Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statement of Operations

	For the Year Ended December 31, 2013
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net operating revenues	$	12.2		$	1,622.4		$	709.8		$	(71.2	)	$	2,273.2
Less: Provision for doubtful accounts	—			(18.3		)	(7.7		)	—			(26.0		)
Net operating revenues less provision for doubtful accounts	12.2			1,604.1			702.1			(71.2		)	2,247.2
Operating expenses:
Salaries and benefits	12.1			757.7			334.4			(14.5		)	1,089.7
Other operating expenses	10.8			238.5			107.4			(33.7		)	323.0
Occupancy costs	4.1			48.3			17.5			(22.9		)	47.0
Supplies	—			73.8			31.6			—			105.4
General and administrative expenses	119.1			—			—			—			119.1
Depreciation and amortization	8.8			65.1			20.8			—			94.7
Government, class action, and related settlements	(23.5		)	—			—			—			(23.5		)
Professional fees—accounting, tax, and legal	9.5			—			—			—			9.5
Total operating expenses	140.9			1,183.4			511.7			(71.1		)	1,764.9
Loss on early extinguishment of debt	2.4			—			—			—			2.4
Interest expense and amortization of debt discounts and fees	90.4			8.1			3.1			(1.2		)	100.4
Other income	(1.0		)	(1.2		)	(3.5		)	1.2			(4.5		)
Equity in net income of nonconsolidated affiliates	(3.6		)	(7.5		)	(0.1		)	—			(11.2		)
Equity in net income of consolidated affiliates	(268.0		)	(20.6		)	—			288.6			—
Management fees	(102.3		)	78.6			23.7			—			—
Income from continuing operations before income tax (benefit) expense	153.4			363.3			167.2			(288.7		)	395.2
Provision for income tax (benefit) expense	(169.0		)	134.4			47.3			—			12.7
Income from continuing operations	322.4			228.9			119.9			(288.7		)	382.5
Income (loss) from discontinued operations, net of tax	1.2			(0.8		)	(1.5		)	—			(1.1		)
Net Income	323.6			228.1			118.4			(288.7		)	381.4
Less: Net income attributable to noncontrolling interests	—			—			(57.8		)	—			(57.8		)
Net income attributable to HealthSouth	$	323.6		$	228.1		$	60.6		$	(288.7	)	$	323.6
Comprehensive income	$	322.1		$	228.1		$	118.4		$	(288.7	)	$	379.9
Comprehensive income attributable to HealthSouth	$	322.1		$	228.1		$	60.6		$	(288.7	)	$	322.1

	For the Year Ended December 31, 2012
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net operating revenues	$	9.0		$	1,562.8		$	649.3		$	(59.2	)	$	2,161.9
Less: Provision for doubtful accounts	(0.3		)	(18.0		)	(8.7		)	—			(27.0		)
Net operating revenues less provision for doubtful accounts	8.7			1,544.8			640.6			(59.2		)	2,134.9
Operating expenses:
Salaries and benefits	19.8			735.4			308.6			(13.6		)	1,050.2
Other operating expenses	10.6			224.8			97.4			(29.0		)	303.8
Occupancy costs	4.1			44.5			16.6			(16.6		)	48.6
Supplies	0.1			73.3			29.0			—			102.4
General and administrative expenses	117.9			—			—			—			117.9
Depreciation and amortization	8.6			57.1			16.8			—			82.5
Government, class action, and related settlements	(3.5		)	—			—			—			(3.5		)
Professional fees—accounting, tax, and legal	16.1			—			—			—			16.1
Total operating expenses	173.7			1,135.1			468.4			(59.2		)	1,718.0
Loss on early extinguishment of debt	4.0			—			—			—			4.0
Interest expense and amortization of debt discounts and fees	85.1			7.5			2.6			(1.1		)	94.1
Other income	(1.2		)	(5.0		)	(3.4		)	1.1			(8.5		)
Equity in net income of nonconsolidated affiliates	(4.3		)	(8.4		)	—			—			(12.7		)
Equity in net income of consolidated affiliates	(258.6		)	(21.5		)	—			280.1			—
Management fees	(97.8		)	75.8			22.0			—			—
Income from continuing operations before income tax (benefit) expense	107.8			361.3			151.0			(280.1		)	340.0
Provision for income tax (benefit) expense	(75.9		)	146.2			38.3			—			108.6
Income from continuing operations	183.7			215.1			112.7			(280.1		)	231.4
Income from discontinued operations, net of tax	1.3			1.3			1.9			—			4.5
Net Income	185.0			216.4			114.6			(280.1		)	235.9
Less: Net income attributable to noncontrolling interests	—			—			(50.9		)	—			(50.9		)
Net income attributable to HealthSouth	$	185.0		$	216.4		$	63.7		$	(280.1	)	$	185.0
Comprehensive income	$	186.6		$	216.4		$	114.6		$	(280.1	)	$	237.5
Comprehensive income attributable to HealthSouth	$	186.6		$	216.4		$	63.7		$	(280.1	)	$	186.6

