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Segments And Nature Of The Business | 12 Months Ended
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Dec. 31, 2024
Segments And Nature Of The Business [Abstract] |
Segments And Nature Of The Business | 5. Segments and Nature of the Business In November 2023, the FASB issued Accounting Standards Update “ASU 2023-07 – Improvements to Reportable Segment Disclosures”. The guidance provides enhanced disclosures about significant segment expenses. The purpose of the amendment is to provide investors with a better understanding of an entity’s overall performance and assess potential future cash flows. The ASU does not change how an entity identifies its operating segments. We adopted ASU 2023-07 for the year ending December 31, 2024, and applied a retrospective approach to all periods presented in our consolidated financial statements. Our segments include the VITAS segment and the Roto-Rooter segment, which comprise the structure used by our President and Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. Relative contributions of each segment to service revenues and sales were 63% and 37% in 2024, 58% and 42% in 2023, and 56% and 44% in 2022. The vast majority of our service revenues and sales from continuing operations are generated from business within the United States. Service revenues and sales by business segment are shown in Note 2. The reportable segments have been defined along service lines, which is consistent with the way the businesses are managed. In determining reportable segments, the RRSC and RRC operating units of the Roto-Rooter segment have been aggregated on the basis of possessing similar operating and economic characteristics. The characteristics of these operating segments and the basis for aggregation are reviewed annually. We report corporate administrative expenses and unallocated investing and financing income and expense not directly related to either segment as “Corporate”. Corporate administrative expense includes the stewardship, accounting and reporting, legal, tax and other costs of operating a publicly held corporation. Corporate investing and financing income and expenses include the costs and income associated with corporate debt and investment arrangements. Our CODM evaluates the segments’ operating performance based mainly on income/(loss) from operations. For each segment, the CODM compares segment income/(loss) from operations in the annual budgeting and monthly forecasting process to actual results. The CODM considers variances on a monthly basis for evaluating performance of each segment and making decisions about allocating resources to each segment. Segment data are set forth below (in thousands):
|  |  |  |  |  |  |  | Reportable |  |  |  |  | Chemed
2024 (in thousands) |  | VITAS |  | Roto-Rooter |  | Segments |  | Corporate |  | Consolidated
Service revenues and sales |  | $ | 1,530,978 |  | $ | 900,309 |  | $ | 2,431,287 |  | $ | - |  | $ | 2,431,287
Cost of services provided and goods sold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(excluding depreciation) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wages |  |  | 860,025 |  |  | 303,458 |  |  | 1,163,483 |  |  | - |  |  | 1,163,483
Patient care expense |  |  | 148,165 |  |  | - |  |  | 148,165 |  |  | - |  |  | 148,165
Other expenses |  |  | 138,613 |  |  | 126,678 |  |  | 265,291 |  |  | - |  |  | 265,291
Total cost of services provided and goods sold |  | $ | 1,146,803 |  | $ | 430,136 |  | $ | 1,576,939 |  | $ | - |  | $ | 1,576,939
