Cover Page
Cover Page - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 19, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-12015 | ||
Entity Registrant Name | HEALTHCARE SERVICES GROUP, INC. | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 23-2018365 | ||
Entity Address, Address Line One | 3220 Tillman Drive | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Bensalem | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19020 | ||
City Area Code | 215 | ||
Local Phone Number | 639-4274 | ||
Title of 12(b) Security | Common Stock ($.01 par value) | ||
Security Exchange Name | NASDAQ | ||
Trading Symbol | HCSG | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,430 | ||
Entity Common Stock, Shares Outstanding | 74,404 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement for the Registrant’s Annual Meeting of Shareholders to be held on May 26, 2020 have been incorporated by reference into Parts II and III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000731012 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 27,329 | $ 26,025 |
Marketable securities, at fair value | 90,711 | 76,362 |
Accounts and notes receivable, less allowance for doubtful accounts of $45,726 and $47,209 as of December 31, 2019 and 2018, respectively | 340,930 | 341,838 |
Inventories and supplies | 36,517 | 41,443 |
Prepaid expenses and other assets | 20,245 | 22,468 |
Total current assets | 515,732 | 508,136 |
Property and equipment, net | 28,820 | 12,900 |
Goodwill | 51,084 | 51,084 |
Other intangible assets, less accumulated amortization of $19,300 and $17,216 as of December 31, 2019 and 2018, respectively | 22,353 | 26,518 |
Notes receivable – long–term portion, less allowance for doubtful accounts of $6,667 and $10,000 as of December 31, 2019 and 2018, respectively | 46,992 | 43,043 |
Deferred compensation funding, at fair value | 37,247 | 29,113 |
Deferred income taxes | 20,364 | 20,552 |
Other noncurrent assets | 0 | 1,257 |
Total assets | 722,592 | 692,603 |
Current liabilities: | ||
Accounts payable | 54,418 | 61,467 |
Accrued payroll, accrued and withheld payroll taxes | 36,413 | 35,198 |
Other accrued expenses | 16,489 | 8,890 |
Borrowings under line of credit | 10,000 | 30,000 |
Income taxes payable | 8,075 | 7,140 |
Accrued insurance claims | 23,256 | 20,696 |
Total current liabilities | 148,651 | 163,391 |
Accrued insurance claims — long-term portion | 64,366 | 58,904 |
Deferred compensation liability | 37,621 | 29,528 |
Lease liability — long-term portion | 11,649 | |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY: | ||
Common Stock, $0.01 par value; 100,000 shares authorized; 75,557 and 75,344 shares issued, and 74,149 and 73,877 shares outstanding as of December 31, 2019 and 2018, respectively | 756 | 753 |
Additional paid-in capital | 270,614 | 259,440 |
Retained earnings | 195,455 | 190,092 |
Accumulated other comprehensive income, net of taxes | 2,919 | 158 |
Common Stock in treasury, at cost, 1,408 shares and 1,467 shares as of December 31, 2019 and 2018, respectively | (9,439) | (9,663) |
Total stockholders’ equity | 460,305 | 440,780 |
Total liabilities and stockholders’ equity | $ 722,592 | $ 692,603 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Allowance for doubtful accounts | $ 45,726 | $ 47,209 |
Accumulated amortization of other intangible assets | 19,300 | 17,216 |
Allowance for doubtful accounts, noncurrent | $ 6,667 | $ 10,000 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 75,557,000 | 75,344,000 |
Common stock outstanding (in shares) | 74,149,000 | 73,877,000 |
Common stock in treasury (in shares) | 1,408,000 | 1,467,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 1,840,778 | $ 2,002,601 | $ 1,861,206 |
Operating costs and expenses: | |||
Costs of services provided | 1,612,877 | 1,768,162 | 1,610,590 |
Selling, general and administrative | 150,022 | 136,603 | 126,732 |
Other income (expense): | |||
Investment and other income, net | 10,676 | 5,168 | 10,444 |
Interest expense | (3,459) | (3,094) | (1,363) |
Income before income taxes | 85,096 | 99,910 | 132,965 |
Income taxes | 20,515 | 16,386 | 44,739 |
Net income | $ 64,581 | $ 83,524 | $ 88,226 |
Per share data: | |||
Basic earnings per common share (in dollars per share) | $ 0.87 | $ 1.13 | $ 1.20 |
Diluted earnings per common share (in dollars per share) | $ 0.87 | $ 1.12 | $ 1.19 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 74,362 | 74,002 | 73,355 |
Diluted (in shares) | 74,590 | 74,612 | 74,348 |
Comprehensive income: | |||
Net income | $ 64,581 | $ 83,524 | $ 88,226 |
Other comprehensive income: | |||
Unrealized gain (loss) on available-for-sale marketable securities, net of taxes | 2,761 | (679) | 1,156 |
Total comprehensive income | $ 67,342 | $ 82,845 | $ 89,382 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 64,581 | $ 83,524 | $ 88,226 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,940 | 9,272 | 8,886 |
Bad debt provision | 25,480 | 51,387 | 6,250 |
Deferred income tax (benefit) expense | (684) | (13,013) | 1,887 |
Stock-based compensation expense | 6,865 | 5,900 | 5,985 |
Amortization of premium on marketable securities | 1,434 | 1,373 | 1,296 |
Unrealized (gain) loss on deferred compensation fund investments | (7,257) | 1,429 | (4,509) |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable | (29,532) | (44,363) | (121,639) |
Inventories and supplies | 4,765 | 950 | (1,873) |
Prepaid expenses and other assets | 3,480 | 1,054 | (9,545) |
Deferred compensation funding | (738) | (1,536) | (257) |
Accounts payable and other accrued expenses | (9,532) | (9,144) | 11,197 |
Accrued payroll, accrued and withheld payroll taxes | 3,517 | 6,085 | 11,927 |
Accrued insurance claims | 7,845 | (5,099) | (2,954) |
Deferred compensation liability | 8,482 | 450 | 5,061 |
Income taxes payable | 935 | (8,238) | 7,692 |
Net cash provided by operating activities | 93,581 | 80,031 | 7,630 |
Cash flows from investing activities: | |||
Disposals of fixed assets | 199 | 640 | 338 |
Additions to property and equipment | (4,368) | (4,940) | (5,397) |
Purchases of marketable securities | (33,544) | (14,297) | (33,861) |
Sales of marketable securities | 21,256 | 9,011 | 28,537 |
Cash paid for acquisitions | 0 | 0 | (4,584) |
Net cash used in investing activities | (16,457) | (9,586) | (14,967) |
Cash flows from financing activities: | |||
Dividends paid | (58,951) | (57,201) | (55,244) |
Reissuance of treasury stock pursuant to Dividend Reinvestment Plan | 90 | 89 | 95 |
Proceeds from the exercise of stock options | 3,628 | 8,801 | 12,808 |
Net (repayments) proceeds from short-term borrowings | (20,000) | (5,382) | 35,382 |
Payments of statutory withholding on net issuance of restricted stock units | (587) | (284) | 0 |
Net cash used in financing activities | (75,820) | (53,977) | (6,959) |
Net change in cash and cash equivalents | 1,304 | 16,468 | (14,296) |
Cash and cash equivalents at beginning of the period | 26,025 | 9,557 | 23,853 |
Cash and cash equivalents at end of the period | 27,329 | 26,025 | 9,557 |
Supplementary cash flow information: | |||
Cash paid for interest | 3,459 | 3,094 | 1,363 |
Cash paid for income taxes, net of refunds | 20,026 | 37,680 | 35,367 |
Contingent shares settled pursuant to acquisition | $ 1,012 | $ 2,291 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss), net of Taxes | Retained Earnings | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2016 | 74,204 | |||||
Beginning balance at Dec. 31, 2016 | $ 338,842 | $ 742 | $ 217,664 | $ (319) | $ 130,940 | $ (10,185) |
Comprehensive income: | ||||||
Net income for the period | 88,226 | 88,226 | ||||
Unrealized gain (loss) on available-for-sale marketable securities, net of taxes | 1,156 | 1,156 | ||||
Total comprehensive income | 89,382 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment (in shares) | 697 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment | 12,808 | $ 7 | 12,801 | |||
Share-based compensation expense — stock options, restricted stock and restricted stock units | 4,945 | 4,945 | ||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions | 156 | 181 | (25) | |||
Shares issued pursuant to Employee Stock Plan | 2,091 | 1,752 | 339 | |||
Dividends paid and accrued | (55,306) | (55,306) | ||||
Shares issued pursuant to Dividend Reinvestment Plan | 95 | 82 | 13 | |||
Shares issued pursuant to acquisition (in shares) | 59 | |||||
Shares issued pursuant to acquisition | 6,939 | $ 1 | 6,938 | |||
Ending balance (in shares) at Dec. 31, 2017 | 74,960 | |||||
Ending balance at Dec. 31, 2017 | 399,952 | $ 750 | 244,363 | 837 | 163,860 | (9,858) |
Comprehensive income: | ||||||
Net income for the period | 83,524 | 83,524 | ||||
Unrealized gain (loss) on available-for-sale marketable securities, net of taxes | (679) | (679) | ||||
Total comprehensive income | 82,845 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment (in shares) | 380 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment | 8,517 | $ 3 | 8,514 | |||
Share-based compensation expense — stock options, restricted stock and restricted stock units | 5,580 | 5,580 | ||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions | 354 | 519 | (165) | |||
Shares issued pursuant to Employee Stock Plan | 2,821 | 2,475 | 346 | |||
Dividends paid and accrued | (57,361) | (57,361) | ||||
Shares issued pursuant to Dividend Reinvestment Plan | 89 | 75 | 14 | |||
Contingent shares settled pursuant to acquisition | (2,291) | (2,291) | ||||
Other (in shares) | 4 | |||||
Other | 274 | 205 | 69 | |||
Ending balance (in shares) at Dec. 31, 2018 | 75,344 | |||||
Ending balance at Dec. 31, 2018 | 440,780 | $ 753 | 259,440 | 158 | 190,092 | (9,663) |
Comprehensive income: | ||||||
Net income for the period | 64,581 | 64,581 | ||||
Unrealized gain (loss) on available-for-sale marketable securities, net of taxes | 2,761 | 2,761 | ||||
Total comprehensive income | 67,342 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment (in shares) | 207 | |||||
Exercise of stock options and other stock-based compensation, net of shares tendered for payment | 3,628 | $ 3 | 3,625 | |||
Payment of statutory withholding on issuance of restricted stock and restricted stock units | (587) | (587) | ||||
Share-based compensation expense — stock options, restricted stock and restricted stock units | 6,590 | 6,590 | ||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions | 388 | 535 | (147) | |||
Shares issued pursuant to Employee Stock Plan | 2,130 | 1,781 | 349 | |||
Dividends paid and accrued | (59,218) | (59,218) | ||||
Shares issued pursuant to Dividend Reinvestment Plan | 90 | 68 | 22 | |||
Contingent shares settled pursuant to acquisition | (1,012) | (1,012) | ||||
Other (in shares) | 6 | |||||
Other | 174 | 174 | ||||
Ending balance (in shares) at Dec. 31, 2019 | 75,557 | |||||
Ending balance at Dec. 31, 2019 | $ 460,305 | $ 756 | $ 270,614 | $ 2,919 | $ 195,455 | $ (9,439) |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | Note 1— Description of Business and Significant Accounting Policies Nature of Operations Healthcare Services Group, Inc. (the “Company”) provides management, administrative and operating expertise and services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. Although the Company does not directly participate in any government reimbursement programs, the Company’s clients receive government reimbursements related to Medicare and Medicaid. Therefore, they are directly affected by any legislation relating to Medicare and Medicaid reimbursement programs. The Company provides services primarily pursuant to full service agreements with its clients. In such agreements, the Company is responsible for the day-to-day management of employees located at the clients’ facilities. The Company also provides services on the basis of management-only agreements for a limited number of clients. The agreements with clients typically provide for a renewable one year service term, cancelable by either party upon 30 to 90 days’ notice after an initial period of 60 to 120 days. The Company is organized into two reportable segments; housekeeping, laundry, linen and other services (“Housekeeping”), and dietary department services (“Dietary”). Housekeeping consists of managing the clients’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of a client’s facility, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items utilized at a client facility. Dietary consists of managing the clients’ dietary departments, which are principally responsible for food purchasing, meal preparation and dietitian professional services, which includes the development of menus that meet residents’ dietary needs. Use of Estimates in Financial Statements In preparing financial statements in conformity with U.S. GAAP, estimates and assumptions are made that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant estimates are used in determining, but are not limited to, the Company’s allowance for doubtful accounts, accrued insurance claims, valuations, deferred taxes and reviews for potential impairment. The estimates are based upon various factors including current and historical trends, as well as other pertinent industry and regulatory authority information. Management regularly evaluates this information to determine if it is necessary to update the basis for its estimates and to adjust for known changes. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Healthcare Services Group, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Fair Value of Financial Instruments The Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes valuation techniques that maximize the use of observable inputs (Levels 1 and 2) and minimize the use of unobservable inputs (Level 3) within the fair value hierarchy. Assets and liabilities are classified within the fair value hierarchy based on the lowest level (least observable) input that is significant to the measurement in its entirety. While unobservable inputs reflect the Company's market assumptions, preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets; Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and Level 3 – Significant inputs to the valuation model are unobservable The Company’s financial instruments that are measured at fair value on a recurring basis consist of marketable securities and the deferred compensation fund investments. Other financial instruments such as cash and cash equivalents, accounts and notes receivable, accounts payable (including income taxes payable and accrued expenses) and borrowings under the Company’s line of credit are short-term in nature, and therefore the carrying value of these instruments are deemed to approximate their fair value. See Note 6—Fair Value Measurements for the fair value hierarchy table and for details on the measurement of fair value for assets and liabilities. Cash and Cash Equivalents Cash and cash equivalents are held in U.S. financial institutions or in custodial accounts with U.S. financial institutions. Cash equivalents are defined as short-term, highly liquid investments with a maturity of three months or less at time of purchase that are readily convertible into cash and have insignificant interest rate risk. The Company currently has bank deposits with financial institutions in the U.S. that exceed FDIC insurance limits. Investments in Marketable Securities Marketable securities are defined as fixed income investments which are highly liquid and can be readily purchased or sold through established markets. As of December 31, 2019 and 2018, the Company had marketable securities of $90.7 million and $76.4 million, respectively, comprised primarily of tax-exempt municipal bonds. These investments are accounted for as available-for-sale securities and are reported at fair value on the consolidated balance sheets. For the years ended December 31, 2019 and 2018, $2.8 million of unrealized gains and $0.8 million of unrealized losses related to these investments were recorded in other comprehensive income, respectively. Unrealized gains and losses are recorded net of income taxes. These assets are available for future needs under the Company’s self-insurance programs and are held by the Company's wholly-owned captive subsidiary as required by state insurance regulations. The Company’s investment policy is intended to manage the assets to achieve the goals of preserving principal, maintaining adequate liquidity at all times, and maximizing returns subject to investment guidelines. The investment policy limits investment to certain types of instruments issued by institutions primarily with investment grade credit ratings and places restrictions on concentration by type and issuer. The Company periodically reviews the investments in marketable securities for other than temporary declines in fair value below the cost basis and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. As of December 31, 2019, management believes that the recorded value of the Company’s investments in marketable securities was recoverable in all material respects. See Note 6—Fair Value Measurements for other than temporary impairment considerations. Inventories and Supplies Inventories and supplies include housekeeping, linen and laundry supplies, as well as food provisions and supplies. Non-linen inventories and supplies are stated at a first-in, first-out (FIFO) basis to approximate the lower of cost or net realizable value. Linen supplies are amortized on a straight-line basis over their estimated useful life of 24 months. Revenue Recognition The Company recognizes revenue from service agreements with customers when or as the promised goods and services are provided to customers. Revenues are reported net of sales taxes that are collected from customers and remitted to taxing authorities. The guidance under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification subtopic 606 Revenue from Contracts with Customers (“ASC 606”) became effective and was adopted by the Company as of January 1, 2018, by applying the modified retrospective method for contracts that were not completed as of January 1, 2018. The standard requires the Company to recognize revenue as the promised goods and services within the terms of the Company’s contracts are performed and satisfied. The amount of revenue which the Company recognizes is based on the consideration which the Company expects to be entitled to in exchange for contracted promised goods and services. The adoption of this standard did not have a material impact to the Company's accounting for revenue earned relating to the Housekeeping and Dietary segments. The Company also did not recognize an opening adjustment to retained earnings as a result of the adoption of the standard. See Note 2—Revenue herein for additional revenue disclosure that is being presented as a result of the newly adopted standard. Prior period amounts were not adjusted and continue to be reported in accordance with previous guidance. Leases The guidance under FASB Accounting Standards Codification subtopic ASC 842 Leases (“ASC 842”) became effective and was adopted by the Company as of January 1, 2019, by applying a modified retrospective transition approach which resulted in the capitalization of the Company's existing operating leases as of January 1, 2019. As such, the Company records assets and liabilities on the balance sheet to recognize the rights and obligations arising from leasing arrangements with contractual terms greater than 12 months, as permitted by U.S. GAAP. A leasing arrangement includes any contract which entitles the Company to the right of use of an identified tangible asset where there are no restrictions as to the control or use of the asset, and the Company obtains substantially all of the economic benefits from the right of use. As of December 31, 2019 and 2018, the Company was only the lessee of operating lease arrangements. ASC 842 provided several optional practical expedients for use in transition. The Company elected to use what the FASB deemed the "package of practical expedients," which allowed the Company to not reassess previous conclusions on lease identification, lease classification and the accounting treatment for initial direct costs. The Company did not recognize an opening adjustment to retained earnings as a result of the adoption of ASC 842, and prior period amounts continue to be reported in accordance with previous guidance. Refer to Note 9 — Lease Commitments herein for further information. Property and Equipment Property and equipment, with the exception of those pertaining to leases, are stated at cost, net of accumulated depreciation. Additions, renewals and improvements are capitalized, while maintenance and repair costs are expensed when incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in income. Depreciation is recorded using the straight-line method over the following estimated useful lives: Housekeeping and Dietary equipment — 5 to 7 years; computer hardware and software — 3 to 7 years; and other, consisting of furniture and fixtures, leasehold improvements and vehicles — 5 to 10 years. Depreciation expense on property and equipment for the years ended December 31, 2019, 2018 and 2017 was $9.7 million, $4.9 million and $5.0 million, respectively. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current period. The Company accrues for probable tax obligations as required by facts and circumstances in various regulatory environments. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. When appropriate, valuation allowances are recorded to reduce deferred tax assets to amounts for which realization is more likely than not. Deferred tax assets and liabilities are more fully described in Note 13— Income Taxes. Uncertain income tax positions taken or expected to be taken in tax returns are reflected within the Company’s financial statements based on a recognition and measurement process. The Company may from time to time be assessed interest or penalties by taxing jurisdictions, although any such assessments historically have been minimal and immaterial to its financial results. When the Company has received an assessment for interest and/or penalties, it will be classified in the financial statements as selling, general and administrative expense. In addition, any interest or penalties relating to recognized uncertain tax positions would also be recorded in selling, general and administrative expense. Earnings per Common Share Basic earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated using the weighted-average number of common shares outstanding and dilutive common shares, such as those issuable upon exercise of stock options and upon the vesting of restricted stock and restricted stock units. Share-Based Compensation The Company estimates the fair value of share-based awards on the date of grant using the Black-Scholes valuation model for stock options and using the share price on the date of grant for restricted stock and restricted stock units. The value of the award is recognized ratably as an expense in the Company’s Consolidated Statements of Comprehensive Income over the requisite service periods, with adjustments made for forfeitures as they occur. Advertising Costs Advertising costs are expensed when incurred. Advertising costs were not material for the years ended December 31, 2019, 2018 and 2017. Impairment of Long-Lived Assets The carrying amounts of long-lived assets are periodically reviewed to determine whether current events or circumstances warrant adjustment to such carrying amounts. Any impairment would be measured as the amount that the carrying value of such assets exceeds their fair value, primarily based on estimated undiscounted cash flows. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell. Identifiable Intangible Assets and Goodwill Identifiable intangible assets are amortized on a straight-line basis over their respective lives. Goodwill represents the excess of cost over the fair value of net assets of acquired businesses. Management reviews the carrying value of goodwill at least annually during the fourth quarter of each year to assess for impairment, or more often if events or circumstances indicate that the carrying value may exceed its estimated fair value. No impairment loss was recognized on the Company’s intangible assets or goodwill for the years ended December 31, 2019, 2018 or 2017. In 2018, the Company adopted the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 no longer requires the Company to perform a hypothetical purchase price allocation to measure impairment, eliminating step 2 of the goodwill impairment test. Instead, impairment is measured using the difference of the carrying amount to the fair value of goodwill on a reporting unit basis. Additionally in 2018, the Company adopted the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software ("ASU 2018-15"). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The results of applying ASU 2018-15 were insignificant and did not have a material impact on the Company's consolidated financial statements. The capitalized implementation costs incurred from adopting ASU 2018-15 are recorded in the prepaid expenses and other assets caption in the Consolidated Balance Sheets. Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Gains or losses on the subsequent reissuance of shares are credited or charged to additional paid-in capital. Reclassification Certain prior period amounts have been reclassified to conform to current year presentation. The Company has modified its presentation of interest expense, which is now presented separately in the Consolidated Statements of Comprehensive Income. Correction of Immaterial Errors The Company updated its presentation of the income and costs associated with the Company's wholly-owned captive insurance company. Historically, such income and costs were reflected in the Company's revenues and costs of services provided within the Housekeeping segment. Such income and costs are now presented in "Investment and other income, net" in the Consolidated Statements of Comprehensive Income and for segment reporting purposes, those amounts are reflected in Corporate and eliminations. Revenues have been reduced to reflect such changes in the amounts of $6.2 million and $4.9 million respectively for the years ended 2018 and 2017, respectively. For the same periods, costs of services have been reduced to reflect such changes in the amounts of $3.8 million and $1.9 million, respectively. These amounts in the Consolidated Statement of Comprehensive Income resulted in corresponding increases of $2.4 million and $3.0 million to Investment and other income, net for the years ended 2018 and 2017, respectively. There was no impact to the Company's net income as a result of the historical errors or the corrections. Concentrations of Credit Risk The financial instruments that are subject to concentrations of credit risk are cash and cash equivalents, marketable securities, deferred compensation funding and accounts and notes receivable. The Company’s marketable securities are fixed income investments which are highly liquid and can be readily purchased or sold through established markets. At December 31, 2019 and 2018, substantially all of the Company’s cash and cash equivalents and marketable securities were held in one large financial institution located in the United States. The Company’s clients are concentrated in the healthcare industry and are primarily providers of long-term care. The revenues of many of the Company’s clients are highly reliant on Medicare, Medicaid and third party payors’ reimbursement funding rates. New legislation or changes in existing regulations could directly impact the governmental reimbursement programs in which the clients participate. As a result, the Company may not know the full effects of such programs until these laws are fully implemented and governmental agencies issue applicable regulations or guidance. Significant Clients For the years ended December 31, 2019 and 2018, Genesis Healthcare, Inc. ("Genesis") accounted for $287.8 million or 15.6% and $386.7 million or 19.3% of the Company's consolidated revenues, respectively. Although the Company expects to continue its relationship with Genesis, there can be no assurance thereof. The loss of such client, or a significant reduction in the revenues the Company receives from such client, could have a material adverse effect on the Company’s results of operations. In addition, if Genesis fails to abide by current payments terms, it could increase the Company’s accounts receivables balance and have a material adverse effect on the Company’s cash flows. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments and also issued subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, and ASU 2019-05 (collectively, "ASC 326"). The standard changes how certain entities will measure credit losses for most financial assets, including accounts and notes receivables. The standard will eliminate the “incurred loss” approach and require an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. Effective January 1, 2020, the Company replaced its previous incurred loss impairment model for estimating credit losses on accounts and notes receivables for its reporting of quarterly and annual financial results with an expected loss model prepared in accordance with ASC 326. While the incurred loss impairment model had the Company recognize credit losses when it was probable that a loss had been incurred, ASC 326 requires the Company to estimate the lifetime expected credit losses on such instruments and to record an allowance to offset the amortized cost basis. ASC 326 requires the recognition of credit losses that are expected based on existing accounts and notes receivable as compared to the incurred loss approach. Accordingly, credit losses under ASC 326 are generally recognized earlier in the life cycle of a receivable than under the Company's previous incurred loss model. Modeling must be prepared after considering historical experience, current conditions, and reasonable and supportable economic forecasts to estimate lifetime expected credit losses. Under the previous incurred loss impairment model, credit losses were recognized when Management determined that it was more likely than not that a loss had been incurred and such loss was estimable. The Company has completed the analysis of expected credit losses under ASC 326 and is working towards finalizing the implementation impact of the standard. Based on analysis and forecasts of current and future macroeconomic conditions as of December 31, 2019, the Company expects the adoption of ASC 326 to increase its allowance for credit losses by approximately $36 million to $44 million and will recognize a one-time cumulative reduction to retained earnings, net of tax, at an approximate tax rate of 24%. The one-time cumulative reduction to retained earnings is to recognize additional credit losses that are expected, but have not yet been incurred on the Company's accounts and notes receivable as of January 1, 2020. The adoption of ASC 326 did not result in any changes in the cash flows of the financial assets and did not cause the Company to violate any of its existing debt covenants. The Company will provide further detail on its ASC 326 adoption when it releases its first quarter 2020 financial results. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2—Revenue The Company disaggregates its consolidated revenues by reportable segment, as management evaluates the nature, amount, timing and uncertainty of the Company’s revenues by segment. Refer to Note 15—Segment Information herein as well as the information below regarding the Company’s reportable segments. Housekeeping Housekeeping accounted for $909.5 million, $967.6 million and $974.7 million, of the Company’s consolidated revenues for the years ended December 31, 2019, 2018 and 2017, respectively. The Housekeeping services include managing clients’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of the clients’ facilities, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items utilized at the clients’ facilities. Upon beginning service with a client facility, the Company will typically hire and train the employees previously employed by such facility and assign an on-site manager to supervise and train the front-line personnel and coordinate housekeeping services with other facility support functions in accordance with client requests. Such management personnel also oversee the execution of various cost and quality-control procedures including continuous training and employee evaluation, and on-site testing for infection control. Dietary Dietary services represented $931.3 million, $1,035.0 million and $886.5 million, of the Company’s consolidated revenues for the years ended December 31, 2019, 2018 and 2017, respectively. Dietary services consist of managing clients’ dietary departments which are principally responsible for food purchasing, meal preparation and professional dietitian services, which include the development of menus that meet the dietary needs of residents. On-site management is responsible for all daily dietary department activities, with regular support provided by a District Manager specializing in dietary services. The Company also offers clinical consulting services to facilities which if contracted is a service bundled within the monthly service provided to clients. Upon beginning service with a client facility, the Company will typically hire and train the employees previously employed by such facility and assign an on-site manager to supervise and train the front-line personnel and coordinate dietitian services with other facility support functions in accordance with client requests. Such management personnel also oversee the execution of various cost and quality-control procedures including continuous training and employee evaluation. Revenue Recognition Substantially all of the Company's revenues are derived from contracts with customers. The Company accounts for revenue from contracts with customers in accordance with ASC 606, and as such, the Company recognizes revenue to depict the transfer of promised goods and services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods and services. The Company’s costs of obtaining contracts are not material. The Company performs services and provides goods in accordance with contracts with its customers. Such contracts typically provide for a renewable one year service term, cancelable by either party upon 30 to 90 days' notice, after an initial period of 60 to 120 days. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account under ASC 606. The Company’s Housekeeping and Dietary contracts relate to the provision of bundles of goods, services or both, which represent a series of distinct goods and services and that are substantially the same and that have the same pattern of transfer to the customer. Accordingly, the Company accounts for the series as a single performance obligation satisfied over time, as the customer simultaneously receives and consumes the benefits of the goods and services provided. Revenue is recognized using the output method, which is based upon the delivery of goods and services to the clients’ facilities. In limited cases, the Company provides goods, services or both, before the execution of a written contract. In these cases, the Company defers the recognition of revenue until a contract is executed. The amount of such deferred revenue was $0.3 million and $0.2 million as of December 31, 2019 and 2018, respectively. Additionally, all such revenue amounts deferred as of December 31, 2018 were subsequently recognized as revenue during the year ended December 31, 2019. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to its customers. The transaction price does not include taxes assessed or collected. The Company’s contracts detail the fees that the Company charges for the goods and services it provides. For certain contracts which contain a variable component to the transaction price, the Company is required to make estimates of the amount of consideration to which the Company will be entitled, based on variability in resident and patient populations serviced, product usage or quantities consumed. The Company recognizes revenue related to such estimates only when management determines that there will not be a significant reversal in the amount of revenue recognized. The Company’s contracts generally do not contain significant financing components, as the contracts contain payment terms that are less than one year. The Company allocates the transaction price to its performance obligation, noting that the bundle of goods, services or goods and services provided under each Housekeeping and Dietary contract represents a single performance obligation that is satisfied over time. The Company recognizes the related revenue when it satisfies the performance obligation by transferring a bundle of promised goods, services or both to a customer. Such recognition is on a monthly or weekly basis, as goods are provided and services are performed. The time between completion of the performance obligation and collection of cash is consistent with the customers' payment terms and typically not more than 30-60 days. In certain contractual arrangements, the Company requires customers to pay in advance for goods and services to be provided. As of December 31, 2019 and 2018, the value of the associated contract liabilit ies for such collections in advance was $2.8 million and $4.6 million, respectively. Additionally, all such revenue amounts deferred as of December 31, 2018 were subsequently recognized as revenue during the year ended December 31, 2019. Remaining Performance Obligations The Company recognizes revenue as it satisfies the performance obligations associated with contracts with customers, which due to the nature of the goods and services provided by the Company, are satisfied over time. Contracts may contain transaction prices that are fixed, variable or both. The Company’s contracts with customers typically provide for an initial term of one year or less, with renewable one year service terms, cancellable by either party upon 30 to 90 days' notice after an initial period of 60 to 120 days. At December 31, 2019, the Company had $696.1 million related to performance obligations that were unsatisfied or partially unsatisfied for which the Company expects to recognize revenue. The Company expects to recognize revenue on approximately 24.0% of the remaining performance obligations over the next 12 months, with the balance to be recognized thereafter. These amounts exclude variable consideration primarily related to performance obligations that consists of a series of distinct service periods with revenues based on future performance that cannot be estimated at contract inception. The Company also has elected to apply the practical expedient that permits exclusion of information about the remaining performance obligations with original expected durations of one year or less. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Note 3—Changes in Accumulated Other Comprehensive Income by Component For the years ended December 31, 2019, 2018 and 2017, the Company’s other comprehensive income related to the unrealized gains and losses from the Company’s available-for-sale marketable securities. The following table provides a summary of changes in accumulated other comprehensive income, net of taxes: Unrealized Gains and (Losses) on Available-for Sale-Securities 1 2019 2018 2017 (in thousands) Accumulated other comprehensive income (loss) — beginning balance $ 158 $ 837 $ (319) Other comprehensive income (loss) before reclassifications 2,848 (844) 1,149 (Gains) losses reclassified from other comprehensive income 2 (87) 165 7 Net current period other comprehensive income (loss) 3 2,761 (679) 1,156 Accumulated other comprehensive income — ending balance $ 2,919 $ 158 $ 837 1. All amounts are net of tax. 2. Realized gains were recorded pre-tax under “Investment and other income, net” in our Consolidated Statements of Comprehensive Income. For the year ended December 31, 2019 the Company recorded $0.1 million of realized gains from the sale of available-for-sale securities. For the years ended December 31, 2018 and 2017 the Company recorded $0.2 million and less than $0.1 million of realized losses from the sale of available-for-sale securities, respectively. Refer to Note 6—Fair Value Measurements herein for further information. 