Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2018 |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2,018 |
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 | 15,937,665 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 13,686 | $ 11,121 |
Accounts receivable less allowances of $13,052 (2017 - $15,175) | 111,332 | 113,651 |
Inventories | 5,274 | 5,334 |
Prepaid income taxes | 16,160 | 29,848 |
Prepaid expenses | 15,047 | 16,092 |
Total current assets | 161,499 | 176,046 |
Investments of deferred compensation plans | 66,163 | 62,067 |
Properties and equipment, at cost, less accumulated depreciation of $235,890 (2017 - $230,034) | 144,706 | 143,034 |
Identifiable intangible assets less accumulated amortization of $32,913 (2017 - $32,887) | 55,163 | 54,865 |
Goodwill | 477,964 | 476,887 |
Other assets | 7,161 | 7,127 |
Total Assets | 912,656 | 920,026 |
Current liabilities | ||
Accounts payable | 42,639 | 48,372 |
Current portion of long-term debt | 10,000 | 10,000 |
Accrued insurance | 48,303 | 46,968 |
Accrued compensation | 49,685 | 62,933 |
Accrued legal | 1,643 | 1,786 |
Other current liabilities | 25,027 | 23,463 |
Total current liabilities | 177,297 | 193,522 |
Deferred income taxes | 13,832 | 16,640 |
Long-term debt | 132,500 | 91,200 |
Deferred compensation liabilities | 65,289 | 61,800 |
Other liabilities | 16,779 | 16,510 |
Total Liabilities | 405,697 | 379,672 |
Commitments and contingencies (Note 10) | ||
Stockholders' Equity | ||
Capital stock - authorized 80,000,000 shares $1 par; issued 34,884,610 shares (2017 - 34,732,192 shares) | 34,885 | 34,732 |
Paid-in capital | 712,991 | 695,797 |
Retained earnings | 1,078,690 | 1,038,955 |
Treasury stock - 19,030,212 shares (2017 - 18,694,047) | (1,321,843) | (1,231,332) |
Deferred compensation payable in Company stock | 2,236 | 2,202 |
Total Stockholders' Equity | 506,959 | 540,354 |
Total Liabilities and Stockholders' Equity | $ 912,656 | $ 920,026 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowances | $ 13,052 | $ 15,175 |
Properties and equipment, accumulated depreciation | 235,890 | 230,034 |
Identifiable intangible assets, accumulated amortization | $ 32,913 | $ 32,887 |
Capital stock - authorized | 80,000,000 | 80,000,000 |
Capital stock - par value | $ 1 | $ 1 |
Capital stock - issued | 34,884,610 | 34,732,192 |
Treasury stock | 19,030,212 | 18,694,047 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements Of Income [Abstract] | ||
Service revenues and sales | $ 439,176 | $ 405,864 |
Cost of services provided and goods sold (excluding depreciation) | 304,536 | 285,140 |
Selling, general and administrative expenses | 69,000 | 69,458 |
Depreciation | 9,267 | 8,893 |
Amortization | 27 | 46 |
Other operating expenses/(income) | (51) | 873 |
Total costs and expenses | 382,779 | 364,410 |
Income from operations | 56,397 | 41,454 |
Interest expense | (1,207) | (995) |
Other income - net | 1,018 | 2,463 |
Income before income taxes | 56,208 | 42,922 |
Income taxes | (11,212) | (13,078) |
Net income | $ 44,996 | $ 29,844 |
Earnings Per Share | ||
Net income | $ 2.79 | $ 1.84 |
Average number of shares outstanding | 16,100 | 16,219 |
Diluted Earnings Per Share | ||
Net income | $ 2.66 | $ 1.78 |
Average number of shares outstanding | 16,887 | 16,801 |
Cash Dividends Per Share | $ 0.28 | $ 0.26 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities | ||
Net income | $ 44,996 | $ 29,844 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,294 | 8,939 |
Provision for uncollectible accounts receivable | 4,249 | |
Stock option expense | 3,653 | 3,001 |
Benefit for deferred income taxes | (2,807) | (2,415) |
Noncash long-term incentive compensation | 1,721 | 827 |
Amortization of restricted stock awards | 291 | 336 |
Amortization of debt issuance costs | 128 | 129 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 1,591 | 17,972 |
Decrease in inventories | 60 | 322 |
Decrease in prepaid expenses | 1,045 | 1,003 |
Decrease in accounts payable and other current liabilities | (7,911) | (10,766) |
Increase in income taxes | 13,642 | 14,655 |
Increase in other assets | (4,263) | (2,140) |
Increase in other liabilities | 3,758 | 1,992 |
Other sources/(uses) | (5) | 838 |
Net cash provided by operating activities | 65,193 | 68,786 |
Cash Flows from Investing Activities | ||
Capital expenditures | (12,648) | (9,020) |
Business combinations | (1,450) | |
Other sources/(uses) | 181 | (70) |
Net cash used by investing activities | (13,917) | (9,090) |
Cash Flows from Financing Activities | ||
Proceeds from revolving line of credit | 134,300 | 116,000 |
Payments on revolving line of credit | (90,500) | (76,000) |
Purchases of treasury stock | (81,125) | (54,262) |
Proceeds from exercise of stock options | 8,923 | 5,635 |
Change in cash overdrafts payable | (6,671) | (8,607) |
Capital stock surrendered to pay taxes on stock-based compensation | (6,377) | (4,744) |
Dividends paid | (4,533) | (4,251) |
Payments on other long-term debt | (2,500) | (1,875) |
Other (uses)/sources | (228) | 147 |
Net cash used by financing activities | (48,711) | (27,957) |
Increase in Cash and Cash Equivalents | 2,565 | 31,739 |
Cash and cash equivalents at beginning of year | 11,121 | 15,310 |
Cash and cash equivalents at end of period | $ 13,686 | $ 47,049 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 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, 2017 . EARNINGS PER SHARE On January 1, 2017 , we adopted the provisions of Accounting Standards Update “ASU No. 2016-09 - Compensation – Stock Compensation” on a prospective basis. The impact of this ASU on our financial statements for the quarter s ended March 3 1 , 2018 and 2017 was to decrease our income tax expense by $ 3.8 million and $3.7 million, respectively, as the result of excess tax benefits on stock based compensation being recorded on the statements of income. This, combined with the required change in diluted share count, resulted in an increase to basic and diluted earnings per share of $0. 24 and $0.21 , respectively for the quarter ended March 31, 2018 . For the quarter ended March 31, 2017 the result was to increase basic and diluted earnings per share by $0.23 and $0.22 , respectively. CASH FLOW CLASSIFICATION In August 2016, the FASB issued Accounting Standards Update “ASU No. 2016-15 – Cash Flow Classification” which amends guidance on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of ASU 2016-15 was to reduce diversity in practice related to eight specific cash flow issues. The guidance in this ASU was effective for fiscal years beginning after December 15, 2017. We adopted this ASU as of January 1, 2018. There was no material effect to our statements of cash flow. INCOME TAXES The enactment of the Tax Cuts and Jobs Act (“the Act”) and subsequent issue of SAB 118 provides for a measurement period not to exceed one year in order to complete implementation of the Act. We have recognized and disclosed provisional amounts for material items in the prior period. We expect to complete our implementation within o ne year consistent with SAB 118. W e have not recognized a provisional amount for GILTI tax as we do not expect this to materially impact the financial statements. We have not adjusted or recognized any other provisional amounts related to the Act during the quarter ended March 31, 2018 . As a result of the enactment of the Act, o ur effective income tax rate was 19.9% in the first quarter of 2018 compared to 30.5% during the first quarter of 2017. Excess tax benefit on stock options reduced our income tax expenses by $3.8 million and $3.7 million, respectively for the quarters ended March 31, 2018 and 2017. NON-CASH TRANSACTIONS Included in the accompanying Consolidated Balance Sheets are $1.1 million and $2.7 million of capitalized property and equipment which were not paid as of March 31, 2018 and December 31, 2017, respectively. These amounts have been excluded from capital expenditures in the accompanying Consolidated Statements of Cash Flow. There are no material non-cash amounts included in interest expense for any period presented. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update “ASU No. 2014-09 – Revenue from Contracts with Customers.” The standard and subsequent amendments are theoretically intended to develop a common revenue standard for removing inconsistencies and weaknesses, improve comparability, provide for more useful information to users through improved disclosure requirements and simplify the preparation of financial statements. The standard is also referred to Accounting Standards Codification No. 606 (“ASC606”). We adopted ASC 606 effective January 1, 2018. The required disclosures of ASC 606 and impact of adoption are discussed below for each of our operating subsidiaries. Vitas S ervice revenue for VITAS is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing patient care. These amounts are due from third-party payors, primarily commercial health insurers and government programs (Medicare and Medicaid), and includes variable consideration for revenue adjustments due to settlements of audits and reviews, as well as certain hospice-specific revenue capitations. Amounts are generally billed monthly or subsequent to patient discharge. Subsequent changes in the transaction price initially recognized are not significant. Hospice services are provided on a daily basis and the type of service provided is determined based on a physician’s determination of each patient’s specific needs on that given day. Reimbursement rates for hospice services are on a per diem basis regardless of the type of service provided or the payor. Reimbursement rates from government programs are established by the appropriate governmental agency and are standard across all hospice providers. Reimbursement rates from health insurers are negotiated with each payor and generally structured to closely mirror the Medicare reimbursement model. The types of hospice services provided and associated reimbursement model for each are as follows: Routine Home Care occurs when a patient receives hospice care in their home, including a nursing home setting. The routine home care rate is paid for each day that a patient is in a hospice program and is not receiving one of the other categories of hospice care. For Medicare patients, the routine home care rate reflects a two-tiered rate, with a higher rate for the first 60 days of a hospice patient’s care and a lower rate for days 61 and after. In addition, there is a Service Intensity Add-on payment which covers direct home care visits conducted by a registered nurse or social worker in the last seven days of a hospice patient’s life, reimbursed up to four hours per day in fifteen minute increments at the continuous home care rate. General Inpatient Care occurs when a patient requires services in a controlled setting for a short period of time for pain control or symptom management which cannot be managed in other settings. General inpatient care services must be provided in a Medicare or Medicaid certified hospital or long-term care facility or at a freestanding inpatient hospice facility with the required registered nurse staffing. Continuous Home Care is provided to patients while at home, including a nursing home setting, during periods of crisis when intensive monitoring and care, primarily nursing care, is required in order to achieve palliation or management of acute medical symptoms. Continuous home care requires a minimum of 8 hours of care within a 24-hour day, which begins at midnight. The care must be predominantly nursing care provided by either a registered nurse or licensed practical nurse. While the published Medicare continuous home care rates are daily rates, Medicare pays for continuous home care in fifteen minute increments. This fifteen minute rate is calculated by dividing the daily rate by 96. Respite Care permits a hospice patient to receive services on an inpatient basis for a short period of time in order to provide relief for the patient’s family or other caregivers from the demands of caring for the patient. A hospice can receive payment for respite care for a given patient for up to five consecutive days at a time, after which respite care is reimbursed at the routine home care rate. Each level of care represents a separate promise under the contract of care and is provided independently for each patient contingent upon the patient’s specific medical needs as determined by a physician . However, the clinical criteria used to determine a patient’s level of care is consistent across all patients, given that, each patient is subject to the same payor rules and regulations. As a result, we have concluded that each level of care is capable of being distinct and is distinct in the context of the contract. Furthermore, we have determined that each level of care represents a stand ready service provided as a series of either days or hours of patient care. We believe that the performance obligations for each level of care meet criteria to be satisfied over time. VITAS recognizes revenue based on the service output. VITAS believes this to be the most faithful depiction of the transfer of control of services as the patient simultaneously receives and consumes the benefits provided by our performance. Revenue is recognized on a daily or hourly basis for each patient in accordance with the reimbursement model for each type of service. VITAS’ performance obligations relate to contracts with an expected duration of less than one year. Therefore, VITAS has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The unsatisfied or partially satisfied performance obligations referred to above relate to bereavement services provided to patients’ families for at least 12 months after discharge. Care is provided to patients regardless of their ability to pay. Patients who meet our criteria for charity care are provided care without charge. There is no revenue or associated accounts receivable in the accompanying consolidated financial statements related to charity care. The cost of providing charity care during the quarters ended March 31, 2018 and 2017 was $2.1 million and $1.9 million , respectively. The cost of charity care is included in cost of services provided and goods sold and is calculated by taking the ratio of charity care days to total days of care and multiplying by the total cost of care. Generally, patients who are covered by third-party payors are responsible for related deductibles and coinsurance which vary in amount. VITAS also provides service to patients without a reimbursement source and may offer those patients discounts from standard charges. VITAS estimates the transaction price for patients with deductibles and coinsurance, along with those uninsured patients, based on historical experience and current conditions. The estimate of any contractual adjustments, discounts or implicit price concessions reduces the amount of revenue initially recognized. Subsequent changes to the estimate of the transaction price are recorded as adjustments to patient service revenue in the period of change. Subsequent changes that are determined to be the result of an adverse change in the patients’ ability to pay (i.e. change in credit risk) are recorded as bad debt expense. VITAS has no material adjustments related to subsequent changes in the estimate of the transaction price or subsequent changes as the result of an adverse change in the patient’s ability to pay for any period reported. Laws and regulations concerning government programs, including Medicare and Medicaid, are complex and subject to varying interpretation. Compliance with such laws and regulations may be subject to future government review and interpretation. Additionally, the contracts we have with commercial health insurance payors provide for retroactive audit and review of claims. Settlement with third party payors for retroactive adjustments due to audits, reviews or investigations are considered variable consideration and are included in the determination of the estimated transaction price for providing patient care. The variable consideration is estimated based on the terms of the payment agreement, existing correspondence from the payor and our historical settlement activity. These estimates are adjusted in future periods, as new information becomes available. We are subject to certain limitations on Medicare payments for services which are considered variable consideration , as follows: Inpatient Cap. If the number of inpatient care days any hospice program provides to Medicare beneficiaries exceeds 20% of the total days of hospice care such program provided to all Medicare patients for an annual period beginning September 28, the days in excess of the 20% figure may be reimbursed only at the routine homecare rate. None of VITAS’ hospice programs exceeded the payment limits on inpatient services during the quarters ended March 31, 2018 and 2017. Medicare Cap. We are also subject to a Medicare annual per-beneficiary cap (“Medicare cap”). Compliance with the Medicare cap is measured in one of two ways based on a provider election. The “streamlined” method compares total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by that Medicare provider number 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 Sep tember 27 of the following year. At March 31, 2018 all our programs except one are using the “streamlined” method. The “proportional” method compares the total Medicare payments received under a Medicare provider number with respect to services provided to all Medicare hospice care beneficiaries in the program or programs covered by the Medicare provider number between September 28 and September 27 of the following year with the product of the per beneficiary cap amount and a pro-rated number of Medicare beneficiaries receiving hospice services from that program during the same period. The pro-rated number of Medicare beneficiaries is calculated based on the ratio of days the beneficiary received hospice services during the measurement period to the total number of days the beneficiary received hospice services. We actively monitor each of our hospice programs, by provider number, as to their specific admission, discharge rate and median length of stay