2013 Q4 Form 10-Q Financial Statement

#000078516113000056 Filed on October 29, 2013

View on sec.gov

Income Statement

Concept 2013 Q4 2013 Q3 2012 Q4
Revenue $572.1M $564.0M $552.9M
YoY Change 3.47% 5.03% 6.72%
Cost Of Revenue $27.10M $25.50M $26.20M
YoY Change 3.44% 7.14% 0.38%
Gross Profit $541.4M $530.5M $519.5M
YoY Change 4.22% 4.8% 6.92%
Gross Profit Margin 94.63% 94.06% 93.96%
Selling, General & Admin $315.5M $314.2M $315.0M
YoY Change 0.16% 2.18% 5.63%
% of Gross Profit 58.27% 59.23% 60.64%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $25.20M $24.30M $21.70M
YoY Change 16.13% 14.08% 7.43%
% of Gross Profit 4.65% 4.58% 4.18%
Operating Expenses $422.4M $420.7M $414.7M
YoY Change 1.86% 4.08% 6.31%
Operating Profit $119.0M $109.8M $104.8M
YoY Change 13.55% 7.65% 9.39%
Interest Expense -$23.50M -$23.30M -$21.30M
YoY Change 10.33% 15.35% 7.04%
% of Operating Profit -19.75% -21.22% -20.32%
Other Income/Expense, Net $1.300M $600.0K $1.100M
YoY Change 18.18% -90.16% -8.33%
Pretax Income $94.60M $108.4M $81.90M
YoY Change 15.51% 22.49% -0.97%
Income Tax $30.50M $35.20M $24.50M
% Of Pretax Income 32.24% 32.47% 29.91%
Net Earnings $48.90M $58.20M $47.00M
YoY Change 4.04% 23.57% -6.0%
Net Earnings / Revenue 8.55% 10.32% 8.5%
Basic Earnings Per Share -$0.31 $0.60 $0.43
Diluted Earnings Per Share -$0.31 $0.58 $0.43
COMMON SHARES
Basic Shares Outstanding 87.43M shares 86.20M shares 95.66M shares
Diluted Shares Outstanding 100.4M shares

Balance Sheet

Concept 2013 Q4 2013 Q3 2012 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $64.50M $65.00M $132.8M
YoY Change -51.43% -60.17% 341.2%
Cash & Equivalents $64.50M $65.00M $132.8M
Short-Term Investments
Other Short-Term Assets $115.1M $119.2M $117.2M
YoY Change -1.79% -13.69% -15.13%
Inventory
Prepaid Expenses
Receivables $261.8M $253.4M $249.3M
Other Receivables $12.40M $0.00 $18.00M
Total Short-Term Assets $580.4M $575.1M $636.8M
YoY Change -8.86% 4.79% 29.54%
LONG-TERM ASSETS
Property, Plant & Equipment $910.5M $893.5M $748.0M
YoY Change 21.72% 20.86% 12.58%
Goodwill $456.9M $457.2M $437.3M
YoY Change 4.48% 4.55% 3.7%
Intangibles $88.20M $87.30M $73.20M
YoY Change 20.49% 18.61% 26.86%
Long-Term Investments $18.90M $19.20M
YoY Change -1.56% -29.15%
Other Assets $144.1M $130.8M $135.4M
YoY Change 6.43% 0.08% 5.53%
Total Long-Term Assets $1.954B $1.981B $1.787B
YoY Change 9.32% 3.88% 0.44%
TOTAL ASSETS
Total Short-Term Assets $580.4M $575.1M $636.8M
Total Long-Term Assets $1.954B $1.981B $1.787B
Total Assets $2.534B $2.557B $2.424B
YoY Change 4.55% 4.08% 6.74%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $61.90M $54.20M $45.30M
YoY Change 36.64% 4.43% -0.22%
Accrued Expenses $114.6M $257.6M $111.6M
YoY Change 2.69% -20.96% 3.81%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $12.30M $13.60M
YoY Change -9.56% -171.96%
Total Short-Term Liabilities $311.6M $311.8M $300.9M
YoY Change 3.56% -17.47% -3.93%
LONG-TERM LIABILITIES
Long-Term Debt $1.505B $1.306B $1.240B
YoY Change 21.4% 5.14% 0.33%
Other Long-Term Liabilities $44.00M $140.4M $24.00M
YoY Change 83.33% 1.81% -21.05%
Total Long-Term Liabilities $44.00M $140.4M $24.00M
YoY Change 83.33% 1.81% -98.1%
TOTAL LIABILITIES
Total Short-Term Liabilities $311.6M $311.8M $300.9M
Total Long-Term Liabilities $44.00M $140.4M $24.00M
Total Liabilities $1.959B $1.758B $1.671B
YoY Change 17.21% 0.02% -0.65%
SHAREHOLDERS EQUITY
Retained Earnings -$2.101B -$2.150B -$2.425B
YoY Change -13.35% -7.09%
Common Stock $1.000M $1.000M $1.000M
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $404.6M $404.2M $163.3M
YoY Change 147.76% 9.74%
Treasury Stock Shares 14.65M shares 14640B shares 5.234M shares
Shareholders Equity $344.6M $321.1M $291.0M
YoY Change
Total Liabilities & Shareholders Equity $2.534B $2.557B $2.424B
YoY Change 4.55% 4.08% 6.74%

Cashflow Statement

Concept 2013 Q4 2013 Q3 2012 Q4
OPERATING ACTIVITIES
Net Income $48.90M $58.20M $47.00M
YoY Change 4.04% 23.57% -6.0%
Depreciation, Depletion And Amortization $25.20M $24.30M $21.70M
YoY Change 16.13% 14.08% 7.43%
Cash From Operating Activities $100.9M $142.6M $109.3M
YoY Change -7.69% 33.02% -15.53%
INVESTING ACTIVITIES
Capital Expenditures -$34.10M -$101.5M -$31.50M
YoY Change 8.25% 200.3% -33.26%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $5.100M $5.700M -$23.00M
YoY Change -122.17% -359.09% 127.72%
Cash From Investing Activities -$29.00M -$95.80M -$54.50M
YoY Change -46.79% 166.11% -4.89%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -72.40M -50.50M -85.20M
YoY Change -15.02% -199.21% -5.02%
NET CHANGE
Cash From Operating Activities 100.9M 142.6M 109.3M
Cash From Investing Activities -29.00M -95.80M -54.50M
Cash From Financing Activities -72.40M -50.50M -85.20M
Net Change In Cash -500.0K -3.700M -30.40M
YoY Change -98.36% -103.03% 72.73%
FREE CASH FLOW
Cash From Operating Activities $100.9M $142.6M $109.3M
Capital Expenditures -$34.10M -$101.5M -$31.50M
Free Cash Flow $135.0M $244.1M $140.8M
YoY Change -4.12% 73.12% -20.27%

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us-gaap Health Care Organization Revenue
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CY2013Q3 us-gaap Income Loss From Continuing Operations
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CY2011 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
1.39
CY2011Q1 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
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CY2011Q2 us-gaap Income Loss From Continuing Operations Per Basic Share
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2.31
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0.57
CY2013Q1 us-gaap Income Loss From Continuing Operations Per Basic Share
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IncomeLossFromContinuingOperationsPerBasicShare
1.82
us-gaap Income Loss From Continuing Operations Per Basic Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2013Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
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0.59
CY2012Q3 us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2013Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax
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us-gaap Income Loss From Discontinued Operations Net Of Tax
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2600000 USD
us-gaap Income Loss From Discontinued Operations Net Of Tax
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CY2012Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax
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CY2013Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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CY2012Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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2600000 USD
us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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-0.01
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.03
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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CY2013Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.02
CY2011Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.19
us-gaap Management Fees Revenue
