XML 32 R21.htm IDEA: XBRL DOCUMENT
v3.24.2

Leases | 6 Months Ended
--- | ---
Jun. 30, 2024
Leases [Abstract] |
Leases | Leases The Company’s leasing activities are primarily for facilities under cancelable and non-cancelable lease agreements expiring during 2024 and through 2038. These facilities support our executive and administrative activities, sales, systems support, operations, and other functions. The Company also has leases for office equipment and other assets, which are not significant. Certain of these lease agreements include (i) renewal options to extend the lease term for up to ten years and/or (ii) options to terminate the agreement within one year. Additionally, certain of the Company’s lease agreements provide standard recurring escalations of lease payments for, among other things, increases in a lessor’s maintenance costs and taxes. Under some lease agreements, the Company may be entitled to allowances, free rent, lessor-financed tenant improvements and other incentives. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company subleases certain office space that it does not intend to occupy. Such sublease arrangements expire during 2024 and through 2032 and primarily relate to facilities in Arlington, Virginia. Certain of the Company’s sublease agreements: (i) include renewal and termination options; (ii) provide for customary escalations of lease payments in the normal course of business; and (iii) grant the subtenant certain allowances, free rent, Gartner-financed tenant improvements and other incentives. All of the Company’s leasing and subleasing activity is recognized in Selling, general and administrative expense in the accompanying Condensed Consolidated Statements of Operations. The table below presents the Company’s net lease cost and certain other information related to the Company’s leasing activities as of and for the periods indicated (dollars in thousands).
|  | Three Months Ended | Six Months Ended
|  | June 30, | June 30,
Description: |  | 2024 |  | 2023 |  | 2024 |  | 2023
Operating lease cost (1) |  | $ | 25,656 |  |  | $ | 28,567 |  |  | $ | 51,559 |  |  | $ | 57,366 |
Lease cost (2) |  | 5,073 |  |  | 5,560 |  |  | 10,704 |  |  | 10,280 |
Sublease income |  | (11,807) |  |  | (13,284) |  |  | (23,689) |  |  | (25,925) |
Total lease cost, net (3) (4) |  | $ | 18,922 |  |  | $ | 20,843 |  |  | $ | 38,574 |  |  | $ | 41,721 |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 38,787 |  |  | $ | 35,194 |  |  | $ | 72,836 |  |  | $ | 70,142 |
Cash receipts from sublease arrangements |  | $ | 11,984 |  |  | $ | 12,779 |  |  | $ | 23,094 |  |  | $ | 25,218 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | $ | 3,944 |  |  | $ | 6,344 |  |  | $ | 10,735 |  |  | $ | 7,991 |
(1)Included in operating lease cost was $9.2 million and $10.8 million for the three months ended June 30, 2024 and 2023, respectively, and $18.4 million and $21.4 million for the six months ended June 30, 2024 and 2023, respectively, for costs related to subleasing activities. (2)These amounts are primarily variable lease and nonlease costs that are not fixed at the lease commencement date or are dependent on something other than an index or a rate. (3)The Company did not capitalize any operating lease costs during any of the periods presented. (4)Amount excludes impairment charges on lease related assets, as discussed below. The table below indicates where the discounted operating lease payments from the above table are classified in the accompanying Condensed Consolidated Balance Sheets (in thousands).
|  | June 30, |  | December 31,
Description: |  | 2024 |  | 2023
Accounts payable and accrued liabilities |  | $ | 92,567 |  |  | $ | 98,493 |
Operating lease liabilities |  | 471,553 |  |  | 513,406 |
Total operating lease liabilities included in the Condensed Consolidated Balance Sheets |  | $ | 564,120 |  |  | $ | 611,899 |
As a result and in consideration of the changing nature of the Company’s use of office space, the Company continues to evaluate its existing real estate lease portfolio. In connection with this evaluation, the Company reviewed certain of its right-of-use assets and related other long-lived assets for impairment under ASC 360. As a result of the evaluation, the Company recognized impairment losses during the three months ended June 30, 2023 of $10.0 million, and $0.5 million and $18.7 million for the six months ended June 30, 2024 and 2023, respectively, which are included as a component of Selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. The impairment losses recorded include $7.1 million related to right-of-use assets and $2.9 million related to other long-lived assets, primarily leasehold improvements, for the three months ended June 30, 2023. The impairment losses recorded include $0.4 million and $5.3 million related to right-of-use assets and $0.1 million and $13.4 million related to other long-lived assets, primarily leasehold improvements, for the six months ended June 30, 2024 and 2023, respectively. The fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair values include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods and discount rates that reflect the level of risk associated with receiving future cash flows.
