Lease (Notes)

9 Months Ended

Sep. 30, 2019

Lessee, Lease, Description [Line Items]

Leases of Lessee Disclosure [Text Block]

LEASES

The Company enters into operating leases for ATM sites, office spaces, retail stores and equipment. The Company's finance leases are immaterial. Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease terms.

The present value of lease payments is determined using the incremental borrowing rate based on information available at the lease commencement date. All leases with fixed payments, including leases with an initial term of 12 months or less are recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Most leases include an option to renew, with renewal terms that can extend the lease terms. The exercise of lease renewal options is at the Company’s sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease terms. The Company also has a unilateral termination right for a majority of the ATM site leases. Since the Company is not reasonably certain to exercise the renewal or terminal options, the options are not considered in determining the lease terms, and associated payment impacts are excluded from lease payments.

Certain of the Company's lease agreements include variable rental payments based on revenues generated from the use of the leased location and certain leases include rental payments adjusted periodically for inflation. Variable lease payments are recognized when the event, activity or circumstance in the lease agreement on which those payments are assessed occurs and are excluded from the right of use assets and lease liabilities balances. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Future minimum lease payments

Future minimum lease payments under the operating leases as of September 30, 2019 are:



	As of September 30, 2019
Maturity of Lease Liabilities (in thousands)	Operating Leases
Remainder of 2019	$	31,069
2020	112,601
2021	81,457
2022	56,546
2023	37,171
Thereafter	57,783
Total lease payments	$	376,627
Less: imputed interest	(24,025		)
Present value of lease liabilities	$	352,602

Future minimum lease payments under the non-cancelable operating leases (with initial lease terms in excess of one year) as of December 31, 2018 were:



(in thousands)	Operating Leases
Year ending December 31,
2019	$	80,803
2020	65,590
2021	49,052
2022	37,823
2023	30,192
Thereafter	48,191
Total minimum lease payments	$	311,651

Lease expense recognized in the Consolidated Statements of Income is summarized as follows:



Lease Expense (in thousands)	Income Statement Classification	Three Months Ended September 30, 2019		Nine months ended September 30, 2019
Operating lease expense	Selling, general and administrative and Direct operating costs	$	35,068	$	98,641
Variable lease expense	Selling, general and administrative and Direct operating costs	12,653		31,541
Total lease expense		$	47,721	$	130,182

Other information about lease amounts recognized in the consolidated financial statements is summarized as follows:



Lease Term and Discount Rate of Operating Leases	As of September 30, 2019
Weighted- average remaining lease term (years)	4.5
Weighted- average discount rate	3.1	%

The following table presents supplemental cash flow and non-cash information related to leases:



Other Information (in thousands)	Nine months ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities (a)	$	97,209
Supplemental non-cash information on lease liabilities arising from obtaining ROU assets:
ROU assets obtained in exchange for new operating lease liabilities	$	176,104

(a) Included in Net cash provided by operating activities on the Company's Consolidated Statements of Cash Flows.