v3.26.3
Segments
 9 Months Ended
Sep. 30, 2026
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 third quarter of 2026 were 66% and 34%, respectively, compared to the third quarter of 2025 which were 65% and 35%, respectively. Relative contributions of each segment to service revenues and sales for the first nine months of 2026 were 65% and 35%, respectively, compared to the first nine months of 2025 which were 64% and 36%, respectively. 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 ended September 30, 2026 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

457,403 

$

233,537 

$

690,940 

$

-

$

690,940 

Cost of services provided and goods sold

(excluding depreciation)

Wages

257,425 

78,411 

335,836 

-

335,836 

Patient care expense

48,205 

-

48,205 

-

48,205 

Other expenses

36,363 

37,574 

73,937 

-

73,937 

Total cost of services provided and goods sold

341,993 

115,985 

457,978 

-

457,978 

Selling, general and administrative expense

Wages

16,710 

23,102 

39,812 

5,090 

44,902 

Advertising

-

23,885 

23,885 

-

23,885 

Stock compensation

-

-

-

9,135 

9,135 

Other expenses

6,390 

24,046 

30,436 

3,111 

33,547 

Total selling, general and administrative expense

23,100 

71,033 

94,133 

17,336 

111,469 

Depreciation

5,791 

8,624 

14,415 

12 

14,427 

Amortization

25 

2,949 

2,974 

-

2,974 

Other operating expense

7,352 

88 

7,440 

230 

7,670 

Total costs and expenses

378,261 

198,679 

576,940 

17,578 

594,518 

Income/(loss) from operations

79,142 

34,858 

114,000 

(17,578)

96,422 

Interest expense

(54)

(145)

(199)

(1,898)

(2,097)

Intercompany interest income/(expense)

6,766 

4,574 

11,340 

(11,340)

-

Other income - net

124 

5 

129 

2,254 

2,383 

Income/(expense) before income taxes

85,978 

39,292 

125,270 

(28,562)

96,708 

Income taxes

(20,270)

(9,152)

(29,422)

4,362 

(25,060)

Net income/(loss)

$

65,708 

$

30,140 

$

95,848 

$

(24,200)

$

71,648 

Additions to long-lived assets

$

7,987 

$

73,703 

$

81,690 

$

6 

$

81,696 


‎

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

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

407,741 

$

217,159 

$

624,900 

$

-

$

624,900 

Cost of services provided and goods sold

(excluding depreciation)

Wages

239,357 

72,992 

312,349 

-

312,349 

Patient care expense

43,269 

-

43,269 

-

43,269 

Other expenses

35,389 

34,136 

69,525 

-

69,525 

Total cost of services provided and goods sold

318,015 

107,128 

425,143 

-

425,143 

Selling, general and administrative expense

Wages

16,904 

21,122 

38,026 

6,440 

44,466 

Advertising

-

19,542 

19,542 

-

19,542 

Stock compensation

-

-

-

5,851 

5,851 

Other expenses

8,332 

20,008 

28,340 

7,576 

35,916 

Total selling, general and administrative expense

25,236 

60,672 

85,908 

19,867 

105,775 

Depreciation

5,354 

8,298 

13,652 

12 

13,664 

Amortization

26 

2,544 

2,570 

-

2,570 

Other operating expense/(income)

3,036 

(38)

2,998 

-

2,998 

Total costs and expenses

351,667 

178,604 

530,271 

19,879 

550,150 

Income/(loss) from operations

56,074 

38,555 

94,629 

(19,879)

74,750 

Interest expense

(56)

(132)

(188)

(269)

(457)

Intercompany interest income/(expense)

5,685 

4,030 

9,715 

(9,715)

-

Other income - net

61 

25 

86 

9,165 

9,251 

Income/(expense) before income taxes

61,764 

42,478 

104,242 

(20,698)

83,544 

Income taxes

(14,993)

(10,407)

(25,400)

6,093 

(19,307)

Net income/(loss)

$

46,771 

$

32,071 

$

78,842 

$

(14,605)

$

64,237 

Additions to long-lived assets

$

10,850 

$

6,639 

$

17,489 

$

10 

$

17,499 


‎

Segment data for the first nine months ended September 30, 2026 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

