XML 103 R14.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

LEASES LEASES | 12 Months Ended
--- | ---
Dec. 31, 2019
Leases [Abstract] |
LEASES | LEASES Our leases consist primarily of operating real estate leases for office space and data centers in the markets in which we conduct business. We also have operating and finance leases for computer and other equipment. Many of our leases include escalating rental payments and incentives, as well as termination and renewal options. Certain of our lease agreements provide that we pay the cost of property taxes, insurance and maintenance. As described in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies," we adopted ASU 2016-02 on January 1, 2019. Unless otherwise indicated, the following information in this footnote applies only to periods after December 31, 2018. The effects of adopting ASU 2016-02 on our balance sheet as of January 1, 2019 are set forth in the table below. Adoption did not have a material effect on any line items in our consolidated statement of income or on our cash flows from operating activities, investing activities or financing activities included in our consolidated statement of cash flows. As of December 31, 2019 and January 1, 2019, right-of-use assets and lease liabilities consisted of the following:
|  | Balance Sheet Location |  | December 31, 2019 |  | January 1, 2019
|  |  |  | (in thousands)
Assets: |  |  |  |  |  |
Operating lease right-of-use assets: |  |  |  |  |  |
Real estate |  | Other noncurrent assets |  | $ | 355,063 |  |  | $ | 231,720 |
Computer equipment |  | Other noncurrent assets |  | 80,427 |  |  | — |
Other |  | Other noncurrent assets |  | 1,310 |  |  | 4,259 |
Total operating lease right-of-use-assets |  |  |  | $ | 436,800 |  |  | $ | 235,979 |
Finance lease right-of-use assets: |  |  |  |  |  |
Computer equipment |  | Property and equipment, net |  | $ | 21,901 |  |  | $ | — |
Other |  | Property and equipment, net |  | 4,808 |  |  | — |
|  |  |  | 26,709 |  |  | — |
Less accumulated depreciation: |  |  |  |  |  |
Computer equipment |  | Property and equipment, net |  | (2,190 | ) |  | — |
Other |  | Property and equipment, net |  | (234 | ) |  | — |
Total accumulated depreciation |  |  |  | (2,424 | ) |  | — |
Total finance lease right-of-use assets |  |  |  | 24,285 |  |  | — |
Total right-of-use assets(1) |  |  |  | $ | 461,085 |  |  | $ | 235,979 |
Liabilities: |  |  |  |  |  |
Operating lease liabilities (current) |  | Accounts payable and accrued liabilities |  | $ | 88,812 |  |  | $ | 37,339 |
Operating lease liabilities (noncurrent) |  | Other noncurrent liabilities |  | 397,488 |  |  | 236,697 |
Finance lease liabilities (current) |  | Current portion of long-term debt |  | 6,570 |  |  | — |
Finance lease liabilities (noncurrent) |  | Long-term debt |  | 26,426 |  |  | — |
Total lease liabilities |  |  |  | $ | 519,296 |  |  | $ | 274,036 |
(1) Approximately 82% of our right-of-use assets are located in the United States. The weighted-average remaining lease term for operating and finance leases at December 31, 2019 was 7.4 years and 5.1 years, respectively. As of December 31, 2019, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 4.1% and 2.8%, respectively. As of December 31, 2019, maturities of lease liabilities were as follows:
|  | Operating Leases |  | Finance Leases
|  | (in thousands)
Years ending December 31, |  |  |  |
2020 |  | $ | 106,787 |  |  | $ | 7,402 |
2021 |  | 99,196 |  |  | 7,157 |
2022 |  | 87,500 |  |  | 7,123 |
2023 |  | 58,073 |  |  | 6,728 |
2024 |  | 47,994 |  |  | 6,728 |
2025 and thereafter |  | 177,119 |  |  | 203 |
Total lease payments(1) |  | 576,669 |  |  | 35,341 |
Imputed interest |  | (90,369 | ) |  | (2,345 | )
Total lease liabilities |  | $ | 486,300 |  |  | $ | 32,996 |
(1) Total operating lease payments did not include approximately $64 million for operating leases that had not yet commenced at December 31, 2019. We expect the lease commencement dates for these leases to occur in 2020. Operating lease costs in our consolidated statement of income for the year ended December 31, 2019 were $85.9 million, including $71.0 million in selling, general and administrative expenses and $14.9 million in cost of services. Total lease costs for the year ended December 31, 2019 include variable lease costs of approximately $19.1 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs and lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities for the year ended December 31, 2019 was $70.4 million, which is included as a component of cash provided by operating activities in the consolidated statement of cash flows. Operating lease liabilities arising from obtaining new or modified right-of-use assets, net of reductions resulting from certain lease modifications, were approximately $28.4 million for the year ended December 31, 2019. In connection with the Merger, we acquired right-of-use assets and assumed lease liabilities of $256.2 million and $272.0 million, respectively. Future minimum payments at December 31, 2018 for noncancelable operating leases were as follows (in thousands):
Years ending December 31: |  |
2019 |  | $ | 50,095 |
2020 |  | 47,700 |
2021 |  | 40,035 |
2022 |  | 37,055 |
2023 |  | 33,298 |
2024 and thereafter |  | 225,225 |
Total future minimum payments(1) |  | $ | 433,408 |
(1) Future minimum lease payments included approximately $70 million for operating leases that had not commenced at December 31, 2018. Rent expense on all operating leases for the years ended December 31, 2018 and 2017 was $47.1 million and $44.7 million, respectively. During the year ended December 31, 2017, we sold our operating facility in Jeffersonville, Indiana for $37.5 million and simultaneously leased the property back for an initial term of 20 years, followed by four optional renewal terms of five years. The arrangement met the criteria to be treated as a sale for accounting purposes, and as a result, we derecognized the associated property. There was no resulting gain or loss on the sale because the proceeds received were equal to the carrying amount of the property.
LEASES | LEASES Our leases consist primarily of operating real estate leases for office space and data centers in the markets in which we conduct business. We also have operating and finance leases for computer and other equipment. Many of our leases include escalating rental payments and incentives, as well as termination and renewal options. Certain of our lease agreements provide that we pay the cost of property taxes, insurance and maintenance. As described in "Note 1—Basis of Presentation and Summary of Significant Accounting Policies," we adopted ASU 2016-02 on January 1, 2019. Unless otherwise indicated, the following information in this footnote applies only to periods after December 31, 2018. The effects of adopting ASU 2016-02 on our balance sheet as of January 1, 2019 are set forth in the table below. Adoption did not have a material effect on any line items in our consolidated statement of income or on our cash flows from operating activities, investing activities or financing activities included in our consolidated statement of cash flows. As of December 31, 2019 and January 1, 2019, right-of-use assets and lease liabilities consisted of the following:
|  | Balance Sheet Location |  | December 31, 2019 |  | January 1, 2019
|  |  |  | (in thousands)
Assets: |  |  |  |  |  |
Operating lease right-of-use assets: |  |  |  |  |  |
Real estate |  | Other noncurrent assets |  | $ | 355,063 |  |  | $ | 231,720 |
Computer equipment |  | Other noncurrent assets |  | 80,427 |  |  | — |
Other |  | Other noncurrent assets |  | 1,310 |  |  | 4,259 |
Total operating lease right-of-use-assets |  |  |  | $ | 436,800 |  |  | $ | 235,979 |
Finance lease right-of-use assets: |  |  |  |  |  |
Computer equipment |  | Property and equipment, net |  | $ | 21,901 |  |  | $ | — |
Other |  | Property and equipment, net |  | 4,808 |  |  | — |
|  |  |  | 26,709 |  |  | — |
Less accumulated depreciation: |  |  |  |  |  |
Computer equipment |  | Property and equipment, net |  | (2,190 | ) |  | — |
Other |  | Property and equipment, net |  | (234 | ) |  | — |
Total accumulated depreciation |  |  |  | (2,424 | ) |  | — |
Total finance lease right-of-use assets |  |  |  | 24,285 |  |  | — |
Total right-of-use assets(1) |  |  |  | $ | 461,085 |  |  | $ | 235,979 |
Liabilities: |  |  |  |  |  |
Operating lease liabilities (current) |  | Accounts payable and accrued liabilities |  | $ | 88,812 |  |  | $ | 37,339 |
Operating lease liabilities (noncurrent) |  | Other noncurrent liabilities |  | 397,488 |  |  | 236,697 |
Finance lease liabilities (current) |  | Current portion of long-term debt |  | 6,570 |  |  | — |
Finance lease liabilities (noncurrent) |  | Long-term debt |  | 26,426 |  |  | — |
Total lease liabilities |  |  |  | $ | 519,296 |  |  | $ | 274,036 |
(1) Approximately 82% of our right-of-use assets are located in the United States. The weighted-average remaining lease term for operating and finance leases at December 31, 2019 was 7.4 years and 5.1 years, respectively. As of December 31, 2019, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 4.1% and 2.8%, respectively. As of December 31, 2019, maturities of lease liabilities were as follows:
|  | Operating Leases |  | Finance Leases
|  | (in thousands)
Years ending December 31, |  |  |  |
2020 |  | $ | 106,787 |  |  | $ | 7,402 |
2021 |  | 99,196 |  |  | 7,157 |
2022 |  | 87,500 |  |  | 7,123 |
2023 |  | 58,073 |  |  | 6,728 |
2024 |  | 47,994 |  |  | 6,728 |
2025 and thereafter |  | 177,119 |  |  | 203 |
Total lease payments(1) |  | 576,669 |  |  | 35,341 |
Imputed interest |  | (90,369 | ) |  | (2,345 | )
Total lease liabilities |  | $ | 486,300 |  |  | $ | 32,996 |
(1) Total operating lease payments did not include approximately $64 million for operating leases that had not yet commenced at December 31, 2019. We expect the lease commencement dates for these leases to occur in 2020. Operating lease costs in our consolidated statement of income for the year ended December 31, 2019 were $85.9 million, including $71.0 million in selling, general and administrative expenses and $14.9 million in cost of services. Total lease costs for the year ended December 31, 2019 include variable lease costs of approximately $19.1 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs and lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities for the year ended December 31, 2019 was $70.4 million, which is included as a component of cash provided by operating activities in the consolidated statement of cash flows. Operating lease liabilities arising from obtaining new or modified right-of-use assets, net of reductions resulting from certain lease modifications, were approximately $28.4 million for the year ended December 31, 2019. In connection with the Merger, we acquired right-of-use assets and assumed lease liabilities of $256.2 million and $272.0 million, respectively. Future minimum payments at December 31, 2018 for noncancelable operating leases were as follows (in thousands):
Years ending December 31: |  |
2019 |  | $ | 50,095 |
2020 |  | 47,700 |
2021 |  | 40,035 |
2022 |  | 37,055 |
2023 |  | 33,298 |
2024 and thereafter |  | 225,225 |
Total future minimum payments(1) |  | $ | 433,408 |
(1) Future minimum lease payments included approximately $70 million for operating leases that had not commenced at December 31, 2018. Rent expense on all operating leases for the years ended December 31, 2018 and 2017 was $47.1 million and $44.7 million, respectively. During the year ended December 31, 2017, we sold our operating facility in Jeffersonville, Indiana for $37.5 million and simultaneously leased the property back for an initial term of 20 years, followed by four optional renewal terms of five years. The arrangement met the criteria to be treated as a sale for accounting purposes, and as a result, we derecognized the associated property. There was no resulting gain or loss on the sale because the proceeds received were equal to the carrying amount of the property.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration