Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.2
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Cumulative Effect of Adjustments for Adoption of Topic 842 The adoption of ASC 842, “Leases,” did not have a material effect on our unaudited condensed consolidated statements of income or our unaudited condensed consolidated statements of cash flows. The effect of the adoption of ASC 842, “Leases,” on our unaudited condensed consolidated balance sheets as of January 1, 2019 and June 30, 2019 was as follows:
Before Impact of ASC 842 Effects of Adoption of ASC 842 After Impact of ASC 842
December 31, 2018 January 1, 2019
Balance Sheet (In thousands)
Assets:
Property and Equipment, net $ 1,178,489  $ (18,948) $ 1,159,541 
Other Intangible Assets, net 69,705 (4,005) 65,700 
Right-of-Use Assets —  406,918  406,918 
Liabilities:
Current lease liabilities $ —  $ 48,832  $ 48,832 
Other accrued liabilities 257,823  (1,987) 255,836 
Long-Term Debt 918,779  (20,557) 898,222 
Long-Term Lease Liabilities —  370,647  370,647 
Other Long-Term Liabilities 75,887  (2,508) 73,379 
Deferred Income Taxes 33,178  (3,034) 30,144 
Stockholders' Equity:
Retained earnings $ 670,691  $ (7,428) $ 663,263 

Adoption
of ASC 842 as of
January 1, 2019		 New
Leases		 Modifications (1) Amortization As Reported June 30, 2019
(In thousands)
Right-of-Use Assets:
Finance Leases $ 18,948  $ 38  $ 21,514  $ (1,572) $ 38,928 
Operating Leases 387,970  —  (33,710) (20,735) 333,525 
Total Right-of-Use Assets $ 406,918  $ 38  $ (12,196) $ (22,307) $ 372,453 
Current Lease Liabilities:
Finance Leases $ 728  $ 3  $ 4,552  $ (133) $ 5,150 
Operating Leases 48,104  89  (1,615) (2,101) 44,477 
Total Current Lease Liabilities $ 48,832  $ 92  $ 2,937  $ (2,234) $ 49,627 
Long-Term Lease Liabilities:
Finance Leases $ 19,829  $ 35  $ 16,935  $ (579) $ 36,220 
Operating Leases 350,818  —  (32,200) (19,609) 299,009 
Total Long-Term Lease Liabilities $ 370,647  $ 35  $ (15,265) $ (20,188) $ 335,229 
Lease Expenses
Three Months Ended June 30, 2019 Six Months Ended June 30, 2019
Lease Expense (In thousands)
Finance lease expense:
Amortization of right-of-use assets $ 862  $ 1,572 
Interest on lease liabilities 1,339  2,515 
Operating lease expense (1) 17,057  35,054 
Short-term lease expense (1) 473  900 
Variable lease expense 683  797 
Sublease income (3,806) (7,384)
Total $ 16,608  $ 33,454 
(1) Included in operating cash flows in the accompanying unaudited condensed consolidated statements of cash flows.
Three Months Ended June 30, 2019 Six Months Ended June 30, 2019
(In thousands)
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
      Financing cash flows for finance leases $ 502  $ 782 
      Operating cash flows for finance leases $ 1,339  $ 2,515 
      Operating cash flows for operating leases $ 18,315  $ 36,784 
Right-of-use assets obtained in exchange for lease liabilities:
      Finance leases $ 9,290  $ 19,273 
      Operating leases (1) $ 1,541  $ (9,170)

(1) Includes the impact of reclassification of right-of-use assets from operating leases to finance leases due to remeasurement.
June 30, 2019
Other Information
Weighted-average remaining lease term (in years):
      Finance leases 11.22
      Operating leases 9.66
Weighted-average discount rate:
      Finance leases 18.33  %
      Operating leases 6.87  %
Lessee, Operating Lease, Liability, Maturity
Undiscounted Lease Cash Flows Under ASC 842 as of June 30, 2019
Finance Operating Receipts from Subleases
Year Ending December 31, (In thousands)
2019 $ 6,965  $ 33,956  $ (8,045)
2020 6,535  63,257  (11,545)
2021 6,667  55,960  (9,299)
2022 6,667  48,103  (6,612)
2023 6,719  46,335  (6,612)
Thereafter 49,922  235,548  (9,744)
Total $ 83,475  $ 483,159  $ (51,857)
Less: Present value discount (42,105) (139,673)
Lease liabilities $ 41,370  $ 343,486 
For comparison purposes the following table provides the future minimum lease payments as presented in our Annual Report on Form 10-K for the year ended December 31, 2018 in accordance with ASC 840, “Leases,”.
Undiscounted Lease Cash Flows Under ASC 842 as of December 31, 2018
Finance Operating Receipts from Subleases
Year Ending December 31, (In thousands)
2019 $ 6,985  $ 82,177  $ (13,430)
2020 7,165  66,023  (10,508)
2021 7,357  51,501  (8,534)
2022 7,374  37,152  (7,232)
2023 7,609  33,486  (7,013)
Thereafter 482,390  127,026  (13,116)
Total minimum lease payments (receipts) $ 518,880  $ 397,365  $ (59,833)
Less: Present value discount (498,291)
Lease liabilities $ 20,589 
Current portion of lease liabilities $ 643 
Long-term portion of lease liabilities $ 19,946 
Finance Lease, Liability, Maturity
Undiscounted Lease Cash Flows Under ASC 842 as of June 30, 2019
Finance Operating Receipts from Subleases
Year Ending December 31, (In thousands)
2019 $ 6,965  $ 33,956  $ (8,045)
2020 6,535  63,257  (11,545)
2021 6,667  55,960  (9,299)
2022 6,667  48,103  (6,612)
2023 6,719  46,335  (6,612)
Thereafter 49,922  235,548  (9,744)
Total $ 83,475  $ 483,159  $ (51,857)
Less: Present value discount (42,105) (139,673)
Lease liabilities $ 41,370  $ 343,486 
For comparison purposes the following table provides the future minimum lease payments as presented in our Annual Report on Form 10-K for the year ended December 31, 2018 in accordance with ASC 840, “Leases,”.
Undiscounted Lease Cash Flows Under ASC 842 as of December 31, 2018
Finance Operating Receipts from Subleases
Year Ending December 31, (In thousands)
2019 $ 6,985  $ 82,177  $ (13,430)
2020 7,165  66,023  (10,508)
2021 7,357  51,501  (8,534)
2022 7,374  37,152  (7,232)
2023 7,609  33,486  (7,013)
Thereafter 482,390  127,026  (13,116)
Total minimum lease payments (receipts) $ 518,880  $ 397,365  $ (59,833)
Less: Present value discount (498,291)
Lease liabilities $ 20,589 
Current portion of lease liabilities $ 643 
Long-term portion of lease liabilities $ 19,946