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Leases
9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases

NOTE 5 – LEASES

The Company has operating leases for facilities and equipment which have remaining terms ranging from 1 to 12 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, 2021:

 

 

September 30, 2021

 

 

December 31, 2020

 

Real estate facilities

 

$

156,020

 

 

$

157,010

 

Office equipment

 

 

2,117

 

 

 

1,864

 

Other

 

 

690

 

 

 

580

 

 

 

 

158,827

 

 

 

159,454

 

Amortization of right-of-use assets

 

 

(54,904

)

 

 

(32,322

)

Total operating lease right-of-use assets

 

$

103,923

 

 

$

127,132

 

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, 2021

 

 

September 30, 2020

 

 

September 30, 2021

 

 

September 30, 2020

 

Operating lease costs

 

$

8,557

 

 

$

9,605

 

 

$

26,004

 

 

$

28,375

 

Short-term lease costs

 

 

91

 

 

 

276

 

 

 

327

 

 

 

1,149

 

Variable lease costs

 

 

13

 

 

 

1

 

 

 

32

 

 

 

2

 

Total rent expense

 

$

8,661

 

 

$

9,882

 

 

$

26,363

 

 

$

29,526

 

 

Future minimum lease payments under non-cancellable leases as of September 30, 2021 were as follows:

September 30, 2022

 

$

38,473

 

September 30, 2023

 

 

24,552

 

September 30, 2024

 

 

18,476

 

September 30, 2025

 

 

13,622

 

September 30, 2026

 

 

12,606

 

Thereafter

 

 

27,346

 

Total future minimum lease payments

 

 

135,075

 

Less:  Interest

 

 

(12,125

)

Total operating lease liabilities

 

$

122,950

 

 

 

 

 

 

Operating lease liabilities - current

 

$

35,418

 

Operating lease liabilities - non-current

 

 

87,532

 

Total operating lease liabilities

 

$

122,950

 

Other information related to operating leases is as follows:

 

 

September 30, 2021

 

 

September 30, 2020

 

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

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

18,743

 

 

$

29,248

 

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

 

$

969

 

 

$

29,581

 

Weighted-average remaining lease term - operating leases

 

 

5.7

 

 

 

6.0

 

Weighted-average discount rate - operating leases

 

 

3.3

%

 

 

3.4

%

At September 30, 2021, the Company had an additional operating lease that had not yet commenced with a potential lease liability of $113.3 million.  The operating lease has a term of approximately 18 years and is now anticipated to commence on January 1, 2022 (previously March 1, 2022) when the Company takes possession of the property upon completion of buildouts.