XML 21 R10.htm IDEA: XBRL DOCUMENT v3.20.2
Leases
9 Months Ended
Sep. 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 September 30, 2020 and December 31, 2019:

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Real estate facilities

 

$

160,299

 

 

$

162,150

 

Office equipment

 

 

1,898

 

 

 

1,595

 

Other

 

 

496

 

 

 

935

 

 

 

 

162,693

 

 

 

164,680

 

Amortization of right-of-use assets

 

 

(24,111

)

 

 

(30,715

)

Total operating lease right-of-use assets

 

$

138,582

 

 

$

133,965

 

 

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

 

September 30, 2020

 

 

September 30, 2019

 

Operating lease costs

 

$

9,605

 

 

$

9,256

 

 

$

28,375

 

 

$

26,762

 

Short-term lease costs

 

 

276

 

 

 

552

 

 

 

1,149

 

 

 

1,555

 

Variable lease costs

 

 

1

 

 

 

(180

)

 

 

2

 

 

 

4

 

Total rent expense

 

$

9,882

 

 

$

9,628

 

 

$

29,526

 

 

$

28,321

 

 

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

 

September 30, 2021

 

$

38,064

 

September 30, 2022

 

 

39,286

 

September 30, 2023

 

 

24,641

 

September 29, 2024

 

 

18,646

 

September 29, 2025

 

 

13,881

 

Thereafter

 

 

40,376

 

Total future minimum lease payments

 

 

174,894

 

Less:  Interest

 

 

(17,339

)

Total operating lease liabilities

 

$

157,555

 

 

 

 

 

 

Operating lease liabilities - current

 

$

33,581

 

Operating lease liabilities - non-current

 

 

123,974

 

Total operating lease liabilities

 

$

157,555

 

 

Other information related to operating leases is as follows:

 

 

 

September 30, 2020

 

 

September 30, 2019

 

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

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

29,248

 

 

$

27,772

 

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

 

$

29,581

 

 

$

28,763

 

Weighted-average remaining lease term - operating leases

 

 

6.0

 

 

 

5.3

 

Weighted-average discount rate - operating leases

 

 

3.4

%

 

 

3.7

%

 

At September 30, 2020, the Company had an additional operating lease that had not yet commenced with a potential lease liability of $117.4 million.  The operating lease with lease a term of 17 years, is anticipated to commence in 2022 when the Company takes possession of the property upon completion of buildouts.