XML 28 R14.htm IDEA: XBRL DOCUMENT
v3.20.2

Finance and Operating Leases | 12 Months Ended
--- | ---
Jun. 30, 2020
Finance and Operating Leases |
Finance and Operating Leases | 6. Finance and Operating Leases Finance Leases The Company is a lessee under finance leases for student computers and peripherals under loan agreements with PNC Equipment Finance, LLC (“PNC”) and Banc of America Leasing & Capital, LLC (“BALC”). As of June 30, 2020 and 2019, the finance lease liability (“capital leases” as of June 30, 2019) was $17.9 million and $24.6 million, respectively, with lease interest rates ranging from 1.52% to 3.87%. As of June 30, 2020 and 2019, the balance of the associated right-of-use assets (“student computers” as of June 30, 2019) was $19.8 million and $19.8 million, respectively. The right-of-use asset is recorded within property and equipment, net on the consolidated balance sheets. Lease amortization expense associated with the Company’s finance leases is recorded within selling, general, and administrative expenses on the consolidated statements of operations. Individual leases under the agreement with PNC include 36-month payment terms at varying rates, with a $1 purchase option at the end of each lease term. The Company has pledged the assets financed to secure the outstanding leases. ​ The Company entered into an agreement with BALC in February 2019 for $25.0 million to provide financing for its leases through December 2019 at varying rates. The Company entered into an additional $25.0 million agreement in April 2020 to provide financing for its leases through March 2021 at varying rates. In July 2020, the limit was increased from $25.0 million to $41.0 million at the same terms. Individual leases with BALC include 12-month and 36-month payment terms, fixed rates ranging from 1.52% to 3.58%, and a $1 purchase option at the end of each lease term. The Company has pledged the assets financed to secure the outstanding leases. ​ The following is a summary, as of June 30, 2020 (under ASC 842) and June 30, 2019 (under ASC 840), respectively, of the present value of the net minimum lease payments under the Company’s finance leases: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ |  | 2020 |  | 2019
​ |  | (in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​
2020 | ​ | $ | — | ​ | $ | 20,070
2021 | ​ | ​ | 13,587 | ​ | ​ | 4,819
2022 | ​ | ​ | 2,653 | ​ | ​ | 340
2023 | ​ | ​ | 2,040 | ​ | ​ | —
Total minimum payments | ​ | ​ | 18,280 | ​ | ​ | 25,229
Less: imputed interest | ​ | ​ | (342) | ​ | ​ | (581)
Finance lease liability | ​ | ​ | 17,938 | ​ | ​ | 24,648
Less: current portion of finance lease liability | ​ | ​ | (13,304) | ​ | ​ | (19,588)
Long-term finance lease liability | ​ | $ | 4,634 | ​ | $ | 5,060
​ Operating Leases The Company is a lessee under operating leases for various facilities to support the Company’s operations. As of June 30, 2020, the operating lease liability was $117.2 million. As of June 30, 2020, the balance of the associated right-of-use assets was $111.8 million. Each of the above balances as of June 30, 2020 includes the impact of Galvanize’s adoption of ASC 842 as part of the purchase price accounting which is discussed in more detail in Note 14, “Acquisitions and Investments.” Lease expense associated with the Company’s operating leases is recorded within selling, general, and administrative expenses on the consolidated statements of operations. ​ Individual operating leases range in terms of 1 to 11 years and expire on various dates through fiscal year 2031 and the minimum lease payments are discounted using the Company’s incremental borrowing rate of 3.86% or 2.55%. The following is a summary as of June 30, 2020 (under ASC 842) and June 30, 2019 (under ASC 840), respectively, of the present value of the minimum lease payments under the Company’s operating leases: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30,
​ |  | 2020 |  | 2019
​ |  | (in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​
2020 | ​ | $ | — | ​ | $ | 8,441
2021 | ​ | ​ | 23,626 | ​ | ​ | 8,229
2022 | ​ | ​ | 22,326 | ​ | ​ | 6,735
2023 | ​ | ​ | 15,841 | ​ | ​ | 550
2024 | ​ | ​ | 14,769 | ​ | ​ | 137
2025 | ​ | ​ | 13,949 | ​ | ​ | —
Thereafter | ​ | ​ | 38,544 | ​ | ​ | —
Total minimum payments | ​ | ​ | 129,055 | ​ | $ | 24,092
Less: imputed interest | ​ | ​ | (11,822) | ​ | ​ | ​
Operating lease liability | ​ | ​ | 117,233 | ​ | ​ | ​
Less: current portion of operating lease liability | ​ | ​ | (20,689) | ​ | ​ | ​
Long-term operating lease liability | ​ | $ | 96,544 | ​ | ​ | ​
​ The Company is subleasing one of its facilities through June 2021, two others through May 2022 and one through July 2023. Sublease income is recorded as an offset to the related lease expense within selling, general, and administrative expenses on the consolidated statements of operations. The following is a summary as of June 30, 2020 and June 30, 2019, respectively, of the expected sublease income: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year Ended June 30,
​ |  | 2020 |  | 2019
​ |  | (in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​
2020 | ​ | $ | — | ​ | $ | 930
2021 | ​ | ​ | 1,960 | ​ | ​ | 961
2022 | ​ | ​ | 1,496 | ​ | ​ | 528
2023 | ​ | ​ | 797 | ​ | ​ | —
2024 | ​ | ​ | 66 | ​ | ​ | —
Total sublease income | ​ | $ | 4,319 | ​ | $ | 2,419
​ The following is a summary of the Company’s lease cost, weighted-average remaining lease term, weighted-average discount rate and certain other cash flows as it relates to its operating leases for the year ended June 30, 2020: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | June 30, 2020 | ​
​ | ​ | ​ | ​ | ​ | (in thousands) | ​
Lease cost | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Finance lease cost: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Amortization of right-of-use assets | ​ | ​ | ​ | ​ | $ | 16,740 | ​
Interest on lease liabilities | ​ | ​ | ​ | ​ | ​ | 820 | ​
Operating lease cost | ​ | ​ | ​ | ​ | ​ | 13,129 | ​
Short-term lease cost | ​ | ​ | ​ | ​ | ​ | 1,214 | ​
Sublease income | ​ | ​ | ​ | ​ | ​ | (760) | ​
Total lease cost | ​ | ​ | ​ | ​ | $ | 31,143 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other information | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash paid for amounts included in the measurement of lease liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating cash flows from operating leases | ​ | ​ | ​ | ​ | $ | (13,124) | ​
Financing cash flows from finance leases | ​ | ​ | ​ | ​ | ​ | (27,675) | ​
Right-of-use assets obtained in exchange for new finance lease liabilities | ​ | ​ | ​ | ​ | ​ | 17,160 | ​
Right-of-use assets obtained in exchange for new operating lease liabilities | ​ | ​ | ​ | ​ | ​ | 6,311 | ​
Weighted-average remaining lease term - finance leases | ​ | ​ | ​ | ​ | ​ | 0.79 | yrs.
Weighted-average remaining lease term - operating leases | ​ | ​ | ​ | ​ | ​ | 7.15 | yrs.
Weighted-average discount rate - finance leases | ​ | ​ | ​ | ​ | ​ | 2.86 | %
Weighted-average discount rate - operating leases | ​ | ​ | ​ | ​ | ​ | 2.76 | %
​

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 lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration