Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Leases
The table below summarizes the components of lease expense and income statement location for the years ended December 31, 2024 and December 31, 2023:
Supplemental information and balance sheet location related to leases for the years ended December 31, 2024 and December 31, 2023 was as follows:
Supplemental cash flow information related to leases for the years ended December 31, 2024 and December 31, 2023 were as follows:
Maturities of lease liabilities as of December 31, 2024 were as follows:
Guarantee in Connection with the Sale of the Divested Business
In connection with the sale of a company-managed clinic in 2022, the Company guaranteed one future operating lease commitment assumed by the buyers. The Company is obligated to perform under the guarantee if the buyers fail to perform under the lease agreement at any time during the remainder of the lease agreement, which expires on May 31, 2027. At the date of sale, the undiscounted maximum potential future payments totaled $247,296. As of the year ended December 31, 2024, the undiscounted remaining lease payments under the agreement totaled $133,896. The Company had not recorded a liability with respect to the guarantee obligation as of December 31, 2024, as the Company concluded that payment under the lease guarantee was not probable.
Litigation
In the normal course of business, the Company is party to litigation and claims from time to time. The Company maintains insurance to cover certain litigation and claims, subject to policy limits.
During the second quarter of 2024, the Company entered into settlement agreements from litigation related to employment matters of $1.5 million that was outside the normal course of business which the Company has accrued for in discontinued operations current liabilities as of December 31, 2024. Additionally, ongoing litigation related to a medical injury claim between a patient (“the Claimant”) and the Company filed on September 5, 2023 reached a settlement agreement on February 25, 2025. Per the terms of the settlement agreement, the Company and the Company’s insurance will pay the claimant $3.4 million. The Company has accrued the settlement recorded in discontinued operations current liabilities for $3.4 million as of December 31, 2024. The expense from the accrual is offset by a receivable recorded as discontinued operations current assets from the Company’s insurance for $1.9 million.
During the year ended December 31, 2024, the Company incurred litigation expenses, including settlement costs related to employment matters that were outside the normal course of business and a medical injury claim, of $3.0 million, included as (Loss) income from discontinued operations before income tax expense in its consolidated income statement.
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