Cover Page
Cover Page - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Apr. 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-12015 | |
Entity Registrant Name | HEALTHCARE SERVICES GROUP, INC. | |
Entity Incorporation, State Code | PA | |
I.R.S. Employer Identification No. | 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, $.01 par value | |
Trading Symbol | HCSG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 74,717 | |
Entity Central Index Key | 0000731012 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 123,654 | $ 139,330 |
Marketable securities, at fair value | 125,773 | 125,012 |
Accounts and notes receivable, less allowance for doubtful accounts of $53,819 and $59,906 as of March 31, 2021 and December 31, 2020, respectively | 252,778 | 255,474 |
Inventories and supplies | 29,170 | 31,586 |
Prepaid expenses and other assets | 40,815 | 21,001 |
Total current assets | 572,190 | 572,403 |
Property and equipment, net | 27,722 | 26,561 |
Goodwill | 51,084 | 51,084 |
Other intangible assets, less accumulated amortization of $24,507 and $23,466 as of March 31, 2021 and December 31, 2020, respectively | 17,146 | 18,187 |
Notes receivable — long–term portion, less allowance for doubtful accounts of $7,283 and $7,895 as of March 31, 2021 and December 31, 2020, respectively | 31,795 | 34,417 |
Deferred compensation funding, at fair value | 46,981 | 46,825 |
Deferred income taxes | 35,891 | 35,554 |
Total assets | 782,809 | 785,031 |
Current liabilities: | ||
Accounts payable | 47,754 | 52,239 |
Accrued payroll and related taxes | 37,691 | 70,614 |
Other accrued expenses | 30,852 | 17,797 |
Income taxes payable | 7,908 | 0 |
Accrued insurance claims | 22,702 | 21,610 |
Total current liabilities | 146,907 | 162,260 |
Accrued insurance claims — long-term portion | 60,348 | 60,818 |
Deferred compensation liability | 46,876 | 46,827 |
Accrued payroll and related taxes - noncurrent | 23,302 | 23,302 |
Lease liability — long-term portion | 12,274 | 11,363 |
Commitments and contingencies (Note 15) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.01 par value; 100,000 shares authorized; 75,958 and 75,798 shares issued, and 74,721 and 74,485 shares outstanding as of March 31, 2021 and December 31, 2020, respectively | 760 | 758 |
Additional paid-in capital | 286,522 | 282,206 |
Retained earnings | 210,020 | 200,893 |
Accumulated other comprehensive income, net of taxes | 4,292 | 5,563 |
Common stock in treasury, at cost, 1,237 and 1,313 shares as of March 31, 2021 and December 31, 2020, respectively | (8,492) | (8,959) |
Total stockholders’ equity | 493,102 | 480,461 |
Total liabilities and stockholders’ equity | $ 782,809 | $ 785,031 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, current | $ 53,819 | $ 59,906 |
Accumulated amortization of other intangible assets | 24,507 | 23,466 |
Allowance for doubtful accounts, noncurrent | $ 7,283 | $ 7,895 |
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) | 75,958,000 | 75,798,000 |
Common stock outstanding (in shares) | 74,721,000 | 74,485,000 |
Common stock in treasury (in shares) | 1,237,000 | 1,313,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 407,751 | $ 449,150 |
Operating costs and expenses: | ||
Costs of services provided | 336,619 | 387,156 |
Selling, general and administrative expense | 39,987 | 30,017 |
Other income (expense): | ||
Investment and other income, net | 2,165 | (4,827) |
Interest expense | (358) | (368) |
Income before income taxes | 32,952 | 26,782 |
Income tax provision | 8,299 | 6,592 |
Net income | $ 24,653 | $ 20,190 |
Per share data: | ||
Basic earnings per common share (in dollars per share) | $ 0.33 | $ 0.27 |
Diluted earnings per common share (in dollars per share) | $ 0.33 | $ 0.27 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 75,003 | 74,658 |
Diluted (in shares) | 75,224 | 74,767 |
Comprehensive income: | ||
Net income | $ 24,653 | $ 20,190 |
Other comprehensive income: | ||
Unrealized loss on available-for-sale marketable securities, net of taxes | (1,271) | (533) |
Total comprehensive income | $ 23,382 | $ 19,657 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 24,653 | $ 20,190 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,607 | 3,556 |
Bad debt provision | 3,415 | 2,060 |
Share-based compensation expense | 2,271 | 1,973 |
Amortization of premium on marketable securities | 536 | 450 |
Unrealized (gain) loss on deferred compensation fund investments | (1,146) | 5,761 |
Loss on sale of assets | 268 | 0 |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable | 1,903 | (9,645) |
Inventories and supplies | 2,416 | (421) |
Prepaid expenses and other assets | (19,814) | (4,574) |
Deferred compensation funding | 990 | 1,478 |
Accounts payable and other accrued expenses | 6,064 | (379) |
Accrued payroll, accrued and withheld payroll taxes | (30,747) | (4,626) |
Income taxes payable | 7,908 | 2,480 |
Accrued insurance claims | 622 | 1,379 |
Deferred compensation liability | 556 | (6,994) |
Net cash provided by operating activities | 3,502 | 12,688 |
Cash flows from investing activities: | ||
Disposals of fixed assets | 54 | 129 |
Additions to property and equipment | (850) | (788) |
Purchases of marketable securities | (7,902) | (2,670) |
Sales of marketable securities | 4,995 | 1,757 |
Net cash used in investing activities | (3,703) | (1,572) |
Cash flows from financing activities: | ||
Dividends paid | (15,472) | (15,033) |
Reissuance of treasury stock pursuant to Dividend Reinvestment Plan | 23 | 23 |
Proceeds from the exercise of stock options | 1,475 | 1,724 |
Proceeds from short-term borrowings | 0 | 40,000 |
Payments of statutory withholding on net issuance of restricted stock units | (1,501) | (661) |
Net cash (used in) provided by financing activities | (15,475) | 26,053 |
Net change in cash and cash equivalents | (15,676) | 37,169 |
Cash and cash equivalents at beginning of the period | 139,330 | 27,329 |
Cash and cash equivalents at end of the period | $ 123,654 | $ 64,498 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Adjustment to adopt credit-loss guidance | [1] | Balance, January 1, 2020 | Common Stock | Common StockBalance, January 1, 2020 | Additional Paid-in Capital | Additional Paid-in CapitalBalance, January 1, 2020 | Accumulated Other Comprehensive Income, net of taxes | Accumulated Other Comprehensive Income, net of taxesBalance, January 1, 2020 | Retained Earnings | Retained EarningsAdjustment to adopt credit-loss guidance | [1] | Retained EarningsBalance, January 1, 2020 | Treasury Stock | Treasury StockBalance, January 1, 2020 |
Balance (in shares) at Dec. 31, 2019 | 75,557 | 75,557 | ||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 460,305 | $ (32,099) | $ 428,206 | $ 756 | $ 756 | $ 270,614 | $ 270,614 | $ 2,919 | $ 2,919 | $ 195,455 | $ (32,099) | $ 163,356 | $ (9,439) | $ (9,439) | ||
Comprehensive income: | ||||||||||||||||
Net income for the period | 20,190 | 20,190 | ||||||||||||||
Unrealized loss on available-for-sale marketable securities, net of taxes | (533) | (533) | ||||||||||||||
Comprehensive income for the period | 19,657 | |||||||||||||||
Exercise of stock options and other share-based compensation, net of shares tendered for payment (in shares) | 162 | |||||||||||||||
Exercise of stock options and other share-based compensation, net of shares tendered for payment | 1,724 | $ 1 | 1,723 | |||||||||||||
Payment of statutory withholding on issuance of restricted stock and restricted stock units | (661) | (661) | ||||||||||||||
Share-based compensation expense | 1,822 | 1,822 | ||||||||||||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions | 528 | 417 | 111 | |||||||||||||
Shares issued pursuant to Employee Stock Plan | 1,835 | 1,329 | 506 | |||||||||||||
Dividends paid and accrued, $0.21 per share | (15,142) | (15,142) | ||||||||||||||
Shares issued pursuant to Dividend Reinvestment Plan | 23 | 16 | 7 | |||||||||||||
Other (in shares) | 6 | |||||||||||||||
Other | 187 | 187 | ||||||||||||||
Balance (in shares) at Mar. 31, 2020 | 75,725 | |||||||||||||||
Ending balance at Mar. 31, 2020 | 438,179 | $ 757 | 275,447 | 2,386 | 168,404 | (8,815) | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 75,798 | |||||||||||||||
Beginning balance at Dec. 31, 2020 | 480,461 | $ 758 | 282,206 | 5,563 | 200,893 | (8,959) | ||||||||||
Comprehensive income: | ||||||||||||||||
Net income for the period | 24,653 | 24,653 | ||||||||||||||
Unrealized loss on available-for-sale marketable securities, net of taxes | (1,271) | (1,271) | ||||||||||||||
Comprehensive income for the period | 23,382 | |||||||||||||||
Exercise of stock options and other share-based compensation, net of shares tendered for payment (in shares) | 156 | |||||||||||||||
Exercise of stock options and other share-based compensation, net of shares tendered for payment | 1,475 | $ 2 | 1,473 | |||||||||||||
Payment of statutory withholding on issuance of restricted stock and restricted stock units | (1,501) | (1,501) | ||||||||||||||
Share-based compensation expense | 2,104 | 2,104 | ||||||||||||||
Treasury shares issued for Deferred Compensation Plan funding and redemptions | 509 | 545 | (36) | |||||||||||||
Shares issued pursuant to Employee Stock Plan | 2,052 | 1,554 | 498 | |||||||||||||
Dividends paid and accrued, $0.21 per share | (15,526) | (15,526) | ||||||||||||||
Shares issued pursuant to Dividend Reinvestment Plan | 23 | 18 | 5 | |||||||||||||
Other (in shares) | 4 | |||||||||||||||
Other | 123 | 123 | ||||||||||||||
Balance (in shares) at Mar. 31, 2021 | 75,958 | |||||||||||||||
Ending balance at Mar. 31, 2021 | $ 493,102 | $ 760 | $ 286,522 | $ 4,292 | $ 210,020 | $ (8,492) | ||||||||||
[1] | See Note 4—Allowance for Doubtful Accounts regarding the new credit-loss guidance |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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 customers 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 customers. In such agreements, the Company is responsible for the day-to-day management of employees located at the customers’ facilities, as well as for the provision of certain supplies. The Company also provides services on the basis of management-only agreements for a limited number of customers. In a management-only agreement, the Company provides management and supervisory services while the customer facility retains payroll responsibility for the non-supervisory staff. The agreements with customers typically provide for a renewable one year service term, cancellable 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 customers’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of a customer’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 customer facility. Dietary consists of managing the customers’ 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. Unaudited Interim Financial Data The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows. However, in the Company’s opinion, all adjustments which are of a normal recurring nature and are necessary for a fair presentation have been reflected in these consolidated financial statements. The balance sheet shown in this report as of December 31, 2020 has been derived from the audited financial statements for the year ended December 31, 2020. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for any future period. 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, including the potential future effects of COVID-19. 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. 