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Leases

12 Months Ended

Dec. 31, 2022

14. 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 IPUs and/or contract beds within hospitals. Roto-Rooter has leased office space.

The components of balance sheet information related to leases were as follows:


	December 31,
	2022		2021
Assets
Operating lease assets	$	135,662	$	125,048

Liabilities
Current operating leases		38,996		37,913
Noncurrent operating leases		110,513		100,629
Total operating lease liabilities	$	149,509	$	138,542

The components of lease expense were as follows:


	December 31,
	2022		2021
Lease Expense (a)
Operating lease expense	$	59,530	$	61,474
Sublease income		(181)		(181)
Net lease expense	$	59,349	$	61,293

(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:


	December 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$	49,571	$	50,990

Leased assets obtained in exchange for new operating lease liabilities	$	57,551	$	52,878


Weighted Average Remaining Lease Term
Operating leases	4.67		years

Weighted Average Discount Rate
Operating leases	2.55	%


Maturity of Operating Lease Liabilities (in thousands)

2023	$	45,737
2024		36,360
2025		28,798
2026		22,152
2027		11,694
Thereafter		14,509
Total lease payments	$	159,250
Less: interest		(9,741)
Total liability recognized on the balance sheet	$	149,509

For leases commencing prior to 2019, minimum rental payments exclude payments to landlords for real estate taxes and common area maintenance. Operating lease payments include $2.7 million related to extended lease terms that are reasonably certain of being exercised and exclude $928,000 of lease payments for leases signed but not yet commenced.