Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statement of Operations

	Three Months Ended March 31, 2015
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net operating revenues	$	5.3		$	456.8		$	303.2		$	(24.7	)	$	740.6
Less: Provision for doubtful accounts	—			(9.0		)	(2.6		)	—			(11.6		)
Net operating revenues less provision for doubtful accounts	5.3			447.8			300.6			(24.7		)	729.0
Operating expenses:
Salaries and benefits	8.1			211.1			170.0			(4.1		)	385.1
Other operating expenses	9.5			63.1			41.0			(10.4		)	103.2
Occupancy costs	1.1			15.3			5.9			(10.2		)	12.1
Supplies	—			20.8			10.6			—			31.4
General and administrative expenses	34.3			—			0.3			—			34.6
Depreciation and amortization	2.3			19.1			10.5			—			31.9
Government, class action, and related settlements	8.0			—			—			—			8.0
Professional fees—accounting, tax, and legal	2.2			—			—			—			2.2
Total operating expenses	65.5			329.4			238.3			(24.7		)	608.5
Loss on early extinguishment of debt	1.2			—			—			—			1.2
Interest expense and amortization of debt discounts and fees	29.2			2.3			2.7			(2.4		)	31.8
Other income	(2.3		)	—			(0.6		)	2.4			(0.5		)
Equity in net income of nonconsolidated affiliates	—			(1.6		)	—			—			(1.6		)
Equity in net income of consolidated affiliates	(78.6		)	(8.1		)	—			86.7			—
Management fees	(28.5		)	21.7			6.8			—			—
Income from continuing operations before income tax (benefit) expense	18.8			104.1			53.4			(86.7		)	89.6
Provision for income tax (benefit) expense	(24.0		)	39.6			14.7			—			30.3
Income from continuing operations	42.8			64.5			38.7			(86.7		)	59.3
Loss from discontinued operations, net of tax	(0.3		)	—			—			—			(0.3		)
Net Income	42.5			64.5			38.7			(86.7		)	59.0
Less: Net income attributable to noncontrolling interests	—			—			(16.5		)	—			(16.5		)
Net income attributable to HealthSouth	$	42.5		$	64.5		$	22.2		$	(86.7	)	$	42.5
Comprehensive income	$	42.6		$	64.5		$	38.7		$	(86.7	)	$	59.1
Comprehensive income attributable to HealthSouth	$	42.6		$	64.5		$	22.2		$	(86.7	)	$	42.6

	Three Months Ended March 31, 2014
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net operating revenues	$	3.8		$	427.0		$	182.2		$	(21.8	)	$	591.2
Less: Provision for doubtful accounts	—			(5.5		)	(2.0		)	—			(7.5		)
Net operating revenues less provision for doubtful accounts	3.8			421.5			180.2			(21.8		)	583.7
Operating expenses:
Salaries and benefits	5.6			196.9			87.3			(3.7		)	286.1
Other operating expenses	4.9			59.8			28.5			(8.7		)	84.5
Occupancy costs	1.0			14.3			4.5			(9.3		)	10.5
Supplies	—			19.6			8.0			—			27.6
General and administrative expenses	30.7			—			—			—			30.7
Depreciation and amortization	2.9			17.9			5.6			—			26.4
Professional fees—accounting, tax, and legal	1.6			—			—			—			1.6
Total operating expenses	46.7			308.5			133.9			(21.7		)	467.4
Interest expense and amortization of debt discounts and fees	25.3			2.2			0.7			(0.3		)	27.9
Other income	(0.2		)	(1.2		)	(0.6		)	0.3			(1.7		)
Equity in net income of nonconsolidated affiliates	—			(4.3		)	—			—			(4.3		)
Equity in net income of consolidated affiliates	(67.9		)	(6.8		)	—			74.7			—
Management fees	(26.6		)	20.4			6.2			—			—
Income from continuing operations before income tax (benefit) expense	26.5			102.7			40.0			(74.8		)	94.4
Provision for income tax (benefit) expense	(20.3		)	42.5			10.6			—			32.8
Income from continuing operations	46.8			60.2			29.4			(74.8		)	61.6
Loss from discontinued operations, net of tax	(0.1		)	—			—			—			(0.1		)
Net Income	46.7			60.2			29.4			(74.8		)	61.5
Less: Net income attributable to noncontrolling interests	—			—			(14.8		)	—			(14.8		)
Net income attributable to HealthSouth	$	46.7		$	60.2		$	14.6		$	(74.8	)	$	46.7
Comprehensive income	$	46.8		$	60.2		$	29.4		$	(74.8	)	$	61.6
Comprehensive income attributable to HealthSouth	$	46.8		$	60.2		$	14.6		$	(74.8	)	$	46.8

