XML 45 R17.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Leases | 9 Months Ended
--- | ---
Sep. 30, 2022
Leases [Abstract] |
Leases | Leases The components of lease expense were as follows:
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| Classification |  | 2022 |  | 2021 |  | 2022 |  | 2021
Operating lease cost | DS&A Expenses |  | $ | 24,231 |  |  | $ | 15,307 |  |  | $ | 64,832 |  |  | $ | 44,098 |
Finance lease cost: |  |  |  |  |  |  |  |  |
Amortization of lease assets | DS&A Expenses |  | 318 |  |  | 254 |  |  | 944 |  |  | 675 |
Interest on lease liabilities | Interest expense, net |  | 304 |  |  | 315 |  |  | 915 |  |  | 916 |
Total finance lease cost |  | 622 |  |  | 569 |  |  | 1,859 |  |  | 1,591 |
Short-term lease cost | DS&A Expenses, Cost of goods sold |  | 1,207 |  |  | 225 |  |  | 2,363 |  |  | 708 |
Variable lease cost | DS&A Expenses, Cost of goods sold |  | 10,390 |  |  | 4,349 |  |  | 24,418 |  |  | 13,009 |
Total lease cost |  | $ | 36,450 |  |  | $ | 20,450 |  |  | $ | 93,472 |  |  | $ | 59,406 |
Variable lease cost consists of taxes, insurance, and common area or other maintenance costs for our leased facilities and patient services equipment which are paid as incurred. Variable lease cost also includes expense associated with patient services equipment, which is based on equipment usage or a percentage of net revenues collected for specific products. Patient equipment lease expense is recorded in cost of goods sold in the consolidated statement of operations. Supplemental balance sheet information is as follows:
| Classification |  | September 30, 2022 |  | December 31, 2021
Assets: |  |  |  |  |
Operating lease assets | Operating lease assets |  | $ | 275,833 |  |  | $ | 194,006 |
Finance lease assets | Property and equipment, net |  | 10,754 |  |  | 8,896 |
Total lease assets |  | $ | 286,587 |  |  | $ | 202,902 |
Liabilities: |  |  |  |  |
Current |  |  |  |  |
Operating | Other current liabilities |  | $ | 72,990 |  |  | $ | 41,817 |
Finance | Other current liabilities |  | 2,470 |  |  | 2,037 |
Noncurrent |  |  |  |  |
Operating | Operating lease liabilities, excluding current portion |  | 215,022 |  |  | 162,241 |
Finance | Long-term debt, excluding current portion |  | 13,023 |  |  | 11,314 |
Total lease liabilities |  | $ | 303,505 |  |  | $ | 217,409 |
The gross value recorded under finance leases was $20.0 million and $20.6 million with associated accumulated depreciation of $9.2 million and $11.7 million as of September 30, 2022 and December 31, 2021. Operating lease assets include $83.6 million in right-of-use assets and $86.8 million of operating lease liabilities associated with Apria as of September 30, 2022. Other information related to leases was as follows:
|  | Nine Months Ended September 30,
|  | 2022 |  | 2021
Supplemental cash flow information |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating and finance leases |  | $ | 63,488 |  | $ | 43,687 |
Financing cash flows from finance leases |  | $ | 1,115 |  | $ | 726 |
Right-of-use assets obtained in exchange for new operating and finance lease liabilities |  | $ | 64,325 |  | $ | 76,960 |
Weighted average remaining lease term (years) |  |  |  |
Operating leases |  | 4.3 |  | 5.2
Finance leases |  | 5.9 |  | 6.9
Weighted average discount rate |  |  |  |
Operating leases |  | 6.9% |  | 8.6%
Finance leases |  | 10.8% |  | 11.0%
Maturities of lease liabilities as of September 30, 2022 were as follows:
| Operating Leases (1) |  | Finance Leases |  | Total
2022 | $ | 24,060 |  |  | $ | 675 |  |  | $ | 24,735 |
2023 | 93,913 |  |  | 2,693 |  |  | 96,606 |
2024 | 80,267 |  |  | 2,641 |  |  | 82,908 |
2025 | 58,612 |  |  | 2,588 |  |  | 61,200 |
2026 | 41,058 |  |  | 2,506 |  |  | 43,564 |
Thereafter | 49,224 |  |  | 4,774 |  |  | 53,998 |
Total lease payments | 347,134 |  |  | 15,877 |  |  | 363,011 |
Less: Interest | (59,122) |  |  | (384) |  |  | (59,506) |
Present value of lease liabilities | $ | 288,012 |  |  | $ | 15,493 |  |  | $ | 303,505 |
(1) Operating lease payments exclude $40.2 million of legally binding lease payments for the Morgantown, West Virginia center of excellence for medical supplies and logistics lease signed, but not yet commenced.
Leases | Leases The components of lease expense were as follows:
|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| Classification |  | 2022 |  | 2021 |  | 2022 |  | 2021
Operating lease cost | DS&A Expenses |  | $ | 24,231 |  |  | $ | 15,307 |  |  | $ | 64,832 |  |  | $ | 44,098 |
Finance lease cost: |  |  |  |  |  |  |  |  |
Amortization of lease assets | DS&A Expenses |  | 318 |  |  | 254 |  |  | 944 |  |  | 675 |
Interest on lease liabilities | Interest expense, net |  | 304 |  |  | 315 |  |  | 915 |  |  | 916 |
Total finance lease cost |  | 622 |  |  | 569 |  |  | 1,859 |  |  | 1,591 |
Short-term lease cost | DS&A Expenses, Cost of goods sold |  | 1,207 |  |  | 225 |  |  | 2,363 |  |  | 708 |
Variable lease cost | DS&A Expenses, Cost of goods sold |  | 10,390 |  |  | 4,349 |  |  | 24,418 |  |  | 13,009 |
Total lease cost |  | $ | 36,450 |  |  | $ | 20,450 |  |  | $ | 93,472 |  |  | $ | 59,406 |
Variable lease cost consists of taxes, insurance, and common area or other maintenance costs for our leased facilities and patient services equipment which are paid as incurred. Variable lease cost also includes expense associated with patient services equipment, which is based on equipment usage or a percentage of net revenues collected for specific products. Patient equipment lease expense is recorded in cost of goods sold in the consolidated statement of operations. Supplemental balance sheet information is as follows:
| Classification |  | September 30, 2022 |  | December 31, 2021
Assets: |  |  |  |  |
Operating lease assets | Operating lease assets |  | $ | 275,833 |  |  | $ | 194,006 |
Finance lease assets | Property and equipment, net |  | 10,754 |  |  | 8,896 |
Total lease assets |  | $ | 286,587 |  |  | $ | 202,902 |
Liabilities: |  |  |  |  |
Current |  |  |  |  |
Operating | Other current liabilities |  | $ | 72,990 |  |  | $ | 41,817 |
Finance | Other current liabilities |  | 2,470 |  |  | 2,037 |
Noncurrent |  |  |  |  |
Operating | Operating lease liabilities, excluding current portion |  | 215,022 |  |  | 162,241 |
Finance | Long-term debt, excluding current portion |  | 13,023 |  |  | 11,314 |
Total lease liabilities |  | $ | 303,505 |  |  | $ | 217,409 |
The gross value recorded under finance leases was $20.0 million and $20.6 million with associated accumulated depreciation of $9.2 million and $11.7 million as of September 30, 2022 and December 31, 2021. Operating lease assets include $83.6 million in right-of-use assets and $86.8 million of operating lease liabilities associated with Apria as of September 30, 2022. Other information related to leases was as follows:
|  | Nine Months Ended September 30,
|  | 2022 |  | 2021
Supplemental cash flow information |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating and finance leases |  | $ | 63,488 |  | $ | 43,687 |
Financing cash flows from finance leases |  | $ | 1,115 |  | $ | 726 |
Right-of-use assets obtained in exchange for new operating and finance lease liabilities |  | $ | 64,325 |  | $ | 76,960 |
Weighted average remaining lease term (years) |  |  |  |
Operating leases |  | 4.3 |  | 5.2
Finance leases |  | 5.9 |  | 6.9
Weighted average discount rate |  |  |  |
Operating leases |  | 6.9% |  | 8.6%
Finance leases |  | 10.8% |  | 11.0%
Maturities of lease liabilities as of September 30, 2022 were as follows:
| Operating Leases (1) |  | Finance Leases |  | Total
2022 | $ | 24,060 |  |  | $ | 675 |  |  | $ | 24,735 |
2023 | 93,913 |  |  | 2,693 |  |  | 96,606 |
2024 | 80,267 |  |  | 2,641 |  |  | 82,908 |
2025 | 58,612 |  |  | 2,588 |  |  | 61,200 |
2026 | 41,058 |  |  | 2,506 |  |  | 43,564 |
Thereafter | 49,224 |  |  | 4,774 |  |  | 53,998 |
Total lease payments | 347,134 |  |  | 15,877 |  |  | 363,011 |
Less: Interest | (59,122) |  |  | (384) |  |  | (59,506) |
Present value of lease liabilities | $ | 288,012 |  |  | $ | 15,493 |  |  | $ | 303,505 |
(1) Operating lease payments exclude $40.2 million of legally binding lease payments for the Morgantown, West Virginia center of excellence for medical supplies and logistics lease signed, but not yet commenced.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration