|                                     |
|-------------------------------------|
|                                     |  |
| Media Contact                       | July 29, 2019 |
| Casey Lassiter, 205 447-6410        |   |
| casey.lassiter@encompasshealth.com  |   |
|                                |   |
| Investor Relations Contact          |   |
| Crissy Carlisle, 205 970-5860       |   |
| crissy.carlisle@encompasshealth.com |   |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                 |   |   |   |   | Growth |
|                                                                                 | Q2 2019 |   | Q2 2018 |   | Dollars |   | Percent |
|                                                                                 | (In Millions, Except per Share Data) |
| Net operating revenues                                                               | $ | 1,135.0 |  |   | $ | 1,067.7 |  |   | $ | 67.3 |  |   | 6.3 |  % |
| Income from continuing operations attributable to Encompass Health per diluted share | 0.92 |  |   | 0.92 |  |   | — |  |   | — |  % |
| Adjusted earnings per share                                                          | 1.08 |  |   | 0.99 |  |   | 0.09 |  |   | 9.1 |  % |
| Cash flows provided by operating activities                                          | 145.4 |  |   | 169.2 |  |   | (23.8 | ) |   | (14.1 | )% |
| Adjusted EBITDA                                                                      | 252.2 |  |   | 231.6 |  |   | 20.6 |  |   | 8.9 |  % |
| Adjusted free cash flow                                                              | 142.2 |  |   | 111.2 |  |   | 31.0 |  |   | 27.9 |  % |
|                                                                                 | Six Months Ended June 30, |   |   |   |   |
|                                                                                 | 2019 |   | 2018 |   |   |   |   |
| Cash flows provided by operating activities                                          | $ | 305.3 |  |   | $ | 385.5 |  |   | $ | (80.2 | ) |   | (20.8 | )% |
| Adjusted free cash flow                                                              | 270.0 |  |   | 281.4 |  |   | (11.4 | ) |   | (4.1 | )% |

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|   |   | 1 |

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|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              |   |   |   |   | Growth |
|                              | Q2 2019 |   | Q2 2018 |   | Dollars |   | Percent |
| Net operating revenues:           | (In Millions) |
| Inpatient                         | $ | 851.8 |  |   | $ | 809.6 |  |   | $ | 42.2 |  |   | 5.2 |  % |
| Outpatient and other              | 22.1 |  |   | 25.0 |  |   | (2.9 | ) |   | (11.6 | )% |
| Total segment revenue             | $ | 873.9 |  |   | $ | 834.6 |  |   | $ | 39.3 |  |   | 4.7 |  % |
|                              |   |   |   |   |   |   |   |
|                              | (Actual Amounts) |
| Discharges                        | 46,679 |  |   | 45,010 |  |   | 1,669 |  |   | 3.7 |  % |
| Same-store discharge growth       |   |   |   |   |   |   | 2.2 |  % |
| Net patient revenue per discharge | $ | 18,248 |  |   | $ | 17,987 |  |   | $ | 261 |  |   | 1.5 |  % |
|                              |   |   |   |   |   |   |   |
|                              | (In Millions) |
| Adjusted EBITDA                   | $ | 233.9 |  |   | $ | 223.5 |  |   | $ | 10.4 |  |   | 4.7 |  % |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenue - Revenue growth resulted from volume growth and an increase in net patient revenue per discharge. Discharge growth from new stores resulted from the Company's joint ventures in Murrells Inlet, South Carolina (September 2018), Winston-Salem, North Carolina (October 2018), and Lubbock, Texas (May 2019), as well as wholly owned hospitals in Shelby County, Alabama (April 2018) and Bluffton, South Carolina (June 2018). Same-store discharge growth in the second quarter of 2019 was negatively impacted by approximately 20 basis points due to the ongoing effects of Hurricane Michael on operations in the Panama City, Florida market. Growth in net patient revenue per discharge primarily resulted from an increase in reimbursement rates from all payors and improvements in discharge destination partially offset by lower prior period cost report adjustments compared to the second quarter of 2018. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted EBITDA - The increase in Adjusted EBITDA primarily resulted from revenue growth. The increase in salaries and benefits as a percent of revenue was within the Company's expected range. Other operating expenses decreased as a percent of revenue in the second quarter of 2019 due primarily to lower provider and other taxes, favorable trends in general and professional liability expense, and operating leverage resulting from revenue growth. |

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|   |   | 2 |

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|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                         |   |   |   |   | Growth |
|                         | Q2 2019 |   | Q2 2018 |   | Dollars |   | Percent |
| Net operating revenues:      | (In Millions) |
| Home health                  | $ | 222.7 |  |   | $ | 204.8 |  |   | $ | 17.9 |  |   | 8.7 |  % |
| Hospice                      | 38.4 |  |   | 28.3 |  |   | 10.1 |  |   | 35.7 |  % |
| Total segment revenue        | $ | 261.1 |  |   | $ | 233.1 |  |   | $ | 28.0 |  |   | 12.0 |  % |
|                         |   |   |   |   |   |   |   |
| Home Health Metrics          |
| (Actual Amounts)             |
| Admissions                   | 37,828 |  |   | 34,026 |  |   | 3,802 |  |   | 11.2 |  % |
| Same-store admissions growth |   |   |   |   |   |   | 8.3 |  % |
| Episodes                     | 66,881 |  |   | 61,238 |  |   | 5,643 |  |   | 9.2 |  % |
| Same-store episode growth    |   |   |   |   |   |   | 6.2 |  % |
| Revenue per episode          | $ | 2,959 |  |   | $ | 2,968 |  |   | $ | (9 | ) |   | (0.3 | )% |
|                         |   |   |   |   |   |   |   |
|                         | (In Millions) |
| Adjusted EBITDA              | $ | 49.1 |  |   | $ | 41.6 |  |   | $ | 7.5 |  |   | 18.0 |  % |

