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Leases | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
Leases | Leases Company as Lessor The Company is a lessor in certain Company-owned transactions as the Company has identified a lease component associated with the right-of-use of the security system and a non-lease component associated with the monitoring and related services. For transactions in which (i) the timing and pattern of transfer is the same for the lease and non-lease components, and (ii) the lease component would be classified as an operating lease if accounted for separately, the Company applies the practical expedient to aggregate the lease and non-lease components and accounts for the combined transaction based upon its predominant characteristic, which is the non-lease component. The Company accounts for the combined component as a single performance obligation under the applicable revenue guidance, and recognizes the underlying assets within subscriber system assets, net, in the Consolidated Balance Sheets. For transactions that do not qualify for the practical expedient as the lease component represents a sales-type lease, the Company accounts for the lease and non-lease components separately. The Company’s sales-type leases are not material. Company as Lessee As part of normal operations, the Company leases real estate, vehicles, and equipment from various counterparties with lease terms and maturities through 2030. For these transactions, the Company applies the practical expedient to not separate the lease and non-lease components and accounts for the combined component as a lease. Additionally, the Company’s right-of-use assets and lease liabilities include leases with initial lease terms of 12 months or less. The Company’s right-of-use assets and lease liabilities primarily represent lease payments fixed at the commencement of a lease and variable lease payments dependent on an index or rate. Lease payments are recognized as lease cost on a straight-line basis over the lease term, which is determined as the non-cancelable period, including periods in which termination options are reasonably certain of not being exercised, and periods in which renewal options are reasonably certain of being exercised. The discount rate is determined using the Company’s incremental borrowing rate coinciding with the lease term at the commencement of a lease. The incremental borrowing rate is estimated based on publicly available data for the Company’s debt instruments and other instruments with similar characteristics. Lease payments that are neither fixed nor dependent on an index or rate and vary because of changes in usage or other factors are included in variable lease costs. Variable lease costs are recorded in the period in which the obligation is incurred and primarily relate to fuel, repair, and maintenance payments as they vary based on the usage of leased vehicles. The Company’s leases do not contain material residual value guarantees or restrictive covenants. The Company’s subleases are not material. Leases recognized in the Consolidated Balance Sheets were as follows (in thousands):
|  |  |  |  |  | December 31,
Presentation |  |  |  | Classification |  | 2021 |  | 2020
Operating |  | Current |  | Prepaid expenses and other current assets |  | $ | 230 |  |  | $ | 684 |
Operating |  | Non-current |  | Other assets |  | 125,945 |  |  | 138,408 |
Finance |  | Non-current |  | Property and equipment, net(a) |  | 88,962 |  |  | 54,414 |
Total right-of-use assets |  | $ | 215,137 |  |  | $ | 193,506 |
Operating |  | Current |  | Accrued expenses and other current liabilities |  | $ | 37,359 |  |  | $ | 30,689 |
Finance |  | Current |  | Current maturities of long-term debt |  | 38,730 |  |  | 26,955 |
Operating |  | Non-current |  | Other liabilities |  | 99,734 |  |  | 115,694 |
Finance |  | Non-current |  | Long-term debt |  | 54,350 |  |  | 34,373 |
Total lease liabilities |  | $ | 230,173 |  |  | $ | 207,711 |
_________________ (a)Finance right-of-use assets are recorded net of accumulated depreciation of approximately $78 million and $67 million as of December 31, 2021 and 2020, respectively. The components of total lease cost reflected in the Consolidated Statements of Operations were as follows:
|  | Years Ended December 31,
Lease Cost (in thousands) |  | 2021 |  | 2020 |  | 2019
Operating lease cost: |  | $ | 48,078 |  |  | $ | 56,680 |  |  | $ | 58,579 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets |  | 29,269 |  |  | 24,509 |  |  | 22,957 |
Interest on lease liabilities |  | 2,823 |  |  | 3,122 |  |  | 3,770 |
Variable lease costs |  | 72,367 |  |  | 47,013 |  |  | 48,325 |
Total lease cost |  | $ | 152,537 |  |  | $ | 131,324 |  |  | $ | 133,631 |
The following table presents cash flow and supplemental information associated with the Company’s leases:
|  | Years Ended December 31,
Other information (in thousands) |  | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows - operating leases |  | $ | 50,721 |  |  | $ | 56,235 |  |  | $ | 57,212 |
Operating cash flows - finance leases |  | $ | 2,823 |  |  | $ | 3,122 |  |  | $ | 3,770 |
Financing cash flows - finance leases |  | $ | 32,123 |  |  | $ | 27,956 |  |  | $ | 24,918 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases |  | $ | 21,203 |  |  | $ | 47,870 |  |  | $ | 51,909 |
Finance leases |  | $ | 46,920 |  |  | $ | 15,326 |  |  | $ | 52,611 |
The following table presents the weighted-average lease term and discount rate for operating and finance leases:
|  | December 31,
Lease Term and Discount Rate |  | 2021 |  | 2020
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  | 4.2 |  | 4.8
Finance leases |  | 2.8 |  | 2.5
Weighted-average discount rate |  |  |  |
Operating leases |  | 4.8 | % |  | 5.4 | %
Finance leases |  | 3.7 | % |  | 4.8 | %
The following table presents a maturity analysis related to the Company’s operating and finance leases, including interest, as of December 31, 2021:
Maturity of Lease Liabilities (in thousands) |  | Operating Leases |  | Finance Leases
2022 |  | $ | 41,257 |  |  | $ | 42,871 |
2023 |  | 39,743 |  |  | 27,351 |
2024 |  | 26,274 |  |  | 18,852 |
2025 |  | 18,201 |  |  | 8,329 |
2026 |  | 13,149 |  |  | — |
Thereafter |  | 13,239 |  |  | — |
Total lease payments (including interest) |  | $ | 151,863 |  |  | $ | 97,403 |
Less interest |  | 14,770 |  |  | 4,323 |
Total |  | $ | 137,093 |  |  | $ | 93,080 |
Leases | Leases Company as Lessor The Company is a lessor in certain Company-owned transactions as the Company has identified a lease component associated with the right-of-use of the security system and a non-lease component associated with the monitoring and related services. For transactions in which (i) the timing and pattern of transfer is the same for the lease and non-lease components, and (ii) the lease component would be classified as an operating lease if accounted for separately, the Company applies the practical expedient to aggregate the lease and non-lease components and accounts for the combined transaction based upon its predominant characteristic, which is the non-lease component. The Company accounts for the combined component as a single performance obligation under the applicable revenue guidance, and recognizes the underlying assets within subscriber system assets, net, in the Consolidated Balance Sheets. For transactions that do not qualify for the practical expedient as the lease component represents a sales-type lease, the Company accounts for the lease and non-lease components separately. The Company’s sales-type leases are not material. Company as Lessee As part of normal operations, the Company leases real estate, vehicles, and equipment from various counterparties with lease terms and maturities through 2030. For these transactions, the Company applies the practical expedient to not separate the lease and non-lease components and accounts for the combined component as a lease. Additionally, the Company’s right-of-use assets and lease liabilities include leases with initial lease terms of 12 months or less. The Company’s right-of-use assets and lease liabilities primarily represent lease payments fixed at the commencement of a lease and variable lease payments dependent on an index or rate. Lease payments are recognized as lease cost on a straight-line basis over the lease term, which is determined as the non-cancelable period, including periods in which termination options are reasonably certain of not being exercised, and periods in which renewal options are reasonably certain of being exercised. The discount rate is determined using the Company’s incremental borrowing rate coinciding with the lease term at the commencement of a lease. The incremental borrowing rate is estimated based on publicly available data for the Company’s debt instruments and other instruments with similar characteristics. Lease payments that are neither fixed nor dependent on an index or rate and vary because of changes in usage or other factors are included in variable lease costs. Variable lease costs are recorded in the period in which the obligation is incurred and primarily relate to fuel, repair, and maintenance payments as they vary based on the usage of leased vehicles. The Company’s leases do not contain material residual value guarantees or restrictive covenants. The Company’s subleases are not material. Leases recognized in the Consolidated Balance Sheets were as follows (in thousands):
|  |  |  |  |  | December 31,
Presentation |  |  |  | Classification |  | 2021 |  | 2020
Operating |  | Current |  | Prepaid expenses and other current assets |  | $ | 230 |  |  | $ | 684 |
