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Leases Leases | 12 Months Ended
--- | ---
Dec. 31, 2019
Leases [Abstract] |
Leases | Leases On January 1, 2019, the Company adopted Accounting Standard Update ("ASU") No. 2016-02, "Leases" (Topic 842) which requires that entities record lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company implemented the new standard using the transition method that provided for adoption on the adoption date and recognizing a cumulative-effect adjustment to retained earnings, if any, upon adoption. Therefore, the consolidated financial statements for the year ended December 31, 2019 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. Refer to Note 1 - Summary of Business Organization, Operations and Significant Accounting Policies - Recent Accounting Pronouncements for further information. The Company has operating and finance leases for facilities, ground leases, office space, computers, copier equipment and transportation vehicles that have remaining lease terms of one year to seventy-seven years, some of which include options to extend the lease for up to ten years. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payments over the term of the lease. Many of GEO's leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Only renewal or termination options that are reasonably certain to be exercised by the Company are included in the lease term which is used in the calculation of lease liabilities and right-of-use assets. GEO does not typically enter into lease agreements that contain a residual guarantee or that provide for variable lease payments. When available, GEO uses the rate implicit in the lease to discount lease payments to present value, however, most of GEO's lease agreements do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Lease related assets and liabilities are recorded on the balance sheet as follows (in thousands):
|  | Classification on the Balance Sheet |  | December 31, 2019
Assets |  |  |  |
Operating lease assets |  | Operating Lease Right-of-Use Assets, Net |  | $ | 121,527 |
Finance lease assets |  | Property and Equipment, Net |  | 2,880 |
Total lease assets |  |  |  | $ | 124,407 |
Liabilities |  |  |  |
Current |  |  |  |
Operating |  | Operating lease liabilities, current portion |  | $ | 26,208 |
Finance [1] |  | Current portion of finance liabilities, long-term debt and non-recourse debt |  | 1,616 |
Noncurrent |  |  |  |
Operating |  | Operating Lease Liabilities |  | 97,291 |
Finance [1] |  | Finance Lease Liabilities |  | 2,954 |
Total lease liabilities |  |  |  | $ | 128,069 |
[1] Also refer to Note 13 - Debt. Certain information related to the lease costs for finance and operating leases is presented as follows (in thousands):
|  |  | Year Ended December 31, 2019
Operating lease cost |  |  | $ | 46,934 |
Finance lease cost: |  |  |
Amortization of right-of-use assets |  |  | 1,023 |
Interest on lease liabilities |  |  | 354 |
Total finance lease cost |  |  | 1,377 |
Short-term lease cost |  |  | 1,953 |
Total lease cost |  |  | $ | 50,264 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows for operating leases |  |  | $ | 48,833 |
Operating cash flows for finance leases |  |  | $ | 323 |
Financing activities for finance leases |  |  | $ | 1,610 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  |  | $ | 12,223 |
Weighted average remaining lease term: |  |  |
Operating leases |  |  | 7.3 years
Finance leases |  |  | 2.7 years
Weighted average discount rate: |  |  |
Operating leases |  |  | 4.75 | %
Finance leases |  |  | 8.27 | %
Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet as of December 31, 2019 (in thousands).
