10-Q 1 sem-20220630.htm 10-Q sem-20220630
0001320414false12/312022Q2http://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2022#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2022#LongTermDebtAndCapitalLeaseObligationsCurrenthttp://fasb.org/us-gaap/2022#LongTermDebtAndCapitalLeaseObligationsCurrenthttp://fasb.org/us-gaap/2022#LongTermDebtAndCapitalLeaseObligationshttp://fasb.org/us-gaap/2022#LongTermDebtAndCapitalLeaseObligations00013204142022-01-012022-06-3000013204142022-07-31xbrli:shares00013204142021-12-31iso4217:USD00013204142022-06-30iso4217:USDxbrli:shares00013204142021-04-012021-06-3000013204142022-04-012022-06-3000013204142021-01-012021-06-300001320414us-gaap:CommonStockMember2021-12-310001320414us-gaap:AdditionalPaidInCapitalMember2021-12-310001320414us-gaap:RetainedEarningsMember2021-12-310001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001320414us-gaap:ParentMember2021-12-310001320414us-gaap:NoncontrollingInterestMember2021-12-310001320414us-gaap:RetainedEarningsMember2022-01-012022-03-310001320414us-gaap:ParentMember2022-01-012022-03-3100013204142022-01-012022-03-310001320414us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001320414us-gaap:CommonStockMember2022-01-012022-03-310001320414us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001320414us-gaap:CommonStockMember2022-03-310001320414us-gaap:AdditionalPaidInCapitalMember2022-03-310001320414us-gaap:RetainedEarningsMember2022-03-310001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001320414us-gaap:ParentMember2022-03-310001320414us-gaap:NoncontrollingInterestMember2022-03-3100013204142022-03-310001320414us-gaap:RetainedEarningsMember2022-04-012022-06-300001320414us-gaap:ParentMember2022-04-012022-06-300001320414us-gaap:NoncontrollingInterestMember2022-04-012022-06-300001320414us-gaap:CommonStockMember2022-04-012022-06-300001320414us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001320414us-gaap:CommonStockMember2022-06-300001320414us-gaap:AdditionalPaidInCapitalMember2022-06-300001320414us-gaap:RetainedEarningsMember2022-06-300001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001320414us-gaap:ParentMember2022-06-300001320414us-gaap:NoncontrollingInterestMember2022-06-300001320414us-gaap:CommonStockMember2020-12-310001320414us-gaap:AdditionalPaidInCapitalMember2020-12-310001320414us-gaap:RetainedEarningsMember2020-12-310001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001320414us-gaap:ParentMember2020-12-310001320414us-gaap:NoncontrollingInterestMember2020-12-3100013204142020-12-310001320414us-gaap:RetainedEarningsMember2021-01-012021-03-310001320414us-gaap:ParentMember2021-01-012021-03-3100013204142021-01-012021-03-310001320414us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001320414us-gaap:CommonStockMember2021-01-012021-03-310001320414us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001320414us-gaap:CommonStockMember2021-03-310001320414us-gaap:AdditionalPaidInCapitalMember2021-03-310001320414us-gaap:RetainedEarningsMember2021-03-310001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001320414us-gaap:ParentMember2021-03-310001320414us-gaap:NoncontrollingInterestMember2021-03-3100013204142021-03-310001320414us-gaap:RetainedEarningsMember2021-04-012021-06-300001320414us-gaap:ParentMember2021-04-012021-06-300001320414us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001320414us-gaap:CommonStockMember2021-04-012021-06-300001320414us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001320414us-gaap:CommonStockMember2021-06-300001320414us-gaap:AdditionalPaidInCapitalMember2021-06-300001320414us-gaap:RetainedEarningsMember2021-06-300001320414us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001320414us-gaap:ParentMember2021-06-300001320414us-gaap:NoncontrollingInterestMember2021-06-3000013204142021-06-300001320414us-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMembersem:MedicareReceivableMember2021-01-012021-12-31xbrli:pure0001320414us-gaap:AccountsReceivableMemberus-gaap:CreditConcentrationRiskMembersem:MedicareReceivableMember2022-01-012022-06-300001320414us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-310001320414us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-06-300001320414sem:CriticalIllnessRecoveryHospitalsMember2021-12-310001320414sem:RehabilitationHospitalsMember2021-12-310001320414sem:OutpatientRehabilitationMember2021-12-310001320414sem:ConcentraMember2021-12-310001320414sem:CriticalIllnessRecoveryHospitalsMember2022-01-012022-06-300001320414sem:RehabilitationHospitalsMember2022-01-012022-06-300001320414sem:OutpatientRehabilitationMember2022-01-012022-06-300001320414sem:ConcentraMember2022-01-012022-06-300001320414sem:CriticalIllnessRecoveryHospitalsMember2022-06-300001320414sem:RehabilitationHospitalsMember2022-06-300001320414sem:OutpatientRehabilitationMember2022-06-300001320414sem:ConcentraMember2022-06-300001320414us-gaap:TrademarksMember2021-12-310001320414us-gaap:TrademarksMember2022-06-300001320414sem:CertificatesOfNeedMember2021-12-310001320414sem:CertificatesOfNeedMember2022-06-300001320414sem:AccreditationsMember2021-12-310001320414sem:AccreditationsMember2022-06-300001320414us-gaap:TrademarksMember2021-12-310001320414us-gaap:TrademarksMember2022-06-300001320414us-gaap:CustomerRelationshipsMember2021-12-310001320414us-gaap:CustomerRelationshipsMember2022-06-300001320414us-gaap:NoncompeteAgreementsMember2021-12-310001320414us-gaap:NoncompeteAgreementsMember2022-06-300001320414sem:AccreditationsMember2022-01-012022-06-300001320414us-gaap:TrademarksMember2022-01-012022-06-300001320414us-gaap:SeniorNotesMembersem:A625SeniorNotesDueAugust152026Member2022-06-300001320414us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-06-300001320414us-gaap:SecuredDebtMember2022-06-300001320414us-gaap:NotesPayableOtherPayablesMember2022-06-300001320414us-gaap:SeniorNotesMembersem:A625SeniorNotesDueAugust152026Member2021-12-310001320414us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-12-310001320414us-gaap:SecuredDebtMember2021-12-310001320414us-gaap:NotesPayableOtherPayablesMember2021-12-310001320414us-gaap:InterestRateCapMember2022-06-300001320414us-gaap:InterestRateCapMember2022-01-012022-06-300001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-03-310001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-03-310001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-03-310001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-04-012021-06-300001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-04-012022-06-300001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-06-300001320414us-gaap:InterestRateCapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-06-300001320414us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateCapMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001320414us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateCapMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001320414us-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMembersem:A625SeniorNotesDueAugust152026Member2021-12-310001320414us-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMembersem:A625SeniorNotesDueAugust152026Member2022-06-300001320414us-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2021-12-310001320414us-gaap:LineOfCreditMemberus-gaap:FairValueInputsLevel2Member2022-06-300001320414us-gaap:FairValueInputsLevel2Memberus-gaap:SecuredDebtMember2021-12-310001320414us-gaap:FairValueInputsLevel2Memberus-gaap:SecuredDebtMember2022-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2022-01-012022-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300001320414us-gaap:CorporateNonSegmentMember2021-04-012021-06-300001320414us-gaap:CorporateNonSegmentMember2022-04-012022-06-300001320414us-gaap:CorporateNonSegmentMember2021-01-012021-06-300001320414us-gaap:CorporateNonSegmentMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2021-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2022-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2021-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2022-06-300001320414us-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2021-06-300001320414us-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2022-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMember2021-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMember2022-06-300001320414us-gaap:CorporateNonSegmentMember2021-06-300001320414us-gaap:CorporateNonSegmentMember2022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMembersem:CriticalIllnessRecoveryHospitalsMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMembersem:HealthCarePatientServiceMedicareMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMembersem:OutpatientRehabilitationMember2021-04-012021-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMember2021-04-012021-06-300001320414us-gaap:CorporateNonSegmentMembersem:HealthCarePatientServiceMedicareMember2021-04-012021-06-300001320414sem:HealthCarePatientServiceMedicareMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:CriticalIllnessRecoveryHospitalsMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:RehabilitationHospitalsMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:OutpatientRehabilitationMember2021-04-012021-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMember2021-04-012021-06-300001320414us-gaap:CorporateNonSegmentMembersem:HealthCarePatientServiceNonMedicareMember2021-04-012021-06-300001320414sem:HealthCarePatientServiceNonMedicareMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMemberus-gaap:HealthCarePatientServiceMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMemberus-gaap:HealthCarePatientServiceMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMemberus-gaap:HealthCarePatientServiceMembersem:OutpatientRehabilitationMember2021-04-012021-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMemberus-gaap:HealthCarePatientServiceMember2021-04-012021-06-300001320414us-gaap:CorporateNonSegmentMemberus-gaap:HealthCarePatientServiceMember2021-04-012021-06-300001320414us-gaap:HealthCarePatientServiceMember2021-04-012021-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2021-04-012021-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2021-04-012021-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2021-04-012021-06-300001320414us-gaap:ServiceOtherMembersem:ConcentraMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001320414us-gaap:ServiceOtherMemberus-gaap:CorporateNonSegmentMember2021-04-012021-06-300001320414us-gaap:ServiceOtherMember2021-04-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMembersem:CriticalIllnessRecoveryHospitalsMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMembersem:HealthCarePatientServiceMedicareMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMembersem:OutpatientRehabilitationMember2022-04-012022-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMember2022-04-012022-06-300001320414us-gaap:CorporateNonSegmentMembersem:HealthCarePatientServiceMedicareMember2022-04-012022-06-300001320414sem:HealthCarePatientServiceMedicareMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:CriticalIllnessRecoveryHospitalsMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:RehabilitationHospitalsMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:OutpatientRehabilitationMember2022-04-012022-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMember2022-04-012022-06-300001320414us-gaap:CorporateNonSegmentMembersem:HealthCarePatientServiceNonMedicareMember2022-04-012022-06-300001320414sem:HealthCarePatientServiceNonMedicareMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMemberus-gaap:HealthCarePatientServiceMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMemberus-gaap:HealthCarePatientServiceMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMemberus-gaap:HealthCarePatientServiceMembersem:OutpatientRehabilitationMember2022-04-012022-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMemberus-gaap:HealthCarePatientServiceMember2022-04-012022-06-300001320414us-gaap:CorporateNonSegmentMemberus-gaap:HealthCarePatientServiceMember2022-04-012022-06-300001320414us-gaap:HealthCarePatientServiceMember2022-04-012022-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2022-04-012022-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2022-04-012022-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2022-04-012022-06-300001320414us-gaap:ServiceOtherMembersem:ConcentraMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001320414us-gaap:ServiceOtherMemberus-gaap:CorporateNonSegmentMember2022-04-012022-06-300001320414us-gaap:ServiceOtherMember2022-04-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMembersem:CriticalIllnessRecoveryHospitalsMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMembersem:HealthCarePatientServiceMedicareMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMembersem:OutpatientRehabilitationMember2021-01-012021-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMember2021-01-012021-06-300001320414us-gaap:CorporateNonSegmentMembersem:HealthCarePatientServiceMedicareMember2021-01-012021-06-300001320414sem:HealthCarePatientServiceMedicareMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:CriticalIllnessRecoveryHospitalsMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:RehabilitationHospitalsMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:OutpatientRehabilitationMember2021-01-012021-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMember2021-01-012021-06-300001320414us-gaap:CorporateNonSegmentMembersem:HealthCarePatientServiceNonMedicareMember2021-01-012021-06-300001320414sem:HealthCarePatientServiceNonMedicareMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMemberus-gaap:HealthCarePatientServiceMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMemberus-gaap:HealthCarePatientServiceMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMemberus-gaap:HealthCarePatientServiceMembersem:OutpatientRehabilitationMember2021-01-012021-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMemberus-gaap:HealthCarePatientServiceMember2021-01-012021-06-300001320414us-gaap:CorporateNonSegmentMemberus-gaap:HealthCarePatientServiceMember2021-01-012021-06-300001320414us-gaap:HealthCarePatientServiceMember2021-01-012021-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2021-01-012021-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2021-01-012021-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2021-01-012021-06-300001320414us-gaap:ServiceOtherMembersem:ConcentraMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300001320414us-gaap:ServiceOtherMemberus-gaap:CorporateNonSegmentMember2021-01-012021-06-300001320414us-gaap:ServiceOtherMember2021-01-012021-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMembersem:CriticalIllnessRecoveryHospitalsMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMembersem:HealthCarePatientServiceMedicareMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMembersem:OutpatientRehabilitationMember2022-01-012022-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceMedicareMember2022-01-012022-06-300001320414us-gaap:CorporateNonSegmentMembersem:HealthCarePatientServiceMedicareMember2022-01-012022-06-300001320414sem:HealthCarePatientServiceMedicareMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:CriticalIllnessRecoveryHospitalsMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:RehabilitationHospitalsMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMembersem:OutpatientRehabilitationMember2022-01-012022-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMembersem:HealthCarePatientServiceNonMedicareMember2022-01-012022-06-300001320414us-gaap:CorporateNonSegmentMembersem:HealthCarePatientServiceNonMedicareMember2022-01-012022-06-300001320414sem:HealthCarePatientServiceNonMedicareMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMemberus-gaap:HealthCarePatientServiceMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMemberus-gaap:HealthCarePatientServiceMember2022-01-012022-06-300001320414us-gaap:OperatingSegmentsMemberus-gaap:HealthCarePatientServiceMembersem:OutpatientRehabilitationMember2022-01-012022-06-300001320414sem:ConcentraMemberus-gaap:OperatingSegmentsMemberus-gaap:HealthCarePatientServiceMember2022-01-012022-06-300001320414us-gaap:CorporateNonSegmentMemberus-gaap:HealthCarePatientServiceMember2022-01-012022-06-300001320414us-gaap:HealthCarePatientServiceMember2022-01-012022-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:CriticalIllnessRecoveryHospitalsMember2022-01-012022-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:RehabilitationHospitalsMember2022-01-012022-06-300001320414us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMembersem:OutpatientRehabilitationMember2022-01-012022-06-300001320414us-gaap:ServiceOtherMembersem:ConcentraMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300001320414us-gaap:ServiceOtherMemberus-gaap:CorporateNonSegmentMember2022-01-012022-06-300001320414us-gaap:ServiceOtherMember2022-01-012022-06-300001320414us-gaap:ProfessionalMalpracticeLiabilityMember2022-01-012022-06-300001320414us-gaap:GeneralLiabilityMember2022-01-012022-06-300001320414us-gaap:ProfessionalMalpracticeLiabilityMemberus-gaap:CorporateJointVentureMember2022-01-012022-06-300001320414us-gaap:ProfessionalMalpracticeLiabilityMemberus-gaap:CorporateJointVentureMembersrt:MinimumMember2022-01-012022-06-300001320414us-gaap:ProfessionalMalpracticeLiabilityMemberus-gaap:CorporateJointVentureMembersrt:MaximumMember2022-01-012022-06-300001320414us-gaap:SubsequentEventMember2022-08-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended June 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from              to              
Commission file numbers: 001-34465
 