Condensed Consolidating Balance Sheet

	As of March 31, 2015
	HealthSouth Corporation		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Assets
Current assets:
Cash and cash equivalents	$	189.6	$	1.0	17.7		$	—		$	208.3
Accounts receivable, net	—		214.1		123.8		—			337.9
Deferred income tax assets	125.3		39.8		23.3		—			188.4
Other current assets	67.6		16.7		119.1		(72.0		)	131.4
Total current assets	382.5		271.6		283.9		(72.0		)	866.0
Property and equipment, net	13.7		744.6		254.0		—			1,012.3
Goodwill	—		279.6		810.4		—			1,090.0
Intangible assets, net	11.4		53.0		243.2		—			307.6
Deferred income tax assets	136.2		17.5		—		(51.4		)	102.3
Other long-term assets	463.0		48.1		73.8		(385.2		)	199.7
Intercompany receivable and investments in consolidated affiliates	1,937.1		—		—		(1,937.1		)	—
Total assets	$	2,943.9	$	1,414.4	$	1,665.3	$	(2,445.7	)	$	3,577.9
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	156.6	$	4.2	$	6.5	$	(17.5	)	149.8
Accounts payable	8.9		30.3		15.9		—			55.1
Accrued expenses and other current liabilities	141.4		68.6		137.2		(54.5		)	292.7
Total current liabilities	306.9		103.1		159.6		(72.0		)	497.6
Long-term debt, net of current portion	2,007.5		82.7		417.5		(385.2		)	2,122.5
Other long-term liabilities	44.0		12.5		134.4		(51.4		)	139.5
Intercompany payable	—		322.3		210.6		(532.9		)	—
	2,358.4		520.6		922.1		(1,041.5		)	2,759.6
Commitments and contingencies
Convertible perpetual preferred stock	93.2		—		—		—			93.2
Redeemable noncontrolling interests	—		—		84.7		—			84.7
Shareholders’ equity:
HealthSouth shareholders’ equity	492.3		893.8		510.4		(1,404.2		)	492.3
Noncontrolling interests	—		—		148.1		—			148.1
Total shareholders’ equity	492.3		893.8		658.5		(1,404.2		)	640.4
Total liabilities and shareholders’ equity	$	2,943.9	$	1,414.4	$	1,665.3	$	(2,445.7	)	$	3,577.9

	As of December 31, 2014
	HealthSouth Corporation		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Assets
Current assets:
Cash and cash equivalents	$	41.9	$	1.5	$	23.3	$	—		$	66.7
Accounts receivable, net	—		202.6		120.6		—			323.2
Deferred income tax assets	125.0		39.8		23.6		—			188.4
Other current assets	30.9		15.1		81.1		(18.8		)	108.3
Total current assets	197.8		259.0		248.6		(18.8		)	686.6
Property and equipment, net	16.1		752.0		251.6		—			1,019.7
Goodwill	—		279.6		804.4		—			1,084.0
Intangible assets, net	11.3		50.6		244.2		—			306.1
Deferred income tax assets	163.3		17.5		—		(51.4		)	129.4
Other long-term assets	461.3		42.5		64.3		(385.1		)	183.0
Intercompany receivable and investments in consolidated affiliates	1,898.7		—		—		(1,898.7		)	—
Total assets	$	2,748.5	$	1,401.2	$	1,613.1	$	(2,354.0	)	$	3,408.8
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	27.9	$	4.2	$	6.2	$	(17.5	)	$	20.8
Accounts payable	9.3		29.5		14.6		—			53.4
Accrued expenses and other current liabilities	107.1		72.6		111.7		(1.3		)	290.1
Total current liabilities	144.3		106.3		132.5		(18.8		)	364.3
Long-term debt, net of current portion	1,993.7		83.9		418.3		(385.1		)	2,110.8
Other long-term liabilities	44.1		12.7		130.9		(51.4		)	136.3
Intercompany payable	—		368.7		195.5		(564.2		)	—
	2,182.1		571.6		877.2		(1,019.5		)	2,611.4
Commitments and contingencies
Convertible perpetual preferred stock	93.2		—		—		—			93.2
Redeemable noncontrolling interests	—		—		84.7		—			84.7
Shareholders’ equity:
HealthSouth shareholders’ equity	473.2		829.6		504.9		(1,334.5		)	473.2
Noncontrolling interests	—		—		146.3		—			146.3
Total shareholders’ equity	473.2		829.6		651.2		(1,334.5		)	619.5
Total liabilities and shareholders’ equity	$	2,748.5	$	1,401.2	$	1,613.1	$	(2,354.0	)	$	3,408.8