3. For the years ended December 31, 2019 and 2017, the changes in other comprehensive income were net of a tax expense of $0.7 million and $0.3 million, respectively. For the year ended December 31, 2018 the changes in other comprehensive income were net of a tax benefit of $0.1 million. Amounts Reclassified from Accumulated Other Comprehensive Income 2019 2018 2017 For the Year Ended December 31, (in thousands) (Gains) losses from the sale of available-for-sale securities $ (111) $ 197 $ 11 Tax expense (benefit) 24 (32) (4) Net (gain) loss reclassified from accumulated other comprehensive income $ (87) $ 165 $ 7 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4—Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method and is recorded over the estimated useful life of each class of depreciable asset. Leasehold improvements are amortized over the shorter of the estimated asset life or term of the lease. Repairs and maintenance costs are charged to expense as incurred. The following table sets forth the amounts of property and equipment by each class of depreciable asset as of December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 (in thousands) Housekeeping and Dietary equipment $ 25,219 $ 22,596 Computer hardware and software 12,769 12,114 Operating lease - right-of-use assets 1 21,176 — Other 2 1,698 920 Total property and equipment, at cost 60,862 35,630 Less accumulated depreciation 32,042 22,730 Total property and equipment, net $ 28,820 $ 12,900 1. Upon the adoption of ASC 842 the Company recognized right-of-use assets pertaining to leases in Property and Equipment, net. Prior period amounts continue to be reported in accordance with previous guidance. 2. Includes furniture and fixtures, leasehold improvements and autos and trucks including auto leases. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 5—Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets of acquired businesses. Goodwill is not amortized, but is evaluated for impairment on an annual basis, or more frequently if impairment indicators arise. To date, the Company has not recognized an impairment of its goodwill. Goodwill by reportable operating segment, as described in Note 15—Segment Information, was approximately $42.4 million and $8.7 million for Housekeeping and Dietary, respectively, as of December 31, 2019 and 2018. Intangible Assets The Company’s intangible assets consist of customer relationships which were obtained through acquisitions and are recorded at their fair values at the date of acquisition. Intangible assets with determinable lives are amortized on a straight-line basis over their estimated useful lives. The customer relationships have a weighted-average amortization period of 10.0 years. The gross amount of the Company's intangible assets as of December 31, 2019 and 2018 were $41.7 million and $43.7 million, respectively. The following table sets forth the estimated amortization expense for intangibles subject to amortization for the next five years and thereafter: Period/Year Total Amortization Expense (in thousands) 2020 $ 4,165 2021 $ 4,165 2022 $ 4,165 2023 $ 3,168 2024 $ 2,035 Thereafter $ 4,655 Amortization expense for the years ended December 31, 2019, 2018 and 2017 was $4.2 million, $4.4 million and $3.9 million, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 6—Fair Value Measurements The Company’s current assets and current liabilities are financial instruments and most of these items (other than marketable securities and inventories) are recorded at cost in the Consolidated Balance Sheets. The estimated fair value of these financial instruments approximates their carrying value due to their short-term nature. The carrying value of the Company’s line of credit represents the outstanding amount of the borrowings, which approximates fair value due to the short-term nature of the interest rate and liability. The Company’s financial assets that are measured at fair value on a recurring basis are its marketable securities and deferred compensation funding. The recorded values of all of the financial instruments approximate their current fair values because of their nature, stated interest rates and respective maturity dates or durations. The Company’s marketable securities consist of tax-exempt municipal bonds, which are classified as available-for-sale and are reported at fair value. Unrealized gains and losses associated with these investments are included in other comprehensive income (net of tax) within the Consolidated Statements of Comprehensive Income. The fair value of these marketable securities is classified within Level 2 of the fair value hierarchy, as these securities are measured using quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable. Such valuations are determined by a third-party pricing service. For the years ended December 31, 2019, and 2017, the Company recorded unrealized gains of $2.8 million and $1.2 million on marketable securities, respectively. For the year ended December 31, 2018 the Company recorded unrealized losses of $0.7 million on marketable securities. For the years ended December 31, 2019, 2018 and 2017, the Company received total proceeds, less the amount of interest received, of $21.3 million, $9.0 million and $28.5 million, respectively, from sales of available-for-sale municipal bonds. These sales resulted in realized gains of $0.1 million for the year ended December 31, 2019, and realized losses of $0.2 million and less than $0.1 million for the years ended December 31, 2018 and 2017, respectively. Such gains and losses were recorded in “Investment and other income, net” in the Consolidated Statements of Comprehensive Income. The basis for the sale of these securities was the specific identification of each bond sold during the period. The investments under the funded deferred compensation plan are accounted for as trading securities and unrealized gains or losses are included in earnings. The fair value of these investments are determined based on quoted market prices (Level 1). For the years ended December 31, 2019 and 2018, the Company recognized unrealized gains of $7.4 million and unrealized losses of $1.3 million related to equity securities still held at the reporting date, respectively. The following tables provide fair value measurement information for the Company’s marketable securities and deferred compensation fund investment assets as of December 31, 2019 and 2018: As of December 31, 2019 Fair Value Measurement Using: Carrying Total Fair Quoted Significant Significant (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 90,711 $ 90,711 $ — $ 90,711 $ — Deferred compensation fund Money Market 1 2,625 2,625 — 2,625 — Balanced and Lifestyle 10,294 10,294 10,294 — — Large Cap Growth 11,369 11,369 11,369 — — Small Cap Growth 4,120 4,120 4,120 — — Fixed Income 4,072 4,072 4,072 — — International 1,932 1,932 1,932 — — Mid Cap Growth 2,835 2,835 2,835 — — Deferred compensation fund $ 37,247 $ 37,247 $ 34,622 $ 2,625 $ — As of December 31, 2018 Fair Value Measurement Using: Carrying Total Fair Quoted Significant Significant (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 76,362 $ 76,362 $ — $ 76,362 $ — Deferred compensation fund Money Market 1 $ 2,529 $ 2,529 $ — $ 2,529 $ — Balanced and Lifestyle 8,265 8,265 8,265 — — Large Cap Growth 8,195 8,195 8,195 — — Small Cap Value 3,217 3,217 3,217 — — Fixed Income 3,432 3,432 3,432 — — International 1,485 1,485 1,485 — — Mid Cap Growth 1,990 1,990 1,990 — — Deferred compensation fund $ 29,113 $ 29,113 $ 26,584 $ 2,529 $ — 1. The fair value of the money market fund is based on the net asset value (“NAV”) of the shares held by the plan at the end of the period. The money market fund includes short-term United States dollar denominated money-market instruments and the NAV is determined by the custodian of the fund. The money market fund can be redeemed at its NAV at the measurement date, as there are no significant restrictions on the ability to sell this investment. Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other-Than-Temporary Impairments (in thousands) December 31, 2019 Marketable securities Municipal bonds — available-for-sale $ 87,016 $ 3,695 $ — $ 90,711 $ — Total debt securities $ 87,016 $ 3,695 $ — $ 90,711 $ — December 31, 2018 Marketable securities Municipal bonds — available-for-sale $ 76,162 $ 633 $ (433) $ 76,362 $ — Total debt securities $ 76,162 $ 633 $ (433) $ 76,362 $ — December 31, 2017 Marketable securities Municipal bonds — available-for-sale $ 72,249 $ 1,169 $ (197) $ 73,221 $ — Total debt securities $ 72,249 $ 1,169 $ (197) $ 73,221 $ — The following table summarizes the contractual maturities of debt securities held at December 31, 2019 and 2018, which are classified as marketable securities in the Consolidated Balance Sheets: Municipal Bonds — Available-for-Sale December 31, 2019 2018 (in thousands) Contractual maturity: Maturing in one year or less $ 876 $ 1,645 Maturing in second year through fifth year 16,071 24,649 Maturing in sixth year through tenth year 38,801 14,769 Maturing after ten years 34,963 35,299 Total debt securities $ 90,711 $ 76,362 |
Accounts and Notes Receivable
Accounts and Notes Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts and Notes Receivable | Note 7— Accounts and Notes Receivable The Company’s accounts and notes receivable balances consisted of the following as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 (in thousands) Short-term Accounts and notes receivable $ 386,656 $ 389,047 Allowance for doubtful accounts (45,726) (47,209) Total net short-term accounts and notes receivable $ 340,930 $ 341,838 Long-term Notes receivable 53,659 53,043 Allowance for doubtful accounts (6,667) (10,000) Total net long-term notes receivable $ 46,992 $ 43,043 Total net accounts and notes receivable $ 387,922 $ 384,881 The Company makes credit decisions on a case-by-case basis after reviewing a number of qualitative and quantitative factors related to the specific client as well as current industry variables that may impact that client. There are a variety of factors that impact a client’s ability to pay in accordance with the Company’s contracts. These factors include, but are not limited to, fluctuating census numbers, litigation costs and the client’s participation in programs funded by federal and state governmental agencies. Deviations in the timing or amounts of reimbursements under those programs can impact the client’s cash flows and their ability to make timely payments. However, the client's obligation to pay the Company in accordance with the contracts are not contingent upon the client’s cash flow. Notwithstanding the Company’s efforts to minimize its credit risk exposure, the aforementioned factors, as well as other factors that impact client cash flows or ability to make timely payments, could have an indirect, yet material adverse effect on the Company’s results of operations and financial condition. Fluctuations in net accounts and notes receivable are generally attributable to a variety of factors including, but not limited to, the timing of cash receipts from customers and the inception, transition, modification or termination of client relationships. The Company deploys significant resources and has invested in tools and processes to optimize Management’s credit and collections efforts. When appropriate, the Company utilizes interest-bearing promissory notes to enhance the collectability of amounts due, by instituting definitive repayment plans and providing a means by which to further evidence the amounts owed. As of December 31, 2019 and 2018, the Company's promissory notes outstanding were $70.4 million and $63.3 million, respectively, inclusive of reserves of $12.5 million and $13.5 million, respectively. In addition, the Company may amend contracts from full service to management-only arrangements, or adjust contractual payment terms, to accommodate clients who have in good faith established clearly-defined plans for addressing cash flow issues. These efforts are intended to minimize the Company’s collection risk. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | Note 8 — Allowance for Doubtful Accounts The allowance for doubtful accounts is established when the Company determines that receivables have been impaired and the Company can reasonably estimate the amount of the incurred loss. The related provision for bad debts is charged to costs of services provided in the Company’s Consolidated Statements of Comprehensive Income. The allowance for doubtful accounts is evaluated based on the Company’s ongoing review of accounts and notes receivable and is inherently subjective as it requires estimates susceptible to significant revision as more information becomes available. The Company has had varying collections experience with respect to its accounts and notes receivable. The Company has sometimes extended the period of payment for certain clients beyond contractual terms. Such clients include those who have terminated service agreements and slow payers experiencing financial difficulties. In order to provide for these collection problems and the general risk associated with the granting of credit terms, the Company recorded the following bad debt provisions (in an Allowance for Doubtful Accounts): Year Ended December 31, 2019 2018 2017 (in thousands) Bad debt provision $ 25,480 $ 51,387 $ 6,250 In making the Company’s credit evaluations, in addition to analyzing and anticipating, where possible, the specific cases described above, management considers the general collection risk associated with trends in the long-term care industry. The Company establishes credit limits through payment terms with customers, performs ongoing credit evaluations and monitors accounts to minimize the risk of loss. Despite the Company’s efforts to minimize credit risk exposure, clients could be adversely affected if future industry trends change in such a manner as to negatively impact their cash flows. If the Company’s clients experience a negative impact on their cash flows, it could have a material adverse effect on the Company’s results of operations and financial condition. Impaired Notes Receivable The Company evaluates its notes receivable for impairment quarterly and on an individual client basis. Notes receivable are generally evaluated for impairment when the respective clients are in bankruptcy, are subject to collections activity or are slow payers that are experiencing financial difficulties. In the event that the evaluation results in a determination that a note receivable is impaired, it is valued at the present value of expected future cash flows or at the market value of related collateral. Summary schedules of impaired notes receivable, and the related reserve, for the years ended December 31, 2019, 2018 and 2017 was as follows: Impaired Notes Receivable Year Ended December 31, Balance Beginning of Year Additions Deductions Balance End of Year Average Outstanding Balance (in thousands) 2019 $ 25,704 $ 3,763 $ 4,830 $ 24,637 $ 27,554 2018 $ 6,854 $ 23,382 $ 4,532 $ 25,704 $ 15,448 2017 $ 5,685 $ 1,169 $ — $ 6,854 $ 6,270 Reserve for Impaired Notes Receivable Year Ended December 31, Balance Beginning of Year Additions Deductions Balance End of Year (in thousands) 2019 $ 13,472 $ 3,575 $ 4,557 $ 12,490 2018 $ 2,884 $ 12,526 $ 1,938 $ 13,472 2017 $ 2,419 $ 465 $ — $ 2,884 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
Lease Commitments | Note 9 — Lease Commitments The Company recognizes right-of-use assets ("ROU Assets") and lease liabilities (“Lease Liabilities”) for automobiles, office buildings, IT equipment, and small storage units for the temporary storage of operational equipment. The Company's leases have remaining lease terms ranging from less than 1 year to 10 years, and have extension options ranging from 1 year to 5 years. Most leases include the option to terminate the lease within 1 year. Upon adopting ASC 842, the Company made accounting policy elections using practical expedients offered under the guidance to combine lease and non-lease components within leasing arrangements and to recognize the payments associated with short-term leases in earnings on a straight-line basis over the lease term. Further, the cost associated with variable lease payments is recognized when incurred. These accounting policy elections impact the value of the Company’s ROU Assets and Lease Liabilities. The value of the Company’s ROU Assets is determined as the non-depreciated fair value of its leasing arrangements and is recorded to Property and Equipment, net on the Company's Consolidated Balance Sheet. The value of the Company’s Lease Liabilities is the present value of fixed lease payments not yet paid, discounted using either the rate implicit in the lease contract if that rate can be determined, or the Company’s incremental borrowing rate ("IBR"). As of December 31, 2019, the Company's short-term lease obligations were $5.2 million and were recorded in Other accrued expenses with the remaining balance recognized in Lease liability — long-term portion on the Company's Consolidated Balance Sheet. Any future lease payments that are not fixed based on the terms of the lease contract, or fluctuate based on a factor other than an index or rate, are considered variable lease payments and are not included in the value of the Company's ROU Assets or Lease Liabilities. The Company's IBR is determined as the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Components of lease expense required by ASC 842 are presented below for the year ended December 31, 2019. Year ended December 31, 2019 (in thousands) Lease Cost 1 Operating lease cost $ 4,699 Short-term lease cost 830 Variable lease cost 591 Total lease cost $ 6,120 1. ASC 842 was adopted as of January 1, 2019. As such, prior period numbers remain unadjusted and in accordance with prior U.S. GAAP. Supplemental information required by ASC 842 is presented below for the year ended December 31, 2019. Year ended December 31, 2019 (dollar amounts in thousands) Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,908 ROU Assets obtained in exchange for lease obligations $ 21,366 Weighted-average remaining lease term — operating leases 6.2 years Weighted-average discount rate — operating leases 4.7 % During the year ended December 31, 2019, the Company's ROU Assets and Lease Liabilities were both reduced by $0.3 million due to lease cancellations which are accounted for as noncash transactions. The following is a schedule by calendar year of future undiscounted minimum lease payments under operating leases that have remaining terms as of December 31, 2019: Period/Year Operating Leases (in thousands) 2020 $ 5,179 2021 3,592 2022 2,312 2023 1,277 2024 1,285 Thereafter 5,514 Total undiscounted minimum lease payments 1 $ 19,159 1. As of December 31, 2019, the Company's total Lease Liabilities in the Consolidated Balance Sheet were $16.9 million, net of imputed interest of $2.3 million. Total expense for all operating leases for the years ended December 31, 2018 and 2017 was as follows: Year Ended December 31, 2018 2017 (in thousands) Operating lease expense $ 4,039 $ 3,833 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 10— Share-Based Compensation Stock-based compensation expense and related tax benefits for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Stock options $ 2,623 $ 2,989 $ 3,740 Restricted stock units and restricted stock 3,967 2,591 1,205 Employee Stock Purchase Plan 275 320 1,040 Total pre-tax stock-based compensation expense charged against income 1 $ 6,865 $ 5,900 $ 5,985 Total recognized tax benefit related to stock-based compensation $ 196 $ 1,480 $ 5,709 1. Stock-based compensation expense is recorded in the selling, general and administrative caption in the Consolidated Statements of Comprehensive Income. As of December 31, 2019 and 2018, the unrecognized compensation cost related to unvested stock options and awards was $16.1 million and $14.0 million, respectively. The weighted average period over which these awards will vest was approximately 2.4 years as of December 31, 2019 and 2.5 years as of December 31, 2018. 