Lease Commitments

12 Months Ended

Dec. 31, 2014

Lease Commitments

7) LEASE COMMITMENTS

Three of our hospital facilities are held under operating leases with Universal Health Realty Income Trust with terms expiring in 2016 (see Note 9 for additional disclosure). We also lease the real property of certain facilities (see Item 2. Properties for additional disclosure).

A summary of property under capital lease follows (amounts in thousands):

	As of December 31,
	2014			2013
Land, buildings and equipment	$	40,782		$	27,636
Less: accumulated amortization		(27,556	)		(27,382	)
	$	13,226		$	254

Future minimum rental payments under lease commitments with a term of more than one year as of December 31, 2014, are as follows (amounts in thousands):

Year	Capital Leases			Operating Leases
	(000s)
2015	$	3,293		$	58,904
2016		3,261			49,043
2017		3,308			31,619
2018		3,322			25,940
2019		3,370			22,229
Later years		22,356			147,288
Total minimum rental	$	38,910		$	335,023
Less: Amount representing interest		(17,310	)
Present value of minimum rental commitments		21,600
Less: Current portion of capital lease obligations		(1,080	)
Long-term portion of capital lease obligations	$	20,520

During 2014, we assumed a capital lease obligation of approximately $16 million in connection with our acquisition of the Psychiatric Institute of Washington, a 124-bed behavioral health care facility located in Washington, D.C. We incurred no additional capital lease obligations during 2013 or 2012. In the ordinary course of business, our facilities routinely lease equipment pursuant to new lease arrangements that will likely result in future lease and rental expense in excess of amounts indicated above.