650.9

 
557.5

Other income
(1.8
)
 
(1.8
)
 
(6.5
)
 
(3.5
)
 

 

 

 
(0.5
)
Equity in net income of nonconsolidated affiliates
(1.0
)
 
(1.9
)
 
(4.5
)
 
(5.5
)
 
(0.2
)
 
(0.2
)
 
(1.0
)
 
(0.9
)
Noncontrolling interests
20.1

 
19.0

 
60.6

 
59.3

 
2.7

 
2.0

 
8.2

 
6.4

Segment Adjusted EBITDA
$
210.6

 
$
212.9

 
$
674.5

 
$
660.2

 
$
50.8

 
$
43.2

 
$
146.2

 
$
118.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
$
103.6

 
$
64.5

 
$
266.0

 
$
181.1

 
$
3.1

 
$
1.7

 
$
11.1

 
$
7.7


Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense
Segment reconciliations (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Total segment Adjusted EBITDA
$
261.4

 
$
256.1

 
$
820.7

 
$
778.5

General and administrative expenses
(52.5
)
 
(49.9
)
 
(183.0
)
 
(165.9
)
Depreciation and amortization
(55.1
)
 
(51.2
)
 
(160.3
)
 
(146.8
)
(Loss) gain on disposal of assets
(0.9
)
 
1.0

 
(3.3
)
 
(2.2
)
Loss on early extinguishment of debt

 

 
(2.3
)
 

Interest expense and amortization of debt discounts and fees
(40.3
)
 
(37.3
)
 
(115.2
)
 
(110.6
)
Net income attributable to noncontrolling interests
21.9

 
20.7

 
64.5

 
63.5

SARs mark-to-market impact on noncontrolling interests
0.9

 
0.3

 
4.3

 
2.2

Change in fair market value of equity securities

 
(0.1
)
 
1.2

 
(1.1
)
Gain on consolidation of Yuma
19.2

 

 
19.2

 

Payroll taxes on SARs exercise
(0.8
)
 

 
(1.0
)
 

Income from continuing operations before income tax expense
$
153.8

 
$
139.6

 
$
444.8

 
$
417.6


Reconciliation of Assets from Segment to Consolidated
 
September 30, 2019
 
December 31, 2018
Total assets for reportable segments
$
6,420.3

 
$
5,215.5

Reclassification of deferred income tax liabilities to net deferred income tax assets
(33.5
)
 
(40.5
)
Total consolidated assets
$
6,386.8

 
$
5,175.0


 
Inpatient Rehabilitation
 
Home Health and Hospice
 
Encompass Health Consolidated
As of September 30, 2019
 
 
 
 
 
Total assets
$
4,796.9

 
$
1,623.4

 
$
6,386.8

Investments in and advances to nonconsolidated affiliates
2.7

 
5.3

 
8.0

As of December 31, 2018
 
 
 
 
 
Total assets
$
3,900.9

 
$
1,314.6

 
$
5,175.0

Investments in and advances to nonconsolidated affiliates
9.5

 
2.7

 
12.2


Reconciliation of Revenue from Segments to Consolidated
Additional detail regarding the revenues of our operating segments by service line follows (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Inpatient rehabilitation:
 
 
 
 
 
 
 
Inpatient
$
850.6

 
$
798.4

 
$
2,550.0

 
$
2,425.1

Outpatient and other
21.7

 
27.2

 
66.3

 
75.4

Total inpatient rehabilitation
872.3

 
825.6

 
2,616.3

 
2,500.5

Home health and hospice:
 
 
 
 
 
 
 
Home health
238.9

 
209.2

 
681.1

 
599.3

Hospice
50.4

 
32.8

 
123.2

 
81.5

Total home health and hospice
289.3

 
242.0

 
804.3

 
680.8

Total net operating revenues
$
1,161.6

 
$
1,067.6

 
$
3,420.6

 
$
3,181.3