2012 Equity Incentive Plan The Company’s 2012 Equity Incentive Plan (the “Plan”) provides that current or prospective officers, employees, non-employee directors and advisors can receive share-based awards such as stock options, restricted stock, restricted stock units and other stock awards. The Plan seeks to promote the highest level of performance by providing an economic interest in the long-term success of the Company. As of December 31, 2019, 3.2 million shares of Common Stock were reserved for issuance under the Plan, including 0.8 million shares available for future grant. No stock award will have a term in excess of ten years. All awards granted under the Plan become vested and exercisable ratably over a five The Nominating, Compensation and Stock Option Committee of the Board of Directors is responsible for determining the individuals who will be granted stock awards, the number of stock awards each individual will receive and the terms of the grants in accordance with the Plan. Stock Options A summary of stock options outstanding under the Plan as of December 31, 2019 and changes during 2019 is as follows: Number of Shares Weighted Average Exercise Price (in thousands) December 31, 2018 2,121 $ 31.53 Granted 188 $ 40.49 Exercised (163) $ 22.32 Forfeited (23) $ 36.49 Expired (16) $ 31.37 December 31, 2019 2,107 $ 32.99 The weighted average grant-date fair value of stock options granted during the years ended 2019, 2018 and 2017 were $8.18, $10.48 and $8.52 per common share, respectively. The total intrinsic value of options exercised during the years ended 2019, 2018 and 2017 were $5.5 million, $7.8 million and $19.5 million, respectively. The total fair value of options vested during the years ended 2019, 2018 and 2017 were $3.0 million, $3.7 million and $3.2 million, respectively. For the years ended December 31, 2019, 2018 and 2017, the tax benefit realized from stock options exercised were $0.2 million, $1.0 million and $5.3 million, respectively. The fair value of the stock option awards granted during 2019, 2018 and 2017 were estimated on the dates of grant using the Black-Scholes option valuation model and the following assumptions: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 2.5 % 2.1 % 2.0 % Weighted average expected life 5.7 years 5.8 years 5.8 years Expected volatility 22.6 % 21.5 % 25.1 % Dividend yield 1.9 % 1.5 % 1.9 % The following table summarizes other information about the stock options at December 31, 2019: December 31, 2019 (amounts in thousands, except per share data) Outstanding: Aggregate intrinsic value $ 2,121 Weighted average remaining contractual life 5.4 years Exercisable: Number of options 1,256 Weighted average exercise price $ 28.45 Aggregate intrinsic value $ 2,121 Weighted average remaining contractual life 4.3 years Restricted Stock Units and Restricted Stock The fair value of outstanding restricted stock units and restricted stock was determined based on the market price of the shares on the date of grant. For the year ended December 31, 2019, the Company granted 0.2 million restricted stock units with a weighted average grant date fair value of $40.49 per unit. During both years ended December 31, 2018 and 2017, the Company granted 0.1 million restricted stock units with a weighted average grant date fair value of $52.06 and $40.16 per unit, respectively. For the years ended December 31, 2019, 2018 and 2017, the Company did not grant restricted stock. A summary of the outstanding restricted stock units and restricted stock as of December 31, 2019 and changes during 2019 is as follows: Restricted Stock Units and Restricted Stock Number Weighted Average Grant Date Fair Value (in thousands) December 31, 2018 241 $ 45.47 Granted 194 $ 40.49 Vested (61) $ 43.04 Forfeited (12) $ 44.47 December 31, 2019 362 $ 43.24 The weighted average remaining vesting period for the unvested restricted stock units and restricted stock is 3.3 years. The weighted average grant-date fair values and total fair values of restricted stock units and restricted stock vested during 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 (in thousands, except per share data) Weighted average grant-date fair value of restricted stock units and restricted stock granted $ 40.49 $ 52.06 $ 40.16 Total fair value of restricted stock units and restricted stock vested $ 2,399 $ 1,822 $ 690 Fair value is determined based on the market price of the shares on the date of grant. The weighted average remaining vesting period for the unvested restricted stock is 0.8 years. Employee Stock Purchase Plan The Company's Employee Stock Purchase Plan ("ESPP") is currently available through 2021 to all eligible employees. All full-time and part-time employees who work an average of 20 hours per week and have completed two years of continuous service with the Company are eligible to participate. Annual offerings commence and terminate on the respective year’s first and last calendar day. Under the ESPP, the Company is authorized to issue up to 4.1 million shares of Common Stock to its employees. Pursuant to such authorization, there are 2.1 million shares available for future grant at December 31, 2019. Under the terms of the ESPP, participants may contribute through payroll deductions up to $21,250 (85% of IRS limitation) of their compensation toward the purchase of the Company’s Common Stock. No employee may purchase Common Stock which exceeds $25,000 in fair market value (determined on the option date) for each calendar year. The option price per share is equal to the lower of 85% of the fair market price on the first day of the offering period, or 85% of the fair market price on the last day of the offering period. The following table summarizes information about the Company’s ESPP annual offerings for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 (in thousands, except per share data) Common shares purchased 75 53 54 Per common share purchase price $ 20.67 $ 34.15 $ 33.29 Deferred Compensation Plan The Company offers a Supplemental Executive Retirement Plan (“SERP”) for certain key executives and employees. The SERP is not qualified under Section 401 of the Internal Revenue Code. The SERP allows participants to defer up to 25% of their earned income on a pre-tax basis and as of the last day of each plan year, each participant will be credited with a 25% match of up to 15% of their deferral in the form of Company Common Stock based on the then-current market value. SERP participants fully vest in the Company’s matching contribution three years from the first day of the initial year of participation. The income deferred and the matching contributions are unsecured and subject to the claims of the Company’s general creditors. Under the SERP, the Company is authorized to issue up to 1.0 million shares of Common Stock to its employees. Pursuant to such authorization, there are 0.4 million shares available for future grant at December 31, 2019. At the time of issuance, such shares were accounted for at cost as treasury stock. At December 31, 2019, approximately 0.3 million of such shares are vested and remain in the respective active participants’ accounts with the trustee. The following table summarizes information about the SERP for the plan years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 (in thousands) SERP expense 1 $ 539 $ 547 $ 503 Treasury shares issued to fund SERP expense 2 22 14 9 SERP trust account balance at December 31 3 $ 43,952 $ 39,766 $ 42,467 Unrealized gain (loss) recorded in SERP liability account $ 7,353 $ (1,469) $ 4,534 1. Both the SERP match and the deferrals are included in the selling, general and administrative caption in the Consolidated Statements of Comprehensive Income. 2. Shares related to the SERP match for each year are funded at the beginning of the subsequent year. 3. SERP trust account investments are recorded at their fair value which is based on quoted market prices. Differences between such amounts in the table above and the deferred compensation funding asset reported on the Consolidated Balance Sheets represent the value of Company Common Stock held in the Plan participants’ trust accounts and reported by the Company as treasury stock in the Consolidated Balance Sheets. |
Other Employee Benefit Plans
Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Other Employee Benefit Plans | Note 11— Other Employee Benefit Plans Retirement Savings Plan Since October 1, 1999, the Company has had a retirement savings plan for eligible employees (the “RSP”) under Section 401(k) of the Internal Revenue Code. The RSP allows eligible employees to contribute up to 15% of their eligible compensation on a pre-tax basis. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividends | Note 12— Dividends The Company has paid regular quarterly cash dividends since the second quarter of 2003. During 2019, the Company paid regular quarterly cash dividends totaling $59.0 million as detailed below: Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 (in thousands, except per share amounts) Cash dividends paid per common share $ 0.19625 $ 0.19750 $ 0.19875 $ 0.20000 Total cash dividends paid $ 14,588 $ 14,688 $ 14,789 $ 14,886 Record date February 15, 2019 May 24, 2019 August 23, 2019 November 22, 2019 Payment date March 22, 2019 June 28, 2019 September 27, 2019 December 27, 2019 Additionally, on February 11, 2020, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.20125 per common share, which will be paid on March 27, 2020 to shareholders of record as of the close of business on February 28, 2020. Cash dividends declared on the Company’s outstanding weighted average number of basic common shares for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 Cash dividends declared per common share $ 0.79750 $ 0.77750 $ 0.75750 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13— Income Taxes The following table summarizes the provision for income taxes: Year Ended December 31, 2019 2018 2017 (in thousands) Current: Federal $ 15,041 $ 23,407 $ 35,673 State 6,158 5,992 7,179 $ 21,199 $ 29,399 $ 42,852 Deferred: Federal $ (824) $ (9,526) $ 2,924 State 140 (3,487) (1,037) $ (684) $ (13,013) $ 1,887 Tax provision $ 20,515 $ 16,386 $ 44,739 Deferred income taxes are recorded using the asset and liability method. Deferred tax assets and liabilities are determined based on differences between the financial reporting and income tax basis of assets and liabilities. On December 22, 2017, the Tax Cuts and Jobs Act was signed into law, enacting significant changes to corporate tax rates, as well as business-related exclusions, deductions and credits. The primary impact to the Company was the decrease in the U.S. federal corporate income tax rate from 35% to 21%. Accordingly, during the fourth quarter 2017, the Company recognized the effects of the changes in the tax law and rates on its deferred tax balances. The net result of the remeasurement was an approximately $4.5 million decrease to the Company’s net deferred tax assets balance and a corresponding increase to the Company’s provision for income taxes for the year ended December 31, 2017. Significant components of the Company’s federal and state deferred tax asset and liability balances were as follows: Year Ended December 31, 2019 2018 (in thousands) Deferred tax assets: Allowance for doubtful accounts $ 13,376 $ 14,599 Deferred compensation 8,074 7,350 Accrued insurance claims 4,902 3,715 Non-deductible reserves 489 336 Amortization of intangibles — 24 Other 1,641 1,730 $ 28,482 $ 27,754 Deferred tax liabilities: Expensing of housekeeping supplies $ (3,796) $ (4,375) Amortization of intangibles (218) — Depreciation of property and equipment (1,969) (1,913) Leases (96) — Other (2,039) (914) $ (8,118) $ (7,202) Net deferred tax assets $ 20,364 $ 20,552 Realization of the Company’s deferred tax assets is dependent upon future earnings in specific tax jurisdictions, the timing and amount of which are uncertain. Management assesses the Company’s income tax positions and records tax benefits for all years subject to examination based upon an evaluation of the facts, circumstances, and information available at the reporting dates, which include historical operating results and expectations of future earnings. As such, management believes it is more likely than not that the deferred tax assets recorded will be realized to reduce future income taxes and therefore no valuation allowances are necessary. The table below provides a reconciliation between the tax expense computed by applying the statutory federal income tax rate to income before income taxes and the provision for income taxes: Year Ended December 31, 2019 2018 2017 (in thousands) Income tax expense computed at statutory rate $ 17,872 $ 20,981 $ 46,538 Increases (decreases) resulting from: State income taxes, net of federal tax benefit 4,902 1,936 3,661 Federal jobs credits (3,164) (5,006) (4,193) Tax exempt interest (399) (384) (568) Stock-based compensation 298 (1,179) (4,632) United States Tax Reform - remeasurement of deferred taxes — — 3,719 Other, net 1,006 38 214 Income tax expense $ 20,515 $ 16,386 $ 44,739 The Company performs an evaluation each period of its tax positions taken and expected to be taken in tax returns. The evaluation is performed on positions relating to tax years that remain subject to examination by major tax jurisdictions, the earliest of which is the tax year ended December 31, 2014. Based on the evaluation, the Company concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. Therefore, the table reporting on the change in the liability for unrecognized tax benefits during the years ended December 31, 2019 and 2018 is omitted as there is no activity to report in such account for the years ended December 31, 2019 or 2018. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Related Party Transactions | Note 14—Related Party Transactions For the years ended December 31, 2019 and 2018, the Company did not have any related party transactions. For the year ended December 31, 2017, a director was a member of a law firm which was retained by the Company. The fees paid by the Company to such firm did not exceed $120,000 in any period. Additionally, such fees did not exceed, in any period, 5% of such firm’s revenues or the Company’s revenues. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15—Segment Information Reportable Operating Segments The Company manages and evaluates its operations in two reportable segments: Housekeeping (housekeeping, laundry, linen and other services) and Dietary (dietary department services). Although both segments serve the same client base and share many operational similarities, they are managed separately due to distinct differences in the type of services provided, as well as the specialized expertise required of the professional management personnel responsible for delivering each segment’s services. Such services are rendered pursuant to discrete service agreements, specific to each reportable segment. The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. Differences between the reportable segments’ operating results and other disclosed data and the information in the Consolidated Financial Statements relate primarily to corporate level transactions and recording of transactions at the reportable segment level using other than generally accepted accounting principles. There are certain inventories and supplies that are primarily expensed when incurred within the operating segments, while they are capitalized in the Consolidated Financial Statements. In addition, most corporate expenses such as corporate salary and benefit costs, certain legal costs, information technology costs, depreciation, amortization of finite-lived intangible assets, share based compensation costs and other corporate-specific costs, are not allocated to the operating segments. There are also allocations for workers’ compensation and general liability expense within the operating segments that differ from the actual expense recorded by the Company under U.S. GAAP. Segment amounts disclosed are prior to elimination entries made in consolidation. All revenues and net income are earned in the United States. Year Ended December 31, 2019 2018 2017 (in thousands) Revenues 1 Housekeeping services $ 909,499 $ 967,606 $ 974,685 Dietary services 931,279 1,034,995 886,521 Consolidated $ 1,840,778 $ 2,002,601 $ 1,861,206 Income before income taxes Housekeeping services $ 94,173 $ 105,904 $ 92,500 Dietary services 43,269 60,562 46,008 Corporate 2 (52,346) (66,556) (5,543) Consolidated $ 85,096 $ 99,910 $ 132,965 Depreciation and amortization Housekeeping services $ 5,945 $ 6,315 $ 6,547 Dietary services 2,422 2,433 1,813 Corporate 5,573 524 526 Consolidated $ 13,940 $ 9,272 $ 8,886 Total assets Housekeeping services $ 265,096 $ 291,117 $ 304,303 Dietary services 236,075 235,183 242,874 Corporate 3 221,421 166,303 128,826 Consolidated $ 722,592 $ 692,603 $ 676,003 Capital expenditures Housekeeping services $ 3,188 $ 3,996 $ 4,287 Dietary services 68 690 663 Corporate 1,112 254 447 Consolidated $ 4,368 $ 4,940 $ 5,397 1. For the years ended December 31, 2019 and 2018, both the Housekeeping and Dietary segments earned revenue from several significant customers, including Genesis. For the years ended December 31, 2019 and 2018, Genesis accounted for $287.8 million or 15.6% and $386.7 million or 19.3% of the Company's consolidated revenues, respectively. Additionally, 2018 and 2017 Housekeeping revenues were revised for the presentation of the revenues earned by the Company's wholly-owned captive insurance subsidiary. Refer to Note 1—Description of Business and Significant Accounting Policies herein for additional disclosure regarding the revision. 2. Represents primarily corporate office cost and related overhead, recording of certain inventories and supplies and workers compensation costs at the reportable segment level which use accounting methods that differ from those used at the corporate level, as well as consolidated subsidiaries’ operating expenses that are not allocated to the reportable segments, net of investment and interest income. 3. Primarily consists of cash and cash equivalents, marketable securities, deferred income taxes and other current and noncurrent assets. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 16— Earnings Per Common Share Basic and diluted earnings per common share are computed by dividing net income by the weighted-average number of basic and diluted common shares outstanding, respectively. The weighted-average number of diluted common shares includes the impact of dilutive securities, including outstanding stock options and unvested restricted stock and restricted stock units. The table below reconciles the weighted-average basic and diluted common shares outstanding for 2019, 2018 and 2017: Year Ended December 31, 2019 2019 2018 2017 (in thousands) Weighted average number of common shares outstanding - basic 74,362 74,002 73,355 Effect of dilutive securities 228 610 993 Weighted average number of common shares outstanding - diluted 74,590 74,612 74,348 Anti-dilutive outstanding equity awards under share based compensation plans were as follows: Year Ended December 31, 2019 2019 2018 2017 (in thousands) Anti-dilutive 1,682 659 261 |
Contractual Obligations and Oth