data in an attempt to determine whether revenues are likely to exceed the annual per-beneficiary Medicare cap. Should we determine that revenues for a program are likely to exceed the Medicare cap based on projected trends, we attempt to institute corrective actions, which include changes to the patient mix and increased patient admissions. However, should we project our corrective action will not prevent that program from exceeding its Medicare cap, we estimate revenue recognized during the government fiscal year that will require repayment to the Federal government under the Medicare cap and record an adjustment to revenue of an amount equal to a ratable portion of our best estimate for the year. In 2013, the U.S. government implemented automatic budget reductions of 2.0% for all government payees, including hospice benefits paid under the Medicare program. In 2015, CMS determined that the Medicare cap should be calculated “as if” sequestration did not occur. As a result of this decision, VITAS has received notification from our third party intermediary that an additional $2.5 million is owed for Medicare cap in three programs arising during the 2013 through 2017 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 appealed CMS’s methodology change. During the quarter ended March 31, 2018, we reversed $1.8 million of the $2.4 million Medicare cap revenue reduction recognized in the fourth quarter of 2017 due to improved metrics in two VITAS programs . No Medicare cap liability was recorded for the quarter ended March 31, 2017. For VITAS’ patients in the nursing home setting in which Medicaid pays the nursing home room and board, VITAS serves as a pass-through between Medicaid and the nursing home. We are responsible for paying the nursing home for that patient’s room and board. Medicaid reimburses us for 95% of the amount we have paid. This results in a 5% net expense for VITAS related to nursing home room and board. This transaction creates a performance obligation in that VITAS is facilitating room and board being delivered to our patient. As a result, the 5% net expense is recognized as a contra-revenue account under ASC 606 in the accompanying financial statements. The composition of patient care service revenue by payor an d level of care for the quarter ended March 31 , 2018 is as follows : Medicare Medicaid Commercial Total Routine home care $ 224,021 $ 11,280 $ 5,730 $ 241,031 Continuous care 27,632 1,603 1,531 30,766 Inpatient care 18,857 2,048 1,203 22,108 $ 270,510 $ 14,931 $ 8,464 $ 293,905 All other revenue - self-pay, respite care, etc. 1,741 Subtotal $ 295,646 Medicare cap adjustment 1,818 Implicit price concessions (2,833) Room and board, net (2,618) Net revenue $ 292,013 Roto-Rooter Roto-Rooter provides plumbing, drain cleaning, water restoration and other related services to both residential and commercial customers primarily in the United States. Services are provided through a network of company-owned branches, independent contractors and franchisees. Service revenue for Roto-Rooter is reported at the amount that reflects the ultimate consideration we expect to receive in exchange for providing services. Roto-Rooter owns and operates branches focusing mainly on large population centers in the United States Roto-Rooter’s primary lines of business in company-owned branches consist of plumbing, sewer and drain cleaning, excavation and water restoration. For purposes of ASC 606 analysis, plumbing, sewer and drain cleaning, and excavation have been combined into one portfolio and are referred to as “short-term core services”. Water restoration is analyzed as a separate portfolio. The following describes the key characteristics of these portfolios: Short-term Core Services are plumbing, drain and sewer cleaning and excavation services. These services are provided to both commercial and residential customers. The duration of services provided in this category range from a few hours to a few days. There are no significant warranty costs or on-going obligations to the customer once a service has been completed. For residential customers, payment is received at the time of job completion before the Roto-Rooter technician leaves the residence. Commercial customers may be granted credit subject to internally designated authority limits and credit check guidelines. If credit is granted, payment terms are 30 days or less. Each job in this category is a distinct service with a distinct performance obligation to the customer. Revenue is recognized at the completion of each job. Variable consideration consists of pre-invoice discounts and post-invoice discounts. Pre-invoice discounts are given in the form of coupons or price concessions. Post-invoice discounts consist of credit memos generally granted to resolve customer service issues. Variable consideration is estimated based on historical activity and recorded at the time service is completed. Water Restoration Services involve the remediation of water and humidity after a flood. These services are provided to both commercial and residential customers. The duration of services provided in this category generally ranges from 3 to 5 days. There are no significant warranties or on-going obligations to the customer once service has been completed. The majority of these services are paid by the customer’s insurance company. Variable consideration relates primarily to allowances taken by insurance companies upon payment. Variable consideration is estimated based on historical activity and recorded at the time service is completed. For both short-term core services and water restoration services, Roto-Rooter satisfies its performance obligation at a point in time. The services provided generally involve fixing plumbing, drainage or flood-related issues at the customer’s property. At the time service is complete, the customer acknowledges its obligation to pay for service and its satisfaction with the service performed. This provides evidence that the customer has accepted the service and Roto-Rooter is now entitled to payment. As such, Roto-Rooter recognizes revenue for these services upon completion of the job and receipt of customer acknowledgement. Roto-Rooter’s performance obligations for short-term core services and water restoration services relate to contracts with an expected duration of less than a year. Therefore, Roto-Rooter has elected to apply the optional exception provided in ASC 606 and is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. Roto-Rooter does not have significant unsatisfied or partially unsatisfied performance obligations at the time of initial revenue recognition for short-term core or water restoration services. Roto-Rooter owns the rights to certain territories and contracts with an independent third-party to operate the territory under Roto-Rooter’s registered trademarks. The contract is for a specified term but cancellable by either party without penalty with 90 days advance notice. Under the terms of these arrangements, Roto-Rooter provides certain back office support and advertising along with a limited license to use Roto-Rooter’s registered trademarks. The independent contractor is responsible for all day-to-day management of the business including staffing decisions and pricing of services provided. All performance obligations of Roto-Rooter cease at the termination of the arrangement. Independent contractors pay Roto-Rooter a standard fee calculated as a percentage of their weekly labor sales. The primary value for the independent contractors under these arrangements is the right to use Roto-Rooter’s registered trademarks. Roto-Rooter recognizes revenue from independent contractors over-time (weekly) as the independent contractor’s labor sales are completed. Payment from independent contractors is also received on a weekly basis. The use of Roto-Rooter’s registered trademarks and advertising provides immediate value to the independent contractor as a result of Roto-Rooter’s nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements. Roto-Rooter has licensed the rights to operate under Roto-Rooter’s registered trademarks in other territories to franchisees. The contract is for a 10 year term but cancellable by Roto-Rooter for cause with 60 day advance notice without penalty. The franchisee may cancel the contract for any reason with 60 days advance notice without penalty. Under the terms of the contract, Roto-Rooter provides national advertising and consultation on various aspects of operating a Roto-Rooter business along with the right to use Roto-Rooter’s registered trademarks. The franchisee is responsible for all day- to-day management of the business including staffing decisions, pricing of services provided and local advertising spend and placement. All performance obligations of Roto-Rooter cease at the termination of the arrangement. Franchisees pay Roto-Rooter a standard monthly fee based on the population within the franchise territory. The standard fee is revised on a yearly basis based on changes in the Consumer Price Index for All Urban Consumers. The primary value for the franchisees under this arrangement