Leases (Notes)

6 Months Ended

Jun. 30, 2019

Leases of Lessee Disclosure [Text Block]

LEASES

The Company has operating and finance leases for patient service centers, laboratories and testing facilities, general office spaces, vehicles, and certain equipment. Leases have remaining lease terms of less than a year to 15 years, some of which include options to extend the leases for up to 15 years.

The components of lease expense were as follows:



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	$	59.9	$	110.8

Finance lease cost:
Amortization of ROU assets	$	1.5	$	2.9
Interest on lease liabilities	0.4		1.2
Total finance lease cost	$	1.9	$	4.1

Supplemental cash flow information related to leases was as follows:



	Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(115.2	)
Operating cash flows from finance leases	(0.9		)
Financing cash flows from finance leases	(4.8		)

ROU assets obtained in exchange for lease obligations:
Operating leases	$	43.7
Finance leases	0.2

Supplemental balance sheet information related to leases was as follows:



	June 30, 2019
Operating Leases
Operating lease ROU assets (included in Property, plant and equipment, net)	$	770.3

Short-term operating lease liabilities	229.2
Operating lease liabilities	586.1
Total operating lease liabilities	$	815.3



	June 30, 2019
Finance Leases
Finance lease ROU assets (included in Other assets)	$	85.4

Short-term finance lease liabilities	$	8.2
Finance lease liabilities	46.2
Total finance lease liabilities	$	54.4

Weighted Average Remaining Lease Term
Operating leases	5.8
Finance leases	6.5

Weighted Average Discount Rate
Operating leases	4.2		%
Finance leases	4.8		%

Maturities of lease liabilities are as follows:



Six Months Ended June 30, 2019	Operating Leases			Finance Leases

2019	$	254.1		$	7.1
2020	274.7			13.8
2021	174.6			12.0
2022	69.3			10.8
2023	45.1			10.7
Thereafter	153.1			34.5
Total lease payments	970.9			88.9
Less imputed interest	(155.6		)	(34.5		)
Total	$	815.3		$	54.4

Rental expense for short term leases with a term less than one year for the three and six months ended June 30, 2019, amounted to $2.6 and $5.9, respectively. The Company has variable lease payments that do not depend on a rate or index, primarily for purchase volume commitments, which are recorded as variable cost when incurred. Total variable payments for the three and six months ended June 30, 2019, were $4.7 and $9.2, respectively. As of June 30, 2019, the Company has entered into approximately 50 additional operating leases, primarily for patient service centers, that have not yet commenced and are not significant to the overall lease portfolio. These operating leases will commence later in 2019 with lease terms ranging from less than a year to 11 years.

The Company leases various facilities and equipment under non-cancelable lease arrangements. Future minimum rental commitments for leases with non-cancelable terms of one year or more at December 31, 2018, under Accounting Standards Codification 840 are as follows:



Year Ended December 31,	Operating Leases		Finance Leases

2019	$	191.1	$	8.6
2020	145.4		8.0
2021	107.0		6.7
2022	80.9		6.0
2023	61.5		6.5
Thereafter	155.6		23.1

Rental expense, which includes rent for real estate, equipment and automobiles under operating leases, amounted to $85.1 and $167.5, respectively, for the three and six months ended June 30, 2019.