	For the Year Ended December 31, 2011
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net operating revenues	$	5.8		$	1,464.9		$	601.4		$	(45.2	)	$	2,026.9
Less: Provision for doubtful accounts	—			(15.5		)	(5.5		)	—			(21.0		)
Net operating revenues less provision for doubtful accounts	5.8			1,449.4			595.9			(45.2		)	2,005.9
Operating expenses:
Salaries and benefits	18.4			691.6			285.5			(13.5		)	982.0
Other operating expenses	10.0			209.7			90.3			(21.7		)	288.3
Occupancy costs	3.8			36.9			17.7			(10.0		)	48.4
Supplies	—			73.9			28.9			—			102.8
General and administrative expenses	110.5			—			—			—			110.5
Depreciation and amortization	9.5			52.5			16.8			—			78.8
Government, class action, and related settlements	(12.3		)	—			—			—			(12.3		)
Professional fees—accounting, tax, and legal	21.0			—			—			—			21.0
Total operating expenses	160.9			1,064.6			439.2			(45.2		)	1,619.5
Loss on early extinguishment of debt	38.8			—			—			—			38.8
Interest expense and amortization of debt discounts and fees	109.5			8.4			2.6			(1.1		)	119.4
Other income	(0.2		)	(0.1		)	(3.5		)	1.1			(2.7		)
Equity in net income of nonconsolidated affiliates	(3.1		)	(8.9		)	—			—			(12.0		)
Equity in net income of consolidated affiliates	(234.2		)	(13.2		)	—			247.4			—
Management fees	(94.5		)	73.6			20.9			—			—
Income from continuing operations before income tax (benefit) expense	28.6			325.0			136.7			(247.4		)	242.9
Provision for income tax (benefit) expense	(161.1		)	157.6			40.6			—			37.1
Income from continuing operations	189.7			167.4			96.1			(247.4		)	205.8
Income (loss) from discontinued operations, net of tax	19.0			34.3			(4.5		)	—			48.8
Net Income	208.7			201.7			91.6			(247.4		)	254.6
Less: Net income attributable to noncontrolling interests	—			—			(45.9		)	—			(45.9		)
Net income attributable to HealthSouth	$	208.7		$	201.7		$	45.7		$	(247.4	)	$	208.7
Comprehensive income	$	208.0		$	201.7		$	91.6		$	(247.4	)	$	253.9
Comprehensive income attributable to HealthSouth	$	208.0		$	201.7		$	45.7		$	(247.4	)	$	208.0

