Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2016 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2,016 |
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 | 16,190,702 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 17,474 | $ 14,727 |
Accounts receivable less allowances of $14,769 (2015 - $13,244) | 98,952 | 106,262 |
Inventories | 6,120 | 6,314 |
Prepaid income taxes | 8,964 | 10,653 |
Prepaid expenses | 15,457 | 12,852 |
Total current assets | 146,967 | 150,808 |
Investments of deferred compensation plans | 53,127 | 49,481 |
Properties and equipment, at cost, less accumulated depreciation of $205,323 (2015 - $201,094) | 118,502 | 117,370 |
Identifiable intangible assets less accumulated amortization of $33,051 (2015 - $32,866) | 54,928 | 55,111 |
Goodwill | 472,471 | 472,322 |
Other assets | 6,960 | 7,233 |
Total Assets | 852,955 | 852,325 |
Current liabilities | ||
Accounts payable | 41,962 | 43,695 |
Current portion of long-term debt | 7,500 | 7,500 |
Accrued insurance | 44,704 | 43,972 |
Accrued compensation | 51,289 | 52,817 |
Accrued legal | 1,729 | 1,233 |
Other current liabilities | 20,267 | 22,119 |
Total current liabilities | 167,451 | 171,336 |
Deferred income taxes | 16,832 | 21,041 |
Long-term debt | 140,000 | 83,750 |
Deferred compensation liabilities | 52,452 | 49,467 |
Other liabilities | 14,638 | 13,478 |
Total Liabilities | 391,373 | 339,072 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Capital stock - authorized 80,000,000 shares $1 par; issued 34,104,899 shares (2015 - 33,985,316 shares) | 34,105 | 33,985 |
Paid-in capital | 617,793 | 603,006 |
Retained earnings | 907,531 | 865,845 |
Treasury stock - 18,014,005 shares (2015 - 17,187,540 shares) | (1,100,314) | (991,978) |
Deferred compensation payable in Company stock | 2,467 | 2,395 |
Total Stockholders' Equity | 461,582 | 513,253 |
Total Liabilities and Stockholders' Equity | $ 852,955 | $ 852,325 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheet [Abstract] | ||
Accounts receivable, allowances | $ 14,769 | $ 13,244 |
Properties and equipment, at cost, accumulated depreciation | 205,323 | 201,094 |
Identifiable intangible assets, accumulated amortization | $ 33,051 | $ 32,866 |
Capital stock - authorized | 80,000,000 | 80,000,000 |
Capital stock - par value | $ 1 | $ 1 |
Capital stock - issued | 34,104,899 | 33,985,316 |
Treasury stock | 18,014,005 | 17,187,540 |
Consolidated Statement Of Incom
Consolidated Statement Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statement Of Income [Abstract] | ||||
Service revenues and sales | $ 390,409 | $ 381,921 | $ 780,798 | $ 758,573 |
Cost of services provided and goods sold (excluding depreciation) | 276,255 | 270,663 | 554,690 | 539,548 |
Selling, general and administrative expenses | 62,628 | 58,442 | 121,673 | 117,479 |
Depreciation | 8,581 | 8,082 | 17,005 | 16,114 |
Amortization | 91 | 134 | 183 | 261 |
Other operating expenses | 4,491 | 4,491 | ||
Total costs and expenses | 352,046 | 337,321 | 698,042 | 673,402 |
Income from operations | 38,363 | 44,600 | 82,756 | 85,171 |
Interest expense | (971) | (969) | (1,813) | (1,938) |
Other income/(expense) - net | 3,217 | 536 | 293 | 1,099 |
Income before income taxes | 40,609 | 44,167 | 81,236 | 84,332 |
Income taxes | (15,724) | (17,192) | (31,511) | (32,820) |
Net income | $ 24,885 | $ 26,975 | $ 49,725 | $ 51,512 |
Earnings Per Share | ||||
Net income | $ 1.51 | $ 1.60 | $ 3 | $ 3.05 |
Average number of shares outstanding | 16,443 | 16,880 | 16,583 | 16,872 |
Diluted Earnings Per Share | ||||
Net income | $ 1.48 | $ 1.55 | $ 2.93 | $ 2.96 |
Average number of shares outstanding | 16,831 | 17,419 | 16,999 | 17,419 |
Cash Dividends Per Share | $ 0.24 | $ 0.22 | $ 0.48 | $ 0.44 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 49,725 | $ 51,512 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,188 | 16,375 |
Provision for uncollectible accounts receivable | 8,124 | 7,734 |
Stock option expense | 4,840 | 2,787 |
Benefit for deferred income taxes | (4,244) | (2,783) |
Noncash early retirement expense | 1,747 | |
Amortization of restricted stock awards | 974 | 897 |
Noncash directors' compensation | 541 | 540 |
Noncash long-term incentive compensation | 196 | 2,391 |
Amortization of debt issuance costs | 260 | 262 |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable | (839) | (2,182) |
Decrease/(increase) in inventories | 194 | (78) |
Increase in prepaid expenses | (2,605) | (507) |
Decrease in accounts payable and other current liabilities | (4,879) | (1,854) |
Increase/(decrease) in income taxes | 3,109 | (2,384) |
Increase in other assets | (3,636) | (2,229) |
Increase in other liabilities | 4,145 | 2,966 |
Excess tax benefit on share-based compensation | (1,383) | (3,998) |
Other sources/(uses) | (9) | 189 |
Net cash provided by operating activities | 73,448 | 69,638 |
Cash Flows from Investing Activities | ||
Capital expenditures | (19,983) | (18,846) |
Business combinations, net of cash acquired | (6,614) | |
Other sources | 214 | 395 |
Net cash used by investing activities | (19,769) | (25,065) |
Cash Flows from Financing Activities | ||
Purchases of treasury stock | (94,337) | (29,762) |
Proceeds from long-term debt | 92,400 | 103,200 |
Payments on revolving line of credit | (32,400) | (88,200) |
Dividends paid | (8,039) | (7,459) |
Decrease in cash overdrafts payable | (5,440) | (6,791) |
Capital stock surrendered to pay taxes on stock-based compensation | (5,163) | (5,876) |
Payments on other long-term debt | (3,750) | (2,500) |
Proceeds from exercise of stock options | 3,533 | 8,044 |
Excess tax benefit on share-based compensation | 1,383 | 3,998 |
Other sources/(uses) | 881 | (654) |
Net cash used by financing activities | (50,932) | (26,000) |
Increase in Cash and Cash Equivalents | 2,747 | 18,573 |
Cash and cash equivalents at beginning of year | 14,727 | 14,132 |
Cash and cash equivalents at end of period | $ 17,474 | $ 32,705 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | 1. Basis of Presentation As used herein, the terms "We," "Company" and "Chemed" refer to Chemed Corporation or Chemed Corporation and its consolidated subsidiaries. We have prepared the accompanying unaudited consolidated financial statements of Chemed in accordance with Rule 10-01 of SEC Regulation S-X. Consequently, we have omitted certain disclosures required under generally accepted accounting principles in the United States (“GAAP”) for complete financial statements. The December 31, 2015 balance sheet data were derived from audited financial statements but do not include all disclosures required by GAAP. However, in our opinion, the financial statements presented herein contain all adjustments, consisting only of normal recurring adjustments, necessary to state fairly our financial position, results of operations and cash flows. These financial statements are prepared on the same basis as and should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. TAXES ON INCOME In November 2015, the Financial Accounting Standards Board (“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 CLASSIFICATION ADJUSTMENTS During the three and six months ended June 30, 2016, we classified $435,000 and $974,000 respectively of non-cash restricted stock award amortization in selling, general and administrative expenses. We also recorded a classification adjustment of $448,000 and $897,000 to decrease amortization and increase selling, general and administrative expenses in our Consolidated Statement of Income for the three and six months ended June 30, 2015 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. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2016 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Both the VITAS segment and the Roto-Rooter segment recognize service revenues and sales when the earnings process has been completed. Generally, this occurs when services are pr ovided or products are shipped . VITAS recognizes revenue at the estimated realizable amount due from third-party payers. Medicare payments are subject to certain limitations, as described below. 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 they are likely to exceed the annual per-beneficiary Medicare cap (“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 action to influence the patient mix or to increase 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 patient revenue. During the three and six months ended June 30, 2016 , no Medicare cap liability was recorded. During the first six months ended June 30, 2015, we recorded $165,000 Medicare cap reversal of amounts recorded in the fourth quarter of 2014 for one program’s projected 2015 measurement period liability. The fourth quarter of 2014 was part of the 2015 Medicare cap year. In 2013, the U.S. government implemented automatic budget reductions of 2.0% for all government payees, including hospice benefits paid under the Medicare program. In 2015, CMS determined that the Medicare cap should be calculated “as if” sequestration did not occur. As a result of this decision, VITAS has received notification from our third party intermediary that an additional $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 demand the $1.9 million under their “as if” methodology. We have not recorded a reserve as of June 30, 2016 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 fiscal periods ended (in thousands): June 30, 2016 2015 Beginning balance January 1, $ 1,165 $ 6,112 2015 measurement period - (165) Payments (618) (4,782) Ending balance June 30, $ 547 $ 1,165 Vitas provides charity care, in certain circumstances, to patients without charge when management of the hospice program determines, at the time services are performed, that the patient cannot afford payment. There is no revenue or associated accounts receivable in the accompanying consolidated financial statements related to charity care. 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. The cost of charity care is as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 $ 1,715 $ 1,885 $ 3,521 $ 3,859 |
Segments
Segments | 6 Months Ended |
Jun. 30, 2016 | |
Segments [Abstract] | |
Segments | 3. Segments Service revenues and sales and after-tax earnings by business segment are as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service Revenues and Sales VITAS $ 278,739 $ 276,460 $ 556,266 $ 546,073 Roto-Rooter 111,670 105,461 224,532 212,500 Total $ 390,409 $ 381,921 $ 780,798 $ 758,573 After-tax Earnings VITAS $ 18,550 $ 21,800 $ 37,637 $ 41,116 Roto-Rooter 13,341 12,153 26,359 24,161 Total 31,891 33,953 63,996 65,277 Corporate (7,006) (6,978) (14,271) (13,765) Net income $ 24,885 $ 26,975 $ 49,725 $ 51,512 We report corporate administrative expenses and unallocated investing and financing income and expense not directly related to either segment as “Corporate”. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 4. Earnings per Share Earnings per share (“EPS”) are computed using the weighted average number of shares of capital stock outstanding. Earnings and diluted earnings per share are computed as follows (in thousands, except per share data): Net Income For the Three Months Ended June 30, Income Shares Earnings per Share 2016 Earnings $ 24,885 16,443 $ 1.51 Dilutive stock options - 289 Nonvested stock awards - 99 Diluted earnings $ 24,885 16,831 $ 1.48 2015 Earnings $ 26,975 16,880 $ 1.60 Dilutive stock options - 390 Nonvested stock awards - 149 Diluted earnings $ 26,975 17,419 $ 1.55 Net Income For the Six Months Ended June 30, Income Shares Earnings per Share 2016 Earnings $ 49,725 16,583 $ 3.00 Dilutive stock options - 297 Nonvested stock awards - 119 Diluted earnings $ 49,725 16,999 $ 2.93 2015 Earnings $ 51,512 16,872 $ 3.05 Dilutive stock options - 395 Nonvested stock awards - 152 Diluted earnings $ 51,512 17,419 $ 2.96 For the three and six- month period s en ded June 30 , 201 6 and 2015 , 418,000 and 411,000 , respectively, stock options were excluded from the computation of diluted earnings per share because they would have been anti-dilutive. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 5. Long-Term Debt 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 1 13 basis points. The debt outstanding as of June 30, 2016 consists of the following: Revolver $ 60,000 Term loan 87,500 Total 147,500 Current portion of long-term debt (7,500) Long-term debt $ 140,000 Scheduled principal payments of the term loan are as follows: 2016 $ 3,750 2017 8,750 2018 10,000 2019 65,000 $ 87,500 The 2014 Credit Agreement contains the following quarterly financial covenants: Description Requirement Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA) < 3.50 to 1.00 Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges) > 1.50 to 1.00 Annual Operating Lease Commitment < $50.0 million We are in compliance with al l debt covenants as of June 30, 2016 . We have issued $37.4 million in standby le tters of credit as of June 30, 2016 mainly for insurance purposes. Issued letters of credit reduce our available credit under the 2014 Cr edit Agreement. As of June 30, 2016 , we have approximately $252.6 million of unused lines of credit available and eligible to be drawn down under our revolving credit facility. |
Other Income_(Expense) - Net
Other Income/(Expense) - Net | 6 Months Ended |
Jun. 30, 2016 | |
Other Income/(Expense) - Net [Abstract] | |
Other Income/(Expense) - Net | 6. Other Income /(Expense) – Net Other income /(expense) -- net comprises the following (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Market value adjustment on assets held in deferred compensation trust $ 3,188 $ 498 $ 201 $ 1,448 Loss on disposal of property and equipment (57) (63) (90) (15) Interest income - net 85 86 182 130 Other - net 1 15 - (464) Total other income/(expense) - net $ 3,217 $ 536 $ 293 $ 1,099 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 7. Stock-Based Compensation Plans On February 19 , 2016 , the Compensation/Incentive Committee of the Board of Directors (“CIC”) granted 9,541 Performance Stock Units (“PSUs”) contingent upon the achievement of certain total shareholders return (“TSR”) targets as compared to the TSR of a group of peer companies for the three -year period ending December 31, 2018 , the date at which such awards vest. The cumulative compensation cost of the TSR-based PSU award to be recorded over the three year service period is $1.4 million. On February 19, 2016 , the CIC also granted 9,541 PSUs contingent upon the achievement of certain earnings per share (“EPS”) targets for the three -year perio d ending December 31, 2018 . At the end of each reporting period, the Company estimates the number of shares that it believes will ultimately be earned and records that expense over the service period of the award. We currently estimate the cumulative compensation cost of the EPS-based PSUs to be recorded over the three year service period is $ 557,000 . |
Independent Contractor Operatio
Independent Contractor Operations | 6 Months Ended |
Jun. 30, 2016 | |
Independent Contractor Operations [Abstract] | |
