Notes to Consolidated Financial Statements: Lease Commitments

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6) LEASE COMMITMENTS

Certain of the Company’s hospital and medical office facilities and equipment are held under operating or capital leases which expire through 2006 (See Note 8). Certain of these leases also contain provisions allowing the Company to purchase the leased assets during the term or at the expiration of the lease at fair market value.

    A summary of property under capital lease follows:

(000s)
Year Ended December 31 1999 1998
Land, buildings and equipment $25,605 $25,579
Less: accumulated amortization (22,902) (22,084)
$2,703 $3,495

    Future minimum rental payments under lease commitments with a term of more than one year as of December 31, 1999, are as follows:

(000s)
Year Capital
Leases Operating
Leases
2000 $1,596 $21,208
2001 565 18,040
2002 444 11,771
2003 211 10,093
2004 211 8,826
Later Years 53 21,558
Total minimum rental $3,080 $91,496
Less: Amount representing interest 214
Present value of minimum rental commitments 2,866
Less: Current portion of capital lease obligations 1,546
Long-term portion of capital lease obligations $1,320

    Capital lease obligations of $1.1 million in 1999, $160,000 in 1998 and $3.1 million in 1997, were incurred when the Company entered into capital leases for new equipment.

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