Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HEALTHSOUTH CORP | |
Entity Central Index Key | 785,161 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 89,796,334 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net operating revenues | $ 926.8 | $ 778.6 | $ 2,757.3 | $ 2,283.6 |
Less: Provision for doubtful accounts | (14.8) | (10.7) | (46.7) | (33.2) |
Net operating revenues less provision for doubtful accounts | 912 | 767.9 | 2,710.6 | 2,250.4 |
Operating expenses: | ||||
Salaries and benefits | 497.4 | 417.1 | 1,469.6 | 1,204 |
Other operating expenses | 126.3 | 106.7 | 367 | 314.1 |
Occupancy costs | 17.6 | 12.5 | 53.5 | 37.1 |
Supplies | 34.8 | 31 | 104.2 | 94.1 |
General and administrative expenses | 30.3 | 30.6 | 96.6 | 97.3 |
Depreciation and amortization | 43.5 | 33.7 | 128.8 | 98.3 |
Government, class action, and related settlements | 0 | 0 | 0 | 8 |
Professional fees—accounting, tax, and legal | 0 | 0.4 | 1.9 | 2.7 |
Total operating expenses | 749.9 | 632 | 2,221.6 | 1,855.6 |
Loss on early extinguishment of debt | 2.6 | 0 | 7.4 | 20 |
Interest expense and amortization of debt discounts and fees | 42.5 | 35.6 | 130.5 | 98.3 |
Other income | (0.8) | (0.7) | (2.1) | (4.2) |
Equity in net income of nonconsolidated affiliates | (2.5) | (2.4) | (7.3) | (6.3) |
Income from continuing operations before income tax expense | 120.3 | 103.4 | 360.5 | 287 |
Provision for income tax expense | 42.1 | 35.9 | 124.2 | 98.4 |
Income from continuing operations | 78.2 | 67.5 | 236.3 | 188.6 |
(Loss) income from discontinued operations, net of tax | (0.1) | 0.3 | (0.3) | (1.6) |
Net income | 78.1 | 67.8 | 236 | 187 |
Less: Net income attributable to noncontrolling interests | (16.4) | (17.1) | (53.7) | (50.9) |
Net income attributable to HealthSouth | 61.7 | 50.7 | 182.3 | 136.1 |
Less: Convertible perpetual preferred stock dividends | 0 | 0 | 0 | (1.6) |
Net income attributable to HealthSouth common shareholders | $ 61.7 | $ 50.7 | $ 182.3 | $ 134.5 |
Weighted average common shares outstanding: | ||||
Basic (shares) | 89.1 | 90.6 | 89.3 | 89.1 |
Diluted (shares) | 99.4 | 101.5 | 99.5 | 101.4 |
Basic earnings per share attributable to HealthSouth common shareholders: | ||||
Continuing operations (in dollars per share) | $ 0.69 | $ 0.56 | $ 2.03 | $ 1.52 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.02) |
Net Income (in dollars per share) | 0.69 | 0.56 | 2.03 | 1.50 |
Diluted earnings per share attributable to HealthSouth common shareholders: | ||||
Continuing operations (in dollars per share) | 0.64 | 0.52 | 1.90 | 1.43 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.02) |
Net income (in dollars per share) | 0.64 | 0.52 | 1.90 | 1.41 |
Cash dividends per common share (in dollars per share) | $ 0.24 | $ 0.23 | $ 0.70 | $ 0.65 |
Amounts attributable to HealthSouth common shareholders: | ||||
Income from continuing operations | $ 61.8 | $ 50.4 | $ 182.6 | $ 137.7 |
(Loss) income from discontinued operations, net of tax | (0.1) | 0.3 | (0.3) | (1.6) |
Net income attributable to HealthSouth | $ 61.7 | $ 50.7 | $ 182.3 | $ 136.1 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
COMPREHENSIVE INCOME | ||||
Net income | $ 78.1 | $ 67.8 | $ 236 | $ 187 |
Net change in unrealized (loss) gain on available-for-sale securities: | ||||
Unrealized net holding (loss) gain arising during the period | (0.2) | (0.7) | 0.4 | 0.2 |
Reclassifications to net income | 0 | (0.6) | 0 | (1.2) |
Other comprehensive (loss) income before income taxes | (0.2) | (1.3) | 0.4 | (1) |
Provision for income tax benefit (expense) related to other comprehensive income items | 0.1 | 0.5 | (0.2) | 0.4 |
Other comprehensive (loss) income, net of tax | (0.1) | (0.8) | 0.2 | (0.6) |
Comprehensive income | 78 | 67 | 236.2 | 186.4 |
Comprehensive income attributable to noncontrolling interests | (16.4) | (17.1) | (53.7) | (50.9) |
Comprehensive income attributable to HealthSouth | $ 61.6 | $ 49.9 | $ 182.5 | $ 135.5 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Current assets: | |||||
Cash and cash equivalents | $ 76.4 | $ 61.6 | $ 801.6 | $ 66.7 | |
Accounts receivable, net of allowance for doubtful accounts of $52.2 in 2016; $39.3 in 2015 | 419.2 | 410.5 | |||
Other current assets | 170.4 | 126.6 | |||
Total current assets | 666 | 598.7 | |||
Property and equipment, net | 1,353.1 | 1,310.1 | |||
Goodwill | 1,915.6 | 1,890.1 | |||
Intangible assets, net | 410.1 | 419.4 | |||
Deferred income tax assets | 72.6 | 190.8 | |||
Other long-term assets | 213.9 | 197 | |||
Total assets | 4,631.3 | [1] | 4,606.1 | ||
Current liabilities: | |||||
Current portion of long-term debt | 36.8 | 36.8 | |||
Accounts payable | 67.5 | 61.6 | |||
Accrued expenses and other current liabilities | 371.7 | 328 | |||
Total current liabilities | 476 | 426.4 | |||
Long-term debt, net of current portion | 2,974 | 3,134.7 | |||
Other long-term liabilities | 158.1 | 144.6 | |||
Total Liabilities | 3,608.1 | 3,705.7 | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 109.4 | 121.1 | |||
Shareholders’ equity: | |||||
HealthSouth shareholders’ equity | 726.3 | 611.4 | |||
Noncontrolling interests | 187.5 | 167.9 | |||
Total shareholders’ equity | 913.8 | 779.3 | $ 790.2 | $ 619.5 | |
Total liabilities and shareholders' equity | $ 4,631.3 | [1] | $ 4,606.1 | ||
[1] | Our consolidated assets as of September 30, 2016 include total assets of variable interest entities of $258.0 million, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of September 30, 2016 include total liabilities of the variable interest entities of $51.1 million. See Note 3, Variable Interest Entities. |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 52.2 | $ 39.3 |
Total assets of variable interest entities | 258 | |
Total liabilities of variable interest entities | $ 51.1 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests |
Balance at beginning of period at Dec. 31, 2014 | $ 619.5 | $ 1 | $ 2,810.5 | $ (1,879.1) | $ (0.5) | $ (458.7) | $ 146.3 |
Balance at beginning of period (shares) at Dec. 31, 2014 | 87.8 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 176.9 | 136.1 | 40.8 | ||||
Conversion of preferred stock | 93.2 | 93.2 | |||||
Conversion of preferred stock (shares) | 3.3 | ||||||
Receipt of treasury stock | (17.2) | (17.2) | |||||
Receipt of treasury stock (shares) | (0.6) | ||||||
Dividends declared on common stock | (59.1) | (59.1) | |||||
Dividends declared on convertible perpetual preferred stock | (1.6) | (1.6) | |||||
Stock-based compensation | 19 | 19 | |||||
Stock options exercised | 2.2 | 6.6 | (4.4) | ||||
Stock options exercised (shares) | 0.2 | ||||||
Distributions declared | (36.7) | (36.7) | |||||
Capital contributions from consolidated affiliates | 9.5 | 9.5 | |||||
Fair value adjustments to redeemable noncontrolling interests, net of tax | (14.9) | (14.9) | |||||
Other | (0.6) | $ 0.1 | 1.6 | 0 | (0.6) | (1.6) | (0.1) |
Other (shares) | 0.7 | ||||||
Balance at end of period at Sep. 30, 2015 | 790.2 | $ 1.1 | 2,855.3 | (1,743) | (1.1) | (481.9) | 159.8 |
Balance at end of period (shares) at Sep. 30, 2015 | 91.4 | ||||||
Balance at beginning of period at Dec. 31, 2015 | 779.3 | $ 1.1 | 2,834.9 | (1,696) | (1.2) | (527.4) | 167.9 |
Balance at beginning of period (shares) at Dec. 31, 2015 | 90.1 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 224.8 | 182.3 | 42.5 | ||||
Receipt of treasury stock | (9.9) | (9.9) | |||||
Receipt of treasury stock (shares) | (0.4) | ||||||
Dividends declared on common stock | (63.4) | (63.4) | |||||
Stock-based compensation | 16.1 | 16.1 | |||||
Stock options exercised | 1.8 | 6.6 | (4.8) | ||||
Stock options exercised (shares) | 0.3 | ||||||
Distributions declared | (43.1) | (43.1) | |||||
Capital contributions from consolidated affiliates | 17 | 17 | |||||
Fair value adjustments to redeemable noncontrolling interests, net of tax | 10.2 | 10.2 | |||||
Repurchases of common stock in open market | (24.1) | (24.1) | |||||
Repurchases of common stock in open market (shares) | (0.7) | ||||||
Other | 5.1 | 2.4 | 0.2 | (0.7) | 3.2 | ||
Other (shares) | 0.5 | ||||||
Balance at end of period at Sep. 30, 2016 | $ 913.8 | $ 1.1 | $ 2,806.8 | $ (1,513.7) | $ (1) | $ (566.9) | $ 187.5 |
Balance at end of period (shares) at Sep. 30, 2016 | 89.8 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 236 | $ 187 |
Loss from discontinued operations, net of tax | 0.3 | 1.6 |
Adjustments to reconcile net income to net cash provided by operating activities— | ||
Provision for doubtful accounts | 46.7 | 33.2 |
Provision for government, class action, and related settlements | 0 | 8 |
Depreciation and amortization | 128.8 | 98.3 |
Loss on early extinguishment of debt | 7.4 | 20 |
Equity in net income of nonconsolidated affiliates | (7.3) | (6.3) |
Distributions from nonconsolidated affiliates | 5.9 | 4.5 |
Stock-based compensation | 17.4 | 21.8 |
Deferred tax expense | 110.6 | 88 |
Other | 11.7 | 8.2 |
Change in assets and liabilities, net of acquisitions— | ||
Accounts receivable | (75.7) | (83.7) |
Other assets | (4.4) | (8.3) |
Accounts payable | 1.9 | 4.4 |
Accrued payroll | (1.2) | (16.6) |
Accrued interest payable | 6 | 13.9 |
Other liabilities | 11.8 | (3) |
Premium received on bond issuance | 0 | 9.8 |
Premium paid on redemption of bonds | (5.8) | (11.8) |
Net cash used in operating activities of discontinued operations | (0.6) | (0.8) |
Total adjustments | 253.2 | 179.6 |
Net cash provided by operating activities | 489.5 | 368.2 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (113.9) | (85.2) |
Capitalized software costs | (17.5) | (20.7) |
Acquisitions of businesses, net of cash acquired | (19.6) | (87.1) |
Proceeds from sale of marketable securities | 0 | 12.8 |
Purchase of restricted investments | (0.8) | (6.5) |
Net change in restricted cash | (7.1) | 3.2 |
Other | 2.6 | 4.1 |
Net cash used in investing activities | (156.3) | (179.4) |
Cash flows from financing activities: | ||
Principal borrowings on term loan facilities | 0 | 125 |
Proceeds from bond issuance | 0 | 1,400 |
Principal payments on debt, including pre-payments | (195.2) | (546.3) |
Borrowings on revolving credit facility | 260 | 315 |
Payments on revolving credit facility | (240) | (615) |
Debt amendment and issuance costs | 0 | (31.3) |
Repurchases of common stock, including fees and expenses | (24.1) | 0 |
Dividends paid on common stock | (62.4) | (56.3) |
Distributions paid to noncontrolling interests of consolidated affiliates | (49.5) | (39.7) |
Other | (7.2) | (5.3) |
Net cash (used in) provided by financing activities | (318.4) | 546.1 |
Increase in cash and cash equivalents | 14.8 | 734.9 |
Cash and cash equivalents at beginning of period | 61.6 | 66.7 |
Cash and cash equivalents at end of period | 76.4 | 801.6 |
Supplemental schedule of noncash financing activity: | ||
Conversion of preferred stock to common stock | $ 0 | $ 93.2 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation HealthSouth Corporation, incorporated in Delaware in 1984, including its subsidiaries, is one of the nation’s largest providers of post-acute healthcare services, offering both facility-based and home-based post-acute services in 34 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies, and hospice agencies. The accompanying unaudited condensed consolidated financial statements of HealthSouth Corporation and Subsidiaries should be read in conjunction with the consolidated financial statements and accompanying notes filed with the United States Securities and Exchange Commission in HealthSouth’s Annual Report on Form 10-K filed on February 24, 2016 (the “ 2015 Form 10-K”). The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC applicable to interim financial information. Certain information and note disclosures included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted in these interim statements, as allowed by such SEC rules and regulations. The condensed consolidated balance sheet as of December 31, 2015 has been derived from audited financial statements, but it does not include all disclosures required by GAAP. However, we believe the disclosures are adequate to make the information presented not misleading. The unaudited results of operations for the interim periods shown in these financial statements are not necessarily indicative of operating results for the entire year. In our opinion, the accompanying condensed consolidated financial statements recognize all adjustments of a normal recurring nature considered necessary to fairly state the financial position, results of operations, and cash flows for each interim period presented. See also Note 12 , Segment Reporting . Variable Interest Entities — Effective January 1, 2016, in connection with our adoption of ASU 2015-02, we updated our evaluation of all jointly held legal entities to determine whether they are now variable interest entities (“VIEs”) under the new guidance. Any entity considered a VIE is evaluated to determine which party is the primary beneficiary and thus should consolidate the VIE. This analysis is complex, involves uncertainties, and requires significant judgment on various matters. In order to determine if we are the primary beneficiary of a VIE, we must determine what activities most significantly impact the economic performance of the entity, whether we have the power to direct those activities, and if our obligation to absorb losses or receive benefits from the VIE could potentially be significant to the VIE. Net Operating Revenues — We derived consolidated Net operating revenues from the following payor sources: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Medicare 74.8 % 75.1 % 75.0 % 74.8 % Medicare Advantage 7.9 % 7.5 % 7.9 % 7.8 % Managed care 10.1 % 9.9 % 9.9 % 10.0 % Medicaid 3.3 % 3.4 % 3.3 % 3.0 % Other third-party payors 1.5 % 1.5 % 1.4 % 1.6 % Workers’ compensation 0.8 % 0.8 % 0.8 % 0.9 % Patients 0.5 % 0.5 % 0.5 % 0.6 % Other income 1.1 % 1.3 % 1.2 % 1.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % Inpatient Rehabilitation Revenues Our inpatient rehabilitation segment derived its Net operating revenues from the following payor sources: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Medicare 73.3 % 73.2 % 73.3 % 73.0 % Medicare Advantage 7.6 % 7.7 % 7.7 % 7.9 % Managed care 11.4 % 11.2 % 11.3 % 11.3 % Medicaid 3.0 % 3.0 % 3.0 % 2.6 % Other third-party payors 1.8 % 1.7 % 1.7 % 1.9 % Workers’ compensation 1.0 % 1.0 % 1.0 % 1.1 % Patients 0.6 % 0.6 % 0.6 % 0.7 % Other income 1.3 % 1.6 % 1.4 % 1.5 % Total 100.0 % 100.0 % 100.0 % 100.0 % Home Health and Hospice Revenues Our home health and hospice segment derived its Net operating revenues from the following payor sources: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Medicare 81.8 % 84.7 % 82.4 % 84.1 % Medicare Advantage 8.8 % 6.7 % 8.9 % 7.1 % Managed care 4.5 % 2.9 % 3.7 % 2.9 % Medicaid 4.7 % 5.7 % 4.8 % 5.7 % Other third-party payors — % — % — % 0.1 % Patients 0.1 % — % 0.1 % 0.1 % Other income 0.1 % — % 0.1 % — % Total 100.0 % 100.0 % 100.0 % 100.0 % See Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements accompanying the 2015 Form 10-K for our policies related to Net operating revenues , Accounts receivable , and our Allowance for doubtful accounts. Recent Accounting Pronouncements — In February 2015, the FASB issued ASU 2015-02, “Consolidations (Topic 810) - Amendments to the Consolidation Analysis,” which provided guidance on evaluating whether a reporting entity should consolidate certain legal entities. Specifically, the amendments modified the evaluation of whether limited partnerships and similar legal entities are VIEs. Under this analysis, limited partnerships and other similar entities are considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. Further, the amendments eliminated the presumption that a general partner should consolidate a limited partnership under the voting interest model, as well as affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This standard was effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. We elected to adopt this guidance using the modified retrospective approach. Our adoption of this guidance resulted in certain limited partnership-like entities that were previously consolidated as voting interest entities to now be consolidated as VIEs, for which additional disclosures are required. Our adoption of ASU 2015-02 did not have a material impact on our financial position, results of operations, or cash flows. See Note 3 , Variable Interest Entities . In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” in order to increase transparency and comparability by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new standard, lessees will recognize a right-of-use asset and a corresponding lease liability for all leases other than leases that meet the definition of a short-term lease. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in an expense pattern similar to current capital leases. Classification will be based on criteria that are similar to those applied in current lease accounting. This standard will be effective for HealthSouth for the annual reporting period beginning after December 15, 2018. Early adoption is permitted. We continue to review the requirements of this standard and its impact on our financial position, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting (Topic 718),” to simplify various aspects of share-based payment accounting and presentation. The new standard requires entities to record all of the tax effects related to share-based payments at settlement (or expiration) through the income statement. This will require us to reclassify tax benefits in excess of compensation cost (“windfalls”) and tax deficiencies (“shortfalls”) to the extent of previous windfalls from Capital in excess of par value to Provision for income tax expense . This change is required to be applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements after the date of adoption of the ASU. The standard eliminates the requirement to delay recognition of a windfall tax benefit until it reduces current taxes payable. This change is required to be applied on a modified retrospective basis, with a cumulative-effect adjustment to opening retained earnings. In addition, all income tax-related cash flows resulting from share-based windfall tax benefits are required to be reported as operating activities on the statement of cash flows as opposed to the current presentation as an inflow from financing activities and an outflow from operating activities. Either prospective or retrospective transition of this provision is permitted. Finally, the standard clarifies that all cash payments made to taxing authorities on the employees’ behalf for withheld shares should be presented as financing activities on the statement of cash flows. This change will be applied retrospectively. For HealthSouth, this guidance is effective for annual reporting periods beginning after December 15, 2016 and interim periods within that reporting period. Early adoption is permitted, with any adjustments reflected as of the beginning of the fiscal year of adoption. Upon adoption, we anticipate recognizing our net windfall balance as an increase to Deferred income tax assets and a corresponding decrease to Accumulated deficit . Additionally, the historical and future amount of cash flows resulting from share-based windfall benefits and cash payments made to taxing authorities on the employees’ behalf for withheld shares will result in an increase to our historical and future Cash flows from operating activities and a decrease to Cash flows from financing activities . In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which provides guidance for accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new guidance is effective for HealthSouth for the annual period beginning after December 15, 2019 and interim periods within that reporting period. Early adoption is permitted beginning after December 15, 2018. We continue to review the requirements of this standard and any potential impact it may have on our financial position, results of operations, or cash flows. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments,” to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. In addition, the standard clarifies when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The new guidance is effective retrospectively for HealthSouth for the annual reporting period beginning after December 15, 2017 and interim periods within that reporting period. Early adoption is permitted. We continue to review the requirements of this standard and any potential impact it may have on our financial position, results of operations, or cash flows. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Inpatient Rehabilitation In February 2016, we acquired 50% of the inpatient rehabilitation hospital at CHI St. Vincent Hot Springs (“Hot Springs”), a 20 -bed inpatient rehabilitation hospital in Hot Springs, Arkansas, through a joint venture with St. Vincent Community Health Services, Inc. The acquisition, which was funded through a contribution to the consolidated joint venture, was not material to our financial position, results of operations, or cash flows. In August 2016, we acquired 50% of the inpatient rehabilitation hospital at St. Joseph Regional Health Center (“Bryan”), a 19 -bed inpatient rehabilitation hospital in Bryan, Texas, through a joint venture with St. Joseph Health System. The acquisition, which was funded through a contribution to the consolidated joint venture, was not material to our financial position, results of operations, or cash flows. Also in August 2016, we acquired 51% of the inpatient rehabilitation hospital at The Bernsen Rehabilitation Center at St. John (“Broken Arrow”), a 24 -bed inpatient rehabilitation hospital in Broken Arrow, Oklahoma, through a joint venture with St. John Health System. The acquisition, which was funded through a contribution to the consolidated joint venture, was not material to our financial position, results of operations, or cash flows. Each of the above transactions was made to enhance our position and ability to provide inpatient rehabilitation services to patients in the applicable geographic areas. We accounted for these transactions under the acquisition method of accounting and reported the results of operations of the acquired hospitals from their respective dates of acquisition. Assets acquired and liabilities assumed, if any, were recorded at their estimated fair values as of the respective acquisition dates. The fair values of the identifiable intangible assets were based on valuations using the income approach. The income approach is based on management’s estimates of future operating results and cash flows discounted using a weighted-average cost of capital that reflects market participant assumptions. The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill. The goodwill reflects our expectations of our ability to gain access to and penetrate the acquired hospital’s historical patient base and the benefits of being able to leverage operational efficiencies with favorable growth opportunities based on positive demographic trends in these markets. None of the goodwill recorded as a result of these transactions is deductible for federal income tax purposes. The fair value of the assets acquired at the acquisition date were as follows (in millions): Property and equipment $ 5.3 Identifiable intangible assets: Noncompete agreements (useful lives of 1 to 3 years) 0.4 Trade names (useful lives of 20 years) 1.0 Goodwill 9.4 Total assets acquired $ 16.1 Information regarding the net cash paid for all inpatient rehabilitation acquisitions during each period presented is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Fair value of assets acquired $ 1.4 $ — $ 6.7 $ 62.8 Goodwill 7.6 — 9.4 0.7 Fair value of liabilities assumed — — — (2.7 ) Fair value of noncontrolling interest owned by joint venture partner (9.0 ) — (16.1 ) (4.2 ) Net cash paid for acquisition $ — $ — $ — $ 56.6 Home Health and Hospice During the nine months ended September 30, 2016, we completed the following home health and hospice acquisitions, none of which were individually material to our financial position, results of operations, or cash flows. Each acquisition was made to enhance our position and ability to provide post-acute healthcare services to patients in the applicable geographic areas. Each acquisition was funded using cash on hand. • In May, 2016, we acquired Home Health Agency of Georgia, LLC (“Camellia”), a home health and hospice provider with two home health locations and two hospice locations in the Greater Atlanta area. • In July 2016, we acquired Advantage Health Inc. (“Advantage”), a home health provider with one location in Yuma, Arizona. • In September, 2016, we acquired three hospice agencies from Sotto International, Inc. (“Serenity”) located in Texarkana, Arkansas, Magnolia, Arkansas, and Texarkana, Texas. We accounted for all of these transactions under the acquisition method of accounting and reported the results of operations of the acquired locations from their respective dates of acquisition. Assets acquired and liabilities assumed were recorded at their estimated fair values as of the respective acquisition dates. The fair values of identifiable intangible assets were based on valuations using the cost and income approaches. The cost approach is based on amounts that would be required to replace the asset (i.e., replacement cost). The income approach is based on management’s estimates of future operating results and cash flows discounted using a weighted-average cost of capital that reflects market participant assumptions. The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill. The goodwill reflects our expectations of our ability to utilize the acquired locations’ mobile workforce and established relationships within each community and the benefits of being able to leverage operational efficiencies with favorable growth opportunities based on positive demographic trends in these markets. All goodwill recorded as a result of these transactions is deductible for federal income tax purposes. The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions): Identifiable intangible asset: Noncompete agreements (useful lives of 5 years) $ 0.2 Trade names (useful lives of 1 year) 0.2 Certificate of needs (useful lives of 10 years) 1.9 Licenses (useful lives of 10 years) 1.1 Goodwill 16.3 Total assets acquired 19.7 Total liabilities assumed (0.1 ) Net assets acquired $ 19.6 Information regarding the net cash paid for home health and hospice acquisitions during each period presented is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Fair value of assets acquired $ 1.9 $ 1.9 $ 3.4 $ 10.4 Goodwill 8.3 7.5 16.3 20.3 Fair value of liabilities assumed — (0.1 ) (0.1 ) (0.2 ) Net cash paid for acquisitions $ 10.2 $ 9.3 $ 19.6 $ 30.5 Pro Forma Results of Operations The following table summarizes the results of operations of the above mentioned inpatient rehabilitation hospitals and home health and hospice agencies from their respective dates of acquisition included in our consolidated results of operations and the unaudited pro forma results of operations of the combined entity had the date of the acquisitions been January 1, 2015 (in millions): Net Operating Revenues Net Income Attributable to HealthSouth Acquired entities only: Actual from acquisition date to September 30, 2016 $ 8.7 $ (2.3 ) Combined entity: Supplemental pro forma from 07/01/2016-09/30/2016 929.2 62.0 Combined entity: Supplemental pro forma from 07/01/2015-09/30/2015 786.7 51.4 Combined entity: Supplemental pro forma from 01/01/2016-09/30/2016 2,773.9 184.0 Combined entity: Supplemental pro forma from 01/01/2015-09/30/2015 2,308.2 136.8 See Note 2, Business Combinations , to the consolidated financial statements accompanying the 2015 Form 10-K for information regarding acquisitions completed in 2015. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities As of September 30, 2016 , we consolidated ten limited partnership-like entities that are VIEs and of which we are the primary beneficiary. All ten of these entities were also consolidated as of December 31, 2015. Our ownership percentages in these entities range from 6.8% to 99.5% . Through partnership and management agreements with or governing each of these entities, we manage all of these entities and handle all day-to-day operating decisions. Accordingly, we have the decision making power over the activities that most significantly impact the economic performance of our VIEs and an obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. These decisions and significant activities include, but are not limited to, marketing efforts, oversight of patient admissions, medical training, nurse and therapist scheduling, provision of healthcare services, billing, collections and creation and maintenance of medical records. The terms of the agreements governing each of our VIEs prohibit us from using the assets of each VIE to satisfy the obligations of other entities. The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in our consolidated balance sheet, are as follows (in millions): September 30, 2016 Assets Current assets: Cash and cash equivalents $ 1.2 Accounts receivable, net of allowance for doubtful accounts 32.3 Other current assets 3.1 Total current assets 36.6 Property and equipment, net 137.6 Goodwill 73.5 Intangible assets, net 9.3 Other long-term assets 1.0 Total assets $ 258.0 Liabilities Current liabilities: Current portion of long-term debt $ 1.4 Accounts payable 7.0 Accrued expenses and other current liabilities 12.5 Total current liabilities 20.9 Long-term debt, net of current portion 30.2 Total liabilities $ 51.1 |
Investments in and Advances to
Investments in and Advances to Nonconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2016 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in and Advances to Nonconsolidated Affiliates | Investments in and Advances to Nonconsolidated Affiliates As of September 30, 2016 and December 31, 2015 , we had $13.0 million and $11.7 million , respectively, of investments in and advances to nonconsolidated affiliates included in Other long-term assets in our condensed consolidated balance sheets. Investments in and advances to nonconsolidated affiliates represent our investments in seven partially owned subsidiaries, of which six are general or limited partnerships, limited liability companies, or joint ventures in which HealthSouth or one of its subsidiaries is a general or limited partner, managing member, member, or venturer, as applicable. We do not control these affiliates but have the ability to exercise significant influence over the operating and financial policies of certain of these affiliates. Our ownership percentages in these affiliates range from approximately 1% to 60% . We account for these investments using the cost and equity methods of accounting. The following summarizes the combined results of operations of our equity method affiliates (on a 100% basis, in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net operating revenues $ 11.3 $ 9.2 $ 33.4 $ 26.3 Operating expenses (6.0 ) (4.0 ) (18.1 ) (11.7 ) Income from continuing operations, net of tax 5.2 5.1 15.2 13.8 Net income 5.2 5.1 15.2 13.8 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Our long-term debt outstanding consists of the following (in millions): September 30, 2016 December 31, 2015 Credit Agreement— Advances under revolving credit facility $ 150.0 $ 130.0 Term loan facilities 426.8 443.3 Bonds payable— 7.75% Senior Notes due 2022 — 174.3 5.125% Senior Notes due 2023 295.1 294.6 5.75% Senior Notes due 2024 1,193.1 1,192.6 5.75% Senior Notes due 2025 343.7 343.4 2.00% Convertible Senior Subordinated Notes due 2043 273.2 265.9 Other notes payable 47.1 39.2 Capital lease obligations 281.8 288.2 3,010.8 3,171.5 Less: Current portion (36.8 ) (36.8 ) Long-term debt, net of current portion $ 2,974.0 $ 3,134.7 The following chart shows scheduled principal payments due on long-term debt for the next five years and thereafter (in millions): Face Amount Net Amount October 1 through December 31, 2016 $ 8.7 $ 8.7 2017 37.3 37.3 2018 37.8 37.8 2019 40.4 40.4 2020 834.2 786.1 2021 10.7 10.7 Thereafter 2,108.0 2,089.8 Total $ 3,077.1 $ 3,010.8 On February 23, 2016, we gave notice of, and made an irrevocable commitment for, the redemption of $50 million of the outstanding principal amount of our existing 7.75% Senior Notes due 2022 (the “2022 Notes”). On March 24, 2016 , we completed this redemption using cash on hand and capacity under our revolving credit facility. Pursuant to the terms of the 2022 Notes, this optional redemption was made at a price of 103.875% , which resulted in a total cash outlay of approximately $52 million . As a result of this redemption, we recorded a $2.4 million Loss on early extinguishment of debt in the first quarter of 2016. On April 6, 2016, we gave notice of, and made an irrevocable commitment for, the redemption of an additional $50 million of the outstanding principal amount of the 2022 Notes. On May 6, 2016, we completed this redemption using cash on hand and capacity under our revolving credit facility. Pursuant to the terms of the 2022 Notes, this optional redemption was also made at a price of 103.875% , which resulted in a total cash outlay of approximately $52 million . As a result of this redemption, we recorded a $2.4 million L oss on early extinguishment of debt in the second quarter of 2016. On July 28, 2016, we gave notice of, and made an irrevocable commitment for, the redemption of the remaining outstanding principal balance of $76.0 million of the 2022 Notes. On September 15, 2016, we completed this redemption using cash on hand and capacity under our revolving credit facility. Pursuant to the terms of the 2022 Notes, t his optional redemption was made at a price of 102.583% , which resulted in a total cash outlay of approximately $78 million . As a result of this redemption, we recorded a $2.6 million Loss on early extinguishment of debt in the third quarter of 2016. In February 2016, we entered into a development/lease agreement with CR HQ, LLC (the “Developer”) to construct our new corporate headquarters in Birmingham, Alabama. Under the terms of this agreement, the Developer is responsible for all costs of constructing the new facility ‘shell’ which will then be leased to us for an initial term of 15 years with four , five -year renewal options. The lease is expected to commence in the first half of 2018. We are responsible for the costs associated with improvements to the interior of the building. Due to the nature and extent of the tenant improvements we will be making to the new corporate headquarters and certain provisions of the development/lease agreement, we are deemed to be the accounting owner of the new corporate headquarters during the construction period. Construction commenced in the second quarter of 2016. Accordingly, we increased Property and equipment, net by $10.3 million , based on the construction costs incurred to date by the Developer, and recorded a corresponding noncurrent financing obligation liability of $10.3 million in Long-term debt, net of current portion within our condensed consolidated balance sheet as of September 30, 2016. The total financing obligation associated with the Developer’s costs to construct the new corporate headquarters is estimated at $56 million . The amounts recorded for construction costs and the corresponding liability are non-cash activities for purposes of our condensed consolidated statement of cash flows. For additional information regarding our indebtedness, see Note 8, Long-term Debt, to the consolidated financial statements accompanying the 2015 Form 10-K. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontolling Interests | Redeemable Noncontrolling Interests The following is a summary of the activity related to our Redeemable noncontrolling interests during the nine months ended September 30, 2016 and 2015 (in millions): Nine Months Ended September 30, 2016 2015 Balance at beginning of period $ 121.1 $ 84.7 Net income attributable to noncontrolling interests 11.2 10.1 Distributions declared (6.4 ) (5.6 ) Change in fair value (16.5 ) 24.9 Balance at end of period $ 109.4 $ 114.1 The following table reconciles the net income attributable to nonredeemable Noncontrolling interests , as recorded in the shareholders’ equity section of the condensed consolidated balance sheets, and the net income attributable to Redeemable noncontrolling interests , as recorded in the mezzanine section of the condensed consolidated balance sheets, to the Net income attributable to noncontrolling interests presented in the condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to nonredeemable noncontrolling interests $ 12.7 $ 13.4 $ 42.5 $ 40.8 Net income attributable to redeemable noncontrolling interests 3.7 3.7 11.2 10.1 Net income attributable to noncontrolling interests $ 16.4 $ 17.1 $ 53.7 $ 50.9 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in millions): Fair Value Measurements at Reporting Date Using As of September 30, 2016 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (1) Other current assets: Current portion of restricted marketable securities $ 24.2 $ — $ 24.2 $ — M Other long-term assets: Restricted marketable securities 33.3 — 33.3 — M Redeemable noncontrolling interests 109.4 — — 109.4 I As of December 31, 2015 Other current assets: Current portion of restricted marketable securities $ 16.1 $ — $ 16.1 $ — M Other long-term assets: Restricted marketable securities 40.1 — 40.1 — M Redeemable noncontrolling interests 121.1 — — 121.1 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). The fair values of our financial assets and liabilities are determined as follows: • Restricted marketable securities - The fair values of our available-for-sale restricted marketable securities are determined based on quoted market prices in active markets or quoted prices, dealer quotations, or alternative pricing sources supported by observable inputs in markets that are not considered to be active. • Redeemable noncontrolling interests - The fair value of the Redeemable noncontrolling interest related to our home health segment is determined using the product of a twelve-month specified performance measure and a specified median market price multiple based on a basket of public health companies. To determine the fair value of the Redeemable noncontrolling interests in our joint venture hospitals, we use the applicable hospitals’ projected operating results and cash flows discounted using a rate that reflects market participant assumptions for the applicable facilities. The projected operating results use management’s best estimates of economic and market conditions over the forecasted periods including assumptions for pricing and volume, operating expenses, and capital expenditures. See also Note 6 , Redeemable Noncontrolling Interests . In addition to assets and liabilities recorded at fair value on a recurring basis, we are also required to record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges or similar adjustments made to the carrying value of the applicable assets. During the three and nine months ended September 30, 2016 and September 30, 2015 , we did not record any gains or losses related to our nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis as part of our continuing operations. As discussed in Note 1, Summary of Significant Accounting Policies , “Fair Value Measurements,” to the consolidated financial statements accompanying the 2015 Form 10-K, the carrying value equals fair value for our financial instruments that are not included in the table below and are classified as current in our condensed consolidated balance sheets. The carrying amounts and estimated fair values for all of our other financial instruments are presented in the following table (in millions): As of September 30, 2016 As of December 31, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ 150.0 $ 150.0 $ 130.0 $ 130.0 Term loan facilities 426.8 428.1 443.3 445.0 7.75% Senior Notes due 2022 — — 174.3 183.7 5.125% Senior Notes due 2023 295.1 299.3 294.6 288.0 5.75% Senior Notes due 2024 1,193.1 1,239.0 1,192.6 1,146.0 5.75% Senior Notes due 2025 343.7 364.9 343.4 332.5 2.00% Convertible Senior Subordinated Notes due 2043 273.2 377.3 265.9 345.0 Other notes payable 47.1 47.1 39.2 39.2 Financial commitments: Letters of credit — 33.3 — 34.2 Fair values for our long-term debt and financial commitments are determined using inputs, including quoted prices in nonactive markets, that are observable either directly or indirectly, or Level 2 inputs within the fair value hierarchy. See Note 1, Summary of Significant Accounting Policies , “Fair Value Measurements,” to the consolidated financial statements accompanying the 2015 Form 10-K. |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments In February and May 2016, we issued a total of 0.8 million restricted stock awards to members of our management team and our board of directors. Approximately 0.2 million of these awards contain only a service condition, while the remainder contain both a service and a performance condition. For the awards that include a performance condition, the number of shares that will ultimately be granted to employees may vary based on the Company’s performance during the applicable two -year performance measurement period. Additionally, in February 2016, we granted 0.1 million stock options to members of our management team. The fair value of these awards and options was determined using the policies described in Note 1, Summary of Significant Accounting Policies , and Note 13, Share-Based Payments , to the consolidated financial statements accompanying the 2015 Form 10-K. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our Provision for income tax expense of $42.1 million and $124.2 million for the three and nine months ended September 30, 2016 , respectively, primarily resulted from the application of our estimated effective blended federal and state income tax rate. Our Provision for income tax expense of $35.9 million and $98.4 million for the three and nine months ended September 30, 2015 , respectively, primarily resulted from the application of our estimated effective blended federal and state income tax rate. The $72.6 million of net deferred tax assets included in the accompanying condensed consolidated balance sheet as of September 30, 2016 reflects management’s assessment it is more likely than not we will be able to generate sufficient future taxable income to utilize those deferred tax assets based on our current estimates and assumptions. As of September 30, 2016 , we maintained a valuation allowance of $28.3 million due to uncertainties regarding our ability to utilize a portion of our state net operating losses (“NOLs”) and other credits before they expire. The amount of the valuation allowance has been determined for each tax jurisdiction based on the weight of all available evidence including management’s estimates of taxable income for each jurisdiction in which we operate over the periods in which the related deferred tax assets will be recoverable. It is possible we may be required to increase or decrease our valuation allowance at some future time if our forecast of future earnings varies from actual results on a consolidated basis or in the applicable state tax jurisdictions, or if the timing of future tax deductions differs from our expectations. As of September 30, 2016 , we estimate the tax benefit of combined federal NOLs and tax credits to be approximately $18 million . There is $15.6 million related to operating loss carryforwards resulting from excess tax benefits related to share-based awards, the benefits of which, when recognized, will be accounted for as a credit to Capital in excess of par value when they reduce taxes payable. Federal NOLs and tax credits expire in various amounts at varying times through 2036. We also have state NOLs that expire in various amounts at varying times through 2031. During the three months ended September 30, 2016, we filed an automatic tax accounting method change related to the deductibility of bad debts pursuant to the non-accrual experience method which resulted in a tax benefit of approximately $7 million . This change did not have a material impact on our effective tax rate. We also filed a non-automatic tax accounting method change related to billings denied under pre-payment claims reviews conducted by certain of our Medicare Administrative Contractors and are awaiting acceptance by the IRS. If our request for the non-automatic tax accounting method change is accepted as filed, we anticipate additional tax benefits of approximately $50 million through September 30, 2016. Approximately $44 million of this amount represents pre-payment claims received in years prior to and including the year ending December 31, 2015. This change, if approved, is not expected to have a material impact on our effective tax rate. Total remaining gross unrecognized tax benefits were $2.8 million and $2.9 million as of September 30, 2016 and December 31, 2015 , respectively, all of which would affect our effective tax rate if recognized. A reconciliation of the beginning and ending liability for unrecognized tax benefits is as follows (in millions): Gross Unrecognized Income Tax Benefits Balance at December 31, 2015 $ 2.9 Gross amount of increases in unrecognized tax benefits related to prior periods 0.3 Gross amount of decreases in unrecognized tax benefits related to prior periods (0.4 ) Gross amount of increases in unrecognized tax benefits related to current periods 0.1 Gross amount of decreases in unrecognized tax benefits related to current periods (0.1 ) Balance at September 30, 2016 $ 2.8 Our continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. Interest recorded as part of our income tax provision during the three and nine months ended September 30, 2016 and 2015 was not material. Accrued interest income related to income taxes as of September 30, 2016 and December 31, 2015 was not material. In December 2014, we signed an agreement with the IRS to begin participating in their Compliance Assurance Process, a program in which we and the IRS endeavor to agree on the treatment of significant tax positions prior to the filing of our federal income tax return. We signed a new agreement in December 2015 for the 2016 tax year. As a result of these agreements, the IRS surveyed our 2013, 2012 and 2011 federal income tax returns, will examine our 2016 return when filed and is currently examining our 2015 return. Our 2014 federal income tax return has been filed, and the IRS has not indicated its intent to examine or survey this return. We have settled federal income tax examinations with the IRS for all tax years through 2013. Our state income tax returns are also periodically examined by various regulatory taxing authorities. We are currently under audit by five states for tax years ranging from 2007 through 2014. For the tax years that remain open under the applicable statutes of limitation, amounts related to unrecognized tax benefits have been considered by management in its estimate of our potential net recovery of prior years’ income taxes. Based on discussions with taxing authorities, we anticipate up to $2.6 million of our unrecognized tax benefits may be released within the next 12 months. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | 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, 2016 2015 2016 2015 Basic: Numerator: Income from continuing operations $ 78.2 $ 67.5 $ 236.3 $ 188.6 Less: Net income attributable to noncontrolling interests included in continuing operations (16.4 ) (17.1 ) (53.7 ) (50.9 ) Less: Income allocated to participating securities (0.2 ) (0.3 ) (0.6 ) (0.9 ) Less: Convertible perpetual preferred stock dividends — — — (1.6 ) Income from continuing operations attributable to HealthSouth common shareholders 61.6 50.1 182.0 135.2 (Loss) income from discontinued operations, net of tax, attributable to HealthSouth common shareholders (0.1 ) 0.3 (0.3 ) (1.6 ) Net income attributable to HealthSouth common shareholders $ 61.5 $ 50.4 $ 181.7 $ 133.6 Denominator: Basic weighted average common shares outstanding 89.1 90.6 89.3 89.1 Basic earnings per share attributable to HealthSouth common shareholders: Continuing operations $ 0.69 $ 0.56 $ 2.03 $ 1.52 Discontinued operations — — — (0.02 ) Net income $ 0.69 $ 0.56 $ 2.03 $ 1.50 Diluted: Numerator: Income from continuing operations $ 78.2 $ 67.5 $ 236.3 $ 188.6 Less: Net income attributable to noncontrolling interests included in continuing operations (16.4 ) (17.1 ) (53.7 ) (50.9 ) Add: Interest on convertible debt, net of tax 2.4 2.4 7.2 7.0 Income from continuing operations attributable to HealthSouth common shareholders 64.2 52.8 189.8 144.7 (Loss) income from discontinued operations, net of tax, attributable to HealthSouth common shareholders (0.1 ) 0.3 (0.3 ) (1.6 ) Net income attributable to HealthSouth common shareholders $ 64.1 $ 53.1 $ 189.5 $ 143.1 Denominator: Diluted weighted average common shares outstanding 99.4 101.5 99.5 101.4 Diluted earnings per share attributable to HealthSouth common shareholders: Continuing operations $ 0.64 $ 0.52 $ 1.90 $ 1.43 Discontinued operations — — — (0.02 ) Net income $ 0.64 $ 0.52 $ 1.90 $ 1.41 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, 2016 2015 2016 2015 Basic weighted average common shares outstanding 89.1 90.6 89.3 89.1 Convertible perpetual preferred stock — — — 1.3 Convertible senior subordinated notes 8.5 8.4 8.5 8.3 Restricted stock awards, dilutive stock options, restricted stock units, and common stock warrants 1.8 2.5 1.7 2.7 Diluted weighted average common shares outstanding 99.4 101.5 99.5 101.4 In October 2015, February 2016, and May 2016, our board of directors declared cash dividends of $0.23 per share that were paid in January 2016, April 2016, and July 2016, respectively. On July 21, 2016, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.24 per share, payable on October 17, 2016 to stockholders of record on October 3, 2016. On October 20, 2016, our board of directors declared a cash dividend of $0.24 per share, payable on January 17, 2017 to stockholders of record on January 3, 2017. As of September 30, 2016 and December 31, 2015 , accrued common stock dividends of $22.3 million and $21.3 million , respectively, were included in Accrued expenses and other current liabilities in our condensed consolidated balance sheets. Future dividend payments are subject to declaration by our board of directors. On April 22, 2015, we delivered notice of the exercise of our rights to force conversion of all outstanding shares of our Convertible perpetual preferred stock (par value of $0.10 per share and liquidation preference of $1,000 per share) pursuant to the underlying certificate of designations. The effective date of the conversion was April 23, 2015. On that date, each share of preferred stock automatically converted into 33.9905 shares of our common stock (par value of $0.01 per share). We completed the forced conversion by issuing and delivering in the aggregate 3,271,415 shares of our common stock to the registered holders of the 96,245 shares of the preferred stock outstanding and paying cash in lieu of fractional shares due to those holders. The indenture underlying our convertible notes includes antidilutive protection that requires adjustments to the number of shares of common stock issuable upon conversion and the exercise price for common stock upon the occurrence of certain events, including payment of cash dividends on our common stock after a de minimis threshold. At issuance, the convertible notes had a conversion price of $39.65 per share, which was equal to an initial conversion rate of 25.2194 shares per $1,000 principal amount of the convertible notes. The payment of dividends on our common stock has triggered and will continue to trigger, from time to time, the antidilutive adjustment provisions of the convertible notes. The current conversion price of the conve rtible notes is $37.16 per share, and the conversion rate is 26.9106 for each $1,000 principal amount of the convertible notes. See Note 8, Long-term Debt , Note 10, Convertible Perpetual Preferred Stock , and Note 16, Earnings per Common Share , to the consolidated financial statements accompanying the 2015 Form 10-K for additional information related to our convertible notes, common stock, common stock warrants, and convertible perpetual preferred stock. |
Contingencies and Other Commitm
Contingencies and Other Commitments | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Other Commitments | Contingencies and Other Commitments We operate in a highly regulated and litigious industry. As a result, various lawsuits, claims, and legal and regulatory proceedings have been and can be expected to be instituted or asserted against us. The resolution of any such lawsuits, claims, or legal and regulatory proceedings could materially and adversely affect our financial position, results of operations, and cash flows in a given period. Nichols Litigation— We have been named as a defendant in a lawsuit filed March 28, 2003 by several individual stockholders in the Circuit Court of Jefferson County, Alabama, captioned Nichols v. HealthSouth Corp . The plaintiffs allege that we, some of our former officers, and our former investment bank engaged in a scheme to overstate and misrepresent our earnings and financial position. The plaintiffs are seeking compensatory and punitive damages. This case was stayed in the Circuit Court on August 8, 2005. The plaintiffs filed an amended complaint on November 9, 2010 to which we responded with a motion to dismiss filed on December 22, 2010. During a hearing on February 24, 2012, plaintiffs’ counsel indicated his intent to dismiss certain claims against us. Instead, on March 9, 2012, the plaintiffs amended their complaint to include additional securities fraud claims against HealthSouth and add several former officers to the lawsuit. On September 12, 2012, the plaintiffs further amended their complaint to request certification as a class action. One of those named officers has repeatedly attempted to remove the case to federal district court, most recently on December 11, 2012. We filed our latest motion to remand the case back to state court on January 10, 2013. On September 27, 2013, the federal court remanded the case back to state court. On November 25, 2014, the plaintiffs filed another amended complaint to assert new allegations relating to the time period of 1997 to 2002. On December 10, 2014, we filed a motion to dismiss on the grounds the plaintiffs lack standing because their claims are derivative in nature, and the claims are time-barred by the statute of limitations. On May 26, 2016, the court granted our motion to dismiss. The plaintiffs appealed the dismissal of the case to the Supreme Court of Alabama on June 28, 2016. The Supreme Court has not yet scheduled a hearing on the appeal. We intend to vigorously defend ourselves in this case. Based on the stage of litigation, review of the current facts and circumstances as we understand them, the nature of the underlying claim, the results of the proceedings to date, and the nature and scope of the defense we continue to mount, we do not believe an adverse judgment or settlement is probable in this matter, and it is also not possible to estimate the amount of loss, if any, or range of possible loss that might result from an adverse judgment or settlement of this case. Other Litigation— One of our hospital subsidiaries was named as a defendant in a lawsuit filed August 12, 2013 by an individual in the Circuit Court of Etowah County, Alabama, captioned Honts v. HealthSouth Rehabilitation Hospital of Gadsden, LLC. The plaintiff alleged that her mother, who died more than three months after being discharged from our hospital, received an unprescribed opiate medication at the hospital. We deny the patient received any such medication, accounted for all the opiates at the hospital and argued the plaintiff established no causal liability between the actions of our staff and her mother’s death. The plaintiff sought recovery for punitive damages. On May 18, 2016, the jury in this case returned a verdict in favor of the plaintiff for $20.0 million . On June 17, 2016, we filed a renewed motion for judgment as a matter of law or, in the alternative, a motion for new trial or, in the further alternative, a motion seeking reduction of the damages awarded (collectively, the “post-judgment motions”). The trial court denied the post-judgment motions. We appealed the verdict as well as the rulings on the post-judgment motions to the Supreme Court of Alabama on October 12, 2016. The Supreme Court has not yet scheduled a hearing on the appeal. We posted a bond in the amount of the judgment pending resolution of our appeal. We intend to vigorously defend ourselves in this case. Although we continue to believe in the merit of our defenses and counterarguments, we have recorded a liability of $21.0 million (including $1.0 million in fees and expenses) in Accrued expenses and other liabilities in our condensed consolidated balance sheet as of September 30, 2016 with a corresponding receivable of $ 15.0 million in Other current assets for the portion of the liability we would expect to be covered through our excess insurance coverages, resulting in a net charge of an additional $5.7 million to Other operating expenses in our condensed consolidated statements of operations for the nine months ended September 30, 2016. The $6.0 million portion of this liability would be a covered claim through our captive insurance subsidiary, HCS, Ltd. Governmental Inquiries and Investigations— On June 24, 2011, we received a document subpoena addressed to HealthSouth Hospital of Houston, a long-term acute care hospital (“LTCH”) we closed in August 2011, and issued from the Dallas, Texas office of the HHS-OIG. The subpoena stated it was in connection with an investigation of possible false or otherwise improper claims submitted to Medicare and Medicaid and requested documents and materials relating to patient admissions, length of stay, and discharge matters at this closed LTCH. We furnished the documents requested and have heard nothing from the HHS-OIG since December 2012. On March 4, 2013, we received document subpoenas from an office of the HHS-OIG addressed to four of our hospitals. Those subpoenas also requested complete copies of medical records for 100 patients treated at each of those hospitals between September 2008 and June 2012. The investigation is being conducted by the United States Department of Justice (the “DOJ”). On April 24, 2014, we received document subpoenas relating to an additional seven of our hospitals. The new subpoenas reference substantially similar investigation subject matter as the original subpoenas and request materials from the period January 2008 through December 2013. Two of the four hospitals addressed in the original set of subpoenas have received supplemental subpoenas to cover this new time period. The most recent subpoenas do not include requests for specific patient files. However, in February 2015, the DOJ requested the voluntary production of the medical records of an additional 70 patients, some of whom were treated in hospitals not subject to the subpoenas, and we provided these records. All of the subpoenas are in connection with an investigation of alleged improper or fraudulent claims submitted to Medicare and Medicaid and request documents and materials relating to practices, procedures, protocols and policies, of certain pre- and post-admissions activities at these hospitals including, among other things, marketing functions, pre-admission screening, post-admission physician evaluations, patient assessment instruments, individualized patient plans of care, and compliance with the Medicare 60% rule. Under the Medicare rule commonly referred to as the “ 60% rule,” an inpatient rehabilitation hospital must treat 60% or more of its patients from at least one of a specified list of medical conditions in order to be reimbursed at the inpatient rehabilitation hospital payment rates, rather than at the lower acute care hospital payment rates. We are cooperating fully with the DOJ in connection with these subpoenas and are currently unable to predict the timing or outcome of the related investigations. Other Matters— The False Claims Act, 18 U.S.C. § 287, allows private citizens, called “relators,” to institute civil proceedings alleging violations of the False Claims Act. These qui tam cases are generally sealed by the court at the time of filing. The only parties typically privy to the information contained in the complaint are the relator, the federal government, and the presiding court. It is possible that qui tam lawsuits have been filed against us and that those suits remain under seal or that we are unaware of such filings or prevented by existing law, court order, or agreement with the government from discussing or disclosing the filing of such suits. We may be subject to liability under one or more undisclosed qui tam cases brought pursuant to the False Claims Act. It is our obligation as a participant in Medicare and other federal healthcare programs to routinely conduct audits and reviews of the accuracy of our billing systems and other regulatory compliance matters. As a result of these reviews, we have made, and will continue to make, disclosures to the HHS-OIG and the United States Centers for Medicare and Medicaid Services relating to amounts we suspect represent over-payments from these programs, whether due to inaccurate billing or otherwise. Some of these disclosures have resulted in, or may result in, HealthSouth refunding amounts to Medicare or other federal healthcare programs. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our internal financial reporting and management structure is focused on the major types of services provided by HealthSouth. We manage our operations using two operating segments which are also our reportable segments: (1) inpatient rehabilitation and (2) home health and hospice. These reportable operating segments are consistent with information used by our chief executive officer, who is our chief operating decision maker, to assess performance and allocate resources. The following is a brief description of our reportable segments: • Inpatient Rehabilitation - Our national network of inpatient rehabilitation hospitals stretches across 30 states and Puerto Rico, with a concentration of hospitals in the eastern half of the United States and Texas. As of September 30, 2016 , we operate 122 inpatient rehabilitation hospitals, including one hospital that operates as a joint venture which we account for using the equity method of accounting. In addition, we manage four inpatient rehabilitation units through management contracts. We provide specialized rehabilitative treatment on both an inpatient and outpatient 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. • Home Health and Hospice - As of September 30, 2016 , we provide home health and hospice services in 223 locations across 24 stat es. Two of these agencies operate as joint ventures which we account for using the equity method of accounting. Our home health services include a comprehensive range of Medicare-certified home nursing services to adult patients in need of care. These services include, among others, skilled nursing, physical, occupational, and speech therapy, medical social work, and home health aide services. We also provide specialized home care services in Texas and Kansas for pediatric patients with severe medical conditions. Our hospice services primarily include in-home services to terminally ill patients and their families to address patients’ physical needs, including pain control and symptom management, and to provide emotional and spiritual support. The accounting policies of our reportable segments are the same as those described in Note 1, Basis of Presentation , “Variable Interest Entities,” to these condensed consolidated financial statements and Note 1, Summary of Significant Accounting Policies , to the consolidated financial statements accompanying the 2015 Form 10-K. All revenues for our services are generated through external customers. See Note 1, Basis of Presentation , “Net Operating Revenues,” for the payor composition of our revenues. No corporate overhead is allocated to either of our reportable segments. Our chief operating decision maker evaluates the performance of our segments and allocates resources to them based on adjusted earnings before interest, taxes, depreciation, and amortization (“Segment Adjusted EBITDA”). Selected financial information for our reportable segments is as follows (in millions): Inpatient Rehabilitation Home Health and Hospice Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Net operating revenues $ 751.7 $ 651.6 $ 2,253.5 $ 1,927.2 $ 175.1 $ 127.0 $ 503.8 $ 356.4 Less: Provision for doubtful accounts (13.7 ) (10.2 ) (43.8 ) (31.4 ) (1.1 ) (0.5 ) (2.9 ) (1.8 ) Net operating revenues less provision for doubtful accounts 738.0 641.4 2,209.7 1,895.8 174.0 126.5 500.9 354.6 Operating expenses: Inpatient rehabilitation: Salaries and benefits 371.2 326.8 1,107.2 950.8 — — — — Other operating expenses 110.1 95.8 321.7 284.5 — — — — Supplies 31.9 28.9 96.1 88.6 — — — — Occupancy costs 15.0 10.6 46.0 31.7 — — — — Home health and hospice: Cost of services sold (excluding depreciation and amortization) — — — — 86.8 61.7 246.8 171.8 Support and overhead costs — — — — 59.5 42.6 174.5 121.7 528.2 462.1 1,571.0 1,355.6 146.3 104.3 421.3 293.5 Other income (0.8 ) (0.1 ) (2.1 ) (1.0 ) — — — — Equity in net income of nonconsolidated affiliates (2.3 ) (2.4 ) (6.7 ) (6.3 ) (0.2 ) — (0.6 ) — Noncontrolling interests 14.3 15.6 47.9 46.4 2.1 1.5 5.8 4.5 Segment Adjusted EBITDA $ 198.6 $ 166.2 $ 599.6 $ 501.1 $ 25.8 $ 20.7 $ 74.4 $ 56.6 Capital expenditures $ 42.7 $ 43.8 $ 128.9 $ 103.2 $ 2.2 $ 0.5 $ 4.6 $ 2.7 Inpatient Rehabilitation Home Health and Hospice HealthSouth Consolidated As of September 30, 2016 Total assets $ 3,593.3 $ 1,109.3 $ 4,631.3 Investments in and advances to nonconsolidated affiliates 10.5 2.5 13.0 As of December 31, 2015 Total assets $ 3,589.0 $ 1,088.4 $ 4,606.1 Investments in and advances to nonconsolidated affiliates 9.3 2.4 11.7 Segment reconciliations (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Total segment Adjusted EBITDA $ 224.4 $ 186.9 $ 674.0 $ 557.7 General and administrative expenses (30.3 ) (30.6 ) (96.6 ) (97.3 ) Depreciation and amortization (43.5 ) (33.7 ) (128.8 ) (98.3 ) Loss on disposal or impairment of assets (1.6 ) (0.9 ) (2.0 ) (0.2 ) Government, class action, and related settlements — — — (8.0 ) Professional fees - accounting, tax, and legal — (0.4 ) (1.9 ) (2.7 ) Loss on early extinguishment of debt (2.6 ) — (7.4 ) (20.0 ) Interest expense and amortization of debt discounts and fees (42.5 ) (35.6 ) (130.5 ) (98.3 ) Net income attributable to noncontrolling interests 16.4 17.1 53.7 50.9 Gain related to SCA equity interest — 0.6 — 3.2 Income from continuing operations before income tax expense $ 120.3 $ 103.4 $ 360.5 $ 287.0 September 30, 2016 December 31, 2015 Total assets for reportable segments $ 4,702.6 $ 4,677.4 Reclassification of deferred income tax liabilities to net deferred income tax assets (71.3 ) (71.3 ) Total consolidated assets $ 4,631.3 $ 4,606.1 Additional detail regarding the revenues of our operating segments by service line follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Inpatient rehabilitation: Inpatient $ 724.1 $ 625.1 $ 2,164.6 $ 1,850.4 Outpatient and other 27.6 26.5 88.9 76.8 Total inpatient rehabilitation 751.7 651.6 2,253.5 1,927.2 Home health and hospice: Home health 162.0 118.3 470.0 333.7 Hospice 13.1 8.7 33.8 22.7 Total home health and hospice 175.1 127.0 503.8 356.4 Total net operating revenues $ 926.8 $ 778.6 $ 2,757.3 $ 2,283.6 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” Each of the subsidiary guarantors is 100% owned by HealthSouth, and all guarantees are full and unconditional and joint and several, subject to certain customary conditions for release. HealthSouth’s investments in its consolidated subsidiaries, as well as guarantor subsidiaries’ investments in nonguarantor subsidiaries and nonguarantor subsidiaries’ investments in guarantor subsidiaries, are presented under the equity method of accounting with the related investment presented within the line items Intercompany receivable and investments in consolidated affiliates and Intercompany payable in the accompanying condensed consolidating balance sheets. The terms of our credit agreement allow us to declare and pay cash dividends on our common stock so long as: (1) we are not in default under our credit agreement and (2) our senior secured leverage ratio (as defined in our credit agreement) remains less than or equal to 1.75 x. The terms of our senior note indenture allow us to declare and pay cash