Pediatrix Medical Group, Inc. Leases Disclosure
10. 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 Sheets.
The table below presents the operating lease-related right-of-use assets and related liabilities recorded on the Company’s balance sheets and the weighted average remaining lease term and discount rate as of December 31, 2025 and 2024 (dollars in thousands):
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Assets: |
|
|
|
|
|
|
||
|
$ |
31,132 |
|
|
$ |
34,089 |
|
|
Liabilities: |
|
|
|
|
|
|
||
|
|
11,591 |
|
|
|
12,704 |
|
|
|
|
25,686 |
|
|
|
31,945 |
|
|
Other Information: |
|
|
|
|
|
|
||
Weighted-average remaining lease term |
|
3.8 years |
|
|
4.2 years |
|
||
Weighted average discount rate |
|
|
5.9 |
% |
|
|
5.9 |
% |
The table below presents certain information related to the lease costs for operating leases during the years ended December 31, 2025 and 2024 (in thousands):
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Operating lease costs |
|
$ |
11,737 |
|
|
$ |
20,194 |
|
Variable lease costs |
|
|
4,323 |
|
|
|
6,999 |
|
Other operating lease costs |
|
|
1,621 |
|
|
|
3,329 |
|
Total operating lease costs |
|
$ |
17,681 |
|
|
$ |
30,522 |
|
The table below presents supplemental cash flow information related to operating leases during the years ended December 31, 2025 and 2024 (in thousands):
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
Operating cash flows for operating leases |
|
$ |
20,625 |
|
|
$ |
34,532 |
|
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, 2025 (in thousands):
|
|
December 31, 2025 |
|
|
2026 |
|
$ |
12,433 |
|
2027 |
|
|
11,199 |
|
2028 |
|
|
7,849 |
|
2029 |
|
|
4,710 |
|
2030 |
|
|
2,900 |
|
Thereafter |
|
|
1,940 |
|
Total minimum lease payments |
|
|
41,031 |
|
Less: Amount of payments representing interest |
|
|
(3,754 |
) |
Present value of future minimum lease payments |
|
|
37,277 |
|
Less: Current obligations |
|
|
(11,591 |
) |
Long-term portion of operating leases |
|
$ |
25,686 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 14, 2018 | |
| 2016 | Feb 10, 2017 | |
| 2015 | Feb 11, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.