CHEMED CORP Segments Disclosure
In November 2023, the FASB issued Accounting Standards Update “ASU 2023-07 – Improvements to Reportable Segment Disclosures”. The guidance provides enhanced disclosures about significant segment expenses. The purpose of the amendment is to provide investors with a better understanding of an entity’s overall performance and assess potential future cash flows. The ASU does not change how an entity identifies its operating segments. We adopted ASU 2023-07 for the year ending December 31, 2025, and applied a retrospective approach to all periods presented in our consolidated financial statements.
Our segments include the , 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 were 64% and 36% in 2025, 63% and 37% in 2024, and 58% and 42% in 2023. 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 are set forth below (in thousands):
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| Reportable |
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| Chemed | ||
2025 (in thousands) |
| VITAS |
| Roto-Rooter |
| Segments |
| Corporate |
| Consolidated | |||||
Service revenues and sales |
| $ | 1,630,101 |
| $ | 899,877 |
| $ | 2,529,978 |
| $ | - |
| $ | 2,529,978 |
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Cost of services provided and goods sold |
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(excluding depreciation) |
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Wages |
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| 946,833 |
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| 306,619 |
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| 1,253,452 |
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| - |
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| 1,253,452 |
Patient care expense |
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| 166,680 |
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| - |
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| 166,680 |
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| - |
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| 166,680 |
Other expenses |
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| 144,191 |
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| 142,471 |
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| 286,662 |
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| - |
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| 286,662 |
Total cost of services provided and goods sold |
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| 1,257,704 |
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| 449,090 |
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| 1,706,794 |
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| - |
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| 1,706,794 |
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Selling, general and administrative expense |
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Wages |
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| 66,845 |
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| 85,858 |
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| 152,703 |
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| 17,355 |
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| 170,058 |
Advertising |
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| - |
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| 77,138 |
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| 77,138 |
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| - |
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| 77,138 |
Stock compensation |
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| - |
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| - |
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| - |
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| 38,296 |
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| 38,296 |
Other expenses |
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| 33,830 |
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| 84,051 |
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| 117,881 |
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| 13,815 |
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| 131,696 |
Total selling, general and administrative expense |
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| 100,675 |
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| 247,047 |
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| 347,722 |
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| 69,466 |
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| 417,188 |
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Depreciation |
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| 21,308 |
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| 33,200 |
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| 54,508 |
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| 49 |
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| 54,557 |
Amortization |
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| 104 |
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| 10,180 |
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| 10,284 |
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| - |
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| 10,284 |
Other operating expense/(income) |
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| 3,375 |
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| (466) |
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| 2,909 |
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| - |
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| 2,909 |
Total costs and expenses |
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| 1,383,166 |
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| 739,051 |
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| 2,122,217 |
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| 69,515 |
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| 2,191,732 |
Income/(loss) from operations |
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| 246,935 |
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| 160,826 |
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| 407,761 |
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| (69,515) |
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| 338,246 |
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Interest expense |
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| (185) |
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| (611) |
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| (796) |
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| (954) |
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| (1,750) |
Intercompany interest income/(expense) |
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| 22,455 |
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| 16,245 |
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| 38,700 |
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| (38,700) |
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| - |
Other income - net |
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| 327 |
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| 70 |
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| 397 |
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| 18,885 |
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| 19,282 |
Income/(expense) before income taxes |
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| 269,532 |
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| 176,530 |
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| 446,062 |
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| (90,284) |
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| 355,778 |
Income taxes |
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| (65,523) |
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| (41,037) |
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| (106,560) |
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| 16,020 |
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| (90,540) |
Net income/(loss) |
| $ | 204,009 |
| $ | 135,493 |
| $ | 339,502 |
| $ | (74,264) |
| $ | 265,238 |
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Identifiable assets |
| $ | 784,927 |
| $ | 528,587 |
| $ | 1,313,514 |
| $ | 224,675 |
| $ | 1,538,189 |
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Additions to long-lived assets |
| $ | 32,190 |
| $ | 31,602 |
| $ | 63,792 |
| $ | 35 |
| $ | 63,827 |
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| Reportable |
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| Chemed | ||
2024 (in thousands) |
| VITAS |
| Roto-Rooter |
| Segments |
| Corporate |
| Consolidated | |||||
Service revenues and sales |
| $ | 1,530,978 |
| $ | 900,309 |
| $ | 2,431,287 |
| $ | - |
| $ | 2,431,287 |
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Cost of services provided and goods sold |
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(excluding depreciation) |
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Wages |
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| 860,025 |
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| 303,458 |
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| 1,163,483 |
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| - |
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| 1,163,483 |
Patient care expense |
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| 148,165 |
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| - |
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| 148,165 |
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| - |
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| 148,165 |
Other expenses |
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| 138,613 |
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| 126,678 |
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| 265,291 |
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| - |
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| 265,291 |
Total cost of services provided and goods sold |
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| 1,146,803 |
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| 430,136 |
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| 1,576,939 |
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| - |
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| 1,576,939 |
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Selling, general and administrative expense |
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Wages |
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| 69,139 |
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| 81,519 |
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| 150,658 |
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| 17,132 |
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| 167,790 |
Advertising |
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| - |
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| 73,147 |
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| 73,147 |
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| - |
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| 73,147 |
Stock compensation |
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| - |
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| - |
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| - |
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| 52,185 |
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| 52,185 |
Other expenses |
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| 30,425 |
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| 78,186 |
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| 108,611 |
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| 22,627 |