Condensed Consolidating Statement of Cash Flows

	Three Months Ended March 31, 2015
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net cash provided by operating activities	$	6.5		$	53.0		$	42.4		$	0.1		$	102.0
Cash flows from investing activities:
Purchases of property and equipment	(2.4		)	(8.2		)	(7.1		)	—			(17.7		)
Capitalized software costs	(8.8		)	—			(0.1		)	—			(8.9		)
Acquisition of business, net of cash acquired	—			—			(7.3		)	—			(7.3		)
Net change in restricted cash	—			—			(15.0		)	—			(15.0		)
Other	—			3.5			(0.3		)	—			3.2
Net cash used in investing activities	(11.2		)	(4.7		)	(29.8		)	—			(45.7		)
Cash flows from financing activities:
Proceeds from bond issuance	700.0			—			—			—			700.0
Principal payments on debt, including pre-payments	(252.5		)	(0.4		)	—			—			(252.9		)
Borrowings on revolving credit facility	35.0			—			—			—			35.0
Payments on revolving credit facility	(350.0		)	—			—			—			(350.0		)
Debt amendment and issue costs	(13.7		)	—			—			—			(13.7		)
Dividends paid on common stock	(18.6		)	—			—			—			(18.6		)
Dividends paid on convertible perpetual preferred stock	(1.6		)	—			—			—			(1.6		)
Distributions paid to noncontrolling interests of consolidated affiliates	—			—			(13.2		)	—			(13.2		)
Other	1.7			(0.6		)	(0.7		)	(0.1		)	0.3
Change in intercompany advances	52.1			(47.8		)	(4.3		)	—			—
Net cash provided by (used in) financing activities	152.4			(48.8		)	(18.2		)	(0.1		)	85.3
Increase (decrease) in cash and cash equivalents	147.7			(0.5		)	(5.6		)	—			141.6
Cash and cash equivalents at beginning of period	41.9			1.5			23.3			—			66.7
Cash and cash equivalents at end of period	$	189.6		$	1.0		$	17.7		$	—		$	208.3

	Three Months Ended March 31, 2014
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries		HealthSouth Consolidated
	(In Millions)
Net cash provided by operating activities	$	18.4		$	59.2		$	29.5		$	—	$	107.1
Cash flows from investing activities:
Purchases of property and equipment	(7.6		)	(38.9		)	(10.1		)	—		(56.6		)
Capitalized software costs	(2.1		)	(1.5		)	(3.4		)	—		(7.0		)
Net change in restricted cash	—			—			(5.5		)	—		(5.5		)
Other	0.9			2.2			(1.8		)	—		1.3
Net cash used in investing activities	(8.8		)	(38.2		)	(20.8		)	—		(67.8		)
Cash flows from financing activities:
Principal payments on debt, including pre-payments	—			(0.4		)	(0.9		)	—		(1.3		)
Borrowings on revolving credit facility	40.0			—			—			—		40.0
Payments on revolving credit facility	(42.0		)	—			—			—		(42.0		)
Repurchases of common stock, including fees and expenses	(26.3		)	—			—			—		(26.3		)
Dividends paid on common stock	(15.8		)	—			—			—		(15.8		)
Dividends paid on convertible perpetual preferred stock	(1.6		)	—			—			—		(1.6		)
Distributions paid to noncontrolling interests of consolidated affiliates	—			—			(12.0		)	—		(12.0		)
Proceeds from exercising stock warrants	6.3			—			—			—		6.3
Other	3.5			(0.6		)	(0.9		)	—		2.0
Change in intercompany advances	17.2			(22.0		)	4.8			—		—
Net cash used in financing activities	(18.7		)	(23.0		)	(9.0		)	—		(50.7		)
Decrease in cash and cash equivalents	(9.1		)	(2.0		)	(0.3		)	—		(11.4		)
Cash and cash equivalents at beginning of period	60.5			2.3			1.7			—		64.5
Cash and cash equivalents at end of period	$	51.4		$	0.3		$	1.4		$	—	$	53.1