Condensed Consolidating Balance Sheet

	As of December 31, 2013
	HealthSouth Corporation		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Assets
Current assets:
Cash and cash equivalents	$	60.5	$	2.3	$	1.7	$	—		$	64.5
Restricted cash	1.0		—		51.4		—			52.4
Accounts receivable, net	—		184.7		77.1		—			261.8
Deferred income tax assets	85.5		34.5		19.0		—			139.0
Prepaid expenses and other current assets	36.0		15.8		29.4		(18.5		)	62.7
Total current assets	183.0		237.3		178.6		(18.5		)	580.4
Property and equipment, net	16.3		698.5		195.7		—			910.5
Goodwill	—		279.6		177.3		—			456.9
Intangible assets, net	18.1		49.6		20.5		—			88.2
Deferred income tax assets	288.8		24.5		41.0		—			354.3
Other long-term assets	64.6		27.1		52.4		—			144.1
Intercompany receivable	1,438.8		—		—		(1,438.8		)	—
Total assets	$	2,009.6	$	1,316.6	$	665.5	$	(1,457.3	)	$	2,534.4
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	19.4	$	3.8	$	6.6	$	(17.5	)	$	12.3
Accounts payable	15.1		32.6		14.2		—			61.9
Accrued payroll	23.1		47.8		19.9		—			90.8
Accrued interest payable	22.9		0.8		0.1		—			23.8
Other current liabilities	65.1		18.6		40.1		(1.0		)	122.8
Total current liabilities	145.6		103.6		80.9		(18.5		)	311.6
Long-term debt, net of current portion	1,381.7		88.1		35.4		—			1,505.2
Self-insured risks	23.2		—		75.0		—			98.2
Other long-term liabilities	21.3		17.4		5.3		—			44.0
Intercompany payable	—		299.2		228.9		(528.1		)	—
	1,571.8		508.3		425.5		(546.6		)	1,959.0
Commitments and contingencies
Convertible perpetual preferred stock	93.2		—		—		—			93.2
Redeemable noncontrolling interests	—		—		13.5		—			13.5
Shareholders’ equity:
HealthSouth shareholders’ equity	344.6		808.3		102.4		(910.7		)	344.6
Noncontrolling interests	—		—		124.1		—			124.1
Total shareholders’ equity	344.6		808.3		226.5		(910.7		)	468.7
Total liabilities and shareholders’ equity	$	2,009.6	$	1,316.6	$	665.5	$	(1,457.3	)	$	2,534.4

	As of December 31, 2012
	HealthSouth Corporation		Guarantor Subsidiaries		Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Assets
Current assets:
Cash and cash equivalents	$	131.3	$	0.3	$	1.2		$	—		$	132.8
Restricted cash	0.8		—		48.5			—			49.3
Accounts receivable, net	0.2		178.8		70.3			—			249.3
Deferred income tax assets	106.5		19.7		11.3			—			137.5
Prepaid expenses and other current assets	29.7		15.2		40.5			(17.5		)	67.9
Total current assets	268.5		214.0		171.8			(17.5		)	636.8
Property and equipment, net	12.7		550.3		185.0			—			748.0
Goodwill	—		266.1		171.2			—			437.3
Intangible assets, net	18.1		41.5		13.6			—			73.2
Deferred income tax assets	340.7		0.9		51.9			—			393.5
Other long-term assets	69.9		21.3		44.2			—			135.4
Intercompany receivable	1,244.4		—		—			(1,244.4		)	—
Total assets	$	1,954.3	$	1,094.1	$	637.7		$	(1,261.9	)	$	2,424.2
Liabilities and Shareholders’ Equity (Deficit)
Current liabilities:
Current portion of long-term debt	$	19.2	$	8.4	$	3.5		$	(17.5	)	$	13.6
Accounts payable	7.4		28.3		9.6			—			45.3
Accrued payroll	20.6		46.8		18.3			—			85.7
Accrued interest payable	25.6		0.1		0.2			—			25.9
Other current liabilities	63.2		18.5		48.7			—			130.4
Total current liabilities	136.0		102.1		80.3			(17.5		)	300.9
Long-term debt, net of current portion	1,147.3		64.2		28.4			—			1,239.9
Self-insured risks	28.1		—		78.4			—			106.5
Other long-term liabilities	9.7		11.2		3.1			—			24.0
Intercompany payable	—		515.6		1,021.4			(1,537.0		)	—
	1,321.1		693.1		1,211.6			(1,554.5		)	1,671.3
Commitments and contingencies
Convertible perpetual preferred stock	342.2		—		—			—			342.2
Redeemable noncontrolling interests	—		—		7.2			—			7.2
Shareholders’ equity (deficit):
HealthSouth shareholders’ equity (deficit)	291.0		401.0		(693.6		)	292.6			291.0
Noncontrolling interests	—		—		112.5			—			112.5
Total shareholders’ equity (deficit)	291.0		401.0		(581.1		)	292.6			403.5
Total liabilities and shareholders’ equity (deficit)	$	1,954.3	$	1,094.1	$	637.7		$	(1,261.9	)	$	2,424.2

