Company: EHC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000785161-25-000052
Chunk: 19

Company: Encompass Health Corp
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 19
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 of this report.

Supplemental Guarantor Financial Information

Our indebtedness under our credit agreement and the 5.75% Senior Notes due 2025, 4.50% Senior Notes due 2028, 4.75% Senior Notes due 2030, and 4.625% Senior Notes due 2031, (collectively, the “Senior Notes”) are guaranteed by certain consolidated subsidiaries. These guarantees are full and unconditional and joint and several, subject to certain customary conditions for release. The Senior Notes are guaranteed on a senior, unsecured basis by all of our existing and future subsidiaries that guarantee borrowings under our credit agreement and other capital markets debt. The other subsidiaries of Encompass Health do not guarantee the Senior Notes (such subsidiaries are referred to as the “non-guarantor subsidiaries”).

Summarized financial information is presented below for Encompass Health, the parent company, and the subsidiary guarantors on a combined basis after elimination of intercompany transactions and balances among Encompass Health and the subsidiary guarantors and does not include investments in and equity in the earnings of non-guarantor subsidiaries.

Six Months Ended June 30, 2025(In Millions)Net operating revenues$1,809.1 Intercompany revenues generated from non-guarantor subsidiaries54.9 Total net operating revenues$1,864.0 Operating expenses$1,545.7 Intercompany expenses incurred in transactions with non-guarantor subsidiaries20.6 Total operating expenses$1,566.3 Income from continuing operations$184.3 Net income$182.9 Net income attributable to Encompass Health$182.9 

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As of June 30, 2025As ofDecember 31, 2024(In Millions)Total current assets$642.0 $609.5 Property and equipment, net$2,550.1 $2,394.0 Goodwill893.2 893.2 Intercompany receivable due from non-guarantor subsidiaries25.8 47.4 Other noncurrent assets498.6 490.9 Total noncurrent assets$3,967.7 $3,825.5 Total current liabilities$677.1 $677.7 Long-term debt, net of current portion$2,238.2 $2,273.3 Other noncurrent liabilities341.4 336.1 Total noncurrent liabilities$2,