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CY2011Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.36
CY2011 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
0.52
CY2008 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
0.39
CY2009 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.20
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IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
0.10
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
0.00
CY2013Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.00
CY2013Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
0.00
CY2012 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
0.05
CY2012Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
IncomeLossFromDiscontinuedOperationsNetOfTaxPerBasicShare
0.02
CY2012Q1 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.00
CY2012Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.04
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0.03
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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-0.01
CY2013Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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-0.01
CY2012Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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-0.01
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8200000 USD
CY2012Q3 us-gaap Income Loss From Equity Method Investments
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3300000 USD
CY2013Q3 us-gaap Income Loss From Equity Method Investments
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2000000 USD
us-gaap Income Loss From Equity Method Investments
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9700000 USD
CY2013Q3 us-gaap Income Tax Expense Benefit
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4000000 USD
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1000000 USD
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1400000 USD
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42300000 USD
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26500000 USD
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4500000 USD
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-7600000 USD
us-gaap Increase Decrease In Restricted Cash
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3900000 USD
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11600000 shares
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11600000 shares
us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
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12200000 shares
CY2012Q3 us-gaap Incremental Common Shares Attributable To Conversion Of Preferred Stock
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11600000 shares
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2100000 shares
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2600000 shares
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1400000 shares
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Contingencies and Other Commitments </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We operate in a highly regulated and litigious industry. As a result, various lawsuits, claims, and legal and regulatory proceedings have been and can be expected to be instituted or asserted against us. The resolution of any such lawsuits, claims, or legal and regulatory proceedings could materially and adversely affect our financial position, results of operations, and cash flows in a given period. </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Litigation By and Against Former Independent Auditor&#8212;</font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2003, claims on behalf of HealthSouth were brought against Ernst &amp; Young, LLP in a stockholder derivative lawsuit initially filed in the Circuit Court of Jefferson County, Alabama on August&#160;28, 2002 and captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Tucker v. Scrushy</font><font style="font-family:inherit;font-size:10pt;">. The </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Tucker</font><font style="font-family:inherit;font-size:10pt;"> derivative litigation, including the claims against various other defendants and the </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$2.9 billion</font><font style="font-family:inherit;font-size:10pt;"> judgment against Mr.&#160;Scrushy, our former chairman and chief executive officer, is more fully described in &#8220;Derivative Litigation&#8221; and &#8220;Litigation Against Richard M. Scrushy&#8221; in Note 19, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Contingencies and Other Commitments</font><font style="font-family:inherit;font-size:10pt;">, to the consolidated financial statements accompanying the 2012 Form 10-K. The </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Tucker</font><font style="font-family:inherit;font-size:10pt;"> complaint alleges that from 1996 through 2002, when Ernst &amp; Young served as our independent auditor, Ernst &amp; Young acted recklessly and with gross negligence in performing its duties, and specifically that Ernst &amp; Young failed to perform reviews and audits of our financial statements with due professional care as required by law and by its contractual agreements with us. The claims further allege Ernst &amp; Young either knew of or, in the exercise of due care, should have discovered and investigated the fraudulent and improper accounting practices being directed by certain officers and employees, and should have reported them to our board of directors and the audit committee. The claims seek compensatory and punitive damages, disgorgement of fees received from us by Ernst &amp; Young, and attorneys&#8217; fees and costs. </font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March&#160;18, 2005, Ernst&#160;&amp; Young filed a lawsuit captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Ernst&#160;&amp; Young LLP v. HealthSouth Corp.</font><font style="font-family:inherit;font-size:10pt;"> in the Circuit Court of Jefferson County, Alabama. The complaint alleges we provided Ernst&#160;&amp; Young with fraudulent management representation letters, financial statements, invoices, bank reconciliations, and journal entries in an effort to conceal accounting fraud. Ernst&#160;&amp; Young claims that as a result of our actions, Ernst&#160;&amp; Young&#8217;s reputation has been injured and it has and will incur damages, expenses, and legal fees. On April&#160;1, 2005, we answered Ernst&#160;&amp; Young&#8217;s claims and asserted counterclaims related or identical to those asserted in the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Tucker</font><font style="font-family:inherit;font-size:10pt;"> action. Upon Ernst&#160;&amp; Young&#8217;s motion, the Alabama state court referred Ernst&#160;&amp; Young&#8217;s claims and our counterclaims to arbitration pursuant to a clause in the engagement agreements between HealthSouth and Ernst &amp; Young. In August 2006, we and the derivative plaintiffs agreed to jointly prosecute the claims against Ernst &amp; Young in