Company: EHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000785161-25-000052
Chunk: 49

Company: Encompass Health Corp
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 30, 2025. 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 condensed consolidated balance sheets, are as follows (in millions):June 30, 2025December 31, 2024Assets Current assets: Cash and cash equivalents$0.4 $0.4 Accounts receivable36.2 34.5 Other current assets11.0 9.6 Total current assets47.6 44.5 Property and equipment, net132.5 135.7 Operating lease right-of-use assets1.3 1.3 Goodwill15.9 15.9 Intangible assets, net0.9 1.0 Other long-term assets9.7 9.7 Total assets$207.9 $208.1 LiabilitiesCurrent liabilities:Current portion of long-term debt$1.0 $1.0 Accounts payable7.5 6.2 Accrued expenses and other current liabilities26.7 23.7 Total current liabilities35.2 30.9 Long-term debt, net of current portion12.1 12.7 Long-term operating lease liabilities1.4 1.4 Total liabilities$48.7 $45.0 

11

Encompass Health Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements

4.Marketable Securities

Restricted marketable securities at both balance sheet dates represent restricted assets held at HCS, Ltd (“HCS”), our consolidated wholly owned offshore captive insurance company. HCS insures a substantial portion of Encompass Health’s professional liability, workers’ compensation, and other insurance claims. These funds