Enhabit, Inc.EHAB

Enhabit, Inc. Leases Disclosure

10-KFiled Mar 5, 20262 min read
Leases
The Company leases office space, vehicles, and equipment under operating and finance leases with non-cancelable terms generally expiring at various dates through 2035. These operating and finance leases generally have one- to eleven‑year terms. Certain leases also include options to purchase the leased property.
The components of lease costs are as follows (in millions):
Year Ended December 31,
202520242023
Operating lease cost:
General and administrative expenses$20.9 $20.7 $20.5 
Finance lease cost:
Amortization of right-of-use assets2.5 3.4 3.1 
Interest on lease liabilities0.4 0.4 0.2 
Total finance lease cost2.9 3.8 3.3 
Total lease cost$23.8 $24.5 $23.8 
Supplemental Consolidated Balance Sheet information related to leases is as follows (in millions):
As of December 31,
Classification20252024
Assets
Operating leaseOperating lease right-of-use assets$49.8 $52.8 
Finance lease(1)
Property and equipment, net7.7 11.0 
Total leased assets$57.5 $63.8 
Liabilities
Current Liabilities:
Operating leaseCurrent portion of operating lease liabilities$12.6 $12.3 
Finance leaseCurrent portion of long-term debt2.3 2.8 
Noncurrent liabilities
Operating leaseLong-term operating lease liabilities, net of current portion39.1 41.8 
Finance leaseLong-term debt, net of current portion2.3 4.6 
Total leased liabilities$56.3 $61.5 
(1)    Finance lease assets are recorded net of accumulated amortization of $19.2 million and $21.3 million as of December 31, 2025 and 2024, respectively.
As of December 31,
20252024
Weighted Average Remaining Lease Term
Operating lease5.2 years5.5 years
Finance lease2.1 years2.9 years
Weighted Average Discount Rate
Operating lease6.8 %6.9 %
Finance lease5.8 %5.7 %
Maturities of lease liabilities as of December 31, 2025 are as follows (in millions):
Year Ending December 31,    
Operating LeasesFinance Leases
Total
Leases
2026$15.5 $2.5 $18.0 
202713.5 2.1 15.6 
20289.9 0.3 10.2 
20296.7 — 6.7 
20304.7 — 4.7 
2031 and thereafter11.7 — 11.7 
Total lease payments62.0 4.9 66.9 
Less: Interest portion(10.3)(0.3)(10.6)
Total lease liabilities$51.7 $4.6 $56.3 
Supplemental cash flow information related to leases is as follows (in millions):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$15.0 $14.4 $16.0 
Operating cash flows from finance leases$0.4 $0.5 $0.2 
Financing cash flows from finance leases$2.7 $3.6 $3.4 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$12.6 $11.0 $31.6 
Finance leases$0.1 $5.5 $3.8 

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 6, 2025
2023Mar 15, 2024
2022Apr 14, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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