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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases LEASES
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 2034. 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 that are fixed at the commencement of a lease and variable lease payments that are 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 and buildings.
The Company’s leases do not contain material residual value guarantees or restrictive covenants. The Company’s subleases are not material.
Right-of-Use Assets and Lease Liabilities
(in thousands)December 31,
Presentation and Classification:20232022
OperatingCurrentPrepaid expenses and other current assets$75 $121 
OperatingNon-currentOther assets91,725 93,057 
FinanceNon-current
Property and equipment, net(1)
82,803 66,704 
Total right-of-use assets$174,603 $159,882 
OperatingCurrentAccrued expenses and other current liabilities$15,979 $20,741 
FinanceCurrentCurrent maturities of long-term debt33,934 34,219 
OperatingNon-currentOther liabilities84,695 85,249 
FinanceNon-currentLong-term debt53,227 36,424 
Total lease liabilities$187,835 $176,633 
_________________
(1) Finance right-of-use assets are recorded net of accumulated depreciation of approximately $60 million and $61 million as of December 31, 2023 and 2022, respectively.
Lease Cost
Years Ended December 31,
(in thousands)
202320222021
Operating lease cost$31,357 $33,574 $37,817 
Finance lease cost:
Amortization of right-of-use assets23,922 19,539 18,407 
Interest on lease liabilities3,768 2,662 1,973 
Variable lease costs46,380 62,316 51,156 
Total lease cost$105,427 $118,091 $109,353 
Cash Flow and Supplemental Information(1)
Years Ended December 31,
(in thousands)
202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating leases:
Operating cash flows$42,883 $47,708 $50,721 
Finance Leases:
Operating cash flows$4,940 $3,680 $2,823 
Financing cash flows$43,733 $44,978 $32,123 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$41,338 $49,193 $21,203 
Finance leases$79,273 $48,439 $46,920 
__________________
(1)Includes both continuing and discontinued operations consistent with the presentation on the Consolidated Statements of Cash Flows.
Lease Term and Discount Rate
December 31,
20232022
Weighted-average remaining lease term (years):
Operating leases5.65.8
Finance leases3.12.9
Weighted-average discount rate:
Operating leases6.1 %5.9 %
Finance leases5.8 %5.6 %
Maturity of Lease Liabilities
December 31, 2023
(in thousands)
Operating LeasesFinance Leases
2024$19,296 $34,592 
202526,100 31,152 
202621,170 20,426 
202716,698 10,510 
202811,854 504 
Thereafter28,426 — 
Total lease payments (including interest)$123,544 $97,184 
Less interest22,870 10,023 
Total$100,674 $87,161 
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.
Leases LEASES
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 2034. 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 that are fixed at the commencement of a lease and variable lease payments that are 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 and buildings.
The Company’s leases do not contain material residual value guarantees or restrictive covenants. The Company’s subleases are not material.
Right-of-Use Assets and Lease Liabilities
(in thousands)December 31,
Presentation and Classification:20232022
OperatingCurrentPrepaid expenses and other current assets$75 $121 
OperatingNon-currentOther assets91,725 93,057 
FinanceNon-current
Property and equipment, net(1)
82,803 66,704 
Total right-of-use assets$174,603 $159,882 
OperatingCurrentAccrued expenses and other current liabilities$15,979 $20,741 
FinanceCurrentCurrent maturities of long-term debt33,934 34,219 
OperatingNon-currentOther liabilities84,695 85,249 
FinanceNon-currentLong-term debt53,227 36,424 
Total lease liabilities$187,835 $176,633 
_________________
(1) Finance right-of-use assets are recorded net of accumulated depreciation of approximately $60 million and $61 million as of December 31, 2023 and 2022, respectively.
