10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-35331

ACADIA HEALTHCARE COMPANY, INC.

(Exact name of registrant as specified in its charter)

Delaware	45-2492228
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

6100 Tower Circle, Suite 1000

Franklin, Tennessee 37067

(Address, including zip code, of registrant’s principal executive offices)

(615) 861-6000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

At November 6, 2018, there were 88,256,115 shares of the registrant’s common stock outstanding.

ACADIA HEALTHCARE COMPANY, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets (Unaudited) at September 30, 2018 and December 31, 2017	1
	Condensed Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 2018 and 2017	2
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2018 and 2017	3
	Condensed Consolidated Statement of Equity (Unaudited) for the Nine Months Ended September 30, 2018	4
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2018 and 2017	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.	Controls and Procedures	44
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 6.	Exhibits	46
SIGNATURES		47

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Acadia Healthcare Company, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

	September 30, 2018			December 31, 2017
	(In thousands, except share and per share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	48,928		$	67,290
Accounts receivable, net		345,659			296,925
Other current assets		96,146			107,335
Total current assets		490,733			471,550
Property and equipment, net		3,126,642			3,048,130
Goodwill		2,729,941			2,751,174
Intangible assets, net		91,259			87,348
Deferred tax assets		3,630			3,731
Derivative instrument assets		33,084			12,997
Other assets		54,295			49,572
Total assets	$	6,529,584		$	6,424,502
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	33,264		$	34,830
Accounts payable		133,914			102,299
Accrued salaries and benefits		109,151			99,047
Other accrued liabilities		114,414			141,213
Total current liabilities		390,743			377,389
Long-term debt		3,181,962			3,205,058
Deferred tax liabilities		82,269			80,333
Other liabilities		165,663			166,434
Total liabilities		3,820,637			3,829,214
Redeemable noncontrolling interests		28,698			22,417
Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized, no shares issued		—			—
Common stock, $0.01 par value; 180,000,000 shares authorized; 87,363,357    and 87,060,114 issued and outstanding atSeptember 30, 2018 and December 31, 2017, respectively		874			871
Additional paid-in capital		2,535,377			2,517,545
Accumulated other comprehensive loss		(440,462	)		(374,118	)
Retained earnings		584,460			428,573
Total equity		2,680,249			2,572,871
Total liabilities and equity	$	6,529,584		$	6,424,502

See accompanying notes.

1

Acadia Healthcare Company, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In thousands, except per share amounts)
Revenue before provision for doubtful accounts	$	760,916		$	728,712		$	2,268,895		$	2,143,696
Provision for doubtful accounts		—			(11,998	)		—			(31,892	)
Revenue		760,916			716,714			2,268,895			2,111,804
Salaries, wages and benefits (including equity-based compensation expense of $5,225, $4,175, $19,273 and $19,007, respectively)		417,917			385,562			1,246,186			1,145,578
Professional fees		59,509			53,042			166,988			142,772
Supplies		29,461			28,652			88,958			85,000
Rents and leases		19,866			19,049			60,390			57,455
Other operating expenses		90,464			82,328			265,977			249,161
Depreciation and amortization		39,659			36,442			119,360			105,256
Interest expense, net		46,651			44,515			137,706			130,777
Debt extinguishment costs		—			—			940			810
Transaction-related expenses		2,353			5,665			10,008			18,836
Total expenses		705,880			655,255			2,096,513			1,935,645
Income before income taxes		55,036			61,459			172,382			176,159
Provision for income taxes		8,757			15,970			16,339			46,259
Net income		46,279			45,489			156,043			129,900
Net (income) loss attributable to noncontrolling interests		(47	)		129			(156	)		306
Net income attributable to Acadia Healthcare Company, Inc.	$	46,232		$	45,618		$	155,887		$	130,206
Earnings per share attributable to Acadia Healthcare Company, Inc. stockholders:
Basic	$	0.53		$	0.52		$	1.79		$	1.50
Diluted	$	0.53		$	0.52		$	1.78		$	1.50
Weighted-average shares outstanding:
Basic		87,344			87,017			87,233			86,912
Diluted		87,537			87,172			87,386			87,038

See accompanying notes.

2

Acadia Healthcare Company, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In thousands)
Net income	$	46,279		$	45,489		$	156,043		$	129,900
Other comprehensive (loss) income:
Foreign currency translation (loss) gain		(31,959	)		69,622			(82,778	)		188,744
Gain (loss) on derivative instruments, net of tax of $2.4 million, $(6.7) million, $5.6 million and $(18.8) million, respectively		7,380			(9,402	)		16,434			(24,354	)
Other comprehensive (loss) income		(24,579	)		60,220			(66,344	)		164,390
Comprehensive income		21,700			105,709			89,699			294,290
Comprehensive (gain) loss attributable to noncontrolling interests		(47	)		129			(156	)		306
Comprehensive income attributable to Acadia Healthcare Company, Inc.	$	21,653		$	105,838		$	89,543		$	294,596

See accompanying notes.

3

Acadia Healthcare Company, Inc.

Condensed Consolidated Statement of Equity

(Unaudited)

(In thousands)

	Common Stock				Additional Paid-in			Accumulated Other Comprehensive			Retained
	Shares		Amount		Capital			Loss			Earnings		Total
Balance at December 31, 2017		87,060	$	871	$	2,517,545		$	(374,118	)	$	428,573	$	2,572,871
Common stock issued under stock incentive plans		303		3		241			—			—		244
Common stock withheld for minimum statutory    taxes		—		—		(2,516	)		—			—		(2,516	)
Equity-based compensation expense		—		—		19,273			—			—		19,273
Other comprehensive loss		—		—		—			(66,344	)		—		(66,344	)
Other		—		—		834			—			—		834
Net income attributable to Acadia Healthcare    Company, Inc.		—		—		—			—			155,887		155,887
Balance at September 30, 2018		87,363	$	874	$	2,535,377		$	(440,462	)	$	584,460	$	2,680,249

See accompanying notes.

4

Acadia Healthcare Company, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
	2018			2017
	(In thousands)
Operating activities:
Net income	$	156,043		$	129,900
Adjustments to reconcile net income to net cash provided by continuing operating    activities:
Depreciation and amortization		119,360			105,256
Amortization of debt issuance costs		7,763			7,340
Equity-based compensation expense		19,273			19,007
Deferred income taxes		(1,738	)		29,416
Debt extinguishment costs		940			810
Other		3,025			10,672
Change in operating assets and liabilities:
Accounts receivable, net		(43,252	)		(28,681	)
Other current assets		3,021			26,099
Other assets		3,868			(566	)
Accounts payable and other accrued liabilities		9,230			(26,381	)
Accrued salaries and benefits		11,049			(7,937	)
Other liabilities		149			7,677
Net cash provided by continuing operating activities		288,731			272,612
Net cash used in discontinued operating activities		(2,548	)		(1,261	)
Net cash provided by operating activities		286,183			271,351
Investing activities:
Cash paid for capital expenditures		(249,989	)		(193,817	)
Cash paid for real estate acquisitions		(9,391	)		(33,297	)
Other		(3,114	)		(6,062	)
Net cash used in investing activities		(262,494	)		(233,176	)
Financing activities:
Principal payments on long-term debt		(31,492	)		(25,913	)
Common stock withheld for minimum statutory taxes, net		(2,272	)		(3,278	)
Other		(6,973	)		1,649
Net cash used in financing activities		(40,737	)		(27,542	)
Effect of exchange rate changes on cash		(1,314	)		7,965
Net (decrease) increase in cash and cash equivalents		(18,362	)		18,598
Cash and cash equivalents at beginning of the period		67,290			57,063
Cash and cash equivalents at end of the period	$	48,928		$	75,661

See accompanying notes.

5

Acadia Healthcare Company, Inc.

Notes to Condensed Consolidated Financial Statements

September 30, 2018

(Unaudited)

1. Description of Business and Basis of Presentation

Description of Business

Acadia Healthcare Company, Inc. (the “Company”) develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities and facilities providing outpatient behavioral healthcare services to serve the behavioral health and recovery needs of communities throughout the United States (“U.S.”), the United Kingdom (“U.K.”) and Puerto Rico. At September 30, 2018, the Company operated 586 behavioral healthcare facilities with approximately 18,000 beds in 40 states, the U.K. and Puerto Rico.

Basis of Presentation

The business of the Company is conducted through limited liability companies, partnerships and C-corporations. The Company’s consolidated financial statements include the accounts of the Company and all subsidiaries controlled by the Company through its’ direct or indirect ownership of majority interests and exclusive rights granted to the Company as the controlling member of an entity. All intercompany accounts and transactions have been eliminated in consolidation.

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation of our financial position and results of operations have been included. The Company’s fiscal year ends on December 31 and interim results are not necessarily indicative of results for a full year or any other interim period. The condensed consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements as of that date. The information contained in these condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2018. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Certain reclassifications have been made to prior years to conform to the current year presentation.

2. Recently Issued Accounting Standards

In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). ASU 2017-12 amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in the financial statements and simplifies the application of hedge accounting in certain situations. ASU 2017-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. Management is evaluating the impact of ASU 2017-12 on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, “Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 simplifies the measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill (step 2 of the current impairment test) to measure the goodwill impairment charge. Instead, entities will record impairment charges based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company has elected to early adopt ASU 2017-04 on January 1, 2018, and there was no significant impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 addresses treatment of how certain cash receipts and cash payments are presented and classified in the statement of cash flows to reduce the diversity in practice. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted ASU 2016-15 on January 1, 2018. There is no significant impact on the Company’s consolidated financial statements.

6

In March 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02’s core principle is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Additionally, ASU 2016-02 would permit both public and nonpublic organizations to adopt the new standard early. Management believes the primary effect of adopting the new standard will be to record right-of-use assets and obligations for current operating leases.Management is continuing to evaluate the impact ASU 2016-02 will have on the Company’s consolidated financial statements, internal controls, policies and procedures.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 amends how entities recognize, measure, present and disclose certain financial assets and financial liabilities. It requires entities to measure equity investments (except for those accounted for under equity method) at fair value and recognize any changes in fair value in net income. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted ASU 2016-01 on January 1, 2018. There was no significant impact on the Company’s consolidated financial statements.

In May 2014, the FASB and the International Accounting Standards Board issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted ASU 2014-09 on January 1, 2018 as described in Note 3 – Revenue. 

3. Revenue

ASU 2014-09 requires companies to exercise more judgment and recognize revenue using a five-step process. The Company adopted ASU 2014-09 using the modified retrospective method for all contracts effective January 1, 2018 and is using a portfolio approach to group contracts with similar characteristics and analyze historical cash collections trends. Modified retrospective adoption requires entities to apply the standard retrospectively to the most current period presented in the financial statements, requiring the cumulative effect of the retrospective application as an adjustment to the opening balance of retained earnings at the date of initial application. Prior periods have not been adjusted. No cumulative-effect adjustment in retained earnings was recorded as the adoption of ASU 2014-09 did not significantly impact the Company’s reported historical revenue.

As a result of certain changes required by ASU 2014-09, the majority of the Company’s provision for doubtful accounts are recorded as a direct reduction to revenue instead of being presented as a separate line item on the condensed consolidated statements of income. The adoption of ASU 2014-09 has no impact on the Company’s accounts receivable as it was historically recorded net of allowance for doubtful accounts and contractual adjustments, and the Company has eliminated the presentation of allowance for doubtful accounts on the condensed consolidated balance sheets. The adoption of ASU 2014-09 did not have a significant impact on the Company’s condensed consolidated statements of income. The impact of adopting ASU 2014-09 on the condensed consolidated statements of income for the three and nine months ended September 30, 2018 was as follows (in thousands):

	Three Months Ended September 30, 2018					Nine Months Ended September 30, 2018
	As Reported		Prior to Adopting ASU 2014-09			As Reported		Prior to Adopting ASU 2014-09
Revenue before provision for doubtful accounts	$	760,916	$	772,380		$	2,268,895	$	2,298,084
Provision for doubtful accounts		—		(11,464	)		—		(29,189	)
Revenue	$	760,916	$	760,916		$	2,268,895	$	2,268,895

The Company evaluated the nature, amount, timing and uncertainty of revenue and cash flows using the five-step process provided within ASU 2014-09.

Revenue is primarily derived from services rendered to patients for inpatient psychiatric and substance abuse care, outpatient psychiatric care and adolescent residential treatment. The services provided by the Company have no fixed duration and can be terminated by the patient or the facility at any time, and therefore, each treatment is its own stand-alone contract.

7

Services ordered by a healthcare provider in an episode of care are not separately identifiable and therefore have been combined into a single performance obligation for each contract. The Company recognizes revenue as its performance obligations are completed. The performance obligation is satisfied over time as the customer simultaneously receives and consumes the benefits ofthe healthcare services provided. For inpatient services, the Company recognizes revenue equally over the patient stay on a daily basis. For outpatient services, the Company recognizes revenue equally over the number of treatments provided in a single episode of care. Typically, patients and third-party payors are billed within several days of the service being performed or the patient being discharged, and payments are due based on contract terms.

As our performance obligations relate to contracts with a duration of one year or less, the Company elected the optional exemption in ASC 606-10-50-14(a). Therefore, the Company is not required to disclose the transaction price for the remaining performance obligations at the end of the reporting period or when the Company expects to recognize the revenue. The Company has minimal unsatisfied performance obligations at the end of the reporting period as our patients typically are under no obligation to remain admitted in our facilities.

The Company disaggregates revenue from contracts with customers by service type and by payor within each of the Company’s segments.

U.S. Facilities

The Company’s facilities in the United States (the “U.S. Facilities”) and services provided by the U.S. Facilities can generally be classified into the following categories: acute inpatient psychiatric facilities; specialty treatment facilities; residential treatment centers; and outpatient community-based services.

Acute inpatient psychiatric facilities. Acute inpatient psychiatric facilities provide a high level of care in order to stabilize patients that are either a threat to themselves or to others. The acute setting provides 24-hour observation, daily intervention and monitoring by psychiatrists.

Specialty treatment facilities. Specialty treatment facilities include residential recovery facilities, eating disorder facilities and comprehensive treatment centers. The Company provides a comprehensive continuum of care for adults with addictive disorders and co-occurring mental disorders. Inpatient, including detoxification and rehabilitation, partial hospitalization and outpatient treatment programs give patients access to the least restrictive level of care.

Residential treatment centers. Residential treatment centers treat patients with behavioral disorders in a non-hospital setting, including outdoor programs. The facilities balance therapy activities with social, academic and other activities.

Outpatient community-based services. Outpatient community-based programs are designed to provide therapeutic treatment to children and adolescents who have a clinically-defined emotional, psychiatric or chemical dependency disorder while enabling the youth to remain at home and within their community.

The table below presents total U.S. revenue attributed to each category (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Acute inpatient psychiatric facilities	$	208,885	$	187,497	$	608,311	$	566,173
Specialty treatment facilities		198,107		183,290		575,536		543,079
Residential treatment centers		72,351		72,677		218,041		213,300
Outpatient community-based services		9,283		10,214		30,613		32,763
Revenue	$	488,626	$	453,678	$	1,432,501	$	1,355,315

The Company receives payments from the following sources for services rendered in our U.S. Facilities: (i) state governments under their respective Medicaid and other programs; (ii) commercial insurers; (iii) the federal government under the Medicare program administered by the Centers for Medicare and Medicaid Services (“CMS”); and (iv) individual patients and clients. As the period between the time of service and time of payment is typically one year or less, the Company elected the practical expedient under ASC 606-10-32-18 and did not adjust for the effects of a significant financing component.

8

The Company determines the transaction price based on established billing rates reduced by contractual adjustments provided to third-party payors, discounts provided to uninsured patients and implicit price concessions. Contractual adjustments and discounts are based on contractual agreements, discount policies and historical experience. Implicit price concessions are based on historical collection experience. Most of our U.S. Facilities have contracts containing variable consideration. However, it is unlikely a significant reversal of revenue will occur when the uncertainty is resolved, and therefore, the Company has included the variable consideration in the estimated transaction price. Subsequent changes resulting from a patient’s ability to pay are recorded as bad debt expense, which is included as a component of other operating expenses in the condensed consolidating statements of income. Bad debt expense for the three and nine months ended September 30, 2018was not significant.

The Company derives a significant portion of its revenue from Medicare, Medicaid and other payors that receive discounts from established billing rates. The Medicare and Medicaid regulations and various managed care contracts under which these discounts must be calculated are complex, subject to interpretation and adjustment, and may include multiple reimbursement mechanisms for different types of services provided in the Company’s inpatient facilities and cost settlement provisions. Management estimates the transaction price on a payor-specific basis given its interpretation of the applicable regulations or contract terms. The services authorized and provided and related reimbursement are often subject to interpretation that could result in payments that differ from the Company’s estimates. Additionally, updated regulations and contract renegotiations occur frequently, necessitating regular review and assessment of the estimation process by management.

Settlements under cost reimbursement agreements with third-party payors are estimated and recorded in the period in which the related services are rendered and are adjusted in future periods as final settlements are determined. Final determination of amounts earned under the Medicare and Medicaid programs often occurs in subsequent years because of audits by such programs, rights of appeal and the application of numerous technical provisions. In the opinion of management, adequate provision has been made for any adjustments and final settlements. However, there can be no assurance that any such adjustments and final settlements will not have a material effect on the Company’s financial condition or results of operations. The Company’s cost report receivables were $10.9 million at both September 30, 2018 and December 31, 2017, respectively, and were included in other current assets in the condensed consolidated balance sheets. Management believes that these receivables are properly stated and are not likely to be settled for a significantly different amount. The net adjustments to estimated cost report settlements were not significant for the three and nine months ended September 30, 2018.

Management believes that we comply in all material respects with applicable laws and regulations and is not aware of any material pending or threatened investigations involving allegations of wrongdoing. Compliance with such laws and regulations can be subject to future government review and interpretation, as well as significant regulatory action including fines, penalties and exclusion from the Medicare and Medicaid programs.

The Company provides care without charge to patients who are financially unable to pay for the healthcare services they receive based on Company policies and federal and state poverty thresholds. Such amounts determined to qualify as charity care are not reported as revenue. The cost of providing charity care services were $1.0 million and $1.3 million for the three months ended September 30, 2018 and 2017, respectively. The cost of providing charity care services were $3.8 million and $4.2 million for the nine months ended September 30, 2018 and 2017, respectively. The estimated cost of charity care services was determined using a ratio of cost to gross charges determined from our most recently filed Medicare cost reports and applying that ratio to the gross charges associated with providing charity care for the period.

The following table presents revenue generated by each payor type (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
Commercial	$	146,439	$	142,870		$	431,337	$	431,818
Medicare		73,528		73,593			210,307		212,992
Medicaid		229,390		199,592			668,236		587,705
Self-Pay		33,559		43,685			103,845		130,928
Other		5,710		5,936			18,776		23,758
Revenue before provision for doubtful accounts		488,626		465,676			1,432,501		1,387,201
Provision for doubtful accounts		—		(11,998	)		—		(31,886	)
Revenue	$	488,626	$	453,678		$	1,432,501	$	1,355,315

9

U.K. Facilities

The Company’s facilities located in the United Kingdom (the “U.K. Facilities”) and services provided by the U.K. Facilities can generally be classified into the following categories: healthcare facilities, education and children’s services, adult care facilities and elderly care facilities.

Healthcare facilities. Healthcare facilities provide psychiatric treatment and nursing for sufferers of mental disorders, including for patients whose risk of harm to others and risk of escape from hospitals cannot be managed safely within other mental health settings. In order to manage the risks involved with treating patients, the facility is managed through the application of a range of security measures depending on the level of dependency and risk exhibited by the patient.

Education and children’s services. Education and children’s services provide specialist education for children and young people with special educational needs, including autism, Asperger’s Syndrome, social, emotional and mental health, and specific learning difficulties, such as dyslexia. The division also offers standalone children’s homes for children that require 52-week residential care to support complex and challenging behavior and fostering services.

Adult care facilities. Adult care focuses on care of individuals with a variety of learning difficulties, mental health illnesses and adult autism spectrum disorders. It also includes long-term, short-term and respite nursing care to high-dependency elderly individuals who are physically frail or suffering from dementia. Care is provided in a number of settings, including in residential care homes and through supported living.

The table below presents total U.K. revenue attributed to each category (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Healthcare facilities	$	150,871	$	146,264	$	464,731	$	419,549
Education and Children’s Services		46,966		42,441		145,609		124,337
Adult Care facilities		74,453		74,331		226,054		212,603
Revenue	$	272,290	$	263,036	$	836,394	$	756,489

The Company receives payments from approximately 500 public funded sources in the U.K. (including the National Health Service (“NHS”), Clinical Commissioning Groups (“CCGs”) and local authorities in England, Scotland and Wales) and individual patients and clients. The Company determines the transaction price based on established billing rates by payor and is reduced by implicit price concessions. Implicit price concessions are insignificant in our U.K. Facilities. There is no significant variable consideration in our U.K. Facilities’ contracts. As the period between the time of service and time of payment is typically one year or less, the Company elected the practical expedient under ASC 606-10-32-18 and did not adjust for the effects of a significant financing component.

The following table presents revenue generated by each payor type (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
U.K. public funded sources	$	245,919	$	236,778	$	756,094	$	678,623
Self-Pay		26,159		24,572		78,499		70,662
Other		212		1,686		1,801		7,210
Revenue before provision for doubtful accounts		272,290		263,036		836,394		756,495
Provision for doubtful accounts		—		—		—		(6	)
Revenue	$	272,290	$	263,036	$	836,394	$	756,489

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The Company’s contract liabilities primarily consist of unearned revenue in our U.K. Facilities due to the timing of payments received mainly in our education and children’s services and healthcare facilities.Contract liabilities are included in other accrued liabilities on the condensed consolidated balance sheets. A summary of the activity in unearned revenue in the U.K. Facilities is as follows (in thousands):

Balance at December 31, 2017	$	30,812
Payments received		126,506
Revenue recognized		(124,894	)
Foreign currency translation loss		(1,687	)
Balance at September 30, 2018	$	30,737

4. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator:
Net income attributable to Acadia Healthcare    Company, Inc.	$	46,232	$	45,618	$	155,887	$	130,206
Denominator:
Weighted average shares outstanding for basic    earnings per share		87,344		87,017		87,233		86,912
Effect of dilutive instruments		193		155		153		126
Shares used in computing diluted earnings per    common share		87,537		87,172		87,386		87,038
Earnings per share attributable to Acadia Healthcare    Company, Inc. stockholders:
Basic	$	0.53	$	0.52	$	1.79	$	1.50
Diluted	$	0.53	$	0.52	$	1.78	$	1.50

Approximately 1.6 million and 1.0 million shares of common stock issuable upon exercise of outstanding stock option awards were excluded from the calculation of diluted earnings per share for the three months ended September 30, 2018 and 2017, respectively, because their effect would have been anti-dilutive. Approximately 1.9 million and 1.5 million shares of common stock issuable upon exercise of outstanding stock option awards were excluded from the calculation of diluted earnings per share for the nine months ended September 30, 2018 and 2017, respectively, because their effect would have been anti-dilutive.

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5. Other Intangible Assets

Other identifiable intangible assets and related accumulated amortization consisted of the following at September 30, 2018 and December 31, 2017 (in thousands):

	Gross Carrying Amount				Accumulated Amortization
	September 30, 2018		December 31, 2017		September 30, 2018			December 31, 2017
Intangible assets subject to amortization:
Contract intangible assets	$	2,100	$	2,100	$	(2,100	)	$	(2,100	)
Non-compete agreements		1,147		1,147		(1,147	)		(1,147	)
		3,247		3,247		(3,247	)		(3,247	)
Intangible assets not subject to amortization:
Licenses and accreditations		12,766		12,266		—			—
Trade names		61,675		60,586		—			—
Certificates of need		16,818		14,496		—			—
		91,259		87,348		—			—
Total	$	94,506	$	90,595	$	(3,247	)	$	(3,247	)

All the Company’s defined-lived intangible assets are fully amortized. The Company’s licenses and accreditations, trade names and certificate of need intangible assets have indefinite lives and are, therefore, not subject to amortization.

6. Property and Equipment

Property and equipment consists of the following at September 30, 2018 and December 31, 2017 (in thousands):

	September 30, 2018			December 31, 2017
Land	$	444,579		$	450,342
Building and improvements		2,443,980			2,370,918
Equipment		434,205			400,596
Construction in progress		249,001			173,693
		3,571,765			3,395,549
Less accumulated depreciation		(445,123	)		(347,419	)
Property and equipment, net	$	3,126,642		$	3,048,130

7. Long-Term Debt

Long-term debt consisted of the following (in thousands):

	September 30, 2018			December 31, 2017
Amended and Restated Senior Credit Facility:
Senior Secured Term A Loans	$	370,500		$	380,000
Senior Secured Term B Loans		1,376,408			1,398,400
Senior Secured Revolving Line of Credit		—			—
6.125% Senior Notes due 2021		150,000			150,000
5.125% Senior Notes due 2022		300,000			300,000
5.625% Senior Notes due 2023		650,000			650,000
6.500% Senior Notes due 2024		390,000			390,000
9.0% and 9.5% Revenue Bonds		21,920			21,920
Less: unamortized debt issuance costs, discount and    premium		(43,602	)		(50,432	)
		3,215,226			3,239,888
Less: current portion		(33,264	)		(34,830	)
Long-term debt	$	3,181,962		$	3,205,058

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Amended and Restated Senior Credit Facility

The Company entered into a senior secured credit facility (the “Senior Secured Credit Facility”) on April 1, 2011. On December 31, 2012, the Company entered into an Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) which amended and restated the Senior Secured Credit Facility (the “Amended and Restated Senior Credit Facility”). The Company has amended the Amended and Restated Credit Agreement from time to time as described in the Company’s prior filings with the SEC.

On May 10, 2017, the Company entered into a Third Repricing Amendment (the “Third Repricing Amendment”) to the Amended and Restated Credit Agreement. The Third Repricing Amendment reduced the Applicable Rate with respect to the Term Loan B facility Tranche B-1 (the “Tranche B-1 Facility”) and the Term Loan B facility Tranche B-2 (the “Tranche B-2 Facility”) from 3.00% to 2.75% in the case of Eurodollar Rate loans and from 2.00% to 1.75% in the case of Base Rate Loans. In connection with the Third Repricing Amendment, the Company recorded a debt extinguishment charge of $0.8 million, including the discount and write-off of deferred financing costs, which was recorded in debt extinguishment costs in the condensed consolidated statements of income.

On March 22, 2018, the Company entered into a Second Repricing Facilities Amendment (the “Second Repricing Facilities Amendment”) to the Amended and Restated Credit Agreement. The Second Repricing Facilities Amendment (i) replaced the Tranche B-1 Facility and the Tranche B-2 Facility with a new Term Loan B facility Tranche B-3 (the “Tranche B-3 Facility”) and a new Term Loan B facility Tranche B-4 (the “Tranche B-4 Facility”), respectively, and (ii) reduced the Applicable Rate from 2.75% to 2.50% in the case of Eurodollar Rate loans and reduced the Applicable Rate from 1.75% to 1.50% in the case of Base Rate Loans.

On March 29, 2018, the Company entered into a Third Repricing Facilities Amendment to the Amended and Restated Credit Agreement (the “Third Repricing Facilities Amendment”, and together with the Second Repricing Facilities Amendment, the “Repricing Facilities Amendments”). The Third Repricing Facilities Amendment replaced the existing revolving credit facility and Term Loan A facility (“TLA Facility”) with a new revolving credit facility and TLA Facility, respectively. The Company’s line ofcredit on its revolving credit facility remains at $500.0 million and the Third Repricing Facility Amendment reduced the size of the TLA Facility from $400.0 million to $380.0 million to reflect the then current outstanding principal. The Third Repricing Facilities Amendment reduced the Applicable Rate by 25 basis points for the revolving credit facility and the TLA Facility by amending the definition of “Applicable Rate.”

In connection with the Repricing Facilities Amendments, the Company recorded a debt extinguishment charge of $0.9 million, including the discount and write-off of deferred financing costs, which was recorded in debt extinguishment costs in the condensed consolidated statements of income.

The Company had $494.1 million of availability under the revolving line of credit and had standby letters of credit outstanding of $5.9 million related to security for the payment of claims required by its workers’ compensation insurance program at September 30, 2018. Borrowings under the revolving line of credit are subject to customary conditions precedent to borrowing. The Amended and Restated Credit Agreement requires quarterly term loan principal repayments of our TLA Facility of $4.8 million for December 31, 2018 to December 31, 2019, $7.1 million for March 31, 2020 to December 31, 2020, and $9.5 million for March 31, 2021 to September 30, 2021, with the remaining principal balance of the TLA Facility due on the maturity date of November 30, 2021. The Company is required to repay the Tranche B-3 Facility in equal quarterly installments of $1.2 million on the last business day of each March, June, September and December, with the outstanding principal balance of the Tranche B-3 Facility due on February 11, 2022. The Company is required to repay the Tranche B-4 Facility in equal quarterly installments of approximately $2.3 million on the last business day of each March, June, September and December, with the outstanding principal balance of the Tranche B-4 Facility due on February 16, 2023. On December 29, 2017, the Company made an additional payment of $22.5 million, including $7.7 million on the Tranche B-1 Facility and $14.8 million on the Tranche B-2 Facility. On April 17, 2018, the Company made an additional payment of $15.0 million, including $5.1 million on the Tranche B-3 Facility and $9.9 million on the Tranche B-4 Facility.

Borrowings under the Amended and Restated Senior Credit Facility are guaranteed by each of the Company’s wholly-owned domestic subsidiaries (other than certain excluded subsidiaries) and are secured by a lien on substantially all of the assets of the Company and such subsidiaries. Borrowings with respect to the TLA Facility and the Company’s revolving credit facility (collectively, “Pro Rata Facilities”) under the Amended and Restated Credit Agreement bear interest at a rate tied to Acadia’s Consolidated Leverage Ratio (defined as consolidated funded debt net of up to $40.0 million of unrestricted and unencumbered cash to consolidated EBITDA, in each case as defined in the Amended and Restated Credit Agreement). The Applicable Rate (as defined in the Amended and Restated Credit Agreement) for the Pro Rata Facilities was 2.50% for Eurodollar Rate Loans (as defined in the Amended and Restated Credit Agreement) and 1.50% for Base Rate Loans (as defined in the Amended and Restated Credit Agreement) at September 30, 2018. Eurodollar Rate Loans with respect to the Pro Rata Facilities bear interest at the Applicable Rate

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plus the Eurodollar Rate (as defined in the Amended and Restated Credit Agreement) (based upon the LIBOR Rate (as defined in the Amended and Restated Credit Agreement) prior to commencement of the interest rate period). Base Rate Loans with respect to the Pro Rata Facilities bear interest at the Applicable Rate plus the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the Eurodollar Rate plus 1.00%. At September 30, 2018, the Pro Rata Facilities bore interest at a rate of LIBOR plus 2.50%. In addition, the Company is required to pay a commitment fee on undrawn amounts under the revolving line of credit.

The Amended and Restated Credit Agreement requires the Company and its subsidiaries to comply with customary affirmative, negative and financial covenants, including a fixed charge coverage ratio, consolidated leverage ratio and senior secured leverage ratio. The Company may be required to pay all of its indebtedness immediately if it defaults on any of the numerous financial or other restrictive covenants contained in any of its material debt agreements. At September 30, 2018, the Company was in compliance with such covenants.

Senior Notes

6.125% Senior Notes due 2021

On March 12, 2013, the Company issued $150.0 million of 6.125% Senior Notes due 2021 (the “6.125% Senior Notes”). The 6.125% Senior Notes mature on March 15, 2021 and bear interest at a rate of 6.125% per annum, payable semi-annually in arrears on March 15 and September 15 of each year.

5.125% Senior Notes due 2022

On July 1, 2014, the Company issued $300.0 million of 5.125% Senior Notes due 2022 (the “5.125% Senior Notes”). The 5.125% Senior Notes mature on July 1, 2022 and bear interest at a rate of 5.125% per annum, payable semi-annually in arrears on January 1 and July 1 of each year.

5.625% Senior Notes due 2023

On February 11, 2015, the Company issued $375.0 million of 5.625% Senior Notes due 2023 (the “5.625% Senior Notes”). On September 21, 2015, the Company issued $275.0 million of additional 5.625% Senior Notes. The additional notes formed a single class of debt securities with the 5.625% Senior Notes issued in February 2015. Giving effect to this issuance, the Company has outstanding an aggregate of $650.0 million of 5.625% Senior Notes. The 5.625% Senior Notes mature on February 15, 2023 and bear interest at a rate of 5.625% per annum, payable semi-annually in arrears on February 15 and August 15 of each year.

6.500% Senior Notes due 2024

On February 16, 2016, the Company issued $390.0 million of 6.500% Senior Notes due 2024 (the “6.500% Senior Notes”). The 6.500% Senior Notes mature on March 1, 2024 and bear interest at a rate of 6.500% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2016.

The indentures governing the 6.125% Senior Notes, 5.125% Senior Notes, 5.625% Senior Notes and 6.500% Senior Notes (together, the “Senior Notes”) contain covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to: (i) pay dividends, redeem stock or make other distributions or investments; (ii) incur additional debt or issue certain preferred stock; (iii) transfer or sell assets; (iv) engage in certain transactions with affiliates; (v) create restrictions on dividends or other payments by the restricted subsidiaries; (vi) merge, consolidate or sell substantially all of the Company’s assets; and (vii) create liens on assets.

The Senior Notes issued by the Company are guaranteed by each of the Company’s subsidiaries that guarantee the Company’s obligations under the Amended and Restated Senior Credit Facility. The guarantees are full and unconditional and joint and several.

The Company may redeem the Senior Notes at its option, in whole or part, at the dates and amounts set forth in the indentures.

