XML 53 R12.htm IDEA: XBRL DOCUMENT v3.19.3
Leases
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases

(5) Leases

 

The Company leases office space in the United States and foreign locations under operating lease agreements. Office space is the Company’s only material underlying asset class under operating lease agreements. The Company has no material finance leases.

 

Under the Company’s office space lease agreements, fixed payments and variable payments that depend on an index or rate are typically comprised of base rent and parking fees. Additionally, under these agreements the Company is generally responsible for certain variable payments that typically include certain taxes, utilities and maintenance costs, and other fees. These variable lease payments are generally based on the Company’s occupation or usage percentages and are subject to adjustments by the lessor.

 

As of September 30, 2019, the Company’s ROU asset and total lease liability balances were comprised of $72.2 million and $98.9 million, respectively, for leases in the United States and $14.8 million and $15.7 million, respectively, for foreign leases. The Company’s most significant lease is for its corporate headquarters, in which it leases approximately 214,000 square feet of office space at a location in Northern Virginia. The ROU asset and total lease liability balances related to the Company’s corporate headquarters lease were $67.8 million and $94.4 million, respectively, as of September 30, 2019. The lease agreement for the Company’s corporate headquarters location is set to expire in December 2030, with an option for the Company to extend the term for an additional five or 10 consecutive years. The Company is currently not reasonably certain it will exercise this renewal option and therefore has not included the renewal option in the lease term. Several of the Company’s remaining leases also contain options for renewal or options to terminate all or a portion of the leased space. The Company continually assesses the likelihood of exercising these options and recognizes an option as part of its ROU assets and lease liabilities if and when it is reasonably certain that it will exercise the option.

 

The following table presents the Company’s total lease cost and other lease details for the three and nine months ended September 30, 2019 (in thousands, except years and discount rates):

 

 

 

September 30, 2019

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

Lease cost:

 

 

 

 

 

 

 

 

Operating lease cost

 

$

3,704

 

 

$

11,311

 

Short-term lease cost

 

 

397

 

 

 

1,612

 

Variable lease cost

 

 

372

 

 

 

967

 

Total lease cost

 

$

4,473

 

 

$

13,890

 

Other information:

 

 

 

 

 

 

 

 

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

 

$

3,854

 

 

$

11,743

 

ROU assets obtained in exchange for new operating lease liabilities

 

$

0

 

 

$

5,016

 

Weighted-average remaining lease term in years – operating leases

 

 

10.2

 

 

 

10.2

 

Weighted-average discount rate – operating leases

 

 

6.0

%

 

 

6.0

%

 

The following table presents the maturities of the Company’s operating lease liabilities as of September 30, 2019 (in thousands):

 

For the period ended September 30,

 

 

 

 

2020

 

$

15,855

 

2021

 

 

15,699

 

2022

 

 

15,141

 

2023

 

 

15,416

 

2024

 

 

13,550

 

Thereafter

 

 

79,072

 

Total lease payments

 

 

154,733

 

Less: imputed interest

 

 

(40,130

)

Total

 

$

114,603

 

 

 

 

 

 

Reported as:

 

 

 

 

Current operating lease liabilities

 

$

9,312

 

Non-current operating lease liabilities

 

 

105,291

 

Total

 

$

114,603

 

 

The following table shows future minimum payments under noncancellable operating leases and purchase agreements with initial terms of greater than one year, based on the expected due dates of the various installments as of December 31, 2018 (in thousands), as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, prior to the adoption of ASU 2016-02:

 

 

 

Operating Leases

 

Year

 

Amount

 

2019

 

$

27,768

 

2020

 

 

25,583

 

2021

 

 

18,573

 

2022

 

 

15,694

 

2023

 

 

15,607

 

Thereafter

 

 

92,347

 

 

 

$

195,572