|         |                                                                                                                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Revenue - Revenue growth resulted from volume growth. Volume growth included the impact of the acquisition of Camellia Healthcare on May 1, 2018. Revenue per episode decreased due primarily to the timing of completed episodes and the resolution of a Zone Program Integrity Contractor audit that positively impacted pricing in the second quarter of 2018. |

|         |                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted EBITDA - Growth in Adjusted EBITDA primarily resulted from revenue growth, improvements in caregiver optimization and productivity in home health, and increased scale and efficiencies in hospice. |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Q2 2019 |   | % of Consolidated Revenue |   | Q2 2018 |   | % of Consolidated Revenue |
|                                                                    | (In Millions) |
| General and administrative expenses, excluding stock-based compensation | $ | 30.8 |  |   | 2.7% |   | $ | 33.5 |  |   | 3.1% |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | General and administrative expenses decreased as a percent of consolidated revenue primarily due to expenses associated with the Company's rebranding and name change in 2018 and operating leverage resulting from revenue growth. During the second quarter of 2019, the Company invested $0.2 million in its rebranding and name change, all of which was included in general and administrative expenses. During the second quarter of 2018, the Company invested $2.8 million in its rebranding and name change. |

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|   |   | 3 |

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|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |
|                                                                                    | Full-Year 2019 Guidance |
|                                                                                    | Previous Guidance |   | Updated Guidance |
|                                                                                    | (In Millions, Except Per Share Data) |
| Net operating revenues                                                                  | $4,500 to $4,600 |   | $4,500 to $4,600 |
| Adjusted EBITDA                                                                         | $925 to $945 |   | $940 to $960 |
| Adjusted earnings per share from continuing operations attributable to Encompass Health | $3.71 to $3.85 |   | $3.71 to $3.85 |

|         |                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the Company's acquisition of Alacare Home Health and Hospice on July 1, 2019, including the resulting increase in depreciation and amortization; |

|         |                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------|
| • | the reduction in noncontrolling interests related to the redemption of the home health rollover shares; and |

|         |                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | increased interest expense associated with funding the Alacare acquisition, DOJ settlement, purchase of the home health rollover shares, and exercise of the stock appreciation rights. |

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|   |   | 4 |

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|         |                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------|
| • | Interest expense and amortization of debt discounts and fees - estimate of $160 million to $170 million |

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | Amortization of debt-related items - approximately $4 million |

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|   |   | 5 |

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|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                             | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                             | 2019 |   | 2018 |   | 2019 |   | 2018 |
|                                                                             | (In Millions, Except per Share Data) |
| Net operating revenues                                                           | $ | 1,135.0 |  |   | $ | 1,067.7 |  |   | $ | 2,259.0 |  |   | $ | 2,113.7 |  |
| Operating expenses:                                                              |   |  |   |   |  |   |   |   |   |
| Salaries and benefits                                                            | 622.9 |  |   | 578.2 |  |   | 1,243.7 |  |   | 1,148.4 |  |
| Other operating expenses                                                         | 149.8 |  |   | 149.4 |  |   | 299.9 |  |   | 290.6 |  |
| Occupancy costs                                                                  | 20.3 |  |   | 19.5 |  |   | 39.9 |  |   | 38.1 |  |
| Supplies                                                                         | 41.7 |  |   | 39.3 |  |   | 81.8 |  |   | 79.2 |  |
| General and administrative expenses                                              | 77.1 |  |   | 54.9 |  |   | 130.5 |  |   | 116.0 |  |
| Depreciation and amortization                                                    | 52.7 |  |   | 49.7 |  |   | 105.2 |  |   | 95.6 |  |
| Total operating expenses                                                         | 964.5 |  |   | 891.0 |  |   | 1,901.0 |  |   | 1,767.9 |  |
| Loss on early extinguishment of debt                                             | 2.3 |  |   | — |  |   | 2.3 |  |   | — |  |
| Interest expense and amortization of debt discounts and fees                     | 37.7 |  |   | 37.7 |  |   | 74.9 |  |   | 73.3 |  |
| Other income                                                                     | (2.2 | ) |   | (1.3 | ) |   | (5.9 | ) |   | (1.2 | ) |
| Equity in net income of nonconsolidated affiliates                               | (1.8 | ) |   | (2.0 | ) |   | (4.3 | ) |   | (4.3 | ) |
| Income from continuing operations before income tax expense                      | 134.5 |  |   | 142.3 |  |   | 291.0 |  |   | 278.0 |  |
| Provision for income tax expense                                                 | 23.5 |  |   | 29.3 |  |   | 54.3 |  |   | 59.3 |  |
| Income from continuing operations                                                | 111.0 |  |   | 113.0 |  |   | 236.7 |  |   | 218.7 |  |
| (Loss) income from discontinued operations, net of tax                           | (0.1 | ) |   | 0.2 |  |   | (0.6 | ) |   | (0.3 | ) |
| Net and comprehensive income                                                     | 110.9 |  |   | 113.2 |  |   | 236.1 |  |   | 218.4 |  |
| Less: Net and comprehensive income attributable to noncontrolling interests      | (19.7 | ) |   | (21.4 | ) |   | (42.6 | ) |   | (42.8 | ) |
| Net and comprehensive income attributable to Encompass Health                    | $ | 91.2 |  |   | $ | 91.8 |  |   | $ | 193.5 |  |   | $ | 175.6 |  |
|                                                                             |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                                      |   |  |   |   |  |   |   |   |   |
| Basic                                                                            | 98.0 |  |   | 97.9 |  |   | 98.2 |  |   | 97.9 |  |
| Diluted                                                                          | 99.3 |  |   | 99.6 |  |   | 99.5 |  |   | 99.6 |  |
|                                                                             |  |  |   |  |  |   |   |   |   |
| Earnings per common share:                                                       |   |   |   |   |   |   |   |
| Basic earnings per share attributable to Encompass Health common shareholders:   |   |   |   |  |   |   |   |   |
| Continuing operations                                                            | $ | 0.93 |  |   | $ | 0.93 |  |   | $ | 1.97 |  |   | $ | 1.79 |  |
| Discontinued operations                                                          | — |  |   | — |  |   | (0.01 | ) |   | — |  |
| Net income                                                                       | $ | 0.93 |  |   | $ | 0.93 |  |   | $ | 1.96 |  |   | $ | 1.79 |  |
| Diluted earnings per share attributable to Encompass Health common shareholders: |   |   |   |   |   |   |   |
| Continuing operations                                                            | $ | 0.92 |  |   | $ | 0.92 |  |   | $ | 1.95 |  |   | $ | 1.76 |  |
| Discontinued operations                                                          | — |  |   | — |  |   | (0.01 | ) |   | — |  |
| Net income                                                                       | $ | 0.92 |  |   | $ | 0.92 |  |   | $ | 1.94 |  |   | $ | 1.76 |  |
|                                                                             |   |   |   |   |   |   |   |
| Amounts attributable to Encompass Health common shareholders:                    |   |   |   |  |   |   |   |   |
| Income from continuing operations                                                | $ | 91.3 |  |   | $ | 91.6 |  |   | $ | 194.1 |  |   | $ | 175.9 |  |
| (Loss) income from discontinued operations, net of tax                           | (0.1 | ) |   | 0.2 |  |   | (0.6 | ) |   | (0.3 | ) |
| Net income attributable to Encompass Health                                      | $ | 91.2 |  |   | $ | 91.8 |  |   | $ | 193.5 |  |   | $ | 175.6 |  |

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|   |   | 6 |

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|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | June 30, 2019 |   | December 31, 2018 |
|                                             | (In Millions) |
| Assets                                           |   |   |   |
| Current assets:                                  |   |   |   |
| Cash and cash equivalents                        | $ | 221.7 |  |   | $ | 69.2 |  |
| Restricted cash                                  | 56.8 |  |   | 59.0 |  |
| Accounts receivable                              | 496.0 |  |   | 467.7 |  |
| Other current assets                             | 70.4 |  |   | 66.2 |  |
| Total current assets                             | 844.9 |  |   | 662.1 |  |
| Property and equipment, net                      | 1,788.1 |  |   | 1,634.8 |  |
| Operating lease right-of-use assets              | 284.4 |  |   | — |  |
| Goodwill                                         | 2,111.6 |  |   | 2,100.8 |  |
| Intangible assets, net                           | 443.6 |  |   | 443.4 |  |
| Deferred income tax assets                       | 42.6 |  |   | 42.9 |  |
| Other long-term assets                           | 296.9 |  |   | 291.0 |  |
| Total assets                                     | $ | 5,812.1 |  |   | $ | 5,175.0 |  |
| Liabilities and Shareholders’ Equity       |   |   |   |
| Current liabilities:                             |   |   |   |
| Current portion of long-term debt                | $ | 38.1 |  |   | $ | 35.8 |  |
| Current operating lease liabilities              | 45.2 |  |   | — |  |
| Accounts payable                                 | 95.6 |  |   | 90.0 |  |
| Accrued expenses and other current liabilities   | 574.0 |  |   | 546.7 |  |
| Total current liabilities                        | 752.9 |  |   | 672.5 |  |
| Long-term debt, net of current portion           | 2,719.6 |  |   | 2,478.6 |  |
| Long-term operating lease liabilities            | 245.8 |  |   | — |  |
| Other long-term liabilities                      | 157.2 |  |   | 205.2 |  |
|                                             | 3,875.5 |  |   | 3,356.3 |  |
| Commitments and contingencies                    |   |   |   |
| Redeemable noncontrolling interests              | 352.8 |  |   | 261.7 |  |
| Shareholders’ equity:                      |   |  |   |   |  |
| Encompass Health shareholders’ equity      | 1,275.9 |  |   | 1,276.7 |  |
| Noncontrolling interests                         | 307.9 |  |   | 280.3 |  |
| Total shareholders’ equity                 | 1,583.8 |  |   | 1,557.0 |  |
| Total liabilities and shareholders’ equity | $ | 5,812.1 |  |   | $ | 5,175.0 |  |

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|   |   | 7 |

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|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |
|                                                                                    | Six Months Ended June 30, |
|                                                                                    | 2019 |   | 2018 |
|                                                                                    | (In Millions) |
| Cash flows from operating activities:                                                   |   |   |   |
| Net income                                                                              | $ | 236.1 |  |   | $ | 218.4 |  |
| Loss from discontinued operations, net of tax                                           | 0.6 |  |   | 0.3 |  |
| Adjustments to reconcile net income to net cash provided by operating activities— |   |  |   |   |  |
| Depreciation and amortization                                                           | 105.2 |  |   | 95.6 |  |
| Stock-based compensation                                                                | 65.3 |  |   | 47.5 |  |
| Deferred tax expense (benefit)                                                          | 0.5 |  |   | (3.6 | ) |
| Other, net                                                                              | 3.8 |  |   | 5.6 |  |
| Change in assets and liabilities, net of acquisitions—                            |   |   |   |  |
| Accounts receivable                                                                     | (22.6 | ) |   | 9.9 |  |
| Other assets                                                                            | (11.8 | ) |   | 11.4 |  |
| Accounts payable                                                                        | (4.5 | ) |   | (0.4 | ) |
| Accrued payroll                                                                         | (7.7 | ) |   | (10.6 | ) |
| Other liabilities                                                                       | (55.1 | ) |   | 12.0 |  |
| Net cash used in operating activities of discontinued operations                        | (4.5 | ) |   | (0.6 | ) |
| Total adjustments                                                                       | 68.6 |  |   | 166.8 |  |
| Net cash provided by operating activities                                               | 305.3 |  |   | 385.5 |  |
| Cash flows from investing activities:                                                   |   |   |   |
| Purchases of property and equipment                                                     | (155.8 | ) |   | (108.8 | ) |
| Additions to capitalized software costs                                                 | (6.6 | ) |   | (9.7 | ) |
| Acquisitions of businesses, net of cash acquired                                        | (13.7 | ) |   | (135.8 | ) |
| Other, net                                                                              | (15.5 | ) |   | (6.7 | ) |
| Net cash used in investing activities                                                   | (191.6 | ) |   | (261.0 | ) |
|                                                                                    |   |   |   |