9.0% and 9.5% Revenue Bonds

On November 11, 2012, in connection with the acquisition of The Pavilion at HealthPark, LLC (“Park Royal”), the Company assumed debt of $23.0 million. The fair market value of the debt assumed was $25.6 million and resulted in a debt premium balance being recorded as of the acquisition date. The debt consisted of $7.5 million and $15.5 million of Lee County (Florida) Industrial Development Authority Healthcare Facilities Revenue Bonds, Series 2010 with stated interest rates of 9.0% and 9.5% (“9.0% and

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9.5% Revenue Bonds”), respectively. The 9.0% bonds in the amount of $7.5 million have a maturity date of December 1, 2030 and require yearly principal payments beginning in 2013. The 9.5% bonds in the amount of $15.5 million have a maturity date of December 1, 2040 and require yearly principal payments beginning in 2031. The principal payments establish a bond sinking fund to be held with the trustee and shall be sufficient to redeem the principal amounts of the 9.0% and 9.5% Revenue Bonds on their respective maturity dates. At September 30, 2018 and December 31, 2017, $2.3 million was recorded within other assets on the condensed consolidated balance sheets related to the debt service reserve fund requirements. The yearly principal payments, which establish a bond sinking fund, will increase the debt service reserve fund requirements. The bond premium amount of $2.6 million is amortized as a reduction of interest expense over the life of the revenue bonds using the effective interest method.

8. Equity-Based Compensation

Equity Incentive Plans

The Company issues stock-based awards, including stock options, restricted stock and restricted stock units, to certain officers, employees and non-employee directors under the Acadia Healthcare Company, Inc. Incentive Compensation Plan (the “Equity Incentive Plan”). At September 30, 2018, a maximum of 8,200,000 shares of the Company’s common stock were authorized for issuance as stock options, restricted stock and restricted stock units or other share-based compensation under the Equity Incentive Plan, of which 3,233,738 were available for future grant. Stock options may be granted for terms of up to ten years. The Company recognizes expense on all share-based awards on a straight-line basis over the requisite service period of the entire award. Grants to employees generally vest in annual increments of 25% each year, commencing one year after the date of grant. The exercise prices of stock options are equal to the most recent closing price of the Company’s common stock on the date of grant.

The Company recognized $5.2 million and $4.2 million in equity-based compensation expense for the three months ended September 30, 2018 and 2017, respectively, and $19.3 million and $19.0 million for the nine months ended September 30, 2018 and 2017. At September 30, 2018, there was $47.8 million of unrecognized compensation expense related to unvested options, restricted stock and restricted stock units, which is expected to be recognized over the remaining weighted average vesting period of 1.2 years.

At September 30, 2018, there were no warrants outstanding. The Company recognized a deferred income tax benefit of $1.4 million and $1.5 million for the three months ended September 30, 2018 and 2017, respectively, related to equity-based compensation expense. The Company recognized a deferred income tax benefit of $5.2 million and $7.3 million for the nine months ended September 30, 2018 and 2017, respectively, related to equity-based compensation expense.

Stock Options

Stock option activity during 2017 and 2018 was as follows (aggregate intrinsic value in thousands):

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Options outstanding at January 1, 2017		1,000,946		$	49.42		7.80	$	8,166
Options granted		259,300			42.25		9.30		205
Options exercised		(87,367	)		25.92	N/A			1,636
Options cancelled		(198,313	)		54.71	N/A		N/A
Options outstanding at December 31, 2017		974,566			47.89		7.46		3,802
Options granted		353,800			37.36		9.42		475
Options exercised		(9,889	)		24.67	N/A			165
Options cancelled		(102,787	)		51.23	N/A		N/A
Options outstanding at September 30, 2018		1,215,690		$	44.69		7.43	$	3,536
Options exercisable at December 31, 2017		405,634		$	41.20		6.05	$	3,549
Options exercisable at September 30, 2018		543,139		$	44.65		5.87	$	2,835

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Fair values are estimated using the Black-Scholes option pricing model. The following table summarizes the grant-date fair value of options and the assumptions used to develop the fair value estimates for options granted during thenine months ended September 30, 2018 and year endedDecember 31, 2017:

	September 30, 2018			December 31, 2017
Weighted average grant-date fair value of options	$	13.61		$	14.39
Risk-free interest rate		2.2	%		2.0	%
Expected volatility		37	%		33	%
Expected life (in years)		5.0			5.5

The Company’s estimate of expected volatility for stock options is based upon the volatility of our stock price over the expected life of the award. The risk-free interest rate is the approximate yield on U. S. Treasury Strips having a life equal to the expected option life on the date of grant. The expected life is an estimate of the number of years an option will be held before it is exercised.

Other Stock-Based Awards

Restricted stock activity during 2017 and 2018 was as follows:

	Number of Shares			Weighted Average Grant-Date Fair Value
Unvested at January 1, 2017		844,419		$	55.76
Granted		404,224			42.38
Cancelled		(145,981	)		55.03
Vested		(292,794	)		53.07
Unvested at December 31, 2017		809,868		$	50.19
Granted		441,837			36.51
Cancelled		(71,067	)		48.36
Vested		(283,077	)		53.24
Unvested at September 30, 2018		897,561		$	42.64

Restricted stock unit activity during 2017 and 2018 was as follows:

	Number of Units			Weighted Average Grant-Date Fair Value
Unvested at January 1, 2017		273,599		$	59.68
Granted		219,840			43.23
Cancelled		—			—
Vested		(132,530	)		58.67
Unvested at December 31, 2017		360,909		$	50.04
Granted		285,358			42.26
Cancelled		(87,173	)		55.44
Vested		(72,983	)		49.64
Unvested at September 30, 2018		486,111		$	44.52

Restricted stock awards are time-based vesting awards that vest over a period of three or four years and are subject to continuing service of the employee or non-employee director over the ratable vesting periods. The fair values of the restricted stock awards were determined based on the closing price of the Company’s common stock on the trading date immediately prior to the grant date.

Restricted stock units are granted to employees and are subject to Company performance compared to pre-established targets and, in the case of the 2018 awards, Company performance compared to peers. In addition to Company performance, these performance-based restricted stock units are subject to the continuing service of the employee during the two- or three-year period

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covered by the awards. The performance condition for the restricted stock units is based on the Company’s achievement of annually established targets for diluted earnings per share. Additionally, the number of shares issuable pursuant to restricted stock units granted during 2018 is subject to adjustment based on the Company’s three-year annualized total stockholder return relative to a peer group consisting of S&P 1500 companies within the Healthcare Providers & Services 6 digit GICS industry group and selected other companies deemed to be peers. The number of shares issuable at the end of the applicable vesting period of restricted stock units ranges from 0% to 200% of the targeted units based on the Company’s actual performance compared to the targets and, for 2018 awards, performance compared to peers.

The fair values of restricted stock units were determined based on the closing price of the Company’s common stock on the trading date immediately prior to the grant date for units subject to performance conditions, or at its Monte-Carlo simulation value for units subject to market conditions.

9. Income Taxes

The provision for income taxes for the three months ended September 30, 2018 and 2017 reflects effective tax rates of 15.9% and 26.0%, respectively. The provision for income taxes for the nine months ended September 30, 2018 and 2017 reflects effective tax rates of 9.5% and 26.3%, respectively. The decrease in the effective tax rate for the three and nine months ended September 30, 2018 and 2017 was primarily attributable to the application of Public Law 115-97, informally referred to as the Tax Cuts and Jobs Act (the “Tax Act”) and a discrete benefit of $10.5 million recorded in the nine months ended September 30, 2018 related to a change in the Company’s provisional amount recorded at December 31, 2017.

The Company adopted ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” on January 1, 2017, which changed how the Company accounts for share-based awards for tax purposes. Income tax effects of share-based awards are recognized in the income statement, instead of through equity, when the awards vest. These changes resulted in an increase in our income tax provision of $1.2 million and $1.7 million, or an increase in the effective tax rate of 0.7% and 1.0% for the nine months ended September 30, 2018 and 2017, respectively.

U.S. Tax Reform

On December 22, 2017, the Tax Act was enacted into law. The Tax Act provides for significant changes to the U.S. tax code that impact businesses. Effective January 1, 2018, the Tax Act reduces the U.S. federal tax rate for corporations from 35% to 21%, for U.S. taxable income. The Tax Act requires a one-time remeasurement of deferred taxes to reflect their value at a lower tax rate of 21%. The Tax Act includes other changes, including, but not limited to, requiring a one-time transition tax on certain repatriated earnings of foreign subsidiaries that is payable over eight years, a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, a new provision designed to tax global intangible low-taxed income, a limitation of the deduction for net operating losses, elimination of net operating loss carrybacks, immediate deductions for depreciation expense for certain qualified property, additional limitations on the deductibility of executive compensation and limitations on the deductibility of interest.

Accounting Standards Codification (“ASC”) 740 “Income Taxes” (“ASC 740”) requires the Company to recognize the effect of tax law changes in the period of enactment. However, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”) which will allow the Company to record provisional amounts during a measurement period similarly to the measurement period used when accounting for business combinations. The Company will continue to assess the impact of the Tax Act on its business and consolidated financial statements.

At September 30, 2018, the Company had not completed its accounting for the tax effects of enactment of the Tax Act; however, in certain cases, as described below, the Company has made a reasonable estimate of the effects on its existing deferred tax balances. The Company has recognized a cumulative provisional amount of $19.3 million at September 30, 2018 related to the remeasurement of its deferred tax balance. In addition, the Company has recorded a one-time transition tax lability in relation to its foreign subsidiaries of $0.0 million at September 30, 2018. The amount may change when the calculation of post-1986 foreign earnings and profits previously deferred from U.S. federal taxation is finalized.

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Provisional Amounts

Deferred Tax Assets and Liabilities

The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. As a result of the reduction in the corporate income tax rate, the Company is required to revalue its net deferred tax assets and liabilities to account for the future impact of lower corporate tax rates on this deferred amount and record any change in the value of such asset or liability as a one-time non-cash charge or benefit on its income statement. However, the Company is still analyzing certain aspects of the Tax Act, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The Company has recognized a cumulative provisional amount of $19.3 million at September 30, 2018 related to the remeasurement of its deferred tax balance.

U.S. Tax on Foreign Earnings

The one-time transition tax is based on total post-1986 earnings and profits that the Company previously deferred from U.S. income taxes. The Company has made sufficient progress on the earnings and profits analysis for its foreign subsidiaries to reasonably estimate the effects of the one-time transition tax and has recorded a provisional amount of $0.0 million at September 30, 2018. This amount may change when the Company finalizes the calculation of post-1986 foreign earnings and profit. As part of the analysis of the Tax Act, the Company made an adjustment regarding the treatment of foreign dividends of $10.9 million during the nine months ended September 30, 2018. The change in the provisional estimate recorded at December 31, 2017 was recognized under the law that existed prior to December 22, 2017.

The Company has estimated the impacts for Global Intangible Low-Taxed Income, Foreign-Derived Intangible Income, the Base Erosion and Anti-Abuse Tax and any remaining impacts of the foreign income provisions of the Tax Act. The Company has made sufficient progress to reasonably estimate the effects of the aforementioned items and has recorded a provisional amount of $0.0 million at September 30, 2018.

10. Derivatives

The Company entered into foreign currency forward contracts during the three and nine months ended September 30, 2018 and 2017 in connection with certain transfers of cash between the U.S. and U.K. under the Company’s cash management and foreign currency risk management programs. Foreign currency forward contracts limit the economic risk of changes in the exchange rate between U.S. Dollars (“USD”) and British Pounds (“GBP”) associated with cash transfers.

In May 2016, the Company entered into multiple cross currency swap agreements with an aggregate notional amount of $650.0 million to manage foreign currency risk by effectively converting a portion of its fixed-rate USD-denominated senior notes, including the semi-annual interest payments thereunder, to fixed-rate GBP-denominated debt of £449.3 million. During the term of the swap agreements, the Company will receive semi-annual interest payments in USD from the counterparties at fixed interest rates, and the Company will make semi-annual interest payments in GBP to the counterparties at fixed interest rates. The interest payments under the cross-currency swap agreements result in £24.7 million of annual cash flows, from the Company’s U.K. business being converted to $35.8 million (at a 1.45 exchange rate).

The Company has designated the cross currency swap agreements and forward contracts entered into during 2017 and the nine months ended September 30, 2018 as qualifying hedging instruments and is accounting for these as net investment hedges. The fair value of these derivatives of $33.1 million is recorded as derivative instrument assets on the condensed consolidated balance sheets. The gains and losses resulting from fair value adjustments to the cross currency swap agreements are recorded in accumulated other comprehensive loss as the swaps are effective in hedging the designated risk. Cash flows related to the cross currency swap derivatives are included in operating activities in the condensed consolidated statements of cash flows.

11. Fair Value Measurements

The carrying amounts reported for cash and cash equivalents, accounts receivable, other current assets, accounts payable and other current liabilities approximate fair value because of the short-term maturity of these instruments.

18

The carrying amounts and fair values of the Company’s Amended and Restated Senior Credit Facility, 6.125% Senior Notes, 5.125% Senior Notes, 5.625% Senior Notes, 6.500% Senior Notes, 9.0% and 9.5% Revenue Bonds and derivative instruments at September 30, 2018 and December 31, 2017 were as follows (in thousands):

	Carrying Amount				Fair Value
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Amended and Restated Senior Credit Facility	$	1,722,010	$	1,749,185	$	1,722,010	$	1,749,185
6.125% Senior Notes due 2021	$	148,514	$	148,098	$	149,257	$	150,134
5.125% Senior Notes due 2022	$	296,750	$	296,174	$	296,008	$	296,914
5.625% Senior Notes due 2023	$	642,932	$	641,891	$	647,561	$	651,519
6.500% Senior Notes due 2024	$	383,033	$	382,251	$	395,960	$	397,541
9.0% and 9.5% Revenue Bonds	$	21,987	$	22,289	$	21,987	$	22,289
Derivative instrument assets	$	33,084	$	12,997	$	33,084	$	12,997

The Company’s Amended and Restated Senior Credit Facility, 6.125% Senior Notes, 5.125% Senior Notes, 5.625% Senior Notes, 6.500% Senior Notes and 9.0% and 9.5% Revenue Bonds were categorized as Level 2 in the GAAP fair value hierarchy. Fair values were based on trading activity among the Company’s lenders and the average bid and ask price as determined using published rates.

The fair values of the derivative instruments were categorized as Level 2 in the GAAP fair value hierarchy and were based on observable market inputs including applicable exchange rates and interest rates.

12. Commitments and Contingencies

Professional and General Liability

A portion of the Company’s professional liability risks are insured through a wholly-owned insurance subsidiary. The Company is self-insured for professional liability claims up to $3.0 million per claim and has obtained reinsurance coverage from a third party to cover claims in excess of the retention limit. The reinsurance policy has a coverage limit of $75.0 million in the aggregate. The Company’s reinsurance receivables are recognized consistent with the related liabilities and include known claims and any incurred but not reported claims that are covered by current insurance policies in place.

Legal Proceedings

The Company is, from time to time, subject to various claims, lawsuits, governmental investigations and regulatory actions, including claims for damages for personal injuries, medical malpractice, overpayments, breach of contract, securities law violations, tort and employment related claims. In these actions, plaintiffs request a variety of damages, including, in some instances, punitive and other types of damages that may not be covered by insurance. In addition, healthcare companies are subject to numerous investigations by various governmental agencies. Certain of the Company’s individual facilities have received, and from time to time, other facilities may receive, subpoenas, civil investigative demands, audit requests and other inquiries from, and may be subject to investigation by, federal and state agencies. These investigations can result in repayment obligations, and violations of the False Claims Act can result in substantial monetary penalties and fines, the imposition of a corporate integrity agreement and exclusion from participation in governmental health programs. In addition, the federal False Claims Act permits private parties to bring qui tam, or “whistleblower,” suits against companies that submit false claims for payments to, or improperly retain overpayments from, the government. Some states have adopted similar state whistleblower and false claims provisions.

During the third quarter of 2018, the U.S. Attorney’s Office for the Southern District of West Virginia served subpoenas on seven of our comprehensive treatment centers located in West Virginia requesting various documents from January 2012 to present. The U.S. Attorney’s Office has advised us that the civil aspect of the investigation is a False Claims Act investigation focused on claims submitted by the centers for certain lab services. The Company is cooperating with the government’s investigation but is not able to quantify any potential liability in connection with this investigation. 

19

13. Noncontrolling Interests

Noncontrolling interests in the consolidated financial statements represents the portion of equity held by noncontrolling partners in non-wholly owned subsidiaries the Company controls. At September 30, 2018, certain of these non-wholly owned subsidiaries operated four facilities. The Company owns between 60% and 80% of the equity interests in the entity that owns each facility, and noncontrolling partners own the remaining equity interests. The initial value of the noncontrolling interests is based on the fair value of contributions, and the Company consolidates the operations of each facility based on its equity ownership and its control of the entity. The noncontrolling interests are reflected as redeemable noncontrolling interests on the condensed consolidated balance sheets based on put rights that could require the Company to purchase the noncontrolling interests upon the occurrence of a change in control.

The components of redeemable noncontrolling interests are as follows (in thousands):

Balance at December 31, 2017	$	22,417
Contribution of redeemable noncontrolling interests		6,125
Net income attributable to noncontrolling interests		156
Balance at September 30, 2018	$	28,698

14. Other Current Assets

Other current assets consisted of the following (in thousands):

	September 30, 2018		December 31, 2017
Prepaid expenses	$	35,682	$	27,320
Other receivables		30,203		30,455
Income taxes receivable		11,326		15,056
Workers’ compensation deposits – current portion		10,000		10,000
Inventory		5,021		4,787
Insurance receivable-current portion		2,049		17,588
Other		1,865		2,129
Other current assets	$	96,146	$	107,335

15. Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):

	September 30, 2018		December 31, 2017
Accrued expenses	$	42,876	$	37,268
Unearned income		31,581		31,342
Accrued interest		12,835		36,370
Income taxes payable		11,312		1,012
Insurance liability – current portion		4,956		22,788
Accrued property taxes		5,570		3,945
Other		5,284		8,488
Other accrued liabilities	$	114,414	$	141,213

16. Segment Information

The Company operates in one line of business, which is operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As management reviews the operating results of its facilities in the U.S. and its facilities in the U.K. separately to assess performance and make decisions, the Company’s operating segments include our U.S. Facilities and U.K. Facilities. At September 30, 2018, the U.S. Facilities segment included 215 behavioral healthcare facilities with approximately 9,200 beds in 40 states and Puerto Rico, and the U.K. Facilities segment included 371 behavioral healthcare facilities with approximately 8,800 beds in the U.K.

20

The following tables set forth the financial information by operating segment, including a reconciliation of Segment EBITDA to income before income taxes (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenue:
U.S. Facilities	$	488,626		$	453,678		$	1,432,501		$	1,355,315
U.K. Facilities		272,290			263,036			836,394			756,489
Corporate and Other		—			—			—			—
	$	760,916		$	716,714		$	2,268,895		$	2,111,804
Segment EBITDA (1):
U.S. Facilities	$	128,537		$	118,744		$	375,663		$	359,250
U.K. Facilities		40,735			50,665			146,081			146,941
Corporate and Other		(20,348	)		(17,153	)		(62,075	)		(55,346	)
	$	148,924		$	152,256		$	459,669		$	450,845

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Segment EBITDA (1)	$	148,924		$	152,256		$	459,669		$	450,845
Plus (less):
Equity-based compensation expense		(5,225	)		(4,175	)		(19,273	)		(19,007	)
Transaction-related expenses		(2,353	)		(5,665	)		(10,008	)		(18,836	)
Debt extinguishment costs		—			—			(940	)		(810	)
Interest expense, net		(46,651	)		(44,515	)		(137,706	)		(130,777	)
Depreciation and amortization		(39,659	)		(36,442	)		(119,360	)		(105,256	)
Income before income taxes	$	55,036		$	61,459		$	172,382		$	176,159

	U.S. Facilities		U.K. Facilities			Corporate and Other		Consolidated
Goodwill:
Balance at January 1, 2018	$	2,042,592	$	708,582		$	—	$	2,751,174
Increase from contribution of redeemable noncontrolling interests		2,244		—			—		2,244
Foreign currency translation loss		—		(24,239	)		—		(24,239	)
Prior year purchase price adjustments		—		762			—		762
Balance at September 30, 2018	$	2,044,836	$	685,105		$	—	$	2,729,941

21

	September 30, 2018		December 31, 2017
Assets (2):
U.S. Facilities	$	3,753,345	$	3,567,126
U.K. Facilities		2,568,318		2,647,150
Corporate and Other		207,921		210,226
	$	6,529,584	$	6,424,502

(1) Segment EBITDA is defined as income before provision for income taxes, equity-based compensation expense, transaction-related expenses, debt extinguishment costs, interest expense and depreciation and amortization. The Company uses Segment EBITDA as an analytical indicator to measure the performance of the Company’s segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA is commonly used as an analytical indicator within the health care industry, and also serves as a measure of leverage capacity and debt service ability. Segment EBITDA should not be considered as a measure of financial performance under GAAP, and the items excluded from Segment EBITDA are significant components in understanding and assessing financial performance. Because Segment EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Segment EBITDA, as presented, may not be comparable to other similarly titled measures of other companies.

(2) Assets include property and equipment for the U.S. Facilities of $1.3 billion, U.K. Facilities of $1.8 billion and corporate and other of $53.9 million at September 30, 2018. Assets include property and equipment for the U.S. Facilities of $1.2 billion, U.K. Facilities of $1.8 billion and corporate and other of $49.2 million at December 31, 2017.

17. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows (in thousands):

	Foreign Currency Translation Adjustments			Change in Fair Value of Derivative Instruments		Pension Plan			Total
Balance at December 31, 2017	$	(376,740	)	$	7,167	$	(4,545	)	$	(374,118	)
Foreign currency translation (loss) gain		(82,935	)		—		157			(82,778	)
Gain on derivative instruments, net of tax of $5.6    million		—			16,434		—			16,434
Balance at September 30, 2018	$	(459,675	)	$	23,601	$	(4,388	)	$	(440,462	)

18. Financial Information for the Company and Its Subsidiaries

The Company conducts substantially all of its business through its subsidiaries. The 6.125% Senior Notes, 5.125% Senior Notes, 5.625% Senior Notes and 6.500% Senior Notes are jointly and severally guaranteed on an unsecured senior basis by all of the Company’s subsidiaries that guarantee the Company’s obligations under the Amended and Restated Senior Credit Facility. Presented below is condensed consolidating financial information for the Company and its subsidiaries at September 30, 2018 and December 31, 2017, and for the three and nine months ended September 30, 2018 and 2017. The information segregates the parent company (Acadia Healthcare Company, Inc.), the combined wholly-owned subsidiary guarantors, the combined non-guarantor subsidiaries and eliminations.

22

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

September 30, 2018

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	32,298	$	16,630	$	—		$	48,928
Accounts receivable, net		—		270,535		75,124		—			345,659
Other current assets		—		70,260		25,886		—			96,146
Total current assets		—		373,093		117,640		—			490,733
Property and equipment, net		—		1,197,218		1,929,424		—			3,126,642
Goodwill		—		1,936,057		793,884		—			2,729,941
Intangible assets, net		—		58,405		32,854		—			91,259
Deferred tax assets		2,296		—		3,630		(2,296	)		3,630
Derivative instruments assets		33,084		—		—		—			33,084
Investment in subsidiaries		5,523,816		—		—		(5,523,816	)		—
Other assets		326,442		42,688		8,833		(323,668	)		54,295
Total assets	$	5,885,638	$	3,607,461	$	2,886,265	$	(5,849,780	)	$	6,529,584
Current liabilities:
Current portion of long-term debt	$	32,984	$	—	$	280	$	—		$	33,264
Accounts payable		—		90,497		43,417		—			133,914
Accrued salaries and benefits		—		80,156		28,995		—			109,151
Other accrued liabilities		12,150		34,908		67,356		—			114,414
Total current liabilities		45,134		205,561		140,048		—			390,743
Long-term debt		3,160,255		—		345,375		(323,668	)		3,181,962
Deferred tax liabilities		—		31,180		53,385		(2,296	)		82,269
Other liabilities		—		109,181		56,482		—			165,663
Total liabilities		3,205,389		345,922		595,290		(325,964	)		3,820,637
Redeemable noncontrolling interests		—		—		28,698		—			28,698
Total equity		2,680,249		3,261,539		2,262,277		(5,523,816	)		2,680,249
Total liabilities and equity	$	5,885,638	$	3,607,461	$	2,886,265	$	(5,849,780	)	$	6,529,584

23

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

December 31, 2017

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	46,860	$	20,430	$	—		$	67,290
Accounts receivable, net		—		230,890		66,035		—			296,925
Other current assets		—		85,746		21,589		—			107,335
Total current assets		—		363,496		108,054		—			471,550
Property and equipment, net		—		1,086,802		1,961,328		—			3,048,130
Goodwill		—		1,936,057		815,117		—			2,751,174
Intangible assets, net		—		57,628		29,720		—			87,348
Deferred tax assets		2,370		—		3,731		(2,370	)		3,731
Derivative instruments assets		12,997		—		—		—			12,997
Investment in subsidiaries		5,429,386		—		—		(5,429,386	)		—
Other assets		381,913		38,860		7,807		(379,008	)		49,572
Total assets	$	5,826,666	$	3,482,843	$	2,925,757	$	(5,810,764	)	$	6,424,502
Current liabilities:
Current portion of long-term debt	$	34,550	$	—	$	280	$	—		$	34,830
Accounts payable		—		70,767		31,532		—			102,299
Accrued salaries and benefits		—		69,057		29,990		—			99,047
Other accrued liabilities		36,196		27,676		77,341		—			141,213
Total current liabilities		70,746		167,500		139,143		—			377,389
Long-term debt		3,183,049		—		401,017		(379,008	)		3,205,058
Deferred tax liabilities		—		27,975		54,728		(2,370	)		80,333
Other liabilities		—		103,112		63,322		—			166,434
Total liabilities		3,253,795		298,587		658,210		(381,378	)		3,829,214
Redeemable noncontrolling interests		—		—		22,417		—			22,417
Total equity		2,572,871		3,184,256		2,245,130		(5,429,386	)		2,572,871
Total liabilities and equity	$	5,826,666	$	3,482,843	$	2,925,757	$	(5,810,764	)	$	6,424,502

24

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	458,061	$	302,855		$	—		$	760,916
Salaries, wages and benefits		5,225			245,599		167,093			—			417,917
Professional fees		—			24,152		35,357			—			59,509
Supplies		—			19,139		10,322			—			29,461
Rents and leases		—			8,294		11,572			—			19,866
Other operating expenses		—			57,495		32,969			—			90,464
Depreciation and amortization		—			18,857		20,802			—			39,659
Interest expense, net		17,225			22,768		6,658			—			46,651
Transaction-related expenses		—			702		1,651			—			2,353
Total expenses		22,450			397,006		286,424			—			705,880
(Loss) income before income taxes		(22,450	)		61,055		16,431			—			55,036
Equity in earnings of subsidiaries		62,854			—		—			(62,854	)		—
(Benefit from) provision for income taxes		(5,875	)		11,666		2,966			—			8,757
Net income (loss)		46,279			49,389		13,465			(62,854	)		46,279
Net gain attributable to noncontrolling interests		—			—		(47	)		—			(47	)
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	46,279		$	49,389	$	13,418		$	(62,854	)	$	46,232
Other comprehensive (loss) income:
Foreign currency translation loss		—			—		(31,959	)		—			(31,959	)
Gain on derivative instruments		7,380			—		—			—			7,380
Other comprehensive income (loss)		7,380			—		(31,959	)		—			(24,579	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	53,659		$	49,389	$	(18,541	)	$	(62,854	)	$	21,653

25

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue before provision for doubtful accounts	$	—		$	440,423		$	288,289		$	—		$	728,712
Provision for doubtful accounts		—			(10,310	)		(1,688	)		—			(11,998	)
Revenue		—			430,113			286,601			—			716,714
Salaries, wages and benefits		4,175			225,001			156,386			—			385,562
Professional fees		—			24,385			28,657			—			53,042
Supplies		—			18,843			9,809			—			28,652
Rents and leases		—			8,127			10,922			—			19,049
Other operating expenses		—			55,077			27,251			—			82,328
Depreciation and amortization		—			16,963			19,479			—			36,442
Interest expense, net		15,933			19,304			9,278			—			44,515
Transaction-related expenses		—			2,211			3,454			—			5,665
Total expenses		20,108			369,911			265,236			—			655,255
(Loss) income before income taxes		(20,108	)		60,202			21,365			—			61,459
Equity in earnings of subsidiaries		55,925			—			—			(55,925	)		—
(Benefit from) provision for income taxes		(9,672	)		21,202			4,440			—			15,970
Net income (loss)		45,489			39,000			16,925			(55,925	)		45,489
Net loss attributable to noncontrolling interests		—			—			129			—			129
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	45,489		$	39,000		$	17,054		$	(55,925	)	$	45,618
Other comprehensive (loss) income:
Foreign currency translation gain		—			—			69,622			—			69,622
Loss on derivative instruments		(9,402	)		—			—			—			(9,402	)
Other comprehensive (loss) income		(9,402	)		—			69,622			—			60,220
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	36,087		$	39,000		$	86,676		$	(55,925	)	$	105,838

26

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	1,347,468	$	921,427		$	—		$	2,268,895
Salaries, wages and benefits		19,273			724,650		502,263			—			1,246,186
Professional fees		—			73,100		93,888			—			166,988
Supplies		—			57,143		31,815			—			88,958
Rents and leases		—			24,844		35,546			—			60,390
Other operating expenses		—			168,923		97,054			—			265,977
Depreciation and amortization		—			55,640		63,720			—			119,360
Interest expense, net		47,307			69,954		20,445			—			137,706
Debt extinguishment costs		940			—		—			—			940
Transaction-related expenses		—			7,382		2,626			—			10,008
Total expenses		67,520			1,181,636		847,357			—			2,096,513
(Loss) income before income taxes		(67,520	)		165,832		74,070			—			172,382
Equity in earnings of subsidiaries		206,204			—		—			(206,204	)		—
(Benefit from) provision for income taxes		(17,359	)		22,985		10,713			—			16,339
Net income (loss)		156,043			142,847		63,357			(206,204	)		156,043
Net gain attributable to noncontrolling interests		—			—		(156	)		—			(156	)
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	156,043		$	142,847	$	63,201		$	(206,204	)	$	155,887
Other comprehensive (loss) income:
Foreign currency translation loss		—			—		(82,778	)		—			(82,778	)
Gain on derivative instruments		16,434			—		—			—			16,434
Other comprehensive income (loss)		16,434			—		(82,778	)		—			(66,344	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	172,477		$	142,847	$	(19,577	)	$	(206,204	)	$	89,543

27

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended September 30, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue before provision for doubtful accounts	$	—		$	1,311,937		$	831,759		$	—		$	2,143,696
Provision for doubtful accounts		—			(28,007	)		(3,885	)		—			(31,892	)
Revenue		—			1,283,930			827,874			—			2,111,804
Salaries, wages and benefits		19,007			675,206			451,365			—			1,145,578
Professional fees		—			69,796			72,976			—			142,772
Supplies		—			56,502			28,498			—			85,000
Rents and leases		—			25,139			32,316			—			57,455
Other operating expenses		—			164,596			84,565			—			249,161
Depreciation and amortization		—			48,918			56,338			—			105,256
Interest expense, net		46,392			57,054			27,331			—			130,777
Debt extinguishment costs		810			—			—			—			810
Transaction-related expenses		—			6,219			12,617			—			18,836
Total expenses		66,209			1,103,430			766,006			—			1,935,645
(Loss) income before income taxes		(66,209	)		180,500			61,868			—			176,159
Equity in earnings of subsidiaries		163,931			—			—			(163,931	)		—
(Benefit from) provision for income taxes		(32,178	)		66,124			12,313			—			46,259
Net income (loss)		129,900			114,376			49,555			(163,931	)		129,900
Net loss attributable to noncontrolling interests		—			—			306			—			306
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	129,900		$	114,376		$	49,861		$	(163,931	)	$	130,206
Other comprehensive (loss) income:
Foreign currency translation gain		—			—			188,744			—			188,744
Loss on derivative instruments		(24,354	)		—			—			—			(24,354	)
Other comprehensive (loss) income		(24,354	)		—			188,744			—			164,390
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	105,546		$	114,376		$	238,605		$	(163,931	)	$	294,596

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Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	156,043		$	142,847		$	63,357		$	(206,204	)	$	156,043
Adjustments to reconcile net income (loss)    to net cash (used in) provided by continuing    operating activities:
Equity in earnings of subsidiaries		(206,204	)		—			—			206,204			—
Depreciation and amortization		—			55,640			63,720			—			119,360
Amortization of debt issuance costs		8,065			—			(302	)		—			7,763
Equity-based compensation expense		19,273			—			—			—			19,273
Deferred income taxes		74			(2,398	)		586			—			(1,738	)
Debt extinguishment costs		940			—			—			—			940
Other		1,948			1,219			(142	)		—			3,025
Change in operating assets and liabilities:
Accounts receivable, net		—			(39,644	)		(3,608	)		—			(43,252	)
Other current assets		—			7,898			(4,877	)		—			3,021
Other assets		4,596			3,763			105			(4,596	)		3,868
Accounts payable and other accrued liabilities		—			7,835			1,395			—			9,230
Accrued salaries and benefits		—			11,100			(51	)		—			11,049
Other liabilities		—			4,548			(4,399	)		—			149
Net cash (used in) provided by continuing operating     activities		(15,265	)		192,808			115,784			(4,596	)		288,731
Net cash used in discontinued operating activities		—			(2,548	)		—			—			(2,548	)
Net cash (used in) provided by operating activities		(15,265	)		190,260			115,784			(4,596	)		286,183
Investing activities:
Cash paid for capital expenditures		—			(149,402	)		(100,587	)		—			(249,989	)
Cash paid for real estate acquisitions		—			(9,391	)		—			—			(9,391	)
Other		—			(5,718	)		2,604			—			(3,114	)
Net cash used in investing activities		—			(164,511	)		(97,983	)		—			(262,494	)
Financing activities:
Principal payments on long-term debt		(31,492	)		(169	)		(4,427	)		4,596			(31,492	)
Common stock withheld for minimum statutory taxes, net		(2,272	)		—			—			—			(2,272	)
Other		(1,742	)		(2,885	)		(2,346	)		—			(6,973	)
Cash provided by (used in) intercompany activity		50,771			(37,257	)		(13,514	)		—			—
Net provided by (used in) in financing activities		15,265			(40,311	)		(20,287	)		4,596			(40,737	)
Effect of exchange rate changes on cash		—			—			(1,314	)		—			(1,314	)
Net decrease in cash and cash equivalents		—			(14,562	)		(3,800	)		—			(18,362	)
Cash and cash equivalents at beginning of the period		—			46,860			20,430			—			67,290
Cash and cash equivalents at end of the period	$	—		$	32,298		$	16,630		$	—		$	48,928

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Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	129,900		$	114,376		$	49,555		$	(163,931	)	$	129,900
Adjustments to reconcile net income (loss) to    net cash provided by (used in) continuing    operating activities:
Equity in earnings of subsidiaries		(163,931	)		—			—			163,931			—
Depreciation and amortization		—			48,918			56,338			—			105,256
Amortization of debt issuance costs		7,652			—			(312	)		—			7,340
Equity-based compensation expense		19,007			—			—			—			19,007
Deferred income taxes		156			22,401			6,859			—			29,416
Debt extinguishment costs		810			—			—			—			810
Other		4,216			1,727			4,729			—			10,672
Change in operating assets and liabilities:
Accounts receivable, net		—			(21,183	)		(7,498	)		—			(28,681	)
Other current assets		—			1,126			24,973			—			26,099
Other assets		3,479			(705	)		139			(3,479	)		(566	)
Accounts payable and other accrued liabilities		—			(22,372	)		(4,009	)		—			(26,381	)
Accrued salaries and benefits		—			(4,759	)		(3,178	)		—			(7,937	)
Other liabilities		—			4,084			3,593			—			7,677
Net cash provided by (used in) continuing operating      activities		1,289			143,613			131,189			(3,479	)		272,612
Net cash used in discontinued operating activities		—			(1,261	)		—			—			(1,261	)
Net cash provided by (used in) operating activities		1,289			142,352			131,189			(3,479	)		271,351
Investing activities:
Cash paid for capital expenditures		—			(114,130	)		(79,687	)		—			(193,817	)
Cash paid for real estate acquisitions		—			(33,297	)		—			—			(33,297	)
Other		—			(7,984	)		1,922			—			(6,062	)
Net cash used in investing activities		—			(155,411	)		(77,765	)		—			(233,176	)
Financing activities:
Principal payments on long-term debt		(25,913	)		—			(3,479	)		3,479			(25,913	)
Common stock withheld for minimum statutory taxes, net		(3,278	)		—			—			—			(3,278	)
Other		—			1,649			—			—			1,649
Cash provided by (used in) intercompany activity		27,902			39,443			(67,345	)		—			—
Net (used in) provided by in financing activities		(1,289	)		41,092			(70,824	)		3,479			(27,542	)
Effect of exchange rate changes on cash		—			—			7,965			—			7,965
Net increase (decrease) in cash and cash equivalents		—			28,033			(9,435	)		—			18,598
Cash and cash equivalents at beginning of the period		—			15,681			41,382			—			57,063
Cash and cash equivalents at end of the period	$	—		$	43,714		$	31,947		$	—		$	75,661

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19.  Subsequent Events

     On October 22, 2018, the Company sent a notice of conditional redemption to the trustee of the 9.0% and 9.5% Revenue Bonds indicating that the Company is conditionally exercising its option to redeem in whole the 9.0% and 9.5% Revenue Bonds on December 1, 2018 (the “Redemption Date”) at a redemption price equal to the sum of 104% of the principal amount of the 9.0% and 9.5% Revenue Bonds plus accrued and unpaid interest (the “Redemption Price”). The redemption is expressly conditional on the Company depositing sufficient moneys with the trustee on or prior to the Redemption Date, which amounts, together with funds already on deposit with the trustee, are sufficient to satisfy the Redemption Price. The Company expects to borrow the funds needed for the redemption under its revolving line of credit pursuant to the Amended and Restated Credit Agreement.