Condensed Consolidating Statement of Cash Flows

	For the Year Ended December 31, 2013
	HealthSouth Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminating Entries		HealthSouth Consolidated
	(In Millions)
Net cash provided by operating activities	$	113.2		$	235.7		$	121.4		$	—	$	470.3
Cash flows from investing activities:
Purchases of property and equipment	(2.8		)	(167.9		)	(24.5		)	—		(195.2		)
Capitalized software costs	(6.0		)	(11.1		)	(4.2		)	—		(21.3		)
Acquisition of business, net of cash acquired	—			(28.9		)	—			—		(28.9		)
Proceeds from sale of restricted investments	—			—			16.9			—		16.9
Proceeds from sale of Digital Hospital	10.8			—			—			—		10.8
Purchases of restricted investments	—			—			(9.2		)	—		(9.2		)
Net change in restricted cash	(0.2		)	—			(2.9		)	—		(3.1		)
Other	—			0.9			(0.4		)	—		0.5
Net cash provided by investing activities of discontinued operations	—			3.1			0.2			—		3.3
Net cash provided by (used in) investing activities	1.8			(203.9		)	(24.1		)	—		(226.2		)
Cash flows from financing activities:
Principal payments on debt, including pre-payments	(59.5		)	(1.3		)	(1.7		)	—		(62.5		)
Principal borrowings on notes	—			—			15.2			—		15.2
Borrowings on revolving credit facility	197.0			—			—			—		197.0
Payments on revolving credit facility	(152.0		)	—			—			—		(152.0		)
Principal payments under capital lease obligations	(0.3		)	(6.3		)	(3.5		)	—		(10.1		)
Repurchase of common stock, including fees and expenses	(234.1		)	—			—			—		(234.1		)
Repurchases of convertible perpetual preferred stock, including fees	(2.8		)	—			—			—		(2.8		)
Dividends paid on common stock	(15.7		)	—			—			—		(15.7		)
Dividends paid on convertible perpetual preferred stock	(23.0		)	—			—			—		(23.0		)
Distributions paid to noncontrolling interests of consolidated affiliates	—			—			(46.3		)	—		(46.3		)
Contributions from consolidated affiliates	—			—			1.6			—		1.6
Proceeds from exercising stock warrants	15.3			—			—			—		15.3
Other	5.0			—			—			—		5.0
Change in intercompany advances	84.3			(22.2		)	(62.1		)	—		—
Net cash used in financing activities	(185.8		)	(29.8		)	(96.8		)	—		(312.4		)
(Decrease) increase in cash and cash equivalents	(70.8		)	2.0			0.5			—		(68.3		)
Cash and cash equivalents at beginning of year	131.3			0.3			1.2			—		132.8
Cash and cash equivalents at end of year	$	60.5		$	2.3		$	1.7		$	—	$	64.5