Contractual Obligations and Other Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligations and Other Contingencies | Note 17—Contractual Obligations and Other Contingencies Line of Credit As of December 31, 2019, the Compa ny had a $475 million bank line of credit on which to draw for general corporate purposes. Amounts drawn under the line of credit are payable upon demand and generally bear interest at a floating rate, based on the Company's leverage ratio, and starting at LIBOR plus 115 basis points (or if LIBOR becomes unavailable, the higher of the Overnight Bank Funding Rate, plus 50 basis points and the Prime Rate). At December 31, 2019, there were $10.0 million in borrowings under the line of credit. The line of credit requires the Company to satisfy two financial covenants, with which the Company is in compliance as of December 31, 2019 and expects to remain in compliance. The line of credit expires on December 21, 2023. At December 31, 2019, the Company also had outstanding $62.7 million in irrevocable standby letters of credit, which relate to payment obligations under the Company's insurance programs. In connection with the issuance of the letters of credit, the amount available under the line of credit was reduced by $62.7 million to $402.3 million at December 31, 2019. On January 2, 2020, the letters of credit were amended and increased the outstanding amounts to $64.9 million. As a result of such amendment, the letters of credit expire on January 2, 2021. Tax Jurisdictions and Matters The Company provides services throughout the continental United States and is subject to numerous state and local taxing jurisdictions. In the ordinary course of business, a jurisdiction may contest the Company’s reporting positions with respect to the application of its tax code to the Company’s services, which could result in additional tax liabilities. The Company has tax matters with various taxing authorities. Because of the uncertainties related to both the probable outcomes and amount of probable assessments due, the Company is unable to make a reasonable estimate of a liability. The Company does not expect the resolution of any of these matters, taken individually or in the aggregate, to have a material adverse effect on the consolidated financial position or results of operations based on the Company’s best estimate of the outcomes of such matters. Legal Proceedings The Company is subject to various claims and legal actions in the ordinary course of business. Some of these matters include payroll and employee-related matters and examinations by governmental agencies. As the Company becomes aware of such claims and legal actions, the Company records accruals for any exposures that are probable and estimable. If adverse outcomes of such claims and legal actions are reasonably possible, Management assesses materiality and provides financial disclosure, as appropriate. As previously disclosed, the Securities and Exchange Commission (“SEC”) is conducting an investigation into the Company's earnings per share (“EPS”) calculation practices. Following receipt of a letter from the SEC in November 2017 regarding its inquiry into those practices followed by a subpoena in March 2018, the Company authorized its outside counsel to conduct an internal investigation, under the direction of the Company’s Audit Committee, into matters related to the SEC subpoena. This investigation was completed in March 2019 and the Company continues to cooperate with the SEC’s investigation and document requests. On March 22, 2019, a putative shareholder class action lawsuit was filed against the Company and its Chief Executive Officer in the U.S. District Court for the Eastern District of Pennsylvania. The initial complaint, which was filed by a plaintiff purportedly on behalf of all purchasers of our securities between April 11, 2017 and March 4, 2019 (the "Class Period"), alleges violations of the federal securities laws in connection with the matters related to the Company's EPS calculation practices. On September 17, 2019, the complaint was amended to, among other things, extend the Class Period to cover the period between April 8, 2014 and March 4, 2019, and to name additional individuals affiliated with the Company as defendants. The lead plaintiff seeks unspecified monetary damages and other relief on behalf of the plaintiff class. While the Company is vigorously defending against all litigation claims asserted, this litigation—along with the ongoing SEC investigation—could result in substantial costs to the Company and a diversion of the Company’s management’s attention and resources, which could harm its business. In addition, the uncertainty of the pending lawsuit or potential filing of additional lawsuits could lead to more volatility and a reduction in the Company’s stock price. Given the early stage of the litigation, at this time the Company is unable to reasonably estimate possible losses or form a judgment that an unfavorable outcome is either probable or remote. It is not currently possible to assess whether or not the outcome of these proceedings may have a material adverse effect on the Company. Government Regulations The Company’s clients are concentrated in the healthcare industry and are primarily providers of long-term care. The revenues of many of the Company’s clients are highly reliant on Medicare, Medicaid and third party payors’ reimbursement funding rates. New legislation or additional changes in existing regulations could directly impact the governmental reimbursement programs in which the clients participate. The full effect of any such programs would not be realized until these laws are fully implemented and government agencies issue applicable regulations or guidance. |
Accrued Insurance Claims
Accrued Insurance Claims | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Insurance Claims | Note 18—Accrued Insurance Claims The Company currently has a Paid Loss Retrospective Insurance Plan for general liability, workers’ compensation insurance and other self-insurance programs, which comprise approximately 33.4% of the Company’s liabilities at December 31, 2019. Under the Company’s insurance plans, predetermined loss limits are arranged with the Company’s insurance company to limit both per occurrence cash outlay and annual insurance plan cost. The Company’s accounting for this plan utilizes current valuations from a third party actuary, which include assumptions based on data such as historical claims, pay-out experience, demographic factors, industry trends, severity factors, and other actuarial calculations. In the event that the Company’s claims experience and/or industry trends result in an unfavorable change in the assumptions or outcomes, it would have an adverse effect on the Company’s results of operations and financial condition. For general liability, workers’ compensation and other self-insurance programs, the Company records both a reserve for the estimated future cost of claims and related expenses that have been reported but not settled, as well as an estimate of claims incurred but not reported. General liability and workers' compensation reserves for claims incurred but not reported are developed by a third party actuary through review of the Company’s historical data and open claims. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 19—Selected Quarterly Financial Data (Unaudited) The following tables summarize the unaudited quarterly financial data for the last two fiscal years. First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share amounts) 2019 Revenues $ 476,111 $ 462,101 $ 455,606 $ 446,960 Operating costs and expenses $ 468,366 $ 439,094 $ 431,883 $ 423,556 Income before income taxes $ 11,892 $ 23,617 $ 23,716 $ 25,871 Net income $ 9156 $ 18,186 $ 18,344 $ 18,895 Basic earnings per common share $ 0.12 $ 0.24 $ 0.25 $ 0.25 Diluted earnings per common share $ 0.12 $ 0.24 $ 0.25 $ 0.25 Cash dividends declared per common share $ 0.19750 $ 0.19875 $ 0.20000 $ 0.20125 2018 Revenues 1 $ 500,562 $ 501,587 $ 505,500 $ 494,952 Operating costs and expenses $ 502,773 $ 470,405 $ 474,975 $ 456,612 (Loss) income before income taxes $ (1,395) $ 33,316 $ 32,982 $ 35,007 Net income $ 72 $ 25,814 $ 26,086 $ 31,552 Basic earnings per common share $ 0.00 $ 0.35 $ 0.35 $ 0.43 Diluted earnings per common share $ 0.00 $ 0.35 $ 0.35 $ 0.42 Cash dividends declared per common share $ 0.19250 $ 0.19375 $ 0.19500 $ 0.19625 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | Schedule II — Valuation and Qualifying Accounts and Reserves Additions Description Beginning Balance Charged to Costs and Expenses Charged to Other Accounts Deductions Ending Balance (in thousands) 2019 Allowance for Doubtful Accounts $ 57,209 $ 25,480 $ — $ 30,296 $ 52,393 2018 Allowance for Doubtful Accounts $ 11,985 $ 51,387 $ — $ 6,163 $ 57,209 2017 Allowance for Doubtful Accounts $ 6,911 $ 6,250 $ — $ 1,176 $ 11,985 |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Healthcare Services Group, Inc. (the “Company”) provides management, administrative and operating expertise and services to the housekeeping, laundry, linen, facility maintenance and dietary service departments of the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States. Although the Company does not directly participate in any government reimbursement programs, the Company’s clients receive government reimbursements related to Medicare and Medicaid. Therefore, they are directly affected by any legislation relating to Medicare and Medicaid reimbursement programs. The Company provides services primarily pursuant to full service agreements with its clients. In such agreements, the Company is responsible for the day-to-day management of employees located at the clients’ facilities. The Company also provides services on the basis of management-only agreements for a limited number of clients. The agreements with clients typically provide for a renewable one year service term, cancelable by either party upon 30 to 90 days’ notice after an initial period of 60 to 120 days. The Company is organized into two reportable segments; housekeeping, laundry, linen and other services (“Housekeeping”), and dietary department services (“Dietary”). Housekeeping consists of managing the clients’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of a client’s facility, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items utilized at a client facility. Dietary consists of managing the clients’ dietary departments, which are principally responsible for food purchasing, meal preparation and dietitian professional services, which includes the development of menus that meet residents’ dietary needs. |
Use of Estimates in Financial Statements | In preparing financial statements in conformity with U.S. GAAP, estimates and assumptions are made that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant estimates are used in determining, but are not limited to, the Company’s allowance for doubtful accounts, accrued insurance claims, valuations, deferred taxes and reviews for potential impairment. The estimates are based upon various factors including current and historical trends, as well as other pertinent industry and regulatory authority information. Management regularly evaluates this information to determine if it is necessary to update the basis for its estimates and to adjust for known changes. |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of Healthcare Services Group, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Fair Value of Financial Instruments | The Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes valuation techniques that maximize the use of observable inputs (Levels 1 and 2) and minimize the use of unobservable inputs (Level 3) within the fair value hierarchy. Assets and liabilities are classified within the fair value hierarchy based on the lowest level (least observable) input that is significant to the measurement in its entirety. While unobservable inputs reflect the Company's market assumptions, preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets; Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and Level 3 – Significant inputs to the valuation model are unobservable |
Cash and Cash Equivalents | Cash and cash equivalents are held in U.S. financial institutions or in custodial accounts with U.S. financial institutions. Cash equivalents are defined as short-term, highly liquid investments with a maturity of three months or less at time of purchase that are readily convertible into cash and have insignificant interest rate risk. The Company currently has bank deposits with financial institutions in the U.S. that exceed FDIC insurance limits. |
Investments in Marketable Securities | Marketable securities are defined as fixed income investments which are highly liquid and can be readily purchased or sold through established markets. As of December 31, 2019 and 2018, the Company had marketable securities of $90.7 million and $76.4 million, respectively, comprised primarily of tax-exempt municipal bonds. These investments are accounted for as available-for-sale securities and are reported at fair value on the consolidated balance sheets. For the years ended December 31, 2019 and 2018, $2.8 million of unrealized gains and $0.8 million of unrealized losses related to these investments were recorded in other comprehensive income, respectively. Unrealized gains and losses are recorded net of income taxes. These assets are available for future needs under the Company’s self-insurance programs and are held by the Company's wholly-owned captive subsidiary as required by state insurance regulations. The Company’s investment policy is intended to manage the assets to achieve the goals of preserving principal, maintaining adequate liquidity at all times, and maximizing returns subject to investment guidelines. The investment policy limits investment to certain types of instruments issued by institutions primarily with investment grade credit ratings and places restrictions on concentration by type and issuer. |
Inventories and Supplies | Inventories and supplies include housekeeping, linen and laundry supplies, as well as food provisions and supplies. Non-linen inventories and supplies are stated at a first-in, first-out (FIFO) basis to approximate the lower of cost or net realizable value. Linen supplies are amortized on a straight-line basis over their estimated useful life of 24 months. |
Revenue Recognition | The Company recognizes revenue from service agreements with customers when or as the promised goods and services are provided to customers. Revenues are reported net of sales taxes that are collected from customers and remitted to taxing authorities.The guidance under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification subtopic 606 Revenue from Contracts with Customers (“ASC 606”) became effective and was adopted by the Company as of January 1, 2018, by applying the modified retrospective method for contracts that were not completed as of January 1, 2018. The standard requires the Company to recognize revenue as the promised goods and services within the terms of the Company’s contracts are performed and satisfied. The amount of revenue which the Company recognizes is based on the consideration which the Company expects to be entitled to in exchange for contracted promised goods and services. The adoption of this standard did not have a material impact to the Company's accounting for revenue earned relating to the Housekeeping and Dietary segments. The Company also did not recognize an opening adjustment to retained earnings as a result of the adoption of the standard. See Note 2—Revenue herein for additional revenue disclosure that is being presented as a result of the newly adopted standard. |
Leases | The guidance under FASB Accounting Standards Codification subtopic ASC 842 Leases (“ASC 842”) became effective and was adopted by the Company as of January 1, 2019, by applying a modified retrospective transition approach which resulted in the capitalization of the Company's existing operating leases as of January 1, 2019. As such, the Company records assets and liabilities on the balance sheet to recognize the rights and obligations arising from leasing arrangements with contractual terms greater than 12 months, as permitted by U.S. GAAP. A leasing arrangement includes any contract which entitles the Company to the right of use of an identified tangible asset where there are no restrictions as to the control or use of the asset, and the Company obtains substantially all of the economic benefits from the right of use. As of December 31, 2019 and 2018, the Company was only the lessee of operating lease arrangements. ASC 842 provided several optional practical expedients for use in transition. The Company elected to use what the FASB deemed the "package of practical expedients," which allowed the Company to not reassess previous conclusions on lease identification, lease classification and the accounting treatment for initial direct costs. The Company did not recognize an opening adjustment to retained earnings as a result of the adoption of ASC 842, and prior period amounts continue to be reported in accordance with previous guidance. Refer to Note 9 — Lease Commitments herein for further information. |
Property and Equipment | Property and equipment, with the exception of those pertaining to leases, are stated at cost, net of accumulated depreciation. Additions, renewals and improvements are capitalized, while maintenance and repair costs are expensed when incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in income. Depreciation is recorded using the straight-line method over the following estimated useful lives: Housekeeping and Dietary equipment — 5 to 7 years; computer hardware and software — 3 to 7 years; and other, consisting of furniture and fixtures, leasehold improvements and vehicles — 5 to 10 years. |
Income Taxes | The Company uses the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current period. The Company accrues for probable tax obligations as required by facts and circumstances in various regulatory environments. In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. When appropriate, valuation allowances are recorded to reduce deferred tax assets to amounts for which realization is more likely than not. Deferred tax assets and liabilities are more fully described in Note 13— Income Taxes. Uncertain income tax positions taken or expected to be taken in tax returns are reflected within the Company’s financial statements based on a recognition and measurement process. The Company may from time to time be assessed interest or penalties by taxing jurisdictions, although any such assessments historically have been minimal and immaterial to its financial results. When the Company has received an assessment for interest and/or penalties, it will be classified in the financial statements as selling, general and administrative expense. In addition, any interest or penalties relating to recognized uncertain tax positions would also be recorded in selling, general and administrative expense. |
Earnings per Common Share | Basic earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated using the weighted-average number of common shares outstanding and dilutive common shares, such as those issuable upon exercise of stock options and upon the vesting of restricted stock and restricted stock units. |
Share-Based Compensation | The Company estimates the fair value of share-based awards on the date of grant using the Black-Scholes valuation model for stock options and using the share price on the date of grant for restricted stock and restricted stock units. The value of the award is recognized ratably as an expense in the Company’s Consolidated Statements of Comprehensive Income over the requisite service periods, with adjustments made for forfeitures as they occur. |
Advertising Costs | Advertising costs are expensed when incurred. |
Impairment of Long-Lived Assets | The carrying amounts of long-lived assets are periodically reviewed to determine whether current events or circumstances warrant adjustment to such carrying amounts. Any impairment would be measured as the amount that the carrying value of such assets exceeds their fair value, primarily based on estimated undiscounted cash flows. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell. |
Identifiable Intangible Assets and Goodwill | Identifiable intangible assets are amortized on a straight-line basis over their respective lives. Goodwill represents the excess of cost over the fair value of net assets of acquired businesses. Management reviews the carrying value of goodwill at least annually during the fourth quarter of each year to assess for impairment, or more often if events or circumstances indicate that the carrying value may exceed its estimated fair value. No impairment loss was recognized on the Company’s intangible assets or goodwill for the years ended December 31, 2019, 2018 or 2017. In 2018, the Company adopted the FASB issued Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 no longer requires the Company to perform a hypothetical purchase price allocation to measure impairment, eliminating step 2 of the goodwill impairment test. Instead, impairment is measured using the difference of the carrying amount to the fair value of goodwill on a reporting unit basis. Additionally in 2018, the Company adopted the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software ("ASU 2018-15"). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The results of applying ASU 2018-15 were insignificant and did not have a material impact on the Company's consolidated financial statements. The capitalized implementation costs incurred from adopting ASU 2018-15 are recorded in the prepaid expenses and other assets caption in the Consolidated Balance Sheets. |
