Encompass Health Corp

Previous wording

We are the nation’s largest owner and operator of inpatient rehabilitation hospitals in terms of patients treated, revenues, and number of hospitals. We provide specialized rehabilitative treatment on an inpatient basis. We operate hospitals in 37 states and Puerto Rico, with concentrations in Florida and Texas. As of June 30, 2024, we operate 163 inpatient rehabilitation hospitals. For additional information about our business, see Item 1, Business, and Item 1A, Risk Factors, of the 2023 Form 10‑K.

Current wording

We are the nation’s largest owner and operator of inpatient rehabilitation hospitals in terms of patients treated, revenues, and number of hospitals. We provide specialized rehabilitative treatment on an inpatient basis. We operate hospitals in 38 states and Puerto Rico, with concentrations in Florida and Texas. As of September 30, 2024, we operate 165 inpatient rehabilitation hospitals. For additional information about our business, see Item 1, Business, and Item 1A, Risk Factors, of the 2023 Form 10‑K.

Previous wording

During the three and six months ended June 30, 2024, Net operating revenues increased 9.6% and 11.5%, respectively, over the same periods of 2023 due primarily to volume growth. See “Results of Operations” section of this Item for additional volume information.

Current wording

During the three and nine months ended September 30, 2024, Net operating revenues increased 11.9% and 11.6%, respectively, over the same periods of 2023 due primarily to volume growth. See “Results of Operations” section of this Item for additional volume information.

Previous wording

•continued our capacity expansions by adding 115 new beds to existing hospitals (inclusive of our new 40-bed satellite inpatient rehabilitation hospital in Ballwin, Missouri which began operating in May 2024); and

Current wording

•expanded our capacity by adding 125 new beds to existing hospitals (inclusive of our new 40-bed satellite inpatient rehabilitation hospital in Ballwin, Missouri which began operating in May 2024); and

Previous wording

We also continued our shareholder distributions during the six months ended June 30, 2024 by paying a quarterly cash dividend of $0.15 per share on our common stock in January 2024, April 2024, and July 2024, respectively. On July 24, 2024, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.17 per share, payable on October 15, 2024 to stockholders of record on October 1, 2024. In addition, we repurchased 0.2 million shares of our common stock in the open market for $16.8 million during the six months ended June 30, 2024. For additional information see the “Liquidity and Capital Resources” section of this Item.

Current wording

We also continued our shareholder distributions during the nine months ended September 30, 2024 by paying a quarterly cash dividend of $0.15 per share on our common stock in January 2024, April 2024, and July 2024, respectively. On July 24, 2024, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.17 per share, that was paid on October 15, 2024 to stockholders of record on October 1, 2024. On October 17, 2024, our board of directors declared a cash dividend of $0.17 per share, payable on January 15, 2025 to stockholders of record on January 2, 2025. In addition, we repurchased 0.3 million shares of our common stock in the open market for $23.6 million during the nine months ended September 30, 2024. For additional information see the “Liquidity and Capital Resources” section of this Item.

Previous wording

•Operating in a Highly Regulated Industry. We are required to comply with extensive and complex laws and regulations at the federal, state, and local government levels. More specifically, because Medicare comprises a significant portion of our Net operating revenues, failure to comply with the laws and regulations governing the Medicare program and related matters, including anti-kickback and anti-fraud requirements, could materially and adversely affect us. These rules and regulations have affected, or could in the future affect, our business activities by having an impact on the reimbursement we receive for services provided or the costs of compliance, mandating new documentation standards, requiring additional licensure or certification, regulating our relationships with physicians and other referral sources, regulating the use of our properties, and limiting our ability to enter new markets or add new capacity to existing hospitals. Ensuring continuous compliance with extensive laws and regulations is an operating requirement for all healthcare providers. See Item 1, Business, “Regulation,” Item 1A, Risk Factors, “Reimbursement Risks” and “Other Regulatory Risks” of the 2023 Form 10‑K for detailed discussions of the most important regulations we face and our programs intended to ensure we comply with those regulations.

