Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Entity Central Index Key | 0000019584 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-8351 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Registrant Name | CHEMED CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 31-0791746 | ||
Entity Address, Address Line One | Suite 2600 | ||
Entity Address, Address Line Two | 255 East Fifth Street | ||
Entity Address, City or Town | Cincinnati | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45202-4726 | ||
City Area Code | 513 | ||
Local Phone Number | 762-6690 | ||
Title of 12(b) Security | Capital Stock – Par Value $1 Per Share | ||
Trading Symbol | CHE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,634,515,157 | ||
Entity Common Stock, Shares Outstanding | 16,055,361 | ||
Documents Incorporated by Reference | Document Where Incorporated 2019 Annual Report to Stockholders (specified portions) Proxy Statement for Annual Meeting to be held May 18, 2020 Parts I, II, and IV Part III |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements Of Income [Abstract] | |||
Service revenues and sales (Note 2) | $ 1,938,555 | $ 1,782,648 | $ 1,666,724 |
Cost of services provided and goods sold (excluding depreciation) | 1,321,126 | 1,227,644 | 1,150,532 |
Selling, general and administrative expenses | 305,712 | 271,209 | 276,652 |
Depreciation | 40,870 | 38,464 | 35,488 |
Amortization | 4,335 | 399 | 137 |
Other operating expenses (Note 19) | 9,132 | 1,300 | 90,880 |
Total costs and expenses | 1,681,175 | 1,539,016 | 1,553,689 |
Income from operations | 257,380 | 243,632 | 113,035 |
Interest expense | (4,535) | (4,990) | (4,272) |
Other income--net (Note 10) | 8,764 | 958 | 8,154 |
Income before income taxes | 261,609 | 239,600 | 116,917 |
Income taxes (Note 11) | (41,686) | (34,056) | (18,740) |
Net income | $ 219,923 | $ 205,544 | $ 98,177 |
Earnings Per Share (Note 15) | |||
Net income | $ 13.77 | $ 12.80 | $ 6.11 |
Average number of shares outstanding | 15,969 | 16,059 | 16,057 |
Diluted Earnings Per Share (Note 15) | |||
Net income | $ 13.31 | $ 12.23 | $ 5.86 |
Average number of shares outstanding | 16,527 | 16,803 | 16,742 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents (Note 9) | $ 6,158 | $ 4,831 |
Accounts receivable | 143,827 | 119,504 |
Inventories | 7,462 | 5,705 |
Prepaid income taxes | 10,074 | 10,646 |
Prepaid expenses | 23,150 | 19,154 |
Total current assets | 190,671 | 159,840 |
Investments of deferred compensation plans held in trust (Note 14 and 16) | 77,446 | 65,624 |
Properties and equipment, at cost, less accumulated depreciation (Note 12) | 175,763 | 162,033 |
Lease right of use asset (Note 13) | 111,652 | |
Identifiable intangible assets less accumulated amortization of $37,620 (2018 - $33,283) (Note 6) | 126,370 | 68,253 |
Goodwill | 577,367 | 510,570 |
Other assets | 9,048 | 9,209 |
Total Assets | 1,268,317 | 975,529 |
Current liabilities | ||
Accounts payable | 51,101 | 50,150 |
Accrued insurance | 50,328 | 46,095 |
Accrued compensation | 70,814 | 63,329 |
Accrued legal | 6,941 | 1,857 |
Short-term lease liability (Note 13) | 39,280 | |
Other current liabilities | 43,756 | 30,239 |
Total current liabilities | 262,220 | 191,670 |
Deferred income taxes (Note 11) | 18,504 | 21,598 |
Long-term debt (Note 3) | 90,000 | 89,200 |
Deferred compensation liabilities (Note 14) | 76,446 | 64,616 |
Long-term lease liability (Note 13) | 86,656 | |
Other liabilities | 7,883 | 17,111 |
Total Liabilities | 541,709 | 384,195 |
Commitments and contingencies (Note 17) | ||
Stockholders' Equity | ||
Capital stock - authorized 80,000,000 shares $1 par; issued 35,810,528 shares (2018 - 35,311,418 shares) | 35,811 | 35,311 |
Paid-in capital | 860,671 | 774,358 |
Retained earnings | 1,425,752 | 1,225,617 |
Treasury stock - 19,867,220 shares (2018 - 19,438,358 shares), at cost | (1,597,940) | (1,446,296) |
Deferred compensation payable in Company stock (Note 14) | 2,314 | 2,344 |
Total Stockholders' Equity | 726,608 | 591,334 |
Total Liabilities and Stockholders' Equity | $ 1,268,317 | $ 975,529 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets [Abstract] | ||
Identifiable intangible assets, accumulated amortization | $ 37,620 | $ 33,283 |
Capital stock - authorized | 80,000,000 | 80,000,000 |
Capital stock - par value | $ 1 | $ 1 |
Capital stock - issued | 35,810,528 | 35,311,418 |
Treasury stock | 19,867,220 | 19,438,358 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 219,923 | $ 205,544 | $ 98,177 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation and amortization | 45,205 | 38,863 | 35,625 |
Stock option expense | 14,831 | 12,611 | 10,485 |
Accrued litigation settlement | 6,000 | ||
Noncash portion of long-term incentive compensation | 5,740 | 5,405 | 3,774 |
Provision/(benefit) for deferred income taxes (Note 11) | (2,770) | 5,187 | 2,407 |
Noncash directors' compensation | 767 | 766 | 766 |
Loss on sale of transportation equipment (Note 19) | 2,266 | 5,266 | |
Amortization of debt issuance costs | 306 | 441 | 516 |
Amortization of restricted stock awards | 446 | 1,231 | |
Provision for uncollectible accounts receivable | 17,306 | ||
Changes in operating assets and liabilities: | |||
Decrease/(increase) in accounts receivable | (19,247) | (5,570) | 1,072 |
Decrease/(increase) in inventories | (1,757) | (351) | 421 |
Increase in prepaid expenses | (3,491) | (2,665) | (2,987) |
Increase in accounts payable and other current liabilities | 28,417 | 8,935 | 12,890 |
Net change in lease assets and liabilities | 3,108 | ||
Change in current income taxes | 161 | 18,898 | (26,104) |
Increase in other assets | (11,963) | (5,544) | (8,330) |
Increase in other liabilities | 12,354 | 3,451 | 8,561 |
Other sources | 1,399 | 721 | 1,419 |
Net cash provided by operating activities | 301,249 | 287,138 | 162,495 |
Cash Flows from Investing Activities | |||
Business combinations, net of cash acquired (Note 7) | (138,010) | (53,177) | (4,725) |
Capital expenditures | (53,022) | (52,872) | (64,300) |
Other sources | 272 | 824 | 1,417 |
Net cash used by investing activities | (190,760) | (105,225) | (67,608) |
Cash Flows from Financing Activities | |||
Proceeds from revolving line of credit | 482,900 | 469,550 | 212,350 |
Payments on revolving line of credit | (482,100) | (406,550) | (211,150) |
Purchases of treasury stock | (92,631) | (158,884) | (94,640) |
Proceeds from exercise of stock options (Note 4) | 34,380 | 32,412 | 27,092 |
Capital stock surrendered to pay taxes on stock-based compensation | (28,474) | (27,548) | (14,223) |
Dividends paid | (19,788) | (18,662) | (17,371) |
Change in cash overdrafts payable | (3,927) | (1,531) | 6,700 |
Payments on other long-term debt | (75,000) | (8,750) | |
Debt issuance costs | (1,052) | ||
Other sources/(uses) | 478 | (938) | 916 |
Net cash used by financing activities | (109,162) | (188,203) | (99,076) |
Increase/(decrease) in cash and cash equivalents | 1,327 | (6,290) | (4,189) |
Cash and cash equivalents at beginning of year | 4,831 | 11,121 | 15,310 |
Cash and cash equivalents at end of year | $ 6,158 | $ 4,831 | $ 11,121 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands | Capital Stock [Member] | Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock-At Cost [Member] | Deferred Compensation Payable In Company Stock [Member] | Total |
Balance at Dec. 31, 2016 | $ 34,270 | $ 639,703 | $ 958,149 | $ (1,110,536) | $ 2,513 | $ 524,099 |
Net income | 98,177 | 98,177 | ||||
Dividends paid | (17,371) | (17,371) | ||||
Stock awards and exercise of stock options (Note 4) | 462 | 55,264 | (26,467) | 29,259 | ||
Purchases of treasury stock (Note 18) | (94,640) | (94,640) | ||||
Other | 830 | 311 | (311) | 830 | ||
Balance at Dec. 31, 2017 | 34,732 | 695,797 | 1,038,955 | (1,231,332) | 2,202 | 540,354 |
Net income | 205,544 | 205,544 | ||||
Dividends paid | (18,662) | (18,662) | ||||
Stock awards and exercise of stock options (Note 4) | 579 | 79,452 | (55,939) | 24,092 | ||
Purchases of treasury stock (Note 18) | (158,884) | (158,884) | ||||
Other | (891) | (220) | (141) | 142 | (1,110) | |
Balance at Dec. 31, 2018 | 35,311 | 774,358 | 1,225,617 | (1,446,296) | 2,344 | 591,334 |
Net income | 219,923 | 219,923 | ||||
Dividends paid | (19,788) | (19,788) | ||||
Stock awards and exercise of stock options (Note 4) | 500 | 85,788 | (59,043) | 27,245 | ||
Purchases of treasury stock (Note 18) | (92,631) | (92,631) | ||||
Other | 525 | 30 | (30) | 525 | ||
Balance at Dec. 31, 2019 | $ 35,811 | $ 860,671 | $ 1,425,752 | $ (1,597,940) | $ 2,314 | $ 726,608 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements Of Changes In Stockholders' Equity [Abstract] | |||
Dividends paid per share | $ 1.24 | $ 1.16 | $ 1.08 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies NATURE OF OPERATIONS We operate through our two wholly-owned subsidiaries: VITAS Healthcare Corporation (“VITAS”) and Roto-Rooter Group, Inc. (“Roto-Rooter”). VITAS focuses on hospice care that helps make terminally ill patients' final days as comfortable as possible. Through its team of doctors, nurses, home health aides, social workers, clergy and volunteers, VITAS provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Roto-Rooter provides plumbing, drain cleaning and water restoration services to both residential and commercial customers. Through its network of company-owned branches, independent contractors and franchisees, Roto-Rooter offers plumbing, drain cleaning service and water restoration to approximately 90 % of the U.S. population. PRINCIPLES OF ACCOUNTING The consolidated financial statements have been prepared on a going-concern basis. The consolidated financial statements include the accounts of Chemed Corporation and its wholly owned subsidiaries. All intercompany transactions have been eliminated. We have analyzed the provisions of the Financial Accounting Standards Board (“FASB”) authoritative guidance on the consolidation of variable interest entities relative to our contractual relationships with Roto-Rooter’s independent contractors and franchisees. The guidance requires the primary beneficiary of a Variable Interest Entity (“VIE”) to consolidate the accounts of the VIE. We have concluded that neither the independent contractors nor the franchisees are VIEs. Certain reclassifications have been made to prior year financial statements to conform to current presentation. CASH EQUIVALENTS Cash equivalents comprise short-term, highly liquid investments, including money market funds that have original maturities of three months or less. CONCENTRATION OF RISK As of December 31, 2019 and 2018, approximately 71 % and 68 %, respectively, of VITAS’ total accounts receivable balance were from Medicare and 24 % and 26 %, respectively, of VITAS’ total accounts receivable balance were due from various state Medicaid or managed Medicaid programs. Combined accounts receivable from Medicare, Medicaid, and managed Medicaid represent approximately 75 % of the consolidated net accounts receivable in the accompanying consolidated balance sheets as of December 31, 2019. VITAS has a pharmacy services contract with one service provider for specified pharmacy services related to its hospice operations. A large majority of VITAS’ pharmaceutical purchases are from this vendor. The pharmaceuticals purchased by VITAS are available through many providers in the United States. However, a disruption from VITAS’ main service provider could adversely impact VITAS’ operations, including temporary logistical challenges and increased cost associated with getting medication to our patients. INVENTORIES Substantially all of the inventories are either general merchandise or finished goods. Inventories are stated at the lower of cost or net realizable value. For determining the value of inventories, cost methods that reasonably approximate the first-in, first-out (“FIFO”) method are used. DEPRECIATION AND PROPERTIES AND EQUIPMENT Depreciation of properties and equipment is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the remaining lease terms (excluding option terms) or their useful lives. Expenditures for maintenance, repairs, renewals and betterments that do not materially prolong the useful lives of the assets are expensed as incurred. The cost of property retired or sold and the related accumulated depreciation are removed from the accounts, and the resulting gain or loss is reflected currently in other operating expense or other income, net. Expenditures for major software purchases and software developed for internal use are capitalized and depreciated using the straight-line method over the estimated useful lives of the assets. For software developed for internal use, external direct costs for materials and services and certain internal payroll and related fringe benefit costs are capitalized in accordance with the FASB’s authoritative guidance on accounting for the costs of computer software developed or obtained for internal use. The weighted average lives of our property and equipment at December 31, 2019, were: Buildings and building improvements 15.1 yrs. Transportation equipment 4.6 Machinery and equipment 5.2 Computer software 4.2 Furniture and fixtures 4.6 GOODWILL AND INTANGIBLE ASSETS The table below shows a rollforward of Goodwill (in thousands): Roto- Vitas Rooter Total Balance at December 31, 2017 $ 328,301 $ 148,586 $ 476,887 Business combinations 5,030 28,780 33,810 Foreign currency adjustments - ( 127 ) ( 127 ) Balance at December 31, 2018 $ 333,331 $ 177,239 $ 510,570 Business combinations - 66,726 66,726 Foreign currency adjustments - 71 71 Balance at December 31, 2019 $ 333,331 $ 244,036 $ 577,367 Identifiable, definite-lived intangible assets arise from purchase business combinations and are amortized using either an accelerated method or the straight-line method over the estimated useful lives of the assets. The selection of an amortization method is based on which method best reflects the economic pattern of usage of the asset. Reacquired franchise rights are amortized over the remaining term of the franchise agreement at the time of acquisition. The weighted average lives of our identifiable, definite-lived intangible assets at December 31, 2019, were: Covenants not to compete 6.4 yrs. Reacquired franchise rights 7.4 Referral networks 10.0 Customer lists 16.8 The date of our annual goodwill and indefinite-lived intangible asset impairment analysis is October 1. The VITAS trade name is considered to have an indefinite life. We also capitalize the direct costs of obtaining licenses to operate either hospice programs or plumbing operations subject to a minimum capitalization threshold. These costs are amortized over the life of the license using the straight-line method. Certificates of Need (“CON”), which are required in certain states for hospice operations, are generally granted without expiration and thus, we believe them to be indefinite-lived assets subject to impairment testing. We consider that Roto-Rooter Corp. (“RRC”), Roto-Rooter Services Co. (“RRSC”) and VITAS are appropriate reporting units for testing goodwill impairment. We consider RRC and RRSC separate reporting units but one operating segment. This is appropriate as they each have their own set of general ledger accounts that can be analyzed at “one level below an operating segment” per the definition of a reporting unit in FASB guidance. We completed our qualitative analysis for impairment of goodwill and our indefinite-lived intangible assets as of October 1, 2019. Based on our assessment, we do not believe that it is more likely than not that our reporting units or indefinite-lived assets fair values are less than their carrying values. LONG-LIVED ASSETS If we believe a triggering event may have occurred that indicates a possible impairment of our long-lived assets, we perform an estimate and valuation of the future benefits of our long-lived assets (other than goodwill, the VITAS trade name and capitalized CON costs) based on key financial indicators. If the projected undiscounted cash flows of a major business unit indicate that properties and equipment or identifiable, definite-lived intangible assets have been impaired, a write-down to fair value is made. LEASE ACCOUNTING In February 2016, the FASB issued Accounting Standards Update “ASU No. 2016-02 Leases” which introduced a lessee model that brings most leases onto the balance sheet and updates lessor accounting to align with changes in the lessee model and the revenue recognition standard. This standard is also referred to as Accountings Standards Codification No.842 (“ASC 842”). We adopted ASC 842 effective January 1, 2019, using the optional transition method requiring leases existing at, or entered into January 1, 2019 to be recognized and measured. The transition method selected does not require adjustments to prior period amounts, which continue to be reflected in accordance with historical accounting. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard which, among other things, allowed us to carry forward the historical lease classification. 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 inpatient units (“IPUs”) and/or contract beds within hospitals. Roto-Rooter mainly has leased office space. Roto-Rooter purchases equipment and leases it to certain of its independent contractors. We analyzed these leases in accordance with ASC 842 and determined they are operating leases. As a result, Roto-Rooter will continue to capitalize the equipment underlying these leases, depreciate the equipment and recognize rental income. Adoption of the new standard resulted in right of use assets and lease liabilities of $ 93.1 million and $ 104.3 million, respectively, as January 1, 2019. In determining the liability, we used our incremental borrowing rate based on the information available at the time of adoption, since the rate implicit in the leases cannot be readily determined. At January 1, 2019, the weighted average rate was 3.47 %. The standard did not materially impact our consolidated net income or cash flows. We did not book a cumulative effect adjustment upon adoption of the standard. CLOUD COMPUTING On January 1, 2019, we early adopted ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract”. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. We adopted the ASU on a prospective basis. As of December 31, 2019, we have two cloud computing arrangements that are service contracts. Roto-Rooter is implementing a system to assist in technician dispatch and VITAS is implementing a new human resources system. We have capitalized approximately $ 5.7 million related to implementation of these projects which are included in prepaid assets in the accompanying balance sheets. There has been no amortization expense associated with the assets, as the software has not yet been placed in service. We anticipate amortizing the assets over the original term of the arrangements plus renewal options that are reasonably certain of being exercised. OTHER ASSETS Debt issuance costs are included in other assets. Issuance costs related to revolving credit agreements are amortized using the straight-line method, over the life of the agreement. All other issuance costs are amortized using the effective interest method over the life of the debt. There are no amounts included in other assets that individually exceed 5 % of total assets. SALES TAX The Roto-Rooter segment collects sales tax from customers when required by state and federal laws. We record the amount of sales tax collected net in the accompanying consolidated statements of income. OPERATING EXPENSES Cost of services provided and goods sold (excluding depreciation) includes salaries, wages and benefits of service providers and field personnel, material costs, medical supplies and equipment, pharmaceuticals, insurance costs, service vehicle costs and other expenses directly related to providing service revenues or generating sales. Selling, general and administrative expenses include salaries, wages, stock -based compensation expense and benefits of selling, marketing and administrative employees, advertising expenses, communications and branch telephone expenses, office rent and operating costs, legal, banking and professional fees and other administrative costs. The cost associated with VITAS sales personnel is included in cost of services provided and goods sold (excluding depreciation). ADVERTISING We expense the production costs of advertising the first time the advertising takes place. We pay for and expense the cost of internet advertising and placement on a “per click” basis. Similarly, the majority of our telephone directory listings are paid for and expensed on a “cost per call” basis. For those directories that are not on this billing basis, the cost of the directory is expensed when the directories are placed in circulation. Advertising expense for the year ended December 31, 2019, was $ 49.5 million (2018 – $ 47.0 million; 2017 - $ 40.9 million). OTHER CURRENT LIABILITIES There are no amounts included in other current liabilities that individually exceed 5 % of total current liabilities, with the exception of , the Medicare cap liability, which is discussed further in Footnote 2. OTHER LIABILITIES (NON-CURRENT) There are no amounts included in other liabilities that individually exceed 5 % of total liabilities. STOCK-BASED COMPENSATION PLANS Stock-based compensation cost is measured at the grant date, based on the fair value of the award and recognized as expense over the employee’s requisite service period on a straight-line basis. NON-EMPLOYEE STOCK COMPENSATION In June 2018, the FASB issued Accounting Standards Update “ASU No. 2018-07 – Compensation – Stock Compensation”. The ASU expands the scope of current guidance to include all share-based payment arrangements related to the acquisition of goods and services from both non-employees and employees. The guidance in the ASU is effective for the Company in all fiscal years beginning after December 15, 2018. Adoption of this standard had no material impact on our Consolidated Financial Statements. I NSURANCE ACCRUALS For our Roto-Rooter segment and Corporate Office, we initially self-insure for all casualty insurance claims (workers’ compensation, auto liability and general liability ). As a result, we closely monitor and frequently evaluate our historical claims experience to estimate the appropriate level of accrual for self-insured claims. Our third-party administrator (“TPA”) processes and reviews claims on a monthly basis. Currently, our exposure on any single claim is capped by stop-loss coverage at $ 750,000 . In developing our estimates, we accumulate historical claims data for the previous 10 years to calculate loss development factors (“LDF”) by insurance coverage type. LDFs are applied to known claims to estimate the ultimate potential liability for known and unknown claims for each open policy year. LDFs are updated annually. Because this methodology relies heavily on historical claims data, the key risk is whether the historical claims are an accurate predictor of future claims exposure. The risk also exists that certain claims have been incurred and not reported on a timely basis. To mitigate these risks, in conjunction with our TPA, we closely monitor claims to ensure timely accumulation of data and compare claims trends with the industry experience of our TPA. For the VITAS segment, we initially self-insure for workers’ compensation claims. Currently, VITAS’ exposure on any single claim is capped by stop- loss coverage at $ 1,000,000 . For VITAS’ self-insurance accruals for workers’ compensation, the valuation methods used are similar to those used internally for our other business units. We are also insured for other risks with respect to professional liability with a deductible of $ 750,000 . Our casualty insurance liabilities are recorded gross before any estimated recovery for amounts exceeding our stop loss limits. Estimated recoveries from insurance carriers are recorded as accounts receivable. Claims experience adjustments to our casualty and workers’ compensation accrual for the years ended December 31, 2019, 2018 and 2017, were net pretax credits of ($ 1,664,000 ), ($ 3,437,000 ), and ($ 1,800,000 ) respectively. TAXES ON INCOME On December 22, 2017, the President of the United States signed into law H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (previously known as “The Tax Cuts and Jobs Act”) or (the “Act”). The Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, U.S. generally accepted accounting principles requires resulting tax effects for the Act, to be recorded in the reporting period of enactment. The SEC issued SAB 118, which provides guidance on accounting for the Act’s impact. Under SAB 118, an entity would use something similar to the measurement period in a business combination, not to exceed one year. For matters that have not been completed, the Company would recognize provisional amounts to the extent that they are reasonably estimable, adjust them over time as more information becomes available, and disclose this information in its financial statements. Our accounting for all elements of the Tax Act is complete. The Company did not record any material changes to the provisional amounts previously recorded, net benefit recorded in 2017 of $ 8.3 million. The Company also determined new rules, such as the Global Intangible Low-Taxed Income (GILTI) and Base Erosion and Anti-Abuse Tax (BEAT), have no material impact to the financial statements. Historically, the Company has not provided for deferred taxes on undistributed earnings because such earnings are considered to be indefinitely reinvested outside of the U.S. The Company continues this assertion that foreign earnings are permanently reinvested under the Act. The Act provides for 100 percent bonus depreciation on personal tangible property expenditures starting September 27, 2017 through 2022. The bonus depreciation percentage is phased down from 100 percent beginning in 2023 through 2026. The Company expects to take full benefit of these bonus depreciation rules. The IRS and other tax authorities are still issuing guidance on the Act, through various regulations some of which are still proposed and not final. The Company will implement any changes related to finalized regulations and other guidance in the period issued. Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amount of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in our opinion, it is more likely than not that some portion or all of the deferred tax assets will not be realized due to insufficient taxable income within the carryback or carryforward period available under the tax laws. Deferred tax assets and liabilities are adjusted for the effects of changes in law and rates on the date of enactment. We are subject to income taxes in Canada, U.S. federal and most state jurisdictions. Judgement is required to determine our provision for income taxes. Our financial statements reflect expected future tax consequences of such uncertain positions assuming the taxing authorities’ full knowledge of the position and all relevant facts. CONTINGENCIES As discussed in Note 17, we are subject to various lawsuits and claims in the normal course of our business. In addition, we periodically receive communications from governmental and regulatory agencies concerning compliance with Medicare and Medicaid billing requirements at our VITAS subsidiary. We establish reserves for specific, uninsured liabilities in connection with regulatory and legal action that we deem to be probable and reasonably estimable. We record legal fees associated with legal and regulatory actions as the costs are incurred. We disclose material loss contingencies that are probable but not reasonably estimable and those that are at least reasonably possible. BUSINESS COMBINATIONS We account for acquired businesses using the acquisition method of accounting. All assets acquired and liabilities assumed are recorded at their respective fair values at the date of acquisition. The determination of fair value involves estimates and the use of valuation techniques when market value is not readily available. We use various techniques to determine fair value in accordance with accepted valuation models, primarily the income approach. The significant assumptions used in developing fair values include, but are not limited to, revenue growth rates, the amount and timing of future cash flows, discount rates, useful lives, royalty rates and future tax rates. The excess of purchase price over the fair value of assets and liabilities acquired is recorded as goodwill. See Footnote 7 for discussion of recent acquisitions. ESTIMATES The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Disclosures of after-tax expenses and adjustments are based on estimates of the effective income tax rates for the applicable segments. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update “ASU No. 2014-09 – Revenue from Contracts with Customers.” The standard and subsequent amendments are theoretically intended to develop a common revenue standard for removing inconsistencies and weaknesses, improve comparability, provide for more useful information to users through improved disclosure requirements and simplify the preparation of financial statements. The standard is also referred to as Accounting Standards Codification No. 606 (“ASC 606”). We adopted ASC 606 effective January 1, 2018. The required disclosures of ASC 606 and impact of adoption are discussed below for each of our operating subsidiaries. VITAS Service revenue for VITAS is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing patient care. These amounts are due from third-party payors, primarily commercial health insurers and government programs (Medicare and Medicaid), and includes variable consideration for revenue adjustments due to settlements of audits and reviews, as well as certain hospice-specific revenue capitations. Amounts are generally billed monthly or subsequent to patient discharge. Subsequent changes in the transaction price initially recognized are not significant. Hospice services are provided on a daily basis and the type of service provided is determined based on a physician’s determination of each patient’s specific needs on that given day. Reimbursement rates for hospice services are on a per diem basis regardless of the type of service provided or the payor. Reimbursement rates from government programs are established by the appropriate governmental agency and are standard across all hospice providers. Reimbursement rates from health insurers are negotiated with each payor and generally structured to closely mirror the Medicare reimbursement model. The types of hospice services provided and associated reimbursement model for each are as follows: Routine Home Care occurs when a patient receives hospice care in their home, including a nursing home setting. The routine home care rate is paid for each day that a patient is in a hospice program and is not receiving one of the other categories of hospice care. For Medicare patients, the routine home care rate reflects a two-tiered rate, with a higher rate for the first 60 days of a hospice patient’s care and a lower rate for days 61 and after. In addition, there is a Service Intensity Add-on payment which covers direct home care visits conducted by a registered nurse or social worker in the last seven day s of a hospice patient’s life, reimbursed up to 4 hours per day in 15 minute increments at the continuous home care rate. General Inpatient Care occurs when a patient requires services in a controlled setting for a short period of time for pain control or symptom management which cannot be managed in other settings. General inpatient care services must be provided in a Medicare or Medicaid certified hospital or long-term care facility or at a freestanding inpatient hospice facility with the required registered nurse staffing. Continuous Home Care is provided to patients while at home, including a nursing home setting, during periods of crisis when intensive monitoring and care, primarily nursing care, is required in order to achieve palliation or management of acute medical symptoms. Continuous home care requires a minimum of 8 hours of care within a 24 hour day, which begins at midnight. The care must be predominantly nursing care provided by either a registered nurse or licensed nurse practitioner. While the published Medicare continuous home care rates are daily rates, Medicare pays for continuous home care in 15 minute increments. This 15 minute rate is calculated by dividing the daily rate by 96. Respite Care permits a hospice patient to receive services on an inpatient basis for a short period of time in order to provide relief for the patient’s family or other caregivers from the demands of caring for the patient. A hospice can receive payment for respite care for a given patient for up to five consecutive days at a time, after which respite care is reimbursed at the routine home care rate. Each level of care represents a separate promise under the contract of care and is provided independently for each patient contingent upon the patient’s specific medical needs as determined by a physician. However, the clinical criteria used to determine a patient’s level of care is consistent across all patients, given that, each patient is subject to the same payor rules and regulations. As a result, we have concluded that each level of care is capable of being distinct and is distinct in the context of the contract. Furthermore, we have determined that each level of care represents a stand ready service provided as a series of either days or hours of patient care. We believe that the performance obligations for each level of care meet criteria to be satisfied over time. VITAS recognizes revenue based on the service output. VITAS believes this to be the most faithful depiction of the transfer of control of services as the patient simultaneously receives and consumes the benefits provided by our performance. Revenue is recognized on a daily or hourly basis for each patient in accordance with the reimbursement model for each type of service. VITAS’ performance obligations relate to contracts with an expected duration of less than one year. Therefore, VITAS has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The unsatisfied or partially satisfied performance obligations referred to above relate to bereavement services provided to patients’ families for at least 12 months after discharge. Care is provided to patients regardless of their ability to pay. Patients who meet our criteria for charity care are provided care without charge. There is no revenue or associated accounts receivable in the accompanying consolidated financial statements related to charity care. The cost of providing charity care during the years ended December 31, 2019, 2018 and 2017, was $ 9.0 million, $ 8.2 million and $ 7.7 million, respectively and is included in cost of services provided and goods sold. The cost of charity care is calculated by taking the ratio of charity care days to total days of care and multiplying by total cost of care. Generally, patients who are covered by third-party payors are responsible for related deductibles and coinsurance which vary in amount. VITAS also provides service to patients without a reimbursement source and may offer those patients discounts from standard charges. VITAS estimates the transaction price for patients with deductibles and coinsurance, along with those uninsured patients, based on historical experience and current conditions. The estimate of any contractual adjustments, discounts or implicit price concessions reduces the amount of revenue initially recognized. Subsequent changes to the estimate of the transaction price are recorded as adjustments to patient service revenue in the period of change. Subsequent changes that are determined to be the result of an adverse change in the patients’ ability to pay (i.e. change in credit risk) are recorded as bad debt expense. VITAS has no material adjustments related to subsequent changes in the estimate of the transaction price or subsequent changes as the result of an adverse change in the patient’s ability to pay for any period reported. Laws and regulations concerning government programs, including Medicare and Medicaid, are complex and subject to varying interpretation. Compliance with such laws and regulations may be subject to future government review and interpretation. Additionally, the contracts we have with commercial health insurance payors provide for retroactive audit and review of claims. Settlement with third party payors for retroactive adjustments due to audits, reviews or investigations are considered variable consideration and are included in the determination of the estimated transaction price for providing patient care. The variable consideration is estimated based on the terms of the payment agreement, existing correspondence from the payor and our historical settlement activity. These estimates are adjusted in future periods, as new information becomes available. We are subject to certain limitations on Medicare payments for services which are considered variable consideration, as follows: Inpatient Cap . If the number of inpatient care days any hospice program provides to Medicare beneficiaries exceeds 20% of the total days of hospice care such program provided to all Medicare patients for an annual period beginning September 28, the days in excess of the 20% figure may be reimbursed only at the routine homecare rate. None of VITAS’ hospice programs exceeded the payment limits on inpatient services during the years ended December 31, 2019, 2018 and 2017. Medicare Cap . We are also subject to a Medicare annual per-beneficiary cap (“Medicare cap”). Compliance with the Medicare cap is measured in one of two ways based on a provider election. The “streamlined” method compares total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by that Medicare provider number with the product of the per-beneficiary cap amount and the number of Medicare beneficiaries electing hospice care for the first time from that hospice program or programs from September 28 through September 27 of the following year. At December 31, 2019, all our programs except one are using the “streamlined” method. The “proportional” method compares the total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by the Medicare provider number between September 28 and September 27 of the following year with the product of the per beneficiary cap amount and a pro-rated number of Medicare beneficiaries receiving hospice services from that program during the same period. The pro-rated number of Medicare beneficiaries is calculated based on the ratio of days the beneficiary received hospice services during the measurement period to the total number of days the beneficiary received hospice services. We actively monitor each of our hospice programs, by provider number, as to their specific admission, discharge rate and median length of stay data in an attempt to determine whether revenues are likely to exceed the annual per-beneficiary Medicare cap. Should we determine that revenues for a program are likely to exceed the Medicare cap based on projected trends, we attempt to institute corrective actions, which include changes to the patient mix and increased patient admissions. However, should we project our corrective action will not prevent that program from exceeding its Medicare cap, we estimate revenue recognized during the government fiscal year that will require repayment to the Federal government under the Medicare cap and record an adjustment to revenue of an amount equal to a ratable portion of our best estimate for the year. In 2013, the U.S. government implemented automatic budget reductions of 2.0 % for all government payees, including hospice benefits paid under the Medicare program. In 2015, CMS determined that the Medicare cap should be calculated “as if” sequestration did not occur. As a result of this decision, VITAS has received notification from our third-party intermediary that an additional $ 7.6 million is owed for Medicare cap in three programs arising during the 2013 through 2019 measurement periods. The amounts are automatically deducted from our semi-monthly periodic interim payments (“PIP”). We do not believe that CMS is authorized under the sequestration authority or the statutory methodology for establishing the Medicare cap to the amounts they have withheld and intend to withhold under their current “as if” methodology. We have appealed CMS’s methodology change. During the years ended December 31, 2019, we recorded $ 12.4 million in Medicare cap revenue reduction related to four programs’ projected 2020 measurement period liability and four programs’ 2019 measurement period liability. During the years ended December 31, 2018, we recorded $ 4.1 million in Medicare cap revenue reduction related to two programs’ 2018 measurement period liability and two programs’ 2019 measurement period liability. During the year ended December 31, 2017, we recorded $ 2.4 million in Medicare cap revenue reduction related to two programs’ 2018 measurement period liability and $ 247,000 for two programs’ cap liability for prior periods. At December 31, 2019 and 2018, the Medicare cap liability included in other current liabilities on the accompanying balance sheets was $ 16.3 million and $ 6.4 million, respectively. For VITAS’ patients in the nursing home setting in which Medicaid pays the nursing home room and board, VITAS serves as a pass-through between Medicaid and the nursing home. We are responsible for paying the nursing home for that patient’s room and board. Medicaid reimburses us for 95 % of the amount we have paid. This results in a 5 % net expense for VITAS related to nursing home room and board. This transaction creates a performance obligation in that VITAS is facilitating room and board being delivered to our patient. As a result, the 5 % net expense is recognized as a contra-revenue account under ASC 606 in the accompanying financial statements. The composition of patient care service revenue by payor and level of care for the year ended December 31, 2019 is as follows (in thousands): Medicare Medicaid Commercial Total Routine home care $ 1,003,308 $ 48,420 $ 24,297 $ 1,076,025 Continuous care 121,019 6,712 5,742 133,473 Inpatient care 84,752 9,102 6,066 99,920 $ 1,209,079 $ 64,234 $ 36,105 $ 1,309,418 All other revenue - self-pay, respite care, etc. 10,433 Subtotal $ 1,319,851 Medicare cap adjustment ( 12,415 ) Implicit price concessions ( 14,893 ) Room and board, net ( 11,359 ) Net revenue $ 1,281,184 The composition of patient care service revenue by payor and level of care for the year ended December 31, 2018 is as follows (in thousands): Medicare Medicaid Commercial Total Routine home care $ 939,951 $ 47,609 $ 22,958 $ 1,010,518 Continuous care 110,596 6,126 5,776 122,498 Inpatient care 69,354 8,156 5,167 82,677 $ 1,119,901 $ 61,891 $ 33,901 $ 1,215,693 All other revenue - self-pay, respite care, etc. 7,831 Subtotal $ 1,223,524 Medicare cap adjustment ( 4,123 ) Implicit price concessions ( 11,785 ) Room and board, net ( 10,054 ) Net revenue $ 1,197,562 Roto-Rooter Roto-Rooter provides plumbing, drain cleaning, water restoration and other related services to both residential and commercial customers primarily in the United States. Services are provided through a network of company-owned branches, independent contractors and franchisees. Service revenue for Roto-Rooter is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing services. Roto-Rooter owns and operates branches focusing mainly on large population centers in the United States. Roto-Rooter’s primary lines of business in company-owned branches consist of plumbing, sewer and drain cleaning, excavation and water restoration. For purposes of ASC 606 analysis, plumbing, sewer and drain cleaning, and excavation have been combined into one portfolio and are referred to as “short-term core services”. Water restoration is analyzed as a separate portfolio. The following describes the key characteristics of these portfolios: Short-term Core Services are plumbing, drain and sewer cleaning and excavation services. These services are provided to both commercial and residential customers. The duration of services provided in this category range from a few hours to a few days. There are no significant warranty costs or on-going obligations to the customer once a service has been completed. For residential customers, payment is usually received at the time of job completion before the Roto-Rooter technician leaves the residence. Commercial customers may be granted credit subject to internally designated authority limits and credit check guidelines. If credit is granted, payment terms are generally 30 days or less. Each job in this category is a distinct service with a distinct performance obligation to the customer. Revenue is recognized at the completion of each job. Variable consideration consists of pre-invoice discounts and post-invoice discounts. Pre-invoice discounts are given in the form of coupons or price concessions. Post-invoice discounts consist of credit memos generally granted to resolve customer service issues. Variable consideration is estimated based on historical activity and recorded at the time service is completed. Water Restoration Services involve the remediation of water and humidity after a flood. These services are provided to both commercial and residential customers. The duration of services provided in this category generally ranges from 3 to 5 days. There are no significant warranties or on-going obligations to the customer once service has been completed. The majority of these services are paid in part by the customer’s insurance company. Variable consideration relates primarily to allowances taken by insurance companies upon payment. Variable consideration is estimated based on historical activity and recorded at