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Leases

12 Months Ended

Dec. 31, 2024

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,
	2024		2023
Assets
Operating lease assets	$	127,323	$	126,387

Liabilities
Current operating leases		42,306		38,635
Noncurrent operating leases		98,538		100,776
Total operating lease liabilities	$	140,844	$	139,411

The components of lease expense were as follows:


	December 31,
	2024		2023		2022
Lease Expense (a)
Operating lease expense	$	64,228	$	59,769	$	59,530
Sublease income		(311)		(93)		(181)
Net lease expense	$	63,917	$	59,676	$	59,349

(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,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$	51,762	$	49,777

Leased assets obtained in exchange for new operating lease liabilities	$	49,883	$	37,111


Weighted Average Remaining Lease Term
Operating leases	4.58	yrs

Weighted Average Discount Rate
Operating leases	3.7	%


Maturity of Operating Lease Liabilities (in thousands)

2025	$	48,956
2026		37,081
2027		23,697
2028		17,057
2029		11,811
Thereafter		15,684
Total lease payments	$	154,286
Less: interest		(13,442)
Total liability recognized on the balance sheet	$	140,844

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 $3.1 million related to extended lease terms that are reasonably certain of being exercised and exclude $1.1 million of lease payments for leases signed but not yet commenced.