Cover page
Cover page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 26, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 000-50796 | ||
Entity Registrant Name | SP PLUS CORPORATION | ||
Entity Central Index Key | 0001059262 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 16-1171179 | ||
Entity Address, Address Line One | 200 E. Randolph Street, Suite 7700 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60601-7702 | ||
City Area Code | 312 | ||
Local Phone Number | 274-2000 | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | SP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Chicago, Illinois, United States | ||
Auditor Firm ID | 42 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 19,798,884 | ||
Entity Public Float | $ 761.9 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE None |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 19.1 | $ 12.4 |
Accounts receivable, net | 180.5 | 167.7 |
Prepaid expenses and other current assets | 12.6 | 16.7 |
Total current assets | 212.2 | 196.8 |
Property and equipment, net | 68.3 | 60.2 |
Right-of-use assets | 179.4 | 166.9 |
Goodwill | 544.6 | 543.2 |
Other intangible assets, net | 59.7 | 68.9 |
Deferred income taxes | 42.8 | 44.4 |
Other noncurrent assets | 44.9 | 41 |
Total noncurrent assets | 939.7 | 924.6 |
Total assets | 1,151.9 | 1,121.4 |
Liabilities | ||
Accounts payable | 136.6 | 133.4 |
Accrued and other current liabilities | 128.1 | 137.6 |
Short-term lease liabilities | 56.2 | 60.2 |
Current portion of long-term borrowings | 16.5 | 12.4 |
Total current liabilities | 337.4 | 343.6 |
Long-term borrowings, excluding current portion | 335.6 | 331.8 |
Long-term lease liabilities | 158 | 158.5 |
Other noncurrent liabilities | 70.2 | 61.8 |
Total noncurrent liabilities | 563.8 | 552.1 |
Total liabilities | 901.2 | 895.7 |
Stockholders' equity | ||
Preferred Stock, par value $0.01 per share; 5,000,000 shares authorized as of December 31, 2023 and 2022, respectively; no shares issued or outstanding | 0 | 0 |
Common stock, par value $0.001 per share; 50,000,000 shares authorized as of December 31, 2023 and 2022; 23,593,626 and 19,798,884 shares issued and outstanding as of December 31, 2023, respectively, and 23,276,329 and 19,767,287 shares issued and outstanding as of December 31, 2022, respectively | 0 | 0 |
Treasury stock at cost; 3,794,742 and 3,509,042 shares as of December 31, 2023 and December 31, 2022, respectively | (130.5) | (120) |
Additional paid-in capital | 277.9 | 274.2 |
Accumulated other comprehensive loss | (1.3) | (1.8) |
Retained earnings | 104.7 | 73.6 |
Total SP Plus Corporation stockholders' equity | 250.8 | 226 |
Noncontrolling interests | (0.1) | (0.3) |
Total stockholders' equity | 250.7 | 225.7 |
Total liabilities and stockholders' equity | $ 1,151.9 | $ 1,121.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 23,593,626 | 23,276,329 |
Common stock, shares outstanding (in shares) | 19,798,884 | 19,767,287 |
Treasury Stock, Shares | 3,794,742 | 3,509,042 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Services revenue | $ 1,782.3 | $ 1,553.5 | $ 1,177.2 |
Cost of services (exclusive of depreciation and amortization) | 1,528.3 | 1,331.8 | 997.4 |
General and administrative expenses | 140.4 | 109.1 | 88.2 |
Depreciation and amortization | 36.1 | 29.7 | 25.1 |
Operating income | 77.5 | 82.9 | 66.5 |
Other expense (income) | |||
Interest expense | 29.1 | 17.7 | 21.2 |
Interest income | (0.3) | (0.4) | (0.4) |
Other income | 0 | 0 | (0.1) |
Total other expenses | 28.8 | 17.3 | 20.7 |
Earnings before income taxes | 48.7 | 65.6 | 45.8 |
Income tax expense | 14 | 17.5 | 10.5 |
Net income | 34.7 | 48.1 | 35.3 |
Less: Net income attributable to noncontrolling interests | 3.6 | 2.9 | 3.6 |
Net income attributable to SP Plus Corporation | $ 31.1 | $ 45.2 | $ 31.7 |
Net income per common share | |||
Basic | $ 1.58 | $ 2.17 | $ 1.50 |
Diluted | $ 1.57 | $ 2.15 | $ 1.48 |
Weighted average shares outstanding | |||
Basic (in shares) | 19,670,918 | 20,809,363 | 21,166,323 |
Diluted (in shares) | 19,781,388 | 21,007,068 | 21,379,983 |
Lease and Management Type Contracts | |||
Services revenue | $ 883.2 | $ 794.4 | $ 601.5 |
Cost of services (exclusive of depreciation and amortization) | 629.2 | 572.7 | 421.7 |
Lease Type Contracts | |||
Services revenue | 293.2 | 275.7 | 215.6 |
Cost of services (exclusive of depreciation and amortization) | 240.6 | 225.8 | 170.6 |
Management Type Contracts | |||
Services revenue | 590 | 518.7 | 385.9 |
Cost of services (exclusive of depreciation and amortization) | 388.6 | 343.2 | 247.5 |
Lease Impairment | |||
Cost of services (exclusive of depreciation and amortization) | 0 | 3.7 | 3.6 |
Reimbursed Management Type Contract Revenue | |||
Services revenue | 899.1 | 759.1 | 575.7 |
Cost of services (exclusive of depreciation and amortization) | $ 899.1 | $ 759.1 | $ 575.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 34.7 | $ 48.1 | $ 35.3 |
Reclassification of de-designated interest rate collars | 0.5 | 1.7 | |
Foreign currency translation gain (loss) | 0.5 | 0.5 | (0.1) |
Comprehensive income | 35.2 | 49.1 | 36.9 |
Less: Comprehensive income attributable to noncontrolling interests | 3.6 | 2.9 | 3.6 |
Comprehensive income attributable to SP Plus Corporation | $ 31.6 | $ 46.2 | $ 33.3 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Treasury Stock | Noncontrolling Interest |
Beginning balance (deficit) at Dec. 31, 2020 | $ 181.4 | $ 261.4 | $ (4.4) | $ (3.3) | $ (70.6) | $ (1.7) | |
Beginning balance (deficit) (in shares) at Dec. 31, 2020 | 23,088,386 | ||||||
Net income | 35.3 | 31.7 | 3.6 | ||||
Foreign currency translation | (0.1) | (0.1) | |||||
Reclassification of de-designated interest rate collars | 1.7 | 1.7 | |||||
Issuance of stock grants | 0.5 | 0.5 | |||||
Issuance of stock grants (in shares) | 13,420 | ||||||
Issuance of restricted stock units (in shares) | 41,517 | ||||||
Issuance of performance stock units (in shares) | 81,136 | ||||||
Non-cash stock-based compensation | 5.6 | 5.6 | |||||
Distributions to noncontrolling interests | (2.3) | (2.3) | |||||
Ending balance (deficit) at Dec. 31, 2021 | 222.1 | 267.5 | (2.8) | 28.4 | (70.6) | (0.4) | |
Ending balance (deficit) (in shares) at Dec. 31, 2021 | 23,224,459 | ||||||
Net income | 48.1 | 45.2 | 2.9 | ||||
Foreign currency translation | 0.5 | 0.5 | |||||
Reclassification of de-designated interest rate collars | 0.5 | 0.5 | |||||
Issuance of stock grants | 0.4 | 0.4 | |||||
Issuance of stock grants (in shares) | 14,635 | ||||||
Issuance of restricted stock units (in shares) | 37,235 | ||||||
Non-cash stock-based compensation | 8.6 | 8.6 | |||||
Repurchases of common stock | (49.4) | (49.4) | |||||
Noncontrolling interests buyout | (2.3) | (2.3) | |||||
Distributions to noncontrolling interests | (2.8) | (2.8) | |||||
Ending balance (deficit) at Dec. 31, 2022 | $ 225.7 | 274.2 | (1.8) | 73.6 | (120) | (0.3) | |
Ending balance (deficit) (in shares) at Dec. 31, 2022 | 19,767,287 | 23,276,329 | |||||
Net income | $ 34.7 | 31.1 | 3.6 | ||||
Foreign currency translation | 0.5 | 0.5 | |||||
Issuance of stock grants | 0.6 | 0.6 | |||||
Issuance of stock grants (in shares) | 18,660 | ||||||
Issuance of restricted stock units (in shares) | 242,909 | ||||||
Issuance of performance stock units (in shares) | 55,728 | ||||||
Payments of withholding taxes on share-based compensation | (5.8) | (5.8) | |||||
Non-cash stock-based compensation | 9.8 | 9.8 | |||||
Repurchases of common stock | (10.5) | (10.5) | |||||
Noncontrolling interests buyout | (0.9) | (0.9) | |||||
Distributions to noncontrolling interests | (3.4) | (3.4) | |||||
Ending balance (deficit) at Dec. 31, 2023 | $ 250.7 | $ 277.9 | $ (1.3) | $ 104.7 | $ (130.5) | $ (0.1) | |
Ending balance (deficit) (in shares) at Dec. 31, 2023 | 19,798,884 | 23,593,626 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net income | $ 34.7 | $ 48.1 | $ 35.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Impairment | 0 | 3.7 | 3.6 |
Depreciation and amortization | 36.1 | 29.7 | 25.1 |
Non-cash stock-based compensation | 10.4 | 9 | 6.1 |
Provisions for credit losses on accounts receivable | 1.7 | 0.5 | 0.8 |
Deferred income taxes | 1.4 | 7.6 | 12.6 |
Other | (3.2) | 1.3 | 0.2 |
Changes in operating assets and liabilities | |||
Accounts receivable | (14.6) | (27.9) | (29.2) |
Prepaid expenses and other current assets | 4.1 | 15.7 | (5.4) |
Accounts payable | 3 | 14.7 | 20.7 |
Accrued liabilities and other | (17.8) | (9.1) | (16.4) |
Net cash provided by operating activities | 55.8 | 93.3 | 53.4 |
Investing activities | |||
Purchases of property and equipment | (21.4) | (21.9) | (9.6) |
Acquisitions of businesses, net of cash acquired | (3.1) | (30.5) | 0 |
Acquisition of other intangible assets | 0 | (1.8) | 0 |
Proceeds from sale of property and equipment | 0.3 | 0.2 | 0.5 |
Noncontrolling interests buyout | (2.4) | 0 | 0 |
Net cash used in investing activities | (26.6) | (54) | (9.1) |
Financing activities | |||
Proceeds from credit facility revolver | 452.5 | 570 | 371.6 |
Payments on credit facility revolver | (441.7) | (559) | (387.2) |
Proceeds from credit facility term loan | 0 | 17.2 | 0 |
Payments on credit facility term loan | (5) | (6.7) | (15.5) |
