Encompass Health CorpEHC

Encompass Health Corp Segments Disclosure

10-KFiled Feb 26, 20263 min read
Segment Reporting:
We manage our operations using one operating segment which is also our reportable segment: inpatient rehabilitation. Our national network of inpatient rehabilitation hospitals provide specialized rehabilitative treatment on an inpatient basis. Our inpatient rehabilitation hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations.
The accounting policies of our reportable segment are the same as those described in Note 1, Summary of Significant Accounting Policies. All revenues for our services are generated through external customers. See Note 1, Summary of Significant Accounting Policies, “Net Operating Revenues,” for the disaggregation of our revenues. Our chief operating decision maker (“CODM”) is the chief executive officer. Our CODM evaluates the performance and allocates resources based on adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”). Our CODM primarily considers forecast-to-budget variances and current year actuals to prior year actuals variances to assess performance and to help inform operating decisions, including allocating resources.
Selected financial information, including significant segment expenses, for our reportable segment is as follows (in millions):
For the Year Ended December 31,
202520242023
Net operating revenues$5,935.2 $5,373.2 $4,801.2 
Less:
Salaries and benefits3,115.9 2,901.0 2,600.1 
Other operating expenses886.0 785.2 709.3 
Supplies254.4 239.0 218.3 
Occupancy costs59.0 57.3 56.3 
General and administrative expenses173.8 156.1 146.5 
Net income attributable to noncontrolling interests192.9 148.2 113.2 
Other segment items(1)
(14.7)(17.3)(13.6)
Adjusted EBITDA$1,267.9 $1,103.7 $971.1 
(1)Includes interest income, investment gain or loss, and equity in net income of nonconsolidated affiliates.
Segment reconciliation (in millions):
For the Year Ended December 31,
202520242023
Adjusted EBITDA$1,267.9 $1,103.7 $971.1 
Stock-based compensation(56.5)(48.3)(50.6)
Depreciation and amortization(327.9)(299.6)(273.9)
Loss on disposal or impairment of assets(2.7)(17.4)(9.8)
Loss on early extinguishment of debt— (0.6)— 
Interest expense and amortization of debt discounts and fees(123.2)(137.4)(143.5)
Net income attributable to noncontrolling interests192.9 140.9 111.0 
Change in fair market value of marketable securities2.5 1.0 0.7 
Asset impairment impact on noncontrolling interests— 7.3 — 
State regulatory change impact on noncontrolling interests— — 2.2 
Income from continuing operations before income tax expense$953.0 $749.6 $607.2 
Additional detail regarding the revenues of our operating segment by service line follows (in millions):
For the Year Ended December 31,
202520242023
Net operating revenues:
Inpatient$5,756.3 $5,230.5 $4,693.8 
Other178.9 142.7 107.4 
Net operating revenues$5,935.2 $5,373.2 $4,801.2 
Equity in net income of nonconsolidated affiliates and the Provision for income tax expense are reported on our consolidated statements of operations. Segment assets are reported on our consolidated balance sheets as Total assets. Segment capital expenditures are reported on our consolidated statements of cash flows as Purchases of property, equipment, and intangible assets.
Free Sentinel

Want the next Encompass Health Corp segments disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Encompass Health Corp's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 28, 2025
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 27, 2020
2018Feb 27, 2019
2017Feb 28, 2018
2016Feb 22, 2017
2015Feb 25, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew StandardsPay vs Performance