Independent Contractor Operations | 8. Independent Contractor Operations The Roto-Rooter segment sublicenses with 6 9 independent contractors to operate certain plumbing repair and drain cleaning businesses in lesser-populated areas of the United States and Canada. We had notes receivable from our independent contractors as of June 30 , 2016 totaling $ 1. 6 million (December 31, 2015 - $ 1. 8 million). In most cases these loans are fully or partially secured by equipment owned by the contractor. The interest rates on the loans range from 0 % to 7 % per annum and the remaining terms of the loans range from 2.5 months to 5.4 years at June 30 , 2016. We recorded the following from our independent contractors (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Revenues $ 9,770 $ 9,527 $ 19,629 $ 18,991 Pretax profits 6,024 5,661 12,180 11,218 |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2016 | |
Retirement Plans [Abstract] | |
Retirement Plans | 9. Retirement Plans All of the Company’s plans that provide retirement and similar benefits are defined contribution plans. These expenses include the impact of market gains and losses on assets held in deferred compensation plans. Expenses for the Company’s pension and profit-sharing plans, excess benefit plans and other similar plans are as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 $ 5,861 $ 2,991 $ 6,387 $ 7,178 |
Legal And Regulatory Matters
Legal And Regulatory Matters | 6 Months Ended |
Jun. 30, 2016 | |
Legal And Regulatory Matters [Abstract] | |
Legal And Regulatory Matters | 10. 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 $1.2 million and $1.4 million for the quarters ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016 and 2015, the net costs were $3.5 million and $2.7 million 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.). 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 (MRB) (S.D. Ohio). Those proceedings were subsequently consolidated in the District of Delaware under the caption In re Chemed Corp. Shareholder and Derivative Litigation , No. 13 Civ. 1854 (LPS) (CJB) (D. Del.), by Order of the United States District Court for the District of Delaware dated February 2, 2015. Also on February 2, 2015, the Court appointed Plaintiff KBC the sole lead plaintiff and its counsel, the sole lead and liaison counsel. On March 3, 2015, Lead Plaintiff KBC designated its Complaint as the operative complaint in the consolidated proceedings. The consolidated Complaint named 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 as individual defendants, together with the Company as nominal defendant. The Complaint 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. Also on March 3, 2015, defendants renewed their previously-filed motion to dismiss those claims and allegations, which motion the court referred to Magistrate Judge Burke. On December 23, 2015, Magistrate Judge Burke issued a Report and 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. On January 11, 2016, Lead Plaintiff KBC filed Objections to the Report and Recommendation. Defendants’ responses to those Objections were filed on January 28, 2016. On May 12, 2016, the court issued a Memorandum Order (1) overruling Lead Plaintiff KBC’s Objections to the Report and Recommendation; (2) adopting the Report and Recommendation; (3) granting Chemed’s motion to dismiss; and (4) dismissing Lead Plaintiff KBC’s Complaint, without prejudice to KBC’s opportunity to file within 30 days of the date of the court’s Order an amended Complaint addressing the deficiencies in its duty of loyalty claim. Lead Plaintiff KBC did not file an amended Complaint within the time specified by the court —i.e., on or before June 13, 2016. However, on that date (June 13, 2016), counsel for Chemed shareholder Michael Kvint filed a letter with the court requesting a two -week extension (1) to file a motion to substitute Mr. Kvint as Lead Plaintiff, in place of Lead Plaintiff KBC; and (2) in that capacity, to file an amended Complaint. Alternatively, counsel for Mr. Kvint requested that any dismissal of the action be with prejudice to KBC only. On June 14, 2016, Chemed filed a reply letter with the court, reserving its rights to oppose any motion filed by Mr. Kvint and, if warranted, to oppose any other actions taken by Mr. Kvint to proceed with the action (including by filing an untimely amended Complaint). On July 21, 2016, the court entered an Oral Order providing Mr. Kvint until June 30, 2016 to file a Motion to Substitute and Motion for Leave to File an Amended Complaint. On that date, Mr. Kvint filed, under seal, a Motion To Substitute Plaintiff and File Amended Complaint, and attached a Proposed Amended Complaint. Chemed’s deadline for responding to that motion is July 18, 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 | 6 Months Ended |
Jun. 30, 2016 | |
Concentration Of Risk [Abstract] | |
Concentration Of Risk | 11. Concentration of Risk During the quarter VITAS had pharmacy services agreements with one service provider to provide specified pharmacy services for VITAS and its hospice patients . VITAS made purchases from this provider of $ 8.5 million and $ 9.5 million for the three months ended June 30, 2016 and 2015 , respectively . VITAS made purchases from two providers of $17.4 million and $18.7 million f or the six-month periods ending June 30, 2016 and 2015 , r espectively. Purchases from these providers exceed 90 % of all pharmacy services used by VITAS. |