Operating |  | Non-current |  | Other assets |  | 125,945 |  |  | 138,408 |
Finance |  | Non-current |  | Property and equipment, net(a) |  | 88,962 |  |  | 54,414 |
Total right-of-use assets |  | $ | 215,137 |  |  | $ | 193,506 |
Operating |  | Current |  | Accrued expenses and other current liabilities |  | $ | 37,359 |  |  | $ | 30,689 |
Finance |  | Current |  | Current maturities of long-term debt |  | 38,730 |  |  | 26,955 |
Operating |  | Non-current |  | Other liabilities |  | 99,734 |  |  | 115,694 |
Finance |  | Non-current |  | Long-term debt |  | 54,350 |  |  | 34,373 |
Total lease liabilities |  | $ | 230,173 |  |  | $ | 207,711 |
_________________ (a)Finance right-of-use assets are recorded net of accumulated depreciation of approximately $78 million and $67 million as of December 31, 2021 and 2020, respectively. The components of total lease cost reflected in the Consolidated Statements of Operations were as follows:
|  | Years Ended December 31,
Lease Cost (in thousands) |  | 2021 |  | 2020 |  | 2019
Operating lease cost: |  | $ | 48,078 |  |  | $ | 56,680 |  |  | $ | 58,579 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets |  | 29,269 |  |  | 24,509 |  |  | 22,957 |
Interest on lease liabilities |  | 2,823 |  |  | 3,122 |  |  | 3,770 |
Variable lease costs |  | 72,367 |  |  | 47,013 |  |  | 48,325 |
Total lease cost |  | $ | 152,537 |  |  | $ | 131,324 |  |  | $ | 133,631 |
The following table presents cash flow and supplemental information associated with the Company’s leases:
|  | Years Ended December 31,
Other information (in thousands) |  | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows - operating leases |  | $ | 50,721 |  |  | $ | 56,235 |  |  | $ | 57,212 |
Operating cash flows - finance leases |  | $ | 2,823 |  |  | $ | 3,122 |  |  | $ | 3,770 |
Financing cash flows - finance leases |  | $ | 32,123 |  |  | $ | 27,956 |  |  | $ | 24,918 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases |  | $ | 21,203 |  |  | $ | 47,870 |  |  | $ | 51,909 |
Finance leases |  | $ | 46,920 |  |  | $ | 15,326 |  |  | $ | 52,611 |
The following table presents the weighted-average lease term and discount rate for operating and finance leases:
|  | December 31,
Lease Term and Discount Rate |  | 2021 |  | 2020
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  | 4.2 |  | 4.8
Finance leases |  | 2.8 |  | 2.5
Weighted-average discount rate |  |  |  |
Operating leases |  | 4.8 | % |  | 5.4 | %
Finance leases |  | 3.7 | % |  | 4.8 | %
The following table presents a maturity analysis related to the Company’s operating and finance leases, including interest, as of December 31, 2021:
Maturity of Lease Liabilities (in thousands) |  | Operating Leases |  | Finance Leases
2022 |  | $ | 41,257 |  |  | $ | 42,871 |
2023 |  | 39,743 |  |  | 27,351 |
2024 |  | 26,274 |  |  | 18,852 |
2025 |  | 18,201 |  |  | 8,329 |
2026 |  | 13,149 |  |  | — |
Thereafter |  | 13,239 |  |  | — |
Total lease payments (including interest) |  | $ | 151,863 |  |  | $ | 97,403 |
Less interest |  | 14,770 |  |  | 4,323 |
Total |  | $ | 137,093 |  |  | $ | 93,080 |
Lessee | Leases Company as Lessor The Company is a lessor in certain Company-owned transactions as the Company has identified a lease component associated with the right-of-use of the security system and a non-lease component associated with the monitoring and related services. For transactions in which (i) the timing and pattern of transfer is the same for the lease and non-lease components, and (ii) the lease component would be classified as an operating lease if accounted for separately, the Company applies the practical expedient to aggregate the lease and non-lease components and accounts for the combined transaction based upon its predominant characteristic, which is the non-lease component. The Company accounts for the combined component as a single performance obligation under the applicable revenue guidance, and recognizes the underlying assets within subscriber system assets, net, in the Consolidated Balance Sheets. For transactions that do not qualify for the practical expedient as the lease component represents a sales-type lease, the Company accounts for the lease and non-lease components separately. The Company’s sales-type leases are not material. Company as Lessee As part of normal operations, the Company leases real estate, vehicles, and equipment from various counterparties with lease terms and maturities through 2030. For these transactions, the Company applies the practical expedient to not separate the lease and non-lease components and accounts for the combined component as a lease. Additionally, the Company’s right-of-use assets and lease liabilities include leases with initial lease terms of 12 months or less. The Company’s right-of-use