arbitration. </font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The trial phase of the arbitration process began on July 12, 2010 before a three-person arbitration panel selected under rules of the American Arbitration Association (the &#8220;AAA&#8221;). On December 18, 2012, the AAA panel granted Ernst &amp; Young&#8217;s motion to dismiss our claims on the grounds that HealthSouth is not permitted to pursue its claims since certain of its former officers and employees committed fraudulent acts. The panel also denied and dismissed Ernst&#160;&amp; Young&#8217;s claims against us. On December&#160;18, 2012, we, together with the stockholder derivative plaintiffs, filed a notice of appeal of the panel&#8217;s decision in the Circuit Court of Jefferson County, Alabama. On December 28, 2012, we filed a motion to vacate the decision. We assert that the panel&#8217;s decision is contrary to the Federal Arbitration Act and the duties of a public accounting firm to its corporate clients, and that the arbitrators exceeded their authority by entering an award contrary to Alabama law. On April 25, 2013, the court denied our motion to vacate. On June 4, 2013, we filed a notice of appeal to the Supreme Court of Alabama seeking review of the Circuit Court's denial of our motion to vacate the arbitration panel's decision, and the briefing schedule has begun.</font><font style="font-family:inherit;font-size:10pt;color:#0000ff;"> </font><font style="font-family:inherit;font-size:10pt;">At this time, we do not know how long the appellate process will take. </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Based on the ruling of the arbitration panel, we do not believe there is a reasonable possibility of a loss that might result from an adverse judgment or a settlement of this case.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">General Medicine Action&#8212;</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On August&#160;16, 2004, General Medicine, P.C. filed a lawsuit against us captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">General Medicine, P.C. v. HealthSouth Corp.</font><font style="font-family:inherit;font-size:10pt;"> seeking the recovery of allegedly fraudulent transfers involving assets of Horizon/CMS Healthcare Corporation, a former subsidiary of HealthSouth. The lawsuit is pending in the Circuit Court of Jefferson County, Alabama (the &#8220;Alabama Action&#8221;).</font></div><div style="line-height:120%;padding-bottom:13px;padding-top:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">General Medicine&#8217;s underlying claim against Horizon/CMS originates from a services contract entered into in 1995 between General Medicine and Horizon/CMS whereby General Medicine agreed to provide medical director services to skilled nursing facilities owned by Horizon/CMS for a term of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">three years</font><font style="font-family:inherit;font-size:10pt;">. Horizon/CMS terminated the agreement for cause six months after it was executed, and General Medicine then initiated a lawsuit against Horizon/CMS in the United States District Court for the Eastern District of Michigan in 1996 (the &#8220;Michigan Action&#8221;). General Medicine&#8217;s complaint in the Michigan Action alleged that Horizon/CMS breached the services contract by wrongfully terminating General Medicine. We acquired Horizon/CMS in 1997 and sold it to Meadowbrook Healthcare, Inc. in 2001 pursuant to a stock purchase agreement. In 2004, Meadowbrook, without the knowledge of HealthSouth, consented to the entry of a final judgment in the Michigan Action in favor of General Medicine against Horizon/CMS for the alleged wrongful termination of the contract with General Medicine in the amount of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$376 million</font><font style="font-family:inherit;font-size:10pt;">, plus interest from the date of the judgment until paid at the rate of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">10%</font><font style="font-family:inherit;font-size:10pt;"> per annum (the &#8220;Consent Judgment&#8221;). The </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$376 million</font><font style="font-family:inherit;font-size:10pt;"> damages figure was unilaterally selected by General Medicine and was not tested or opposed by Meadowbrook. Additionally, the settlement agreement (the &#8220;Settlement&#8221;) used as the basis for the Consent Judgment provided that Meadowbrook would pay only </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$300,000</font><font style="font-family:inherit;font-size:10pt;"> to General Medicine to settle the Michigan Action and that General Medicine would seek to recover the remaining balance of the Consent Judgment solely from us. We were not a party to the Michigan Action, the Settlement negotiated by Meadowbrook, or the Consent Judgment. </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The complaint filed by General Medicine against us in the Alabama Action alleges that while Horizon/CMS was our wholly owned subsidiary, General Medicine was an existing creditor of Horizon/CMS by virtue of the breach of contract claim underlying the Settlement. The complaint also alleges we caused Horizon/CMS to transfer its assets to us for less than a reasonably equivalent value or, in the alternative, with the actual intent to defraud creditors of Horizon/CMS, including General Medicine, in violation of the Alabama Uniform Fraudulent Transfer Act. General Medicine further alleges in its amended complaint that we are liable for the Consent Judgment despite not being a party to it because as Horizon/CMS&#8217;s parent we failed to observe corporate formalities in our operation and ownership of Horizon/CMS, misused our control of Horizon/CMS, stripped assets from Horizon/CMS, and engaged in other conduct which amounted to a fraud on Horizon/CMS&#8217;s creditors. General Medicine has requested relief including recovery of the unpaid amount of the Consent Judgment, the avoidance of the subject transfers of assets, attachment of the assets transferred to us, appointment of a receiver over the transferred properties, and a monetary judgment for the value of properties transferred. </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have denied liability to General Medicine and asserted counterclaims against General Medicine for fraud, injurious falsehood, tortious interference with business relations, conspiracy, unjust enrichment, abuse of process, and other causes of action. In our counterclaims, we alleged the Consent Judgment is the product of fraud, collusion and bad faith by General Medicine and Meadowbrook and, further, that these parties were guilty of a conspiracy to manufacture a lawsuit against HealthSouth in favor of General Medicine. Consequently, we assert that the Consent Judgment is not evidence of a legitimate debt owed by Horizon/CMS to General Medicine that is collectible from HealthSouth under any theory of liability.