Cash Overdrafts And Cash Equiva
Cash Overdrafts And Cash Equivalents | 6 Months Ended |
Jun. 30, 2016 | |
Cash Overdrafts And Cash Equivalents [Abstract] | |
Cash Overdrafts And Cash Equivalents | 12. Cash Overdrafts and Cash Equivalents I ncluded in accounts payable at June 30, 2016 is cash overdrafts payable of $3.9 million (December 31, 2015 - $9.3 million). From time to time throughout the year, we invest excess cash in money market funds with major commercial banks. We closely monitor the creditworthiness of the institutions with which we invest our ov ernight funds. We had $ 82,000 in cash equivalents as of June 30, 2016 . There was $ 76,000 in cash equ ivalents as of December 31, 2015 . The weighted average rate of return for our cash equivalents was 0.41 % at June 30, 2016 and 0.20 % at December 31, 2015 . |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments [Abstract] | |
Financial Instruments | 13. 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. 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. The following shows the carrying value, fair value and the hierarchy for our financial instruments as of June 30 , 2016 (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) Mutual fund investments of deferred compensation plans held in trust $ 53,127 $ 53,127 $ - $ - Long-term debt 147,500 - 147,500 - 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) Mutual fund investments of deferred compensation plans held in trust $ 49,481 $ 49,481 $ - $ - Long-term debt 91,250 - 91,250 - For the mutual fund investments carrying value is fair value. All outstanding long-term debt is at a floating interest rate tied to LIBOR. Therefore, the carrying amount is a reasonable estimation of fair value. |
Capital Stock Repurchase Plan T
Capital Stock Repurchase Plan Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Capital Stock Repurchase Plan Transactions [Abstract] | |
Capital Stock Repurchases Plan Transactions | 14. Capital Stock Repurchase Plan Transactions We repurchased the following capital stock for the three and six months ended June 30, 2016 and 2015 : Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Total cost of repurchased shares (in thousands): $ 49,853 $ 29,762 $ 102,313 $ 29,762 Shares repurchased 380,134 250,000 780,134 250,000 Weighted average price per share $ 131.15 $ 119.05 $ 131.15 $ 119.05 In March 2016 , the Board of Directors authorized an additional $ 100.0 million for stock repurchase under Chemed’s existing share repurchase program. We currently have $ 50.2 m illion of au thorization remaining under this share repurchase plan. Of the $49.9 million and $102 .3 million in repurchases made during the three and six months ended June 30, 2016 respectively, $8.0 million was paid for in July 2016. Amounts repurchased but settled subsequent to the end of the periods are considered non-cash financing activities and excluded from the Consolidated Statement of Cash Flows. |
Recent Accounting Statements
Recent Accounting Statements | 6 Months Ended |
Jun. 30, 2016 | |
Recent Accounting Statements [Abstract] | |
Recent Accounting Statements | 15. Recent Accounting Statements In May 2014, the 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 February 2016, the FASB issued Accounting Standards Update “ASU No. 2016-02 – Leases” which introduces a lessee model that brings most leases on to the balance sheets and updates lessor accounting to align with changes in the lessee model and the revenue recognition standard. The guidance is effective for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of this ASU on our financial statements, existing lease recognition policies and disclosures. In March 2016, the FASB issued ASU No. 2016-09- “Compensation – Stock Compensation” which is part of the FASB’s Simplification Initiative. The object of this initiative is to identify, evaluate, and improve areas of GAAP. The areas of simplification in this initiative involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017. We are currently evaluating the impact of this ASU on our financial statements. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill [Abstract] | |
Goodwill | 16. Goodwill Shown below is movement in Goodwill (in thousands): Vitas Roto-Rooter Total 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 Foreign currency adjustments - 149 149 Balance at June 30, 2016 $ 328,301 $ 144,170 $ 472,471 |
Other Operating Expenses
Other Operating Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Other Operating Expenses [Abstract] | |
Other Operating Expenses | 17 . Other Operating Expenses During the three and six-months ended June 30 , 201 6 , the Company recorded early retirement related costs and accelerated stock-based compensation expense of approximately $ 4.5 million pretax and $2.8 million after-tax related to the early retirement of VITAS’ former Chief Executive Officer . The accrual was calculated in accordance with the terms of his employment agreement. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Revenue Recognition [Abstract] | |