dividends on our common stock so long as (1) we are not in default, (2) the consolidated coverage ratio (as defined in the indenture) exceeds 2 x or we are otherwise allowed under the indenture to incur debt, and (3) we have capacity under the indenture’s restricted payments covenant to declare and pay dividends. See Note 8, Long-term Debt , to the consolidated financial statements accompanying the 2015 Form 10-K. Periodically, certain wholly owned subsidiaries of HealthSouth make dividends or distributions of available cash and/or intercompany receivable balances to their parents. In addition, HealthSouth makes contributions to certain wholly owned subsidiaries. When made, these dividends, distributions, and contributions impact the Intercompany receivable , Intercompany payable , and HealthSouth shareholders’ equity line items in the accompanying condensed consolidating balance sheet but have no impact on the consolidated financial statements of HealthSouth Corporation. Three Months Ended September 30, 2016 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net operating revenues $ 4.9 $ 546.6 $ 405.0 $ (29.7 ) $ 926.8 Less: Provision for doubtful accounts — (10.0 ) (4.8 ) — (14.8 ) Net operating revenues less provision for doubtful accounts 4.9 536.6 400.2 (29.7 ) 912.0 Operating expenses: Salaries and benefits 10.4 252.1 239.5 (4.6 ) 497.4 Other operating expenses 6.4 80.1 51.6 (11.8 ) 126.3 Occupancy costs 0.6 22.4 7.9 (13.3 ) 17.6 Supplies — 22.6 12.2 — 34.8 General and administrative expenses 30.4 — (0.1 ) — 30.3 Depreciation and amortization 2.3 26.1 15.1 — 43.5 Total operating expenses 50.1 403.3 326.2 (29.7 ) 749.9 Loss on early extinguishment of debt 2.6 — — — 2.6 Interest expense and amortization of debt discounts and fees 36.3 5.4 5.8 (5.0 ) 42.5 Other income (5.1 ) (0.1 ) (0.6 ) 5.0 (0.8 ) Equity in net income of nonconsolidated affiliates — (2.3 ) (0.2 ) — (2.5 ) Equity in net income of consolidated affiliates (86.1 ) (8.8 ) — 94.9 — Management fees (33.9 ) 26.0 7.9 — — Income from continuing operations before income tax (benefit) expense 41.0 113.1 61.1 (94.9 ) 120.3 Provision for income tax (benefit) expense (20.8 ) 45.1 17.8 — 42.1 Income from continuing operations 61.8 68.0 43.3 (94.9 ) 78.2 Loss from discontinued operations, net of tax (0.1 ) — — — (0.1 ) Net income 61.7 68.0 43.3 (94.9 ) 78.1 Less: Net income attributable to noncontrolling interests — — (16.4 ) — (16.4 ) Net income attributable to HealthSouth $ 61.7 $ 68.0 $ 26.9 $ (94.9 ) $ 61.7 Comprehensive income $ 61.6 $ 68.0 $ 43.3 $ (94.9 ) $ 78.0 Comprehensive income attributable to HealthSouth $ 61.6 $ 68.0 $ 26.9 $ (94.9 ) $ 61.6 Three Months Ended September 30, 2015 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net operating revenues $ 4.3 $ 458.8 $ 341.5 $ (26.0 ) $ 778.6 Less: Provision for doubtful accounts — (7.5 ) (3.2 ) — (10.7 ) Net operating revenues less provision for doubtful accounts 4.3 451.3 338.3 (26.0 ) 767.9 Operating expenses: Salaries and benefits 14.7 213.9 192.7 (4.2 ) 417.1 Other operating expenses 6.5 66.4 43.8 (10.0 ) 106.7 Occupancy costs 1.1 16.3 6.9 (11.8 ) 12.5 Supplies — 19.9 11.1 — 31.0 General and administrative expenses 27.8 — 2.8 — 30.6 Depreciation and amortization 2.6 19.8 11.3 — 33.7 Professional fees—accounting, tax, and legal 0.4 — — — 0.4 Total operating expenses 53.1 336.3 268.6 (26.0 ) 632.0 Interest expense and amortization of debt discounts and fees 33.4 1.9 2.9 (2.6 ) 35.6 Other income (2.5 ) (0.1 ) (0.7 ) 2.6 (0.7 ) Equity in net income of nonconsolidated affiliates — (2.4 ) — — (2.4 ) Equity in net income of consolidated affiliates (80.2 ) (9.7 ) — 89.9 — Management fees (29.2 ) 21.7 7.5 — — Income from continuing operations before income tax (benefit) expense 29.7 103.6 60.0 (89.9 ) 103.4 Provision for income tax (benefit) expense (20.7 ) 39.4 17.2 — 35.9 Income from continuing operations 50.4 64.2 42.8 (89.9 ) 67.5 Income from discontinued operations, net of tax 0.3 — — — 0.3 Net income 50.7 64.2 42.8 (89.9 ) 67.8 Less: Net income attributable to noncontrolling interests — — (17.1 ) — (17.1 ) Net income attributable to HealthSouth $ 50.7 $ 64.2 $ 25.7 $ (89.9 ) $ 50.7 Comprehensive income $ 49.9 $ 64.2 $ 42.8 $ (89.9 ) $ 67.0 Comprehensive income attributable to HealthSouth $ 49.9 $ 64.2 $ 25.7 $ (89.9 ) $ 49.9 Nine Months Ended September 30, 2016 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net operating revenues $ 14.9 $ 1,635.1 $ 1,195.3 $ (88.0 ) $ 2,757.3 Less: Provision for doubtful accounts — (32.4 ) (14.3 ) — (46.7 ) Net operating revenues less provision for doubtful accounts 14.9 1,602.7 1,181.0 (88.0 ) 2,710.6 Operating expenses: Salaries and benefits 32.7 752.0 698.6 (13.7 ) 1,469.6 Other operating expenses 18.9 232.6 149.9 (34.4 ) 367.0 Occupancy costs 2.4 67.2 23.8 (39.9 ) 53.5 Supplies — 67.8 36.4 — 104.2 General and administrative expenses 94.7 — 1.9 — 96.6 Depreciation and amortization 7.1 77.9 43.8 — 128.8 Professional fees—accounting, tax, and legal 1.9 — — — 1.9 Total operating expenses 157.7 1,197.5 954.4 (88.0 ) 2,221.6 Loss on early extinguishment of debt 7.4 — — — 7.4 Interest expense and amortization of debt discounts and fees 111.7 16.3 17.2 (14.7 ) 130.5 Other income (14.6 ) (0.2 ) (2.0 ) 14.7 (2.1 ) Equity in net income of nonconsolidated affiliates — (6.7 ) (0.6 ) — (7.3 ) Equity in net income of consolidated affiliates (260.5 ) (28.7 ) — 289.2 — Management fees (101.9 ) 77.7 24.2 — — Income from continuing operations before income tax (benefit) expense 115.1 346.8 187.8 (289.2 ) 360.5 Provision for income tax (benefit) expense (67.5 ) 138.4 53.3 — 124.2 Income from continuing operations 182.6 208.4 134.5 (289.2 ) 236.3 Loss from discontinued operations, net of tax (0.3 ) — — — (0.3 ) Net income 182.3 208.4 134.5 (289.2 ) 236.0 Less: Net income attributable to noncontrolling interests — — (53.7 ) — (53.7 ) Net income attributable to HealthSouth $ 182.3 $ 208.4 $ 80.8 $ (289.2 ) $ 182.3 Comprehensive income $ 182.5 $ 208.4 $ 134.5 $ (289.2 ) $ 236.2 Comprehensive income attributable to HealthSouth $ 182.5 $ 208.4 $ 80.8 $ (289.2 ) $ 182.5 Nine Months Ended September 30, 2015 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net operating revenues $ 14.7 $ 1,366.5 $ 978.8 $ (76.4 ) $ 2,283.6 Less: Provision for doubtful accounts — (24.5 ) (8.7 ) — (33.2 ) Net operating revenues less provision for doubtful accounts 14.7 1,342.0 970.1 (76.4 ) 2,250.4 Operating expenses: Salaries and benefits 35.0 632.1 549.4 (12.5 ) 1,204.0 Other operating expenses 22.7 195.1 126.9 (30.6 ) 314.1 Occupancy costs 3.2 46.7 20.5 (33.3 ) 37.1 Supplies — 60.9 33.2 — 94.1 General and administrative expenses 93.6 — 3.7 — 97.3 Depreciation and amortization 7.3 58.1 32.9 — 98.3 Government, class action, and related settlements 8.0 — — — 8.0 Professional fees—accounting, tax, and legal 2.7 — — — 2.7 Total operating expenses 172.5 992.9 766.6 (76.4 ) 1,855.6 Loss on early extinguishment of debt 20.0 — — — 20.0 Interest expense and amortization of debt discounts and fees 91.0 6.3 8.5 (7.5 ) 98.3 Other income (9.6 ) (0.2 ) (1.9 ) 7.5 (4.2 ) Equity in net income of nonconsolidated affiliates — (6.3 ) — — (6.3 ) Equity in net income of consolidated affiliates (240.3 ) (27.2 ) — 267.5 — Management fees (87.0 ) 64.8 22.2 — — Income from continuing operations before income tax (benefit) expense 68.1 311.7 174.7 (267.5 ) 287.0 Provision for income tax (benefit) expense (69.6 ) 118.5 49.5 — 98.4 Income from continuing operations 137.7 193.2 125.2 (267.5 ) 188.6 Loss from discontinued operations, net of tax (1.6 ) — — — (1.6 ) Net income 136.1 193.2 125.2 (267.5 ) 187.0 Less: Net income attributable to noncontrolling interests — — (50.9 ) — (50.9 ) Net income attributable to HealthSouth $ 136.1 $ 193.2 $ 74.3 $ (267.5 ) $ 136.1 Comprehensive income $ 135.5 $ 193.2 $ 125.2 $ (267.5 ) $ 186.4 Comprehensive income attributable to HealthSouth $ 135.5 $ 193.2 $ 74.3 $ (267.5 ) $ 135.5 As of September 30, 2016 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Assets Current assets: Cash and cash equivalents $ 56.1 $ 0.3 $ 20.0 $ — $ 76.4 Accounts receivable, net — 260.6 158.6 — 419.2 Other current assets 62.1 29.3 118.7 (39.7 ) 170.4 Total current assets 118.2 290.2 297.3 (39.7 ) 666.0 Property and equipment, net 26.9 984.2 342.0 — 1,353.1 Goodwill — 860.6 1,055.0 — 1,915.6 Intangible assets, net 9.8 118.3 282.0 — 410.1 Deferred income tax assets 56.6 64.1 — (48.1 ) 72.6 Other long-term assets 50.2 90.6 73.1 — 213.9 Intercompany notes receivable 542.6 — — (542.6 ) — Intercompany receivable and investments in consolidated affiliates 2,847.6 44.6 — (2,892.2 ) — Total assets $ 3,651.9 $ 2,452.6 $ 2,049.4 $ (3,522.6 ) $ 4,631.3 Liabilities and Shareholders’ Equity Current liabilities: Current portion of long-term debt $ 40.0 $ 6.1 $ 8.2 $ (17.5 ) $ 36.8 Accounts payable 7.3 39.0 21.2 — 67.5 Accrued expenses and other current liabilities 166.9 92.2 134.8 (22.2 ) 371.7 Total current liabilities 214.2 137.3 164.2 (39.7 ) 476.0 Long-term debt, net of current portion 2,669.8 250.7 53.5 — 2,974.0 Intercompany notes payable — — 542.6 (542.6 ) — Other long-term liabilities 41.6 14.9 149.4 (47.8 ) 158.1 Intercompany payable — — 177.2 (177.2 ) — 2,925.6 402.9 1,086.9 (807.3 ) 3,608.1 Commitments and contingencies Redeemable noncontrolling interests — — 109.4 — 109.4 Shareholders’ equity: HealthSouth shareholders’ equity 726.3 2,049.7 665.6 (2,715.3 ) 726.3 Noncontrolling interests — — 187.5 — 187.5 Total shareholders’ equity 726.3 2,049.7 853.1 (2,715.3 ) 913.8 Total liabilities and shareholders’ equity $ 3,651.9 $ 2,452.6 $ 2,049.4 $ (3,522.6 ) $ 4,631.3 As of December 31, 2015 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Assets Current assets: Cash and cash equivalents $ 41.2 $ 1.2 $ 19.2 $ — $ 61.6 Accounts receivable, net — 261.5 149.0 — 410.5 Other current assets 29.3 22.2 93.9 (18.8 ) 126.6 Total current assets 70.5 284.9 262.1 (18.8 ) 598.7 Property and equipment, net 14.5 988.4 307.2 — 1,310.1 Goodwill — 860.7 1,029.4 — 1,890.1 Intangible assets, net 8.8 122.4 288.2 — 419.4 Deferred income tax assets 176.2 64.1 — (49.5 ) 190.8 Other long-term assets 48.6 75.3 73.1 — 197.0 Intercompany notes receivable 546.6 — — (546.6 ) — Intercompany receivable and investments in consolidated affiliates 2,779.7 — — (2,779.7 ) — Total assets $ 3,644.9 $ 2,395.8 $ 1,960.0 $ (3,394.6 ) $ 4,606.1 Liabilities and Shareholders’ Equity Current liabilities: Current portion of long-term debt $ 40.0 $ 6.8 $ 7.5 $ (17.5 ) $ 36.8 Accounts payable 5.8 35.4 20.4 — 61.6 Accrued expenses and other current liabilities 122.2 71.8 135.3 (1.3 ) 328.0 Total current liabilities 168.0 114.0 163.2 (18.8 ) 426.4 Long-term debt, net of current portion 2,821.9 255.6 57.2 — 3,134.7 Intercompany notes payable — — 546.6 (546.6 ) — Other long-term liabilities 43.6 12.3 137.8 (49.1 ) 144.6 Intercompany payable — 156.7 157.5 (314.2 ) — 3,033.5 538.6 1,062.3 (928.7 ) 3,705.7 Commitments and contingencies Redeemable noncontrolling interests — — 121.1 — 121.1 Shareholders’ equity: HealthSouth shareholders’ equity 611.4 1,857.2 608.7 (2,465.9 ) 611.4 Noncontrolling interests — — 167.9 — 167.9 Total shareholders’ equity 611.4 1,857.2 776.6 (2,465.9 ) 779.3 Total liabilities and shareholders’ equity $ 3,644.9 $ 2,395.8 $ 1,960.0 $ (3,394.6 ) $ 4,606.1 Nine Months Ended September 30, 2016 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net cash provided by operating activities $ 77.8 $ 263.3 $ 148.4 $ — $ 489.5 Cash flows from investing activities: Purchases of property and equipment (9.2 ) (54.3 ) (50.4 ) — (113.9 ) Capitalized software costs (15.9 ) (0.1 ) (1.5 ) — (17.5 ) Acquisitions of businesses, net of cash acquired — — (19.6 ) — (19.6 ) Purchase of restricted investments — — (0.8 ) — (0.8 ) Net change in restricted cash — — (7.1 ) — (7.1 ) Funding of intercompany note receivable (11.5 ) — — 11.5 — Proceeds from repayment of intercompany note receivable 22.0 — — (22.0 ) — Other (3.3 ) 0.5 5.4 — 2.6 Net cash used in investing activities (17.9 ) (53.9 ) (74.0 ) (10.5 ) (156.3 ) Cash flows from financing activities: Principal payments on debt, including pre-payments (192.9 ) (1.3 ) (1.0 ) — (195.2 ) Principal borrowings on intercompany note payable — — 11.5 (11.5 ) — Principal payments on intercompany note payable — — (22.0 ) 22.0 — Borrowings on revolving credit facility 260.0 — — — 260.0 Payments on revolving credit facility (240.0 ) — — — (240.0 ) Repurchases of common stock, including fees and expenses (24.1 ) — — — (24.1 ) Dividends paid on common stock (62.4 ) — — — (62.4 ) Distributions paid to noncontrolling interests of consolidated affiliates — — (49.5 ) — (49.5 ) Other 3.3 (4.4 ) (6.1 ) — (7.2 ) Change in intercompany advances 211.1 (204.6 ) (6.5 ) — — Net cash used in financing activities (45.0 ) (210.3 ) (73.6 ) 10.5 (318.4 ) Increase (decrease) in cash and cash equivalents 14.9 (0.9 ) 0.8 — 14.8 Cash and cash equivalents at beginning of period 41.2 1.2 19.2 — 61.6 Cash and cash equivalents at end of period $ 56.1 $ 0.3 $ 20.0 $ — $ 76.4 Nine Months Ended September 30, 2015 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net cash provided by operating activities $ 21.6 $ 187.6 $ 159.0 $ — $ 368.2 Cash flows from investing activities: Purchases of property and equipment (10.0 ) (42.0 ) (33.2 ) — (85.2 ) Capitalized software costs (19.0 ) (0.4 ) (1.3 ) — (20.7 ) Acquisitions of businesses, net of cash acquired (56.6 ) — (30.5 ) — (87.1 ) Proceeds from sale of marketable securities 12.8 — — — 12.8 Purchase of restricted investments — — (6.5 ) — (6.5 ) Net change in restricted cash — — 3.2 — 3.2 Other 13.6 3.0 0.5 (13.0 ) 4.1 Net cash used in investing activities (59.2 ) (39.4 ) (67.8 ) (13.0 ) (179.4 ) Cash flows from financing activities: Principal borrowings under term loan facilities 125.0 — — — 125.0 Proceeds from bond issuance 1,400.0 — — — 1,400.0 Principal payments on debt, including pre-payments (545.0 ) (0.8 ) (0.5 ) — (546.3 ) Borrowings on revolving credit facility 315.0 — — — 315.0 Payments on revolving credit facility (615.0 ) — — — (615.0 ) Debt amendment and issuance costs (31.3 ) — — — (31.3 ) Dividends paid on common stock (56.3 ) — — — (56.3 ) Distributions paid to noncontrolling interests of consolidated affiliates — — (39.7 ) — (39.7 ) Other (1.3 ) (0.6 ) (16.4 ) 13.0 (5.3 ) Change in intercompany advances 191.3 (148.2 ) (43.1 ) — — Net cash provided by (used in) financing activities 782.4 (149.6 ) (99.7 ) 13.0 546.1 Increase (decrease) in cash and cash equivalents 744.8 (1.4 ) (8.5 ) — 734.9 Cash and cash equivalents at beginning of period 41.9 1.4 23.4 — 66.7 Cash and cash equivalents at end of period $ 786.7 $ — $ 14.9 $ — $ 801.6 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities — Effective January 1, 2016, in connection with our adoption of ASU 2015-02, we updated our evaluation of all jointly held legal entities to determine whether they are now variable interest entities (“VIEs”) under the new guidance. Any entity considered a VIE is evaluated to determine which party is the primary beneficiary and thus should consolidate the VIE. This analysis is complex, involves uncertainties, and requires significant judgment on various matters. In order to determine if we are the primary beneficiary of a VIE, we must determine what activities most significantly impact the economic performance of the entity, whether we have the power to direct those activities, and if our obligation to absorb losses or receive benefits from the VIE could potentially be significant to the VIE. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — In February 2015, the FASB issued ASU 2015-02, “Consolidations (Topic 810) - Amendments to the Consolidation Analysis,” which provided guidance on evaluating whether a reporting entity should consolidate certain legal entities. Specifically, the amendments modified the evaluation of whether limited partnerships and similar legal entities are VIEs. Under this analysis, limited partnerships and other similar entities are considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. Further, the amendments eliminated the presumption that a general partner should consolidate a limited partnership under the voting interest model, as well as affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This standard was effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. We elected to adopt this guidance using the modified retrospective approach. Our adoption of this guidance resulted in certain limited partnership-like entities that were previously consolidated as voting interest entities to now be consolidated as VIEs, for which additional disclosures are required. Our adoption of ASU 2015-02 did not have a material impact on our financial position, results of operations, or cash flows. See Note 3 , Variable Interest Entities . In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” in order to increase transparency and comparability by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new standard, lessees will recognize a right-of-use asset and a corresponding lease liability for all leases other than leases that meet the definition of a short-term lease. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in an expense pattern similar to current capital leases. Classification will be based on criteria that are similar to those applied in current lease accounting. This standard will be effective for HealthSouth for the annual reporting period beginning after December 15, 2018. Early adoption is permitted. We continue to review the requirements of this standard and its impact on our financial position, results of operations, or cash flows. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting (Topic 718),” to simplify various aspects of share-based payment accounting and presentation. The new standard requires entities to record all of the tax effects related to share-based payments at settlement (or expiration) through the income statement. This will require us to reclassify tax benefits in excess of compensation cost (“windfalls”) and tax deficiencies (“shortfalls”) to the extent of previous windfalls from Capital in excess of par value to Provision for income tax expense . This change is required to be applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements after the date of adoption of the ASU. The standard eliminates the requirement to delay recognition of a windfall tax benefit until it reduces current taxes payable. This change is required to be applied on a modified retrospective basis, with a cumulative-effect adjustment to opening retained earnings. In addition, all income tax-related cash flows resulting from share-based windfall tax benefits are required to be reported as operating activities on the statement of cash flows as opposed to the current presentation as an inflow from financing activities and an outflow from operating activities. Either prospective or retrospective transition of this provision is permitted. Finally, the standard clarifies that all cash payments made to taxing authorities on the employees’ behalf for withheld shares should be presented as financing activities on the statement of cash flows. This change will be applied retrospectively. For HealthSouth, this guidance is effective for annual reporting periods beginning after December 15, 2016 and interim periods within that reporting period. Early adoption is permitted, with any adjustments reflected as of the beginning of the fiscal year of adoption. Upon adoption, we anticipate recognizing our net windfall balance as an increase to Deferred income tax assets and a corresponding decrease to Accumulated deficit . Additionally, the historical and future amount of cash flows resulting from share-based windfall benefits and cash payments made to taxing authorities on the employees’ behalf for withheld shares will result in an increase to our historical and future Cash flows from operating activities and a decrease to Cash flows from financing activities . In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326),” which provides guidance for accounting for credit losses on financial instruments. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new guidance is effective for HealthSouth for the annual period beginning after December 15, 2019 and interim periods within that reporting period. Early adoption is permitted beginning after December 15, 2018. We continue to review the requirements of this standard and any potential impact it may have on our financial position, results of operations, or cash flows. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments,” to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. In addition, the standard clarifies when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The new guidance is effective retrospectively for HealthSouth for the annual reporting period beginning after December 15, 2017 and interim periods within that reporting period. Early adoption is permitted. We continue to review the requirements of this standard and any potential impact it may have on our financial position, results of operations, or cash flows. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Concentration of Net Operating Revenues by Payor | We derived consolidated Net operating revenues from the following payor sources: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Medicare 74.8 % 75.1 % 75.0 % 74.8 % Medicare Advantage 7.9 % 7.5 % 7.9 % 7.8 % Managed care 10.1 % 9.9 % 9.9 % 10.0 % Medicaid 3.3 % 3.4 % 3.3 % 3.0 % Other third-party payors 1.5 % 1.5 % 1.4 % 1.6 % Workers’ compensation 0.8 % 0.8 % 0.8 % 0.9 % Patients 0.5 % 0.5 % 0.5 % 0.6 % Other income 1.1 % 1.3 % 1.2 % 1.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % Inpatient Rehabilitation Revenues Our inpatient rehabilitation segment derived its Net operating revenues from the following payor sources: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Medicare 73.3 % 73.2 % 73.3 % 73.0 % Medicare Advantage 7.6 % 7.7 % 7.7 % 7.9 % Managed care 11.4 % 11.2 % 11.3 % 11.3 % Medicaid 3.0 % 3.0 % 3.0 % 2.6 % Other third-party payors 1.8 % 1.7 % 1.7 % 1.9 % Workers’ compensation 1.0 % 1.0 % 1.0 % 1.1 % Patients 0.6 % 0.6 % 0.6 % 0.7 % Other income 1.3 % 1.6 % 1.4 % 1.5 % Total 100.0 % 100.0 % 100.0 % 100.0 % Home Health and Hospice Revenues Our home health and hospice segment derived its Net operating revenues from the following payor sources: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Medicare 81.8 % 84.7 % 82.4 % 84.1 % Medicare Advantage 8.8 % 6.7 % 8.9 % 7.1 % Managed care 4.5 % 2.9 % 3.7 % 2.9 % Medicaid 4.7 % 5.7 % 4.8 % 5.7 % Other third-party payors — % — % — % 0.1 % Patients 0.1 % — % 0.1 % 0.1 % Other income 0.1 % — % 0.1 % — % Total 100.0 % 100.0 % 100.0 % 100.0 % |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed at the Acquisition Date | The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions): Identifiable intangible asset: Noncompete agreements (useful lives of 5 years) $ 0.2 Trade names (useful lives of 1 year) 0.2 Certificate of needs (useful lives of 10 years) 1.9 Licenses (useful lives of 10 years) 1.1 Goodwill 16.3 Total assets acquired 19.7 Total liabilities assumed (0.1 ) Net assets acquired $ 19.6 The fair value of the assets acquired at the acquisition date were as follows (in millions): Property and equipment $ 5.3 Identifiable intangible assets: Noncompete agreements (useful lives of 1 to 3 years) 0.4 Trade names (useful lives of 20 years) 1.0 Goodwill 9.4 Total assets acquired $ 16.1 |