Current wording

•Operating in a Highly Regulated Industry. We are required to comply with extensive and complex laws and regulations at the federal, state, and local government levels. More specifically, because Medicare comprises a significant portion of our Net operating revenues, failure to comply with the laws and regulations governing the Medicare program and related matters, including anti-kickback and anti-fraud requirements, could materially and adversely affect us. These rules and regulations have affected, or could in the future affect, our business activities by having an impact on the reimbursement we receive for services provided or the costs of compliance, mandating new documentation standards, requiring additional licensure or certification, regulating our relationships with physicians and other referral sources, regulating the use of our properties, and limiting our ability to enter new markets or add new capacity to existing hospitals. See Item 1, Business, “Regulation,” Item 1A, Risk Factors, “Reimbursement Risks” and “Other Regulatory Risks” of the 2023 Form 10‑K for detailed discussions of the most important regulations we face and our programs intended to ensure we comply with those regulations.

Previous wording

Beginning August 21, 2023, IRFs located in Alabama began participation in CMS’s five-year review choice demonstration (“RCD”), under which Medicare reimbursement claims are assessed for compliance with applicable coverage and clinical documentation requirements. On March 1, 2024, CMS announced the expansion of RCD, effective June 17, 2024, to include IRFs located in Pennsylvania and billing to a certain Medicare Administrative Contractor (“MAC”). We do not bill to this MAC, so we are not subject to RCD in Pennsylvania at this time. CMS plans to expand RCD further to Texas and California, but the timing for doing so is not known. We operate 47 inpatient rehabilitation hospitals (representing approximately 29% of our IRF Medicare claims) in the four RCD states. CMS has also announced it will expand RCD to include additional IRFs based on the MAC to which those IRFs submit claims.

Current wording

Beginning August 21, 2023, IRFs located in Alabama began participation in CMS’s five-year review choice demonstration (“RCD”), under which Medicare reimbursement claims are assessed for compliance with applicable coverage and clinical documentation requirements. On March 1, 2024, CMS announced the expansion of RCD, effective June 17, 2024, to include IRFs located in Pennsylvania and billing to a certain Medicare Administrative Contractor (“MAC”). We do not bill to this MAC, so we are not subject to RCD in Pennsylvania at this time. CMS plans to expand RCD further to Texas and California, but the timing for doing so is not known. We operate 47 inpatient rehabilitation hospitals (representing approximately 29% of our IRF Medicare claims) in the four RCD states. CMS has also announced it will expand RCD to include additional IRFs, but the timing and sequence for such expansion is not known.

Previous wording

Our consolidated Net operating revenues increased during the three months ended June 30, 2024 compared to the same period of 2023 primarily due to increased volumes. Discharge growth included a 4.8% increase in same-store discharges. Discharge growth from new stores during the three months ended June 30, 2024 compared to the same period of 2023 resulted from our joint ventures in Bowie, Maryland (June 2023), Columbus, Georgia (September 2023), and Atlanta, Georgia (May 2024), as well as our wholly owned hospitals in Clermont, Florida (April 2023), Prosper, Texas (November 2023), Fitchburg, Wisconsin (November 2023), and Kissimmee, Florida (May 2024). Growth in net patient revenue per discharge during the three months ended June 30, 2024 compared to the same period of 2023 primarily resulted from an increase in reimbursement rates partially offset by higher revenue reserves related to bad debt. Revenue reserves related to bad debt as a percentage of Net operating revenues increased during the three months ended June 30, 2024 to 2.9% from 1.9% during the three months ended June 30, 2023 primarily due to an increase in medical necessity claim review audits and the reversal of Supplemental Medical Review Contractor audit reserves in the three months ended June 30, 2023.

Current wording

Our consolidated Net operating revenues increased during the three months ended September 30, 2024 compared to the same period of 2023 primarily due to increased volumes. Discharge growth included a 6.8% increase in same-store discharges. Discharge growth from new stores during the three months ended September 30, 2024 compared to the same period of 2023 resulted from our joint ventures in Columbus, Georgia (September 2023), Atlanta, Georgia (May 2024), and Louisville, Kentucky (June 2024), as well as our wholly owned hospitals in Prosper, Texas (November 2023), Fitchburg, Wisconsin (November 2023), Kissimmee, Florida (May 2024), and Johnston, Rhode Island (July 2024). Growth in net patient revenue per discharge during the three months ended September 30, 2024 compared to the same period of 2023 primarily resulted from increase in reimbursement rates and lower revenue reserves related to bad debt partially offset by the change in patient mix. Revenue reserves related to bad debt as a percentage of Net operating revenues decreased during the three months ended September 30, 2024 to 1.9% from 2.2% during the three months ended September 30, 2023 primarily due to strong collections of previously reviewed claims and lower claims review audit activity.