On October 23, 2018 the Company signed a definitive agreement for the acquisition of Mission Treatment (“Mission Treatment”) for cash consideration of approximately $22.5 million and a working capital settlement. Mission Treatment operates nine comprehensive treatment centers in California, Nevada, Arizona and Oklahoma.

On October 31, 2018 the Company signed a definitive agreement for the acquisition of Whittier Pavilion (“Whittier”), an inpatient psychiatric facility with 71 beds located in Haverhill, Massachusetts, for cash consideration of approximately $17.9 million. Whittier is part of the Whitter Health Network, a family owned and operated healthcare system that has provided hospital and community services since 1982.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements that address future results or occurrences. In some cases you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “would,” “should,” “could” or the negative thereof. Generally, the words “anticipate,” “believe,” “continue,” “expect,” “intend,” “estimate,” “project,” “plan” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contained are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, many of which are outside of our control, which could cause our actual results, performance or achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to:

• our significant indebtedness, our ability to meet our debt obligations, and our ability to incur substantially more debt;

• difficulties in successfully integrating the operations of acquired facilities or realizing the potential benefits and synergies of our acquisitions and joint ventures;

• our ability to implement our business strategies in the U.S. and the U.K. and adapt to the regulatory and business environment in the U.K.;

• potential difficulties operating our business in light of political and economic instability in the U.K. and globally relating to the U.K.’s departure from the European Union;

• the impact of fluctuations in foreign exchange rates, including the devaluations of the GBP relative to the USD;

• the impact of payments received from the government and third-party payors on our revenue and results of operations including the significant dependence of our U.K. facilities on payments received from the NHS;

• our ability to recruit and retain quality psychiatrists and other physicians;

• the impact of competition for staffing on our labor costs and profitability;

• the impact of increases to our labor costs in the U.S. and the U.K.;

• the occurrence of patient incidents, which could result in negative media coverage, adversely affect the price of our securities and result in incremental regulatory burdens and governmental investigations;

• our future cash flow and earnings;

• our restrictive covenants, which may restrict our business and financing activities;

• our ability to make payments on our financing arrangements;

• the impact of the economic and employment conditions in the U.S. and the U.K. on our business and future results of operations;

• compliance with laws and government regulations;

• the impact of claims brought against us or our facilities including claims for damages for personal injuries, medical malpractice, overpayments, breach of contract, securities law violations, tort and employee related claims;

• the impact of governmental investigations, regulatory actions and whistleblower lawsuits;

• the impact of healthcare reform in the U.S. and abroad, including the potential repeal, replacement or modification of the Patient Protection and Affordable Care Act;

• the impact of our highly competitive industry on patient volumes;

• our dependence on key management personnel, key executives and local facility management personnel;

• our acquisition, joint venture and de novo strategies, which expose us to a variety of operational and financial risks, as well as legal and regulatory risks;

• the impact of state efforts to regulate the construction or expansion of healthcare facilities on our ability to operate and expand our operations;

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• our potential inability to extend leases at expiration;

• the impact of controls designed to reduce inpatient services on our revenue;

• the impact of different interpretations of accounting principles on our results of operations or financial condition;

• the impact of environmental, health and safety laws and regulations, especially in locations where we have concentrated operations;

• the impact of an increase in uninsured and underinsured patients or the deterioration in the collectability of the accounts of such patients on our results of operations;

• the risk of a cyber-security incident and any resulting violation of laws and regulations regarding information privacy or other negative impact;

• the impact of laws and regulations relating to privacy and security of patient health information and standards for electronic transactions;

• our ability to cultivate and maintain relationships with referral sources;

• the impact of a change in the mix of our U.S. and U.K. earnings, adverse changes in our effective tax rate and adverse developments in tax laws generally;

• changes in interpretations, assumptions and expectations regarding the Tax Act, including additional guidance that may be issued by federal and state taxing authorities;

• failure to maintain effective internal control over financial reporting;

• the impact of fluctuations in our operating results, quarter to quarter earnings and other factors on the price of our securities;

• the impact of the trend for insurance companies and managed care organizations to enter into sole source contracts on our ability to obtain patients;

• the impact of value-based purchasing programs on our revenue; and

• those risks and uncertainties described from time to time in our filings with the SEC.

Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. These risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. These forward-looking statements are made only as of the date of this Quarterly Report on Form 10-Q. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments.

Overview

Our business strategy is to acquire and develop behavioral healthcare facilities and improve our operating results within our facilities and our other behavioral healthcare operations. We strive to improve the operating results of our facilities by providing high-quality services, expanding referral networks and marketing initiatives while meeting the increased demand for behavioral healthcare services through expansion of our current locations as well as developing new services within existing locations. At September 30, 2018, we operated 586 behavioral healthcare facilities with approximately 18,000 beds in 40 states, the U.K. and Puerto Rico. During the nine months ended September 30, 2018, we added 408 beds, including 256 added to existing facilities and 152 added through the opening of two de novo facilities. For the year ending December 31, 2018, we expect to add more than 800 total beds exclusive of acquisitions.

We are the leading publicly traded pure-play provider of behavioral healthcare services, with operations in the U.S. and the U.K. Management believes that we are positioned as a leading platform in a highly fragmented industry under the direction of an experienced management team that has significant industry expertise. Management expects to take advantage of several strategies that are more accessible as a result of our increased size and geographic scale, including continuing a national marketing strategy to attract new patients and referral sources, increasing our volume of out-of-state referrals, providing a broader range of services to new and existing patients and clients and selectively pursuing opportunities to expand our facility and bed count in the U.S and U.K. though acquisitions, joint ventures and bed additions in existing facilities.

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Results of Operations

The following table illustrates our consolidated results of operations for the respective periods shown (dollars in thousands):

	Three Months Ended September 30,											Nine Months Ended September 30,
	2018					2017						2018					2017
	Amount		%			Amount			%			Amount		%			Amount			%
Revenue before provision for doubtful accounts	$	760,916				$	728,712					$	2,268,895				$	2,143,696
Provision for doubtful accounts		—					(11,998	)					—					(31,892	)
Revenue		760,916		100.0	%		716,714			100.0	%		2,268,895		100.0	%		2,111,804			100.0	%
Salaries, wages and benefits		417,917		54.9	%		385,562			53.8	%		1,246,186		54.9	%		1,145,578			54.2	%
Professional fees		59,509		7.8	%		53,042			7.4	%		166,988		7.4	%		142,772			6.8	%
Supplies		29,461		3.9	%		28,652			4.0	%		88,958		3.9	%		85,000			4.0	%
Rents and leases		19,866		2.6	%		19,049			2.6	%		60,390		2.7	%		57,455			2.7	%
Other operating expenses		90,464		11.9	%		82,328			11.5	%		265,977		11.7	%		249,161			11.8	%
Depreciation and amortization		39,659		5.2	%		36,442			5.1	%		119,360		5.3	%		105,256			5.0	%
Interest expense		46,651		6.1	%		44,515			6.2	%		137,706		6.1	%		130,777			6.2	%
Debt extinguishment costs		—		0.0	%		-			0.0	%		940		0.0	%		810			0.1	%
Transaction-related expenses		2,353		0.3	%		5,665			0.8	%		10,008		0.4	%		18,836			0.9	%
Total expenses		705,880		92.7	%		655,255			91.4	%		2,096,513		92.4	%		1,935,645			91.7	%
Income before income taxes		55,036		7.3	%		61,459			8.6	%		172,382		7.6	%		176,159			8.3	%
Provision for income taxes		8,757		1.2	%		15,970			2.2	%		16,339		0.7	%		46,259			2.1	%
Net income	$	46,279		6.1	%	$	45,489			6.4	%	$	156,043		6.9	%	$	129,900			6.2	%

Segments

At September 30, 2018, the U.S. Facilities segment included 215 behavioral healthcare facilities with approximately 9,200 beds in 40 states and Puerto Rico, and the U.K. Facilities segment included 371 behavioral healthcare facilities with approximately 8,800 beds in the U.K.

The following table sets forth percent changes in same facility operating data for our U.S. Facilities for the three and nine months ended September 30, 2018 compared to the same periods in 2017:

	Three Months Ended September 30, 2018	Nine Months Ended September 30, 2018
U.S. Same Facility Results (a)
Revenue growth	7.2%	6.1%
Patient days growth	3.3%	2.4%
Admissions growth	5.9%	3.9%
Average length of stay change (b)	-2.5%	-1.5%
Revenue per patient day growth	3.8%	3.6%
EBITDA margin change (c)	60 bps	20 bps

(a) Results for the periods presented include facilities we have operated more than one year and exclude certain closed services.

(b) Average length of stay is defined as patient days divided by admissions.

(c)   Segment EBITDA is defined as income before provision for income taxes, equity-based compensation expense, transaction-related expenses, debt extinguishment costs, interest expense and depreciation and amortization. Management uses Segment EBITDA as an analytical indicator to measure the performance of our segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA is commonly used as an analytical indicator within the health care industry, and also serves as a measure of leverage capacity and debt service ability. Segment EBITDA should not be considered as a measure of financial performance under GAAP, and the items excluded from Segment EBITDA are significant components in understanding and assessing financial performance. Because Segment EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Segment EBITDA, as presented, may not be comparable to other similarly titled measures of other companies.

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The following table sets forth percent changes insame facility operating data for our U.K. Facilities for the three and nine months ended September 30, 2018 compared tothe same periods in2017:

	Three Months Ended September 30, 2018	Nine Months Ended September 30, 2018
U.K. Same Facility Results (a,c)
Revenue growth	4.4%	4.8%
Patient days growth	1.3%	1.6%
Admissions growth	-1.4%	1.7%
Average length of stay change (b)	2.7%	-0.1%
Revenue per patient day growth	3.1%	3.2%
EBITDA margin change (d)	-450 bps	-180 bps

(a) Results for the periods presented include facilities we have operated more than one year and exclude the elderly care division and certain closed services.

(b) Average length of stay is defined as patient days divided by admissions.

(c) Revenue and revenue per patient day for the three and nine months ended September 30, 2017 is adjusted to reflect the foreign currency exchange rate for the comparable periods of 2018 in order to eliminate the effect of changes in the exchange rate. The exchange rate used in the adjusted revenue and revenue per patient day amounts for three and nine months ended September 30, 2017 is 1.30 and 1.35, respectively.

(d) See definition of Segment EBITDA in U.S. Same Facility Results table above.

(e) U.K. EBITDA margin was affected by lower census and higher operating expenses, contract labor in particular. Our census did not reach a sufficient level to absorb the higher wages and operating costs, which adversely affected our margins.

Three months ended September 30, 2018 compared to the three months ended September 30, 2017

Revenue. Revenue increased $44.2 million, or 6.2%, to $760.9 million for the three months ended September 30, 2018 from $716.7 million for the three months ended September 30, 2017 resulting from same facility revenue growth of 6.2% and the slight decrease in the exchange rate between USD and GBP of $1.2 million. During the three months ended September 30, 2018, we generated $488.6 million of revenue, or 64.2% of our total revenue, from our U.S. Facilities and $272.3 million of revenue, or 35.8% of our total revenue, from our U.K. Facilities. During the three months ended September 30, 2017, we generated $453.7 million of revenue, or 63.3% of our total revenue, from our U.S. Facilities and $263.0 million of revenue, or 36.7% of our total revenue, from our U.K. Facilities.

U.S. same facility revenue increased by $32.1 million, or 7.2%, for the three months ended September 30, 2018 compared to the three months ended September 30, 2017, resulting from same facility growth in patient days of 3.3% and an increase in same facility revenue per day of 3.8%. U.K. same facility revenue increased by $10.3 million, or 4.4%, for the three months ended September 30, 2018 compared to the three months ended September 30, 2017, resulting from same facility growth in patient days of 1.3% and an increase in same facility revenue per day of 3.1%. Consistent with the same facility patient day growth in 2017, the growth in same facility patient days for the three months ended September 30, 2018 compared to the three months ended September 30, 2017, resulted from the addition of beds to our existing facilities and ongoing demand for our services.

Salaries, wages and benefits. Salaries, wages and benefits (“SWB”) expense was $417.9 million for the three months ended September 30, 2018 compared to $385.6 million for the three months ended September 30, 2017, an increase of $32.3 million. SWB expense included $5.2 million and $4.2 million of equity-based compensation expense for the three months ended September 30, 2018 and 2017, respectively. Excluding equity-based compensation expense, SWB expense was $412.7 million, or 54.2% of revenue, for the three months ended September 30, 2018, compared to $381.4 million, or 53.2% of revenue, for the three months ended September 30, 2017. Same facility SWB expense was $372.7 million for the three months ended September 30, 2018, or 51.5% of revenue, compared to $348.1 million for the three months ended September 30, 2017, or 51.0% of revenue.

Professional fees. Professional fees were $59.5 million for the three months ended September 30, 2018, or 7.8% of revenue, compared to $53.0 million for the three months ended September 30, 2017, or 7.4% of revenue. The $6.5 million increase was primarily attributable to higher contract labor costs in our U.K. Facilities. Contract labor costs in our U.K. Facilities were higher primarily due to the ongoing nursing and clinical labor shortage and our dependence on higher cost agency labor. Same facility professional fees were $51.5 million for the three months ended September 30, 2018, or 7.1% of revenue, compared to $44.9 million, for the three months ended September 30, 2017, or 6.6% of revenue.

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Supplies. Supplies expense was $29.5 million for the three months ended September 30, 2018, or 3.9% of revenue, compared to $28.7 million for thethree months ended September 30, 2017, or 4.0% of revenue. Same facility supplies expense was $27.4 million for the three months ended September 30, 2018, or 3.8% of revenue, compared to $26.7 million for thethree months ended September 30, 2017, or 3.9% of revenue.

Rents and leases. Rents and leases were $19.9 million for the three months ended September 30, 2018, or 2.6% of revenue, compared to $19.0 million for the three months ended September 30, 2017, or 2.6% of revenue. Same facility rents and leases were $16.0 million for the three months ended September 30, 2018, or 2.2% of revenue, compared to $15.2 million for the three months ended September 30, 2017, or 2.2% of revenue.

Other operating expenses. Other operating expenses consisted primarily of purchased services, utilities, insurance, travel and repairs and maintenance expenses. Other operating expenses were $90.5 million for the three months ended September 30, 2018, or 11.9% of revenue, compared to $82.3 million for the three months ended September 30, 2017, or 11.5% of revenue. Same facility other operating expenses were $83.9 million for the three months ended September 30, 2018, or 11.6% of revenue, compared to $77.1 million for the three months ended September 30, 2017, or 11.3% of revenue.

Depreciation and amortization. Depreciation and amortization expense was $39.7 million for the three months ended September 30, 2018, or 5.2% of revenue, compared to $36.4 million for the three months ended September 30, 2017, or 5.1% of revenue. The increase in depreciation and amortization was attributable to depreciation associated with capital expenditures and real estate acquisitions during 2017 and 2018.

Interest expense. Interest expense was $46.7 million for the three months ended September 30, 2018 compared to $44.5 million for the three months ended September 30, 2017. The increase in interest expense was primarily a result of higher interest rates applicable to our variable rate debt slightly offset by the lower interest rates in connection with amendments to the Repricing Facilities to the Amended and Restated Credit Agreement.

Transaction-related expenses. Transaction-related expenses were $2.4 million for the three months ended September 30, 2018 compared to $5.7 million for the three months ended September 30, 2017. Transaction-related expenses represent costs incurred in the respective periods primarily related to our acquisitions and related integrated efforts, as summarized below (in thousands):

	Three Months Ended September 30,
	2018		2017
Severance and contract termination costs	$	1,403	$	1,820
Legal, accounting and other costs		950		3,845
	$	2,353	$	5,665

Provision for income taxes. For the three months ended September 30, 2018, the provision for income taxes was $8.8 million, reflecting an effective tax rate of 15.9%, compared to $16.0 million, reflecting an effective tax rate of 26.0%, for the three months ended September 30, 2017. The decrease in the effective tax rate for the three months ended September 30, 2018 was primarily attributable to the application of the Tax Act.

Nine months ended September 30, 2018 compared to the nine months ended September 30, 2017

Revenue. Revenue increased $157.1 million, or 7.4%, to $2.3 billion for the nine months ended September 30, 2018 from $2.1 billion for the nine months ended September 30, 2017 resulting from same facility revenue growth of 5.7% and the increase in the exchange rate between USD and GBP of $44.5 million. During the nine months ended September 30, 2018, we generated $1.4 billion of revenue, or 63.1% of our total revenue, from our U.S. Facilities and $836.4 million of revenue, or 36.9% of our total revenue, from our U.K. Facilities. During the nine months ended September 30, 2017, we generated $1.4 billion of revenue, or 64.2% of our total revenue, from our U.S. Facilities and $756.5 million of revenue, or 35.8% of our total revenue, from our U.K. Facilities.

U.S. same facility revenue increased by $81.0 million, or 6.1%, for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017, resulting from same facility growth in patient days of 2.4% and an increase in same facility revenue per day of 3.6%. U.K. same facility revenue increased by $34.8 million, or 4.8%, for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017, resulting from same facility growth in patient days of 1.6% and an increase in same facility revenue per day of 3.2%. Consistent with the same facility patient day growth in 2017, the growth in same facility patient days for the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017 resulted from the addition of beds to our existing facilities and ongoing demand for our services.

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Salaries, wages and benefits. Salaries, wages and benefits (“SWB”) expense was $1.2billion for the nine months ended September 30, 2018 compared to $1.1billion for thenine months ended September 30, 2017, an increase of $100.6 million. SWB expense included $19.3 million and $19.0 million of equity-based compensation expense for the nine months ended September 30, 2018 and 2017, respectively. Excluding equity-based compensation expense, SWB expense was $1.2billion, or 54.1% of revenue, for thenine months ended September 30, 2018, compared to $1.1billion, or 53.3% of revenue, for thenine months ended September 30, 2017. Same facility SWB expense was $1.1billion for thenine months ended September 30, 2018, or 51.3% of revenue, compared to $1.0billion for thenine months ended September 30, 2017, or 51.0% of revenue.

Professional fees. Professional fees were $167.0 million for the nine months ended September 30, 2018, or 7.4% of revenue, compared to $142.8 million for the nine months ended September 30, 2017, or 6.8% of revenue. The $24.2 million increase was primarily attributable to higher contract labor costs in our U.K. Facilities. Contract labor costs in our U.K. Facilities were higher primarily due to the ongoing nursing and clinical labor shortage and our dependence on higher cost agency labor. Same facility professional fees were $143.6 million for the nine months ended September 30, 2018, or 6.6% of revenue, compared to $124.6 million, for the nine months ended September 30, 2017, or 6.1% of revenue.

Supplies. Supplies expense was $89.0 million for the nine months ended September 30, 2018, or 3.9% of revenue, compared to $85.0 million for the nine months ended September 30, 2017, or 4.0% of revenue. Same facility supplies expense was $82.7 million for the nine months ended September 30, 2018, or 3.8% of revenue, compared to $80.5 million for the nine months ended September 30, 2017, or 3.9% of revenue.

Rents and leases. Rents and leases were $60.4 million for the nine months ended September 30, 2018, or 2.7% of revenue, compared to $57.5 million for the nine months ended September 30, 2017, or 2.7% of revenue. Same facility rents and leases were $48.4 million for the nine months ended September 30, 2018, or 2.2% of revenue, compared to $47.5 million for the nine months ended September 30, 2017, or 2.3% of revenue.

Other operating expenses. Other operating expenses consisted primarily of purchased services, utilities, insurance, travel and repairs and maintenance expenses. Other operating expenses were $266.0 million for the nine months ended September 30, 2018, or 11.7% of revenue, compared to $249.2 million for the nine months ended September 30, 2017, or 11.8% of revenue. Same facility other operating expenses were $247.0 million for the nine months ended September 30, 2018, or 11.4% of revenue, compared to $237.7 million for the nine months ended September 30, 2017, or 11.6% of revenue.

Depreciation and amortization. Depreciation and amortization expense was $119.4 million for the nine months ended September 30, 2018, or 5.3% of revenue, compared to $105.3 million for the nine months ended September 30, 2017, or 5.0% of revenue. The increase in depreciation and amortization was attributable to depreciation associated with capital expenditures and real estate acquisitions during 2017 and 2018.

Interest expense. Interest expense was $137.7 million for the nine months ended September 30, 2018 compared to $130.8 million for the nine months ended September 30, 2017. The increase in interest expense was primarily a result of higher interest rates applicable to our variable rate debt slightly offset by the lower interest rates in connection with amendments to the Repricing Facilities Amendments to the Amended and Restated Credit Agreement.

Debt extinguishment costs. Debt extinguishment costs for the nine months ended September 30, 2018 represented $0.6 million of cash charges and $0.3 million of non-cash charges recorded in connection with the Repricing Facilities Amendments to the Amended and Restated Credit Agreement. Debt extinguishment costs for the nine months ended September 30, 2017 represented $0.5 million of cash charges and $0.3 million of non-cash charges recorded in connection with the Third Repricing Amendment to the Amended and Restated Credit Facility.

Transaction-related expenses. Transaction-related expenses were $10.0 million for the nine months ended September 30, 2018 compared to $18.8 million for the nine months ended September 30, 2017. Transaction-related expenses represent costs incurred in the respective periods primarily related to our acquisitions and related integrated efforts, as summarized below (in thousands):

	Nine Months Ended September 30,
	2018		2017
Severance and contract termination costs	$	5,584	$	11,550
Legal, accounting and other costs		4,424		7,286
	$	10,008	$	18,836

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Provision for income taxes. For the nine months ended September 30, 2018, the provision for income taxes was $16.3 million, reflecting an effective tax rate of 9.5%, compared to $46.3 million, reflecting an effective tax rate of 26.3%, for the nine months ended September 30, 2017. The decrease in the effective tax rate for the nine months ended September 30, 2018 was primarily attributable to the application of the Tax Act and a discrete benefit of $10.5 million recorded in the nine months ended September 30, 2018 related to a change in the provisional amount recorded at December 31, 2017.

Revenue

In May 2014, the FASB and the International Accounting Standards Board issued ASU 2014-09. ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. We adopted ASU 2014-09 using the modified retrospective method effective January 1, 2018. As a result of certain changes required by ASU 2014-09, the majority of our provision for doubtful accounts are recorded as a direct reduction to revenue instead of being presented as a separate line item on the condensed consolidated statements of income. The adoption of ASU 2014-09 did not have a significant impact on our consolidated financial statements.

Our revenue is primarily derived from services rendered to patients for inpatient psychiatric and substance abuse care, outpatient psychiatric care and adolescent residential treatment. We receive payments from the following sources for services rendered in our facilities: (i) state governments under their respective Medicaid and other programs; (ii) commercial insurers; (iii) the federal government under the Medicare program administered by CMS; (iv) publicly funded sources in the U.K. (including the NHS, CCGs and local authorities in England, Scotland and Wales) and (v) individual patients and clients. We determine the transaction price based on established billing rates reduced by contractual adjustments provided to third-party payors, discounts provided to uninsured patients and implicit price concessions. Contractual adjustments and discounts are based on contractual agreements, discount policies and historical experience. Implicit price concessions are based on historical collection experience.

The following table presents revenue by payor type and as a percentage of revenue in our U.S. Facilities for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands):

	Three Months Ended September 30,											Nine Months Ended September 30,
	2018					2017						2018					2017
	Amount		%			Amount			%			Amount		%			Amount			%
Commercial	$	146,439		30.0	%	$	142,870			30.7	%	$	431,337		30.1	%	$	431,818			31.1	%
Medicare		73,528		15.0	%		73,593			15.8	%		210,307		14.7	%		212,992			15.4	%
Medicaid		229,390		46.9	%		199,592			42.9	%		668,236		46.6	%		587,705			42.4	%
Self-Pay		33,559		6.9	%		43,685			9.3	%		103,845		7.3	%		130,928			9.4	%
Other		5,710		1.2	%		5,936			1.3	%		18,776		1.3	%		23,758			1.7	%
Revenue before provision for doubtful accounts		488,626		100.0	%		465,676			100.0	%		1,432,501		100.0	%		1,387,201			100.0	%
Provision for doubtful accounts		—					(11,998	)					—					(31,886	)
Revenue	$	488,626				$	453,678					$	1,432,501				$	1,355,315

The following table presents revenue by payor type and as a percentage of revenue in our U.K. Facilities for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands):

	Three Months Ended September 30,										Nine Months Ended September 30,
	2018					2017					2018					2017
	Amount		%			Amount		%			Amount		%			Amount			%
U.K. public funded sources	$	245,919		90.3	%	$	236,778		90.0	%	$	756,094		90.4	%	$	678,623			89.7	%
Self-Pay		26,159		9.6	%		24,572		9.4	%		78,499		9.4	%		70,662			9.3	%
Other		212		0.1	%		1,686		0.6	%		1,801		0.2	%		7,210			1.0	%
Revenue before provision for doubtful accounts		272,290		100.0	%		263,036		100.0	%		836,394		100.0	%		756,495			100.0	%
Provision for doubtful accounts		—					—					—					(6	)
Revenue	$	272,290				$	263,036				$	836,394				$	756,489

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The following tables present a summary of our aging of accounts receivable at September 30, 2018 and December 31, 2017:

September 30, 2018

	Current			30-90			90-150			>150			Total
Commercial		16.8	%		6.0	%		2.2	%		5.0	%		30.0	%
Medicare		10.8	%		1.5	%		0.4	%		0.8	%		13.5	%
Medicaid		23.3	%		5.8	%		2.6	%		6.1	%		37.8	%
U.K. public funded sources		7.2	%		1.4	%		0.1	%		0.2	%		8.9	%
Self-Pay		1.9	%		1.8	%		1.6	%		3.2	%		8.5	%
Other		0.5	%		0.2	%		0.2	%		0.4	%		1.3	%
Total		60.5	%		16.7	%		7.1	%		15.7	%		100.0	%

December 31, 2017

	Current			30-90			90-150			>150			Total
Commercial		15.3	%		8.7	%		3.2	%		6.9	%		34.1	%
Medicare		9.4	%		1.6	%		0.5	%		1.1	%		12.6	%
Medicaid		19.8	%		6.4	%		2.5	%		5.2	%		33.9	%
U.K. public funded sources		7.0	%		3.4	%		0.2	%		0.0	%		10.6	%
Self-Pay		1.8	%		1.4	%		1.4	%		3.2	%		7.8	%
Other		0.3	%		0.3	%		0.2	%		0.2	%		1.0	%
Total		53.6	%		21.8	%		8.0	%		16.6	%		100.0	%

Liquidity and Capital Resources

Cash provided by continuing operating activities for the nine months ended September 30, 2018 was $288.7 million compared to $272.6 million for the nine months ended September 30, 2017. The increase in cash provided by continuing operating activities was primarily attributable to the growth in same facility operations. Days sales outstanding were 42 days at September 30, 2018 compared to 38 days at December 31, 2017. At September 30, 2018 and December 31, 2017, we had working capital of $100.0 million and $94.2 million, respectively.

Cash used in investing activities for the nine months ended September 30, 2018 was $262.5 million compared to $233.2 million for the nine months ended September 30, 2017. Cash used in investing activities for the nine months ended September 30, 2018 primarily consisted of $250.0 million of cash paid for capital expenditures and $9.4 million of cash paid for real estate. Cash paid for capital expenditures for the nine months ended September 30, 2018 consisted of $53.0 million of routine capital expenditures and $197.0 million of expansion capital expenditures. We define expansion capital expenditures as those that increase the capacity of our facilities or otherwise enhance revenue. Routine or maintenance capital expenditures were 2.3% of revenue for the nine months ended September 30, 2018. Cash used in investing activities for the nine months ended September 30, 2017 primarily consisted of $52.0 million of cash paid for routine capital expenditures, $141.8 million of cash paid for expansion capital expenditures and $33.3 million of cash paid for real estate.

Cash used in financing activities for the nine months ended September 30, 2018 was $40.7 million compared to cash used in financing activities of $27.5 million for the nine months ended September 30, 2017. Cash used in financing activities for the nine months ended September 30, 2018 consisted of principal payments of long-term debt of $31.5 million, common stock withheld for minimum statutory taxes of $2.3 million and other of $7.0 million. Cash used in financing activities for the nine months ended September 30, 2017 primarily consisted of principal payments on long-term debt of $25.9 million and common stock withheld for minimum statutory taxes of $3.3 million.

We had total available cash and cash equivalents of $48.9 million and $67.3 million at September 30, 2018 and December 31, 2017, respectively, of which approximately $16.6 million and $20.4 million was held by our foreign subsidiaries, respectively. Our strategic plan does not require the repatriation of foreign cash in order to fund our operations in the U.S., and it is our current intention to permanently reinvest our foreign cash and cash equivalents outside of the U.S. While we are still evaluating the full impact of the Tax Act on the Company, we expect the substantial reduction of the federal corporate tax rate to benefit our financial results and cash flow in future periods. We believe the change will not result in a U.S. tax liability on those foreign earnings

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which have not previously been repatriated to the U.S., with future foreign earnings potentially not subject to U.S. income taxes when repatriated.

Amended and Restated Senior Credit Facility

We entered into the Senior Secured Credit Facility on April 1, 2011. On December 31, 2012, we entered into the Amended and Restated Credit Agreement which amended and restated the Senior Secured Credit Facility. We have amended the Amended and Restated Credit Agreement from time to time as described in our prior filings with the SEC.

On May 10, 2017, we entered into a Third Repricing Amendment to the Amended and Restated Credit Agreement. The Third Repricing Amendment reduced the Applicable Rate with respect to the Tranche B-1 Facility and the Tranche B-2 Facility from 3.0% to 2.75% in the case of Eurodollar Rate loans and from 2.0% to 1.75% in the case of Base Rate Loans. In connection with the Third Repricing Amendment, we recorded a debt extinguishment charge of $0.8 million, including the discount and write-off of deferred financing costs, which was recorded in debt extinguishment costs in the condensed consolidated statements of income.

On March 22, 2018, we entered into a Second Repricing Facilities Amendment to the Amended and Restated Credit Agreement. The Second Repricing Facilities Amendment (i) replaced the Tranche B-1 Facility and the Tranche B-2 Facility with a new Tranche B-3 Facility and a new Tranche B-4 Facility, respectively, and (ii) reduced the Applicable Rate from 2.75% to 2.50% in the case of Eurodollar Rate loans and reduced the Applicable Rate from 1.75% to 1.50% in the case of Base Rate Loans.

On March 29, 2018, we entered into a Third Repricing Facilities Amendment to the Amended and Restated Credit Agreement. The Third Repricing Facilities Amendment replaced the existing revolving credit facility and TLA Facility with a new revolving credit facility and TLA Facility, respectively. Our line of credit on the revolving credit facility remains at $500.0 million and the Third Repricing Facility Amendment reduced the size of the TLA Facility from $400.0 million to $380.0 million to reflect the then current outstanding principal. The Third Repricing Facilities Amendment reduced the Applicable Rate for the revolving credit facility and the TLA Facility by amending the definition of “Applicable Rate” and replacing the rate table therein with the table set forth below.

