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9. COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2013
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 
2014  $45,608   $6,892   $52,500 
2015   39,538    6,448    45,986 
2016   33,754    6,332    40,086 
2017   28,231    4,990    33,221 
2018   21,201    1,740    22,941 
Thereafter   66,331    –    66,331 
   $234,663   $26,401   $261,064 

 

Total rent expense, including equipment rentals, for the years ended December 31, 2013, 2012 and 2011 was $65.0 million, $60.6 million and $53.3 million, respectively.

 

Maintenance Contract  – We have fee based agreements with GE Medical Systems and Hologic under which they are contracted for the maintenance and repair of a majority of our equipment. Under these agreements, we are committed to minimum payments of approximately $23.5 million per year through 2016.

 

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.