Cash and Marketable Securities

12 Months Ended

Dec. 31, 2020

Cash and Cash Equivalents [Abstract]

Cash and Marketable Securities:

The components of our investments as of December 31, 2020 are as follows (in millions):


	Cash & Cash Equivalents		Restricted Cash		Restricted Marketable Securities		Total
Cash	$	224.0	$	86.9	$	—	$	310.9
Equity securities	—		—		72.6		72.6

Total	$	224.0	$	86.9	$	72.6	$	383.5

The components of our investments as of December 31, 2019 are as follows (in millions):


	Cash & Cash Equivalents		Restricted Cash		Restricted Marketable Securities		Total
Cash	$	94.8	$	64.8	$	—	$	159.6
Equity securities	—		—		63.5		63.5
Debt securities	—		—		12.6		12.6
Total	$	94.8	$	64.8	$	76.1	$	235.7

Restricted Cash—

As of December 31, 2020 and 2019, Restricted cash consisted of the following (in millions):


	As of December 31,
	2020		2019
Current:
Affiliate cash	$	17.5	$	16.0
Self-insured captive funds	47.9		41.4

	65.4		57.4
Noncurrent:

Self-insured captive funds	21.5		7.4

Total restricted cash	$	86.9	$	64.8

Affiliate cash represents cash accounts maintained by joint ventures in which we participate where one or more of our external partners requested, and we agreed, that the joint venture’s cash not be commingled with other corporate cash accounts and be used only to fund the operations of those joint ventures. Self-insured captive funds represent cash held at our wholly owned insurance captive, HCS, Ltd., as discussed in Note 11, Self-Insured Risks. These funds are committed to pay third-party administrators for claims incurred and are restricted by insurance regulations and requirements. These funds cannot be used for purposes outside HCS without the permission of the Cayman Islands Monetary Authority.

The classification of restricted cash held by HCS as current or noncurrent depends on the classification of the corresponding claims liability.

Marketable Securities—

Restricted marketable securities at both balance sheet dates represent restricted assets held at HCS. HCS insures a substantial portion of Encompass Health’s professional liability, workers’ compensation, and other insurance claims. These funds are committed for payment of claims incurred, and the classification of these marketable securities as current or noncurrent depends on the classification of the corresponding claims liability. As of December 31, 2020 and 2019, $72.6

million and $76.1 million, respectively, of restricted marketable securities are included in Other long-term assets in our consolidated balance sheets. During the years ended December 31, 2020, 2019, and 2018, $0.4 million, $1.2 million, and $(1.7) million, respectively, of unrealized net gains (losses) were recognized in our consolidated statements of comprehensive income on marketable securities still held at the reporting date.

A summary of our available-for-sale marketable securities as of December 31, 2019 is as follows (in millions):


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities	$	12.6	$	—	$	—	$	12.6

Cost in the above tables includes adjustments made to the cost basis of our debt securities for other-than-temporary impairments. During the years ended December 31, 2020, 2019, and 2018, we did not record any impairment charges related to our restricted marketable securities.

Investing information related to our available-for-sale marketable securities is as follows (in millions):


	For the Year Ended December 31,
	2020		2019		2018
Proceeds from sales and maturities of available-for-sale marketable securities	$	12.6	$	6.4	$	—

Our portfolio of marketable securities is comprised of investments in mutual funds that hold investments in a variety of industries and geographies. As discussed in Note 1, Summary of Significant Accounting Policies, “Marketable Securities,” when our portfolio included marketable securities with unrealized losses that are not deemed to be other-than-temporarily impaired, we examined the severity and duration of the impairments in relation to the cost of the individual investments. We also considered the industry and geography in which each investment is held and the near-term prospects for a recovery in each.