Investments in and Advances to Nonconsolidated Affiliates

9 Months Ended

Sep. 30, 2014

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]

Investments in and Advances to Nonconsolidated Affiliates

Investments in and Advances to Nonconsolidated Affiliates

As of September 30, 2014 and December 31, 2013, we had $10.8 million and $20.3 million, respectively, of investments in and advances to nonconsolidated affiliates included in Other long-term assets in our condensed consolidated balance sheets. Investments in and advances to nonconsolidated affiliates represent our investments in nine partially owned subsidiaries, of which eight are general or limited partnerships, limited liability companies, or joint ventures in which HealthSouth or one of its subsidiaries is a general or limited partner, managing member, member, or venturer, as applicable. We do not control these affiliates but have the ability to exercise significant influence over the operating and financial policies of certain of these affiliates. Our ownership percentages in these affiliates range from approximately 1% to 51%. We account for these investments using the cost and equity methods of accounting.

The following summarizes the combined results of operations of our equity method affiliates (on a 100% basis, in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Net operating revenues	$	7.8		$	16.2		$	44.1		$	55.4
Operating expenses	(3.3		)	(10.3		)	(22.7		)	(32.5		)
Income from continuing operations, net of tax	4.2			4.4			28.2			18.4
Net income	4.2			4.4			28.2			18.4

See also Note 2, Business Combinations.