Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies (Tables)

v3.8.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]  
Summary of Lease Exit Accruals

A summary of the activity of these operating lease accruals consists of the following:

 

 

(In thousands)

 

Balance at December 31, 2016

 

$

9,790

 

Lease exit expense (1)

 

 

2,157

 

Payments (2)

 

 

(3,592

)

Lease buyout/other (3)

 

 

(1,877

)

Balance at December 31, 2017

 

$

6,478

 

 

(1)

Expense of approximately $0.1 million is recorded in interest expense, other, net and expense of approximately $0.9 million is recorded in selling, general and administrative expenses in the accompanying consolidated statements of income. In addition, expense of approximately $1.2 million is recorded in income (loss) from discontinued operations in the accompanying consolidated statements of income.

(2)

Amount is recorded as an offset to rent expense in selling, general and administrative expenses, with approximately $1.1 million in continuing operations and $2.5 million in income (loss) from discontinued operations in the accompanying consolidated statements of income.

(3)

Amount represents cash paid to settle deferred maintenance costs related to terminating and exiting leased properties.

Future Minimum Lease Payments for both Continuing and Discontinued Operations

Future minimum lease payments for facility leases and future receipts from subleases as required under non-cancelable operating leases for both continuing and discontinued operations based on current interest rates in effect are as follows:  

 

 

 

Future

Minimum

Lease

Payments,

Net

 

 

Future

Receipts

from

Subleases

 

Year Ending December 31,

 

(In thousands)

 

2018

 

$

86,941

 

 

$

(10,535

)

2019

 

$

73,080

 

 

$

(8,828

)

2020

 

$

47,761

 

 

$

(7,191

)

2021

 

$

35,636

 

 

$

(5,827

)

2022

 

$

26,760

 

 

$

(4,377

)

Thereafter

 

$

95,949

 

 

$

(10,982

)

 
Financial Covenants Related to Amended Subordination and Guaranty Agreement

The required financial covenants related to certain lease agreements are as follows:

 

 

 

Covenant

 

 

 

Minimum Consolidated Liquidity Ratio

 

 

Minimum Consolidated Fixed Charge Coverage Ratio

 

 

Maximum Consolidated Total Lease Adjusted Leverage Ratio

 

 

Minimum EBTDAR to Rent Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Required ratio

 

 

1.05

 

 

 

1.20

 

 

 

5.75

 

 

 

1.50

 

December 31, 2017 actual

 

 

1.13

 

 

 

1.65

 

 

 

4.72

 

 

 

3.85