Earnings per Common Share (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Computation of Basic and Diluted Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Basic:
Numerator:
Income from continuing operations	$	85.5	$	102.1	$	231.7	$	310.9
Less: Net income attributable to noncontrolling interests included in continuing operations	(21.6)		(26.3)		(65.5)		(79.6)
Less: Income from continuing operations allocated to participating securities	(0.3)		(0.3)		(0.6)		(0.9)

Income from continuing operations attributable to Encompass Health common shareholders	63.6		75.5		165.6		230.4
(Loss) income from discontinued operations, net of tax	(18.5)		24.6		16.7		90.6
Less: Net income attributable to noncontrolling interests included in discontinued operations	—		(0.4)		(1.3)		(1.3)
Less: Income from discontinued operations allocated to participating securities	—		(0.1)		(0.1)		(0.5)
(Loss) income from discontinued operations attributable to Encompass Health common shareholders	(18.5)		24.1		15.3		88.8
Net income attributable to Encompass Health common shareholders	$	45.1	$	99.6	$	180.9	$	319.2
Denominator:
Basic weighted average common shares outstanding	99.2		99.0		99.2		99.0
Basic earnings per share attributable to Encompass Health common shareholders:
Continuing operations	$	0.64	$	0.76	$	1.67	$	2.32
Discontinued operations	(0.19)		0.24		0.15		0.90
Net income	$	0.45	$	1.00	$	1.82	$	3.22

Diluted:
Numerator:
Income from continuing operations	$	85.5	$	102.1	$	231.7	$	310.9
Less: Net income attributable to noncontrolling interests included in continuing operations	(21.6)		(26.3)		(65.5)		(79.6)


Income from continuing operations attributable to Encompass Health common shareholders	63.9		75.8		166.2		231.3
(Loss) income from discontinued operations, net of tax	(18.5)		24.6		16.7		90.6
Less: Net income attributable to noncontrolling interests included in discontinued operations	—		(0.4)		(1.3)		(1.3)
(Loss) income from discontinued operations attributable to Encompass Health common shareholders	(18.5)		24.2		15.4		89.3
Net income attributable to Encompass Health common shareholders	$	45.4	$	100.0	$	181.6	$	320.6
Denominator:
Diluted weighted average common shares outstanding	100.5		100.2		100.3		100.1
Diluted earnings per share attributable to Encompass Health common shareholders:
Continuing operations	$	0.63	$	0.76	$	1.66	$	2.31
Discontinued operations	(0.18)		0.24		0.15		0.89
Net income	$	0.45	$	1.00	$	1.81	$	3.20

Schedule of Reconciliation of Weighted Average Number of Shares Outstanding

The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
Basic weighted average common shares outstanding	99.2	99.0	99.2	99.0


Restricted stock awards, dilutive stock options, and restricted stock units	1.3	1.2	1.1	1.1
Diluted weighted average common shares outstanding	100.5	100.2	100.3	100.1