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Facility Operating Leases | 9 Months Ended
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Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract] |
Facility Operating Leases | Facility Operating Leases As of September 30, 2018, the Company operated 366 communities under long-term leases (258 operating leases and 108 capital and financing leases). The substantial majority of the Company's lease arrangements are structured as master leases. Under a master lease, numerous communities are leased through an indivisible lease. The Company typically guarantees the performance and lease payment obligations of its subsidiary lessees under master leases. Due to the nature of such master leases, it is difficult to restructure the composition of such leased portfolios or economic terms of the leases without the consent of the applicable landlord. In addition, an event of default related to an individual property or limited number of properties within a master lease portfolio may result in a default on the entire master lease portfolio. The community leases contain other customary terms, which may include assignment and change of control restrictions, maintenance and capital expenditure obligations, termination provisions and financial covenants, such as those requiring the Company to maintain prescribed minimum net worth and stockholders' equity levels and lease coverage ratios, and not to exceed prescribed leverage ratios, in each case on a consolidated, portfolio-wide, multi-community, single-community and/or entity basis. In addition, the Company's lease documents generally contain non-financial covenants, such as those requiring the Company to comply with Medicare or Medicaid provider requirements. The Company's failure to comply with applicable covenants could constitute an event of default under the applicable lease documents. Many of the Company's debt and lease documents contain cross-default provisions so that a default under one of these instruments could cause a default under other debt and lease documents (including documents with other lenders and lessors). Certain leases contain cure provisions, which generally allow the Company to post an additional lease security deposit if the required covenant is not met. Furthermore, the Company's leases are secured by its communities and, in certain cases, a guaranty by the Company and/or one or more of its subsidiaries. As of September 30, 2018, the Company is in compliance with the financial covenants of its long-term leases. A summary of facility lease expense and the impact of straight-line adjustment and amortization of (above) below market rents and deferred gains are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Cash basis payment | $ | 73,969 |  |  | $ | 90,303 |  |  | $ | 250,677 |  |  | $ | 275,506 |
Straight-line (income) expense | (1,815 | ) |  | (3,078 | ) |  | (10,410 | ) |  | (9,204 | )
Amortization of (above) below market lease, net | (672 | ) |  | (1,697 | ) |  | (4,246 | ) |  | (5,091 | )
Amortization of deferred gain | (1,090 | ) |  | (1,091 | ) |  | (3,269 | ) |  | (3,277 | )
Facility lease expense | $ | 70,392 |  |  | $ | 84,437 |  |  | $ | 232,752 |  |  | $ | 257,934 |

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- Definition The entire disclosure for lessor entity's leasing arrangements for operating, capital and leveraged leases. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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