XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.20.2

Leases | 9 Months Ended
--- | ---
Sep. 30, 2020
Leases [Abstract] |
Leases |
9. | Leases
The Company’s lease portfolio primarily consists of finance and operating real estate leases integral for facility operations. The original terms of the leases typically range from five to 30 years with optional renewal periods. A minimal portion of the Company’s lease portfolio consists of non-real estate leases, including copiers and equipment, which generally have lease terms of one to three years and have insignificant lease obligations. The Company has elected the accounting policy practical expedients by class of underlying asset in ASC 842 “Leases” to: (i) combine associated lease and non-lease components into a single lease component; and (ii) exclude recording short-term leases as right-of-use assets and liabilities on the condensed consolidated balance sheets. Non-lease components, which are not significant overall, are combined with lease components. Operating lease liabilities are recorded at the present value of remaining lease payments not yet paid for the lease term discounted using the incremental borrowing rate associated with each lease. Operating lease right-of-use assets represent operating lease liabilities adjusted for prepayments, accrued lease payments, lease incentives and initial direct costs. Certain of the Company’s leases include renewal or termination options. Calculation of operating lease right-of-use assets and liabilities include the initial lease term unless it is reasonably certain a renewal or termination option will be exercised. Variable components of lease payments fluctuating with a future index or rate, as well as those related to common area maintenance costs, are not included in determining lease payments and are expensed as incurred. Most of the Company’s leases do not contain implicit borrowing rates, and therefore, incremental borrowing rates are calculated based on information available at the lease commencement date. Incremental borrowing rates reflect the Company’s estimated interest rates for collateralized borrowings over similar lease terms. Additionally, the Company reviews service agreements for embedded lease and right-of-use assets and liabilities as necessary. Lease Position The Company recorded the following at September 30, 2020 and December 31, 2019 on the condensed consolidated balance sheets (in thousands):
Right-of-Use Assets |  | Balance Sheet Classification |  | September 30, 2020 |  |  | December 31, 2019 |
Finance lease right-of-use assets |  | Property and equipment, net |  | $ | 43,663 |  |  | $ | 44,370 |
Operating lease right-of-use assets |  | Operating lease right-of-use assets |  |  | 464,596 |  |  |  | 501,837 |
Total |  |  |  | $ | 508,259 |  |  | $ | 546,207 |
Lease Liabilities |  | Balance Sheet Classification |  | September 30, 2020 |  |  | December 31, 2019 |
Current: |  |  |  |  |  |  |  |  |  |
Finance lease liabilities |  | Other accrued liabilities |  | $ | 35,319 |  |  | $ | 6,819 |
Operating lease liabilities |  | Current portion of operating lease liabilities |  |  | 30,433 |  |  |  | 29,140 |
Noncurrent: |  |  |  |  |  |  |  |  |  |
Finance lease liabilities |  | Other liabilities |  |  | 14,704 |  |  |  | 43,662 |
Operating lease liabilities |  | Operating lease liabilities |  |  | 477,355 |  |  |  | 502,252 |
Total |  |  |  | $ | 557,811 |  |  | $ | 581,873 |
Weighted-average remaining lease terms and discount rates were as follows at September 30, 2020 and December 31, 2019:
|  | September 30, 2020 |  |  | December 31, 2019 |
Weighted-average remaining lease term (in years): |  |  |  |  |  |  |  |
Finance |  | 6.3 |  |  | 6.9 |
Operating |  |  | 18.7 |  |  | 19.4 |
Weighted-average discount rate: |  |  |  |  |  |  |  |
Finance |  |  | 6.4 | % |  |  | 6.4 | %
Operating |  |  | 6.3 | % |  |  | 6.3 | %
Lease Costs The Company recorded the following lease costs for the three and nine months ended September 30, 2020 and 2019 (in thousands):
| Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
| 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Finance lease costs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation of leased assets |  | 1,151 |  |  |  | 1,036 |  |  |  | 3,336 |  |  |  | 3,295 |
Interest of lease liabilities |  | 995 |  |  |  | 977 |  |  |  | 2,977 |  |  |  | 2,973 |
Total finance lease costs | $ | 2,146 |  |  | $ | 2,013 |  |  | $ | 6,313 |  |  | $ | 6,268 |
Operating lease costs |  | 16,616 |  |  |  | 15,873 |  |  |  | 49,436 |  |  |  | 48,639 |
Variable lease costs |  | 1,311 |  |  |  | 1,229 |  |  |  | 4,181 |  |  |  | 3,159 |
Short term lease costs |  | 1,407 |  |  |  | 1,378 |  |  |  | 3,725 |  |  |  | 4,308 |
Other lease costs |  | 1,848 |  |  |  | 1,654 |  |  |  | 5,491 |  |  |  | 4,754 |
Total rents and leases | $ | 21,182 |  |  | $ | 20,134 |  |  | $ | 62,833 |  |  | $ | 60,860 |
Total lease costs | $ | 23,328 |  |  | $ | 22,147 |  |  | $ | 69,146 |  |  | $ | 67,128 |
For the three months ended September 30, 2020, the Company recorded a non-cash lease impairment charge of $16.4 million related to the decision to close certain U.K. elderly care facilities. Other Undiscounted cash flows for finance and operating leases recorded on the condensed consolidated balance sheets were as follows at September 30, 2020 (in thousands):
|  | Finance Leases |  |  | Operating Leases |
For the three months ending December 31, 2020 |  | $ | 1,963 |  |  | $ | 15,765 |
2021 |  |  | 36,384 |  |  |  | 60,732 |
2022 |  |  | 3,481 |  |  |  | 55,565 |
2023 |  |  | 2,218 |  |  |  | 50,870 |
2024 |  |  | 1,340 |  |  |  | 48,471 |
Thereafter |  |  | 25,090 |  |  |  | 670,965 |
Total minimum lease payments |  |  | 70,476 |  |  |  | 902,368 |
Less: amount of lease payments representing interest |  |  | 20,453 |  |  |  | 394,580 |
Present value of future minimum lease payments |  |  | 50,023 |  |  |  | 507,788 |
Less: Current portion of lease liabilities |  |  | 35,319 |  |  |  | 30,433 |
Noncurrent lease liabilities |  | $ | 14,704 |  |  | $ | 477,355 |
Supplemental data for the three and nine months ended September 30, 2020 and 2019 was as follows (in thousands):
| Nine Months Ended September 30, |
| 2020 |  |  | 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows for operating leases | $ | 47,697 |  |  | $ | 45,576 |
Operating cash flows for finance leases | $ | 2,977 |  |  | $ | 2,973 |
Financing cash flows for finance leases | $ | 3,151 |  |  | $ | 2,701 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |
Operating leases | $ | 21,560 |  |  | $ | 15,623 |
Finance leases | $ | 2,896 |  |  | $ | 2,457 |

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