XML 27 R15.htm IDEA: XBRL DOCUMENT v3.7.0.1
Leases
12 Months Ended
Dec. 31, 2016
Leases [Abstract]  
Leases
8. Leases
In certain instances, state laws may prohibit the sale of a home nursing agency or hospitals may be reluctant to sell their home health agencies. In these instances, the Company, through its wholly owned subsidiaries, enters into a lease agreement for a Medicare and Medicaid license, as well as the associated provider number to provide home health or hospice services. As of December 31, 2016, the Company had three license lease arrangements to operate four home nursing agencies and three hospice agencies.
One of the leases was entered into in 2007 and expires in 2017. Expense related to this lease was $0.2 million for each of the years ended December 31, 2016, 2015, and 2014, respectively. Payment due under this lease is $0.2 million in 2017.
Two of the leases were amended during 2010 to extend the lease terms to one year with an automatic renewal clause for additional consecutive one year terms. Expense related to these leases was $0.4 million, $0.5 million, and $0.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. The lease payments associated with these leases are based on a percentage of quarterly net profits; therefore, the future payments will vary with the future profits.
 
The Company leases office space and equipment at its various locations. Many of the leases contain renewal options with varying terms and conditions. Management expects that in the normal course of business, expiring leases will be renewed or, upon making a decision to relocate, replaced by leases for new locations. Operating lease terms range from three to ten years. Rent expense includes insurance, maintenance, and other costs as required by the lease. Total rental expense was $20.8 million, $20.7 million and $21.1 million for the years ended December 31, 2016, 2015 and 2014, respectively.

The Company began participating in a fleet program during 2014. The program allows employees that drive over 12,000 miles on an annual basis to qualify for a vehicle; all participation is voluntary. The individual operating leases are for a minimum of 12 months. Fleet expense was $5.3 million, $7.2 million and $3.6 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Future minimum rental commitments under non-cancelable operating leases are as follows (amounts in thousands):
 
Year
 
Total
2017
 
$
17,785

2018
 
11,439

2019
 
7,617

2020
 
5,064

2021
 
3,744

Thereafter
 
5,627

 
 
$
51,276