XML 38 R22.htm IDEA: XBRL DOCUMENT
v3.19.1

Leases | 3 Months Ended
--- | ---
Mar. 31, 2019
Leases [Abstract] |
Leases | Leases The Company adopted ASU 2016-02 on January 1, 2019, and elected the modified retrospective method of implementation. The standard requires the recognition of ROU assets and lease liabilities for leases, which are defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company has elected the practical expedient which allows for leases with an initial term of 12 months or less to be excluded from recognition on the condensed consolidated statement of financial condition and for which lease expense is recognized on a straight-line basis over the lease term. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. These leases are primarily for corporate office space, datacenters, and technology equipment. The leases have remaining terms of 1 year to 13 years, some of which include options to extend the initial term at the Company's discretion. The lease terms used in calculating ROU assets and lease liabilities include the options to extend the initial term when the Company is reasonably certain of exercising the options. The Company's lease agreements do not contain any material residual value guarantees, restrictions or covenants. In addition to the base rental costs, the Company’s lease agreements for corporate office space generally provide for rent escalations resulting from increased assessments for operating expenses, real estate taxes and other charges. Payments for such reimbursable expenses are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments was incurred. The Company also subleases certain office space and facilities to third parties. The subleases have remaining terms of 1 to 13 years. The Company recognizes sublease income on a straight-line basis over the term of the sublease within Other, net on the condensed consolidated statement of comprehensive income. As the implied discount rate for most of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate on its secured borrowings, which was based on the information available as of the initial transition date, January 1, 2019, in determining the present value of lease payments. Lease assets and liabilities are summarized as follows:
(in thousands) |  | Financial Statement Location |  | March 31, 2019
Operating leases |  |  |  |
Operating lease right-of-use assets |  | Operating lease right-of-use assets |  | $ | 350,423 |
Operating lease liabilities |  | Operating lease liabilities |  | 394,764 |
Finance leases |  |  |  |
Property and equipment, at cost |  | Property, equipment, and capitalized software, net |  | 37,258 |
Accumulated depreciation |  | Property, equipment, and capitalized software, net |  | (17,056 | )
Finance lease liabilities |  | Accounts payable, accrued expenses, and other liabilities |  | 20,648 |
Weighted average remaining lease term and discount rate are as follows:
|  | March 31, 2019
Weighted average remaining lease term |  |
Operating leases |  | 7.89 years |
Finance leases |  | 1.85 years |
Weighted average discount rate |  |
Operating leases |  | 5.69 | %
Finance leases |  | 3.57 | %
The components of lease expense were as follows:
(in thousands) |  | Three Months Ended March 31, 2019
Operating lease cost: |  |
Fixed |  | $ | 14,797 |
Variable |  | 1,578 |
Total Operating lease cost |  | 16,375 |
Finance lease cost: |  |
Amortization of right-of-use assets |  | 2,970 |
Interest on lease liabilities |  | 186 |
Total Finance lease cost |  | 3,156 |
Sublease income |  | 2,560 |
Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of March 31, 2019, are as follows:
(in thousands) |  | Operating Leases |  | Finance Leases
2019 |  | $ | 56,594 |  |  | $ | 10,225 |
2020 |  | 74,482 |  |  | 10,060 |
2021 |  | 71,669 |  |  | 2,436 |
2022 |  | 65,689 |  |  | — |
2023 |  | 62,778 |  |  | — |
2024 and thereafter |  | 164,245 |  |  | — |
Total lease payments |  | 495,457 |  |  | 22,721 |
Less imputed interest |  | (100,693 | ) |  | (2,073 | )
Total lease liability |  | 394,764 |  |  | 20,648 |
Future lease payments under non-cancelable leases and sublease receipts as of December 31, 2018 are as follows:
(thousands) |  | Capital |  | Operating |  | Subleases
2019 |  | $ | 21,983 |  |  | $ | 32,755 |  |  | $ | (8,979 | )
2020 |  | 11,283 |  |  | 30,473 |  |  | (9,324 | )
2021 |  | 1,651 |  |  | 25,564 |  |  | (8,844 | )
2022 |  | — |  |  | 22,710 |  |  | (8,552 | )
2023 |  | — |  |  | 21,456 |  |  | (8,695 | )
Thereafter |  | — |  |  | 113,779 |  |  | (36,312 | )
Total minimum lease payments |  | $ | 34,917 |  |  | $ | 246,737 |  |  | $ | (80,706 | )