is the right to use Roto-Rooter’s registered trademarks. Roto-Rooter recognizes revenue from franchisees over-time (monthly). Payment from franchisees is also received on a monthly basis. The use of Roto-Rooter’s registered trademarks and advertising provides immediate value to the franchisees as a result of Roto-Rooter’s nationally recognized brand. Therefore, over-time recognition provides the most faithful depiction of the transfer of services as the customer simultaneously receives and consumes the benefits provided. There is no significant variable consideration related to these arrangements. The composition of disagg regated revenue for the quarter ended March 31 , 2018 are as follows: Short-term core service jobs $ 104,086 Water restoration 27,737 Contractor revenue 12,365 Franchise fees 1,592 All other 3,320 Subtotal $ 149,100 Implicit price concessions and credit memos (1,937) Net revenue $ 147,163 Initial Adoption of ASC 606 The Company utilized the modified retrospective method of adoption for all contracts. Except for the changes discussed below, the Company has consistently applied the accounting policies to all periods presented in the consolidated financial statements. Sales tax collected from customers at Roto-Rooter is excluded from revenue under ASC 606 and prior revenue standards. For VITAS, expenses related to payor audits and reviews, as well as variable consideration estimated for patient deductibles and coinsurance, have been historically estimated as revenue was recognized and classified as bad debt expense, included in the consolidated statements of income as selling, general and administrative expense. Upon adoption of ASC 606, these expenses are classified as contra-revenue. There is no change in the timing of recognition related to the variable consideration. The amount of these expenses during the quarter-ended March 31, 2018 was $2.8 million. Also for VITAS, the 5% net expense related to Medicaid room and board has been historically recorded on a net basis in cost of services provided in the consolidated income statements. Upon adoption of ASC 606, due to the change in the residual value method required by ASC 606, the expense will be classified as a contra-revenue. The amount of the change in the classification for these expenses during the quarter-ended March 31, 2018 was $2.6 million. There has been no change in the evaluation of Medicaid room and board related to net versus gross presentation. Related to Roto-Rooter, expenses related to post-invoice variable consideration in our short-term core portfolio, and adjustments made subsequent to initial estimates related to allowances taken by insurance companies for water restoration, have been classified as a contra-revenue account in the statements of income. These amounts were previously classified as bad debt expense in SG&A. The amount of the change in classification for these expenses during the quarter-ended March 31, 2018 was $1.9 million . The initial estimate related to allowances taken by insurance companies for water restoration services have historically been classified as contra-revenue and did not change as a result of the transition. There was no material impact on the consolidated balance sheets related to the initial adoption. T here is no impact to consolidated net inco me as a result of the initial adoption . As a result of the change in classifications in the statements of income, amounts previously included in the provision for uncollectible accounts in the statements of cash flow have been included in the decrease/(increase) in accounts receivable line item in 2018. The total impact of the change from prior revenue guidance (ASC 605) to guidance adopted on January 1, 2018 related to classification in the statements of income is as follows (dollars in thousands): Impact for the three months ended March 31, 2018 ASC 605 Adjustment ASC 606 Service revenue and sales $ 446,564 $ (7,388) $ 439,176 Cost of services provided and goods sold 307,154 (2,618) 304,536 Selling, general and administrative expenses 73,770 (4,770) 69,000 |
Segments
Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segments [Abstract] | |
Segments | 3. Segments Service revenues and sales and after-tax earnings by business segment are as follows (in thousands): Three months ended March 31, 2018 2017 Service Revenues and Sales VITAS $ 292,013 $ 282,316 Roto-Rooter 147,163 123,548 Total $ 439,176 $ 405,864 After-tax Income/(Loss) VITAS $ 32,015 $ 20,597 Roto-Rooter 22,938 14,624 Total 54,953 35,221 Corporate (9,957) (5,377) Net income $ 44,996 $ 29,844 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 | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, Income Shares Earnings per Share 2018 Earnings $ 44,996 16,100 $ 2.79 Dilutive stock options - 680 Nonvested stock awards - 107 Diluted earnings $ 44,996 16,887 $ 2.66 2017 Earnings $ 29,844 16,219 $ 1.84 Dilutive stock options - 490 Nonvested stock awards - 92 Diluted earnings $ 29,844 16,801 $ 1.78 For the three month periods ended March 31, 2018 and 2017, 328,000 an d 402,000 , respectively, stock options were excluded in the computation of dilutive earnings per share because they would have been anti-dilutive. |
Long-Term Debt And Lines of Cre
Long-Term Debt And Lines of Credit | 3 Months Ended |
Mar. 31, 2018 | |
Long-Term Debt And Lines of Credit [Abstract] | |
Long-Term Debt And Lines of Credit | 5. Long-Term Debt and Lines of Credit 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 generally LIBOR plus a tiered additional rate which varies based on our current leverage ratio. The interest rate as of March 31, 2018 is LIBOR plus 1 13 basis points. The debt outstanding as of March 31, 2018 consists of the following: Revolver $ 70,000 Term loan 72,500 Total 142,500 Current portion of long-term debt (10,000) Long-term debt $ 132,500 Scheduled principal payments of the term loan are as follows: 2018 $ 7,500 2019 65,000 $ 72,500 T he 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 March 31, 2018 . We have issued $35.8 million in standby le tters of credit as of March 31, 2018 mainly for insurance purposes. Issued letters of credit reduce our available credit under the 2014 Cr edit Agreement. As of March 31, 2018 , we have approximately $244.2 million of unused lines of credit available and eligible to be drawn down under our revolving credit facility. |
Other Operating (Income)_ Expen
Other Operating (Income)/ Expenses | 3 Months Ended |
Mar. 31, 2018 | |
Other Operating (Income)/ Expenses [Abstract] | |
Other Operating (Income)/ Expenses | 6 . Other Operating (Income)/Expenses Three months ended March 31, 2018 2017 Gain on disposal of fixed assets $ (51) $ - Program closure expenses - 873 Total other operating (income)/expenses $ (51) $ 873 During the three months ended March 31, 2017 , the Company recorded $873,000 in expenses related to the closure of three Alabama programs at VITAS . |
Other Income - Net
Other Income - Net | 3 Months Ended |
Mar. 31, 2018 | |
Other Income -Net [Abstract] | |
Other Income - Net | 7 . Other Income – Net Other income -- net comprises the following (in thousands): Three months ended March 31, 2018 2017 Market value adjustment on assets held in deferred compensation trust $ 860 $ 2,615 Interest income 158 85 Other - net - (237) Total other income - net $ 1,018 $ 2,463 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2018 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 8 . Stock-Based Compensation Plans On February 16 , 2018 , the Compensation/Incentive Committee of the Board of Directors (“CIC”) granted 7, 523 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, 2020 , 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 $ 2.6 million. On February 16, 2018 , the CIC also granted 7, 523 PSUs contingent upon the achievement of certain earnings per share (“EPS”) targets for the three -year perio d ending December 31, 2020 . At the end of each reporting period, the Company estimates the number of shares that it believes will ultima tely be earned and records the corresponding 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 $ 1.9 million . |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2018 | |
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 and are recorded in selling, general and administrative expenses . Ex penses for the Company’s retirement and profit-sharing plans, excess benefit plans and other similar plans are as follows (in thousands): Three months ended March 31, 2018 2017 $ 5,166 $ 6,157 |
Legal And Regulatory Matters
Legal And Regulatory Matters | 3 Months Ended |
Mar. 31, 2018 | |
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 reasonably estimable. Regulatory Matters and Litigation The Company and certain current and former directors and officers are defendants in a case captioned In re Chemed Corp. Shareholder Derivative Litigation , No. 13 Civ. 1854 (LPS) (CJB) (D. Del.), which was consolidated on February 2, 2015. On February 2, 2015, the Court appointed KBC Asset Management NV 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 and defendants renewed a previously filed motion to dismiss those claims and allegations. The consolidated Complaint named fourteen individual defendants, together with the Company as nominal defendant. The Complaint alleges a claim for breach of fiduciary duty against the individual defendants for allegedly permitting the Company to submit false claims to the U.S. government. The Complaint 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 May 12, 2016, the Court issued a Memorandum Order granting Chemed’s motion to dismiss, and 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 (i.e., by June 13, 2016) 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. However, on June 13, 2016, counsel for Chemed shareholder Michael Kvint filed a letter with the Court requesting a two -week extension to file a motion to substitute Mr. Kvint as lead plaintiff, in place of Lead Plaintiff KBC and 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 June 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. Mr. Kvint’s motion was fully briefed by the parties. On April 25, 2017, Magistrate Judge Burke issued a Report and Recommendation recommending that the Court permit Mr. Kvint to intervene as Lead Plaintiff and grant leave to amend the complaint to replead the duty of loyalty claim only. On May 16, 2017, Chief Judge Stark signed an Order adopting that Report and Recommendation. Plaintiff Kvint filed a Corrected Amended Complaint on May 30, 2017. On September 13, 2017, the Court entered an order dismissing with prejudice the claims against defendants Timothy S. O’Toole and Joel F. Gemunder and permitting Defendants to file a Motion to Dismiss the Corrected Amended Complaint . The matter has been fully briefed and argued . As the Company has previously disclosed, the legal fees and costs associated with defending against this lawsuit are presently being paid by insurance. For additional procedural history of this litigation, please refer to our prior quarterly and annual filings. On October 30, 2017, the Company entered into a Settlement Agreement (the “Settlement Agreement”), to resolve the civil litigation brought by the United States Department of Justice (“DOJ”) on behalf of the OIG and the relators under a lawsuit concerning hospice operations of VITAS, filed 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”). The court dismissed the 2013 Action on February 2, 2018. The litigation involved patient eligibility for the Routine Home Care and Continuous Home Care levels of hospice services, provided by VITAS from July 24, 2002 through May 2, 2013. VITAS and certain of its subsidiaries entered into a Corporate Integrity Agreement (“CIA”) with the OIG on October 30, 2017 in connection with the settlement of a False Claims Act Case. The CIA formalizes various aspects of VITAS’ already existing Compliance Program and contains requirements designed to document compliance with federal healthcare program requirements. It has a term of five years during which it imposes monitoring, reporting, certification, oversight, screening and training obligations, certain of which have previously been implemented by VITAS. It also requires VITAS to engage an Independent Review Organization to perform auditing and review functions and to prepare reports regarding compliance with federal healthcare programs. In the event of breach of the CIA, VITAS could become liable for payment of stipulated penalties or could be excluded from participation in federal healthcare programs. Under the Settlement Agreement, the Company paid $75 million plus interest, plus certain attorney fees and expenses of qui tam relators. The Company made these payments during the fourth quarter of 2017. The Spottiswood Settlement has also been resolved upon VITAS’s agreement to pay $500,000 to the State of Illinois. This resolution is subject to execution of a final agreement. The Company previously recorded a $90 million loss reserve ( $55.8 million after-tax) related to the Settlement Agreement, Spottiswood Settlement, and associated costs in the second quarter of 2017. As of March 31, 2018 , an accrual of $1.1 million remains on the consolidated balance sheet relating to the amount due to the State of Illinois and unpaid legal and administrative fees. Under the Settlement Agreement, the United States agrees to release the Company, VITAS, and its hospice operation subsidiaries from any civil or administrative monetary liability relating to any patients’ disputed terminal medical prognosis of six months or less; a lack of medical necessity for billed Continuous Home Care, General Inpatient Care, or Respite Care levels of hospice care; or that the claims for those levels of hospice care were not eligible for payment for any other reason. The OIG agrees, conditioned on the Company’s full payment and in consideration of VITAS’s obligations under the CIA, to release its permissive exclusion rights and refrain from instituting any administrative action seeking to exclude the Company, VITAS, and its affiliates from participating in Medicare, Medicaid, or other federal healthcare programs in this regard. The Settlement Agreement and Spottiswood Settlement also resolve allegations made against the Company by various qui tam relators, who will be required to dismiss their claims with prejudice. The Settlement Agreement and Spottiswood Settlement both reflect the Company’s disagreement with the United States’ and State of Illinois’ claims and contain no admissions of facts or liability on the part of the Company or any of its subsidiaries. The costs incurred related to U.S. v. Vitas and related regulatory matters were $2.2 million for the first quarter of 2017 . No costs were incurred during the first quarter of 2018. Jordan Seper (“Seper”), a Registered Nurse at VITAS’ Inland Empire program from May 12, 2014 to March 21, 2015, filed a lawsuit in San Francisco Superior Court on September 26, 2016. She alleged VITAS Healthcare Corp of CA (“VITAS CA”) (1) failed to provide minimum wage for all hours worked; (2) failed to provide overtime for all hours worked; (3) failed to provide a second meal period; (4) failed to provide rest breaks; (5) failed to indemnify for necessary expenditures; (6) failed to timely pay wages due at time of separation; and (7) engaged in unfair business practices. Seper seeks a state-wide class action of current and former non-exempt employees employed with VITAS in California within the four years preceding the filing of the lawsuit. She seeks court determination that this action may be maintained as a class action for the entire California class and subclasses, designation as class representative, declaratory relief, injunctive relief, damages (including wages for regular or overtime hours allegedly worked but not paid, premium payments for missed meal or rest periods, and unreimbursed expenses), all applicable penalties associated with each claim, pre and post-judgment interest, and attorneys’ fees and costs. Seper served VITAS CA with the lawsuit, Jordan A. Seper on behalf of herself and others similarly situated v. VITAS Healthcare Corporation of California, a Delaware corporation; VITAS Healthcare Corp of CA, a business entity unknown; and DOES 1 to 100, inclusive ; Los Angeles Superior Court Case Number BC 642857 on October 13, 2016 (“Jordan Seper case”). On November 14, 2016, the Parties filed a Stipulation to transfer the venue of the lawsuit from San Francisco to Los Angeles. The Los Angeles Superior Court Complex Division accepted transfer of the case on December 6, 2016 and stayed the case. On December 16, 2016, VITAS CA filed its Answer and served written discovery on Seper. Jiwann Chhina (“Chhina”), hired by VITAS as a Home Health Aide on February 5, 2002, is currently a Licensed Vocational Nurse for VITAS’ San Diego program. On September 27, 2016, Chhina filed a lawsuit in San Diego Superior Court, alleging (1) failure to pay minimum wage for all hours worked; (2) failure to provide overtime for all hours worked; (3) failure to pay wages for all hours at the regular rate; (4) failure to provide meal periods; (5) failure to provide rest breaks; (6) failure to provide complete and accurate wage statements; (7) failure to pay for all reimbursement expenses; (8) unfair business practices; and (9) violation of the California Private Attorneys General Act. Chhina seeks to pursue these claims in the form of a state-wide class action of current and former non-exempt employees employed with VITAS in California within the four years preceding the filing of the lawsuit. He seeks court determination that this action may be maintained as a class action for the entire California class and subclasses, designation as class representative, declaratory relief, injunctive relief, damages (including wages for regular or overtime hours allegedly worked but not paid, premium payments for missed meal or rest period, and unreimbursed expenses), all applicable penalties associated with each claim, pre-judgment interest, and attorneys’ fees and costs. Chhina served VITAS CA with the lawsuit, Jiwan Chhina v. VITAS Health Services of California, Inc., a California corporation; VITAS Healthcare Corporation of California, a Delaware