Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 16, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Registrant Name | CHEMED CORP | ||
Trading Symbol | CHE | ||
Entity Central Index Key | 19,584 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 16,985,970 | ||
Entity Public Float | $ 2,162,114,441 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes |
Consolidated Statement Of Incom
Consolidated Statement Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statement Of Income [Abstract] | |||
Service revenues and sales | $ 1,543,388 | $ 1,456,282 | $ 1,413,329 |
Cost of services provided and goods sold (excluding depreciation) | 1,087,610 | 1,034,673 | 1,008,808 |
Selling, general and administrative expenses | 237,821 | 222,589 | 215,564 |
Depreciation | 32,369 | 29,881 | 27,698 |
Amortization | 1,130 | 720 | 1,644 |
Other operating expenses (Note 21) | 26,221 | ||
Total costs and expenses | 1,358,930 | 1,287,863 | 1,279,935 |
Income from operations | 184,458 | 168,419 | 133,394 |
Interest expense | (3,645) | (8,186) | (15,035) |
Other income/(expense) - net (Note 10) | (687) | 2,521 | 5,470 |
Income before income taxes | 180,126 | 162,754 | 123,829 |
Income taxes (Note 11) | (69,852) | (63,437) | (46,602) |
Net income | $ 110,274 | $ 99,317 | $ 77,227 |
Earnings Per Share (Note 15) | |||
Net income | $ 6.54 | $ 5.79 | $ 4.24 |
Average number of shares outstanding | 16,870 | 17,165 | 18,199 |
Diluted Earnings Per Share (Note 15) | |||
Net income | $ 6.33 | $ 5.57 | $ 4.16 |
Average number of shares outstanding | 17,422 | 17,840 | 18,585 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents (Note 9) | $ 14,727 | $ 14,132 |
Accounts receivable less allowances of $13,244 (2014 - $14,728) | 106,262 | 124,607 |
Inventories | 6,314 | 6,168 |
Current deferred income taxes (Note 11) | 15,414 | |
Prepaid income taxes | 10,653 | 2,787 |
Prepaid expenses | 12,852 | 11,456 |
Total current assets | 150,808 | 174,564 |
Investments of deferred compensation plans held in trust (Notes 14 and 16) | 49,481 | 49,147 |
Properties and equipment, at cost, less accumulated depreciation (Note 12) | 117,370 | 105,336 |
Identifiable intangible assets less accumulated amortization of $32,866 (2014 - $32,772) (Note 6) | 55,111 | 56,027 |
Goodwill | 472,322 | 466,722 |
Other assets | 7,233 | 8,136 |
Total Assets | 852,325 | 859,932 |
Current liabilities | ||
Accounts payable | 43,695 | 46,849 |
Current portion of long-term debt (Note 3) | 7,500 | 6,250 |
Income taxes (Note 11) | 5,818 | |
Accrued insurance | 43,972 | 40,814 |
Accrued compensation | 52,817 | 50,718 |
Accrued legal | 1,233 | 753 |
Other current liabilities | 22,119 | 24,352 |
Total current liabilities | 171,336 | 175,554 |
Deferred income taxes (Note 11) | 21,041 | 29,945 |
Long-term debt (Note 3) | 83,750 | 141,250 |
Deferred compensation liabilities (Note 14) | 49,467 | 48,684 |
Other liabilities | 13,478 | 13,143 |
Total Liabilities | $ 339,072 | $ 408,576 |
Commitments and contingencies (Notes 13 and 18) | ||
STOCKHOLDERS' EQUITY | ||
Capital stock - authorized 80,000,000 shares $1 par; issued 33,985,316 shares (2014 - 33,337,297 shares) | $ 33,985 | $ 33,337 |
Paid-in capital | 603,006 | 538,845 |
Retained earnings | 865,845 | 771,176 |
Treasury stock - 17,187,540 shares (2014 - 16,446,572 shares), at cost | (991,978) | (894,285) |
Deferred compensation payable in Company stock (Note 14) | 2,395 | 2,283 |
Total Stockholders' Equity | 513,253 | 451,356 |
Total Liabilities and Stockholders' Equity | $ 852,325 | $ 859,932 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheet [Abstract] | ||
Accounts receivable, allowances | $ 13,244 | $ 14,728 |
Identifiable intangible assets, accumulated amortization | $ 32,866 | $ 32,772 |
Capital stock - authorized | 80,000,000 | 80,000,000 |
Capital stock - par value | $ 1 | $ 1 |
Capital stock - issued | 33,985,316 | 33,337,297 |
Treasury stock | 17,187,540 | 16,446,572 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net income | $ 110,274 | $ 99,317 | $ 77,227 |
Adjustments to reconcile net income to net cash provided by operatings: | |||
Depreciation and amortization | 33,499 | 30,601 | 29,342 |
Provision for uncollectible accounts receivable | 14,247 | 13,173 | 10,907 |
Noncash long-term incentive compensation | 6,644 | 2,569 | 1,301 |
Provision/(benefit) for deferred income taxes (Note 11) | 6,325 | 6,978 | (6,988) |
Stock option expense | 5,445 | 4,802 | 6,042 |
Amortization of restricted stock awards | 2,107 | 2,471 | 3,046 |
Directors' stock awards | 540 | 480 | 480 |
Amortization of debt issuance costs | 523 | 826 | 1,751 |
Amortization of discount on convertible notes | 3,392 | 8,674 | |
Changes in operating assets and liabilities, excluding amounts acquired in business combinations: | |||
Decrease/(increase) in accounts receivable | 4,132 | (45,785) | (9,009) |
Decrease/(increase) in inventories | (142) | 535 | 355 |
Decrease/(increase) in prepaid expenses | (1,290) | 6,362 | (6,317) |
Increase/(decrease) in accounts payable and other current liabilities | 476 | (26,304) | 39,860 |
Increase/(decrease) in income taxes | 344 | 11,279 | (2,461) |
Increase in other assets | (47) | (4,769) | (6,507) |
Increase in other liabilities | 1,320 | 8,484 | 6,713 |
Excess tax benefit on share-based compensation | (14,042) | (5,172) | (3,982) |
Other sources | 1,145 | 1,040 | 413 |
Net cash provided by operating activities | 171,500 | 110,279 | 150,847 |
Cash Flows from Investing Activities | |||
Capital expenditures | (44,135) | (43,571) | (29,324) |
Business combinations, net of cash acquired (Note 7) | (6,614) | (250) | (2,257) |
Other sources | 432 | 294 | 235 |
Net cash used by investing activities | (50,317) | (43,527) | (31,346) |
Cash Flows from Financing Activities | |||
Payments on revolving line of credit | (153,200) | (336,350) | |
Proceeds from revolving line of credit | 103,200 | 386,350 | |
Purchases of treasury stock | (59,323) | (110,019) | (92,911) |
Capital stock surrendered to pay taxes on stock-based compensation | (15,734) | (7,524) | (5,348) |
Dividends paid | (15,605) | (14,255) | (14,148) |
Proceeds from exercise of stock options (Note 4) | 15,424 | 23,910 | 17,122 |
Excess tax benefit on stock-based compensation | 14,042 | 5,172 | 3,982 |
Payments on other long-term debt | (6,250) | (189,456) | |
Increase/(decrease) in cash overdraft payable | (1,177) | 9,714 | (11,415) |
Proceeds from other long-term debt | 100,000 | ||
Retirement of warrants | (2,648) | ||
Debt issuance costs | (914) | (1,108) | |
Other uses | (1,965) | (1,018) | (788) |
Net cash used by financing activities | (120,588) | (137,038) | (104,614) |
Increase/(decrease) in cash and cash equivalents | 595 | (70,286) | 14,887 |
Cash and cash equivalents at beginning of year | 14,132 | 84,418 | 69,531 |
Cash and cash equivalents at end of year | $ 14,727 | $ 14,132 | $ 84,418 |
Consolidated Statement Of Chang
Consolidated Statement 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, 2012 | $ 31,589 | $ 437,364 | $ 623,035 | $ (640,732) | $ 2,035 | $ 453,291 |
Net income | 77,227 | 77,227 | ||||
Dividends paid | (14,148) | (14,148) | ||||
Stock awards and exercise of stock options (Note 4) | 656 | 44,366 | (18,851) | 26,171 | ||
Purchases of treasury stock (Note 20) | (92,911) | (92,911) | ||||
Other | (719) | (140) | 119 | (740) | ||
Balance at Dec. 31, 2013 | 32,245 | 481,011 | 686,114 | (752,634) | 2,154 | 448,890 |
Net income | 99,317 | 99,317 | ||||
Dividends paid | (14,255) | (14,255) | ||||
Stock awards and exercise of stock options (Note 4) | 809 | 61,469 | (31,237) | 31,041 | ||
Purchases of treasury stock (Note 20) | (110,019) | (110,019) | ||||
Retirement of warrants | (2,645) | (2,645) | ||||
Other | 283 | (990) | (395) | 129 | (973) | |
Balance at Dec. 31, 2014 | 33,337 | 538,845 | 771,176 | (894,285) | 2,283 | 451,356 |
Net income | 110,274 | 110,274 | ||||
Dividends paid | (15,605) | (15,605) | ||||
Stock awards and exercise of stock options (Note 4) | 648 | 66,077 | (38,257) | 28,468 | ||
Purchases of treasury stock (Note 20) | (59,323) | (59,323) | ||||
Other | (1,916) | (113) | 112 | (1,917) | ||
Balance at Dec. 31, 2015 | $ 33,985 | $ 603,006 | $ 865,845 | $ (991,978) | $ 2,395 | $ 513,253 |
Consolidated Statement Of Chan7
Consolidated Statement Of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statement Of Changes In Stockholders' Equity [Abstract] | |||
Dividends paid per share | $ 0.92 | $ 0.84 | $ 0.76 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 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 CONSOLIDATION The consolidated financial statements include the accounts of Chemed Corporation and its wholly owned subsidiaries. All significant 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. Based upon the guidance provided by the FASB, we have concluded that neither the independent contractors nor the franchisees are VIEs. CASH EQUIVALENTS Cash equivalents comprise short-term, highly liquid investments, including money market funds that have original maturities of three months or less. ACCOUNTS AND LOANS RECEIVABLE Accounts and loans receivable are recorded at the principal balance outstanding less estimated allowances for uncollectible accounts. For the Roto-Rooter segment, allowances for trade accounts receivable are generally provided for accounts more than 90 days past due, although collection efforts continue beyond that time. Due to the small number of loans receivable outstanding, allowances for loan losses are determined on a case-by-case basis. For the VITAS segment, allowances for accounts receivable are provided on accounts based on expected collection rates by payer types. The expected collection rate is based on both historical averages and known current trends. Final write-off of overdue accounts or loans receivable is made when all reasonable collection efforts have been made and payment is not forthcoming. We closely monitor our receivables and periodically review procedures for granting credit to attempt to hold losses to a minimum. We make appropriate provisions to reduce our accounts receivable balance for any governmental or other payer reviews resulting in denials of patient service revenue. We believe our hospice programs comply with all payer requirements at the time of billing. However, we cannot predict whether future billing reviews or similar audits by payers will result in material denials or reductions in revenue. CONCENTRATION OF RISK As of December 31, 2015 and 2014, approximately 49 % and 61 %, respectively, of VITAS’ total accounts receivable balance were due from Medicare and 41 % and 31 %, respectively, of VITAS’ total accounts receivable balance were due from various state Medicaid programs. Combined accounts receivable from Medicare and Medicaid represent approximately 80 % of the consolidated net accounts receivable in the accompanying consolidated balance sheet as of December 31, 2015. As further described in Note 19, we have agreements with one vendor to provide specified pharmacy services for VITAS and its hospice patients. In 2015 and 2014, respectively, purchases made from this vendor represent in excess of 90 % of all pharmacy services used by VITAS. INVENTORIES Substantially all of the inventories are either general merchandise or finished goods. Inventories are stated at the lower of cost or market. 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 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, 2015, were: Buildings and building improvements 10.9 yrs. Transportation equipment 10.8 Machinery and equipment 5.4 Computer software 4.6 Furniture and fixtures 4.8 GOODWILL AND INTANGIBLE ASSETS The table below shows a rollforward of Goodwill (in thousands): Roto- Vitas Rooter Total Balance at December 31, 2013 $ 328,450 $ 138,421 $ 466,871 Business combinations - 198 198 Foreign currency adjustments - (198) (198) Program closing (149) - (149) Balance at December 31, 2014 $ 328,301 $ 138,421 $ 466,722 Business combinations - 5,944 5,944 Foreign currency adjustments - (344) (344) Balance at December 31, 2015 $ 328,301 $ 144,021 $ 472,322 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. The weighted average lives of our identifiable, definite-lived intangible assets at December 31, 2015, were: Covenants not to compete 6.5 yrs. Reaquired franchise rights 6.1 Referral networks 10.0 Customer lists 13.3 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, 2015. 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. 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. REVENUE RECOGNITION Both the VITAS segment and Roto-Rooter segment recognize service revenues and sales when the earnings process has been completed. Generally, this occurs when services are provided or products are delivered. Sales of Roto-Rooter products, including drain cleaning machines and drain cleaning solution, comprise less than 3 % of our total service revenues and sales for each of the three years in the period ended December 31, 2015. CHARITY CARE VITAS provides charity care, in certain circumstances, to patients without charge when management of the hospice program determines that the patient does not have the financial wherewithal to make payment. 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, 2015, 2014 and 2013, was $ 7.6 million, $ 7.3 million and $ 7.5 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. 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 statement of income. GUARANTEES In the normal course of business, Roto-Rooter enters into various guarantees and indemnifications in our relationships with customers and others. These arrangements include guarantees of services for periods ranging from one day to one year and product satisfaction guarantees. At December 31, 2015 and 2014, our accrual for service guarantees and warranty claims was $ 340,000 and $350,000 respectively. 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. The costs of telephone directory listings are expensed when the directories are placed in circulation. These directories are generally in circulation for approximately one year, at which point they are typically replaced by the publisher with a new directory. We generally pay for directory placement assuming it is in circulation for one year. If the directory is in circulation for less than or greater than one year, we receive a credit or additional billing, as necessary. We do not control the timing of when a new directory is placed in circulation. We pay for and expense the cost of internet advertising and placement on a “per click” basis. Advertising expense for the year ended December 31, 2015, was $ 36.4 million (2014 – $ 32.8 million; 2013 - $ 31.0 million). COMPUTATION OF EARNINGS PER SHARE Earnings per share are computed using the weighted average number of shares of capital stock outstanding. Diluted earnings per share reflect the dilutive impact of our outstanding stock options and nonvested stock awards. Stock options whose exercise price is greater than the average market price of our stock are excluded from the computation of diluted earnings per share. 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. INSURANCE 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 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 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. TAXES ON INCOME Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry-forwards 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 laws and rates on the date of enactment. In November 2015, the FASB issued ASU No. 2015-17 which simplifies the balance sheet classification required for deferred tax balances. It allows for a company’s deferred tax assets and liabilities to be netted into a noncurrent account, either asset or liability, by jurisdiction. The ASU is required to be adopted for annual periods beginning after December 15, 2016 and the interim periods within that annual period. Early adoption is permitted. Companies have the choice to adopt prospectively or retrospectively. In order to simplify our balance sheet classification required for deferred tax balances, we adopted the ASU for our annual balance sheet as of December 31, 2015 on a prospective basis. Prior periods have not been retrospectively adjusted. We do not believe that this change results in a material comparability issue between years on our balance sheet We are subject to income taxes in Canada, U.S. federal and most state jurisdictions. Significant judgment 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 18, 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 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. 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 aftertax expenses and adjustments are based on estimates of the effective income tax rates for the applicable segments. CLASSIFICATION ADJUSTMENTS In 2015, we classified $2.1 million of non-cash restricted stock award amortization in selling, general and administrative expenses. We also recorded classifications adjustments of $2.5 million and $3.0 million to decrease amortization and increase selling, general and administrative expenses in our Consolidated Statement of Income for 2014 and 2013, respectively, related to non-cash restricted stock award amortization. This classification adjustment does not impact income from operations, income before income taxes, net income, earnings per share, net cash provided by operating activities or our Consolidated Balance Sheet. We believe the impact of the classification adjustments are immaterial to our consolidated financial statements for the current and prior periods. |
