Segments and Nature of the Business

12 Months Ended

Dec. 31, 2015

Segments and Nature of the Business [Abstract]

Segments and Nature Of The Business

5.Segments and Nature of the Business 

Our segments include the VITAS segment and the Roto-Rooter segment.  Relative contributions of each segment to service revenues and sales were 72% and 28%, respectively, in 2015 and 73% and 27%, respectively, in 2014.  The vast majority of our service revenues and sales from continuing operations are generated from business within the United States.

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.  Accordingly, the reportable segments are defined as follows:

· The VITAS segment provides hospice services for patients with terminal illnesses.  This type of care is aimed at making the terminally ill patient’s end of life as comfortable and pain-free as possible.  Hospice care is available to patients who have been initially certified or re-certified as terminally ill (i.e., a prognosis of six months or less) by their attending physician, if any, and the hospice physician.  VITAS offers all levels of hospice care in a given market, including routine home care, inpatient care and continuous care.  Over 90% of VITAS’ revenues are derived through the Medicare and Medicaid reimbursement programs.

· The Roto-Rooter segment provides repair and maintenance services to residential and commercial accounts using the Roto-Rooter registered service marks. Such services include plumbing, drain cleaning and water restoration. They are delivered through company-owned and operated territories, independent contractor-operated territories and franchised locations. This segment also manufactures and sells products and equipment used to provide such services.

· 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.  

Segment data are set forth below (in thousands):

		For the Years Ended December 31,
		2015		2014		2013
Revenues by Type of Service
VITAS
Routine homecare	$	865,145	$	810,413	$	791,735
Continuous care		150,802		152,206		155,409
General inpatient		99,439		102,876		104,968
Medicare cap		165		(1,290)		(6,999)
Total segment		1,115,551		1,064,205		1,045,113
Roto-Rooter
Sewer and drain cleaning		142,562		141,078		141,283
Plumbing repair and maintenance		188,065		174,993		168,942
Independent contractors		37,966		36,496		33,030
Water restoration		38,163		18,480		3,042
Other products and services		21,081		21,030		21,919
Total segment		427,837		392,077		368,216
Total service revenues and sales	$	1,543,388	$	1,456,282	$	1,413,329
Aftertax Segment Earnings/(Loss)
VITAS	$	93,346	$	86,185	$	76,144
Roto-Rooter		48,573		42,075		29,243
Total		141,919		128,260		105,387
Corporate		(31,645)		(28,943)		(28,160)
Net income	$	110,274	$	99,317	$	77,227
Interest Income
VITAS	$	7,740	$	6,111	$	5,038
Roto-Rooter		3,425		2,931		2,096
Total		11,165		9,042		7,134
Corporate		-		10		56
Intercompany eliminations		(10,884)		(9,081)		(6,343)
Total interest income	$	281	$	(29)	$	847
Interest Expense
VITAS	$	200	$	207	$	182
Roto-Rooter		348		363		322
Total		548		570		504
Corporate		3,097		7,616		14,531
Total interest expense	$	3,645	$	8,186	$	15,035
Income Tax Provision
VITAS	$	56,675	$	53,278	$	46,910
Roto-Rooter		29,630		25,808		17,560
Total		86,305		79,086		64,470
Corporate		(16,453)		(15,649)		(17,868)
Total income tax provision	$	69,852	$	63,437	$	46,602
Identifiable Assets
VITAS	$	523,717	$	546,031	$	518,316
Roto-Rooter		255,192		251,407		241,679
Total		778,909		797,438		759,995
Corporate		73,416		62,494		133,706
Total identifiable assets	$	852,325	$	859,932	$	893,701

		For the Years Ended December 31,
		2015		2014		2013
Additions to Long-Lived Assets
VITAS	$	23,278	$	21,880	$	16,219
Roto-Rooter		26,476		21,595		15,202
Total		49,754		43,475		31,421
Corporate		995		346		160
Total additions to long-lived assets	$	50,749	$	43,821	$	31,581
Depreciation and Amortization
VITAS	$	19,547	$	19,048	$	19,534
Roto-Rooter		13,360		10,975		9,273
Total		32,907		30,023		28,807
Corporate		592		578		535
Total depreciation and amortization	$	33,499	$	30,601	$	29,342