Previous wording

Growth in revenues, discharges, and net patient revenue per discharge during the six months ended June 30, 2024 were impacted primarily by the same factors as discussed above for the second quarter of 2024. Discharge growth included a 5.5% increase in same-store discharges. Discharge growth from new stores during the six months ended June 30, 2024 compared to the same period of 2023 also resulted from our joint ventures in Knoxville, Tennessee (March 2023) and Owasso, Oklahoma (March 2023).

Current wording

Growth in revenues and discharges during the nine months ended September 30, 2024 were impacted primarily by the same factors as discussed above for the third quarter of 2024. Discharge growth included a 5.7% increase in same-store discharges. Discharge growth from new stores during the nine months ended September 30, 2024 compared to the same period of 2023 also resulted from our joint ventures in Knoxville, Tennessee (March 2023), Owasso, Oklahoma (March 2023), and Bowie, Maryland (June 2023), as well as our wholly owned hospital in Clermont, Florida (April 2023). Growth in net patient revenue per discharge during the nine months ended September 30, 2024 compared to the same period of 2023 primarily resulted from an increase in reimbursement rates partially offset by the change in patient mix.

Previous wording

The increase in outpatient and other revenue during the three and six months ended June 30, 2024 included an increase of $10.3 million and $17.2 million, respectively, in provider tax revenues (offset by an increase of $5.4 million and $7.3 million, respectively, in provider tax expenses included in Other operating expenses).

Current wording

The increase in outpatient and other revenue during the three and nine months ended September 30, 2024 included an increase of $7.9 million and $25.1 million, respectively, in provider tax revenues (offset by an increase of $4.5 million and $11.8 million, respectively, in provider tax expenses included in Other operating expenses).

Previous wording

Salaries and benefits increased during the three and six months ended June 30, 2024 compared to the same periods of 2023 primarily due to salary and benefit cost increases for our employees and increased patient volumes, including an increase in the number of full-time equivalents as a result of our development activities. Salaries and benefits increased as a percent of Net operating revenues during the three and six months ended June 30, 2024 compared to the same periods of 2023 primarily due to the increase in revenue reserves discussed above partially offset by the decreases in both contract labor and sign-on and shift bonuses. In order to meet our clinical staffing needs, we have continued to utilize third-party agencies and to pay sign-on and shift bonuses to our employees. While the costs associated with these actions have declined compared to the prior year period, future costs will be affected by labor market conditions and other factors.

Current wording

Salaries and benefits increased during the three and nine months ended September 30, 2024 compared to the same periods of 2023 primarily due to salary and benefit cost increases for our employees and increased patient volumes, including an increase in the number of full-time equivalents as a result of our development activities. Salaries and benefits decreased as a percent of Net operating revenues during the three months ended September 30, 2024 compared to the same period of 2023 primarily due to higher volumes. Salaries and benefits decreased as a percent of Net operating revenues during the nine months ended September 30, 2024 compared to the same period of 2023 primarily due to higher volumes and decreases in both contract labor and sign-on and shift bonuses. In order to meet our clinical staffing needs, we have continued to utilize third-party agencies and to pay sign-on and shift bonuses to our employees. While the costs associated with these actions have declined compared to the prior year period, future costs will be affected by labor market conditions and other factors.

Previous wording

Other operating expenses increased in terms of dollars and as a percent of Net operating revenues during the three and six months ended June 30, 2024 compared to the same periods of 2023 primarily due to increased provider taxes and higher costs resulting from our development activities. Other operating expenses during the six months ended June 30, 2024 included a $10.4 million impairment charge related to the closure of our joint venture inpatient rehabilitation hospital in Eau Claire, Wisconsin. In January 2024, we received notice that our joint venture partner intended to close its acute-care hospital in which our joint venture inpatient rehabilitation hospital was located. We closed that joint venture hospital in February 2024 and incurred a one-time impairment charge of $10.4 million. The impact to Net income attributable to Encompass Health during the six months ended June 30, 2024 resulting from the impairment was $1.8 million after reductions for Net income attributable to noncontrolling interestsof $7.3 million and the Provision for income tax expense of $1.3 million.

