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Leases (Tables)

9 Months Ended

Sep. 30, 2019

Lessee Lease Description [Line Items]

Schedule of Quantitative Information and Other Information Related to Leases

Quantitative information related to leases is presented in the following table (dollars in thousands):

	For the Quarter Ended September 30, 2019			For the Year to Date Ended September 30, 2019
Lease expenses ⁽¹⁾
Fixed lease expenses - operating ⁽¹⁾	$	3,046		$	9,751
Variable lease expenses - operating ⁽¹⁾		2,196			6,830
Sublease income ⁽¹⁾		(1,075	)		(3,332	)
Total lease expenses ⁽¹⁾		4,167			13,249

Other information
Gross operating cash flows for operating leases ⁽²⁾	$	(7,400	)	$	(25,503	)
Operating cash flows from subleases⁽²⁾		1,112			3,417

				As of September 30, 2019
Weighted average remaining lease term (in months) – operating leases					79
Weighted average discount rate – operating leases					5.2	%

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(1)

Lease expense and sublease income represent the amount recorded within our unaudited condensed consolidated statement of income and comprehensive income. Variable lease amounts represent expenses recognized as incurred which are not included in the lease liability. Fixed lease expenses and sublease income are recorded on a straight-line basis over the lease term and therefore are not necessarily representative of cash payments during the same period.

(2)

Cash flows are presented on a consolidated basis, including continuing and discontinued operations, and represent cash payments for fixed and variable lease costs.

Schedule of Future Minimum Lease Payments under Operating Leases Included in Lease Liabilities for Continuing and Discontinued Operations

As of September 30, 2019, future minimum lease payments under operating leases which are included in lease liabilities on our condensed consolidated balance sheet for continuing operations are as follows (dollars in thousands):

	Operating Leases Total

2019⁽¹⁾	$	2,451
2020		17,390
2021		13,505
2022		11,331
2023 and thereafter		35,821
Total	$	80,498
Less: imputed interest		13,485
Present value of future minimum lease payments		67,013
Less: current lease liabilities		12,109
Non-current lease liabilities	$	54,904

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(1) Amounts provided are for liabilities remaining as of September 30, 2019.

As of December 31, 2018, future minimum lease payments under operating leases for continuing and discontinued operations were as follows (dollars in thousands):

	Operating Leases
	Continuing Operations		Discontinued Operations		Total

2019 ⁽¹⁾	$	21,076	$	808	$	21,884
2020		17,728		-		17,728
2021		12,070		-		12,070
2022		8,638		-		8,638
2023 and thereafter		22,298		-		22,298
Total	$	81,810	$	808	$	82,618

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(1)	Amounts include payments due associated with executed early terminations of real estate leases and represent payments for the full year 2019.

Schedule of Future Minimum Sublease Rental Income under Operating Leases

As of September 30, 2019, future minimum sublease rental income under operating leases, which will decrease our future minimum lease payments presented above, is as follows (dollars in thousands):

	Operating Subleases Total
2019⁽¹⁾	$	649
2020		2,765
2021		1,081
2022		777
2023 and thereafter		330
Total	$	5,602

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(1)	Sublease receivables remaining as of September 30, 2019.

ASC 842 [Member]

Lessee Lease Description [Line Items]

Schedule of Transition to ASC 842 on Condensed Consolidated Balance Sheet

Upon transition to ASC 842 as of January 1, 2019, the following beginning balances were restated within our condensed consolidated balance sheet (dollars in thousands):

	December 31, 2018			Impact of Modified Retrospective Adoption of ASC 842			January 1, 2019 Post ASC 842 Adoption

Prepaid expenses ⁽¹⁾	$	7,771		$	(1,502	)	$	6,269
Right of use asset		-			45,963			45,963
Deferred income tax assets, net		81,628			(325	)		81,303
Assets of discontinued operations, non-current		178			57			235
Lease liability - operating, current		-			18,656			18,656
Other accrued expenses, current ⁽¹⁾		19,668			(5,950	)		13,718
Liabilities of discontinued operations, current		536			57			593
Lease liability - operating, non-current		-			48,238			48,238
Deferred rent obligations ⁽¹⁾		12,745			(12,745	)		-
Other liabilities, non-current ⁽¹⁾		17,493			(5,098	)		12,395
Accumulated deficit ⁽²⁾		(52,946	)		1,035			(51,911	)

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(1)	Balances as of December 31, 2018 that related to prepaid rent, remaining lease obligations for vacated spaces and deferred rent obligations were offset with the ROU asset as of January 1, 2019.

(2)

Certain leases resulted in a negative ROU asset upon transition to ASC 842 related to vacated spaces that had liabilities previously established. Those leases that resulted in a negative ROU asset were recorded as an adjustment, net of tax, to accumulated deficit within stockholders equity on our condensed consolidated balance sheet as of January 1, 2019.