LEASES

3 Months Ended

Mar. 31, 2020

Lease Liability

We have operating leases for medical facilities, administrative offices, warehouse space and major medical equipment. We lease the premises at which these facilities are located and do not have options to purchase the facilities we rent. Our most common initial term varies in length from 5 to 15 years. Including renewal options negotiated with the landlord, we can have a total span of 10 to 35 years at the facilities we lease. We also lease smaller satellite X-Ray locations on mutually renewable terms, usually lasting one year. Additionally, we have operating and finance leases for certain medical and office equipment, with lease terms generally lasting from 5 to 8 years.

The components of lease expense were as follows:




	Three Months Ended March 31,
(In thousands)	2020		2019

Operating lease cost	$	25,040	$	22,792

Finance lease cost:
Depreciation of leased equipment	$	780	$	783
Interest on lease liabilities	66		123
Total finance lease cost	$	846	$	905

Supplemental cash flow information related to leases was as follows:



	Three Months Ended March 31,
(In thousands)	2020		2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,660	$	22,921
Operating cash flows from financing leases	66		123
Financing cash flows from financing leases	839		1,522
Right-of-use & Equipment assets obtained in exchange for lease obligations:
Operating leases⁽¹⁾	10,050		412,695
Financing leases	4		14,056

⁽¹⁾Amounts for the three months ended March 31, 2019 include the transition adjustment for the adoption of Topic 842 discussed in Note 2, Significant Accounting Policies for further information.

Supplemental balance sheet information related to leases was as follows:



(In thousands, except lease term and discount rates)
	March 31, 2020			December 31, 2019

Operating Leases
Operating lease right-of-use assets	$	435,382		$	445,477
Current portion of operating lease liability	$	68,054		$	61,206
Operating lease liabilities	403,893			420,922
Total operating lease liabilities	$	471,947		$	482,128

Finance Leases
Property and Equipment, at cost	$	13,963		$	14,105
Accumulated depreciation	(3,877		)	(3,135		)
Equipment, net	$	10,086		$	10,970
Current portion of finance lease	$	3,292		$	3,283
Finance lease liabilities	2,475			3,264
Total finance lease liabilities	$	5,767		$	6,547

Weighted Average Remaining Lease Term
Operating leases - years	8.7			8.8
Finance leases - years	3.1			3.3

Weighted Average Discount Rate
Operating leases	6.4		%	6.4		%
Finance leases	4.4		%	4.4		%

Maturities of lease liabilities were as follows:



(In thousands)
	Operating			Financing
Year Ending December 31,	Leases			Leases
2020 (excluding the three months ended March 31, 2020)	$	66,261		$	2,609
2021	90,140			2,650
2022	81,744			715
2023	70,759			11
2024	55,366			11
Thereafter	265,744			—
Total Lease Payments	630,014			5,996
Less imputed interest	(158,067		)	(229		)
Total	$	471,947		$	5,767

As of March 31, 2020, we have an additional operating lease for a medical facility that has not yet commenced of approximately $2.0 million, which will commence in 2025 with a lease term of 5 years.

LEASES