Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statement of Operations

	For the Year Ended December 31, 2015
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net operating revenues	$	19.4		$	1,927.0		$	1,320.0		$	(103.5	)	$	3,162.9
Less: Provision for doubtful accounts	—			(34.6		)	(12.6		)	—			(47.2		)
Net operating revenues less provision for doubtful accounts	19.4			1,892.4			1,307.4			(103.5		)	3,115.7
Operating expenses:
Salaries and benefits	49.4			893.2			745.3			(17.1		)	1,670.8
Other operating expenses	31.3			274.7			167.4			(41.3		)	432.1
Occupancy costs	4.0			69.4			25.6			(45.1		)	53.9
Supplies	—			85.2			43.5			—			128.7
General and administrative expenses	128.3			—			5.0			—			133.3
Depreciation and amortization	9.9			84.3			45.5			—			139.7
Government, class action, and related settlements	7.5			—			—			—			7.5
Professional fees—accounting, tax, and legal	3.0			—			—			—			3.0
Total operating expenses	233.4			1,406.8			1,032.3			(103.5		)	2,569.0
Loss on early extinguishment of debt	22.4			—			—			—			22.4
Interest expense and amortization of debt discounts and fees	130.0			11.9			12.4			(11.4		)	142.9
Other income	(13.6		)	(0.2		)	(3.1		)	11.4			(5.5		)
Equity in net income of nonconsolidated affiliates	—			(8.5		)	(0.2		)	—			(8.7		)
Equity in net income of consolidated affiliates	(322.7		)	(34.5		)	—			357.2			—
Management fees	(119.7		)	91.6			28.1			—			—
Income from continuing operations before income tax (benefit) expense	89.6			425.3			237.9			(357.2		)	395.6
Provision for income tax (benefit) expense	(94.6		)	169.7			66.8			—			141.9
Income from continuing operations	184.2			255.6			171.1			(357.2		)	253.7
(Loss) income from discontinued operations, net of tax	(1.1		)	—			0.2			—			(0.9		)
Net income	183.1			255.6			171.3			(357.2		)	252.8
Less: Net income attributable to noncontrolling interests	—			—			(69.7		)	—			(69.7		)
Net income attributable to HealthSouth	$	183.1		$	255.6		$	101.6		$	(357.2	)	$	183.1
Comprehensive income	$	182.4		$	255.6		$	171.3		$	(357.2	)	$	252.1
Comprehensive income attributable to HealthSouth	$	182.4		$	255.6		$	101.6		$	(357.2	)	$	182.4

	For the Year Ended December 31, 2014
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net operating revenues	$	16.1		$	1,719.1		$	761.1		$	(90.4	)	$	2,405.9
Less: Provision for doubtful accounts	—			(22.3		)	(9.3		)	—			(31.6		)
Net operating revenues less provision for doubtful accounts	16.1			1,696.8			751.8			(90.4		)	2,374.3
Operating expenses:
Salaries and benefits	22.3			795.7			358.8			(15.1		)	1,161.7
Other operating expenses	21.6			246.7			120.1			(36.8		)	351.6
Occupancy costs	4.2			58.2			17.7			(38.5		)	41.6
Supplies	—			78.6			33.3			—			111.9
General and administrative expenses	124.8			—			—			—			124.8
Depreciation and amortization	9.7			71.9			26.1			—			107.7
Government, class action, and related settlements	(1.7		)	—			—			—			(1.7		)
Professional fees—accounting, tax, and legal	9.3			—			—			—			9.3
Total operating expenses	190.2			1,251.1			556.0			(90.4		)	1,906.9
Loss on early extinguishment of debt	13.2			—			—			—			13.2
Interest expense and amortization of debt discounts and fees	99.8			7.8			2.8			(1.2		)	109.2
Other income	(0.7		)	(28.5		)	(3.2		)	1.2			(31.2		)
Equity in net income of nonconsolidated affiliates	—			(10.7		)	—			—			(10.7		)
Equity in net income of consolidated affiliates	(314.0		)	(30.6		)	—			344.6			—
Management fees	(107.9		)	82.2			25.7			—			—
Income from continuing operations before income tax (benefit) expense	135.5			425.5			170.5			(344.6		)	386.9
Provision for income tax (benefit) expense	(80.8		)	148.0			43.5			—			110.7
Income from continuing operations	216.3			277.5			127.0			(344.6		)	276.2
Income (loss) from discontinued operations, net of tax	5.7			—			(0.2		)	—			5.5
Net income	222.0			277.5			126.8			(344.6		)	281.7
Less: Net income attributable to noncontrolling interests	—			—			(59.7		)	—			(59.7		)
Net income attributable to HealthSouth	$	222.0		$	277.5		$	67.1		$	(344.6	)	$	222.0
Comprehensive income	$	221.6		$	277.5		$	126.8		$	(344.6	)	$	281.3
Comprehensive income attributable to HealthSouth	$	221.6		$	277.5		$	67.1		$	(344.6	)	$	221.6

