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Operating and Capital Lease Commitments and Total Rental Expense
3 Months Ended
Mar. 31, 2020
Operating and Capital Lease Commitments and Total Rental Expense  
Operating and Capital Lease Commitments and Total Rental Expense

Note 7. Operating and Capital Lease Commitments and Total Rental Expense

 

The Company leases its facilities under various non-cancelable agreements, which require various minimum annual rentals and may also require the payment of normal common area maintenance on the properties.

 

All of the Company’s 493 leases are operating leases with renewal options and are included in right-of-use assets – operating leases, current portion of operating lease obligation and noncurrent operating lease obligation on our consolidated balance sheets.  These assets and liabilities are recognized at the commencement date based on the present value of remaining lease payments over the lease term using the Company’s incremental borrowing rates or implicit rates, when readily determinable. Short-term operating leases which have an initial term of 12 months or less are not recorded on the consolidated balance sheets.

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

2019

 

Lease cost:

 

 

 

 

 

    Operating lease cost

 

$

4,469

 

$

4,881

 

    Short-term lease cost

 

 

1,518

 

 

1,047

 

    Variable lease cost

 

 

294

 

 

16

 

         Total lease cost

 

$

6,281

 

$

5,944

 

 

 

 

 

 

 

 

 

Other Information:

 

 

 

 

 

 

 

    Payments included in the measurement of lease liabilities

 

 

 

 

 

 

 

         Operating cash flows from operating leases

 

$

4,409

 

$

4,819

 

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

 

$

2,191

 

$

1,701

 

    Weighted-average remaining lease term - operating leases

 

 

3.8 years

 

 

2.7 years

 

    Weighted-average discount rate - operating leases

 

 

9.0

%

 

9.0

%

Future minimum lease payments for our operating leases as of March 31, 2020 were as follows:

 

 

 

 

 

 

 

Operating

Fiscal Years

    

Leases

Remaining 2020

    

$

11,833

2021

 

 

12,142

2022

 

 

8,007

2023

 

 

4,760

2024

 

 

2,783

Thereafter

 

 

3,683

Total minimum lease payments

 

 

43,208

Less imputed interest

 

 

(6,576)

Present value of net minimum lease payments

 

 

36,632

Less current portion of operating lease obligation

 

 

(12,741)

Operating lease obligation

 

$

23,891

 

 

 

 

Utilities, property & casualty insurance, and repairs & maintenance expenses have been reclassified to the occupancy line item on the consolidated statements of operations and comprehensive loss. Previously, occupancy consisted of rent, common area maintenance, and real estate tax expenses. Utilities, property & casualty insurance, and repairs & maintenance were part of other operating expenses.