the time service is completed. For both short-term core services and water restoration services, Roto-Rooter satisfies its performance obligation at a point in time. The services provided generally involve fixing plumbing, drainage or flood-related issues at the customer’s property. At the time service is complete, the customer acknowledges its obligation to pay for service and its satisfaction with the service performed. This provides evidence that the customer has accepted the service and Roto-Rooter is now entitled to payment. As such, Roto-Rooter recognizes revenue for these services upon completion of the job and receipt of customer acknowledgement. Roto-Rooter’s performance obligations for short-term core services and water restoration services relate to contracts with an expected duration of less than a year. Therefore, Roto-Rooter has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. Roto-Rooter does not have significant unsatisfied or partially unsatisfied performance obligations at the time of initial revenue recognition for short-term core or water restoration services. Roto-Rooter owns the rights to certain territories and contracts with independent third-parties to operate the territory under Roto-Rooter’s registered trademarks. The contract is for a specified term but cancellable by either party without penalty with 90 days advance notice. Under the terms of these arrangements, Roto-Rooter provides certain back office support and advertising along with a limited license to use Roto-Rooter’s registered trademarks. The independent contractor is responsible for all day-to-day management of the business including staffing decisions and pricing of services provided. All performance obligations of Roto-Rooter cease at the termination of the arrangement. Independent contractors pay Roto-Rooter a standard fee calculated as a percentage of their cash collection from weekly sales. The primary value for the independent contractors under these arrangements is the right to use Roto-Rooter’s registered trademarks. Roto-Rooter recognizes revenue from independent contractors over-time (weekly) as the independent contractor’s labor sales are completed and payment from customers are received. Payment from independent contractors is also received on a weekly basis. The use of Roto-Rooter’s registered trademarks and advertising provides immediate value to the independent contractor as a result of Roto-Rooter’s nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements. Roto-Rooter has licensed the rights to operate under Roto-Rooter’s registered trademarks in other territories to franchisees. The contract is for a 10 year term but cancellable by Roto-Rooter for cause with 60 day advance notice without penalty. The franchisee may cancel the contract for any reason with 60 days advance notice without penalty. Under the terms of the contract, Roto-Rooter provides national advertising and consultation on various aspects of operating a Roto-Rooter business along with the right to use Roto-Rooter’s registered trademarks. The franchisee is responsible for all day- to-day management of the business including staffing decisions, pricing of services provided and local advertising spend and placement. All performance obligations of Roto-Rooter cease at the termination of the arrangement. Franchisees pay Roto-Rooter a standard monthly fee based on the population within the franchise territory. The standard fee is revised on a yearly basis based on changes in the Consumer Price Index for All Urban Consumers. The primary value for the franchisees under this arrangement is the right to use Roto-Rooter’s registered trademarks for plumbing, drain care cleaning and water restoration services. Roto-Rooter recognizes revenue from franchisees over-time (monthly). Payment from franchisees is also received on a monthly basis. The use of Roto-Rooter’s registered trademarks and advertising provides immediate value to the franchisees as a result of Roto-Rooter’s nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements. The composition of disaggregated revenue for the years ended December 31, 2019 and 2018 is as follows (in thousands): 2019 2018 Short-term core service jobs $ 482,625 $ 425,845 Water restoration 115,949 109,484 Contractor revenue 58,086 50,169 Franchise fees 6,152 6,382 All other 12,279 11,958 Subtotal $ 675,091 $ 603,838 Implicit price concessions and credit memos ( 17,720 ) ( 18,752 ) Net revenue $ 657,371 $ 585,086 Initial Adoption of ASC 606 The Company utilized the modified retrospective method of adoption for all contracts. Except for the changes discussed below, the Company has consistently applied the accounting policies to all periods presented in the consolidated financial statements. Sales tax collected from customers at Roto-Rooter is excluded from revenue under ASC 606 and prior revenue standards. For VITAS, expenses related to payor audits and reviews, as well as variable consideration estimated for patient deductibles and coinsurance, have been historically estimated as revenue was recognized and classified as bad debt expense, included in the consolidated statements of income as selling, general and administrative expense. Upon adoption of ASC 606, these expenses are classified as contra-revenue. There is no change in the timing of recognition related to the variable consideration. The amount of these expenses during the years ended December 31, 2019 and 2018 were $ 14.9 million and $ 11.8 million, respectively. Also for VITAS, the 5% net expense related to Medicaid room and board has been historically recorded on a net basis in cost of services provided in the consolidated income statements. Upon adoption of ASC 606, due to the change in the residual value method required by ASC 606, the expense will be classified as a contra-revenue. The amount of the change in the classification for these expenses during the years ended December 31, 2019 and 2018 was $ 11.4 million and $ 10.1 million, respectively. There has been no change in the evaluation of Medicaid room and board related to net versus gross presentation. Related to Roto-Rooter, expenses related to post-invoice variable consideration in our short-term core portfolio, and adjustments made subsequent to initial estimates related to allowances taken by insurance companies for water restoration, have been classified as a contra-revenue account in the statements of income. These amounts were previously classified as bad debt expense in SG&A. The amount of the change in classification for these expenses during the year ended December 31, 2019 and 2018 was $ 6.2 million and $ 6.9 million. The initial estimate related to allowances taken by insurance companies for water restoration services has historically been classified as contra-revenue and did not change as a result of the transition. There was no material impact on the consolidated balance sheets related to the initial adoption. There is no impact to consolidated net income as a result of the initial adoption. As a result of the change in classification in the statements of income, amounts previously included in the provision for uncollectible accounts in the statements of cash flow have been included in the decrease/(increase) in accounts receivable line item in 2019 and 2018. The total impact of the change from prior revenue guidance (ASC 605) to guidance adopted on January 1, 2018 related to classification in the statements of income is as follows (in thousands): Impact for the year ended December 31, 2018 ASC 605 Adjustment ASC 606 Service revenue and sales $ 1,811,408 $ ( 28,760 ) $ 1,782,648 Cost of services provided and goods sold 1,238,698 ( 10,054 ) 1,228,644 Selling, general and administrative expenses 288,915 ( 18,706 ) 270,209 |
Long-Term Debt And Lines Of Cre
Long-Term Debt And Lines Of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt And Lines Of Credit [Abstract] | |
Long-Term Debt And Lines Of Credit | 3. Long-Term Debt and Lines of Credit On June 20, 2018, we replaced our existing credit agreement with the Fourth Amended and Restated Credit Agreement (“2018 Credit Agreement”). Terms of the 2018 Credit Agreement consist of a five year , $ 450 million revolving credit facility and a $ 150 million expansion feature, which may consist of term loans or additional revolving commitments. The 2018 Credit Agreement has a floating interest rate that is generally LIBOR plus a tiered additional rate which varies based on our current leverage ratio. For December 31, 2019 and 2018, respectively, the interest rate is LIBOR plus 100 basis points. The 2018 Credit Agreement includes transition provisions in the instance LIBOR is no longer published or used as an industry-accepted rate. Debt issuance costs associated with the prior credit agreement were not written off as the lenders and their relative percentage participation in the facility did not change. With respect to the 2018 Credit Agreement, deferred financing costs were $ 1.0 million. The debt outstanding at December 31, 2019 and 2018 consists of the following (in thousands): December 31, 2019 2018 Revolver $ 90,000 $ 89,200 Term loan - - Total 90,000 89,200 Current portion of term loan - - Long-term debt $ 90,000 $ 89,200 Capitalized interest was not material for any of the periods shown. Summarized below are the total amounts of interest paid during the years ended December 31 (in thousands): 2019 $ 4,125 2018 4,178 2017 3,626 The 2018 Credit Agreement contains the following quarterly financial covenants effective as of December 31, 2019: Chemed Description Requirement December 31, 2019 Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA) < 3.50 to 1.00 0.37 to 1.00 Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges) > 1.50 to 1.00 4.34 to 1.00 We are in compliance with all debt covenants as of December 31, 2019. We have issued $ 37.9 million in standby letters of credit as of December 31, 2019 for insurance purposes. Issued letters of credit reduce our available credit under the 2018 Credit Agreement. As of December 31, 2019, we have approximately $ 322.1 million of unused lines of credit available and eligible to be drawn down under our revolving credit facility. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 4. Stock-Based Compensation Plans We have three stock incentive plans under which a total of 5.1 million shares were able to be issued to key employees and directors through a grant of stock options, stock awards and/or performance stock units (“PSUs”). The Compensation/Incentive Committee (“CIC”) of the Board of Directors administers these plans. We grant stock options, stock awards and PSUs to our officers, other key employees and directors to better align their long-term interests with those of our shareholders. We grant stock options at an exercise price equal to the market price of our stock on the date of grant. Options vest ratably annually over a three year period. Those granted after 2014 have a contractual life of 5 years; those granted prior to 2014 have a contractual life of 10 years. Unrestricted stock awards generally are granted to our non-employee directors annually at the time of our annual meeting. PSUs are contingent upon achievement of multi-year earnings per share (“EPS”) targets or total shareholder return (“TSR”) targets. Upon achievement of targets, PSUs are converted to unrestricted shares of stock. We recognize the cost of stock options, stock awards and PSUs on a straight-line basis over the service life of the award, generally the vesting period. We include the cost of all stock-based compensation in selling, general and administrative expense. In May 2019, the CIC granted 2,313 unrestricted shares of stock to the Company’s outside directors. PERFORMANCE AWARDS The CIC determines a targeted number of PSUs to be granted to each participant. A participant can ultimately receive up to 200 % of the targeted PSUs based upon exceeding the respective EPS and TSR target. In February 2017, 2018 and 2019, the CIC granted PSUs contingent upon the achievement of certain TSR targets as compared to the TSR of a group of peer companies for the three year measurement period, at which date the awards may vest. We utilize a Monte Carlo simulation approach in a risk-neutral framework with inputs including historical volatility and the risk-free rate of interest to value these TSR awards. We amortize the total estimated cost over the service period of the award. In February 2017, 2018 and 2019, the CIC granted PSUs contingent on the achievement of certain EPS targets over the three year measurement period. At the end of each reporting period , we estimate the number of shares of stock we believe will ultimately vest and record that expense over the service period of the award. Comparative data for the PSUs include: 2019 Awards 2018 Awards 2017 Awards TSR Awards Shares of stock granted - target 7,029 7,523 7,304 Per-share fair value $ 434.51 $ 341.20 $ 226.95 Volatility 21.4 % 22.9 % 21.8 % Risk-free interest rate 2.45 % 2.34 % 1.44 % EPS Awards Shares of stock granted - target 7,029 7,523 7,304 Per-share fair value $ 322.40 $ 256.29 $ 172.60 Common Assumptions Service period (years) 2.9 2.9 2.9 Three-year measurement period ends December 31, 2021 2020 2019 The following table summarizes total stock option, stock award and PSU activity during 2019: Stock Options Stock Awards Performance Units (PSUs) Weighted Weighted Average Aggregate Average Weighted Remaining Intrinsic Grant-Date Number of Average Number of Exercise Contractual Value Number of Per-Share Target Grant-Date Options Price Life (Years) (thousands) Awards Fair Value Units Price Outstanding at January 1, 2019 1,395,034 $ 181.82 - $ - 48,160 $ 207.17 Granted 287,010 413.19 2,313 331.69 27,688 253.44 Exercised/Vested ( 464,661 ) 139.78 ( 2,313 ) 331.69 ( 32,136 ) 136.48 Canceled/ Forfeited ( 11,435 ) 215.86 - - ( 734 ) 269.08 Outstanding at December 31, 2019 1,205,948 $ 252.77 3.3 $ 225,226 - $ - 42,978 $ 288.78 Vested and expected to vest at December 31, 2019 1,205,948 $ 252.77 3.3 $ 225,226 - *$ - 82,603 *$ 290.11 Exercisable at December 31, 2019 654,424 172.20 2.6 174,949 n.a. n.a. n.a. n.a. * Amount includes 27,761 share units which vested and were converted to shares of stock and distributed in the first quarter of 2020. We estimate the fair value of stock options using the Black-Scholes valuation model. We determine expected term, volatility, and dividend yield and forfeiture rate based on our historical experience. We believe that historical experience is the best indicator of these factors. Comparative data for stock options, stock awards and PSUs include (in thousands, except per-share amounts): Years Ended December 31, 2019 2018 2017 Total compensation expense of stock-based compensation plans charged against income $ 21,338 $ 19,229 $ 16,256 Total income tax benefit recognized in income for stock based compensation expense charged against income 5,373 4,788 5,690 Total intrinsic value of stock options exercised 106,793 102,144 50,192 Total intrinsic value of stock awards vested during the period 767 4,003 6,983 Per-share weighted average grant-date fair value of stock awards granted 331.69 333.75 203.52 The assumptions we used to value stock option grants are as follows: 2019 2018 2017 Stock price on date of issuance $ 413.19 $ 306.70 $ 231.91 Grant date fair value per share $ 78.06 $ 67.16 $ 46.27 Number of options granted 287,010 246,350 330,550 Expected term (years) 4.0 4.0 4.0 Risk free rate of return 1.65 % 2.99 % 1.86 Volatility 21.25 % 22.42 % 22.80 Dividend yield 0.3 % 0.4 % 0.5 Forfeiture rate - - - Other data for stock options, stock awards and PSUs for 2018 include (dollar amounts in thousands): Stock Stock Options Awards PSUs Total unrecognized compensation at the end of the year $ 34,640 $ - $ 7,475 Weighted average period over which unrecognized compensation to be recognized (years) 2.3 - 1.7 Actual income tax benefit realized $ 25,193 $ 181 $ 2,489 Aggregate intrinsic value vested and expected to vest $ 225,226 $ - $ 36,306 EMPLOYEE STOCK PURCHASE PLAN (“ESPP”) The ESPP allows eligible participants to purchase shares of stock through payroll deductions at current market value. We pay administrative and broker fees associated with the ESPP. Shares of stock purchased for the ESPP are purchased on the open market and credited directly to participants’ accounts. In accordance with the FASB’s guidance, the ESPP is non-compensatory. |
Segments And Nature Of The Busi
Segments And Nature Of The Business | 12 Months Ended |
Dec. 31, 2019 | |
Segments And Nature Of The Business [Abstract] | |
Segments And Nature Of The Business | 5. Segments and Nature of the Business Our segments include the VITAS segment and the Roto-Rooter segment. Relative contributions of each segment to service revenues and sales were were 66 % and 34 % in 2019, 67 % and 33 % in 2018 and 69 % and 31 % in 2017. 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 Footnote 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. Segment data are set forth below (in thousands): For the Years Ended December 31, 2019 2018 2017 After-tax Segment Earnings/(Loss) VITAS $ 155,822 $ 138,846 $ 57,645 Roto-Rooter 103,710 98,711 73,299 Total 259,532 237,557 130,944 Corporate ( 39,609 ) ( 32,013 ) ( 32,767 ) Net income $ 219,923 $ 205,544 $ 98,177 Interest Income VITAS $ 18,515 $ 13,412 $ 12,044 Roto-Rooter 8,285 7,000 5,635 Total 26,800 20,412 17,679 Intercompany eliminations ( 26,287 ) ( 19,741 ) ( 17,252 ) Total interest income $ 513 $ 671 $ 427 Interest Expense VITAS $ 169 $ 175 $ 188 Roto-Rooter 345 319 323 Total 514 494 511 Corporate 4,021 4,496 3,761 Total interest expense $ 4,535 $ 4,990 $ 4,272 Income Tax Provision VITAS $ 48,711 $ 40,847 $ 16,436 Roto-Rooter 30,276 28,850 32,782 Total 78,987 69,697 49,218 Corporate ( 37,301 ) ( 35,641 ) ( 30,478 ) Total income tax provision $ 41,686 $ 34,056 $ 18,740 Identifiable Assets VITAS $ 663,455 $ 553,949 $ 545,304 Roto-Rooter 507,480 351,030 294,663 Total 1,170,935 904,979 839,967 Corporate 97,382 70,550 80,059 Total identifiable assets $ 1,268,317 $ 975,529 $ 920,026 Additions to Long-Lived Assets VITAS $ 25,530 $ 36,969 $ 23,469 Roto-Rooter 162,494 68,786 45,386 Total 188,024 105,755 68,855 Corporate 1,000 128 483 Total additions to long-lived assets $ 189,024 $ 105,883 $ 69,338 Depreciation and Amortization VITAS $ 20,055 $ 19,700 $ 18,630 Roto-Rooter 24,994 19,016 16,790 Total 45,049 38,716 35,420 Corporate 156 147 205 Total depreciation and amortization $ 45,205 $ 38,863 $ 35,625 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Intangible Assets | 6. Intangible Assets Amortization of definite-lived intangible assets for the years ended December 31, 2019, 2018, and 2017, was $ 4.3 million, $ 399,000 and $ 137,000 respectively. The following is a schedule by year of projected amortization expense for definite-lived intangible assets (in thousands): 2020 $ 9,907 2021 9,904 2022 9,883 2023 9,828 2024 9,779 Thereafter 21,329 The balance in identifiable intangible assets comprises the following (in thousands): Gross Accumulated Net Book Asset Amortization Value December 31, 2019 Referral networks $ 21,850 $ ( 21,223 ) $ 627 Covenants not to compete 10,036 ( 9,478 ) 558 Customer lists 4,746 ( 1,362 ) 3,384 Reacquired franchise rights 71,618 ( 5,557 ) 66,061 Subtotal - definite-lived intangibles 108,250 ( 37,620 ) 70,630 VITAS trade name 51,300 - 51,300 Roto-Rooter trade name 150 - 150 Operating licenses 4,290 - 4,290 Total $ 163,990 $ ( 37,620 ) $ 126,370 December 31, 2018 Referral networks $ 21,850 $ ( 21,152 ) $ 698 Covenants not to compete 9,796 ( 9,367 ) 429 Customer lists 2,025 ( 1,235 ) 790 Reacquired franchise rights 12,447 ( 1,529 ) 10,918 Subtotal - definite-lived intangibles 46,118 ( 33,283 ) 12,835 VITAS trade name 51,300 - 51,300 Roto-Rooter trade name 150 - 150 Operating licenses 3,968 - 3,968 Total $ 101,536 $ ( 33,283 ) $ 68,253 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions [Abstract] | |
Acquisitions | 7. Acquisitions On August 2, 2019, we entered into an Asset Purchase Agreement (the “Agreement”) to purchase substantially all of the assets of HSW RR, Inc., a Delaware corporation (“HSW”) and certain related assets of its affiliates, for $ 120.0 million, subject to a working capital adjustment that resulted in an additional $ 1.4 million payment to HSW. HSW owned and operated fourteen Roto-Rooter franchises mainly in the southwestern section of the United States, including Los Angeles, Dallas and Phoenix. Included in the assets purchased were the assets of Western Drain Supply, Inc., a plumbing supply company. The purchase was made using a combination of cash on-hand and borrowings under Chemed’s existing $ 450 million revolving credit facility. On September 16, 2019, we completed the acquisition. On July 1, 2019 , we completed the acquisition of a Roto-Rooter franchise and the related assets in Oakland, CA for $ 18.0 million in cash. The acquisitions were made as a continuation of Roto-Rooter’s strategy to re-acquire franchises in large markets in the United States. The allocation for the two acquisitions completed in 2019 is as follows (in thousands): HSW Oakland Total Goodwill $ 56,191 $ 10,535 $ 66,726 Reacquired franchise rights 52,980 6,190 59,170 Property, plant, and equipment 5,998 675 6,673 Working capital 3,760 22 3,782 Customer relationships 2,220 500 2,720 Non-compete agreements 140 100 240 Other assets and liabilities - net 128 23 151 $ 121,417 $ 18,045 $ 139,462 Included above is $ 1.4 million related to the HSW acquisition excess working capital. The amount was paid subsequent to year end. Reacquired franchise rights, included in identifiable intangibles on the Consolidated Balance Sheets, are amortized over the period remaining in each individual franchise agreement. The average amortization period for reacquired franchise rights for the acquisitions made in 2019 is 7.4 years. Revenue and net income for the two acquisitions completed in 2019 are as follows (in thousands): HSW Oakland Total Service revenues and sales $ 20,141 $ 5,150 $ 25,291 Net income/(loss) ( 2,777 ) 231 ( 2,546 ) Included in net income for the two acquisitions is $ 3.4 million of one-time acquisition expense. The franchise fee revenue, the valuation of reacquired franchise rights and amortization for the acquired franchises are as follows: Annualized Valuation Amortization of 2018 Franchise of Reacquired Reacquired Revenue Franchise Rights Franchise Rights HSW $ 1,782 $ 52,980 $ 7,258 Oakland 95 6,190 825 Subtotal 1,877 $ 59,170 $ 8,083 All other franchise territories 4,505 $ 6,382 As a result of the acquisitions, 2018 is the last full-year of franchise revenue received from HSW and Oakland. Total franchise revenue in 2019 was $ 6.1 million. Amortization of reacquired franchise agreements is $ 4.0 million for 2019. Customer relationships, included in identifiable intangibles on the Consolidated Balance Sheets, are amortized over an average amortization period of 20.4 years. Non-compete agreements are amortized over the period of the agreement. The average amortization period for non-compete agreements for the transactions made in 2019 is 4.0 years. Goodwill is assessed for impairment on a yearly basis as of October 1. The primary factor that contributed to the purchase price resulting in the recognition of goodwill is operational efficiencies expected as a result of consolidating stand- alone franchises and Roto-Rooter’s network of nationwide branches. All goodwill recognized is deductible for tax purposes. During 2018, we completed four business combinations of former franchisees within the Roto-Rooter segment for $ 42.2 million in cash to increase our market penetration. The VITAS segment completed one business combination in Florida for $ 11.0 million to increase our market penetration. The pro forma revenue and earnings of the Company, as if all acquisitions made in fiscal 2018 and 2019 were completed on January 1, 2018, are as follows (in thousands, except per share data): For the Years Ended December 31, 2019 2018 Service revenues and sales $ 1,995,688 $ 1,900,218 Net income $ 228,939 $ 224,851 Earnings per share $ 14.34 $ 14.00 Diluted earnings per share $ 13.85 $ 13.38 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 8. Discontinued Operations At December 31, 2019 and 2018, the accrual for our estimated liability for potential environmental cleanup and related costs arising from the 1991 sale of DuBois amounted to $ 1.7 million. Of the 2019 balance, $ 826,000 is included in other current liabilities and $ 901,000 is included in other liabilities (long-term). The estimated amounts and timing of payments of these liabilities follows (in thousands): 2020 $ 826 2021 300 Thereafter 601 $ 1,727 We are contingently liable for additional DuBois-related environmental cleanup and related costs up to a maximum of $ 14.9 million. On the basis of a continuing evaluation of the potential liability, we believe it is not probable this additional liability will be paid. Accordingly, no provision for this contingent liability has been recorded. The potential liability is not insured, and the recorded liability does not assume the recovery of insurance proceeds. Also, the environmental liability has not been discounted because it is not possible to reliably project the timing of payments. We believe that any adjustments to our recorded liability will not materially adversely affect our financial position, results of operations or cash flows. |