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In 2008, after we obtained discovery concerning the circumstances that led to the entry of the Consent Judgment, we filed a motion in the Michigan Action asking the court to set aside the Consent Judgment on grounds that it was the product of fraud on the court and collusion by the parties. On May 21, 2009, the court granted our motion to set aside the Consent Judgment on grounds that it was the product of fraud on the court. On March 9, 2010, General Medicine filed an appeal of the court's decision to the Sixth Circuit Court of Appeals. The parties agreed to a voluntary stay of the Alabama Action pending the outcome of General Medicine's appeal to the Sixth Circuit Court of Appeals. On April 10, 2012, the Sixth Circuit Court of Appeals reversed the lower court's ruling and reinstated the Consent Judgment. Due to the conclusion of the appeal in the Michigan Action, General Medicine requested reactivation of the Alabama Action in the Circuit Court of Jefferson County, Alabama. On January 10, 2013, we filed a motion for partial summary judgment in the Alabama Action seeking a declaration that the Consent Judgment obtained by General Medicine is not enforceable against us because, among other reasons, it was the result of collusion. On February 27, 2013, the court denied our motion and reserved the issue of collusion for a later time. The court issued a supplemental order on April 11, 2013, clarifying its February 27, 2013 ruling. The court's rulings provide that the Consent Judgment is admissible as evidence of General Medicine's claim in the Alabama Action but the amount of the Consent Judgment is not binding on us. Therefore, we remain free to present evidence challenging the amount of the damages figure contained in the Consent Judgment, including the value of the underlying contract-related claim that is the basis for the Consent Judgment. The court further ruled that we may develop and present evidence that the Consent Judgment is void in its entirety as the product of collusion by General Medicine and Horizon/CMS. The court also indicated it concurred with the Sixth Circuit Court of Appeals that the Consent Judgment did nothing more than establish Horizon/CMS's liability to General Medicine and did not establish the merits of General Medicine's separate fraudulent conveyance claims against HealthSouth. The Alabama Action is still in the discovery phase and has been set for trial beginning in June 2014.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Based on the stage of litigation, review of the current facts and circumstances as we understand them, the nature of the underlying claim, the results of the proceedings to date, and the nature and scope of the defense we continue to mount, we do not believe an adverse judgment or settlement is probable in this matter, and it is also not possible to estimate the amount of loss, if any, or range of possible loss that might result from an adverse judgment or settlement of this case. We intend to vigorously defend ourselves against General Medicine&#8217;s claims and to vigorously prosecute our counterclaims against General Medicine.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Other Litigation&#8212;</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have been named as a defendant in a lawsuit filed March 28, 2003 by several individual stockholders in the Circuit Court of Jefferson County, Alabama, captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Nichols v. HealthSouth Corp</font><font style="font-family:inherit;font-size:10pt;">. The plaintiffs allege that we, some of our former officers, and our former investment bank engaged in a scheme to overstate and misrepresent our earnings and financial position. The plaintiffs are seeking compensatory and punitive damages. This case was consolidated with the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Tucker</font><font style="font-family:inherit;font-size:10pt;"> case for discovery and other pretrial purposes and was stayed in the Circuit Court on August&#160;8, 2005. The plaintiffs filed an amended complaint on November 9, 2010 to which we responded with a motion to dismiss filed on December 22, 2010. During a hearing on February&#160;24, 2012, plaintiffs&#8217; counsel indicated his intent to dismiss certain claims against us. Instead, on March 9, 2012, the plaintiffs amended their complaint to include additional securities fraud claims against HealthSouth and add several former officers to the lawsuit. On September 12, 2012, the plaintiffs further amended their complaint to request certification as a class action. One of those named officers has repeatedly attempted to remove the case to federal district court, most recently on December 11, 2012. We filed our latest motion to remand the case back to state court on January 10, 2013. On September 27, 2013, the federal court remanded the case back to state court. We intend to vigorously defend ourselves in this case. Based on the stage of litigation, review of the current facts and circumstances as we understand them, the nature of the underlying claim, the results of the proceedings to date, and the nature and scope of the defense we continue to mount, we do not believe an adverse judgment or settlement is probable in this matter, and it is also not possible to estimate the amount of loss, if any, or range of possible loss that might result from an adverse judgment or settlement of this case.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We were named as a defendant in a lawsuit filed March 3, 2009 by an individual in the Court of Common Pleas, Richland County, South Carolina, captioned </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Sulton v. HealthSouth Corp, et al.</font><font style="font-family:inherit;font-size:10pt;"> The plaintiff alleged that certain treatment he received at a HealthSouth facility complicated a pre-existing infectious injury. The plaintiff sought recovery for pain and suffering, medical expenses, punitive damages, and other damages. On July 30, 2010, the jury in this case returned a verdict in favor of the plaintiff for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$12.3 million</font><font style="font-family:inherit;font-size:10pt;"> in damages. We appealed that verdict, and on November 21, 2012, the Supreme Court of South Carolina reversed the jury verdict in its entirety and remanded the case to the court of common pleas for retrial. On March 8, 2013, the Court of Common Pleas, Richland County, South Carolina approved our comprehensive settlement agreement with the plaintiff in the </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Sulton</font><font style="font-family:inherit;font-size:10pt;"> case. While the terms of the settlement are confidential, the amount paid to the plaintiff to settle all claims was not material to us and was less than amounts previously accrued. See Note 10, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Self-Insured Risks,</font><font style="font-family:inherit;font-size:10pt;"> to the consolidated financial statements accompanying the 2012 Form 10-K.