Schedule Of Medicare Cap Liability Activity | June 30, 2016 2015 Beginning balance January 1, $ 1,165 $ 6,112 2015 measurement period - (165) Payments (618) (4,782) Ending balance June 30, $ 547 $ 1,165 |
Schedule Of Cost Of Charity Care | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 $ 1,715 $ 1,885 $ 3,521 $ 3,859 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segments [Abstract] | |
Service Revenues And Sales And After-Tax Earnings By Business Segment | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Service Revenues and Sales VITAS $ 278,739 $ 276,460 $ 556,266 $ 546,073 Roto-Rooter 111,670 105,461 224,532 212,500 Total $ 390,409 $ 381,921 $ 780,798 $ 758,573 After-tax Earnings VITAS $ 18,550 $ 21,800 $ 37,637 $ 41,116 Roto-Rooter 13,341 12,153 26,359 24,161 Total 31,891 33,953 63,996 65,277 Corporate (7,006) (6,978) (14,271) (13,765) Net income $ 24,885 $ 26,975 $ 49,725 $ 51,512 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule Of Computation Of Earnings Per Share | Net Income For the Three Months Ended June 30, Income Shares Earnings per Share 2016 Earnings $ 24,885 16,443 $ 1.51 Dilutive stock options - 289 Nonvested stock awards - 99 Diluted earnings $ 24,885 16,831 $ 1.48 2015 Earnings $ 26,975 16,880 $ 1.60 Dilutive stock options - 390 Nonvested stock awards - 149 Diluted earnings $ 26,975 17,419 $ 1.55 Net Income For the Six Months Ended June 30, Income Shares Earnings per Share 2016 Earnings $ 49,725 16,583 $ 3.00 Dilutive stock options - 297 Nonvested stock awards - 119 Diluted earnings $ 49,725 16,999 $ 2.93 2015 Earnings $ 51,512 16,872 $ 3.05 Dilutive stock options - 395 Nonvested stock awards - 152 Diluted earnings $ 51,512 17,419 $ 2.96 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Long-Term Debt [Abstract] | |
Debt Outstanding | Revolver $ 60,000 Term loan 87,500 Total 147,500 Current portion of long-term debt (7,500) Long-term debt $ 140,000 |
Schedule of Principal Payments of the Term Loan | 2016 $ 3,750 2017 8,750 2018 10,000 2019 65,000 $ 87,500 |
Financial Debt Covenants | Description Requirement Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA) < 3.50 to 1.00 Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges) > 1.50 to 1.00 Annual Operating Lease Commitment < $50.0 million |
Other Income_(Expense) - Net (T
Other Income/(Expense) - Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Income/(Expense) - Net [Abstract] | |
Schedule Of Other Income/(Expense)- Net | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Market value adjustment on assets held in deferred compensation trust $ 3,188 $ 498 $ 201 $ 1,448 Loss on disposal of property and equipment (57) (63) (90) (15) Interest income - net 85 86 182 130 Other - net 1 15 - (464) Total other income/(expense) - net $ 3,217 $ 536 $ 293 $ 1,099 |
Independent Contractor Operat28
Independent Contractor Operations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Independent Contractor Operations [Abstract] | |
Schedule Of Independent Contractors | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Revenues $ 9,770 $ 9,527 $ 19,629 $ 18,991 Pretax profits 6,024 5,661 12,180 11,218 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Retirement Plans [Abstract] | |
Schedule Of Expenses For Retirement, Profit-Sharing Plans, Excess Benefit Plans And Other Similar Plans | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 $ 5,861 $ 2,991 $ 6,387 $ 7,178 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30 , 2016 (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) Mutual fund investments of deferred compensation plans held in trust $ 53,127 $ 53,127 $ - $ - Long-term debt 147,500 - 147,500 - 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) Mutual fund investments of deferred compensation plans held in trust $ 49,481 $ 49,481 $ - $ - Long-term debt 91,250 - 91,250 - |
Capital Stock Repurchase Plan31
Capital Stock Repurchase Plan Transactions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Capital Stock Repurchase Plan Transactions [Abstract] | |
Schedule Of Capital Stock Repurchases | Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Total cost of repurchased shares (in thousands): $ 49,853 $ 29,762 $ 102,313 $ 29,762 Shares repurchased 380,134 250,000 780,134 250,000 Weighted average price per share $ 131.15 $ 119.05 $ 131.15 $ 119.05 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill [Abstract] | |
Schedule of movement in Goodwill | Vitas Roto-Rooter Total 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 Foreign currency adjustments - 149 149 Balance at June 30, 2016 $ 328,301 $ 144,170 $ 472,471 |
Basis Of Presentation (Narrativ
Basis Of Presentation (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basis Of Presentation [Abstract] | ||||
Classification adjustments | $ 435,000 | $ 448,000 | $ 974,000 | $ 897,000 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue Recognition [line items] | |||||
