Leases	9 Months Ended
Sep. 30, 2021
Leases [Abstract]
Leases	8. Leases Chemed and each of its operating subsidiaries are service companies. As such, real estate leases comprise the largest lease obligation (and conversely, right of use asset) in our lease portfolio. VITAS has leased office space, as well as space for inpatient units (“IPUs”) and/or contract beds within hospitals. Roto-Rooter mainly has leased office space. Our leases have remaining terms of under 1 year to 10 years, some of which include options to extend the lease for up to 5 years, and some of which include options to terminate the lease within 1 year. Roto-Rooter purchases equipment and leases it to certain of its independent contractors. We analyzed these leases in accordance with ASC 842 and determined they are operating leases. As a result, Roto-Rooter will continue to capitalize the equipment underlying these leases, depreciate the equipment and recognize rental income. We do not currently have any finance leases, therefore all lease information disclosed is related to operating leases. The components of balance sheet information related to leases were as follows: ‎September 30, ‎December 31, 2021 2020Assets Operating lease assets$ 127,077 $ 123,448 Liabilities Current operating leases 35,148 36,200 Noncurrent operating leases 104,198 99,210 Total operating lease liabilities$ 139,346 $ 135,410 ‎ The components of lease expense for the third quarter is as follows (in thousands): Three months ended September 30, 2021 2020Lease Expense (a) Operating lease expense$ 15,342 $ 15,277 Sublease income (45) (31)Net lease expense$ 15,297 $ 15,246 The components of lease expense for the first nine months is as follows (in thousands): Nine months ended September 30, 2021 2020Lease Expense (a) Operating lease expense$ 46,255 $ 45,007 Sublease income (135) (38)Net lease expense$ 46,120 $ 44,969 (a)Includes short-term leases and variable lease costs, which are immaterial. Included in both cost of services provided and goods sold and selling, general and administrative expenses. The components of cash flow information related to leases were as follows: Nine months ended ‎September 30, 2021 2020Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from leases$ 38,796 $ 37,393 Leased assets obtained in exchange for new operating lease liabilities$ 43,143 $ 44,366 Weighted Average Remaining Lease Term at September 30, 2021 Operating leases 4.8 years Weighted Average Discount Rate at September 30, 2021 Operating leases 2.47% Maturity of Operating Lease Liabilities (in thousands) 2021$ 11,2202022 38,8012023 31,2542024 24,4832025 18,336Thereafter 23,921Total lease payments$ 148,015Less: interest (8,669)Total liability recognized on the balance sheet$ 139,346 For leases commencing prior to April 2019, minimum rental payments exclude payments to landlords for real estate taxes and common area maintenance. Operating lease payments include $2.3 million related to extended lease terms that are reasonably certain of being exercised and exclude $263,000 of lease payments for leases signed but not yet commenced.

Leases

9 Months Ended

Sep. 30, 2021

8. Leases Chemed and each of its operating subsidiaries are service companies. As such, real estate leases comprise the largest lease obligation (and conversely, right of use asset) in our lease portfolio. VITAS has leased office space, as well as space for inpatient units (“IPUs”) and/or contract beds within hospitals. Roto-Rooter mainly has leased office space. Our leases have remaining terms of under 1 year to 10 years, some of which include options to extend the lease for up to 5 years, and some of which include options to terminate the lease within 1 year. Roto-Rooter purchases equipment and leases it to certain of its independent contractors. We analyzed these leases in accordance with ASC 842 and determined they are operating leases. As a result, Roto-Rooter will continue to capitalize the equipment underlying these leases, depreciate the equipment and recognize rental income. We do not currently have any finance leases, therefore all lease information disclosed is related to operating leases. The components of balance sheet information related to leases were as follows: ‎September 30, ‎December 31, 2021 2020Assets Operating lease assets$ 127,077 $ 123,448 Liabilities Current operating leases 35,148 36,200 Noncurrent operating leases 104,198 99,210 Total operating lease liabilities$ 139,346 $ 135,410 ‎ The components of lease expense for the third quarter is as follows (in thousands): Three months ended September 30, 2021 2020Lease Expense (a) Operating lease expense$ 15,342 $ 15,277 Sublease income (45) (31)Net lease expense$ 15,297 $ 15,246 The components of lease expense for the first nine months is as follows (in thousands): Nine months ended September 30, 2021 2020Lease Expense (a) Operating lease expense$ 46,255 $ 45,007 Sublease income (135) (38)Net lease expense$ 46,120 $ 44,969 (a)Includes short-term leases and variable lease costs, which are immaterial. Included in both cost of services provided and goods sold and selling, general and administrative expenses. The components of cash flow information related to leases were as follows: Nine months ended ‎September 30, 2021 2020Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from leases$ 38,796 $ 37,393 Leased assets obtained in exchange for new operating lease liabilities$ 43,143 $ 44,366 Weighted Average Remaining Lease Term at September 30, 2021 Operating leases 4.8 years Weighted Average Discount Rate at September 30, 2021 Operating leases 2.47% Maturity of Operating Lease Liabilities (in thousands) 2021$ 11,2202022 38,8012023 31,2542024 24,4832025 18,336Thereafter 23,921Total lease payments$ 148,015Less: interest (8,669)Total liability recognized on the balance sheet$ 139,346 For leases commencing prior to April 2019, minimum rental payments exclude payments to landlords for real estate taxes and common area maintenance. Operating lease payments include $2.3 million related to extended lease terms that are reasonably certain of being exercised and exclude $263,000 of lease payments for leases signed but not yet commenced.