Company: EHC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000785161-25-000115
Chunk: 23

Company: Encompass Health Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 23
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0.7 1.8 3.2 Net income attributable to noncontrolling interests included in continuing operations(48.1)(38.9)(135.9)(97.6)Provision for income tax expense44.9 36.0 137.5 112.6 Interest expense and amortization of debt discounts and fees30.8 34.9 93.0 104.4 Depreciation and amortization82.4 78.4 241.5 221.6 Loss on early extinguishment of debt— 0.4 — 0.4 Loss on disposal or impairment of assets1.9 0.6 2.4 11.3 Stock-based compensation14.3 12.9 38.1 35.8 Asset impairment impact on noncontrolling interests— — — (7.3)Change in fair market value of marketable securities(1.1)(2.8)(2.1)(2.7)Adjusted EBITDA$300.1 $269.3 $932.3 $814.1 

For additional information see the “Results of Operations” section of this Item.

Recent Accounting Pronouncements

For information regarding recent accounting pronouncements, see Note 1, Basis of Presentation, to our condensed consolidated financial statements included under Part I, Item 1, Financial Statements (Unaudited), of this report.

Item 4.Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, an evaluation was carried out by our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended. Based on our evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control Over Financial Reporting

There have been no changes in our Internal Control over Financial Reporting during the quarter ended September 30, 2025 that have a material effect on our Internal Control over Financial Reporting.

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PART II. OTHER INFORMATION

Item 1.Legal Proceedings

We provide services in the highly regulated healthcare industry. Furthermore, operating inpatient rehabilitation hospitals requires significant staffing and involves intensive therapy for individuals suffering from