SELECT MEDICAL HOLDINGS CORPORATION
(Exact name of Registrant as specified in its Charter)
Delaware20-1764048
(State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number)
 
4714 Gettysburg Road, P.O. Box 2034
Mechanicsburg, PA 17055
(Address of Principal Executive Offices and Zip code)
(717972-1100
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareSEMNew York Stock Exchange
(NYSE)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods as such Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  ☒  No ☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).   Yes ☒ No ☐
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
 Emerging Growth Company
 If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No ☒
As of July 31, 2022, Select Medical Holdings Corporation had outstanding 125,916,075 shares of common stock.
Unless the context indicates otherwise, any reference in this report to “Holdings” refers to Select Medical Holdings Corporation and any reference to “Select” refers to Select Medical Corporation, the wholly owned operating subsidiary of Holdings, and any of Select’s subsidiaries. Any reference to “Concentra” refers to Concentra Group Holdings Parent, LLC (“Concentra Group Holdings Parent”) and its subsidiaries, including Concentra Inc. References to the “Company,” “we,” “us,” and “our” refer collectively to Holdings, Select, and Concentra.
1

TABLE OF CONTENTS
 
   
 
   
 
   
 
   
 
   
 
   
 
   
   
   
   
   
   
   
   
   
   
   
   
 
2

PART I: FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Select Medical Holdings Corporation
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except share and per share amounts)
December 31, 2021June 30, 2022
ASSETS  
Current Assets:  
Cash and cash equivalents$74,310 $94,669 
Accounts receivable889,303 921,623 
Prepaid income taxes55,620 42,642 
Other current assets120,206 162,114 
Total Current Assets1,139,439 1,221,048 
Operating lease right-of-use assets1,078,754 1,136,678 
Property and equipment, net961,467 955,752 
Goodwill3,448,912 3,476,213 
Identifiable intangible assets, net374,879 366,222 
Other assets356,720 395,745 
Total Assets$7,360,171 $7,551,658 
LIABILITIES AND EQUITY  
Current Liabilities:  
Overdrafts$42,353 $31,298 
Current operating lease liabilities229,334 233,917 
Current portion of long-term debt and notes payable17,572 44,009 
Accounts payable233,844 231,472 
Accrued payroll247,292 257,612 
Accrued vacation144,048 152,281 
Accrued interest29,002 29,339 
Accrued other244,312 242,980 
Government advances83,790 6,471 
Unearned government assistance93 586 
Income taxes payable1,437 11,774 
Total Current Liabilities1,273,077 1,241,739 
Non-current operating lease liabilities916,540 974,657 
Long-term debt, net of current portion3,556,385 3,723,734 
Non-current deferred tax liability142,792 157,892 
Other non-current liabilities106,442 107,738 
Total Liabilities5,995,236 6,205,760 
Commitments and contingencies (Note 14)
Redeemable non-controlling interests39,033 42,197 
Stockholders’ Equity:  
Common stock, $0.001 par value, 700,000,000 shares authorized, 133,884,817 and 126,491,347 shares issued and outstanding at 2021 and 2022, respectively
134 126 
Capital in excess of par504,314 441,769 
Retained earnings593,251 565,556 
Accumulated other comprehensive income12,282 63,962 
Total Stockholders’ Equity1,109,981 1,071,413 
Non-controlling interests215,921 232,288 
Total Equity1,325,902 1,303,701 
Total Liabilities and Equity$7,360,171 $7,551,658 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3

Select Medical Holdings Corporation
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share amounts)

 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2021202220212022
Revenue$1,564,020 $1,584,741 $3,110,483 $3,184,288 
Costs and expenses:  
Cost of services, exclusive of depreciation and amortization1,291,448 1,390,550 2,584,897 2,797,560 
General and administrative35,737 37,268 71,140 74,781 
Depreciation and amortization50,954 51,081 100,574 102,120 
Total costs and expenses1,378,139 1,478,899 2,756,611 2,974,461 
Other operating income98,087 15,125 132,108 15,125 
Income from operations283,968 120,967 485,980 224,952 
Other income and expense:  
Equity in earnings of unconsolidated subsidiaries11,809 6,167 21,728 11,564 
Interest income  4,749  
Interest expense(33,888)(41,052)(68,290)(76,566)
Income before income taxes261,889 86,082 444,167 159,950 
Income tax expense65,681 19,820 110,745 37,762 
Net income196,208 66,262 333,422 122,188 
Less: Net income attributable to non-controlling interests31,314 11,055 57,982 17,864 
Net income attributable to Select Medical Holdings Corporation$164,894 $55,207 $275,440 $104,324 
Earnings per common share (Note 13):  
Basic and diluted$1.22 $0.43 $2.04 $0.79 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4

Select Medical Holdings Corporation
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
(in thousands)

For the Three Months Ended June 30,For the Six Months Ended June 30,
2021202220212022
Net income$196,208 $66,262 $333,422 $122,188 
Other comprehensive income (loss), net of tax:
Gain (loss) on interest rate cash flow hedge(1,403)11,833 6,748 51,647 
Reclassification adjustment for losses (gains) included in net income6 (6)6 33 
Net change, net of tax benefit (expense) of $486, $(3,942), $(2,348) and $(17,227)
(1,397)11,827 6,754 51,680 
Comprehensive income194,811 78,089 340,176 173,868 
Less: Comprehensive income attributable to non-controlling interests31,314 11,055 57,982 17,864 
Comprehensive income attributable to Select Medical Holdings Corporation$163,497 $67,034 $282,194 $156,004 

The accompanying notes are an integral part of these condensed consolidated financial statements.