Treasury Stock | Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Gains or losses on the subsequent reissuance of shares are credited or charged to additional paid-in capital. |
Reclassification | Certain prior period amounts have been reclassified to conform to current year presentation. The Company has modified its presentation of interest expense, which is now presented separately in the Consolidated Statements of Comprehensive Income. |
Concentrations of Credit Risk | The financial instruments that are subject to concentrations of credit risk are cash and cash equivalents, marketable securities, deferred compensation funding and accounts and notes receivable. The Company’s marketable securities are fixed income investments which are highly liquid and can be readily purchased or sold through established markets. At December 31, 2019 and 2018, substantially all of the Company’s cash and cash equivalents and marketable securities were held in one large financial institution located in the United States. The Company’s clients are concentrated in the healthcare industry and are primarily providers of long-term care. The revenues of many of the Company’s clients are highly reliant on Medicare, Medicaid and third party payors’ reimbursement funding rates. New legislation or changes in existing regulations could directly impact the governmental reimbursement programs in which the clients participate. As a result, the Company may not know the full effects of such programs until these laws are fully implemented and governmental agencies issue applicable regulations or guidance. |
Significant Clients | Although the Company expects to continue its relationship with Genesis, there can be no assurance thereof. The loss of such client, or a significant reduction in the revenues the Company receives from such client, could have a material adverse effect on the Company’s results of operations. In addition, if Genesis fails to abide by current payments terms, it could increase the Company’s accounts receivables balance and have a material adverse effect on the Company’s cash flows. |
Recent Accounting Pronouncements | In June 2016, the FASB issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments and also issued subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, and ASU 2019-05 (collectively, "ASC 326"). The standard changes how certain entities will measure credit losses for most financial assets, including accounts and notes receivables. The standard will eliminate the “incurred loss” approach and require an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. Effective January 1, 2020, the Company replaced its previous incurred loss impairment model for estimating credit losses on accounts and notes receivables for its reporting of quarterly and annual financial results with an expected loss model prepared in accordance with ASC 326. While the incurred loss impairment model had the Company recognize credit losses when it was probable that a loss had been incurred, ASC 326 requires the Company to estimate the lifetime expected credit losses on such instruments and to record an allowance to offset the amortized cost basis. ASC 326 requires the recognition of credit losses that are expected based on existing accounts and notes receivable as compared to the incurred loss approach. Accordingly, credit losses under ASC 326 are generally recognized earlier in the life cycle of a receivable than under the Company's previous incurred loss model. Modeling must be prepared after considering historical experience, current conditions, and reasonable and supportable economic forecasts to estimate lifetime expected credit losses. Under the previous incurred loss impairment model, credit losses were recognized when Management determined that it was more likely than not that a loss had been incurred and such loss was estimable. The Company has completed the analysis of expected credit losses under ASC 326 and is working towards finalizing the implementation impact of the standard. Based on analysis and forecasts of current and future macroeconomic conditions as of December 31, 2019, the Company expects the adoption of ASC 326 to increase its allowance for credit losses by approximately $36 million to $44 million and will recognize a one-time cumulative reduction to retained earnings, net of tax, at an approximate tax rate of 24%. The one-time cumulative reduction to retained earnings is to recognize additional credit losses that are expected, but have not yet been incurred on the Company's accounts and notes receivable as of January 1, 2020. The adoption of ASC 326 did not result in any changes in the cash flows of the financial assets and did not cause the Company to violate any of its existing debt covenants. The Company will provide further detail on its ASC 326 adoption when it releases its first quarter 2020 financial results. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income by Component (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income | The following table provides a summary of changes in accumulated other comprehensive income, net of taxes: Unrealized Gains and (Losses) on Available-for Sale-Securities 1 2019 2018 2017 (in thousands) Accumulated other comprehensive income (loss) — beginning balance $ 158 $ 837 $ (319) Other comprehensive income (loss) before reclassifications 2,848 (844) 1,149 (Gains) losses reclassified from other comprehensive income 2 (87) 165 7 Net current period other comprehensive income (loss) 3 2,761 (679) 1,156 Accumulated other comprehensive income — ending balance $ 2,919 $ 158 $ 837 1. All amounts are net of tax. 2. Realized gains were recorded pre-tax under “Investment and other income, net” in our Consolidated Statements of Comprehensive Income. For the year ended December 31, 2019 the Company recorded $0.1 million of realized gains from the sale of available-for-sale securities. For the years ended December 31, 2018 and 2017 the Company recorded $0.2 million and less than $0.1 million of realized losses from the sale of available-for-sale securities, respectively. Refer to Note 6—Fair Value Measurements herein for further information. 3. For the years ended December 31, 2019 and 2017, the changes in other comprehensive income were net of a tax expense of $0.7 million and $0.3 million, respectively. For the year ended December 31, 2018 the changes in other comprehensive income were net of a tax benefit of $0.1 million. |
Reclassification out of Accumulated Other Comprehensive Income | Amounts Reclassified from Accumulated Other Comprehensive Income 2019 2018 2017 For the Year Ended December 31, (in thousands) (Gains) losses from the sale of available-for-sale securities $ (111) $ 197 $ 11 Tax expense (benefit) 24 (32) (4) Net (gain) loss reclassified from accumulated other comprehensive income $ (87) $ 165 $ 7 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table sets forth the amounts of property and equipment by each class of depreciable asset as of December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 (in thousands) Housekeeping and Dietary equipment $ 25,219 $ 22,596 Computer hardware and software 12,769 12,114 Operating lease - right-of-use assets 1 21,176 — Other 2 1,698 920 Total property and equipment, at cost 60,862 35,630 Less accumulated depreciation 32,042 22,730 Total property and equipment, net $ 28,820 $ 12,900 1. Upon the adoption of ASC 842 the Company recognized right-of-use assets pertaining to leases in Property and Equipment, net. Prior period amounts continue to be reported in accordance with previous guidance. 2. Includes furniture and fixtures, leasehold improvements and autos and trucks including auto leases. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Amortization Expense For Intangibles Subject To Amortization | The following table sets forth the estimated amortization expense for intangibles subject to amortization for the next five years and thereafter: Period/Year Total Amortization Expense (in thousands) 2020 $ 4,165 2021 $ 4,165 2022 $ 4,165 2023 $ 3,168 2024 $ 2,035 Thereafter $ 4,655 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables provide fair value measurement information for the Company’s marketable securities and deferred compensation fund investment assets as of December 31, 2019 and 2018: As of December 31, 2019 Fair Value Measurement Using: Carrying Total Fair Quoted Significant Significant (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 90,711 $ 90,711 $ — $ 90,711 $ — Deferred compensation fund Money Market 1 2,625 2,625 — 2,625 — Balanced and Lifestyle 10,294 10,294 10,294 — — Large Cap Growth 11,369 11,369 11,369 — — Small Cap Growth 4,120 4,120 4,120 — — Fixed Income 4,072 4,072 4,072 — — International 1,932 1,932 1,932 — — Mid Cap Growth 2,835 2,835 2,835 — — Deferred compensation fund $ 37,247 $ 37,247 $ 34,622 $ 2,625 $ — As of December 31, 2018 Fair Value Measurement Using: Carrying Total Fair Quoted Significant Significant (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 76,362 $ 76,362 $ — $ 76,362 $ — Deferred compensation fund Money Market 1 $ 2,529 $ 2,529 $ — $ 2,529 $ — Balanced and Lifestyle 8,265 8,265 8,265 — — Large Cap Growth 8,195 8,195 8,195 — — Small Cap Value 3,217 3,217 3,217 — — Fixed Income 3,432 3,432 3,432 — — International 1,485 1,485 1,485 — — Mid Cap Growth 1,990 1,990 1,990 — — Deferred compensation fund $ 29,113 $ 29,113 $ 26,584 $ 2,529 $ — 1. The fair value of the money market fund is based on the net asset value (“NAV”) of the shares held by the plan at the end of the period. The money market fund includes short-term United States dollar denominated money-market instruments and the NAV is determined by the custodian of the fund. The money market fund can be redeemed at its NAV at the measurement date, as there are no significant restrictions on the ability to sell this investment. |
Marketable Debt Securities | Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other-Than-Temporary Impairments (in thousands) December 31, 2019 Marketable securities Municipal bonds — available-for-sale $ 87,016 $ 3,695 $ — $ 90,711 $ — Total debt securities $ 87,016 $ 3,695 $ — $ 90,711 $ — December 31, 2018 Marketable securities Municipal bonds — available-for-sale $ 76,162 $ 633 $ (433) $ 76,362 $ — Total debt securities $ 76,162 $ 633 $ (433) $ 76,362 $ — December 31, 2017 Marketable securities Municipal bonds — available-for-sale $ 72,249 $ 1,169 $ (197) $ 73,221 $ — Total debt securities $ 72,249 $ 1,169 $ (197) $ 73,221 $ — |
Contractual Maturities of Available For Sale Investments | The following table summarizes the contractual maturities of debt securities held at December 31, 2019 and 2018, which are classified as marketable securities in the Consolidated Balance Sheets: Municipal Bonds — Available-for-Sale December 31, 2019 2018 (in thousands) Contractual maturity: Maturing in one year or less $ 876 $ 1,645 Maturing in second year through fifth year 16,071 24,649 Maturing in sixth year through tenth year 38,801 14,769 Maturing after ten years 34,963 35,299 Total debt securities $ 90,711 $ 76,362 |
Accounts and Notes Receivable (
Accounts and Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts and Notes Receivables | The Company’s accounts and notes receivable balances consisted of the following as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 (in thousands) Short-term Accounts and notes receivable $ 386,656 $ 389,047 Allowance for doubtful accounts (45,726) (47,209) Total net short-term accounts and notes receivable $ 340,930 $ 341,838 Long-term Notes receivable 53,659 53,043 Allowance for doubtful accounts (6,667) (10,000) Total net long-term notes receivable $ 46,992 $ 43,043 Total net accounts and notes receivable $ 387,922 $ 384,881 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Doubtful Debts | In order to provide for these collection problems and the general risk associated with the granting of credit terms, the Company recorded the following bad debt provisions (in an Allowance for Doubtful Accounts): Year Ended December 31, 2019 2018 2017 (in thousands) Bad debt provision $ 25,480 $ 51,387 $ 6,250 |
Impaired Notes Receivable | Summary schedules of impaired notes receivable, and the related reserve, for the years ended December 31, 2019, 2018 and 2017 was as follows: Impaired Notes Receivable Year Ended December 31, Balance Beginning of Year Additions Deductions Balance End of Year Average Outstanding Balance (in thousands) 2019 $ 25,704 $ 3,763 $ 4,830 $ 24,637 $ 27,554 2018 $ 6,854 $ 23,382 $ 4,532 $ 25,704 $ 15,448 2017 $ 5,685 $ 1,169 $ — $ 6,854 $ 6,270 Reserve for Impaired Notes Receivable Year Ended December 31, Balance Beginning of Year Additions Deductions Balance End of Year (in thousands) 2019 $ 13,472 $ 3,575 $ 4,557 $ 12,490 2018 $ 2,884 $ 12,526 $ 1,938 $ 13,472 2017 $ 2,419 $ 465 $ — $ 2,884 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
Operating Leases Expense | Components of lease expense required by ASC 842 are presented below for the year ended December 31, 2019. Year ended December 31, 2019 (in thousands) Lease Cost 1 Operating lease cost $ 4,699 Short-term lease cost 830 Variable lease cost 591 Total lease cost $ 6,120 1. ASC 842 was adopted as of January 1, 2019. As such, prior period numbers remain unadjusted and in accordance with prior U.S. GAAP. |
Supplemental Information | Supplemental information required by ASC 842 is presented below for the year ended December 31, 2019. Year ended December 31, 2019 (dollar amounts in thousands) Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,908 ROU Assets obtained in exchange for lease obligations $ 21,366 Weighted-average remaining lease term — operating leases 6.2 years Weighted-average discount rate — operating leases 4.7 % |
Future Minimum Lease Payments under Operating Leases | The following is a schedule by calendar year of future undiscounted minimum lease payments under operating leases that have remaining terms as of December 31, 2019: Period/Year Operating Leases (in thousands) 2020 $ 5,179 2021 3,592 2022 2,312 2023 1,277 2024 1,285 Thereafter 5,514 Total undiscounted minimum lease payments 1 $ 19,159 |
Schedule of Operating Lease Expense | Total expense for all operating leases for the years ended December 31, 2018 and 2017 was as follows: Year Ended December 31, 2018 2017 (in thousands) Operating lease expense $ 4,039 $ 3,833 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense and related tax benefits for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Stock options $ 2,623 $ 2,989 $ 3,740 Restricted stock units and restricted stock 3,967 2,591 1,205 Employee Stock Purchase Plan 275 320 1,040 Total pre-tax stock-based compensation expense charged against income 1 $ 6,865 $ 5,900 $ 5,985 Total recognized tax benefit related to stock-based compensation $ 196 $ 1,480 $ 5,709 1. Stock-based compensation expense is recorded in the selling, general and administrative caption in the Consolidated Statements of Comprehensive Income. |
Summary of Stock Options Activity | A summary of stock options outstanding under the Plan as of December 31, 2019 and changes during 2019 is as follows: Number of Shares Weighted Average Exercise Price (in thousands) December 31, 2018 2,121 $ 31.53 Granted 188 $ 40.49 Exercised (163) $ 22.32 Forfeited (23) $ 36.49 Expired (16) $ 31.37 December 31, 2019 2,107 $ 32.99 |
Assumption for Fair Value of Options Granted | The fair value of the stock option awards granted during 2019, 2018 and 2017 were estimated on the dates of grant using the Black-Scholes option valuation model and the following assumptions: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 2.5 % 2.1 % 2.0 % Weighted average expected life 5.7 years 5.8 years 5.8 years Expected volatility 22.6 % 21.5 % 25.1 % Dividend yield 1.9 % 1.5 % 1.9 % |
Summarized Information of Stock Options Outstanding | The following table summarizes other information about the stock options at December 31, 2019: December 31, 2019 (amounts in thousands, except per share data) Outstanding: Aggregate intrinsic value $ 2,121 Weighted average remaining contractual life 5.4 years Exercisable: Number of options 1,256 Weighted average exercise price $ 28.45 Aggregate intrinsic value $ 2,121 Weighted average remaining contractual life 4.3 years |
Summary of Stock Options Outstanding | A summary of the outstanding restricted stock units and restricted stock as of December 31, 2019 and changes during 2019 is as follows: Restricted Stock Units and Restricted Stock Number Weighted Average Grant Date Fair Value (in thousands) December 31, 2018 241 $ 45.47 Granted 194 $ 40.49 Vested (61) $ 43.04 Forfeited (12) $ 44.47 December 31, 2019 362 $ 43.24 |
Weighted Average Grant-Date Fair Values and Intrinsic Values of Options Vested | The weighted average grant-date fair values and total fair values of restricted stock units and restricted stock vested during 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 (in thousands, except per share data) Weighted average grant-date fair value of restricted stock units and restricted stock granted $ 40.49 $ 52.06 $ 40.16 Total fair value of restricted stock units and restricted stock vested $ 2,399 $ 1,822 $ 690 |
Summary of ESPP Annual Offerings | The following table summarizes information about the Company’s ESPP annual offerings for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 (in thousands, except per share data) Common shares purchased 75 53 54 Per common share purchase price $ 20.67 $ 34.15 $ 33.29 |
Summary of Information Of SERP | The following table summarizes information about the SERP for the plan years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 (in thousands) SERP expense 1 $ 539 $ 547 $ 503 Treasury shares issued to fund SERP expense 2 22 14 9 SERP trust account balance at December 31 3 $ 43,952 $ 39,766 $ 42,467 Unrealized gain (loss) recorded in SERP liability account $ 7,353 $ (1,469) $ 4,534 1. Both the SERP match and the deferrals are included in the selling, general and administrative caption in the Consolidated Statements of Comprehensive Income. 2. Shares related to the SERP match for each year are funded at the beginning of the subsequent year. 3. SERP trust account investments are recorded at their fair value which is based on quoted market prices. Differences between such amounts in the table above and the deferred compensation funding asset reported on the Consolidated Balance Sheets represent the value of Company Common Stock held in the Plan participants’ trust accounts and reported by the Company as treasury stock in the Consolidated Balance Sheets. |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Dividend Payments | During 2019, the Company paid regular quarterly cash dividends totaling $59.0 million as detailed below: Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 (in thousands, except per share amounts) Cash dividends paid per common share $ 0.19625 $ 0.19750 $ 0.19875 $ 0.20000 Total cash dividends paid $ 14,588 $ 14,688 $ 14,789 $ 14,886 Record date February 15, 2019 May 24, 2019 August 23, 2019 November 22, 2019 Payment date March 22, 2019 June 28, 2019 September 27, 2019 December 27, 2019 |
Dividends Payable on Outstanding Weighted Average Basic Common Shares | Cash dividends declared on the Company’s outstanding weighted average number of basic common shares for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 Cash dividends declared per common share $ 0.79750 $ 0.77750 $ 0.75750 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes | The following table summarizes the provision for income taxes: Year Ended December 31, 2019 2018 2017 (in thousands) Current: Federal $ 15,041 $ 23,407 $ 35,673 State 6,158 5,992 7,179 $ 21,199 $ 29,399 $ 42,852 Deferred: Federal $ (824) $ (9,526) $ 2,924 State 140 (3,487) (1,037) $ (684) $ (13,013) $ 1,887 Tax provision $ 20,515 $ 16,386 $ 44,739 |
