LEASES (Notes)

12 Months Ended

Dec. 31, 2019

Leases of Lessee Disclosure [Text Block]

5. LEASES

The Company has operating and finance leases for patient service centers, laboratories and testing facilities, clinical facilities, general office spaces, vehicles, and office and laboratory 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:

	For the Year Ended
	December 31, 2019
Operating lease cost	$	224.0
Finance lease cost:
Amortization of right-of-use assets	$	11.1
Interest on lease liabilities	6.7
Total finance lease cost	$	17.8

Supplemental cash flow information related to leases was as follows:

	For the Year Ended
	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(227.3	)
Operating cash flows from finance leases	(6.7		)
Financing cash flows from finance leases	(8.9		)
ROU assets obtained in exchange for lease obligations:
Operating leases	$	132.6
Finance leases	0.2

Supplemental balance sheet information related to leases was as follows:

	December 31, 2019
Operating Leases
Operating lease ROU assets (included in Property, plant and equipment, net)	$	732.8
Short-term operating lease liabilities	206.5
Operating lease liabilities	596.6
Total operating lease liabilities	$	803.1

	December 31, 2019
Finance Leases
Finance lease ROU assets (included in Other assets)	$	87.7
Short-term finance lease liabilities	8.4
Financing lease liabilities	91.1
Total finance lease liabilities	$	99.5
Weighted Average Remaining Lease Term
Operating leases	7.6
Finance leases	15.5
Weighted Average Discount Rate
Operating leases	4.1		%
Finance leases	5.2		%

Maturities of lease liabilities are as follows:

Year Ended December 31, 2019	Operating Leases			Finance Leases
2020	$	206.5		$	15.8
2021	164.8			13.9
2022	121.0			12.6
2023	88.2			12.4
2024	67.6			10.9
Thereafter	289.9			96.8
Total lease payments	$	938.0		$	162.4
Less imputed interest	(134.9		)	(62.9		)
Less current portion	(206.5		)	(8.4		)
Total maturities, due beyond one year	$	596.6		$	91.1

Rental expense for short term leases with a term less than one year for the year ended December 31, 2019, amounted to $10.6. 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 year ended December 31, 2019, were $20.8. As of December 31, 2019, the Company has entered into approximately 3 additional operating leases, for patient service centers, that have not yet commenced and are not significant to the overall lease portfolio. These operating leases will commence in 2020 with lease terms ranging from 5 to 9 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 Standard Codification 840 are as follows:

	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,under ASC 842 amounted to $393.1 for the year ended December 31, 2019. Rent expense, which includes rent for real estate, equipment and automobiles under operating leases under ASC 840 amounted to $358.7 and $313.8 for the years ended December 31, 2018 and 2017, respectively.