v3.25.2
Segments
 6 Months Ended
Jun. 30, 2025
Segments [Abstract]  
Segments

3.    Segments

Our segments include the VITAS segment and the Roto-Rooter segment, which comprise the structure used by our President and Chief Executive Officer, who has been determined to be our Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. Relative contributions of each segment to service revenues and sales for the second quarter of 2025 were 64% and 36% compared to the second quarter of 2024 were 63% and 37%. Relative contributions of each segment to service revenues and sales for the first six months of 2025 were 63% and 37% compared to the first six months of 2024 were 61% and 39%. The vast majority of our service revenues and sales from continuing operations are generated from business within the United States. Service revenues and sales by business segment are shown in Note 2.

The reportable segments have been defined along service lines, which is consistent with the way the businesses are managed. In determining reportable segments, the RRSC and RRC operating units of the Roto-Rooter segment have been aggregated on the basis of possessing similar operating and economic characteristics. The characteristics of these operating segments and the basis for aggregation are reviewed annually.

We report corporate administrative expenses and unallocated investing and financing income and expense not directly related to either segment as “Corporate”. Corporate administrative expense includes the stewardship, accounting and reporting, legal, tax and other costs of operating a publicly held corporation. Corporate investing and financing income and expenses include the costs and income associated with corporate debt and investment arrangements.

Our CODM evaluates the segments’ operating performance based mainly on income/(loss) from operations. For each segment, the CODM compares segment income/(loss) from operations in the annual budgeting and monthly forecasting process to actual results. The CODM considers variances on a monthly basis for evaluating performance of each segment and making decisions about allocating resources to each segment.


‎

Segment data for the three months ending June 30, 2025 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

396,201 

$

222,597 

$

618,798 

$

-

$

618,798 

Cost of services provided and goods sold

(excluding depreciation)

Wages

241,805 

75,704 

317,509 

-

317,509 

Patient care expense

41,008 

-

41,008 

-

41,008 

Other expenses

37,831 

37,757 

75,588 

-

75,588 

Total cost of services provided and goods sold

320,644 

113,461 

434,105 

-

434,105 

Selling, general and administrative expense

Wages

16,757 

21,018 

37,775 

2,748 

40,523 

Advertising

-

18,943 

18,943 

-

18,943 

Stock compensation

-

-

-

10,069 

10,069 

Other expenses

8,328 

20,575 

28,903 

1,885 

30,788 

Total selling, general and administrative expense

25,085 

60,536 

85,621 

14,702 

100,323 

Depreciation

5,314 

8,363 

13,677 

12 

13,689 

Amortization

26 

2,545 

2,571 

-

2,571 

Other operating expense/(income)

55 

(29)

26 

-

26 

Total costs and expenses

351,124 

184,876 

536,000 

14,714 

550,714 

Income/(loss) from operations

45,077 

37,721 

82,798 

(14,714)

68,084 

Interest expense

(47)

(129)

(176)

(267)

(443)

Intercompany interest income/(expense)

5,454 

3,970 

9,424 

(9,424)

-

Other income - net

61 

23 

84 

3,390 

3,474 

Income/(expense) before income taxes

50,545 

41,585 

92,130 

(21,015)

71,115 

Income taxes

(12,326)

(9,671)

(21,997)

3,375 

(18,622)

Net income/(loss)

$

38,219 

$

31,914 

$

70,133 

$

(17,640)

$

52,493 

Additions to long-lived assets

$

7,060 

$

8,745 

$

15,805 

$

5 

$

15,810 


‎

Segment data for the three months ending June 30, 2024 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

374,558 

$

221,322 

$

595,880 

$

-

$

595,880 

Cost of services provided and goods sold

(excluding depreciation)

Wages

212,811 

73,057 

285,868 

-

285,868 

Patient care expense

36,625 

-

36,625 

-

36,625 

Other expenses

36,081 

31,176 

67,257 

-

67,257 

Total cost of services provided and good sold

285,517 

104,233 

389,750 

-

389,750 

Selling, general and administrative expense

Wages

17,369 

20,002 

37,371 

4,367 

41,738 

Advertising

-

17,327 

17,327 

-

17,327 

Stock compensation

-

-

-

12,463 

12,463 

Other expenses

6,924 

20,022 

26,946 

3,781 

30,727 

Total selling, general and administrative expense

24,293 

57,351 

81,644 

20,611 

102,255 

Depreciation

5,058 

8,096 

13,154 

13 

13,167 

Amortization

26 

2,520 

2,546 

-

2,546 

Other operating expense/(income)

56 

(19)

37 

-

37 

Total costs and expenses

314,950 

172,181 

487,131 

20,624 

507,755 

Income/(loss) from operations

59,608 

49,141 

108,749 

(20,624)

88,125 

Interest expense

(46)

(118)

(164)

(265)

(429)

Intercompany interest income/(expense)

4,982 

3,540 

8,522 

(8,522)

-

Other income - net

46 

24 

70 

6,062 

6,132 

Income/(expense) before income taxes

64,590 

52,587 

117,177 

(23,349)

93,828 

Income taxes

(15,338)

(12,070)

(27,408)

4,467 

(22,941)

Net income/(loss)

$

49,252 

$

40,517 

$

89,769 

$

(18,882)

$

70,887 

Additions to long-lived assets

$

90,714 

$

5,552 

$

96,266 

$

164 

$

96,430 


‎

Segment data for the first six months ending June 30, 2025 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

803,600 

$

462,141 

$

1,265,741 

$

-

$

1,265,741 

Cost of services provided and goods sold

(excluding depreciation)

Wages

476,978 

153,176 

630,154 

-

630,154 

Patient care expense

81,387 

-

81,387 

-

81,387 

Other expenses

75,086 

78,008 

153,094 

-

153,094 

Total cost of services provided and goods sold

633,451 

231,184 

864,635 

-

864,635 

Selling, general and administrative expense

Wages

34,284 

42,204 

76,488 

7,479 

83,967 

Advertising

-

37,112 

37,112 

-

37,112 

Stock compensation

-

-

-

21,817 

21,817 

Other expenses

17,340 

43,868 

61,208 

1,806 

63,014 

Total selling, general and administrative expense

51,624 

123,184 

174,808 

31,102 

205,910 

Depreciation

10,509 

16,601 

27,110 

24 

27,134 

Amortization

52 

5,091 

5,143 

-

5,143 

Other operating expense/(income)

119 

(42)

77 

-

77 

Total costs and expenses

695,755 

376,018 

1,071,773 

31,126 

1,102,899 

Income/(loss) from operations

107,845 

86,123 

193,968 

(31,126)

162,842 

Interest expense

(95)

(261)

(356)

(416)

(772)

Intercompany interest income/(expense)

10,750 

7,900 

18,650 

(18,650)

-

Other income - net

110 

32 

142 

4,577 

4,719 

Income/(expense) before income taxes

118,610 

93,794 

212,404 

(45,615)

166,789 

Income taxes

(30,361)

(21,936)

(52,297)

9,758 

(42,539)

Net income/(loss)

$

88,249 

$

71,858 

$

160,107 

$

(35,857)

$

124,250 

Additions to long-lived assets

$

11,384 

$

18,186 

$

29,570 

$

5 

$

29,575 


‎

Segment data for the first six months ending June 30, 2024 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

728,564 

$

456,549 

$

1,185,113 

$

-

$

1,185,113 

Cost of services provided and goods sold

(excluding depreciation)

Wages

416,235 

151,591 

567,826 

-

567,826 

Patient care expense

71,699 

-

71,699 

-

71,699 

Other expenses

69,477 

65,875 

135,352 

-

135,352 

Total cost of services provided and goods sold

557,411 

217,466 

774,877 

-

774,877 

Selling, general and administrative expense

Wages

33,898 

41,077 

74,975 

8,307 

83,282 

Advertising

-

36,851 

36,851 

-

36,851 

Stock compensation

-

-

-

30,609 

30,609 

Other expenses

14,187 

40,683 

54,870 

12,516 

67,386 

Total selling, general and administrative expense

48,085 

118,611 

166,696 

51,432 

218,128 

Depreciation

10,225 

16,204 

26,429 

25 

26,454 

Amortization

52 

5,015 

5,067 

-

5,067 

Other operating expense

63 

66 

129 

-

129 

Total costs and expenses

615,836 

357,362 

973,198 

51,457 

1,024,655 

Income/(loss) from operations

112,728 

99,187 

211,915 

(51,457)

160,458 

Interest expense

(92)

(235)

(327)

(527)

(854)

Intercompany interest income/(expense)

10,176 

6,982 

17,158 

(17,158)

-

Other income - net

75 

47 

122 

18,587 

18,709 

Income/(expense) before income taxes

122,887 

105,981 

228,868 

(50,555)

178,313 

Income taxes

(29,666)

(24,610)

(54,276)

11,867 

(42,409)

Net income/(loss)

$

93,221 

$

81,371 

$

174,592 

$

(38,688)

$

135,904 

Additions to long-lived assets

$

96,569 

$

19,022 

$

115,591 

$

171 

$

115,762 

Identifiable assets by segment are as follows (in thousands)::

June 30,

December 31,

2025

2024

VITAS

$

781,617 

$

839,568 

Roto-Rooter

543,950 

529,076 

Reportable segments

1,325,567 

1,368,644 

Corporate

392,280 

299,931 

Chemed consolidated

$

1,717,847 

$

1,668,575