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Summary of Significant Accounting Policies (Policies) | 9 Months Ended
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Sep. 30, 2022
Accounting Policies [Abstract] |
Basis of Presentation | Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements and related notes have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. The accompanying balance sheet as of December 31, 2021 has been derived from the Company’s audited financial statements for the year ended December 31, 2021 previously filed with the SEC. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements and should be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2021 included in our Annual Report on Form 10-K, which includes information and disclosures not included herein. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of our financial position, results of operations, and cash flows for the interim periods presented in conformity with GAAP. Our results for any interim period are not necessarily indicative of results for a full year or any other interim period.
Principles of Consolidation | Principles of Consolidation These Unaudited Condensed Consolidated Financial Statements include the accounts of Addus HomeCare Corporation, and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Estimates | Estimates The financial statements are prepared by management in conformity with GAAP and include estimated amounts and certain disclosures based on assumptions about future events. The Company’s critical accounting estimates include the following areas: revenue recognition, goodwill and intangibles in business combinations and when required, the quantitative assessment of goodwill. Actual results could differ from those estimates.
Computation of Weighted Average Shares | Computation of Weighted Average Shares The following table sets forth the computation of basic and diluted common shares:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | (Amounts in thousands) |  |  | (Amounts in thousands) |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Weighted average number of shares outstanding for basic per share calculation |  |  | 15,872 |  |  |  | 15,748 |  |  |  | 15,846 |  |  |  | 15,727 |
Effect of dilutive potential shares: |  |  |  |  |  |  |  |  |  |  |  |
Stock options |  |  | 255 |  |  |  | 267 |  |  |  | 244 |  |  |  | 288 |
Restricted stock awards |  |  | 57 |  |  |  | 15 |  |  |  | 56 |  |  |  | 45 |
Adjusted weighted average shares outstanding for diluted per share calculation |  |  | 16,184 |  |  |  | 16,030 |  |  |  | 16,146 |  |  |  | 16,060 |
Anti-dilutive shares: |  |  |  |  |  |  |  |  |  |  |  |
Stock options |  |  | 111 |  |  |  | 73 |  |  |  | 111 |  |  |  | 73 |
Restricted stock awards |  |  | 36 |  |  |  | 125 |  |  |  | 3 |  |  |  | 73 |
Recently Issued and Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. ASU 2021-10 requires entities to disclose certain information about the nature of certain governmental assistance received, including the nature of the transaction and the related accounting policy, the financial statement line items impacted by the assistance, as well as the significant terms and conditions of the transactions. The ASU was adopted as of January 1, 2022 and did no t have an impact on the Company’s results of operations or liquidity. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, and other transactions subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. Therefore, it will be in effect for a limited time through December 31, 2022. The ASU can be adopted no later than December 1, 2022 with early adoption permitted. On July 30, 2021, the Company entered into the Second Amendment to the Credit Agreement as discussed further in Note 8. The Credit Agreement contains hardwired fallback language that contemplates a transition from LIBOR, specifically identifies the secured overnight financing rate (“SOFR”) as the replacement reference rate and details the mechanism for transition at LIBOR cessation, which is anticipated to occur on June 30, 2023. The transition to SOFR is not expected to have a material impact on the Company’s results of operations or liquidity.

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