In connection with the Repricing Facilities Amendments, we recorded a debt extinguishment charge of $0.9 million, including the discount and write-off of deferred financing costs, which was recorded in debt extinguishment costs in the condensed consolidated statements of income.

We had $494.1 million of availability under the revolving line of credit and had standby letters of credit outstanding of $5.9 million related to security for the payment of claims required by our workers’ compensation insurance program at September 30, 2018. Borrowings under the revolving line of credit are subject to customary conditions precedent to borrowing. The Amended and Restated Credit Agreement requires quarterly term loan principal repayments of our TLA Facility of $4.8 million for December 31, 2018 to December 31, 2019, $7.1 million for March 31, 2020 to December 31, 2020, and $9.5 million for March 31, 2021 to September 30, 2021, with the remaining principal balance of the TLA Facility due on the maturity date of November 30, 2021. We are required to repay the Tranche B-3 Facility in equal quarterly installments of $1.2 million on the last business day of each March, June, September and December, with the outstanding principal balance of the Tranche B-3 Facility due on February 11, 2022. We are required to repay the Tranche B-4 Facility in equal quarterly installments of approximately $2.3 million on the last business day of each March, June, September and December, with the outstanding principal balance of the Tranche B-4 Facility due on February 16, 2023. On December 29, 2017, we made an additional payment of $22.5 million, including $7.7 million on the Tranche B-1 Facility and $14.8 million on the Tranche B-2 Facility. On April 17, 2018, we made an additional payment of $15.0 million, including $5.1 million on the Tranche B-3 Facility and $9.9 million on the Tranche B-4 Facility.

Borrowings under the Amended and Restated Credit Agreement are guaranteed by each of our wholly-owned domestic subsidiaries (other than certain excluded subsidiaries) and are secured by a lien on substantially all of the Company and such subsidiaries’ assets. Borrowings with respect to the TLA Facility and our revolving credit facility (collectively, “Pro Rata Facilities”) under the Amended and Restated Credit Agreement bear interest at a rate tied to our Consolidated Leverage Ratio (defined as consolidated funded debt net of up to $40.0 million of unrestricted and unencumbered cash to consolidated EBITDA, in each case as defined in the Amended and Restated Credit Agreement). The Applicable Rate (as defined in the Amended and Restated Credit Agreement) for the Pro Rata Facilities was 2.50% for Eurodollar Rate Loans (as defined in the Amended and Restated Credit Agreement) and 1.50% for Base Rate Loans (as defined in the Amended and Restated Credit Agreement) at September 30, 2018. Eurodollar Rate Loans with respect to the Pro Rata Facilities bear interest at the Applicable Rate plus the Eurodollar Rate (as defined in the Amended and Restated Credit Agreement) (based upon the LIBOR Rate (as defined in the Amended and Restated Credit Agreement) prior to commencement of the interest rate period). Base Rate Loans with respect to the Pro Rata Facilities bear interest at the Applicable Rate plus the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the Eurodollar Rate plus 1.0%.

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At September 30, 2018, the Pro Rata Facilities bore interest at a rate of LIBOR plus 2.50%. In addition, we are required to pay a commitment fee on undrawn amounts under our revolving credit facility.

The interest rates and the unused line fee on unused commitments related to the Pro Rata Facilities are based upon the following pricing tiers:

Pricing Tier	Consolidated Leverage Ratio	Eurodollar Rate Loans			Base Rate Loans			Commitment Fee
1	< 3.50:1.0		1.50	%		0.50	%		0.20	%
2	>3.50:1.0 but < 4.00:1.0		1.75	%		0.75	%		0.25	%
3	>4.00:1.0 but < 4.50:1.0		2.00	%		1.00	%		0.30	%
4	>4.50:1.0 but < 5.25:1.0		2.25	%		1.25	%		0.35	%
5	>5.25:1.0		2.50	%		1.50	%		0.40	%

Eurodollar Rate Loans with respect to the Tranche B-3 Facility bear interest at the Tranche B-3 Facility Applicable Rate (as defined below) plus the Eurodollar Rate (subject to a floor of 0.75% and based upon the LIBOR Rate prior to commencement of the interest rate period). Base Rate Loans bear interest at the Tranche B-3 Facility Applicable Rate plus the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the Eurodollar Rate plus 1.0%. As used herein, the term “Tranche B-3 Facility Applicable Rate” means, with respect to Eurodollar Rate Loans, 2.50%, and with respect to Base Rate Loans, 1.50%. The Tranche B-4 Facility bears interest as follows: Eurodollar Rate Loans bear interest at the Applicable Rate (as defined in the Amended and Restated Credit Agreement) plus the Eurodollar Rate (subject to a floor of 0.75% and based upon the LIBOR Rate prior to commencement of the interest rate period) and Base Rate Loans bear interest at the Applicable Rate plus the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the Eurodollar Rate plus 1.0%. As used herein, the term “Applicable Rate” means, with respect to Eurodollar Rate Loans, 2.50%, and with respect to Base Rate Loans, 1.50%.

The lenders who provided the Tranche B-3 Facility and Tranche B-4 Facility are not entitled to benefit from our maintenance of its financial covenants under the Amended and Restated Credit Agreement. Accordingly, if we fail to maintain its financial covenants, such failure shall not constitute an event of default under the Amended and Restated Credit Agreement with respect to the Tranche B-3 Facility or Tranche B-4 Facility until and unless the Amended and Restated Senior Credit Facility is accelerated or the commitment of the lenders to make further loans is terminated.

The Amended and Restated Credit Agreement requires us and our subsidiaries to comply with customary affirmative, negative and financial covenants, including a fixed charge coverage ratio, consolidated leverage ratio and consolidated senior secured leverage ratio. We may be required to pay all of our indebtedness immediately if we default on any of the numerous financial or other restrictive covenants contained in any of our material debt agreements. Set forth below is a brief description of such covenants, all of which are subject to customary exceptions, materiality thresholds and qualifications:

a) the affirmative covenants include the following: (i) delivery of financial statements and other customary financial information; (ii) notices of events of default and other material events; (iii) maintenance of existence, ability to conduct business, properties, insurance and books and records; (iv) payment of taxes; (v) lender inspection rights; (vi) compliance with laws; (vii) use of proceeds; (viii) further assurances; and (ix) additional collateral and guarantor requirements.

b) the negative covenants include limitations on the following: (i) liens; (ii) debt (including guaranties); (iii) investments; (iv) fundamental changes (including mergers, consolidations and liquidations); (v) dispositions; (vi) sale leasebacks; (vii) affiliate transactions; (viii) burdensome agreements; (ix) restricted payments; (x) use of proceeds; (xi) ownership of subsidiaries; (xii) changes to line of business; (xiii) changes to organizational documents, legal name, state of formation, form of entity and fiscal year; (xiv) prepayment or redemption of certain senior unsecured debt; and (xv) amendments to certain material agreements. We are generally not permitted to issue dividends or distributions other than with respect to the following: (w) certain tax distributions; (x) the repurchase of equity held by employees, officers or directors upon the occurrence of death, disability or termination subject to cap of $500,000 in any fiscal year and compliance with certain other conditions; (y) in the form of capital stock; and (z) scheduled payments of deferred purchase price, working capital adjustments and similar payments pursuant to the merger agreement or any permitted acquisition.

c) The financial covenants include maintenance of the following:

• the fixed charge coverage ratio may not be less than 1.25:1.00 as of the end of any fiscal quarter;

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• the total leverage ratio may not be greater than the following levels as of the end of each fiscal quarter listed below:

	March 31	June 30	September 30	December 31
2018	6.50x	6.25x	6.00x	6.00x
2019	5.75x	5.75x	5.50x	5.50x
2020	5.25x	5.25x	5.25x	5.00x

• the secured leverage ratio may not be greater than 3.50x as of the end of each fiscal quarter beginning September 30, 2018 and each fiscal quarter thereafter.

At September 30, 2018, we were in compliance with all of the above covenants.

Senior Notes

6.125% Senior Notes Due 2021

On March 12, 2013, we issued $150.0 million of 6.125% Senior Notes due 2021. The 6.125% Senior Notes mature on March 15, 2021 and bear interest at a rate of 6.125% per annum, payable semi-annually in arrears on March 15 and September 15 of each year.

5.125% Senior Notes due 2022

On July 1, 2014, we issued $300.0 million of 5.125% Senior Notes due 2022. The 5.125% Senior Notes mature on July 1, 2022 and bear interest at a rate of 5.125% per annum, payable semi-annually in arrears on January 1 and July 1 of each year.

5.625% Senior Notes due 2023

On February 11, 2015, we issued $375.0 million of 5.625% Senior Notes due 2023. On September 21, 2015, we issued $275.0 million of additional 5.625% Senior Notes. The additional notes formed a single class of debt securities with the 5.625% Senior Notes issued in February 2015. Giving effect to this issuance, we have outstanding an aggregate of $650.0 million of 5.625% Senior Notes. The 5.625% Senior Notes mature on February 15, 2023 and bear interest at a rate of 5.625% per annum, payable semi-annually in arrears on February 15 and August 15 of each year.

6.500% Senior Notes due 2024

On February 16, 2016, we issued $390.0 million of 6.500% Senior Notes due 2024. The 6.500% Senior Notes mature on March 1, 2024 and bear interest at a rate of 6.500% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2016.

The indentures governing the Senior Notes contain covenants that, among other things, limit our ability and the ability of its restricted subsidiaries to: (i) pay dividends, redeem stock or make other distributions or investments; (ii) incur additional debt or issue certain preferred stock; (iii) transfer or sell assets; (iv) engage in certain transactions with affiliates; (v) create restrictions on dividends or other payments by the restricted subsidiaries; (vi) merge, consolidate or sell substantially all of our assets; and (vii) create liens on assets.

The Senior Notes issued by us are guaranteed by each of our subsidiaries that guarantee our obligations under the Amended and Restated Senior Credit Facility. The guarantees are full and unconditional and joint and several.

We may redeem the Senior Notes at its option, in whole or part, at the dates and amounts set forth in the indentures.

9.0% and 9.5% Revenue Bonds

On November 11, 2012, in connection with the acquisition of Park Royal, we assumed debt of $23.0 million. The fair market value of the debt assumed was $25.6 million and resulted in a debt premium balance being recorded as of the acquisition date. The debt consisted of $7.5 million and $15.5 million of Lee County (Florida) Industrial Development Authority Healthcare Facilities Revenue Bonds, Series 2010 with stated interest rates of 9.0% and 9.5%, respectively. The 9.0% bonds in the amount of $7.5 million have a maturity date of December 1, 2030 and require yearly principal payments beginning in 2013. The 9.5% bonds in the amount of $15.5 million have a maturity date of December 1, 2040 and require yearly principal payments beginning in 2031. The principal

42

payments establish a bond-sinking fund to be held with the trustee and shall be sufficient to redeem the principal amounts of the 9.0% and 9.5% Revenue Bonds on their respective maturity dates. At September 30, 2018 and December 31, 2017, $2.3 million was recorded within other assets on the condensed consolidated balance sheets related to the debt service reserve fund requirements. The yearly principal payments, which establish a bond sinking fund, will increase the debt service reserve fund requirements. The bond premium amount of $2.6 million is amortized as a reduction of interest expense over the life of the 9.0% and 9.5% Revenue Bonds using the effective interest method.

On October 22, 2018, we sent a notice of conditional redemption to the trustee of the 9.0% and 9.5% Revenue Bonds indicating that we are conditionally exercising our option to redeem in whole the 9.0% and 9.5% Revenue Bonds on December 1, 2018 at a redemption price equal to the sum of 104% of the principal amount of the 9.0% and 9.5% Revenue Bonds plus accrued and unpaid interest. The redemption is expressly conditional on the Company depositing sufficient moneys with the trustee on or prior to the Redemption Date, which amounts, together with funds already on deposit with the trustee, are sufficient to satisfy the Redemption Price. We expect to borrow the funds needed for the redemption under our revolving line of credit pursuant to the Amended and Restated Credit Agreement.

Contractual Obligations

The following table presents a summary of contractual obligations at September 30, 2018 (dollars in thousands):

	Payments Due by Period
	Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years		Total
Long-term debt (a)	$	206,331	$	575,872	$	2,772,767	$	444,547	$	3,999,517
Operating leases		66,201		119,325		99,178		782,538		1,067,242
Purchase and other obligations (b)		4,132		37,357		1,980		26,342		69,811
Total obligations and commitments	$	276,664	$	732,554	$	2,873,925	$	1,253,427	$	5,136,570

(a) Amounts include required principal and interest payments. The projected interest payments reflect the interest rates in place on our variable-rate debt at September 30, 2018.

(b) Amounts relate to purchase obligations, including capital lease payments.

Off-Balance Sheet Arrangements

At September 30, 2018, we had standby letters of credit outstanding of $5.9 million related to security for the payment of claims as required by our workers’ compensation insurance program.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

Our interest expense is sensitive to changes in market interest rates. Our long-term debt outstanding at September 30, 2018 was composed of $1.5 billion of fixed-rate debt and $1.7 billion of variable-rate debt with interest based on LIBOR plus an applicable margin. A hypothetical 10% increase in interest rates (which would equate to a 0.47% higher rate on our variable rate debt) would decrease our net income and cash flows by $6.5 million on an annual basis based upon our borrowing level at September 30, 2018.

Foreign Currency Risk

The functional currency for our U.K. facilities is the British pound or GBP. Our revenue and earnings are sensitive to changes in the GBP to USD exchange rate from the translation of our earnings into USD at exchange rates that may fluctuate. Based upon the level of our U.K. operations relative to the Company as a whole, a hypothetical 10% change in the exchange rate (which would equate to an increase or decrease in the exchange rate of 0.13) would cause a change in our net income of $9.5 million on an annual basis.

In May 2016, we entered into multiple cross currency swap agreements with an aggregate notional amount of $650.0 million to manage foreign currency exchange risk by effectively converting a portion of our fixed-rate USD denominated senior notes, including the semi-annual interest payments thereunder, to fixed-rate, GBP-denominated debt of £449.3 million. The cross currency swap agreements limit the impact of changes in the exchange rate on our cash flows and leverage.

43

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, our management conducted an evaluation, with the participation of 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) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based on this evaluation, our chief executive officer and chief financial officer have concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the three months ended September 30, 2018 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

44

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are, from time to time, subject to various claims, lawsuits, governmental investigations and regulatory actions, including claims for damages for personal injuries, medical malpractice, overpayments, breach of contract, securities law violations, tort and employment related claims. In these actions, plaintiffs request a variety of damages, including, in some instances, punitive and other types of damages that may not be covered by insurance. In addition, healthcare companies are subject to numerous investigations by various governmental agencies. Certain of our individual facilities have received, and from time to time, other facilities may receive, subpoenas, civil investigative demands, audit reports and other inquiries from, and may be subject to investigation by, federal and state agencies. These investigations can result in repayment obligations, and violations of the False Claims Act can result in substantial monetary penalties and fines, the imposition of a corporate integrity agreement and exclusion from participation in governmental health programs. In addition, the federal False Claims Act permits private parties to bring qui tam, or “whistleblower,” suits against companies that submit false claims for payments to, or improperly retain overpayments from, the government. Some states have adopted similar state whistleblower and false claims provisions.

During the third quarter of 2018, the U.S. Attorney’s Office for the Southern District of West Virginia served subpoenas on seven of our comprehensive treatment centers located in West Virginia requesting various documents from January 2012 to present. The U.S. Attorney’s Office has advised us that the civil aspect of the investigation is a False Claims Act investigation focused on claims submitted by the centers for certain lab services. We are cooperating with the government’s investigation but are not able to quantify any potential liability in connection with this investigation.

Item 1A. Risk Factors

In addition to the other information set forth in this report, an investor should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The risks, as described in in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, are not the only risks facing the Company. Additional risks and uncertainties not currently known to management or that management currently deems immaterial also may materially, adversely affect the Company’s business, financial condition, operating results or cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended September 30, 2018, the Company withheld shares of Company common stock to satisfy employee minimum statutory tax withholding obligations payable upon the vesting of restricted stock, as follows:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 1 – July 31		4,163	$	41.49		—		—
August 1 – August 31		1,044		39.69		—		—
September 1 – September 30		175		37.30		—		—
Total		5,382

45

Item 6. Exhibits

Exhibit No.	Exhibit Description
3.1	Amended and Restated Certificate of Incorporation, as amended. (1)
3.2	Amended and Restated Bylaws of the Company, as amended. (1)
31.1*	Certification of the Chief Executive Officer of the Company pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Chief Financial Officer of the Company pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32*	Certification of Chief Executive Officer and Chief Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document.
101.SCH**	XBRL Taxonomy Extension Schema Document.
101.CAL**	XBRL Taxonomy Calculation Linkbase Document.
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB**	XBRL Taxonomy Labels Linkbase Document.
101.PRE**	XBRL Taxonomy Presentation Linkbase Document.

(1) Incorporated by reference to exhibits filed with the Company’s Current Report on Form 8-K filed May 25, 2017 (File No. 001-35331).

* Filed herewith.

**     The XBRL related information in Exhibit 101 to this quarterly report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

46

SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Acadia Healthcare Company, Inc.
By:	/s/ David M. Duckworth
	David M. Duckworth
	Chief Financial Officer

Dated: November 6, 2018

47

EX-31.1

Exhibit 31.1

CERTIFICATION OF CEO PURSUANT TO

RULE 13a-14(a)/15d-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Joey A. Jacobs, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Acadia Healthcare Company, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 6, 2018

/s/ Joey A. Jacobs

Joey A. Jacobs

Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CFO PURSUANT TO

RULE 13a-14(a)/15d-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David M. Duckworth, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Acadia Healthcare Company, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 6, 2018

/s/ David M. Duckworth

David M. Duckworth

Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATIONS OF CEO AND CFO PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Acadia Healthcare Company, Inc. (the “Company”) for the quarterly period ended September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joey A. Jacobs, Chief Executive Officer of the Company, and I, David M. Duckworth, Chief Financial Officer of the Company, each certify, for the purpose of complying with 18 U.S.C. Section 1350 and Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Date: November 6, 2018

/s/ Joey A. Jacobs

Joey A. Jacobs

Chairman of the Board and Chief Executive Officer

/s/ David M. Duckworth

David M. Duckworth

Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 06, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	ACHC
Entity Registrant Name	Acadia Healthcare Company, Inc.
Entity Central Index Key	0001520697
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		88,256,115

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 48,928	$ 67,290
Accounts receivable, net	345,659	296,925
Other current assets	96,146	107,335
Total current assets	490,733	471,550
Property and equipment, net	3,126,642	3,048,130
Goodwill	2,729,941	2,751,174
Intangible assets, net	91,259	87,348
Deferred tax assets	3,630	3,731
Derivative instrument assets	33,084	12,997
Other assets	54,295	49,572
Total assets	6,529,584	6,424,502
Current liabilities:
Current portion of long-term debt	33,264	34,830
Accounts payable	133,914	102,299
Accrued salaries and benefits	109,151	99,047
Other accrued liabilities	114,414	141,213
Total current liabilities	390,743	377,389
Long-term debt	3,181,962	3,205,058
Deferred tax liabilities	82,269	80,333
Other liabilities	165,663	166,434
Total liabilities	3,820,637	3,829,214
Redeemable noncontrolling interests	28,698	22,417
Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized, no shares issued
Common stock, $0.01 par value; 180,000,000 shares authorized; 87,363,357 and 87,060,114 issued and outstanding at September 30, 2018 and December 31, 2017, respectively	874	871
Additional paid-in capital	2,535,377	2,517,545
Accumulated other comprehensive loss	(440,462)	(374,118)
Retained earnings	584,460	428,573
Total equity	2,680,249	2,572,871
Total liabilities and equity	$ 6,529,584	$ 6,424,502

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	180,000,000	180,000,000
Common stock, shares issued	87,363,357	87,060,114
Common stock, shares outstanding	87,363,357	87,060,114

XML

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenue before provision for doubtful accounts	$ 760,916	$ 728,712	$ 2,268,895	$ 2,143,696
Provision for doubtful accounts		(11,998)		(31,892)
Revenue	760,916	716,714	2,268,895	2,111,804
Salaries, wages and benefits (including equity-based compensation expense of $5,225, $4,175, $19,273 and $19,007, respectively)	417,917	385,562	1,246,186	1,145,578
Professional fees	59,509	53,042	166,988	142,772
Supplies	29,461	28,652	88,958	85,000
Rents and leases	19,866	19,049	60,390	57,455
Other operating expenses	90,464	82,328	265,977	249,161
Depreciation and amortization	39,659	36,442	119,360	105,256
Interest expense, net	46,651	44,515	137,706	130,777
Debt extinguishment costs			940	810
Transaction-related expenses	2,353	5,665	10,008	18,836
Total expenses	705,880	655,255	2,096,513	1,935,645
Income before income taxes	55,036	61,459	172,382	176,159
Provision for income taxes	8,757	15,970	16,339	46,259
Net income	46,279	45,489	156,043	129,900
Net (income) loss attributable to noncontrolling interests	(47)	129	(156)	306
Net income attributable to Acadia Healthcare Company, Inc.	$ 46,232	$ 45,618	$ 155,887	$ 130,206
Earnings per share attributable to Acadia Healthcare Company, Inc. stockholders:
Basic	$ 0.53	$ 0.52	$ 1.79	$ 1.50
Diluted	$ 0.53	$ 0.52	$ 1.78	$ 1.50
Weighted-average shares outstanding:
Basic	87,344	87,017	87,233	86,912
Diluted	87,537	87,172	87,386	87,038

XML

Condensed Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Equity-based compensation expense	$ 5,225	$ 4,175	$ 19,273	$ 19,007

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 46,279	$ 45,489	$ 156,043	$ 129,900
Other comprehensive (loss) income:
Foreign currency translation (loss) gain	(31,959)	69,622	(82,778)	188,744
Gain (loss) on derivative instruments, net of tax of $2.4 million, $(6.7) million, $5.6 million and $(18.8) million, respectively	7,380	(9,402)	16,434	(24,354)
Other comprehensive (loss) income	(24,579)	60,220	(66,344)	164,390
Comprehensive income	21,700	105,709	89,699	294,290
Comprehensive (gain) loss attributable to noncontrolling interests	(47)	129	(156)	306
Comprehensive income attributable to Acadia Healthcare Company, Inc.	$ 21,653	$ 105,838	$ 89,543	$ 294,596

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Loss on derivative instruments, tax	$ 2.4	$ (6.7)	$ 5.6	$ (18.8)

XML

Condensed Consolidated Statement of Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Other Comprehensive Loss [Member]	Earnings (Accumulated Deficit) [Member]
Balance at Dec. 31, 2017	$ 2,572,871	$ 871	$ 2,517,545	$ (374,118)	$ 428,573
Balance, shares at Dec. 31, 2017	87,060,114	87,060
Common stock issued under stock incentive plans	$ 244	$ 3	241
Common stock issued under stock incentive plans, shares	9,889	303
Common stock withheld for minimum statutory taxes	$ (2,516)		(2,516)
Equity-based compensation expense	19,273		19,273
Other comprehensive loss	(66,344)			(66,344)
Other	834		834
Net income attributable to Acadia Healthcare Company, Inc.	155,887				155,887
Balance at Sep. 30, 2018	$ 2,680,249	$ 874	$ 2,535,377	$ (440,462)	$ 584,460
Balance, shares at Sep. 30, 2018	87,363,357	87,363

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net income	$ 156,043	$ 129,900
Adjustments to reconcile net income to net cash provided by continuing operating activities:
Depreciation and amortization	119,360	105,256
Amortization of debt issuance costs	7,763	7,340
Equity-based compensation expense	19,273	19,007
Deferred income taxes	(1,738)	29,416
Debt extinguishment costs	940	810
Other	3,025	10,672
Change in operating assets and liabilities:
Accounts receivable, net	(43,252)	(28,681)
Other current assets	3,021	26,099
Other assets	3,868	(566)
Accounts payable and other accrued liabilities	9,230	(26,381)
Accrued salaries and benefits	11,049	(7,937)
Other liabilities	149	7,677
Net cash provided by continuing operating activities	288,731	272,612
Net cash used in discontinued operating activities	(2,548)	(1,261)
Net cash provided by operating activities	286,183	271,351
Investing activities:
Cash paid for capital expenditures	(249,989)	(193,817)
Cash paid for real estate acquisitions	(9,391)	(33,297)
Other	(3,114)	(6,062)
Net cash used in investing activities	(262,494)	(233,176)
Financing activities:
Principal payments on long-term debt	(31,492)	(25,913)
Common stock withheld for minimum statutory taxes, net	(2,272)	(3,278)
Other	(6,973)	1,649
Net cash used in financing activities	(40,737)	(27,542)
Effect of exchange rate changes on cash	(1,314)	7,965
Net (decrease) increase in cash and cash equivalents	(18,362)	18,598
Cash and cash equivalents at beginning of the period	67,290	57,063
Cash and cash equivalents at end of the period	$ 48,928	$ 75,661

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Description of Business and Basis of Presentation

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Description of Business and Basis of Presentation

1. Description of Business and Basis of Presentation

Description of Business

Acadia Healthcare Company, Inc. (the “Company”) develops and operates inpatient psychiatric facilities, residential treatment centers, group homes, substance abuse facilities and facilities providing outpatient behavioral healthcare services to serve the behavioral health and recovery needs of communities throughout the United States (“U.S.”), the United Kingdom (“U.K.”) and Puerto Rico. At September 30, 2018, the Company operated 586 behavioral healthcare facilities with approximately 18,000 beds in 40 states, the U.K. and Puerto Rico.

Basis of Presentation

The business of the Company is conducted through limited liability companies, partnerships and C-corporations. The Company’s consolidated financial statements include the accounts of the Company and all subsidiaries controlled by the Company through its’ direct or indirect ownership of majority interests and exclusive rights granted to the Company as the controlling member of an entity. All intercompany accounts and transactions have been eliminated in consolidation.

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation of our financial position and results of operations have been included. The Company’s fiscal year ends on December 31 and interim results are not necessarily indicative of results for a full year or any other interim period. The condensed consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements as of that date. The information contained in these condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2018. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Certain reclassifications have been made to prior years to conform to the current year presentation.

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Recently Issued Accounting Standards

9 Months Ended

Sep. 30, 2018

Accounting Changes And Error Corrections [Abstract]

Recently Issued Accounting Standards

2. Recently Issued Accounting Standards

In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). ASU 2017-12 amends the hedge accounting model to enable entities to better portray the economics of their risk management activities in the financial statements and simplifies the application of hedge accounting in certain situations. ASU 2017-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. Management is evaluating the impact of ASU 2017-12 on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, “Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 simplifies the measurement of goodwill by eliminating the requirement to calculate the implied fair value of goodwill (step 2 of the current impairment test) to measure the goodwill impairment charge. Instead, entities will record impairment charges based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company has elected to early adopt ASU 2017-04 on January 1, 2018, and there was no significant impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 addresses treatment of how certain cash receipts and cash payments are presented and classified in the statement of cash flows to reduce the diversity in practice. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted ASU 2016-15 on January 1, 2018. There is no significant impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02’s core principle is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Additionally, ASU 2016-02 would permit both public and nonpublic organizations to adopt the new standard early. Management believes the primary effect of adopting the new standard will be to record right-of-use assets and obligations for current operating leases. Management is continuing to evaluate the impact ASU 2016-02 will have on the Company’s consolidated financial statements, internal controls, policies and procedures.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 amends how entities recognize, measure, present and disclose certain financial assets and financial liabilities. It requires entities to measure equity investments (except for those accounted for under equity method) at fair value and recognize any changes in fair value in net income. ASU 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted ASU 2016-01 on January 1, 2018. There was no significant impact on the Company’s consolidated financial statements.

In May 2014, the FASB and the International Accounting Standards Board issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company adopted ASU 2014-09 on January 1, 2018 as described in Note 3 – Revenue. 

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Revenue

9 Months Ended

Sep. 30, 2018

Revenue From Contract With Customer [Abstract]

Revenue

3. Revenue

ASU 2014-09 requires companies to exercise more judgment and recognize revenue using a five-step process. The Company adopted ASU 2014-09 using the modified retrospective method for all contracts effective January 1, 2018 and is using a portfolio approach to group contracts with similar characteristics and analyze historical cash collections trends. Modified retrospective adoption requires entities to apply the standard retrospectively to the most current period presented in the financial statements, requiring the cumulative effect of the retrospective application as an adjustment to the opening balance of retained earnings at the date of initial application. Prior periods have not been adjusted. No cumulative-effect adjustment in retained earnings was recorded as the adoption of ASU 2014-09 did not significantly impact the Company’s reported historical revenue.

As a result of certain changes required by ASU 2014-09, the majority of the Company’s provision for doubtful accounts are recorded as a direct reduction to revenue instead of being presented as a separate line item on the condensed consolidated statements of income. The adoption of ASU 2014-09 has no impact on the Company’s accounts receivable as it was historically recorded net of allowance for doubtful accounts and contractual adjustments, and the Company has eliminated the presentation of allowance for doubtful accounts on the condensed consolidated balance sheets. The adoption of ASU 2014-09 did not have a significant impact on the Company’s condensed consolidated statements of income. The impact of adopting ASU 2014-09 on the condensed consolidated statements of income for the three and nine months ended September 30, 2018 was as follows (in thousands):

	Three Months Ended September 30, 2018					Nine Months Ended September 30, 2018
	As Reported		Prior to Adopting ASU 2014-09			As Reported		Prior to Adopting ASU 2014-09
Revenue before provision for doubtful accounts	$	760,916	$	772,380		$	2,268,895	$	2,298,084
Provision for doubtful accounts		—		(11,464	)		—		(29,189	)
Revenue	$	760,916	$	760,916		$	2,268,895	$	2,268,895

The Company evaluated the nature, amount, timing and uncertainty of revenue and cash flows using the five-step process provided within ASU 2014-09.

Revenue is primarily derived from services rendered to patients for inpatient psychiatric and substance abuse care, outpatient psychiatric care and adolescent residential treatment. The services provided by the Company have no fixed duration and can be terminated by the patient or the facility at any time, and therefore, each treatment is its own stand-alone contract.

Services ordered by a healthcare provider in an episode of care are not separately identifiable and therefore have been combined into a single performance obligation for each contract. The Company recognizes revenue as its performance obligations are completed. The performance obligation is satisfied over time as the customer simultaneously receives and consumes the benefits ofthe healthcare services provided. For inpatient services, the Company recognizes revenue equally over the patient stay on a daily basis. For outpatient services, the Company recognizes revenue equally over the number of treatments provided in a single episode of care. Typically, patients and third-party payors are billed within several days of the service being performed or the patient being discharged, and payments are due based on contract terms.

As our performance obligations relate to contracts with a duration of one year or less, the Company elected the optional exemption in ASC 606-10-50-14(a). Therefore, the Company is not required to disclose the transaction price for the remaining performance obligations at the end of the reporting period or when the Company expects to recognize the revenue. The Company has minimal unsatisfied performance obligations at the end of the reporting period as our patients typically are under no obligation to remain admitted in our facilities.

The Company disaggregates revenue from contracts with customers by service type and by payor within each of the Company’s segments.

U.S. Facilities

The Company’s facilities in the United States (the “U.S. Facilities”) and services provided by the U.S. Facilities can generally be classified into the following categories: acute inpatient psychiatric facilities; specialty treatment facilities; residential treatment centers; and outpatient community-based services.

Acute inpatient psychiatric facilities. Acute inpatient psychiatric facilities provide a high level of care in order to stabilize patients that are either a threat to themselves or to others. The acute setting provides 24-hour observation, daily intervention and monitoring by psychiatrists.

Specialty treatment facilities. Specialty treatment facilities include residential recovery facilities, eating disorder facilities and comprehensive treatment centers. The Company provides a comprehensive continuum of care for adults with addictive disorders and co-occurring mental disorders. Inpatient, including detoxification and rehabilitation, partial hospitalization and outpatient treatment programs give patients access to the least restrictive level of care.

Residential treatment centers. Residential treatment centers treat patients with behavioral disorders in a non-hospital setting, including outdoor programs. The facilities balance therapy activities with social, academic and other activities.

Outpatient community-based services. Outpatient community-based programs are designed to provide therapeutic treatment to children and adolescents who have a clinically-defined emotional, psychiatric or chemical dependency disorder while enabling the youth to remain at home and within their community.

The table below presents total U.S. revenue attributed to each category (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Acute inpatient psychiatric facilities	$	208,885	$	187,497	$	608,311	$	566,173
Specialty treatment facilities		198,107		183,290		575,536		543,079
Residential treatment centers		72,351		72,677		218,041		213,300
Outpatient community-based services		9,283		10,214		30,613		32,763
Revenue	$	488,626	$	453,678	$	1,432,501	$	1,355,315

The Company receives payments from the following sources for services rendered in our U.S. Facilities: (i) state governments under their respective Medicaid and other programs; (ii) commercial insurers; (iii) the federal government under the Medicare program administered by the Centers for Medicare and Medicaid Services (“CMS”); and (iv) individual patients and clients. As the period between the time of service and time of payment is typically one year or less, the Company elected the practical expedient under ASC 606-10-32-18 and did not adjust for the effects of a significant financing component.

The Company determines the transaction price based on established billing rates reduced by contractual adjustments provided to third-party payors, discounts provided to uninsured patients and implicit price concessions. Contractual adjustments and discounts are based on contractual agreements, discount policies and historical experience. Implicit price concessions are based on historical collection experience. Most of our U.S. Facilities have contracts containing variable consideration. However, it is unlikely a significant reversal of revenue will occur when the uncertainty is resolved, and therefore, the Company has included the variable consideration in the estimated transaction price. Subsequent changes resulting from a patient’s ability to pay are recorded as bad debt expense, which is included as a component of other operating expenses in the condensed consolidating statements of income. Bad debt expense for the three and nine months ended September 30, 2018 was not significant.

The Company derives a significant portion of its revenue from Medicare, Medicaid and other payors that receive discounts from established billing rates. The Medicare and Medicaid regulations and various managed care contracts under which these discounts must be calculated are complex, subject to interpretation and adjustment, and may include multiple reimbursement mechanisms for different types of services provided in the Company’s inpatient facilities and cost settlement provisions. Management estimates the transaction price on a payor-specific basis given its interpretation of the applicable regulations or contract terms. The services authorized and provided and related reimbursement are often subject to interpretation that could result in payments that differ from the Company’s estimates. Additionally, updated regulations and contract renegotiations occur frequently, necessitating regular review and assessment of the estimation process by management.

Settlements under cost reimbursement agreements with third-party payors are estimated and recorded in the period in which the related services are rendered and are adjusted in future periods as final settlements are determined. Final determination of amounts earned under the Medicare and Medicaid programs often occurs in subsequent years because of audits by such programs, rights of appeal and the application of numerous technical provisions. In the opinion of management, adequate provision has been made for any adjustments and final settlements. However, there can be no assurance that any such adjustments and final settlements will not have a material effect on the Company’s financial condition or results of operations. The Company’s cost report receivables were $10.9 million at both September 30, 2018 and December 31, 2017, respectively, and were included in other current assets in the condensed consolidated balance sheets. Management believes that these receivables are properly stated and are not likely to be settled for a significantly different amount. The net adjustments to estimated cost report settlements were not significant for the three and nine months ended September 30, 2018.

Management believes that we comply in all material respects with applicable laws and regulations and is not aware of any material pending or threatened investigations involving allegations of wrongdoing. Compliance with such laws and regulations can be subject to future government review and interpretation, as well as significant regulatory action including fines, penalties and exclusion from the Medicare and Medicaid programs.

The Company provides care without charge to patients who are financially unable to pay for the healthcare services they receive based on Company policies and federal and state poverty thresholds. Such amounts determined to qualify as charity care are not reported as revenue. The cost of providing charity care services were $1.0 million and $1.3 million for the three months ended September 30, 2018 and 2017, respectively. The cost of providing charity care services were $3.8 million and $4.2 million for the nine months ended September 30, 2018 and 2017, respectively. The estimated cost of charity care services was determined using a ratio of cost to gross charges determined from our most recently filed Medicare cost reports and applying that ratio to the gross charges associated with providing charity care for the period.

The following table presents revenue generated by each payor type (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
Commercial	$	146,439	$	142,870		$	431,337	$	431,818
Medicare		73,528		73,593			210,307		212,992
Medicaid		229,390		199,592			668,236		587,705
Self-Pay		33,559		43,685			103,845		130,928
Other		5,710		5,936			18,776		23,758
Revenue before provision for doubtful accounts		488,626		465,676			1,432,501		1,387,201
Provision for doubtful accounts		—		(11,998	)		—		(31,886	)
Revenue	$	488,626	$	453,678		$	1,432,501	$	1,355,315

U.K. Facilities

The Company’s facilities located in the United Kingdom (the “U.K. Facilities”) and services provided by the U.K. Facilities can generally be classified into the following categories: healthcare facilities, education and children’s services, adult care facilities and elderly care facilities.

Healthcare facilities. Healthcare facilities provide psychiatric treatment and nursing for sufferers of mental disorders, including for patients whose risk of harm to others and risk of escape from hospitals cannot be managed safely within other mental health settings. In order to manage the risks involved with treating patients, the facility is managed through the application of a range of security measures depending on the level of dependency and risk exhibited by the patient.

Education and children’s services. Education and children’s services provide specialist education for children and young people with special educational needs, including autism, Asperger’s Syndrome, social, emotional and mental health, and specific learning difficulties, such as dyslexia. The division also offers standalone children’s homes for children that require 52-week residential care to support complex and challenging behavior and fostering services.

Adult care facilities. Adult care focuses on care of individuals with a variety of learning difficulties, mental health illnesses and adult autism spectrum disorders. It also includes long-term, short-term and respite nursing care to high-dependency elderly individuals who are physically frail or suffering from dementia. Care is provided in a number of settings, including in residential care homes and through supported living.

The table below presents total U.K. revenue attributed to each category (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Healthcare facilities	$	150,871	$	146,264	$	464,731	$	419,549
Education and Children’s Services		46,966		42,441		145,609		124,337
Adult Care facilities		74,453		74,331		226,054		212,603
Revenue	$	272,290	$	263,036	$	836,394	$	756,489

The Company receives payments from approximately 500 public funded sources in the U.K. (including the National Health Service (“NHS”), Clinical Commissioning Groups (“CCGs”) and local authorities in England, Scotland and Wales) and individual patients and clients. The Company determines the transaction price based on established billing rates by payor and is reduced by implicit price concessions. Implicit price concessions are insignificant in our U.K. Facilities. There is no significant variable consideration in our U.K. Facilities’ contracts. As the period between the time of service and time of payment is typically one year or less, the Company elected the practical expedient under ASC 606-10-32-18 and did not adjust for the effects of a significant financing component.

The following table presents revenue generated by each payor type (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
U.K. public funded sources	$	245,919	$	236,778	$	756,094	$	678,623
Self-Pay		26,159		24,572		78,499		70,662
Other		212		1,686		1,801		7,210
Revenue before provision for doubtful accounts		272,290		263,036		836,394		756,495
Provision for doubtful accounts		—		—		—		(6	)
Revenue	$	272,290	$	263,036	$	836,394	$	756,489

The Company’s contract liabilities primarily consist of unearned revenue in our U.K. Facilities due to the timing of payments received mainly in our education and children’s services and healthcare facilities. Contract liabilities are included in other accrued liabilities on the condensed consolidated balance sheets. A summary of the activity in unearned revenue in the U.K. Facilities is as follows (in thousands):

Balance at December 31, 2017	$	30,812
Payments received		126,506
Revenue recognized		(124,894	)
Foreign currency translation loss		(1,687	)
Balance at September 30, 2018	$	30,737

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Earnings Per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

4. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator:
Net income attributable to Acadia Healthcare    Company, Inc.	$	46,232	$	45,618	$	155,887	$	130,206
Denominator:
Weighted average shares outstanding for basic    earnings per share		87,344		87,017		87,233		86,912
Effect of dilutive instruments		193		155		153		126
Shares used in computing diluted earnings per    common share		87,537		87,172		87,386		87,038
Earnings per share attributable to Acadia Healthcare    Company, Inc. stockholders:
Basic	$	0.53	$	0.52	$	1.79	$	1.50
Diluted	$	0.53	$	0.52	$	1.78	$	1.50

Approximately 1.6 million and 1.0 million shares of common stock issuable upon exercise of outstanding stock option awards were excluded from the calculation of diluted earnings per share for the three months ended September 30, 2018 and 2017, respectively, because their effect would have been anti-dilutive. Approximately 1.9 million and 1.5 million shares of common stock issuable upon exercise of outstanding stock option awards were excluded from the calculation of diluted earnings per share for the nine months ended September 30, 2018 and 2017, respectively, because their effect would have been anti-dilutive.

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Other Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Other Intangible Assets

5. Other Intangible Assets

Other identifiable intangible assets and related accumulated amortization consisted of the following at September 30, 2018 and December 31, 2017 (in thousands):

	Gross Carrying Amount				Accumulated Amortization
	September 30, 2018		December 31, 2017		September 30, 2018			December 31, 2017
Intangible assets subject to amortization:
Contract intangible assets	$	2,100	$	2,100	$	(2,100	)	$	(2,100	)
Non-compete agreements		1,147		1,147		(1,147	)		(1,147	)
		3,247		3,247		(3,247	)		(3,247	)
Intangible assets not subject to amortization:
Licenses and accreditations		12,766		12,266		—			—
Trade names		61,675		60,586		—			—
Certificates of need		16,818		14,496		—			—
		91,259		87,348		—			—
Total	$	94,506	$	90,595	$	(3,247	)	$	(3,247	)

All the Company’s defined-lived intangible assets are fully amortized. The Company’s licenses and accreditations, trade names and certificate of need intangible assets have indefinite lives and are, therefore, not subject to amortization.

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Property and Equipment

9 Months Ended

Sep. 30, 2018

Property Plant And Equipment [Abstract]

Property and Equipment

6. Property and Equipment

Property and equipment consists of the following at September 30, 2018 and December 31, 2017 (in thousands):

	September 30, 2018			December 31, 2017
Land	$	444,579		$	450,342
Building and improvements		2,443,980			2,370,918
Equipment		434,205			400,596
Construction in progress		249,001			173,693
		3,571,765			3,395,549
Less accumulated depreciation		(445,123	)		(347,419	)
Property and equipment, net	$	3,126,642		$	3,048,130

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Long-Term Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Long-Term Debt

7. Long-Term Debt

Long-term debt consisted of the following (in thousands):

	September 30, 2018			December 31, 2017
Amended and Restated Senior Credit Facility:
Senior Secured Term A Loans	$	370,500		$	380,000
Senior Secured Term B Loans		1,376,408			1,398,400
Senior Secured Revolving Line of Credit		—			—
6.125% Senior Notes due 2021		150,000			150,000
5.125% Senior Notes due 2022		300,000			300,000
5.625% Senior Notes due 2023		650,000			650,000
6.500% Senior Notes due 2024		390,000			390,000
9.0% and 9.5% Revenue Bonds		21,920			21,920
Less: unamortized debt issuance costs, discount and    premium		(43,602	)		(50,432	)
		3,215,226			3,239,888
Less: current portion		(33,264	)		(34,830	)
Long-term debt	$	3,181,962		$	3,205,058

Amended and Restated Senior Credit Facility

The Company entered into a senior secured credit facility (the “Senior Secured Credit Facility”) on April 1, 2011. On December 31, 2012, the Company entered into an Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) which amended and restated the Senior Secured Credit Facility (the “Amended and Restated Senior Credit Facility”). The Company has amended the Amended and Restated Credit Agreement from time to time as described in the Company’s prior filings with the SEC.

On May 10, 2017, the Company entered into a Third Repricing Amendment (the “Third Repricing Amendment”) to the Amended and Restated Credit Agreement. The Third Repricing Amendment reduced the Applicable Rate with respect to the Term Loan B facility Tranche B-1 (the “Tranche B-1 Facility”) and the Term Loan B facility Tranche B-2 (the “Tranche B-2 Facility”) from 3.00% to 2.75% in the case of Eurodollar Rate loans and from 2.00% to 1.75% in the case of Base Rate Loans. In connection with the Third Repricing Amendment, the Company recorded a debt extinguishment charge of $0.8 million, including the discount and write-off of deferred financing costs, which was recorded in debt extinguishment costs in the condensed consolidated statements of income.

On March 22, 2018, the Company entered into a Second Repricing Facilities Amendment (the “Second Repricing Facilities Amendment”) to the Amended and Restated Credit Agreement. The Second Repricing Facilities Amendment (i) replaced the Tranche B-1 Facility and the Tranche B-2 Facility with a new Term Loan B facility Tranche B-3 (the “Tranche B-3 Facility”) and a new Term Loan B facility Tranche B-4 (the “Tranche B-4 Facility”), respectively, and (ii) reduced the Applicable Rate from 2.75% to 2.50% in the case of Eurodollar Rate loans and reduced the Applicable Rate from 1.75% to 1.50% in the case of Base Rate Loans.

On March 29, 2018, the Company entered into a Third Repricing Facilities Amendment to the Amended and Restated Credit Agreement (the “Third Repricing Facilities Amendment”, and together with the Second Repricing Facilities Amendment, the “Repricing Facilities Amendments”). The Third Repricing Facilities Amendment replaced the existing revolving credit facility and Term Loan A facility (“TLA Facility”) with a new revolving credit facility and TLA Facility, respectively. The Company’s line ofcredit on its revolving credit facility remains at $500.0 million and the Third Repricing Facility Amendment reduced the size of the TLA Facility from $400.0 million to $380.0 million to reflect the then current outstanding principal. The Third Repricing Facilities Amendment reduced the Applicable Rate by 25 basis points for the revolving credit facility and the TLA Facility by amending the definition of “Applicable Rate.”

In connection with the Repricing Facilities Amendments, the Company recorded a debt extinguishment charge of $0.9 million, including the discount and write-off of deferred financing costs, which was recorded in debt extinguishment costs in the condensed consolidated statements of income.

The Company had $494.1 million of availability under the revolving line of credit and had standby letters of credit outstanding of $5.9 million related to security for the payment of claims required by its workers’ compensation insurance program at September 30, 2018. Borrowings under the revolving line of credit are subject to customary conditions precedent to borrowing. The Amended and Restated Credit Agreement requires quarterly term loan principal repayments of our TLA Facility of $4.8 million for December 31, 2018 to December 31, 2019, $7.1 million for March 31, 2020 to December 31, 2020, and $9.5 million for March 31, 2021 to September 30, 2021, with the remaining principal balance of the TLA Facility due on the maturity date of November 30, 2021. The Company is required to repay the Tranche B-3 Facility in equal quarterly installments of $1.2 million on the last business day of each March, June, September and December, with the outstanding principal balance of the Tranche B-3 Facility due on February 11, 2022. The Company is required to repay the Tranche B-4 Facility in equal quarterly installments of approximately $2.3 million on the last business day of each March, June, September and December, with the outstanding principal balance of the Tranche B-4 Facility due on February 16, 2023. On December 29, 2017, the Company made an additional payment of $22.5 million, including $7.7 million on the Tranche B-1 Facility and $14.8 million on the Tranche B-2 Facility. On April 17, 2018, the Company made an additional payment of $15.0 million, including $5.1 million on the Tranche B-3 Facility and $9.9 million on the Tranche B-4 Facility.

Borrowings under the Amended and Restated Senior Credit Facility are guaranteed by each of the Company’s wholly-owned domestic subsidiaries (other than certain excluded subsidiaries) and are secured by a lien on substantially all of the assets of the Company and such subsidiaries. Borrowings with respect to the TLA Facility and the Company’s revolving credit facility (collectively, “Pro Rata Facilities”) under the Amended and Restated Credit Agreement bear interest at a rate tied to Acadia’s Consolidated Leverage Ratio (defined as consolidated funded debt net of up to $40.0 million of unrestricted and unencumbered cash to consolidated EBITDA, in each case as defined in the Amended and Restated Credit Agreement). The Applicable Rate (as defined in the Amended and Restated Credit Agreement) for the Pro Rata Facilities was 2.50% for Eurodollar Rate Loans (as defined in the Amended and Restated Credit Agreement) and 1.50% for Base Rate Loans (as defined in the Amended and Restated Credit Agreement) at September 30, 2018. Eurodollar Rate Loans with respect to the Pro Rata Facilities bear interest at the Applicable Rate plus the Eurodollar Rate (as defined in the Amended and Restated Credit Agreement) (based upon the LIBOR Rate (as defined in the Amended and Restated Credit Agreement) prior to commencement of the interest rate period). Base Rate Loans with respect to the Pro Rata Facilities bear interest at the Applicable Rate plus the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the Eurodollar Rate plus 1.00%. At September 30, 2018, the Pro Rata Facilities bore interest at a rate of LIBOR plus 2.50%. In addition, the Company is required to pay a commitment fee on undrawn amounts under the revolving line of credit.

The Amended and Restated Credit Agreement requires the Company and its subsidiaries to comply with customary affirmative, negative and financial covenants, including a fixed charge coverage ratio, consolidated leverage ratio and senior secured leverage ratio. The Company may be required to pay all of its indebtedness immediately if it defaults on any of the numerous financial or other restrictive covenants contained in any of its material debt agreements. At September 30, 2018, the Company was in compliance with such covenants.

Senior Notes

6.125% Senior Notes due 2021

On March 12, 2013, the Company issued $150.0 million of 6.125% Senior Notes due 2021 (the “6.125% Senior Notes”). The 6.125% Senior Notes mature on March 15, 2021 and bear interest at a rate of 6.125% per annum, payable semi-annually in arrears on March 15 and September 15 of each year.

5.125% Senior Notes due 2022

On July 1, 2014, the Company issued $300.0 million of 5.125% Senior Notes due 2022 (the “5.125% Senior Notes”). The 5.125% Senior Notes mature on July 1, 2022 and bear interest at a rate of 5.125% per annum, payable semi-annually in arrears on January 1 and July 1 of each year.

5.625% Senior Notes due 2023

On February 11, 2015, the Company issued $375.0 million of 5.625% Senior Notes due 2023 (the “5.625% Senior Notes”). On September 21, 2015, the Company issued $275.0 million of additional 5.625% Senior Notes. The additional notes formed a single class of debt securities with the 5.625% Senior Notes issued in February 2015. Giving effect to this issuance, the Company has outstanding an aggregate of $650.0 million of 5.625% Senior Notes. The 5.625% Senior Notes mature on February 15, 2023 and bear interest at a rate of 5.625% per annum, payable semi-annually in arrears on February 15 and August 15 of each year.

6.500% Senior Notes due 2024

On February 16, 2016, the Company issued $390.0 million of 6.500% Senior Notes due 2024 (the “6.500% Senior Notes”). The 6.500% Senior Notes mature on March 1, 2024 and bear interest at a rate of 6.500% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2016.

The indentures governing the 6.125% Senior Notes, 5.125% Senior Notes, 5.625% Senior Notes and 6.500% Senior Notes (together, the “Senior Notes”) contain covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to: (i) pay dividends, redeem stock or make other distributions or investments; (ii) incur additional debt or issue certain preferred stock; (iii) transfer or sell assets; (iv) engage in certain transactions with affiliates; (v) create restrictions on dividends or other payments by the restricted subsidiaries; (vi) merge, consolidate or sell substantially all of the Company’s assets; and (vii) create liens on assets.

The Senior Notes issued by the Company are guaranteed by each of the Company’s subsidiaries that guarantee the Company’s obligations under the Amended and Restated Senior Credit Facility. The guarantees are full and unconditional and joint and several.

The Company may redeem the Senior Notes at its option, in whole or part, at the dates and amounts set forth in the indentures.

9.0% and 9.5% Revenue Bonds

On November 11, 2012, in connection with the acquisition of The Pavilion at HealthPark, LLC (“Park Royal”), the Company assumed debt of $23.0 million. The fair market value of the debt assumed was $25.6 million and resulted in a debt premium balance being recorded as of the acquisition date. The debt consisted of $7.5 million and $15.5 million of Lee County (Florida) Industrial Development Authority Healthcare Facilities Revenue Bonds, Series 2010 with stated interest rates of 9.0% and 9.5% (“9.0% and 9.5% Revenue Bonds”), respectively. The 9.0% bonds in the amount of $7.5 million have a maturity date of December 1, 2030 and require yearly principal payments beginning in 2013. The 9.5% bonds in the amount of $15.5 million have a maturity date of December 1, 2040 and require yearly principal payments beginning in 2031. The principal payments establish a bond sinking fund to be held with the trustee and shall be sufficient to redeem the principal amounts of the 9.0% and 9.5% Revenue Bonds on their respective maturity dates. At September 30, 2018 and December 31, 2017, $2.3 million was recorded within other assets on the condensed consolidated balance sheets related to the debt service reserve fund requirements. The yearly principal payments, which establish a bond sinking fund, will increase the debt service reserve fund requirements. The bond premium amount of $2.6 million is amortized as a reduction of interest expense over the life of the revenue bonds using the effective interest method.

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Equity-Based Compensation

9 Months Ended

Sep. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity-Based Compensation

8. Equity-Based Compensation

Equity Incentive Plans

The Company issues stock-based awards, including stock options, restricted stock and restricted stock units, to certain officers, employees and non-employee directors under the Acadia Healthcare Company, Inc. Incentive Compensation Plan (the “Equity Incentive Plan”). At September 30, 2018, a maximum of 8,200,000 shares of the Company’s common stock were authorized for issuance as stock options, restricted stock and restricted stock units or other share-based compensation under the Equity Incentive Plan, of which 3,233,738 were available for future grant. Stock options may be granted for terms of up to ten years. The Company recognizes expense on all share-based awards on a straight-line basis over the requisite service period of the entire award. Grants to employees generally vest in annual increments of 25% each year, commencing one year after the date of grant. The exercise prices of stock options are equal to the most recent closing price of the Company’s common stock on the date of grant.

The Company recognized $5.2 million and $4.2 million in equity-based compensation expense for the three months ended September 30, 2018 and 2017, respectively, and $19.3 million and $19.0 million for the nine months ended September 30, 2018 and 2017. At September 30, 2018, there was $47.8 million of unrecognized compensation expense related to unvested options, restricted stock and restricted stock units, which is expected to be recognized over the remaining weighted average vesting period of 1.2 years.

At September 30, 2018, there were no warrants outstanding. The Company recognized a deferred income tax benefit of $1.4 million and $1.5 million for the three months ended September 30, 2018 and 2017, respectively, related to equity-based compensation expense. The Company recognized a deferred income tax benefit of $5.2 million and $7.3 million for the nine months ended September 30, 2018 and 2017, respectively, related to equity-based compensation expense.

Stock Options

Stock option activity during 2017 and 2018 was as follows (aggregate intrinsic value in thousands):

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Options outstanding at January 1, 2017		1,000,946		$	49.42		7.80	$	8,166
Options granted		259,300			42.25		9.30		205
Options exercised		(87,367	)		25.92	N/A			1,636
Options cancelled		(198,313	)		54.71	N/A		N/A
Options outstanding at December 31, 2017		974,566			47.89		7.46		3,802
Options granted		353,800			37.36		9.42		475
Options exercised		(9,889	)		24.67	N/A			165
Options cancelled		(102,787	)		51.23	N/A		N/A
Options outstanding at September 30, 2018		1,215,690		$	44.69		7.43	$	3,536
Options exercisable at December 31, 2017		405,634		$	41.20		6.05	$	3,549
Options exercisable at September 30, 2018		543,139		$	44.65		5.87	$	2,835

Fair values are estimated using the Black-Scholes option pricing model. The following table summarizes the grant-date fair value of options and the assumptions used to develop the fair value estimates for options granted during the nine months ended September 30, 2018 and year ended December 31, 2017:

	September 30, 2018			December 31, 2017
Weighted average grant-date fair value of options	$	13.61		$	14.39
Risk-free interest rate		2.2	%		2.0	%
Expected volatility		37	%		33	%
Expected life (in years)		5.0			5.5

The Company’s estimate of expected volatility for stock options is based upon the volatility of our stock price over the expected life of the award. The risk-free interest rate is the approximate yield on U. S. Treasury Strips having a life equal to the expected option life on the date of grant. The expected life is an estimate of the number of years an option will be held before it is exercised.

Other Stock-Based Awards

Restricted stock activity during 2017 and 2018 was as follows:

	Number of Shares			Weighted Average Grant-Date Fair Value
Unvested at January 1, 2017		844,419		$	55.76
Granted		404,224			42.38
Cancelled		(145,981	)		55.03
Vested		(292,794	)		53.07
Unvested at December 31, 2017		809,868		$	50.19
Granted		441,837			36.51
Cancelled		(71,067	)		48.36
Vested		(283,077	)		53.24
Unvested at September 30, 2018		897,561		$	42.64

Restricted stock unit activity during 2017 and 2018 was as follows:

	Number of Units			Weighted Average Grant-Date Fair Value
Unvested at January 1, 2017		273,599		$	59.68
Granted		219,840			43.23
Cancelled		—			—
Vested		(132,530	)		58.67
Unvested at December 31, 2017		360,909		$	50.04
Granted		285,358			42.26
Cancelled		(87,173	)		55.44
Vested		(72,983	)		49.64
Unvested at September 30, 2018		486,111		$	44.52

Restricted stock awards are time-based vesting awards that vest over a period of three or four years and are subject to continuing service of the employee or non-employee director over the ratable vesting periods. The fair values of the restricted stock awards were determined based on the closing price of the Company’s common stock on the trading date immediately prior to the grant date.

Restricted stock units are granted to employees and are subject to Company performance compared to pre-established targets and, in the case of the 2018 awards, Company performance compared to peers. In addition to Company performance, these performance-based restricted stock units are subject to the continuing service of the employee during the two- or three-year period covered by the awards. The performance condition for the restricted stock units is based on the Company’s achievement of annually established targets for diluted earnings per share. Additionally, the number of shares issuable pursuant to restricted stock units granted during 2018 is subject to adjustment based on the Company’s three-year annualized total stockholder return relative to a peer group consisting of S&P 1500 companies within the Healthcare Providers & Services 6 digit GICS industry group and selected other companies deemed to be peers. The number of shares issuable at the end of the applicable vesting period of restricted stock units ranges from 0% to 200% of the targeted units based on the Company’s actual performance compared to the targets and, for 2018 awards, performance compared to peers.

The fair values of restricted stock units were determined based on the closing price of the Company’s common stock on the trading date immediately prior to the grant date for units subject to performance conditions, or at its Monte-Carlo simulation value for units subject to market conditions.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

The provision for income taxes for the three months ended September 30, 2018 and 2017 reflects effective tax rates of 15.9% and 26.0%, respectively. The provision for income taxes for the nine months ended September 30, 2018 and 2017 reflects effective tax rates of 9.5% and 26.3%, respectively. The decrease in the effective tax rate for the three and nine months ended September 30, 2018 and 2017 was primarily attributable to the application of Public Law 115-97, informally referred to as the Tax Cuts and Jobs Act (the “Tax Act”) and a discrete benefit of $10.5 million recorded in the nine months ended September 30, 2018 related to a change in the Company’s provisional amount recorded at December 31, 2017.

The Company adopted ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” on January 1, 2017, which changed how the Company accounts for share-based awards for tax purposes. Income tax effects of share-based awards are recognized in the income statement, instead of through equity, when the awards vest. These changes resulted in an increase in our income tax provision of $1.2 million and $1.7 million, or an increase in the effective tax rate of 0.7% and 1.0% for the nine months ended September 30, 2018 and 2017, respectively.

U.S. Tax Reform

On December 22, 2017, the Tax Act was enacted into law. The Tax Act provides for significant changes to the U.S. tax code that impact businesses. Effective January 1, 2018, the Tax Act reduces the U.S. federal tax rate for corporations from 35% to 21%, for U.S. taxable income. The Tax Act requires a one-time remeasurement of deferred taxes to reflect their value at a lower tax rate of 21%. The Tax Act includes other changes, including, but not limited to, requiring a one-time transition tax on certain repatriated earnings of foreign subsidiaries that is payable over eight years, a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries, a new provision designed to tax global intangible low-taxed income, a limitation of the deduction for net operating losses, elimination of net operating loss carrybacks, immediate deductions for depreciation expense for certain qualified property, additional limitations on the deductibility of executive compensation and limitations on the deductibility of interest.

Accounting Standards Codification (“ASC”) 740 “Income Taxes” (“ASC 740”) requires the Company to recognize the effect of tax law changes in the period of enactment. However, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”) which will allow the Company to record provisional amounts during a measurement period similarly to the measurement period used when accounting for business combinations. The Company will continue to assess the impact of the Tax Act on its business and consolidated financial statements.

At September 30, 2018, the Company had not completed its accounting for the tax effects of enactment of the Tax Act; however, in certain cases, as described below, the Company has made a reasonable estimate of the effects on its existing deferred tax balances. The Company has recognized a cumulative provisional amount of $19.3 million at September 30, 2018 related to the remeasurement of its deferred tax balance. In addition, the Company has recorded a one-time transition tax lability in relation to its foreign subsidiaries of $0.0 million at September 30, 2018. The amount may change when the calculation of post-1986 foreign earnings and profits previously deferred from U.S. federal taxation is finalized.

Provisional Amounts

Deferred Tax Assets and Liabilities

The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. As a result of the reduction in the corporate income tax rate, the Company is required to revalue its net deferred tax assets and liabilities to account for the future impact of lower corporate tax rates on this deferred amount and record any change in the value of such asset or liability as a one-time non-cash charge or benefit on its income statement. However, the Company is still analyzing certain aspects of the Tax Act, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The Company has recognized a cumulative provisional amount of $19.3 million at September 30, 2018 related to the remeasurement of its deferred tax balance.

U.S. Tax on Foreign Earnings

The one-time transition tax is based on total post-1986 earnings and profits that the Company previously deferred from U.S. income taxes. The Company has made sufficient progress on the earnings and profits analysis for its foreign subsidiaries to reasonably estimate the effects of the one-time transition tax and has recorded a provisional amount of $0.0 million at September 30, 2018. This amount may change when the Company finalizes the calculation of post-1986 foreign earnings and profit. As part of the analysis of the Tax Act, the Company made an adjustment regarding the treatment of foreign dividends of $10.9 million during the nine months ended September 30, 2018. The change in the provisional estimate recorded at December 31, 2017 was recognized under the law that existed prior to December 22, 2017.

The Company has estimated the impacts for Global Intangible Low-Taxed Income, Foreign-Derived Intangible Income, the Base Erosion and Anti-Abuse Tax and any remaining impacts of the foreign income provisions of the Tax Act. The Company has made sufficient progress to reasonably estimate the effects of the aforementioned items and has recorded a provisional amount of $0.0 million at September 30, 2018.

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Derivatives

9 Months Ended

Sep. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

10. Derivatives

The Company entered into foreign currency forward contracts during the three and nine months ended September 30, 2018 and 2017 in connection with certain transfers of cash between the U.S. and U.K. under the Company’s cash management and foreign currency risk management programs. Foreign currency forward contracts limit the economic risk of changes in the exchange rate between U.S. Dollars (“USD”) and British Pounds (“GBP”) associated with cash transfers.

In May 2016, the Company entered into multiple cross currency swap agreements with an aggregate notional amount of $650.0 million to manage foreign currency risk by effectively converting a portion of its fixed-rate USD-denominated senior notes, including the semi-annual interest payments thereunder, to fixed-rate GBP-denominated debt of £449.3 million. During the term of the swap agreements, the Company will receive semi-annual interest payments in USD from the counterparties at fixed interest rates, and the Company will make semi-annual interest payments in GBP to the counterparties at fixed interest rates. The interest payments under the cross-currency swap agreements result in £24.7 million of annual cash flows, from the Company’s U.K. business being converted to $35.8 million (at a 1.45 exchange rate).

The Company has designated the cross currency swap agreements and forward contracts entered into during 2017 and the nine months ended September 30, 2018 as qualifying hedging instruments and is accounting for these as net investment hedges. The fair value of these derivatives of $33.1 million is recorded as derivative instrument assets on the condensed consolidated balance sheets. The gains and losses resulting from fair value adjustments to the cross currency swap agreements are recorded in accumulated other comprehensive loss as the swaps are effective in hedging the designated risk. Cash flows related to the cross currency swap derivatives are included in operating activities in the condensed consolidated statements of cash flows.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

11. Fair Value Measurements

The carrying amounts reported for cash and cash equivalents, accounts receivable, other current assets, accounts payable and other current liabilities approximate fair value because of the short-term maturity of these instruments.

The carrying amounts and fair values of the Company’s Amended and Restated Senior Credit Facility, 6.125% Senior Notes, 5.125% Senior Notes, 5.625% Senior Notes, 6.500% Senior Notes, 9.0% and 9.5% Revenue Bonds and derivative instruments at September 30, 2018 and December 31, 2017 were as follows (in thousands):

	Carrying Amount				Fair Value
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Amended and Restated Senior Credit Facility	$	1,722,010	$	1,749,185	$	1,722,010	$	1,749,185
6.125% Senior Notes due 2021	$	148,514	$	148,098	$	149,257	$	150,134
5.125% Senior Notes due 2022	$	296,750	$	296,174	$	296,008	$	296,914
5.625% Senior Notes due 2023	$	642,932	$	641,891	$	647,561	$	651,519
6.500% Senior Notes due 2024	$	383,033	$	382,251	$	395,960	$	397,541
9.0% and 9.5% Revenue Bonds	$	21,987	$	22,289	$	21,987	$	22,289
Derivative instrument assets	$	33,084	$	12,997	$	33,084	$	12,997

The Company’s Amended and Restated Senior Credit Facility, 6.125% Senior Notes, 5.125% Senior Notes, 5.625% Senior Notes, 6.500% Senior Notes and 9.0% and 9.5% Revenue Bonds were categorized as Level 2 in the GAAP fair value hierarchy. Fair values were based on trading activity among the Company’s lenders and the average bid and ask price as determined using published rates.

The fair values of the derivative instruments were categorized as Level 2 in the GAAP fair value hierarchy and were based on observable market inputs including applicable exchange rates and interest rates.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

12. Commitments and Contingencies

Professional and General Liability

A portion of the Company’s professional liability risks are insured through a wholly-owned insurance subsidiary. The Company is self-insured for professional liability claims up to $3.0 million per claim and has obtained reinsurance coverage from a third party to cover claims in excess of the retention limit. The reinsurance policy has a coverage limit of $75.0 million in the aggregate. The Company’s reinsurance receivables are recognized consistent with the related liabilities and include known claims and any incurred but not reported claims that are covered by current insurance policies in place.

Legal Proceedings

The Company is, from time to time, subject to various claims, lawsuits, governmental investigations and regulatory actions, including claims for damages for personal injuries, medical malpractice, overpayments, breach of contract, securities law violations, tort and employment related claims. In these actions, plaintiffs request a variety of damages, including, in some instances, punitive and other types of damages that may not be covered by insurance. In addition, healthcare companies are subject to numerous investigations by various governmental agencies. Certain of the Company’s individual facilities have received, and from time to time, other facilities may receive, subpoenas, civil investigative demands, audit requests and other inquiries from, and may be subject to investigation by, federal and state agencies. These investigations can result in repayment obligations, and violations of the False Claims Act can result in substantial monetary penalties and fines, the imposition of a corporate integrity agreement and exclusion from participation in governmental health programs. In addition, the federal False Claims Act permits private parties to bring qui tam, or “whistleblower,” suits against companies that submit false claims for payments to, or improperly retain overpayments from, the government. Some states have adopted similar state whistleblower and false claims provisions.

During the third quarter of 2018, the U.S. Attorney’s Office for the Southern District of West Virginia served subpoenas on seven of our comprehensive treatment centers located in West Virginia requesting various documents from January 2012 to present. The U.S. Attorney’s Office has advised us that the civil aspect of the investigation is a False Claims Act investigation focused on claims submitted by the centers for certain lab services. The Company is cooperating with the government’s investigation but is not able to quantify any potential liability in connection with this investigation. 

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Noncontrolling Interests

9 Months Ended

Sep. 30, 2018

Noncontrolling Interest [Abstract]

Noncontrolling Interests

13. Noncontrolling Interests

Noncontrolling interests in the consolidated financial statements represents the portion of equity held by noncontrolling partners in non-wholly owned subsidiaries the Company controls. At September 30, 2018, certain of these non-wholly owned subsidiaries operated four facilities. The Company owns between 60% and 80% of the equity interests in the entity that owns each facility, and noncontrolling partners own the remaining equity interests. The initial value of the noncontrolling interests is based on the fair value of contributions, and the Company consolidates the operations of each facility based on its equity ownership and its control of the entity. The noncontrolling interests are reflected as redeemable noncontrolling interests on the condensed consolidated balance sheets based on put rights that could require the Company to purchase the noncontrolling interests upon the occurrence of a change in control.