Leases | Leases The Company’s leasing activities are primarily for facilities under cancelable and non-cancelable lease agreements expiring during 2024 and through 2038. These facilities support our executive and administrative activities, sales, systems support, operations, and other functions. The Company also has leases for office equipment and other assets, which are not significant. Certain of these lease agreements include (i) renewal options to extend the lease term for up to ten years and/or (ii) options to terminate the agreement within one year. Additionally, certain of the Company’s lease agreements provide standard recurring escalations of lease payments for, among other things, increases in a lessor’s maintenance costs and taxes. Under some lease agreements, the Company may be entitled to allowances, free rent, lessor-financed tenant improvements and other incentives. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company subleases certain office space that it does not intend to occupy. Such sublease arrangements expire during 2024 and through 2032 and primarily relate to facilities in Arlington, Virginia. Certain of the Company’s sublease agreements: (i) include renewal and termination options; (ii) provide for customary escalations of lease payments in the normal course of business; and (iii) grant the subtenant certain allowances, free rent, Gartner-financed tenant improvements and other incentives. All of the Company’s leasing and subleasing activity is recognized in Selling, general and administrative expense in the accompanying Condensed Consolidated Statements of Operations. The table below presents the Company’s net lease cost and certain other information related to the Company’s leasing activities as of and for the periods indicated (dollars in thousands).
|  | Three Months Ended | Six Months Ended
|  | June 30, | June 30,
Description: |  | 2024 |  | 2023 |  | 2024 |  | 2023
Operating lease cost (1) |  | $ | 25,656 |  |  | $ | 28,567 |  |  | $ | 51,559 |  |  | $ | 57,366 |
Lease cost (2) |  | 5,073 |  |  | 5,560 |  |  | 10,704 |  |  | 10,280 |
Sublease income |  | (11,807) |  |  | (13,284) |  |  | (23,689) |  |  | (25,925) |
Total lease cost, net (3) (4) |  | $ | 18,922 |  |  | $ | 20,843 |  |  | $ | 38,574 |  |  | $ | 41,721 |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 38,787 |  |  | $ | 35,194 |  |  | $ | 72,836 |  |  | $ | 70,142 |
Cash receipts from sublease arrangements |  | $ | 11,984 |  |  | $ | 12,779 |  |  | $ | 23,094 |  |  | $ | 25,218 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | $ | 3,944 |  |  | $ | 6,344 |  |  | $ | 10,735 |  |  | $ | 7,991 |
(1)Included in operating lease cost was $9.2 million and $10.8 million for the three months ended June 30, 2024 and 2023, respectively, and $18.4 million and $21.4 million for the six months ended June 30, 2024 and 2023, respectively, for costs related to subleasing activities. (2)These amounts are primarily variable lease and nonlease costs that are not fixed at the lease commencement date or are dependent on something other than an index or a rate. (3)The Company did not capitalize any operating lease costs during any of the periods presented. (4)Amount excludes impairment charges on lease related assets, as discussed below. The table below indicates where the discounted operating lease payments from the above table are classified in the accompanying Condensed Consolidated Balance Sheets (in thousands).
|  | June 30, |  | December 31,
Description: |  | 2024 |  | 2023
Accounts payable and accrued liabilities |  | $ | 92,567 |  |  | $ | 98,493 |
Operating lease liabilities |  | 471,553 |  |  | 513,406 |
Total operating lease liabilities included in the Condensed Consolidated Balance Sheets |  | $ | 564,120 |  |  | $ | 611,899 |
As a result and in consideration of the changing nature of the Company’s use of office space, the Company continues to evaluate its existing real estate lease portfolio. In connection with this evaluation, the Company reviewed certain of its right-of-use assets and related other long-lived assets for impairment under ASC 360. As a result of the evaluation, the Company recognized impairment losses during the three months ended June 30, 2023 of $10.0 million, and $0.5 million and $18.7 million for the six months ended June 30, 2024 and 2023, respectively, which are included as a component of Selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. The impairment losses recorded include $7.1 million related to right-of-use assets and $2.9 million related to other long-lived assets, primarily leasehold improvements, for the three months ended June 30, 2023. The impairment losses recorded include $0.4 million and $5.3 million related to right-of-use assets and $0.1 million and $13.4 million related to other long-lived assets, primarily leasehold improvements, for the six months ended June 30, 2024 and 2023, respectively. The fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair values include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods and discount rates that reflect the level of risk associated with receiving future cash flows.

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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration