XML 27 R11.htm IDEA: XBRL DOCUMENT v3.21.1
Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
The Company leases its corporate office headquarters in Fort Worth, Texas, and conducts its business operations through various regional offices located throughout the United States. These operating locations typically include regional offices, storage and maintenance yards, disposal facilities and employee housing sufficient to support its operations in the area. The Company leases most of these properties under either non-cancelable term leases, many of which contain renewal options that can extend the lease term from one to five years and some of which contain escalation clauses, or month-to-month operating leases. Options to renew these leases are generally not considered reasonably certain to be exercised. Therefore, the periods covered by such optional periods are not included in the determination of the term of the lease. The Company also leases supplemental equipment, typically under cancellable short-term contracts which are less than 30 days. Due to the nature of the Company's business, any option to renew these short-term leases is generally not considered reasonably certain to be exercised. Therefore, the periods covered by such optional periods are not included in the determination of the term of the lease, and the lease payments during these periods are similarly excluded from the calculation of operating lease asset and lease liability balances.
During 2020, the Company modified the operating lease for its headquarters office building, which resulted in an extension of the lease term and abatements for certainly monthly periods. In addition, the Company also modified the finance lease for certain of its lease vehicles, resulting in an extension of the lease term and a reduction in monthly lease payments. For each of these modifications, the Company remeasured the asset and liability balances as of the modification date, resulting in a $3.7 million increase for the headquarters office building operating lease and a $0.8 million decrease for the vehicle finance lease. Headquarters office building total lease expense is recognized on a straight line basis over the remaining lease terms. The classification of each modified lease was unchanged.
The following table summarizes the components of the Company's lease expense recognized for the year ended December 31, 2020 and 2019, respectively, excluding variable lease and prepaid rent costs:
Year Ended December 31,
(in thousands)20202019
Operating lease expense:
   Operating lease $6,872 $8,681 
   Short-term lease 4,933 5,691 
Total operating lease expense$11,805 $14,372 
Finance lease expense:
   Amortization of right-of-use assets$11,327 $19,171 
   Interest on lease liabilities2,281 5,005 
Total finance lease expense$13,608 $24,176 
Supplemental information related to leases was as follows:
Year Ended December 31,
20202019
Operating leases
Weighted average remaining lease term2.8 years3.1 years
Weighted average discount rate12.8%14.8%
Finance leases
Weighted average remaining lease term2.2 years2.1 years
Weighted average discount rate8.3%8.2%
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
(in thousands)20202019
Cash paid for amounts included in the measurement of lease liabilities:
   Operating cash outflows from operating leases$11,805 $14,372 
   Operating cash outflows from finance leases2,281 5,005 
   Financing cash outflows from finance leases19,846 29,364 
Future annual minimum operating lease payments were as follows:
(in thousands) Operating Leases Finance Leases
2021$2,380 $7,746 
20222,446 6,442
20232,211 2,994
20241,999 576
20251,506 29
Thereafter5,033 — 
Total lease payments$15,575 $17,787 
Less: Imputed interest(5,151)(801)
Total$10,424 $16,986 
Leases Leases
The Company leases its corporate office headquarters in Fort Worth, Texas, and conducts its business operations through various regional offices located throughout the United States. These operating locations typically include regional offices, storage and maintenance yards, disposal facilities and employee housing sufficient to support its operations in the area. The Company leases most of these properties under either non-cancelable term leases, many of which contain renewal options that can extend the lease term from one to five years and some of which contain escalation clauses, or month-to-month operating leases. Options to renew these leases are generally not considered reasonably certain to be exercised. Therefore, the periods covered by such optional periods are not included in the determination of the term of the lease. The Company also leases supplemental equipment, typically under cancellable short-term contracts which are less than 30 days. Due to the nature of the Company's business, any option to renew these short-term leases is generally not considered reasonably certain to be exercised. Therefore, the periods covered by such optional periods are not included in the determination of the term of the lease, and the lease payments during these periods are similarly excluded from the calculation of operating lease asset and lease liability balances.
During 2020, the Company modified the operating lease for its headquarters office building, which resulted in an extension of the lease term and abatements for certainly monthly periods. In addition, the Company also modified the finance lease for certain of its lease vehicles, resulting in an extension of the lease term and a reduction in monthly lease payments. For each of these modifications, the Company remeasured the asset and liability balances as of the modification date, resulting in a $3.7 million increase for the headquarters office building operating lease and a $0.8 million decrease for the vehicle finance lease. Headquarters office building total lease expense is recognized on a straight line basis over the remaining lease terms. The classification of each modified lease was unchanged.
The following table summarizes the components of the Company's lease expense recognized for the year ended December 31, 2020 and 2019, respectively, excluding variable lease and prepaid rent costs:
Year Ended December 31,
(in thousands)20202019
Operating lease expense:
   Operating lease $6,872 $8,681 
   Short-term lease 4,933 5,691 
Total operating lease expense$11,805 $14,372 
Finance lease expense:
   Amortization of right-of-use assets$11,327 $19,171 
   Interest on lease liabilities2,281 5,005 
Total finance lease expense$13,608 $24,176 
Supplemental information related to leases was as follows:
Year Ended December 31,
20202019
Operating leases
Weighted average remaining lease term2.8 years3.1 years
Weighted average discount rate12.8%14.8%
Finance leases
Weighted average remaining lease term2.2 years2.1 years
Weighted average discount rate8.3%8.2%
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
(in thousands)20202019
Cash paid for amounts included in the measurement of lease liabilities:
   Operating cash outflows from operating leases$11,805 $14,372 
   Operating cash outflows from finance leases2,281 5,005 
   Financing cash outflows from finance leases19,846 29,364 
Future annual minimum operating lease payments were as follows:
(in thousands) Operating Leases Finance Leases
2021$2,380 $7,746 
20222,446 6,442
20232,211 2,994
20241,999 576
20251,506 29
Thereafter5,033 — 
Total lease payments$15,575 $17,787 
Less: Imputed interest(5,151)(801)
Total$10,424 $16,986