Current wording

Other operating expenses during the nine months ended September 30, 2024 included a $10.4 million impairment charge related to the closure of our joint venture inpatient rehabilitation hospital in Eau Claire, Wisconsin. In January 2024, we received notice that our joint venture partner intended to close its acute-care hospital in which our joint venture inpatient rehabilitation hospital was located. We closed that joint venture hospital in February 2024 and incurred a one-time impairment charge of $10.4 million. The impact to Net income attributable to Encompass Health during the nine months ended September 30, 2024 resulting from the impairment was $1.8 million after reductions for Net income attributable to noncontrolling interestsof $7.3 million and the Provision for income tax expense of $1.3 million.

Previous wording

General and administrative expenses increased in terms of dollars during the six months ended June 30, 2024 compared to the same period of 2023 primarily due to higher salaries, benefits, and software expenses partially offset by lower incentive compensation costs. General and administrative expenses decreased as a percent of Net operating revenues during the six months ended June 30, 2024 compared to the same period of 2023 primarily due to higher volumes.

Current wording

General and administrative expenses increased in terms of dollars during the three and nine months ended September 30, 2024 compared to the same periods of 2023 primarily due to mark-to-market adjustments on our non-qualified deferred compensation plan and higher salaries, benefits, and software expenses partially offset by lower incentive compensation costs. General and administrative expenses decreased as a percent of Net operating revenues during the three and nine months ended September 30, 2024 compared to the same periods of 2023 primarily due to higher volumes and lower incentive compensation costs.

Previous wording

Depreciation and amortization increased during the three months ended June 30, 2024 compared to the same period of 2023 due to our capital investments. Depreciation and amortization during the three and six months ended June 30, 2023 included $6.1 million related to the accelerated amortization of the remaining carrying value of certificate of need (“CON”) assets in South Carolina. In May 2023, the governor of South Carolina signed into law S.164, which repealed the requirement of certain healthcare providers to obtain and/or maintain a CON.

Current wording

Depreciation and amortization increased during the three and nine months ended September 30, 2024 compared to the same periods of 2023 due to our capital investments. Depreciation and amortization during the nine months ended September 30, 2023 included $6.1 million related to the accelerated amortization of the remaining carrying value of certificate of need (“CON”) assets in South Carolina. In May 2023, the governor of South Carolina signed into law S.164, which repealed the requirement of certain healthcare providers to obtain and/or maintain a CON.

Previous wording

Our pre-tax income from continuing operations increased during the three and six months ended June 30, 2024 compared to the same periods of 2023 primarily due to the increase in Net operating revenues as discussed above.

Current wording

Our pre-tax income from continuing operations increased during the three and nine months ended September 30, 2024 compared to the same periods of 2023 primarily due to the increase in Net operating revenues as discussed above.

Previous wording

Our Provision for income tax expense increased during the three and six months ended June 30, 2024 compared to the same periods of 2023 primarily due to higher Income from continuing operations before income tax expense.

Current wording

Our Provision for income tax expense increased during the three and nine months ended September 30, 2024 compared to the same periods of 2023 primarily due to higher Income from continuing operations before income tax expense.

Previous wording

We currently estimate our cash payments for income taxes to be approximately $150 million to $170 million, net of refunds, for 2024. These payments are expected to primarily result from federal and state income tax expenses based on estimates of taxable income for 2024.

Current wording

We currently estimate our cash payments for income taxes to be approximately $155 million to $165 million, net of refunds, for 2024. These payments are expected to primarily result from federal and state income tax expenses based on estimates of taxable income for 2024.

Previous wording

The increase in Net income attributable to noncontrolling interests during the three months ended June 30, 2024 compared to the same period of 2023 resulted from increased profitability from certain existing joint venture hospitals. The increase in Net income attributable to noncontrolling interests during the six months ended June 30, 2024 compared to the same period of 2023 resulted from increased profitability from certain existing joint venture hospitals partially offset by the impact from the impairment related to the closure of our joint venture hospital in Eau Claire, Wisconsin in February 2024, as discussed above.

Current wording

The increase in Net income attributable to noncontrolling interests during the three months ended September 30, 2024 compared to the same period of 2023 resulted from increased profitability from certain existing joint venture hospitals. The increase in Net income attributable to noncontrolling interests during the nine months ended September 30, 2024 compared to the same period of 2023 resulted from increased profitability from certain existing joint venture hospitals partially offset by the impact from the impairment related to the closure of our joint venture hospital in Eau Claire, Wisconsin in February 2024, as discussed above.