corporation; VITAS Healthcare Corporation of California, a Delaware corporation dba VITAS Healthcare Inc.; and DOES 1 to 100, inclusive ; San Diego Superior Court Case Number 37-2015-00033978-CU-OE-CTL on November 3, 2016 (“Jiwann Chhina case”). On December 1, 2016, VITAS CA filed its Answer and served written discovery on Chhina. On May 19, 2017, Chere Phillips (a Home Health Aide in Sacramento) and Lady Moore (a former Social Worker in Sacramento) filed a lawsuit against VITAS CA in Sacramento County Superior Court, alleging claims for (1) failure to pay all wages due; (2) failure to authorize and permit rest periods; (3) failure to provide off-duty meal periods; (4) failure to furnish accurate wage statements; (5) unreimbursed business expenses; (6) waiting time penalties; (7) violations of unfair competition law; and (8) violation of the Private Attorneys General Act. The case is captioned: Chere Phillips and Lady Moore v. VITAS Healthcare Corporation of California , Sacramento County Superior Court, Case No. 34-2017-0021-2755. Plaintiffs sought to pursue these claims in the form of a state-wide class action of current and former non-exempt employees employed with VITAS CA in California within the four years preceding the filing of the lawsuit. Plaintiffs served VITAS with the lawsuit on June 5, 2017. VITAS CA timely answered the Complaint generally denying the Plaintiffs’ allegations. The Court has stayed all class discovery in this case pending resolution of mediation in the Jordan Seper and Jiwann Chhina cases. There are currently three other lawsuits against VITAS pending in the superior courts of other California counties that contain claims and class periods that substantially overlap with Phillips’ and Moore’s claims: the Jordan Seper and Jiwann Chhina cases, and Williams v. VITAS Healthcare Corporation of California , filed on May 22, 2017 in Alameda County Superior Court, RG 17853886. Jazzina Williams’ (a Home Health Aide in Sacramento) lawsuit alleges claims for (1) failure to pay all wages due; (2) failure to authorize and permit rest periods; (3) failure to provide off-duty meal periods; (4) failure to furnish accurate wage statements; (5) unreimbursed business expenses; (6) waiting time penalties; and (7) violations of the Private Attorneys General Act. Williams seeks to pursue these claims in the form of a state-wide class action of current and former non-exempt employees. Plaintiff served VITAS with the lawsuit on May 31, 2017. VITAS CA timely answered the Complaint generally denying Plaintiff’s allegations. Williams is pursing discovery of her individual claim and has agreed to a stay of class discovery pending mediation in the Jordan Seper and Jiwann Chhina cases. Defendant filed and served each of Plaintiffs Williams, Phillips, and Moore with a Notice of Related Cases on July 19, 2017. Defendant understands that the Jordan Seper and Jiwann Chhina cases will be effectively consolidated in Los Angeles County Superior court; Chhina will be dismissed as a separate action and joined with Seper through the filing of an amended complaint in Seper in which Chhina is also identified as a named plaintiff. The Company is not able to reasonably estimate the probability of loss or range of loss for any of these lawsuits at this time. 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, 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 | 3 Months Ended |
Mar. 31, 2018 | |
Concentration Of Risk [Abstract] | |
Concentration Of Risk | 11 . Concentration of Risk During the quarter VITAS had pharmacy services agreements with o ne service provider to provide specified pharmacy services for VITAS and its hospice patients. VITAS made purchases from this provider of $8.2 and $8.9 million for the three months ended March 31, 2018 and 2017, respectively. Purchases from this provider represent more than 90 % of all pharmacy services used by VITAS during each period presented. |
Cash Overdrafts And Cash Equiva
Cash Overdrafts And Cash Equivalents | 3 Months Ended |
Mar. 31, 2018 | |
Cash Overdrafts And Cash Equivalents [Abstract] | |
Cash Overdrafts And Cash Equivalents | 12 . Cash Overdrafts and Cash Equivalents There are $8.6 million in cash overdrafts payable included in accounts payable at March 31, 2018 (December 31, 2017 - $ 15.3 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. The amount invested was not material for each balance sheet date presented. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
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 Th e following shows the carrying value, fair value and the hierarchy for our financial instruments as of March 31, 2018 (in thousands): Fair Value Measure Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Mutual fund investments of deferred compensation plans held in trust $ 66,163 $ 66,163 $ - $ - Total debt 142,500 - 142,500 - The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2017 (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 $ 62,067 $ 62,067 $ - $ - Total debt 101,200 - 101,200 - For cash and cash equivalents, accounts receivable and accounts payable, the carrying amount is a reasonable estimate of fair value because of the liquidity and short-term nature of these instruments. As further described in Footnote 5, our outstanding long-term debt and current portion of long-term debt have floating interest rates that are reset at short-term intervals, generally 30 or 60 days. The interest rate we pay also includes an additional amount based on our current leverage ratio. As such, we believe our borrowings reflect significant nonperformance risks, mainly credit risk. Based on these factors, we believe the fair value of our long-term debt and current portion of long-term debt approximate the carrying value. |
Capital Stock Repurchase Plan T
Capital Stock Repurchase Plan Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Capital Stock Repurchase Plan Transactions [Abstract] | |
Capital Stock Repurchase Plan Transactions | 14 . Capital Stock Repurchase Plan Transactions We repurchased the following capital stock for the three months ended March 31, 2018 and 2017 : Three months ended March 31, 2018 2017 Total cost of repurchased shares (in thousands) $ 81,125 $ 54,262 Shares repurchased 300,000 300,000 Weighted average price per share $ 270.42 $ 180.87 In March 2018 , the Board of Directors authorized an additional $ 150.0 million for stock repurchase under Chemed’s existing share repurchase program. We currently have $ 124.4 m illion of au thorization remaining under this share repurchase plan. |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2018 | |
Recent Accounting Standards [Abstract] | |
Recent Accounting Standards | 15 . Recent Accounting Sta ndards 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. Based on the provisions of the ASU, we anticipate a material increase in both assets and liabilities when our current operating lease contracts are recorded on the balance sheets. We do not currently have a dollar estimate of the impact. In January 2017, the FASB issued Accounting Standards Update “ASU No. 2017-4 – Intangibles – Goodwill and Other”. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. The guidance in the ASU is effective for the Company in fiscal years beginning after December 15, 2019. Early adoption is permitted. We anticipate adoption of this standard will have no impact on our consolidated financial statements. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill [Abstract] | |
Goodwill | 16 . Goodwill During the first three months of 2018, we completed one business combination within our Roto-Rooter segment for $1.5 million in cash . A substantial portion of the aggregate purchase price was allocated to goodwill as shown below . The operating results of this business combination have been included in our results of operations since the acquisition date and are not material for the first three months ended March 31, 2018 or for the comparable prior year period. Shown below is movement in Goodwill (in thousands): Vitas Roto-Rooter Total Balance at December 31, 2017 $ 328,301 $ 148,586 $ 476,887 Business combinations - 1,107 1,107 Foreign currency adjustments - (30) (30) Balance at March 31, 2018 $ 328,301 $ 149,663 $ 477,964 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of Patient Care Service Revenue | Medicare Medicaid Commercial Total Routine home care $ 224,021 $ 11,280 $ 5,730 $ 241,031 Continuous care 27,632 1,603 1,531 30,766 Inpatient care 18,857 2,048 1,203 22,108 $ 270,510 $ 14,931 $ 8,464 $ 293,905 All other revenue - self-pay, respite care, etc. 1,741 Subtotal $ 295,646 Medicare cap adjustment 1,818 Implicit price concessions (2,833) Room and board, net (2,618) Net revenue $ 292,013 |
Schedule of Disaggregated Revenue | Short-term core service jobs $ 104,086 Water restoration 27,737 Contractor revenue 12,365 Franchise fees 1,592 All other 3,320 Subtotal $ 149,100 Implicit price concessions and credit memos (1,937) Net revenue $ 147,163 |
