AMN 2017 Annual Report

58 matters for which the Company has established loss contingencies are class actions related to wage and hour claims under California and Federal law. Specifically, among other claims in these lawsuits, it is alleged that certain expense reimbursements should be included in the regular rate of pay for purposes of calculating overtime rates, and that employees were not afforded required breaks or compensated for all time worked. While the Company believes that its wage and hour practices conform with law in all material respects, litigation is always subject to inherent uncertainty, and the Company is not able to reasonably predict if any matter will be resolved in a manner that is materially adverse to the Company beyond the amounts accrued. With regards to outstanding loss contingencies as of December 31, 2017, which are included in accounts payable and accrued expenses in the consolidated balance sheet, the Company believes that such matters will not, either individually or in the aggregate, have a material adverse effect on its business, consolidated financial position, results of operations, or cash flows. (b) Leases The Company leases certain office facilities and equipment under various operating leases. The Company recognizes rent expense on a straight-line basis over the lease term. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of December 31, 2017 are as follows: Operating Leases Years ending December 31, 2018 $ 16,962 2019 16,969 2020 16,913 2021 16,969 2022 16,777 Thereafter 66,439 Total minimum lease payments $ 151,029 Rent expense under operating leases was $20,529, $18,793, and $15,940 for the years ended December 31, 2017, 2016 and 2015, respectively. (13) Quarterly Financial Data (Unaudited) Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Total Year (In thousands, except per share data) Revenue $ 495,169 $ 489,803 $ 494,406 $ 509,076 $ 1,988,454 Gross profit $ 161,776 $ 161,012 $ 159,539 $ 162,092 $ 644,419 Net income $ 32,008 $ 31,255 $ 28,128 $ 41,167 $ 132,558 Net income per share from: Basic $ 0.67 $ 0.65 $ 0.59 $ 0.86 $ 2.77 Diluted $ 0.65 $ 0.63 $ 0.57 $ 0.84 $ 2.68 Net income for the fourth quarter of 2017 included a discrete net tax benefit of $14,039 in connection with the Company's initial analysis of the impact of the Tax Act. See Note (7), “Income Taxes,” for additional information.