Previous wording

Consistent with these objectives, on July 15, 2024, we issued notice for redemption of $150 million of the outstanding principal balance of our 5.75% Senior Notes due 2025 (the “2025 Notes”). The associated redemption date will be August 15, 2024, and the redemption price will be 100.0% of par, plus accrued and unpaid interest pursuant to the terms of the 2025 Notes. We plan to use cash on hand to fund the redemption. As a result of this redemption, we expect to record an approximate $0.4 million loss on early extinguishment of debt in the third quarter of 2024.

Current wording

On October 22, 2024, we issued notice for redemption of $100 million of the outstanding principal balance of our 2025 Notes. The associated redemption date will be November 21, 2024, and the redemption price will be 100.0% of par, plus accrued and unpaid interest pursuant to the terms of the 2025 Notes. We plan to use cash on hand to fund the redemption. As a result of this redemption, we expect to record an approximate $0.2 million Loss on early extinguishment of debt in the fourth quarter of 2024.

Previous wording

As of June 30, 2024, we had $154.4 million in Cash and cash equivalents. This amount excludes $27.7 million in Restricted cash and $117.3 million of restricted marketable securities ($37.4 million included in Other current assets and $79.9 million included in Other long-term assetsin our condensed consolidated balance sheet). Our restricted assets pertain primarily to obligations associated with our captive insurance company, as well as obligations we have under agreements with joint venture partners. See Note 5, Cash and Marketable Securities, to the consolidated financial statements accompanying the 2023 Form 10‑K.

Current wording

As of September 30, 2024, we had $147.8 million in Cash and cash equivalents. This amount excludes $51.1 million in Restricted cash and $131.0 million of restricted marketable securities ($40.6 million included in Other current assets and $90.4 million included in Other long-term assetsin our condensed consolidated balance sheet). Our restricted assets pertain primarily to obligations associated with our captive insurance company, as well as obligations we have under agreements with joint venture partners. See Note 5, Cash and Marketable Securities, to the consolidated financial statements accompanying the 2023 Form 10‑K.

Previous wording

We do not face near-term refinancing risk, as the amounts outstanding under our credit agreement do not mature until 2027, and our bonds all mature in 2025 and beyond. See the “Contractual Obligations” section below for information related to our contractual obligations as of June 30, 2024.

Current wording

We do not face near-term refinancing risk, as the amounts outstanding under our credit agreement do not mature until 2027, and except for approximately $200 million of our 2025 Notes, our bonds all mature in 2028 and beyond. See Note 3, Long-term Debt, to the accompanying condensed consolidated financial statements, for additional information related to our debt. Also, see the “Contractual Obligations” section below for information related to our contractual obligations as of September 30, 2024.

Previous wording

Operating activities. The increase in Net cash provided by operating activities for the six months ended June 30, 2024 compared to the same period of 2023 primarily resulted from an increase in Net income which was driven by growth in Net operating revenues.

Current wording

Operating activities. The increase in Net cash provided by operating activities for the nine months ended September 30, 2024 compared to the same period of 2023 primarily resulted from an increase in Net income which was driven by growth in Net operating revenues.

Previous wording

Investing activities. The increase in Net cash used in investing activities during the six months ended June 30, 2024 compared to the same period of 2023 primarily resulted from increased Purchases of property, equipment, and intangible assets.

Current wording

Investing activities. The increase in Net cash used in investing activities during the nine months ended September 30, 2024 compared to the same period of 2023 primarily resulted from increased Purchases of property, equipment, and intangible assets.

Previous wording

Financing activities. The decrease in Net cash used in financing activities during the six months ended June 30, 2024 compared to the same period of 2023 primarily resulted from lower net debt payments partially offset by higher Repurchases of common stock, including fees and expenses. For additional information related to our stock repurchases, see “Authorizations for Returning Capital to Stakeholders” section below.

Current wording

Financing activities. The increase in Net cash used in financing activities during the nine months ended September 30, 2024 compared to the same period of 2023 primarily resulted from higher net debt payments and Repurchases of common stock, including fees and expenses partially offset by higher Contributions from noncontrolling interests of consolidated affiliates. Net debt payments during the nine months ended September 30, 2024 included the redemption of $150 million of the outstanding principal balance of our 2025 Notes using cash on hand. See Note 3, Long-term Debt, to the accompanying condensed consolidated financial statements, for additional information related to our debt. Contributions from noncontrolling interests of consolidated affiliates during the nine months ended September 30, 2024 included approximately $90 million from Piedmont discussed above. For additional information related to our stock repurchases, see “Authorizations for Returning Capital to Stakeholders” section below.

Previous wording

Our capital expenditures include costs associated with our hospital renovation program, de novo projects, capacity expansions, technology initiatives, and building and equipment upgrades and purchases. During the six months ended June 30, 2024, we made capital expenditures of approximately $296 million for property, equipment, and intangible assets. During 2024, we expect to spend approximately $580 million to $610 million for capital expenditures using cash on hand and borrowings under our revolving credit facility. Approximately $185 million to $195 million of this budgeted amount is considered nondiscretionary expenditures, which we may refer to in other filings as “maintenance” expenditures. Actual amounts spent will be dependent upon the timing of development projects.

Current wording

Our capital expenditures include costs associated with our hospital renovation program, de novo projects, capacity expansions, technology initiatives, and building and equipment upgrades and purchases. During the nine months ended September 30, 2024, we made capital expenditures of approximately $444 million for property, equipment, and intangible assets. During 2024, we expect to spend approximately $595 million to $625 million for capital expenditures using cash on hand and borrowings under our revolving credit facility. Approximately $185 million to $195 million of this budgeted amount is considered nondiscretionary expenditures, which we may refer to in other filings as “maintenance” expenditures. Actual amounts spent will be dependent upon the timing of development projects.

Previous wording

In October 2023, February 2024, and May 2024, our board of directors declared cash dividends of $0.15 per share that were paid in January 2024, April 2024, and July 2024, respectively. On July 24, 2024, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.17 per share, payable on October 15, 2024 to stockholders of record on October 1, 2024. We expect quarterly dividends to be paid in January, April, July, and October. However, the actual declaration of any future cash dividends, and the setting of record and payment dates as well as the per share amounts, will be at the discretion of our board of directors after consideration of various factors, including our capital position and alternative uses of funds. Cash dividends are expected to be funded using cash flows from operations, cash on hand, and availability under our revolving credit facility.

Current wording

In October 2023, February 2024, and May 2024, our board of directors declared cash dividends of $0.15 per share that were paid in January 2024, April 2024, and July 2024, respectively. On July 24, 2024, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.17 per share, that was paid on October 15, 2024 to stockholders of record on October 1, 2024. On October 17, 2024, our board of directors declared a cash dividend of $0.17 per share, payable on January 15, 2025 to stockholders of record on January 2, 2025. We expect quarterly dividends to be paid in January, April, July, and October. However, the actual declaration of any future cash dividends, and the setting of record and payment dates as well as the per share amounts, will be at the discretion of our board of directors after consideration of various factors, including our capital position and alternative uses of funds. Cash dividends are expected to be funded using cash flows from operations, cash on hand, and availability under our revolving credit facility.

Previous wording

On July 24, 2018, our board approved resetting the aggregate common stock repurchase authorization to $250 million. As of June 30, 2024, approximately $181 million remained under this authorization. On July 24, 2024, our board of directors approved resetting the aggregate common stock repurchase authorization to $500 million. The repurchase authorization does not require the repurchase of a specific number of shares, has an indefinite term, and is subject to termination at any time by our board of directors. Subject to certain terms and conditions, including a maximum price per share and compliance with federal and state securities and other laws, the repurchases may be made from time to time in open market transactions, privately negotiated transactions, or other transactions, including trades under a plan established in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the six months ended June 30, 2024, we repurchased 0.2 million shares of our common stock in the open market for $16.8 million under this repurchase authorization using cash on hand. Future repurchases under this authorization generally are expected to be funded using a combination of cash on hand and availability under our $1 billion revolving credit facility. For additional information, see Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, of this report.

Current wording

On July 24, 2018, our board approved resetting the aggregate common stock repurchase authorization to $250 million. On July 24, 2024, our board of directors approved resetting the aggregate common stock repurchase authorization to $500 million. As of September 30, 2024, approximately $498 million remained under this authorization. The repurchase authorization does not require the repurchase of a specific number of shares, has an indefinite term, and is subject to termination at any time by our board of directors. Subject to certain terms and conditions, including a maximum price per share and compliance with federal and state securities and other laws, the repurchases may be made from time to time in open market transactions, privately negotiated transactions, or other transactions, including trades under a plan established in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the nine months ended September 30, 2024, we repurchased 0.3 million shares of our common stock in the open market for $23.6 million under this repurchase authorization using cash on hand. Future repurchases under this authorization generally are expected to be funded using a combination of cash on hand and availability under our $1 billion revolving credit facility. For additional information, see Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, of this report.