Cash Overdrafts And Cash Equiva
Cash Overdrafts And Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash Overdrafts And Cash Equivalents [Abstract] | |
Cash Overdrafts And Cash Equivalents | 9. Cash Overdrafts and Cash Equivalents Included in the accompanying Consolidated Balance Sheets are $ 1.8 million, $ 3.2 million, and $ 2.7 million of capitalized property and equipment which were not paid for as of December 31, 2019, December 31, 2018 and December 31, 2017, respectively. These amounts have been excluded from capital expenditures in the accompanying Consolidated Statements of Cash Flow. There are no material non-cash amounts included in interest expense for any period presented. Included in accounts payable are cash overdrafts of $ 9.8 million and $ 13.8 million as of December 31, 2019 and 2018, respectively. From time to time throughout the year, we invest excess cash in money market funds directly with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our overnight funds. The amount invested was less than $ 100,000 for each balance sheet date presented. |
Other Income--Net
Other Income--Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income--Net [Abstract] | |
Other Income--Net | 10. Other Income -- Net Other income -- net from continuing operations comprises the following (in thousands): For the Years Ended December 31, 2019 2018 2017 Market value gains related to deferred compensation trusts $ 8,254 $ 287 $ 8,430 Interest income 513 671 427 Other--net ( 3 ) - ( 703 ) Total other income $ 8,764 $ 958 $ 8,154 The market value gain relates to gains on the assets in the deferred compensation trust. There is an offsetting expense in selling, general and administrative expense to reflect the corresponding increase in the liability. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes The provision for income taxes comprises the following (in thousands): For the Years Ended December 31, 2019 2018 2017 Current U.S. federal $ 36,779 $ 23,934 $ 11,724 U.S. state and local 7,078 4,484 4,144 Foreign 600 452 465 Deferred U.S. federal, state and local ( 2,773 ) 5,185 2,402 Foreign 2 1 5 Total $ 41,686 $ 34,056 $ 18,740 A summary of the temporary differences that give rise to deferred tax assets/ (liabilities) follows (in thousands): December 31, 2019 2018 Accrued liabilities $ 32,498 $ 30,702 Lease liabilities 32,476 - Stock compensation expense 5,425 5,894 Implicit price concessions 4,165 1,171 State net operating loss carryforwards 2,678 2,422 Other 894 626 Deferred income tax assets 78,136 40,815 Amortization of intangible assets ( 39,679 ) ( 38,346 ) Right of use lease assets ( 28,807 ) - Accelerated tax depreciation ( 21,942 ) ( 19,685 ) Currents assets ( 2,510 ) ( 1,861 ) Market valuation of investments ( 2,058 ) ( 1,068 ) State income taxes ( 1,477 ) ( 1,261 ) Other ( 167 ) ( 192 ) Deferred income tax liabilities ( 96,640 ) ( 62,413 ) Net deferred income tax liabilities $ ( 18,504 ) $ ( 21,598 ) At December 31, 2019 and 2018, state net operating loss carryforwards were $ 43.1 million and $ 39.3 million, respectively. These net operating losses will expire, in varying amounts, between 2024 and 2039 . Based on our history of operating earnings, we have determined that our operating income will, more likely than not, be sufficient to ensure realization of our deferred income tax assets. A reconciliation of the beginning and ending of year amount of our unrecognized tax benefit is as follows (in thousands): 2019 2018 2017 Balance at January 1, $ 1,348 $ 1,123 $ 1,069 Unrecognized tax benefits due to positions taken in current year 234 453 268 Decrease due to expiration of statute of limitations ( 259 ) ( 228 ) ( 214 ) Balance at December 31, $ 1,323 $ 1,348 $ 1,123 We file tax returns in the U.S. federal jurisdiction and various states. The years ended December 31, 2016 and forward remain open for review for federal income tax purposes. The earliest open year relating to any of our major state jurisdictions is the fiscal year ended December 31, 2014. During the next twelve months, we do not anticipate a material net change in unrecognized tax benefits. We classify interest related to our accrual for uncertain tax positions in separate interest accounts. As of December 31, 2019 and 2018, we have approximately $ 159,000 and $ 136,000 , respectively, accrued in interest payable related to uncertain tax positions. These accruals are included in other current liabilities in the accompanying consolidated balance sheet. Net interest expense related to uncertain tax positions included in interest expense in the accompanying consolidated statement of income is not material. The difference between the actual income tax provision for continuing operations and the income tax provision calculated at the statutory U.S. federal tax rate is explained as follows (in thousands): For the Years Ended December 31, 2019 2018 2017 Income tax provision calculated using the statutory rate of 21% $ 54,938 $ 50,316 $ 40,921 Stock compensation tax benefits ( 24,177 ) ( 22,862 ) ( 18,932 ) State and local income taxes, less federal income tax effect 7,880 7,150 4,600 Nondeductible expenses 3,048 2,280 1,041 Enactment of the tax reform act - - ( 8,305 ) Other--net ( 3 ) ( 2,828 ) ( 585 ) Income tax provision $ 41,686 $ 34,056 $ 18,740 Effective tax rate 15.9 % 14.2 % 16.0 % Summarized below are the total amounts of income taxes paid during the years ended December 31 (in thousands): 2019 $ 44,063 2018 9,749 2017 42,311 Provision has not been made for additional taxes on $ 35.1 million of undistributed earnings of our domestic subsidiaries. Should we elect to sell our interest in these businesses rather than to affect a tax-free liquidation, additional taxes amounting to approximately $ 8.4 million would be incurred based on current income tax rates. |
Properties And Equipment
Properties And Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Properties And Equipment [Abstract] | |
Properties And Equipment | 12. Properties and Equipment A summary of properties and equipment follows (in thousands): December 31, 2019 2018 Land $ 8,360 $ 7,964 Buildings and building improvements 109,404 96,361 Transportation equipment 41,897 51,559 Machinery and equipment 123,102 111,183 Computer software 57,508 49,928 Furniture and fixtures 79,792 72,898 Projects under development 25,840 20,510 Total properties and equipment 445,903 410,403 Less accumulated depreciation ( 270,140 ) ( 248,370 ) Net properties and equipment $ 175,763 $ 162,033 The net book value of computer software at December 31, 2019 and 2018, was $ 9.6 million and $ 6.6 million, respectively. Depreciation expense for computer software was $ 4.6 million, $ 5.4 million and $ 4.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 13. 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. Our leases have remaining terms of less than 1 year to 10 years, some of which include options to extend the lease for up to 5 years , and some of which include options to terminate the lease within 1 year . We made a policy election to exclude leases with a lease term less than 12 months from being recorded on the balance sheet. We adopted the practical expedient related to the combining of lease and non-lease components, which allows us to account for the lease and non-lease components as a single lease component. We do not currently have any finance leases, all lease information disclosed is related to operating leases. The components of balance sheet information related to leases were as follows: December 31, 2019 Assets Operating lease assets $ 111,652 Liabilities Current operating leases 39,280 Noncurrent operating leases 86,656 Total operating lease liabilities $ 125,936 The components of lease expense were as follows: December 31, 2019 Lease Expense (a) Operating lease expense $ 49,112 Sublease income ( 6 ) Net lease expense $ 49,106 (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, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from leases $ 41,525 Leased assets obtained in exchange for new operating lease liabilities $ 150,356 Weighted Average Remaining Lease Term Operating leases 4.52 years Weighted Average Discount Rate Operating leases 3.3 % Maturity of Operating Lease Liabilities (in thousands) 2020 $ 44,262 2021 31,177 2022 23,588 2023 17,316 2024 12,119 Thereafter 15,807 Total lease payments $ 144,269 Less: interest ( 10,250 ) Less: lease obligations signed but not yet commenced ( 8,083 ) Total liability recognized on the balance sheet $ 125,936 The following is a summary of future minimum rental payments under operating leases that have initial noncancelable terms in excess of one year at December 31, 2018: Maturity of Operating Lease Liabilities (in thousands): 2019 $ 26,791 2020 24,152 2021 19,669 2022 13,851 2023 8,179 Thereafter 10,974 Total lease payments $ 103,616 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 $ 2.3 million related to extended lease terms that are reasonably certain of being exercised and exclude $ 8.1 million lease payments for leases signed but not yet commenced. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Plans [Abstract] | |
Retirement Plans | 14. Retirement Plans Retirement obligations under various plans cover substantially all full-time employees who meet age and/or service eligibility requirements. All plans providing retirement benefits to our employees are defined contribution plans. Expenses for our retirement and profit-sharing plans, excess benefit plans and other similar plans are as follows (in thousands): For the Years Ended December 31, 2019 2018 2017 $ 25,529 $ 16,502 $ 22,025 These expenses include the impact of market gains and losses on assets held in deferred compensation plans. Trust assets invested in shares of our stock are included in treasury stock, and the corresponding liability is included in a separate component of stockholders’ equity. At December 31, 2019, these trusts held 77,963 shares at historical average cost or $ 2.3 million of our stock (2018 – 80,584 shares or $ 2.3 million). We have excess benefit plans for key employees whose participation in the qualified plans is limited by U.S. Employee Retirement Income Security Act requirements. Benefits are determined based on theoretical participation in the qualified plans. Benefits are only invested in mutual funds, and participants are not permitted to diversify accumulated benefits in shares of our capital stock. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share[Abstract] | |
Earnings Per Share | 15. Earnings Per Share The computation of earnings per share follows (in thousands, except per share data): Net Income For the Years Ended December 31, Net Income Shares Earnings per Share 2019 Earnings $ 219,923 15,969 $ 13.77 Dilutive stock options - 480 Nonvested stock awards - 78 Diluted earnings $ 219,923 16,527 $ 13.31 2018 Earnings $ 205,544 16,059 $ 12.80 Dilutive stock options - 650 Nonvested stock awards - 94 Diluted earnings $ 205,544 16,803 $ 12.23 2017 Earnings $ 98,177 16,057 $ 6.11 Dilutive stock options - 596 Nonvested stock awards - 89 Diluted earnings $ 98,177 16,742 $ 5.86 During 2019, 287,000 stock options were excluded from the computation of diluted earnings per share as their exercise prices were greater than the average market price during most of the year. During 2018, 246,000 stock options were also excluded. During 2017, 328,000 stock options were also excluded. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Financial Instruments | 16. Financial Instruments FASB’s authoritative guidance on fair value measurements defines a hierarchy which prioritizes the inputs in fair value measurements. Level 1 measurements are measurements using quoted prices in active markets for identical assets or liabilities. Level 2 measurements use significant other observable inputs. Level 3 measurements are measurements using significant unobservable inputs which require a company to develop its own assumptions. In recording the fair value of assets and liabilities, companies must use the most reliable measurement available. The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2019 (in thousands): Fair Value Measure Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments of deferred compensation plans held in trust $ 77,446 $ 77,446 $ - $ - Long-term debt and current portion of long-term debt 90,000 - 90,000 - The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2018 (in thousands): Fair Value Measure Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments of deferred compensation plans held in trust $ 65,624 $ 65,624 $ - $ - Long-term debt and current portion of long-term debt 89,200 - 89,200 - For cash and cash equivalents, accounts receivable and accounts payable, the carrying amount is a reasonable estimate of fair value because of the liquidity and short-term nature of these instruments. As further described in Footnote 3, our outstanding long-term debt and current portion of long-term debt have floating interest rates that are reset at short-term intervals, generally 30 or 60 days. The interest rate we pay also includes an additional amount based on our current leverage ratio. As such, we believe our borrowings reflect significant nonperformance risks, mainly credit risk. Based on these factors, we believe the fair value of our long-term debt and current portion of long-term debt approximate the carrying value. |
Legal And Regulatory Matters
Legal And Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Legal And Regulatory Matters [Abstract] | |
Legal And Regulatory Matters | 17. Legal and Regulatory Matters The VITAS segment of the Company’s business operates in a heavily-regulated industry. As a result, the Company is subjected to inquiries and investigations by various government agencies, which can result in penalties including repayment obligations, funding withholding, or debarment, as well as to lawsuits, including qui tam actions. The following sections describe the various ongoing material lawsuits and investigations of which the Company is currently aware. Other than as described below, it is not possible at this time for us to estimate either the timing or outcome of any of those matters, or whether any potential loss, or range of potential losses, is probable or reasonably estimable. Regulatory Matters and Litigation The Company and certain current and former directors and officers were named as defendants in a case captioned In re Chemed Corp. Shareholder Derivative Litigation, No. 13 Civ. 1854 (LPS) (CJB) (D. Del.), which was consolidated on February 2, 2015. The complaint asserted a single claim for breach of the fiduciary duties of good faith, loyalty, due care and candor and sought, on behalf of the Company: (a) compensatory, restitutionary and exemplary damages in an unspecified amount, together with interest thereon; (b) attorneys’ fees and expenses; and (c) implementation of unspecified policies and procedures meant to prevent future instances of alleged wrongdoing. On February 26, 2019, Magistrate Judge Burke issued a Report and Recommendation recommending that Defendants’ motion to dismiss be granted with prejudice, and that the matter be dismissed as to all defendants. On March 14, 2019, the Court adopted the Report, granted Defendants’ motion to dismiss with prejudice, and dismissed this matter as to all defendants. The deadline for Plaintiff to file a timely notice of appeal was April 15, 2019. No such notice was filed. Consequently, this matter is now concluded. On October 30, 2017, the Company entered into a settlement agreement (the “Settlement Agreement”) to resolve civil litigation under the False Claims Act brought by the United States Department of Justice (“DOJ”) on behalf of the OIG and various relators concerning VITAS, filed in the U.S. District Court of the Western District of Missouri. The Company denied any violation of law and agreed to settlement without admission of wrongdoing. In connection with the settlement VITAS and certain of its subsidiaries entered into a corporate integrity agreement (“CIA”) on October 30, 2017. The CIA formalizes various aspects of VITAS’ already existing Compliance Program and contains requirements designed to document compliance with federal healthcare program requirements. It has a term of five year s during which it imposes monitoring, reporting, certification, oversight, screening and training obligations, certain of which had previously been implemented by VITAS. It also requires VITAS to engage an Independent Review Organization to perform audit and review functions and to prepare reports regarding compliance with federal healthcare programs. In the event of breach of the CIA, VITAS could become liable for payment of stipulated penalties or could be excluded from participation in federal healthcare programs. Under the Settlement Agreement, the Company paid $ 75 million plus interest, plus certain attorney fees and expenses of qui tam relators. The Company made these payments during the fourth quarter 2017. The Company previously recorded a $ 90 million loss reserve ($ 55.8 million after-tax) related to the Settlement Agreement, and associated costs in the second quarter of 2017. During the fourth quarter of 2017, approximately $ 5.5 million ($ 3.4 million after-tax) recorded as part of the $ 90 million was reversed as relator attorney’ fees were less than originally estimated. The Company has also entered into a settlement agreement that, once approved by the Los Angeles County Superior Court, will resolve state-wide wage and hour class action claims raised in four separate cases: (1) Jordan A. Seper on behalf of herself and others similarly situated v. VITAS Healthcare Corporation of California, a Delaware corporation; VITAS Healthcare Corp of CA, a business entity unknown; and DOES 1 to 100, inclusive ; Los Angeles Superior Court Case Number BC 642857 (“ Seper ”); (2) Jiwan Chhina v. VITAS Health Services of California, Inc., a California corporation; VITAS Healthcare Corporation of California, a Delaware corporation; VITAS Healthcare Corporation of California, a Delaware corporation dba VITAS Healthcare Inc.; and DOES 1 to 100, inclusive ; San Diego Superior Court Case Number 37-2015-00033978-CU-OE-CTL (“ Chhina ”) (which was subsequently merged with Seper ); (3) Chere Phillips and Lady Moore v. VITAS Healthcare Corporation of California , Sacramento County Superior Court, Case No. 34-2017-0021-2755; and (4) Williams v. VITAS Healthcare Corporation of California , Alameda County Superior Court Case No. RG 17853886. These actions were brought by both current and former employees including a registered nurse, a licensed vocational nurse (LVN), home health aides and a social worker. Each action stated multiple claims generally including (1) failure to pay minimum wage for all hours worked; (2) failure to provide overtime for all hours worked; (3) failure to pay wages for all hours at the regular rate; (4) failure to provide meal periods; (5) failure to provide rest breaks; (6) failure to provide complete and accurate wage statements; (7) failure to pay for all reimbursement expenses; (8) unfair business practices; and (9) violation of the California Private Attorneys General Act. The cases generally asserted claims on behalf of classes defined to include all current and former non-exempt employees employed with VITAS in California within the four year s preceding the filing of each lawsuit. For additional procedural history of these cases, please refer to our prior quarterly and annual filings. The Seper and Chhina cases were consolidated in Los Angeles County Superior Court; Chhina was dismissed as a separate action and joined with Seper in the filing of amended complaint on August 28, 2018, in which both Chhina and Seper were identified as named plaintiffs. Discovery in the remaining cases was stayed as to class claims and each court was advised of the pendency of the consolidated Seper/Chhina action. The parties engaged in a mediation process beginning in October 2018 and concluded with an agreement in March 2019. The settlement amount, subject to court approval, is $ 5.75 million plus employment taxes. As of December 31, 2019, $ 6.0 million was accrued in the accompanying Consolidated Balance Sheet. The definition of the class to participate in the settlement is intended to cover claims raised in the consolidated Seper/Chhina matter, claims raised in Phillips and Moore , as well as any class claims in William s. On January 28, 2020, the court granted preliminary approval of the settlement. A notice of the proposed settlement will be sent to the members of the class by the class claims administrator. The court has set the date for the final approval of the settlement hearing for May 21, 2020. Alfred Lax (“Lax”), a current employee of Roto-Rooter Services Company (“RRSC”), was hired in RRSC’s Menlo Park branch in 2007. On November 30, 2018, Lax filed a class action lawsuit in Santa Clara County Superior Court alleging (1) failure to provide or compensate for required rest breaks; (2) failure to properly pay for all hours worked; (3) failure to provide accurate wage statements; (4) failure to reimburse for work-related expenses; and (5) unfair business practices. Lax stated these claims as a representative of a class defined as all service technicians employed by RRSC in California during the four year s preceding the filing of the complaint. He seeks a determination that the action may proceed and be maintained as a class action and for compensatory and statutory damages (premium payments for missed rest periods, uncompensated rest periods, wages for time allegedly not paid such as travel time, repair time, and vehicle maintenance time, and unreimbursed expenses), penalties and restitutions, pre- and post-judgement interest and attorneys’ fees and costs. The lawsuit is, Alfred Lax on behalf of himself and all others similarly situated v. Roto-Rooter Services Company, and Does 1 through 50 inclusive; Santa Clara County Superior Court Case Number 18CV338652. The Company is not able to reasonably estimate the probability of loss or range of loss for any of these lawsuits at this time, with the exception of Seper/Chhina, Phillips and Moore and the class claims in Williams. The Company intends to defend vigorously against the allegations in the above lawsuit. Regardless of the outcome of any of the preceding matters, dealing with the various regulatory agencies and opposing parties can adversely affect us through defense costs, potential payments, withholding of governmental funding, diversion of management time, and related publicity. Although the Company intends to defend them vigorously, there can be no assurance that those suits will not have a material adverse effect on the Company. |
