XML 170 R19.htm IDEA: XBRL DOCUMENT

Lease Accounting (Notes)

12 Months Ended

Dec. 31, 2019

Arrangements wherein we are the lessee:

We have operating and finance leases for land, warehouses, offices, vehicles, and equipment with remaining lease terms ranging from 1 to 33 years. Many of our leases include one or more options to extend the lease term from 1 to 10 years that may be exercised at our sole discretion. Additionally, many of our leases for vehicles and equipment include options to purchase the underlying asset at or before expiration of the lease agreement. Rental payments are generally fixed over the term of the lease agreement with the exception of certain equipment leases for which the rental payment may vary based on usage of the asset. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As of December 31, 2019, the rights and obligations with respect to leases which have been signed but have not yet commenced are not material to our financial position or results of operations.

The components of lease expense were as follows (in thousands):



	Year Ended December 31, 2019
Components of lease expense:
Operating lease cost (a)	$	29,205
Financing lease cost:
Depreciation	11,252
Interest on lease liabilities	2,941
Sublease income (b)	(499		)
Net lease expense	$	42,899

^(a)Includes short-term lease and variable lease costs, which are immaterial.

^(b) Sublease income relates to two warehouses in the U.S. and New Zealand.

For the years ended December 31, 2018 and 2017, rent expense of $36.7 million and $42.3 million, respectively, was recorded pursuant to ASC 840, Leases.

Other information related to leases is as follows:



	Year Ended December 31, 2019

Supplemental Cash Flow Information (in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(24,992	)
Operating cash flows from finance leases	$	(2,941	)
Financing cash flows from finance leases	$	(13,339	)
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	12,492
Finance leases	$	30,416
Weighted-average remaining lease term (years)
Operating leases	6.1
Finance leases	4.4
Weighted-average discount rate
Operating leases	4.1		%
Finance leases	5.5		%

Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows (in thousands):



Years ending December 31,	Operating Lease Payments			Finance Lease Payments			Total Lease Payments
2020	$	23,399		$	18,534		$	41,933
2021	12,306			17,217			29,523
2022	9,622			11,987			21,609
2023	8,039			8,538			16,577
2024	4,596			4,827			9,423
Thereafter	14,296			5,386			19,682
Total future minimum lease payments	72,258			66,489			138,747
Less: Interest	(9,737		)	(8,249		)	(17,986		)
Total future minimum lease payments less interest	$	62,521		$	58,240		$	120,761

Reported as of December 31, 2019
Accounts payable and accrued expenses	$	179		$	70		$	249
Operating lease obligations	62,342			—			62,342
Finance lease obligations	—			58,170			58,170
Total lease obligations	$	62,521		$	58,240		$	120,761

Lease Accounting

Arrangements wherein we are the lessee:

As of December 31, 2019, the rights and obligations with respect to leases which have been signed but have not yet commenced are not material to our financial position or results of operations.

The components of lease expense were as follows (in thousands):



	Year Ended December 31, 2019
Components of lease expense:
Operating lease cost (a)	$	29,205
Financing lease cost:
Depreciation	11,252
Interest on lease liabilities	2,941
Sublease income (b)	(499		)
Net lease expense	$	42,899

^(a)Includes short-term lease and variable lease costs, which are immaterial.

^(b) Sublease income relates to two warehouses in the U.S. and New Zealand.

For the years ended December 31, 2018 and 2017, rent expense of $36.7 million and $42.3 million, respectively, was recorded pursuant to ASC 840, Leases.

Other information related to leases is as follows:



	Year Ended December 31, 2019

Supplemental Cash Flow Information (in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(24,992	)
Operating cash flows from finance leases	$	(2,941	)
Financing cash flows from finance leases	$	(13,339	)
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	12,492
Finance leases	$	30,416
Weighted-average remaining lease term (years)
Operating leases	6.1
Finance leases	4.4
Weighted-average discount rate
Operating leases	4.1		%
Finance leases	5.5		%

Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows (in thousands):



Years ending December 31,	Operating Lease Payments			Finance Lease Payments			Total Lease Payments
2020	$	23,399		$	18,534		$	41,933
2021	12,306			17,217			29,523
2022	9,622			11,987			21,609
2023	8,039			8,538			16,577
2024	4,596			4,827			9,423
Thereafter	14,296			5,386			19,682
Total future minimum lease payments	72,258			66,489			138,747
Less: Interest	(9,737		)	(8,249		)	(17,986		)
Total future minimum lease payments less interest	$	62,521		$	58,240		$	120,761

Reported as of December 31, 2019
Accounts payable and accrued expenses	$	179		$	70		$	249
Operating lease obligations	62,342			—			62,342
Finance lease obligations	—			58,170			58,170
Total lease obligations	$	62,521		$	58,240		$	120,761

Lease Accounting

Arrangements wherein we are the lessee:

As of December 31, 2019, the rights and obligations with respect to leases which have been signed but have not yet commenced are not material to our financial position or results of operations.

The components of lease expense were as follows (in thousands):



	Year Ended December 31, 2019
Components of lease expense:
Operating lease cost (a)	$	29,205
Financing lease cost:
Depreciation	11,252
Interest on lease liabilities	2,941
Sublease income (b)	(499		)
Net lease expense	$	42,899

^(a)Includes short-term lease and variable lease costs, which are immaterial.

^(b) Sublease income relates to two warehouses in the U.S. and New Zealand.

For the years ended December 31, 2018 and 2017, rent expense of $36.7 million and $42.3 million, respectively, was recorded pursuant to ASC 840, Leases.

Other information related to leases is as follows:



	Year Ended December 31, 2019

Supplemental Cash Flow Information (in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(24,992	)
Operating cash flows from finance leases	$	(2,941	)
Financing cash flows from finance leases	$	(13,339	)
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	12,492
Finance leases	$	30,416
Weighted-average remaining lease term (years)
Operating leases	6.1
Finance leases	4.4
Weighted-average discount rate
Operating leases	4.1		%
Finance leases	5.5		%

Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows (in thousands):



Years ending December 31,	Operating Lease Payments			Finance Lease Payments			Total Lease Payments
2020	$	23,399		$	18,534		$	41,933
2021	12,306			17,217			29,523
2022	9,622			11,987			21,609
2023	8,039			8,538			16,577
2024	4,596			4,827			9,423
Thereafter	14,296			5,386			19,682
Total future minimum lease payments	72,258			66,489			138,747
Less: Interest	(9,737		)	(8,249		)	(17,986		)
Total future minimum lease payments less interest	$	62,521		$	58,240		$	120,761

Reported as of December 31, 2019
Accounts payable and accrued expenses	$	179		$	70		$	249
Operating lease obligations	62,342			—			62,342
Finance lease obligations	—			58,170			58,170
Total lease obligations	$	62,521		$	58,240		$	120,761

Arrangements wherein we are the lessor:

We receive lease income as the lessor for certain buildings and warehouses or space within a warehouse. The remaining term on existing leases ranges from 1 to 9 years. Lease income is generally fixed over the duration of the contract and each lease contract contains clauses permitting extension or termination. Lease incentives and options for purchase of the leased asset by the lessee are generally not included.

The Company is party to operating leases only and currently does not have sales-type or direct financing leases. Lease income is included within “Rent, storage and warehouse services” in the accompanying Consolidated Statements of Operations as denoted in Note 27 “Revenues from Contracts with Customers”.

Property, buildings and equipment underlying operating leases is included in “Land” and “Buildings and improvements” on the accompanying Consolidated Balance Sheets. The gross value and net value of these assets was $786.4 million and $600.1 million, for Land and Buildings and improvements, respectively, as of December 31, 2019. Depreciation expense for such assets was $23.1 million for the year ended December 31, 2019.

Future minimum lease payments due from our customers on leases as of December 31, 2019 were as follows (in thousands):



	Operating Leases
Year ending December 31,	Operating Leases
2020	$	16,736
2021	13,223
2022	11,244
2023	9,782
2024	7,274
Thereafter	18,920
Total	$	77,179