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Segments And Nature Of The Business
 12 Months Ended
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