Selling, general and administrative expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wages |  |  | 69,139 |  |  | 81,519 |  |  | 150,658 |  |  | 17,132 |  |  | 167,790
Advertising |  |  | - |  |  | 73,147 |  |  | 73,147 |  |  | - |  |  | 73,147
Stock compensation |  |  | - |  |  | - |  |  | - |  |  | 52,185 |  |  | 52,185
Other expenses |  |  | 30,425 |  |  | 78,186 |  |  | 108,611 |  |  | 22,627 |  |  | 131,238
Total selling, general and administrative expense |  |  | 99,564 |  |  | 232,852 |  |  | 332,416 |  |  | 91,944 |  |  | 424,360
Depreciation |  |  | 20,362 |  |  | 32,452 |  |  | 52,814 |  |  | 50 |  |  | 52,864
Amortization |  |  | 105 |  |  | 10,080 |  |  | 10,185 |  |  | - |  |  | 10,185
Other operating expense |  |  | 178 |  |  | 268 |  |  | 446 |  |  | - |  |  | 446
Total costs and expenses |  |  | 1,267,012 |  |  | 705,788 |  |  | 1,972,800 |  |  | 91,994 |  |  | 2,064,794
Income/(loss) from operations |  |  | 263,966 |  |  | 194,521 |  |  | 458,487 |  |  | (91,994) |  |  | 366,493
Interest expense |  |  | (171) |  |  | (431) |  |  | (602) |  |  | (1,178) |  |  | (1,780)
Intercompany interest income/(expense) |  |  | 20,211 |  |  | 14,397 |  |  | 34,608 |  |  | (34,608) |  |  | -
Other income - net |  |  | 227 |  |  | 69 |  |  | 296 |  |  | 34,456 |  |  | 34,752
Income/(expense) before income taxes |  |  | 284,233 |  |  | 208,556 |  |  | 492,789 |  |  | (93,324) |  |  | 399,465
Income taxes |  |  | (67,414) |  |  | (48,510) |  |  | (115,924) |  |  | 18,458 |  |  | (97,466)
Net income/(loss) |  | $ | 216,819 |  | $ | 160,046 |  | $ | 376,865 |  | $ | (74,866) |  | $ | 301,999
Identifiable assets |  | $ | 839,568 |  | $ | 529,076 |  | $ | 1,368,644 |  | $ | 299,931 |  | $ | 1,668,575
Additions to long-lived assets |  | $ | 108,629 |  | $ | 38,274 |  | $ | 146,903 |  | $ | 275 |  | $ | 147,178
‎
|  |  |  |  |  |  |  | Reportable |  |  |  |  | Chemed
2023 (in thousands) |  | VITAS |  | Roto-Rooter |  | Segments |  | Corporate |  | Consolidated
Service revenues and sales |  | $ | 1,315,065 |  | $ | 949,352 |  | $ | 2,264,417 |  | $ | - |  | $ | 2,264,417
Cost of services provided and goods sold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(excluding depreciation) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wages |  |  | 766,264 |  |  | 307,160 |  |  | 1,073,424 |  |  | - |  |  | 1,073,424
Patient care expense |  |  | 126,259 |  |  | - |  |  | 126,259 |  |  | - |  |  | 126,259
Other expenses |  |  | 125,100 |  |  | 140,819 |  |  | 265,919 |  |  | - |  |  | 265,919
Total cost of services provided and good sold |  | $ | 1,017,623 |  | $ | 447,979 |  | $ | 1,465,602 |  | $ | - |  | $ | 1,465,602
Selling, general and administrative expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wages |  |  | 62,503 |  |  | 83,070 |  |  | 145,573 |  |  | 17,993 |  |  | 163,566
Advertising |  |  | - |  |  | 67,709 |  |  | 67,709 |  |  | - |  |  | 67,709
Stock compensation |  |  | - |  |  | - |  |  | - |  |  | 41,771 |  |  | 41,771
Other expenses |  |  | 30,793 |  |  | 80,808 |  |  | 111,601 |  |  | 10,473 |  |  | 122,074
Total selling, general and administrative expense |  |  | 93,296 |  |  | 231,587 |  |  | 324,883 |  |  | 70,237 |  |  | 395,120
Depreciation |  |  | 19,959 |  |  | 30,790 |  |  | 50,749 |  |  | 53 |  |  | 50,802
Amortization |  |  | 104 |  |  | 9,959 |  |  | 10,063 |  |  | - |  |  | 10,063
Other operating expense |  |  | (12) |  |  | 2,273 |  |  | 2,261 |  |  | - |  |  | 2,261
Total costs and expenses |  |  | 1,130,970 |  |  | 722,588 |  |  | 1,853,558 |  |  | 70,290 |  |  | 1,923,848
Income/(loss) from operations |  |  | 184,095 |  |  | 226,764 |  |  | 410,859 |  |  | (70,290) |  |  | 340,569