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. Accounts and Notes Receivable Accounts and notes receivable consist of Housekeeping and Dietary segment trade receivables from contracts with customers. The Company’s payment terms with customers for services provided are defined within each customer’s service agreement. All accounts receivables are considered short term assets as the Company does not grant payment terms greater than one year. Accounts receivable initially are recorded at the transaction amount, and are recorded after the Company has an unconditional right to payment where only the passage of time is required before payment is received. Each reporting period, the Company evaluates the collectability of outstanding receivable balances and records an allowance for doubtful accounts representing an estimate of future expected credit loss. Additions to the allowance for doubtful accounts are made by recording a charge to bad debt expense reported in costs of services provided. Notes receivable are initially recorded when accounts receivable are transferred into a promissory note and are recorded as an alternative to accounts receivable to memorialize an unqualified promise to pay a specific sum, typically with interest, in accordance with a defined payment schedule. The Company’s payment terms with customers on promissory notes can vary based on several factors and the circumstances of each promissory note, however typically promissory notes mature over a 1 to 3 year period. Similar to accounts receivable, each reporting period the Company evaluates the collectability of outstanding notes receivable balances and records an allowance for doubtful accounts representing an estimate of future expected credit loss. Refer to Note 3—Accounts and Notes Receivable herein for further information. Allowance for Doubtful Accounts The guidance under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification subtopic 326 Credit Losses - Measurement of Credit Losses on Financial Instruments ("ASC 326") became effective and was adopted by the Company prospectively as of January 1, 2020. In adopting ASC 326, 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 receivables. 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 generally are 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. Refer to Note 4—Allowance for Doubtful Accounts herein for further information. 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 on a first-in, first-out (FIFO) basis, and reduced as deemed necessary 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 contracts 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 amount of revenue recognized by the Company is based on the consideration to which the Company is entitled in exchange for providing the contracted goods and services. Refer to Note 2—Revenue herein for further information. Leases 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, in accordance with FASB Accounting Standards Codification subtopic ASC 842 Leases (“ASC 842”). 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 direct of use of the asset, and the Company obtains substantially all of the economic benefits from the right of use. As of March 31, 2021 and December 31, 2020, the Company was only the lessee of operating lease arrangements. Refer to Note 7—Leases herein for further information. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, income tax expense or benefits are recognized for the amount of taxes payable or refundable for the current period. The Company accrues for probable tax obligations as required, based on facts and circumstances in various regulatory environments. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases 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. 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. 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 computed 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, using a Monte Carlo simulation for performance restricted stock units, 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. 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 annually during the fourth quarter 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 during the three months ended March 31, 2021 or 2020. Concentrations of Credit Risk The Company’s financial instruments that are subject to credit risk are cash and cash equivalents, marketable securities, deferred compensation funding and accounts and notes receivable. At March 31, 2021 and December 31, 2020, 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 marketable securities are fixed income investments which are highly liquid and can be readily purchased or sold through established markets. The Company’s customers are concentrated in the healthcare industry and are primarily providers of long-term care. The revenues of many of the Company’s customers 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 customers participate. As a result, the Company may not realize the full effects of such programs until these laws are fully implemented and governmental agencies issue applicable regulations or guidance. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2—Revenue The Company presents its consolidated revenues disaggregated by reportable segment, as Management evaluates the nature, amount, timing and uncertainty of the Company’s revenues by segment. Refer to Note 13—Segment Information herein as well as the information below regarding the Company’s reportable segments. Housekeeping Housekeeping accounted for $215.1 million and $224.3 million of the Company’s consolidated revenues for the three months ended March 31, 2021 and 2020, respectively, which represented approximately 52.7% and 49.9% of the Company’s revenues in each respective period. The Housekeeping services include managing customers’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of the customers’ facilities, as well as the laundering and processing of the bed linens, uniforms, resident personal clothing and other assorted linen items utilized at the customers’ facilities. Upon beginning service with a customer 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 customer requests. Such management personnel also oversee the execution of various cost and quality-control procedures including continuous training and employee evaluation. Dietary Dietary services accounted for $192.7 million and $224.9 million of the Company’s consolidated revenues for the three months ended March 31, 2021 and 2020, respectively, which represented approximately 47.3% and 50.1% of the Company’s revenues in each respective period. Dietary services consist of managing customers’ 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 customers. Upon beginning service with a customer 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 customer requests. Such management personnel also oversee the execution of various cost and quality control procedures including continuous training and employee evaluation. Revenue Recognition 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 is 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 its customers' contracts. Such contracts typically provide for a renewable one year service term, cancellable by either party upon 30 to 90 days’ notice, after an initial period of 60 to 120 days. A performance obligation is the unit of account under ASC 606 and is defined as a promise in a contract to transfer a distinct good or service to the customer. 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 that are substantially the same and that have the same pattern of transfer to the customer. 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 customers’ 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 $0.4 million and $0.1 million as of March 31, 2021 and December 31, 2020, respectively. Additionally, substantially all such revenue amounts deferred as of December 31, 2020 were subsequently recognized as revenue during the three months ended March 31, 2021. The transaction price is the amount of consideration to which the Company is 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 the Company 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 payment terms are less than one year. The Company allocates the transaction price to each performance obligation, noting that the bundle of goods, services or goods and services provided under each Housekeeping and Dietary contract represent a single performance obligation 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. In some cases, the Company requires customers to pay in advance for goods and services to be provided. As of March 31, 2021 and December 31, 2020, the value of the contract liabilities associated with customer prepayments was $0.1 million and $2.3 million, respectively. Additionally, substantially all such revenue amounts deferred as of December 31, 2020 were subsequently recognized as revenue during the three months ended March 31, 2021. Transaction Price Allocated to 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, 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 March 31, 2021, the Company had $374.6 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 34.3% 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 consist 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. |
Accounts and Notes Receivable
Accounts and Notes Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Accounts and Notes Receivable | Note 3—Accounts and Notes Receivable The Company’s accounts and notes receivable balances consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 (in thousands) Short-term Accounts and notes receivable $ 306,597 $ 315,380 Allowance for doubtful accounts (53,819) (59,906) Total net short-term accounts and notes receivable $ 252,778 $ 255,474 Long-term Notes receivable $ 39,078 $ 42,312 Allowance for doubtful accounts (7,283) (7,895) Total net long-term notes receivable $ 31,795 $ 34,417 Total net accounts and notes receivable $ 284,573 $ 289,891 The Company makes credit decisions on a case-by-case basis after reviewing a number of qualitative and quantitative factors related to the specific customer as well as current industry variables that may impact that customer. There are a variety of factors that impact a customer’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 customer’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 customer’s cash flows and its ability to make timely payments. However, the customer’s obligation to pay the Company in accordance with the contracts are not contingent upon the customer’s cash flow. Notwithstanding the Company’s efforts to minimize its credit risk exposure, the aforementioned factors, as well as other factors that impact customer 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 customer 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. In addition, the Company may amend contracts from full service to management-only arrangements, or adjust contractual payment terms, to accommodate customers who have in good faith established clearly-defined plans for addressing cash flow issues. These efforts are intended to minimize the Company’s collections risk. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Allowance for Doubtful Accounts | Note 4 - Allowance for Doubtful Accounts In making the Company’s credit evaluations, 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 on an aging schedule basis to minimize the risk of loss. Despite the Company’s efforts to minimize credit risk exposure, customers could be adversely affected if future industry trends, including those related to COVID-19, change in such a manner as to negatively impact their cash flows. The full effects of COVID-19 on the Company’s customers are highly uncertain and cannot be predicted. As a result, the Company’s future collection experience can differ significantly from historical collection trends. If the Company’s customers 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. The Company evaluates its accounts and notes receivable for expected credit losses quarterly. Accounts receivables are evaluated based on internally developed credit quality indicators derived from the aging of receivables. Notes receivable are evaluated based on internally developed credit quality indicators derived from Management’s assessment of collection risk. The Company manages note receivable portfolios using a two tiered approach by disaggregating standard notes receivables, which are promissory notes in good standing, from those who have been identified by Management as having an elevated credit risk profile due to a trigger event such as bankruptcy. At the end of each period, the Company sets a reserve for expected credit losses on standard notes receivable based on the Company’s historical loss rate. Notes receivable with an elevated risk profile, which are from customers who have filed bankruptcy, are subject to collections activity or are slow payers that are experiencing financial difficulties, are aggregated and evaluated to determine the total reserve for the class of receivable. The guidance in ASC 326 permits entities to make an accounting policy election not to measure an estimate for credit losses on accrued interest if those entities write-off accrued interest deemed uncollectible in a timely manner. The Company follows an income recognition policy on all interest earned on notes receivable. Under such policy the Company accounts for all notes receivable on a non-accrual basis and defers the recognition of any interest income until receipt of cash payments. This policy was established, recognizing the environment of the long-term care industry, and not because such notes receivable are necessarily impaired. Accordingly, the Company does not record a credit loss adjustment for accrued interest. For the three months ended March 31, 2021 and 2020, the Company recognized $0.4 million and $0.6 million in interest income from notes receivables, respectively. As part of the Company’s adoption of ASC 326, there are additional disclosures required to be made on a class of financing receivable basis. The following table presents the Company’s two tiers of notes receivable further disaggregated by year of origination, as well as write-off activity for the current three month period ended March 31, 2021. Notes Receivable Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Notes Receivable Standard notes receivable $ 485 $ 11,466 $ 8,966 $ 19,117 $ 22,153 $ 1,562 $ 63,749 Elevated risk notes receivable $ — $ — $ 617 $ — $ 723 $ 1,374 $ 2,714 Current-period gross write-offs $ — $ — $ — $ 315 $ 2,494 $ — $ 2,809 Current-period recoveries — — — — — — — Current-period net write-offs $ — $ — $ — $ 315 $ 2,494 $ — $ 2,809 The following table provides information as to the status of payment on the Company’s notes receivable which were past due as of March 31, 2021: Age Analysis of Past-Due Notes Receivable as of March 31, 2021 0-90 Days 91 - 180 Days Greater than 181 Days Total (in thousands) Notes Receivable Standard notes receivable $ 966 $ 620 $ 4,115 $ 5,701 Elevated risk notes receivable — — 2,714 2,714 $ 966 $ 620 $ 6,829 $ 8,415 The following tables provide a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the three months ended March 31, 2021 and 2020: Allowance for doubtful accounts Portfolio Segment: December 31 Write-Offs 1 Bad Debt Expense March 31 (in thousands) Accounts receivable $ 51,052 $ (7,305) $ 2,779 $ 46,526 Notes Receivables Standard notes receivable $ 13,258 $ (9) $ (256) $ 12,993 Elevated risk notes receivable 3,491 (2,800) 892 1,583 $ 16,749 $ (2,809) $ 636 $ 14,576 Total accounts and notes receivable $ 67,801 $ (10,114) $ 3,415 $ 61,102 1. Write-offs are shown net of recoveries. During the three months ended March 31, 2021, the amount of such recoveries was not material. Allowance for doubtful accounts Portfolio Segment: December 31, Cumulative effect of ASC 326 adoption 1 Write-Offs 2 Bad Debt Expense March 31, (in thousands) Accounts receivable $ 39,903 $ 36,709 $ (4,409) $ 2,186 $ 74,389 Notes receivable Standard notes receivable $ 6,667 $ 5,236 $ — $ (249) $ 11,654 Elevated risk notes receivable 5,823 291 — 123 6,237 Total notes receivable $ 12,490 $ 5,527 $ — $ (126) $ 17,891 Total accounts and notes receivable $ 52,393 $ 42,236 $ (4,409) $ 2,060 $ 92,280 1. Represents the pre-tax one-time adjustment to the Company’s 2020 opening retained earnings balance in accordance with the adoption of the CECL accounting guidance. 2. Write-offs are shown net of recoveries. During the three months ended March 31, 2020, the amount of such recoveries was not material. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Note 5—Changes in Accumulated Other Comprehensive Income by Component The Company's accumulated other comprehensive income consists of unrealized gains and losses from the Company’s available-for-sale marketable securities. The following table provides a summary of the changes in accumulated other comprehensive income for the three months ended March 31, 2021 and 2020: Unrealized Gains and Losses on Available-for-Sale Securities 1 Three Months Ended March 31, 2021 2020 (in thousands) Accumulated other comprehensive income — beginning balance $ 5,563 $ 2,919 Other comprehensive loss before reclassifications (1,307) (542) Losses reclassified from other comprehensive income 2 36 9 Net current period other comprehensive loss 3 (1,271) (533) Accumulated other comprehensive income — ending balance $ 4,292 $ 2,386 1. All amounts are net of tax 2. Realized gains and losses were recorded pre-tax under “Investment and other income” in the Consolidated Statements of Comprehensive Income. For the three months ended March 31, 2021 and 2020, the Company recorded less than $0.1 million of realized losses from the sale of available-for-sale securities. Refer to Note 9—Fair Value Measurements herein for further information. 3. For the three months ended March 31, 2021 and 2020, the changes in other comprehensive income were net of a tax benefit of $0.3 million and $0.1 million, respectively. Amounts Reclassified from Accumulated Other Comprehensive Income 2021 2020 (in thousands) Three Months Ended March 31, Losses from the sale of available-for-sale securities $ (48) $ (11) Tax benefit 12 2 Net loss reclassified from accumulated other comprehensive income $ (36) $ (9) |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 6—Property and Equipment Property and equipment are recorded at cost. Depreciation is recorded over the estimated useful life of each class of depreciable asset, and is computed using the straight-line method. 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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 (in thousands) Housekeeping and dietary equipment $ 13,800 $ 13,862 Computer hardware and software 5,874 6,015 Operating lease — right-of-use assets 29,229 26,074 Other 1 1,581 1,581 Total property and equipment, at cost 50,484 47,532 Less accumulated depreciation 22,762 20,971 Total property and equipment, net $ 27,722 $ 26,561 1. Includes furniture and fixtures, leasehold improvements and autos and trucks including auto leases. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 7—Leases The Company recognizes 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 8 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, with the cost associated with variable lease payments 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 Sheets. 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") and is recorded in Other accrued expenses and Lease liability — long-term portion on the Company’s Consolidated Balance Sheets. 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 three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (in thousands) Lease cost Operating lease cost $ 1,439 $ 1,355 Short-term lease cost 167 129 Variable lease cost 72 146 Total lease cost $ 1,678 $ 1,630 Supplemental information required by ASC 842 is presented below for the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (dollar amounts in thousands) Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,583 $ 1,380 Weighted-average remaining lease term — operating leases 5.6 years 5.9 years Weighted-average discount rate — operating leases 4.2 % 4.7 % During the three months ended March 31, 2021 and 2020, the Company’s ROU Assets and Lease Liabilities were each reduced by $0.2 million due to lease cancellations. The following is a schedule by calendar year of future minimum lease payments under operating leases that have remaining terms as of March 31, 2021: Period/Year Operating Leases (in thousands) April 1 to December 31, 2021 $ 4,658 2022 5,219 2023 3,334 2024 1,579 2025 1,311 2026 1,337 Thereafter 2,867 Total minimum lease payments $ 20,305 Less: imputed lease discount 1,895 Present value of lease liabilities $ 18,410 |
Other Intangible Assets
Other Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Other Intangible Assets | Note 8—Other Intangible Assets The Company’s other 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 approximately 10 years. The following table sets forth the estimated amortization expense for intangibles subject to amortization for the remainder of 2021, the following five fiscal years and thereafter: Period/Year Total Amortization Expense (in thousands) April 1 to December 31, 2021 $ 3,124 2022 $ 4,165 2023 $ 3,169 2024 $ 2,035 2025 $ 2,035 2026 $ 2,035 Thereafter $ 583 Amortization expense for both the three months ended March 31, 2021 and 2020 was $1.0 million. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 9—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. 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 three months ended March 31, 2021 and 2020, the Company recorded unrealized losses, net of taxes of $1.3 million and $0.5 million on marketable securities, respectively. For the three months ended March 31, 2021 and 2020, the Company received total proceeds, less the amount of interest received, of $5.0 million and $1.8 million, respectively, from sales of available-for-sale municipal bonds. For both the three months ended March 31, 2021 and 2020, these sales resulted in realized losses of less than $0.1 million, respectively, which were recorded in “Other income – 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 three months ended March 31, 2021 and 2020, the Company's recognized unrealized gains of $1.1 million and unrealized losses of $5.8 million, respectively, related to equity securities still held at the respective reporting dates. The following tables provide fair value measurement information for the Company’s marketable securities and deferred compensation fund investments as of March 31, 2021 and December 31, 2020: As of March 31, 2021 Fair Value Measurement Using: Carrying Amount Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 125,773 $ 125,773 $ — $ 125,773 $ — Deferred compensation fund Money Market 1 $ 2,034 $ 2,034 $ — $ 2,034 $ — Balanced and Lifestyle 11,602 11,602 11,602 — — Large Cap Growth 17,270 17,270 17,270 — — Small Cap Growth 5,576 5,576 5,576 — — Fixed Income 4,804 4,804 4,804 — — International 2,236 2,236 2,236 — — Mid Cap Growth 3,459 3,459 3,459 — — Deferred compensation fund $ 46,981 $ 46,981 $ 44,947 $ 2,034 $ — As of December 31, 2020 Fair Value Measurement Using: Carrying Total Fair Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 125,012 $ 125,012 $ — $ 125,012 $ — Deferred compensation fund Money Market 1 $ 3,006 $ 3,006 $ — $ 3,006 $ — Balanced and Lifestyle 10,815 10,815 10,815 — — Large Cap Growth 17,223 17,223 17,223 — — Small Cap Growth 5,337 5,337 5,337 — — Fixed Income 4,850 4,850 4,850 — — International 2,250 2,250 2,250 — — Mid Cap Growth 3,344 3,344 3,344 — — Deferred compensation fund $ 46,825 $ 46,825 $ 43,819 $ 3,006 $ — 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. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other-than-temporary Impairments (in thousands) March 31, 2021 Type of security: Municipal bonds — available-for-sale $ 120,340 $ 5,676 $ (243) $ 125,773 $ — Total debt securities $ 120,340 $ 5,676 $ (243) $ 125,773 $ — December 31, 2020 Type of security: Municipal bonds — available-for-sale $ 117,970 $ 7,043 $ (1) $ 125,012 $ — Total debt securities $ 117,970 $ 7,043 $ (1) $ 125,012 $ — The following table summarizes the contractual maturities of debt securities held at March 31, 2021 and December 31, 2020, which are classified as marketable securities in the Consolidated Balance Sheets: Municipal Bonds — Available-for-Sale Contractual maturity: March 31, 2021 December 31, 2020 (in thousands) Maturing in one year or less $ 3,361 $ 2,927 Maturing in second year through fifth year 32,720 26,324 Maturing in sixth year through tenth year 50,830 55,366 Maturing after ten years 38,862 40,395 Total debt securities $ 125,773 $ 125,012 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 10—Shared-Based Compensation The components of the Company’s shared-based compensation expense for the three months ended March 31, 2021 and 2020 are as follows: Three Months Ended March 31, 2021 2020 (in thousands) Stock options $ 458 $ 521 Restricted stock and restricted stock units 1,550 1,301 Performance stock units 96 — Employee Stock Purchase Plan 167 151 Total pre-tax share-based compensation expense charged against income 1 $ 2,271 $ 1,973 1. Share-based compensation expense is recorded in cost of services and selling, general and administrative expense in the Company’s Consolidated Statements of Comprehensive Income. At March 31, 2021, the unrecognized compensation cost related to unvested stock options and awards was $24.3 million. The weighted average period over which these awards will vest is approximately 3.4 years. 