Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.1
Leases
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Leases Leases
The Company primarily leases buildings and equipment. The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Certain real estate leases contain lease and non-lease components, which are accounted for separately.

Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.

All of the Company's leases are currently determined to be operating leases.

Components of Lease Expense

The components of lease expense were as follows (in thousands):
Successor Company Predecessor Company
Three Months Ended March 31, Three Months Ended March 31,
2020 2019
Operating lease cost (a) $ 218    $ 131   
Operating lease cost (b) 962    996   
Total operating lease cost $ 1,180    $ 1,127   

(a)  Amount is included in Cost of services in the unaudited condensed consolidated statements of operations and comprehensive income (loss).
(b)  Amount is included in Selling, general and administrative, including stock-based and long-term incentive compensation in the unaudited condensed consolidated statements of operations and comprehensive income (loss).

Remaining Lease Term and Discount Rate

The following table presents the weighted-average remaining lease term and the weighted-average discount rate:
As of March 31, 2020
Weighted-average remaining lease term for operating leases (in years) 9.3
Weighted-average discount rate for operating leases 11.7  %

All of the Company's lease contracts do not provide a readily determinable implicit rate. For these contracts, the Company's estimated incremental borrowing rate is based on information available either upon adoption of ASU 2016-02, Leases (Topic 842) or at the inception of the lease.
Supplemental Cash Flow Information

The following is the supplemental cash flow information associated with the Company's leases (in thousands):
Successor Company Predecessor Company
Three Months Ended March 31, Three Months Ended March 31,
2020 2019
Cash paid for amounts included in the measurement of lease liabilities:
Lease payments included in cash flows from operating activities (a) $ 1,152    $ 1,069   
Right-of-use assets obtained in exchange for new:
Operating lease liabilities $ 429    $ 15   

(a)  Cash flow impacts from Operating lease right-of-use assets and Operating lease liabilities are presented net on the cash flow statement in changes in Payables and other liabilities.

Maturities of Lease Liabilities

As of March 31, 2020, maturities of lease liabilities were as follows:
Remainder of 2020 $ 2,947   
2021 3,573   
2022 3,435   
2023 3,118   
2024 3,065   
Thereafter 17,264   
Total lease payments $ 33,402   
Less: Interest (13,591)  
Total lease obligations $ 19,811