Significant Components of Federal and State Deferred Tax Assets and Liabilities | Significant components of the Company’s federal and state deferred tax asset and liability balances were as follows: Year Ended December 31, 2019 2018 (in thousands) Deferred tax assets: Allowance for doubtful accounts $ 13,376 $ 14,599 Deferred compensation 8,074 7,350 Accrued insurance claims 4,902 3,715 Non-deductible reserves 489 336 Amortization of intangibles — 24 Other 1,641 1,730 $ 28,482 $ 27,754 Deferred tax liabilities: Expensing of housekeeping supplies $ (3,796) $ (4,375) Amortization of intangibles (218) — Depreciation of property and equipment (1,969) (1,913) Leases (96) — Other (2,039) (914) $ (8,118) $ (7,202) Net deferred tax assets $ 20,364 $ 20,552 |
Reconciliation of The Provision for Income Taxes | The table below provides a reconciliation between the tax expense computed by applying the statutory federal income tax rate to income before income taxes and the provision for income taxes: Year Ended December 31, 2019 2018 2017 (in thousands) Income tax expense computed at statutory rate $ 17,872 $ 20,981 $ 46,538 Increases (decreases) resulting from: State income taxes, net of federal tax benefit 4,902 1,936 3,661 Federal jobs credits (3,164) (5,006) (4,193) Tax exempt interest (399) (384) (568) Stock-based compensation 298 (1,179) (4,632) United States Tax Reform - remeasurement of deferred taxes — — 3,719 Other, net 1,006 38 214 Income tax expense $ 20,515 $ 16,386 $ 44,739 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Information of Reportable Segments | All revenues and net income are earned in the United States. Year Ended December 31, 2019 2018 2017 (in thousands) Revenues 1 Housekeeping services $ 909,499 $ 967,606 $ 974,685 Dietary services 931,279 1,034,995 886,521 Consolidated $ 1,840,778 $ 2,002,601 $ 1,861,206 Income before income taxes Housekeeping services $ 94,173 $ 105,904 $ 92,500 Dietary services 43,269 60,562 46,008 Corporate 2 (52,346) (66,556) (5,543) Consolidated $ 85,096 $ 99,910 $ 132,965 Depreciation and amortization Housekeeping services $ 5,945 $ 6,315 $ 6,547 Dietary services 2,422 2,433 1,813 Corporate 5,573 524 526 Consolidated $ 13,940 $ 9,272 $ 8,886 Total assets Housekeeping services $ 265,096 $ 291,117 $ 304,303 Dietary services 236,075 235,183 242,874 Corporate 3 221,421 166,303 128,826 Consolidated $ 722,592 $ 692,603 $ 676,003 Capital expenditures Housekeeping services $ 3,188 $ 3,996 $ 4,287 Dietary services 68 690 663 Corporate 1,112 254 447 Consolidated $ 4,368 $ 4,940 $ 5,397 1. For the years ended December 31, 2019 and 2018, both the Housekeeping and Dietary segments earned revenue from several significant customers, including Genesis. For the years ended December 31, 2019 and 2018, Genesis accounted for $287.8 million or 15.6% and $386.7 million or 19.3% of the Company's consolidated revenues, respectively. Additionally, 2018 and 2017 Housekeeping revenues were revised for the presentation of the revenues earned by the Company's wholly-owned captive insurance subsidiary. Refer to Note 1—Description of Business and Significant Accounting Policies herein for additional disclosure regarding the revision. 2. Represents primarily corporate office cost and related overhead, recording of certain inventories and supplies and workers compensation costs at the reportable segment level which use accounting methods that differ from those used at the corporate level, as well as consolidated subsidiaries’ operating expenses that are not allocated to the reportable segments, net of investment and interest income. 3. Primarily consists of cash and cash equivalents, marketable securities, deferred income taxes and other current and noncurrent assets. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Earnings Per Share | The table below reconciles the weighted-average basic and diluted common shares outstanding for 2019, 2018 and 2017: Year Ended December 31, 2019 2019 2018 2017 (in thousands) Weighted average number of common shares outstanding - basic 74,362 74,002 73,355 Effect of dilutive securities 228 610 993 Weighted average number of common shares outstanding - diluted 74,590 74,612 74,348 Anti-dilutive outstanding equity awards under share based compensation plans were as follows: Year Ended December 31, 2019 2019 2018 2017 (in thousands) Anti-dilutive 1,682 659 261 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | The following tables summarize the unaudited quarterly financial data for the last two fiscal years. First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except per share amounts) 2019 Revenues $ 476,111 $ 462,101 $ 455,606 $ 446,960 Operating costs and expenses $ 468,366 $ 439,094 $ 431,883 $ 423,556 Income before income taxes $ 11,892 $ 23,617 $ 23,716 $ 25,871 Net income $ 9156 $ 18,186 $ 18,344 $ 18,895 Basic earnings per common share $ 0.12 $ 0.24 $ 0.25 $ 0.25 Diluted earnings per common share $ 0.12 $ 0.24 $ 0.25 $ 0.25 Cash dividends declared per common share $ 0.19750 $ 0.19875 $ 0.20000 $ 0.20125 2018 Revenues 1 $ 500,562 $ 501,587 $ 505,500 $ 494,952 Operating costs and expenses $ 502,773 $ 470,405 $ 474,975 $ 456,612 (Loss) income before income taxes $ (1,395) $ 33,316 $ 32,982 $ 35,007 Net income $ 72 $ 25,814 $ 26,086 $ 31,552 Basic earnings per common share $ 0.00 $ 0.35 $ 0.35 $ 0.43 Diluted earnings per common share $ 0.00 $ 0.35 $ 0.35 $ 0.42 Cash dividends declared per common share $ 0.19250 $ 0.19375 $ 0.19500 $ 0.19625 |
Description of Business and S_3
Description of Business and Significant Accounting Policies - Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Schedule of Accounting Policies [Line Items] | |
Service agreement term | 1 year |
Number of reportable segments | 2 |
Minimum | |
Schedule of Accounting Policies [Line Items] | |
Days to notify cancellation of service | 30 days |
Initial period of service term | 60 days |
Maximum | |
Schedule of Accounting Policies [Line Items] | |
Days to notify cancellation of service | 90 days |
Initial period of service term | 120 days |
Description of Business and S_4
Description of Business and Significant Accounting Policies - Investments in Marketable Securities and Inventories and Supplies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Marketable securities, at fair value | $ 90,711 | $ 76,362 |
Unrealized gains (losses) from marketable securities | $ 2,800 | $ (800) |
Amortization period of inventories and supplies | 24 months |
Description of Business and S_5
Description of Business and Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 9.7 | $ 4.9 | $ 5 |
Housekeeping and Dietary equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Housekeeping and Dietary equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Computer hardware and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Computer hardware and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Autos and Trucks | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Autos and Trucks | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years |
Description of Business and S_6
Description of Business and Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 0 | $ 0 | $ 0 |
Description of Business and S_7
Description of Business and Significant Accounting Policies - Identifiable Intangible Assets and Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Impairment loss on goodwill and intangible assets | $ 0 | $ 0 | $ 0 |
Description of Business and S_8
Description of Business and Significant Accounting Policies - Correction of Immaterial Errors (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenues | $ 446,960 | $ 455,606 | $ 462,101 | $ 476,111 | $ 494,952 | $ 505,500 | $ 501,587 | $ 500,562 | $ 1,840,778 | $ 2,002,601 | $ 1,861,206 |
Costs of services provided | 1,612,877 | 1,768,162 | 1,610,590 | ||||||||
(Loss) income before income taxes | $ 25,871 | $ 23,716 | $ 23,617 | $ 11,892 | $ 35,007 | $ 32,982 | $ 33,316 | $ (1,395) | $ 85,096 | 99,910 | 132,965 |
Adjustment for captive insurance company | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Revenues | 6,200 | 4,900 | |||||||||
Costs of services provided | 3,800 | 1,900 | |||||||||
(Loss) income before income taxes | $ 2,400 | $ 3,000 |
Description of Business and S_9
Description of Business and Significant Accounting Policies - Concentrations of Credit Risk and Significant Clients (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($)financial_institution | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($)financial_institution | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)financial_institution | Dec. 31, 2018USD ($)financial_institution | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |||||||||||
Number of financial institutions holding cash and cash equivalents and marketable securities | financial_institution | 1 | 1 | 1 | 1 | |||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 446,960 | $ 455,606 | $ 462,101 | $ 476,111 | $ 494,952 | $ 505,500 | $ 501,587 | $ 500,562 | $ 1,840,778 | $ 2,002,601 | $ 1,861,206 |
Customer Concentration Risk | Revenue from Contract with Customer | Genesis | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 287,800 | $ 386,700 | |||||||||
Capital expenditures | 15.60% | 19.30% |
Description of Business and _10
Description of Business and Significant Accounting Policies - Recent Accounting Pronouncements (Details) - ASC 326 - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase to allowance for credit losses | $ 44 | |
Adjustment tax rate | 24.00% | |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase to allowance for credit losses | $ 36 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 446,960 | $ 455,606 | $ 462,101 | $ 476,111 | $ 494,952 | $ 505,500 | $ 501,587 | $ 500,562 | $ 1,840,778 | $ 2,002,601 | $ 1,861,206 |
Renewable service term period | 1 year | ||||||||||
Description of timing | The Company recognizes revenue as it satisfies the performance obligations associated with contracts with customers, which due to the nature of the goods and services provided by the Company, are satisfied over time. Contracts may contain transaction prices that are fixed, variable or both. The Company’s contracts with customers typically provide for an initial term of one year or less, with renewable one year service terms, cancellable by either party upon 30 to 90 days' notice after an initial period of 60 to 120 days.At December 31, 2019, the Company had $696.1 million related to performance obligations that were unsatisfied or partially unsatisfied for which the Company expects to recognize revenue. The Company expects to recognize revenue on approximately 24.0% of the remaining performance obligations over the next 12 months, with the balance to be recognized thereafter. These amounts exclude variable consideration primarily related to performance obligations that consists of a series of distinct service periods with revenues based on future performance that cannot be estimated at contract inception. The Company also has elected to apply the practical expedient that permits exclusion of information about the remaining performance obligations with original expected durations of one year or less. | ||||||||||
Renewal term | 1 year | ||||||||||
Minimum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Cancellation notice period | 30 days | ||||||||||
Initial period preceding cancellation notice | 60 days | ||||||||||
Maximum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Cancellation notice period | 90 days | ||||||||||
Initial period preceding cancellation notice | 120 days | ||||||||||
Transferred at Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract liabilities | 300 | 200 | $ 300 | 200 | |||||||
Transferred over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract liabilities | $ 2,800 | $ 4,600 | $ 2,800 | 4,600 | |||||||
Transferred over Time | Minimum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service agreement period | 30 days | ||||||||||
Transferred over Time | Maximum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Service agreement period | 60 days | ||||||||||
Housekeeping | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 909,500 | 967,600 | 974,700 | ||||||||
Dietary | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 931,300 | $ 1,035,000 | $ 886,500 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 696.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 24.00% |
Revenue, remaining performance obligation period | 12 months |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income by Component - Summary of Changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 440,780 | $ 399,952 | $ 338,842 |
Other comprehensive income (loss) before reclassifications | 2,848 | (844) | 1,149 |
Losses reclassified from other comprehensive income | (87) | 165 | 7 |
Net current period other comprehensive (loss) income | 2,761 | (679) | 1,156 |
Ending balance | 460,305 | 440,780 | 399,952 |
Realized loss | 100 | (200) | (100) |
Changes in other comprehensive income (loss), tax expense (benefit) | 700 | (100) | 300 |
Accumulated Other Comprehensive Income (Loss), net of Taxes | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 158 | 837 | (319) |
Ending balance | $ 2,919 | $ 158 | $ 837 |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income by Component - Reclassification Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax expense (benefit) | $ (20,515) | $ (16,386) | $ (44,739) | ||||||||
Net income | $ 18,895 | $ 18,344 | $ 18,186 | $ 9,156 | $ 31,552 | $ 26,086 | $ 25,814 | $ 72 | 64,581 | 83,524 | 88,226 |
Realized Gains (Losses) on Sale of Available-for-sale Securities | Amounts Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
(Gains) losses from the sale of available-for-sale securities | (111) | 197 | 11 | ||||||||
Tax expense (benefit) | 24 | (32) | (4) | ||||||||
Net income | $ (87) | $ 165 | $ 7 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Operating lease - right-of-use assets | $ 21,176 | ||
Total property and equipment, at cost | 60,862 | $ 35,630 | |
Less accumulated depreciation | 32,042 | 22,730 | |
Total property and equipment, net | 28,820 | 12,900 | |
Depreciation | 9,700 | 4,900 | $ 5,000 |
Housekeeping and Dietary equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, at cost | 25,219 | 22,596 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, at cost | 12,769 | 12,114 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, at cost | $ 1,698 | $ 920 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Cumulative goodwill impairment | $ 0 | ||
Goodwill | 51,084,000 | $ 51,084,000 | |
Gross intangible assets | 41,700,000 | 43,700,000 | |
Amortization expense | $ 4,200,000 | 4,400,000 | $ 3,900,000 |
Customer Relationships | |||
Goodwill [Line Items] | |||
Useful life | 10 years | ||
Housekeeping Segment | |||
Goodwill [Line Items] | |||
Goodwill | $ 42,400,000 | ||
Dietary Segment | |||
Goodwill [Line Items] | |||
Goodwill | $ 8,700,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Estimated Amortization Expense for Intangibles Subject to Amortization (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 4,165 |
2021 | 4,165 |
2022 | 4,165 |
2023 | 3,168 |
2024 | 2,035 |
Thereafter | $ 4,655 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |||
Unrealized gain (loss) on available-for-sale marketable securities, net of taxes | $ 2,761 | $ (679) | $ 1,156 |
Quoted Prices in Active Markets (Level 1) | RSP | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized gain related to equity securities | 7,400 | ||
Unrealized loss related to equity securities | (1,300) | ||
Municipal bonds — available-for-sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Proceeds from available for sale municipal bonds | 21,300 | 9,000 | 28,500 |
Realized loss (less than $0.2 million for 2018 and less than $0.1 for 2017) | $ 100 | $ 200 | $ 100 |
Fair Value Measurements - Marke
Fair Value Measurements - Marketable Securities and Deferred Compensation Fund Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets: | |||
Municipal bonds — available-for-sale | $ 90,711 | $ 76,362 | $ 73,221 |
Deferred compensation fund | 37,247 | 29,113 | |
Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Deferred compensation fund | 34,622 | 26,584 | |
Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Deferred compensation fund | 2,625 | 2,529 | |
Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Carrying Amount | |||
Financial Assets: | |||
Deferred compensation fund | 37,247 | 29,113 | |
Municipal bonds — available-for-sale | |||
Financial Assets: | |||
Municipal bonds — available-for-sale | 90,711 | 76,362 | $ 73,221 |
Municipal bonds — available-for-sale | Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Municipal bonds — available-for-sale | 0 | 0 | |
Municipal bonds — available-for-sale | Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Municipal bonds — available-for-sale | 90,711 | 76,362 | |
Municipal bonds — available-for-sale | Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Municipal bonds — available-for-sale | 0 | 0 | |
Municipal bonds — available-for-sale | Carrying Amount | |||
Financial Assets: | |||
Municipal bonds — available-for-sale | 90,711 | 76,362 | |
Money Market | |||
Financial Assets: | |||
Deferred compensation fund | 2,625 | 2,529 | |
Money Market | Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Money Market | Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Deferred compensation fund | 2,625 | 2,529 | |
Money Market | Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Money Market | Carrying Amount | |||
Financial Assets: | |||
Deferred compensation fund | 2,625 | 2,529 | |
Balanced and Lifestyle | |||
Financial Assets: | |||
Deferred compensation fund | 10,294 | 8,265 | |
Balanced and Lifestyle | Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Deferred compensation fund | 10,294 | 8,265 | |
Balanced and Lifestyle | Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Balanced and Lifestyle | Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Balanced and Lifestyle | Carrying Amount | |||
Financial Assets: | |||
Deferred compensation fund | 10,294 | 8,265 | |
Large Cap Growth | |||
Financial Assets: | |||
Deferred compensation fund | 11,369 | 8,195 | |
Large Cap Growth | Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Deferred compensation fund | 11,369 | 8,195 | |
Large Cap Growth | Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Large Cap Growth | Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Large Cap Growth | Carrying Amount | |||
Financial Assets: | |||
Deferred compensation fund | 11,369 | 8,195 | |
Small Cap Growth | |||
Financial Assets: | |||
Deferred compensation fund | 4,120 | ||
Small Cap Growth | Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Deferred compensation fund | 4,120 | ||
Small Cap Growth | Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | ||
Small Cap Growth | Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | ||
Small Cap Growth | Carrying Amount | |||
Financial Assets: | |||
Deferred compensation fund | 4,120 | ||
Small Cap Value | |||
Financial Assets: | |||
Deferred compensation fund | 3,217 | ||
Small Cap Value | Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Deferred compensation fund | 3,217 | ||
Small Cap Value | Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | ||
Small Cap Value | Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | ||
Small Cap Value | Carrying Amount | |||
Financial Assets: | |||
Deferred compensation fund | 3,217 | ||
Fixed Income | |||
Financial Assets: | |||
Deferred compensation fund | 4,072 | 3,432 | |
Fixed Income | Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Deferred compensation fund | 4,072 | 3,432 | |
Fixed Income | Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Fixed Income | Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Fixed Income | Carrying Amount | |||
Financial Assets: | |||
Deferred compensation fund | 4,072 | 3,432 | |
International | |||
Financial Assets: | |||
Deferred compensation fund | 1,932 | 1,485 | |
International | Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Deferred compensation fund | 1,932 | 1,485 | |
International | Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
International | Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
International | Carrying Amount | |||
Financial Assets: | |||
Deferred compensation fund | 1,932 | 1,485 | |
Mid Cap Growth | |||
Financial Assets: | |||
Deferred compensation fund | 2,835 | 1,990 | |
Mid Cap Growth | Quoted Prices in Active Markets (Level 1) | |||
Financial Assets: | |||
Deferred compensation fund | 2,835 | 1,990 | |
Mid Cap Growth | Significant Other Observable Inputs (Level 2) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Mid Cap Growth | Significant Unobservable Inputs (Level 3) | |||
Financial Assets: | |||
Deferred compensation fund | 0 | 0 | |
Mid Cap Growth | Carrying Amount | |||
Financial Assets: | |||
Deferred compensation fund | $ 2,835 | $ 1,990 |
Fair Value Measurements - Mar_2
Fair Value Measurements - Marketable Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Cost | $ 87,016 | $ 76,162 | $ 72,249 |
Gross Unrealized Gains | 3,695 | 633 | 1,169 |
Gross Unrealized Losses | 0 | (433) | (197) |
Estimated Fair Value | 90,711 | 76,362 | 73,221 |
Other-Than-Temporary Impairments | 0 | 0 | 0 |
Municipal bonds — available-for-sale | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Cost | 87,016 | 76,162 | 72,249 |
Gross Unrealized Gains | 3,695 | 633 | 1,169 |
Gross Unrealized Losses | 0 | (433) | (197) |
Estimated Fair Value | 90,711 | 76,362 | 73,221 |
Other-Than-Temporary Impairments | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities of Available for Sale Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | |||
Maturing in one year or less | $ 876 | $ 1,645 | |
Maturing in second year through fifth year | 16,071 | 24,649 | |
Maturing in sixth year through tenth year | 38,801 | 14,769 | |
Maturing after ten years | 34,963 | 35,299 | |
Total debt securities | $ 90,711 | $ 76,362 | $ 73,221 |
Accounts and Notes Receivable -
Accounts and Notes Receivable - Schedule of Net Accounts and Notes Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term | ||
Accounts and notes receivable | $ 386,656 | $ 389,047 |
Allowance for doubtful accounts | (45,726) | (47,209) |
Total net short-term accounts and notes receivable | 340,930 | 341,838 |
Long-term | ||
Notes receivable | 53,659 | 53,043 |
Allowance for doubtful accounts | (6,667) | (10,000) |
Total net long-term notes receivable | 46,992 | 43,043 |
Total net accounts and notes receivable | $ 387,922 | $ 384,881 |
Accounts and Notes Receivable_2
Accounts and Notes Receivable - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||||
Notes outstanding, net | $ 70,400 | $ 63,300 | ||
Note reserves | $ 12,490 | $ 13,472 | $ 2,884 | $ 2,419 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts - Bad Debt Provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Bad debt provision | $ 25,480 | $ 51,387 | $ 6,250 |
Allowance for Doubtful Accoun_4
Allowance for Doubtful Accounts - Impaired Notes Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impaired Notes Receivable | |||
Balance Beginning of Year | $ 25,704 | $ 6,854 | $ 5,685 |
Additions | 3,763 | 23,382 | 1,169 |
Deductions | 4,830 | 4,532 | 0 |
Balance End of Year | 24,637 | 25,704 | 6,854 |
Average Outstanding Balance | 27,554 | 15,448 | 6,270 |
Reserve for Impaired Notes Receivable | |||
Balance Beginning of Year | 13,472 | 2,884 | 2,419 |
Additions | 3,575 | 12,526 | 465 |
Deductions | 4,557 | 1,938 | 0 |
Balance End of Year | $ 12,490 | $ 13,472 | $ 2,884 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Termination option | 1 year | |
Short-term lease obligation | $ 5.2 | $ 5.2 |
Reduction of ROU assets | 0.3 | |
Reduction of lease liabilities | $ 0.3 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | 1 year |
Extension option | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 10 years | 10 years |
Extension option | 5 years | 5 years |
Lease Commitments - Operating L
Lease Commitments - Operating Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases, Operating [Abstract] | |||
Operating lease cost | $ 4,699 | ||
Short-term lease cost | 830 | ||
Variable lease cost | 591 | ||
Total lease cost | $ 6,120 | ||
Operating lease expense | $ 4,039 | $ 3,833 |
Lease Commitments - Future Mini
Lease Commitments - Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases, Operating [Abstract] | |
2020 | $ 5,179 |
2021 | 3,592 |
2022 | 2,312 |
2023 | 1,277 |
2024 | 1,285 |
Thereafter | 5,514 |
Total undiscounted minimum lease payments | 19,159 |
Lease liability | 16,900 |
Imputed interest | $ 2,300 |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 4,908 |
Operating cash flows from operating leases | $ 21,366 |
Weighted-average remaining lease term — operating leases | 6 years 2 months 12 days |
Weighted-average discount rate — operating leases | 4.70% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total pre-tax stock-based compensation expense charged against income | $ 6,865 | $ 5,900 | $ 5,985 |
Total recognized tax benefit related to stock-based compensation | 196 | 1,480 | 5,709 |
Unrecognized compensation cost | $ 16,100 | $ 14,000 | |
Period of expense of unrecognized compensation cost, years | 2 years 4 months 24 days | 2 years 6 months | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total pre-tax stock-based compensation expense charged against income | $ 2,623 | $ 2,989 | 3,740 |
Restricted stock units and restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total pre-tax stock-based compensation expense charged against income | $ 3,967 | 2,591 | 1,205 |
Period of expense of unrecognized compensation cost, years | 3 years 3 months 18 days | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total pre-tax stock-based compensation expense charged against income | $ 275 | $ 320 | $ 1,040 |
Share-Based Compensation - 2012
Share-Based Compensation - 2012 Equity Incentive Plan (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Payment Arrangement [Abstract] | |
Common stock reserved for future issuance (in shares) | 3.2 |
Shares available for future grant (in shares) | 0.8 |
Maximum term of grants | 10 years |
Options vested and exercisable, period | 5 years |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Options Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Shares | |
Beginning of period (in shares) | shares | 2,121 |
Granted (in shares) | shares | 188 |
Exercised (in shares) | shares | (163) |
Forfeited (in shares) | shares | (23) |
Expired (in shares) | shares | (16) |
End of period (in shares) | shares | 2,107 |
Weighted Average Exercise Price | |
Beginning of period (in dollars per share) | $ / shares | $ 31.53 |
Granted (in dollars per share) | $ / shares | 40.49 |
Exercised (in dollars per share) | $ / shares | 22.32 |
Forfeited (in dollars per share) | $ / shares | 36.49 |
Expired (in dollars per share) | $ / shares | 31.37 |
End of period (in dollars per share) | $ / shares | $ 32.99 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options, Summary of Other Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of options vested | $ 3 | $ 3.7 | $ 3.2 |
Tax benefit from exercise of stock options | $ 0.2 | $ 1 | $ 5.3 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 8.18 | $ 10.48 | $ 8.52 |
Total intrinsic value of options exercised | $ 5.5 | $ 7.8 | $ 19.5 |
Share-Based Compensation - St_2
Share-Based Compensation - Stock Options, Schedule of Assumptions for Fair Value of Options Granted (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.50% | 2.10% | 2.00% |
Weighted average expected life | 5 years 8 months 12 days | 5 years 9 months 18 days | 5 years 9 months 18 days |
Expected volatility | 22.60% | 21.50% | 25.10% |
Dividend yield | 1.90% | 1.50% | 1.90% |
Share-Based Compensation - Su_3
Share-Based Compensation - Summarized Information of Stock Options Outstanding (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Outstanding: | |
Aggregate intrinsic value | $ 2,121 |
Weighted average remaining contractual life | 5 years 4 months 24 days |
Exercisable: | |
Number of options (in shares) | shares | 1,256 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 28.45 |
Aggregate intrinsic value | $ 2,121 |
Weighted average remaining contractual life | 4 years 3 months 18 days |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units and Restricted Stock, Summary of Other Information (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining vesting period (years) | 2 years 4 months 24 days | 2 years 6 months | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 200,000 | 100,000 | 100,000 |
Weighted average grant-date fair value of restricted stock units and restricted stock granted | $ 40.49 | $ 52.06 | $ 40.16 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0 | 0 | 0 |
Weighted average remaining vesting period (years) | 9 months 18 days | ||
Restricted stock units and restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 194,000 | ||
Weighted average grant-date fair value of restricted stock units and restricted stock granted | $ 40.49 | $ 52.06 | $ 40.16 |
Weighted average remaining vesting period (years) | 3 years 3 months 18 days |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Restricted Stock Unit and Restricted Stock Activity (Details) - Restricted stock units and restricted stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Restricted Shares | |||
Beginning balance (in shares) | 241 | ||
Granted (in shares) | 194 | ||
Vested (in shares) | (61) | ||
Forfeited (in shares) | (12) | ||
Ending balance (in shares) | 362 | 241 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 45.47 | ||
Granted (in dollars per share) | 40.49 | $ 52.06 | $ 40.16 |
Vested (in dollars per share) | 43.04 | ||
Forfeited (in dollars per share) | 44.47 | ||
Ending balance (in dollars per share) | $ 43.24 | $ 45.47 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Remaining Grant-Date and Total Fair Values (Details) - Restricted stock units and restricted stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Weighted average grant-date fair value of restricted stock units and restricted stock granted | $ 40.49 | $ 52.06 | $ 40.16 |
Total fair value of restricted stock units and restricted stock vested | $ 2,399 | $ 1,822 | $ 690 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future grant (in shares) | 0.8 |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average weekly hours of work | 20 hours |
Service period | 2 years |
Stock options authorized to issue to employees (in shares) | 4.1 |
Shares available for future grant (in shares) | 2.1 |
Annual earnings withheld to purchase common stock | $ | $ 21,250 |
Percent of IRS limitation | 85.00% |
Maximum fair value of common stock purchased | $ | $ 25,000 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of ESPP Annual Offerings (Details) - Employee Stock Purchase Plan - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares purchased (in shares) | 75 | 53 | 54 |
Per common share purchase price (in dollars per share) | $ 20.67 | $ 34.15 | $ 33.29 |
Share-Based Compensation - Defe
Share-Based Compensation - Deferred Compensation Plan (Details) - SERP shares in Millions | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of earned income on a pre-tax basis, deferred | 25.00% |
Percentage of match participants' deferrals | 25.00% |
Percentage of deferral in the form of common stock | 15.00% |
Full vest in matching contribution | 3 years |
Stock options authorized to issue (in shares) | 1 |
Common stock reserved for future issuance (in shares) | 0.4 |
Stock options vested and outstanding (in shares) | 0.3 |
Share-Based Compensation - Su_6
Share-Based Compensation - Summary of Information Of SERP (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
SERP expense | $ 6,865 | $ 5,900 | $ 5,985 |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
SERP expense | $ 539 | $ 547 | $ 503 |
Treasury shares issued to fund SERP expense (in shares) | 22 | 14 | 9 |
SERP trust account balance at December 31 | $ 43,952 | $ 39,766 | $ 42,467 |
Unrealized gain (loss) recorded in SERP liability account | $ 7,353 | $ (1,469) | $ 4,534 |
Other Employee Benefit Plans (D
Other Employee Benefit Plans (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Maximum percentage of employee contribution | 15.00% |
Dividends - Quarterly Dividend
Dividends - Quarterly Dividend Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends [Abstract] | |||||||
Cash dividends paid per common share (in dollars per share) | $ 0.20000 | $ 0.19875 | $ 0.19750 | $ 0.19625 | |||
Total cash dividends paid | $ 14,886 | $ 14,789 | $ 14,688 | $ 14,588 | $ 58,951 | $ 57,201 | $ 55,244 |
Dividends - Additional Informat
Dividends - Additional Information (Details) - $ / shares | Feb. 11, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Dividends [Abstract] | ||||||||||||
Cash dividends declared per common share (in shares) | $ 0.20125 | $ 0.20000 | $ 0.19875 | $ 0.19750 | $ 0.19625 | $ 0.19500 | $ 0.19375 | $ 0.19250 | $ 0.79750 | $ 0.77750 | $ 0.75750 | |
Subsequent Event | ||||||||||||
Dividends [Abstract] | ||||||||||||
Cash dividends declared per common share (in shares) | $ 0.20125 |
Dividends - Cash Dividends Per
Dividends - Cash Dividends Per Common Share (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||||||||||
Cash dividends declared per common share (in shares) | $ 0.20125 | $ 0.20000 | $ 0.19875 | $ 0.19750 | $ 0.19625 | $ 0.19500 | $ 0.19375 | $ 0.19250 | $ 0.79750 | $ 0.77750 | $ 0.75750 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 15,041 | $ 23,407 | $ 35,673 |
State | 6,158 | 5,992 | 7,179 |
Total | 21,199 | 29,399 | 42,852 |
Deferred: | |||
Federal | (824) | (9,526) | 2,924 |
State | 140 | (3,487) | (1,037) |
Total | (684) | (13,013) | 1,887 |
Tax provision | $ 20,515 | $ 16,386 | $ 44,739 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 22, 2017 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Adjustment of deferred tax asset | $ 4,500,000 | |
Unrecognized tax benefits | $ 0 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Federal and State Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 13,376 | $ 14,599 |
Deferred compensation | 8,074 | 7,350 |
Accrued insurance claims | 4,902 | 3,715 |
Non-deductible reserves | 489 | 336 |
Amortization of intangibles | 0 | 24 |
Other | 1,641 | 1,730 |
Deferred tax assets | 28,482 | 27,754 |
Deferred tax liabilities: | ||
Expensing of housekeeping supplies | (3,796) | (4,375) |
Amortization of intangibles | 218 | 0 |
Depreciation of property and equipment | (1,969) | (1,913) |
Leases | (96) | 0 |
Other | (2,039) | (914) |
Deferred tax liabilities | (8,118) | (7,202) |
Net deferred tax assets | $ 20,364 | $ 20,552 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax expense computed at statutory rate | $ 17,872 | $ 20,981 | $ 46,538 |
Increases (decreases) resulting from: | |||
State income taxes, net of federal tax benefit | 4,902 | 1,936 | 3,661 |
Federal jobs credits | (3,164) | (5,006) | (4,193) |
Tax exempt interest | (399) | (384) | (568) |
Stock-based compensation | 298 | (1,179) | (4,632) |
United States Tax Reform - remeasurement of deferred taxes | 0 | 0 | 3,719 |
Other, net | 1,006 | 38 | 214 |
Tax provision | $ 20,515 | $ 16,386 | $ 44,739 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |||
Fees paid to related party firm (less than) | $ 120 | $ 120 | $ 120 |
Percentage of fee paid to related party in relation to related party's total revenue (less than) | 5.00% | 5.00% | 5.00% |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Information of Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 446,960 | $ 455,606 | $ 462,101 | $ 476,111 | $ 494,952 | $ 505,500 | $ 501,587 | $ 500,562 | $ 1,840,778 | $ 2,002,601 | $ 1,861,206 |
Income before income taxes | 25,871 | $ 23,716 | $ 23,617 | $ 11,892 | 35,007 | $ 32,982 | $ 33,316 | $ (1,395) | 85,096 | 99,910 | 132,965 |
Depreciation and amortization | 13,940 | 9,272 | 8,886 | ||||||||
Total assets | 722,592 | 692,603 | 722,592 | 692,603 | 676,003 | ||||||
Capital expenditures | 4,368 | 4,940 | 5,397 | ||||||||
Customer Concentration Risk | Revenue from Contract with Customer | Genesis | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 287,800 | $ 386,700 | |||||||||
Capital expenditures | 15.60% | 19.30% | |||||||||
Housekeeping services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 909,500 | $ 967,600 | 974,700 | ||||||||
Dietary services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 931,300 | 1,035,000 | 886,500 | ||||||||
Operating Segments | Housekeeping services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 909,499 | 967,606 | 974,685 | ||||||||
Income before income taxes | 94,173 | 105,904 | 92,500 | ||||||||
Depreciation and amortization | 5,945 | 6,315 | 6,547 | ||||||||
Total assets | 265,096 | 291,117 | 265,096 | 291,117 | 304,303 | ||||||
Capital expenditures | 3,188 | 3,996 | 4,287 | ||||||||
Operating Segments | Dietary services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 931,279 | 1,034,995 | 886,521 | ||||||||
Income before income taxes | 43,269 | 60,562 | 46,008 | ||||||||
Depreciation and amortization | 2,422 | 2,433 | 1,813 | ||||||||
Total assets | 236,075 | 235,183 | 236,075 | 235,183 | 242,874 | ||||||
Capital expenditures | 68 | 690 | 663 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income before income taxes | (52,346) | (66,556) | (5,543) | ||||||||
Depreciation and amortization | 5,573 | 524 | 526 | ||||||||
Total assets | $ 221,421 | $ 166,303 | 221,421 | 166,303 | 128,826 | ||||||
Capital expenditures | $ 1,112 | $ 254 | $ 447 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Weighted average number of common shares outstanding - basic (in shares) | 74,362 | 74,002 | 73,355 |
Effect of dilutive securities (in shares) | 228 | 610 | 993 |
Weighted average number of common shares outstanding - diluted (in shares) | 74,590 | 74,612 | 74,348 |
Anti-dilutive | 1,682 | 659 | 261 |
Contractual Obligations and O_2
Contractual Obligations and Other Contingencies (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)financial_covenant | Jan. 02, 2019USD ($) | Dec. 31, 2018USD ($) | |
Short-term Debt [Line Items] | |||
Bank line of credit | $ 475,000,000 | ||
Borrowings under line of credit | $ 10,000,000 | $ 30,000,000 | |
Number of financial covenants | financial_covenant | 2 | ||
Change in bank line of credit | $ 62,700,000 | ||
Remaining borrowing capacity | $ 402,300,000 | ||
Standby Letter of Credit | |||
Short-term Debt [Line Items] | |||
Irrevocable standby letter of credit, outstanding | $ 62,700,000 | $ 64,900,000 | |
LIBOR | |||
Short-term Debt [Line Items] | |||
Basis spread on variable rate | 1.15% | ||
Prime Rate or Overnight Bank Funding Rate | |||
Short-term Debt [Line Items] | |||
Basis spread on variable rate | 0.50% |
Accrued Insurance Claims (Detai
Accrued Insurance Claims (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Percent of liabilities | 33.40% |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 446,960 | $ 455,606 | $ 462,101 | $ 476,111 | $ 494,952 | $ 505,500 | $ 501,587 | $ 500,562 | $ 1,840,778 | $ 2,002,601 | $ 1,861,206 |
Operating costs and expenses | 423,556 | 431,883 | 439,094 | 468,366 | 456,612 | 474,975 | 470,405 | 502,773 | |||
(Loss) income before income taxes | 25,871 | 23,716 | 23,617 | 11,892 | 35,007 | 32,982 | 33,316 | (1,395) | 85,096 | 99,910 | 132,965 |
Net income | $ 18,895 | $ 18,344 | $ 18,186 | $ 9,156 | $ 31,552 | $ 26,086 | $ 25,814 | $ 72 | $ 64,581 | $ 83,524 | $ 88,226 |
Basic earnings per common share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.24 | $ 0.12 | $ 0.43 | $ 0.35 | $ 0.35 | $ 0 | $ 0.87 | $ 1.13 | $ 1.20 |
Diluted earnings per common share (in dollars per share) | 0.25 | 0.25 | 0.24 | 0.12 | 0.42 | 0.35 | 0.35 | 0 | 0.87 | 1.12 | 1.19 |
Cash dividends declared per common share (in shares) | $ 0.20125 | $ 0.20000 | $ 0.19875 | $ 0.19750 | $ 0.19625 | $ 0.19500 | $ 0.19375 | $ 0.19250 | $ 0.79750 | $ 0.77750 | $ 0.75750 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - Allowance For Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 57,209 | $ 11,985 | $ 6,911 |
Additions | |||
Charged to Costs and Expenses | 25,480 | 51,387 | 6,250 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 30,296 | 6,163 | 1,176 |
Ending Balance | $ 52,393 | $ 57,209 | $ 11,985 |