XML 23 R9.htm IDEA: XBRL DOCUMENT
v3.19.2

Leases (Notes) | 6 Months Ended
--- | ---
Jun. 30, 2019
Leases [Abstract] |
Leases Disclosure | 3. Leases Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02 Leases (Accounting Standards Codification Topic "ASC" 842), which requires lessees to recognize most operating leases on the balance sheet as a right of use ("ROU") asset and lease liability. The Company adopted this standard using the optional transition method measuring and recognizing the ROU asset and lease liability from operating leases on the condensed consolidated balance sheet without comparative period information or disclosures. The adoption of the standard did not have an effect on the Company’s results of operations, stockholders' equity or cash flows. The Company elected the package of practical expedients which specifies entities do not need to reassess expired or existing contracts as of the adoption date for the following items: (i) determination of whether a contract is or contains a lease, (ii) revising classification of leases and (iii) assessment of initial direct costs. For existing or expired contracts as of the adoption date, the determinations made for these items under the previous accounting standard (ASC 840) were retained at transition, as allowed by this package of practical expedients. The Company has operating leases for corporate offices, branch offices and data centers. At the transition date, the operating lease ROU asset and operating lease liability were $93.9 million and $99.4 million, respectively. The difference between the operating lease ROU asset and operating lease liability is due to deferred rent and prepaid rent balances that were reclassified as a component of the ROU asset at the transition date. The Company's leases have remaining lease terms of one month to eight years. At the inception of a contract, the Company determines if the contract contains a lease. A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date, based on the present value of the future minimum lease payments. Since most of the Company’s leases do not provide an implicit rate of return, the Company uses its incremental borrowing rate (“IBR”) in determining the present value of lease payments. In determining the IBR, the Company considers its credit rating and the current market interest rates. The IBR approximates the interest rate the Company would pay on collateralized debt with similar terms and payments as the lease agreements and in a similar economic environment where the leased assets are located. Leases with an initial term of 12 months or less ("short-term leases") are not recorded on the balance sheet. The Company does not have finance leases. Lease expense is recognized on a straight-line basis over the lease term and is primarily included in selling, general and administrative expenses. Some lease agreements offer renewal options which are assessed against relevant economic factors to determine whether it is reasonably certain that these renewal options will be exercised. As a result of this assessment, for most leases, renewal options were excluded from the minimum lease payments when calculating the operating lease ROU assets and operating lease liabilities, as the Company does not consider the exercise of such options to be reasonably certain. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component for all underlying asset classes. Some leases require variable payments for common area maintenance, property taxes, parking, insurance and other variable costs. The variable portion of lease payments is not included in operating lease ROU assets or operating lease liabilities. Variable lease costs are expensed when incurred. Components of lease expense were as follows (in millions):
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2019 |  | June 30, 2019
Operating lease expense |  | $ | 8.0 |  |  | $ | 15.9 |
Short-term lease expense |  | 0.4 |  |  | 0.8 |
Variable lease expense |  | 1.2 |  |  | 2.3 |
Total lease expense |  | $ | 9.6 |  |  | $ | 19.0 |
The Company leases two properties owned indirectly by certain board members and an executive of the Company. Rent expense for these two properties was $0.3 million and $0.6 million for the three and six months ended June 30, 2019 and 2018. Supplemental cash flow information related to leases for the six months ended June 30, 2019 (in millions):
Cash paid for operating lease liabilities |  | $ | 15.9 |
Operating lease ROU assets obtained in exchange for new operating lease liabilities |  | $ | 7.6 |
Weighted-average remaining lease term of operating leases |  | 4.2 years |
Weighted-average discount rate of operating leases |  | 4.6 | %
Maturities of operating lease liabilities as of June 30, 2019 (in millions):
Remainder of 2019 |  | $ | 15.3 |
2020 |  | 26.9 |
2021 |  | 22.6 |
2022 |  | 17.2 |
2023 |  | 11.8 |
Thereafter |  | 9.0 |
Total future minimum lease payments |  | 102.8 |
Less imputed interest |  | (9.3 | )
Total operating lease liabilities |  | $ | 93.5 |
As of June 30, 2019, the Company has additional operating leases that have not yet commenced, with total future lease payments of approximately $4.5 million. These operating leases will commence in 2019 with lease terms of approximately 6 years. In the prior year, rent expense was $8.7 million and $15.6 million for the three and six months ended June 30, 2018.

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