Interest expense |  |  | (180) |  |  | (442) |  |  | (622) |  |  | (2,486) |  |  | (3,108)
Intercompany interest income/(expense) |  |  | 19,400 |  |  | 11,918 |  |  | 31,318 |  |  | (31,318) |  |  | -
Other income - net |  |  | 1,309 |  |  | 126 |  |  | 1,435 |  |  | 11,471 |  |  | 12,906
Income/(expense) before income taxes |  |  | 204,624 |  |  | 238,366 |  |  | 442,990 |  |  | (92,623) |  |  | 350,367
Income taxes |  |  | (46,115) |  |  | (50,125) |  |  | (96,240) |  |  | 18,382 |  |  | (77,858)
Net income/(loss) |  | $ | 158,509 |  | $ | 188,241 |  | $ | 346,750 |  | $ | (74,241) |  | $ | 272,509
Identifiable assets |  | $ | 778,950 |  | $ | 523,450 |  | $ | 1,302,400 |  | $ | 365,695 |  | $ | 1,668,095
Additions to long-lived assets |  | $ | 17,450 |  | $ | 43,514 |  | $ | 60,964 |  | $ | 274 |  | $ | 61,238
‎
|  |  |  |  |  |  |  | Reportable |  |  |  |  | Chemed
2022 (in thousands) |  | VITAS |  | Roto-Rooter |  | Segments |  | Corporate |  | Consolidated
Service revenues and sales |  | $ | 1,201,564 |  | $ | 933,399 |  | $ | 2,134,963 |  | $ | - |  | $ | 2,134,963
Cost of services provided and goods sold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(excluding depreciation) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wages |  |  | 694,419 |  |  | 301,680 |  |  | 996,099 |  |  | - |  |  | 996,099
Patient care expense |  |  | 116,343 |  |  | - |  |  | 116,343 |  |  | - |  |  | 116,343
Other expenses |  |  | 121,099 |  |  | 136,336 |  |  | 257,435 |  |  | - |  |  | 257,435
Total cost of services provided and goods sold |  | $ | 931,861 |  | $ | 438,016 |  | $ | 1,369,877 |  | $ | - |  | $ | 1,369,877
Selling, general and administrative expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wages |  |  | 55,416 |  |  | 82,404 |  |  | 137,820 |  |  | 17,551 |  |  | 155,371
Advertising |  |  | - |  |  | 61,630 |  |  | 61,630 |  |  | - |  |  | 61,630
Stock compensation |  |  | - |  |  | - |  |  | - |  |  | 34,055 |  |  | 34,055
Other expenses |  |  | 33,771 |  |  | 78,223 |  |  | 111,994 |  |  | (4,323) |  |  | 107,671
Total selling, general and administrative expense |  |  | 89,187 |  |  | 222,257 |  |  | 311,444 |  |  | 47,283 |  |  | 358,727
Depreciation |  |  | 21,955 |  |  | 27,075 |  |  | 49,030 |  |  | 72 |  |  | 49,102
Amortization |  |  | 101 |  |  | 9,969 |  |  | 10,070 |  |  | - |  |  | 10,070
Other operating expense |  |  | 3,337 |  |  | 354 |  |  | 3,691 |  |  | - |  |  | 3,691
Total costs and expenses |  |  | 1,046,441 |  |  | 697,671 |  |  | 1,744,112 |  |  | 47,355 |  |  | 1,791,467
Income/(loss) from operations |  |  | 155,123 |  |  | 235,728 |  |  | 390,851 |  |  | (47,355) |  |  | 343,496
Interest expense |  |  | (172) |  |  | (396) |  |  | (568) |  |  | (4,016) |  |  | (4,584)
Intercompany interest income/(expense) |  |  | 18,901 |  |  | 9,345 |  |  | 28,246 |  |  | (28,246) |  |  | -
Other income - net |  |  | 600 |  |  | 138 |  |  | 738 |  |  | (9,971) |  |  | (9,233)
Income/(expense) before income taxes |  |  | 174,452 |  |  | 244,815 |  |  | 419,267 |  |  | (89,588) |  |  | 329,679
Income taxes |  |  | (43,000) |  |  | (58,695) |  |  | (101,695) |  |  | 21,640 |  |  | (80,055)
Net income/(loss) |  | $ | 131,452 |  | $ | 186,120 |  | $ | 317,572 |  | $ | (67,948) |  | $ | 249,624
Identifiable assets |  | $ | 750,483 |  | $ | 512,424 |  | $ | 1,262,907 |  | $ | 179,105 |  | $ | 1,442,012
Additions to long-lived assets |  | $ | 22,580 |  | $ | 39,111 |  | $ | 61,691 |  | $ | 177 |  | $ | 61,868

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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