	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			107.5			(33.8		)	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			511.8			(71.2		)	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			167.1			(288.6		)	395.2
Provision for income tax (benefit) expense	(169.0		)	134.4			47.3			—			12.7
Income from continuing operations	322.4			228.9			119.8			(288.6		)	382.5
Income (loss) from discontinued operations, net of tax	1.2			(0.8		)	(1.5		)	—			(1.1		)
Net income	323.6			228.1			118.3			(288.6		)	381.4
Less: Net income attributable to noncontrolling interests	—			—			(57.8		)	—			(57.8		)
Net income attributable to HealthSouth	$	323.6		$	228.1		$	60.5		$	(288.6	)	$	323.6
Comprehensive income	$	322.1		$	228.1		$	118.3		$	(288.6	)	$	379.9
Comprehensive income attributable to HealthSouth	$	322.1		$	228.1		$	60.5		$	(288.6	)	$	322.1

Condensed Consolidating Balance Sheet

	As of December 31, 2015
	HealthSouth Corporation		Guarantor Subsidiaries		Nonguarantor Subsidiaries		Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Assets
Current assets:
Cash and cash equivalents	$	41.2	$	1.3	$	19.1	$	—		$	61.6
Restricted cash	—		—		45.9		—			45.9
Accounts receivable, net	—		267.2		143.3		—			410.5
Prepaid expenses and other current assets	29.3		22.7		47.5		(18.8		)	80.7
Total current assets	70.5		291.2		255.8		(18.8		)	598.7
Property and equipment, net	14.5		965.7		329.9		—			1,310.1
Goodwill	—		863.2		1,026.9		—			1,890.1
Intangible assets, net	8.8		123.2		287.4		—			419.4
Deferred income tax assets	176.2		64.1		—		(49.5		)	190.8
Other long-term assets	48.6		75.3		73.1		—			197.0
Intercompany notes receivable	546.6		—		—		(546.6		)	—
Intercompany receivable and investments in consolidated affiliates	2,779.7		—		—		(2,779.7		)	—
Total assets	$	3,644.9	$	2,382.7	$	1,973.1	$	(3,394.6	)	$	4,606.1
Liabilities and Shareholders’ Equity
Current liabilities:
Current portion of long-term debt	$	40.0	$	6.8	$	7.5	$	(17.5	)	$	36.8
Accounts payable	5.8		35.2		20.6		—			61.6
Accrued payroll	27.7		50.7		47.8		—			126.2
Accrued interest payable	26.5		2.9		0.3		—			29.7
Other current liabilities	68.0		19.0		86.4		(1.3		)	172.1
Total current liabilities	168.0		114.6		162.6		(18.8		)	426.4
Long-term debt, net of current portion	2,821.9		255.6		57.2		—			3,134.7
Intercompany notes payable	—		—		546.6		(546.6		)	—
Self-insured risks	19.8		—		81.8		—			101.6
Other long-term liabilities	23.8		12.4		55.9		(49.1		)	43.0
Intercompany payable	—		141.7		179.1		(320.8		)	—
	3,033.5		524.3		1,083.2		(935.3		)	3,705.7
Commitments and contingencies
Redeemable noncontrolling interests	—		—		121.1		—			121.1
Shareholders’ equity:
HealthSouth shareholders’ equity	611.4		1,858.4		600.9		(2,459.3		)	611.4
Noncontrolling interests	—		—		167.9		—			167.9
Total shareholders’ equity	611.4		1,858.4		768.8		(2,459.3		)	779.3
Total liabilities and shareholders’ equity	$	3,644.9	$	2,382.7	$	1,973.1	$	(3,394.6	)	$	4,606.1

