The Company has operating leases for all of its facilities and
autos. Lease agreements may contain periods of free rent or reduced
rent, or contain predetermined fixed increases in the minimum rent.
Certain facility leases provide for rental escalations related to
increases in the lessors’ direct operating expenses. As of
March 31, 2019, operating lease ROU assets were
$89.0 million and the related accumulated amortization was
$5.1 million.
The operating lease cost consisted of the following (in
thousands):
|
|
|
|
|
| |
|
Three Months Ended
March 31, 2019 |
|
|
Operating lease cost:
|
|
|
|
|
|
Lease cost (1)
|
|
$ |
5,909 |
|
|
Variable lease cost (2)
|
|
|
1,206 |
|
|
Sublease income (3)
|
|
|
(88 |
) |
|
|
|
|
|
|
|
$ |
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.
|
| (3) |
The Company subleases certain office space to
subtenants. The rental income received from these subleases is
included as a reduction to lease cost.
|
Future minimum lease payments under non-cancelable operating
leases consisted of the following (in thousands):
|
|
|
|
|
| |
|
March 31, 2019 |
|
|
Remainder of 2019
|
|
$ |
15,233 |
|
|
2020
|
|
|
19,376 |
|
|
2021
|
|
|
16,907 |
|
|
2022
|
|
|
12,364 |
|
|
2023
|
|
|
8,778 |
|
|
Thereafter
|
|
|
10,554 |
|
|
|
|
|
|
|
Total future minimum lease payments
|
|
|
83,212 |
|
|
Less imputed interest
|
|
|
(7,360 |
) |
|
|
|
|
|
|
Present value of operating lease liabilities
|
|
$ |
75,852 |
|
|
|
|
|
|
Supplemental cash flow information and noncash activity related to
the operating leases consisted of the following (in thousands):
|
|
|
|
|
| |
|
Three Months Ended
March 31, 2019 |
|
|
Operating cash flow information:
|
|
|
|
|
|
Cash paid for amounts included in the measurement of operating
lease liabilities
|
|
$ |
4,842 |
|
|
Noncash activity:
|
|
|
|
|
|
ROU assets and operating lease liabilities in connection with
adoption of new lease standard
|
|
$
|
76,735 |
|
|
Reclassification of prepaid rent and deferred rent to ROU assets in
connection with adoption of new lease standard
|
|
$ |
7,801 |
|
|
ROU assets obtained in exchange for operating lease liabilities
|
|
$ |
3,227 |
|
|
Initial direct costs related to ROU
assets (1)
|
|
$ |
1,306 |
|
| (1) |
Reclassification from other assets current.
|
Other information related to the operating leases consisted of the
following:
|
|
|
|
|
| |
|
March 31, 2019 |
|
|
Weighted average remaining operating lease term
|
|
|
4.75 years |
|
|
Weighted average discount rate
|
|
|
3.9 |
% |
|