5

Select Medical Holdings Corporation
Condensed Consolidated Statements of Changes in Equity and Income
(unaudited)
(in thousands)

For the Six Months Ended June 30, 2022
 Total Stockholders’ Equity  
 Common
Stock
Issued
Common
Stock
Par Value
Capital in
Excess
of Par
Retained
Earnings
Accumulated Other Comprehensive IncomeTotal Stockholders’ EquityNon-controlling
Interests
Total
Equity
Balance at December 31, 2021133,884 $134 $504,314 $593,251 $12,282 $1,109,981 $215,921 $1,325,902 
Net income attributable to Select Medical Holdings Corporation49,117 49,117 49,117 
Net income attributable to non-controlling interests 4,891 4,891 
Cash dividends declared for common stockholders ($0.125 per share)
(16,691)(16,691)(16,691)
Issuance of restricted stock13 0 0   
Vesting of restricted stock8,288 8,288 8,288 
Repurchase of common shares(2,128)(2)(23,459)(28,215)(51,676)(51,676)
Issuance of non-controlling interests651 651 4,578 5,229 
Non-controlling interests acquired in business combination, measurement period adjustment 12,463 12,463 
Distributions to and purchases of non-controlling interests (9,097)(9,097)
Redemption value adjustment on non-controlling interests(1,381)(1,381)(1,381)
Other comprehensive income39,853 39,853 39,853 
Other(2)(2)(2)
Balance at March 31, 2022131,769 $132 $489,794 $596,079 $52,135 $1,138,140 $228,756 $1,366,896 
Net income attributable to Select Medical Holdings Corporation   55,207 55,207 55,207 
Net income attributable to non-controlling interests     9,155 9,155 
Cash dividends declared for common stockholders ($0.125 per share)
(16,108)(16,108)(16,108)
Issuance of restricted stock211 0 0    
Forfeitures of unvested restricted stock(6)0 0 3 3 3 
Vesting of restricted stock8,406 8,406 8,406 
Repurchase of common shares(5,483)(6)(56,965)(69,976)(126,947)(126,947)
Issuance of non-controlling interests 1,725 1,725 
Distributions to and purchases of non-controlling interests  534 534 (7,348)(6,814)
Redemption value adjustment on non-controlling interests   355 355 355 
Other comprehensive income11,827 11,827 11,827 
Other  (4)(4)(4)
Balance at June 30, 2022126,491 $126 $441,769 $565,556 $63,962 $1,071,413 $232,288 $1,303,701 
The accompanying notes are an integral part of these condensed consolidated financial statements.
6

For the Six Months Ended June 30, 2021
 Total Stockholders’ Equity  
 Common
Stock
Issued
Common
Stock
Par Value
Capital in
Excess
of Par
Retained
Earnings
Accumulated Other Comprehensive Income (Loss)Total Stockholders’ EquityNon-controlling
Interests
Total
Equity
Balance at December 31, 2020134,850 $135 $509,128 $553,244 $(2,027)$1,060,480 $192,493 $1,252,973 
Net income attributable to Select Medical Holdings Corporation110,546 110,546 110,546 
Net income attributable to non-controlling interests 17,042 17,042 
Issuance of restricted stock2 0 0   
Forfeitures of unvested restricted stock(14)0 0   
Vesting of restricted stock6,173 6,173 6,173 
Non-controlling interests acquired in business combination 8,193 8,193 
Distributions to and purchases of non-controlling interests(787)(787)(13,458)(14,245)
Redemption value adjustment on non-controlling interests(38,405)(38,405)(38,405)
Other comprehensive income8,151 8,151 8,151 
Other(178)(4)(182)371 189 
Balance at March 31, 2021134,838 $135 $514,336 $625,381 $6,124 $1,145,976 $204,641 $1,350,617 
Net income attributable to Select Medical Holdings Corporation164,894 164,894 164,894 
Net income attributable to non-controlling interests 13,241 13,241 
Dividends declared for common stockholders ($0.125 per share)
(16,876)(16,876)(16,876)
Issuance of restricted stock211 0 0   
Forfeitures of unvested restricted stock(2)0 0   
Vesting of restricted stock6,564 6,564 6,564 
Repurchase of common shares(42)0 (707)(903)(1,610)(1,610)
Issuance of non-controlling interests(1,051)(1,051)6,739 5,688 
Distributions to and purchases of non-controlling interests(2,970)(2,970)(9,324)(12,294)
Redemption value adjustment on non-controlling interests(59,370)(59,370)(59,370)
Other comprehensive loss(1,397)(1,397)(1,397)
Other65 65 370 435 
Balance at June 30, 2021135,005 $135 $516,172 $713,191 $4,727 $1,234,225 $215,667 $1,449,892 
The accompanying notes are an integral part of these condensed consolidated financial statements.
7