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|   | (Continued) | 8 |

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|                                                                           |
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|                                                                           |  |  |  |  |  |  |  |
|                                                                      | Six Months Ended June 30, |
|                                                                      | 2019 |   | 2018 |
|                                                                      | (In Millions) |
| Cash flows from financing activities:                                     |   |   |   |
| Principal payments on debt, including pre-payments                        | (112.1 | ) |   | (9.1 | ) |
| Borrowings on revolving credit facility                                   | 400.0 |  |   | 245.0 |  |
| Payments on revolving credit facility                                     | (95.0 | ) |   | (190.0 | ) |
| Principal payments under finance lease obligations                        | (9.3 | ) |   | (8.4 | ) |
| Repurchases of common stock, including fees and expenses                  | (43.8 | ) |   | — |  |
| Dividends paid on common stock                                            | (54.9 | ) |   | (49.9 | ) |
| Purchase of equity interests in consolidated affiliates                   | — |  |   | (65.1 | ) |
| Distributions paid to noncontrolling interests of consolidated affiliates | (36.5 | ) |   | (35.2 | ) |
| Taxes paid on behalf of employees for shares withheld                     | (16.1 | ) |   | (8.3 | ) |
| Other, net                                                                | 8.2 |  |   | 4.5 |  |
| Net cash provided by (used in) financing activities                       | 40.5 |  |   | (116.5 | ) |
| Increase in cash, cash equivalents, and restricted cash                   | 154.2 |  |   | 8.0 |  |
| Cash, cash equivalents, and restricted cash at beginning of period        | 133.5 |  |   | 116.8 |  |
| Cash, cash equivalents, and restricted cash at end of period              | $ | 287.7 |  |   | $ | 124.8 |  |
|                                                                      |   |   |   |
| Reconciliation of Cash, Cash Equivalents, and Restricted Cash             |   |   |   |
| Cash and cash equivalents at beginning of period                          | $ | 69.2 |  |   | $ | 54.4 |  |
| Restricted cash at beginning of period                                    | 59.0 |  |   | 62.4 |  |
| Restricted cash included in other long-term assets at beginning of period | 5.3 |  |   | — |  |
| Cash, cash equivalents, and restricted cash at beginning of period        | $ | 133.5 |  |   | $ | 116.8 |  |
|                                                                      |   |   |   |
| Cash and cash equivalents at end of period                                | $ | 221.7 |  |   | $ | 59.0 |  |
| Restricted cash at end of period                                          | 56.8 |  |   | 65.8 |  |
| Restricted cash included in other long-term assets at end of period       | 9.2 |  |   | — |  |
| Cash, cash equivalents, and restricted cash at end of period              | $ | 287.7 |  |   | $ | 124.8 |  |

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|   |   | 9 |

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|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                           | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                           | 2019 |   | 2018 |   | 2019 |   | 2018 |
|                                                           | (In Millions, Except Per Share Data) |
| Consolidated Adjusted EBITDA                                   | $ | 252.2 |  |   | $ | 231.6 |  |   | $ | 495.1 |  |   | $ | 454.9 |  |
| Depreciation and amortization                                  | (52.7 | ) |   | (49.7 | ) |   | (105.2 | ) |   | (95.6 | ) |
| Interest expense and amortization of debt discounts and fees   | (37.7 | ) |   | (37.7 | ) |   | (74.9 | ) |   | (73.3 | ) |
| Stock-based compensation expense                               | (45.9 | ) |   | (21.4 | ) |   | (65.3 | ) |   | (47.5 | ) |
| Noncash loss on disposal of assets                             | (1.3 | ) |   | (2.4 | ) |   | (2.4 | ) |   | (3.2 | ) |
|                                                           | 114.6 |  |   | 120.4 |  |   | 247.3 |  |   | 235.3 |  |
| Certain items non-indicative of ongoing operating performance: |   |   |   |   |   |   |   |
| Loss on early extinguishment of debt                           | (2.3 | ) |   | — |  |   | (2.3 | ) |   | — |  |
| Transaction costs                                              | (0.4 | ) |   | — |  |   | (1.0 | ) |   | (1.0 | ) |
| SARs mark-to-market impact on noncontrolling interests         | 2.6 |  |   | 0.9 |  |   | 3.4 |  |   | 1.9 |  |
| Change in fair market value of equity securities               | 0.3 |  |   | (0.4 | ) |   | 1.2 |  |   | (1.0 | ) |
| Payroll taxes on SARs exercise                                 | — |  |   | — |  |   | (0.2 | ) |   | — |  |
| Pre-tax income                                                 | 114.8 |  |   | 120.9 |  |   | 248.4 |  |   | 235.2 |  |
| Income tax expense                                             | (23.5 | ) |   | (29.3 | ) |   | (54.3 | ) |   | (59.3 | ) |
| Income from continuing operations (1)                          | $ | 91.3 |  |   | $ | 91.6 |  |   | $ | 194.1 |  |   | $ | 175.9 |  |
|                                                           |   |   |   |   |   |   |   |
| Basic shares                                                   | 98.0 |  |   | 97.9 |  |   | 98.2 |  |   | 97.9 |  |
| Diluted shares                                                 | 99.3 |  |   | 99.6 |  |   | 99.5 |  |   | 99.6 |  |
|                                                           |   |   |   |   |   |   |   |
| Basic earnings per share (1)                                   | $ | 0.93 |  |   | $ | 0.93 |  |   | $ | 1.97 |  |   | $ | 1.79 |  |
| Diluted earnings per share (1)                                 | $ | 0.92 |  |   | $ | 0.92 |  |   | $ | 1.95 |  |   | $ | 1.76 |  |

|           |                                                                    |
|-----------|--------------------------------------------------------------------|
| (1)  | Income from continuing operations attributable to Encompass Health |

|        |
|--------|
|        |  |  |
|   |   | 10 |

----

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                     | Q2 |   | 6 Months |
|                                                     | 2019 |   | 2018 |   | 2019 |   | 2018 |
|                                                     |   |   |   |   |   |   |   |
| Earnings per share, as reported                          | $ | 0.92 |  |   | $ | 0.92 |  |   | $ | 1.95 |  |   | $ | 1.76 |  |
| Adjustments, net of tax:                                 |   |   |   |   |   |   |   |
| Mark-to-market adjustments for stock appreciation rights | 0.21 |  |   | 0.07 |  |   | 0.28 |  |   | 0.15 |  |
| Transaction costs                                        | — |  |   | — |  |   | 0.01 |  |   | 0.01 |  |
| Loss on early extinguishment of debt                     | 0.02 |  |   | — |  |   | 0.02 |  |   | — |  |
| Change in fair market value of equity securities         | — |  |   | — |  |   | (0.01 | ) |   | 0.01 |  |
| Income tax adjustments                                   | (0.07 | ) |   | (0.01 | ) |   | (0.12 | ) |   | (0.01 | ) |
| Adjusted earnings per share(1)                           | $ | 1.08 |  |   | $ | 0.99 |  |   | $ | 2.12 |  |   | $ | 1.92 |  |

|           |                                           |
|-----------|-------------------------------------------|
| (1)  | Adjusted EPS may not sum due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 11 |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    | For the Three Months Ended June 30, 2019 |
|                                                                                    |   |   | Adjustments |   |   |
|                                                                                    | As Reported |   | Mark-to-Market Adjustment for Stock Compensation Expense |   | Loss on Early Exting. of Debt |   | Income Tax Adjustments |   | Transaction Costs |   | Change in Fair Market Value of Equity Securities |   | As Adjusted |
|                                                                                    | (In Millions, Except Per Share Amounts) |
| Adjusted EBITDA(1)                                                                      | $ | 252.2 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 252.2 |  |
| Depreciation and amortization                                                           | (52.7 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (52.7 | ) |
| Loss on early extinguishment of debt                                                    | (2.3 | ) |   | — |  |   | 2.3 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Interest expense and amortization of debt discounts and fees                            | (37.7 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (37.7 | ) |
| Stock-based compensation                                                                | (45.9 | ) |   | 31.4 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (14.5 | ) |
| Loss on disposal of assets                                                              | (1.3 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (1.3 | ) |
| Transaction costs                                                                       | (0.4 | ) |   | — |  |   | — |  |   | — |  |   | 0.4 |  |   | — |  |   | — |  |
| SARs mark-to-market impact on noncontrolling interests                                  | 2.6 |  |   | (2.6 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Change in fair market value of equity securities                                        | 0.3 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (0.3 | ) |   | — |  |
| Income from continuing operations before income tax expense                             | 114.8 |  |   | 28.8 |  |   | 2.3 |  |   | — |  |   | 0.4 |  |   | (0.3 | ) |   | 146.0 |  |
| Provision for income tax expense                                                        | (23.5 | ) |   | (7.8 | ) |   | (0.6 | ) |   | (7.2 | ) |   | (0.1 | ) |   | 0.1 |  |   | (39.1 | ) |
| Income from continuing operations attributable to Encompass Health                      | $ | 91.3 |  |   | $ | 21.0 |  |   | $ | 1.7 |  |   | $ | (7.2 | ) |   | $ | 0.3 |  |   | $ | (0.2 | ) |   | $ | 106.9 |  |
| Add: Interest, amortization, and loss on extinguishment of convertible debt, net of tax | — |  |   |   |   |   |   |   |   |   |   |   |   | — |  |
| Numerator for diluted earnings per share                                                | $ | 91.3 |  |   |   |   |   |   |   |   |   |   |   |   | $ | 106.9 |  |
| Diluted earnings per share from continuing operations(2)                                | $ | 0.92 |  |   | $ | 0.21 |  |   | $ | 0.02 |  |   | $ | (0.07 | ) |   | $ | — |  |   | $ | — |  |   | $ | 1.08 |  |
| Diluted shares used in calculation                                                      | 99.3 |  |   |   |   |   |   |   |   |   |   |   |   |   |

|           |                                            |
|-----------|--------------------------------------------|
| (1)  | Reconciliation to GAAP provided on page 17 |

|           |                                                  |
|-----------|--------------------------------------------------|
| (2)  | Adjusted EPS may not sum across due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 12 |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    | For the Three Months Ended June 30, 2018 |
|                                                                                    |   |   | Adjustments |   |   |
|                                                                                    | As Reported |   | Mark-to-Market Adjustment for Stock Compensation Expense |   | Income Tax Adjustments |   | Change in Fair Market Value of Equity Securities |   | As Adjusted |
|                                                                                    | (In Millions, Except Per Share Amounts) |
| Adjusted EBITDA(1)                                                                      | $ | 231.6 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 231.6 |  |
| Depreciation and amortization                                                           | (49.7 | ) |   | — |  |   | — |  |   | — |  |   | (49.7 | ) |
| Interest expense and amortization of debt discounts and fees                            | (37.7 | ) |   | — |  |   | — |  |   | — |  |   | (37.7 | ) |
| Stock-based compensation                                                                | (21.4 | ) |   | 10.8 |  |   | — |  |   | — |  |   | (10.6 | ) |
| Loss on disposal of assets                                                              | (2.4 | ) |   | — |  |   | — |  |   | — |  |   | (2.4 | ) |
| SARs mark-to-market impact on noncontrolling interests                                  | 0.9 |  |   | (0.9 | ) |   | — |  |   | — |  |   | — |  |
| Change in fair market value of equity securities                                        | (0.4 | ) |   | — |  |   | — |  |   | 0.4 |  |   | — |  |
| Income from continuing operations before income tax expense                             | 120.9 |  |   | 9.9 |  |   | — |  |   | 0.4 |  |   | 131.2 |  |
| Provision for income tax expense                                                        | (29.3 | ) |   | (2.8 | ) |   | (0.6 | ) |   | (0.1 | ) |   | (32.8 | ) |
| Income from continuing operations attributable to Encompass Health                      | $ | 91.6 |  |   | $ | 7.1 |  |   | $ | (0.6 | ) |   | $ | 0.3 |  |   | $ | 98.4 |  |
| Add: Interest, amortization, and loss on extinguishment of convertible debt, net of tax | — |  |   |   |   |   |   |   |   | — |  |
| Numerator for diluted earnings per share                                                | $ | 91.6 |  |   |   |   |   |   |   |   | $ | 98.4 |  |
| Diluted earnings per share from continuing operations(2)                                | $ | 0.92 |  |   | $ | 0.07 |  |   | $ | (0.01 | ) |   | $ | — |  |   | $ | 0.99 |  |
| Diluted shares used in calculation                                                      | 99.6 |  |   |   |   |   |   |   |   |   |

|           |                                            |
|-----------|--------------------------------------------|
| (1)  | Reconciliation to GAAP provided on page 17 |

|           |                                                  |
|-----------|--------------------------------------------------|
| (2)  | Adjusted EPS may not sum across due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 13 |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    | For the Six Months Ended June 30, 2019 |
|                                                                                    |   |   | Adjustments |   |   |
|                                                                                    | As Reported |   | Mark-to-Market Adjustment for Stock Compensation Expense |   | Loss on Early Exting. of Debt |   | Income Tax Adjustments |   | Transaction Costs |   | Change in Fair Market Value of Equity Securities |   | Payroll Taxes on SARs Exercise |   | As Adjusted |
|                                                                                    | (In Millions, Except Per Share Amounts) |
| Adjusted EBITDA(1)                                                                      | $ | 495.1 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 495.1 |  |
| Depreciation and amortization                                                           | (105.2 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (105.2 | ) |
| Loss on early extinguishment of debt                                                    | (2.3 | ) |   | — |  |   | 2.3 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Interest expense and amortization of debt discounts and fees                            | (74.9 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (74.9 | ) |
| Stock-based compensation                                                                | (65.3 | ) |   | 41.0 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (24.3 | ) |
| Loss on disposal of assets                                                              | (2.4 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (2.4 | ) |
| Transaction costs                                                                       | (1.0 | ) |   | — |  |   | — |  |   | — |  |   | 1.0 |  |   | — |  |   | — |  |   | — |  |
| SARs mark-to-market impact on noncontrolling interests                                  | 3.4 |  |   | (3.4 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Change in fair market value of equity securities                                        | 1.2 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (1.2 | ) |   | — |  |   | — |  |
| Payroll taxes on SARs exercise                                                          | (0.2 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 0.2 |  |   | — |  |
| Income from continuing operations before income tax expense                             | 248.4 |  |   | 37.6 |  |   | 2.3 |  |   | — |  |   | 1.0 |  |   | (1.2 | ) |   | 0.2 |  |   | 288.3 |  |
| Provision for income tax expense                                                        | (54.3 | ) |   | (10.2 | ) |   | (0.6 | ) |   | (12.4 | ) |   | (0.3 | ) |   | 0.3 |  |   | — |  |   | (77.5 | ) |
| Income from continuing operations attributable to Encompass Health                      | $ | 194.1 |  |   | $ | 27.4 |  |   | $ | 1.7 |  |   | $ | (12.4 | ) |   | $ | 0.7 |  |   | $ | (0.9 | ) |   | $ | 0.2 |  |   | $ | 210.8 |  |
| Add: Interest, amortization, and loss on extinguishment of convertible debt, net of tax | — |  |   |   |   |   |   |   |   |   |   |   |   |   |   | — |  |
| Numerator for diluted earnings per share                                                | $ | 194.1 |  |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 210.8 |  |
| Diluted earnings per share from continuing operations(2)                                | $ | 1.95 |  |   | $ | 0.28 |  |   | $ | 0.02 |  |   | $ | (0.12 | ) |   | $ | 0.01 |  |   | $ | (0.01 | ) |   | $ | — |  |   | $ | 2.12 |  |
| Diluted shares used in calculation                                                      | 99.5 |  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|           |                                            |
|-----------|--------------------------------------------|
| (1)  | Reconciliation to GAAP provided on page 17 |

|           |                                                  |
|-----------|--------------------------------------------------|
| (2)  | Adjusted EPS may not sum across due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 14 |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    | For the Six Months Ended June 30, 2018 |
|                                                                                    |   |   | Adjustments |   |   |
|                                                                                    | As Reported |   | Mark-to-Market Adjustment for Stock Compensation Expense |   | Income Tax Adjustments |   | Transaction Costs |   | Change in Fair Market Value of Equity Securities |   | As Adjusted |
|                                                                                    | (In Millions, Except Per Share Amounts) |
| Adjusted EBITDA(1)                                                                      | $ | 454.9 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 454.9 |  |
| Depreciation and amortization                                                           | (95.6 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (95.6 | ) |
| Interest expense and amortization of debt discounts and fees                            | (73.3 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (73.3 | ) |
| Stock-based compensation                                                                | (47.5 | ) |   | 22.4 |  |   | — |  |   | — |  |   | — |  |   | (25.1 | ) |
| Loss on disposal of assets                                                              | (3.2 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (3.2 | ) |
| Transaction costs                                                                       | (1.0 | ) |   | — |  |   | — |  |   | 1.0 |  |   | — |  |   | — |  |
| SARs mark-to-market impact on noncontrolling interests                                  | 1.9 |  |   | (1.9 | ) |   | — |  |   | — |  |   | — |  |   | — |  |
| Change in fair market value of equity securities                                        | (1.0 | ) |   | — |  |   | — |  |   | — |  |   | 1.0 |  |   | — |  |
| Income from continuing operations before income tax expense                             | 235.2 |  |   | 20.5 |  |   | — |  |   | 1.0 |  |   | 1.0 |  |   | 257.7 |  |
| Provision for income tax expense                                                        | (59.3 | ) |   | (5.7 | ) |   | (0.7 | ) |   | (0.3 | ) |   | (0.3 | ) |   | (66.3 | ) |
| Income from continuing operations attributable to Encompass Health                      | $ | 175.9 |  |   | $ | 14.8 |  |   | $ | (0.7 | ) |   | $ | 0.7 |  |   | $ | 0.7 |  |   | $ | 191.4 |  |
| Add: Interest, amortization, and loss on extinguishment of convertible debt, net of tax | — |  |   |   |   |   |   |   |   |   |   | — |  |
| Numerator for diluted earnings per share                                                | $ | 175.9 |  |   |   |   |   |   |   |   |   |   | $ | 191.4 |  |
| Diluted earnings per share from continuing operations(2)                                | $ | 1.76 |  |   | $ | 0.15 |  |   | $ | (0.01 | ) |   | $ | 0.01 |  |   | $ | 0.01 |  |   | $ | 1.92 |  |
| Diluted shares used in calculation                                                      | 99.6 |  |   |   |   |   |   |   |   |   |   |   |

|           |                                            |
|-----------|--------------------------------------------|
| (1)  | Reconciliation to GAAP provided on page 17 |

|           |                                                  |
|-----------|--------------------------------------------------|
| (2)  | Adjusted EPS may not sum across due to rounding. |

|        |
|--------|
|        |  |  |
|   |   | 15 |

----

|                                                                                          |
|------------------------------------------------------------------------------------------|
|                                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                     | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                                     | 2019 |   | 2018 |   | 2019 |   | 2018 |
|                                                                                     | (In Millions) |
| Net income                                                                               | $ | 110.9 |  |   | $ | 113.2 |  |   | $ | 236.1 |  |   | $ | 218.4 |  |
| Loss (income) from discontinued operations, net of tax, attributable to Encompass Health | 0.1 |  |   | (0.2 | ) |   | 0.6 |  |   | 0.3 |  |
| Net income attributable to noncontrolling interests                                      | (19.7 | ) |   | (21.4 | ) |   | (42.6 | ) |   | (42.8 | ) |
| Provision for income tax expense                                                         | 23.5 |  |   | 29.3 |  |   | 54.3 |  |   | 59.3 |  |
| Interest expense and amortization of debt discounts and fees                             | 37.7 |  |   | 37.7 |  |   | 74.9 |  |   | 73.3 |  |
| Depreciation and amortization                                                            | 52.7 |  |   | 49.7 |  |   | 105.2 |  |   | 95.6 |  |
| Loss on early extinguishment of debt                                                     | 2.3 |  |   | — |  |   | 2.3 |  |   | — |  |
| Net noncash loss on disposal of assets                                                   | 1.3 |  |   | 2.4 |  |   | 2.4 |  |   | 3.2 |  |
| Stock-based compensation expense                                                         | 45.9 |  |   | 21.4 |  |   | 65.3 |  |   | 47.5 |  |
| Transaction costs                                                                        | 0.4 |  |   | — |  |   | 1.0 |  |   | 1.0 |  |
| SARs mark-to-market impact on noncontrolling interests                                   | (2.6 | ) |   | (0.9 | ) |   | (3.4 | ) |   | (1.9 | ) |
| Change in fair market value of equity securities                                         | (0.3 | ) |   | 0.4 |  |   | (1.2 | ) |   | 1.0 |  |
| Payroll taxes on SARs exercise                                                           | — |  |   | — |  |   | 0.2 |  |   | — |  |
| Adjusted EBITDA                                                                          | $ | 252.2 |  |   | $ | 231.6 |  |   | $ | 495.1 |  |   | $ | 454.9 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Three Months Ended June 30, |   | Six Months Ended June 30, |   | Year Ended December 31, |
|                                                         | 2019 |   | 2018 |   | 2019 |   | 2018 |   | 2018 |
|                                                         | (In Millions) |
| Total segment Adjusted EBITDA                                | $ | 283.0 |  |   | $ | 265.1 |  |   | $ | 559.3 |  |   | $ | 522.4 |  |   | $ | 1,034.3 |  |
| General and administrative expenses                          | (77.1 | ) |   | (54.9 | ) |   | (130.5 | ) |   | (116.0 | ) |   | (220.2 | ) |
| Depreciation and amortization                                | (52.7 | ) |   | (49.7 | ) |   | (105.2 | ) |   | (95.6 | ) |   | (199.7 | ) |
| Loss on disposal of assets                                   | (1.3 | ) |   | (2.4 | ) |   | (2.4 | ) |   | (3.2 | ) |   | (5.7 | ) |
| Government, class action, and related settlements            | — |  |   | — |  |   | — |  |   | — |  |   | (52.0 | ) |
| Loss on early extinguishment of debt                         | (2.3 | ) |   | — |  |   | (2.3 | ) |   | — |  |   | — |  |
| Interest expense and amortization of debt discounts and fees | (37.7 | ) |   | (37.7 | ) |   | (74.9 | ) |   | (73.3 | ) |   | (147.3 | ) |
| Net income attributable to noncontrolling interests          | 19.7 |  |   | 21.4 |  |   | 42.6 |  |   | 42.8 |  |   | 83.1 |  |
| SARs mark-to-market impact on noncontrolling interests       | 2.6 |  |   | 0.9 |  |   | 3.4 |  |   | 1.9 |  |   | 2.6 |  |
| Change in fair market value of equity securities             | 0.3 |  |   | (0.4 | ) |   | 1.2 |  |   | (1.0 | ) |   | (1.9 | ) |
| Payroll taxes on SARs exercise                               | — |  |   | — |  |   | (0.2 | ) |   | — |  |   | — |  |
| Income from continuing operations before income tax expense  | $ | 134.5 |  |   | $ | 142.3 |  |   | $ | 291.0 |  |   | $ | 278.0 |  |   | $ | 493.2 |  |

|        |
|--------|
|        |  |  |
|   |   | 16 |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                         | Three Months Ended June 30, |   | Six Months Ended June 30, |   | Year Ended December 31, |
|                                                                         |   |   |
|                                                                         | 2019 |   | 2018 |   | 2019 |   | 2018 |   | 2018 |
|                                                                         | (In Millions) |
| Net cash provided by operating activities                                    | $ | 145.4 |  |   | $ | 169.2 |  |   | $ | 305.3 |  |   | $ | 385.5 |  |   | $ | 762.4 |  |
| Interest expense and amortization of debt discounts and fees                 | 37.7 |  |   | 37.7 |  |   | 74.9 |  |   | 73.3 |  |   | 147.3 |  |
| Equity in net income of nonconsolidated affiliates                           | 1.8 |  |   | 2.0 |  |   | 4.3 |  |   | 4.3 |  |   | 8.7 |  |
| Net income attributable to noncontrolling interests in continuing operations | (19.7 | ) |   | (21.4 | ) |   | (42.6 | ) |   | (42.8 | ) |   | (83.1 | ) |
| Amortization of debt-related items                                           | (1.0 | ) |   | (1.0 | ) |   | (2.0 | ) |   | (2.0 | ) |   | (4.0 | ) |
| Distributions from nonconsolidated affiliates                                | (2.5 | ) |   | (2.3 | ) |   | (4.6 | ) |   | (3.5 | ) |   | (8.3 | ) |
| Current portion of income tax expense                                        | 25.5 |  |   | 29.9 |  |   | 53.7 |  |   | 62.9 |  |   | 128.0 |  |
| Change in assets and liabilities                                             | 65.2 |  |   | 18.4 |  |   | 101.7 |  |   | (22.3 | ) |   | (46.0 | ) |
| Cash used in (provided by) operating activities of discontinued operations   | 1.5 |  |   | (0.1 | ) |   | 4.5 |  |   | 0.6 |  |   | (0.8 | ) |
| Transaction costs                                                            | 0.4 |  |   | — |  |   | 1.0 |  |   | 1.0 |  |   | 1.0 |  |
| SARs mark-to-market impact on noncontrolling interests                       | (2.6 | ) |   | (0.9 | ) |   | (3.4 | ) |   | (1.9 | ) |   | (2.6 | ) |
| Payroll taxes on SARs exercise                                               | — |  |   | — |  |   | 0.2 |  |   | — |  |   | — |  |
| Change in fair market value of equity securities                             | (0.3 | ) |   | 0.4 |  |   | (1.2 | ) |   | 1.0 |  |   | 1.9 |  |
| Other                                                                        | 0.8 |  |   | (0.3 | ) |   | 3.3 |  |   | (1.2 | ) |   | (3.5 | ) |
| Consolidated Adjusted EBITDA                                                 | $ | 252.2 |  |   | $ | 231.6 |  |   | $ | 495.1 |  |   | $ | 454.9 |  |   | $ | 901.0 |  |

|        |
|--------|
|        |  |  |
|   |   | 17 |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                      | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                      |   |
|                                                                      | 2019 |   | 2018 |   | 2019 |   | 2018 |
|                                                                      | (In Millions) |
| Net cash provided by operating activities                                 | $ | 145.4 |  |   | $ | 169.2 |  |   | $ | 305.3 |  |   | $ | 385.5 |  |
| Impact of discontinued operations                                         | 1.5 |  |   | (0.1 | ) |   | 4.5 |  |   | 0.6 |  |
| Net cash provided by operating activities of continuing operations        | 146.9 |  |   | 169.1 |  |   | 309.8 |  |   | 386.1 |  |
| Capital expenditures for maintenance                                      | (34.5 | ) |   | (36.0 | ) |   | (64.1 | ) |   | (72.1 | ) |
| Distributions paid to noncontrolling interests of consolidated affiliates | (17.0 | ) |   | (19.8 | ) |   | (36.5 | ) |   | (35.2 | ) |
| Items non-indicative of ongoing operations:                               |   |   |   |   |   |   |   |
| Transaction costs and related assumed liabilities                         | 0.4 |  |   | (2.1 | ) |   | 1.0 |  |   | (1.7 | ) |
| Cash paid for SARs exercise                                               | — |  |   | — |  |   | 13.4 |  |   | 4.3 |  |
| Cash paid for government, class action, and related settlements           | 46.4 |  |   | — |  |   | 46.4 |  |   | — |  |
| Adjusted free cash flow                                                   | $ | 142.2 |  |   | $ | 111.2 |  |   | $ | 270.0 |  |   | $ | 281.4 |  |

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