CHEMED CORP Leases Disclosure
Chemed and each of its operating subsidiaries are service companies. As such, real estate leases comprise the largest lease obligation (and conversely, right of use asset) in our lease portfolio. VITAS has leased office space, as well as space for IPUs and/or contract beds within hospitals. Roto-Rooter has leased office space.
The components of balance sheet information related to leases were as follows:
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| December 31, | ||||
| 2025 |
| 2024 | ||
Assets |
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Operating lease assets | $ | 131,151 |
| $ | 127,323 |
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Liabilities |
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Current operating leases |
| 40,892 |
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| 42,306 |
Noncurrent operating leases |
| 102,867 |
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| 98,538 |
Total operating lease liabilities | $ | 143,759 |
| $ | 140,844 |
The components of lease expense were as follows:
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| December 31, | |||||||
| 2025 |
| 2024 |
| 2023 | |||
Lease Expense (a) |
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Operating lease expense | $ | 68,226 |
| $ | 64,228 |
| $ | 59,769 |
Sublease income |
| (123) |
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| (311) |
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| (93) |
Net lease expense | $ | 68,103 |
| $ | 63,917 |
| $ | 59,676 |
(a)Includes short-term leases and variable lease costs, which are immaterial. Included in both cost of services provided and goods sold and selling, general and administrative expenses.
The components of cash flow information related to leases were as follows:
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| December 31, | ||||
| 2025 |
| 2024 | ||
Cash paid for amounts included in the measurement of lease liabilities |
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Operating cash flows from leases | $ | 55,598 |
| $ | 51,762 |
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Leased assets obtained in exchange for new operating lease liabilities | $ | 52,669 |
| $ | 49,883 |
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Weighted Average Remaining Lease Term |
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Operating leases |
| 4.82 | yrs | |
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Weighted Average Discount Rate |
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Operating leases |
| 4.14 | % | |
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Maturity of Operating Lease Liabilities (in thousands) |
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2026 | $ | 48,403 |
2027 |
| 33,662 |
2028 |
| 26,848 |
2029 |
| 20,655 |
2030 |
| 12,535 |
Thereafter |
| 17,832 |
Total lease payments | $ | 159,935 |
Less: interest |
| (16,176) |
Total liability recognized on the balance sheet | $ | 143,759 |
For leases commencing prior to 2019, minimum rental payments exclude payments to landlords for real estate taxes and common area maintenance. Operating lease payments include $8.4 million related to extended lease terms that are reasonably certain of being exercised and exclude $1.1 million of lease payments for leases signed but not yet commenced.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 26, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.