Operating Leases

12 Months Ended

Dec. 31, 2024

11. Operating Leases:

The Company primarily leases property under operating leases for its medical and business offices, storage space and temporary housing for medical staff. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payment using a discount rate that reflects the Company’s estimated incremental borrowing rate. Certain of the Company’s leases include rental escalation clauses and renewal options that are factored into the determination of lease payments when appropriate. Operating leases for office equipment are not material, and therefore are excluded from the Company’s Consolidated Balance Sheet.

The table below presents the operating lease-related right-of-use assets and related liabilities recorded on the Company’s balance sheet and the weighted average remaining lease term and discount rate as of December 31, 2024 and 2023 (dollars in thousands):


	December 31,
	2024			2023
Assets:
Operating lease right-of-use assets	$	34,089		$	61,693
Liabilities:
Current portion of operating lease liabilities		12,704			21,076
Long-term portion of operating lease liabilities		31,945			47,238
Other Information:
Weighted-average remaining lease term	4.2 years			4.6 years
Weighted average discount rate		5.9	%		5.5	%

The table below presents certain information related to the lease costs for operating leases during the years ended December 31, 2024 and 2023 (in thousands):


	December 31,
	2024		2023
Operating lease costs	$	20,194	$	23,200
Variable lease costs		6,999		5,854
Other operating lease costs		3,329		3,613
Total operating lease costs	$	30,522	$	32,667

The table below presents supplemental cash flow information related to operating leases during the years ended December 31, 2024 and 2023 (in thousands):


	December 31, 2024		December 31, 2023
Operating cash flows for operating leases	$	34,532	$	35,747

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the balance sheet as of December 31, 2024 (in thousands):


	December 31, 2024
2025	$	13,691
2026		12,230
2027		9,688
2028		6,363
2029		3,271
Thereafter		4,644
Total minimum lease payments		49,887
Less: Amount of payments representing interest		(5,238	)
Present value of future minimum lease payments		44,649
Less: Current obligations		(12,704	)
Long-term portion of operating leases	$	31,945