Segments And Nature Of The Business

12 Months Ended

Dec. 31, 2012

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 75% and 25%, respectively, in 2012 and 73% and 27%, respectively, in 2011.  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 typically 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 and sewer, drain and pipe cleaning. 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 for our continuing operations are set forth below (in thousands):

		For the Years Ended December 31,
		2012		2011		2010
Revenues by Type of Service
VITAS
Routine homecare	$	778,776	$	718,658	$	666,562
Continuous care		172,063		158,466		153,050
General inpatient		114,494		110,742		105,588
Medicare cap		1,704		(1,594)		610
Total segment		1,067,037		986,272		925,810
Roto-Rooter
Sewer and drain cleaning		138,500		138,932		135,704
Plumbing repair and maintenance		172,310		177,363		168,625
Independent contractors		28,522		26,711		22,943
HVAC repair and maintenance		1,109		3,410		4,183
Other products and services		22,565		23,282		23,280
Total segment		363,006		369,698		354,735
Total service revenues and sales	$	1,430,043	$	1,355,970	$	1,280,545
Aftertax Segment Earnings/(Loss)
VITAS	$	86,577	$	80,358	$	79,796
Roto-Rooter		30,905		34,879		31,678
Total		117,482		115,237		111,474
Corporate		(28,178)		(29,258)		(29,643)
Net income	$	89,304	$	85,979	$	81,831
Interest Income
VITAS	$	3,883	$	4,293	$	4,852
Roto-Rooter		1,647		2,176		2,661
Total		5,530		6,469		7,513
Corporate		76		91		175
Intercompany eliminations		(4,797)		(6,134)		(7,244)
Total interest income	$	809	$	426	$	444
Interest Expense
VITAS	$	233	$	229	$	131
Roto-Rooter		433		358		233
Total		666		587		364
Corporate		14,057		13,301		11,595
Total interest expense	$	14,723	$	13,888	$	11,959
Income Tax Provision
VITAS	$	53,092	$	48,835	$	48,601
Roto-Rooter		18,770		21,353		19,547
Total		71,862		70,188		68,148
Corporate		(15,347)		(15,611)		(16,148)
Total income tax provision	$	56,515	$	54,577	$	52,000
Identifiable Assets
VITAS	$	519,555	$	504,677	$	531,247
Roto-Rooter		224,735		212,234		205,601
Total		744,290		716,911		736,848
Corporate		115,336		78,994		93,313
Total identifiable assets	$	859,626	$	795,905	$	830,161
Additions to Long-Lived Assets
VITAS	$	24,735	$	24,298	$	17,492
Roto-Rooter		16,132		9,426		18,035
Total		40,867		33,724		35,527
Corporate		285		72		18
Total additions to long-lived assets	$	41,152	$	33,796	$	35,545

		For the Years Ended December 31,
		2012		2011		2010
Depreciation and Amortization
VITAS	$	19,043	$	18,480	$	18,900
Roto-Rooter		9,029		8,729		8,289
Total		28,072		27,209		27,189
Corporate		2,449		2,290		1,854
Total depreciation and amortization	$	30,521	$	29,499	$	29,043