1,320,762 

$

700,942 

$

2,021,704 

$

-

$

2,021,704 

Cost of services provided and goods sold

(excluding depreciation)

Wages

755,955 

238,744 

994,699 

-

994,699 

Patient care expense

141,158 

-

141,158 

-

141,158 

Other expenses

108,037 

107,613 

215,650 

-

215,650 

Total cost of services provided and goods sold

1,005,150 

346,357 

1,351,507 

-

1,351,507 

Selling, general and administrative expense

Wages

51,905 

68,647 

120,552 

15,094 

135,646 

Advertising

-

67,718 

67,718 

-

67,718 

Stock compensation

-

-

-

31,189 

31,189 

Other expenses

23,409 

69,970 

93,379 

13,061 

106,440 

Total selling, general and administrative expense

75,314 

206,335 

281,649 

59,344 

340,993 

Depreciation

17,484 

25,477 

42,961 

36 

42,997 

Amortization

78 

8,185 

8,263 

-

8,263 

Other operating expense

7,432 

78 

7,510 

230 

7,740 

Total costs and expenses

1,105,458 

586,432 

1,691,890 

59,610 

1,751,500 

Income/(loss) from operations

215,304 

114,510 

329,814 

(59,610)

270,204 

Interest expense

(158)

(466)

(624)

(3,774)

(4,398)

Intercompany interest income/(expense)

19,484 

13,661 

33,145 

(33,145)

-

Other income - net

285 

31 

316 

10,755 

11,071 

Income/(expense) before income taxes

234,915 

127,736 

362,651 

(85,774)

276,877 

Income taxes

(56,088)

(29,899)

(85,987)

14,763 

(71,224)

Net income/(loss)

$

178,827 

$

97,837 

$

276,664 

$

(71,011)

$

205,653 

Additions to long-lived assets

$

21,309 

$

126,760 

$

148,069 

$

31 

$

148,100 


‎

Segment data for the first nine months ended September 30, 2025 are as follows (in thousands):

Reportable

Chemed

VITAS

Roto-Rooter

Segments

Corporate

Consolidated

Service revenues and sales

$

1,211,341 

$

679,300 

$

1,890,641 

$

-

$

1,890,641 

Cost of services provided and goods sold

(excluding depreciation)

Wages

716,335 

226,168 

942,503 

-

942,503 

Patient care expense

124,656 

-

124,656 

-

124,656 

Other expenses

110,475 

112,144 

222,619 

-

222,619 

Total cost of services provided and goods sold

951,466 

338,312 

1,289,778 

-

1,289,778 

Selling, general and administrative expense

Wages

51,188 

63,326 

114,514 

13,919 

128,433 

Advertising

-

56,654 

56,654 

-

56,654 

Stock compensation

-

-

-

27,668 

27,668 

Other expenses

25,673 

63,876 

89,549 

9,381 

98,930 

Total selling, general and administrative expense

76,861 

183,856 

260,717 

50,968 

311,685 

Depreciation

15,863 

24,899 

40,762 

36 

40,798 

Amortization

78 

7,635 

7,713 

-

7,713 

Other operating expense/(income)

3,155 

(80)

3,075 

-

3,075 

Total costs and expenses

1,047,423 

554,622 

1,602,045 

51,004 

1,653,049 

Income/(loss) from operations

163,918 

124,678 

288,596 

(51,004)

237,592 

Interest expense

(150)

(394)

(544)

(685)

(1,229)

Intercompany interest income/(expense)

16,436 

11,930 

28,366 

(28,366)

-

Other income - net

170 

58 

228 

13,742 

13,970 

Income/(expense) before income taxes

180,374 

136,272 

316,646 

(66,313)

250,333 

Income taxes

(45,353)

(32,344)

(77,697)

15,851 

(61,846)

Net income/(loss)

$

135,021 

$

103,928 

$

238,949 

$

(50,462)

$

188,487 

Additions to long-lived assets

$

22,234 

$

24,825 

$

47,059 

$

15 

$

47,074 

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

September 30,

December 31,

2026

2025

VITAS

$

882,094 

$

784,927 

Roto-Rooter

652,773 

528,587 

Reportable segments

1,534,867 

1,313,514 

Corporate

183,572 

224,675 

Chemed consolidated

$

1,718,439 

$

1,538,189