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Leases Leases
 12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases
Leases

On January 1, 2019, the Company adopted Accounting Standard Update ("ASU") No. 2016-02, "Leases" (Topic 842) which requires that entities record lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company implemented the new standard using the transition method that provided for adoption on the adoption date and recognizing a cumulative-effect adjustment to retained earnings, if any, upon adoption. Therefore, the consolidated financial statements for the year ended December 31, 2019 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. Refer to Note 1 - Summary of Business Organization, Operations and Significant Accounting Policies - Recent Accounting Pronouncements for further information.

The Company has operating and finance leases for facilities, ground leases, office space, computers, copier equipment and transportation vehicles that have remaining lease terms of one year to seventy-seven years, some of which include options to extend the lease for up to ten years. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payments over the term of the lease. Many of GEO's leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Only renewal or termination options that are reasonably certain to be exercised by the Company are included in the lease term which is used in the calculation of lease liabilities and right-of-use assets. GEO does not typically enter into lease agreements that contain a residual guarantee or that provide for variable lease payments.

When available, GEO uses the rate implicit in the lease to discount lease payments to present value, however, most of GEO's lease agreements do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement.

Lease related assets and liabilities are recorded on the balance sheet as follows (in thousands):

 
 
Classification on the Balance Sheet
 
December 31, 2019
Assets
 
 
 
 
  Operating lease assets
 
Operating Lease Right-of-Use Assets, Net
 
$
121,527

  Finance lease assets
 
Property and Equipment, Net
 
2,880

Total lease assets
 
 
 
$
124,407

 
 
 
 
 
Liabilities
 
 
 
 
Current
 
 
 
 
   Operating
 
Operating lease liabilities, current portion
 
$
26,208

   Finance [1]
 
Current portion of finance liabilities, long-term debt and non-recourse debt
 
1,616

Noncurrent
 
 
 
 
   Operating
 
Operating Lease Liabilities
 
97,291

   Finance [1]
 
Finance Lease Liabilities
 
2,954

Total lease liabilities
 
 
 
$
128,069


[1] Also refer to Note 13 - Debt.































Certain information related to the lease costs for finance and operating leases is presented as follows (in thousands):
 
 
 
Year Ended December 31, 2019
Operating lease cost
 
 
$
46,934

Finance lease cost:
 
 
 
    Amortization of right-of-use assets
 
 
1,023

    Interest on lease liabilities
 
 
354

    Total finance lease cost
 
 
1,377

Short-term lease cost
 
 
1,953

Total lease cost
 
 
$
50,264

 
 
 
 
Cash paid for amounts included in the measurement of lease liabilities
 
 
 
    Operating cash flows for operating leases
 
 
$
48,833

    Operating cash flows for finance leases
 
 
$
323

    Financing activities for finance leases
 
 
$
1,610

Right-of-use assets obtained in exchange for new operating lease liabilities
 
 
$
12,223

 
 
 
 
Weighted average remaining lease term:
 
 
 
    Operating leases
 
 
7.3 years
    Finance leases
 
 
2.7 years
Weighted average discount rate:
 
 
 
    Operating leases
 
 
4.75
%
    Finance leases
 
 
8.27
%



Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet as of December 31, 2019 (in thousands).

 
 
Operating Leases
 
Finance Leases
2020
 
$
31,378

 
$
1,934

2021
 
26,188

 
1,936

2022
 
19,691

 
1,233

2023
 
16,044

 
—

2024
 
13,527

 
—

Thereafter
 
41,652

 
—

Total minimum lease payments
 
148,480

 
5,103

Less: amount of lease payment representing interest
 
(24,981
)
 
(533
)
Present value of future minimum lease payments
 
123,499

 
4,570

Less: current obligations under leases
 
(26,208
)
 
(1,616
)
Long-term lease obligations
 
$
97,291

 
$
2,954


Leases
Leases

On January 1, 2019, the Company adopted Accounting Standard Update ("ASU") No. 2016-02, "Leases" (Topic 842) which requires that entities record lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company implemented the new standard using the transition method that provided for adoption on the adoption date and recognizing a cumulative-effect adjustment to retained earnings, if any, upon adoption. Therefore, the consolidated financial statements for the year ended December 31, 2019 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. Refer to Note 1 - Summary of Business Organization, Operations and Significant Accounting Policies - Recent Accounting Pronouncements for further information.

The Company has operating and finance leases for facilities, ground leases, office space, computers, copier equipment and transportation vehicles that have remaining lease terms of one year to seventy-seven years, some of which include options to extend the lease for up to ten years. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payments over the term of the lease. Many of GEO's leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Only renewal or termination options that are reasonably certain to be exercised by the Company are included in the lease term which is used in the calculation of lease liabilities and right-of-use assets. GEO does not typically enter into lease agreements that contain a residual guarantee or that provide for variable lease payments.

When available, GEO uses the rate implicit in the lease to discount lease payments to present value, however, most of GEO's lease agreements do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement.

Lease related assets and liabilities are recorded on the balance sheet as follows (in thousands):

 
 
Classification on the Balance Sheet
 
December 31, 2019
Assets
 
 
 
 
  Operating lease assets
 
Operating Lease Right-of-Use Assets, Net
 
$
121,527

  Finance lease assets
 
Property and Equipment, Net
 
2,880

Total lease assets
 
 
 
$
124,407

 
 
 
 
 
Liabilities
 
 
 
 
Current
 
 
 
 
   Operating
 
Operating lease liabilities, current portion
 
$
26,208

   Finance [1]
 
Current portion of finance liabilities, long-term debt and non-recourse debt
 
1,616

Noncurrent
 
 
 
 
   Operating
 
Operating Lease Liabilities
 
97,291

   Finance [1]
 
Finance Lease Liabilities
 
2,954

Total lease liabilities
 
 
 
$
128,069


[1] Also refer to Note 13 - Debt.































Certain information related to the lease costs for finance and operating leases is presented as follows (in thousands):
 
 
 
Year Ended December 31, 2019
Operating lease cost
 
 
$
46,934

Finance lease cost:
 
 
 
    Amortization of right-of-use assets
 
 
1,023

    Interest on lease liabilities
 
 
354

    Total finance lease cost
 
 
1,377

Short-term lease cost
 
 
1,953

Total lease cost
 
 
$
50,264

 
 
 
 
Cash paid for amounts included in the measurement of lease liabilities
 
 
 
    Operating cash flows for operating leases
 
 
$
48,833

    Operating cash flows for finance leases
 
 
$
323

    Financing activities for finance leases
 
 
$
1,610

Right-of-use assets obtained in exchange for new operating lease liabilities
 
 
$
12,223

 
 
 
 
Weighted average remaining lease term:
 
 
 
    Operating leases
 
 
7.3 years
    Finance leases
 
 
2.7 years
Weighted average discount rate:
 
 
 
    Operating leases
 
 
4.75
%
    Finance leases
 
 
8.27
%



Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet as of December 31, 2019 (in thousands).

 
 
Operating Leases
 
Finance Leases
2020
 
$
31,378

 
$
1,934

2021
 
26,188

 
1,936

2022
 
19,691

 
1,233

2023
 
16,044

 
—

2024
 
13,527

 
—

Thereafter
 
41,652

 
—

Total minimum lease payments
 
148,480

 
5,103

Less: amount of lease payment representing interest
 
(24,981
)
 
(533
)
Present value of future minimum lease payments
 
123,499

 
4,570

Less: current obligations under leases
 
(26,208
)
 
(1,616
)
Long-term lease obligations
 
$
97,291

 
$
2,954