Chemed Corp (CHE) operates two segments: VITAS (hospice, ~90% of revenue) and Roto-Rooter (plumbing/drain services). Under a liquidation lens, recovery to equity is deeply negative and worsening, consistent with MFFAIS-reported values of approximately -$500M (CLV), -$285M (LLV), and -$278M (OLV) at March 31, 2026. The balance sheet is dominated by intangible assets that recover zero in liquidation: goodwill of $687.5M and other intangibles net of $80.4M together represent approximately 50% of reported total assets of $1.54B. Applied haircuts—PP&E at 50-70% on $207.7M book, AR at 90-95% on $215.5M, cash at 100% on $16.9M, inventory at 60% on $7.2M—produce a recoverable asset pool well below total liabilities of $687.8M at face. The liability stack includes operating lease obligations with remaining undiscounted payments of $162.4M (present value $145.7M), long-term debt of $91.2M on the revolver (drawn up from zero at December 31, 2025, per narrative; $135.5M drawn and $44.3M repaid in Q1 2026), deferred compensation liability of $142.7M (roughly offset by plan assets of $143.8M but legally separate obligations), defined benefit pension cost accruing at $9.9M per quarter, and current liabilities of $321.4M. The revolver draw is the most notable change from the prior filing: the filing confirms zero variable rate debt at March 31, 2026, but the cash flow statement shows net draws of $91.2M in Q1 2026 to fund $190M in share repurchases plus $20.6M in acquisitions. The February 2026 board authorization of an additional $300M under the repurchase program, combined with 500,000 shares repurchased at $395.36 in March 2026 ($197.7M TreasuryStockValueAcquiredCostMethod for the quarter per XBRL, though item 2(c) shows $197.7M spent in March alone against a weighted average of $395.36), accelerated the conversion of equity into treasury stock. Treasury stock now stands at $3.81B cumulative cost basis against retained earnings of $3.01B—book equity of $848M is sustained only by $1.60B of additional paid-in capital. The accounts receivable days outstanding (excluding unapplied Medicare payments) deteriorated sharply from 38.7 days in the prior period to 38.8 days currently, while estimated uncollectible accounts as a percent of revenues doubled from 0.6% to 1.2%, modestly pressuring AR recovery assumptions. Goodwill increased by $20.5M due to acquisitions in Q1 2026. No pension obligation reset or lease restructuring was disclosed. The filing does not separately tag the defined benefit pension liability in XBRL; it appears only in MD&A/footnote disclosure.
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