Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies [Abstract]

Commitments and Contingencies

10.       Commitments and Contingencies

Facility Operating Leases

The Company has entered into sale leaseback and lease agreements with certain real estate investment trusts ("REIT"s). Under these agreements communities are either sold to the REIT and leased back or a long-term lease agreement is entered into for the communities. The initial lease terms primarily vary from 10 to 20 years and generally include renewal options ranging from 5 to 30 years. The Company is responsible for all operating costs, including repairs, property taxes and insurance. The substantial majority of the Company's lease arrangements are structured as master leases. Under a master lease, numerous communities are leased through an indivisible lease. The Company typically guarantees its performance and the lease payments under the master lease and the lease may include performance covenants, such as net worth, minimum capital expenditure requirements per community per annum and minimum lease coverage ratios. Failure to comply with these covenants could result in an event of default. The Company's leases and mortgage debt generally contain cross-default and cross-collateralization provisions. Certain leases contain cure provisions generally requiring the posting of an additional lease security deposit if the required covenant is not met.

As of December 31, 2015 the Company operated 546 communities under long-term leases (322 operating leases and 224 capital and financing leases). As of December 31, 2014 the Company operated 583 communities under long-term leases (342 operating leases and 241 capital and financing leases). The remaining base lease terms vary from one year to 17 years and generally provide for renewal, extension and purchase options.

A summary of facility lease expense and the impact of straight-line adjustment and amortization of (above) below market rents and deferred gains are as follows (in thousands):

	For the Years Ended December 31,
	2015			2014			2013
Cash basis payment	$	372,148		$	330,207		$	278,504
Straight-line (income) expense		6,956			1,439			2,597
Amortization of (above) below market rents, net		(7,158	)		(3,444	)		—
Amortization of deferred gain		(4,372	)		(4,372	)		(4,372	)
Facility lease expense	$	367,574		$	323,830		$	276,729

The aggregate amounts of future minimum operating lease payments, including community and office leases, as of December 31, 2015, are as follows (dollars in thousands):

Year Ending December 31,	Operating Leases
2016	$	390,816
2017		373,690
2018		358,168
2019		340,747
2020		300,674
Thereafter		1,336,099
Total	$	3,100,194

Other

The Company has employment or letter agreements with certain officers of the Company and has adopted policies to which certain officers of the Company are eligible to participate that grant these employees the right to receive a portion or multiple of their base salary, pro-rata bonus, bonus and/or continuation of certain benefits, for a defined period of time, in the event of certain terminations of the officers' employment, as described in those agreements and policies.