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9. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

NOTE 9 – 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
2018	$	58,907	$	9,551	$	68,458
2019		51,177		8,950		60,127
2020		43,237		7,836		51,073
2021		36,089		5,986		42,075
2022		28,287		3,667		31,954
Thereafter		102,837		3,118		105,955
	$	320,534	$	39,108	$	359,642

Total rent expense, including equipment rentals, for the years ended December 31, 2017, 2016 and 2015 was $67.2 million, $74.2 million and $71.7 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.