	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
Restricted cash	—		—		45.6		—			45.6
Accounts receivable, net	—		202.6		120.6		—			323.2
Deferred income tax assets	125.0		39.8		23.6		—			188.4
Prepaid expenses and other current assets	30.9		15.4		35.2		(18.8		)	62.7
Total current assets	197.8		259.3		248.3		(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	55.8		42.5		64.2		—			162.5
Intercompany notes receivable	385.2		—		—		(385.2		)	—
Intercompany receivable and investments in consolidated affiliates	1,898.7		—		—		(1,898.7		)	—
Total assets	$	2,728.2	$	1,401.5	$	1,612.7	$	(2,354.1	)	$	3,388.3
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 payroll	17.5		55.6		50.2		—			123.3
Accrued interest payable	19.2		1.8		0.2		—			21.2
Other current liabilities	70.4		15.2		61.3		(1.3		)	145.6
Total current liabilities	144.3		106.3		132.5		(18.8		)	364.3
Long-term debt, net of current portion	1,973.4		83.9		33.1		—			2,090.4
Intercompany notes payable	—		—		385.2		(385.2		)	—
Self-insured risks	22.9		—		75.8		—			98.7
Other long-term liabilities	21.2		12.7		55.0		(51.4		)	37.5
Intercompany payable	—		381.0		173.2		(554.2		)	—
	2,161.8		583.9		854.8		(1,009.6		)	2,590.9
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		817.6		526.9		(1,344.5		)	473.2
Noncontrolling interests	—		—		146.3		—			146.3
Total shareholders’ equity	473.2		817.6		673.2		(1,344.5		)	619.5
Total liabilities and shareholders’ equity	$	2,728.2	$	1,401.5	$	1,612.7	$	(2,354.1	)	$	3,388.3

Condensed Consolidating Statement of Cash Flows

	For the Year Ended December 31, 2015
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries			HealthSouth Consolidated
	(In Millions)
Net cash provided by operating activities	$	29.6		$	222.6		$	232.2		$	0.4		$	484.8
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(954.6		)	—			(30.5		)	—			(985.1		)
Purchases of property and equipment	(15.9		)	(46.1		)	(66.4		)	—			(128.4		)
Capitalized software costs	(24.5		)	(0.4		)	(3.2		)	—			(28.1		)
Proceeds from sale of restricted investments	—			—			0.2			—			0.2
Proceeds from sale of marketable securities	12.8			—			—			—			12.8
Purchases of restricted investments	—			—			(7.1		)	—			(7.1		)
Net change in restricted cash	—			—			2.7			—			2.7
Funding of intercompany note receivable	(2.0		)	—			—			2.0			—
Proceeds from repayment of intercompany note receivable	24.0			—			—			(24.0		)	—
Other	(0.5		)	2.3			0.9			—			2.7
Net cash provided by investing activities of discontinued operations	0.5			—			—			—			0.5
Net cash used in investing activities	(960.2		)	(44.2		)	(103.4		)	(22.0		)	(1,129.8		)
Cash flows from financing activities:
Principal borrowings on term loan facilities	250.0			—			2.0			(2.0		)	250.0
Proceeds from bond issuance	1,400.0			—			—			—			1,400.0
Principal payments on debt, including pre-payments	(595.0		)	(1.6		)	(0.8		)	—			(597.4		)
Principal payments on intercompany note payable	—			—			(24.0		)	24.0			—
Borrowings on revolving credit facility	540.0			—			—			—			540.0
Payments on revolving credit facility	(735.0		)	—			—			—			(735.0		)
Debt amendment and issuance costs	(31.9		)	—			—			—			(31.9		)
Principal payments under capital lease obligations	(0.3		)	(4.5		)	(6.2		)	—			(11.0		)
Repurchases of common stock, including fees and expenses	(45.3		)	—			—			—			(45.3		)
Dividends paid on common stock	(77.2		)	—			—			—			(77.2		)
Dividends paid on convertible perpetual preferred stock	(3.1		)	—			—			—			(3.1		)
Distributions paid to noncontrolling interests of consolidated affiliates	—			—			(54.4		)	—			(54.4		)
Other	2.2			1.5			1.5			—			5.2
Change in intercompany advances	225.5			(174.0		)	(51.1		)	(0.4		)	—
Net cash provided by (used in) financing activities	929.9			(178.6		)	(133.0		)	21.6			639.9
Decrease in cash and cash equivalents	(0.7		)	(0.2		)	(4.2		)	—			(5.1		)
Cash and cash equivalents at beginning of year	41.9			1.5			23.3			—			66.7
Cash and cash equivalents at end of year	$	41.2		$	1.3		$	19.1		$	—		$	61.6
Supplemental schedule of noncash investing activity:
Conversion of preferred stock to common stock	$	93.2		$	—		$	—		$	—		$	93.2
Intercompany note activity	(183.5		)	—			183.5			—			—

	For the Year Ended December 31, 2014
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor Subsidiaries			Eliminating Entries		HealthSouth Consolidated
	(In Millions)
Net cash provided by operating activities	$	21.9		$	260.1		$	162.9		$	—	$	444.9
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(674.6		)	—			(20.2		)	—		(694.8		)
Purchases of property and equipment	(15.6		)	(124.0		)	(31.3		)	—		(170.9		)
Capitalized software costs	(8.6		)	(1.4		)	(7.0		)	—		(17.0		)
Proceeds from sale of restricted investments	—			—			0.3			—		0.3
Purchases of restricted investments	—			—			(3.5		)	—		(3.5		)
Net change in restricted cash	1.0			—			5.8			—		6.8
Other	—			(0.7		)	2.9			—		2.2
Net cash used in investing activities	(697.8		)	(126.1		)	(53.0		)	—		(876.9		)
Cash flows from financing activities:
Principal borrowings on term loan facilities	450.0			—			—			—		450.0
Proceeds from bond issuance	175.0			—			—			—		175.0
Principal payments on debt, including pre-payments	(298.0		)	(1.5		)	(3.1		)	—		(302.6		)
Borrowings on revolving credit facility	440.0			—			—			—		440.0
Payments on revolving credit facility	(160.0		)	—			—			—		(160.0		)
Principal payments under capital lease obligations	(0.3		)	(2.5		)	(3.3		)	—		(6.1		)
Debt amendment and issuance costs	(6.5		)	—			—			—		(6.5		)
Repurchases of common stock, including fees and expenses	(43.1		)	—			—			—		(43.1		)
Dividends paid on common stock	(65.8		)	—			—			—		(65.8		)
Dividends paid on convertible perpetual preferred stock	(6.3		)	—			—			—		(6.3		)
Distributions paid to noncontrolling interests of consolidated affiliates	—			—			(54.1		)	—		(54.1		)
Proceeds from exercising stock warrants	6.3			—			—			—		6.3
Other	7.4			—			—			—		7.4
Change in intercompany advances	158.6			(130.8		)	(27.8		)	—		—
Net cash provided by (used in) financing activities	657.3			(134.8		)	(88.3		)	—		434.2
(Decrease) increase in cash and cash equivalents	(18.6		)	(0.8		)	21.6			—		2.2
Cash and cash equivalents at beginning of year	60.5			2.3			1.7			—		64.5
Cash and cash equivalents at end of year	$	41.9		$	1.5		$	23.3		$	—	$	66.7
Supplemental schedule of noncash financing activities:
Equity rollover from Encompass management	$	—		$	—		$	64.5		$	—	$	64.5

	For the Year Ended December 31, 2013
	HealthSouth Corporation			Guarantor Subsidiaries			Nonguarantor 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:
Acquisition of businesses, net of cash acquired	—			(28.9		)	—			—		(28.9		)
Purchases of property and equipment	(2.8		)	(167.9		)	(24.5		)	—		(195.2		)
Capitalized software costs	(6.0		)	(11.1		)	(4.2		)	—		(21.3		)
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		)
Debt amendment and issuance costs	(2.6		)	—			—			—		(2.6		)
Repurchases of common stock, including fees and expenses	(234.1		)	—			—			—		(234.1		)
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		)
Proceeds from exercising stock warrants	15.3			—			—			—		15.3
Other	4.8			—			1.6			—		6.4
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
Supplemental schedule of noncash financing activities:
Convertible debt issued	$	320.0		$	—		$	—		$	—	$	320.0
Repurchase of preferred stock	(320.0		)	—			—			—		(320.0		)