8. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Leases – The Group leases various imaging facilities with renewal options expiring through 2029. Certain leases contain renewal options from two to ten years and escalation clauses based either on the consumer price index or fixed rent escalators. Leases with fixed rent escalators are recorded on a straight-line basis. The Group records deferred rent for tenant leasehold improvement allowances received from a lessor and amortizes the deferred rent expense over the term of the lease agreement. In addition to facility leases, the Group has entered into operating leases for radiology and office equipment. Minimum annual payments under operating leases for future years ending December 31 (in thousands) are as follows:

	Facilities		Equipment		Total
	(unaudited)		(unaudited)		(unaudited)
2017	$	1,917	$	404	$	2,321
2018		1,475		400		1,875
2019		1,081		385		1,465
2020		593		367		960
2021		248		90		339
Thereafter		351		–		351
	$	5,665	$	1,646	$	7,311

Total rent expense, including equipment rentals, for the years ended December 31, 2016, 2015 and 2014 was $3.1 million (unaudited), $2.7 million (unaudited) and $3.5 million, respectively.