Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Jun. 30, 2020


The Company leases certain buildings, vehicles, and equipment in order to reduce the risk associated with ownership. The Company elected the practical expedient approach permitted under ASC 842 not to include short-term leases with a duration of 12 months or less on the balance sheet. As of June 30, 2020 and December 31, 2019, all leases were classified as operating leases. Building leases generally carry terms of 5 to 10 years with annual rent escalations at fixed amounts per the lease. Vehicle leases generally carry a fixed term of one year with renewal options to extend the lease on a monthly basis resulting in lease terms up to 5 years depending on the class of vehicle. The exercise of renewal options is at the Company’s sole discretion. It is reasonably certain that the Company will exercise the renewal options on its vehicle leases. The measurement of right-of-use assets and liabilities for vehicle leases includes the fixed payments associated with such renewal periods. We separate lease and non-lease components of contracts. Our lease agreements do not contain any material variable payments, residual value guarantees, early termination penalties or restrictive covenants.

The Company uses the rate implicit in the lease when available; however, most of our leases do not provide a readily determinable implicit rate. Accordingly, we estimate our incremental borrowing rate based on information available at lease commencement.


(in thousands)          
Lease Classification   Financial Statement Classification   Six Months Ended
June 30, 2020
Short-term lease cost   Cost of services provided, Sales, general, and administrative expenses   133  
Operating lease cost   Cost of services provided, Sales, general, and administrative expenses     42,024  
Total lease expense       42,157  
Other Information            
Weighted-average remaining lease term – operating leases   3.78  
Weighted-average discount rate – operating leases   3.93  
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows for operating leases  41,599  


Lease Commitments

Future minimum lease payments, including assumed exercise of renewal options at June 30, 2020 were as follows:

(in thousands)   Operating
2020 (excluding the six months ended June 30, 2020)   $ 40,717  
2021     71,763  
2022     53,682  
2023     33,800  
2024     14,063  
2025     7,913  
Thereafter     11,987  
Total Future Minimum Lease Payments   $ 233,925  
Less: Amount representing interest   $ 17,585  
Total future minimum lease payments, net of interest   $ 216,340  


Total future minimum lease payments for operating leases, including the amount representing interest, are comprised of $95.0 million for building leases and $138.9 million for vehicle leases. As of June 30, 2020, the Company had no additional future obligations for leases that had not yet commenced.