Schedule of Noncash or Part Noncash Acquisitions | Information regarding the net cash paid for all inpatient rehabilitation acquisitions during each period presented is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Fair value of assets acquired $ 1.4 $ — $ 6.7 $ 62.8 Goodwill 7.6 — 9.4 0.7 Fair value of liabilities assumed — — — (2.7 ) Fair value of noncontrolling interest owned by joint venture partner (9.0 ) — (16.1 ) (4.2 ) Net cash paid for acquisition $ — $ — $ — $ 56.6 Information regarding the net cash paid for home health and hospice acquisitions during each period presented is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Fair value of assets acquired $ 1.9 $ 1.9 $ 3.4 $ 10.4 Goodwill 8.3 7.5 16.3 20.3 Fair value of liabilities assumed — (0.1 ) (0.1 ) (0.2 ) Net cash paid for acquisitions $ 10.2 $ 9.3 $ 19.6 $ 30.5 |
Summary of Actual and Pro Forma Results of Operations for Acquisitions | The following table summarizes the results of operations of the above mentioned inpatient rehabilitation hospitals and home health and hospice agencies from their respective dates of acquisition included in our consolidated results of operations and the unaudited pro forma results of operations of the combined entity had the date of the acquisitions been January 1, 2015 (in millions): Net Operating Revenues Net Income Attributable to HealthSouth Acquired entities only: Actual from acquisition date to September 30, 2016 $ 8.7 $ (2.3 ) Combined entity: Supplemental pro forma from 07/01/2016-09/30/2016 929.2 62.0 Combined entity: Supplemental pro forma from 07/01/2015-09/30/2015 786.7 51.4 Combined entity: Supplemental pro forma from 01/01/2016-09/30/2016 2,773.9 184.0 Combined entity: Supplemental pro forma from 01/01/2015-09/30/2015 2,308.2 136.8 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of carrying amounts and classifications of VIE's assets and liabilities | The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in our consolidated balance sheet, are as follows (in millions): September 30, 2016 Assets Current assets: Cash and cash equivalents $ 1.2 Accounts receivable, net of allowance for doubtful accounts 32.3 Other current assets 3.1 Total current assets 36.6 Property and equipment, net 137.6 Goodwill 73.5 Intangible assets, net 9.3 Other long-term assets 1.0 Total assets $ 258.0 Liabilities Current liabilities: Current portion of long-term debt $ 1.4 Accounts payable 7.0 Accrued expenses and other current liabilities 12.5 Total current liabilities 20.9 Long-term debt, net of current portion 30.2 Total liabilities $ 51.1 |
Investments in and Advances t25
Investments in and Advances to Nonconsolidated Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of Combined Results of Operations of Equity Method Affiliates | The following summarizes the combined results of operations of our equity method affiliates (on a 100% basis, in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net operating revenues $ 11.3 $ 9.2 $ 33.4 $ 26.3 Operating expenses (6.0 ) (4.0 ) (18.1 ) (11.7 ) Income from continuing operations, net of tax 5.2 5.1 15.2 13.8 Net income 5.2 5.1 15.2 13.8 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Long-term Debt | Our long-term debt outstanding consists of the following (in millions): September 30, 2016 December 31, 2015 Credit Agreement— Advances under revolving credit facility $ 150.0 $ 130.0 Term loan facilities 426.8 443.3 Bonds payable— 7.75% Senior Notes due 2022 — 174.3 5.125% Senior Notes due 2023 295.1 294.6 5.75% Senior Notes due 2024 1,193.1 1,192.6 5.75% Senior Notes due 2025 343.7 343.4 2.00% Convertible Senior Subordinated Notes due 2043 273.2 265.9 Other notes payable 47.1 39.2 Capital lease obligations 281.8 288.2 3,010.8 3,171.5 Less: Current portion (36.8 ) (36.8 ) Long-term debt, net of current portion $ 2,974.0 $ 3,134.7 |
Schedule of Debt Maturities | The following chart shows scheduled principal payments due on long-term debt for the next five years and thereafter (in millions): Face Amount Net Amount October 1 through December 31, 2016 $ 8.7 $ 8.7 2017 37.3 37.3 2018 37.8 37.8 2019 40.4 40.4 2020 834.2 786.1 2021 10.7 10.7 Thereafter 2,108.0 2,089.8 Total $ 3,077.1 $ 3,010.8 |
Redeemable Noncontrolling Int27
Redeemable Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The following is a summary of the activity related to our Redeemable noncontrolling interests during the nine months ended September 30, 2016 and 2015 (in millions): Nine Months Ended September 30, 2016 2015 Balance at beginning of period $ 121.1 $ 84.7 Net income attributable to noncontrolling interests 11.2 10.1 Distributions declared (6.4 ) (5.6 ) Change in fair value (16.5 ) 24.9 Balance at end of period $ 109.4 $ 114.1 |
Reconciliation of Noncontrolling Interests | The following table reconciles the net income attributable to nonredeemable Noncontrolling interests , as recorded in the shareholders’ equity section of the condensed consolidated balance sheets, and the net income attributable to Redeemable noncontrolling interests , as recorded in the mezzanine section of the condensed consolidated balance sheets, to the Net income attributable to noncontrolling interests presented in the condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to nonredeemable noncontrolling interests $ 12.7 $ 13.4 $ 42.5 $ 40.8 Net income attributable to redeemable noncontrolling interests 3.7 3.7 11.2 10.1 Net income attributable to noncontrolling interests $ 16.4 $ 17.1 $ 53.7 $ 50.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis | Our financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in millions): Fair Value Measurements at Reporting Date Using As of September 30, 2016 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique (1) Other current assets: Current portion of restricted marketable securities $ 24.2 $ — $ 24.2 $ — M Other long-term assets: Restricted marketable securities 33.3 — 33.3 — M Redeemable noncontrolling interests 109.4 — — 109.4 I As of December 31, 2015 Other current assets: Current portion of restricted marketable securities $ 16.1 $ — $ 16.1 $ — M Other long-term assets: Restricted marketable securities 40.1 — 40.1 — M Redeemable noncontrolling interests 121.1 — — 121.1 I (1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I). |
Schedule of Carrying Amounts and Estimated Fair Values, Financial Instruments | The carrying amounts and estimated fair values for all of our other financial instruments are presented in the following table (in millions): As of September 30, 2016 As of December 31, 2015 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt: Advances under revolving credit facility $ 150.0 $ 150.0 $ 130.0 $ 130.0 Term loan facilities 426.8 428.1 443.3 445.0 7.75% Senior Notes due 2022 — — 174.3 183.7 5.125% Senior Notes due 2023 295.1 299.3 294.6 288.0 5.75% Senior Notes due 2024 1,193.1 1,239.0 1,192.6 1,146.0 5.75% Senior Notes due 2025 343.7 364.9 343.4 332.5 2.00% Convertible Senior Subordinated Notes due 2043 273.2 377.3 265.9 345.0 Other notes payable 47.1 47.1 39.2 39.2 Financial commitments: Letters of credit — 33.3 — 34.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending liability for unrecognized tax benefits is as follows (in millions): Gross Unrecognized Income Tax Benefits Balance at December 31, 2015 $ 2.9 Gross amount of increases in unrecognized tax benefits related to prior periods 0.3 Gross amount of decreases in unrecognized tax benefits related to prior periods (0.4 ) Gross amount of increases in unrecognized tax benefits related to current periods 0.1 Gross amount of decreases in unrecognized tax benefits related to current periods (0.1 ) Balance at September 30, 2016 $ 2.8 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
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, 2016 2015 2016 2015 Basic: Numerator: Income from continuing operations $ 78.2 $ 67.5 $ 236.3 $ 188.6 Less: Net income attributable to noncontrolling interests included in continuing operations (16.4 ) (17.1 ) (53.7 ) (50.9 ) Less: Income allocated to participating securities (0.2 ) (0.3 ) (0.6 ) (0.9 ) Less: Convertible perpetual preferred stock dividends — — — (1.6 ) Income from continuing operations attributable to HealthSouth common shareholders 61.6 50.1 182.0 135.2 (Loss) income from discontinued operations, net of tax, attributable to HealthSouth common shareholders (0.1 ) 0.3 (0.3 ) (1.6 ) Net income attributable to HealthSouth common shareholders $ 61.5 $ 50.4 $ 181.7 $ 133.6 Denominator: Basic weighted average common shares outstanding 89.1 90.6 89.3 89.1 Basic earnings per share attributable to HealthSouth common shareholders: Continuing operations $ 0.69 $ 0.56 $ 2.03 $ 1.52 Discontinued operations — — — (0.02 ) Net income $ 0.69 $ 0.56 $ 2.03 $ 1.50 Diluted: Numerator: Income from continuing operations $ 78.2 $ 67.5 $ 236.3 $ 188.6 Less: Net income attributable to noncontrolling interests included in continuing operations (16.4 ) (17.1 ) (53.7 ) (50.9 ) Add: Interest on convertible debt, net of tax 2.4 2.4 7.2 7.0 Income from continuing operations attributable to HealthSouth common shareholders 64.2 52.8 189.8 144.7 (Loss) income from discontinued operations, net of tax, attributable to HealthSouth common shareholders (0.1 ) 0.3 (0.3 ) (1.6 ) Net income attributable to HealthSouth common shareholders $ 64.1 $ 53.1 $ 189.5 $ 143.1 Denominator: Diluted weighted average common shares outstanding 99.4 101.5 99.5 101.4 Diluted earnings per share attributable to HealthSouth common shareholders: Continuing operations $ 0.64 $ 0.52 $ 1.90 $ 1.43 Discontinued operations — — — (0.02 ) Net income $ 0.64 $ 0.52 $ 1.90 $ 1.41 |
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, 2016 2015 2016 2015 Basic weighted average common shares outstanding 89.1 90.6 89.3 89.1 Convertible perpetual preferred stock — — — 1.3 Convertible senior subordinated notes 8.5 8.4 8.5 8.3 Restricted stock awards, dilutive stock options, restricted stock units, and common stock warrants 1.8 2.5 1.7 2.7 Diluted weighted average common shares outstanding 99.4 101.5 99.5 101.4 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Net operating revenues $ 751.7 $ 651.6 $ 2,253.5 $ 1,927.2 $ 175.1 $ 127.0 $ 503.8 $ 356.4 Less: Provision for doubtful accounts (13.7 ) (10.2 ) (43.8 ) (31.4 ) (1.1 ) (0.5 ) (2.9 ) (1.8 ) Net operating revenues less provision for doubtful accounts 738.0 641.4 2,209.7 1,895.8 174.0 126.5 500.9 354.6 Operating expenses: Inpatient rehabilitation: Salaries and benefits 371.2 326.8 1,107.2 950.8 — — — — Other operating expenses 110.1 95.8 321.7 284.5 — — — — Supplies 31.9 28.9 96.1 88.6 — — — — Occupancy costs 15.0 10.6 46.0 31.7 — — — — Home health and hospice: Cost of services sold (excluding depreciation and amortization) — — — — 86.8 61.7 246.8 171.8 Support and overhead costs — — — — 59.5 42.6 174.5 121.7 528.2 462.1 1,571.0 1,355.6 146.3 104.3 421.3 293.5 Other income (0.8 ) (0.1 ) (2.1 ) (1.0 ) — — — — Equity in net income of nonconsolidated affiliates (2.3 ) (2.4 ) (6.7 ) (6.3 ) (0.2 ) — (0.6 ) — Noncontrolling interests 14.3 15.6 47.9 46.4 2.1 1.5 5.8 4.5 Segment Adjusted EBITDA $ 198.6 $ 166.2 $ 599.6 $ 501.1 $ 25.8 $ 20.7 $ 74.4 $ 56.6 Capital expenditures $ 42.7 $ 43.8 $ 128.9 $ 103.2 $ 2.2 $ 0.5 $ 4.6 $ 2.7 |
Reconciliation of Assets from Segment to Consolidated | September 30, 2016 December 31, 2015 Total assets for reportable segments $ 4,702.6 $ 4,677.4 Reclassification of deferred income tax liabilities to net deferred income tax assets (71.3 ) (71.3 ) Total consolidated assets $ 4,631.3 $ 4,606.1 Inpatient Rehabilitation Home Health and Hospice HealthSouth Consolidated As of September 30, 2016 Total assets $ 3,593.3 $ 1,109.3 $ 4,631.3 Investments in and advances to nonconsolidated affiliates 10.5 2.5 13.0 As of December 31, 2015 Total assets $ 3,589.0 $ 1,088.4 $ 4,606.1 Investments in and advances to nonconsolidated affiliates 9.3 2.4 11.7 |
Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense | Segment reconciliations (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Total segment Adjusted EBITDA $ 224.4 $ 186.9 $ 674.0 $ 557.7 General and administrative expenses (30.3 ) (30.6 ) (96.6 ) (97.3 ) Depreciation and amortization (43.5 ) (33.7 ) (128.8 ) (98.3 ) Loss on disposal or impairment of assets (1.6 ) (0.9 ) (2.0 ) (0.2 ) Government, class action, and related settlements — — — (8.0 ) Professional fees - accounting, tax, and legal — (0.4 ) (1.9 ) (2.7 ) Loss on early extinguishment of debt (2.6 ) — (7.4 ) (20.0 ) Interest expense and amortization of debt discounts and fees (42.5 ) (35.6 ) (130.5 ) (98.3 ) Net income attributable to noncontrolling interests 16.4 17.1 53.7 50.9 Gain related to SCA equity interest — 0.6 — 3.2 Income from continuing operations before income tax expense $ 120.3 $ 103.4 $ 360.5 $ 287.0 |
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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Inpatient rehabilitation: Inpatient $ 724.1 $ 625.1 $ 2,164.6 $ 1,850.4 Outpatient and other 27.6 26.5 88.9 76.8 Total inpatient rehabilitation 751.7 651.6 2,253.5 1,927.2 Home health and hospice: Home health 162.0 118.3 470.0 333.7 Hospice 13.1 8.7 33.8 22.7 Total home health and hospice 175.1 127.0 503.8 356.4 Total net operating revenues $ 926.8 $ 778.6 $ 2,757.3 $ 2,283.6 |
Condensed Consolidating Finan32
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Operations | Three Months Ended September 30, 2016 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net operating revenues $ 4.9 $ 546.6 $ 405.0 $ (29.7 ) $ 926.8 Less: Provision for doubtful accounts — (10.0 ) (4.8 ) — (14.8 ) Net operating revenues less provision for doubtful accounts 4.9 536.6 400.2 (29.7 ) 912.0 Operating expenses: Salaries and benefits 10.4 252.1 239.5 (4.6 ) 497.4 Other operating expenses 6.4 80.1 51.6 (11.8 ) 126.3 Occupancy costs 0.6 22.4 7.9 (13.3 ) 17.6 Supplies — 22.6 12.2 — 34.8 General and administrative expenses 30.4 — (0.1 ) — 30.3 Depreciation and amortization 2.3 26.1 15.1 — 43.5 Total operating expenses 50.1 403.3 326.2 (29.7 ) 749.9 Loss on early extinguishment of debt 2.6 — — — 2.6 Interest expense and amortization of debt discounts and fees 36.3 5.4 5.8 (5.0 ) 42.5 Other income (5.1 ) (0.1 ) (0.6 ) 5.0 (0.8 ) Equity in net income of nonconsolidated affiliates — (2.3 ) (0.2 ) — (2.5 ) Equity in net income of consolidated affiliates (86.1 ) (8.8 ) — 94.9 — Management fees (33.9 ) 26.0 7.9 — — Income from continuing operations before income tax (benefit) expense 41.0 113.1 61.1 (94.9 ) 120.3 Provision for income tax (benefit) expense (20.8 ) 45.1 17.8 — 42.1 Income from continuing operations 61.8 68.0 43.3 (94.9 ) 78.2 Loss from discontinued operations, net of tax (0.1 ) — — — (0.1 ) Net income 61.7 68.0 43.3 (94.9 ) 78.1 Less: Net income attributable to noncontrolling interests — — (16.4 ) — (16.4 ) Net income attributable to HealthSouth $ 61.7 $ 68.0 $ 26.9 $ (94.9 ) $ 61.7 Comprehensive income $ 61.6 $ 68.0 $ 43.3 $ (94.9 ) $ 78.0 Comprehensive income attributable to HealthSouth $ 61.6 $ 68.0 $ 26.9 $ (94.9 ) $ 61.6 Three Months Ended September 30, 2015 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net operating revenues $ 4.3 $ 458.8 $ 341.5 $ (26.0 ) $ 778.6 Less: Provision for doubtful accounts — (7.5 ) (3.2 ) — (10.7 ) Net operating revenues less provision for doubtful accounts 4.3 451.3 338.3 (26.0 ) 767.9 Operating expenses: Salaries and benefits 14.7 213.9 192.7 (4.2 ) 417.1 Other operating expenses 6.5 66.4 43.8 (10.0 ) 106.7 Occupancy costs 1.1 16.3 6.9 (11.8 ) 12.5 Supplies — 19.9 11.1 — 31.0 General and administrative expenses 27.8 — 2.8 — 30.6 Depreciation and amortization 2.6 19.8 11.3 — 33.7 Professional fees—accounting, tax, and legal 0.4 — — — 0.4 Total operating expenses 53.1 336.3 268.6 (26.0 ) 632.0 Interest expense and amortization of debt discounts and fees 33.4 1.9 2.9 (2.6 ) 35.6 Other income (2.5 ) (0.1 ) (0.7 ) 2.6 (0.7 ) Equity in net income of nonconsolidated affiliates — (2.4 ) — — (2.4 ) Equity in net income of consolidated affiliates (80.2 ) (9.7 ) — 89.9 — Management fees (29.2 ) 21.7 7.5 — — Income from continuing operations before income tax (benefit) expense 29.7 103.6 60.0 (89.9 ) 103.4 Provision for income tax (benefit) expense (20.7 ) 39.4 17.2 — 35.9 Income from continuing operations 50.4 64.2 42.8 (89.9 ) 67.5 Income from discontinued operations, net of tax 0.3 — — — 0.3 Net income 50.7 64.2 42.8 (89.9 ) 67.8 Less: Net income attributable to noncontrolling interests — — (17.1 ) — (17.1 ) Net income attributable to HealthSouth $ 50.7 $ 64.2 $ 25.7 $ (89.9 ) $ 50.7 Comprehensive income $ 49.9 $ 64.2 $ 42.8 $ (89.9 ) $ 67.0 Comprehensive income attributable to HealthSouth $ 49.9 $ 64.2 $ 25.7 $ (89.9 ) $ 49.9 Nine Months Ended September 30, 2016 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net operating revenues $ 14.9 $ 1,635.1 $ 1,195.3 $ (88.0 ) $ 2,757.3 Less: Provision for doubtful accounts — (32.4 ) (14.3 ) — (46.7 ) Net operating revenues less provision for doubtful accounts 14.9 1,602.7 1,181.0 (88.0 ) 2,710.6 Operating expenses: Salaries and benefits 32.7 752.0 698.6 (13.7 ) 1,469.6 Other operating expenses 18.9 232.6 149.9 (34.4 ) 367.0 Occupancy costs 2.4 67.2 23.8 (39.9 ) 53.5 Supplies — 67.8 36.4 — 104.2 General and administrative expenses 94.7 — 1.9 — 96.6 Depreciation and amortization 7.1 77.9 43.8 — 128.8 Professional fees—accounting, tax, and legal 1.9 — — — 1.9 Total operating expenses 157.7 1,197.5 954.4 (88.0 ) 2,221.6 Loss on early extinguishment of debt 7.4 — — — 7.4 Interest expense and amortization of debt discounts and fees 111.7 16.3 17.2 (14.7 ) 130.5 Other income (14.6 ) (0.2 ) (2.0 ) 14.7 (2.1 ) Equity in net income of nonconsolidated affiliates — (6.7 ) (0.6 ) — (7.3 ) Equity in net income of consolidated affiliates (260.5 ) (28.7 ) — 289.2 — Management fees (101.9 ) 77.7 24.2 — — Income from continuing operations before income tax (benefit) expense 115.1 346.8 187.8 (289.2 ) 360.5 Provision for income tax (benefit) expense (67.5 ) 138.4 53.3 — 124.2 Income from continuing operations 182.6 208.4 134.5 (289.2 ) 236.3 Loss from discontinued operations, net of tax (0.3 ) — — — (0.3 ) Net income 182.3 208.4 134.5 (289.2 ) 236.0 Less: Net income attributable to noncontrolling interests — — (53.7 ) — (53.7 ) Net income attributable to HealthSouth $ 182.3 $ 208.4 $ 80.8 $ (289.2 ) $ 182.3 Comprehensive income $ 182.5 $ 208.4 $ 134.5 $ (289.2 ) $ 236.2 Comprehensive income attributable to HealthSouth $ 182.5 $ 208.4 $ 80.8 $ (289.2 ) $ 182.5 Nine Months Ended September 30, 2015 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net operating revenues $ 14.7 $ 1,366.5 $ 978.8 $ (76.4 ) $ 2,283.6 Less: Provision for doubtful accounts — (24.5 ) (8.7 ) — (33.2 ) Net operating revenues less provision for doubtful accounts 14.7 1,342.0 970.1 (76.4 ) 2,250.4 Operating expenses: Salaries and benefits 35.0 632.1 549.4 (12.5 ) 1,204.0 Other operating expenses 22.7 195.1 126.9 (30.6 ) 314.1 Occupancy costs 3.2 46.7 20.5 (33.3 ) 37.1 Supplies — 60.9 33.2 — 94.1 General and administrative expenses 93.6 — 3.7 — 97.3 Depreciation and amortization 7.3 58.1 32.9 — 98.3 Government, class action, and related settlements 8.0 — — — 8.0 Professional fees—accounting, tax, and legal 2.7 — — — 2.7 Total operating expenses 172.5 992.9 766.6 (76.4 ) 1,855.6 Loss on early extinguishment of debt 20.0 — — — 20.0 Interest expense and amortization of debt discounts and fees 91.0 6.3 8.5 (7.5 ) 98.3 Other income (9.6 ) (0.2 ) (1.9 ) 7.5 (4.2 ) Equity in net income of nonconsolidated affiliates — (6.3 ) — — (6.3 ) Equity in net income of consolidated affiliates (240.3 ) (27.2 ) — 267.5 — Management fees (87.0 ) 64.8 22.2 — — Income from continuing operations before income tax (benefit) expense 68.1 311.7 174.7 (267.5 ) 287.0 Provision for income tax (benefit) expense (69.6 ) 118.5 49.5 — 98.4 Income from continuing operations 137.7 193.2 125.2 (267.5 ) 188.6 Loss from discontinued operations, net of tax (1.6 ) — — — (1.6 ) Net income 136.1 193.2 125.2 (267.5 ) 187.0 Less: Net income attributable to noncontrolling interests — — (50.9 ) — (50.9 ) Net income attributable to HealthSouth $ 136.1 $ 193.2 $ 74.3 $ (267.5 ) $ 136.1 Comprehensive income $ 135.5 $ 193.2 $ 125.2 $ (267.5 ) $ 186.4 Comprehensive income attributable to HealthSouth $ 135.5 $ 193.2 $ 74.3 $ (267.5 ) $ 135.5 |
Condensed Consolidating Balance Sheet | As of September 30, 2016 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Assets Current assets: Cash and cash equivalents $ 56.1 $ 0.3 $ 20.0 $ — $ 76.4 Accounts receivable, net — 260.6 158.6 — 419.2 Other current assets 62.1 29.3 118.7 (39.7 ) 170.4 Total current assets 118.2 290.2 297.3 (39.7 ) 666.0 Property and equipment, net 26.9 984.2 342.0 — 1,353.1 Goodwill — 860.6 1,055.0 — 1,915.6 Intangible assets, net 9.8 118.3 282.0 — 410.1 Deferred income tax assets 56.6 64.1 — (48.1 ) 72.6 Other long-term assets 50.2 90.6 73.1 — 213.9 Intercompany notes receivable 542.6 — — (542.6 ) — Intercompany receivable and investments in consolidated affiliates 2,847.6 44.6 — (2,892.2 ) — Total assets $ 3,651.9 $ 2,452.6 $ 2,049.4 $ (3,522.6 ) $ 4,631.3 Liabilities and Shareholders’ Equity Current liabilities: Current portion of long-term debt $ 40.0 $ 6.1 $ 8.2 $ (17.5 ) $ 36.8 Accounts payable 7.3 39.0 21.2 — 67.5 Accrued expenses and other current liabilities 166.9 92.2 134.8 (22.2 ) 371.7 Total current liabilities 214.2 137.3 164.2 (39.7 ) 476.0 Long-term debt, net of current portion 2,669.8 250.7 53.5 — 2,974.0 Intercompany notes payable — — 542.6 (542.6 ) — Other long-term liabilities 41.6 14.9 149.4 (47.8 ) 158.1 Intercompany payable — — 177.2 (177.2 ) — 2,925.6 402.9 1,086.9 (807.3 ) 3,608.1 Commitments and contingencies Redeemable noncontrolling interests — — 109.4 — 109.4 Shareholders’ equity: HealthSouth shareholders’ equity 726.3 2,049.7 665.6 (2,715.3 ) 726.3 Noncontrolling interests — — 187.5 — 187.5 Total shareholders’ equity 726.3 2,049.7 853.1 (2,715.3 ) 913.8 Total liabilities and shareholders’ equity $ 3,651.9 $ 2,452.6 $ 2,049.4 $ (3,522.6 ) $ 4,631.3 As of December 31, 2015 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Assets Current assets: Cash and cash equivalents $ 41.2 $ 1.2 $ 19.2 $ — $ 61.6 Accounts receivable, net — 261.5 149.0 — 410.5 Other current assets 29.3 22.2 93.9 (18.8 ) 126.6 Total current assets 70.5 284.9 262.1 (18.8 ) 598.7 Property and equipment, net 14.5 988.4 307.2 — 1,310.1 Goodwill — 860.7 1,029.4 — 1,890.1 Intangible assets, net 8.8 122.4 288.2 — 419.4 Deferred income tax assets 176.2 64.1 — (49.5 ) 190.8 Other long-term assets 48.6 75.3 73.1 — 197.0 Intercompany notes receivable 546.6 — — (546.6 ) — Intercompany receivable and investments in consolidated affiliates 2,779.7 — — (2,779.7 ) — Total assets $ 3,644.9 $ 2,395.8 $ 1,960.0 $ (3,394.6 ) $ 4,606.1 Liabilities and Shareholders’ Equity Current liabilities: Current portion of long-term debt $ 40.0 $ 6.8 $ 7.5 $ (17.5 ) $ 36.8 Accounts payable 5.8 35.4 20.4 — 61.6 Accrued expenses and other current liabilities 122.2 71.8 135.3 (1.3 ) 328.0 Total current liabilities 168.0 114.0 163.2 (18.8 ) 426.4 Long-term debt, net of current portion 2,821.9 255.6 57.2 — 3,134.7 Intercompany notes payable — — 546.6 (546.6 ) — Other long-term liabilities 43.6 12.3 137.8 (49.1 ) 144.6 Intercompany payable — 156.7 157.5 (314.2 ) — 3,033.5 538.6 1,062.3 (928.7 ) 3,705.7 Commitments and contingencies Redeemable noncontrolling interests — — 121.1 — 121.1 Shareholders’ equity: HealthSouth shareholders’ equity 611.4 1,857.2 608.7 (2,465.9 ) 611.4 Noncontrolling interests — — 167.9 — 167.9 Total shareholders’ equity 611.4 1,857.2 776.6 (2,465.9 ) 779.3 Total liabilities and shareholders’ equity $ 3,644.9 $ 2,395.8 $ 1,960.0 $ (3,394.6 ) $ 4,606.1 |
Condensed Consolidating Statement of Cash Flows | Nine Months Ended September 30, 2016 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net cash provided by operating activities $ 77.8 $ 263.3 $ 148.4 $ — $ 489.5 Cash flows from investing activities: Purchases of property and equipment (9.2 ) (54.3 ) (50.4 ) — (113.9 ) Capitalized software costs (15.9 ) (0.1 ) (1.5 ) — (17.5 ) Acquisitions of businesses, net of cash acquired — — (19.6 ) — (19.6 ) Purchase of restricted investments — — (0.8 ) — (0.8 ) Net change in restricted cash — — (7.1 ) — (7.1 ) Funding of intercompany note receivable (11.5 ) — — 11.5 — Proceeds from repayment of intercompany note receivable 22.0 — — (22.0 ) — Other (3.3 ) 0.5 5.4 — 2.6 Net cash used in investing activities (17.9 ) (53.9 ) (74.0 ) (10.5 ) (156.3 ) Cash flows from financing activities: Principal payments on debt, including pre-payments (192.9 ) (1.3 ) (1.0 ) — (195.2 ) Principal borrowings on intercompany note payable — — 11.5 (11.5 ) — Principal payments on intercompany note payable — — (22.0 ) 22.0 — Borrowings on revolving credit facility 260.0 — — — 260.0 Payments on revolving credit facility (240.0 ) — — — (240.0 ) Repurchases of common stock, including fees and expenses (24.1 ) — — — (24.1 ) Dividends paid on common stock (62.4 ) — — — (62.4 ) Distributions paid to noncontrolling interests of consolidated affiliates — — (49.5 ) — (49.5 ) Other 3.3 (4.4 ) (6.1 ) — (7.2 ) Change in intercompany advances 211.1 (204.6 ) (6.5 ) — — Net cash used in financing activities (45.0 ) (210.3 ) (73.6 ) 10.5 (318.4 ) Increase (decrease) in cash and cash equivalents 14.9 (0.9 ) 0.8 — 14.8 Cash and cash equivalents at beginning of period 41.2 1.2 19.2 — 61.6 Cash and cash equivalents at end of period $ 56.1 $ 0.3 $ 20.0 $ — $ 76.4 Nine Months Ended September 30, 2015 HealthSouth Corporation Guarantor Subsidiaries Nonguarantor Subsidiaries Eliminating Entries HealthSouth Consolidated (In Millions) Net cash provided by operating activities $ 21.6 $ 187.6 $ 159.0 $ — $ 368.2 Cash flows from investing activities: Purchases of property and equipment (10.0 ) (42.0 ) (33.2 ) — (85.2 ) Capitalized software costs (19.0 ) (0.4 ) (1.3 ) — (20.7 ) Acquisitions of businesses, net of cash acquired (56.6 ) — (30.5 ) — (87.1 ) Proceeds from sale of marketable securities 12.8 — — — 12.8 Purchase of restricted investments — — (6.5 ) — (6.5 ) Net change in restricted cash — — 3.2 — 3.2 Other 13.6 3.0 0.5 (13.0 ) 4.1 Net cash used in investing activities (59.2 ) (39.4 ) (67.8 ) (13.0 ) (179.4 ) Cash flows from financing activities: Principal borrowings under term loan facilities 125.0 — — — 125.0 Proceeds from bond issuance 1,400.0 — — — 1,400.0 Principal payments on debt, including pre-payments (545.0 ) (0.8 ) (0.5 ) — (546.3 ) Borrowings on revolving credit facility 315.0 — — — 315.0 Payments on revolving credit facility (615.0 ) — — — (615.0 ) Debt amendment and issuance costs (31.3 ) — — — (31.3 ) Dividends paid on common stock (56.3 ) — — — (56.3 ) Distributions paid to noncontrolling interests of consolidated affiliates — — (39.7 ) — (39.7 ) Other (1.3 ) (0.6 ) (16.4 ) 13.0 (5.3 ) Change in intercompany advances 191.3 (148.2 ) (43.1 ) — — Net cash provided by (used in) financing activities 782.4 (149.6 ) (99.7 ) 13.0 546.1 Increase (decrease) in cash and cash equivalents 744.8 (1.4 ) (8.5 ) — 734.9 Cash and cash equivalents at beginning of period 41.9 1.4 23.4 — 66.7 Cash and cash equivalents at end of period $ 786.7 $ — $ 14.9 $ — $ 801.6 |
Basis of Presentation - Table 1
Basis of Presentation - Table 1 (Details) - Net operating revenues [Member] - Payor Source [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Inpatient Rehabilitation Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Home Health and Hospice Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Other Income Source [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 1.10% | 1.30% | 1.20% | 1.30% |
Other Income Source [Member] | Inpatient Rehabilitation Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 1.30% | 1.60% | 1.40% | 1.50% |
Other Income Source [Member] | Home Health and Hospice Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 0.10% | 0.00% | 0.10% | 0.00% |
Third-Party Payor [Member] | Medicare [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 74.80% | 75.10% | 75.00% | 74.80% |
Third-Party Payor [Member] | Medicare [Member] | Inpatient Rehabilitation Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 73.30% | 73.20% | 73.30% | 73.00% |
Third-Party Payor [Member] | Medicare [Member] | Home Health and Hospice Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 81.80% | 84.70% | 82.40% | 84.10% |
Third-Party Payor [Member] | Medicare Advantage [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 7.90% | 7.50% | 7.90% | 7.80% |
Third-Party Payor [Member] | Medicare Advantage [Member] | Inpatient Rehabilitation Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 7.60% | 7.70% | 7.70% | 7.90% |
Third-Party Payor [Member] | Medicare Advantage [Member] | Home Health and Hospice Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 8.80% | 6.70% | 8.90% | 7.10% |
Third-Party Payor [Member] | Managed Care [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 10.10% | 9.90% | 9.90% | 10.00% |
Third-Party Payor [Member] | Managed Care [Member] | Inpatient Rehabilitation Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 11.40% | 11.20% | 11.30% | 11.30% |
Third-Party Payor [Member] | Managed Care [Member] | Home Health and Hospice Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 4.50% | 2.90% | 3.70% | 2.90% |
Third-Party Payor [Member] | Medicaid [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 3.30% | 3.40% | 3.30% | 3.00% |
Third-Party Payor [Member] | Medicaid [Member] | Inpatient Rehabilitation Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 3.00% | 3.00% | 3.00% | 2.60% |
Third-Party Payor [Member] | Medicaid [Member] | Home Health and Hospice Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 4.70% | 5.70% | 4.80% | 5.70% |
Third-Party Payor [Member] | Other Third-party Payors [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 1.50% | 1.50% | 1.40% | 1.60% |
Third-Party Payor [Member] | Other Third-party Payors [Member] | Inpatient Rehabilitation Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 1.80% | 1.70% | 1.70% | 1.90% |
Third-Party Payor [Member] | Other Third-party Payors [Member] | Home Health and Hospice Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 0.00% | 0.00% | 0.00% | 0.10% |
Third-Party Payor [Member] | Workers' Compensation [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 0.80% | 0.80% | 0.80% | 0.90% |
Third-Party Payor [Member] | Workers' Compensation [Member] | Inpatient Rehabilitation Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 1.00% | 1.00% | 1.00% | 1.10% |
Self-Pay [Member] | Patients [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 0.50% | 0.50% | 0.50% | 0.60% |
Self-Pay [Member] | Patients [Member] | Inpatient Rehabilitation Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 0.60% | 0.60% | 0.60% | 0.70% |
Self-Pay [Member] | Patients [Member] | Home Health and Hospice Segment [Member] | ||||
Concentration Risk [Line Items] | ||||
Net operating revenues by payor source (percent) | 0.10% | 0.00% | 0.10% | 0.10% |
Business Combinations - Textual
Business Combinations - Textual (Details) | 9 Months Ended | ||||
Sep. 30, 2016USD ($)location | Aug. 31, 2016bed | Jul. 31, 2016location | May 31, 2016location | Feb. 01, 2016bed | |
Inpatient Rehabilitation Segment [Member] | CHI St. Vincent Hot Springs [Member] | |||||
Business Acquisition [Line Items] | |||||
Interest acquired (percent) | 50.00% | ||||
Number of beds in facility acquired | bed | 20 | ||||
Inpatient Rehabilitation Segment [Member] | St. Joseph Regional Health Center (Bryan) [Member] | |||||
Business Acquisition [Line Items] | |||||
Interest acquired (percent) | 50.00% | ||||
Number of beds in facility acquired | bed | 19 | ||||
Inpatient Rehabilitation Segment [Member] | The Bernsen Rehabilitation Center at St. John (Broken Arrow) [Member] | |||||
Business Acquisition [Line Items] | |||||
Interest acquired (percent) | 51.00% | ||||
Number of beds in facility acquired | bed | 24 | ||||
Inpatient Rehabilitation Segment [Member] | Hot Springs, Bryan and Broken Arrow [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill deductible for federal income tax purposes | $ | $ 0 | ||||
Inpatient Rehabilitation Segment [Member] | Hot Springs, Bryan and Broken Arrow [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible asset useful lives | 20 years | ||||
Home Health and Hospice Segment [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of locations across the states | 223 | ||||
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill deductible for federal income tax purposes | $ | $ 16,300,000 | ||||
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible asset useful lives | 5 years | ||||
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible asset useful lives | 1 year | ||||
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | Certificate of Need [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible asset useful lives | 10 years | ||||
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | License [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible asset useful lives | 10 years | ||||
Minimum [Member] | Inpatient Rehabilitation Segment [Member] | Hot Springs, Bryan and Broken Arrow [Member] | Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible asset useful lives | 1 year | ||||
Maximum [Member] | Inpatient Rehabilitation Segment [Member] | Hot Springs, Bryan and Broken Arrow [Member] | Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible asset useful lives | 3 years | ||||
Home health [Member] | Home Health and Hospice Segment [Member] | Home Health Agency of Georgia, LLC (“Camellia”) [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of locations across the states | 2 | ||||
Home health [Member] | Home Health and Hospice Segment [Member] | Advantage Health Inc. (“Advantage”) [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of locations across the states | 1 | ||||
Hospice [Member] | Home Health and Hospice Segment [Member] | Home Health Agency of Georgia, LLC (“Camellia”) [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of locations across the states | 2 | ||||
Hospice [Member] | Home Health and Hospice Segment [Member] | Sotto International, Inc. (“Serenity”) [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of locations across the states | 3 |
Business Combinations - Table 1
Business Combinations - Table 1 (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Aug. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,915.6 | $ 1,890.1 | |
Hot Springs, Bryan and Broken Arrow [Member] | Noncompete Agreements [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 0.4 | ||
Inpatient Rehabilitation Segment [Member] | Hot Springs, Bryan and Broken Arrow [Member] | |||
Business Acquisition [Line Items] | |||
Property and equipment | 5.3 | ||
Goodwill | 9.4 | ||
Total assets acquired | 16.1 | ||
Inpatient Rehabilitation Segment [Member] | Hot Springs, Bryan and Broken Arrow [Member] | Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 1 |
Business Combinations - Table 2
Business Combinations - Table 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Cash Paid For All Acquisitions During Each Period Presented | ||||
Net cash paid for acquisition | $ 19.6 | $ 87.1 | ||
Inpatient Rehabilitation Segment [Member] | Hot Springs, Bryan and Broken Arrow [Member] | ||||
Net Cash Paid For All Acquisitions During Each Period Presented | ||||
Fair value of assets acquired | $ 1.4 | $ 0 | 6.7 | 62.8 |
Goodwill | 7.6 | 0 | 9.4 | 0.7 |
Fair value of liabilities assumed | 0 | 0 | 0 | (2.7) |
Fair value of noncontrolling interests owned by joint venture partner | (9) | 0 | (16.1) | (4.2) |
Net cash paid for acquisition | $ 0 | $ 0 | $ 0 | $ 56.6 |
Business Combinations - Table 3
Business Combinations - Table 3 (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,915.6 | $ 1,890.1 |
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill | 16.3 | |
Total assets acquired | 19.7 | |
Total liabilities assumed | (0.1) | |
Net assets acquired | 19.6 | |
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | Noncompete Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | 0.2 | |
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | 0.2 | |
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | Certificate of Need [Member] | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | 1.9 | |
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | License [Member] | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets | $ 1.1 |
Business Combinations - Table 4
Business Combinations - Table 4 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||||
Net cash paid for acquisition | $ 19.6 | $ 87.1 | ||
Home Health and Hospice Segment [Member] | Camellia, Advantage and Serenity [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair value of assets acquired | $ 1.9 | $ 1.9 | 3.4 | 10.4 |
Goodwill | 8.3 | 7.5 | 16.3 | 20.3 |
Fair value of liabilities assumed | 0 | (0.1) | (0.1) | (0.2) |
Net cash paid for acquisition | $ 10.2 | $ 9.3 | $ 19.6 | $ 30.5 |
Business Combinations - Table 5
Business Combinations - Table 5 (Details) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Combinations [Abstract] | |||||
Acquired entity only: Actual from acquisition date to September 30, 2016, Net Operating Revenues | $ 8.7 | ||||
Acquired entities only: Actual from acquisition date to September 30, 2016, Net Income Attributable to HealthSouth | $ (2.3) | ||||
Combined entity: Supplemental pro forma, Net Operating Revenues | $ 929.2 | $ 786.7 | $ 2,773.9 | $ 2,308.2 | |
Combined entity: Supplemental pro forma, Net Income Attributable to HealthSouth | $ 62 | $ 51.4 | $ 184 | $ 136.8 |
Variable Interest Entities - Te
Variable Interest Entities - Textual (Details) - Consolidated Limited Partnership-like Entities [Member] | 9 Months Ended |
Sep. 30, 2016entity | |
Variable Interest Entity [Line Items] | |
Number of consolidated limited partnership-like entities | 10 |
Minimum [Member] | |
Variable Interest Entity [Line Items] | |
Ownership interest in consolidated entities (percent) | 6.80% |
Maximum [Member] | |
Variable Interest Entity [Line Items] | |
Ownership interest in consolidated entities (percent) | 99.50% |
Variable Interest Entities - Ta
Variable Interest Entities - Table 1 (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 76.4 | $ 61.6 | $ 801.6 | $ 66.7 | |
Accounts receivable, net of allowance for doubtful accounts | 419.2 | 410.5 | |||
Other current assets | 170.4 | 126.6 | |||
Total current assets | 666 | 598.7 | |||
Property and equipment, net | 1,353.1 | 1,310.1 | |||
Goodwill | 1,915.6 | 1,890.1 | |||
Intangible assets, net | 410.1 | 419.4 | |||
Other long-term assets | 213.9 | 197 | |||
Total assets | 4,631.3 | [1] | 4,606.1 | ||
Current portion of long-term debt | 36.8 | 36.8 | |||
Accounts payable | 67.5 | 61.6 | |||
Total current liabilities | 476 | 426.4 | |||
Long-term debt, net of current portion | 2,974 | 3,134.7 | |||
Total Liabilities | 3,608.1 | $ 3,705.7 | |||
Consolidated VIEs [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 1.2 | ||||
Accounts receivable, net of allowance for doubtful accounts | 32.3 | ||||
Other current assets | 3.1 | ||||
Total current assets | 36.6 | ||||
Property and equipment, net | 137.6 | ||||
Goodwill | 73.5 | ||||
Intangible assets, net | 9.3 | ||||
Other long-term assets | 1 | ||||
Total assets | 258 | ||||
Current portion of long-term debt | 1.4 | ||||
Accounts payable | 7 | ||||
Accrued expenses and other current liabilities | 12.5 | ||||
Total current liabilities | 20.9 | ||||
Long-term debt, net of current portion | 30.2 | ||||
Total Liabilities | $ 51.1 | ||||
[1] | Our consolidated assets as of September 30, 2016 include total assets of variable interest entities of $258.0 million, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of September 30, 2016 include total liabilities of the variable interest entities of $51.1 million. See Note 3, Variable Interest Entities. |
Investments in and Advances t42
Investments in and Advances to Nonconsolidated Affiliates - Textual (Details) $ in Millions | Sep. 30, 2016USD ($)entity | Dec. 31, 2015USD ($) |
Investments In and Advances to Nonconsolidated Affiliates (Textual) [Abstract] | ||
Investments in and advances to nonconsolidated affiliates | $ | $ 13 | $ 11.7 |
Number of partially owned subsidiaries | 7 | |
Number of partially owned general or limited partnerships, limited liability companies of joint ventures | 6 | |
Minimum [Member] | ||
Investments In and Advances to Nonconsolidated Affiliates (Textual) [Abstract] | ||
Ownership interest in affiliates (percent) | 1.00% | |
Maximum [Member] | ||
Investments In and Advances to Nonconsolidated Affiliates (Textual) [Abstract] | ||
Ownership interest in affiliates (percent) | 60.00% |
Investments In and Advances t43
Investments In and Advances to Nonconsolidated Affiliates - Table 1 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ||||
Net operating revenues | $ 11.3 | $ 9.2 | $ 33.4 | $ 26.3 |
Operating expenses | (6) | (4) | (18.1) | (11.7) |
Income from continuing operations, net of tax | 5.2 | 5.1 | 15.2 | 13.8 |
Net income | $ 5.2 | $ 5.1 | $ 15.2 | $ 13.8 |
Long-term Debt - Table 1 (Detai
Long-term Debt - Table 1 (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Outstanding Long-term Debt | ||
Capital lease obligations | $ 281.8 | $ 288.2 |
Total debt and capital lease obligations | 3,010.8 | 3,171.5 |
Less: Current portion | (36.8) | (36.8) |
Long-term debt, net of current portion | 2,974 | 3,134.7 |
Term Loan Facilities [Member] | Term Loan Facilities [Member] | ||
Schedule of Outstanding Long-term Debt | ||
Total debt | $ 426.8 | 443.3 |
Senior Notes [Member] | 7.75% Senior Notes Due 2022 [Member] | ||
Schedule of Outstanding Long-term Debt | ||
Debt instrument interest rate (percent) | 7.75% | |
Total debt | $ 0 | 174.3 |
Senior Notes [Member] | 5.125% Senior Notes Due 2023 [Member] | ||
Schedule of Outstanding Long-term Debt | ||
Debt instrument interest rate (percent) | 5.125% | |
Total debt | $ 295.1 | 294.6 |
Senior Notes [Member] | 5.75% Senior Notes Due 2024 [Member] | ||
Schedule of Outstanding Long-term Debt | ||
Debt instrument interest rate (percent) | 5.75% | |
Total debt | $ 1,193.1 | 1,192.6 |
Senior Notes [Member] | 5.75% Senior Notes Due 2025 [Member] | ||
Schedule of Outstanding Long-term Debt | ||
Debt instrument interest rate (percent) | 5.75% | |
Total debt | $ 343.7 | 343.4 |
Senior Subordinated Notes [Member] | 2.00% Convertible Senior Subordinated Notes due 2043 [Member] | ||
Schedule of Outstanding Long-term Debt | ||
Debt instrument interest rate (percent) | 2.00% | |
Total debt | $ 273.2 | 265.9 |
Other Notes Payable [Member] | ||
Schedule of Outstanding Long-term Debt | ||
Total debt | 47.1 | 39.2 |
Revolving Credit Facility [Member] | ||
Schedule of Outstanding Long-term Debt | ||
Total debt | $ 150 | $ 130 |
Long-term Debt - Table 2 (Detai
Long-term Debt - Table 2 (Details) $ in Millions | Sep. 30, 2016USD ($) |
Face Amount [Member] | |
Long-term Debt by Maturity | |
October 1 through December 31, 2016 | $ 8.7 |
2,017 | 37.3 |
2,018 | 37.8 |
2,019 | 40.4 |
2,020 | 834.2 |
2,021 | 10.7 |
Thereafter | 2,108 |
Total debt and capital lease obligations | 3,077.1 |
Net Amount [Member] | |
Long-term Debt by Maturity | |
October 1 through December 31, 2016 | 8.7 |
2,017 | 37.3 |
2,018 | 37.8 |
2,019 | 40.4 |
2,020 | 786.1 |
2,021 | 10.7 |
Thereafter | 2,089.8 |
Total debt and capital lease obligations | $ 3,010.8 |
Long-term Debt - Textual (Detai
Long-term Debt - Textual (Details) $ in Millions | Sep. 15, 2016USD ($) | Jul. 28, 2016USD ($) | May 06, 2016USD ($) | Apr. 06, 2016USD ($) | Mar. 24, 2016USD ($) | Feb. 23, 2016USD ($) | Feb. 29, 2016 | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Feb. 25, 2016renewal_option | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Loss on early extinguishment of debt | $ 2.6 | $ 0 | $ 7.4 | $ 20 | |||||||||||
Noncurrent financing obligation liability | 281.8 | 281.8 | $ 288.2 | ||||||||||||
Development / Lease Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Initial lease term | 15 years | ||||||||||||||
Number of renewal options | renewal_option | 4 | ||||||||||||||
Renewal term | 5 years | ||||||||||||||
Increase in property plant and equipment, net | 10.3 | ||||||||||||||
Development / Lease Agreement [Member] | Financing Obligation [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total estimated financing obligation | 56 | 56 | |||||||||||||
Other Notes Payable [Member] | Development / Lease Agreement [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Noncurrent financing obligation liability | 10.3 | $ 10.3 | |||||||||||||
7.75% Senior Notes Due 2022 [Member] | Senior Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt redemption price (percent) | 102.583% | 103.875% | 103.875% | ||||||||||||
Total cash outlay upon debt redemption | $ 78 | $ 52 | $ 52 | ||||||||||||
Loss on early extinguishment of debt | $ 2.6 | $ 2.4 | $ 2.4 | ||||||||||||
Senior Notes [Member] | 7.75% Senior Notes Due 2022 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Outstanding debt principle redeemed | $ 76 | $ 50 | $ 50 |
Redeemable Noncontrolling Int47
Redeemable Noncontrolling Interests - Table 1 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Redeemable Noncontrolling Interest [Line Items] | ||||
Balance at beginning of period | $ 121.1 | |||
Net income attributable to noncontrolling interests | $ 3.7 | $ 3.7 | 11.2 | $ 10.1 |
Distributions declared | (43.1) | (36.7) | ||
Change in fair value | 10.2 | (14.9) | ||
Balance at end of period | 109.4 | 109.4 | ||
Redeemable Noncontrolling Interest [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Balance at beginning of period | 121.1 | 84.7 | ||
Net income attributable to noncontrolling interests | 11.2 | 10.1 | ||
Distributions declared | (6.4) | (5.6) | ||
Change in fair value | (16.5) | 24.9 | ||
Balance at end of period | $ 109.4 | $ 114.1 | $ 109.4 | $ 114.1 |
Redeemable Noncontrolling Int48
Redeemable Noncontrolling Interests - Table 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Noncontrolling Interest [Abstract] | ||||
Net income attributable to nonredeemable noncontrolling interests | $ 12.7 | $ 13.4 | $ 42.5 | $ 40.8 |
Net income attributable to redeemable noncontrolling interests | 3.7 | 3.7 | 11.2 | 10.1 |
Net income attributable to noncontrolling interests | $ 16.4 | $ 17.1 | $ 53.7 | $ 50.9 |
Fair Value Measurements - Table
Fair Value Measurements - Table 1 (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Market Approach Valuation Technique [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Current portion of restricted marketable securities | $ 24.2 | $ 16.1 |
Noncurrent portion of restricted marketable securities | 33.3 | 40.1 |
Market Approach Valuation Technique [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Current portion of restricted marketable securities | 0 | 0 |
Noncurrent portion of restricted marketable securities | 0 | 0 |
Market Approach Valuation Technique [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Current portion of restricted marketable securities | 24.2 | 16.1 |
Noncurrent portion of restricted marketable securities | 33.3 | 40.1 |
Market Approach Valuation Technique [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Current portion of restricted marketable securities | 0 | 0 |
Noncurrent portion of restricted marketable securities | 0 | 0 |
Income Approach Valuation Technique [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Redeemable noncontrolling interests | 109.4 | 121.1 |
Income Approach Valuation Technique [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Redeemable noncontrolling interests | 0 | 0 |
Income Approach Valuation Technique [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Redeemable noncontrolling interests | 0 | 0 |
Income Approach Valuation Technique [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Redeemable noncontrolling interests | $ 109.4 | $ 121.1 |
Fair Value Measurements - Textu
Fair Value Measurements - Textuals (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains or losses related to non-financial assets and liabilities | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Tab51
Fair Value Measurements - Table 2 (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Revolving Credit Facility [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 150 | $ 130 |
Revolving Credit Facility [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | 150 | 130 |
Letters of Credit [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | 0 | 0 |
Letters of Credit [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | 33.3 | 34.2 |
Term Loan Facilities [Member] | Term Loan Facilities [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | 426.8 | 443.3 |
Term Loan Facilities [Member] | Term Loan Facilities [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 428.1 | 445 |
Senior Notes [Member] | 7.75% Senior Notes due 2022 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument interest rate (percent) | 7.75% | |
Senior Notes [Member] | 7.75% Senior Notes due 2022 [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 0 | 174.3 |
Senior Notes [Member] | 7.75% Senior Notes due 2022 [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 0 | 183.7 |
Senior Notes [Member] | 5.125% Senior Notes Due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument interest rate (percent) | 5.125% | |
Senior Notes [Member] | 5.125% Senior Notes Due 2023 [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 295.1 | 294.6 |
Senior Notes [Member] | 5.125% Senior Notes Due 2023 [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 299.3 | 288 |
Senior Notes [Member] | 5.75% Senior Notes Due 2024 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument interest rate (percent) | 5.75% | |
Senior Notes [Member] | 5.75% Senior Notes Due 2024 [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 1,193.1 | 1,192.6 |
Senior Notes [Member] | 5.75% Senior Notes Due 2024 [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 1,239 | 1,146 |
Senior Notes [Member] | 5.75% Senior Notes Due 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument interest rate (percent) | 5.75% | |
Senior Notes [Member] | 5.75% Senior Notes Due 2025 [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 343.7 | 343.4 |
Senior Notes [Member] | 5.75% Senior Notes Due 2025 [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 364.9 | 332.5 |
Senior Subordinated Notes [Member] | 2.00% Convertible Senior Subordinated Notes due 2043 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument interest rate (percent) | 2.00% | |
Senior Subordinated Notes [Member] | 2.00% Convertible Senior Subordinated Notes due 2043 [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 273.2 | 265.9 |
Senior Subordinated Notes [Member] | 2.00% Convertible Senior Subordinated Notes due 2043 [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | 377.3 | 345 |
Other Notes Payable [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | 47.1 | 39.2 |
Other Notes Payable [Member] | Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amounts and estimated fair values of financial instruments | $ 47.1 | $ 39.2 |
Share-Based Payments Textual (D
Share-Based Payments Textual (Details) - shares shares in Millions | 1 Months Ended | 4 Months Ended |
Feb. 29, 2016 | May 31, 2016 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards issued (shares) | 0.8 | |
Restricted Stock [Member] | Service Condition [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards issued (shares) | 0.2 | |
Restricted Stock [Member] | Service and Performance Condition [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance measurement period | 2 years | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted (shares) | 0.1 |
Income Taxes - Textual (Details
Income Taxes - Textual (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||||
Provision for income tax expense | $ 42.1 | $ 35.9 | $ 124.2 | $ 98.4 | |
Net deferred tax assets | 72.6 | 72.6 | |||
Valuation allowance | 28.3 | 28.3 | |||
Operating loss carryforward from excess tax benefits of share-based awards | 15.6 | 15.6 | |||
Tax benefit resulting from automatic tax accounting method change | 7 | 7 | |||
Additional tax benefits expected if accounting method change is accepted | 0.1 | ||||
Gross unrecognized tax benefits | 2.8 | 2.8 | $ 2.9 | ||
Gross unrecognized tax benefits that would impact effective tax rate if recognized | 2.8 | 2.8 | 2.9 | ||
Anticipated release of unrecognized tax benefits within next 12 months | 2.6 | 2.6 | |||
Estimate [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Tax benefit of combined federal NOL and tax credits | $ 18 | 18 | |||
Additional tax benefits expected if accounting method change is accepted | $ 50 | $ 44 |
Income Taxes - Table (Details)
Income Taxes - Table (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at December 31, 2015 | $ 2.9 |
Gross amount of increases in unrecognized tax benefits related to prior periods | 0.3 |
Gross amount of decreases in unrecognized tax benefits related to prior periods | (0.4) |
Gross amount of increases in unrecognized tax benefits related to current periods | 0.1 |
Gross amount of decreases in unrecognized tax benefits related to current periods | (0.1) |
Balance at September 30, 2016 | $ 2.8 |
Earnings per Common Share - Tab
Earnings per Common Share - Table 1 (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic Numerator: | ||||
Income from continuing operations | $ 78.2 | $ 67.5 | $ 236.3 | $ 188.6 |
Less: Net income attributable to noncontrolling interests included in continuing operations | (16.4) | (17.1) | (53.7) | (50.9) |
Less: Income allocated to participating securities | (0.2) | (0.3) | (0.6) | (0.9) |
Less: Convertible perpetual preferred stock dividends | 0 | 0 | 0 | (1.6) |
Income from continuing operations attributable to HealthSouth common shareholders | 61.6 | 50.1 | 182 | 135.2 |
(Loss) income from discontinued operations, net of tax | (0.1) | 0.3 | (0.3) | (1.6) |
Net income attributable to HealthSouth common shareholders | $ 61.5 | $ 50.4 | $ 181.7 | $ 133.6 |
Basic Denominator: | ||||
Basic weighted average common shares outstanding (shares) | 89.1 | 90.6 | 89.3 | 89.1 |
Basic earnings per share attributable to HealthSouth common shareholders: | ||||
Continuing operations (in dollars per share) | $ 0.69 | $ 0.56 | $ 2.03 | $ 1.52 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.02) |
Net Income (in dollars per share) | $ 0.69 | $ 0.56 | $ 2.03 | $ 1.50 |
Diluted Numerator | ||||
Income from continuing operations | $ 78.2 | $ 67.5 | $ 236.3 | $ 188.6 |
Less: Net income attributable to noncontrolling interests included in continuing operations | (16.4) | (17.1) | (53.7) | (50.9) |
Add: Interest on convertible debt, net of tax | 2.4 | 2.4 | 7.2 | 7 |
Income from continuing operations attributable to HealthSouth common shareholders | 64.2 | 52.8 | 189.8 | 144.7 |
(Loss) income from discontinued operations, net of tax | (0.1) | 0.3 | (0.3) | (1.6) |
Net income attributable to HealthSouth common shareholders | $ 64.1 | $ 53.1 | $ 189.5 | $ 143.1 |
Diluted Denominator | ||||
Diluted weighted average common shares outstanding (shares) | 99.4 | 101.5 | 99.5 | 101.4 |
Diluted earnings per share attributable to HealthSouth common shareholders: | ||||
Continuing operations (in dollars per share) | $ 0.64 | $ 0.52 | $ 1.90 | $ 1.43 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.02) |
Net income (in dollars per share) | $ 0.64 | $ 0.52 | $ 1.90 | $ 1.41 |
Earnings per Common Share - T56
Earnings per Common Share - Table 2 (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding (shares) | 89.1 | 90.6 | 89.3 | 89.1 |
Convertible perpetual preferred stock (shares) | 0 | 0 | 0 | 1.3 |
Convertible senior subordinated notes (shares) | 8.5 | 8.4 | 8.5 | 8.3 |
Restricted stock awards, dilutive stock options, restricted stock units, and common stock warrants (shares) | 1.8 | 2.5 | 1.7 | 2.7 |
Diluted weighted average common shares outstanding (shares) | 99.4 | 101.5 | 99.5 | 101.4 |
Earnings per Common Share - Tex
Earnings per Common Share - Textual (Details) $ / shares in Units, $ in Millions | Oct. 20, 2016$ / shares | Jul. 21, 2016$ / shares | Apr. 22, 2015$ / sharesshares | Jul. 31, 2016$ / shares | May 31, 2016$ / shares | Apr. 30, 2016$ / shares | Feb. 29, 2016$ / shares | Jan. 31, 2016$ / shares | Oct. 31, 2015$ / shares | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015$ / shares | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015$ / shares | Dec. 31, 2015USD ($) | Apr. 23, 2015$ / sharesshares |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Cash dividends per common share, Declared (in dollars per share) | $ 0.24 | $ 0.23 | $ 0.24 | $ 0.23 | $ 0.70 | $ 0.65 | |||||||||
Number of shares of preferred stock was converted into (shares) | $ 33.9905 | ||||||||||||||
Common stock par value (in dollars per share) | $ 0.01 | ||||||||||||||
Senior Subordinated Notes [Member] | 2.00% Convertible Senior Subordinated Notes due 2043 [Member] | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Convertible debt conversion price (in dollars per share) | $ 39.65 | $ 37.16 | $ 37.16 | ||||||||||||
Convertible debt conversion terms | 25.2194 shares per $1,000 principal amount | ||||||||||||||
Convertible debt conversion ratio (in shares per $1000) | 25.2194 | 26.9106 | |||||||||||||
Common Stock | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Cash dividends per common share, Declared (in dollars per share) | $ 0.23 | $ 0.23 | |||||||||||||
Cash dividends per common share, Paid (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.23 | ||||||||||||
Common stock dividends accrued | $ | $ 22.3 | $ 22.3 | $ 21.3 | ||||||||||||
Conversion of preferred stock (shares) | shares | 3,271,415 | ||||||||||||||
Convertible Preferred Stock [Member] | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Convertible perpetual preferred stock par value (in dollars per share) | $ 0.10 | ||||||||||||||
Convertible perpetual preferred stock liquidation preference (in dollars per share | $ 1,000 | ||||||||||||||
Preferred stock outstanding (shares) | shares | 96,245 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Cash dividends per common share, Declared (in dollars per share) | $ 0.24 |
Contingencies and Other Commi58
Contingencies and Other Commitments (Details) - Pending Litigation [Member] $ in Millions | May 18, 2016USD ($) | Sep. 30, 2016USD ($) | Feb. 28, 2015patient | Apr. 24, 2014facilities | Aug. 12, 2013facilities | Mar. 04, 2013facilitiespatient |
Honts lawsuit [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of hospitals involved in lawsuit | facilities | 1 | |||||
Punitive damages awarded in favor of plaintiff | $ 20 | |||||
Loss contingency accrual | $ 21 | |||||
Accrued professional fees and expenses | 1 | |||||
Loss contingency receivable accrued | 15 | |||||
Other operating expenses | 5.7 | |||||
Portion of liability that would be covered through captive insurance subsidiary | $ 6 | |||||
HHS-OIG Investigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of hospitals that received subpoenas | facilities | 7 | 4 | ||||
Number of patient medical records requested for each hospital in subpoenas | patient | 100 | |||||
Number of hospitals that received supplemental subpoenas | facilities | 2 | |||||
Number of additional patient medical records requested | patient | 70 | |||||
Compliance threshold under Health Care Act (percent) | 60.00% |
Segment Reporting - Textuals (D
Segment Reporting - Textuals (Details) | 9 Months Ended |
Sep. 30, 2016locationstatefacilitiessegment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | segment | 2 |
Inpatient Rehabilitation Segment [Member] | |
Segment Reporting Information [Line Items] | |
Number of states in which entity operates | state | 30 |
Number of inpatient rehabilitation hospitals operated | 122 |
Number of hospitals or agencies operated as a joint venture | 1 |
Number of inpatient rehabilitation units under management contracts | 4 |
Home Health and Hospice Segment [Member] | |
Segment Reporting Information [Line Items] | |
Number of states in which entity operates | state | 24 |
Number of hospitals or agencies operated as a joint venture | 2 |
Number of locations across the states | location | 223 |
Segment Reporting - Table 1 (De
Segment Reporting - Table 1 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net operating revenues | $ 926.8 | $ 778.6 | $ 2,757.3 | $ 2,283.6 |
Less: Provision for doubtful accounts | (46.7) | (33.2) | ||
Net operating revenues less provision for doubtful accounts | 912 | 767.9 | 2,710.6 | 2,250.4 |
Costs and Expenses [Abstract] | ||||
Salaries and benefits | 497.4 | 417.1 | 1,469.6 | 1,204 |
Other operating expenses | 126.3 | 106.7 | 367 | 314.1 |
Supplies | 34.8 | 31 | 104.2 | 94.1 |
Occupancy costs | 17.6 | 12.5 | 53.5 | 37.1 |
Total operating expenses | 749.9 | 632 | 2,221.6 | 1,855.6 |
Other income | (0.8) | (0.7) | (2.1) | (4.2) |
Equity in net income of nonconsolidated affiliates | (2.5) | (2.4) | (7.3) | (6.3) |
Net income attributable to noncontrolling interests | 16.4 | 17.1 | 53.7 | 50.9 |
Inpatient Rehabilitation Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net operating revenues | 751.7 | 651.6 | 2,253.5 | 1,927.2 |
Less: Provision for doubtful accounts | (13.7) | (10.2) | (43.8) | (31.4) |
Net operating revenues less provision for doubtful accounts | 738 | 641.4 | 2,209.7 | 1,895.8 |
Costs and Expenses [Abstract] | ||||
Salaries and benefits | 371.2 | 326.8 | 1,107.2 | 950.8 |
Other operating expenses | 110.1 | 95.8 | 321.7 | 284.5 |
Supplies | 31.9 | 28.9 | 96.1 | 88.6 |
Occupancy costs | 15 | 10.6 | 46 | 31.7 |
Total operating expenses | 528.2 | 462.1 | 1,571 | 1,355.6 |
Other income | (0.8) | (0.1) | (2.1) | (1) |
Equity in net income of nonconsolidated affiliates | (2.3) | (2.4) | (6.7) | (6.3) |
Net income attributable to noncontrolling interests | 14.3 | 15.6 | 47.9 | 46.4 |
Segment Adjusted EBITDA | 198.6 | 166.2 | 599.6 | 501.1 |
Capital Expenditures | 42.7 | 43.8 | 128.9 | 103.2 |
Home Health and Hospice Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net operating revenues | 175.1 | 127 | 503.8 | 356.4 |
Less: Provision for doubtful accounts | (1.1) | (0.5) | (2.9) | (1.8) |
Net operating revenues less provision for doubtful accounts | 174 | 126.5 | 500.9 | 354.6 |
Costs and Expenses [Abstract] | ||||
Cost of services sold (excluding depreciation and amortization) | 86.8 | 61.7 | 246.8 | 171.8 |
Support and overhead costs | 59.5 | 42.6 | 174.5 | 121.7 |
Total operating expenses | 146.3 | 104.3 | 421.3 | 293.5 |
Other income | 0 | 0 | 0 | 0 |
Equity in net income of nonconsolidated affiliates | (0.2) | 0 | (0.6) | 0 |
Net income attributable to noncontrolling interests | 2.1 | 1.5 | 5.8 | 4.5 |
Segment Adjusted EBITDA | 25.8 | 20.7 | 74.4 | 56.6 |
Capital Expenditures | $ 2.2 | $ 0.5 | $ 4.6 | $ 2.7 |
Segment Reporting - Table 2 (De
Segment Reporting - Table 2 (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 4,631.3 | [1] | $ 4,606.1 |
Investments in and advances to nonconsolidated affiliates | 13 | 11.7 | |
Inpatient Rehabilitation Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 3,593.3 | 3,589 | |
Investments in and advances to nonconsolidated affiliates | 10.5 | 9.3 | |
Home Health and Hospice Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,109.3 | 1,088.4 | |
Investments in and advances to nonconsolidated affiliates | $ 2.5 | $ 2.4 | |
[1] | Our consolidated assets as of September 30, 2016 include total assets of variable interest entities of $258.0 million, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of September 30, 2016 include total liabilities of the variable interest entities of $51.1 million. See Note 3, Variable Interest Entities. |
Segment Reporting - Table 3 (De
Segment Reporting - Table 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
General and administrative expenses | $ (30.3) | $ (30.6) | $ (96.6) | $ (97.3) |
Depreciation and amortization | (43.5) | (33.7) | (128.8) | (98.3) |
Government, class action, and related settlements | 0 | 0 | 0 | (8) |
Professional fees - accounting, tax, and legal | 0 | (0.4) | (1.9) | (2.7) |
Loss on early extinguishment of debt | (2.6) | 0 | (7.4) | (20) |
Net income attributable to noncontrolling interests | 16.4 | 17.1 | 53.7 | 50.9 |
Income from continuing operations before income tax expense | 120.3 | 103.4 | 360.5 | 287 |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total segment Adjusted EBITDA | 224.4 | 186.9 | 674 | 557.7 |
Segment Reconciling Items [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
General and administrative expenses | (30.3) | (30.6) | (96.6) | (97.3) |
Depreciation and amortization | (43.5) | (33.7) | (128.8) | (98.3) |
Loss on disposal or impairment of assets | (1.6) | (0.9) | (2) | (0.2) |
Government, class action, and related settlements | 0 | 0 | 0 | (8) |
Professional fees - accounting, tax, and legal | 0 | (0.4) | (1.9) | (2.7) |
Loss on early extinguishment of debt | (2.6) | 0 | (7.4) | (20) |
Interest expense and amortization of debt discounts and fees | (42.5) | (35.6) | (130.5) | (98.3) |
Net income attributable to noncontrolling interests | 16.4 | 17.1 | 53.7 | 50.9 |
Gain related to SCA equity interest | $ 0 | $ 0.6 | $ 0 | $ 3.2 |
Segment Reporting - Table 4 (De
Segment Reporting - Table 4 (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets for reportable segments | $ 4,631.3 | [1] | $ 4,606.1 |
Reclassification of noncurrent deferred income tax liabilities to net noncurrent deferred income tax assets | (71.3) | (71.3) | |
Total assets | 4,631.3 | [1] | 4,606.1 |
Operating Segments [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets for reportable segments | 4,702.6 | 4,677.4 | |
Total assets | $ 4,702.6 | $ 4,677.4 | |
[1] | Our consolidated assets as of September 30, 2016 include total assets of variable interest entities of $258.0 million, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of September 30, 2016 include total liabilities of the variable interest entities of $51.1 million. See Note 3, Variable Interest Entities. |
Segment Reporting - Table 5 (De
Segment Reporting - Table 5 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net operating revenues | $ 926.8 | $ 778.6 | $ 2,757.3 | $ 2,283.6 |
Inpatient Rehabilitation Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net operating revenues | 751.7 | 651.6 | 2,253.5 | 1,927.2 |
Inpatient Rehabilitation Segment [Member] | Inpatient [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net operating revenues | 724.1 | 625.1 | 2,164.6 | 1,850.4 |
Inpatient Rehabilitation Segment [Member] | Outpatient and other [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net operating revenues | 27.6 | 26.5 | 88.9 | 76.8 |
Home Health and Hospice Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net operating revenues | 175.1 | 127 | 503.8 | 356.4 |
Home Health and Hospice Segment [Member] | Home health [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net operating revenues | 162 | 118.3 | 470 | 333.7 |
Home Health and Hospice Segment [Member] | Hospice [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net operating revenues | $ 13.1 | $ 8.7 | $ 33.8 | $ 22.7 |
Condensed Consolidating Finan65
Condensed Consolidating Financial Information - Narrative (Details) | Sep. 30, 2016 |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Senior secured leverage ratio maximum | 1.75 |
Consolidated coverage ratio minimum | 2 |
Condensed Consolidating Finan66
Condensed Consolidating Financial Information - Income Statement Tables (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Consolidating Statements of Operations | ||||
Net operating revenues | $ 926.8 | $ 778.6 | $ 2,757.3 | $ 2,283.6 |
Less: Provision for doubtful accounts | (14.8) | (10.7) | (46.7) | (33.2) |
Net operating revenues less provision for doubtful accounts | 912 | 767.9 | 2,710.6 | 2,250.4 |
Operating expenses: | ||||
Salaries and benefits | 497.4 | 417.1 | 1,469.6 | 1,204 |
Other operating expenses | 126.3 | 106.7 | 367 | 314.1 |
Occupancy costs | 17.6 | 12.5 | 53.5 | 37.1 |
Supplies | 34.8 | 31 | 104.2 | 94.1 |
General and administrative expenses | 30.3 | 30.6 | 96.6 | 97.3 |
Depreciation and amortization | 43.5 | 33.7 | 128.8 | 98.3 |
Government, class action, and related settlements | 0 | 0 | 0 | 8 |
Professional fees - accounting, tax, and legal | 0 | 0.4 | 1.9 | 2.7 |
Total operating expenses | 749.9 | 632 | 2,221.6 | 1,855.6 |
Loss on early extinguishment of debt | 2.6 | 0 | 7.4 | 20 |
Interest expense and amortization of debt discounts and fees | 42.5 | 35.6 | 130.5 | 98.3 |
Other income | (0.8) | (0.7) | (2.1) | (4.2) |
Equity in net income of nonconsolidated affiliates | (2.5) | (2.4) | (7.3) | (6.3) |
Equity in net income of consolidated affiliates | 0 | 0 | 0 | 0 |
Management fees | 0 | 0 | 0 | 0 |
Income from continuing operations before income tax expense | 120.3 | 103.4 | 360.5 | 287 |
Provision for income tax (benefit) expense | 42.1 | 35.9 | 124.2 | 98.4 |
Income from continuing operations | 78.2 | 67.5 | 236.3 | 188.6 |
(Loss) income from discontinued operations, net of tax | (0.1) | 0.3 | (0.3) | (1.6) |
Net income | 78.1 | 67.8 | 236 | 187 |
Less: Net income attributable to noncontrolling interests | (16.4) | (17.1) | (53.7) | (50.9) |
Net income attributable to HealthSouth | 61.7 | 50.7 | 182.3 | 136.1 |
Comprehensive income | 78 | 67 | 236.2 | 186.4 |
Comprehensive income attributable to HealthSouth | 61.6 | 49.9 | 182.5 | 135.5 |
HealthSouth Corporation [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
Net operating revenues | 4.9 | 4.3 | 14.9 | 14.7 |
Less: Provision for doubtful accounts | 0 | 0 | 0 | 0 |
Net operating revenues less provision for doubtful accounts | 4.9 | 4.3 | 14.9 | 14.7 |
Operating expenses: | ||||
Salaries and benefits | 10.4 | 14.7 | 32.7 | 35 |
Other operating expenses | 6.4 | 6.5 | 18.9 | 22.7 |
Occupancy costs | 0.6 | 1.1 | 2.4 | 3.2 |
Supplies | 0 | 0 | 0 | 0 |
General and administrative expenses | 30.4 | 27.8 | 94.7 | 93.6 |
Depreciation and amortization | 2.3 | 2.6 | 7.1 | 7.3 |
Government, class action, and related settlements | 8 | |||
Professional fees - accounting, tax, and legal | 0.4 | 1.9 | 2.7 | |
Total operating expenses | 50.1 | 53.1 | 157.7 | 172.5 |
Loss on early extinguishment of debt | 2.6 | 7.4 | 20 | |
Interest expense and amortization of debt discounts and fees | 36.3 | 33.4 | 111.7 | 91 |
Other income | (5.1) | (2.5) | (14.6) | (9.6) |
Equity in net income of nonconsolidated affiliates | 0 | 0 | 0 | 0 |
Equity in net income of consolidated affiliates | (86.1) | (80.2) | (260.5) | (240.3) |
Management fees | (33.9) | (29.2) | (101.9) | (87) |
Income from continuing operations before income tax expense | 41 | 29.7 | 115.1 | 68.1 |
Provision for income tax (benefit) expense | (20.8) | (20.7) | (67.5) | (69.6) |
Income from continuing operations | 61.8 | 50.4 | 182.6 | 137.7 |
(Loss) income from discontinued operations, net of tax | (0.1) | 0.3 | (0.3) | (1.6) |
Net income | 61.7 | 50.7 | 182.3 | 136.1 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to HealthSouth | 61.7 | 50.7 | 182.3 | 136.1 |
Comprehensive income | 61.6 | 49.9 | 182.5 | 135.5 |
Comprehensive income attributable to HealthSouth | 61.6 | 49.9 | 182.5 | 135.5 |
Guarantor Subsidiaries [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
Net operating revenues | 546.6 | 458.8 | 1,635.1 | 1,366.5 |
Less: Provision for doubtful accounts | (10) | (7.5) | (32.4) | (24.5) |
Net operating revenues less provision for doubtful accounts | 536.6 | 451.3 | 1,602.7 | 1,342 |
Operating expenses: | ||||
Salaries and benefits | 252.1 | 213.9 | 752 | 632.1 |
Other operating expenses | 80.1 | 66.4 | 232.6 | 195.1 |
Occupancy costs | 22.4 | 16.3 | 67.2 | 46.7 |
Supplies | 22.6 | 19.9 | 67.8 | 60.9 |
General and administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 26.1 | 19.8 | 77.9 | 58.1 |
Government, class action, and related settlements | 0 | |||
Professional fees - accounting, tax, and legal | 0 | 0 | 0 | |
Total operating expenses | 403.3 | 336.3 | 1,197.5 | 992.9 |
Loss on early extinguishment of debt | 0 | 0 | 0 | |
Interest expense and amortization of debt discounts and fees | 5.4 | 1.9 | 16.3 | 6.3 |
Other income | (0.1) | (0.1) | (0.2) | (0.2) |
Equity in net income of nonconsolidated affiliates | (2.3) | (2.4) | (6.7) | (6.3) |
Equity in net income of consolidated affiliates | (8.8) | (9.7) | (28.7) | (27.2) |
Management fees | 26 | 21.7 | 77.7 | 64.8 |
Income from continuing operations before income tax expense | 113.1 | 103.6 | 346.8 | 311.7 |
Provision for income tax (benefit) expense | 45.1 | 39.4 | 138.4 | 118.5 |
Income from continuing operations | 68 | 64.2 | 208.4 | 193.2 |
(Loss) income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income | 68 | 64.2 | 208.4 | 193.2 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to HealthSouth | 68 | 64.2 | 208.4 | 193.2 |
Comprehensive income | 68 | 64.2 | 208.4 | 193.2 |
Comprehensive income attributable to HealthSouth | 68 | 64.2 | 208.4 | 193.2 |
Nonguarantor Subsidiaries [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
Net operating revenues | 405 | 341.5 | 1,195.3 | 978.8 |
Less: Provision for doubtful accounts | (4.8) | (3.2) | (14.3) | (8.7) |
Net operating revenues less provision for doubtful accounts | 400.2 | 338.3 | 1,181 | 970.1 |
Operating expenses: | ||||
Salaries and benefits | 239.5 | 192.7 | 698.6 | 549.4 |
Other operating expenses | 51.6 | 43.8 | 149.9 | 126.9 |
Occupancy costs | 7.9 | 6.9 | 23.8 | 20.5 |
Supplies | 12.2 | 11.1 | 36.4 | 33.2 |
General and administrative expenses | (0.1) | 2.8 | 1.9 | 3.7 |
Depreciation and amortization | 15.1 | 11.3 | 43.8 | 32.9 |
Government, class action, and related settlements | 0 | |||
Professional fees - accounting, tax, and legal | 0 | 0 | 0 | |
Total operating expenses | 326.2 | 268.6 | 954.4 | 766.6 |
Loss on early extinguishment of debt | 0 | 0 | 0 | |
Interest expense and amortization of debt discounts and fees | 5.8 | 2.9 | 17.2 | 8.5 |
Other income | (0.6) | (0.7) | (2) | (1.9) |
Equity in net income of nonconsolidated affiliates | (0.2) | 0 | (0.6) | 0 |
Equity in net income of consolidated affiliates | 0 | 0 | 0 | 0 |
Management fees | 7.9 | 7.5 | 24.2 | 22.2 |
Income from continuing operations before income tax expense | 61.1 | 60 | 187.8 | 174.7 |
Provision for income tax (benefit) expense | 17.8 | 17.2 | 53.3 | 49.5 |
Income from continuing operations | 43.3 | 42.8 | 134.5 | 125.2 |
(Loss) income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income | 43.3 | 42.8 | 134.5 | 125.2 |
Less: Net income attributable to noncontrolling interests | (16.4) | (17.1) | (53.7) | (50.9) |
Net income attributable to HealthSouth | 26.9 | 25.7 | 80.8 | 74.3 |
Comprehensive income | 43.3 | 42.8 | 134.5 | 125.2 |
Comprehensive income attributable to HealthSouth | 26.9 | 25.7 | 80.8 | 74.3 |
Consolidation, Eliminations [Member] | ||||
Condensed Consolidating Statements of Operations | ||||
Net operating revenues | (29.7) | (26) | (88) | (76.4) |
Less: Provision for doubtful accounts | 0 | 0 | 0 | 0 |
Net operating revenues less provision for doubtful accounts | (29.7) | (26) | (88) | (76.4) |
Operating expenses: | ||||
Salaries and benefits | (4.6) | (4.2) | (13.7) | (12.5) |
Other operating expenses | (11.8) | (10) | (34.4) | (30.6) |
Occupancy costs | (13.3) | (11.8) | (39.9) | (33.3) |
Supplies | 0 | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Government, class action, and related settlements | 0 | |||
Professional fees - accounting, tax, and legal | 0 | 0 | 0 | |
Total operating expenses | (29.7) | (26) | (88) | (76.4) |
Loss on early extinguishment of debt | 0 | 0 | 0 | |
Interest expense and amortization of debt discounts and fees | (5) | (2.6) | (14.7) | (7.5) |
Other income | 5 | 2.6 | 14.7 | 7.5 |
Equity in net income of nonconsolidated affiliates | 0 | 0 | 0 | 0 |
Equity in net income of consolidated affiliates | 94.9 | 89.9 | 289.2 | 267.5 |
Management fees | 0 | 0 | 0 | 0 |
Income from continuing operations before income tax expense | (94.9) | (89.9) | (289.2) | (267.5) |
Provision for income tax (benefit) expense | 0 | 0 | 0 | 0 |
Income from continuing operations | (94.9) | (89.9) | (289.2) | (267.5) |
(Loss) income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income | (94.9) | (89.9) | (289.2) | (267.5) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to HealthSouth | (94.9) | (89.9) | (289.2) | (267.5) |
Comprehensive income | (94.9) | (89.9) | (289.2) | (267.5) |
Comprehensive income attributable to HealthSouth | $ (94.9) | $ (89.9) | $ (289.2) | $ (267.5) |
Condensed Consolidating Finan67
Condensed Consolidating Financial Information - Balance Sheet Tables (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Current assets: | |||||
Cash and cash equivalents | $ 76.4 | $ 61.6 | $ 801.6 | $ 66.7 | |
Accounts receivable, net | 419.2 | 410.5 | |||
Other current assets | 170.4 | 126.6 | |||
Total current assets | 666 | 598.7 | |||
Property and equipment, net | 1,353.1 | 1,310.1 | |||
Goodwill | 1,915.6 | 1,890.1 | |||
Intangible assets, net | 410.1 | 419.4 | |||
Deferred income tax assets | 72.6 | 190.8 | |||
Other long-term assets | 213.9 | 197 | |||
Intercompany notes receivable | 0 | 0 | |||
Intercompany receivable and investments in consolidated affiliates | 0 | 0 | |||
Total assets | 4,631.3 | [1] | 4,606.1 | ||
Current liabilities: | |||||
Current portion of long-term debt | 36.8 | 36.8 | |||
Accounts payable | 67.5 | 61.6 | |||
Accrued expenses and other current liabilities | 371.7 | 328 | |||
Total current liabilities | 476 | 426.4 | |||
Long-term debt, net of current portion | 2,974 | 3,134.7 | |||
Intercompany notes payable | 0 | 0 | |||
Other long-term liabilities | 158.1 | 144.6 | |||
Intercompany payable | 0 | 0 | |||
Total Liabilities | 3,608.1 | 3,705.7 | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 109.4 | 121.1 | |||
Shareholders' equity: | |||||
HealthSouth shareholders’ equity | 726.3 | 611.4 | |||
Noncontrolling interests | 187.5 | 167.9 | |||
Total shareholders’ equity | 913.8 | 779.3 | 790.2 | 619.5 | |
Total liabilities and shareholders' equity | 4,631.3 | [1] | 4,606.1 | ||
HealthSouth Corporation [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 56.1 | 41.2 | 786.7 | 41.9 | |
Accounts receivable, net | 0 | 0 | |||
Other current assets | 62.1 | 29.3 | |||
Total current assets | 118.2 | 70.5 | |||
Property and equipment, net | 26.9 | 14.5 | |||
Goodwill | 0 | 0 | |||
Intangible assets, net | 9.8 | 8.8 | |||
Deferred income tax assets | 56.6 | 176.2 | |||
Other long-term assets | 50.2 | 48.6 | |||
Intercompany notes receivable | 542.6 | 546.6 | |||
Intercompany receivable and investments in consolidated affiliates | 2,847.6 | 2,779.7 | |||
Total assets | 3,651.9 | 3,644.9 | |||
Current liabilities: | |||||
Current portion of long-term debt | 40 | 40 | |||
Accounts payable | 7.3 | 5.8 | |||
Accrued expenses and other current liabilities | 166.9 | 122.2 | |||
Total current liabilities | 214.2 | 168 | |||
Long-term debt, net of current portion | 2,669.8 | 2,821.9 | |||
Intercompany notes payable | 0 | 0 | |||
Other long-term liabilities | 41.6 | 43.6 | |||
Intercompany payable | 0 | 0 | |||
Total Liabilities | 2,925.6 | 3,033.5 | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 0 | 0 | |||
Shareholders' equity: | |||||
HealthSouth shareholders’ equity | 726.3 | 611.4 | |||
Noncontrolling interests | 0 | 0 | |||
Total shareholders’ equity | 726.3 | 611.4 | |||
Total liabilities and shareholders' equity | 3,651.9 | 3,644.9 | |||
Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0.3 | 1.2 | 0 | 1.4 | |
Accounts receivable, net | 260.6 | 261.5 | |||
Other current assets | 29.3 | 22.2 | |||
Total current assets | 290.2 | 284.9 | |||
Property and equipment, net | 984.2 | 988.4 | |||
Goodwill | 860.6 | 860.7 | |||
Intangible assets, net | 118.3 | 122.4 | |||
Deferred income tax assets | 64.1 | 64.1 | |||
Other long-term assets | 90.6 | 75.3 | |||
Intercompany notes receivable | 0 | 0 | |||
Intercompany receivable and investments in consolidated affiliates | 44.6 | 0 | |||
Total assets | 2,452.6 | 2,395.8 | |||
Current liabilities: | |||||
Current portion of long-term debt | 6.1 | 6.8 | |||
Accounts payable | 39 | 35.4 | |||
Accrued expenses and other current liabilities | 92.2 | 71.8 | |||
Total current liabilities | 137.3 | 114 | |||
Long-term debt, net of current portion | 250.7 | 255.6 | |||
Intercompany notes payable | 0 | 0 | |||
Other long-term liabilities | 14.9 | 12.3 | |||
Intercompany payable | 0 | 156.7 | |||
Total Liabilities | 402.9 | 538.6 | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 0 | 0 | |||
Shareholders' equity: | |||||
HealthSouth shareholders’ equity | 2,049.7 | 1,857.2 | |||
Noncontrolling interests | 0 | 0 | |||
Total shareholders’ equity | 2,049.7 | 1,857.2 | |||
Total liabilities and shareholders' equity | 2,452.6 | 2,395.8 | |||
Nonguarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 20 | 19.2 | 14.9 | 23.4 | |
Accounts receivable, net | 158.6 | 149 | |||
Other current assets | 118.7 | 93.9 | |||
Total current assets | 297.3 | 262.1 | |||
Property and equipment, net | 342 | 307.2 | |||
Goodwill | 1,055 | 1,029.4 | |||
Intangible assets, net | 282 | 288.2 | |||
Deferred income tax assets | 0 | 0 | |||
Other long-term assets | 73.1 | 73.1 | |||
Intercompany notes receivable | 0 | 0 | |||
Intercompany receivable and investments in consolidated affiliates | 0 | 0 | |||
Total assets | 2,049.4 | 1,960 | |||
Current liabilities: | |||||
Current portion of long-term debt | 8.2 | 7.5 | |||
Accounts payable | 21.2 | 20.4 | |||
Accrued expenses and other current liabilities | 134.8 | 135.3 | |||
Total current liabilities | 164.2 | 163.2 | |||
Long-term debt, net of current portion | 53.5 | 57.2 | |||
Intercompany notes payable | 542.6 | 546.6 | |||
Other long-term liabilities | 149.4 | 137.8 | |||
Intercompany payable | 177.2 | 157.5 | |||
Total Liabilities | 1,086.9 | 1,062.3 | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 109.4 | 121.1 | |||
Shareholders' equity: | |||||
HealthSouth shareholders’ equity | 665.6 | 608.7 | |||
Noncontrolling interests | 187.5 | 167.9 | |||
Total shareholders’ equity | 853.1 | 776.6 | |||
Total liabilities and shareholders' equity | 2,049.4 | 1,960 | |||
Consolidation, Eliminations [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Accounts receivable, net | 0 | 0 | |||
Other current assets | (39.7) | (18.8) | |||
Total current assets | (39.7) | (18.8) | |||
Property and equipment, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Deferred income tax assets | (48.1) | (49.5) | |||
Other long-term assets | 0 | 0 | |||
Intercompany notes receivable | (542.6) | (546.6) | |||
Intercompany receivable and investments in consolidated affiliates | (2,892.2) | (2,779.7) | |||
Total assets | (3,522.6) | (3,394.6) | |||
Current liabilities: | |||||
Current portion of long-term debt | (17.5) | (17.5) | |||
Accounts payable | 0 | 0 | |||
Accrued expenses and other current liabilities | (22.2) | (1.3) | |||
Total current liabilities | (39.7) | (18.8) | |||
Long-term debt, net of current portion | 0 | 0 | |||
Intercompany notes payable | (542.6) | (546.6) | |||
Other long-term liabilities | (47.8) | (49.1) | |||
Intercompany payable | (177.2) | (314.2) | |||
Total Liabilities | (807.3) | (928.7) | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 0 | 0 | |||
Shareholders' equity: | |||||
HealthSouth shareholders’ equity | (2,715.3) | (2,465.9) | |||
Noncontrolling interests | 0 | 0 | |||
Total shareholders’ equity | (2,715.3) | (2,465.9) | |||
Total liabilities and shareholders' equity | $ (3,522.6) | $ (3,394.6) | |||
[1] | Our consolidated assets as of September 30, 2016 include total assets of variable interest entities of $258.0 million, which cannot be used by us to settle the obligations of other entities. Our consolidated liabilities as of September 30, 2016 include total liabilities of the variable interest entities of $51.1 million. See Note 3, Variable Interest Entities. |
Condensed Consolidating Finan68
Condensed Consolidating Financial Information - Cash Flow Statement Tables (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by operating activities | $ 489.5 | $ 368.2 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (113.9) | (85.2) |
Capitalized software costs | (17.5) | (20.7) |
Acquisitions of businesses, net of cash acquired | (19.6) | (87.1) |
Proceeds from sale of marketable securities | 0 | 12.8 |
Purchase of restricted investments | (0.8) | (6.5) |
Net change in restricted cash | (7.1) | 3.2 |
Funding of intercompany note receivable | 0 | |
Proceeds from repayment of intercompany notes receivable | 0 | |
Other | 2.6 | 4.1 |
Net cash used in investing activities | (156.3) | (179.4) |
Cash flows from financing activities: | ||
Principal borrowings on term loan facilities | 0 | 125 |
Proceeds from bond issuance | 0 | 1,400 |
Principal payments on debt, including pre-payments | (195.2) | (546.3) |
Principal borrowings on intercompany note payable | 0 | |
Principal payments on intercompany note payable | 0 | |
Borrowings on revolving credit facility | 260 | 315 |
Payments on revolving credit facility | (240) | (615) |
Debt amendment and issuance costs | 0 | (31.3) |
Repurchases of common stock, including fees and expenses | (24.1) | 0 |
Dividends paid on common stock | (62.4) | (56.3) |
Distributions paid to noncontrolling interests of consolidated affiliates | (49.5) | (39.7) |
Other | (7.2) | (5.3) |
Change in intercompany advances | 0 | 0 |
Net cash (used in) provided by financing activities | (318.4) | 546.1 |
Increase (decrease) in cash and cash equivalents | 14.8 | 734.9 |
Cash and cash equivalents at beginning of period | 61.6 | 66.7 |
Cash and cash equivalents at end of period | 76.4 | 801.6 |
HealthSouth Corporation [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by operating activities | 77.8 | 21.6 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (9.2) | (10) |
Capitalized software costs | (15.9) | (19) |
Acquisitions of businesses, net of cash acquired | 0 | (56.6) |
Proceeds from sale of marketable securities | 12.8 | |
Purchase of restricted investments | 0 | 0 |
Net change in restricted cash | 0 | 0 |
Funding of intercompany note receivable | (11.5) | |
Proceeds from repayment of intercompany notes receivable | 22 | |
Other | (3.3) | 13.6 |
Net cash used in investing activities | (17.9) | (59.2) |
Cash flows from financing activities: | ||
Principal borrowings on term loan facilities | 125 | |
Proceeds from bond issuance | 1,400 | |
Principal payments on debt, including pre-payments | (192.9) | (545) |
Principal borrowings on intercompany note payable | 0 | |
Principal payments on intercompany note payable | 0 | |
Borrowings on revolving credit facility | 260 | 315 |
Payments on revolving credit facility | (240) | (615) |
Debt amendment and issuance costs | (31.3) | |
Repurchases of common stock, including fees and expenses | (24.1) | |
Dividends paid on common stock | (62.4) | (56.3) |
Distributions paid to noncontrolling interests of consolidated affiliates | 0 | 0 |
Other | 3.3 | (1.3) |
Change in intercompany advances | 211.1 | 191.3 |
Net cash (used in) provided by financing activities | (45) | 782.4 |
Increase (decrease) in cash and cash equivalents | 14.9 | 744.8 |
Cash and cash equivalents at beginning of period | 41.2 | 41.9 |
Cash and cash equivalents at end of period | 56.1 | 786.7 |
Guarantor Subsidiaries [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by operating activities | 263.3 | 187.6 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (54.3) | (42) |
Capitalized software costs | (0.1) | (0.4) |
Acquisitions of businesses, net of cash acquired | 0 | 0 |
Proceeds from sale of marketable securities | 0 | |
Purchase of restricted investments | 0 | 0 |
Net change in restricted cash | 0 | 0 |
Proceeds from repayment of intercompany notes receivable | 0 | |
Other | 0.5 | 3 |
Net cash used in investing activities | (53.9) | (39.4) |
Cash flows from financing activities: | ||
Principal borrowings on term loan facilities | 0 | |
Proceeds from bond issuance | 0 | |
Principal payments on debt, including pre-payments | (1.3) | (0.8) |
Principal borrowings on intercompany note payable | 0 | |
Principal payments on intercompany note payable | 0 | |
Borrowings on revolving credit facility | 0 | 0 |
Payments on revolving credit facility | 0 | 0 |
Debt amendment and issuance costs | 0 | |
Repurchases of common stock, including fees and expenses | 0 | |
Dividends paid on common stock | 0 | 0 |
Distributions paid to noncontrolling interests of consolidated affiliates | 0 | 0 |
Other | (4.4) | (0.6) |
Change in intercompany advances | (204.6) | (148.2) |
Net cash (used in) provided by financing activities | (210.3) | (149.6) |
Increase (decrease) in cash and cash equivalents | (0.9) | (1.4) |
Cash and cash equivalents at beginning of period | 1.2 | 1.4 |
Cash and cash equivalents at end of period | 0.3 | 0 |
Nonguarantor Subsidiaries [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by operating activities | 148.4 | 159 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (50.4) | (33.2) |
Capitalized software costs | (1.5) | (1.3) |
Acquisitions of businesses, net of cash acquired | (19.6) | (30.5) |
Proceeds from sale of marketable securities | 0 | |
Purchase of restricted investments | (0.8) | (6.5) |
Net change in restricted cash | (7.1) | 3.2 |
Proceeds from repayment of intercompany notes receivable | 0 | |
Other | 5.4 | 0.5 |
Net cash used in investing activities | (74) | (67.8) |
Cash flows from financing activities: | ||
Principal borrowings on term loan facilities | 0 | |
Proceeds from bond issuance | 0 | |
Principal payments on debt, including pre-payments | (1) | (0.5) |
Principal borrowings on intercompany note payable | 11.5 | |
Principal payments on intercompany note payable | (22) | |
Borrowings on revolving credit facility | 0 | 0 |
Payments on revolving credit facility | 0 | 0 |
Debt amendment and issuance costs | 0 | |
Repurchases of common stock, including fees and expenses | 0 | |
Dividends paid on common stock | 0 | 0 |
Distributions paid to noncontrolling interests of consolidated affiliates | (49.5) | (39.7) |
Other | (6.1) | (16.4) |
Change in intercompany advances | (6.5) | (43.1) |
Net cash (used in) provided by financing activities | (73.6) | (99.7) |
Increase (decrease) in cash and cash equivalents | 0.8 | (8.5) |
Cash and cash equivalents at beginning of period | 19.2 | 23.4 |
Cash and cash equivalents at end of period | 20 | 14.9 |
Consolidation, Eliminations [Member] | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Purchases of property and equipment | 0 | 0 |
Capitalized software costs | 0 | 0 |
Acquisitions of businesses, net of cash acquired | 0 | 0 |
Proceeds from sale of marketable securities | 0 | |
Purchase of restricted investments | 0 | 0 |
Net change in restricted cash | 0 | 0 |
Funding of intercompany note receivable | 11.5 | |
Proceeds from repayment of intercompany notes receivable | (22) | |
Other | 0 | (13) |
Net cash used in investing activities | (10.5) | (13) |
Cash flows from financing activities: | ||
Principal borrowings on term loan facilities | 0 | |
Proceeds from bond issuance | 0 | |
Principal payments on debt, including pre-payments | 0 | 0 |
Principal borrowings on intercompany note payable | (11.5) | |
Principal payments on intercompany note payable | 22 | |
Borrowings on revolving credit facility | 0 | 0 |
Payments on revolving credit facility | 0 | 0 |
Debt amendment and issuance costs | 0 | |
Repurchases of common stock, including fees and expenses | 0 | |
Dividends paid on common stock | 0 | 0 |
Distributions paid to noncontrolling interests of consolidated affiliates | 0 | 0 |
Other | 0 | 13 |
Change in intercompany advances | 0 | 0 |
Net cash (used in) provided by financing activities | 10.5 | 13 |
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |