XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.19.1

Leases | 3 Months Ended
--- | ---
Mar. 31, 2019
Leases [Abstract] |
Leases | Leases General We enter into operating and finance leases for network equipment, real estate, mobile site sharing and vehicles. We provide residual value guarantees on certain of our vehicle leases. Policies For leases with a term greater than 12 months, we recognize on the lease commencement date (i) ROU assets representing our right to use an underlying asset and (ii) lease liabilities representing our obligation to make lease payments over the lease term. Lease and non-lease components in a contract are generally accounted for separately. We initially measure lease liabilities at the present value of the remaining lease payments over the lease term. Options to extend or terminate the lease are included only when it is reasonably certain that we will exercise that option. As most of our leases do not provide enough information to determine an implicit interest rate, we generally use a portfolio level incremental borrowing rate in our present value calculation. We initially measure ROU assets at the value of the lease liability, plus any initial direct costs and prepaid lease payments, less any lease incentives received. With respect to our finance leases, (i) ROU assets are generally depreciated on a straight-line basis over the shorter of the lease term or the useful life of the asset and (ii) interest expense on the lease liability is recorded using the effective interest method. Operating lease expense is recognized on a straight-line basis over the lease term. For leases with a term of 12 months or less (short-term leases), we do not recognize ROU assets or lease liabilities. Short-term lease expense is recognized on a straight-line basis over the lease term. Lease Balances At March 31, 2019, the weighted average remaining lease terms for operating and finance leases were 8.0 years and 23.6 years, respectively, and the weighted average discount rates were 4.0% and 6.0%, respectively. A summary of our consolidated ROU assets as of March 31, 2019 is set forth below (in millions):
Operating leases (a) | $ | 518.4 |
Finance leases (b) | 557.4 |
Total | $ | 1,075.8 |
_______________
(a) | Our operating lease ROU assets are included in other assets, net, on our condensed consolidated balance sheet.
(b) | Our finance lease ROU assets are included in property and equipment, net, on our condensed consolidated balance sheet.
A summary of additions to our ROU assets during the three months ended March 31, 2019 is set forth below (in millions):
ROU assets recorded during the period associated with: |
Operating leases | $ | 3.5 |
Finance leases (a) | 12.2 |
Total | $ | 15.7 |
_______________
(a) | During the three months ended March 31, 2018, we recorded additions to our ROU assets associated with finance leases of $23.9 million.
A summary of our consolidated lease liabilities as of March 31, 2019 is set forth below (in millions):
Operating leases (a) | $ | 525.4 |
Finance leases (b) | 631.5 |
Total | $ | 1,156.9 |
_______________
(a) | The current and long-term portions of our operating lease liabilities are included within other accrued and current liabilities and other long-term liabilities, respectively, on our condensed consolidated balance sheet.
(b) | The current and long-term portions of our finance lease obligations are included within current portion of debt and finance lease obligations and long-term debt and finance lease obligations, respectively, on our condensed consolidated balance sheets. As of December 31, 2018, we had $621.3 million of finance lease liabilities included on our condensed consolidated balance sheet.
A summary of our aggregate lease expense for the three months ended March 31, 2019 is set forth below (in millions):
Finance lease expense: |
Depreciation and amortization | $ | 22.7 |
Interest expense | 8.1 |
Total finance lease expense | 30.8 |
Operating lease expense (a) | 33.2 |
Short-term lease expense (a) | 1.9 |
Variable lease expense (b) | 1.1 |
Total lease expense | $ | 67.0 |
_______________
(a) | Our operating lease expense and short-term lease expense are included in other operating expenses, SG&A expenses and impairment, restructuring and other operating items in our condensed consolidated statements of operations.
(b) | Variable lease expense represents payments made to a lessor during the lease term that vary because of a change in circumstance that occurred after the lease commencement date. Variable lease payments are expensed as incurred and are included in other operating expenses in our condensed consolidated statements of operations.
A summary of our cash outflows from operating and finance leases recorded during the three months ended March 31, 2019 is set forth below (in millions):
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash outflows from operating leases | $ | 35.7 |
Operating cash outflows from finance leases | 8.1 |
Financing cash outflows from finance leases | 18.1 |
Total cash outflows from operating and finance leases | $ | 61.9 |
Maturities of our operating and finance lease obligations as of March 31, 2019 are presented below. Amounts represent U.S. dollar equivalents based on March 31, 2019 exchange rates:
| Operating leases |  | Finance leases
| in millions
Year ending December 31: |  |  |
2019 (remainder of year) | $ | 95.5 |  |  | $ | 91.6 |
2020 | 107.8 |  |  | 103.4 |
2021 | 88.5 |  |  | 94.7 |
2022 | 74.6 |  |  | 92.7 |
2023 | 63.3 |  |  | 91.2 |
2024 | 75.1 |  |  | 51.5 |
Thereafter | 161.1 |  |  | 421.9 |
Total payments | 665.9 |  |  | 947.0 |
Less: present value discount | (140.5 | ) |  | (315.5 | )
Present value of lease payments | $ | 525.4 |  |  | $ | 631.5 |
Current portion | $ | 106.6 |  |  | $ | 81.0 |
Noncurrent portion | $ | 418.8 |  |  | $ | 550.5 |
Maturities of our operating and finance lease obligations as of December 31, 2018 are presented below. Amounts represent U.S. dollar equivalents based on December 31, 2018 exchange rates:
| Operating leases |  | Finance leases
| in millions
Year ending December 31: |  |  |
2019 | $ | 123.9 |  |  | $ | 101.4 |
2020 | 85.4 |  |  | 107.3 |
2021 | 66.6 |  |  | 96.7 |
2022 | 54.3 |  |  | 94.5 |
2023 | 46.8 |  |  | 93.5 |
Thereafter | 178.6 |  |  | 464.0 |
Total payments | $ | 555.6 |  |  | $ | 957.4 |
Leases | Leases General We enter into operating and finance leases for network equipment, real estate, mobile site sharing and vehicles. We provide residual value guarantees on certain of our vehicle leases. Policies For leases with a term greater than 12 months, we recognize on the lease commencement date (i) ROU assets representing our right to use an underlying asset and (ii) lease liabilities representing our obligation to make lease payments over the lease term. Lease and non-lease components in a contract are generally accounted for separately. We initially measure lease liabilities at the present value of the remaining lease payments over the lease term. Options to extend or terminate the lease are included only when it is reasonably certain that we will exercise that option. As most of our leases do not provide enough information to determine an implicit interest rate, we generally use a portfolio level incremental borrowing rate in our present value calculation. We initially measure ROU assets at the value of the lease liability, plus any initial direct costs and prepaid lease payments, less any lease incentives received. With respect to our finance leases, (i) ROU assets are generally depreciated on a straight-line basis over the shorter of the lease term or the useful life of the asset and (ii) interest expense on the lease liability is recorded using the effective interest method. Operating lease expense is recognized on a straight-line basis over the lease term. For leases with a term of 12 months or less (short-term leases), we do not recognize ROU assets or lease liabilities. Short-term lease expense is recognized on a straight-line basis over the lease term. Lease Balances At March 31, 2019, the weighted average remaining lease terms for operating and finance leases were 8.0 years and 23.6 years, respectively, and the weighted average discount rates were 4.0% and 6.0%, respectively. A summary of our consolidated ROU assets as of March 31, 2019 is set forth below (in millions):
Operating leases (a) | $ | 518.4 |
Finance leases (b) | 557.4 |
Total | $ | 1,075.8 |
_______________
(a) | Our operating lease ROU assets are included in other assets, net, on our condensed consolidated balance sheet.
(b) | Our finance lease ROU assets are included in property and equipment, net, on our condensed consolidated balance sheet.
