SELECT MEDICAL HOLDINGS CORP Leases Disclosure
| For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 2024 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrelated Parties | Related Parties | Total | Unrelated Parties | Related Parties | Total | Unrelated Parties | Related Parties | Total | |||||||||||||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating lease cost | $ | 212,360 | $ | 7,335 | $ | 219,695 | $ | 226,866 | $ | 7,335 | $ | 234,201 | $ | 237,045 | $ | 7,335 | $ | 244,380 | |||||||||||||||||||||||||||||||||||
| Finance lease cost: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of right-of-use assets | 572 | — | 572 | 572 | — | 572 | 686 | — | 686 | ||||||||||||||||||||||||||||||||||||||||||||
Interest on lease liabilities | 1,013 | — | 1,013 | 984 | — | 984 | 1,268 | — | 1,268 | ||||||||||||||||||||||||||||||||||||||||||||
| Variable lease cost | 45,086 | 84 | 45,170 | 47,678 | 16 | 47,694 | 51,123 | — | 51,123 | ||||||||||||||||||||||||||||||||||||||||||||
| Sublease income | (6,725) | — | (6,725) | (6,875) | — | (6,875) | (7,369) | — | (7,369) | ||||||||||||||||||||||||||||||||||||||||||||
| Total lease cost from continuing operations | $ | 252,306 | $ | 7,419 | $ | 259,725 | $ | 269,225 | $ | 7,351 | $ | 276,576 | $ | 282,753 | $ | 7,335 | $ | 290,088 | |||||||||||||||||||||||||||||||||||
| For the Year Ended December 31, | |||||||||||||||||
| 2023 | 2024 | 2025 | |||||||||||||||
| (in thousands) | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities (1): | |||||||||||||||||
Operating cash flows for operating leases | $ | 317,256 | $ | 321,271 | $ | 244,623 | |||||||||||
Operating cash flows for finance leases | 1,239 | 1,104 | 1,081 | ||||||||||||||
Financing cash flows for finance leases | 1,617 | 1,347 | 652 | ||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities: | |||||||||||||||||
| Operating leases | 171,569 | 299,111 | 238,495 | ||||||||||||||
Finance leases | — | — | 56,676 | ||||||||||||||
| December 31, | |||||||||||||||||||||||||||||||||||
| 2024 | 2025 | ||||||||||||||||||||||||||||||||||
| Unrelated Parties | Related Parties | Total | Unrelated Parties | Related Parties | Total | ||||||||||||||||||||||||||||||
| Operating Leases | (in thousands) | ||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets | $ | 885,457 | $ | 22,638 | $ | 908,095 | $ | 941,332 | $ | 16,572 | $ | 957,904 | |||||||||||||||||||||||
Current operating lease liabilities | $ | 173,189 | $ | 6,412 | $ | 179,601 | $ | 181,276 | $ | 7,129 | $ | 188,405 | |||||||||||||||||||||||
Non-current operating lease liabilities | 768,546 | 18,578 | 787,124 | 823,913 | 11,449 | 835,362 | |||||||||||||||||||||||||||||
| Total operating lease liabilities | $ | 941,735 | $ | 24,990 | $ | 966,725 | $ | 1,005,189 | $ | 18,578 | $ | 1,023,767 | |||||||||||||||||||||||
| December 31, | |||||||||||||||||||||||||||||||||||
| 2024 | 2025 | ||||||||||||||||||||||||||||||||||
| Unrelated Parties | Related Parties | Total | Unrelated Parties | Related Parties | Total | ||||||||||||||||||||||||||||||
| Finance Leases | (in thousands) | ||||||||||||||||||||||||||||||||||
| $ | 3,350 | $ | — | $ | 3,350 | $ | 59,340 | $ | — | $ | 59,340 | ||||||||||||||||||||||||
| $ | 798 | $ | — | $ | 798 | $ | 1,488 | $ | — | $ | 1,488 | ||||||||||||||||||||||||
| 10,014 | — | 10,014 | 65,348 | — | 65,348 | ||||||||||||||||||||||||||||||
| Total finance lease liabilities | $ | 10,812 | $ | — | $ | 10,812 | $ | 66,836 | $ | — | $ | 66,836 | |||||||||||||||||||||||
| December 31, | |||||||||||
| 2024 | 2025 | ||||||||||
| Weighted average remaining lease term (in years): | |||||||||||
| Operating leases | 9.2 | 9.9 | |||||||||
| Finance leases | 32.8 | 22.1 | |||||||||
| Weighted average discount rate: | |||||||||||
| Operating leases | 6.6 | % | 6.6 | % | |||||||
| Finance leases | 7.1 | % | 7.0 | % | |||||||
| Operating Leases | Finance Leases | ||||||||||
| (in thousands) | |||||||||||
| 2026 | $ | 244,555 | $ | 6,075 | |||||||
| 2027 | 210,418 | 5,637 | |||||||||
| 2028 | 160,303 | 5,348 | |||||||||
| 2029 | 127,836 | 5,442 | |||||||||
| 2030 | 102,364 | 5,538 | |||||||||
Thereafter | 659,753 | 108,085 | |||||||||
| Total undiscounted cash flows | 1,505,229 | 136,125 | |||||||||
| Less: Imputed interest | 481,462 | 69,289 | |||||||||
| Total discounted lease liabilities | $ | 1,023,767 | $ | 66,836 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 20, 2020 | |
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.