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LEASES

6 Months Ended

Jun. 30, 2020

LEASESThe Company has operating and finance leases for facilities, corporate offices, and certain equipment. The Company recognizes lease expense for these operating leases on a straight-line basis over the lease term. Leases with an initial term of one year or less are not recorded on the balance sheet. The Company's other leases have original lease terms of one to twelve years, some of which include options to extend the lease for up to twenty years, and some of which include options to terminate the leases within one year. The exercise of lease renewal options is at our sole discretion. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Upon adoption of Topic 842, the Company elected the practical expedient to not separate lease and non-lease components for all of its leases as the non-lease components are not significant to the overall lease costs.

Leases


	Classification	June 30, 2020		December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	297,296	$	310,238
Finance lease assets	Property and equipment, net^(a)	618		906
Total leased assets		$	297,914	$	311,144

Liabilities
Current
Operating	Current portion of operating lease liabilities	$	25,390	$	23,736
Finance	Current portion of long-term debt and finance lease obligations	238		231
Noncurrent
Operating	Operating lease liabilities, less current portion	282,696		295,636
Finance	Long-term debt and finance lease obligations, less current portion and deferred financing costs, net	376		445
Total lease liabilities		$	308,700	$	320,048

^(a)Finance lease assets are recorded net of accumulated amortization of $422 and $1,522 as of June 30, 2020 and December 31, 2019, respectively.

Lease Cost of Continuing Operations


		Three Months Ended June 30,
	Classification	2020		2019
Operating lease cost ^(a)	Lease and rent expense	$	13,523	$	13,114
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	55		76
Interest on finance lease liabilities	Interest expense, net	10		15
Short term lease cost	Operating expense	155		162
Net lease cost		$	13,743	$	13,367

^(a)Includes variable lease costs, which are immaterial


		Six Months Ended June 30,
	Classification	2020		2019
Operating lease cost (a)	Lease and rent expense	$	27,036	$	26,229
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	116		143
Interest on finance lease liabilities	Interest expense, net	19		26
Short term lease cost	Operating expense	334		303
Net lease cost		$	27,505	$	26,701

(a) Includes variable lease costs, which are immaterial

Maturity of Lease Liabilities


As of June 30, 2020
	Operating Leases ^(a)		Finance Leases ^(a)		Total

2020	$	51,388	$	273	$	51,661
2021	52,387		235		52,622
2022	53,395		114		53,509
2023	53,956		46		54,002
2024	54,169		—		54,169
After 2024	173,361		—		173,361
Total lease payments	$	438,656	$	668	$	439,324
Less: Interest	(130,570)		(54)		(130,624)
Present value of lease liabilities	$	308,086	$	614	$	308,700

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

The measurement of right-of-use assets and lease liabilities requires the Company to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, the Company utilizes an incremental borrowing rate, which represents the rate of interest that it would pay to borrow on a collateralized basis over a similar term.

Lease Term and Discount Rate


	June 30, 2020	December 31, 2019

Weighted-average remaining lease term (years)
Operating leases	8.34	8.81
Finance leases	2.65	3.00
Weighted-average discount rate
Operating leases	8.9%	8.9%
Finance leases	6.1%	6.1%

Other Information


	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	25,347	$	29,033
Operating cash flows for finance leases	$	19	$	26
Financing cash flows for finance leases	$	113	$	250
Acquisition of operating leases through adoption of ASC 842	$	—	$	389,403

LEASES

Leases


	Classification	June 30, 2020		December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	297,296	$	310,238
Finance lease assets	Property and equipment, net^(a)	618		906
Total leased assets		$	297,914	$	311,144

Liabilities
Current
Operating	Current portion of operating lease liabilities	$	25,390	$	23,736
Finance	Current portion of long-term debt and finance lease obligations	238		231
Noncurrent
Operating	Operating lease liabilities, less current portion	282,696		295,636
Finance	Long-term debt and finance lease obligations, less current portion and deferred financing costs, net	376		445
Total lease liabilities		$	308,700	$	320,048

^(a)Finance lease assets are recorded net of accumulated amortization of $422 and $1,522 as of June 30, 2020 and December 31, 2019, respectively.

Lease Cost of Continuing Operations


		Three Months Ended June 30,
	Classification	2020		2019
Operating lease cost ^(a)	Lease and rent expense	$	13,523	$	13,114
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	55		76
Interest on finance lease liabilities	Interest expense, net	10		15
Short term lease cost	Operating expense	155		162
Net lease cost		$	13,743	$	13,367

^(a)Includes variable lease costs, which are immaterial


		Six Months Ended June 30,
	Classification	2020		2019
Operating lease cost (a)	Lease and rent expense	$	27,036	$	26,229
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	116		143
Interest on finance lease liabilities	Interest expense, net	19		26
Short term lease cost	Operating expense	334		303
Net lease cost		$	27,505	$	26,701

(a) Includes variable lease costs, which are immaterial

Maturity of Lease Liabilities


As of June 30, 2020
	Operating Leases ^(a)		Finance Leases ^(a)		Total

2020	$	51,388	$	273	$	51,661
2021	52,387		235		52,622
2022	53,395		114		53,509
2023	53,956		46		54,002
2024	54,169		—		54,169
After 2024	173,361		—		173,361
Total lease payments	$	438,656	$	668	$	439,324
Less: Interest	(130,570)		(54)		(130,624)
Present value of lease liabilities	$	308,086	$	614	$	308,700

