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Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Weighted-Average Assumptions Used to Determine Fair Value of Stock Options

The fair values of the options granted during the years ended December 31, 2022, 2021, and 2020 have been estimated at the grant date using the Black-Scholes option-pricing model with the following weighted-average assumptions:

			For the Year Ended December 31,
			2022						2021						2020
Expected volatility			28.3		%				28.4		%				24.8		%
Risk-free interest rate			1.7		%				1.1		%				1.0		%
Expected life (years)			7.8						7.1						7.1
Dividend yield			1.9		%				1.9		%				2.0		%

Schedule of Stock Option Activity

A summary of our stock option activity and related information is as follows:

			Shares (In Thousands)						Weighted- Average Exercise Price per Share						Weighted- Average Remaining Life (Years)						Aggregate Intrinsic Value (In Millions)
Outstanding, December 31, 2021			711						$	54.33
Granted (1)			117						66.39
Exercised (1)			(47)						20.60
Enhabit spin-off adjustment (2)			55						51.65
Outstanding, December 31, 2022			836						47.12						5.6						$	11.7
Exercisable, December 31, 2022			621						42.65						4.6						11.2

(1) Options activity represents historical grant values prior to the Spin Off.

(2) In connection with the Spin Off, all outstanding Encompass Health stock options (whether vested or unvested) were converted into adjusted Encompass Health awards for current and former Encompass Health employees or Enhabit awards for Enhabit employees. Such adjusted awards preserved the same intrinsic value and general terms and conditions (including vesting) as were in place immediately prior to the adjustments.

Schedule of Restricted Stock Activity

A summary of our issued restricted stock awards is as follows (share information in thousands):

			Shares						Weighted-Average Grant Date Fair Value
Nonvested shares at December 31, 2021			454						$	74.46
Granted (1)			425						74.08
Vested (1)			(306)						70.92
Forfeited (2)			(31)						71.35
Enhabit spin-off adjustment (3)			(16)						62.87
Nonvested shares at December 31, 2022			526						63.35

(1) RSA activity represents historical grant values prior to the Spin Off.

(2) Forfeiture activity prior to the Spin Off represents historical grant values, while the post-spin forfeitures reflects the impact of Spin Off.

(3) In connection with the Spin Off, all outstanding RSAs (whether vested or unvested) were converted into adjusted Encompass Health awards for current Encompass Health employees or Enhabit awards for Enhabit employees. Such adjusted awards preserved the same intrinsic value and general terms and conditions (including vesting) as were in place immediately prior to the adjustments.

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Tabular disclosure of the changes in outstanding nonvested restricted stock shares.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
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-Section 50
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Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value.

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Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions.

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