Operating Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Operating Leases

11. Operating Leases:

The Company primarily leases property under operating leases and had one material equipment operating lease for an aircraft that expired in January 2022. The Company’s property leases are primarily for its regional, medical and business offices, storage space and temporary housing for medical staff.

For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payment using a discount rate that reflects the Company’s estimated incremental borrowing rate. Certain of the Company’s leases include rental escalation clauses and renewal options that are factored into the determination of lease payments when appropriate. Operating leases for office equipment are not material, and therefore are excluded from the Company’s Consolidated Balance Sheet.

The table below presents the operating lease-related right-of-use assets and related liabilities recorded on the Company’s balance sheet and the weighted average remaining lease term and discount rate as of December 31, 2023 and 2022 (dollars in thousands):

	December 31,
	2023			2022
Assets:
Operating lease right-of-use assets	$	61,693		$	55,796
Liabilities:
Current portion of operating lease liabilities		21,076			21,589
Long-term portion of operating lease liabilities		47,238			44,213
Other Information:
Weighted-average remaining lease term	4.6 years			3.9 years
Weighted average discount rate		5.5	%		4.6	%

The table below presents certain information related to the lease costs for operating leases during the years ended December 31, 2023 and 2022 (in thousands):

	December 31,
	2023		2022
Operating lease costs	$	23,200	$	22,293
Variable lease costs		5,854		6,640
Other operating lease costs		3,613		4,218
Total operating lease costs	$	32,667	$	33,151

The table below presents supplemental cash flow information related to operating leases during the years ended December 31, 2023 and 2022 (in thousands):

	December 31, 2023		December 31, 2022
Operating cash flows for operating leases	$	35,747	$	37,549

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the balance sheet as of December 31, 2023 (in thousands):

	December 31, 2023
2024	$	22,141
2025		17,421
2026		12,436
2027		8,906
2028		5,501
Thereafter		10,142
Total minimum lease payments		76,547
Less: Amount of payments representing interest		(8,233	)
Present value of future minimum lease payments		68,314
Less: Current obligations		(21,076	)
Long-term portion of operating leases	$	47,238