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Segment Reporting | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting: We manage our operations using one operating segment which is also our reportable segment: inpatient rehabilitation. Our national network of inpatient rehabilitation hospitals provide specialized rehabilitative treatment on an inpatient basis. Our inpatient rehabilitation hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations. The accounting policies of our reportable segment are the same as those described in Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements accompanying the 2024 Form 10‑K. All revenues for our services are generated through external customers. See Note 1, Basis of Presentation, “Net Operating Revenues,” for the disaggregation of our revenues. Our chief operating decision maker (“CODM”) is the chief executive officer. Our CODM evaluates the performance and allocates resources based on adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”). Our CODM primarily considers forecast-to-budget variances and current year actuals to prior year actuals variances to assess performance and to help inform operating decisions, including allocating resources. Selected financial information, including significant segment expenses, for our reportable segment is as follows (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net operating revenues | $ | 1,477.5 |  |  | $ | 1,351.0 |  |  | $ | 4,390.6 |  |  | $ | 3,968.2 |
Less: |  |  |  |  |  |  |
Salaries and benefits | 784.8 |  |  | 732.1 |  |  | 2,314.8 |  |  | 2,144.2 |
Other operating expenses | 229.2 |  |  | 201.8 |  |  | 660.0 |  |  | 584.9 |
Occupancy costs | 14.9 |  |  | 14.4 |  |  | 44.5 |  |  | 42.6 |
Supplies | 64.6 |  |  | 60.6 |  |  | 189.9 |  |  | 176.7 |
General and administrative expenses | 39.6 |  |  | 39.1 |  |  | 124.6 |  |  | 114.3 |
Net income attributable to noncontrolling interests | 48.1 |  |  | 38.9 |  |  | 135.9 |  |  | 104.9 |
Other segment items(1) | (3.8) |  |  | (5.2) |  |  | (11.4) |  |  | (13.5) |
Adjusted EBITDA | $ | 300.1 |  |  | $ | 269.3 |  |  | $ | 932.3 |  |  | $ | 814.1 |
(1)Includes interest and dividend income, investment gain or loss, and equity in net income of nonconsolidated affiliates. Segment reconciliation (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Adjusted EBITDA | $ | 300.1 |  |  | $ | 269.3 |  |  | $ | 932.3 |  |  | $ | 814.1 |
Stock-based compensation | (14.3) |  |  | (12.9) |  |  | (38.1) |  |  | (35.8) |
Depreciation and amortization | (82.4) |  |  | (78.4) |  |  | (241.5) |  |  | (221.6) |
Loss on disposal or impairment of assets | (1.9) |  |  | (0.6) |  |  | (2.4) |  |  | (11.3) |
Loss on early extinguishment of debt | — |  |  | (0.4) |  |  | — |  |  | (0.4) |
Interest expense and amortization of debt discounts and fees | (30.8) |  |  | (34.9) |  |  | (93.0) |  |  | (104.4) |
Net income attributable to noncontrolling interests | 48.1 |  |  | 38.9 |  |  | 135.9 |  |  | 97.6 |
Change in fair market value of marketable securities | 1.1 |  |  | 2.8 |  |  | 2.1 |  |  | 2.7 |
Asset impairment impact on noncontrolling interests | — |  |  | — |  |  | — |  |  | 7.3 |
Income from continuing operations before income tax expense | $ | 219.9 |  |  | $ | 183.8 |  |  | $ | 695.3 |  |  | $ | 548.2 |
Additional detail regarding the revenues of our operating segment by service line follows (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net operating revenues: |  |  |  |  |  |  |
Inpatient | $ | 1,427.3 |  |  | $ | 1,316.2 |  |  | $ | 4,258.7 |  |  | $ | 3,864.4 |
Outpatient and other | 50.2 |  |  | 34.8 |  |  | 131.9 |  |  | 103.8 |
Net operating revenues | $ | 1,477.5 |  |  | $ | 1,351.0 |  |  | $ | 4,390.6 |  |  | $ | 3,968.2 |
Equity in net income of nonconsolidated affiliates and the Provision for income tax expense are reported on our condensed consolidated statements of operations. Segment assets are reported on our condensed consolidated balance sheets as Total assets. Segment capital expenditures are reported on our condensed consolidated statements of cash flows as Purchases of property, equipment, and intangible assets.

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- Definition The entire disclosure for reporting segments including data and tables. 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