Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

14.    Leases

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:

	December 31,
	2023		2022
Assets
Operating lease assets	$	126,387	$	135,662
Liabilities
Current operating leases		38,635		38,996
Noncurrent operating leases		100,776		110,513
Total operating lease liabilities	$	139,411	$	149,509

The components of lease expense were as follows:

	December 31,
	2023		2022
Lease Expense (a)
Operating lease expense	$	59,769	$	59,530
Sublease income		(93)		(181)
Net lease expense	$	59,676	$	59,349

(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:

	December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from leases	$	49,777	$	49,571
Leased assets obtained in exchange for new operating lease liabilities	$	37,111	$	57,551

Weighted Average Remaining Lease Term
Operating leases	4.32	yrs
Weighted Average Discount Rate
Operating leases	3.09	%

Maturity of Operating Lease Liabilities (in thousands)
2024	$	44,928
2025		37,248
2026		28,897
2027		16,525
2028		11,285
Thereafter		10,597
Total lease payments	$	149,480
Less: interest		(10,069)
Total liability recognized on the balance sheet	$	139,411

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 $3.8 million related to extended lease terms that are reasonably certain of being exercised and exclude $740,000 of lease payments for leases signed but not yet commenced.