Company: EHC
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000785161-25-000009
Chunk: 66

Company: Encompass Health Corp
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 66
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 December 31, 2023 and 2022.

F-38

Encompass Health Corporation and SubsidiariesNotes to Consolidated Financial Statements

15.Income Taxes:

The significant components of the Provision for income tax expense related to continuing operations are as follows (in millions): For the Year Ended December 31, 202420232022Current:   Federal$111.0 $101.7 $58.7 State and other28.5 26.6 13.5 Total current expense139.5 128.3 72.2 Deferred:   Federal8.6 (0.7)17.9 State and other2.1 4.6 10.0 Total deferred expense10.7 3.9 27.9 Total income tax expense related to continuing operations$150.2 $132.2 $100.1 A reconciliation of differences between the federal income tax at statutory rates and our actual income tax expense on our income from continuing operations, which include federal, state, and other income taxes, is presented below: For the Year Ended December 31, 202420232022Tax expense at statutory rate21.0 %21.0 %21.0 %Increase (decrease) in tax rate resulting from:   State and other income taxes, net of federal tax benefit3.9 %4.1 %4.0 %Increase in valuation allowance— %0.3 %0.6 %Noncontrolling interests(3.8)%(4.0)%(4.4)%Share-based windfall tax benefits(1.0)%— %— %Other, net(0.1)%0.4 %1.0 %Income tax expense20.0 %21.8 %22.2 %The Provision for income tax expense in 2024 was less than the federal statutory rate primarily due to the impact of noncontrolling interests and share-based windfall tax benefits, offset by state and other income tax expense. The Provision for income tax expense in 2023 and 2022 was greater than the federal statutory rate primarily due to state and other income tax expense and a gross increase in valuation allowance, offset by the impact of noncontrolling interests. See Note 1, Summary of Significant Accounting Policies, “Income Taxes,” for a discussion of the allocation of income or loss