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9. COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2016
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 2041. 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 
2017  $58,368   $8,337   $66,705 
2018   49,638    7,784    57,422 
2019   43,192    5,695    48,887 
2020   35,276    3,841    39,117 
2021   28,062    1,999    30,061 
Thereafter   56,008    1,332    57,340 
   $270,544   $28,988   $299,532 

 

Total rent expense, including equipment rentals, for the years ended December 31, 2016, 2015 and 2014 was $74.2 million, $71.7 million and $64.5 million, respectively.

 

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.