Capital Stock Transactions
Capital Stock Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Capital Stock Transactions [Abstract] | |
Capital Stock Transactions | 18. Capital Stock Transactions We repurchased the following capital stock: For the Years Ended December 31, 2019 2018 2017 Total cost of repurchased shares (in thousands): $ 92,631 $ 158,884 $ 94,640 Shares repurchased 269,009 561,146 500,000 Weighted average price per share $ 344.34 $ 283.14 $ 189.28 In February 2019, the Board of Directors authorized an additional $ 150.0 million for stock repurchase under the February 2011 repurchase program. We currently have $ 104.0 million of authorization remaining under this share purchase plan. |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Other Operating Expenses [Abstract] | |
Other Operating Expenses | 19. Other Operating Expenses December 31, 2019 2018 2017 Litigation settlement $ 6,000 $ 796 $ 84,476 Loss on sale of transportation equipment 2,266 - 5,266 Loss on disposal of property and equipment 866 504 - Program closure expenses - - 1,138 Total other operating expenses $ 9,132 $ 1,300 $ 90,880 During the first quarter of 2019, the Company recorded $ 6.0 million for a potential legal settlement, which includes the settlement amount, estimated employment taxes and other litigation costs. Also during 2019, the Company recorded $ 2.3 million for the loss on sale of transportation equipment. During 2017, the Company recorded $ 84.5 million related to the Settlement Agreement and a related qui tam case. See Footnote 17 for further discussion. The company recorded $ 5.3 million related to the loss on the sale of transportation equipment. Also during 2017, the Company recorded $ 1.1 million related to the closure of three Alabama programs at VITAS. |
Recent Accounting Standards
Recent Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
Recent Accounting Standards [Abstract] | |
Recent Accounting Statements | 20. Recent Accounting Standards In December 2019, the FASB issued Accounting Standards Update “ASU No. 2019-12 – Simplifying the Accounting Income Taxes”. The ASU adds new guidance to simplify accounting for income taxes, changes the accounting for certain income tax transactions and makes minor improvements to the codifications. The ASU is effective for the Company on January 1, 2021. We are currently evaluating the impact of this standard on our consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update “ASU No. 2017-4 – Intangibles – Goodwill and Other”. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. The guidance in the ASU is effective for the Company in fiscal years beginning after December 15, 2019. Early adoption is permitted. We anticipate adoption of this standard will have no impact on our consolidated financial statements. In June 2016, FASB issued Accounting Standards Update “ASU No. 2016-13 - Measurement of Credit Losses on Financial Instruments”. The ASU requires the use of the current expected credit loss model to measure impairments of financial assets. The ASU is effective for the Company for fiscal years beginning after December 15, 2019. The adoption of ASU No. 2016-13 will not have a material impact on our consolidated financial statements. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Schedule II - Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts | SCHEDULE II CHEMED CORPORATION AND SUBSIDIARY COMPANIES VALUATION AND QUALIFYING ACCOUNTS ( c) (IN THOUSANDS) DR/(CR) ADDITIONS (CHARGED) CREDITED (CHARGED) BALANCE AT TO COSTS CREDITED BALANCE BEGINNING AND TO OTHER DEDUCTIONS AT END DESCRIPTION OF PERIOD EXPENSES ACCOUNTS (a) OF PERIOD Allowances for doubtful accounts (b) For the year 2019 $ ( 253 ) $ ( 116 ) $ - $ 16 $ ( 353 ) For the year 2018 $ ( 15,175 ) $ ( 247 ) $ ( 1,436 ) $ 16,605 $ ( 253 ) For the year 2017 $ ( 14,236 ) $ ( 17,376 ) $ ( 1,360 ) $ 17,797 $ ( 15,175 ) (a) With respect to allowances for doubtful accounts, deductions include accounts considered uncollectible or written off, payments companies divested, etc. (b) Classified in consolidated balance sheets as a reduction of accounts receivable. (c) Beginning on January 1, 2018, in accordance with ASU 2014-09, Revenue with Contracts with Customers , revenue reductions resulting from implicit price concessions are recorded as a net reduction in accounts receivable. The remaining allowance for doubtful accounts relates to amounts deemed uncollectible due to an adverse change in our customer’s ability to pay. See Footnote 2 to the Company’s Consolidated Financial Statements for a full description. (d) |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Nature Of Operations | NATURE OF OPERATIONS We operate through our two wholly-owned subsidiaries: VITAS Healthcare Corporation (“VITAS”) and Roto-Rooter Group, Inc. (“Roto-Rooter”). VITAS focuses on hospice care that helps make terminally ill patients' final days as comfortable as possible. Through its team of doctors, nurses, home health aides, social workers, clergy and volunteers, VITAS provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Roto-Rooter provides plumbing, drain cleaning and water restoration services to both residential and commercial customers. Through its network of company-owned branches, independent contractors and franchisees, Roto-Rooter offers plumbing, drain cleaning service and water restoration to approximately 90 % of the U.S. population. |
Principles Of Accounting | PRINCIPLES OF ACCOUNTING The consolidated financial statements have been prepared on a going-concern basis. The consolidated financial statements include the accounts of Chemed Corporation and its wholly owned subsidiaries. All intercompany transactions have been eliminated. We have analyzed the provisions of the Financial Accounting Standards Board (“FASB”) authoritative guidance on the consolidation of variable interest entities relative to our contractual relationships with Roto-Rooter’s independent contractors and franchisees. The guidance requires the primary beneficiary of a Variable Interest Entity (“VIE”) to consolidate the accounts of the VIE. We have concluded that neither the independent contractors nor the franchisees are VIEs. Certain reclassifications have been made to prior year financial statements to conform to current presentation. |
Cash Equivalents | CASH EQUIVALENTS Cash equivalents comprise short-term, highly liquid investments, including money market funds that have original maturities of three months or less. |
Concentration Of Risk | CONCENTRATION OF RISK As of December 31, 2019 and 2018, approximately 71 % and 68 %, respectively, of VITAS’ total accounts receivable balance were from Medicare and 24 % and 26 %, respectively, of VITAS’ total accounts receivable balance were due from various state Medicaid or managed Medicaid programs. Combined accounts receivable from Medicare, Medicaid, and managed Medicaid represent approximately 75 % of the consolidated net accounts receivable in the accompanying consolidated balance sheets as of December 31, 2019. |
Inventories | INVENTORIES Substantially all of the inventories are either general merchandise or finished goods. Inventories are stated at the lower of cost or net realizable value. For determining the value of inventories, cost methods that reasonably approximate the first-in, first-out (“FIFO”) method are used. |
Depreciation And Properties And Equipment | DEPRECIATION AND PROPERTIES AND EQUIPMENT Depreciation of properties and equipment is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the remaining lease terms (excluding option terms) or their useful lives. Expenditures for maintenance, repairs, renewals and betterments that do not materially prolong the useful lives of the assets are expensed as incurred. The cost of property retired or sold and the related accumulated depreciation are removed from the accounts, and the resulting gain or loss is reflected currently in other operating expense or other income, net. Expenditures for major software purchases and software developed for internal use are capitalized and depreciated using the straight-line method over the estimated useful lives of the assets. For software developed for internal use, external direct costs for materials and services and certain internal payroll and related fringe benefit costs are capitalized in accordance with the FASB’s authoritative guidance on accounting for the costs of computer software developed or obtained for internal use. The weighted average lives of our property and equipment at December 31, 2019, were: Buildings and building improvements 15.1 yrs. Transportation equipment 4.6 Machinery and equipment 5.2 Computer software 4.2 Furniture and fixtures 4.6 |
Goodwill And Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The table below shows a rollforward of Goodwill (in thousands): Roto- Vitas Rooter Total Balance at December 31, 2017 $ 328,301 $ 148,586 $ 476,887 Business combinations 5,030 28,780 33,810 Foreign currency adjustments - ( 127 ) ( 127 ) Balance at December 31, 2018 $ 333,331 $ 177,239 $ 510,570 Business combinations - 66,726 66,726 Foreign currency adjustments - 71 71 Balance at December 31, 2019 $ 333,331 $ 244,036 $ 577,367 Identifiable, definite-lived intangible assets arise from purchase business combinations and are amortized using either an accelerated method or the straight-line method over the estimated useful lives of the assets. The selection of an amortization method is based on which method best reflects the economic pattern of usage of the asset. Reacquired franchise rights are amortized over the remaining term of the franchise agreement at the time of acquisition. The weighted average lives of our identifiable, definite-lived intangible assets at December 31, 2019, were: Covenants not to compete 6.4 yrs. Reacquired franchise rights 7.4 Referral networks 10.0 Customer lists 16.8 The date of our annual goodwill and indefinite-lived intangible asset impairment analysis is October 1. The VITAS trade name is considered to have an indefinite life. We also capitalize the direct costs of obtaining licenses to operate either hospice programs or plumbing operations subject to a minimum capitalization threshold. These costs are amortized over the life of the license using the straight-line method. Certificates of Need (“CON”), which are required in certain states for hospice operations, are generally granted without expiration and thus, we believe them to be indefinite-lived assets subject to impairment testing. We consider that Roto-Rooter Corp. (“RRC”), Roto-Rooter Services Co. (“RRSC”) and VITAS are appropriate reporting units for testing goodwill impairment. We consider RRC and RRSC separate reporting units but one operating segment. This is appropriate as they each have their own set of general ledger accounts that can be analyzed at “one level below an operating segment” per the definition of a reporting unit in FASB guidance. We completed our qualitative analysis for impairment of goodwill and our indefinite-lived intangible assets as of October 1, 2019. Based on our assessment, we do not believe that it is more likely than not that our reporting units or indefinite-lived assets fair values are less than their carrying values. |
Long-Lived Assets | LONG-LIVED ASSETS If we believe a triggering event may have occurred that indicates a possible impairment of our long-lived assets, we perform an estimate and valuation of the future benefits of our long-lived assets (other than goodwill, the VITAS trade name and capitalized CON costs) based on key financial indicators. If the projected undiscounted cash flows of a major business unit indicate that properties and equipment or identifiable, definite-lived intangible assets have been impaired, a write-down to fair value is made. |
Lease Accounting | LEASE ACCOUNTING In February 2016, the FASB issued Accounting Standards Update “ASU No. 2016-02 Leases” which introduced a lessee model that brings most leases onto the balance sheet and updates lessor accounting to align with changes in the lessee model and the revenue recognition standard. This standard is also referred to as Accountings Standards Codification No.842 (“ASC 842”). We adopted ASC 842 effective January 1, 2019, using the optional transition method requiring leases existing at, or entered into January 1, 2019 to be recognized and measured. The transition method selected does not require adjustments to prior period amounts, which continue to be reflected in accordance with historical accounting. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard which, among other things, allowed us to carry forward the historical lease classification. 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 inpatient units (“IPUs”) and/or contract beds within hospitals. Roto-Rooter mainly has leased office space. Roto-Rooter purchases equipment and leases it to certain of its independent contractors. We analyzed these leases in accordance with ASC 842 and determined they are operating leases. As a result, Roto-Rooter will continue to capitalize the equipment underlying these leases, depreciate the equipment and recognize rental income. Adoption of the new standard resulted in right of use assets and lease liabilities of $ 93.1 million and $ 104.3 million, respectively, as January 1, 2019. In determining the liability, we used our incremental borrowing rate based on the information available at the time of adoption, since the rate implicit in the leases cannot be readily determined. At January 1, 2019, the weighted average rate was 3.47 %. The standard did not materially impact our consolidated net income or cash flows. We did not book a cumulative effect adjustment upon adoption of the standard. |
Cloud Computing | CLOUD COMPUTING On January 1, 2019, we early adopted ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract”. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. We adopted the ASU on a prospective basis. As of December 31, 2019, we have two cloud computing arrangements that are service contracts. Roto-Rooter is implementing a system to assist in technician dispatch and VITAS is implementing a new human resources system. We have capitalized approximately $ 5.7 million related to implementation of these projects which are included in prepaid assets in the accompanying balance sheets. There has been no amortization expense associated with the assets, as the software has not yet been placed in service. We anticipate amortizing the assets over the original term of the arrangements plus renewal options that are reasonably certain of being exercised. |
Other Assets | OTHER ASSETS Debt issuance costs are included in other assets. Issuance costs related to revolving credit agreements are amortized using the straight-line method, over the life of the agreement. All other issuance costs are amortized using the effective interest method over the life of the debt. There are no amounts included in other assets that individually exceed 5 % of total assets. |
Sales Tax | SALES TAX The Roto-Rooter segment collects sales tax from customers when required by state and federal laws. We record the amount of sales tax collected net in the accompanying consolidated statements of income. |
Operating Expenses | OPERATING EXPENSES Cost of services provided and goods sold (excluding depreciation) includes salaries, wages and benefits of service providers and field personnel, material costs, medical supplies and equipment, pharmaceuticals, insurance costs, service vehicle costs and other expenses directly related to providing service revenues or generating sales. Selling, general and administrative expenses include salaries, wages, stock -based compensation expense and benefits of selling, marketing and administrative employees, advertising expenses, communications and branch telephone expenses, office rent and operating costs, legal, banking and professional fees and other administrative costs. The cost associated with VITAS sales personnel is included in cost of services provided and goods sold (excluding depreciation). |
Advertising | ADVERTISING We expense the production costs of advertising the first time the advertising takes place. We pay for and expense the cost of internet advertising and placement on a “per click” basis. Similarly, the majority of our telephone directory listings are paid for and expensed on a “cost per call” basis. For those directories that are not on this billing basis, the cost of the directory is expensed when the directories are placed in circulation. Advertising expense for the year ended December 31, 2019, was $ 49.5 million (2018 – $ 47.0 million; 2017 - $ 40.9 million). |
Other Current Liabilities | OTHER CURRENT LIABILITIES There are no amounts included in other current liabilities that individually exceed 5 % of total current liabilities, with the exception of , the Medicare cap liability, which is discussed further in Footnote 2. |
Other Liabilities (Non-Current) | OTHER LIABILITIES (NON-CURRENT) There are no amounts included in other liabilities that individually exceed 5 % of total liabilities. |
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS Stock-based compensation cost is measured at the grant date, based on the fair value of the award and recognized as expense over the employee’s requisite service period on a straight-line basis. |
Non-Employee Stock Compensation | NON-EMPLOYEE STOCK COMPENSATION In June 2018, the FASB issued Accounting Standards Update “ASU No. 2018-07 – Compensation – Stock Compensation”. The ASU expands the scope of current guidance to include all share-based payment arrangements related to the acquisition of goods and services from both non-employees and employees. The guidance in the ASU is effective for the Company in all fiscal years beginning after December 15, 2018. Adoption of this standard had no material impact on our Consolidated Financial Statements. |
Insurance Accruals | I NSURANCE ACCRUALS For our Roto-Rooter segment and Corporate Office, we initially self-insure for all casualty insurance claims (workers’ compensation, auto liability and general liability ). As a result, we closely monitor and frequently evaluate our historical claims experience to estimate the appropriate level of accrual for self-insured claims. Our third-party administrator (“TPA”) processes and reviews claims on a monthly basis. Currently, our exposure on any single claim is capped by stop-loss coverage at $ 750,000 . In developing our estimates, we accumulate historical claims data for the previous 10 years to calculate loss development factors (“LDF”) by insurance coverage type. LDFs are applied to known claims to estimate the ultimate potential liability for known and unknown claims for each open policy year. LDFs are updated annually. Because this methodology relies heavily on historical claims data, the key risk is whether the historical claims are an accurate predictor of future claims exposure. The risk also exists that certain claims have been incurred and not reported on a timely basis. To mitigate these risks, in conjunction with our TPA, we closely monitor claims to ensure timely accumulation of data and compare claims trends with the industry experience of our TPA. For the VITAS segment, we initially self-insure for workers’ compensation claims. Currently, VITAS’ exposure on any single claim is capped by stop- loss coverage at $ 1,000,000 . For VITAS’ self-insurance accruals for workers’ compensation, the valuation methods used are similar to those used internally for our other business units. We are also insured for other risks with respect to professional liability with a deductible of $ 750,000 . Our casualty insurance liabilities are recorded gross before any estimated recovery for amounts exceeding our stop loss limits. Estimated recoveries from insurance carriers are recorded as accounts receivable. Claims experience adjustments to our casualty and workers’ compensation accrual for the years ended December 31, 2019, 2018 and 2017, were net pretax credits of ($ 1,664,000 ), ($ 3,437,000 ), and ($ 1,800,000 ) respectively. |
Taxes On Income | TAXES ON INCOME On December 22, 2017, the President of the United States signed into law H.R.1, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (previously known as “The Tax Cuts and Jobs Act”) or (the “Act”). The Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, U.S. generally accepted accounting principles requires resulting tax effects for the Act, to be recorded in the reporting period of enactment. The SEC issued SAB 118, which provides guidance on accounting for the Act’s impact. Under SAB 118, an entity would use something similar to the measurement period in a business combination, not to exceed one year. For matters that have not been completed, the Company would recognize provisional amounts to the extent that they are reasonably estimable, adjust them over time as more information becomes available, and disclose this information in its financial statements. Our accounting for all elements of the Tax Act is complete. The Company did not record any material changes to the provisional amounts previously recorded, net benefit recorded in 2017 of $ 8.3 million. The Company also determined new rules, such as the Global Intangible Low-Taxed Income (GILTI) and Base Erosion and Anti-Abuse Tax (BEAT), have no material impact to the financial statements. Historically, the Company has not provided for deferred taxes on undistributed earnings because such earnings are considered to be indefinitely reinvested outside of the U.S. The Company continues this assertion that foreign earnings are permanently reinvested under the Act. The Act provides for 100 percent bonus depreciation on personal tangible property expenditures starting September 27, 2017 through 2022. The bonus depreciation percentage is phased down from 100 percent beginning in 2023 through 2026. The Company expects to take full benefit of these bonus depreciation rules. The IRS and other tax authorities are still issuing guidance on the Act, through various regulations some of which are still proposed and not final. The Company will implement any changes related to finalized regulations and other guidance in the period issued. Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amount of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in our opinion, it is more likely than not that some portion or all of the deferred tax assets will not be realized due to insufficient taxable income within the carryback or carryforward period available under the tax laws. Deferred tax assets and liabilities are adjusted for the effects of changes in law and rates on the date of enactment. We are subject to income taxes in Canada, U.S. federal and most state jurisdictions. Judgement is required to determine our provision for income taxes. Our financial statements reflect expected future tax consequences of such uncertain positions assuming the taxing authorities’ full knowledge of the position and all relevant facts. |
Contingencies | CONTINGENCIES As discussed in Note 17, we are subject to various lawsuits and claims in the normal course of our business. In addition, we periodically receive communications from governmental and regulatory agencies concerning compliance with Medicare and Medicaid billing requirements at our VITAS subsidiary. We establish reserves for specific, uninsured liabilities in connection with regulatory and legal action that we deem to be probable and reasonably estimable. We record legal fees associated with legal and regulatory actions as the costs are incurred. We disclose material loss contingencies that are probable but not reasonably estimable and those that are at least reasonably possible. |
Business Combinations | BUSINESS COMBINATIONS We account for acquired businesses using the acquisition method of accounting. All assets acquired and liabilities assumed are recorded at their respective fair values at the date of acquisition. The determination of fair value involves estimates and the use of valuation techniques when market value is not readily available. We use various techniques to determine fair value in accordance with accepted valuation models, primarily the income approach. The significant assumptions used in developing fair values include, but are not limited to, revenue growth rates, the amount and timing of future cash flows, discount rates, useful lives, royalty rates and future tax rates. The excess of purchase price over the fair value of assets and liabilities acquired is recorded as goodwill. See Footnote 7 for discussion of recent acquisitions. |
Estimates | ESTIMATES The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Disclosures of after-tax expenses and adjustments are based on estimates of the effective income tax rates for the applicable segments. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Weighted Average Lives Of Property And Equipment | Buildings and building improvements 15.1 yrs. Transportation equipment 4.6 Machinery and equipment 5.2 Computer software 4.2 Furniture and fixtures 4.6 |
Schedule Of Movement In Goodwill | Roto- Vitas Rooter Total Balance at December 31, 2017 $ 328,301 $ 148,586 $ 476,887 Business combinations 5,030 28,780 33,810 Foreign currency adjustments - ( 127 ) ( 127 ) Balance at December 31, 2018 $ 333,331 $ 177,239 $ 510,570 Business combinations - 66,726 66,726 Foreign currency adjustments - 71 71 Balance at December 31, 2019 $ 333,331 $ 244,036 $ 577,367 |
Weighted Average Lives Of Identifiable, Definite-Lived Intangible Assets | Covenants not to compete 6.4 yrs. Reacquired franchise rights 7.4 Referral networks 10.0 Customer lists 16.8 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule Of Patient Care Service Revenue | The composition of patient care service revenue by payor and level of care for the year ended December 31, 2019 is as follows (in thousands): Medicare Medicaid Commercial Total Routine home care $ 1,003,308 $ 48,420 $ 24,297 $ 1,076,025 Continuous care 121,019 6,712 5,742 133,473 Inpatient care 84,752 9,102 6,066 99,920 $ 1,209,079 $ 64,234 $ 36,105 $ 1,309,418 All other revenue - self-pay, respite care, etc. 10,433 Subtotal $ 1,319,851 Medicare cap adjustment ( 12,415 ) Implicit price concessions ( 14,893 ) Room and board, net ( 11,359 ) Net revenue $ 1,281,184 The composition of patient care service revenue by payor and level of care for the year ended December 31, 2018 is as follows (in thousands): Medicare Medicaid Commercial Total Routine home care $ 939,951 $ 47,609 $ 22,958 $ 1,010,518 Continuous care 110,596 6,126 5,776 122,498 Inpatient care 69,354 8,156 5,167 82,677 $ 1,119,901 $ 61,891 $ 33,901 $ 1,215,693 All other revenue - self-pay, respite care, etc. 7,831 Subtotal $ 1,223,524 Medicare cap adjustment ( 4,123 ) Implicit price concessions ( 11,785 ) Room and board, net ( 10,054 ) Net revenue $ 1,197,562 |
Schedule Of Disaggregated Revenue | 2019 2018 Short-term core service jobs $ 482,625 $ 425,845 Water restoration 115,949 109,484 Contractor revenue 58,086 50,169 Franchise fees 6,152 6,382 All other 12,279 11,958 Subtotal $ 675,091 $ 603,838 Implicit price concessions and credit memos ( 17,720 ) ( 18,752 ) Net revenue $ 657,371 $ 585,086 |
Change to Prior Revenue Guidance Related to Classification in The Statements of Income | Impact for the year ended December 31, 2018 ASC 605 Adjustment ASC 606 Service revenue and sales $ 1,811,408 $ ( 28,760 ) $ 1,782,648 Cost of services provided and goods sold 1,238,698 ( 10,054 ) 1,228,644 Selling, general and administrative expenses 288,915 ( 18,706 ) 270,209 |
Long-Term Debt And Lines of C_2
Long-Term Debt And Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt And Lines Of Credit [Abstract] | |
Debt Outstanding | December 31, 2019 2018 Revolver $ 90,000 $ 89,200 Term loan - - Total 90,000 89,200 Current portion of term loan - - Long-term debt $ 90,000 $ 89,200 |
Interest Paid During The Years | 2019 $ 4,125 2018 4,178 2017 3,626 |
Financial Debt Covenants | Chemed Description Requirement December 31, 2019 Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA) < 3.50 to 1.00 0.37 to 1.00 Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges) > 1.50 to 1.00 4.34 to 1.00 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation Plans [Abstract] | |
Schedule Of Comparative Date For Performance Stock Units | 2019 Awards 2018 Awards 2017 Awards TSR Awards Shares of stock granted - target 7,029 7,523 7,304 Per-share fair value $ 434.51 $ 341.20 $ 226.95 Volatility 21.4 % 22.9 % 21.8 % Risk-free interest rate 2.45 % 2.34 % 1.44 % EPS Awards Shares of stock granted - target 7,029 7,523 7,304 Per-share fair value $ 322.40 $ 256.29 $ 172.60 Common Assumptions Service period (years) 2.9 2.9 2.9 Three-year measurement period ends December 31, 2021 2020 2019 |
Schedule Of Total Stock Option, Stock Award And PSU Activity | Stock Options Stock Awards Performance Units (PSUs) Weighted Weighted Average Aggregate Average Weighted Remaining Intrinsic Grant-Date Number of Average Number of Exercise Contractual Value Number of Per-Share Target Grant-Date Options Price Life (Years) (thousands) Awards Fair Value Units Price Outstanding at January 1, 2019 1,395,034 $ 181.82 - $ - 48,160 $ 207.17 Granted 287,010 413.19 2,313 331.69 27,688 253.44 Exercised/Vested ( 464,661 ) 139.78 ( 2,313 ) 331.69 ( 32,136 ) 136.48 Canceled/ Forfeited ( 11,435 ) 215.86 - - ( 734 ) 269.08 Outstanding at December 31, 2019 1,205,948 $ 252.77 3.3 $ 225,226 - $ - 42,978 $ 288.78 Vested and expected to vest at December 31, 2019 1,205,948 $ 252.77 3.3 $ 225,226 - *$ - 82,603 *$ 290.11 Exercisable at December 31, 2019 654,424 172.20 2.6 174,949 n.a. n.a. n.a. n.a. * Amount includes 27,761 share units which vested and were converted to shares of stock and distributed in the first quarter of 2020. |
Schedule Of Comparative Data For Stocks Option, Stock Awards And PSUs | Years Ended December 31, 2019 2018 2017 Total compensation expense of stock-based compensation plans charged against income $ 21,338 $ 19,229 $ 16,256 Total income tax benefit recognized in income for stock based compensation expense charged against income 5,373 4,788 5,690 Total intrinsic value of stock options exercised 106,793 102,144 50,192 Total intrinsic value of stock awards vested during the period 767 4,003 6,983 Per-share weighted average grant-date fair value of stock awards granted 331.69 333.75 203.52 |
Schedule Of Valuation Assumptions | 2019 2018 2017 Stock price on date of issuance $ 413.19 $ 306.70 $ 231.91 Grant date fair value per share $ 78.06 $ 67.16 $ 46.27 Number of options granted 287,010 246,350 330,550 Expected term (years) 4.0 4.0 4.0 Risk free rate of return 1.65 % 2.99 % 1.86 Volatility 21.25 % 22.42 % 22.80 Dividend yield 0.3 % 0.4 % 0.5 Forfeiture rate - - - |
Schedule Of Other Data For Stock Options, Stock Awards And PSUs | Stock Stock Options Awards PSUs Total unrecognized compensation at the end of the year $ 34,640 $ - $ 7,475 Weighted average period over which unrecognized compensation to be recognized (years) 2.3 - 1.7 Actual income tax benefit realized $ 25,193 $ 181 $ 2,489 Aggregate intrinsic value vested and expected to vest $ 225,226 $ - $ 36,306 |
Segments And Nature Of The Bu_2
Segments And Nature Of The Business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segments And Nature Of The Business [Abstract] | |
Segment Data | For the Years Ended December 31, 2019 2018 2017 After-tax Segment Earnings/(Loss) VITAS $ 155,822 $ 138,846 $ 57,645 Roto-Rooter 103,710 98,711 73,299 Total 259,532 237,557 130,944 Corporate ( 39,609 ) ( 32,013 ) ( 32,767 ) Net income $ 219,923 $ 205,544 $ 98,177 Interest Income VITAS $ 18,515 $ 13,412 $ 12,044 Roto-Rooter 8,285 7,000 5,635 Total 26,800 20,412 17,679 Intercompany eliminations ( 26,287 ) ( 19,741 ) ( 17,252 ) Total interest income $ 513 $ 671 $ 427 Interest Expense VITAS $ 169 $ 175 $ 188 Roto-Rooter 345 319 323 Total 514 494 511 Corporate 4,021 4,496 3,761 Total interest expense $ 4,535 $ 4,990 $ 4,272 Income Tax Provision VITAS $ 48,711 $ 40,847 $ 16,436 Roto-Rooter 30,276 28,850 32,782 Total 78,987 69,697 49,218 Corporate ( 37,301 ) ( 35,641 ) ( 30,478 ) Total income tax provision $ 41,686 $ 34,056 $ 18,740 Identifiable Assets VITAS $ 663,455 $ 553,949 $ 545,304 Roto-Rooter 507,480 351,030 294,663 Total 1,170,935 904,979 839,967 Corporate 97,382 70,550 80,059 Total identifiable assets $ 1,268,317 $ 975,529 $ 920,026 Additions to Long-Lived Assets VITAS $ 25,530 $ 36,969 $ 23,469 Roto-Rooter 162,494 68,786 45,386 Total 188,024 105,755 68,855 Corporate 1,000 128 483 Total additions to long-lived assets $ 189,024 $ 105,883 $ 69,338 Depreciation and Amortization VITAS $ 20,055 $ 19,700 $ 18,630 Roto-Rooter 24,994 19,016 16,790 Total 45,049 38,716 35,420 Corporate 156 147 205 Total depreciation and amortization $ 45,205 $ 38,863 $ 35,625 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Schedule By Year Of Projected Amortization Expense For Definite-Lived Intangible Assets | 2020 $ 9,907 2021 9,904 2022 9,883 2023 9,828 2024 9,779 Thereafter 21,329 |
Schedule Of Intangible Assets | Gross Accumulated Net Book Asset Amortization Value December 31, 2019 Referral networks $ 21,850 $ ( 21,223 ) $ 627 Covenants not to compete 10,036 ( 9,478 ) 558 Customer lists 4,746 ( 1,362 ) 3,384 Reacquired franchise rights 71,618 ( 5,557 ) 66,061 Subtotal - definite-lived intangibles 108,250 ( 37,620 ) 70,630 VITAS trade name 51,300 - 51,300 Roto-Rooter trade name 150 - 150 Operating licenses 4,290 - 4,290 Total $ 163,990 $ ( 37,620 ) $ 126,370 December 31, 2018 Referral networks $ 21,850 $ ( 21,152 ) $ 698 Covenants not to compete 9,796 ( 9,367 ) 429 Customer lists 2,025 ( 1,235 ) 790 Reacquired franchise rights 12,447 ( 1,529 ) 10,918 Subtotal - definite-lived intangibles 46,118 ( 33,283 ) 12,835 VITAS trade name 51,300 - 51,300 Roto-Rooter trade name 150 - 150 Operating licenses 3,968 - 3,968 Total $ 101,536 $ ( 33,283 ) $ 68,253 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions [Abstract] | |
Schedule Of Business Acquisitions | HSW Oakland Total Goodwill $ 56,191 $ 10,535 $ 66,726 Reacquired franchise rights 52,980 6,190 59,170 Property, plant, and equipment 5,998 675 6,673 Working capital 3,760 22 3,782 Customer relationships 2,220 500 2,720 Non-compete agreements 140 100 240 Other assets and liabilities - net 128 23 151 $ 121,417 $ 18,045 $ 139,462 |
Schedule Of Business Acquisitions Revenue And Net Income | HSW Oakland Total Service revenues and sales $ 20,141 $ 5,150 $ 25,291 Net income/(loss) ( 2,777 ) 231 ( 2,546 ) |
Schedule Of Franchise Revenue, Valuation And Amortization Of Reacquired Franchise Rights | Annualized Valuation Amortization of 2018 Franchise of Reacquired Reacquired Revenue Franchise Rights Franchise Rights HSW $ 1,782 $ 52,980 $ 7,258 Oakland 95 6,190 825 Subtotal 1,877 $ 59,170 $ 8,083 All other franchise territories 4,505 $ 6,382 |
Schedule Of Business Acquisitions Pro Forma Of Operations | For the Years Ended December 31, 2019 2018 Service revenues and sales $ 1,995,688 $ 1,900,218 Net income $ 228,939 $ 224,851 Earnings per share $ 14.34 $ 14.00 Diluted earnings per share $ 13.85 $ 13.38 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations [Abstract] | |
Schedule Of Estimated Timing Of Payments Of Liabilities | 2020 $ 826 2021 300 Thereafter 601 $ 1,727 |
Other Income--Net (Tables)
Other Income--Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income--Net [Abstract] | |
Schedule Of Other Income - Net | For the Years Ended December 31, 2019 2018 2017 Market value gains related to deferred compensation trusts $ 8,254 $ 287 $ 8,430 Interest income 513 671 427 Other--net ( 3 ) - ( 703 ) Total other income $ 8,764 $ 958 $ 8,154 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Schedule Of Provision For Income Taxes | For the Years Ended December 31, 2019 2018 2017 Current U.S. federal $ 36,779 $ 23,934 $ 11,724 U.S. state and local 7,078 4,484 4,144 Foreign 600 452 465 Deferred U.S. federal, state and local ( 2,773 ) 5,185 2,402 Foreign 2 1 5 Total $ 41,686 $ 34,056 $ 18,740 |
Schedule Of Temporary Differences That Give Rise To Deferred Tax Assets (Liabilities) | December 31, 2019 2018 Accrued liabilities $ 32,498 $ 30,702 Lease liabilities 32,476 - Stock compensation expense 5,425 5,894 Implicit price concessions 4,165 1,171 State net operating loss carryforwards 2,678 2,422 Other 894 626 Deferred income tax assets 78,136 40,815 Amortization of intangible assets ( 39,679 ) ( 38,346 ) Right of use lease assets ( 28,807 ) - Accelerated tax depreciation ( 21,942 ) ( 19,685 ) Currents assets ( 2,510 ) ( 1,861 ) Market valuation of investments ( 2,058 ) ( 1,068 ) State income taxes ( 1,477 ) ( 1,261 ) Other ( 167 ) ( 192 ) Deferred income tax liabilities ( 96,640 ) ( 62,413 ) Net deferred income tax liabilities $ ( 18,504 ) $ ( 21,598 ) |
Schedule Of Significant Changes To Unrecognized Tax Benefits | 2019 2018 2017 Balance at January 1, $ 1,348 $ 1,123 $ 1,069 Unrecognized tax benefits due to positions taken in current year 234 453 268 Decrease due to expiration of statute of limitations ( 259 ) ( 228 ) ( 214 ) Balance at December 31, $ 1,323 $ 1,348 $ 1,123 |
Schedule Of Difference Between Actual Income Tax Provision For Continuing Operations And Income Tax Provision Calculated At Statutory U.S. Federal Tax Rate | For the Years Ended December 31, 2019 2018 2017 Income tax provision calculated using the statutory rate of 21% $ 54,938 $ 50,316 $ 40,921 Stock compensation tax benefits ( 24,177 ) ( 22,862 ) ( 18,932 ) State and local income taxes, less federal income tax effect 7,880 7,150 4,600 Nondeductible expenses 3,048 2,280 1,041 Enactment of the tax reform act - - ( 8,305 ) Other--net ( 3 ) ( 2,828 ) ( 585 ) Income tax provision $ 41,686 $ 34,056 $ 18,740 Effective tax rate 15.9 % 14.2 % 16.0 % |
Schedule Of Income Taxes Paid | 2019 $ 44,063 2018 9,749 2017 42,311 |
Properties And Equipment (Table
Properties And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Properties And Equipment [Abstract] | |
Schedule Of Properties And Equipment | December 31, 2019 2018 Land $ 8,360 $ 7,964 Buildings and building improvements 109,404 96,361 Transportation equipment 41,897 51,559 Machinery and equipment 123,102 111,183 Computer software 57,508 49,928 Furniture and fixtures 79,792 72,898 Projects under development 25,840 20,510 Total properties and equipment 445,903 410,403 Less accumulated depreciation ( 270,140 ) ( 248,370 ) Net properties and equipment $ 175,763 $ 162,033 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components Of Balance Sheet Information Related To Leases | December 31, 2019 Assets Operating lease assets $ 111,652 Liabilities Current operating leases 39,280 Noncurrent operating leases 86,656 Total operating lease liabilities $ 125,936 |
Components Of Lease Expense | December 31, 2019 Lease Expense (a) Operating lease expense $ 49,112 Sublease income ( 6 ) Net lease expense $ 49,106 (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. |
Components Of Cash Flow Information Related To Leases | December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from leases $ 41,525 Leased assets obtained in exchange for new operating lease liabilities $ 150,356 Weighted Average Remaining Lease Term Operating leases 4.52 years Weighted Average Discount Rate Operating leases 3.3 % |
Summary Of Maturity Of Operating Lease Liabilities | Maturity of Operating Lease Liabilities (in thousands) 2020 $ 44,262 2021 31,177 2022 23,588 2023 17,316 2024 12,119 Thereafter 15,807 Total lease payments $ 144,269 Less: interest ( 10,250 ) Less: lease obligations signed but not yet commenced ( 8,083 ) Total liability recognized on the balance sheet $ 125,936 |
Summary Of Future Minimum Rental Payments Under Operating Leases | Maturity of Operating Lease Liabilities (in thousands): 2019 $ 26,791 2020 24,152 2021 19,669 2022 13,851 2023 8,179 Thereafter 10,974 Total lease payments $ 103,616 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Plans [Abstract] | |
Schedule Of Expenses For Retirement, Profit-Sharing Plans, Excess Benefit Plans And Other Similar Plans | For the Years Ended December 31, 2019 2018 2017 $ 25,529 $ 16,502 $ 22,025 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share[Abstract] | |
Schedule Of Computation Of Earnings Per Share | Net Income For the Years Ended December 31, Net Income Shares Earnings per Share 2019 Earnings $ 219,923 15,969 $ 13.77 Dilutive stock options - 480 Nonvested stock awards - 78 Diluted earnings $ 219,923 16,527 $ 13.31 2018 Earnings $ 205,544 16,059 $ 12.80 Dilutive stock options - 650 Nonvested stock awards - 94 Diluted earnings $ 205,544 16,803 $ 12.23 2017 Earnings $ 98,177 16,057 $ 6.11 Dilutive stock options - 596 Nonvested stock awards - 89 Diluted earnings $ 98,177 16,742 $ 5.86 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Carrying Value, Fair Value And Hierarchy Of Financial Instruments | The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2019 (in thousands): Fair Value Measure Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments of deferred compensation plans held in trust $ 77,446 $ 77,446 $ - $ - Long-term debt and current portion of long-term debt 90,000 - 90,000 - The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2018 (in thousands): Fair Value Measure Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments of deferred compensation plans held in trust $ 65,624 $ 65,624 $ - $ - Long-term debt and current portion of long-term debt 89,200 - 89,200 - |
Capital Stock Transactions (Tab
Capital Stock Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Capital Stock Transactions [Abstract] | |
Schedule Of Repurchased Capital Stock | For the Years Ended December 31, 2019 2018 2017 Total cost of repurchased shares (in thousands): $ 92,631 $ 158,884 $ 94,640 Shares repurchased 269,009 561,146 500,000 Weighted average price per share $ 344.34 $ 283.14 $ 189.28 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Operating Expenses [Abstract] | |
Schedule Of Other Operating Expenses | December 31, 2019 2018 2017 Litigation settlement $ 6,000 $ 796 $ 84,476 Loss on sale of transportation equipment 2,266 - 5,266 Loss on disposal of property and equipment 866 504 - Program closure expenses - - 1,138 Total other operating expenses $ 9,132 $ 1,300 $ 90,880 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)itementity | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of wholly-owned subsidiaries | entity | 2 | |||
Accounts payable | $ 51,101,000 | $ 50,150,000 | ||
Lease right of use assets | 111,652,000 | |||
Lease liabilities | $ 125,936,000 | |||
Weighted average rate | 3.30% | |||
Number of cloud computing arrangements | item | 2 | |||
Advertising expense in continuing operations | $ 49,500,000 | 47,000,000 | $ 40,900,000 | |
Adjustments to casualty and workers compensation accrual, net pretax debits/(credits) | $ (1,664,000) | $ (3,437,000) | (1,800,000) | |
Historical claims data, period of time | 10 years | |||
Net tax benefit | $ (8,305,000) | |||
The Act 2017 To 2022 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Bonus depreciation on personal tangible property expenditures, percentage | 100.00% | |||
The Act 2023 To 2026 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Bonus depreciation on personal tangible property expenditures, percentage | 100.00% | |||
Total Assets [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 5.00% | |||
Total Current Liabilities [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 5.00% | |||
Total Liabilities [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 5.00% | |||
Roto Rooter And Corporate Office [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Exposure on single claim | $ 750,000 | |||
Roto-Rooter [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of operating segments | item | 1 | |||
Percent of population serviced | 90.00% | |||
Roto-Rooter [Member] | Sales Revenue [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 34.00% | 33.00% | 31.00% | |
VITAS [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of service providers | item | 1 | |||
Exposure on single claim | $ 1,000,000 | |||
Professional liability and other risks, insurance deductible | $ 750,000 | |||
VITAS [Member] | Sales Revenue [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 66.00% | 67.00% | 69.00% | |
Medicare [Member] | Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 71.00% | 68.00% | ||
Medicaid [Member] | Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 24.00% | 26.00% | ||
Medicare And Medicaid [Member] | Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 75.00% | |||
ASU 2016-02 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Lease right of use assets | $ 93,100,000 | |||
Lease liabilities | $ 104,300,000 | |||
Weighted average rate | 3.47% | |||
Cloud Computing [Member] | ASU No. 2018-15 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Capitalized contract cost | $ 5,700,000 | |||
Capitalized contract cost, amortization expense | $ 0 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Schedule Of Weighted Average Lives Of Property And Equipment) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Building And Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 15 years 1 month 6 days |
Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 4 years 7 months 6 days |
Machinery And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 5 years 2 months 12 days |
Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 4 years 2 months 12 days |
Furniture And Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 4 years 7 months 6 days |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Schedule of movement in Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combination Segment Allocation [Line Items] | ||
Beginning balance | $ 510,570 | $ 476,887 |
Business combinations | 66,726 | 33,810 |
Foreign currency adjustments | 71 | (127) |
Ending balance | 577,367 | 510,570 |
VITAS [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Beginning balance | 333,331 | 328,301 |
Business combinations | 5,030 | |
Foreign currency adjustments | ||
Ending balance | 333,331 | 333,331 |
Roto-Rooter [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Beginning balance | 177,239 | 148,586 |
Business combinations | 66,726 | 28,780 |
Foreign currency adjustments | 71 | (127) |
Ending balance | $ 244,036 | $ 177,239 |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies (Weighted Average Lives Of Identifiable, Definite-Lived Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Non-Compete Agreements [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives of identifiable, definite-lived intangible assets | 6 years 4 months 24 days |
Reacquired Franchise Rights [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives of identifiable, definite-lived intangible assets | 7 years 4 months 24 days |
Referral Networks [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives of identifiable, definite-lived intangible assets | 10 years |
Customer Lists [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives of identifiable, definite-lived intangible assets | 16 years 9 months 18 days |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2013 | |
Revenue Recognition [line items] | ||||
Reclassification of expenses in SG&A | $ 305,712 | $ 271,209 | $ 276,652 | |
Reclassification of expenses in cost of services provided and goods sold | $ 1,321,126 | 1,227,644 | 1,150,532 | |
Roto-Rooter [Member] | ||||
Revenue Recognition [line items] | ||||
Credit payment terms | 30 days | |||
Duration of advance notice of cancellation without penalty for both parties | 90 days | |||
Term of contract | 10 years | |||
Duration of advance notice of cancelation without penatly | 60 days | |||
Roto-Rooter [Member] | Adoption of ASC 606 [Member] | ||||
Revenue Recognition [line items] | ||||
Reclassification of expenses in SG&A | $ 6,200 | 6,900 | ||
Roto-Rooter [Member] | Maximum [Member] | ||||
Revenue Recognition [line items] | ||||
Duration of services provided | 5 days | |||
Roto-Rooter [Member] | Minimum [Member] | ||||
Revenue Recognition [line items] | ||||
Duration of services provided | 3 days | |||
VITAS [Member] | ||||
Revenue Recognition [line items] | ||||
Period of tier one care rate | 60 days | |||
Period of tier two care rate | 61 days | |||
Period of services provided after discharge | 12 months | |||
Period of service intensity add-on payment | 7 days | |||
Reimbursement period per day | 4 hours | |||
Reimbursement increments | 15 minutes | |||
Minimum amount of care per 24-hr period | 8 hours | |||
Charity care cost | $ 9,000 | 8,200 | 7,700 | |
Percentage of automatic budget reductions | 2.00% | |||
Medicare cap liability | $ 16,300 | 6,400 | ||
Percentage of medicaid reimbursement | 95.00% | |||
Percentage of expenses | 5.00% | |||
VITAS [Member] | Adoption of ASC 606 [Member] | ||||
Revenue Recognition [line items] | ||||
Percentage of expenses | 5.00% | |||
Reclassification of expenses in SG&A | $ 14,900 | 11,800 | ||
Reclassification of expenses in cost of services provided and goods sold | 11,400 | 10,100 | ||
VITAS [Member] | Two Program Projected Measurement Period Liability [Member] | ||||
Revenue Recognition [line items] | ||||
Medicare cap adjustment | $ 4,100 | 2,400 | ||
Medicare cap liability | $ 247 | |||
VITAS [Member] | Three Program Projected Measurement Period Liability [Member] | ||||
Revenue Recognition [line items] | ||||
Additional Medicare cap adjustment related to prior cap liabilities | $ 7,600 | |||
VITAS [Member] | Four Programs Projected Measurement Period Liability [Member] | ||||
Revenue Recognition [line items] | ||||
Medicare cap adjustment | $ 12,400 |
Revenue Recognition (Schedule O
Revenue Recognition (Schedule Of Patient Care Service Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | $ 1,319,851 | $ 1,223,524 |
Net revenue | 1,281,184 | 1,197,562 |
All Other Revenue- Self-pay, Respite Care, Etc. [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 10,433 | 7,831 |
Medicare Cap [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Medicare cap adjustment | (12,415) | (4,123) |
Implicit Price Concessions [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Implicit price concessions | (14,893) | (11,785) |
Room And Board [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Room and board, net | (11,359) | (10,054) |
VITAS [Member] | Routine Home Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 1,076,025 | 1,010,518 |
VITAS [Member] | Continuous Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 133,473 | 122,498 |
VITAS [Member] | Inpatient Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 99,920 | 82,677 |
VITAS [Member] | Care Services Total [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 1,309,418 | 1,215,693 |
VITAS [Member] | Medicare [Member] | Routine Home Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 1,003,308 | 939,951 |
VITAS [Member] | Medicare [Member] | Continuous Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 121,019 | 110,596 |
VITAS [Member] | Medicare [Member] | Inpatient Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 84,752 | 69,354 |
VITAS [Member] | Medicare [Member] | Care Services Total [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 1,209,079 | 1,119,901 |
VITAS [Member] | Medicaid [Member] | Routine Home Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 48,420 | 47,609 |
VITAS [Member] | Medicaid [Member] | Continuous Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 6,712 | 6,126 |
VITAS [Member] | Medicaid [Member] | Inpatient Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 9,102 | 8,156 |
VITAS [Member] | Medicaid [Member] | Care Services Total [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 64,234 | 61,891 |
VITAS [Member] | Commercial [Member] | Routine Home Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 24,297 | 22,958 |
VITAS [Member] | Commercial [Member] | Continuous Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 5,742 | 5,776 |
VITAS [Member] | Commercial [Member] | Inpatient Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | 6,066 | 5,167 |
VITAS [Member] | Commercial [Member] | Care Services Total [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Patient care service revenue | $ 36,105 | $ 33,901 |
Revenue Recognition (Schedule_2
Revenue Recognition (Schedule Of Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Subtotal | $ 1,319,851 | $ 1,223,524 |
Net revenue | 1,281,184 | 1,197,562 |
Roto-Rooter [Member] | ||
Subtotal | 675,091 | 603,838 |
Implicit price concessions and credit memos | (17,720) | (18,752) |
Net revenue | 657,371 | 585,086 |
Roto-Rooter [Member] | Short-Term Core Service Jobs [Member] | ||
Subtotal | 482,625 | 425,845 |
Roto-Rooter [Member] | Water Restoration [Member] | ||
Subtotal | 115,949 | 109,484 |
Roto-Rooter [Member] | Contractor Revenue [Member] | ||
Subtotal | 58,086 | 50,169 |
Roto-Rooter [Member] | Franchise Fees [Member] | ||
Subtotal | 6,152 | 6,382 |
Roto-Rooter [Member] | All Other [Member] | ||
Subtotal | $ 12,279 | $ 11,958 |
Revenue Recognition (Change to
Revenue Recognition (Change to Prior Revenue Guidance Related to Classification in The Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Service revenue and sales | $ 1,938,555 | $ 1,782,648 | $ 1,666,724 |
Cost of services provided and goods sold | 1,321,126 | 1,227,644 | 1,150,532 |
Selling, general and administrative expenses | $ 305,712 | 271,209 | $ 276,652 |
ASC 605 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Service revenue and sales | 1,811,408 | ||
Cost of services provided and goods sold | 1,238,698 | ||
Selling, general and administrative expenses | 288,915 | ||
Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Service revenue and sales | (28,760) | ||
Cost of services provided and goods sold | (10,054) | ||
Selling, general and administrative expenses | (18,706) | ||
ASC 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Service revenue and sales | 1,782,648 | ||
Cost of services provided and goods sold | 1,228,644 | ||
Selling, general and administrative expenses | $ 270,209 |
Long-Term Debt And Lines of C_3
Long-Term Debt And Lines of Credit (Narrative) (Details) - USD ($) | Jun. 20, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 02, 2019 |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowing amount | $ 450,000,000 | |||
2018 Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Standby letters of credit issued | $ 37,900,000 | |||
2018 Credit Agreement [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rate | 1.00% | 1.00% | ||
2018 Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility period, years | 5 years | |||
Borrowing amount | $ 450,000,000 | |||
Deferred financing costs | $ 1,000,000 | |||
Unused lines of credit | $ 322,100,000 | |||
2018 Credit Agreement [Member] | Expansion Feature [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowing amount | $ 150,000,000 |
Long-Term Debt And Lines of C_4
Long-Term Debt And Lines of Credit (Debt Outstanding) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total | $ 90,000 | $ 89,200 |
Long-term debt | 90,000 | 89,200 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 90,000 | $ 89,200 |
Long-Term Debt And Lines Of C_5
Long-Term Debt And Lines Of Credit (Interest Paid During The Years) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long-Term Debt And Lines Of Credit [Abstract] | |||
Interest paid | $ 4,125 | $ 4,178 | $ 3,626 |
Long-Term Debt And Lines of C_6
Long-Term Debt And Lines of Credit (Financial Debt Covenants) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA), Requirement | 1 |
Leverage Ratio (Consolidated Indebtedness Consolidated Adj. EBITDA), Chemed | 0.37 |
Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges), Requirement | 1 |
Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges), Chemed | 1 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA), Requirement | 3.50 |
Leverage Ratio (Consolidated Indebtedness Consolidated Adj. EBITDA), Chemed | 1 |
Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges), Requirement | 1.50 |
Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges), Chemed | 4.34 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2019shares | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | Dec. 31, 2019itemshares | Dec. 31, 2018shares | Dec. 31, 2017shares | Mar. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of stock incentive plans | item | 3 | |||||||
Number of shares authorized | 5,100,000 | |||||||
Options granted | 287,010 | 246,350 | 330,550 | |||||
Perfromance Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of stock granted - target | 27,688 | |||||||
Shares vesting period, years | 3 years | 3 years | 3 years | |||||
Vested share units that will be converted | 27,761 | |||||||
Perfromance Stock Units [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage participant can ultimately receive of the targeted PSUs | 200.00% | |||||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares vesting period, years | 3 years | |||||||
Shares contractual life | 5 years | |||||||
Options granted | 287,010 | |||||||
Stock Options [Member] | Prior to Year 2014 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares contractual life | 10 years | |||||||
Outside Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted | 2,313 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Schedule of Comparative Date for Performance Stock Units) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Per-share fair value | $ 331.69 | $ 333.75 | $ 203.52 |
Volatility | 21.25% | 22.42% | 22.80% |
Risk-free interest rate | 1.65% | 2.99% | 1.86% |
Service period (years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days |
Three-year measurement period ends December 31, | 2021 | 2020 | 2019 |
Performance Based TSR [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of stock granted - target | 7,029 | 7,523 | 7,304 |
Per-share fair value | $ 434.51 | $ 341.20 | $ 226.95 |
Volatility | 21.40% | 22.90% | 21.80% |
Risk-free interest rate | 2.45% | 2.34% | 1.44% |
Performance Based EPS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of stock granted - target | 7,029 | 7,523 | 7,304 |
Per-share fair value | $ 322.40 | $ 256.29 | $ 172.60 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans (Schedule Of Total Stock Option, Stock Award And PSU Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Granted | 287,010 | 246,350 | 330,550 |
Weighted Average Grant-Date Price, Granted | $ 331.69 | $ 333.75 | $ 203.52 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Outstanding at January 1, 2019 | 1,395,034 | ||
Number of Options, Granted | 287,010 | ||
Number of Options, Exercised/Vested | (464,661) | ||
Number of Options, Canceled/Forfeited | (11,435) | ||
Number of Options, Outstanding at December 31, 2019 | 1,205,948 | 1,395,034 | |
Number of Options, Vested and expected to vest at December 31, 2019 | 1,205,948 | ||
Number of Options, Exercisable at December 31, 2019 | 654,424 | ||
Weighted Average Exercise Price, Outstanding at January 1, 2019 | $ 181.82 | ||
Weighted Average Exercise Price, Granted | 413.19 | ||
Weighted Average Exercise Price, Exercised/Vested | 139.78 | ||
Weighted Average Exercise Price, Canceled/Forfeited | 215.86 | ||
Weighted Average Exercise Price, Outstanding at December 31, 2019 | 252.77 | $ 181.82 | |
Weighted Average Exercise Price, Vested and expected to vest at December 31, 2019 | 252.77 | ||
Weighted Average Exercise Price, Exercisable at December 31, 2019 | $ 172.20 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding at December 31, 2019 | 3 years 3 months 18 days | ||
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest at December 31, 2019 | 3 years 3 months 18 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable at December 31, 2019 | 2 years 7 months 6 days | ||
Aggregate Intrinsic Value, Outstanding at December 31, 2019 | $ 225,226 | ||
Aggregate Intrinsic Value, Vested and dxpected to vest at December 31, 2019 | 225,226 | ||
Aggregate Intrinsic Value, Exercisable at December 31, 2019 | $ 174,949 | ||
Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Awards, Outstanding at January 1, 2019 | |||
Number of Awards, Granted | 2,313 | ||
Number of Awards, Exercised/Vested | (2,313) | ||
Number of Awards, Canceled/ Forfeited | |||
Number of Awards, Outstanding at December 31, 2019 | |||
Number of Awards, Vested and expected to vest at December 31, 2019 | |||
Weighted Average Grant-Date Price, Outstanding at January 1, 2019 | |||
Weighted Average Grant-Date Price, Granted | 331.69 | ||
Weighted Average Grant-Date Price, Exercised/Vested | 331.69 | ||
Weighted Average Grant-Date Price, Canceled/Forfeited | |||
Weighted Average Grant-Date Price, Outstanding at December 31, 2019 | |||
Weighted Average Exercise Price, Vested and expected to vest at December 31, 2019 | |||
Perfromance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Nonvested Target Units, Outstanding at January 1, 2019 | 48,160 | ||
Number of Nonvested Target Units, Granted | 27,688 | ||
Number of Nonvested Target Units, Exercised/Vested | (32,136) | ||
Number of Nonvested Target Units, Canceled/Forfeited | (734) | ||
Number of Nonvested Target Units, Outstanding at December 31, 2019 | 42,978 | 48,160 | |
Number of Nonvested Target Units, Vested and expected to vest at December 31, 2019 | 82,603 | ||
Weighted Average Grant-Date Price, Outstanding at January 1, 2019 | $ 207.17 | ||
Weighted Average Grant-Date Price, Granted | 253.44 | ||
Weighted Average Grant-Date Price, Exercised/Vested | 136.48 | ||
Weighted Average Grant-Date Price, Canceled/Forfeited | 269.08 | ||
Weighted Average Grant-Date Price, Outstanding at December 31, 2019 | 288.78 | $ 207.17 | |
Weighted Average Exercise Price, Vested and expected to vest at December 31, 2019 | $ 290.11 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans (Schedule Of Comparative Data For Stocks Option, Stock Awards And PSUs) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation Plans [Abstract] | |||
Total compensation expense of stock-based compensation plans charged against income | $ 21,338 | $ 19,229 | $ 16,256 |
Total income tax benefit recognized in income for stock based compensation expense charged against income | 5,373 | 4,788 | 5,690 |
Total intrinsic value of stock options exercised | 106,793 | 102,144 | 50,192 |
Total intrinsic value of stock awards vested during the period | $ 767 | $ 4,003 | $ 6,983 |
Per-share weighted average grant-date fair value of stock awards granted | $ 331.69 | $ 333.75 | $ 203.52 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans (Schedule Of Valuation Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation Plans [Abstract] | |||
Stock price on date of issuance | $ 413.19 | $ 306.70 | $ 231.91 |
Grant date fair value per share | $ 78.06 | $ 67.16 | $ 46.27 |
Number of options granted | 287,010 | 246,350 | 330,550 |
Expected term (years) | 4 years | 4 years | 4 years |
Risk free rate of return | 1.65% | 2.99% | 1.86% |
Volatility | 21.25% | 22.42% | 22.80% |
Dividend yield | 0.30% | 0.40% | 0.50% |
Forfeiture rate |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans (Schedule Of Other Data For Stock Options, Stock Awards And PSUs) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation at the end of the year | $ 34,640 |
Weighted average period over which unrecognized compensation to be recognized (years) | 2 years 3 months 18 days |
Actual income tax benefit realized | $ 25,193 |
Aggregate intrinsic value vested and expected to vest | 225,226 |
Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Actual income tax benefit realized | 181 |
Perfromance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation at the end of the year | $ 7,475 |
Weighted average period over which unrecognized compensation to be recognized (years) | 1 year 8 months 12 days |
Actual income tax benefit realized | $ 2,489 |
Aggregate intrinsic value vested and expected to vest | $ 36,306 |
Segments And Nature Of The Bu_3
Segments And Nature Of The Business (Segment Data) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net income | $ 219,923 | $ 205,544 | $ 98,177 |
Total interest income | 513 | 671 | 427 |
Total interest expense | 4,535 | 4,990 | 4,272 |
Total income tax provision | 41,686 | 34,056 | 18,740 |
Total identifiable assets | 1,268,317 | 975,529 | 920,026 |
Total additions to long-lived assets | 189,024 | 105,883 | 69,338 |
Total depreciation and amortization | 45,205 | 38,863 | 35,625 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net income | 259,532 | 237,557 | 130,944 |
Total interest income | 26,800 | 20,412 | 17,679 |
Total interest expense | 514 | 494 | 511 |
Total income tax provision | 78,987 | 69,697 | 49,218 |
Total identifiable assets | 1,170,935 | 904,979 | 839,967 |
Total additions to long-lived assets | 188,024 | 105,755 | 68,855 |
Total depreciation and amortization | 45,049 | 38,716 | 35,420 |
Intercompany Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total interest income | (26,287) | (19,741) | (17,252) |
VITAS [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net income | 155,822 | 138,846 | 57,645 |
Total interest income | 18,515 | 13,412 | 12,044 |
Total interest expense | 169 | 175 | 188 |
Total income tax provision | 48,711 | 40,847 | 16,436 |
Total identifiable assets | 663,455 | 553,949 | 545,304 |
Total additions to long-lived assets | 25,530 | 36,969 | 23,469 |
Total depreciation and amortization | 20,055 | 19,700 | 18,630 |
Roto-Rooter [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net income | 103,710 | 98,711 | 73,299 |
Total interest income | 8,285 | 7,000 | 5,635 |
Total interest expense | 345 | 319 | 323 |
Total income tax provision | 30,276 | 28,850 | 32,782 |
Total identifiable assets | 507,480 | 351,030 | 294,663 |
Total additions to long-lived assets | 162,494 | 68,786 | 45,386 |
Total depreciation and amortization | 24,994 | 19,016 | 16,790 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Net income | (39,609) | (32,013) | (32,767) |
Total interest expense | 4,021 | 4,496 | 3,761 |
Total income tax provision | (37,301) | (35,641) | (30,478) |
Total identifiable assets | 97,382 | 70,550 | 80,059 |
Total additions to long-lived assets | 1,000 | 128 | 483 |
Total depreciation and amortization | $ 156 | $ 147 | $ 205 |
Sales Revenue [Member] | VITAS [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 66.00% | 67.00% | 69.00% |
Sales Revenue [Member] | Roto-Rooter [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 34.00% | 33.00% | 31.00% |
Intangible Assets (Schedule By
Intangible Assets (Schedule By Year Of Projected Amortization Expense For Definite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquisitions [Abstract] | |||
Amortization of definite-lived intangible assets | $ 4,300 | $ 399 | $ 137 |
2020 | 9,907 | ||
2021 | 9,904 | ||
2022 | 9,883 | ||
2023 | 9,828 | ||
2024 | 9,779 | ||
Thereafter | $ 21,329 |
Intangible Assets (Schedule Of
Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Definite and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Asset, Subtotal- definite-lived intangibles | $ 108,250 | $ 46,118 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (37,620) | (33,283) |
Net Book Value, Subtotal - definite-lived intangibles | 70,630 | 12,835 |
Intangible assets, Gross Asset | 163,990 | 101,536 |
Intangible assets, Net Book Value | 126,370 | 68,253 |
VITAS Trade Name [Member] | ||
Definite and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Asset, Subtotal- definite-lived intangibles | 51,300 | 51,300 |
Net Book Value, Subtotal - definite-lived intangibles | 51,300 | 51,300 |
Roto-Rooter Trade Name [Member] | ||
Definite and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Asset, Subtotal- definite-lived intangibles | 150 | 150 |
Net Book Value, Subtotal - definite-lived intangibles | 150 | 150 |
Operating Licenses [Member] | ||
Definite and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Asset, Subtotal- definite-lived intangibles | 4,290 | 3,968 |
Net Book Value, Subtotal - definite-lived intangibles | 4,290 | 3,968 |
Referral Networks [Member] | ||
Definite and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Asset, Subtotal- definite-lived intangibles | 21,850 | 21,850 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (21,223) | (21,152) |
Net Book Value, Subtotal - definite-lived intangibles | 627 | 698 |
Non-Compete Agreements [Member] | ||
Definite and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Asset, Subtotal- definite-lived intangibles | 10,036 | 9,796 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (9,478) | (9,367) |
Net Book Value, Subtotal - definite-lived intangibles | 558 | 429 |
Customer Lists [Member] | ||
Definite and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Asset, Subtotal- definite-lived intangibles | 4,746 | 2,025 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (1,362) | (1,235) |
Net Book Value, Subtotal - definite-lived intangibles | 3,384 | 790 |
Reacquired Franchise Rights [Member] | ||
Definite and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Asset, Subtotal- definite-lived intangibles | 71,618 | 12,447 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (5,557) | (1,529) |
Net Book Value, Subtotal - definite-lived intangibles | $ 66,061 | $ 10,918 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | Aug. 02, 2019USD ($)item | Jul. 01, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) |
Goodwill [Line Items] | |||||
Amortization of reacquired franchise agreements | $ 4,300 | $ 399 | $ 137 | ||
Reacquired Franchise Rights [Member] | |||||
Goodwill [Line Items] | |||||
Average amortization period | 7 years 4 months 24 days | ||||
Amortization of reacquired franchise agreements | $ 4,000 | ||||
Non-Compete Agreements [Member] | |||||
Goodwill [Line Items] | |||||
Average amortization period | 6 years 4 months 24 days | ||||
HSW RR, Inc [Member] | Reacquired Franchise Rights [Member] | |||||
Goodwill [Line Items] | |||||
Amortization of reacquired franchise agreements | 7,258 | ||||
Roto-Rooter, Oakland [Member] | |||||
Goodwill [Line Items] | |||||
Acquisition date | Jul. 1, 2019 | ||||
Business combination cost | $ 18,000 | ||||
Roto-Rooter, Oakland [Member] | Reacquired Franchise Rights [Member] | |||||
Goodwill [Line Items] | |||||
Amortization of reacquired franchise agreements | 825 | ||||
HSW And Oakland [Member] | |||||
Goodwill [Line Items] | |||||
Acquisition expense | $ 3,400 | ||||
HSW And Oakland [Member] | Reacquired Franchise Rights [Member] | |||||
Goodwill [Line Items] | |||||
Amortization of reacquired franchise agreements | $ 8,083 | ||||
HSW And Oakland [Member] | Customer Relationships [Member] | |||||
Goodwill [Line Items] | |||||
Average amortization period | 20 years 4 months 24 days | ||||
HSW And Oakland [Member] | Non-Compete Agreements [Member] | |||||
Goodwill [Line Items] | |||||
Average amortization period | 4 years | ||||
Roto-Rooter [Member] | |||||
Goodwill [Line Items] | |||||
Number of completed business combinations | item | 4 | ||||
Business combination cost | $ 42,200 | ||||
Roto-Rooter [Member] | HSW RR, Inc [Member] | |||||
Goodwill [Line Items] | |||||
Business combination cost | $ 120,000 | ||||
Additional business combination cost | $ 1,400 | $ 1,400 | |||
Number of owned and operated franchises | item | 14 | ||||
VITAS [Member] | |||||
Goodwill [Line Items] | |||||
Number of completed business combinations | item | 1 | ||||
Business combination cost | $ 11,000 | ||||
Revolving Credit Facility [Member] | |||||
Goodwill [Line Items] | |||||
Borrowing amount | $ 450,000 |
Acquisitions (Schedule Of Busin
Acquisitions (Schedule Of Business Acquisitions) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 577,367 | $ 510,570 | $ 476,887 |
HSW RR, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 56,191 | ||
Property, plant, and equipment | 5,998 | ||
Working capital | 3,760 | ||
Other assets and liabilities - net | 128 | ||
Purchase price | 121,417 | ||
Roto-Rooter, Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 10,535 | ||
Property, plant, and equipment | 675 | ||
Working capital | 22 | ||
Other assets and liabilities - net | 23 | ||
Purchase price | 18,045 | ||
HSW And Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 66,726 | ||
Property, plant, and equipment | 6,673 | ||
Working capital | 3,782 | ||
Other assets and liabilities - net | 151 | ||
Purchase price | 139,462 | ||
Reacquired Franchise Rights [Member] | HSW RR, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 52,980 | ||
Reacquired Franchise Rights [Member] | Roto-Rooter, Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 6,190 | ||
Reacquired Franchise Rights [Member] | HSW And Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 59,170 | ||
Customer Relationships [Member] | HSW RR, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 2,220 | ||
Customer Relationships [Member] | Roto-Rooter, Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 500 | ||
Customer Relationships [Member] | HSW And Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 2,720 | ||
Non-Compete Agreements [Member] | HSW RR, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 140 | ||
Non-Compete Agreements [Member] | Roto-Rooter, Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 100 | ||
Non-Compete Agreements [Member] | HSW And Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | $ 240 |
Acquisitions (Schedule Of Bus_2
Acquisitions (Schedule Of Business Acquisitions Revenue And Net Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Service revenue and sales | $ 1,938,555 | $ 1,782,648 | $ 1,666,724 |
Net income/(loss) | 219,923 | 205,544 | $ 98,177 |
HSW RR, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Service revenue and sales | 20,141 | 1,782 | |
Net income/(loss) | (2,777) | ||
Roto-Rooter, Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Service revenue and sales | 5,150 | 95 | |
Net income/(loss) | 231 | ||
HSW And Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Service revenue and sales | 25,291 | $ 1,877 | |
Net income/(loss) | $ (2,546) |
Acquisitions (Schedule Of Franc
Acquisitions (Schedule Of Franchise Revenue, Valuation And Amortization Of Reacquired Franchise Rights) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Revenue | $ 1,938,555 | $ 1,782,648 | $ 1,666,724 |
Annualized Amortization of | 4,300 | 399 | $ 137 |
Franchise [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | 6,100 | 6,382 | |
HSW RR, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | 20,141 | 1,782 | |
Roto-Rooter, Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | 5,150 | 95 | |
HSW And Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | 25,291 | 1,877 | |
All Other Franchise Territories [Member] | |||
Business Acquisition [Line Items] | |||
Revenue | 4,505 | ||
Reacquired Franchise Rights [Member] | |||
Business Acquisition [Line Items] | |||
Annualized Amortization of | $ 4,000 | ||
Reacquired Franchise Rights [Member] | HSW RR, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Valuation of | 52,980 | ||
Annualized Amortization of | 7,258 | ||
Reacquired Franchise Rights [Member] | Roto-Rooter, Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Valuation of | 6,190 | ||
Annualized Amortization of | 825 | ||
Reacquired Franchise Rights [Member] | HSW And Oakland [Member] | |||
Business Acquisition [Line Items] | |||
Valuation of | 59,170 | ||
Annualized Amortization of | $ 8,083 |
Acquisitions (Schedule Of Bus_3
Acquisitions (Schedule Of Business Acquisitions Pro Forma Of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Acquisitions [Abstract] | ||
Service revenues and sales | $ 1,995,688 | $ 1,900,218 |
Net income | $ 228,939 | $ 224,851 |
Earnings per share | $ 14.34 | $ 14 |
Diluted earnings per share | $ 13.85 | $ 13.38 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - DuBois [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Estimated liability for potential environmental cleanup and related costs from the sale | $ 1,700 | $ 1,700 |
Discontinued operations, amount included in other current liabilities | 826 | |
Discontinued operations, amount included in other liabilities (long-term) | 901 | |
Maximum [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Contingent liability for incurring additional environmental cleanup and related costs | $ 14,900 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Estimated Timing Of Payments Of Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Discontinued Operations [Abstract] | |
2020 | $ 826 |
2021 | 300 |
Thereafter | 601 |
Estimated payments of liabilities related to discontinued operations | $ 1,727 |
Cash Overdrafts And Cash Equi_2
Cash Overdrafts And Cash Equivalents (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash Overdrafts And Cash Equivalents [Abstract] | |||
Capitalized property and equipment were not paid for | $ 1,800 | $ 3,200 | $ 2,700 |
Cash overdrafts included in accounts payable | 9,800 | 13,800 | |
Amount invested | $ 100 | $ 100 |
Other Income--Net (Schedule Of
Other Income--Net (Schedule Of Other Income - Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income--Net [Abstract] | |||
Market value gains related to deferred compensation trusts | $ 8,254 | $ 287 | $ 8,430 |
Interest income | 513 | 671 | 427 |
Other--net | (3) | (703) | |
Total other income | $ 8,764 | $ 958 | $ 8,154 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 43,100 | $ 39,300 |
Accrued interest payable related to uncertain tax positions | 159 | $ 136 |
Undistributed earnings of domestic subsidiaries | 35,100 | |
Additional taxes if interest in all businesses is sold rather than to effect a tax-free liquidation | $ 8,400 | |
Maximum [Member] | ||
Income Taxes [Line Items] | ||
Net operating losses expiration year | 2039 | |
Minimum [Member] | ||
Income Taxes [Line Items] | ||
Net operating losses expiration year | 2024 |
Income Taxes (Schedule Of Provi
Income Taxes (Schedule Of Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Current, U.S. federal | $ 36,779 | $ 23,934 | $ 11,724 |
Current, U.S. state and local | 7,078 | 4,484 | 4,144 |
Current, Foreign | 600 | 452 | 465 |
Deferred, U.S. federal, state and local | (2,773) | 5,185 | 2,402 |
Deferred, Foreign | 2 | 1 | 5 |
Income tax provision | $ 41,686 | $ 34,056 | $ 18,740 |
Income Taxes (Schedule Of Tempo
Income Taxes (Schedule Of Temporary Differences That Give Rise To Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Accrued liabilities | $ 32,498 | $ 30,702 |
Lease liabilities | 32,476 | |
Stock compensation expense | 5,425 | 5,894 |
Implicit price concessions | 4,165 | 1,171 |
State net operating loss carryforwards | 2,678 | 2,422 |
Other | 894 | 626 |
Deferred income tax assets | 78,136 | 40,815 |
Amortization of intangible assets | (39,679) | (38,346) |
Right of use lease assets | (28,807) | |
Accelerated tax depreciation | (21,942) | (19,685) |
Current assets | (2,510) | (1,861) |
Market valuation of investments | (2,058) | (1,068) |
State income taxes | (1,477) | (1,261) |
Other | (167) | (192) |
Deferred income tax liabilities | (96,640) | (62,413) |
Net deferred income tax liabilities | $ (18,504) | $ (21,598) |
Income Taxes (Schedule Of Signi
Income Taxes (Schedule Of Significant Changes To Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Balance at January 1, | $ 1,348 | $ 1,123 | $ 1,069 |
Unrecognized tax benefits due to positions taken in current year | 234 | 453 | 268 |
Decrease due to expiration of statute of limitations | (259) | (228) | (214) |
Balance at December 31, | $ 1,323 | $ 1,348 | $ 1,123 |
Income Taxes (Schedule Of Diffe
Income Taxes (Schedule Of Difference Between Actual Income Tax Provision For Continuing Operations And Income Tax Provision Calculated At Statutory U.S. Federal Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Income tax provision calculated using the statutory rate of 21% | $ 54,938 | $ 50,316 | $ 40,921 |
Stock compensation tax benefits | (24,177) | (22,862) | (18,932) |
State and local income taxes, less federal income tax effect | 7,880 | 7,150 | 4,600 |
Nondeductible expenses | 3,048 | 2,280 | 1,041 |
Enactment of the tax reform act | (8,305) | ||
Other --net | (3) | (2,828) | (585) |
Income tax provision | $ 41,686 | $ 34,056 | $ 18,740 |
Effective tax rate | 15.90% | 14.20% | 16.00% |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Taxes Paid) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Income taxes paid | $ 44,063 | $ 9,749 | $ 42,311 |
Properties And Equipment (Narra
Properties And Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Properties And Equipment [Abstract] | |||
Net book value of computer software | $ 9.6 | $ 6.6 | |
Depreciation expense for computer software | $ 4.6 | $ 5.4 | $ 4.4 |
Properties And Equipment (Sched
Properties And Equipment (Schedule Of Properties And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | $ 445,903 | $ 410,403 |
Less accumulated depreciation | (270,140) | (248,370) |
Net properties and equipment | 175,763 | 162,033 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 8,360 | 7,964 |
Buildings and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 109,404 | 96,361 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 41,897 | 51,559 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 123,102 | 111,183 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 57,508 | 49,928 |
Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 79,792 | 72,898 |
Projects Under Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | $ 25,840 | $ 20,510 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | ||
Option to extend the lease, term | up to 5 years | |
Option to terminate the lease, term | within 1 year | |
Operating lease payments related to extended lease terms | $ 2.3 | |
Lease payments for leases signed, but not yet commenced | $ 8.1 | |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Remaining terms of leases under operating lease | 1 year | |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Remaining terms of leases under operating lease | 10 years |
Leases (Components Of Balance S
Leases (Components Of Balance Sheet Information Related To Leases) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets | |
Operating lease assets | $ 111,652 |
Liabilities | |
Current operating leases | 39,280 |
Noncurrent operating leases | 86,656 |
Total operating lease liabilities | $ 125,936 |
Leases (Components Of Lease Exp
Leases (Components Of Lease Expense) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | [1] | |
Lease Expense | ||
Operating lease expense | $ 49,112 | |
Sublease income | (6) | |
Net lease expense | $ 49,106 | |
[1] | 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. |
Leases (Components Of Cash Flow
Leases (Components Of Cash Flow Information Related To Leases) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from leases | $ 41,525 |
Leased asset obtained in exchange for new operating lease liabilities | $ 150,356 |
Weighted Average Remaining Lease Term, Operating leases | 4 years 6 months 7 days |
Weighted Average Discount Rate, Operating leases | 3.30% |
Leases (Summary Of Maturity Of
Leases (Summary Of Maturity Of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 44,262 |
2021 | 31,177 |
2022 | 23,588 |
2023 | 17,316 |
2024 | 12,119 |
Thereafter | 15,807 |
Total lease payments | 144,269 |
Less: interest | (10,250) |
Less: lease obligations signed but not yet commenced | (8,083) |
Total liability recognized on the balance sheet | $ 125,936 |
Leases (Summary Of Future Minim
Leases (Summary Of Future Minimum Rental Payments Under Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 26,791 |
2020 | 24,152 |
2021 | 19,669 |
2022 | 13,851 |
2023 | 8,179 |
Thereafter | 10,974 |
Total lease payments | $ 103,616 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Plans [Abstract] | ||
Number of treasury stock shares held | 77,963 | 80,584 |
Treasury stock held value | $ 2.3 | $ 2.3 |
Retirement Plans (Schedule Of E
Retirement Plans (Schedule Of Expenses For Retirement, Profit-Sharing Plans, Excess Benefit Plans And Other Similar Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Plans [Abstract] | |||
Defined contribution plans expense | $ 25,529 | $ 16,502 | $ 22,025 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share[Abstract] | |||
Excluded stock options | 287 | 246 | 328 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Computation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share[Abstract] | |||
Earnings | $ 219,923 | $ 205,544 | $ 98,177 |
Diluted earnings | $ 219,923 | $ 205,544 | $ 98,177 |
Earnings, Shares | 15,969 | 16,059 | 16,057 |
Dilutive stock options, Shares | 480 | 650 | 596 |
Nonvested stock awards, Shares | 78 | 94 | 89 |
Diluted earnings, Shares | 16,527 | 16,803 | 16,742 |
Earnings, Earnings per Share | $ 13.77 | $ 12.80 | $ 6.11 |
Diluted earnings, Earnings per Share | $ 13.31 | $ 12.23 | $ 5.86 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Period in which the interest rate will reset | 30 days |
Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Period in which the interest rate will reset | 60 days |
Financial Instruments (Carrying
Financial Instruments (Carrying Value, Fair Value And Hierarchy Of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments of deferred compensation plans held in trust | $ 77,446 | $ 65,624 |
Total debt | 90,000 | 89,200 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments of deferred compensation plans held in trust | 77,446 | 65,624 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 90,000 | $ 89,200 |
Legal And Regulatory Matters (N
Legal And Regulatory Matters (Narrative) (Details) - USD ($) $ in Thousands | Oct. 30, 2017 | Mar. 31, 2019 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||||||
Accrued legal | $ 6,941 | $ 1,857 | |||||
Settlement Agreement [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Term to impose monitoring, reporting, certification, oversight, screening, and training | 5 years | ||||||
Litigation expenses | $ 75,000 | ||||||
U.S. v. VITAS [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation expenses | $ 90,000 | $ 90,000 | |||||
Litigation expenses, after tax | $ 55,800 | ||||||
Attorney Fees U.S. v. VITAS [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation expenses | 5,500 | ||||||
Litigation expenses, after tax | $ 3,400 | ||||||
VITAS [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Period of preceding the filing of the lawsuit | 4 years | ||||||
Seper/Chhina v. VITAS [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Settlement amount | $ 5,750 | ||||||
Accrued legal | $ 6,000 | ||||||
Lax v. Roto-Rooter [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Period of preceding the filing of the lawsuit | 4 years |
Capital Stock Transactions (Nar
Capital Stock Transactions (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Feb. 28, 2019 |
Capital Stock Transactions [Abstract] | ||
Stock repurchase program, amount authorized | $ 150 | |
Stock repurchase program, remaining authorized repurchase amount | $ 104 |
Capital Stock Transactions (Sch
Capital Stock Transactions (Schedule Of Repurchased Capital Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Stock Transactions [Abstract] | |||
Total cost of repurchased shares | $ 92,631 | $ 158,884 | $ 94,640 |
Shares repurchased | 269,009 | 561,146 | 500,000 |
Weighted average price per share | $ 344.34 | $ 283.14 | $ 189.28 |
Other Operating Expenses (Narra
Other Operating Expenses (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)item | |
Other Operating Expenses [Line Items] | ||||
Total other operating expenses | $ 9,132 | $ 1,300 | $ 90,880 | |
Litigation Settlement [Member] | ||||
Other Operating Expenses [Line Items] | ||||
Total other operating expenses | $ 6,000 | 6,000 | $ 796 | 84,476 |
Loss On Sale Of Transportation Equipment [Member] | ||||
Other Operating Expenses [Line Items] | ||||
Total other operating expenses | $ 2,266 | 5,266 | ||
Program Closure Expenses [Member] | ||||
Other Operating Expenses [Line Items] | ||||
Total other operating expenses | $ 1,138 | |||
Program Closure Expenses [Member] | VITAS [Member] | ||||
Other Operating Expenses [Line Items] | ||||
Number of programs closed | item | 3 |
Other Operating Expenses (Sched
Other Operating Expenses (Schedule Of Other Operating Expenses/(Income)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total other operating expenses | $ 9,132 | $ 1,300 | $ 90,880 | |
Litigation Settlement [Member] | ||||
Total other operating expenses | $ 6,000 | 6,000 | 796 | 84,476 |
Loss On Sale Of Transportation Equipment [Member] | ||||
Total other operating expenses | 2,266 | 5,266 | ||
Loss On Disposal Of Property And Equipment [Member] | ||||
Total other operating expenses | $ 866 | $ 504 | ||
Program Closure Expenses [Member] | ||||
Total other operating expenses | $ 1,138 |
Schedule II - Valuation And Q_2
Schedule II - Valuation And Qualifying Accounts (Details) - Allowance For Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
BALANCE AT BEGINNING OF PERIOD | [1],[2] | $ (253) | $ (15,175) | $ (14,236) |
(CHARGED) CREDITED TO COSTS AND EXPENSES | [1],[2] | (116) | (247) | (17,376) |
(CHARGED) CREDITED TO OTHER ACCOUNTS | [1],[2] | (1,436) | (1,360) | |
DEDUCTIONS | [1],[2],[3] | 16 | 16,605 | 17,797 |
BALANCE AT END OF PERIOD | [1],[2] | $ (353) | $ (253) | $ (15,175) |
[1] | Beginning on January 1, 2018, in accordance with ASU 2014-09, Revenue with Contracts with Customers , revenue reductions resulting from implicit price concessions are recorded as a net reduction in accounts receivable. The remaining allowance for doubtful accounts relates to amounts deemed uncollectible due to an adverse change in our customer’s ability to pay. See Footnote 2 to the Company’s Consolidated Financial Statements for a full description. | |||
[2] | Classified in consolidated balance sheets as a reduction of accounts receivable. | |||
[3] | With respect to allowances for doubtful accounts, deductions include accounts considered uncollectible or written off, payments companies divested, etc. |