The components of redeemable noncontrolling interests are as follows (in thousands):

Balance at December 31, 2017	$	22,417
Contribution of redeemable noncontrolling interests		6,125
Net income attributable to noncontrolling interests		156
Balance at September 30, 2018	$	28,698

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Other Current Assets

9 Months Ended

Sep. 30, 2018

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Other Current Assets

14. Other Current Assets

Other current assets consisted of the following (in thousands):

	September 30, 2018		December 31, 2017
Prepaid expenses	$	35,682	$	27,320
Other receivables		30,203		30,455
Income taxes receivable		11,326		15,056
Workers’ compensation deposits – current portion		10,000		10,000
Inventory		5,021		4,787
Insurance receivable-current portion		2,049		17,588
Other		1,865		2,129
Other current assets	$	96,146	$	107,335

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Other Accrued Liabilities

9 Months Ended

Sep. 30, 2018

Other Liabilities Disclosure [Abstract]

Other Accrued Liabilities

15. Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):

	September 30, 2018		December 31, 2017
Accrued expenses	$	42,876	$	37,268
Unearned income		31,581		31,342
Accrued interest		12,835		36,370
Income taxes payable		11,312		1,012
Insurance liability – current portion		4,956		22,788
Accrued property taxes		5,570		3,945
Other		5,284		8,488
Other accrued liabilities	$	114,414	$	141,213

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Segment Information

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Information

16. Segment Information

The Company operates in one line of business, which is operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As management reviews the operating results of its facilities in the U.S. and its facilities in the U.K. separately to assess performance and make decisions, the Company’s operating segments include our U.S. Facilities and U.K. Facilities. At September 30, 2018, the U.S. Facilities segment included 215 behavioral healthcare facilities with approximately 9,200 beds in 40 states and Puerto Rico, and the U.K. Facilities segment included 371 behavioral healthcare facilities with approximately 8,800 beds in the U.K.

The following tables set forth the financial information by operating segment, including a reconciliation of Segment EBITDA to income before income taxes (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenue:
U.S. Facilities	$	488,626		$	453,678		$	1,432,501		$	1,355,315
U.K. Facilities		272,290			263,036			836,394			756,489
Corporate and Other		—			—			—			—
	$	760,916		$	716,714		$	2,268,895		$	2,111,804
Segment EBITDA (1):
U.S. Facilities	$	128,537		$	118,744		$	375,663		$	359,250
U.K. Facilities		40,735			50,665			146,081			146,941
Corporate and Other		(20,348	)		(17,153	)		(62,075	)		(55,346	)
	$	148,924		$	152,256		$	459,669		$	450,845

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Segment EBITDA (1)	$	148,924		$	152,256		$	459,669		$	450,845
Plus (less):
Equity-based compensation expense		(5,225	)		(4,175	)		(19,273	)		(19,007	)
Transaction-related expenses		(2,353	)		(5,665	)		(10,008	)		(18,836	)
Debt extinguishment costs		—			—			(940	)		(810	)
Interest expense, net		(46,651	)		(44,515	)		(137,706	)		(130,777	)
Depreciation and amortization		(39,659	)		(36,442	)		(119,360	)		(105,256	)
Income before income taxes	$	55,036		$	61,459		$	172,382		$	176,159

	U.S. Facilities		U.K. Facilities			Corporate and Other		Consolidated
Goodwill:
Balance at January 1, 2018	$	2,042,592	$	708,582		$	—	$	2,751,174
Increase from contribution of redeemable noncontrolling interests		2,244		—			—		2,244
Foreign currency translation loss		—		(24,239	)		—		(24,239	)
Prior year purchase price adjustments		—		762			—		762
Balance at September 30, 2018	$	2,044,836	$	685,105		$	—	$	2,729,941

	September 30, 2018		December 31, 2017
Assets (2):
U.S. Facilities	$	3,753,345	$	3,567,126
U.K. Facilities		2,568,318		2,647,150
Corporate and Other		207,921		210,226
	$	6,529,584	$	6,424,502

(1) Segment EBITDA is defined as income before provision for income taxes, equity-based compensation expense, transaction-related expenses, debt extinguishment costs, interest expense and depreciation and amortization. The Company uses Segment EBITDA as an analytical indicator to measure the performance of the Company’s segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA is commonly used as an analytical indicator within the health care industry, and also serves as a measure of leverage capacity and debt service ability. Segment EBITDA should not be considered as a measure of financial performance under GAAP, and the items excluded from Segment EBITDA are significant components in understanding and assessing financial performance. Because Segment EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Segment EBITDA, as presented, may not be comparable to other similarly titled measures of other companies.

(2) Assets include property and equipment for the U.S. Facilities of $1.3 billion, U.K. Facilities of $1.8 billion and corporate and other of $53.9 million at September 30, 2018. Assets include property and equipment for the U.S. Facilities of $1.2 billion, U.K. Facilities of $1.8 billion and corporate and other of $49.2 million at December 31, 2017.

XML

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Accumulated Other Comprehensive Loss

17. Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows (in thousands):

	Foreign Currency Translation Adjustments			Change in Fair Value of Derivative Instruments		Pension Plan			Total
Balance at December 31, 2017	$	(376,740	)	$	7,167	$	(4,545	)	$	(374,118	)
Foreign currency translation (loss) gain		(82,935	)		—		157			(82,778	)
Gain on derivative instruments, net of tax of $5.6    million		—			16,434		—			16,434
Balance at September 30, 2018	$	(459,675	)	$	23,601	$	(4,388	)	$	(440,462	)

XML

Financial Information for the Company and Its Subsidiaries

9 Months Ended

Sep. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Financial Information for the Company and Its Subsidiaries

18. Financial Information for the Company and Its Subsidiaries

The Company conducts substantially all of its business through its subsidiaries. The 6.125% Senior Notes, 5.125% Senior Notes, 5.625% Senior Notes and 6.500% Senior Notes are jointly and severally guaranteed on an unsecured senior basis by all of the Company’s subsidiaries that guarantee the Company’s obligations under the Amended and Restated Senior Credit Facility. Presented below is condensed consolidating financial information for the Company and its subsidiaries at September 30, 2018 and December 31, 2017, and for the three and nine months ended September 30, 2018 and 2017. The information segregates the parent company (Acadia Healthcare Company, Inc.), the combined wholly-owned subsidiary guarantors, the combined non-guarantor subsidiaries and eliminations.

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

September 30, 2018

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	32,298	$	16,630	$	—		$	48,928
Accounts receivable, net		—		270,535		75,124		—			345,659
Other current assets		—		70,260		25,886		—			96,146
Total current assets		—		373,093		117,640		—			490,733
Property and equipment, net		—		1,197,218		1,929,424		—			3,126,642
Goodwill		—		1,936,057		793,884		—			2,729,941
Intangible assets, net		—		58,405		32,854		—			91,259
Deferred tax assets		2,296		—		3,630		(2,296	)		3,630
Derivative instruments assets		33,084		—		—		—			33,084
Investment in subsidiaries		5,523,816		—		—		(5,523,816	)		—
Other assets		326,442		42,688		8,833		(323,668	)		54,295
Total assets	$	5,885,638	$	3,607,461	$	2,886,265	$	(5,849,780	)	$	6,529,584
Current liabilities:
Current portion of long-term debt	$	32,984	$	—	$	280	$	—		$	33,264
Accounts payable		—		90,497		43,417		—			133,914
Accrued salaries and benefits		—		80,156		28,995		—			109,151
Other accrued liabilities		12,150		34,908		67,356		—			114,414
Total current liabilities		45,134		205,561		140,048		—			390,743
Long-term debt		3,160,255		—		345,375		(323,668	)		3,181,962
Deferred tax liabilities		—		31,180		53,385		(2,296	)		82,269
Other liabilities		—		109,181		56,482		—			165,663
Total liabilities		3,205,389		345,922		595,290		(325,964	)		3,820,637
Redeemable noncontrolling interests		—		—		28,698		—			28,698
Total equity		2,680,249		3,261,539		2,262,277		(5,523,816	)		2,680,249
Total liabilities and equity	$	5,885,638	$	3,607,461	$	2,886,265	$	(5,849,780	)	$	6,529,584

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

December 31, 2017

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	46,860	$	20,430	$	—		$	67,290
Accounts receivable, net		—		230,890		66,035		—			296,925
Other current assets		—		85,746		21,589		—			107,335
Total current assets		—		363,496		108,054		—			471,550
Property and equipment, net		—		1,086,802		1,961,328		—			3,048,130
Goodwill		—		1,936,057		815,117		—			2,751,174
Intangible assets, net		—		57,628		29,720		—			87,348
Deferred tax assets		2,370		—		3,731		(2,370	)		3,731
Derivative instruments assets		12,997		—		—		—			12,997
Investment in subsidiaries		5,429,386		—		—		(5,429,386	)		—
Other assets		381,913		38,860		7,807		(379,008	)		49,572
Total assets	$	5,826,666	$	3,482,843	$	2,925,757	$	(5,810,764	)	$	6,424,502
Current liabilities:
Current portion of long-term debt	$	34,550	$	—	$	280	$	—		$	34,830
Accounts payable		—		70,767		31,532		—			102,299
Accrued salaries and benefits		—		69,057		29,990		—			99,047
Other accrued liabilities		36,196		27,676		77,341		—			141,213
Total current liabilities		70,746		167,500		139,143		—			377,389
Long-term debt		3,183,049		—		401,017		(379,008	)		3,205,058
Deferred tax liabilities		—		27,975		54,728		(2,370	)		80,333
Other liabilities		—		103,112		63,322		—			166,434
Total liabilities		3,253,795		298,587		658,210		(381,378	)		3,829,214
Redeemable noncontrolling interests		—		—		22,417		—			22,417
Total equity		2,572,871		3,184,256		2,245,130		(5,429,386	)		2,572,871
Total liabilities and equity	$	5,826,666	$	3,482,843	$	2,925,757	$	(5,810,764	)	$	6,424,502

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	458,061	$	302,855		$	—		$	760,916
Salaries, wages and benefits		5,225			245,599		167,093			—			417,917
Professional fees		—			24,152		35,357			—			59,509
Supplies		—			19,139		10,322			—			29,461
Rents and leases		—			8,294		11,572			—			19,866
Other operating expenses		—			57,495		32,969			—			90,464
Depreciation and amortization		—			18,857		20,802			—			39,659
Interest expense, net		17,225			22,768		6,658			—			46,651
Transaction-related expenses		—			702		1,651			—			2,353
Total expenses		22,450			397,006		286,424			—			705,880
(Loss) income before income taxes		(22,450	)		61,055		16,431			—			55,036
Equity in earnings of subsidiaries		62,854			—		—			(62,854	)		—
(Benefit from) provision for income taxes		(5,875	)		11,666		2,966			—			8,757
Net income (loss)		46,279			49,389		13,465			(62,854	)		46,279
Net gain attributable to noncontrolling interests		—			—		(47	)		—			(47	)
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	46,279		$	49,389	$	13,418		$	(62,854	)	$	46,232
Other comprehensive (loss) income:
Foreign currency translation loss		—			—		(31,959	)		—			(31,959	)
Gain on derivative instruments		7,380			—		—			—			7,380
Other comprehensive income (loss)		7,380			—		(31,959	)		—			(24,579	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	53,659		$	49,389	$	(18,541	)	$	(62,854	)	$	21,653

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue before provision for doubtful accounts	$	—		$	440,423		$	288,289		$	—		$	728,712
Provision for doubtful accounts		—			(10,310	)		(1,688	)		—			(11,998	)
Revenue		—			430,113			286,601			—			716,714
Salaries, wages and benefits		4,175			225,001			156,386			—			385,562
Professional fees		—			24,385			28,657			—			53,042
Supplies		—			18,843			9,809			—			28,652
Rents and leases		—			8,127			10,922			—			19,049
Other operating expenses		—			55,077			27,251			—			82,328
Depreciation and amortization		—			16,963			19,479			—			36,442
Interest expense, net		15,933			19,304			9,278			—			44,515
Transaction-related expenses		—			2,211			3,454			—			5,665
Total expenses		20,108			369,911			265,236			—			655,255
(Loss) income before income taxes		(20,108	)		60,202			21,365			—			61,459
Equity in earnings of subsidiaries		55,925			—			—			(55,925	)		—
(Benefit from) provision for income taxes		(9,672	)		21,202			4,440			—			15,970
Net income (loss)		45,489			39,000			16,925			(55,925	)		45,489
Net loss attributable to noncontrolling interests		—			—			129			—			129
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	45,489		$	39,000		$	17,054		$	(55,925	)	$	45,618
Other comprehensive (loss) income:
Foreign currency translation gain		—			—			69,622			—			69,622
Loss on derivative instruments		(9,402	)		—			—			—			(9,402	)
Other comprehensive (loss) income		(9,402	)		—			69,622			—			60,220
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	36,087		$	39,000		$	86,676		$	(55,925	)	$	105,838

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	1,347,468	$	921,427		$	—		$	2,268,895
Salaries, wages and benefits		19,273			724,650		502,263			—			1,246,186
Professional fees		—			73,100		93,888			—			166,988
Supplies		—			57,143		31,815			—			88,958
Rents and leases		—			24,844		35,546			—			60,390
Other operating expenses		—			168,923		97,054			—			265,977
Depreciation and amortization		—			55,640		63,720			—			119,360
Interest expense, net		47,307			69,954		20,445			—			137,706
Debt extinguishment costs		940			—		—			—			940
Transaction-related expenses		—			7,382		2,626			—			10,008
Total expenses		67,520			1,181,636		847,357			—			2,096,513
(Loss) income before income taxes		(67,520	)		165,832		74,070			—			172,382
Equity in earnings of subsidiaries		206,204			—		—			(206,204	)		—
(Benefit from) provision for income taxes		(17,359	)		22,985		10,713			—			16,339
Net income (loss)		156,043			142,847		63,357			(206,204	)		156,043
Net gain attributable to noncontrolling interests		—			—		(156	)		—			(156	)
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	156,043		$	142,847	$	63,201		$	(206,204	)	$	155,887
Other comprehensive (loss) income:
Foreign currency translation loss		—			—		(82,778	)		—			(82,778	)
Gain on derivative instruments		16,434			—		—			—			16,434
Other comprehensive income (loss)		16,434			—		(82,778	)		—			(66,344	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	172,477		$	142,847	$	(19,577	)	$	(206,204	)	$	89,543

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended September 30, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue before provision for doubtful accounts	$	—		$	1,311,937		$	831,759		$	—		$	2,143,696
Provision for doubtful accounts		—			(28,007	)		(3,885	)		—			(31,892	)
Revenue		—			1,283,930			827,874			—			2,111,804
Salaries, wages and benefits		19,007			675,206			451,365			—			1,145,578
Professional fees		—			69,796			72,976			—			142,772
Supplies		—			56,502			28,498			—			85,000
Rents and leases		—			25,139			32,316			—			57,455
Other operating expenses		—			164,596			84,565			—			249,161
Depreciation and amortization		—			48,918			56,338			—			105,256
Interest expense, net		46,392			57,054			27,331			—			130,777
Debt extinguishment costs		810			—			—			—			810
Transaction-related expenses		—			6,219			12,617			—			18,836
Total expenses		66,209			1,103,430			766,006			—			1,935,645
(Loss) income before income taxes		(66,209	)		180,500			61,868			—			176,159
Equity in earnings of subsidiaries		163,931			—			—			(163,931	)		—
(Benefit from) provision for income taxes		(32,178	)		66,124			12,313			—			46,259
Net income (loss)		129,900			114,376			49,555			(163,931	)		129,900
Net loss attributable to noncontrolling interests		—			—			306			—			306
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	129,900		$	114,376		$	49,861		$	(163,931	)	$	130,206
Other comprehensive (loss) income:
Foreign currency translation gain		—			—			188,744			—			188,744
Loss on derivative instruments		(24,354	)		—			—			—			(24,354	)
Other comprehensive (loss) income		(24,354	)		—			188,744			—			164,390
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	105,546		$	114,376		$	238,605		$	(163,931	)	$	294,596

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	156,043		$	142,847		$	63,357		$	(206,204	)	$	156,043
Adjustments to reconcile net income (loss)    to net cash (used in) provided by continuing    operating activities:
Equity in earnings of subsidiaries		(206,204	)		—			—			206,204			—
Depreciation and amortization		—			55,640			63,720			—			119,360
Amortization of debt issuance costs		8,065			—			(302	)		—			7,763
Equity-based compensation expense		19,273			—			—			—			19,273
Deferred income taxes		74			(2,398	)		586			—			(1,738	)
Debt extinguishment costs		940			—			—			—			940
Other		1,948			1,219			(142	)		—			3,025
Change in operating assets and liabilities:
Accounts receivable, net		—			(39,644	)		(3,608	)		—			(43,252	)
Other current assets		—			7,898			(4,877	)		—			3,021
Other assets		4,596			3,763			105			(4,596	)		3,868
Accounts payable and other accrued liabilities		—			7,835			1,395			—			9,230
Accrued salaries and benefits		—			11,100			(51	)		—			11,049
Other liabilities		—			4,548			(4,399	)		—			149
Net cash (used in) provided by continuing operating     activities		(15,265	)		192,808			115,784			(4,596	)		288,731
Net cash used in discontinued operating activities		—			(2,548	)		—			—			(2,548	)
Net cash (used in) provided by operating activities		(15,265	)		190,260			115,784			(4,596	)		286,183
Investing activities:
Cash paid for capital expenditures		—			(149,402	)		(100,587	)		—			(249,989	)
Cash paid for real estate acquisitions		—			(9,391	)		—			—			(9,391	)
Other		—			(5,718	)		2,604			—			(3,114	)
Net cash used in investing activities		—			(164,511	)		(97,983	)		—			(262,494	)
Financing activities:
Principal payments on long-term debt		(31,492	)		(169	)		(4,427	)		4,596			(31,492	)
Common stock withheld for minimum statutory taxes, net		(2,272	)		—			—			—			(2,272	)
Other		(1,742	)		(2,885	)		(2,346	)		—			(6,973	)
Cash provided by (used in) intercompany activity		50,771			(37,257	)		(13,514	)		—			—
Net provided by (used in) in financing activities		15,265			(40,311	)		(20,287	)		4,596			(40,737	)
Effect of exchange rate changes on cash		—			—			(1,314	)		—			(1,314	)
Net decrease in cash and cash equivalents		—			(14,562	)		(3,800	)		—			(18,362	)
Cash and cash equivalents at beginning of the period		—			46,860			20,430			—			67,290
Cash and cash equivalents at end of the period	$	—		$	32,298		$	16,630		$	—		$	48,928

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	129,900		$	114,376		$	49,555		$	(163,931	)	$	129,900
Adjustments to reconcile net income (loss) to    net cash provided by (used in) continuing    operating activities:
Equity in earnings of subsidiaries		(163,931	)		—			—			163,931			—
Depreciation and amortization		—			48,918			56,338			—			105,256
Amortization of debt issuance costs		7,652			—			(312	)		—			7,340
Equity-based compensation expense		19,007			—			—			—			19,007
Deferred income taxes		156			22,401			6,859			—			29,416
Debt extinguishment costs		810			—			—			—			810
Other		4,216			1,727			4,729			—			10,672
Change in operating assets and liabilities:
Accounts receivable, net		—			(21,183	)		(7,498	)		—			(28,681	)
Other current assets		—			1,126			24,973			—			26,099
Other assets		3,479			(705	)		139			(3,479	)		(566	)
Accounts payable and other accrued liabilities		—			(22,372	)		(4,009	)		—			(26,381	)
Accrued salaries and benefits		—			(4,759	)		(3,178	)		—			(7,937	)
Other liabilities		—			4,084			3,593			—			7,677
Net cash provided by (used in) continuing operating      activities		1,289			143,613			131,189			(3,479	)		272,612
Net cash used in discontinued operating activities		—			(1,261	)		—			—			(1,261	)
Net cash provided by (used in) operating activities		1,289			142,352			131,189			(3,479	)		271,351
Investing activities:
Cash paid for capital expenditures		—			(114,130	)		(79,687	)		—			(193,817	)
Cash paid for real estate acquisitions		—			(33,297	)		—			—			(33,297	)
Other		—			(7,984	)		1,922			—			(6,062	)
Net cash used in investing activities		—			(155,411	)		(77,765	)		—			(233,176	)
Financing activities:
Principal payments on long-term debt		(25,913	)		—			(3,479	)		3,479			(25,913	)
Common stock withheld for minimum statutory taxes, net		(3,278	)		—			—			—			(3,278	)
Other		—			1,649			—			—			1,649
Cash provided by (used in) intercompany activity		27,902			39,443			(67,345	)		—			—
Net (used in) provided by in financing activities		(1,289	)		41,092			(70,824	)		3,479			(27,542	)
Effect of exchange rate changes on cash		—			—			7,965			—			7,965
Net increase (decrease) in cash and cash equivalents		—			28,033			(9,435	)		—			18,598
Cash and cash equivalents at beginning of the period		—			15,681			41,382			—			57,063
Cash and cash equivalents at end of the period	$	—		$	43,714		$	31,947		$	—		$	75,661

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Subsequent Events

9 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

19.  Subsequent Events

     On October 22, 2018, the Company sent a notice of conditional redemption to the trustee of the 9.0% and 9.5% Revenue Bonds indicating that the Company is conditionally exercising its option to redeem in whole the 9.0% and 9.5% Revenue Bonds on December 1, 2018 (the “Redemption Date”) at a redemption price equal to the sum of 104% of the principal amount of the 9.0% and 9.5% Revenue Bonds plus accrued and unpaid interest (the “Redemption Price”). The redemption is expressly conditional on the Company depositing sufficient moneys with the trustee on or prior to the Redemption Date, which amounts, together with funds already on deposit with the trustee, are sufficient to satisfy the Redemption Price. The Company expects to borrow the funds needed for the redemption under its revolving line of credit pursuant to the Amended and Restated Credit Agreement.

On October 23, 2018 the Company signed a definitive agreement for the acquisition of Mission Treatment (“Mission Treatment”) for cash consideration of approximately $22.5 million and a working capital settlement. Mission Treatment operates nine comprehensive treatment centers in California, Nevada, Arizona and Oklahoma.

On October 31, 2018 the Company signed a definitive agreement for the acquisition of Whittier Pavilion (“Whittier”), an inpatient psychiatric facility with 71 beds located in Haverhill, Massachusetts, for cash consideration of approximately $17.9 million. Whittier is part of the Whitter Health Network, a family owned and operated healthcare system that has provided hospital and community services since 1982.

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Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Summary of the Activity in Unearned Revenue in the U.K. Facilities

A summary of the activity in unearned revenue in the U.K. Facilities is as follows (in thousands):

Balance at December 31, 2017	$	30,812
Payments received		126,506
Revenue recognized		(124,894	)
Foreign currency translation loss		(1,687	)
Balance at September 30, 2018	$	30,737

U.S. Facilities [Member]

Schedule of Revenue Attributed to Each Category

The table below presents total U.S. revenue attributed to each category (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Acute inpatient psychiatric facilities	$	208,885	$	187,497	$	608,311	$	566,173
Specialty treatment facilities		198,107		183,290		575,536		543,079
Residential treatment centers		72,351		72,677		218,041		213,300
Outpatient community-based services		9,283		10,214		30,613		32,763
Revenue	$	488,626	$	453,678	$	1,432,501	$	1,355,315

Schedule of Revenue Generated by Each Payor Type

The following table presents revenue generated by each payor type (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
Commercial	$	146,439	$	142,870		$	431,337	$	431,818
Medicare		73,528		73,593			210,307		212,992
Medicaid		229,390		199,592			668,236		587,705
Self-Pay		33,559		43,685			103,845		130,928
Other		5,710		5,936			18,776		23,758
Revenue before provision for doubtful accounts		488,626		465,676			1,432,501		1,387,201
Provision for doubtful accounts		—		(11,998	)		—		(31,886	)
Revenue	$	488,626	$	453,678		$	1,432,501	$	1,355,315

U.K. Facilities [Member]

Schedule of Revenue Attributed to Each Category

The table below presents total U.K. revenue attributed to each category (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Healthcare facilities	$	150,871	$	146,264	$	464,731	$	419,549
Education and Children’s Services		46,966		42,441		145,609		124,337
Adult Care facilities		74,453		74,331		226,054		212,603
Revenue	$	272,290	$	263,036	$	836,394	$	756,489

Schedule of Revenue Generated by Each Payor Type

The following table presents revenue generated by each payor type (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
U.K. public funded sources	$	245,919	$	236,778	$	756,094	$	678,623
Self-Pay		26,159		24,572		78,499		70,662
Other		212		1,686		1,801		7,210
Revenue before provision for doubtful accounts		272,290		263,036		836,394		756,495
Provision for doubtful accounts		—		—		—		(6	)
Revenue	$	272,290	$	263,036	$	836,394	$	756,489

Accounting Standards Update 2014-09 [Member]

Summary of Impact of Adoption of Accounting Standards

The impact of adopting ASU 2014-09 on the condensed consolidated statements of income for the three and nine months ended September 30, 2018 was as follows (in thousands):

	Three Months Ended September 30, 2018					Nine Months Ended September 30, 2018
	As Reported		Prior to Adopting ASU 2014-09			As Reported		Prior to Adopting ASU 2014-09
Revenue before provision for doubtful accounts	$	760,916	$	772,380		$	2,268,895	$	2,298,084
Provision for doubtful accounts		—		(11,464	)		—		(29,189	)
Revenue	$	760,916	$	760,916		$	2,268,895	$	2,268,895

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 (in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator:
Net income attributable to Acadia Healthcare    Company, Inc.	$	46,232	$	45,618	$	155,887	$	130,206
Denominator:
Weighted average shares outstanding for basic    earnings per share		87,344		87,017		87,233		86,912
Effect of dilutive instruments		193		155		153		126
Shares used in computing diluted earnings per    common share		87,537		87,172		87,386		87,038
Earnings per share attributable to Acadia Healthcare    Company, Inc. stockholders:
Basic	$	0.53	$	0.52	$	1.79	$	1.50
Diluted	$	0.53	$	0.52	$	1.78	$	1.50

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Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Other Identifiable Intangible Assets and Related Accumulated Amortization

Other identifiable intangible assets and related accumulated amortization consisted of the following at September 30, 2018 and December 31, 2017 (in thousands):

	Gross Carrying Amount				Accumulated Amortization
	September 30, 2018		December 31, 2017		September 30, 2018			December 31, 2017
Intangible assets subject to amortization:
Contract intangible assets	$	2,100	$	2,100	$	(2,100	)	$	(2,100	)
Non-compete agreements		1,147		1,147		(1,147	)		(1,147	)
		3,247		3,247		(3,247	)		(3,247	)
Intangible assets not subject to amortization:
Licenses and accreditations		12,766		12,266		—			—
Trade names		61,675		60,586		—			—
Certificates of need		16,818		14,496		—			—
		91,259		87,348		—			—
Total	$	94,506	$	90,595	$	(3,247	)	$	(3,247	)

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Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2018

Property Plant And Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consists of the following at September 30, 2018 and December 31, 2017 (in thousands):

	September 30, 2018			December 31, 2017
Land	$	444,579		$	450,342
Building and improvements		2,443,980			2,370,918
Equipment		434,205			400,596
Construction in progress		249,001			173,693
		3,571,765			3,395,549
Less accumulated depreciation		(445,123	)		(347,419	)
Property and equipment, net	$	3,126,642		$	3,048,130

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Components of Long-Term Debt

Long-term debt consisted of the following (in thousands):

	September 30, 2018			December 31, 2017
Amended and Restated Senior Credit Facility:
Senior Secured Term A Loans	$	370,500		$	380,000
Senior Secured Term B Loans		1,376,408			1,398,400
Senior Secured Revolving Line of Credit		—			—
6.125% Senior Notes due 2021		150,000			150,000
5.125% Senior Notes due 2022		300,000			300,000
5.625% Senior Notes due 2023		650,000			650,000
6.500% Senior Notes due 2024		390,000			390,000
9.0% and 9.5% Revenue Bonds		21,920			21,920
Less: unamortized debt issuance costs, discount and    premium		(43,602	)		(50,432	)
		3,215,226			3,239,888
Less: current portion		(33,264	)		(34,830	)
Long-term debt	$	3,181,962		$	3,205,058

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Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Option Activity

Stock option activity during 2017 and 2018 was as follows (aggregate intrinsic value in thousands):

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Options outstanding at January 1, 2017		1,000,946		$	49.42		7.80	$	8,166
Options granted		259,300			42.25		9.30		205
Options exercised		(87,367	)		25.92	N/A			1,636
Options cancelled		(198,313	)		54.71	N/A		N/A
Options outstanding at December 31, 2017		974,566			47.89		7.46		3,802
Options granted		353,800			37.36		9.42		475
Options exercised		(9,889	)		24.67	N/A			165
Options cancelled		(102,787	)		51.23	N/A		N/A
Options outstanding at September 30, 2018		1,215,690		$	44.69		7.43	$	3,536
Options exercisable at December 31, 2017		405,634		$	41.20		6.05	$	3,549
Options exercisable at September 30, 2018		543,139		$	44.65		5.87	$	2,835

Schedule of Stock Options Valuation Assumptions

The following table summarizes the grant-date fair value of options and the assumptions used to develop the fair value estimates for options granted during the nine months ended September 30, 2018 and year ended December 31, 2017:

	September 30, 2018			December 31, 2017
Weighted average grant-date fair value of options	$	13.61		$	14.39
Risk-free interest rate		2.2	%		2.0	%
Expected volatility		37	%		33	%
Expected life (in years)		5.0			5.5

Restricted Stock Activity

Restricted stock activity during 2017 and 2018 was as follows:

	Number of Shares			Weighted Average Grant-Date Fair Value
Unvested at January 1, 2017		844,419		$	55.76
Granted		404,224			42.38
Cancelled		(145,981	)		55.03
Vested		(292,794	)		53.07
Unvested at December 31, 2017		809,868		$	50.19
Granted		441,837			36.51
Cancelled		(71,067	)		48.36
Vested		(283,077	)		53.24
Unvested at September 30, 2018		897,561		$	42.64

Restricted Stock Unit Activity

Restricted stock unit activity during 2017 and 2018 was as follows:

	Number of Units			Weighted Average Grant-Date Fair Value
Unvested at January 1, 2017		273,599		$	59.68
Granted		219,840			43.23
Cancelled		—			—
Vested		(132,530	)		58.67
Unvested at December 31, 2017		360,909		$	50.04
Granted		285,358			42.26
Cancelled		(87,173	)		55.44
Vested		(72,983	)		49.64
Unvested at September 30, 2018		486,111		$	44.52

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Carrying Amounts and Fair Values of Company's Amended and Restated Senior Credit Facilities and Contingent Consideration Liabilities

The carrying amounts and fair values of the Company’s Amended and Restated Senior Credit Facility, 6.125% Senior Notes, 5.125% Senior Notes, 5.625% Senior Notes, 6.500% Senior Notes, 9.0% and 9.5% Revenue Bonds and derivative instruments at September 30, 2018 and December 31, 2017 were as follows (in thousands):

	Carrying Amount				Fair Value
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Amended and Restated Senior Credit Facility	$	1,722,010	$	1,749,185	$	1,722,010	$	1,749,185
6.125% Senior Notes due 2021	$	148,514	$	148,098	$	149,257	$	150,134
5.125% Senior Notes due 2022	$	296,750	$	296,174	$	296,008	$	296,914
5.625% Senior Notes due 2023	$	642,932	$	641,891	$	647,561	$	651,519
6.500% Senior Notes due 2024	$	383,033	$	382,251	$	395,960	$	397,541
9.0% and 9.5% Revenue Bonds	$	21,987	$	22,289	$	21,987	$	22,289
Derivative instrument assets	$	33,084	$	12,997	$	33,084	$	12,997

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Noncontrolling Interests (Tables)

9 Months Ended

Sep. 30, 2018

Noncontrolling Interest [Abstract]

Summary of Redeemable Noncontrolling Interests

The components of redeemable noncontrolling interests are as follows (in thousands):

Balance at December 31, 2017	$	22,417
Contribution of redeemable noncontrolling interests		6,125
Net income attributable to noncontrolling interests		156
Balance at September 30, 2018	$	28,698

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Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2018

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Other Current Assets

Other current assets consisted of the following (in thousands):

	September 30, 2018		December 31, 2017
Prepaid expenses	$	35,682	$	27,320
Other receivables		30,203		30,455
Income taxes receivable		11,326		15,056
Workers’ compensation deposits – current portion		10,000		10,000
Inventory		5,021		4,787
Insurance receivable-current portion		2,049		17,588
Other		1,865		2,129
Other current assets	$	96,146	$	107,335

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Other Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Other Liabilities Disclosure [Abstract]

Summary of Other Accrued Liabilities

Other accrued liabilities consisted of the following (in thousands):

	September 30, 2018		December 31, 2017
Accrued expenses	$	42,876	$	37,268
Unearned income		31,581		31,342
Accrued interest		12,835		36,370
Income taxes payable		11,312		1,012
Insurance liability – current portion		4,956		22,788
Accrued property taxes		5,570		3,945
Other		5,284		8,488
Other accrued liabilities	$	114,414	$	141,213

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Reconciliation of Segment EBITDA to Income from Continuing Operations

The following tables set forth the financial information by operating segment, including a reconciliation of Segment EBITDA to income before income taxes (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenue:
U.S. Facilities	$	488,626		$	453,678		$	1,432,501		$	1,355,315
U.K. Facilities		272,290			263,036			836,394			756,489
Corporate and Other		—			—			—			—
	$	760,916		$	716,714		$	2,268,895		$	2,111,804
Segment EBITDA (1):
U.S. Facilities	$	128,537		$	118,744		$	375,663		$	359,250
U.K. Facilities		40,735			50,665			146,081			146,941
Corporate and Other		(20,348	)		(17,153	)		(62,075	)		(55,346	)
	$	148,924		$	152,256		$	459,669		$	450,845

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Segment EBITDA (1)	$	148,924		$	152,256		$	459,669		$	450,845
Plus (less):
Equity-based compensation expense		(5,225	)		(4,175	)		(19,273	)		(19,007	)
Transaction-related expenses		(2,353	)		(5,665	)		(10,008	)		(18,836	)
Debt extinguishment costs		—			—			(940	)		(810	)
Interest expense, net		(46,651	)		(44,515	)		(137,706	)		(130,777	)
Depreciation and amortization		(39,659	)		(36,442	)		(119,360	)		(105,256	)
Income before income taxes	$	55,036		$	61,459		$	172,382		$	176,159

Summary of Assets by Operating Segment

	September 30, 2018		December 31, 2017
Assets (2):
U.S. Facilities	$	3,753,345	$	3,567,126
U.K. Facilities		2,568,318		2,647,150
Corporate and Other		207,921		210,226
	$	6,529,584	$	6,424,502

(1) Segment EBITDA is defined as income before provision for income taxes, equity-based compensation expense, transaction-related expenses, debt extinguishment costs, interest expense and depreciation and amortization. The Company uses Segment EBITDA as an analytical indicator to measure the performance of the Company’s segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA is commonly used as an analytical indicator within the health care industry, and also serves as a measure of leverage capacity and debt service ability. Segment EBITDA should not be considered as a measure of financial performance under GAAP, and the items excluded from Segment EBITDA are significant components in understanding and assessing financial performance. Because Segment EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Segment EBITDA, as presented, may not be comparable to other similarly titled measures of other companies.