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| 131,238 |
Total selling, general and administrative expense |
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| 99,564 |
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| 232,852 |
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| 332,416 |
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| 91,944 |
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| 424,360 |
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Depreciation |
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| 20,362 |
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| 32,452 |
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| 52,814 |
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| 50 |
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| 52,864 |
Amortization |
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| 105 |
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| 10,080 |
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| 10,185 |
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| - |
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| 10,185 |
Other operating expense |
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| 178 |
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| 268 |
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| 446 |
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| - |
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| 446 |
Total costs and expenses |
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| 1,267,012 |
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| 705,788 |
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| 1,972,800 |
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| 91,994 |
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| 2,064,794 |
Income/(loss) from operations |
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| 263,966 |
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| 194,521 |
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| 458,487 |
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| (91,994) |
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| 366,493 |
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Interest expense |
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| (171) |
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| (431) |
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| (602) |
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| (1,178) |
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| (1,780) |
Intercompany interest income/(expense) |
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| 20,211 |
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| 14,397 |
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| 34,608 |
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| (34,608) |
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| - |
Other income - net |
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| 227 |
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| 69 |
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| 296 |
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| 34,456 |
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| 34,752 |
Income/(expense) before income taxes |
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| 284,233 |
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| 208,556 |
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| 492,789 |
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| (93,324) |
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| 399,465 |
Income taxes |
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| (67,414) |
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| (48,510) |
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| (115,924) |
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| 18,458 |
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| (97,466) |
Net income/(loss) |
| $ | 216,819 |
| $ | 160,046 |
| $ | 376,865 |
| $ | (74,866) |
| $ | 301,999 |
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Identifiable assets |
| $ | 839,568 |
| $ | 529,076 |
| $ | 1,368,644 |
| $ | 299,931 |
| $ | 1,668,575 |
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Additions to long-lived assets |
| $ | 108,629 |
| $ | 38,274 |
| $ | 146,903 |
| $ | 275 |
| $ | 147,178 |
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| Reportable |
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| Chemed | ||
2023 (in thousands) |
| VITAS |
| Roto-Rooter |
| Segments |
| Corporate |
| Consolidated | |||||
Service revenues and sales |
| $ | 1,315,065 |
| $ | 949,352 |
| $ | 2,264,417 |
| $ | - |
| $ | 2,264,417 |
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Cost of services provided and goods sold |
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(excluding depreciation) |
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Wages |
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| 766,264 |
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| 307,160 |
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| 1,073,424 |
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| - |
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| 1,073,424 |
Patient care expense |
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| 126,259 |
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| - |
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| 126,259 |
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| - |
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| 126,259 |
Other expenses |
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| 125,100 |
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| 140,819 |
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| 265,919 |
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| - |
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| 265,919 |
Total cost of services provided and goods sold |
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| 1,017,623 |
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| 447,979 |
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| 1,465,602 |
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| - |
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| 1,465,602 |
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Selling, general and administrative expense |
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Wages |
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| 62,503 |
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| 83,070 |
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| 145,573 |
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| 17,993 |
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| 163,566 |
Advertising |
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| - |
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| 67,709 |
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| 67,709 |
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| - |
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| 67,709 |
Stock compensation |
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| - |
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| - |
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| - |
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| 41,771 |
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| 41,771 |
Other expenses |
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| 30,793 |
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| 80,808 |
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| 111,601 |
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| 10,473 |
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| 122,074 |
Total selling, general and administrative expense |
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| 93,296 |
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| 231,587 |
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| 324,883 |
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| 70,237 |
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| 395,120 |
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Depreciation |
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| 19,959 |
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| 30,790 |
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| 50,749 |
|
| 53 |
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| 50,802 |
Amortization |
|
| 104 |
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| 9,959 |
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| 10,063 |
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| - |
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| 10,063 |
Other operating (income)/expense |
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| (12) |
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| 2,273 |
|
| 2,261 |
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| - |
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| 2,261 |
Total costs and expenses |
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| 1,130,970 |
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| 722,588 |
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| 1,853,558 |
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| 70,290 |
|
| 1,923,848 |
Income/(loss) from operations |
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| 184,095 |
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| 226,764 |
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| 410,859 |
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| (70,290) |
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| 340,569 |
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Interest expense |
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| (180) |
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| (442) |
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| (622) |
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| (2,486) |
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| (3,108) |
Intercompany interest income/(expense) |
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| 19,400 |
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| 11,918 |
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| 31,318 |
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| (31,318) |
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| - |
Other income - net |
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| 1,309 |
|
| 126 |
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| 1,435 |
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| 11,471 |
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| 12,906 |
Income/(expense) before income taxes |
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| 204,624 |
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| 238,366 |
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| 442,990 |
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| (92,623) |
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| 350,367 |
Income taxes |
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| (46,115) |
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| (50,125) |
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| (96,240) |
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| 18,382 |
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| (77,858) |
Net income/(loss) |
| $ | 158,509 |
| $ | 188,241 |
| $ | 346,750 |
| $ | (74,241) |
| $ | 272,509 |
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Identifiable assets |
| $ | 778,950 |
| $ | 523,450 |
| $ | 1,302,400 |
| $ | 365,695 |
| $ | 1,668,095 |
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Additions to long-lived assets |
| $ | 17,450 |
| $ | 43,514 |
| $ | 60,964 |
| $ | 274 |
| $ | 61,238 |
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.