Hospice Revenue Recognition
Hospice Revenue Recognition | 12 Months Ended |
Dec. 31, 2015 | |
Hospice Revenue Recognition [Abstract] | |
Hospice Revenue Recognition | 2. Hospice Revenue Recognition VITAS recognizes revenue at the estimated realizable amount due from third-party payers, which are primarily Medicare and Medicaid. Payers may deny payment for services in whole or in part on the basis that such services are not eligible for coverage and do not qualify for reimbursement. We estimate denials each period and make adequate provision in the financial statements. The estimate of denials is based on historical trends and known circumstances and does not vary materially from period to period on an aggregate basis. Medicare billings are subject to certain limitations, as described below. The allowance for doubtful accounts for VITAS comprises the following (in thousands): Medicare Medicaid Commercial Other Total Beginning Balance January 1, 2013 $ 3,875 $ 5,194 $ 2,204 $ 22 $ 11,295 Bad debt provision 1,901 4,902 2,026 1,992 10,821 Write-offs (1,452) (4,342) (2,877) (1,269) (9,940) Other/Contractual adjustments 490 145 684 (445) 874 Ending Balance December 31, 2014 4,814 5,899 2,037 300 13,050 Bad debt provision 286 8,096 2,969 2 11,353 Write-offs (1,863) (8,089) (2,819) (642) (13,413) Other/Contractual adjustments 562 93 687 (174) 1,168 Ending Balance December 31, 2015 $ 3,799 $ 5,999 $ 2,874 $ (514) $ 12,158 VITAS is subject to certain limitations on Medicare payments for services. Specifically, 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 limi ts on inpatient services in 2015, 2014 or 2013 . VITAS is 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 between November 1 of each year and October 31 of the following year 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. 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 durin g 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 the amount of revenue recognized during the period that will require repayment to the Federal government under the Medicare cap and record the amount as a reduction to service revenue. During the year ended December 31, 2015 we recorded a $165,000 Medicare cap reversal of amounts recorded in the fourth quarter of 2014 for one program’s projected 2015 measurement period liability. During the year ended December 31, 2014 , we recorded a net Medicare cap liability of $1.3 million for two programs’ projected 2014 and 2015 measurement period liability offset by the reversal of one program’s 2011 measurement period projected Medicare cap liability. During the year ended December 31, 2013, we reversed the Medicare cap liability for amounts recorded in the fourth quarter of 2012 for three programs’ projected 2013 measurement period liability. During 2013 this reversal was offset by the Medicare cap liability for two programs’ projected 2014 measurement period liability. The net pretax expense/(income) was ($165,000) , $1.3 million, and $ 7.0 million for fiscal years 2015, 2014 and 2013, respectively. 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 $1.9 million is owed for Medicare cap in two programs arising during the 2013 and 2014 measurement periods. The amounts are automatically deducted from our semi-monthly PIP payments. 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 not recorded a reserve as of December 31, 2015 for the $1.9 million potential exposure. We have appealed CMS’s methodology change with the appropriate regulatory appeal board. Shown below is the Medicare cap liability activity for the years e nded December 31, 2015 and 2014, ( in thousands): 2015 2014 Beginning Balance January 1, $ 6,112 $ 8,260 2015 measurement period (165) 165 2014 measurement period - 1,451 2011 measurement period - (325) Payments (4,782) (3,439) Ending Balance December 31, $ 1,165 $ 6,112 |
Long-Term Debt and Lines of Cre
Long-Term Debt and Lines of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt and Lines of Credit [Abstract] | |
Long-Term Debt and Lines Of Credit | 3. Long-Term Debt and Lines of Credit On May 15, 2014, we retired our Senior Convertible Notes (the “Notes”) outstanding. We paid the $187.0 million of principal outstanding using a combination of cash on hand and our existing revolving credit facility. In addition, we issued 249,000 Chemed shares in conjunction with the conversion feature of the Notes. At the time we issued the Notes, we had entered into a purchased call transaction to offset any potential economic dilution resulting from the conversion feature in the Notes. As a result, we received 266,000 Chemed shares from the exercise of the purchased call transaction. The issuance of shares under the conversion feature of the Notes, as well as the receipt of shares from the purchased call transaction were recorded as adjustments to paid-in capital during 2014. At the time we issued the Notes we also sold warrants for the right to purchase approximately 2,477,000 Chemed shares in the future. During 2014, we settled these warrants with one counterparty representing half of the total warrants issued for $2.6 million in cash. The amount paid was recorded as an adjustment to paid-in capital. During 2014, Chemed’s stock price exceeded the exercise price of the remaining outstanding sold warrants resulting in the Company, on December 8, 2014, issuing 35,166 of common shares to the other counterparty in full settlement of the warrants. Pursuant to authoritative guidance, the settlement of the sold warrants was accounted for as an equity transaction. On June 30, 2014, we replaced our existing credit agreement with the Third Amended and Restated Credit Agreement (“2014 Credit Agreement”). Terms of the 2014 Credit Agreement consist of a five -year, $350 million revolving credit facility and a $100 million term loan. The 2014 Credit Agreement has a floating interest rate that is currently LIBOR plus 113 basis points . The debt outstanding at December 31, 2015 and 2014 consists of the following (in thousands): December 31, 2015 2014 Revolver $ - $ 50,000 Term loan 91,250 97,500 Total 91,250 147,500 Current portion of term loan (7,500) (6,250) Long-term debt $ 83,750 $ 141,250 Scheduled principal payments of the term loan are as follows: 2016 $ 7,500 2017 8,750 2018 10,000 2019 65,000 $ 91,250 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): 2015 $ 2,988 2014 4,322 2013 4,744 Debt issuance costs associated with the existing credit agreement were not written off as the lenders and their relative percentage participation in the facility did not change. With respect to the 2014 Credit Agreement, deferred financing costs were $0.9 million. The 2014 Credit Agreement contains the following quarterly financial covenants: Description Requirement Chemed Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA) < 3.50 to 1.00 0.54 to 1.00 Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges) > 1.50 to 1.00 2.18 to 1.00 Annual Operating Lease Commitment < $50.0 million $25.5 million We are in compliance with all debt covenants as of December 31, 2015. We have issued $37.8 million in standby letters of credit as of December 31, 2015 for insurance purposes. Issued letters of credit reduce our available credit under the 2014 Credit Agreement. As of December 31, 2015, we have approximately $312.2 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, 2015 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 4. Stock-Based Compensation Plans We have three stock incentive plans under which 6.8 million shares can 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 evenly annually over a three -year period. Those granted in 2015 have a contractual life of 5 years; those granted prior to 2015 have a contractual life of 10 years. Restricted stock awards granted in 2015 vest ratably annually over a three year period; previous restricted stock awards generally cliff vest over a three - or four -year period. 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 targets or market targets. Upon achievement of targets, PSUs are converted to unrestricted shares of Capital 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 2015, the CIC granted 4,437 unrestricted shares of Capital stock to the Company’s outside directors. PERFORMANCE AWARDS In November 2013, February 2014 and February 2015, the CIC granted PSUs contingent upon the achievement of certain total stockholder return (“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 November 2013, February 2014, and February 2015, the CIC granted PSUs contingent on the achievement of certain earnings per share (“EPS”) targets over the three-year measurement period. At the end of each reporting period, we estimate the number of shares we believe will ultimately vest and record that expense over the service period of the award. Comparative data for the PSUs include: 2015 Awards 2014 Awards 2013 Awards TSR Awards Shares granted 10,761 10,340 16,149 Per-share fair value $ 142.55 $ 112.60 $ 139.51 Volatility 25.2% 30.8% 21.2% Risk-free interest rate 0.93% 0.33% 0.25% EPS Awards Shares granted 10,761 14,061 16,149 Per-share fair value $ 113.14 $ 82.80 $ 139.51 Common Assumptions Service period (years) 2.9 2.9 2.2 Three-year measurement period ends December 31, 2017 2016 2015 The following table summarizes total stock option , stock award and PSU activity during 2015 : Stock Options Stock Awards Performance Units (PSUs) Weighted Average Aggregate Weighted Number of Weighted Remaining Intrinsic Average Nonvested Average Number of Exercise Contractual Value Number of Grant-Date Target Grant-Date Options Price Life (Years) (thousands) Awards Price Units Price Outstanding at January 1, 2014 1,768,174 $ 73.14 140,510 $ 67.71 56,699 $ 81.91 Granted 422,750 157.36 36,987 121.75 21,522 127.85 Exercised/Vested (611,786) 62.03 (80,011) 68.36 - - Canceled/ Forfeited (15,263) 89.64 (754) 79.50 (1,845) 98.56 Outstanding at December 31, 2015 1,563,875 100.09 6.3 $ 82,056 96,732 87.75 76,376 94.45 Vested and expected to vest at December 31, 2015 1,563,875 100.09 6.3 82,056 96,732 87.75 127,061 * 97.68 Exercisable at December 31, 2015 768,261 70.41 6.1 61,756 n.a. n.a. n.a. n.a. * Amount includes 46,610 share units which vested and were converted to Capital Stock and distributed in the first quarter of 2016. The shares that vested in 2016 had a weighted average grant-date fair value of $71.69 per share and an estimated fair value of $139.51 . We estimate the fair value of stock options using the Black-Scholes valuation model. We determine expected term, volatility, 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 option s, stock award s and PSUs include (in thousands, except per-share amounts): Years Ended December 31, 2015 2014 2013 Total compensation cost of stock-based compensation plans charged against income $ 14,737 $ 10,323 $ 10,868 Total income tax benefit recognized in income for stock based compensation plans 5,416 3,794 3,994 Total intrinsic value of stock options exercised 45,600 26,344 16,922 Total intrinsic value of stock awards vested during the period 12,065 4,564 4,298 Per-share weighted averaged grant-date fair value of stock awards granted 121.75 88.48 77.13 The assumptions we used to value stock option grants are as follows: 2015 2014 2013 Stock price on date of issuance $157.36 $106.59 $70.30 Grant date fair value per share $29.46 $21.58 $14.79 Number of options granted 422,750 410,800 392,274 Expected term (years) 4.0 4.8 4.9 Risk free rate of return 1.57% 1.59% 1.39% Volatility 22.20% 22.60% 24.90% Dividend yield 0.6% 0.8% 1.1% Forfeiture rate - - - Other data for stock options, stock awards and PSUs for 2015 include (dollar amounts in thousands): Stock Stock Options Awards PSUs Total unrecognized compensation related to nonvested options, stock awards and PSUs at the end of year $ 18,421 $ 3,849 $ 3,515 Weighted average period over which unrecognized compensation cost of nonvested options, stock awards and PSUs to be recognized (years) 2.4 2.1 1.7 Actual income tax benefit realized from options exercised or stock awards and PSUs vested $ 16,786 $ 3,667 $ 2,397 Aggregate intrinsic value of stock options, stock awards and PSUs vested and expected to vest $ 82,056 $ 14,586 $ 19,160 EMPLOYEE STOCK PURCHASE PLAN (“ESPP”) The ESPP allows eligible participants to purchase our shares through payroll deductions at current market value. We pay administrative and broker fees associated with the ESPP. Shares 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, 2015 | |