assets and lease liabilities primarily represent lease payments fixed at the commencement of a lease and variable lease payments dependent on an index or rate. Lease payments are recognized as lease cost on a straight-line basis over the lease term, which is determined as the non-cancelable period, including periods in which termination options are reasonably certain of not being exercised, and periods in which renewal options are reasonably certain of being exercised. The discount rate is determined using the Company’s incremental borrowing rate coinciding with the lease term at the commencement of a lease. The incremental borrowing rate is estimated based on publicly available data for the Company’s debt instruments and other instruments with similar characteristics. Lease payments that are neither fixed nor dependent on an index or rate and vary because of changes in usage or other factors are included in variable lease costs. Variable lease costs are recorded in the period in which the obligation is incurred and primarily relate to fuel, repair, and maintenance payments as they vary based on the usage of leased vehicles. The Company’s leases do not contain material residual value guarantees or restrictive covenants. The Company’s subleases are not material. Leases recognized in the Consolidated Balance Sheets were as follows (in thousands):
|  |  |  |  |  | December 31,
Presentation |  |  |  | Classification |  | 2021 |  | 2020
Operating |  | Current |  | Prepaid expenses and other current assets |  | $ | 230 |  |  | $ | 684 |
Operating |  | Non-current |  | Other assets |  | 125,945 |  |  | 138,408 |
Finance |  | Non-current |  | Property and equipment, net(a) |  | 88,962 |  |  | 54,414 |
Total right-of-use assets |  | $ | 215,137 |  |  | $ | 193,506 |
Operating |  | Current |  | Accrued expenses and other current liabilities |  | $ | 37,359 |  |  | $ | 30,689 |
Finance |  | Current |  | Current maturities of long-term debt |  | 38,730 |  |  | 26,955 |
Operating |  | Non-current |  | Other liabilities |  | 99,734 |  |  | 115,694 |
Finance |  | Non-current |  | Long-term debt |  | 54,350 |  |  | 34,373 |
Total lease liabilities |  | $ | 230,173 |  |  | $ | 207,711 |
_________________ (a)Finance right-of-use assets are recorded net of accumulated depreciation of approximately $78 million and $67 million as of December 31, 2021 and 2020, respectively. The components of total lease cost reflected in the Consolidated Statements of Operations were as follows:
|  | Years Ended December 31,
Lease Cost (in thousands) |  | 2021 |  | 2020 |  | 2019
Operating lease cost: |  | $ | 48,078 |  |  | $ | 56,680 |  |  | $ | 58,579 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets |  | 29,269 |  |  | 24,509 |  |  | 22,957 |
Interest on lease liabilities |  | 2,823 |  |  | 3,122 |  |  | 3,770 |
Variable lease costs |  | 72,367 |  |  | 47,013 |  |  | 48,325 |
Total lease cost |  | $ | 152,537 |  |  | $ | 131,324 |  |  | $ | 133,631 |
The following table presents cash flow and supplemental information associated with the Company’s leases:
|  | Years Ended December 31,
Other information (in thousands) |  | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows - operating leases |  | $ | 50,721 |  |  | $ | 56,235 |  |  | $ | 57,212 |
Operating cash flows - finance leases |  | $ | 2,823 |  |  | $ | 3,122 |  |  | $ | 3,770 |
Financing cash flows - finance leases |  | $ | 32,123 |  |  | $ | 27,956 |  |  | $ | 24,918 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases |  | $ | 21,203 |  |  | $ | 47,870 |  |  | $ | 51,909 |
Finance leases |  | $ | 46,920 |  |  | $ | 15,326 |  |  | $ | 52,611 |
The following table presents the weighted-average lease term and discount rate for operating and finance leases:
|  | December 31,
Lease Term and Discount Rate |  | 2021 |  | 2020
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  | 4.2 |  | 4.8
Finance leases |  | 2.8 |  | 2.5
Weighted-average discount rate |  |  |  |
Operating leases |  | 4.8 | % |  | 5.4 | %
Finance leases |  | 3.7 | % |  | 4.8 | %
The following table presents a maturity analysis related to the Company’s operating and finance leases, including interest, as of December 31, 2021:
Maturity of Lease Liabilities (in thousands) |  | Operating Leases |  | Finance Leases
2022 |  | $ | 41,257 |  |  | $ | 42,871 |
2023 |  | 39,743 |  |  | 27,351 |
2024 |  | 26,274 |  |  | 18,852 |
2025 |  | 18,201 |  |  | 8,329 |
2026 |  | 13,149 |  |  | — |
Thereafter |  | 13,239 |  |  | — |
Total lease payments (including interest) |  | $ | 151,863 |  |  | $ | 97,403 |
Less interest |  | 14,770 |  |  | 4,323 |
Total |  | $ | 137,093 |  |  | $ | 93,080 |

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- 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
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