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Leases
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases

NOTE 5 – LEASES

The Company has operating leases for facilities and equipment which have remaining terms ranging from 1 to 14 years. The leases may include options to extend the lease periods for up to 5 years at rates approximating market rates and/or options to terminate the leases within 1 year. The leases may include a residual value guarantee or a responsibility to return the property to its original state of use. A limited number of leases contain provisions that provide for rental increases based on consumer price indices. The change in rent expense resulting from changes in these indices are included within variable rent.

Operating leases consisted of the following at June 30, 2020 and December 31, 2019:

 

 

 

June 30, 2020

 

 

December 31, 2019

 

Real estate facilities

 

$

182,437

 

 

$

162,150

 

Office equipment

 

 

2,458

 

 

 

1,595

 

Other

 

 

935

 

 

 

935

 

 

 

 

185,830

 

 

 

164,680

 

Amortization of right-of-use assets

 

 

(46,641

)

 

 

(30,715

)

Total operating lease right-of-use assets

 

$

139,189

 

 

$

133,965

 

 

Rent expense is recognized on a straight-line basis over the lease term.  Rent expense consists of the following:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2020

 

 

June 30, 2019

 

 

June 30, 2020

 

 

June 30, 2019

 

Operating lease costs

 

$

9,444

 

 

$

8,610

 

 

$

18,770

 

 

$

17,505

 

Short-term lease costs

 

 

442

 

 

 

322

 

 

 

873

 

 

 

1,003

 

Variable lease costs

 

 

1

 

 

 

172

 

 

 

1

 

 

 

184

 

Total rent expense

 

$

9,887

 

 

$

9,104

 

 

$

19,644

 

 

$

18,692

 

 

Future minimum lease payments under non-cancellable leases as of June 30, 2020 were as follows:

 

June 30, 2021

 

$

37,255

 

June 30, 2022

 

 

38,545

 

June 30, 2023

 

 

28,364

 

June 29, 2024

 

 

18,955

 

June 29, 2025

 

 

12,619

 

Thereafter

 

 

36,327

 

Total future minimum lease payments

 

 

172,065

 

Less:  Interest

 

 

(17,116

)

Total operating lease liabilities

 

$

154,949

 

 

 

 

 

 

Operating lease liabilities - current

 

$

33,028

 

Operating lease liabilities - non-current

 

 

121,921

 

Total operating lease liabilities

 

$

154,949

 

 

Other information related to operating leases is as follows:

 

 

June 30, 2020

 

 

June 30, 2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

19,086

 

 

$

18,594

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

$

22,721

 

 

$

14,896

 

Weighted-average remaining lease term - operating leases

 

 

5.9

 

 

 

5.1

 

Weighted-average discount rate - operating leases

 

 

2.9

%

 

 

3.7

%

 

At June 30, 2020, the Company had additional operating leases that have not yet commenced with a potential lease liability of $129.1 million.  Such operating leases are anticipated to commence, where we take possession of the property and commence any required buildout, over the next three years, with lease terms of 10 years to 17 years.