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 72 % and 28 %, respectively, in 2015 and 73 % and 27 %, respectively, in 2014. The vast majority of our service revenues and sales from continuing operations are generated from business within the United States. 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. Accordingly, the reportable segments are defined as follows: · The VITAS segment provides hospice services for patients with terminal illnesses. This type of care is aimed at making the terminally ill patient’s end of life as comfortable and pain-free as possible. Hospice care is available to patients who have been initially certified or re-certified as terminally ill (i.e., a prognosis of six months or less) by their attending physician, if any, and the hospice physician. VITAS offers all levels of hospice care in a given market, including routine home care, inpatient care and continuous care. Over 90 % of VITAS’ revenues are derived through the Medicare and Medicaid reimbursement programs. · The Roto-Rooter segment provides repair and maintenance services to residential and commercial accounts using the Roto-Rooter registered service marks. Such services include plumbing, drain cleaning and water restoration. They are delivered through company-owned and operated territories, independent contractor-operated territories and franchised locations. This segment also manufactures and sells products and equipment used to provide such services. · 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, 2015 2014 2013 Revenues by Type of Service VITAS Routine homecare $ 865,145 $ 810,413 $ 791,735 Continuous care 150,802 152,206 155,409 General inpatient 99,439 102,876 104,968 Medicare cap 165 (1,290) (6,999) Total segment 1,115,551 1,064,205 1,045,113 Roto-Rooter Sewer and drain cleaning 142,562 141,078 141,283 Plumbing repair and maintenance 188,065 174,993 168,942 Independent contractors 37,966 36,496 33,030 Water restoration 38,163 18,480 3,042 Other products and services 21,081 21,030 21,919 Total segment 427,837 392,077 368,216 Total service revenues and sales $ 1,543,388 $ 1,456,282 $ 1,413,329 Aftertax Segment Earnings/(Loss) VITAS $ 93,346 $ 86,185 $ 76,144 Roto-Rooter 48,573 42,075 29,243 Total 141,919 128,260 105,387 Corporate (31,645) (28,943) (28,160) Net income $ 110,274 $ 99,317 $ 77,227 Interest Income VITAS $ 7,740 $ 6,111 $ 5,038 Roto-Rooter 3,425 2,931 2,096 Total 11,165 9,042 7,134 Corporate - 10 56 Intercompany eliminations (10,884) (9,081) (6,343) Total interest income $ 281 $ (29) $ 847 Interest Expense VITAS $ 200 $ 207 $ 182 Roto-Rooter 348 363 322 Total 548 570 504 Corporate 3,097 7,616 14,531 Total interest expense $ 3,645 $ 8,186 $ 15,035 Income Tax Provision VITAS $ 56,675 $ 53,278 $ 46,910 Roto-Rooter 29,630 25,808 17,560 Total 86,305 79,086 64,470 Corporate (16,453) (15,649) (17,868) Total income tax provision $ 69,852 $ 63,437 $ 46,602 Identifiable Assets VITAS $ 523,717 $ 546,031 $ 518,316 Roto-Rooter 255,192 251,407 241,679 Total 778,909 797,438 759,995 Corporate 73,416 62,494 133,706 Total identifiable assets $ 852,325 $ 859,932 $ 893,701 For the Years Ended December 31, 2015 2014 2013 Additions to Long-Lived Assets VITAS $ 23,278 $ 21,880 $ 16,219 Roto-Rooter 26,476 21,595 15,202 Total 49,754 43,475 31,421 Corporate 995 346 160 Total additions to long-lived assets $ 50,749 $ 43,821 $ 31,581 Depreciation and Amortization VITAS $ 19,547 $ 19,048 $ 19,534 Roto-Rooter 13,360 10,975 9,273 Total 32,907 30,023 28,807 Corporate 592 578 535 Total depreciation and amortization $ 33,499 $ 30,601 $ 29,342 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | 6. Intangible Assets Amortization of definite-lived intangible asset s for t he years ended December 31, 2015, 2014, 2013, was $ 1.1 million , $720,000 and $ 1.6 million, respectively. The following is a schedule by year of projected amortization expense for definite-lived intangible assets (in thousands): 2016 $ 359 2017 169 2018 122 2019 96 2020 66 Thereafter 59 The balance in identifiable intangible assets comprises the following (in thousands): Gross Accumulated Net Book Asset Amortization Value December 31, 2015 Referral networks $ 21,729 $ (21,473) $ 256 Covenants not to compete 9,533 (9,220) 313 Customer lists 1,215 (1,215) - Reaquired franchise rights 1,260 (958) 302 Subtotal - definite-lived intangibles 33,737 (32,866) 871 VITAS trade name 51,300 - 51,300 Rapid Rooter trade name 150 - 150 Operating licenses 2,790 - 2,790 Total $ 87,977 $ (32,866) $ 55,111 December 31, 2014 Referral networks $ 22,599 $ (21,626) $ 973 Covenants not to compete 9,575 (9,209) 366 Customer lists 1,219 (1,194) 25 Reaquired franchise rights 1,106 (743) 363 Subtotal - definite-lived intangibles 34,499 (32,772) 1,727 VITAS trade name 51,300 - 51,300 Rapid Rooter trade name 150 - 150 Operating licenses 2,850 - 2,850 Total $ 88,799 $ (32,772) $ 56,027 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | 7. Business Combinations During 2015, we completed two business combination s of former franchisees within the Roto-Rooter segment for $ 6.6 million in cash to increase our market penetration in Pennsylvania and Nebraska. The purchase price of these acquisition s was allocated as follows (in thousands): Identifiable intangible assets $ 213 Goodwill 5,944 Other assets and liabilities - net 457 $ 6,614 During 2014, we completed one business combination of a former franchisee within the Roto-Rooter segment for $250,000 in cash to increase our market penetration in Idaho. The purchase price of this acquisition was allocated as follows (in thousands): Identifiable intangible assets $ 47 Goodwill 198 Other assets and liabilities - net 5 $ 250 During 2013, we completed one business combination of a former franchisee within the Roto-Rooter segment for $756,000 in cash to increase our market penetration in Colorado. We made one acquisition within the VITAS segment for $1.5 million in cash to increase our market penetration in Houston, Texas during 2013. The purchase price of these acquisitions was allocated as follows (in thousands): Identifiable intangible assets $ 1,023 Goodwill 1,212 Other assets and liabilities - net 22 $ 2,257 The unaudited pro forma results of operations, assuming purchase business combinations completed in 2015 and 2014 were completed on January 1, 2014, do not materially impact the accompanying consolidated financial statements. The results of operations of each of the above business combinations are included in our results of operations from the date of the respective acquisition. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 8. Discontinued Operations At D ecember 31, 2015 and 2014 , 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 2015 balance, $ 826,000 is included in other current liabilities and $ 901,000 is included in other liabilities (long-t erm). The estimated amounts and timing of payments of these liabilities follows (in thousands): 2016 $ 826 2017 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, 2015 | |
Cash Overdrafts And Cash Equivalents [Abstract] | |
Cash Overdrafts And Cash Equivalents | 9. Cash Overdrafts and Cash Equivalents Included in accounts payable are cash overdrafts of $ 9.3 million and $ 10.5 million as of December 31, 2015 and 2014 , 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 . We had $ 76,000 in cash equ ivalents as of December 31, 2015 . There was $ 80,000 in cash equ ivalents as of December 31, 2014 . The weighted average rate of return for our cash equivalents was 0.20 % in 2015 and 0.06 % in 2014 . |
Other Income_(Expense)-Net
Other Income/(Expense)-Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income/(Expense)-Net [Abstract] | |
Other Income/(Expense)-Net | 10. Other Income /(expense) —Net Other income /(expense) —net from continuing operations comprises the following (in thousands): For the Years Ended December 31, 2015 2014 2013 Market value gains related to deferred compensation trusts $ 148 $ 3,118 $ 4,982 Loss on disposal of property and equipment (698) (640) (320) Interest income/ (expense) 281 (29) 847 Other - net (418) 72 (39) Total other income/(expense) $ (687) $ 2,521 $ 5,470 The offset for market value gains or losses of the deferred compensation trust are recorded in selling, general and administrative expenses. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes The provision for income taxes comprises the following (in thousands): For the Years Ended December 31, 2015 2014 2013 Current U.S. federal $ 55,026 $ 48,577 $ 45,348 U.S. state and local 8,104 7,285 7,731 Foreign 397 597 511 Deferred U.S. federal, state and local 6,323 6,970 (6,995) Foreign 2 8 7 Total $ 69,852 $ 63,437 $ 46,602 A summary of the temporary differences that give rise to deferred tax assets/ (liabilities) follows (in thousands): December 31, 2015 2014 Accrued liabilities $ 39,529 $ 37,879 Stock compensation expense 8,555 11,591 Allowance for uncollectible accounts receivable 1,729 2,779 State net operating loss carryforwards 1,701 1,603 Other 896 807 Deferred income tax assets 52,410 54,659 Amortization of intangible assets (50,136) (47,946) Accelerated tax depreciation (18,030) (15,641) Currents assets (1,576) (1,519) State income taxes (1,465) (698) Market valuation of investments (1,375) (2,346) Other (857) (1,023) Deferred income tax liabilities (73,439) (69,173) Net deferred income tax liabilities $ (21,029) $ (14,514) At December 31, 2015 and 2014, state net operating loss carryforwards were $34.0 million and $31.8 million, respectively. These net operating losses will expire, in varying amounts, between 2022 and 2035. 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): 2015 2014 2013 Balance at January 1, $ 980 $ 892 $ 2,646 Unrecognized tax benefits due to positions taken in current year 260 247 219 Decrease due to expiration of statute of limitations (188) (159) (1,973) Balance at December 31, $ 1,052 $ 980 $ 892 We file tax returns in the U.S. federal jurisdiction and various states. T he years ended December 31, 2012 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, 2010. 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, 2015 and 2014, we have approximately $125,000 and $123,000 , 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, 2015 2014 2013 Income tax provision calculated using the statutory rate of 35% $ 63,044 $ 56,964 $ 43,340 State and local income taxes, less federal income tax effect 5,787 5,536 4,323 Uncertain tax position adjustments - - (1,782) Nondeductible expenses 1,438 1,290 1,250 Other --net (417) (353) (529) Income tax provision $ 69,852 $ 63,437 $ 46,602 Effective tax rate 38.8 % 39.0 % 37.6 % Summarized below are the total amounts of income taxes paid during the years ended December 31 (in thousands): 2015 $ 62,928 2014 44,921 2013 55,827 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 all of these businesses rather than to effect a tax-free liquidation, additional taxes amounting to approximately $ 12.9 million would be incurred based on current income tax rates. |
Properties And Equipment
Properties And Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Properties And Equipment [Abstract] | |
Properties And Equipment | 12. Properties and Equipment A summary of properties and equipment follows (in thousands): December 31, 2015 2014 Land $ 5,365 $ 4,261 Buildings and building improvements 64,440 61,401 Transportation equipment 31,077 26,904 Machinery and equipment 83,293 77,273 Computer software 45,414 51,564 Furniture and fixtures 71,894 66,248 Projects under development 16,981 3,420 Total properties and equipment 318,464 291,071 Less accumulated depreciation (201,094) (185,735) Net properties and equipment $ 117,370 $ 105,336 The net book value of comput er software at December 31, 2015 and 2014 , was $ 8.3 million and $ 10.5 million, respectively. Depreciation expense for computer software was $ 3.9 million, $ 4.4 million and $ 3.9 million for t he years ended December 31, 2015, 2014 and 2013 , respectively. |
Lease Arrangements
Lease Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Lease Arrangements [Abstract] | |
Lease Arrangements | 13. Lease Arrangements We have operating leases that cover our corporate office headquarters, various warehouse and office facilities, office equipment and transportation equipment. The remaining terms of these leases range from monthly to eleven years, and in most cases we expect that these leases will be renewed or replaced by other leases in the normal course of business. We have no significant capita l leases as of December 31, 2015 or 2014 . The following is a summary of future minimum rental payments and sublease rentals to be received under operating leases that have initial or remaining noncancelable terms in excess of one year at December 31, 2015 (in thousands): 2016 $ 21,679 2017 15,815 2018 12,420 2019 8,697 2020 6,189 Thereafter 14,294 Total minimum rental payments $ 79,094 Total rental expense incurred under operating leases for continuing operations follows (in thousands): For the Years Ended December 31, 2015 2014 2013 Total rental expense $ 40,021 $ 39,606 $ 38,992 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 $ 11,970 $ 13,838 $ 14,511 These expenses include the impact of market gains and losses on assets held in deferred compensation plans. 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. 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, 2015 , these trusts held 99,309 shares at historical average cost or $ 2.4 mil lion of our stock (2014 – 99,231 shares or $ 2.3 million). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 5. 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 2015 Earnings $ 110,274 16,870 $ 6.54 Dilutive stock options - 394 Nonvested stock awards - 158 Diluted earnings $ 110,274 17,422 $ 6.33 2014 Earnings $ 99,317 17,165 $ 5.79 Dilutive stock options - 412 Nonvested stock awards - 149 Conversion of Notes and impact of warrants outstanding - 114 Diluted earnings $ 99,317 17,840 $ 5.57 2013 Earnings $ 77,227 18,199 $ 4.24 Dilutive stock options - 278 Nonvested stock awards - 108 Diluted earnings $ 77,227 18,585 $ 4.16 During 2015 , 422,000 stock options were excluded from the computation of diluted earnings per share as their exercise prices were greater than the average market price durin g most of the year. During 2014 , 411,000 stock options were also excluded. During 2013 , 358,000 stock options were also excluded. In 2014, diluted earnings per share was impacted by the issuance of 249,000 shares of capital stock under the conversion feature of our 1.875% Senior Convertible Notes (the “Notes”) on May 15, 2014. The dilutive impact of this conversion feature for 2014 was 102,000 shares. At the time we issued the Notes, as discussed in Note 3, we also sold warrants for the right to purchase approximately 2,477,000 Chemed shares in the future. During the quarter ended June 30, 2014, we settled these warrants with one counterparty representing half of the total warrants issued for $ 2.6 million. The amount paid was recorded as an adjustment to paid-in capital. During the third quarter of 2014, Chemed’s stock price exceeded the exercise price of the remaining outstanding sold warrants resulting in the Company, on December 8, 2014, issuing 35,166 of Capital shares to the other counterparty in full settlement of the warrants. Pursuant to authoritative guidance, the settlement of the sold warrants were accounted for as an equity transactions. The dilutive impact of the warrants was 12,000 shares for the year ended December 31, 2014. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 (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 $ 49,481 $ 49,481 $ - $ - Long-term debt and current portion of long-term debt 91,250 - 91,250 - The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2014 (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 $ 49,147 $ 49,147 $ - $ - Long-term debt 147,500 - 147,500 - 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. |
Loans Receivable from Independe
Loans Receivable from Independent Contractors | 12 Months Ended |
Dec. 31, 2015 | |
Loans Receivable from Independent Contractors [Abstract] | |