|  | Operating Leases |  | Finance Leases
2020 |  | $ | 31,378 |  |  | $ | 1,934 |
2021 |  | 26,188 |  |  | 1,936 |
2022 |  | 19,691 |  |  | 1,233 |
2023 |  | 16,044 |  |  | — |
2024 |  | 13,527 |  |  | — |
Thereafter |  | 41,652 |  |  | — |
Total minimum lease payments |  | 148,480 |  |  | 5,103 |
Less: amount of lease payment representing interest |  | (24,981 | ) |  | (533 | )
Present value of future minimum lease payments |  | 123,499 |  |  | 4,570 |
Less: current obligations under leases |  | (26,208 | ) |  | (1,616 | )
Long-term lease obligations |  | $ | 97,291 |  |  | $ | 2,954 |
Leases | Leases On January 1, 2019, the Company adopted Accounting Standard Update ("ASU") No. 2016-02, "Leases" (Topic 842) which requires that entities record lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company implemented the new standard using the transition method that provided for adoption on the adoption date and recognizing a cumulative-effect adjustment to retained earnings, if any, upon adoption. Therefore, the consolidated financial statements for the year ended December 31, 2019 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. Refer to Note 1 - Summary of Business Organization, Operations and Significant Accounting Policies - Recent Accounting Pronouncements for further information. The Company has operating and finance leases for facilities, ground leases, office space, computers, copier equipment and transportation vehicles that have remaining lease terms of one year to seventy-seven years, some of which include options to extend the lease for up to ten years. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payments over the term of the lease. Many of GEO's leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Only renewal or termination options that are reasonably certain to be exercised by the Company are included in the lease term which is used in the calculation of lease liabilities and right-of-use assets. GEO does not typically enter into lease agreements that contain a residual guarantee or that provide for variable lease payments. When available, GEO uses the rate implicit in the lease to discount lease payments to present value, however, most of GEO's lease agreements do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Lease related assets and liabilities are recorded on the balance sheet as follows (in thousands):
|  | Classification on the Balance Sheet |  | December 31, 2019
Assets |  |  |  |
Operating lease assets |  | Operating Lease Right-of-Use Assets, Net |  | $ | 121,527 |
Finance lease assets |  | Property and Equipment, Net |  | 2,880 |
Total lease assets |  |  |  | $ | 124,407 |
Liabilities |  |  |  |
Current |  |  |  |
Operating |  | Operating lease liabilities, current portion |  | $ | 26,208 |
Finance [1] |  | Current portion of finance liabilities, long-term debt and non-recourse debt |  | 1,616 |
Noncurrent |  |  |  |
Operating |  | Operating Lease Liabilities |  | 97,291 |
Finance [1] |  | Finance Lease Liabilities |  | 2,954 |
Total lease liabilities |  |  |  | $ | 128,069 |
[1] Also refer to Note 13 - Debt. Certain information related to the lease costs for finance and operating leases is presented as follows (in thousands):
|  |  | Year Ended December 31, 2019
Operating lease cost |  |  | $ | 46,934 |
Finance lease cost: |  |  |
Amortization of right-of-use assets |  |  | 1,023 |
Interest on lease liabilities |  |  | 354 |
Total finance lease cost |  |  | 1,377 |
Short-term lease cost |  |  | 1,953 |
Total lease cost |  |  | $ | 50,264 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows for operating leases |  |  | $ | 48,833 |
Operating cash flows for finance leases |  |  | $ | 323 |
Financing activities for finance leases |  |  | $ | 1,610 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  |  | $ | 12,223 |
Weighted average remaining lease term: |  |  |
Operating leases |  |  | 7.3 years
Finance leases |  |  | 2.7 years
Weighted average discount rate: |  |  |
Operating leases |  |  | 4.75 | %
Finance leases |  |  | 8.27 | %
Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet as of December 31, 2019 (in thousands).
|  | Operating Leases |  | Finance Leases
2020 |  | $ | 31,378 |  |  | $ | 1,934 |
2021 |  | 26,188 |  |  | 1,936 |
2022 |  | 19,691 |  |  | 1,233 |
2023 |  | 16,044 |  |  | — |
2024 |  | 13,527 |  |  | — |
Thereafter |  | 41,652 |  |  | — |
Total minimum lease payments |  | 148,480 |  |  | 5,103 |
Less: amount of lease payment representing interest |  | (24,981 | ) |  | (533 | )
Present value of future minimum lease payments |  | 123,499 |  |  | 4,570 |
Less: current obligations under leases |  | (26,208 | ) |  | (1,616 | )
Long-term lease obligations |  | $ | 97,291 |  |  | $ | 2,954 |

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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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- 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
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