Medicare cap reversal | $ 0 | $ 0 | $ 165,000 | ||
Percentage of automatic budget reductions | 2.00% | ||||
Unbilled Revenue | $ 1,900,000 | $ 1,900,000 | |||
Two Program Projected Measurement Period Liability [Member] | |||||
Revenue Recognition [line items] | |||||
Additional amount owed for Medicare cap | $ 1,900,000 | $ 1,900,000 |
Revenue Recognition (Schedule O
Revenue Recognition (Schedule Of Medicare Cap Liability Activity) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue Recognition [Abstract] | ||
Beginning Balance January 1, | $ 1,165 | $ 6,112 |
2015 measurement period | (165) | |
Payments | (618) | (4,782) |
Ending Balance June 30, | $ 547 | $ 1,165 |
Revenue Recognition (Schedule36
Revenue Recognition (Schedule Of Cost Of Charity Care) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue Recognition [Abstract] | ||||
Charity care cost | $ 1,715 | $ 1,885 | $ 3,521 | $ 3,859 |
Segments (Service Revenues And
Segments (Service Revenues And Sales And After-Tax Earnings By Business Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total service revenues and sales | $ 390,409 | $ 381,921 | $ 780,798 | $ 758,573 |
Net income | 24,885 | 26,975 | 49,725 | 51,512 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total service revenues and sales | 390,409 | 381,921 | 780,798 | 758,573 |
Net income | 31,891 | 33,953 | 63,996 | 65,277 |
Segment VITAS [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total service revenues and sales | 278,739 | 276,460 | 556,266 | 546,073 |
Net income | 18,550 | 21,800 | 37,637 | 41,116 |
Segment Roto-Rooter [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total service revenues and sales | 111,670 | 105,461 | 224,532 | 212,500 |
Net income | 13,341 | 12,153 | 26,359 | 24,161 |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net income | $ (7,006) | $ (6,978) | $ (14,271) | $ (13,765) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Excluded stock options | 418,000 | 411,000 | 418,000 | 411,000 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Earnings, Income | $ 24,885 | $ 26,975 | $ 49,725 | $ 51,512 |
Diluted earnings, Income | $ 24,885 | $ 26,975 | $ 49,725 | $ 51,512 |
Net Income, Earnings, Shares | 16,443 | 16,880 | 16,583 | 16,872 |
Dilutive stock options, Shares | 289 | 390 | 297 | 395 |
Nonvested stock awards, Shares | 99 | 149 | 119 | 152 |
Net Income, Diluted Earnings, Shares | 16,831 | 17,419 | 16,999 | 17,419 |
Earnings per Share | $ 1.51 | $ 1.60 | $ 3 | $ 3.05 |
Earnings per Share, Diluted earnings | $ 1.48 | $ 1.55 | $ 2.93 | $ 2.96 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |
Standby letters of credit issued | $ 37,400,000 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Unused lines of credit | $ 252,600,000 |
2014 Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Revolving credit facility period, years | 5 years |
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 |
2014 Credit Agreement [Member] | Medium-term Notes [Member] | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 100,000,000 |
Long-Term Debt (Debt Outstandin
Long-Term Debt (Debt Outstanding) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total | $ 147,500 | |
Current portion of long term debt | (7,500) | $ (7,500) |
Long-term debt | 140,000 | $ 83,750 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total | 60,000 | |
Medium-term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 87,500 |
Long-Term Debt (Schedule of Pri
Long-Term Debt (Schedule of Principal Payments of the Term Loan) (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
Total | $ 147,500 |
Medium-term Notes [Member] | |
Debt Instrument [Line Items] | |
2,016 | 3,750 |
2,017 | 8,750 |
2,018 | 10,000 |
2,019 | 65,000 |
Total | $ 87,500 |
Long-Term Debt (Financial Debt
Long-Term Debt (Financial Debt Covenants) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Long-Term Debt [Abstract] | |
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA), Requirement | 3.50 |
Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges), Requirement | 1.50 |
Annual Operating Lease Commitment, Requirement | $ 50 |
Other Income_(Expense) - Net (S
Other Income/(Expense) - Net (Schedule Of Other Income/(Expense)- Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income/(Expense) - Net [Abstract] | ||||
Market value adjustment on assets held in deferred compensation trust | $ 3,188 | $ 498 | $ 201 | $ 1,448 |
Loss on disposal of property and equipment | (57) | (63) | (90) | (15) |
Interest income - net | 85 | 86 | 182 | 130 |
Other - net | 1 | 15 | (464) | |
Total other income/(expense) - net | $ 3,217 | $ 536 | $ 293 | $ 1,099 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Narrative) (Details) - USD ($) | Feb. 19, 2016 | Jun. 30, 2016 |
Performance Based TSR [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 9,541 | |
Shares vesting period, years | 3 years | |
Cumulative compensation expense | $ 1,400,000 | |
Performance Based EPS [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 9,541 | |
Shares vesting period, years | 3 years | |