	For the Year Ended December 31, 2012
	HealthSouth Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminating Entries		HealthSouth Consolidated
	(In Millions)
Net cash provided by operating activities	$	31.3		$	252.4		$	127.8		$	—	$	411.5
Cash flows from investing activities:
Purchases of property and equipment	(4.8		)	(98.4		)	(37.6		)	—		(140.8		)
Capitalized software costs	(8.5		)	(7.2		)	(3.2		)	—		(18.9		)
Acquisition of businesses, net of cash acquired	—			(3.1		)	—			—		(3.1		)
Proceeds from sale of restricted investments	—			—			0.3			—		0.3
Purchases of restricted investments	—			—			(9.1		)	—		(9.1		)
Net change in restricted cash	(0.1		)	—			(13.9		)	—		(14.0		)
Other	(0.3		)	(0.8		)	0.2			—		(0.9		)
Net cash provided by investing activities of discontinued operations	4.4			3.3			—			—		7.7
Net cash used in investing activities	(9.3		)	(106.2		)	(63.3		)	—		(178.8		)
Cash flows from financing activities:
Proceeds from bond issuance	275.0			—			—			—		275.0
Principal payments on debt, including pre-payments	(164.9		)	(1.3		)	—			—		(166.2		)
Borrowings on revolving credit facility	135.0			—			—			—		135.0
Payments on revolving credit facility	(245.0		)	—			—			—		(245.0		)
Principal payments under capital lease obligations	(0.3		)	(8.9		)	(2.9		)	—		(12.1		)
Repurchases of convertible perpetual preferred stock, including fees	(46.0		)	—			—			—		(46.0		)
Dividends paid on convertible perpetual preferred stock	(24.6		)	—			—			—		(24.6		)
Distributions paid to noncontrolling interests of consolidated affiliates	—			—			(49.3		)	—		(49.3		)
Contributions from consolidated affiliates	—			—			10.5			—		10.5
Other	0.2			—			(7.5		)	—		(7.3		)
Change in intercompany advances	153.9			(137.0		)	(16.9		)	—		—
Net cash provided by (used in) financing activities	83.3			(147.2		)	(66.1		)	—		(130.0		)
Increase (decrease) in cash and cash equivalents	105.3			(1.0		)	(1.6		)	—		102.7
Cash and cash equivalents at beginning of year	26.0			1.3			2.8			—		30.1
Cash and cash equivalents at end of year	$	131.3		$	0.3		$	1.2		$	—	$	132.8

	For the Year Ended December 31, 2011
	HealthSouth Corporation			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminating Entries		HealthSouth Consolidated
	(In Millions)
Net cash (used in) provided by operating activities	$	(58.3	)	$	273.7		$	127.3		$	—	$	342.7
Cash flows from investing activities:
Purchases of property and equipment	(4.8		)	(83.3		)	(12.2		)	—		(100.3		)
Capitalized software costs	(6.6		)	(2.0		)	(0.2		)	—		(8.8		)
Acquisition of businesses, net of cash acquired	—			(4.9		)	—			—		(4.9		)
Proceeds from sale of restricted investments	—			—			1.2			—		1.2
Purchases of restricted investments	—			—			(8.4		)	—		(8.4		)
Net change in restricted cash	(0.2		)	—			1.4			—		1.2
Net settlements on interest rate swaps not designated as hedges	(10.9		)	—			—			—		(10.9		)
Other	—			(0.9		)	—			—		(0.9		)
Net cash provided by (used in) investing activities of discontinued operations—
Proceeds from sale of LTCHs	107.9			—			—			—		107.9
Other investing activities of discontinued operations	—			(0.3		)	(0.4		)	—		(0.7		)
Net cash provided by (used in) investing activities	85.4			(91.4		)	(18.6		)	—		(24.6		)
Cash flows from financing activities:
Principal borrowings on term loan	100.0			—			—			—		100.0
Proceeds from bond issuance	120.0			—			—			—		120.0
Principal payments on debt, including pre-payments	(507.4		)	(1.5		)	4.0			—		(504.9		)
Borrowings on revolving credit facility	338.0			—			—			—		338.0
Payments on revolving credit facility	(306.0		)	—			—			—		(306.0		)
Principal payments under capital lease obligations	(0.8		)	(10.2		)	(2.2		)	—		(13.2		)
Dividends paid on convertible perpetual preferred stock	(26.0		)	—			—			—		(26.0		)
Distributions paid to noncontrolling interests of consolidated affiliates	—			—			(44.2		)	—		(44.2		)
Change in intercompany advances	235.3			(169.4		)	(65.9		)	—		—
Net cash used in financing activities	(46.9		)	(181.1		)	(108.3		)	—		(336.3		)
(Decrease) increase in cash and cash equivalents	(19.8		)	1.2			0.4			—		(18.2		)
Cash and cash equivalents at beginning of year	45.8			0.1			2.4			—		48.3
Cash and cash equivalents at end of year	$	26.0		$	1.3		$	2.8		$	—	$	30.1