(2) Assets include property and equipment for the U.S. Facilities of $1.3 billion, U.K. Facilities of $1.8 billion and corporate and other of $53.9 million at September 30, 2018. Assets include property and equipment for the U.S. Facilities of $1.2 billion, U.K. Facilities of $1.8 billion and corporate and other of $49.2 million at December 31, 2017.

Goodwill [Member]

Summary of Assets by Operating Segment

	U.S. Facilities		U.K. Facilities			Corporate and Other		Consolidated
Goodwill:
Balance at January 1, 2018	$	2,042,592	$	708,582		$	—	$	2,751,174
Increase from contribution of redeemable noncontrolling interests		2,244		—			—		2,244
Foreign currency translation loss		—		(24,239	)		—		(24,239	)
Prior year purchase price adjustments		—		762			—		762
Balance at September 30, 2018	$	2,044,836	$	685,105		$	—	$	2,729,941

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Components Of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss are as follows (in thousands):

	Foreign Currency Translation Adjustments			Change in Fair Value of Derivative Instruments		Pension Plan			Total
Balance at December 31, 2017	$	(376,740	)	$	7,167	$	(4,545	)	$	(374,118	)
Foreign currency translation (loss) gain		(82,935	)		—		157			(82,778	)
Gain on derivative instruments, net of tax of $5.6    million		—			16,434		—			16,434
Balance at September 30, 2018	$	(459,675	)	$	23,601	$	(4,388	)	$	(440,462	)

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Financial Information for the Company and Its Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Condensed Consolidating Balance Sheets

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

September 30, 2018

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	32,298	$	16,630	$	—		$	48,928
Accounts receivable, net		—		270,535		75,124		—			345,659
Other current assets		—		70,260		25,886		—			96,146
Total current assets		—		373,093		117,640		—			490,733
Property and equipment, net		—		1,197,218		1,929,424		—			3,126,642
Goodwill		—		1,936,057		793,884		—			2,729,941
Intangible assets, net		—		58,405		32,854		—			91,259
Deferred tax assets		2,296		—		3,630		(2,296	)		3,630
Derivative instruments assets		33,084		—		—		—			33,084
Investment in subsidiaries		5,523,816		—		—		(5,523,816	)		—
Other assets		326,442		42,688		8,833		(323,668	)		54,295
Total assets	$	5,885,638	$	3,607,461	$	2,886,265	$	(5,849,780	)	$	6,529,584
Current liabilities:
Current portion of long-term debt	$	32,984	$	—	$	280	$	—		$	33,264
Accounts payable		—		90,497		43,417		—			133,914
Accrued salaries and benefits		—		80,156		28,995		—			109,151
Other accrued liabilities		12,150		34,908		67,356		—			114,414
Total current liabilities		45,134		205,561		140,048		—			390,743
Long-term debt		3,160,255		—		345,375		(323,668	)		3,181,962
Deferred tax liabilities		—		31,180		53,385		(2,296	)		82,269
Other liabilities		—		109,181		56,482		—			165,663
Total liabilities		3,205,389		345,922		595,290		(325,964	)		3,820,637
Redeemable noncontrolling interests		—		—		28,698		—			28,698
Total equity		2,680,249		3,261,539		2,262,277		(5,523,816	)		2,680,249
Total liabilities and equity	$	5,885,638	$	3,607,461	$	2,886,265	$	(5,849,780	)	$	6,529,584

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

December 31, 2017

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	46,860	$	20,430	$	—		$	67,290
Accounts receivable, net		—		230,890		66,035		—			296,925
Other current assets		—		85,746		21,589		—			107,335
Total current assets		—		363,496		108,054		—			471,550
Property and equipment, net		—		1,086,802		1,961,328		—			3,048,130
Goodwill		—		1,936,057		815,117		—			2,751,174
Intangible assets, net		—		57,628		29,720		—			87,348
Deferred tax assets		2,370		—		3,731		(2,370	)		3,731
Derivative instruments assets		12,997		—		—		—			12,997
Investment in subsidiaries		5,429,386		—		—		(5,429,386	)		—
Other assets		381,913		38,860		7,807		(379,008	)		49,572
Total assets	$	5,826,666	$	3,482,843	$	2,925,757	$	(5,810,764	)	$	6,424,502
Current liabilities:
Current portion of long-term debt	$	34,550	$	—	$	280	$	—		$	34,830
Accounts payable		—		70,767		31,532		—			102,299
Accrued salaries and benefits		—		69,057		29,990		—			99,047
Other accrued liabilities		36,196		27,676		77,341		—			141,213
Total current liabilities		70,746		167,500		139,143		—			377,389
Long-term debt		3,183,049		—		401,017		(379,008	)		3,205,058
Deferred tax liabilities		—		27,975		54,728		(2,370	)		80,333
Other liabilities		—		103,112		63,322		—			166,434
Total liabilities		3,253,795		298,587		658,210		(381,378	)		3,829,214
Redeemable noncontrolling interests		—		—		22,417		—			22,417
Total equity		2,572,871		3,184,256		2,245,130		(5,429,386	)		2,572,871
Total liabilities and equity	$	5,826,666	$	3,482,843	$	2,925,757	$	(5,810,764	)	$	6,424,502

Summary of Condensed Consolidating Statement of Comprehensive Income (Loss)

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	458,061	$	302,855		$	—		$	760,916
Salaries, wages and benefits		5,225			245,599		167,093			—			417,917
Professional fees		—			24,152		35,357			—			59,509
Supplies		—			19,139		10,322			—			29,461
Rents and leases		—			8,294		11,572			—			19,866
Other operating expenses		—			57,495		32,969			—			90,464
Depreciation and amortization		—			18,857		20,802			—			39,659
Interest expense, net		17,225			22,768		6,658			—			46,651
Transaction-related expenses		—			702		1,651			—			2,353
Total expenses		22,450			397,006		286,424			—			705,880
(Loss) income before income taxes		(22,450	)		61,055		16,431			—			55,036
Equity in earnings of subsidiaries		62,854			—		—			(62,854	)		—
(Benefit from) provision for income taxes		(5,875	)		11,666		2,966			—			8,757
Net income (loss)		46,279			49,389		13,465			(62,854	)		46,279
Net gain attributable to noncontrolling interests		—			—		(47	)		—			(47	)
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	46,279		$	49,389	$	13,418		$	(62,854	)	$	46,232
Other comprehensive (loss) income:
Foreign currency translation loss		—			—		(31,959	)		—			(31,959	)
Gain on derivative instruments		7,380			—		—			—			7,380
Other comprehensive income (loss)		7,380			—		(31,959	)		—			(24,579	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	53,659		$	49,389	$	(18,541	)	$	(62,854	)	$	21,653

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue before provision for doubtful accounts	$	—		$	440,423		$	288,289		$	—		$	728,712
Provision for doubtful accounts		—			(10,310	)		(1,688	)		—			(11,998	)
Revenue		—			430,113			286,601			—			716,714
Salaries, wages and benefits		4,175			225,001			156,386			—			385,562
Professional fees		—			24,385			28,657			—			53,042
Supplies		—			18,843			9,809			—			28,652
Rents and leases		—			8,127			10,922			—			19,049
Other operating expenses		—			55,077			27,251			—			82,328
Depreciation and amortization		—			16,963			19,479			—			36,442
Interest expense, net		15,933			19,304			9,278			—			44,515
Transaction-related expenses		—			2,211			3,454			—			5,665
Total expenses		20,108			369,911			265,236			—			655,255
(Loss) income before income taxes		(20,108	)		60,202			21,365			—			61,459
Equity in earnings of subsidiaries		55,925			—			—			(55,925	)		—
(Benefit from) provision for income taxes		(9,672	)		21,202			4,440			—			15,970
Net income (loss)		45,489			39,000			16,925			(55,925	)		45,489
Net loss attributable to noncontrolling interests		—			—			129			—			129
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	45,489		$	39,000		$	17,054		$	(55,925	)	$	45,618
Other comprehensive (loss) income:
Foreign currency translation gain		—			—			69,622			—			69,622
Loss on derivative instruments		(9,402	)		—			—			—			(9,402	)
Other comprehensive (loss) income		(9,402	)		—			69,622			—			60,220
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	36,087		$	39,000		$	86,676		$	(55,925	)	$	105,838

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	1,347,468	$	921,427		$	—		$	2,268,895
Salaries, wages and benefits		19,273			724,650		502,263			—			1,246,186
Professional fees		—			73,100		93,888			—			166,988
Supplies		—			57,143		31,815			—			88,958
Rents and leases		—			24,844		35,546			—			60,390
Other operating expenses		—			168,923		97,054			—			265,977
Depreciation and amortization		—			55,640		63,720			—			119,360
Interest expense, net		47,307			69,954		20,445			—			137,706
Debt extinguishment costs		940			—		—			—			940
Transaction-related expenses		—			7,382		2,626			—			10,008
Total expenses		67,520			1,181,636		847,357			—			2,096,513
(Loss) income before income taxes		(67,520	)		165,832		74,070			—			172,382
Equity in earnings of subsidiaries		206,204			—		—			(206,204	)		—
(Benefit from) provision for income taxes		(17,359	)		22,985		10,713			—			16,339
Net income (loss)		156,043			142,847		63,357			(206,204	)		156,043
Net gain attributable to noncontrolling interests		—			—		(156	)		—			(156	)
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	156,043		$	142,847	$	63,201		$	(206,204	)	$	155,887
Other comprehensive (loss) income:
Foreign currency translation loss		—			—		(82,778	)		—			(82,778	)
Gain on derivative instruments		16,434			—		—			—			16,434
Other comprehensive income (loss)		16,434			—		(82,778	)		—			(66,344	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	172,477		$	142,847	$	(19,577	)	$	(206,204	)	$	89,543

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended September 30, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue before provision for doubtful accounts	$	—		$	1,311,937		$	831,759		$	—		$	2,143,696
Provision for doubtful accounts		—			(28,007	)		(3,885	)		—			(31,892	)
Revenue		—			1,283,930			827,874			—			2,111,804
Salaries, wages and benefits		19,007			675,206			451,365			—			1,145,578
Professional fees		—			69,796			72,976			—			142,772
Supplies		—			56,502			28,498			—			85,000
Rents and leases		—			25,139			32,316			—			57,455
Other operating expenses		—			164,596			84,565			—			249,161
Depreciation and amortization		—			48,918			56,338			—			105,256
Interest expense, net		46,392			57,054			27,331			—			130,777
Debt extinguishment costs		810			—			—			—			810
Transaction-related expenses		—			6,219			12,617			—			18,836
Total expenses		66,209			1,103,430			766,006			—			1,935,645
(Loss) income before income taxes		(66,209	)		180,500			61,868			—			176,159
Equity in earnings of subsidiaries		163,931			—			—			(163,931	)		—
(Benefit from) provision for income taxes		(32,178	)		66,124			12,313			—			46,259
Net income (loss)		129,900			114,376			49,555			(163,931	)		129,900
Net loss attributable to noncontrolling interests		—			—			306			—			306
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	129,900		$	114,376		$	49,861		$	(163,931	)	$	130,206
Other comprehensive (loss) income:
Foreign currency translation gain		—			—			188,744			—			188,744
Loss on derivative instruments		(24,354	)		—			—			—			(24,354	)
Other comprehensive (loss) income		(24,354	)		—			188,744			—			164,390
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	105,546		$	114,376		$	238,605		$	(163,931	)	$	294,596

Summary of Condensed Consolidating Statement of Cash Flows

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	156,043		$	142,847		$	63,357		$	(206,204	)	$	156,043
Adjustments to reconcile net income (loss)    to net cash (used in) provided by continuing    operating activities:
Equity in earnings of subsidiaries		(206,204	)		—			—			206,204			—
Depreciation and amortization		—			55,640			63,720			—			119,360
Amortization of debt issuance costs		8,065			—			(302	)		—			7,763
Equity-based compensation expense		19,273			—			—			—			19,273
Deferred income taxes		74			(2,398	)		586			—			(1,738	)
Debt extinguishment costs		940			—			—			—			940
Other		1,948			1,219			(142	)		—			3,025
Change in operating assets and liabilities:
Accounts receivable, net		—			(39,644	)		(3,608	)		—			(43,252	)
Other current assets		—			7,898			(4,877	)		—			3,021
Other assets		4,596			3,763			105			(4,596	)		3,868
Accounts payable and other accrued liabilities		—			7,835			1,395			—			9,230
Accrued salaries and benefits		—			11,100			(51	)		—			11,049
Other liabilities		—			4,548			(4,399	)		—			149
Net cash (used in) provided by continuing operating     activities		(15,265	)		192,808			115,784			(4,596	)		288,731
Net cash used in discontinued operating activities		—			(2,548	)		—			—			(2,548	)
Net cash (used in) provided by operating activities		(15,265	)		190,260			115,784			(4,596	)		286,183
Investing activities:
Cash paid for capital expenditures		—			(149,402	)		(100,587	)		—			(249,989	)
Cash paid for real estate acquisitions		—			(9,391	)		—			—			(9,391	)
Other		—			(5,718	)		2,604			—			(3,114	)
Net cash used in investing activities		—			(164,511	)		(97,983	)		—			(262,494	)
Financing activities:
Principal payments on long-term debt		(31,492	)		(169	)		(4,427	)		4,596			(31,492	)
Common stock withheld for minimum statutory taxes, net		(2,272	)		—			—			—			(2,272	)
Other		(1,742	)		(2,885	)		(2,346	)		—			(6,973	)
Cash provided by (used in) intercompany activity		50,771			(37,257	)		(13,514	)		—			—
Net provided by (used in) in financing activities		15,265			(40,311	)		(20,287	)		4,596			(40,737	)
Effect of exchange rate changes on cash		—			—			(1,314	)		—			(1,314	)
Net decrease in cash and cash equivalents		—			(14,562	)		(3,800	)		—			(18,362	)
Cash and cash equivalents at beginning of the period		—			46,860			20,430			—			67,290
Cash and cash equivalents at end of the period	$	—		$	32,298		$	16,630		$	—		$	48,928

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	129,900		$	114,376		$	49,555		$	(163,931	)	$	129,900
Adjustments to reconcile net income (loss) to    net cash provided by (used in) continuing    operating activities:
Equity in earnings of subsidiaries		(163,931	)		—			—			163,931			—
Depreciation and amortization		—			48,918			56,338			—			105,256
Amortization of debt issuance costs		7,652			—			(312	)		—			7,340
Equity-based compensation expense		19,007			—			—			—			19,007
Deferred income taxes		156			22,401			6,859			—			29,416
Debt extinguishment costs		810			—			—			—			810
Other		4,216			1,727			4,729			—			10,672
Change in operating assets and liabilities:
Accounts receivable, net		—			(21,183	)		(7,498	)		—			(28,681	)
Other current assets		—			1,126			24,973			—			26,099
Other assets		3,479			(705	)		139			(3,479	)		(566	)
Accounts payable and other accrued liabilities		—			(22,372	)		(4,009	)		—			(26,381	)
Accrued salaries and benefits		—			(4,759	)		(3,178	)		—			(7,937	)
Other liabilities		—			4,084			3,593			—			7,677
Net cash provided by (used in) continuing operating      activities		1,289			143,613			131,189			(3,479	)		272,612
Net cash used in discontinued operating activities		—			(1,261	)		—			—			(1,261	)
Net cash provided by (used in) operating activities		1,289			142,352			131,189			(3,479	)		271,351
Investing activities:
Cash paid for capital expenditures		—			(114,130	)		(79,687	)		—			(193,817	)
Cash paid for real estate acquisitions		—			(33,297	)		—			—			(33,297	)
Other		—			(7,984	)		1,922			—			(6,062	)
Net cash used in investing activities		—			(155,411	)		(77,765	)		—			(233,176	)
Financing activities:
Principal payments on long-term debt		(25,913	)		—			(3,479	)		3,479			(25,913	)
Common stock withheld for minimum statutory taxes, net		(3,278	)		—			—			—			(3,278	)
Other		—			1,649			—			—			1,649
Cash provided by (used in) intercompany activity		27,902			39,443			(67,345	)		—			—
Net (used in) provided by in financing activities		(1,289	)		41,092			(70,824	)		3,479			(27,542	)
Effect of exchange rate changes on cash		—			—			7,965			—			7,965
Net increase (decrease) in cash and cash equivalents		—			28,033			(9,435	)		—			18,598
Cash and cash equivalents at beginning of the period		—			15,681			41,382			—			57,063
Cash and cash equivalents at end of the period	$	—		$	43,714		$	31,947		$	—		$	75,661

XML

Description of Business and Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018 Facility Bed State
Accounting Policies [Abstract]
Number of facilities | Facility	586
Number of beds | Bed	18,000
Number of operating states | State	40

XML

Revenue - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cost report receivables	$ 10,900,000		$ 10,900,000		$ 10,900,000
Costs of providing charity care services	$ 1,000,000	$ 1,300,000	3,800,000	$ 4,200,000
Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cumulative-effect adjustment in retained earnings			$ 0

XML

Revenue - Summary of Impact of Adoption of Accounting Standards (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue before provision for doubtful accounts	$ 760,916	$ 728,712	$ 2,268,895	$ 2,143,696
Provision for doubtful accounts		(11,998)		(31,892)
Revenue	760,916	$ 716,714	2,268,895	$ 2,111,804
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue before provision for doubtful accounts	772,380		2,298,084
Provision for doubtful accounts	(11,464)		(29,189)
Revenue	$ 760,916		$ 2,268,895

XML

Revenue - Schedule of U.S. Revenue Attributed to Each Category (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 760,916	$ 716,714	$ 2,268,895	$ 2,111,804
U.S. Facilities [Member]
Disaggregation of Revenue [Line Items]
Revenue	488,626	453,678	1,432,501	1,355,315
U.S. Facilities [Member] | Acute Inpatient Psychiatric Facilities [Member]
Disaggregation of Revenue [Line Items]
Revenue	208,885	187,497	608,311	566,173
U.S. Facilities [Member] | Specialty Treatment Facilities [Member]
Disaggregation of Revenue [Line Items]
Revenue	198,107	183,290	575,536	543,079
U.S. Facilities [Member] | Residential Treatment Centers [Member]
Disaggregation of Revenue [Line Items]
Revenue	72,351	72,677	218,041	213,300
U.S. Facilities [Member] | Outpatient Community-Based Services [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 9,283	$ 10,214	$ 30,613	$ 32,763

XML

Revenue - Schedule of U.S. Revenue Generated by Each Payor Type (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	$ 760,916	$ 728,712	$ 2,268,895	$ 2,143,696
Provision for doubtful accounts		(11,998)		(31,892)
Revenue	760,916	716,714	2,268,895	2,111,804
U.S. Facilities [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	488,626	465,676	1,432,501	1,387,201
Provision for doubtful accounts		(11,998)		(31,886)
Revenue	488,626	453,678	1,432,501	1,355,315
U.S. Facilities [Member] | Commercial [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	146,439	142,870	431,337	431,818
U.S. Facilities [Member] | Medicare [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	73,528	73,593	210,307	212,992
U.S. Facilities [Member] | Medicaid [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	229,390	199,592	668,236	587,705
U.S. Facilities [Member] | Self-Pay [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	33,559	43,685	103,845	130,928
U.S. Facilities [Member] | Other [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	$ 5,710	$ 5,936	$ 18,776	$ 23,758

XML

Revenue - Schedule of U.K. Revenue Attributed to Each Category (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 760,916	$ 716,714	$ 2,268,895	$ 2,111,804
U.K. Facilities [Member]
Disaggregation of Revenue [Line Items]
Revenue	272,290	263,036	836,394	756,489
U.K. Facilities [Member] | Health Care Facilities [Member]
Disaggregation of Revenue [Line Items]
Revenue	150,871	146,264	464,731	419,549
U.K. Facilities [Member] | Education and Children's Services [Member]
Disaggregation of Revenue [Line Items]
Revenue	46,966	42,441	145,609	124,337
U.K. Facilities [Member] | Adult Care Facilities [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 74,453	$ 74,331	$ 226,054	$ 212,603

XML

Revenue - Schedule of U.K. Revenue Generated by Each Payor Type (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	$ 760,916	$ 728,712	$ 2,268,895	$ 2,143,696
Provision for doubtful accounts		(11,998)		(31,892)
Revenue	760,916	716,714	2,268,895	2,111,804
U.K. Facilities [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	272,290	263,036	836,394	756,495
Provision for doubtful accounts				(6)
Revenue	272,290	263,036	836,394	756,489
U.K. Facilities [Member] | U.K. Public Funded Sources [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	245,919	236,778	756,094	678,623
U.K. Facilities [Member] | Self-Pay [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	26,159	24,572	78,499	70,662
U.K. Facilities [Member] | Other [Member]
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Revenue before provision for doubtful accounts	$ 212	$ 1,686	$ 1,801	$ 7,210

XML

Revenue - Summary of the Activity in Unearned Revenue (Detail) - U.K. Facilities [Member] - Unearned Revenue [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Disaggregation of Revenue [Line Items]
Beginning Balance	$ 30,812
Payments received	126,506
Revenue recognized	(124,894)
Foreign currency translation loss	(1,687)
Ending Balance	$ 30,737

XML

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income attributable to Acadia Healthcare Company, Inc.	$ 46,232	$ 45,618	$ 155,887	$ 130,206
Denominator:
Weighted average shares outstanding for basic earnings per share	87,344	87,017	87,233	86,912
Effect of dilutive instruments	193	155	153	126
Shares used in computing diluted earnings per common share	87,537	87,172	87,386	87,038
Earnings per share attributable to Acadia Healthcare Company, Inc. stockholders:
Basic	$ 0.53	$ 0.52	$ 1.79	$ 1.50
Diluted	$ 0.53	$ 0.52	$ 1.78	$ 1.50

XML

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Excluded common stock for computation of diluted earnings per share	1.6	1.0	1.9	1.5

XML

Other Intangible Assets - Other Identifiable Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule Of Finite and Indefinite Lived Other Intangible Assets [Line Items]
Intangible assets subject to amortization, Gross Carrying Amount	$ 3,247	$ 3,247
Intangible assets not subject to amortization, Gross Carrying Amount	91,259	87,348
Total	94,506	90,595
Intangible assets subject to amortization, Accumulated Amortization	(3,247)	(3,247)
Intangible assets not subject to amortization, Accumulated Amortization	0	0
Total	(3,247)	(3,247)
Contract Intangible Assets [Member]
Schedule Of Finite and Indefinite Lived Other Intangible Assets [Line Items]
Intangible assets subject to amortization, Gross Carrying Amount	2,100	2,100
Intangible assets subject to amortization, Accumulated Amortization	(2,100)	(2,100)
Non-Compete Agreements [Member]
Schedule Of Finite and Indefinite Lived Other Intangible Assets [Line Items]
Intangible assets subject to amortization, Gross Carrying Amount	1,147	1,147
Intangible assets subject to amortization, Accumulated Amortization	(1,147)	(1,147)
Licenses and Accreditations [Member]
Schedule Of Finite and Indefinite Lived Other Intangible Assets [Line Items]
Intangible assets not subject to amortization, Gross Carrying Amount	12,766	12,266
Intangible assets not subject to amortization, Accumulated Amortization	0	0
Trade Names [Member]
Schedule Of Finite and Indefinite Lived Other Intangible Assets [Line Items]
Intangible assets not subject to amortization, Gross Carrying Amount	61,675	60,586
Intangible assets not subject to amortization, Accumulated Amortization	0	0
Certificates of Need [Member]
Schedule Of Finite and Indefinite Lived Other Intangible Assets [Line Items]
Intangible assets not subject to amortization, Gross Carrying Amount	16,818	14,496
Intangible assets not subject to amortization, Accumulated Amortization	$ 0	$ 0

XML

Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,571,765	$ 3,395,549
Less accumulated depreciation	(445,123)	(347,419)
Property and equipment, net	3,126,642	3,048,130
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	444,579	450,342
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,443,980	2,370,918
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	434,205	400,596
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 249,001	$ 173,693

XML

Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 21, 2015
Debt Instrument [Line Items]
Less: unamortized debt issuance costs, discount and premium	$ (43,602)	$ (50,432)
Long-term debt	3,215,226	3,239,888
Less: current portion	(33,264)	(34,830)
Long-term debt	3,181,962	3,205,058
Amended and Restated Senior Credit Facility [Member] | Senior Secured Term A Loans [Member]
Debt Instrument [Line Items]
Senior Secured	370,500	380,000
Amended and Restated Senior Credit Facility [Member] | Senior Secured Term B Loans [Member]
Debt Instrument [Line Items]
Senior Secured	1,376,408	1,398,400
6.125% Senior Notes Due 2021 [Member]
Debt Instrument [Line Items]
Senior Notes	150,000	150,000
5.125% Senior Notes Due 2022 [Member]
Debt Instrument [Line Items]
Senior Notes	300,000	300,000
5.625% Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Senior Notes	650,000	650,000	$ 650,000
6.500% Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Senior Notes	390,000	390,000
9.0% and 9.5% Revenue Bonds [Member]
Debt Instrument [Line Items]
9.0% and 9.5% Revenue Bonds	$ 21,920	$ 21,920

XML

Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Feb. 16, 2016	Sep. 21, 2015	Feb. 11, 2015	Jul. 01, 2014	Mar. 12, 2013
6.125% Senior Notes Due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	6.125%	6.125%					6.125%
Senior notes maturity year	2021	2021
5.125% Senior Notes Due 2022 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	5.125%	5.125%				5.125%
Senior notes maturity year	2022	2022
5.625% Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	5.625%	5.625%		5.625%	5.625%
Senior notes maturity year	2023	2023
6.500% Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	6.50%	6.50%	6.50%
Senior notes maturity year	2024	2024
9.0% Revenue Bonds [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	9.00%	9.00%
9.5% Revenue Bonds [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	9.50%	9.50%

XML

Long-Term Debt (Amended and Restated Senior Credit Facility) - Additional Information (Detail) - USD ($)											3 Months Ended				9 Months Ended		12 Months Ended
	Apr. 17, 2018	Mar. 29, 2018	Mar. 22, 2018	Mar. 21, 2018	Dec. 29, 2017	May 10, 2017	May 09, 2017	Dec. 15, 2015	Dec. 31, 2012	Apr. 01, 2011	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 15, 2014
Debt Instrument [Line Items]
Debt extinguishment costs															$ (940,000)	$ (810,000)
Term loan repayments	$ 15,000,000				$ 22,500,000
Consolidated funded debt, unrestricted and unencumbered cash to consolidated EBITDA																		$ 40,000,000
Term Loan A- Facility [Member]
Debt Instrument [Line Items]
Line of credit		$ 400,000,000
Tranche B-1 Repricing Amendment [Member]
Debt Instrument [Line Items]
Term loan repayments					7,700,000
Tranche B-2 Repricing Amendment [Member]
Debt Instrument [Line Items]
Term loan repayments					$ 14,800,000
Tranche B-3 Facility [Member]
Debt Instrument [Line Items]
Term loan repayments	5,100,000
Tranche B-4 Facilities [Member]
Debt Instrument [Line Items]
Term loan repayments	$ 9,900,000
Eurodollar [Member]
Debt Instrument [Line Items]
Interest on borrowings															2.50%
Base Rate Loans [Member]
Debt Instrument [Line Items]
Interest on borrowings															1.50%
Amended and Restated Senior Credit Facility [Member]
Debt Instrument [Line Items]
Date entered into an agreement									Dec. 31, 2012	Apr. 01, 2011
Amount available under revolving line of credit															$ 494,100,000
Debt instrument maturity date								Nov. 30, 2021									Feb. 11, 2022
Term loan repayments														$ 1,200,000
Amended and Restated Senior Credit Facility [Member] | December 31, 2018 to December 31, 2019 [Member]
Debt Instrument [Line Items]
Term loan principal repayments								$ 4,800,000
Amended and Restated Senior Credit Facility [Member] | March 31, 2020 to December 31, 2020 [Member]
Debt Instrument [Line Items]
Term loan principal repayments								7,100,000
Term loan repayments											$ 1,200,000
Amended and Restated Senior Credit Facility [Member] | March 31, 2021 to September 30, 2021 [Member]
Debt Instrument [Line Items]
Term loan principal repayments								$ 9,500,000
Amended and Restated Senior Credit Facility [Member] | September 30, 2018 to December 31, 2019 [Member]
Debt Instrument [Line Items]
Term loan repayments													$ 1,200,000
Amended and Restated Senior Credit Facility [Member] | September 30, 2015 to December 31, 2015 [Member]
Debt Instrument [Line Items]
Term loan repayments												$ 1,200,000
Amended and Restated Senior Credit Facility [Member] | Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Standby letters of credit outstanding															$ 5,900,000
Amended and Restated Senior Credit Facility [Member] | TLB Facility Due on February 16, 2023 [Member]
Debt Instrument [Line Items]
Term loan repayments														$ 2,300,000
Amended and Restated Senior Credit Facility [Member] | TLB Facility Due on February 16, 2023 [Member] | March 31, 2020 to December 31, 2020 [Member]
Debt Instrument [Line Items]
Term loan repayments											$ 2,300,000
Amended and Restated Senior Credit Facility [Member] | TLB Facility Due on February 16, 2023 [Member] | September 30, 2018 to December 31, 2019 [Member]
Debt Instrument [Line Items]
Term loan repayments													$ 2,300,000
Amended and Restated Senior Credit Facility [Member] | TLB Facility Due on February 16, 2023 [Member] | September 30, 2015 to December 31, 2015 [Member]
Debt Instrument [Line Items]
Term loan repayments												$ 2,300,000
Amended and Restated Senior Credit Facility [Member] | Third Repricing Amendment [Member]
Debt Instrument [Line Items]
Debt extinguishment costs						$ 800,000
Amended and Restated Senior Credit Facility [Member] | Repricing Facilities Amendments [Member]
Debt Instrument [Line Items]
Debt extinguishment costs			$ 900,000
Revolving credit facility applicable rate		0.25%
Amended and Restated Senior Credit Facility [Member] | Repricing Facilities Amendments [Member] | Senior Secured Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit		$ 500,000,000
Amended and Restated Senior Credit Facility [Member] | Repricing Facilities Amendments [Member] | Term Loan A- Facility [Member]
Debt Instrument [Line Items]
Line of credit		$ 380,000,000
Amended and Restated Senior Credit Facility [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Basis spread on variable rate															1.00%
Amended and Restated Senior Credit Facility [Member] | Eurodollar [Member] | Third Repricing Amendment [Member]
Debt Instrument [Line Items]
Interest on borrowings						2.75%	3.00%
Amended and Restated Senior Credit Facility [Member] | Eurodollar [Member] | Repricing Facilities Amendments [Member]
Debt Instrument [Line Items]
Interest on borrowings			2.50%	2.75%
Amended and Restated Senior Credit Facility [Member] | Base Rate Loans [Member]
Debt Instrument [Line Items]
Basis spread on variable rate															0.50%
Amended and Restated Senior Credit Facility [Member] | Base Rate Loans [Member] | Third Repricing Amendment [Member]
Debt Instrument [Line Items]
Interest on borrowings						1.75%	2.00%
Amended and Restated Senior Credit Facility [Member] | Base Rate Loans [Member] | Repricing Facilities Amendments [Member]
Debt Instrument [Line Items]
Interest on borrowings			1.50%	1.75%
Amended and Restated Senior Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest on borrowings															2.50%

XML

Long-Term Debt (6.125% Senior Notes due 2021) - Additional Information (Detail) - 6.125% Senior Notes Due 2021 [Member] - USD ($)		9 Months Ended
	Mar. 12, 2013	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Issued Senior Notes	$ 150,000,000
Debt instrument interest rate	6.125%	6.125%	6.125%
Debt instrument maturity date	Mar. 15, 2021
Interest on the notes		Payable semi-annually in arrears on March 15 and September 15 of each year.

XML

Long-Term Debt (5.125% Senior Notes due 2022) - Additional Information (Detail) - 5.125% Senior Notes Due 2022 [Member] - USD ($)		9 Months Ended
	Jul. 01, 2014	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Issued Senior Notes	$ 300,000,000
Debt instrument interest rate	5.125%	5.125%	5.125%
Debt instrument maturity date	Jul. 01, 2022
Interest on the notes		Payable semi-annually in arrears on January 1 and July 1 of each year.

XML

Long-Term Debt (5.625% Senior Notes due 2023) - Additional Information (Detail) - 5.625% Senior Notes Due 2023 [Member] - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Sep. 21, 2015	Feb. 11, 2015
Debt Instrument [Line Items]
Issued Senior Notes			$ 275,000,000	$ 375,000,000
Debt instrument interest rate	5.625%	5.625%	5.625%	5.625%
Senior Notes	$ 650,000,000	$ 650,000,000	$ 650,000,000
Debt instrument maturity date	Feb. 15, 2023
Interest on the notes	Payable semi-annually in arrears on February 15 and August 15 of each year.

XML

Long-Term Debt (6.500% Senior Notes due 2024) - Additional Information (Detail) - 6.500% Senior Notes Due 2024 [Member] - USD ($)		9 Months Ended
	Feb. 16, 2016	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Issued Senior Notes	$ 390,000,000
Debt instrument interest rate	6.50%	6.50%	6.50%
Debt instrument maturity date	Mar. 01, 2024
Interest on the notes		Payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2016.