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">HHS-OIG Investigations&#8212;</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On June 24, 2011, we received a document subpoena addressed to HealthSouth Hospital of Houston, a long-term acute care hospital (&#8220;LTCH&#8221;) we closed in August 2011, and issued from the Dallas, Texas office of the U.S. Department of Health and Human Services, Office of the Inspector General (the &#8220;HHS-OIG&#8221;). The subpoena is in connection with an investigation of possible false or otherwise improper claims submitted to Medicare and Medicaid and requests documents and materials relating to this closed LTCH&#8217;s patient admissions, length of stay, and discharge matters. </font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On March 4, 2013, we received document subpoenas addressed to </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">four</font><font style="font-family:inherit;font-size:10pt;"> of our wholly owned hospitals and issued from the Miami Lakes, Florida office of the HHS-OIG. These hospitals process all of their Medicare claims through the same Medicare administrative contractor, Cahaba Government Benefit Administrators, LLC. Each subpoena is in connection with an investigation of alleged improper or fraudulent claims submitted to Medicare and Medicaid and requests documents and materials relating to practices, procedures, protocols and policies, of certain pre- and post-admissions activities at these hospitals including, among other things, marketing functions, pre-admission screening, post-admission physician evaluations, patient assessment instruments, individualized patient plans of care, and compliance with the Medicare </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">60%</font><font style="font-family:inherit;font-size:10pt;"> rule. Under the Medicare rule commonly referred to as the &#8220;</font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">60%</font><font style="font-family:inherit;font-size:10pt;"> rule,&#8221; an inpatient rehabilitation hospital must treat </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">60%</font><font style="font-family:inherit;font-size:10pt;"> or more of its patients from at least one of a specified list of medical conditions in order to be reimbursed at the inpatient rehabilitation hospital payment rates, rather than at the lower acute care hospital payment rates. The subpoenas also request complete copies of medical records for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">100</font><font style="font-family:inherit;font-size:10pt;"> patients treated at each of these hospitals between September 2008 and June 2012.</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are cooperating fully with the HHS-OIG in connection with these subpoenas and are currently unable to predict the timing or outcome of the related investigations. </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Other Matters&#8212;</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The False Claims Act, 18 U.S.C. &#167; 287, allows private citizens, called &#8220;relators,&#8221; to institute civil proceedings alleging violations of the False Claims Act. These </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">qui tam</font><font style="font-family:inherit;font-size:10pt;"> cases are generally sealed by the court at the time of filing. The only parties privy to the information contained in the complaint are the relator, the federal government, and the presiding court. It is possible that </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">qui tam</font><font style="font-family:inherit;font-size:10pt;"> lawsuits have been filed against us and that we are unaware of such filings or have been ordered by the presiding court not to discuss or disclose the filing of such lawsuits. We may be subject to liability under one or more undisclosed </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">qui tam</font><font style="font-family:inherit;font-size:10pt;"> cases brought pursuant to the False Claims Act.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">It is our obligation as a participant in Medicare and other federal healthcare programs to routinely conduct audits and reviews of the accuracy of our billing systems and other regulatory compliance matters. As a result of these reviews, we have made, and will continue to make, disclosures to the HHS-OIG and the United States Centers for Medicare and Medicaid Services (&#8220;CMS&#8221;) relating to amounts we suspect represent over-payments from these programs, whether due to inaccurate billing or otherwise. Some of these disclosures have resulted in, or may result in, HealthSouth refunding amounts to Medicare or other federal healthcare programs. </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2008, we sold our corporate campus to Daniel Corporation (&#8220;Daniel&#8221;), a Birmingham, Alabama-based real estate company. The sale included a deferred purchase price component related to an incomplete 13-story building located on the property, often referred to as the Digital Hospital. Under the agreement, Daniel was obligated upon sale of its interest in the building to pay to us </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">40%</font><font style="font-family:inherit;font-size:10pt;"> of the net profit realized from the sale. In June 2013, Daniel sold the building to Trinity Medical Center. In the third quarter of 2013, we received </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$10.8 million</font><font style="font-family:inherit;font-size:10pt;"> in cash from Daniel in connection with the sale of the building. The gain associated with this transaction is being deferred and amortized over five years, which is the remaining life of our lease agreement with Daniel for the portion of the property we continue to occupy with our corporate office, as a component of </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">General and administrative expenses</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Pursuant to legislative directives and authorizations from Congress, CMS has developed and instituted various Medicare audit programs under which CMS contracts with private companies to conduct claims and medical record audits. One type of audit contractor, the Recovery Audit Contractors, began post-payment audit processes in late 2009 for providers in general. In connection with CMS approved and announced audits related to inpatient rehabilitation facilities, we have recently received requests to review certain patient files for discharges occurring from 2010 to 2013. To date, the Medicare payments that are subject to these audit requests represent less than </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">1%</font><font style="font-family:inherit;font-size:10pt;"> of our average annual patient discharges over the past three years. However, it is too early for us to assess the ultimate scope of the review, the number of claims that might subsequently be denied, and the ultimate result of any appeal or adjudication process. </font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As discussed in Note 19, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Contingencies and Other Commitments</font><font style="font-family:inherit;font-size:10pt;">, &#8220;Litigation Against Richard