LEASES
The Company has operating leases for clinical facilities, general office spaces, vehicles, and office equipment. Leases have remaining lease terms of less than a year to 17 years, some of which include options to extend the leases for up to 6 years.
The components of lease expense were as follows:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 15.9 | | | $ | 17.8 | | | $ | 26.0 | |
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | (16.9) | | | $ | (19.9) | | | $ | (27.6) | |
| ROU assets obtained in exchange for lease obligations: | | | | | |
| Operating leases | $ | 16.0 | | | $ | 15.2 | | | $ | 60.1 | |
Supplemental balance sheet information related to leases was as follows:
| | | | | | | | | | | |
| December 31,
2025 | | December 31,
2024 |
| Operating lease ROU assets (included in Property, plant and equipment, net) | $ | 56.0 | | | $ | 66.2 | |
| | | |
| Short-term operating lease liabilities | 9.2 | | | 13.4 | |
| Operating lease liabilities | 54.0 | | | 60.6 | |
| Total operating lease liabilities | $ | 63.2 | | | $ | 74.0 | |
| | | |
| Weighted Average Remaining Lease Term | 10.5 years | | 10.1 years |
| Weighted Average Discount Rate | 7.1 | % | | 5.7 | % |
Maturities of lease liabilities are as follows:
| | | | | |
| Year ended December 31, 2025 | Operating Leases |
| 2026 | $ | 12.3 | |
| 2027 | 10.6 | |
| 2028 | 9.2 | |
| 2029 | 8.8 | |
| 2030 | 6.8 | |
| Thereafter | 39.5 | |
| Total lease payments | 87.2 | |
| Less imputed interest | (24.0) | |
| Less current portion | (9.2) | |
| Total maturities, due beyond one year | $ | 54.0 | |
There was $3.9, $2.9 and $0.2 rent expense for short term leases with a term less than one year for the years ended December 31, 2025 and 2024 and 2023, respectively. Additionally, the Company earned $4.0, $3.4 and $1.7 in sublease income for the years ended December 31, 2025, 2024 and 2023.
Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments based on changes in index rates or usage, are not included in the right-of-use assets or lease liabilities and are expensed as incurred. The Company records variable lease payments that do not depend on a rate index, primarily for purchase volume commitments, as variable cost when incurred. There were no variable payments for the years ended December 31, 2025, 2024 and 2023.