Leases | Leases The Company adopted ASU 2016-02 on January 1, 2019, and elected the modified retrospective method of implementation. The standard requires the recognition of ROU assets and lease liabilities for leases, which are defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company has elected the practical expedient which allows for leases with an initial term of 12 months or less to be excluded from recognition on the condensed consolidated statement of financial condition and for which lease expense is recognized on a straight-line basis over the lease term. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. These leases are primarily for corporate office space, datacenters, and technology equipment. The leases have remaining terms of 1 year to 13 years, some of which include options to extend the initial term at the Company's discretion. The lease terms used in calculating ROU assets and lease liabilities include the options to extend the initial term when the Company is reasonably certain of exercising the options. The Company's lease agreements do not contain any material residual value guarantees, restrictions or covenants. In addition to the base rental costs, the Company’s lease agreements for corporate office space generally provide for rent escalations resulting from increased assessments for operating expenses, real estate taxes and other charges. Payments for such reimbursable expenses are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments was incurred. The Company also subleases certain office space and facilities to third parties. The subleases have remaining terms of 1 to 13 years. The Company recognizes sublease income on a straight-line basis over the term of the sublease within Other, net on the condensed consolidated statement of comprehensive income. As the implied discount rate for most of the Company's leases is not readily determinable, the Company uses its incremental borrowing rate on its secured borrowings, which was based on the information available as of the initial transition date, January 1, 2019, in determining the present value of lease payments. Lease assets and liabilities are summarized as follows:
(in thousands) |  | Financial Statement Location |  | March 31, 2019
Operating leases |  |  |  |
Operating lease right-of-use assets |  | Operating lease right-of-use assets |  | $ | 350,423 |
Operating lease liabilities |  | Operating lease liabilities |  | 394,764 |
Finance leases |  |  |  |
Property and equipment, at cost |  | Property, equipment, and capitalized software, net |  | 37,258 |
Accumulated depreciation |  | Property, equipment, and capitalized software, net |  | (17,056 | )
Finance lease liabilities |  | Accounts payable, accrued expenses, and other liabilities |  | 20,648 |
Weighted average remaining lease term and discount rate are as follows:
|  | March 31, 2019
Weighted average remaining lease term |  |
Operating leases |  | 7.89 years |
Finance leases |  | 1.85 years |
Weighted average discount rate |  |
Operating leases |  | 5.69 | %
Finance leases |  | 3.57 | %
The components of lease expense were as follows:
(in thousands) |  | Three Months Ended March 31, 2019
Operating lease cost: |  |
Fixed |  | $ | 14,797 |
Variable |  | 1,578 |
Total Operating lease cost |  | 16,375 |
Finance lease cost: |  |
Amortization of right-of-use assets |  | 2,970 |
Interest on lease liabilities |  | 186 |
Total Finance lease cost |  | 3,156 |
Sublease income |  | 2,560 |
Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of March 31, 2019, are as follows:
(in thousands) |  | Operating Leases |  | Finance Leases
2019 |  | $ | 56,594 |  |  | $ | 10,225 |
2020 |  | 74,482 |  |  | 10,060 |
2021 |  | 71,669 |  |  | 2,436 |
2022 |  | 65,689 |  |  | — |
2023 |  | 62,778 |  |  | — |
2024 and thereafter |  | 164,245 |  |  | — |
Total lease payments |  | 495,457 |  |  | 22,721 |
Less imputed interest |  | (100,693 | ) |  | (2,073 | )
Total lease liability |  | 394,764 |  |  | 20,648 |
Future lease payments under non-cancelable leases and sublease receipts as of December 31, 2018 are as follows:
(thousands) |  | Capital |  | Operating |  | Subleases
2019 |  | $ | 21,983 |  |  | $ | 32,755 |  |  | $ | (8,979 | )
2020 |  | 11,283 |  |  | 30,473 |  |  | (9,324 | )
2021 |  | 1,651 |  |  | 25,564 |  |  | (8,844 | )
2022 |  | — |  |  | 22,710 |  |  | (8,552 | )
2023 |  | — |  |  | 21,456 |  |  | (8,695 | )
Thereafter |  | — |  |  | 113,779 |  |  | (36,312 | )
Total minimum lease payments |  | $ | 34,917 |  |  | $ | 246,737 |  |  | $ | (80,706 | )

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