2020 Omnibus Incentive Plan On May 26, 2020, the Company adopted the 2020 Omnibus Incentive Plan (the "2020 Plan") after approval by the Company's Shareholders at the Annual Meeting of Shareholders. The 2020 Plan provides that current or prospective officers, employees, non-employee directors and advisors can receive share-based awards such as stock options, performance stock units, restricted stock units and other stock awards. The 2020 Plan seeks to encourage profitability and growth of the Company through short-term and long-term incentives that are consistent with the Company's operating objectives. As of March 31, 2021, there were 5.0 million shares of common stock reserved for issuance under the 2020 Plan, of which, 2.0 million are available for future grant. The amount of shares available for issuance under the 2020 Plan will increase when outstanding awards under the Company's Second Amended and Restated 2012 Equity Incentive Plan (the “2012 Plan”) are subsequently forfeited, terminated, lapsed, or satisfied thereunder in cash or property other than shares. No stock award will have a term in excess of 10 years. The Nominating, Compensation and Stock Option Committee of the Board of Directors is responsible for determining the terms of the grants in accordance with the 2020 Plan. 2012 Equity Incentive Plan The 2012 Plan was replaced by the 2020 Plan on May 26, 2020. Accordingly, no new equity awards will be granted under the 2012 Plan. Stock Options A summary of stock options outstanding under the 2020 Plan and the 2012 Plan as of December 31, 2020 and changes during the three months ended March 31, 2021 are as follows: Stock Options Outstanding Number of Shares Weighted Average Exercise Price (in thousands) December 31, 2020 2,098 $ 33.35 Granted 207 $ 28.45 Exercised (60) $ 24.70 Forfeited (1) $ 39.38 Expired (1) $ 26.75 March 31, 2021 2,243 $ 33.13 The weighted average grant-date fair value of stock options granted during the three months ended March 31, 2021 and 2020 was $7.01 and $4.62 per common share, respectively. The total intrinsic value of stock options exercised during the three months ended March 31, 2021 and 2020 was $0.4 million and $0.8 million, respectively. The fair value of stock option awards granted in 2021 and 2020 was estimated on the date of grant using the Black-Scholes option valuation model with the following assumptions: Three Months Ended March 31, 2021 2020 Risk-free interest rate 0.6 % 1.8 % Weighted average expected life 6.6 years 6.6 years Expected volatility 34.7 % 26.5 % Dividend yield 2.9 % 3.2 % The following table summarizes other information about the stock options at March 31, 2021: March 31, 2021 (amounts in thousands, except per share data) Outstanding: Aggregate intrinsic value $ 2,446 Weighted average remaining contractual life 5.5 years Exercisable: Number of options 1,597 Weighted average exercise price $ 33.02 Aggregate intrinsic value $ 1,836 Weighted average remaining contractual life 4.4 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. During the three months ended March 31, 2021, the Company granted 0.3 million restricted stock units with a weighted average grant date fair value of $28.45 per unit. During the three months ended March 31, 2020, the Company granted 0.3 million restricted stock units with a weighted average grant date fair value of $24.43 per unit. During the three months ended March 31, 2021 and 2020, the Company did not grant any restricted stock. A summary of the outstanding restricted stock units and restricted stock as of December 31, 2020 and changes during the three months ended March 31, 2021 is as follows: Restricted Stock Units and Restricted Stock Number Weighted Average Grant Date Fair Value (in thousands) December 31, 2020 561 $ 33.31 Granted 287 $ 29.19 Vested (146) $ 35.35 Forfeited (4) $ 30.70 March 31, 2021 698 $ 31.21 Performance Stock Units On January 4, 2021, the Nominating Compensation and Stock Options Committee of the Board of Directors (the "NCSO") granted 35,000 Performance Stock Units ("PSUs") contingent upon the achievement of certain total shareholder return ("TSR") targets as compared to the TSR of the S&P 400 MidCap Index and the participant's continued employment with the Company for the three year period ending December 31, 2023, the date at which such awards vest. The unrecognized share-based compensation cost of the TSR-based PSU awards at March 31, 2021 is $1.1 million and is expected to be recognized over a weighted-average period of 2.75 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 its common stock to its employees. Pursuant to such authorization, there are 2.1 million shares available for future grant at March 31, 2021. The expense associated with the options granted under the ESPP during the three months ended March 31, 2021 and 2020 was estimated on the date of grant using the Black-Scholes option valuation model with the following assumptions: Three Months Ended March 31, 2021 2020 Risk-free interest rate 0.1% 1.6% Weighted average expected life (years) 1.0 1.0 Expected volatility 61.7% 42.0% Dividend yield 2.9% 3.3% Deferred Compensation Plan The Company offers a Supplemental Executive Retirement Plan (“SERP”) for executives and certain key employees. The SERP allows participants to defer a portion 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 match of a portion of their deferral in the form of the Company’s common stock based on the then-current market value. Under the SERP, the Company is authorized to issue 1.0 million shares of its common stock to its employees. Pursuant to such authorization, the Company has 0.3 million shares available for future grant at March 31, 2021. At the time of issuance, such shares are accounted for at cost as treasury stock. The following table summarizes information about the SERP during the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands) SERP expense 1 $ 186 $ 170 Unrealized gain (loss) recorded in SERP liability account $ 1,301 $ (5,728) 1. Both the SERP match and the deferrals are included in the selling, general and administrative caption in the Consolidated Statements of Comprehensive Income. |
Dividends
Dividends | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Dividends | Note 11—Dividends During the three months ended March 31, 2021, the Company paid regular quarterly cash dividends totaling approximately $15.5 million as follows: Quarter Ended March 31, 2021 Cash dividend paid per common share $ 0.20625 Total cash dividends paid $ 15,472 Record date February 26, 2021 Payment date March 26, 2021 Cash dividends declared for the periods presented were as follows: Three Months Ended March 31, 2021 2020 Cash dividends declared per common share $ 0.20750 $ 0.20250 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12—Income Taxes The Company’s annual effective tax rate is impacted by the tax effects of option exercises and vested awards, which are treated as discrete items in the reporting period in which they occur, and therefore cannot be considered in the calculation of the estimated annual effective tax rate. The impact on the Company’s income tax provision through the three months ended March 31, 2021 for such discrete items was not material. Differences between the effective tax rate and the applicable U.S. federal statutory rate arise primarily from the effect of state and local income taxes, share-based compensation and tax credits available to the Company. The actual 2021 effective tax rate will likely vary from the estimate depending on the actual operating income earned with availability of tax credits and the exercise of stock options and vesting of share-based awards. The Company accounts for income taxes using the asset and liability method, which results in recognizing income tax expense based on the amount of income taxes payable or refundable for the current year. Additionally, the Company regularly evaluates the tax positions taken or expected to be taken resulting from financial statement recognition of certain items. Based on the evaluation, there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The evaluation was performed for the tax years ended December 31, 2017 through 2020 (with regard to U.S. federal income tax returns) and December 31, 2016 through 2020 (with regard to various state and local income tax returns), the tax years which remain subject to examination by major tax jurisdictions as of March 31, 2021. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13—Segment Information 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 customer 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 contracts, 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, debt expense, information technology costs, depreciation, amortization of finite-lived intangible assets, share based compensation costs and other corporate-specific costs, are not fully 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. Three Months Ended March 31, 2021 2020 (in thousands) Revenues Housekeeping $ 215,058 $ 224,293 Dietary 192,693 224,857 Total $ 407,751 $ 449,150 Income before income taxes Housekeeping $ 28,167 $ 23,941 Dietary 20,048 14,329 Corporate and eliminations 1 (15,263) (11,488) Total $ 32,952 $ 26,782 1. Primarily represents corporate office costs 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 other income and interest expense. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 14—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: Three Months Ended March 31, 2021 2020 (in thousands) Weighted average number of common shares outstanding - basic 75,003 74,658 Effect of dilutive securities 1 221 109 Weighted average number of common shares outstanding - diluted 75,224 74,767 1. Certain outstanding equity awards are anti-dilutive and therefore excluded from the calculation of the weighted average number of diluted common shares outstanding. Anti-dilutive outstanding equity awards under share-based compensation plans were as follows: Three Months Ended March 31, 2021 2020 (in thousands) Anti-dilutive 1,694 2,090 |
Other Contingencies
Other Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Contingencies | Note 15—Other Contingencies Line of Credit At March 31, 2021, the Company 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 float 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). As of March 31, 2021 and December 31, 2020, there were no 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 March 31, 2021. The line of credit expires on December 21, 2023. At March 31, 2021, the Company also had outstanding $64.9 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 $64.9 million to $410.1 million at March 31, 2021. The letters of credit expire on January 4, 2022. Besides the $64.9 million letters of credit there are no other restrictions as to the amount which the Company can draw upon the $475 million line of credit. 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. In accordance with FASB ASC 450 – Contingencies (“ASC 450”), as the Company becomes aware of such claims and legal actions, the Company records accruals for any exposures that are probable and estimable. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In accordance with ASC 450, the Company does not accrue for contingent losses that, in its judgment, are considered to be reasonably possible but not probable. In the event the Company determines that adverse outcomes of such claims and legal actions are reasonably possible, Management assesses materiality and provides disclosure regarding the matter, including a range of possible loss when the exposure is estimable, as required by ASC 450. As previously disclosed, the Securities and Exchange Commission (“SEC”) is conducting an investigation into the Company’s earnings per share (“EPS”) calculation practices, which focuses on periods prior to 2018. 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. The Company and the SEC have been engaged in discussions regarding a potential resolution of the investigation. As a result of these discussions, the Company has determined, in accordance with ASC 450, that a liability is reasonably possible and currently estimates a range of possible loss of up to $10.0 million. 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, seeking unspecified monetary damages and other relief on behalf of the plaintiff class. The initial complaint, which was filed by a plaintiff purportedly on behalf of all purchasers of the Company’s 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. On March 17, 2021, the parties reached an agreement in principle to settle the action on a class-wide basis. The parties executed a term sheet outlining the pertinent terms of the proposed settlement, which is subject to confidentiality obligations at this time and remains subject to final documentation and approval by the court. Our insurance carriers have agreed to pay the entirety of the settlement amount upon court approval of the settlement. As of March 31, 2021, the associated contingency was included within the "Other accrued expenses" and "Prepaid expenses and other assets" captions on the Company's Consolidated Balance Sheet. The Company continues to vigorously defend against all active litigation claims asserted. Any of the foregoing matters could result in substantial costs to the Company, divert management’s attention and resources, and adversely affect the Company’s business condition or harm its reputation, regardless of their merit or outcome. 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. Government Regulations |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16—Subsequent Events The Company evaluated all subsequent events through the filing date of this Form 10-Q. There were no events or transactions occurring during this subsequent reporting period which require recognition or additional disclosure in these financial statements. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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 customers 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 customers. In such agreements, the Company is responsible for the day-to-day management of employees located at the customers’ facilities, as well as for the provision of certain supplies. The Company also provides services on the basis of management-only agreements for a limited number of customers. In a management-only agreement, the Company provides management and supervisory services while the customer facility retains payroll responsibility for the non-supervisory staff. The agreements with customers typically provide for a renewable one year service term, cancellable 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 customers’ housekeeping departments, which are principally responsible for the cleaning, disinfecting and sanitizing of resident rooms and common areas of a customer’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 customer facility. Dietary consists of managing the customers’ 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. |
Unaudited Interim Financial Data | The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows. However, in the Company’s opinion, all adjustments which are of a normal recurring nature and are necessary for a fair presentation have been reflected in these consolidated financial statements. The balance sheet shown in this report as of December 31, 2020 has been derived from the audited financial statements for the year ended December 31, 2020. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for any future period. |
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, including the potential future effects of COVID-19. 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. |
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. |
Accounts and Notes Receivable | Accounts and notes receivable consist of Housekeeping and Dietary segment trade receivables from contracts with customers. The Company’s payment terms with customers for services provided are defined within each customer’s service agreement. All accounts receivables are considered short term assets as the Company does not grant payment terms greater than one year. Accounts receivable initially are recorded at the transaction amount, and are recorded after the Company has an unconditional right to payment where only the passage of time is required before payment is received. Each reporting period, the Company evaluates the collectability of outstanding receivable balances and records an allowance for doubtful accounts representing an estimate of future expected credit loss. Additions to the allowance for doubtful accounts are made by recording a charge to bad debt expense reported in costs of services provided. Notes receivable are initially recorded when accounts receivable are transferred into a promissory note and are recorded as an alternative to accounts receivable to memorialize an unqualified promise to pay a specific sum, typically with interest, in accordance with a defined payment schedule. The Company’s payment terms with customers on promissory notes can vary based on several factors and the circumstances of each promissory note, however typically promissory notes mature over a 1 to 3 year period. Similar to accounts receivable, each reporting period the Company evaluates the collectability of outstanding notes receivable balances and records an allowance for doubtful accounts representing an estimate of future expected credit loss. |
Allowance for Doubtful Accounts | The guidance under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification subtopic 326 Credit Losses - Measurement of Credit Losses on Financial Instruments ("ASC 326") became effective and was adopted by the Company prospectively as of January 1, 2020. In adopting ASC 326, 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 receivables. 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 generally are 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. |
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 on a first-in, first-out (FIFO) basis, and reduced as deemed necessary 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 contracts 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 amount of revenue recognized by the Company is based on the consideration to which the Company is entitled in exchange for providing the contracted goods and services. |
Leases | 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, in accordance with FASB Accounting Standards Codification subtopic ASC 842 Leases (“ASC 842”). 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 direct of use of the asset, and the Company obtains substantially all of the economic benefits from the right of use. As of March 31, 2021 and December 31, 2020, the Company was only the lessee of operating lease arrangements. |
Income Taxes | The Company uses the asset and liability method of accounting for income taxes. Under this method, income tax expense or benefits are recognized for the amount of taxes payable or refundable for the current period. The Company accrues for probable tax obligations as required, based on facts and circumstances in various regulatory environments. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases 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. 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. |
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 computed 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, using a Monte Carlo simulation for performance restricted stock units, 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. |
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 annually during the fourth quarter to assess for impairment, or more often if events or circumstances indicate that the carrying value may exceed its estimated fair value. |
Concentrations of Credit Risk | The Company’s financial instruments that are subject to credit risk are cash and cash equivalents, marketable securities, deferred compensation funding and accounts and notes receivable. At March 31, 2021 and December 31, 2020, 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 marketable securities are fixed income investments which are highly liquid and can be readily purchased or sold through established markets. The Company’s customers are concentrated in the healthcare industry and are primarily providers of long-term care. The revenues of many of the Company’s customers 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 customers participate. As a result, the Company may not realize the full effects of such programs until these laws are fully implemented and governmental agencies issue applicable regulations or guidance. |
Segments | 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, debt expense, information technology costs, depreciation, amortization of finite-lived intangible assets, share based compensation costs and other corporate-specific costs, are not fully 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. |
Accounts and Notes Receivable (
Accounts and Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts and Notes Receivable | The Company’s accounts and notes receivable balances consisted of the following as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 (in thousands) Short-term Accounts and notes receivable $ 306,597 $ 315,380 Allowance for doubtful accounts (53,819) (59,906) Total net short-term accounts and notes receivable $ 252,778 $ 255,474 Long-term Notes receivable $ 39,078 $ 42,312 Allowance for doubtful accounts (7,283) (7,895) Total net long-term notes receivable $ 31,795 $ 34,417 Total net accounts and notes receivable $ 284,573 $ 289,891 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Notes Receivable Disaggregated by Vintage Year | The following table presents the Company’s two tiers of notes receivable further disaggregated by year of origination, as well as write-off activity for the current three month period ended March 31, 2021. Notes Receivable Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Notes Receivable Standard notes receivable $ 485 $ 11,466 $ 8,966 $ 19,117 $ 22,153 $ 1,562 $ 63,749 Elevated risk notes receivable $ — $ — $ 617 $ — $ 723 $ 1,374 $ 2,714 Current-period gross write-offs $ — $ — $ — $ 315 $ 2,494 $ — $ 2,809 Current-period recoveries — — — — — — — Current-period net write-offs $ — $ — $ — $ 315 $ 2,494 $ — $ 2,809 |
Age Analysis of Past-Due Note Receivable | The following table provides information as to the status of payment on the Company’s notes receivable which were past due as of March 31, 2021: Age Analysis of Past-Due Notes Receivable as of March 31, 2021 0-90 Days 91 - 180 Days Greater than 181 Days Total (in thousands) Notes Receivable Standard notes receivable $ 966 $ 620 $ 4,115 $ 5,701 Elevated risk notes receivable — — 2,714 2,714 $ 966 $ 620 $ 6,829 $ 8,415 |
Schedule of Cumulative Effect of Initially Applying New Guidance | The following tables provide a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the three months ended March 31, 2021 and 2020: Allowance for doubtful accounts Portfolio Segment: December 31 Write-Offs 1 Bad Debt Expense March 31 (in thousands) Accounts receivable $ 51,052 $ (7,305) $ 2,779 $ 46,526 Notes Receivables Standard notes receivable $ 13,258 $ (9) $ (256) $ 12,993 Elevated risk notes receivable 3,491 (2,800) 892 1,583 $ 16,749 $ (2,809) $ 636 $ 14,576 Total accounts and notes receivable $ 67,801 $ (10,114) $ 3,415 $ 61,102 1. Write-offs are shown net of recoveries. During the three months ended March 31, 2021, the amount of such recoveries was not material. Allowance for doubtful accounts Portfolio Segment: December 31, Cumulative effect of ASC 326 adoption 1 Write-Offs 2 Bad Debt Expense March 31, (in thousands) Accounts receivable $ 39,903 $ 36,709 $ (4,409) $ 2,186 $ 74,389 Notes receivable Standard notes receivable $ 6,667 $ 5,236 $ — $ (249) $ 11,654 Elevated risk notes receivable 5,823 291 — 123 6,237 Total notes receivable $ 12,490 $ 5,527 $ — $ (126) $ 17,891 Total accounts and notes receivable $ 52,393 $ 42,236 $ (4,409) $ 2,060 $ 92,280 1. Represents the pre-tax one-time adjustment to the Company’s 2020 opening retained earnings balance in accordance with the adoption of the CECL accounting guidance. 2. Write-offs are shown net of recoveries. During the three months ended March 31, 2020, the amount of such recoveries was not material. |
Accounts Receivable, Allowance for Doubtful Accounts | The following tables provide a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the three months ended March 31, 2021 and 2020: Allowance for doubtful accounts Portfolio Segment: December 31 Write-Offs 1 Bad Debt Expense March 31 (in thousands) Accounts receivable $ 51,052 $ (7,305) $ 2,779 $ 46,526 Notes Receivables Standard notes receivable $ 13,258 $ (9) $ (256) $ 12,993 Elevated risk notes receivable 3,491 (2,800) 892 1,583 $ 16,749 $ (2,809) $ 636 $ 14,576 Total accounts and notes receivable $ 67,801 $ (10,114) $ 3,415 $ 61,102 1. Write-offs are shown net of recoveries. During the three months ended March 31, 2021, the amount of such recoveries was not material. Allowance for doubtful accounts Portfolio Segment: December 31, Cumulative effect of ASC 326 adoption 1 Write-Offs 2 Bad Debt Expense March 31, (in thousands) Accounts receivable $ 39,903 $ 36,709 $ (4,409) $ 2,186 $ 74,389 Notes receivable Standard notes receivable $ 6,667 $ 5,236 $ — $ (249) $ 11,654 Elevated risk notes receivable 5,823 291 — 123 6,237 Total notes receivable $ 12,490 $ 5,527 $ — $ (126) $ 17,891 Total accounts and notes receivable $ 52,393 $ 42,236 $ (4,409) $ 2,060 $ 92,280 1. Represents the pre-tax one-time adjustment to the Company’s 2020 opening retained earnings balance in accordance with the adoption of the CECL accounting guidance. 2. Write-offs are shown net of recoveries. During the three months ended March 31, 2020, the amount of such recoveries was not material. |
Allowance for Doubtful Accounts | The following tables provide a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the three months ended March 31, 2021 and 2020: Allowance for doubtful accounts Portfolio Segment: December 31 Write-Offs 1 Bad Debt Expense March 31 (in thousands) Accounts receivable $ 51,052 $ (7,305) $ 2,779 $ 46,526 Notes Receivables Standard notes receivable $ 13,258 $ (9) $ (256) $ 12,993 Elevated risk notes receivable 3,491 (2,800) 892 1,583 $ 16,749 $ (2,809) $ 636 $ 14,576 Total accounts and notes receivable $ 67,801 $ (10,114) $ 3,415 $ 61,102 1. Write-offs are shown net of recoveries. During the three months ended March 31, 2021, the amount of such recoveries was not material. Allowance for doubtful accounts Portfolio Segment: December 31, Cumulative effect of ASC 326 adoption 1 Write-Offs 2 Bad Debt Expense March 31, (in thousands) Accounts receivable $ 39,903 $ 36,709 $ (4,409) $ 2,186 $ 74,389 Notes receivable Standard notes receivable $ 6,667 $ 5,236 $ — $ (249) $ 11,654 Elevated risk notes receivable 5,823 291 — 123 6,237 Total notes receivable $ 12,490 $ 5,527 $ — $ (126) $ 17,891 Total accounts and notes receivable $ 52,393 $ 42,236 $ (4,409) $ 2,060 $ 92,280 1. Represents the pre-tax one-time adjustment to the Company’s 2020 opening retained earnings balance in accordance with the adoption of the CECL accounting guidance. 2. Write-offs are shown net of recoveries. During the three months ended March 31, 2020, the amount of such recoveries was not material. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income by Component (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table provides a summary of the changes in accumulated other comprehensive income for the three months ended March 31, 2021 and 2020: Unrealized Gains and Losses on Available-for-Sale Securities 1 Three Months Ended March 31, 2021 2020 (in thousands) Accumulated other comprehensive income — beginning balance $ 5,563 $ 2,919 Other comprehensive loss before reclassifications (1,307) (542) Losses reclassified from other comprehensive income 2 36 9 Net current period other comprehensive loss 3 (1,271) (533) Accumulated other comprehensive income — ending balance $ 4,292 $ 2,386 1. All amounts are net of tax 2. Realized gains and losses were recorded pre-tax under “Investment and other income” in the Consolidated Statements of Comprehensive Income. For the three months ended March 31, 2021 and 2020, the Company recorded less than $0.1 million of realized losses from the sale of available-for-sale securities. Refer to Note 9—Fair Value Measurements herein for further information. 3. For the three months ended March 31, 2021 and 2020, the changes in other comprehensive income were net of a tax benefit of $0.3 million and $0.1 million, respectively. |
Reclassification out of Accumulated Other Comprehensive Income | Amounts Reclassified from Accumulated Other Comprehensive Income 2021 2020 (in thousands) Three Months Ended March 31, Losses from the sale of available-for-sale securities $ (48) $ (11) Tax benefit 12 2 Net loss reclassified from accumulated other comprehensive income $ (36) $ (9) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The following table sets forth the amounts of property and equipment by each class of depreciable asset as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 (in thousands) Housekeeping and dietary equipment $ 13,800 $ 13,862 Computer hardware and software 5,874 6,015 Operating lease — right-of-use assets 29,229 26,074 Other 1 1,581 1,581 Total property and equipment, at cost 50,484 47,532 Less accumulated depreciation 22,762 20,971 Total property and equipment, net $ 27,722 $ 26,561 1. Includes furniture and fixtures, leasehold improvements and autos and trucks including auto leases. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | Components of lease expense required by ASC 842 are presented below for the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (in thousands) Lease cost Operating lease cost $ 1,439 $ 1,355 Short-term lease cost 167 129 Variable lease cost 72 146 Total lease cost $ 1,678 $ 1,630 |
Supplemental Information Required by ASC 842 | Supplemental information required by ASC 842 is presented below for the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (dollar amounts in thousands) Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,583 $ 1,380 Weighted-average remaining lease term — operating leases 5.6 years 5.9 years Weighted-average discount rate — operating leases 4.2 % 4.7 % |
Schedule of Future Minimum Lease Payments | The following is a schedule by calendar year of future minimum lease payments under operating leases that have remaining terms as of March 31, 2021: Period/Year Operating Leases (in thousands) April 1 to December 31, 2021 $ 4,658 2022 5,219 2023 3,334 2024 1,579 2025 1,311 2026 1,337 Thereafter 2,867 Total minimum lease payments $ 20,305 Less: imputed lease discount 1,895 Present value of lease liabilities $ 18,410 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [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 remainder of 2021, the following five fiscal years and thereafter: Period/Year Total Amortization Expense (in thousands) April 1 to December 31, 2021 $ 3,124 2022 $ 4,165 2023 $ 3,169 2024 $ 2,035 2025 $ 2,035 2026 $ 2,035 Thereafter $ 583 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | The following tables provide fair value measurement information for the Company’s marketable securities and deferred compensation fund investments as of March 31, 2021 and December 31, 2020: As of March 31, 2021 Fair Value Measurement Using: Carrying Amount Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 125,773 $ 125,773 $ — $ 125,773 $ — Deferred compensation fund Money Market 1 $ 2,034 $ 2,034 $ — $ 2,034 $ — Balanced and Lifestyle 11,602 11,602 11,602 — — Large Cap Growth 17,270 17,270 17,270 — — Small Cap Growth 5,576 5,576 5,576 — — Fixed Income 4,804 4,804 4,804 — — International 2,236 2,236 2,236 — — Mid Cap Growth 3,459 3,459 3,459 — — Deferred compensation fund $ 46,981 $ 46,981 $ 44,947 $ 2,034 $ — As of December 31, 2020 Fair Value Measurement Using: Carrying Total Fair Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Financial Assets: Marketable securities Municipal bonds — available-for-sale $ 125,012 $ 125,012 $ — $ 125,012 $ — Deferred compensation fund Money Market 1 $ 3,006 $ 3,006 $ — $ 3,006 $ — Balanced and Lifestyle 10,815 10,815 10,815 — — Large Cap Growth 17,223 17,223 17,223 — — Small Cap Growth 5,337 5,337 5,337 — — Fixed Income 4,850 4,850 4,850 — — International 2,250 2,250 2,250 — — Mid Cap Growth 3,344 3,344 3,344 — — Deferred compensation fund $ 46,825 $ 46,825 $ 43,819 $ 3,006 $ — 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. |
Schedule of Marketable Debt Securities | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Other-than-temporary Impairments (in thousands) March 31, 2021 Type of security: Municipal bonds — available-for-sale $ 120,340 $ 5,676 $ (243) $ 125,773 $ — Total debt securities $ 120,340 $ 5,676 $ (243) $ 125,773 $ — December 31, 2020 Type of security: Municipal bonds — available-for-sale $ 117,970 $ 7,043 $ (1) $ 125,012 $ — Total debt securities $ 117,970 $ 7,043 $ (1) $ 125,012 $ — |
Schedule of Contractual Maturities of Available for Sale Investments | The following table summarizes the contractual maturities of debt securities held at March 31, 2021 and December 31, 2020, which are classified as marketable securities in the Consolidated Balance Sheets: Municipal Bonds — Available-for-Sale Contractual maturity: March 31, 2021 December 31, 2020 (in thousands) Maturing in one year or less $ 3,361 $ 2,927 Maturing in second year through fifth year 32,720 26,324 Maturing in sixth year through tenth year 50,830 55,366 Maturing after ten years 38,862 40,395 Total debt securities $ 125,773 $ 125,012 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | The components of the Company’s shared-based compensation expense for the three months ended March 31, 2021 and 2020 are as follows: Three Months Ended March 31, 2021 2020 (in thousands) Stock options $ 458 $ 521 Restricted stock and restricted stock units 1,550 1,301 Performance stock units 96 — Employee Stock Purchase Plan 167 151 Total pre-tax share-based compensation expense charged against income 1 $ 2,271 $ 1,973 |
Summary of Other Information of Stock Option Plans | A summary of stock options outstanding under the 2020 Plan and the 2012 Plan as of December 31, 2020 and changes during the three months ended March 31, 2021 are as follows: Stock Options Outstanding Number of Shares Weighted Average Exercise Price (in thousands) December 31, 2020 2,098 $ 33.35 Granted 207 $ 28.45 Exercised (60) $ 24.70 Forfeited (1) $ 39.38 Expired (1) $ 26.75 March 31, 2021 2,243 $ 33.13 |
Assumption For Fair Value of Options Granted | The fair value of stock option awards granted in 2021 and 2020 was estimated on the date of grant using the Black-Scholes option valuation model with the following assumptions: Three Months Ended March 31, 2021 2020 Risk-free interest rate 0.6 % 1.8 % Weighted average expected life 6.6 years 6.6 years Expected volatility 34.7 % 26.5 % Dividend yield 2.9 % 3.2 % |
Summarized Information of Stock Options Outstanding | The following table summarizes other information about the stock options at March 31, 2021: March 31, 2021 (amounts in thousands, except per share data) Outstanding: Aggregate intrinsic value $ 2,446 Weighted average remaining contractual life 5.5 years Exercisable: Number of options 1,597 Weighted average exercise price $ 33.02 Aggregate intrinsic value $ 1,836 Weighted average remaining contractual life 4.4 years |
Summary of Outstanding Restricted Stock Units and Restricted Stock | A summary of the outstanding restricted stock units and restricted stock as of December 31, 2020 and changes during the three months ended March 31, 2021 is as follows: Restricted Stock Units and Restricted Stock Number Weighted Average Grant Date Fair Value (in thousands) December 31, 2020 561 $ 33.31 Granted 287 $ 29.19 Vested (146) $ 35.35 Forfeited (4) $ 30.70 March 31, 2021 698 $ 31.21 |
Schedule of Options Granted Estimated Expense Valuation Assumptions | The expense associated with the options granted under the ESPP during the three months ended March 31, 2021 and 2020 was estimated on the date of grant using the Black-Scholes option valuation model with the following assumptions: Three Months Ended March 31, 2021 2020 Risk-free interest rate 0.1% 1.6% Weighted average expected life (years) 1.0 1.0 Expected volatility 61.7% 42.0% Dividend yield 2.9% 3.3% |
Summary of ESPP Annual Offerings | The following table summarizes information about the SERP during the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands) SERP expense 1 $ 186 $ 170 Unrealized gain (loss) recorded in SERP liability account $ 1,301 $ (5,728) 1. Both the SERP match and the deferrals are included in the selling, general and administrative caption in the Consolidated Statements of Comprehensive Income. |
Dividends (Tables)
Dividends (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Dividends Payable | During the three months ended March 31, 2021, the Company paid regular quarterly cash dividends totaling approximately $15.5 million as follows: Quarter Ended March 31, 2021 Cash dividend paid per common share $ 0.20625 Total cash dividends paid $ 15,472 Record date February 26, 2021 Payment date March 26, 2021 |
