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Segment Reporting (Tables)
6 Months Ended
Jun. 30, 2020
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 June 30,
 
Six Months Ended June 30,
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
 
2020
 
2019
Net operating revenues
$
824.5

 
$
873.9

 
$
1,733.7

 
$
1,744.0

 
$
249.6

 
$
261.1

 
$
522.4

 
$
515.0

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inpatient rehabilitation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
451.4

 
443.6

 
933.7

 
888.6

 

 

 

 

Other operating expenses
124.3

 
127.2

 
259.0

 
254.8

 

 

 

 

Supplies
42.0

 
36.7

 
81.6

 
72.3

 

 

 

 

Occupancy costs
15.4

 
16.3

 
30.7

 
32.1

 

 

 

 

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

 

 

 

 
136.7

 
119.9

 
267.6

 
236.4

Support and overhead costs

 

 

 

 
98.3

 
89.7

 
198.5

 
178.5

 
633.1

 
623.8

 
1,305.0

 
1,247.8

 
235.0

 
209.6

 
466.1

 
414.9

Other income
(3.4
)
 
(1.9
)
 
(1.8
)
 
(4.7
)
 

 

 

 

Equity in net income of nonconsolidated affiliates
(0.6
)
 
(1.4
)
 
(1.2
)
 
(3.5
)
 
(0.1
)
 
(0.4
)
 
(0.3
)
 
(0.8
)
Noncontrolling interests
15.1

 
19.5

 
35.9

 
40.5

 
(0.3
)
 
2.8

 
0.6

 
5.5

Segment Adjusted EBITDA
$
180.3

 
$
233.9

 
$
395.8

 
$
463.9

 
$
15.0

 
$
49.1

 
$
56.0

 
$
95.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
$
88.9

 
$
92.0

 
$
172.2

 
$
162.4

 
$
0.6

 
$
3.5

 
$
2.1

 
$
8.0


Reconciliation of Assets from Segment to Consolidated
 
June 30, 2020
 
December 31, 2019
Total assets for reportable segments
$
6,562.8

 
$
6,114.2

Reclassification of deferred income tax liabilities to net deferred income tax assets
(60.3
)
 
(33.5
)
Total consolidated assets
$
6,502.5

 
$
6,080.7


 
Inpatient Rehabilitation
 
Home Health and Hospice
 
Encompass Health Consolidated
As of June 30, 2020
 
 
 
 
 
Total assets
$
4,921.4

 
$
1,641.4

 
$
6,502.5

Investments in and advances to nonconsolidated affiliates
1.5

 
3.9

 
5.4

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


Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense
Segment reconciliations (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Total Segment Adjusted EBITDA
$
195.3

 
$
283.0

 
$
451.8

 
$
559.3

General and administrative expenses
(43.0
)
 
(77.1
)
 
(78.6
)
 
(130.5
)
Depreciation and amortization
(60.7
)
 
(52.7
)
 
(119.5
)
 
(105.2
)
Loss on disposal or impairment of assets
(3.0
)
 
(1.3
)
 
(3.1
)
 
(2.4
)
Government, class action, and related settlements

 

 
(2.8
)
 

Loss on early extinguishment of debt

 
(2.3
)
 

 
(2.3
)
Interest expense and amortization of debt discounts and fees
(45.8
)
 
(37.7
)
 
(89.0
)
 
(74.9
)
Net income attributable to noncontrolling interests
14.8

 
19.7

 
36.5

 
42.6

SARs mark-to-market impact on noncontrolling interests

 
2.6

 

 
3.4

Change in fair market value of equity securities
2.4

 
0.3

 
(0.1
)
 
1.2

Gain on consolidation of Treasure Coast

 

 
2.2

 

Payroll taxes on SARs exercise

 

 
(1.5
)
 
(0.2
)
Income from continuing operations before income tax expense
$
60.0

 
$
134.5

 
$
195.9

 
$
291.0


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 June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Inpatient rehabilitation:
 
 
 
 
 
 
 
Inpatient
$
808.0

 
$
851.8

 
$
1,698.0

 
$
1,699.4

Outpatient and other
16.5

 
22.1

 
35.7

 
44.6

Total inpatient rehabilitation
824.5

 
873.9

 
1,733.7

 
1,744.0

Home health and hospice:
 
 
 
 
 
 
 
Home health
201.8

 
222.7

 
426.6

 
442.2

Hospice
47.8

 
38.4

 
95.8

 
72.8

Total home health and hospice
249.6

 
261.1

 
522.4

 
515.0

Total net operating revenues
$
1,074.1

 
$
1,135.0

 
$
2,256.1

 
$
2,259.0