XML

Long-Term Debt (9.0% and 9.5% Revenue Bonds) - Additional Information (Detail) - USD ($) $ in Thousands	Nov. 11, 2012	Sep. 30, 2018	Dec. 31, 2017
9.0% and 9.5% Revenue Bonds [Member]
Debt Instrument [Line Items]
9.0% and 9.5% Revenue Bonds		$ 21,920	$ 21,920
9.0% and 9.5% Revenue Bonds [Member] | Park Royal [Member]
Debt Instrument [Line Items]
9.0% and 9.5% Revenue Bonds	$ 23,000
Debt service reserve fund within other assets		$ 2,300	$ 2,300
Debt instrument premium	2,600
9.0% and 9.5% Revenue Bonds [Member] | Fair Value [Member] | Park Royal [Member]
Debt Instrument [Line Items]
9.0% and 9.5% Revenue Bonds	25,600
9.0% Revenue Bonds [Member]
Debt Instrument [Line Items]
Debt instrument interest rate		9.00%	9.00%
9.0% Revenue Bonds [Member] | Park Royal [Member]
Debt Instrument [Line Items]
9.0% and 9.5% Revenue Bonds	$ 7,500
Debt instrument interest rate	9.00%
Debt instrument maturity date	Dec. 01, 2030
9.5% Revenue Bonds [Member]
Debt Instrument [Line Items]
Debt instrument interest rate		9.50%	9.50%
9.5% Revenue Bonds [Member] | Park Royal [Member]
Debt Instrument [Line Items]
9.0% and 9.5% Revenue Bonds	$ 15,500
Debt instrument interest rate	9.50%
Debt instrument maturity date	Dec. 01, 2040

XML

Equity-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized common stock	8,200,000		8,200,000
Equity incentive plan available for future grant	3,233,738		3,233,738
Annual increments in employee grants			25.00%
Stock options, contractual term			10 years
Equity-based compensation expense	$ 5,225,000	$ 4,175,000	$ 19,273,000	$ 19,007,000
Unrecognized compensation expense related to unvested options			$ 47,800,000
Vesting period			1 year 2 months 12 days
Warrant outstanding	0		$ 0
Deferred income tax benefit			(1,738,000)	29,416,000
Stock Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred income tax benefit	$ 1,400,000	$ 1,500,000	$ 5,200,000	$ 7,300,000
Restricted Stock Award [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Restricted Stock Award [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Restricted Stock Units [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years
Number of shares issuable at the end of the vesting period, percentage			0.00%
Restricted Stock Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Number of shares issuable at the end of the vesting period, percentage			200.00%

XML

Equity-Based Compensation - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options outstanding, Beginning balance	974,566	1,000,946
Options granted	353,800	259,300
Options exercised	(9,889)	(87,367)
Options cancelled	(102,787)	(198,313)
Options outstanding, Ending balance	1,215,690	974,566	1,000,946
Options exercisable, Ending balance	543,139	405,634
Options outstanding, Weighted Average Exercise Price, Beginning balance	$ 47.89	$ 49.42
Options granted, Weighted Average Exercise Price	37.36	42.25
Options exercised, Weighted Average Exercise Price	24.67	25.92
Options cancelled, Weighted Average Exercise Price	51.23	54.71
Options outstanding, Weighted Average Exercise Price, Ending balance	44.69	47.89	$ 49.42
Options exercisable, Weighted Average Exercise Price, Ending balance	$ 44.65	$ 41.20
Options outstanding, Weighted Average Remaining Contractual Term	7 years 5 months 4 days	7 years 5 months 15 days	7 years 9 months 18 days
Options granted, Weighted Average Remaining Contractual Term	9 years 5 months 1 day	9 years 3 months 18 days
Options exercisable, Weighted Average Remaining Contractual Term, Ending balance	5 years 10 months 13 days	6 years 18 days
Options outstanding, Aggregate Intrinsic Value	$ 3,536	$ 3,802	$ 8,166
Options granted, Aggregate Intrinsic Value	475	205
Options exercised, Aggregate Intrinsic Value	165	1,636
Options cancelled, Aggregate Intrinsic Value	0	0
Options exercisable, Aggregate Intrinsic Value, Ending balance	$ 2,835	$ 3,549

XML

Equity-Based Compensation - Schedule of Stock Options Valuation Assumptions (Detail) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Weighted average grant-date fair value of options	$ 13.61	$ 14.39
Risk-free interest rate	2.20%	2.00%
Expected volatility	37.00%	33.00%
Expected life (in years)	5 years	5 years 6 months

XML

Equity-Based Compensation - Restricted Stock Activity (Detail) - Restricted Stock Award [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested, Number of Shares/Units, Beginning balance	809,868	844,419
Granted, Number of Shares	441,837	404,224
Cancelled, Number of Shares	(71,067)	(145,981)
Vested, Number of Shares	(283,077)	(292,794)
Unvested, Number of Shares/Units, Ending balance	897,561	809,868
Unvested, Weighted Average Grant-Date Fair Value, Beginning balance	$ 50.19	$ 55.76
Granted, Weighted Average Grant-Date Fair Value	36.51	42.38
Cancelled, Weighted Average Grant-Date Fair Value	48.36	55.03
Vested, Weighted Average Grant-Date Fair Value	53.24	53.07
Unvested, Weighted Average Grant-Date Fair Value, Ending balance	$ 42.64	$ 50.19

XML

Equity-Based Compensation - Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested, Number of Shares/Units, Beginning balance	360,909	273,599
Granted, Number of Units	285,358	219,840
Cancelled, Number of Units	(87,173)
Vested, Number of Units	(72,983)	(132,530)
Unvested, Number of Shares/Units, Ending balance	486,111	360,909
Unvested, Weighted Average Grant-Date Fair Value, Beginning balance	$ 50.04	$ 59.68
Granted, Weighted Average Grant-Date Fair Value	42.26	43.23
Cancelled, Weighted Average Grant-Date Fair Value	55.44
Vested, Weighted Average Grant-Date Fair Value	49.64	58.67
Unvested, Weighted Average Grant-Date Fair Value, Ending balance	$ 44.52	$ 50.04

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Examination [Line Items]
Effective tax rates	15.90%	26.00%	9.50%	26.30%
Discrete tax benefit recorded	$ (8,757)	$ (15,970)	$ (16,339)	$ (46,259)
Increase in income tax provision due to adoption of ASU 2016-09			$ 1,200	$ 1,700
Percentage increase in income tax provision due to adoption of ASU 2016-09			0.70%	1.00%
U.S. federal statutory rate on income before income taxes			21.00%		35.00%
Transition tax on certain repatriated earnings of foreign subsidiaries payable period			8 years
Provisional tax amount			$ 19,300
One-time transition tax liability, foreign earnings	0		0
Deferred tax balance	$ 19,300		19,300
Provisional amount of transition tax liability, foreign subsidiaries			0
Foreign dividends			10,900
Change in Accounting Method Accounted for as Change in Estimate [Member]
Income Tax Examination [Line Items]
Discrete tax benefit recorded			$ 10,500

XML

Derivatives - Additional Information (Detail)	1 Months Ended
	May 31, 2016 USD ($)	May 31, 2016 GBP (£)	Sep. 30, 2018 USD ($)	May 31, 2016 GBP (£)
Derivative [Line Items]
Cross currency swap assets			$ 33,100,000
Cross Currency Swap Assets [Member]
Derivative [Line Items]
Notional amount	$ 650,000,000			£ 449,300,000
Cross currency swap agreement cash flow due to interest payment	$ 35,800,000	£ 24,700,000
Derivative exchange rate	1.45			1.45

XML

Fair Value Measurements - Carrying Amounts and Fair Values of Company's Amended and Restated Senior Credit Facilities and Contingent Consideration Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative instrument assets	$ 33,084	$ 12,997
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative instrument assets	33,084	12,997
Carrying Amount [Member] | Amended and Restated Senior Credit Facility [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Secured	1,722,010	1,749,185
Carrying Amount [Member] | 6.125% Senior Notes Due 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes	148,514	148,098
Carrying Amount [Member] | 5.125% Senior Notes Due 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes	296,750	296,174
Carrying Amount [Member] | 5.625% Senior Notes Due 2023 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes	642,932	641,891
Carrying Amount [Member] | 6.500% Senior Notes due 2024 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes	383,033	382,251
Carrying Amount [Member] | 9.0% and 9.5% Revenue Bonds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
9.0% and 9.5% Revenue Bonds	21,987	22,289
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative instrument assets	33,084	12,997
Fair Value [Member] | Amended and Restated Senior Credit Facility [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amended and Restated Senior Credit Facility	1,722,010	1,749,185
Fair Value [Member] | 6.125% Senior Notes Due 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes	149,257	150,134
Fair Value [Member] | 5.125% Senior Notes Due 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes	296,008	296,914
Fair Value [Member] | 5.625% Senior Notes Due 2023 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes	647,561	651,519
Fair Value [Member] | 6.500% Senior Notes due 2024 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes	395,960	397,541
Fair Value [Member] | 9.0% and 9.5% Revenue Bonds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
9.0% and 9.5% Revenue Bonds	$ 21,987	$ 22,289

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Fair Value Measurements - Additional Information (Detail)	Sep. 30, 2018	Dec. 31, 2017	Feb. 16, 2016	Sep. 21, 2015	Feb. 11, 2015	Jul. 01, 2014	Mar. 12, 2013
6.125% Senior Notes Due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	6.125%	6.125%					6.125%
5.125% Senior Notes Due 2022 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	5.125%	5.125%				5.125%
5.625% Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	5.625%	5.625%		5.625%	5.625%
6.500% Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	6.50%	6.50%	6.50%
9.0% Revenue Bonds [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	9.00%	9.00%
9.5% Revenue Bonds [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	9.50%	9.50%

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Commitments and Contingencies - Additional Information (Detail)	3 Months Ended	9 Months Ended
	Sep. 30, 2018 Facility	Sep. 30, 2018 USD ($)
Loss Contingencies [Line Items]
Maximum professional liability aggregate policy limit		$ 75,000,000
West Virginia [Member]
Loss Contingencies [Line Items]
Number of comprehensive treatment centers operate | Facility	7
Maximum [Member]
Loss Contingencies [Line Items]
Maximum self insured professional liability limit per claim		3,000,000
Minimum [Member]
Loss Contingencies [Line Items]
Maximum professional liability retention limit		$ 3,000,000

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Noncontrolling Interests - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018 Facility
Noncontrolling Interest [Line Items]
Number of facilities operated by non-wholly owned subsidiaries	4
Minimum [Member]
Noncontrolling Interest [Line Items]
Equity ownership interests percentage in the facility	60.00%
Maximum [Member]
Noncontrolling Interest [Line Items]
Equity ownership interests percentage in the facility	80.00%

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Noncontrolling Interests - Summary of Redeemable Noncontrolling Interests (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Noncontrolling Interest [Abstract]
Beginning Balance	$ 22,417
Contribution of redeemable noncontrolling interests	6,125
Net income attributable to noncontrolling interests	156
Ending Balance	$ 28,698

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Other Current Assets - Other Current Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Prepaid expenses	$ 35,682	$ 27,320
Other receivables	30,203	30,455
Income taxes receivable	11,326	15,056
Workers’ compensation deposits – current portion	10,000	10,000
Inventory	5,021	4,787
Insurance receivable-current portion	2,049	17,588
Other	1,865	2,129
Other current assets	$ 96,146	$ 107,335

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Other Accrued Liabilities - Summary of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts Payable And Accrued Liabilities Current [Abstract]
Accrued expenses	$ 42,876	$ 37,268
Unearned income	31,581	31,342
Accrued interest	12,835	36,370
Income taxes payable	11,312	1,012
Insurance liability – current portion	4,956	22,788
Accrued property taxes	5,570	3,945
Other	5,284	8,488
Other accrued liabilities	$ 114,414	$ 141,213

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Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018 Facility Bed State
Segment Reporting Information [Line Items]
Number of facilities | Facility	586
Number of beds | Bed	18,000
Number of operating states | State	40
U.S. Facilities [Member]
Segment Reporting Information [Line Items]
Number of facilities | Facility	215
Number of beds | Bed	9,200
Number of operating states | State	40
U.K. Facilities [Member]
Segment Reporting Information [Line Items]
Number of facilities | Facility	371
Number of beds | Bed	8,800

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Segment Information - Summary of Reconciliation of Segment EBITDA to Income from Continuing Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 760,916	$ 716,714	$ 2,268,895	$ 2,111,804
Segment EBITDA	148,924	152,256	459,669	450,845
Equity-based compensation expense	(5,225)	(4,175)	(19,273)	(19,007)
Transaction-related expenses	(2,353)	(5,665)	(10,008)	(18,836)
Debt extinguishment costs			(940)	(810)
Interest expense, net	(46,651)	(44,515)	(137,706)	(130,777)
Depreciation and amortization	(39,659)	(36,442)	(119,360)	(105,256)
Income before income taxes	55,036	61,459	172,382	176,159
U.S. Facilities [Member] | Operating Segment [Member]
Segment Reporting Information [Line Items]
Revenue	488,626	453,678	1,432,501	1,355,315
Segment EBITDA	128,537	118,744	375,663	359,250
U.K. Facilities [Member] | Operating Segment [Member]
Segment Reporting Information [Line Items]
Revenue	272,290	263,036	836,394	756,489
Segment EBITDA	40,735	50,665	146,081	146,941
Corporate and Other [Member] | Corporate Reconciling Items and Eliminations [Member]
Segment Reporting Information [Line Items]
Segment EBITDA	$ (20,348)	$ (17,153)	$ (62,075)	$ (55,346)

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Segment Information - Summary of Financial Information by Operating Segment, Goodwill (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Goodwill:
Beginning balance	$ 2,751,174
Increase from contribution of redeemable noncontrolling interests	2,244
Foreign currency translation loss	(24,239)
Prior year purchase price adjustments	762
Ending balance	2,729,941
U.S. Facilities [Member] | Operating Segment [Member]
Goodwill:
Beginning balance	2,042,592
Increase from contribution of redeemable noncontrolling interests	2,244
Ending balance	2,044,836
U.K. Facilities [Member] | Operating Segment [Member]
Goodwill:
Beginning balance	708,582
Foreign currency translation loss	(24,239)
Prior year purchase price adjustments	762
Ending balance	$ 685,105

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Segment Information - Summary of Financial Information by Operating Segment, Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets:
Assets	$ 6,529,584	$ 6,424,502
U.S. Facilities [Member] | Operating Segment [Member]
Assets:
Assets	3,753,345	3,567,126
U.K. Facilities [Member] | Operating Segment [Member]
Assets:
Assets	2,568,318	2,647,150
Corporate and Other [Member] | Corporate Reconciling Items and Eliminations [Member]
Assets:
Assets	$ 207,921	$ 210,226

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Segment Information - Summary of Financial Information by Operating Segment, Assets (Parenthetical) (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Segment Reporting, Asset Reconciling Item [Line Items]
Property and equipment, net	$ 3,126,642	$ 3,048,130
Operating Segment [Member] | U.S. Facilities [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Property and equipment, net	1,300,000	1,200,000
Operating Segment [Member] | U.K. Facilities [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Property and equipment, net	1,800,000	1,800,000
Corporate Reconciling Items and Eliminations [Member] | Corporate and Other [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Property and equipment, net	$ 53,900	$ 49,200

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Accumulated Other Comprehensive Loss - Components Of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			$ 2,572,871
Foreign currency translation (loss) gain	$ (31,959)	$ 69,622	(82,778)	$ 188,744
Gain on derivative instruments, net of tax of $5.6 million	7,380	$ (9,402)	16,434	$ (24,354)
Balance	2,680,249		2,680,249
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			(376,740)
Foreign currency translation (loss) gain			(82,935)
Balance	(459,675)		(459,675)
Change in Fair Value of Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			7,167
Gain on derivative instruments, net of tax of $5.6 million			16,434
Balance	23,601		23,601
Pension Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			(4,545)
Foreign currency translation (loss) gain			157
Balance	(4,388)		(4,388)
Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			(374,118)
Balance	$ (440,462)		$ (440,462)

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Accumulated Other Comprehensive Loss - Components Of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Gain (Loss) on derivative instruments, tax	$ 2.4	$ (6.7)	$ 5.6	$ (18.8)

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Financial Information for the Company and Its Subsidiaries - Additional Information (Detail)	Sep. 30, 2018	Dec. 31, 2017	Feb. 16, 2016	Sep. 21, 2015	Feb. 11, 2015	Jul. 01, 2014	Mar. 12, 2013
6.125% Senior Notes Due 2021 [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate	6.125%	6.125%					6.125%
5.125% Senior Notes Due 2022 [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate	5.125%	5.125%				5.125%
5.625% Senior Notes Due 2023 [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate	5.625%	5.625%		5.625%	5.625%
6.500% Senior Notes Due 2024 [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate	6.50%	6.50%	6.50%

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Financial Information for the Company and Its Subsidiaries - Summary of Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 48,928	$ 67,290	$ 75,661	$ 57,063
Accounts receivable, net	345,659	296,925
Other current assets	96,146	107,335
Total current assets	490,733	471,550
Property and equipment, net	3,126,642	3,048,130
Goodwill	2,729,941	2,751,174
Intangible assets, net	91,259	87,348
Deferred tax assets	3,630	3,731
Derivative instruments assets	33,084	12,997
Other assets	54,295	49,572
Total assets	6,529,584	6,424,502
Current liabilities:
Current portion of long-term debt	33,264	34,830
Accounts payable	133,914	102,299
Accrued salaries and benefits	109,151	99,047
Other accrued liabilities	114,414	141,213
Total current liabilities	390,743	377,389
Long-term debt	3,181,962	3,205,058
Deferred tax liabilities	82,269	80,333
Other liabilities	165,663	166,434
Total liabilities	3,820,637	3,829,214
Redeemable noncontrolling interests	28,698	22,417
Total equity	2,680,249	2,572,871
Total liabilities and equity	6,529,584	6,424,502
Consolidating Adjustments [Member]
Current assets:
Deferred tax assets	(2,296)	(2,370)
Investment in subsidiaries	(5,523,816)	(5,429,386)
Other assets	(323,668)	(379,008)
Total assets	(5,849,780)	(5,810,764)
Current liabilities:
Long-term debt	(323,668)	(379,008)
Deferred tax liabilities	(2,296)	(2,370)
Total liabilities	(325,964)	(381,378)
Total equity	(5,523,816)	(5,429,386)
Total liabilities and equity	(5,849,780)	(5,810,764)
Parent [Member]
Current assets:
Deferred tax assets	2,296	2,370
Derivative instruments assets	33,084	12,997
Investment in subsidiaries	5,523,816	5,429,386
Other assets	326,442	381,913
Total assets	5,885,638	5,826,666
Current liabilities:
Current portion of long-term debt	32,984	34,550
Other accrued liabilities	12,150	36,196
Total current liabilities	45,134	70,746
Long-term debt	3,160,255	3,183,049
Total liabilities	3,205,389	3,253,795
Total equity	2,680,249	2,572,871
Total liabilities and equity	5,885,638	5,826,666
Combined Subsidiary Guarantors [Member]
Current assets:
Cash and cash equivalents	32,298	46,860	43,714	15,681
Accounts receivable, net	270,535	230,890
Other current assets	70,260	85,746
Total current assets	373,093	363,496
Property and equipment, net	1,197,218	1,086,802
Goodwill	1,936,057	1,936,057
Intangible assets, net	58,405	57,628
Other assets	42,688	38,860
Total assets	3,607,461	3,482,843
Current liabilities:
Accounts payable	90,497	70,767
Accrued salaries and benefits	80,156	69,057
Other accrued liabilities	34,908	27,676
Total current liabilities	205,561	167,500
Deferred tax liabilities	31,180	27,975
Other liabilities	109,181	103,112
Total liabilities	345,922	298,587
Total equity	3,261,539	3,184,256
Total liabilities and equity	3,607,461	3,482,843
Combined Non-Guarantors [Member]
Current assets:
Cash and cash equivalents	16,630	20,430	$ 31,947	$ 41,382
Accounts receivable, net	75,124	66,035
Other current assets	25,886	21,589
Total current assets	117,640	108,054
Property and equipment, net	1,929,424	1,961,328
Goodwill	793,884	815,117
Intangible assets, net	32,854	29,720
Deferred tax assets	3,630	3,731
Other assets	8,833	7,807
Total assets	2,886,265	2,925,757
Current liabilities:
Current portion of long-term debt	280	280
Accounts payable	43,417	31,532
Accrued salaries and benefits	28,995	29,990
Other accrued liabilities	67,356	77,341
Total current liabilities	140,048	139,143
Long-term debt	345,375	401,017
Deferred tax liabilities	53,385	54,728
Other liabilities	56,482	63,322
Total liabilities	595,290	658,210
Redeemable noncontrolling interests	28,698	22,417
Total equity	2,262,277	2,245,130
Total liabilities and equity	$ 2,886,265	$ 2,925,757

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Financial Information for the Company and Its Subsidiaries - Summary of Condensed Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Condensed Financial Statements, Captions [Line Items]
Revenue before provision for doubtful accounts	$ 760,916	$ 728,712	$ 2,268,895	$ 2,143,696
Provision for doubtful accounts		(11,998)		(31,892)
Revenue	760,916	716,714	2,268,895	2,111,804
Salaries, wages and benefits	417,917	385,562	1,246,186	1,145,578
Professional fees	59,509	53,042	166,988	142,772
Supplies	29,461	28,652	88,958	85,000
Rents and leases	19,866	19,049	60,390	57,455
Other operating expenses	90,464	82,328	265,977	249,161
Depreciation and amortization	39,659	36,442	119,360	105,256
Interest expense, net	46,651	44,515	137,706	130,777
Debt extinguishment costs			940	810
Transaction-related expenses	2,353	5,665	10,008	18,836
Total expenses	705,880	655,255	2,096,513	1,935,645
(Loss) income before income taxes	55,036	61,459	172,382	176,159
(Benefit from) provision for income taxes	8,757	15,970	16,339	46,259
Net income	46,279	45,489	156,043	129,900
Net gain (loss) attributable to noncontrolling interests	(47)	129	(156)	306
Net income attributable to Acadia Healthcare Company, Inc.	46,232	45,618	155,887	130,206
Other comprehensive (loss) income:
Foreign currency translation (loss) gain	(31,959)	69,622	(82,778)	188,744
Gain on derivative instruments, net of tax of $5.6 million	7,380	(9,402)	16,434	(24,354)
Other comprehensive (loss) income	(24,579)	60,220	(66,344)	164,390
Comprehensive income attributable to Acadia Healthcare Company, Inc.	21,653	105,838	89,543	294,596
Consolidating Adjustments [Member]
Condensed Financial Statements, Captions [Line Items]
Equity in earnings of subsidiaries	(62,854)	(55,925)	(206,204)	(163,931)
Net income	(62,854)	(55,925)	(206,204)	(163,931)
Net income attributable to Acadia Healthcare Company, Inc.	(62,854)	(55,925)	(206,204)	(163,931)
Other comprehensive (loss) income:
Comprehensive income attributable to Acadia Healthcare Company, Inc.	(62,854)	(55,925)	(206,204)	(163,931)
Parent [Member]
Condensed Financial Statements, Captions [Line Items]
Salaries, wages and benefits	5,225	4,175	19,273	19,007
Interest expense, net	17,225	15,933	47,307	46,392
Debt extinguishment costs			940	810
Total expenses	22,450	20,108	67,520	66,209
(Loss) income before income taxes	(22,450)	(20,108)	(67,520)	(66,209)
Equity in earnings of subsidiaries	62,854	55,925	206,204	163,931
(Benefit from) provision for income taxes	(5,875)	(9,672)	(17,359)	(32,178)
Net income	46,279	45,489	156,043	129,900
Net income attributable to Acadia Healthcare Company, Inc.	46,279	45,489	156,043	129,900
Other comprehensive (loss) income:
Gain on derivative instruments, net of tax of $5.6 million	7,380	(9,402)	16,434	(24,354)
Other comprehensive (loss) income	7,380	(9,402)	16,434	(24,354)
Comprehensive income attributable to Acadia Healthcare Company, Inc.	53,659	36,087	172,477	105,546
Combined Subsidiary Guarantors [Member]
Condensed Financial Statements, Captions [Line Items]
Revenue before provision for doubtful accounts		440,423		1,311,937
Provision for doubtful accounts		(10,310)		(28,007)
Revenue	458,061	430,113	1,347,468	1,283,930
Salaries, wages and benefits	245,599	225,001	724,650	675,206
Professional fees	24,152	24,385	73,100	69,796
Supplies	19,139	18,843	57,143	56,502
Rents and leases	8,294	8,127	24,844	25,139
Other operating expenses	57,495	55,077	168,923	164,596
Depreciation and amortization	18,857	16,963	55,640	48,918
Interest expense, net	22,768	19,304	69,954	57,054
Transaction-related expenses	702	2,211	7,382	6,219
Total expenses	397,006	369,911	1,181,636	1,103,430
(Loss) income before income taxes	61,055	60,202	165,832	180,500
(Benefit from) provision for income taxes	11,666	21,202	22,985	66,124
Net income	49,389	39,000	142,847	114,376
Net income attributable to Acadia Healthcare Company, Inc.	49,389	39,000	142,847	114,376
Other comprehensive (loss) income:
Comprehensive income attributable to Acadia Healthcare Company, Inc.	49,389	39,000	142,847	114,376
Combined Non-Guarantors [Member]
Condensed Financial Statements, Captions [Line Items]
Revenue before provision for doubtful accounts		288,289		831,759
Provision for doubtful accounts		(1,688)		(3,885)
Revenue	302,855	286,601	921,427	827,874
Salaries, wages and benefits	167,093	156,386	502,263	451,365
Professional fees	35,357	28,657	93,888	72,976
Supplies	10,322	9,809	31,815	28,498
Rents and leases	11,572	10,922	35,546	32,316
Other operating expenses	32,969	27,251	97,054	84,565
Depreciation and amortization	20,802	19,479	63,720	56,338
Interest expense, net	6,658	9,278	20,445	27,331
Transaction-related expenses	1,651	3,454	2,626	12,617
Total expenses	286,424	265,236	847,357	766,006
(Loss) income before income taxes	16,431	21,365	74,070	61,868
(Benefit from) provision for income taxes	2,966	4,440	10,713	12,313
Net income	13,465	16,925	63,357	49,555
Net gain (loss) attributable to noncontrolling interests	(47)	129	(156)	306
Net income attributable to Acadia Healthcare Company, Inc.	13,418	17,054	63,201	49,861
Other comprehensive (loss) income:
Foreign currency translation (loss) gain	(31,959)	69,622	(82,778)	188,744
Other comprehensive (loss) income	(31,959)	69,622	(82,778)	188,744
Comprehensive income attributable to Acadia Healthcare Company, Inc.	$ (18,541)	$ 86,676	$ (19,577)	$ 238,605

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Financial Information for the Company and Its Subsidiaries - Summary of Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net income	$ 46,279	$ 45,489	$ 156,043	$ 129,900
Adjustments to reconcile net income (loss) to net cash (used in) provided by continuing operating activities:
Depreciation and amortization	39,659	36,442	119,360	105,256
Amortization of debt issuance costs			7,763	7,340
Equity-based compensation expense	5,225	4,175	19,273	19,007
Deferred income taxes			(1,738)	29,416
Debt extinguishment costs			940	810
Other			3,025	10,672
Change in operating assets and liabilities:
Accounts receivable, net			(43,252)	(28,681)
Other current assets			3,021	26,099
Other assets			3,868	(566)
Accounts payable and other accrued liabilities			9,230	(26,381)
Accrued salaries and benefits			11,049	(7,937)
Other liabilities			149	7,677
Net cash provided by continuing operating activities			288,731	272,612
Net cash used in discontinued operating activities			(2,548)	(1,261)
Net cash provided by operating activities			286,183	271,351
Investing activities:
Cash paid for capital expenditures			(249,989)	(193,817)
Cash paid for real estate acquisitions			(9,391)	(33,297)
Other			(3,114)	(6,062)
Net cash used in investing activities			(262,494)	(233,176)
Financing activities:
Principal payments on long-term debt			(31,492)	(25,913)
Common stock withheld for minimum statutory taxes, net			(2,272)	(3,278)
Other			(6,973)	1,649
Net cash used in financing activities			(40,737)	(27,542)
Effect of exchange rate changes on cash			(1,314)	7,965
Net (decrease) increase in cash and cash equivalents			(18,362)	18,598
Cash and cash equivalents at beginning of the period			67,290	57,063
Cash and cash equivalents at end of the period	48,928	75,661	48,928	75,661
Consolidating Adjustments [Member]
Operating activities:
Net income	(62,854)	(55,925)	(206,204)	(163,931)
Adjustments to reconcile net income (loss) to net cash (used in) provided by continuing operating activities:
Equity in earnings of subsidiaries	62,854	55,925	206,204	163,931
Change in operating assets and liabilities:
Other assets			(4,596)	(3,479)
Net cash provided by continuing operating activities			(4,596)	(3,479)
Net cash provided by operating activities			(4,596)	(3,479)
Financing activities:
Principal payments on long-term debt			4,596	3,479
Net cash used in financing activities			4,596	3,479
Parent [Member]
Operating activities:
Net income	46,279	45,489	156,043	129,900
Adjustments to reconcile net income (loss) to net cash (used in) provided by continuing operating activities:
Equity in earnings of subsidiaries	(62,854)	(55,925)	(206,204)	(163,931)
Amortization of debt issuance costs			8,065	7,652
Equity-based compensation expense			19,273	19,007
Deferred income taxes			74	156
Debt extinguishment costs			940	810
Other			1,948	4,216
Change in operating assets and liabilities:
Other assets			4,596	3,479
Net cash provided by continuing operating activities			(15,265)	1,289
Net cash provided by operating activities			(15,265)	1,289
Financing activities:
Principal payments on long-term debt			(31,492)	(25,913)
Common stock withheld for minimum statutory taxes, net			(2,272)	(3,278)
Other			(1,742)
Cash provided by (used in) intercompany activity			50,771	27,902
Net cash used in financing activities			15,265	(1,289)
Combined Subsidiary Guarantors [Member]
Operating activities:
Net income	49,389	39,000	142,847	114,376
Adjustments to reconcile net income (loss) to net cash (used in) provided by continuing operating activities:
Depreciation and amortization	18,857	16,963	55,640	48,918
Deferred income taxes			(2,398)	22,401
Other			1,219	1,727
Change in operating assets and liabilities:
Accounts receivable, net			(39,644)	(21,183)
Other current assets			7,898	1,126
Other assets			3,763	(705)
Accounts payable and other accrued liabilities			7,835	(22,372)
Accrued salaries and benefits			11,100	(4,759)
Other liabilities			4,548	4,084
Net cash provided by continuing operating activities			192,808	143,613
Net cash used in discontinued operating activities			(2,548)	(1,261)
Net cash provided by operating activities			190,260	142,352
Investing activities:
Cash paid for capital expenditures			(149,402)	(114,130)
Cash paid for real estate acquisitions			(9,391)	(33,297)
Other			(5,718)	(7,984)
Net cash used in investing activities			(164,511)	(155,411)
Financing activities:
Principal payments on long-term debt			(169)
Other			(2,885)	1,649
Cash provided by (used in) intercompany activity			(37,257)	39,443
Net cash used in financing activities			(40,311)	41,092
Net (decrease) increase in cash and cash equivalents			(14,562)	28,033
Cash and cash equivalents at beginning of the period			46,860	15,681
Cash and cash equivalents at end of the period	32,298	43,714	32,298	43,714
Combined Non-Guarantors [Member]
Operating activities:
Net income	13,465	16,925	63,357	49,555
Adjustments to reconcile net income (loss) to net cash (used in) provided by continuing operating activities:
Depreciation and amortization	20,802	19,479	63,720	56,338
Amortization of debt issuance costs			(302)	(312)
Deferred income taxes			586	6,859
Other			(142)	4,729
Change in operating assets and liabilities:
Accounts receivable, net			(3,608)	(7,498)
Other current assets			(4,877)	24,973
Other assets			105	139
Accounts payable and other accrued liabilities			1,395	(4,009)
Accrued salaries and benefits			(51)	(3,178)
Other liabilities			(4,399)	3,593
Net cash provided by continuing operating activities			115,784	131,189
Net cash provided by operating activities			115,784	131,189
Investing activities:
Cash paid for capital expenditures			(100,587)	(79,687)
Other			2,604	1,922
Net cash used in investing activities			(97,983)	(77,765)
Financing activities:
Principal payments on long-term debt			(4,427)	(3,479)
Other			(2,346)
Cash provided by (used in) intercompany activity			(13,514)	(67,345)
Net cash used in financing activities			(20,287)	(70,824)
Effect of exchange rate changes on cash			(1,314)	7,965
Net (decrease) increase in cash and cash equivalents			(3,800)	(9,435)
Cash and cash equivalents at beginning of the period			20,430	41,382
Cash and cash equivalents at end of the period	$ 16,630	$ 31,947	$ 16,630	$ 31,947

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Subsequent Events - Additional Information (Detail) $ in Millions	Oct. 31, 2018 USD ($) Bed	Oct. 23, 2018 USD ($) Facility	Oct. 22, 2018	Sep. 30, 2018 Bed	Dec. 31, 2017
Subsequent Event [Line Items]
Number of beds | Bed				18,000
Subsequent Event [Member] | Mission Treatment [Member]
Subsequent Event [Line Items]
Business acquisition cash consideration | $		$ 22.5
Subsequent Event [Member] | Mission Treatment [Member] | California, Nevada, Arizona and Oklahoma [Member]
Subsequent Event [Line Items]
Number of comprehensive treatment centers operate | Facility		9
Subsequent Event [Member] | Whittier Pavilion [Member]
Subsequent Event [Line Items]
Business acquisition cash consideration | $	$ 17.9
Subsequent Event [Member] | Whittier Pavilion [Member] | Massachusetts [Member]
Subsequent Event [Line Items]
Number of beds | Bed	71
9.0% Revenue Bonds [Member]
Subsequent Event [Line Items]
Debt instrument interest rate				9.00%	9.00%
9.0% Revenue Bonds [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt instrument interest rate			9.00%
Debt instrument, redemption price percentage of principal amount			104.00%
Debt instrument, Redemption date			Dec. 01, 2018
9.5% Revenue Bonds [Member]
Subsequent Event [Line Items]
Debt instrument interest rate				9.50%	9.50%
9.5% Revenue Bonds [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Debt instrument interest rate			9.50%
Debt instrument, redemption price percentage of principal amount			104.00%
Debt instrument, Redemption date			Dec. 01, 2018