Company: EHC
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000785161-25-000009
Chunk: 46

Company: Encompass Health Corp
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 46
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 eight limited partnership-like entities that are VIEs and of which we are the primary beneficiary. Our ownership percentages in these entities range from 50.0% to 75.0% as of December 31, 2024. 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.

F-23

Encompass Health Corporation and SubsidiariesNotes to Consolidated Financial Statements

The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in our consolidated balance sheets, are as follows (in millions):As of December 31,20242023Assets Current assets: Cash and cash equivalents$0.4 $0.2 Accounts receivable34.5 36.7 Other current assets9.6 5.0 Total current assets44.5 41.9 Property and equipment, net135.7 128.8 Operating lease right-of-use assets1.3 1.4 Goodwill15.9 15.9 Intangible assets, net1.0 1.2 Other long-term assets9.7 18.5 Total assets$208.1 $207.7 LiabilitiesCurrent liabilities:Current portion of long-term debt$1.0 $0.9 Accounts payable6.2 7.6 Accrued payroll11.0 9.4 Other current liabilities12.7 9.3 Total current liabilities30.9 27.2 Long-term debt, net of current portion12.7 13.6 Long-term operating lease liabilities1.4 1.4 Total liabilities$45.0 $42.2 

4.Cash and Marketable Securities:

The components of our investments as of December 31, 202