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

Lease Term and Discount Rate


	June 30, 2020	December 31, 2019

Weighted-average remaining lease term (years)
Operating leases	8.34	8.81
Finance leases	2.65	3.00
Weighted-average discount rate
Operating leases	8.9%	8.9%
Finance leases	6.1%	6.1%

Other Information


	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	25,347	$	29,033
Operating cash flows for finance leases	$	19	$	26
Financing cash flows for finance leases	$	113	$	250
Acquisition of operating leases through adoption of ASC 842	$	—	$	389,403

LEASES

Leases


	Classification	June 30, 2020		December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	297,296	$	310,238
Finance lease assets	Property and equipment, net^(a)	618		906
Total leased assets		$	297,914	$	311,144

Liabilities
Current
Operating	Current portion of operating lease liabilities	$	25,390	$	23,736
Finance	Current portion of long-term debt and finance lease obligations	238		231
Noncurrent
Operating	Operating lease liabilities, less current portion	282,696		295,636
Finance	Long-term debt and finance lease obligations, less current portion and deferred financing costs, net	376		445
Total lease liabilities		$	308,700	$	320,048

^(a)Finance lease assets are recorded net of accumulated amortization of $422 and $1,522 as of June 30, 2020 and December 31, 2019, respectively.

Lease Cost of Continuing Operations


		Three Months Ended June 30,
	Classification	2020		2019
Operating lease cost ^(a)	Lease and rent expense	$	13,523	$	13,114
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	55		76
Interest on finance lease liabilities	Interest expense, net	10		15
Short term lease cost	Operating expense	155		162
Net lease cost		$	13,743	$	13,367

^(a)Includes variable lease costs, which are immaterial


		Six Months Ended June 30,
	Classification	2020		2019
Operating lease cost (a)	Lease and rent expense	$	27,036	$	26,229
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	116		143
Interest on finance lease liabilities	Interest expense, net	19		26
Short term lease cost	Operating expense	334		303
Net lease cost		$	27,505	$	26,701

(a) Includes variable lease costs, which are immaterial

Maturity of Lease Liabilities


As of June 30, 2020
	Operating Leases ^(a)		Finance Leases ^(a)		Total

2020	$	51,388	$	273	$	51,661
2021	52,387		235		52,622
2022	53,395		114		53,509
2023	53,956		46		54,002
2024	54,169		—		54,169
After 2024	173,361		—		173,361
Total lease payments	$	438,656	$	668	$	439,324
Less: Interest	(130,570)		(54)		(130,624)
Present value of lease liabilities	$	308,086	$	614	$	308,700

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

Lease Term and Discount Rate


	June 30, 2020	December 31, 2019

Weighted-average remaining lease term (years)
Operating leases	8.34	8.81
Finance leases	2.65	3.00
Weighted-average discount rate
Operating leases	8.9%	8.9%
Finance leases	6.1%	6.1%

Other Information


	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	25,347	$	29,033
Operating cash flows for finance leases	$	19	$	26
Financing cash flows for finance leases	$	113	$	250
Acquisition of operating leases through adoption of ASC 842	$	—	$	389,403

LEASES

Leases


	Classification	June 30, 2020		December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	297,296	$	310,238
Finance lease assets	Property and equipment, net^(a)	618		906
Total leased assets		$	297,914	$	311,144

Liabilities
Current
Operating	Current portion of operating lease liabilities	$	25,390	$	23,736
Finance	Current portion of long-term debt and finance lease obligations	238		231
Noncurrent
Operating	Operating lease liabilities, less current portion	282,696		295,636
Finance	Long-term debt and finance lease obligations, less current portion and deferred financing costs, net	376		445
Total lease liabilities		$	308,700	$	320,048

^(a)Finance lease assets are recorded net of accumulated amortization of $422 and $1,522 as of June 30, 2020 and December 31, 2019, respectively.

Lease Cost of Continuing Operations


		Three Months Ended June 30,
	Classification	2020		2019
Operating lease cost ^(a)	Lease and rent expense	$	13,523	$	13,114
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	55		76
Interest on finance lease liabilities	Interest expense, net	10		15
Short term lease cost	Operating expense	155		162
Net lease cost		$	13,743	$	13,367

^(a)Includes variable lease costs, which are immaterial


		Six Months Ended June 30,
	Classification	2020		2019
Operating lease cost (a)	Lease and rent expense	$	27,036	$	26,229
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	116		143
Interest on finance lease liabilities	Interest expense, net	19		26
Short term lease cost	Operating expense	334		303
Net lease cost		$	27,505	$	26,701

(a) Includes variable lease costs, which are immaterial

Maturity of Lease Liabilities


As of June 30, 2020
	Operating Leases ^(a)		Finance Leases ^(a)		Total

2020	$	51,388	$	273	$	51,661
2021	52,387		235		52,622
2022	53,395		114		53,509
2023	53,956		46		54,002
2024	54,169		—		54,169
After 2024	173,361		—		173,361
Total lease payments	$	438,656	$	668	$	439,324
Less: Interest	(130,570)		(54)		(130,624)
Present value of lease liabilities	$	308,086	$	614	$	308,700

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

Lease Term and Discount Rate


	June 30, 2020	December 31, 2019

Weighted-average remaining lease term (years)
Operating leases	8.34	8.81
Finance leases	2.65	3.00
Weighted-average discount rate
Operating leases	8.9%	8.9%
Finance leases	6.1%	6.1%

Other Information


	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	25,347	$	29,033
Operating cash flows for finance leases	$	19	$	26
Financing cash flows for finance leases	$	113	$	250
Acquisition of operating leases through adoption of ASC 842	$	—	$	389,403