Company: EHC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000785161-25-000115
Chunk: 16

Company: Encompass Health Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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 by operating activities for the nine months ended September 30, 2025 compared to the same period of 2024 primarily resulted from an increase in Net income which was driven by growth in Net operating revenues.

Investing activities. The increase in Net cash used in investing activities during the nine months ended September 30, 2025 compared to the same period of 2024 primarily resulted from increased Purchases of property, equipment, and intangible assets.

Financing activities. The increase in Net cash used in financing activities during the nine months ended September 30, 2025 compared to the same period of 2024 primarily resulted from lower Contributions from noncontrolling interests of 

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consolidated affiliates and higher Repurchases of common stock, including fees and expenses, partially offset by lower net debt payments. Contributions from noncontrolling interests of consolidated affiliates during the nine months ended September 30, 2024 included approximately $90 million from Piedmont Healthcare. See Note 1, Basis of Presentation, “Noncontrolling Interests in Consolidated Affiliates,” to the accompanying condensed consolidated financial statements, for additional information on this transaction. For additional information related to our stock repurchases, see “Authorizations for Returning Capital to Stakeholders” section below. For additional information on our net debt payments, see Note 5, Long-term Debt, to the accompanying condensed consolidated financial statements included in Part I, Item 1, Financial Statements (Unaudited), of this report, and Note 9, Long-term Debt, to the consolidated financial statements accompanying the 2024 Form 10‑K.

Contractual Obligations

Our consolidated contractual obligations as of September 30, 2025 are as follows (in millions):

 TotalCurrentLong-termLong-term debt obligations:   Long-term debt, excluding finance lease obligations (a)$2,052.1 $13.2 $2,038.9 Revolving credit facility80.0 — 80.0 Interest on long-term debt (b)388.5 103.7 284.8 Finance lease obligations (c)423.2 47.4 375.8 Operating lease obligations (d)314.0 43.1 270.9 Purchase obligations (e)226.8 65.0 161.8 Total$3,484.6 $272.4 $3,212.2 

(a)    Included in long-term debt