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v3.19.3.a.u2

Segment Reporting (Tables) | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Schedule of Selected Financial Information of Reportable Segments | Selected financial information for our reportable segments is as follows (in millions):
| Inpatient Rehabilitation |  | Home Health and Hospice
| For the Year Ended December 31, |  | For the Year Ended December 31,
| 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Net operating revenues | $ | 3,513.0 |  |  | $ | 3,346.2 |  |  | $ | 3,141.3 |  |  | $ | 1,092.0 |  |  | $ | 931.1 |  |  | $ | 772.6 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |
Inpatient rehabilitation: |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits | 1,813.1 |  |  | 1,701.5 |  |  | 1,603.8 |  |  | — |  |  | — |  |  | — |
Other operating expenses | 521.9 |  |  | 502.3 |  |  | 462.5 |  |  | — |  |  | — |  |  | — |
Supplies | 147.0 |  |  | 140.6 |  |  | 135.7 |  |  | — |  |  | — |  |  | — |
Occupancy costs | 64.8 |  |  | 63.8 |  |  | 61.9 |  |  | — |  |  | — |  |  | — |
Home health and hospice: |  |  |  |  |  |  |  |  |  |  |
Cost of services sold (excluding depreciation and amortization) | — |  |  | — |  |  | — |  |  | 506.2 |  |  | 438.4 |  |  | 363.3 |
Support and overhead costs | — |  |  | — |  |  | — |  |  | 381.7 |  |  | 323.5 |  |  | 277.2 |
| 2,546.8 |  |  | 2,408.2 |  |  | 2,263.9 |  |  | 887.9 |  |  | 761.9 |  |  | 640.5 |
Other income | (10.5 | ) |  | (3.6 | ) |  | (4.1 | ) |  | — |  |  | (0.5 | ) |  | — |
Equity in net income of nonconsolidated affiliates | (5.5 | ) |  | (7.5 | ) |  | (7.3 | ) |  | (1.2 | ) |  | (1.2 | ) |  | (0.7 | )
Noncontrolling interests | 82.6 |  |  | 77.2 |  |  | 67.6 |  |  | 9.5 |  |  | 8.5 |  |  | 6.9 |
Segment Adjusted EBITDA | $ | 899.6 |  |  | $ | 871.9 |  |  | $ | 821.2 |  |  | $ | 195.8 |  |  | $ | 162.4 |  |  | $ | 125.9 |
Capital expenditures | $ | 391.4 |  |  | $ | 264.6 |  |  | $ | 238.0 |  |  | $ | 12.7 |  |  | $ | 11.6 |  |  | $ | 10.7 |
Reconciliation of Assets from Segment to Consolidated |
| Inpatient Rehabilitation |  | Home Health and Hospice |  | Encompass Health Consolidated
As of December 31, 2019 |  |  |  |  |
Total assets | $ | 4,501.4 |  |  | $ | 1,612.8 |  |  | $ | 6,080.7 |
Investments in and advances to nonconsolidated affiliates | 2.0 |  |  | 5.4 |  |  | 7.4 |
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 |
| As of December 31, 2019 |  | As of December 31, 2018
Total assets for reportable segments | $ | 6,114.2 |  |  | $ | 5,215.5 |
Reclassification of noncurrent deferred income tax liabilities to net noncurrent deferred income tax assets | (33.5 | ) |  | (40.5 | )
Total consolidated assets | $ | 6,080.7 |  |  | $ | 5,175.0 |
Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense | Segment reconciliations (in millions):
| For the Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Total segment Adjusted EBITDA | $ | 1,095.4 |  |  | $ | 1,034.3 |  |  | $ | 947.1 |
General and administrative expenses | (247.0 | ) |  | (220.2 | ) |  | (171.7 | )
Depreciation and amortization | (218.7 | ) |  | (199.7 | ) |  | (183.8 | )
Loss on disposal of assets | (11.1 | ) |  | (5.7 | ) |  | (4.6 | )
Government, class action, and related settlements | — |  |  | (52.0 | ) |  | — |
Loss on early extinguishment of debt | (7.7 | ) |  | — |  |  | (10.7 | )
Interest expense and amortization of debt discounts and fees | (159.7 | ) |  | (147.3 | ) |  | (154.4 | )
Net income attributable to noncontrolling interests | 87.1 |  |  | 83.1 |  |  | 79.1 |
SARs mark-to-market impact on noncontrolling interests | 5.0 |  |  | 2.6 |  |  | — |
Change in fair market value of equity securities | 0.8 |  |  | (1.9 | ) |  | — |
Tax reform impact on noncontrolling interests | — |  |  | — |  |  | (4.6 | )
Gain on consolidation of Yuma | 19.2 |  |  | — |  |  | — |
Payroll taxes on SARs exercise | (1.0 | ) |  | — |  |  | — |
Income from continuing operations before income tax expense | $ | 562.3 |  |  | $ | 493.2 |  |  | $ | 496.4 |
Reconciliation of Revenue from Segments to Consolidated | Additional detail regarding the revenues of our operating segments by service line follows (in millions):
| For the Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Inpatient rehabilitation: |  |  |  |  |
Inpatient | $ | 3,423.5 |  |  | $ | 3,247.9 |  |  | $ | 3,039.3 |
Outpatient and other | 89.5 |  |  | 98.3 |  |  | 102.0 |
Total inpatient rehabilitation | 3,513.0 |  |  | 3,346.2 |  |  | 3,141.3 |
Home health and hospice: |  |  |  |  |
Home health | 918.0 |  |  | 814.6 |  |  | 702.4 |
Hospice | 174.0 |  |  | 116.5 |  |  | 70.2 |
Total home health and hospice | 1,092.0 |  |  | 931.1 |  |  | 772.6 |
Total net operating revenues | $ | 4,605.0 |  |  | $ | 4,277.3 |  |  | $ | 3,913.9 |

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