A summary of additions to our ROU assets during the three months ended March 31, 2019 is set forth below (in millions):
ROU assets recorded during the period associated with: |
Operating leases | $ | 3.5 |
Finance leases (a) | 12.2 |
Total | $ | 15.7 |
_______________
(a) | During the three months ended March 31, 2018, we recorded additions to our ROU assets associated with finance leases of $23.9 million.
A summary of our consolidated lease liabilities as of March 31, 2019 is set forth below (in millions):
Operating leases (a) | $ | 525.4 |
Finance leases (b) | 631.5 |
Total | $ | 1,156.9 |
_______________
(a) | The current and long-term portions of our operating lease liabilities are included within other accrued and current liabilities and other long-term liabilities, respectively, on our condensed consolidated balance sheet.
(b) | The current and long-term portions of our finance lease obligations are included within current portion of debt and finance lease obligations and long-term debt and finance lease obligations, respectively, on our condensed consolidated balance sheets. As of December 31, 2018, we had $621.3 million of finance lease liabilities included on our condensed consolidated balance sheet.
A summary of our aggregate lease expense for the three months ended March 31, 2019 is set forth below (in millions):
Finance lease expense: |
Depreciation and amortization | $ | 22.7 |
Interest expense | 8.1 |
Total finance lease expense | 30.8 |
Operating lease expense (a) | 33.2 |
Short-term lease expense (a) | 1.9 |
Variable lease expense (b) | 1.1 |
Total lease expense | $ | 67.0 |
_______________
(a) | Our operating lease expense and short-term lease expense are included in other operating expenses, SG&A expenses and impairment, restructuring and other operating items in our condensed consolidated statements of operations.
(b) | Variable lease expense represents payments made to a lessor during the lease term that vary because of a change in circumstance that occurred after the lease commencement date. Variable lease payments are expensed as incurred and are included in other operating expenses in our condensed consolidated statements of operations.
A summary of our cash outflows from operating and finance leases recorded during the three months ended March 31, 2019 is set forth below (in millions):
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash outflows from operating leases | $ | 35.7 |
Operating cash outflows from finance leases | 8.1 |
Financing cash outflows from finance leases | 18.1 |
Total cash outflows from operating and finance leases | $ | 61.9 |
Maturities of our operating and finance lease obligations as of March 31, 2019 are presented below. Amounts represent U.S. dollar equivalents based on March 31, 2019 exchange rates:
| Operating leases |  | Finance leases
| in millions
Year ending December 31: |  |  |
2019 (remainder of year) | $ | 95.5 |  |  | $ | 91.6 |
2020 | 107.8 |  |  | 103.4 |
2021 | 88.5 |  |  | 94.7 |
2022 | 74.6 |  |  | 92.7 |
2023 | 63.3 |  |  | 91.2 |
2024 | 75.1 |  |  | 51.5 |
Thereafter | 161.1 |  |  | 421.9 |
Total payments | 665.9 |  |  | 947.0 |
Less: present value discount | (140.5 | ) |  | (315.5 | )
Present value of lease payments | $ | 525.4 |  |  | $ | 631.5 |
Current portion | $ | 106.6 |  |  | $ | 81.0 |
Noncurrent portion | $ | 418.8 |  |  | $ | 550.5 |
Maturities of our operating and finance lease obligations as of December 31, 2018 are presented below. Amounts represent U.S. dollar equivalents based on December 31, 2018 exchange rates:
| Operating leases |  | Finance leases
| in millions
Year ending December 31: |  |  |
2019 | $ | 123.9 |  |  | $ | 101.4 |
2020 | 85.4 |  |  | 107.3 |
2021 | 66.6 |  |  | 96.7 |
2022 | 54.3 |  |  | 94.5 |
2023 | 46.8 |  |  | 93.5 |
Thereafter | 178.6 |  |  | 464.0 |
Total payments | $ | 555.6 |  |  | $ | 957.4 |

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