Change to Prior Revenue Guidance Related to Classification in The Statements of Income | Impact for the three months ended March 31, 2018 ASC 605 Adjustment ASC 606 Service revenue and sales $ 446,564 $ (7,388) $ 439,176 Cost of services provided and goods sold 307,154 (2,618) 304,536 Selling, general and administrative expenses 73,770 (4,770) 69,000 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segments [Abstract] | |
Service Revenues And Sales And After-Tax Earnings By Business Segment | Three months ended March 31, 2018 2017 Service Revenues and Sales VITAS $ 292,013 $ 282,316 Roto-Rooter 147,163 123,548 Total $ 439,176 $ 405,864 After-tax Income/(Loss) VITAS $ 32,015 $ 20,597 Roto-Rooter 22,938 14,624 Total 54,953 35,221 Corporate (9,957) (5,377) Net income $ 44,996 $ 29,844 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share[Abstract] | |
Schedule Of Computation Of Earnings Per Share | Net Income For the Three Months Ended March 31, Income Shares Earnings per Share 2018 Earnings $ 44,996 16,100 $ 2.79 Dilutive stock options - 680 Nonvested stock awards - 107 Diluted earnings $ 44,996 16,887 $ 2.66 2017 Earnings $ 29,844 16,219 $ 1.84 Dilutive stock options - 490 Nonvested stock awards - 92 Diluted earnings $ 29,844 16,801 $ 1.78 |
Long-Term Debt And Lines of C25
Long-Term Debt And Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Long-Term Debt And Lines of Credit [Abstract] | |
Debt Outstanding | Revolver $ 70,000 Term loan 72,500 Total 142,500 Current portion of long-term debt (10,000) Long-term debt $ 132,500 |
Schedule of Principal Payments of the Term Loan | 2018 $ 7,500 2019 65,000 $ 72,500 |
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 Operating (Income)_ Exp26
Other Operating (Income)/ Expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Operating (Income)/ Expenses [Abstract] | |
Schedule Of Other Operating (Income)/ Expenses | Three months ended March 31, 2018 2017 Gain on disposal of fixed assets $ (51) $ - Program closure expenses - 873 Total other operating (income)/expenses $ (51) $ 873 |
Other Income - Net (Tables)
Other Income - Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income -Net [Abstract] | |
Schedule of Other Income -Net | Three months ended March 31, 2018 2017 Market value adjustment on assets held in deferred compensation trust $ 860 $ 2,615 Interest income 158 85 Other - net - (237) Total other income - net $ 1,018 $ 2,463 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Plans [Abstract] | |
Schedule Of Expenses For Retirement, Profit-Sharing Plans, Excess Benefit Plans And Other Similar Plans | Three months ended March 31, 2018 2017 $ 5,166 $ 6,157 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments [Abstract] | |
Carrying Value, Fair Value And Hierarchy Of Financial Instruments | 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 $ 66,163 $ 66,163 $ - $ - Total debt 142,500 - 142,500 - The following shows the carrying value, fair value and the hierarchy for our financial instruments as of December 31, 2017 (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 $ 62,067 $ 62,067 $ - $ - Total debt 101,200 - 101,200 - |
Capital Stock Repurchase Plan30
Capital Stock Repurchase Plan Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Capital Stock Repurchase Plan Transactions [Abstract] | |
Schedule Of Capital Stock Repurchases | Three months ended March 31, 2018 2017 Total cost of repurchased shares (in thousands) $ 81,125 $ 54,262 Shares repurchased 300,000 300,000 Weighted average price per share $ 270.42 $ 180.87 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill [Abstract] | |
Schedule of movement in Goodwill | Vitas Roto-Rooter Total Balance at December 31, 2017 $ 328,301 $ 148,586 $ 476,887 Business combinations - 1,107 1,107 Foreign currency adjustments - (30) (30) Balance at March 31, 2018 $ 328,301 $ 149,663 $ 477,964 |
Basis Of Presentation (Narrativ
Basis Of Presentation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Decrease income taxes | $ 11,212 | $ 13,078 | |
Effective tax rate | 19.90% | 30.50% | |
Excess tax benefit on stock options reduced income tax expense | $ 3,800 | $ 3,700 | |
Increase to basic earnings per share | $ 2.79 | $ 1.84 | |
Increase to diluted earnings per share | $ 2.66 | $ 1.78 | |
Period to complete implementation | 1 year | ||
Capitalized property and equipment | $ 1,100 | $ 2,700 | |
ASU No. 2016-09 [Member] | |||
Decrease income taxes | $ 3,800 | $ 3,700 | |
Increase to basic earnings per share | $ 0.24 | $ 0.23 | |
Increase to diluted earnings per share | $ 0.21 | $ 0.22 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2013 | |
Revenue Recognition [line items] | ||||
Period of tier one care rate | 60 days | |||
Period of tier two care rate | 61 days | |||
Period of services provided after discharge | 12 months | |||
Charity care cost | $ 2,100 | $ 1,900 | ||
Inpatient Cap percentage Max | 20.00% | |||
Percentage of automatic budget reductions | 2.00% | |||
Medicare cap adjustment | $ 1,818 | 0 | ||
Percentage of medicaid reimbursement | 95.00% | |||
Percentage of expenses | 5.00% | |||
Credit payment terms | 30 days | |||
Duration of advance notice of cancelation without penalty for both parties | 90 days | |||
Term of contract | 10 years | |||
Duration of advance notice of cancelation without penatly | 60 days | |||
Net pretax expense/(income) from medicare cap liability | $ 1,800 | $ 2,400 | ||
Reclassification of expenses | 69,000 | 69,458 | ||
Reclassification of expenses | $ 304,536 | $ 285,140 | ||
Maximum [Member] | ||||
Revenue Recognition [line items] | ||||
Duration of services provided | 5 days | |||
Minimum [Member] | ||||
Revenue Recognition [line items] | ||||
Duration of services provided | 3 days | |||
Three Program Projected Measurement Period Liability [Member] | ||||
Revenue Recognition [line items] | ||||
Unbilled Revenue | $ 2,500 | |||
Segment Roto-Rooter [Member] | Adoption of ASC 606 [Member] | ||||
Revenue Recognition [line items] | ||||
Reclassification of expenses | 1,900 | |||
Segment VITAS [Member] | Adoption of ASC 606 [Member] | ||||
Revenue Recognition [line items] | ||||
Reclassification of expenses | 2,800 | |||
Reclassification of expenses | $ 2,600 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Patient Care Service Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | $ 295,646 | |
Medicare cap adjustment | 1,818 | $ 0 |
Implicit | (2,833) | |
Room and board, net | (2,618) | |
Net Revenue | 292,013 | |
Routine Home Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 241,031 | |
Continuous Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 30,766 | |
Inpatient Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 22,108 | |
Care Services Total [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 293,905 | |
All Other Revenue- Self-pay, Respite Care, Ect. [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 1,741 | |
Medicare [Member] | Routine Home Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 224,021 | |
Medicare [Member] | Continuous Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 27,632 | |
Medicare [Member] | Inpatient Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 18,857 | |
Medicare [Member] | Care Services Total [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 270,510 | |
Medicaid [Member] | Routine Home Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 11,280 | |
Medicaid [Member] | Continuous Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 1,603 | |
Medicaid [Member] | Inpatient Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 2,048 | |
Medicaid [Member] | Care Services Total [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 14,931 | |
Commercial [Member] | Routine Home Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 5,730 | |
Commercial [Member] | Continuous Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 1,531 | |
Commercial [Member] | Inpatient Care [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | 1,203 | |
Commercial [Member] | Care Services Total [Member] | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Care service revenue | $ 8,464 |
Revenue Recognition (Schedule35
Revenue Recognition (Schedule of Disaggregated Revenue) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregated revenues | $ 149,100 |
Implicit | (2,833) |
Net disaggregated revenues | 147,163 |
Short-Term Core Service Jobs [Member] | |
Disaggregated revenues | 104,086 |
Water Restoration [Member] | |
Disaggregated revenues | 27,737 |
Contractor Revenue [Member] | |
Disaggregated revenues | 12,365 |
Franchise Fees [Member] | |
Disaggregated revenues | 1,592 |
All Other [Member] | |
Disaggregated revenues | 3,320 |
Implicit Price Concessions and Credit Memos [Member] | |
Implicit | $ (1,937) |
Revenue Recognition (Change to
Revenue Recognition (Change to Prior Revenue Guidance Related to Classification in The Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service revenues and sales | $ 439,176 | $ 405,864 |
Cost of services provided and goods sold (excluding depreciation) | 304,536 | 285,140 |
Selling, general and administrative expenses | 69,000 | $ 69,458 |
ASC 605 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service revenues and sales | 446,564 | |
Cost of services provided and goods sold (excluding depreciation) | 307,154 | |
Selling, general and administrative expenses | 73,770 | |
Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service revenues and sales | (7,388) | |
Cost of services provided and goods sold (excluding depreciation) | (2,618) | |
Selling, general and administrative expenses | (4,770) | |
ASC 606 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service revenues and sales | 439,176 | |
Cost of services provided and goods sold (excluding depreciation) | 304,536 | |
Selling, general and administrative expenses | $ 69,000 |
Segments (Service Revenues And
Segments (Service Revenues And Sales And After-Tax Earnings By Business Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total service revenues and sales | $ 439,176 | $ 405,864 |
After-tax Income/(Loss) | 44,996 | 29,844 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total service revenues and sales | 439,176 | 405,864 |
After-tax Income/(Loss) | 54,953 | 35,221 |
Segment VITAS [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total service revenues and sales | 292,013 | 282,316 |
After-tax Income/(Loss) | 32,015 | 20,597 |
Segment Roto-Rooter [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total service revenues and sales | 147,163 | 123,548 |
After-tax Income/(Loss) | 22,938 | 14,624 |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
After-tax Income/(Loss) | $ (9,957) | $ (5,377) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share[Abstract] | ||
Excluded stock options | 328,000 | 402,000 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share[Abstract] | ||
Earnings, Income | $ 44,996 | $ 29,844 |
Diluted Earnings, Income | $ 44,996 | $ 29,844 |
Earnings, Shares | 16,100 | 16,219 |
Dilutive stock options, Shares | 680 | 490 |
Nonvested stock awards, Shares | 107 | 92 |
Diluted Earnings, Shares | 16,887 | 16,801 |
Earnings per Share, Earnings | $ 2.79 | $ 1.84 |
Earnings per Share, Diluted earnings | $ 2.66 | $ 1.78 |
Long-Term Debt And Lines of C40
Long-Term Debt And Lines of Credit (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||
Standby letters of credit issued | $ 35,800,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unused lines of credit | $ 244,200,000 | |
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] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt | $ 100,000,000 |
Long-Term Debt And Lines of C41
Long-Term Debt And Lines of Credit (Debt Outstanding) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 142,500 | |
Current portion of long-term debt | (10,000) | $ (10,000) |
Long-term debt | 132,500 | $ 91,200 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total | 70,000 | |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 72,500 |
Long-Term Debt And Lines of C42
Long-Term Debt And Lines of Credit (Schedule of Principal Payments of the Term Loan) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
Total | $ 142,500 |
Term Loan [Member] | |
Debt Instrument [Line Items] | |
2,018 | 7,500 |
2,019 | 65,000 |
Total | $ 72,500 |
Long-Term Debt And Lines of C43
Long-Term Debt And Lines of Credit (Financial Debt Covenants) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Annual Operating Lease Commitment, Requirement | $ 50 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA), Requirement | 1 |
Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges), Requirement | 1 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Leverage Ratio (Consolidated Indebtedness/Consolidated Adj. EBITDA), Requirement | 3.50 |
Fixed Charge Coverage Ratio (Consolidated Free Cash Flow/Consolidated Fixed Charges), Requirement | 1.50 |
Other Operating (Income)_ Exp44
Other Operating (Income)/ Expenses (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Operating Expenses [Line Items] | ||
Other operating expenses | $ (51) | $ 873 |
Program Closure Expenses [Member] | ||
Other Operating Expenses [Line Items] | ||
Other operating expenses | $ 873 |
Other Operating (Income)_ Exp45
Other Operating (Income)/ Expenses (Schedule Of Other Operating (Income)/ Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total other operating (income)/expenses | $ (51) | $ 873 |
Gain On Disposal Of Fixed Assets [Member] | ||
Total other operating (income)/expenses | $ (51) | |
Program Closure Expenses [Member] | ||
Total other operating (income)/expenses | $ 873 |
Other Income - Net (Schedule of
Other Income - Net (Schedule of Other Income -Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income -Net [Abstract] | ||
Market value adjustment on assets held in deferred compensation trust | $ 860 | $ 2,615 |
Interest income | 158 | 85 |
Other - net | (237) | |
Total other income - net | $ 1,018 | $ 2,463 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | Feb. 16, 2018 | Mar. 31, 2018 |
Performance Based TSR [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of stock granted | 7,523 | |
Shares vesting period, years | 3 years | |
Cumulative compensation expense | $ 2.6 | |
Performance Based EPS [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of stock granted | 7,523 | |
Shares vesting period, years | 3 years | |
Cumulative compensation expense | $ 1.9 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Retirement Plans [Abstract] | ||
Defined contribution plans expense | $ 5,166 | $ 6,157 |
Legal And Regulatory Matters (N
Legal And Regulatory Matters (Narrative) (Details) | 3 Months Ended | |||
Mar. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||
Term to impose monitoring, reporting, certification, oversight, screening, and training | 5 years | |||
Accrued legal | $ 1,643,000 | $ 1,786,000 | ||
Number of other lawsuits | item | 3 | |||
Number of days given to file amended complaint | 30 days | |||
Extension period | 14 days | |||
Settlement Agreement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlements | 75,000,000 | |||
Spottiswood Settlement [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlements | $ 500,000 | |||
State Of Illinois [Member] | ||||
Loss Contingencies [Line Items] | ||||
Accrued legal | $ 1,100,000 | |||
U.S. v. VITAS [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement, after tax | $ 55,800,000 | |||
Litigation settlements | $ 90,000,000 | |||
Net costs incurred | $ 0 | $ 2,200,000 |
Concentration Of Risk (Narrativ
Concentration Of Risk (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)item | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Accounts payable | $ 42,639 | $ 48,372 | |
Segment VITAS [Member] | |||
Concentration Risk [Line Items] | |||
Number of service providers | item | 1 | ||
VITAS made purchases from Enclara | $ 8,200 | $ 8,900 | |
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 (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Cash Overdrafts And Cash Equivalents [Abstract] | ||
Cash overdrafts included in accounts payable | $ 8.6 | $ 15.3 |
Financial Instruments (Carrying
Financial Instruments (Carrying Value, Fair Value And Hierarchy Of Financial Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Period in which the interest rate will reset | 30 days | |
Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Period in which the interest rate will reset | 60 days | |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments of deferred compensation plans held in trust | $ 66,163 | $ 62,067 |
Long-term debt and current portion of long-term debt | 142,500 | 101,200 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments of deferred compensation plans held in trust | 66,163 | 62,067 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt and current portion of long-term debt | 142,500 | 101,200 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments of deferred compensation plans held in trust | ||
Long-term debt and current portion of long-term debt |
Capital Stock Repurchase Plan53
Capital Stock Repurchase Plan Transactions (Narrative) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Capital Stock Repurchase Plan Transactions [Abstract] | |
Stock repurchase program, amount authorized | $ 150 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 124.4 |
Capital Stock Repurchase Plan54
Capital Stock Repurchase Plan Transactions (Schedule Of Capital Stock Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Capital Stock Repurchase Plan Transactions [Abstract] | ||
Total cost of repurchased shares | $ 81,125 | $ 54,262 |
Shares repurchased | 300,000 | 300,000 |
Weighted average price per share | $ 270.42 | $ 180.87 |
Goodwill (Schedule of movement
Goodwill (Schedule of movement in Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)item | |
Goodwill [Line Items] | |
Beginning balance | $ 476,887 |
Business combinations | 1,107 |
Foreign currency adjustments | (30) |
Ending balance | 477,964 |
Segment VITAS [Member] | |
Goodwill [Line Items] | |
Beginning balance | 328,301 |
Business combinations | |
Foreign currency adjustments | |
Ending balance | 328,301 |
Roto-Rooter segment [Member] | |
Goodwill [Line Items] | |
Beginning balance | 148,586 |
Business combinations | 1,107 |
Foreign currency adjustments | (30) |
Ending balance | $ 149,663 |
Number of Business Combinations Completed | item | 1 |
Business comination, cash | $ 1,500 |