Commitments Under Operating Leases |
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| Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments Under Operating Leases | Commitments Under Operating Leases The Company and its subsidiaries lease certain office space, computer equipment, and automobiles under operating leases. For office leases that contain scheduled rent increases or rent concessions, the Company recognizes monthly rent expense based on a calculated average monthly rent amount that considers the rent increases and rent concessions over the life of the lease term. Leasehold improvements of a capital nature that are made to leased office space under operating leases are amortized over the shorter of the term of the lease or the estimated useful life of the improvement. License and maintenance costs related to leased vehicles are paid by the Company and are expensed as incurred. Rental expenses, net of amortization of any incentives provided by lessors, for operating leases consisted of the following:
At December 31, 2015, future minimum payments under non-cancelable operating leases with terms of more than 12 months were as follows:
Where applicable, the amounts above include sales taxes. Significant Operating Leases and Subleases Effective June 24, 2015, the Company entered into 10-year operating leases for approximately 16,000 square feet of office space in London, England, for its International segment as a replacement and consolidation of certain of its London facilities. The Company has total lease payments associated with the leases of approximately $15,000,000 subject to market rate adjustments on the fifth anniversary of the lease commitment date. Additionally, the Company is responsible for certain value-added taxes and operating expenses, which are excluded from the table above. In November 2014, the Company entered into an amendment and extension of an existing lease, resulting in a 7 years, 5 months operating lease agreement for approximately 50,000 square feet of office space in Jacksonville, FL, for its U.S. Contractor Connection service line in its U.S. Services segment. The amended lease on the expanded premises began January 1, 2015. Total lease payments over the remaining lease term are approximately $4,806,000. Additionally, the Company is responsible for certain related real estate taxes and operating expenses, which are excluded from the table above. In January 2013, the Company entered into a 10-year operating lease for approximately 24,000 square feet of office space in Berkeley Heights, NJ, primarily for its Broadspire segment. The lease began July 1, 2013. Total lease payments over the remaining lease term are approximately $5,379,000. Additionally, the Company is responsible for certain related real estate taxes and operating expenses, which are excluded from the table above. Effective May 1, 2012, the Company entered into a 10-year operating lease for the lease of approximately 45,000 square feet of office space in Seattle, Washington for its Garden City Group segment. Total lease payments over the remaining lease term are approximately $8,649,000. Additionally, the Company is responsible for certain related real estate taxes and operating expenses, which are excluded from the table above. On March 16, 2010, the Company entered into an 11-year operating lease for the lease of approximately 44,000 square feet of office space in Lake Success, New York, for use as its Garden City Group segment's corporate headquarters. The lease, as amended, includes a total of approximately 67,000 square feet. Total lease payments over the remaining lease term are approximately $12,017,000. Additionally, the Company is responsible for certain related real estate taxes and operating expenses, which are excluded from the table above. Effective February 9, 2010, the Company entered into a 10-year operating lease for approximately 64,000 square feet of office space in Sunrise, Florida, primarily for its Broadspire segment as a replacement for the subleased space in Plantation, Florida described below. Total lease payments over the remaining lease term are approximately $5,756,000. Additionally, the Company is responsible for certain related real estate taxes and other expenses, which are excluded from the table above. Effective August 1, 2006, the Company entered into an 11-year operating lease for approximately 160,000 square feet of office space in Atlanta, Georgia for use as the Company's corporate headquarters. Total lease payments over the remaining lease term are approximately $8,175,000. Additionally, the Company is responsible for certain related property operating expenses, which are excluded from the table above. Included in the acquired commitments of Broadspire Management Services, Inc. was a long-term operating lease for a two-building office complex in Plantation, Florida. The term of this lease ends in December 2021. Total lease payments over the remaining lease term are approximately $26,644,000. A majority of this office space was subleased at December 31, 2015. Under executed sublease arrangements at December 31, 2015, the sublessors are obligated to pay the Company minimum sublease payments as follows:
One of the sublease agreements is for three of the four floors of one of the leased buildings in Plantation, Florida; this lease expires in December 2021. The other sublease is for an entire building and expires in December 2021. This lease includes surrender options for the fourth floor between December 31, 2015 and June 30, 2017, and for the third floor as of June 30, 2017, each with twelve months prior notice. Should the sublessor elect to surrender one or both floors and the Company be unable to secure another sublessor, it may be required to recognize additional losses on this lease. |
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