Quarterly report pursuant to Section 13 or 15(d)

Operating Leases

v3.20.1
Operating Leases
 3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Operating Leases
4.
Operating Leases
 
 
 
 
 
 
 
 
 
 
 
 
The Company has operating leases for all of its facilities and autos. As of March 31, 2020 and December 31, 2019, operating lease
right-of-use
(“ROU”) assets were $114.5 million and $111.1 million, respectively, and the related accumulated amortization was $26.0 million and $20.6 million, respectively.
The operating lease cost, included in selling, general and administrative expense in the condensed consolidated statement of net and comprehensive income, consisted of the following (in thousands):
                 
 
  
Three Months Ended 
March 31,
  
 
  
2020
    
2019
  
Operating lease cost:
   
     
 
Lease cost
 
 
(1)
  
$
 
 
6,263
    $
 
 
5,909
 
Variable lease cost
 
 
(2)
    
1,396
     
1,206
 
Sublease income
   
(77
 )    
(88
 )
                 
  $
7,582
    $
7,027
 
                 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes short-term lease cost and ROU asset amortization.
 
 
 
 
 
 
 
 
 
 
 
 
(2)
Primarily relates to common area maintenance, property taxes, insurance, utilities and parking.
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of lease liabilities by year consisted of the following (in thousands):
 
         
 
March 31,
 
2020
 
Remainder of 2020
  $
15,952
  
2021
   
19,294
  
2022
   
15,342
  
2023
   
12,065
  
2024
   
9,887
  
Thereafter
   
14,838
  
         
Total future minimum lease payments
   
87,378
  
Less imputed interest
   
(7,986
 )
         
Present value of operating lease liabilities
  $
79,392
  
         
 
 
 
 
 
 
 
 
 
 
 
Supplemental cash flow information and noncash activity related to the operating leases consisted of the following (in thousands):
                 
 
Three Months Ended
March 31,
 
 
2020
   
2019
 
Operating cash flow information:
   
     
 
Cash paid for amounts included in the measurement of operating lease liabilities
  $
5,223
    $
4,842
 
Noncash activity:
   
     
 
ROU assets obtained in exchange for operating lease liabilities
   $
 
 
3,109
    $
 
 
3,227
 
Tenant improvements owned by lessor related to ROU assets
(1)
   $
317
    $
1,306
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Reclassification from other assets current.
 
 
 
 
 
 
 
 
 
 
 
 
Other information related to the operating leases consisted of the following:
                 
 
March 31, 2020
   
December 31, 2019
 
Weighted average remaining operating lease term
   
5.04 years
     
5.04 years
 
Weighted average discount rate
   
3.7
 %    
3.8
 %