Schedule of Dividends Payable on Outstanding Weighted Average Number of Basic Common Shares | Cash dividends declared for the periods presented were as follows: Three Months Ended March 31, 2021 2020 Cash dividends declared per common share $ 0.20750 $ 0.20250 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Information of Reportable Segments | Three Months Ended March 31, 2021 2020 (in thousands) Revenues Housekeeping $ 215,058 $ 224,293 Dietary 192,693 224,857 Total $ 407,751 $ 449,150 Income before income taxes Housekeeping $ 28,167 $ 23,941 Dietary 20,048 14,329 Corporate and eliminations 1 (15,263) (11,488) Total $ 32,952 $ 26,782 1. Primarily represents corporate office costs 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 other income and interest expense. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The table below reconciles the weighted-average basic and diluted common shares outstanding: Three Months Ended March 31, 2021 2020 (in thousands) Weighted average number of common shares outstanding - basic 75,003 74,658 Effect of dilutive securities 1 221 109 Weighted average number of common shares outstanding - diluted 75,224 74,767 |
Schedule Anti-dilutive Outstanding Equity Awards Under Share Based Compensation Plans | Anti-dilutive outstanding equity awards under share-based compensation plans were as follows: Three Months Ended March 31, 2021 2020 (in thousands) Anti-dilutive 1,694 2,090 |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)financial_institutionsegment | Mar. 31, 2020USD ($) | Dec. 31, 2020financial_institution | |
Schedule of Accounting Policies [Line Items] | |||
Renewal term | 1 year | ||
Number of reportable segments | segment | 2 | ||
Amortization period of inventories and supplies | 24 months | ||
Goodwill and intangible asset impairment | $ | $ 0 | $ 0 | |
Number of financial institutions holding cash and cash equivalents and marketable securities | financial_institution | 1 | 1 | |
Minimum | |||
Schedule of Accounting Policies [Line Items] | |||
Cancellation notice period | 30 days | ||
Initial period preceding cancellation notice | 60 days | ||
Typical maturity | 1 year | ||
Maximum | |||
Schedule of Accounting Policies [Line Items] | |||
Cancellation notice period | 90 days | ||
Initial period preceding cancellation notice | 120 days | ||
Typical maturity | 3 years |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 407,751 | $ 449,150 | |
Renewal term | 1 year | ||
Description of timing | The Company’s contracts with customers typically provide for an initial term of one year, 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 March 31, 2021, the Company had $374.6 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 34.3% 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 consist 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. | ||
Transferred at point in time | |||
Disaggregation of Revenue [Line Items] | |||
Contract liabilities | $ 400 | $ 100 | |
Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Contract liabilities | $ 100 | $ 2,300 | |
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 | ||
Housekeeping | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 215,058 | $ 224,293 | |
Percent of revenue | 52.70% | 49.90% | |
Dietary | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 192,693 | $ 224,857 | |
Percent of revenue | 47.30% | 50.10% |
Revenue - Transaction Price All
Revenue - Transaction Price Allocated to Remaining Performance Obligations (Details) $ in Millions | Mar. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 374.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation percent | 34.30% |
Revenue, remaining performance obligation period | 12 months |
Accounts and Notes Receivable -
Accounts and Notes Receivable - Schedule of Accounts and Notes Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Short-term | ||
Accounts and notes receivable | $ 306,597 | $ 315,380 |
Allowance for doubtful accounts | (53,819) | (59,906) |
Total net short-term accounts and notes receivable | 252,778 | 255,474 |
Long-term | ||
Notes receivable | 39,078 | 42,312 |
Allowance for doubtful accounts | (7,283) | (7,895) |
Total net long-term notes receivable | 31,795 | 34,417 |
Total net accounts and notes receivable | $ 284,573 | $ 289,891 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Receivables [Abstract] | ||
Interest income | $ 0.4 | $ 0.6 |
Allowance for Doubtful Accoun_4
Allowance for Doubtful Accounts - Notes Receivable Disaggregated by Vintage Year (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Current-period gross write-offs | ||
2021 | $ 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 315 | |
2017 | 2,494 | |
Prior | 0 | |
Total | 2,809 | $ 0 |
Current-period recoveries | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Total | 0 | |
Current-period net write-offs | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 315 | |
2017 | 2,494 | |
Prior | 0 | |
Total | 2,809 | |
Standard notes receivable | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 485 | |
2020 | 11,466 | |
2019 | 8,966 | |
2018 | 19,117 | |
2017 | 22,153 | |
Prior | 1,562 | |
Total | 63,749 | |
Current-period gross write-offs | ||
Total | 9 | 0 |
Elevated risk notes receivable | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 617 | |
2018 | 0 | |
2017 | 723 | |
Prior | 1,374 | |
Total | 2,714 | |
Current-period gross write-offs | ||
Total | $ 2,800 | $ 0 |
Allowance for Doubtful Accoun_5
Allowance for Doubtful Accounts - Age Analysis of Past-Due Note Receivable (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | $ 8,415 |
0-90 Days | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 966 |
91 - 180 Days | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 620 |
Greater than 181 Days | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 6,829 |
Standard notes receivable | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 5,701 |
Standard notes receivable | 0-90 Days | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 966 |
Standard notes receivable | 91 - 180 Days | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 620 |
Standard notes receivable | Greater than 181 Days | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 4,115 |
Elevated risk notes receivable | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 2,714 |
Elevated risk notes receivable | 0-90 Days | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 0 |
Elevated risk notes receivable | 91 - 180 Days | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | 0 |
Elevated risk notes receivable | Greater than 181 Days | |
Financing Receivable, Past Due [Line Items] | |
Notes Receivable | $ 2,714 |
Allowance for Doubtful Accoun_6
Allowance for Doubtful Accounts - Allowance for doubtful accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts receivable | ||
Accounts receivable, Allowance for doubtful accounts, beginning balance | $ 51,052 | $ 39,903 |
Write-Offs | (7,305) | (4,409) |
Bad Debt Expense | 2,779 | 2,186 |
Accounts receivable, Allowance for doubtful accounts, ending balance | 46,526 | 74,389 |
Notes receivable | ||
Notes receivable, Allowance for doubtful accounts, beginning balance | 14,576 | 17,891 |
Write-Offs | (2,809) | 0 |
Bad Debt Expense | 636 | (126) |
Notes receivable, Allowance for doubtful accounts, ending balance | 16,749 | 12,490 |
Allowance for doubtful accounts, beginning balance | 67,801 | 52,393 |
Write-Offs | (10,114) | (4,409) |
Bad Debt Expense | 3,415 | 2,060 |
Allowance for doubtful accounts, ending balance | 61,102 | 92,280 |
Accounts receivable recovered after write off | 0 | 0 |
Cumulative effect of ASC 326 adoption | ||
Accounts receivable | ||
Accounts receivable, Allowance for doubtful accounts, beginning balance | 36,709 | |
Notes receivable | ||
Notes receivable, Allowance for doubtful accounts, ending balance | 5,527 | |
Allowance for doubtful accounts, beginning balance | 42,236 | |
Standard notes receivable | ||
Notes receivable | ||
Notes receivable, Allowance for doubtful accounts, beginning balance | 12,993 | 11,654 |
Write-Offs | (9) | 0 |
Bad Debt Expense | (256) | (249) |
Notes receivable, Allowance for doubtful accounts, ending balance | 13,258 | 6,667 |
Standard notes receivable | Cumulative effect of ASC 326 adoption | ||
Notes receivable | ||
Notes receivable, Allowance for doubtful accounts, ending balance | 5,236 | |
Elevated risk notes receivable | ||
Notes receivable | ||
Notes receivable, Allowance for doubtful accounts, beginning balance | 1,583 | 6,237 |
Write-Offs | (2,800) | 0 |
Bad Debt Expense | 892 | 123 |
Notes receivable, Allowance for doubtful accounts, ending balance | $ 3,491 | 5,823 |
Elevated risk notes receivable | Cumulative effect of ASC 326 adoption | ||
Notes receivable | ||
Notes receivable, Allowance for doubtful accounts, ending balance | $ 291 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income by Component - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated other comprehensive income | ||
Beginning balance | $ 480,461 | $ 460,305 |
Other comprehensive loss before reclassifications | (1,307) | (542) |
Losses reclassified from other comprehensive income | 36 | 9 |
Net current period other comprehensive loss | (1,271) | (533) |
Ending balance | 493,102 | 438,179 |
Realized loss (less than) | 100 | 100 |
Changes in other comprehensive (loss) income, tax expense (benefit) | 300 | 100 |
Accumulated Other Comprehensive Income, net of taxes | ||
Accumulated other comprehensive income | ||
Beginning balance | 5,563 | 2,919 |
Ending balance | $ 4,292 | $ 2,386 |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income by Component - Reclassification Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Tax benefit | $ (8,299) | $ (6,592) |
Net income | 24,653 | 20,190 |
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] | ||
Losses from the sale of available-for-sale securities | (48) | (11) |
Tax benefit | 12 | 2 |
Net income | $ (36) | $ (9) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Operating lease — right-of-use assets | $ 29,229 | $ 26,074 | |
Total property and equipment, at cost | 50,484 | 47,532 | |
Less accumulated depreciation | 22,762 | 20,971 | |
Total property and equipment, net | 27,722 | 26,561 | |
Depreciation | 2,600 | $ 2,500 | |
ROU Assets depreciation | 1,500 | $ 1,400 | |
Housekeeping and dietary equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 13,800 | 13,862 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 5,874 | 6,015 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,581 | $ 1,581 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Termination option | 1 year | |
Reduction in ROU Assets due to cancellation | $ 0.2 | $ 0.2 |
Reduction in Lease Liability due to cancellation | $ 0.2 | $ 0.2 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Extension option | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 8 years | |
Extension option | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 1,439 | $ 1,355 |
Short-term lease cost | 167 | 129 |
Variable lease cost | 72 | 146 |
Total lease cost | 1,678 | 1,630 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 1,583 | $ 1,380 |
Weighted-average remaining lease term — operating leases | 5 years 7 months 6 days | 5 years 10 months 24 days |
Weighted-average discount rate — operating leases | 4.20% | 4.70% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
April 1 to December 31, 2021 | $ 4,658 |
2022 | 5,219 |
2023 | 3,334 |
2024 | 1,579 |
2025 | 1,311 |
2026 | 1,337 |
Thereafter | 2,867 |
Total minimum lease payments | 20,305 |
Less: imputed lease discount | 1,895 |
Present value of lease liabilities | $ 18,410 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 1 | $ 1 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years |
Other Intangible Assets - Estim
Other Intangible Assets - Estimated Amortization Expense For Intangibles Subject To Amortization (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
April 1 to December 31, 2021 | $ 3,124 |
2022 | 4,165 |
2023 | 3,169 |
2024 | 2,035 |
2025 | 2,035 |
2026 | 2,035 |
Thereafter | $ 583 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Unrealized loss on available-for-sale marketable securities, net of taxes | $ 1,271 | $ 533 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Proceeds from available for sale municipal bonds | 4,995 | 1,757 |
Realized loss (less than) | 100 | 100 |
Unrealized gains related to equity securities | 1,100 | |
Unrealized losses related to equity securities | (5,800) | |
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 | 5,000 | 1,800 |
Realized loss (less than) | $ 100 | $ 100 |
Fair Value Measurements - Marke
Fair Value Measurements - Marketable Securities and Deferred Compensation Fund Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 125,773 | $ 125,012 |
Deferred compensation fund | 46,981 | 46,825 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 44,947 | 43,819 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 2,034 | 3,006 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 0 | 0 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 46,981 | 46,825 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation fund | 46,981 | 46,825 |
Municipal bonds — available-for-sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 125,773 | 125,012 |
Municipal bonds — available-for-sale | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal bonds — available-for-sale | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 125,773 | 125,012 |
Municipal bonds — available-for-sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Municipal bonds — available-for-sale | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 125,773 | 125,012 |
Municipal bonds — available-for-sale | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 125,773 | 125,012 |
Money Market | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Money Market | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,034 | 3,006 |
Money Market | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Money Market | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,034 | 3,006 |
Money Market | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,034 | 3,006 |
Balanced and Lifestyle | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 11,602 | 10,815 |
Balanced and Lifestyle | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Balanced and Lifestyle | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Balanced and Lifestyle | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 11,602 | 10,815 |
Balanced and Lifestyle | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 11,602 | 10,815 |
Large Cap Growth | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 17,270 | 17,223 |
Large Cap Growth | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Large Cap Growth | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Large Cap Growth | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 17,270 | 17,223 |
Large Cap Growth | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 17,270 | 17,223 |
Small Cap Growth | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,576 | 5,337 |
Small Cap Growth | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Small Cap Growth | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Small Cap Growth | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,576 | 5,337 |
Small Cap Growth | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 5,576 | 5,337 |
Fixed Income | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,804 | 4,850 |
Fixed Income | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fixed Income | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fixed Income | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,804 | 4,850 |
Fixed Income | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,804 | 4,850 |
International | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,236 | 2,250 |
International | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
International | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
International | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,236 | 2,250 |
International | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,236 | 2,250 |
Mid Cap Growth | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,459 | 3,344 |
Mid Cap Growth | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Mid Cap Growth | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Mid Cap Growth | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,459 | 3,344 |
Mid Cap Growth | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 3,459 | $ 3,344 |
Fair Value Measurements - Mar_2
Fair Value Measurements - Marketable Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Amortized Cost | $ 120,340 | $ 117,970 |
Gross Unrealized Gains | 5,676 | 7,043 |
Gross Unrealized Losses | (243) | (1) |
Estimated Fair Value | 125,773 | 125,012 |
Other-than-temporary Impairments | 0 | 0 |
Municipal bonds — available-for-sale | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Amortized Cost | 120,340 | 117,970 |
Gross Unrealized Gains | 5,676 | 7,043 |
Gross Unrealized Losses | (243) | (1) |
Estimated Fair Value | 125,773 | 125,012 |
Other-than-temporary Impairments | $ 0 | $ 0 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Maturing in one year or less | $ 3,361 | $ 2,927 |
Maturing in second year through fifth year | 32,720 | 26,324 |
Maturing in sixth year through tenth year | 50,830 | 55,366 |
Maturing after ten years | 38,862 | 40,395 |
Total debt securities | $ 125,773 | $ 125,012 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | $ 2,271 | $ 1,973 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | 458 | 521 |
Restricted stock and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | 1,550 | 1,301 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total pre-tax stock-based compensation expense charged against income | 96 | 0 |
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 | $ 167 | $ 151 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 04, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
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) | $ 7.01 | $ 4.62 | |
Aggregate intrinsic value of stock options exercised | $ 0.4 | $ 0.8 | |
SERP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance (in shares) | 1,000,000 | ||
Remaining shares authorized for issuance (in shares) | 300,000 | ||
2020 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future issuance (in shares) | 5,000,000 | ||
Shares available for future grant (in shares) | 2,000,000 | ||
Maximum term of grants | 10 years | ||
Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 24.3 | ||
Period of expense of unrecognized compensation cost, years | 3 years 4 months 24 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted (in shares) | 300,000 | 300,000 | |
Weighted average grant date fair value of restricted stock granted (in dollars per share) | $ 28.45 | $ 24.43 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock granted (in shares) | 0 | 0 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average weekly hours of work | 20 hours | ||
Requisite service period for plan participation eligibility | 2 years | ||
Stock options authorized to issue to employees (in shares) | 4,100,000 | ||
Shares authorized for issuance (in shares) | 2,100,000 | ||
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1.1 | ||
Period of expense of unrecognized compensation cost, years | 2 years 9 months | ||
Restricted stock granted (in shares) | 35,000 | ||
Options vested and exercisable, period | 3 years |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Options Outstanding (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number of Shares | |
Beginning of period (in shares) | shares | 2,098 |
Granted (in shares) | shares | 207 |
Exercised (in shares) | shares | (60) |
Forfeited (in shares) | shares | (1) |
Expired (in shares) | shares | (1) |
End of period (in shares) | shares | 2,243 |
Weighted Average Exercise Price | |
Beginning of period (in dollars per share) | $ / shares | $ 33.35 |
Granted (in dollars per share) | $ / shares | 28.45 |
Exercised (in dollars per share) | $ / shares | 24.70 |
Forfeited (in dollars per share) | $ / shares | 39.38 |
Expired (in dollars per share) | $ / shares | 26.75 |
End of period (in dollars per share) | $ / shares | $ 33.13 |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions for Fair Value of Options Granted (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 0.60% | 1.80% |
Weighted average expected life | 6 years 7 months 6 days | 6 years 7 months 6 days |
Expected volatility | 34.70% | 26.50% |
Dividend yield | 2.90% | 3.20% |
Share-Based Compensation - Su_3
Share-Based Compensation - Summarized Information About Stock Awards (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Outstanding: | |
Aggregate intrinsic value | $ 2,446 |
Weighted average remaining contractual life | 5 years 6 months |
Exercisable: | |
Number of options (in shares) | shares | 1,597 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 33.02 |
Aggregate intrinsic value | $ 1,836 |
Weighted average remaining contractual life | 4 years 4 months 24 days |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Restricted Stock Units and Restricted Stock (Details) - Restricted stock and restricted stock units shares in Thousands | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Number | |
Beginning balance (in shares) | shares | 561 |
Granted (in shares) | shares | 287 |
Vested (in shares) | shares | (146) |
Forfeited (in shares) | shares | (4) |
Ending balance (in shares) | shares | 698 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 33.31 |
Granted (in dollars per share) | $ / shares | 29.19 |
Vested (in dollars per share) | $ / shares | 35.35 |
Forfeited (in dollars per share) | $ / shares | 30.70 |
Ending balance (in dollars per share) | $ / shares | $ 31.21 |
Share-Based Compensation - As_2
Share-Based Compensation - Assumptions For Employee Stock Purchase Plan (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.60% | 1.80% |
Weighted average expected life (years) | 6 years 7 months 6 days | 6 years 7 months 6 days |
Expected volatility | 34.70% | 26.50% |
Dividend yield | 2.90% | 3.20% |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.10% | 1.60% |
Weighted average expected life (years) | 1 year | 1 year |
Expected volatility | 61.70% | 42.00% |
Dividend yield | 2.90% | 3.30% |
Share-Based Compensation - Defe
Share-Based Compensation - Deferred Compensation Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
SERP expense | $ 2,271 | $ 1,973 |
SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
SERP expense | 186 | 170 |
Unrealized gain (loss) recorded in SERP liability account | $ 1,301 | $ (5,728) |
Dividends - Schedule of Dividen
Dividends - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Cash dividend paid per common share (in dollars per share) | $ 0.20625 | $ 0.20 |
Total cash dividends paid | $ 15,472 | $ 15,033 |
Dividends - Cash Dividends per
Dividends - Cash Dividends per Common Share (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Cash dividends declared per common share (in dollars per share) | $ 0.20750 | $ 0.20250 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Mar. 31, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 0 |
Segment Information - Schedule
Segment Information - Schedule of Information of Reportable Segments (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 407,751 | $ 449,150 |
Income before income taxes | 32,952 | 26,782 |
Corporate and eliminations | ||
Segment Reporting Information [Line Items] | ||
Income before income taxes | (15,263) | (11,488) |
Housekeeping | ||
Segment Reporting Information [Line Items] | ||
Revenues | 215,058 | 224,293 |
Housekeeping | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Income before income taxes | 28,167 | 23,941 |
Dietary | ||
Segment Reporting Information [Line Items] | ||
Revenues | 192,693 | 224,857 |
Dietary | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Income before income taxes | $ 20,048 | $ 14,329 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted average number of common shares outstanding - basic (in shares) | 75,003 | 74,658 |
Effect of dilutive securities (in shares) | 221 | 109 |
Weighted average number of common shares outstanding - diluted (in shares) | 75,224 | 74,767 |
Earnings Per Common Share - S_2
Earnings Per Common Share - Schedule Anti-dilutive Outstanding Equity Awards Under Share Based Compensation Plans (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive (in shares) | 1,694 | 2,090 |
Other Contingencies (Details)
Other Contingencies (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Short-term Debt [Line Items] | |
Bank line of credit | $ 475,000,000 |
Long-term Line of Credit | 0 |
Reduction of bank line of credit | 64,900,000 |
Amount available under line of credit | 410,100,000 |
Estimated range of possible loss (of up) | 10,000,000 |
Standby Letter Of Credit | |
Short-term Debt [Line Items] | |
Irrevocable standby letter of credit, outstanding | $ 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% |