Leases

9 Months Ended

Sep. 30, 2020

The Company's operating leases are primarily for real estate, including medical office buildings, and corporate and other administrative offices. The Company's finance leases are primarily for medical equipment and information technology and telecommunications assets. Due to the COVID-19 pandemic, the Company received concessions for certain of its leases primarily consisting of deferral of rental payments. The Company has elected to account for these COVID-19 related concessions as though the enforceable rights and obligations for those concessions are explicit within the underlying contract. The Company accounts for the deferred rentals as a component of other current liabilities within the condensed consolidated balance sheets. In a few instances the Company modified the terms of the lease in exchange for lease concessions. These modifications resulted in an increase to the Company's right-of-use operating lease assets and liabilities of $26.4 million during the nine months ended September 30, 2020, respectively.

The following table presents the components of the Company's lease expense and their classification in the condensed consolidated statement of operations (in millions):


	Nine Months Ended September 30,
	2020		2019
Operating lease costs	$	54.9	$	50.8
Finance lease costs:
Amortization of leased assets	19.0		15.3
Interest on lease liabilities	15.7		10.9
Total finance lease costs	34.7		26.2
Variable and short-term lease costs	12.6		10.6
Total lease costs	$	102.2	$	87.6

The following table presents supplemental cash flow information (dollars in millions):


	Nine Months Ended September 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	49.8	$	48.7
Operating cash outflows from finance leases	$	15.7	$	10.9
Financing cash outflows from finance leases	$	12.9	$	9.4

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	53.9	$	48.0
Finance leases	$	11.5	$	9.1

Leases

The following table presents the components of the Company's lease expense and their classification in the condensed consolidated statement of operations (in millions):


	Nine Months Ended September 30,
	2020		2019
Operating lease costs	$	54.9	$	50.8
Finance lease costs:
Amortization of leased assets	19.0		15.3
Interest on lease liabilities	15.7		10.9
Total finance lease costs	34.7		26.2
Variable and short-term lease costs	12.6		10.6
Total lease costs	$	102.2	$	87.6

The following table presents supplemental cash flow information (dollars in millions):


	Nine Months Ended September 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	49.8	$	48.7
Operating cash outflows from finance leases	$	15.7	$	10.9
Financing cash outflows from finance leases	$	12.9	$	9.4

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	53.9	$	48.0
Finance leases	$	11.5	$	9.1