Loans Receivable from Independent Contractors | 17. Loans Receivable from Independent Contractors At December 31, 2015 , we had contractual arrangements with 69 independent contractors to provide plumbing repair , drain cleaning and water restoration services under sublicensing agreements using the Roto-Rooter name in lesser-populated areas of the United States and Canada. The arrangements give the independent contractors the right to conduct a plumbing, drain cleaning and water restoration business using the Roto-Rooter name in a specified territory in exchange for a royalty based on a percentage of labor sales, depending upon type of service this percentage ranges between 27% – 32% . We also pay for certain telephone directory advertising and internet marketing in these areas, lease certain capital equipment and provide operating manuals to serve as resources for operating a plumbing , drain cleaning and water restoration business. The contracts are generally cancelable upon 90 days’ written notice (without cause) or upon a few days notice (with cause). The independent contractors are responsible for running the businesses as they believe best. Our maximum exposure to loss from arrangements with our independent contractors at December 31, 2015, is approximately $ 1.8 million (2014 - $ 1.6 million). The exposure to loss is mainly the result of loans provided to the independent contractors. In most cases, these loans are partially secured by receivables and equipment owned by the independent contractor. The interest rates on the loans range from zero to 7 % per annum, and the remaining terms of the loans range from 2.5 months to 5.4 years at D ecember 31, 2015 . We recorded the following from our independent contractors (in thousands): For the Years Ended December 31, 2015 2014 2013 Revenues $ 37,966 $ 36,496 $ 33,030 Pretax profits 22,176 21,238 17,726 |
Legal And Regulatory Matters
Legal And Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Legal And Regulatory Matters [Abstract] | |
Legal And Regulatory Matters | 18. 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, 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. 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 estimable. Regulatory Matters and Litigation On May 2, 2013, the government filed a False Claims Act complaint against the Company and certain of its hospice-related subsidiaries in the U.S. District Court for the Western District of Missouri, United States v. VITAS Hospice Services, LLC, et al. , No. 4:13-cv-00449-BCW (the “2013 Action”). Prior to that date, the Company received various qui tam lawsuits and subpoenas from the U.S. Department of Justice and OIG that have been previously disclosed. The 2013 Action alleges that, since at least 2002, VITAS, and since 2004, the Company, submitted or caused the submission of false claims to the Medicare program by (a) billing Medicare for continuous home care services when the patients were not eligible, the services were not provided, or the medical care was inappropriate, and (b) billing Medicare for patients who were not eligible for the Medicare hospice benefit because they did not have a life expectancy of six months or less if their illnesses ran their normal course. This complaint seeks treble damages, statutory penalties, and the costs of the action, plus interest. The defendants filed a motion to dismiss on September 24, 2013. On September 30, 2014, the Court denied the motion, except to the extent that claims were filed before July 24, 2002. On November 13, 2014, the government filed a Second Amended Complaint. The Second Amended Complaint changed and supplemented some of the allegations, but did not otherwise expand the causes of action or the nature of the relief sought against VITAS. VITAS filed its Answer to the Second Amended Complaint on August 11, 2015. The Company is not able to reasonably estimate the probability of loss or range of loss at this time. For additional procedural history of this litigation, please refer to our prior quarterly and annual filings. The net costs incurred related to U.S. v. Vitas and related regulatory matters were $5.0 million, $2.1 million and $2.1 million for 2015, 2014 and 2013 respectively. In November 2013, two shareholder derivative lawsuits were filed against the Company’s current and former directors, as well as certain of its officers, both of which are covered by the Company’s commercial insurance. On November 6, 2013, KBC Asset Management NV filed suit in the United States District Court for the District of Delaware, KBC Asset Management NV, derivatively on behalf of Chemed Corp. v. McNamara, et al. , No. 13 Civ. 1854 (LPS) (D. Del.). It sued Kevin McNamara, Joel Gemunder, Patrick Grace, Thomas Hutton, Walter Krebs, Andrea Lindell, Thomas Rice, Donald Saunders, Arthur Tucker, Jr., George Walsh III, Frank Wood, Timothy O’Toole, David Williams and Ernest Mrozek, together with the Company as nominal defendant. Plaintiff alleges that since at least 2004, Chemed, through VITAS, has submitted or caused the submission of false claims to Medicare. The suit alleges a claim for breach of fiduciary duty against the individual defendants, and seeks (a) a declaration that the individual defendants breached their fiduciary duties to the Company; (b) an order requiring those defendants to pay compensatory damages, restitution and exemplary damages, in unspecified amounts, to the Company; (c) an order directing the Company to implement new policies and procedures; and (d) costs and disbursements incurred in bringing the action, including attorneys’ fees. On November 14, 2013, Mildred A. North filed suit in the United States District Court for the Southern District of Ohio, North, derivatively on behalf of Chemed Corp. v. Kevin McNamara, et al. , No. 13 Civ. 833 (MDB) (S.D. Ohio). She sued Kevin McNamara, David Williams, Timothy O’Toole, Joel Gemunder, Patrick Grace, Walter Krebs, Andrea Lindell, Thomas Rice, Donald Saunders, George Walsh III, Frank Wood and Thomas Hutton, together with the Company as nominal defendant. Plaintiff alleges that, between February 2010 and the present, the individual defendants breached their fiduciary duties as officers and directors of Chemed by, among other things, (a) allegedly causing VITAS to submit improper and ineligible claims to Medicare and Medicaid; and (b) allegedly misrepresenting the state of Chemed’s internal controls. The suit alleges claims for breach of fiduciary duty, abuse of control and gross mismanagement against the individual defendants. The complaint also alleges unjust enrichment and insider trading against Messrs. McNamara, Williams and O’Toole. Plaintiff seeks (a) a declaration that the individual defendants breached their fiduciary duties to the Company; (b) an order requiring those defendants to pay compensatory damages, restitution and exemplary damages, in unspecified amounts, to the Company; (c) an order directing the Company to implement new policies and procedures; and (d) costs and disbursements incurred in bringing the action, including attorneys’ fees. On January 29, 2014 defendants in North filed a motion to transfer that case to Delaware under 28 U.S.C § 1404(a). On February 12, 2014, defendants in KBC filed a motion to dismiss that case pursuant to Federal Rules of Civil Procedure 23.1 and 12(b)(6). On September 19, 2014, the Ohio court granted defendants’ motion to transfer North to Delaware. Following that decision and in light of that transfer, on September 29, 2014, the Delaware court denied without prejudice defendants’ motion to dismiss KBC, and referred both cases to Magistrate Judge Burke. On October 15, 2014, Plaintiff KBC filed a motion to consolidate KBC with North . On February 2, 2015 the court granted the motion for consolidation in full, appointing Plaintiff KBC the sole lead plaintiff and its counsel, the sole lead and liaison counsel. The court ordered that both cases will proceed under the caption In re Chemed Corp. Shareholder and Derivative Litigation , No. 13 Civ. 1854 (LPS) (CJB) (D. Del.). Plaintiff KBC has designated its pending complaint as the operative complaint in the consolidated proceedings. Defendants subsequently renewed their motion to dismiss those claims and allegations. On December 23, 2015, Magistrate Judge Burke issued a Report & Recommendation recommending that (1) defendants’ motion to dismiss be granted; (2) plaintiff be given 14 days from the date of affirmance by the district court to file an amended complaint addressing deficiencies with regard to their duty of loyalty claim; and (3) failure to do so should give rise to dismissal with prejudice. The Report and Recommendation remains subject to review and affirmance by the district court judge overseeing the matter. On January 11, 2016, Lead Plaintiff KBC filed Objections to the Report and Recommendations. Defendants responses to those Objections were filed on January 28, 2016. The Company intends to defend vigorously against the allegations in each of the above lawsuits. Regardless of the outcome of any of the preceding matters, responding to the subpoenas and dealing with the various regulatory agencies and opposing parties can adversely affect us through defense costs, potential payments, 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. |
Concentration Of Risk
Concentration Of Risk | 12 Months Ended |
Dec. 31, 2015 | |
Concentration Of Risk [Abstract] | |
Concentration Of Risk | 19. Concentration of Risk VITAS has pharmacy services agreements (“Agreements”) with Enclara Pharmacia (previously Hospice Pharmacia) whereby Enclara provides specified pharmacy services for VITAS and its hospice patients in geographical areas served by both VITAS and Enclara. VITAS made purchases from Enclara of $ 37.7 million, $ 35.6 million and $ 39.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. For the years ended December 31, 2015, 2014 and 2013, respectively, purchases from this vendor represent approximately 90 % of all pharmacy services used by VITAS. VITAS’ accounts payable to Enclara was $ 3.0 million at December 31, 2015. At December 31, 2014, VITAS’ accounts payable to Enclara was $3.6 million. |
Capital Stock Transactions
Capital Stock Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Capital Stock Transactions [Abstract] | |
Capital Stock Transactions | 20. Capital Stock Transactions In March 2015 , our Board of Directors authorized an additional $100 million for stock repurchase under the Febru ary 2011 repurchase program. We repurchased the following capital stock: For the Years Ended December 31, 2015 2014 2013 Total cost of repurchased shares (in thousands): $ 59,323 $ 110,019 $ 92,911 Shares repurchased 460,765 1,182,934 1,356,344 Weighted average price per share $ 128.75 $ 93.01 $ 68.50 |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Other Operating Expenses [Abstract] | |
Other Operating Expenses | 21. Other Operating Expenses (in thousands): December 31, 2013 Litigation settlement of VITAS segment $ 10,500 Settlements of Roto-Rooter segment 15,721 Total other operating expenses $ 26,221 |
Recent Accounting Statements
Recent Accounting Statements | 12 Months Ended |
Dec. 31, 2015 | |
Recent Accounting Statements [Abstract] | |
Recent Accounting Statements | 22. Recent Accounting Statements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update “ASU No. 2014-09 – Revenue from Contracts with Customers” which provides additional guidance to clarify the principles for recognizing revenue. The standard will also be used to develop a common revenue standard for removing inconsistencies and weaknesses, improve comparability, provide more useful information to users through improved disclosure requirements, and simplify the preparation of financial statements. The guidance is effective for fiscal years beginning after December 15, 2017. We are currently evaluating the impact of this ASU on our existing revenue recognition policies and disclosures. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “ASU No. 2014-15 - Presentation of Financial Statements-Going Concern”. ASU 2014-15 is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for us for the annual period ending December 31, 2016 and interim periods thereafter. We do not expect the adoption of this standard to have a material impact on our consolidated financial position, results of operations or cash flows. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, “ASU No. 2015-03 – Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. ASU 2015-03 is intended to simplify the presentation of debt issuance costs. Under the new guidance, debt issuance costs will be presented as a direct deduction from the carrying value of the associated debt, consistent with the existing presentation of a debt discount. This guidance is effective for us for the annual period beginning after December 15, 2015. We do not expect the adoption of this standard to have a material impact on our consolidated financial position, results of operations or cash flows. In August 2015, the FASB issued Accounting Standards Update No. 2015-15, “ASU No. 2015-15- Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements”. This Accounting Standards Update adds SEC paragraphs pursuant to the SEC Staff Accouncement at the June 18, 2015 Emerging Issues Task Force (EITF) meeting. Given the absence of authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We do not expect this interpretation to have a material impact on our consolidated financial position, results of operations or cash flows. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts | SCHEDULE II CHEMED CORPORATION AND SUBSIDIARY COMPANIES VALUATION AND QUALIFYING ACCOUNTS (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 2015 $ (14,728) $ (14,435) $ (1,169) $ 17,088 $ (13,244) For the year 2014 $ (12,590) $ (13,079) $ (840) $ 11,781 $ (14,728) For the year 2013 $ (10,892) $ (10,690) $ (1,318) $ 10,310 $ (12,590) (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 sheet as a reduction of accounts receivable . S-3 |
Summary Of Significant Accoun31
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
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 Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Chemed Corporation and its wholly owned subsidiaries. All significant 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. Based upon the guidance provided by the FASB, we have concluded that neither the independent contractors nor the franchisees are VIEs. |
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. |
Accounts And Loans Receivable | ACCOUNTS AND LOANS RECEIVABLE Accounts and loans receivable are recorded at the principal balance outstanding less estimated allowances for uncollectible accounts. For the Roto-Rooter segment, allowances for trade accounts receivable are generally provided for accounts more than 90 days past due, although collection efforts continue beyond that time. Due to the small number of loans receivable outstanding, allowances for loan losses are determined on a case-by-case basis. For the VITAS segment, allowances for accounts receivable are provided on accounts based on expected collection rates by payer types. The expected collection rate is based on both historical averages and known current trends. Final write-off of overdue accounts or loans receivable is made when all reasonable collection efforts have been made and payment is not forthcoming. We closely monitor our receivables and periodically review procedures for granting credit to attempt to hold losses to a minimum. We make appropriate provisions to reduce our accounts receivable balance for any governmental or other payer reviews resulting in denials of patient service revenue. We believe our hospice programs comply with all payer requirements at the time of billing. However, we cannot predict whether future billing reviews or similar audits by payers will result in material denials or reductions in revenue. |
