9. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Leases  – We lease various operating facilities and certain medical equipment under operating leases with renewal options expiring through 2046. Certain leases contain renewal options from two to ten years and escalation based either on the consumer price index or fixed rent escalators. Leases with fixed rent escalators are recorded on a straight-line basis. We record deferred rent for tenant leasehold improvement allowances received from certain lessors and amortize the deferred rent expense over the term of the lease agreement. Minimum annual payments under operating leases for future years ending December 31 are as follows (in thousands):

	Facilities		Equipment		Total
2016	$	57,899	$	8,688	$	66,587
2017		49,755		8,389		58,144
2018		42,497		6,136		48,633
2019		36,581		2,589		39,170
2020		29,037		896		29,933
Thereafter		80,289		14		80,303
	$	296,058	$	26,712	$	322,770

Total rent expense, including equipment rentals, for the years ended December 31, 2015, 2014 and 2013 was $61.5 million, $64.5 million and $65.0 million, respectively.

Litigation  – We are engaged from time to time in the defense of lawsuits arising out of the ordinary course and conduct of our business. We believe that the outcome of our current litigation will not have a material adverse impact on our business, financial condition and results of operations. However, we could be subsequently named as a defendant in other lawsuits that could adversely affect us.