Company: EHC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000785161-25-000021
Chunk: 44

Company: Encompass Health Corp
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 awards that include a performance and market condition, the number of shares that will ultimately be granted to employees may vary based on the Company’s performance during the applicable three-year performance measurement period. Additionally, we granted 0.1 million stock options to members of our management team. The fair value of these awards and options was determined using the policies described in Note 1, Summary of Significant Accounting Policies, and Note 13, Share-Based Payments, to the consolidated financial statements accompanying the 2024 Form 10‑K.

7.Income Taxes

Our Provision for income tax expense of $41.6 million for the three months ended March 31, 2025 primarily resulted from the application of our estimated effective blended federal and state income tax rate primarily offset by tax benefits resulting from share-based compensation windfalls. Our Provision for income tax expense of $38.3 million for the three months ended March 31, 2024 primarily resulted from the application of our estimated effective blended federal and state income tax rate.

11

Encompass Health Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements

8.Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts): Three Months Ended March 31, 20252024Basic:Numerator:  Income from continuing operations$197.0 $140.1 Less: Net income attributable to noncontrolling interests included in continuing operations(45.0)(26.3)Less: Income allocated to participating securities(0.4)(0.8)Income from continuing operations attributable to Encompass Health common shareholders151.6 113.0 Loss from discontinued operations attributable to Encompass Health common shareholders(0.5)(1.3)Net income attributable to Encompass Health common shareholders$151.1 $111.7 Denominator:Basic weighted average common shares outstanding100.5 99.8 Basic earnings per share attributable to Encompass Health common shareholders:Continuing operations$1.50 $1.13 Discontinued operations— (0.01)Net income$1.50 $1.12 Diluted:Numerator:Income from continuing operations$197.0 $140.1 Less: Net income attributable to noncontrolling interests included in continuing operations(45.0)(26.3)Income from continuing operations attributable to Encompass Health common shareholders152.0 113.8 Loss from