Company: EHC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000785161-25-000115
Chunk: 54

Company: Encompass Health Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 Summary of Significant Accounting Policies, “Fair Value Measurements,” to the consolidated financial statements accompanying the 2024 Form 10‑K, the carrying value equals fair value for our financial instruments that are not included in the table below and are classified as current in our condensed consolidated balance sheets. The carrying amounts and estimated fair values for all of our other financial instruments are presented in the following table (in millions): As of September 30, 2025As of December 31, 2024 Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair ValueLong-term debt:    Advances under revolving credit facility$80.0 $80.0 $20.0 $20.0 5.75% Senior Notes due 2025— — 99.8 99.7 4.50% Senior Notes due 2028791.1 794.2 788.4 772.3 4.75% Senior Notes due 2030786.2 788.4 784.2 759.0 4.625% Senior Notes due 2031393.3 389.5 392.5 369.9 Other notes payable81.5 81.5 94.5 94.5 Financial commitments:Letters of credit— 47.1 — 36.3 Fair values for our long-term debt and financial commitments are determined using inputs, including quoted prices in nonactive markets, that are observable either directly or indirectly, or Level 2 inputs within the fair value hierarchy. See Note 1, Summary of Significant Accounting Policies, “Fair Value Measurements,” to the consolidated financial statements accompanying the 2024 Form 10‑K.

8.Share-Based Payments

During the nine months ended September 30, 2025, we issued a total of 0.4 million restricted stock awards to members of our management team and our board of directors. Of the restricted stock awards issued to members of our management team, 0.1 million contain only a service condition, while the remainder contain a service and/or performance condition as well as a market condition for certain members of management. For the 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