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Encompass Health Corporation EHC Material Reconciling Items — Litigation Settlement Expense

Discontinued — last reported Q4 '17

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Other financials

Income statement

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Revenue$1.6B+9.0%
Operating income$151.9M+18.3%
Net income$194.5M+28.4%
EPS (diluted)$1.93+30.4%

Balance sheet

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Cash & equivalents$163.4M+33.1%
Total debt$3.1B-1.1%
Total equity$2.5B+16.8%
Total assets$7.3B+10.1%

Cash flow

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Operating cash flow$313.1M+8.5%
CapEx$162.4M-0.4%
Free cash flow$150.7M+20.1%

Valuation

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Market cap$9.72B-5.7%
Enterprise value$12.68B-5.0%
P/E16×-4.9×
P/S1.6×-0.3×

Profitability

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Operating margin12.4%-1.5pp
Net margin10%+1.1pp
FCF margin7.7%+0.6pp

Returns & leverage

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Return on equity26%+0.7pp
Debt / equity1.2×-0.2×
Current ratio1.2×+0.1×

Where this comes from

Reported directly by Encompass Health Corporation in its filing.

Tagged under the XBRL concept us-gaap:LitigationSettlementExpense.

The official record: Encompass Health Corporation’s 10-K, filed February 28, 2018, on SEC EDGAR. View the filing →

Questions, answered.

What does material reconciling items — litigation settlement expense mean?
This metric represents non-recurring expenses incurred from legal settlements, judgments, or related litigation costs that are excluded from core operating performance metrics. It serves to isolate the impact of legal contingencies from the underlying profitability of the inpatient rehabilitation business. Investors monitor this to assess the impact of one-time legal liabilities on overall financial health.