Cumulative compensation expense | $ 557,000 |
Independent Contractor Operat46
Independent Contractor Operations (Narrative) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Independent Contractor Operations [Line Items] | ||
Notes receivable from independent contractors | $ | $ 1.6 | $ 1.8 |
Roto-Rooter segment [Member] | ||
Independent Contractor Operations [Line Items] | ||
Independent contractors with sublicenses | item | 69 | |
Maximum [Member] | ||
Independent Contractor Operations [Line Items] | ||
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] | ||
Interest rates on loans | 0.00% | |
Terms of the loans to independent contractors, years | 2 months 15 days |
Independent Contractor Operat47
Independent Contractor Operations (Schedule Of Independent Contractors) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Independent Contractor Operations [Abstract] | ||||
Revenues | $ 9,770 | $ 9,527 | $ 19,629 | $ 18,991 |
Pretax profits | $ 6,024 | $ 5,661 | $ 12,180 | $ 11,218 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Retirement Plans [Abstract] | ||||
Defined contribution plans expense | $ 5,861 | $ 2,991 | $ 6,387 | $ 7,178 |
Legal And Regulatory Matters (D
Legal And Regulatory Matters (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of shareholder derivative lawsuits filed | item | 2 | |||
Number of days given to file amended complaint | 14 days | |||
Filling opportunity period | 30 days | |||
Extension period | 14 days | |||
U.S. v. VITAS [Member] | ||||
Loss Contingencies [Line Items] | ||||
Life expectancy period | 6 months | |||
Net costs incurred | $ | $ 1.2 | $ 1.4 | $ 3.5 | $ 2.7 |
Concentration Of Risk (Narrativ
Concentration Of Risk (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | |
Concentration Risk [Line Items] | ||||
Number of service providers | item | 1 | 2 | ||
Segment VITAS [Member] | ||||
Concentration Risk [Line Items] | ||||
VITAS made purchases from Enclara | $ | $ 8.5 | $ 9.5 | $ 17.4 | $ 18.7 |
Sales Revenue [Member] | Segment VITAS [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk services represent from vendor | 90.00% | 90.00% |
Cash Overdrafts And Cash Equi51
Cash Overdrafts And Cash Equivalents (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Cash Overdrafts And Cash Equivalents [Abstract] | ||
Cash overdrafts included in accounts payable | $ 3,900,000 | $ 9,300,000 |
Cash equivalents | $ 82,000 | $ 76,000 |
Cash equivalents weighted average rate of return | 0.41% | 0.20% |
Financial Instruments (Carrying
Financial Instruments (Carrying Value, Fair Value And Hierarchy Of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual fund investments of deferred compensation plans held in trust | $ 53,127 | $ 49,481 |
Long-term debt | 147,500 | 91,250 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual fund investments of deferred compensation plans held in trust | 53,127 | 49,481 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 147,500 | 91,250 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual fund investments of deferred compensation plans held in trust | ||
Long-term debt |
Capital Stock Repurchase Plan53
Capital Stock Repurchase Plan Transactions (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, amount authorized | $ 100,000 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 50,200 | $ 50,200 | ||||
Purchases of treasury stock | $ 49,853 | $ 29,762 | $ 102,313 | $ 29,762 | ||
Subsequent Event [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Purchases of treasury stock | $ 8,000 |
Capital Stock Repurchase Plan54
Capital Stock Repurchase Plan Transactions (Schedule Of Capital Stock Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Capital Stock Repurchase Plan Transactions [Abstract] | ||||
Total cost of repurchased shares | $ 49,853 | $ 29,762 | $ 102,313 | $ 29,762 |
Shares repurchased | 380,134 | 250,000 | 780,134 | 250,000 |
Weighted average price per share | $ 131.15 | $ 119.05 | $ 131.15 | $ 119.05 |
Goodwill (Schedule of movement
Goodwill (Schedule of movement in Goodwill) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Beginning balance | $ 472,322 | $ 466,722 |
Business combinations | 5,944 | |
Foreign currency adjustments | 149 | (344) |
Ending balance | 472,471 | 472,322 |
Segment VITAS [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 328,301 | 328,301 |
Business combinations | ||
Foreign currency adjustments | ||
Ending balance | 328,301 | 328,301 |
Roto-Rooter segment [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 144,021 | 138,421 |
Business combinations | 5,944 | |
Foreign currency adjustments | 149 | (344) |
Ending balance | $ 144,170 | $ 144,021 |
Other Operating Expenses (Narra
Other Operating Expenses (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Operating Expenses [Line Items] | |||
stock-based compensation expense, pre tax | $ 4,840 | $ 2,787 | |
Segment VITAS [Member] | Chief Executive Officer [Member] | |||
Other Operating Expenses [Line Items] | |||
Stock-based compensation expense, after tax | $ 2,800 | 2,800 | |
stock-based compensation expense, pre tax | $ 4,500 | $ 4,500 |