NOTE 15: COMMITMENTS AND CONTINGENCIES

Authorized expenditures for construction and other projects unexpended as of June 30, 2015, were approximately $121.6 million.

The University has entered into numerous operating lease agreements to rent, lease, and maintain land, buildings, and equipment, which expire on various dates. In most cases, the University has renewal options on the leased assets for another similar term, and expects that, in the normal course of business, these leases will be replaced by similar leases. Operating lease expense totaled approximately $26.5 million for the year ended June 30, 2015.

The University’s ongoing minimum commitments for operating leases for land, office and clinical buildings, and equipment are as follows:

YEARS ENDING JUNE 30 (in thousands)
LEASE OBLIGATION
   
2016 $ 13,798
2017 9,812
2018 9,151
2019 6,188
2020 5,230
2021-25 11,785
2026-30 4,543
2031-35 2,878
2036-40 823
2041-45 823
2046-50 659
TOTAL $ 65,690

LITIGATION

The University is a party to various legal actions and other claims in the normal course of business. While the outcome cannot be determined at this time, management is of the opinion that the liability, if any, for these legal actions will not have a material effect on the University’s financial position.