Lease Commitments

12 Months Ended

Dec. 31, 2015

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,
	2015			2014
Land, buildings and equipment	$	45,665		$	40,782
Less: accumulated amortization		(27,169	)		(27,556	)
	$	18,496		$	13,226

Future minimum rental payments under lease commitments with a term of more than one year as of December 31, 2015, are as follows (amounts in thousands):

Year	Capital Leases			Operating Leases
	(000s)
2016	$	3,849		$	64,049
2017		3,929			42,989
2018		4,061			35,447
2019		3,996			29,721
2020		3,339			21,487
Later years		22,055			137,692
Total minimum rental	$	41,229		$	331,385
Less: Amount representing interest		(16,316	)
Present value of minimum rental commitments		24,913
Less: Current portion of capital lease obligations		(1,557	)
Long-term portion of capital lease obligations	$	23,356

During 2015 and 2014, we assumed capital lease obligations of approximately $7 million and $16 million, respectively, in connection with the leases on certain real estate assets. We incurred no capital lease obligations during 2013. 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.