Concentration Of Risk | CONCENTRATION OF RISK As of December 31, 2015 and 2014, approximately 49 % and 61 %, respectively, of VITAS’ total accounts receivable balance were due from Medicare and 41 % and 31 %, respectively, of VITAS’ total accounts receivable balance were due from various state Medicaid programs. Combined accounts receivable from Medicare and Medicaid represent approximately 80 % of the consolidated net accounts receivable in the accompanying consolidated balance sheet as of December 31, 2015. As further described in Note 19, we have agreements with one vendor to provide specified pharmacy services for VITAS and its hospice patients. In 2015 and 2014, respectively, purchases made from this vendor represent in excess of 90 % of all pharmacy services used by VITAS. |
Inventories | INVENTORIES Substantially all of the inventories are either general merchandise or finished goods. Inventories are stated at the lower of cost or market. 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 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, 2015, were: Buildings and building improvements 10.9 yrs. Transportation equipment 10.8 Machinery and equipment 5.4 Computer software 4.6 Furniture and fixtures 4.8 |
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, 2013 $ 328,450 $ 138,421 $ 466,871 Business combinations - 198 198 Foreign currency adjustments - (198) (198) Program closing (149) - (149) Balance at December 31, 2014 $ 328,301 $ 138,421 $ 466,722 Business combinations - 5,944 5,944 Foreign currency adjustments - (344) (344) Balance at December 31, 2015 $ 328,301 $ 144,021 $ 472,322 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. The weighted average lives of our identifiable, definite-lived intangible assets at December 31, 2015, were: Covenants not to compete 6.5 yrs. Reaquired franchise rights 6.1 Referral networks 10.0 Customer lists 13.3 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, 2015. 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. |
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. |
Revenue Recognition | REVENUE RECOGNITION Both the VITAS segment and Roto-Rooter segment recognize service revenues and sales when the earnings process has been completed. Generally, this occurs when services are provided or products are delivered. Sales of Roto-Rooter products, including drain cleaning machines and drain cleaning solution, comprise less than 3 % of our total service revenues and sales for each of the three years in the period ended December 31, 2015. |
Charity Care | CHARITY CARE VITAS provides charity care, in certain circumstances, to patients without charge when management of the hospice program determines that the patient does not have the financial wherewithal to make payment. 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, 2015, 2014 and 2013, was $ 7.6 million, $ 7.3 million and $ 7.5 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. |
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 statement of income. |
Guarantees | GUARANTEES In the normal course of business, Roto-Rooter enters into various guarantees and indemnifications in our relationships with customers and others. These arrangements include guarantees of services for periods ranging from one day to one year and product satisfaction guarantees. At December 31, 2015 and 2014, our accrual for service guarantees and warranty claims was $ 340,000 and $350,000 respectively. |
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. The costs of telephone directory listings are expensed when the directories are placed in circulation. These directories are generally in circulation for approximately one year, at which point they are typically replaced by the publisher with a new directory. We generally pay for directory placement assuming it is in circulation for one year. If the directory is in circulation for less than or greater than one year, we receive a credit or additional billing, as necessary. We do not control the timing of when a new directory is placed in circulation. We pay for and expense the cost of internet advertising and placement on a “per click” basis. Advertising expense for the year ended December 31, 2015, was $ 36.4 million (2014 – $ 32.8 million; 2013 - $ 31.0 million). |
Computation Of Earnings Per Share | COMPUTATION OF EARNINGS PER SHARE Earnings per share are computed using the weighted average number of shares of capital stock outstanding. Diluted earnings per share reflect the dilutive impact of our outstanding stock options and nonvested stock awards. Stock options whose exercise price is greater than the average market price of our stock are excluded from the computation of diluted earnings per share. |
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. |
Insurance Accruals | INSURANCE 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 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 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. |
Taxes On Income | TAXES ON INCOME Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carry-forwards 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 laws and rates on the date of enactment. In November 2015, the FASB issued ASU No. 2015-17 which simplifies the balance sheet classification required for deferred tax balances. It allows for a company’s deferred tax assets and liabilities to be netted into a noncurrent account, either asset or liability, by jurisdiction. The ASU is required to be adopted for annual periods beginning after December 15, 2016 and the interim periods within that annual period. Early adoption is permitted. Companies have the choice to adopt prospectively or retrospectively. In order to simplify our balance sheet classification required for deferred tax balances, we adopted the ASU for our annual balance sheet as of December 31, 2015 on a prospective basis. Prior periods have not been retrospectively adjusted. We do not believe that this change results in a material comparability issue between years on our balance sheet We are subject to income taxes in Canada, U.S. federal and most state jurisdictions. Significant judgment 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 18, 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 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. |
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 aftertax expenses and adjustments are based on estimates of the effective income tax rates for the applicable segments. |
Classification Adjustments | CLASSIFICATION ADJUSTMENTS In 2015, we classified $2.1 million of non-cash restricted stock award amortization in selling, general and administrative expenses. We also recorded classifications adjustments of $2.5 million and $3.0 million to decrease amortization and increase selling, general and administrative expenses in our Consolidated Statement of Income for 2014 and 2013, respectively, related to non-cash restricted stock award amortization. This classification adjustment does not impact income from operations, income before income taxes, net income, earnings per share, net cash provided by operating activities or our Consolidated Balance Sheet. We believe the impact of the classification adjustments are immaterial to our consolidated financial statements for the current and prior periods. |
Summary Of Significant Accoun32
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Weighted Average Lives Of Property And Equipment | Buildings and building improvements 10.9 yrs. Transportation equipment 10.8 Machinery and equipment 5.4 Computer software 4.6 Furniture and fixtures 4.8 |
Schedule of movement in Goodwill | Roto- Vitas Rooter Total Balance at December 31, 2013 $ 328,450 $ 138,421 $ 466,871 Business combinations - 198 198 Foreign currency adjustments - (198) (198) Program closing (149) - (149) Balance at December 31, 2014 $ 328,301 $ 138,421 $ 466,722 Business combinations - 5,944 5,944 Foreign currency adjustments - (344) (344) Balance at December 31, 2015 $ 328,301 $ 144,021 $ 472,322 |
Weighted Average Lives Of Identifiable, Definite-Lived Intangible Assets | Covenants not to compete 6.5 yrs. Reaquired franchise rights 6.1 Referral networks 10.0 Customer lists 13.3 |
Hospice Revenue Recognitionn (T
Hospice Revenue Recognitionn (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Hospice Revenue Recognition [Abstract] | |
Schedule Of Allowance For Doubtful Accounts | Medicare Medicaid Commercial Other Total Beginning Balance January 1, 2013 $ 3,875 $ 5,194 $ 2,204 $ 22 $ 11,295 Bad debt provision 1,901 4,902 2,026 1,992 10,821 Write-offs (1,452) (4,342) (2,877) (1,269) (9,940) Other/Contractual adjustments 490 145 684 (445) 874 Ending Balance December 31, 2014 4,814 5,899 2,037 300 13,050 Bad debt provision 286 8,096 2,969 2 11,353 Write-offs (1,863) (8,089) (2,819) (642) (13,413) Other/Contractual adjustments 562 93 687 (174) 1,168 Ending Balance December 31, 2015 $ 3,799 $ 5,999 $ 2,874 $ (514) $ 12,158 |
Schedule Of Medicare Cap Liability Activity | 2015 2014 Beginning Balance January 1, $ 6,112 $ 8,260 2015 measurement period (165) 165 2014 measurement period - 1,451 2011 measurement period - (325) Payments (4,782) (3,439) Ending Balance December 31, $ 1,165 $ 6,112 |
Long-Term Debt and Lines of C34
Long-Term Debt and Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt and Lines of Credit [Abstract] | |
Debt Outstanding | December 31, 2015 2014 Revolver $ - $ 50,000 Term loan 91,250 97,500 Total 91,250 147,500 Current portion of term loan (7,500) (6,250) Long-term debt $ 83,750 $ 141,250 |
Schedule of Principal Payments of the Term Loan | 2016 $ 7,500 2017 8,750 2018 10,000 2019 65,000 $ 91,250 |
Interest Paid During Period | 2015 $ 2,988 2014 4,322 2013 4,744 |
Financial Debt Covenants | Description Requirement Chemed Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA) < 3.50 to 1.00 0.54 to 1.00 Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges) > 1.50 to 1.00 2.18 to 1.00 Annual Operating Lease Commitment < $50.0 million $25.5 million |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation Plans [Abstract] | |
Schedule Of Total Stock Option And Award Activity | Stock Options Stock Awards Performance Units (PSUs) Weighted Average Aggregate Weighted Number of Weighted Remaining Intrinsic Average Nonvested Average Number of Exercise Contractual Value Number of Grant-Date Target Grant-Date Options Price Life (Years) (thousands) Awards Price Units Price Outstanding at January 1, 2014 1,768,174 $ 73.14 140,510 $ 67.71 56,699 $ 81.91 Granted 422,750 157.36 36,987 121.75 21,522 127.85 Exercised/Vested (611,786) 62.03 (80,011) 68.36 - - Canceled/ Forfeited (15,263) 89.64 (754) 79.50 (1,845) 98.56 Outstanding at December 31, 2015 1,563,875 100.09 6.3 $ 82,056 96,732 87.75 76,376 94.45 Vested and expected to vest at December 31, 2015 1,563,875 100.09 6.3 82,056 96,732 87.75 127,061 * 97.68 Exercisable at December 31, 2015 768,261 70.41 6.1 61,756 n.a. n.a. n.a. n.a. * Amount includes 46,610 share units which vested and were converted to Capital Stock and distributed in the first quarter of 2016. The shares that vested in 2016 had a weighted average grant-date fair value of $71.69 per share and an estimated fair value of $139.51 . |
Schedule Of Comparative Date For Performance Stock Units | 2015 Awards 2014 Awards 2013 Awards TSR Awards Shares granted 10,761 10,340 16,149 Per-share fair value $ 142.55 $ 112.60 $ 139.51 Volatility 25.2% 30.8% 21.2% Risk-free interest rate 0.93% 0.33% 0.25% EPS Awards Shares granted 10,761 14,061 16,149 Per-share fair value $ 113.14 $ 82.80 $ 139.51 Common Assumptions Service period (years) 2.9 2.9 2.2 Three-year measurement period ends December 31, 2017 2016 2015 |
Schedule Of Other Data For Stock Option And Stock Award Activity | Years Ended December 31, 2015 2014 2013 Total compensation cost of stock-based compensation plans charged against income $ 14,737 $ 10,323 $ 10,868 Total income tax benefit recognized in income for stock based compensation plans 5,416 3,794 3,994 Total intrinsic value of stock options exercised 45,600 26,344 16,922 Total intrinsic value of stock awards vested during the period 12,065 4,564 4,298 Per-share weighted averaged grant-date fair value of stock awards granted 121.75 88.48 77.13 |
Schedule Of Valuation Assumptions | 2015 2014 2013 Stock price on date of issuance $157.36 $106.59 $70.30 Grant date fair value per share $29.46 $21.58 $14.79 Number of options granted 422,750 410,800 392,274 Expected term (years) 4.0 4.8 4.9 Risk free rate of return 1.57% 1.59% 1.39% Volatility 22.20% 22.60% 24.90% Dividend yield 0.6% 0.8% 1.1% Forfeiture rate - - - |
Schedule Of Other Data For Stock Options, Stock Awards And PSUs | Stock Stock Options Awards PSUs Total unrecognized compensation related to nonvested options, stock awards and PSUs at the end of year $ 18,421 $ 3,849 $ 3,515 Weighted average period over which unrecognized compensation cost of nonvested options, stock awards and PSUs to be recognized (years) 2.4 2.1 1.7 Actual income tax benefit realized from options exercised or stock awards and PSUs vested $ 16,786 $ 3,667 $ 2,397 Aggregate intrinsic value of stock options, stock awards and PSUs vested and expected to vest $ 82,056 $ 14,586 $ 19,160 |
Segments and Nature of the Bu36
Segments and Nature of the Business (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segments and Nature of the Business [Abstract] | |
Service Revenues And Sales And After-Tax Earnings By Business Segment | For the Years Ended December 31, 2015 2014 2013 Revenues by Type of Service VITAS Routine homecare $ 865,145 $ 810,413 $ 791,735 Continuous care 150,802 152,206 155,409 General inpatient 99,439 102,876 104,968 Medicare cap 165 (1,290) (6,999) Total segment 1,115,551 1,064,205 1,045,113 Roto-Rooter Sewer and drain cleaning 142,562 141,078 141,283 Plumbing repair and maintenance 188,065 174,993 168,942 Independent contractors 37,966 36,496 33,030 Water restoration 38,163 18,480 3,042 Other products and services 21,081 21,030 21,919 Total segment 427,837 392,077 368,216 Total service revenues and sales $ 1,543,388 $ 1,456,282 $ 1,413,329 Aftertax Segment Earnings/(Loss) VITAS $ 93,346 $ 86,185 $ 76,144 Roto-Rooter 48,573 42,075 29,243 Total 141,919 128,260 105,387 Corporate (31,645) (28,943) (28,160) Net income $ 110,274 $ 99,317 $ 77,227 Interest Income VITAS $ 7,740 $ 6,111 $ 5,038 Roto-Rooter 3,425 2,931 2,096 Total 11,165 9,042 7,134 Corporate - 10 56 Intercompany eliminations (10,884) (9,081) (6,343) Total interest income $ 281 $ (29) $ 847 Interest Expense VITAS $ 200 $ 207 $ 182 Roto-Rooter 348 363 322 Total 548 570 504 Corporate 3,097 7,616 14,531 Total interest expense $ 3,645 $ 8,186 $ 15,035 Income Tax Provision VITAS $ 56,675 $ 53,278 $ 46,910 Roto-Rooter 29,630 25,808 17,560 Total 86,305 79,086 64,470 Corporate (16,453) (15,649) (17,868) Total income tax provision $ 69,852 $ 63,437 $ 46,602 Identifiable Assets VITAS $ 523,717 $ 546,031 $ 518,316 Roto-Rooter 255,192 251,407 241,679 Total 778,909 797,438 759,995 Corporate 73,416 62,494 133,706 Total identifiable assets $ 852,325 $ 859,932 $ 893,701 For the Years Ended December 31, 2015 2014 2013 Additions to Long-Lived Assets VITAS $ 23,278 $ 21,880 $ 16,219 Roto-Rooter 26,476 21,595 15,202 Total 49,754 43,475 31,421 Corporate 995 346 160 Total additions to long-lived assets $ 50,749 $ 43,821 $ 31,581 Depreciation and Amortization VITAS $ 19,547 $ 19,048 $ 19,534 Roto-Rooter 13,360 10,975 9,273 Total 32,907 30,023 28,807 Corporate 592 578 535 Total depreciation and amortization $ 33,499 $ 30,601 $ 29,342 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Schedule By Year Of Projected Amortization Expense For Definite-Lived Intangible Assets | 2016 $ 359 2017 169 2018 122 2019 96 2020 66 Thereafter 59 |
Schedule Of Intangible Assets | Gross Accumulated Net Book Asset Amortization Value December 31, 2015 Referral networks $ 21,729 $ (21,473) $ 256 Covenants not to compete 9,533 (9,220) 313 Customer lists 1,215 (1,215) - Reaquired franchise rights 1,260 (958) 302 Subtotal - definite-lived intangibles 33,737 (32,866) 871 VITAS trade name 51,300 - 51,300 Rapid Rooter trade name 150 - 150 Operating licenses 2,790 - 2,790 Total $ 87,977 $ (32,866) $ 55,111 December 31, 2014 Referral networks $ 22,599 $ (21,626) $ 973 Covenants not to compete 9,575 (9,209) 366 Customer lists 1,219 (1,194) 25 Reaquired franchise rights 1,106 (743) 363 Subtotal - definite-lived intangibles 34,499 (32,772) 1,727 VITAS trade name 51,300 - 51,300 Rapid Rooter trade name 150 - 150 Operating licenses 2,850 - 2,850 Total $ 88,799 $ (32,772) $ 56,027 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PENNSYLVANIA and NEBRASKA [Member] | |
Business Acquisition [Line Items] | |
Schedule Of Business Acquisitions | Identifiable intangible assets $ 213 Goodwill 5,944 Other assets and liabilities - net 457 $ 6,614 |
IDAHO | |
Business Acquisition [Line Items] | |
Schedule Of Business Acquisitions | Identifiable intangible assets $ 47 Goodwill 198 Other assets and liabilities - net 5 $ 250 |
COLORADO and TEXAS [Member] | |
Business Acquisition [Line Items] | |
Schedule Of Business Acquisitions | Identifiable intangible assets $ 1,023 Goodwill 1,212 Other assets and liabilities - net 22 $ 2,257 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |
Schedule Of Estimated Timing Of Payments Of Liabilities | 2016 $ 826 2017 300 Thereafter 601 $ 1,727 |
Other Income_(Expense)-Net (Tab
Other Income/(Expense)-Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income/(Expense)-Net [Abstract] | |
Schedule Of Other Income/(Expense)- Net | For the Years Ended December 31, 2015 2014 2013 Market value gains related to deferred compensation trusts $ 148 $ 3,118 $ 4,982 Loss on disposal of property and equipment (698) (640) (320) Interest income/ (expense) 281 (29) 847 Other - net (418) 72 (39) Total other income/(expense) $ (687) $ 2,521 $ 5,470 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule Of Provision For Income Taxes | For the Years Ended December 31, 2015 2014 2013 Current U.S. federal $ 55,026 $ 48,577 $ 45,348 U.S. state and local 8,104 7,285 7,731 Foreign 397 597 511 Deferred U.S. federal, state and local 6,323 6,970 (6,995) Foreign 2 8 7 Total $ 69,852 $ 63,437 $ 46,602 |
Schedule Of Temporary Differences That Give Rise To Deferred Tax Assets (Liabilities) | December 31, 2015 2014 Accrued liabilities $ 39,529 $ 37,879 Stock compensation expense 8,555 11,591 Allowance for uncollectible accounts receivable 1,729 2,779 State net operating loss carryforwards 1,701 1,603 Other 896 807 Deferred income tax assets 52,410 54,659 Amortization of intangible assets (50,136) (47,946) Accelerated tax depreciation (18,030) (15,641) Currents assets (1,576) (1,519) State income taxes (1,465) (698) Market valuation of investments (1,375) (2,346) Other (857) (1,023) Deferred income tax liabilities (73,439) (69,173) Net deferred income tax liabilities $ (21,029) $ (14,514) |
Schedule Of Significant Changes To Unrecognized Tax Benefits | 2015 2014 2013 Balance at January 1, $ 980 $ 892 $ 2,646 Unrecognized tax benefits due to positions taken in current year 260 247 219 Decrease due to expiration of statute of limitations (188) (159) (1,973) Balance at December 31, $ 1,052 $ 980 $ 892 |
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, 2015 2014 2013 Income tax provision calculated using the statutory rate of 35% $ 63,044 $ 56,964 $ 43,340 State and local income taxes, less federal income tax effect 5,787 5,536 4,323 Uncertain tax position adjustments - - (1,782) Nondeductible expenses 1,438 1,290 1,250 Other --net (417) (353) (529) Income tax provision $ 69,852 $ 63,437 $ 46,602 Effective tax rate 38.8 % 39.0 % 37.6 % |
Schedule Of Income Taxes Paid | 2015 $ 62,928 2014 44,921 2013 55,827 |
Properties And Equipment (Table
Properties And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Properties And Equipment [Abstract] | |
Schedule Of Properties And Equipment | December 31, 2015 2014 Land $ 5,365 $ 4,261 Buildings and building improvements 64,440 61,401 Transportation equipment 31,077 26,904 Machinery and equipment 83,293 77,273 Computer software 45,414 51,564 Furniture and fixtures 71,894 66,248 Projects under development 16,981 3,420 Total properties and equipment 318,464 291,071 Less accumulated depreciation (201,094) (185,735) Net properties and equipment $ 117,370 $ 105,336 |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Lease Arrangements [Abstract] | |
Summary Of Future Minimum Rental Payments And Sublease Rentals To Be Received Under Operating Leases | 2016 $ 21,679 2017 15,815 2018 12,420 2019 8,697 2020 6,189 Thereafter 14,294 Total minimum rental payments $ 79,094 |
Schedule Of Total Rental Expense Incurred Under Operating Leases For Continuing Operations | For the Years Ended December 31, 2015 2014 2013 Total rental expense $ 40,021 $ 39,606 $ 38,992 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Retirement Plans [Abstract] | |
Schedule Of Expenses For Retirement, Profit-Sharing Plans, Excess Benefit Plans And Other Similar Plans | For the Years Ended December 31, 2015 2014 2013 $ 11,970 $ 13,838 $ 14,511 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 Earnings $ 110,274 16,870 $ 6.54 Dilutive stock options - 394 Nonvested stock awards - 158 Diluted earnings $ 110,274 17,422 $ 6.33 2014 Earnings $ 99,317 17,165 $ 5.79 Dilutive stock options - 412 Nonvested stock awards - 149 Conversion of Notes and impact of warrants outstanding - 114 Diluted earnings $ 99,317 17,840 $ 5.57 2013 Earnings $ 77,227 18,199 $ 4.24 Dilutive stock options - 278 Nonvested stock awards - 108 Diluted earnings $ 77,227 18,585 $ 4.16 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 (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 $ 49,481 $ 49,481 $ - $ - Long-term debt and current portion of long-term debt 91,250 - 91,250 - The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2014 (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 $ 49,147 $ 49,147 $ - $ - Long-term debt 147,500 - 147,500 - |
Loans Receivable from Indepen47
Loans Receivable from Independent Contractors (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans Receivable from Independent Contractors [Abstract] | |
Schedule Of Independent Contractors | For the Years Ended December 31, 2015 2014 2013 Revenues $ 37,966 $ 36,496 $ 33,030 Pretax profits 22,176 21,238 17,726 |
Capital Stock Transactions (Tab
Capital Stock Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Capital Stock Transactions [Abstract] | |
Schedule Of Capital Stock Repurchases | For the Years Ended December 31, 2015 2014 2013 Total cost of repurchased shares (in thousands): $ 59,323 $ 110,019 $ 92,911 Shares repurchased 460,765 1,182,934 1,356,344 Weighted average price per share $ 128.75 $ 93.01 $ 68.50 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Operating Expenses [Abstract] | |
Schedule Of Other Operating Expenses | (in thousands): December 31, 2013 Litigation settlement of VITAS segment $ 10,500 Settlements of Roto-Rooter segment 15,721 Total other operating expenses $ 26,221 |
Summary Of Significant Accoun50
Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)entityitem | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of wholly-owned subsidiaries | entity | 2 | ||
Cost of providing charity care | $ 7,600,000 | $ 7,300,000 | $ 7,500,000 |
Guarantee and warranty claims accrual | 340,000 | 350,000 | |
Advertising expense in continuing operations | $ 36,400,000 | 32,800,000 | 31,000,000 |
Years in circulation | 1 year | ||
Historical claims data, period of time | 10 years | ||
classification adjustments | $ 2,100,000 | $ 2,500,000 | $ 3,000,000 |
Sales Revenue [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 90.00% | 90.00% | 90.00% |
Roto Rooter And Corporate Office [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Exposure on single claim | $ 750,000 | ||
Segment Roto-Rooter [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of Operating Segments | item | 1 | ||
Percent of population serviced | 90.00% | ||
Segment Roto-Rooter [Member] | Service Revenues [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 3.00% | 3.00% | 3.00% |
Segment Roto-Rooter [Member] | Sales Revenue [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 28.00% | 27.00% | |
Segment VITAS [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Revenues | $ 0 | ||
Exposure on single claim | 1,000,000 | ||
Professional liability and other risks, insurance deductible | $ 750,000 | ||
Segment VITAS [Member] | Service Revenues [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 90.00% | 90.00% | |
Segment VITAS [Member] | Sales Revenue [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 72.00% | 73.00% | |
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Period of service guarantee | 1 day | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Period of service guarantee | 1 year | ||
Medicare [Member] | Accounts Receivable [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 49.00% | 61.00% | |
Medicaid [Member] | Accounts Receivable [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 41.00% | 31.00% | |
Medicare And Medicaid [Member] | Accounts Receivable [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 80.00% |
Summary Of Significant Accoun51
Summary Of Significant Accounting Policies (Schedule Of Weighted Average Lives Of Property And Equipment) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Building And Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 10 years 10 months 24 days |
Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 10 years 9 months 18 days |
Machinery And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 5 years 4 months 24 days |
Computer Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 4 years 7 months 6 days |
Furniture And Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Weighted average lives of property and equipment | 4 years 9 months 18 days |
Summary Of Significant Accoun52
Summary Of Significant Accounting Policies (Schedule of movement in Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combination Segment Allocation [Line Items] | ||
Beginning Balance | $ 466,722 | $ 466,871 |
Business combinations | 5,944 | 198 |
Foreign currency adjustments | (344) | (198) |
Program closing | (149) | |
Ending Balance | 472,322 | 466,722 |
Segment VITAS [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Beginning Balance | $ 328,301 | $ 328,450 |
Business combinations | ||
Foreign currency adjustments | ||
Program closing | $ (149) | |
Ending Balance | $ 328,301 | 328,301 |
Roto-Rooter segment [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Beginning Balance | 138,421 | 138,421 |
Business combinations | 5,944 | 198 |
Foreign currency adjustments | (344) | $ (198) |
Program closing | ||
Ending Balance | $ 144,021 | $ 138,421 |
Summary Of Significant Accoun53
Summary Of Significant Accounting Policies (Weighted Average Lives Of Identifiable, Definite-Lived Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Covenants Not To Compete [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives of identifiable, definite-lived intangible assets | 6 years 6 months |
Reacquired Franchise Rights [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average lives of identifiable, definite-lived intangible assets | 6 years 1 month 6 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 | 13 years 3 months 18 days |
Hospice Revenue Recognition (Na
Hospice Revenue Recognition (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2016 | |
Revenue Recognition [Line Items] | ||||
Medicare care costs reimbursement, benchmark percentage of the days in care | 20.00% | |||
Percentage of automatic budget reductions | 2.00% | |||
One Program Projected Measurement Period Liability [Member] | ||||
Revenue Recognition [Line Items] | ||||
Medicare cap reversal | $ 165,000 | |||
Two Program Projected Measurment Period Liability [Member] | ||||
Revenue Recognition [Line Items] | ||||
Net pretax expense/(income) from medicare cap liability | (165,000) | $ 1,300,000 | $ 7,000,000 | |
Additional amount owed for Medicar cap | $ 1,900,000 | |||
Scenario, Forecast [Member] | ||||
Revenue Recognition [Line Items] | ||||
Unbilled revenue | $ 1,900,000 |
Hospice Revenue Recognition (Sc
Hospice Revenue Recognition (Schedule Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Bad debt provision | $ 14,247 | $ 13,173 | $ 10,907 |
Segment VITAS [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Beginning Balance | 13,050 | 11,295 | |
Bad debt provision | 11,353 | 10,821 | |
Write-offs | (13,413) | (9,940) | |
Other/Contractual adjustments | 1,168 | 874 | |
Ending Balance | 12,158 | 13,050 | 11,295 |
Medicare [Member] | Segment VITAS [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Beginning Balance | 4,814 | 3,875 | |
Bad debt provision | 286 | 1,901 | |
Write-offs | (1,863) | (1,452) | |
Other/Contractual adjustments | 562 | 490 | |
Ending Balance | 3,799 | 4,814 | 3,875 |
Medicaid [Member] | Segment VITAS [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Beginning Balance | 5,899 | 5,194 | |
Bad debt provision | 8,096 | 4,902 | |
Write-offs | (8,089) | (4,342) | |
Other/Contractual adjustments | 93 | 145 | |
Ending Balance | 5,999 | 5,899 | 5,194 |
Commercial [Member] | Segment VITAS [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Beginning Balance | 2,037 | 2,204 | |
Bad debt provision | 2,969 | 2,026 | |
Write-offs | (2,819) | (2,877) | |
Other/Contractual adjustments | 687 | 684 | |
Ending Balance | 2,874 | 2,037 | 2,204 |
Other [Member] | Segment VITAS [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Beginning Balance | 300 | 22 | |
Bad debt provision | 2 | 1,992 | |
Write-offs | (642) | (1,269) | |
Other/Contractual adjustments | (174) | (445) | |
Ending Balance | $ (514) | $ 300 | $ 22 |
Hospice Revenue Recognition (56
Hospice Revenue Recognition (Schedule Of Medicare Cap Liability Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Hospice Revenue Recognition [Abstract] | ||
Beginning Balance January 1, | $ 6,112 | $ 8,260 |
2015 measurement period | (165) | 165 |
2014 measurement period | 1,451 | |
2011 measurement period | (325) | |
Payments | (4,782) | (3,439) |
Ending Balance December 31, | $ 1,165 | $ 6,112 |
Long-Term Debt and Lines of C57
Long-Term Debt and Lines of Credit (Narrative) (Details) - USD ($) | Dec. 08, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Repayment of convertible notes | $ 187,000,000 | ||
Shares issued in conjunction with the conversion feature of the Notes | 35,166 | 249,000 | |
Warrants issued for cash | $ 2,648,000 | ||
Number of shares called by warrants | 2,477,000 | ||
Stock received in purchased call transaction | 266,000 | ||
2014 Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Standby letters of credit issued | $ 37,800,000 | ||
Deferred financing costs | $ 900,000 | ||
2014 Credit Agreement [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 1.13% | ||
2014 Credit Agreement [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 350,000,000 | ||
Unused lines of credit | 312,200,000 | ||
2014 Credit Agreement [Member] | Medium-term Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt | $ 100,000,000 |
Long-Term Debt and Lines of C58
Long-Term Debt and Lines of Credit (Debt Outstanding) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total | $ 91,250 | $ 147,500 |
Current portion of term loan | (7,500) | (6,250) |
Long-term debt | 83,750 | 141,250 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total | 50,000 | |
Medium-term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 91,250 | $ 97,500 |
Long-Term Debt and Lines of C59
Long-Term Debt and Lines of Credit (Schedule of Principal Payments of the Term Loan) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total | $ 91,250 | $ 147,500 |
Medium-term Notes [Member] | ||
Debt Instrument [Line Items] | ||
2,016 | 7,500 | |
2,017 | 8,750 | |
2,018 | 10,000 | |
2,019 | 65,000 | |
Total | $ 91,250 | $ 97,500 |
Long-Term Debt And Lines Of C60
Long-Term Debt And Lines Of Credit (Interest Paid During Period) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Long-Term Debt and Lines of Credit [Abstract] | |||
Interest paid | $ 2,988 | $ 4,322 | $ 4,744 |
Long-Term Debt and Lines of C61
Long-Term Debt and Lines of Credit (Financial Debt Covenants) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Long-Term Debt and Lines of Credit [Abstract] | |
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA), Requirement | 3.50 |
Leverage Ratio (Consolidated Indebtedness Consolidated Adj. EBITDA) | 0.54 |
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 | 2.18 |
Annual Operating Lease Commitment, Requirement | $ 50 |
Annual Operating Lease Commitment, Chemed | $ 25.5 |
Stock-Based Compensation Plan62
Stock-Based Compensation Plans (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||
May. 31, 2015shares | Dec. 31, 2016$ / shares | Dec. 31, 2015itemshares | Mar. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock incentive plans | item | 3 | |||
Number of shares authorized | 6,800,000 | |||
PSU [Member] | Scenario, Forecast [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested share units that will be converted | 46,610 | |||
Weighted average grant date fair value | $ / shares | $ 71.69 | |||
Estimated fair value per share | $ / shares | $ 139.51 | |||
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 | |||
Stock Options [Member] | Prior to Year 2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares contractual life | 10 years | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period, years | 3 years | |||
Restricted Stock [Member] | Prior to Year 2015 [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period, years | 3 years | |||
Restricted Stock [Member] | Prior to Year 2015 [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period, years | 4 years | |||
Outside Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted | 4,437 |
Stock-Based Compensation Plan63
Stock-Based Compensation Plans (Schedule of Comparative Date for Performance Stock Units) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Per-share fair value | $ 121.75 | $ 88.48 | $ 77.13 |
Volatility | 22.20% | 22.60% | 24.90% |
Risk-free interest rate | 1.57% | 1.59% | 1.39% |
Service period (years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 2 months 12 days |
Performance Based TSR [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 10,761 | 10,340 | 16,149 |
Per-share fair value | $ 142.55 | $ 112.60 | $ 139.51 |
Volatility | 25.20% | 30.80% | 21.20% |
Risk-free interest rate | 0.93% | 0.33% | 0.25% |
Performance Based EPS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 10,761 | 14,061 | 16,149 |
Per-share fair value | $ 113.14 | $ 82.80 | $ 139.51 |
Stock-Based Compensation Plan64
Stock-Based Compensation Plans (Schedule Of Total Stock Option And Award Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options, Outstanding at January 1, 2014 | 1,768,174 | ||
Number of Options, Granted | 422,750 | 410,800 | 392,274 |
Number of Options, Exercised/Vested | (611,786) | ||
Number of Options, Canceled/Forfeited | (15,263) | ||
Number of Options, Outstanding at December 31, 2015 | 1,563,875 | 1,768,174 | |
Number of Options, Vested and expected to vest at December 31, 2015 | 1,563,875 | ||
Number of Options, Exercisable at December 31, 2015 | 768,261 | ||
Weighted Average Exercise Price, Outstanding at January 1, 2014 | $ 73.14 | ||
Weighted Average Exercise Price, Granted | 157.36 | ||
Weighted Average Exercise Price, Exercised/Vested | 62.03 | ||
Weighted Average Exercise Price, Canceled/Forfeited | 89.64 | ||
Weighted Average Exercise Price, Outstanding at December 31, 2015 | 100.09 | $ 73.14 | |
Weighted Average Exercise Price, Vested and expected to vest at December 31, 2015 | 100.09 | ||
Weighted Average Exercise Price, Exercisable at December 31, 2015 | $ 70.41 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding at December 31, 2015 | 6 years 3 months 18 days | ||
Weighted Average Remaining Contractual Life (Years), Vested and expected to vest at December 31, 2015 | 6 years 3 months 18 days | ||
Weighted Average Remaining Contractual Life (Years), Exercisable at December 31, 2015 | 6 years 1 month 6 days | ||
Aggregate Intrinsic Value, Outstanding at December 31, 2015 | $ 82,056 | ||
Aggregate Intrinsic Value, Vested and dxpected to vest at December 31, 2015 | 82,056 | ||
Aggregate Intrinsic Value, Exercisable at December 31, 2015 | $ 61,756 | ||
Weighted Average Grant-Date Price, Granted | $ 121.75 | $ 88.48 | $ 77.13 |
Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Awards, Outstanding at January 1, 2014 | 140,510 | ||
Number of Awards, Granted | 36,987 | ||
Number of Awards, Exercised/Vested | (80,011) | ||
Number of Awards, Canceled/ Forfeited | (754) | ||
Number of Awards, Outstanding at December 31, 2015 | 96,732 | 140,510 | |
Number of Awards, Vested and expected to vest at December 31, 2015 | 96,732 | ||
Weighted Average Grant-Date Price, Outstanding at January 1, 2014 | $ 67.71 | ||
Weighted Average Grant-Date Price, Granted | 121.75 | ||
Weighted Average Grant-Date Price, Exercised/Vested | 68.36 | ||
Weighted Average Grant-Date Price, Canceled/Forfeited | 79.50 | ||
Weighted Average Grant-Date Price, Outstanding at December 31, 2015 | 87.75 | $ 67.71 | |
Weighted Average Exercise Price, Vested and expected to vest at December 31, 2015 | $ 87.75 | ||
PSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Nonvested Target Units, Outstanding at January 1, 2014 | 56,699 | ||
Number of Nonvested Target Units, Granted | 21,522 | ||
Number of Nonvested Target Units, Canceled/Forfeited | (1,845) | ||
Number of Nonvested Target Units, Outstanding at December 31, 2015 | 76,376 | 56,699 | |
Number of Nonvested Target Units, Vested and expected to vest at December 31, 2015 | 127,061 | ||
Weighted Average Grant-Date Price, Outstanding at January 1, 2014 | $ 81.91 | ||
Weighted Average Grant-Date Price, Granted | 127.85 | ||
Weighted Average Grant-Date Price, Canceled/Forfeited | 98.56 | ||
Weighted Average Grant-Date Price, Outstanding at December 31, 2015 | 94.45 | $ 81.91 | |
Weighted Average Exercise Price, Vested and expected to vest at December 31, 2015 | $ 97.68 |
Stock-Based Compensation Plan65
Stock-Based Compensation Plans (Schedule Of Other Data For Stock Option And Stock Award Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-Based Compensation Plans [Abstract] | |||
Total compensation cost of stock-based compensation plans charged against income | $ 14,737 | $ 10,323 | $ 10,868 |
Total income tax benefit recognized in income for stock based compensation plans | 5,416 | 3,794 | 3,994 |
Total intrinsic value of stock options exercised | 45,600 | 26,344 | 16,922 |
Total intrinsic value of stock awards vested during the period | $ 12,065 | $ 4,564 | $ 4,298 |
Per-share weighted averaged grant-date fair value of stock awards granted | $ 121.75 | $ 88.48 | $ 77.13 |
Stock-Based Compensation Plan66
Stock-Based Compensation Plans (Schedule Of Valuation Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-Based Compensation Plans [Abstract] | |||
Stock price on date of issuance | $ 157.36 | $ 106.59 | $ 70.30 |
Grant date fair value per share | $ 29.46 | $ 21.58 | $ 14.79 |
Number of options granted | 422,750 | 410,800 | 392,274 |
Expected term (years) | 4 years | 4 years 9 months 18 days | 4 years 10 months 24 days |
Risk free rate of return | 1.57% | 1.59% | 1.39% |
Volatility | 22.20% | 22.60% | 24.90% |
Dividend yield | 0.60% | 0.80% | 1.10% |
Forfeiture rate |
Stock-Based Compensation Plan67
Stock-Based Compensation Plans (Schedule Of Other Data For Stock Options, Stock Awards And PSUs) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation related to nonvested options, stock awards and PSU's at end of year | $ 18,421 |
Weighted average period over which unrecognized compensation cost of nonvested options, stock awards and PSU's to be recognized (years) | 2 years 4 months 24 days |
Actual income tax benefit realized from options exercised or stock awards and PSU's vested | $ 16,786 |
Aggregate intrinsic value of stock options, stock awards and PSUs vested and expected to vest | 82,056 |
Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation related to nonvested options, stock awards and PSU's at end of year | $ 3,849 |
Weighted average period over which unrecognized compensation cost of nonvested options, stock awards and PSU's to be recognized (years) | 2 years 1 month 6 days |
Actual income tax benefit realized from options exercised or stock awards and PSU's vested | $ 3,667 |
Aggregate intrinsic value of stock options, stock awards and PSUs vested and expected to vest | 14,586 |
PSU [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation related to nonvested options, stock awards and PSU's at end of year | $ 3,515 |
Weighted average period over which unrecognized compensation cost of nonvested options, stock awards and PSU's to be recognized (years) | 1 year 8 months 12 days |
Actual income tax benefit realized from options exercised or stock awards and PSU's vested | $ 2,397 |
Aggregate intrinsic value of stock options, stock awards and PSUs vested and expected to vest | $ 19,160 |
Segments and Nature of the Bu68
Segments and Nature of the Business (Service Revenues And Sales And After-Tax Earnings By Business Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | $ 1,543,388 | $ 1,456,282 | $ 1,413,329 |
Net income | 110,274 | 99,317 | 77,227 |
Total interest income | 281 | (29) | 847 |
Total interest expense | 3,645 | 8,186 | 15,035 |
Total income tax provision | 69,852 | 63,437 | 46,602 |
Total identifiable assets | 852,325 | 859,932 | 893,701 |
Total additions to long-lived assets | 50,749 | 43,821 | 31,581 |
Depreciation and amortization | 33,499 | 30,601 | 29,342 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Net income | 141,919 | 128,260 | 105,387 |
Total interest income | 11,165 | 9,042 | 7,134 |
Total interest expense | 548 | 570 | 504 |
Total income tax provision | 86,305 | 79,086 | 64,470 |
Total identifiable assets | 778,909 | 797,438 | 759,995 |
Total additions to long-lived assets | 49,754 | 43,475 | 31,421 |
Depreciation and amortization | 32,907 | 30,023 | 28,807 |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net income | (31,645) | (28,943) | (28,160) |
Total interest income | 10 | 56 | |
Total interest expense | 3,097 | 7,616 | 14,531 |
Total income tax provision | (16,453) | (15,649) | (17,868) |
Total identifiable assets | 73,416 | 62,494 | 133,706 |
Total additions to long-lived assets | 995 | 346 | 160 |
Depreciation and amortization | 592 | 578 | 535 |
Intercompany Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total interest income | (10,884) | (9,081) | (6,343) |
Segment VITAS [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 1,115,551 | 1,064,205 | 1,045,113 |
Net income | 93,346 | 86,185 | 76,144 |
Total interest income | 7,740 | 6,111 | 5,038 |
Total interest expense | 200 | 207 | 182 |
Total income tax provision | 56,675 | 53,278 | 46,910 |
Total identifiable assets | 523,717 | 546,031 | 518,316 |
Total additions to long-lived assets | 23,278 | 21,880 | 16,219 |
Depreciation and amortization | 19,547 | 19,048 | 19,534 |
Segment Roto-Rooter [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 427,837 | 392,077 | 368,216 |
Net income | 48,573 | 42,075 | 29,243 |
Total interest income | 3,425 | 2,931 | 2,096 |
Total interest expense | 348 | 363 | 322 |
Total income tax provision | 29,630 | 25,808 | 17,560 |
Total identifiable assets | 255,192 | 251,407 | 241,679 |
Total additions to long-lived assets | 26,476 | 21,595 | 15,202 |
Depreciation and amortization | 13,360 | 10,975 | 9,273 |
Routine Homecare [Member] | Segment VITAS [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 865,145 | 810,413 | 791,735 |
Continuous Care [Member] | Segment VITAS [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 150,802 | 152,206 | 155,409 |
General Inpatient [Member] | Segment VITAS [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 99,439 | 102,876 | 104,968 |
Medicare Cap [Member] | Segment VITAS [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 165 | (1,290) | (6,999) |
Sewer And Drain Cleaning [Member] | Segment Roto-Rooter [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 142,562 | 141,078 | 141,283 |
Plumbing Repair And Maintenance [Member] | Segment Roto-Rooter [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 188,065 | 174,993 | 168,942 |
Independent Contractors [Member] | Segment Roto-Rooter [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 37,966 | 36,496 | 33,030 |
Water And Restoration [Member] | Segment Roto-Rooter [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | 38,163 | 18,480 | 3,042 |
Other Products And Services [Member] | Segment Roto-Rooter [Member] | |||
Segment Reporting Information [Line Items] | |||
Total service revenues and sales | $ 21,081 | $ 21,030 | $ 21,919 |
Sales Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 90.00% | 90.00% | 90.00% |
Sales Revenue [Member] | Segment VITAS [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 72.00% | 73.00% | |
Sales Revenue [Member] | Segment Roto-Rooter [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 28.00% | 27.00% | |
Sales Revenue [Member] | Medicare And Medicaid Reimbursement Programs [Member] | Segment VITAS [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 90.00% |
Intangible Assets (Schedule By
Intangible Assets (Schedule By Year Of Projected Amortization Expense For Definite-Lived Intangible Assets) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets [Abstract] | |||
2,016 | $ 359,000 | ||
2,017 | 169,000 | ||
2,018 | 122,000 | ||
2,019 | 96,000 | ||
2,020 | 66,000 | ||
Thereafter | 59,000 | ||
Amortization of definite-lived intangible assets | $ 1,100,000 | $ 720,000 | $ 1,600,000 |
Intangible Assets (Schedule Of
Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Definite and Indefinite-lived Intangible Assets [LIne Items] | ||