Select Medical Holdings Corporation
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
 For the Six Months Ended June 30,
 20212022
Operating activities  
Net income$333,422 $122,188 
Adjustments to reconcile net income to net cash provided by operating activities:  
Distributions from unconsolidated subsidiaries19,384 11,140 
Depreciation and amortization100,574 102,120 
Provision for expected credit losses212 111 
Equity in earnings of unconsolidated subsidiaries(21,728)(11,564)
Loss (gain) on sale or disposal of assets 494 (1,476)
Stock compensation expense13,808 17,769 
Amortization of debt discount, premium and issuance costs1,095 1,123 
Deferred income taxes(8,323)(1,965)
Changes in operating assets and liabilities, net of effects of business combinations:  
Accounts receivable(31,751)(32,431)
Other current assets(12,856)(2,128)
Other assets(11,984)1,275 
Accounts payable18,881 4,879 
Accrued expenses71,034 20,488 
Government advances(73,703)(77,319)
Unearned government assistance(78,509)493 
Income taxes42,976 23,315 
Net cash provided by operating activities363,026 178,018 
Investing activities  
Business combinations, net of cash acquired(10,081)(19,241)
Purchases of property and equipment(76,442)(93,177)
Investment in businesses(11,185)(6,990)
Proceeds from sale of assets9,463 5,314 
Net cash used in investing activities(88,245)(114,094)
Financing activities  
Borrowings on revolving facilities 565,000 
Payments on revolving facilities (375,000)
Borrowings of other debt8,915 17,494 
Principal payments on other debt(15,314)(16,874)
Dividends paid to common stockholders(16,876)(32,799)
Repurchase of common stock(1,610)(178,623)
Decrease in overdrafts (11,055)
Proceeds from issuance of non-controlling interests5,688 6,955 
Distributions to and purchases of non-controlling interests(29,152)(18,663)
Net cash used in financing activities(48,349)(43,565)
Net increase in cash and cash equivalents226,432 20,359 
Cash and cash equivalents at beginning of period577,061 74,310 
Cash and cash equivalents at end of period$803,493 $94,669 
Supplemental Information  
Cash paid for interest$66,955 $74,217 
Cash paid for taxes76,094 16,423 

The accompanying notes are an integral part of these condensed consolidated financial statements.
8

SELECT MEDICAL HOLDINGS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.                  Basis of Presentation
The unaudited condensed consolidated financial statements of Select Medical Holdings Corporation (“Holdings”) include the accounts of its wholly owned subsidiary, Select Medical Corporation (“Select”). Holdings conducts substantially all of its business through Select and its subsidiaries. Holdings, Select, and Select’s subsidiaries are collectively referred to as the “Company.” The unaudited condensed consolidated financial statements of the Company as of June 30, 2022, and for the three and six month periods ended June 30, 2021 and 2022, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting and the accounting principles generally accepted in the United States of America (“GAAP”). Accordingly, certain information and disclosures required by GAAP, which are normally included in the notes to the consolidated financial statements, have been condensed or omitted pursuant to those rules and regulations, although the Company believes the disclosure is adequate to make the information presented not misleading. In the opinion of management, such information contains all adjustments, which are normal and recurring in nature, necessary for a fair statement of the financial position, results of operations and cash flow for such periods. All significant intercompany transactions and balances have been eliminated.
The results of operations for the three and six months ended June 30, 2022, are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2021, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 24, 2022.
2.    Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could differ from those estimates.
3.     Credit Risk Concentrations
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash balances and accounts receivable. The Company’s excess cash is held with large financial institutions. The Company grants unsecured credit to its patients, most of whom reside in the service area of the Company’s facilities and are insured under third-party payor agreements.
Because of the diversity in the Company’s non-governmental third-party payor base, as well as their geographic dispersion, accounts receivable due from the Medicare program represent the Company’s only significant concentration of credit risk. Approximately 15% and 17% of the Company’s accounts receivable is due from Medicare at December 31, 2021 and June 30, 2022, respectively.










9

4.     Redeemable Non-Controlling Interests
The ownership interests held by outside parties in subsidiaries, which include limited liability companies and limited partnerships, controlled by the Company are classified as non-controlling interests. Some of the Company’s non-controlling ownership interests consist of outside parties that have certain redemption rights that, if exercised, require the Company to purchase the parties’ ownership interests. These interests are classified and reported as redeemable non-controlling interests and have been adjusted to their approximate redemption values, after the attribution of net income or loss.
The changes in redeemable non-controlling interests are as follows:
Six Months Ended June 30,
20212022
(in thousands)
Balance as of January 1$398,171 $39,033 
Net income attributable to redeemable non-controlling interests9,626 1,918 
Distributions to and purchases of redeemable non-controlling interests(614)(1,198)
Redemption value adjustment on redeemable non-controlling interests38,405 1,381 
Other343 536 
Balance as of March 31$445,931 $41,670 
Net income attributable to redeemable non-controlling interests18,073 1,900 
Distributions to and purchases of redeemable non-controlling interests(1,987)(1,553)
Redemption value adjustment on redeemable non-controlling interests59,370 (355)
Other165 535 
Balance as of June 30$521,552 $42,197 
5.     Variable Interest Entities
Certain states prohibit the “corporate practice of medicine,” which restricts the Company from owning medical practices which directly employ physicians and from exercising control over medical decisions by physicians. In these states, the Company enters into long-term management agreements with medical practices that are owned by licensed physicians, which, in turn, employ or contract with physicians who provide professional medical services. The management agreements provide for the Company to direct the transfer of ownership of the medical practices to new licensed physicians at any time. Based on the provisions of the management agreements, the medical practices are variable interest entities for which the Company is the primary beneficiary.
As of December 31, 2021, and June 30, 2022, the total assets of the Company’s variable interest entities were $225.1 million and $256.9 million, respectively, and are principally comprised of accounts receivable. As of December 31, 2021, and June 30, 2022, the total liabilities of the Company’s variable interest entities were $74.8 million and $85.2 million, respectively, and are principally comprised of accounts payable and accrued expenses. These variable interest entities have obligations payable for services received under their management agreements with the Company of $150.3 million and $172.7 million as of December 31, 2021, and June 30, 2022, respectively. These intercompany balances are eliminated in consolidation.










10

6.     Leases
The Company has operating and finance leases for its facilities. The Company leases its corporate office space from related parties.
The Company’s total lease cost is as follows:
Three Months Ended June 30, 2021Three Months Ended June 30, 2022
Unrelated PartiesRelated PartiesTotalUnrelated PartiesRelated PartiesTotal
(in thousands)
Operating lease cost
$70,739 $1,798 $72,537 $73,969 $1,809 $75,778 
Finance lease cost:
Amortization of right-of-use assets
105  105 377  377 
Interest on lease liabilities
254  254 336  336 
Short-term lease cost   15  15 
Variable lease cost13,086 141 13,227 14,407 141 14,548 
Sublease income(2,229) (2,229)(1,940) (1,940)
Total lease cost$81,955 $1,939 $83,894 $87,164 $1,950 $89,114 
Six Months Ended June 30, 2021Six Months Ended June 30, 2022
Unrelated PartiesRelated PartiesTotalUnrelated PartiesRelated PartiesTotal
(in thousands)
Operating lease cost
$140,853 $3,597 $144,450 $147,931 $3,618 $151,549 
Finance lease cost:
Amortization of right-of-use assets
140  140 724  724 
Interest on lease liabilities
505  505 676  676 
Short-term lease cost   50  50 
Variable lease cost26,095 144 26,239 28,062 180 28,242 
Sublease income(4,463) (4,463)(3,906) (3,906)
Total lease cost$163,130 $3,741 $166,871 $173,537 $3,798 $177,335 
Supplemental cash flow information related to leases is as follows:
Six Months Ended June 30,
20212022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$145,652 $155,160 
Operating cash flows for finance leases
505 676 
Financing cash flows for finance leases
145 475 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases$138,606 $185,739 
Finance leases138 312 












11

Supplemental balance sheet information related to leases is as follows:

December 31, 2021June 30, 2022
Unrelated PartiesRelated PartiesTotalUnrelated PartiesRelated PartiesTotal
(in thousands)
Operating Leases
Operating lease right-of-use assets$1,052,603 $26,151 $1,078,754 $1,113,431 $23,247 $1,136,678 
Current operating lease liabilities