Lease Cost
Years Ended December 31,
(in thousands)
202320222021
Operating lease cost$31,357 $33,574 $37,817 
Finance lease cost:
Amortization of right-of-use assets23,922 19,539 18,407 
Interest on lease liabilities3,768 2,662 1,973 
Variable lease costs46,380 62,316 51,156 
Total lease cost$105,427 $118,091 $109,353 
Cash Flow and Supplemental Information(1)
Years Ended December 31,
(in thousands)
202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating leases:
Operating cash flows$42,883 $47,708 $50,721 
Finance Leases:
Operating cash flows$4,940 $3,680 $2,823 
Financing cash flows$43,733 $44,978 $32,123 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$41,338 $49,193 $21,203 
Finance leases$79,273 $48,439 $46,920 
__________________
(1)Includes both continuing and discontinued operations consistent with the presentation on the Consolidated Statements of Cash Flows.
Lease Term and Discount Rate
December 31,
20232022
Weighted-average remaining lease term (years):
Operating leases5.65.8
Finance leases3.12.9
Weighted-average discount rate:
Operating leases6.1 %5.9 %
Finance leases5.8 %5.6 %
Maturity of Lease Liabilities
December 31, 2023
(in thousands)
Operating LeasesFinance Leases
2024$19,296 $34,592 
202526,100 31,152 
202621,170 20,426 
202716,698 10,510 
202811,854 504 
Thereafter28,426 — 
Total lease payments (including interest)$123,544 $97,184 
Less interest22,870 10,023 
Total$100,674 $87,161 
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.
Lessee LEASES
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 2034. 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 that are fixed at the commencement of a lease and variable lease payments that are 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 and buildings.
The Company’s leases do not contain material residual value guarantees or restrictive covenants. The Company’s subleases are not material.
Right-of-Use Assets and Lease Liabilities
(in thousands)December 31,
Presentation and Classification:20232022
OperatingCurrentPrepaid expenses and other current assets$75 $121 
OperatingNon-currentOther assets91,725 93,057 
FinanceNon-current
Property and equipment, net(1)
82,803 66,704 
Total right-of-use assets$174,603 $159,882 
OperatingCurrentAccrued expenses and other current liabilities$15,979 $20,741 
FinanceCurrentCurrent maturities of long-term debt33,934 34,219 
OperatingNon-currentOther liabilities84,695 85,249 
FinanceNon-currentLong-term debt53,227 36,424 
Total lease liabilities$187,835 $176,633 
_________________
(1) Finance right-of-use assets are recorded net of accumulated depreciation of approximately $60 million and $61 million as of December 31, 2023 and 2022, respectively.
Lease Cost
Years Ended December 31,
(in thousands)
202320222021
Operating lease cost$31,357 $33,574 $37,817 
Finance lease cost:
Amortization of right-of-use assets23,922 19,539 18,407 
Interest on lease liabilities3,768 2,662 1,973 
Variable lease costs46,380 62,316 51,156 
Total lease cost$105,427 $118,091 $109,353 
Cash Flow and Supplemental Information(1)
Years Ended December 31,
(in thousands)
202320222021
Cash paid for amounts included in the measurement of lease liabilities
Operating leases:
Operating cash flows$42,883 $47,708 $50,721 
Finance Leases:
Operating cash flows$4,940 $3,680 $2,823 
Financing cash flows$43,733 $44,978 $32,123 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$41,338 $49,193 $21,203 
Finance leases$79,273 $48,439 $46,920 
__________________
(1)Includes both continuing and discontinued operations consistent with the presentation on the Consolidated Statements of Cash Flows.
Lease Term and Discount Rate
December 31,
20232022
Weighted-average remaining lease term (years):
Operating leases5.65.8
Finance leases3.12.9
Weighted-average discount rate:
Operating leases6.1 %5.9 %
Finance leases5.8 %5.6 %
Maturity of Lease Liabilities
December 31, 2023
(in thousands)
Operating LeasesFinance Leases
2024$19,296 $34,592 
202526,100 31,152 
202621,170 20,426 
202716,698 10,510 
202811,854 504 
Thereafter28,426 — 
Total lease payments (including interest)$123,544 $97,184 
Less interest22,870 10,023 
Total$100,674 $87,161 
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.