M. Scrushy,&#8221; to the consolidated financial statements accompanying the 2012 Form 10-K, we previously recorded an estimated liability for the plaintiffs in the 2004 consolidated securities action for amounts claimed by them under the 2007 comprehensive settlement of that action brought against us by our stockholders and bondholders. Specifically, this estimate related to the plaintiffs&#8217; claim for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">25%</font><font style="font-family:inherit;font-size:10pt;"> apportionment of any net recovery from Richard Scrushy, Ernst &amp; Young LLP, and UBS. In September 2013, these plaintiffs filed a request with the federal court overseeing the settlement to approve an agreement reached on how to calculate this apportionment obligation. As a result of this filing with the court, we recorded a noncash reduction to the liability originally recorded in 2006 for this obligation during the third quarter of 2013 through the line item </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Government, class action, and related settlements </font><font style="font-family:inherit;font-size:10pt;">in our condensed consolidated statements of operations.</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In addition, we have resolved all claims against former officers other than Richard Scrushy who were remaining as defendants in the derivative lawsuit discussed in Note 19, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Contingencies and Other Commitments</font><font style="font-family:inherit;font-size:10pt;">, &#8220;Derivative Litigation,&#8221; to the consolidated financial statements accompanying the 2012 Form 10-K. These resolutions included the entry of final judgments against five former officers and resulted in the collection of approximately </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$5 million</font><font style="font-family:inherit;font-size:10pt;"> during the third quarter of 2013. These collections were included in the line item </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Government, class action, and related settlements</font><font style="font-family:inherit;font-size:10pt;"> in our condensed consolidated statements of operations for the three and nine months ended September 30, 2013.</font></div></div>
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CY2012Q4 us-gaap Other Notes Payable
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11400000 USD
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0 USD
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1600000 USD
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234100000 USD
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0 USD
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46000000 USD
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0 USD
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7000000 USD
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1200000 USD
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34100000 USD
us-gaap Payments Of Dividends Minority Interest
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37600000 USD
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18900000 USD
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28900000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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3100000 USD
CY2012Q3 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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1000000 USD
CY2013Q3 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
0 USD
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166800000 USD
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112500000 USD
us-gaap Payments To Acquire Restricted Investments
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8600000 USD
us-gaap Payments To Acquire Restricted Investments
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8100000 USD
us-gaap Proceeds From Contributions From Affiliates
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9500000 USD
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0 USD
us-gaap Proceeds From Issuance Of Senior Long Term Debt
ProceedsFromIssuanceOfSeniorLongTermDebt
0 USD
us-gaap Proceeds From Issuance Of Senior Long Term Debt
ProceedsFromIssuanceOfSeniorLongTermDebt
275000000 USD
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147000000 USD
us-gaap Proceeds From Long Term Lines Of Credit
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135000000 USD
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0 USD
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15200000 USD
hls Percentage Of Net Operating Revenues Other Income
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0.015
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dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
Yes
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0 USD
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ProceedsFromSaleOfPropertyPlantAndEquipment
10800000 USD
CY2013Q3 us-gaap Proceeds From Sale Of Property Plant And Equipment
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10800000 USD
us-gaap Proceeds From Sale Of Restricted Investments
ProceedsFromSaleOfRestrictedInvestments
16900000 USD
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ProceedsFromSaleOfRestrictedInvestments
300000 USD
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ProceedsFromStockOptionsExercised
7500000 USD
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400000 USD
us-gaap Profit Loss
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176600000 USD
CY2013Q3 us-gaap Profit Loss
ProfitLoss
72300000 USD
us-gaap Profit Loss
ProfitLoss
317200000 USD
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59900000 USD
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893500000 USD
CY2013Q3 us-gaap Provision For Doubtful Accounts
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8000000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
19800000 USD
CY2012Q3 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
7000000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
22400000 USD
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13900000 USD
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7200000 USD
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
8600000 USD
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
8900000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
101300000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
2500000 USD
us-gaap Repayments Of Long Term Lines Of Credit
RepaymentsOfLongTermLinesOfCredit
245000000 USD
us-gaap Repayments Of Long Term Lines Of Credit
RepaymentsOfLongTermLinesOfCredit
112000000 USD
CY2013Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-2150000000 USD
CY2012Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-2424700000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
19000000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
18100000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
7500000 USD
CY2013Q3 us-gaap Stockholders Equity
StockholdersEquity
321100000 USD
CY2012Q4 us-gaap Stockholders Equity
StockholdersEquity
291000000 USD
CY2013Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
442000000 USD
CY2012Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
403500000 USD
CY2012Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
355400000 USD
CY2011Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
201000000 USD
us-gaap Stockholders Equity Other
StockholdersEquityOther
1600000 USD
us-gaap Stockholders Equity Other
StockholdersEquityOther
2000000 USD
CY2012Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
108100000 shares
CY2013Q3 us-gaap Supplies Expense
SuppliesExpense
25500000 USD
us-gaap Supplies Expense
SuppliesExpense
78300000 USD
CY2012Q3 us-gaap Supplies Expense
SuppliesExpense
23800000 USD
us-gaap Supplies Expense
SuppliesExpense
76200000 USD
CY2013Q3 us-gaap Temporary Equity Carrying Amount Attributable To Parent
TemporaryEquityCarryingAmountAttributableToParent
342200000 USD
CY2012Q4 us-gaap Temporary Equity Carrying Amount Attributable To Parent
TemporaryEquityCarryingAmountAttributableToParent
342200000 USD
CY2012Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
5233521000000 shares
CY2013Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
14643181000000 shares
CY2013Q3 us-gaap Treasury Stock Value
TreasuryStockValue
404200000 USD
CY2012Q4 us-gaap Treasury Stock Value
TreasuryStockValue
163300000 USD
us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
-1600000 USD
CY2013Q3 us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
-600000 USD
us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
-4100000 USD
CY2012Q3 us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
-600000 USD
CY2013Q3 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3000000 USD
CY2012Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
78000000 USD
us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
-121700000 USD
CY2012Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
0 USD
CY2013Q3 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
300000 USD
us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
46700000 USD
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
102400000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
108200000 shares
CY2013Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
100400000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
88700000 shares
CY2013Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
86200000 shares
CY2012Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
94700000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
94600000 shares
hls Cash Flow For Government Class Action And Related Settlements
CashFlowForGovernmentClassActionAndRelatedSettlements
5900000 USD
hls Cash Flow For Government Class Action And Related Settlements
CashFlowForGovernmentClassActionAndRelatedSettlements
2600000 USD
hls Government Class Action And Related Settlements Expense
GovernmentClassActionAndRelatedSettlementsExpense
-3500000 USD
CY2012Q3 hls Equity In Net Income Of Consolidated Affiliates
EquityInNetIncomeOfConsolidatedAffiliates
0 USD
hls Equity In Net Income Of Consolidated Affiliates
EquityInNetIncomeOfConsolidatedAffiliates
0 USD
CY2013Q3 hls Equity In Net Income Of Consolidated Affiliates
EquityInNetIncomeOfConsolidatedAffiliates
0 USD
hls Equity In Net Income Of Consolidated Affiliates
EquityInNetIncomeOfConsolidatedAffiliates
0 USD
hls Equity Method Investment Summarized Financial Information Operating Expenses
EquityMethodInvestmentSummarizedFinancialInformationOperatingExpenses
-32500000 USD
hls Equity Method Investment Summarized Financial Information Operating Expenses
EquityMethodInvestmentSummarizedFinancialInformationOperatingExpenses
-37500000 USD
CY2012Q3 hls Equity Method Investment Summarized Financial Information Operating Expenses
EquityMethodInvestmentSummarizedFinancialInformationOperatingExpenses
-9600000 USD
CY2013Q3 hls Equity Method Investment Summarized Financial Information Operating Expenses
EquityMethodInvestmentSummarizedFinancialInformationOperatingExpenses
-10300000 USD
CY2013Q3 hls Excess Tax Benefits From Share Based Compensation
ExcessTaxBenefitsFromShareBasedCompensation
6200000 USD
CY2012Q3 hls Government Class Action And Related Settlements Expense
GovernmentClassActionAndRelatedSettlementsExpense
-3500000 USD
hls Government Class Action And Related Settlements Expense
GovernmentClassActionAndRelatedSettlementsExpense
-23300000 USD
CY2013Q3 hls Government Class Action And Related Settlements Expense
GovernmentClassActionAndRelatedSettlementsExpense
-21300000 USD
hls Income Loss From Continuing Operations Attributable To Common Shareholders Basic
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersBasic
114900000 USD
CY2013Q3 hls Income Loss From Continuing Operations Attributable To Common Shareholders Basic
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersBasic
52800000 USD
CY2012Q3 hls Income Loss From Continuing Operations Attributable To Common Shareholders Basic
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersBasic
41300000 USD
hls Income Loss From Continuing Operations Attributable To Common Shareholders Basic
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersBasic
254600000 USD
CY2013Q3 hls Income Loss From Continuing Operations Attributable To Common Shareholders Diluted
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersDiluted
59100000 USD
CY2012Q3 hls Income Loss From Continuing Operations Attributable To Common Shareholders Diluted
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersDiluted
47600000 USD
hls Income Loss From Continuing Operations Attributable To Common Shareholders Diluted
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersDiluted
275900000 USD
hls Income Loss From Continuing Operations Attributable To Common Shareholders Diluted
IncomeLossFromContinuingOperationsAttributableToCommonShareholdersDiluted
135400000 USD
hls Net Income Loss Availableto Common Stockholders
NetIncomeLossAvailabletoCommonStockholders
253400000 USD
CY2012Q3 hls Net Income Loss Availableto Common Stockholders
NetIncomeLossAvailabletoCommonStockholders
40800000 USD
CY2013Q3 hls Net Income Loss Availableto Common Stockholders
NetIncomeLossAvailabletoCommonStockholders
51900000 USD
hls Net Income Loss Availableto Common Stockholders
NetIncomeLossAvailabletoCommonStockholders
117500000 USD
hls Net Income Loss Including Portion Attributable To Nonredeemable Noncontrolling Interest Total
NetIncomeLossIncludingPortionAttributableToNonredeemableNoncontrollingInterestTotal
173600000 USD
hls Net Income Loss Including Portion Attributable To Nonredeemable Noncontrolling Interest Total
NetIncomeLossIncludingPortionAttributableToNonredeemableNoncontrollingInterestTotal
313100000 USD
hls Net Operating Revenues Less Provision For Doubtful Accounts
NetOperatingRevenuesLessProvisionForDoubtfulAccounts
1589200000 USD
CY2012Q3 hls Net Operating Revenues Less Provision For Doubtful Accounts
NetOperatingRevenuesLessProvisionForDoubtfulAccounts
530000000 USD
CY2013Q3 hls Net Operating Revenues Less Provision For Doubtful Accounts
NetOperatingRevenuesLessProvisionForDoubtfulAccounts
556000000 USD
hls Net Operating Revenues Less Provision For Doubtful Accounts
NetOperatingRevenuesLessProvisionForDoubtfulAccounts
1678700000 USD
CY2013Q3 hls Number Of General Or Limited Partnerships Limited Liability Companies Or Joint Ventures
NumberOfGeneralOrLimitedPartnershipsLimitedLiabilityCompaniesOrJointVentures
9 facilities
CY2013Q3 hls Number Of Partially Owned Subsidiaries Nonconsolidated
NumberOfPartiallyOwnedSubsidiariesNonconsolidated
12 facilities
hls Occupancy Cost
OccupancyCost
36600000 USD
CY2012Q3 hls Occupancy Cost
OccupancyCost
11800000 USD
hls Occupancy Cost
OccupancyCost
35800000 USD
CY2013Q3 hls Occupancy Cost
OccupancyCost
11700000 USD
hls Ownership Percentage Of Subsidiary Guarantors
OwnershipPercentageOfSubsidiaryGuarantors
1.00
hls Percentage Of Net Operating Revenues Managed Care
PercentageOfNetOperatingRevenuesManagedCare
0.185
hls Percentage Of Net Operating Revenues Managed Care
PercentageOfNetOperatingRevenuesManagedCare
0.194
CY2013Q3 hls Percentage Of Net Operating Revenues Managed Care
PercentageOfNetOperatingRevenuesManagedCare
0.187
CY2012Q3 hls Percentage Of Net Operating Revenues Managed Care
PercentageOfNetOperatingRevenuesManagedCare
0.191
CY2012Q3 hls Percentage Of Net Operating Revenues Medicaid
PercentageOfNetOperatingRevenuesMedicaid
0.014
hls Percentage Of Net Operating Revenues Medicaid
PercentageOfNetOperatingRevenuesMedicaid
0.013
hls Percentage Of Net Operating Revenues Medicaid
PercentageOfNetOperatingRevenuesMedicaid
0.012
CY2013Q3 hls Percentage Of Net Operating Revenues Medicaid
PercentageOfNetOperatingRevenuesMedicaid
0.015
CY2012Q3 hls Percentage Of Net Operating Revenues Medicare
PercentageOfNetOperatingRevenuesMedicare
0.731
hls Percentage Of Net Operating Revenues Medicare
PercentageOfNetOperatingRevenuesMedicare
0.745
CY2013Q3 hls Percentage Of Net Operating Revenues Medicare
PercentageOfNetOperatingRevenuesMedicare
0.741
hls Percentage Of Net Operating Revenues Medicare
PercentageOfNetOperatingRevenuesMedicare
0.731
CY2012Q3 hls Percentage Of Net Operating Revenues Other Income
PercentageOfNetOperatingRevenuesOtherIncome
0.015
CY2013Q3 hls Percentage Of Net Operating Revenues Other Income
PercentageOfNetOperatingRevenuesOtherIncome
0.016
CY2013Q3 hls Percentage Of Net Operating Revenues Other Third Party Payors
PercentageOfNetOperatingRevenuesOtherThirdPartyPayors
0.017
CY2012Q3 hls Percentage Of Net Operating Revenues Other Third Party Payors
PercentageOfNetOperatingRevenuesOtherThirdPartyPayors
0.020
hls Percentage Of Net Operating Revenues Other Third Party Payors
PercentageOfNetOperatingRevenuesOtherThirdPartyPayors
0.018
hls Percentage Of Net Operating Revenues Other Third Party Payors
PercentageOfNetOperatingRevenuesOtherThirdPartyPayors
0.017
hls Percentage Of Net Operating Revenues Patients
PercentageOfNetOperatingRevenuesPatients
0.011
CY2013Q3 hls Percentage Of Net Operating Revenues Patients
PercentageOfNetOperatingRevenuesPatients
0.011
CY2012Q3 hls Percentage Of Net Operating Revenues Patients
PercentageOfNetOperatingRevenuesPatients
0.014
hls Percentage Of Net Operating Revenues Patients
PercentageOfNetOperatingRevenuesPatients
0.014
CY2013Q3 hls Percentage Of Net Operating Revenues Total
PercentageOfNetOperatingRevenuesTotal
1.000
hls Percentage Of Net Operating Revenues Total
PercentageOfNetOperatingRevenuesTotal
1.000
hls Percentage Of Net Operating Revenues Total
PercentageOfNetOperatingRevenuesTotal
1.000
CY2012Q3 hls Percentage Of Net Operating Revenues Total
PercentageOfNetOperatingRevenuesTotal
1.000
hls Percentage Of Net Operating Revenues Workers Compensation
PercentageOfNetOperatingRevenuesWorkersCompensation
0.015
CY2013Q3 hls Percentage Of Net Operating Revenues Workers Compensation
PercentageOfNetOperatingRevenuesWorkersCompensation
0.013
hls Percentage Of Net Operating Revenues Workers Compensation
PercentageOfNetOperatingRevenuesWorkersCompensation
0.013
CY2012Q3 hls Percentage Of Net Operating Revenues Workers Compensation
PercentageOfNetOperatingRevenuesWorkersCompensation
0.015
CY2008Q1 hls Percentage Of Net Profit Due Company From Hospital Building Sale
PercentageOfNetProfitDueCompanyFromHospitalBuildingSale
0.40
CY2012Q3 hls Professional Fees Accounting Tax And Legal
ProfessionalFeesAccountingTaxAndLegal
4100000 USD
hls Professional Fees Accounting Tax And Legal
ProfessionalFeesAccountingTaxAndLegal
13200000 USD
CY2013Q3 hls Professional Fees Accounting Tax And Legal
ProfessionalFeesAccountingTaxAndLegal
4200000 USD
hls Professional Fees Accounting Tax And Legal
ProfessionalFeesAccountingTaxAndLegal
7800000 USD
hls Repurchase Of Common Stock
RepurchaseOfCommonStock
-234100000 USD
hls Repurchase Of Convertible Perpetual Preferred Stock
RepurchaseOfConvertiblePerpetualPreferredStock
0 USD
CY2012Q3 hls Repurchase Of Convertible Perpetual Preferred Stock
RepurchaseOfConvertiblePerpetualPreferredStock
0 USD
hls Repurchase Of Convertible Perpetual Preferred Stock
RepurchaseOfConvertiblePerpetualPreferredStock
800000 USD
CY2013Q3 hls Repurchase Of Convertible Perpetual Preferred Stock
RepurchaseOfConvertiblePerpetualPreferredStock
0 USD
CY2012 hls Shareholders Equity Decreased Due To Reclassification Adjustment
ShareholdersEquityDecreasedDueToReclassificationAdjustment
600000 USD
CY2012 hls Temporary Equity Increased Due To Reclassification Adjustment
TemporaryEquityIncreasedDueToReclassificationAdjustment
7200000 USD
CY2012 hls Total Assets Increased Due To Reclassification Adjustment
TotalAssetsIncreasedDueToReclassificationAdjustment
400000 USD
dei Entity Registrant Name
EntityRegistrantName
HEALTHSOUTH CORP
dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2012Q2 dei Entity Public Float
EntityPublicFloat
2200000000 USD
CY2012 hls Total Liabilities Decreased Due To Reclassification Adjustment
TotalLiabilitiesDecreasedDueToReclassificationAdjustment
6200000 USD
hls Treasury Stock Reacquired
TreasuryStockReacquired
11900000 USD
hls Treasury Stock Reacquired
TreasuryStockReacquired
5800000 USD
hls Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccruedDecreasesResultingFromSettlementsWithTaxingAuthorities
0 USD
hls Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccruedIncreasesResultingFromPriorPeriodTaxPositions
300000 USD
CY2012Q3 hls Unrecognized Tax Benefits Reductions Resultingfrom Lapseof Applicable Statuteof Limitations And Settlements With Taxing Authorities
UnrecognizedTaxBenefitsReductionsResultingfromLapseofApplicableStatuteofLimitationsAndSettlementsWithTaxingAuthorities
1000000 USD
hls Unrecognized Tax Benefits Reductions Resultingfrom Lapseof Applicable Statuteof Limitations And Settlements With Taxing Authorities
UnrecognizedTaxBenefitsReductionsResultingfromLapseofApplicableStatuteofLimitationsAndSettlementsWithTaxingAuthorities
1000000 USD
dei Amendment Flag
AmendmentFlag
false
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--12-31
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2013
dei Document Period End Date
DocumentPeriodEndDate
2013-09-30
dei Document Type
DocumentType
10-Q
dei Entity Central Index Key
EntityCentralIndexKey
0000785161
CY2013Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
87429848 shares
dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer

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