XML 37 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Revenue (Tables)
 9 Months Ended
Sep. 30, 2018
Revenue from Contract with Customer [Abstract]  
Schedule of Remaining Performance Obligation
The Company expects to recognize our remaining performance obligations as revenue in future periods as follows:
(millions, unaudited)
Remaining Performance Obligations
2018
$
13.1

2019
38.3

2020
24.9

2021
12.8

2022
8.0

2023 and thereafter
9.6

Total
$
106.7
Schedule of Contract with Customer, Asset and Liability
The Company adopted the provisions of Topic 853 on January 1, 2018 and upon the adoption, the Company was required to reclassify certain assets used in service concession arrangements that were previously included in Leasehold improvements, equipment and construction in progress, net, to Other assets, net within the Condensed Consolidated Balance Sheet for September 30, 2018 (as discussed previously, the prior period presented has not been recasted).

In addition, the Company has the contractual right to invoice a customer prior to the performance obligation being satisfied in certain contractual arrangements, primarily related to monthly parking arrangements, and therefore effective January 1, 2018; the Company established a contract asset with a corresponding contract liability for the performance obligation expected to be satisfied at a future date. The impact of this change on the Condensed Consolidated Balance Sheet as of September 30, 2018 is as follows:
 
 
Impact of Changes in Accounting Policies as of September 30, 2018
(millions, unaudited)
 
As Reported

Balances without Adoption of Topics 606 and 853

Impact of Adoption
Increase/(Decrease)
Assets
 








Notes and accounts receivable, net (1)
 
$
136.4


$
125.8


$
10.6

Leasehold improvements, equipment and construction in progress, net (2)
 
26.3


26.8


(0.5
)
Other assets, net (2)
 
19.1


18.6


0.5

Liabilities
 








Accrued expenses (1)
 
$
30.4


$
19.8


$
10.6


(1) Approximately $10.6 million and $10.6 million of contract assets and contract liabilities, respectively, were recognized as of September 30, 2018.

(2) Leasehold improvements used in service concession arrangements of approximately $0.5 million were reclassified from Leasehold improvements, equipment and construction in progress to Other assets, net, as of September 30, 2018.
The following table provides information about contract assets and contract liabilities with customers and clients as of September 30, 2018:
(millions, unaudited)
September 30, 2018
Accounts receivable
$
125.6

Contract asset
$
10.8

Contract liability
$
(16.5
)
The following table provides information about changes to contract liability balances for the nine-month period ended September 30, 2018:
(millions, unaudited)
Contract Liability
Balance as of January 1, 2018
$
(20.5
)
Additional contract liabilities
(128.6
)
Recognition of revenue from contract liabilities
132.6

Balance as of September 30, 2018
$
(16.5
)

The following table provides information about changes to contract asset balances for the nine-month period ended September 30, 2018:
(millions, unaudited)
Contract Asset
Balance as of January 1, 2018
$
12.2

Additional contract assets
100.0

Reclassification to accounts receivable
(101.4
)
Balance as of September 30, 2018
$
10.8
Schedule of Amortization Expense Related to Cost of Contracts
The adoption of Topics 606 and 853 had no impact to the Company’s Operating income or Net income for the three and nine months ended September 30, 2018. Certain expenses, primarily rental expense for the contractual arrangements that meet the definition of service concession arrangements under Topic 853, have been recorded as a reduction of revenue for the three and nine months ended September 30, 2018 (as discussed above, prior periods have not been recasted).

The impact of this change to gross profit and depreciation and amortization for the three and nine months ended September 30, 2018 was as follows:
 
Impact of Changes in Accounting Policies for the Three Months Ended September 30, 2018
 
Impact of Changes in Accounting Policies for the Nine Months Ended September 30, 2018
(millions, unaudited)
As Reported
 
Balances without Adoption of Topics 853 and 606
 
Impact of Adoption
Increase/(Decrease)
 
As Reported

Balances without Adoption of Topics 853 and 606

Impact of Adoption
Increase/(Decrease)
Parking services revenue
 
 
 
 
 
 








Lease type contracts (1)
$
104.7

 
$
138.5

 
$
(33.8
)
 
$
311.6


$
411.1


$
(99.5
)
Management type contracts
82.6

 
82.6

 
—

 
264.8


264.8


—

 
187.3

 
221.1

 
(33.8
)
 
576.4

 
675.9

 
(99.5
)
Reimbursed management type contract revenue
174.8

 
174.8

 
—

 
514.8


514.8


—

Total parking services revenue
362.1

 
395.9

 
(33.8
)
 
1,091.2


1,190.7


(99.5
)
Cost of parking services
 
 
 
 
 
 








Lease type contracts (1)
94.2

 
128.0

 
(33.8
)
 
283.2


382.6


(99.4
)
Management type contracts
48.1

 
48.1

 
—

 
157.6


157.6


—

 
142.3

 
176.1

 
(33.8
)
 
440.8

 
540.2

 
(99.4
)
Reimbursed management type contract expense
174.8

 
174.8

 
—

 
514.8


514.8


—

Total cost of parking services
317.1

 
350.9

 
(33.8
)
 
955.6


1,055.0


(99.4
)
Gross profit
 
 
 
 
 
 
 







Lease type contracts
10.5

 
10.5

 
—

 
28.4


28.5


(0.1
)
Management type contracts
34.5

 
34.5

 
—

 
107.2


107.3


(0.1
)
Total gross profit
$
45.0

 
$
45.0

 
$
—

 
$
135.6


$
135.8


$
(0.2
)
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
$
4.2

 
$
4.3

 
$
(0.1
)
 
$
12.7

 
$
13.0

 
$
(0.3
)

(1) Certain expenses, primarily rental expense for contractual arrangements that meet the definition of a service concession arrangement under Topic 853, of approximately $33.8 million and $99.4 million that would have been previously classified as Cost of parking services - lease type contracts have been classified as a reduction of revenue and included in Parking services revenue - lease type contracts for the three and nine months ended September 30, 2018, respectively.

The table below shows amortization expense related to cost of contracts for the three and nine months ended September 30, 2018 and 2017, respectively. Amortization expense of cost of contracts related to service concession arrangements within the scope of Topic 853 is recorded as a reduction of revenue and was not significant for the three and nine months ended September 30, 2018 and 2017, respectively.
 
Three Months Ended
Nine Months Ended
(millions, unaudited)
September 30, 2018
 
September 30, 2017
September 30, 2018
 
September 30, 2017
Amortization expense related to cost of contract included in depreciation and amortization
$
0.8

 
$
0.8

$
2.3

 
$
2.5