Gross Asset, Subtotal- definite-lived intagibles | $ 33,737 | $ 34,499 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (32,866) | (32,772) |
Net Book Value, Subtotal - definite-lived intangibles | 871 | 1,727 |
Intangible assets, Gross Asset | 87,977 | 88,799 |
Intangible assets, Net Book Value | 55,111 | 56,027 |
VITAS Trade Name [Member] | ||
Definite and Indefinite-lived Intangible Assets [LIne Items] | ||
Intangible assets, Gross Asset | 51,300 | 51,300 |
Intangible assets, Net Book Value | 51,300 | 51,300 |
Rapid Rooter Trade Name [Member] | ||
Definite and Indefinite-lived Intangible Assets [LIne Items] | ||
Intangible assets, Gross Asset | 150 | 150 |
Intangible assets, Net Book Value | 150 | 150 |
Operating Licenses [Member] | ||
Definite and Indefinite-lived Intangible Assets [LIne Items] | ||
Intangible assets, Gross Asset | 2,790 | 2,850 |
Intangible assets, Net Book Value | 2,790 | 2,850 |
Referral Networks [Member] | ||
Definite and Indefinite-lived Intangible Assets [LIne Items] | ||
Gross Asset, Subtotal- definite-lived intagibles | 21,729 | 22,599 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (21,473) | (21,626) |
Net Book Value, Subtotal - definite-lived intangibles | 256 | 973 |
Covenants Not To Compete [Member] | ||
Definite and Indefinite-lived Intangible Assets [LIne Items] | ||
Gross Asset, Subtotal- definite-lived intagibles | 9,533 | 9,575 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (9,220) | (9,209) |
Net Book Value, Subtotal - definite-lived intangibles | 313 | 366 |
Customer Lists [Member] | ||
Definite and Indefinite-lived Intangible Assets [LIne Items] | ||
Gross Asset, Subtotal- definite-lived intagibles | 1,215 | 1,219 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (1,215) | (1,194) |
Net Book Value, Subtotal - definite-lived intangibles | 25 | |
Reacquired Franchise Rights [Member] | ||
Definite and Indefinite-lived Intangible Assets [LIne Items] | ||
Gross Asset, Subtotal- definite-lived intagibles | 1,260 | 1,106 |
Accumulated Amortization, Subtotal- definite-lived intangibles | (958) | (743) |
Net Book Value, Subtotal - definite-lived intangibles | $ 302 | $ 363 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)entity | Dec. 31, 2014USD ($)entity | Dec. 31, 2013USD ($)entityitem | |
Business Acquisition [Line Items] | |||
Business combinations | $ 6,614,000 | $ 250,000 | $ 2,257,000 |
Segment Roto-Rooter [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | entity | 1 | ||
Segment Roto-Rooter [Member] | PENNSYLVANIA and NEBRASKA [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | entity | 2 | ||
Business combinations | $ 6,600,000 | ||
Segment Roto-Rooter [Member] | IDAHO | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | entity | 1 | ||
Business combinations | $ 250,000 | ||
Segment Roto-Rooter [Member] | COLORADO | |||
Business Acquisition [Line Items] | |||
Number of Business Combinations | item | 1 | ||
Business combinations | $ 756,000 | ||
Segment VITAS [Member] | TEXAS | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | entity | 1 | ||
Business combinations | $ 1,500,000 |
Business Combinations (Business
Business Combinations (Business Acquisition, Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||
Goodwill | $ 472,322 | $ 466,722 | $ 466,871 |
PENNSYLVANIA and NEBRASKA [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | 213 | ||
Goodwill | 5,944 | ||
Other assets and liabilities - net | 457 | ||
Assets total | $ 6,614 | ||
IDAHO | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | 47 | ||
Goodwill | 198 | ||
Other assets and liabilities - net | 5 | ||
Assets total | $ 250 | ||
COLORADO and TEXAS [Member] | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | 1,023 | ||
Goodwill | 1,212 | ||
Other assets and liabilities - net | 22 | ||
Assets total | $ 2,257 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - DuBois [Member] $ in Thousands | Dec. 31, 2015USD ($) |
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 |
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, 2015USD ($) |
Discontinued Operations [Abstract] | |
2,016 | $ 826 |
2,017 | 300 |
Thereafter | 601 |
Total estimated timing of payments of liabilities related to discontinued operations | $ 1,727 |
Cash Overdrafts And Cash Equi75
Cash Overdrafts And Cash Equivalents (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Overdrafts And Cash Equivalents [Abstract] | ||
Cash overdrafts included in accounts payable | $ 9,300,000 | $ 10,500,000 |
Cash equivalents | $ 76,000 | $ 80,000 |
Cash equivalents weighted average rate of return | 0.20% | 0.06% |
Other Income_(Expense)-Net (Sch
Other Income/(Expense)-Net (Schedule Of Other Income-Net From Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income/(Expense)-Net [Abstract] | |||
Market value gains related to deferred compensation trusts | $ 148 | $ 3,118 | $ 4,982 |
Loss on disposal of property and equipment | (698) | (640) | (320) |
Interest income/ (expense) | 281 | (29) | 847 |
Other - net | (418) | 72 | (39) |
Total other income/(expense) | $ (687) | $ 2,521 | $ 5,470 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Net operating loss carryforwards | $ 34,000 | $ 31,800 |
Accrued interest payable related to uncertain tax positions | 125 | $ 123 |
Undistributed earnings of domestic subsidiaries | 35,100 | |
Additional taxes if interest in all businesses is sold rather than to effect a tax-free liquidation | $ 12,900 |
Income Taxes (Schedule Of Provi
Income Taxes (Schedule Of Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Current, U.S. federal | $ 55,026 | $ 48,577 | $ 45,348 |
Current, U.S. state and local | 8,104 | 7,285 | 7,731 |
Current, Foreign | 397 | 597 | 511 |
Deferred, U.S. federal, state and local | 6,323 | 6,970 | (6,995) |
Deferred, Foreign | 2 | 8 | 7 |
Total | $ 69,852 | $ 63,437 | $ 46,602 |
Income Taxes (Summary Of Tempor
Income Taxes (Summary Of Temporary Differences That Give Rise To Deferred Tax Assets/ (Liabilities)) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Accrued liabilities | $ 39,529 | $ 37,879 |
Stock compensation expense | 8,555 | 11,591 |
Allowance for uncollectible accounts receivable | 1,729 | 2,779 |
State net operating loss carryforwards | 1,701 | 1,603 |
Other | 896 | 807 |
Deferred income tax assets | 52,410 | 54,659 |
Amortization of intangible assets | (50,136) | (47,946) |
Accelerated tax depreciation | (18,030) | (15,641) |
Current assets | (1,576) | (1,519) |
State income taxes | (1,465) | (698) |
Market valuation of investments | (1,375) | (2,346) |
Other | (857) | (1,023) |
Deferred income tax liabilities | (73,439) | (69,173) |
Deferred income tax liabilities | $ (21,029) | $ (14,514) |
Income Taxes (Schedule Of Signi
Income Taxes (Schedule Of Significant Changes To Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Balance at January 1, | $ 980 | $ 892 | $ 2,646 |
Unrecognized tax benefits due to positions taken in current year | 260 | 247 | 219 |
Decrease due to expiration of statute of limitations | (188) | (159) | (1,973) |
Balance at December 31, | $ 1,052 | $ 980 | $ 892 |
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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Income tax provision calculated using the statutory rate of 35% | $ 63,044 | $ 56,964 | $ 43,340 |
State and local income taxes, less federal income tax effect | 5,787 | 5,536 | 4,323 |
Uncertain tax position adjustments | (1,782) | ||
Nondeductible expenses | 1,438 | 1,290 | 1,250 |
Other --net | (417) | (353) | (529) |
Income tax provision | $ 69,852 | $ 63,437 | $ 46,602 |
Effective tax rate | 38.80% | 39.00% | 37.60% |
Statutory rate | 35.00% |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Taxes Paid) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Income taxes paid | $ 62,928 | $ 44,921 | $ 55,827 |
Properties And Equipment (Narra
Properties And Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Properties And Equipment [Abstract] | |||
Net book value of computer software | $ 8.3 | $ 10.5 | |
Depreciation expense for computer software | $ 3.9 | $ 4.4 | $ 3.9 |
Properties And Equipment (Sched
Properties And Equipment (Schedule Of Properties And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | $ 318,464 | $ 291,071 |
Less accumulated depreciation | (201,094) | (185,735) |
Net properties and equipment | 117,370 | 105,336 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 5,365 | 4,261 |
Buildings and building improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 64,440 | 61,401 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 31,077 | 26,904 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 83,293 | 77,273 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 45,414 | 51,564 |
Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | 71,894 | 66,248 |
Projects Under Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total properties and equipment | $ 16,981 | $ 3,420 |
Lease Arrangements (Narrative)
Lease Arrangements (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lease arrangements, remaining terms of leases under operating lease | 11 years |
Lease Arrangements (Summary Of
Lease Arrangements (Summary Of Future Minimum Rental Payments And Sublease Rentals To Be Received Under Operating Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Lease Arrangements [Abstract] | |
2,016 | $ 21,679 |
2,017 | 15,815 |
2,018 | 12,420 |
2,019 | 8,697 |
2,020 | 6,189 |
Thereafter | 14,294 |
Total minimum rental payments | $ 79,094 |
Lease Arrangements (Schedule Of
Lease Arrangements (Schedule Of Total Rental Expense Incurred Under Operating Leases For Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Lease Arrangements [Abstract] | |||
Total rental expense | $ 40,021 | $ 39,606 | $ 38,992 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Retirement Plans [Abstract] | ||
Number of treasury stock shares held | 99,309 | 99,231 |
Treasury stock held value | $ 2.4 | $ 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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Retirement Plans [Abstract] | |||
Defined contribution plans expense | $ 11,970 | $ 13,838 | $ 14,511 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - USD ($) $ in Thousands | Dec. 08, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded stock options | 422,000 | 411,000 | 358,000 | |
Shares issued in conjunction with the conversion feature of the Notes | 35,166 | 249,000 | ||
Number of shares called by warrants | 2,477,000 | |||
Dilutive impact of the warrants | 12,000 | |||
Payments for Repurchase of Warrants | $ 2,648 | |||
Senior Convertible Notes [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Interest rate of senior convertible notes | 1.875% | |||
Dilutive impact of the warrants | 102,000 |
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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Earnings, Income | $ 110,274 | $ 99,317 | $ 77,227 |
Dilutive stock options, Income | |||
Nonvested stock awards, Income | |||
Conversion of Notes, Income | |||
Diluted earnings, Income | $ 110,274 | $ 99,317 | $ 77,227 |
Net Income, Earnings, Shares | 16,870 | 17,165 | 18,199 |
Dilutive stock options, Shares | 394 | 412 | 278 |
Nonvested stock awards, Shares | 158 | 149 | 108 |
Conversion of Notes and impact of warrants outstanding, Shares | 114 | ||
Net Income, Diluted Earnings, Shares | 17,422 | 17,840 | 18,585 |
Earnings per Share | $ 6.54 | $ 5.79 | $ 4.24 |
Earnings per Share, Diluted | $ 6.33 | $ 5.57 | $ 4.16 |
Financial Instruments (Carrying
Financial Instruments (Carrying Value, Fair Value And Hierarchy Of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments of deferred compensation plans held in trust | $ 49,481 | $ 49,147 |
Long-term debt | 91,250 | 147,500 |
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 | 49,481 | 49,147 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 91,250 | $ 147,500 |
Loans Receivable from Indepen93
Loans Receivable from Independent Contractors (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | |
Independent Contractor Operations [Line Items] | ||
Independent contractors with sublicenses | item | 69 | |
Maximum exposure to loss from arrangements with independent contractors | $ | $ 1.8 | $ 1.6 |
Days contracts may be cancelled with written notice | 90 days | |
Maximum [Member] | ||
Independent Contractor Operations [Line Items] | ||
Percentage of labor sales | 32.00% | |
Interest rates on loans | 7.00% | |
Terms of the loans to independent contractors, years | 5 years 4 months 24 days | |
Minimum [Member] | ||
Independent Contractor Operations [Line Items] | ||
Percentage of labor sales | 27.00% | |
Interest rates on loans | 0.00% | |
Terms of the loans to independent contractors, years | 2 months 15 days |
Loans Receivable from Indepen94
Loans Receivable from Independent Contractors (Schedule Of Independent Contractors) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans Receivable from Independent Contractors [Abstract] | |||
Revenues | $ 37,966 | $ 36,496 | $ 33,030 |
Pretax profits | $ 22,176 | $ 21,238 | $ 17,726 |
Legal And Regulatory Matters (D
Legal And Regulatory Matters (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2013item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of shareholder derivative lawsuits filed | item | 2 | |||
U.S. v. VITAS [Member] | ||||
Loss Contingencies [Line Items] | ||||
Net costs incurred | $ | $ 5 | $ 2.1 | $ 2.1 |
Concentration Of Risk (Details)
Concentration Of Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
VITAS made purchases from Enclara | $ 37,700 | $ 35,600 | $ 39,000 |
Accounts payable | 43,695 | 46,849 | |
Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Accounts payable | $ 3,000 | ||
Segment VITAS [Member] | |||
Concentration Risk [Line Items] | |||
Accounts payable | $ 3,600 | ||
Sales Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk services represent from vendor | 90.00% | 90.00% | 90.00% |
Sales Revenue [Member] | Segment VITAS [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk services represent from vendor | 72.00% | 73.00% |
Capital Stock Transactions (Nar
Capital Stock Transactions (Narrative) (Details) $ in Millions | Mar. 31, 2015USD ($) |
Capital Stock Transactions [Abstract] | |
Stock repurchase program, amount authorized | $ 100 |
Capital Stock Transactions (Sch
Capital Stock Transactions (Schedule Of Capital Stock Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Capital Stock Transactions [Abstract] | |||
Total cost of repurchased shares | $ 59,323 | $ 110,019 | $ 92,911 |
Shares repurchased | 460,765 | 1,182,934 | 1,356,344 |
Weighted average price per share | $ 128.75 | $ 93.01 | $ 68.50 |
Other Operating Expenses (Detai
Other Operating Expenses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Other Operating Expenses [Line Items] | |
Other operating expenses | $ 26,221 |
Litigation settlement of VITAS segment [Member] | |
Other Operating Expenses [Line Items] | |
Litigation settlement | 10,500 |
Roto-Rooter segment [Member] | |
Other Operating Expenses [Line Items] | |
Litigation settlement | $ 15,721 |
Schedule II - Valuation And 100
Schedule II - Valuation And Qualifying Accounts (Details) - Allowance For Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
BALANCE AT BEGINNING OF PERIOD | $ (14,728) | $ (12,590) | $ (10,892) |
(CHARGED) CREDITED TO COSTS AND EXPENSES | (14,435) | (13,079) | (10,690) |
(CHARGED) CREDITED TO OTHER ACCOUNTS | (1,169) | (840) | (1,318) |
DEDUCTIONS | 17,088 | 11,781 | 10,310 |
BALANCE AT END OF PERIOD | $ (13,244) | $ (14,728) | $ (12,590) |