Payments of debt issuance costs | 0 | (2.5) | (1.3) |
Payments on other long-term borrowings | (7.8) | (9.9) | (7.7) |
Payments of withholding taxes on share-based compensation | (5.8) | ||
Distributions to noncontrolling interest | (3.4) | (2.8) | (2.3) |
Repurchases of common stock | (11.1) | (48.7) | 0 |
Net cash used in financing activities | (22.3) | (42.4) | (42.4) |
Effect of exchange rate changes on cash and cash equivalents | (0.2) | (0.2) | (0.1) |
Increase (decrease) in cash and cash equivalents | 6.7 | (3.3) | 1.8 |
Cash and cash equivalents at beginning of year | 12.4 | 15.7 | 13.9 |
Cash and cash equivalents at end of year | 19.1 | 12.4 | 15.7 |
Cash paid (received) during the period for: | |||
Interest | 27.7 | 16.9 | 19.4 |
Income taxes, net | $ 10 | $ (7.1) | $ 0.5 |
Significant Accounting Policies
Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | 1. Significant Accounting Policies and Practices The Company SP Plus Corporation (the "Company") develops and integrates technology with operations management and support to deliver mobility solutions that enable the efficient and time-sensitive movement of people, vehicles and personal travel belongings. The Company is committed to providing solutions that make every moment matter for a world on the go while meeting the objectives of the Company's diverse client base in North America and Europe, which includes aviation, commercial, hospitality and institutional clients. The Company typically enters into contractual arrangements with property owners or managers as opposed to owning facilities. On October 4, 2023, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") by and among the Company, Metropolis Technologies, Inc. ("Metropolis") and Schwinger Merger Sub Inc., a direct, wholly owned subsidiary of Metropolis (“Merger Sub”), in an all-cash transaction with a total enterprise value of approximately $ 1.5 billion. Pursuant to the Merger Agreement, subject to terms and conditions therein, Merger Sub will acquire all of the outstanding shares of the Company’s common stock for $ 54.00 per share, without interest, and merge with the Company, with the Company surviving as a wholly owned subsidiary of Metropolis. The Company’s stockholders approved the transaction on February 9, 2023. The transaction is expected to close in 2024, subject to other customary closing conditions, including the receipt of regulatory approvals. Upon completion of the transaction, the Company’s shares will no longer trade on the Nasdaq Global Select Market. As of December 31, 2023, the Company had incurred $ 9.7 million in expenses related to the proposed merger with Metropolis. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and Variable Interest Entities ("VIEs") in which the Company is the primary beneficiary. The Company is the primary beneficiary of a VIE when the Company has the power to direct activities that most significantly affect the economic performance of the VIE. If the Company is not the primary beneficiary in a VIE and has significant influence, the Company accounts for the investment in the VIE as an equity method investment in accordance with applicable accounting principles generally accepted in the United States (“U.S. GAAP”). As of December 31, 2023 and 2022 , assets related to consolidated VIEs were $ 51.4 million and $ 57.1 million, respectively, which were primarily related to right-of-use (“ROU”) assets and property and equipment, net. As of December 31, 2023 and 2022 , liabilities related to consolidated VIEs were $ 43.5 million and $ 50.9 million, respectively, which were primarily related to operating and finance lease liabilities. All intercompany profits, transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current environment. Foreign Currency Translation The Company has foreign operations in Canada, Puerto Rico, the United Kingdom and India. Assets and liabilities of the Company's foreign operations are translated into U.S. dollars at the rate in effect on the respective balance sheet date, while income and expenses are translated at the average rates during the respective periods. Translation adjustments resulting from the fluctuations in exchange rates are recorded as a separate component of Accumulated other comprehensive loss in Stockholders’ equity within the Consolidated Balance Sheets, while transaction gains and losses are recorded within the Consolidated Statements of Income. Deferred taxes are not recorded on cumulative foreign currency translation adjustments when the Company expects the foreign earnings to be permanently reinvested. Cash and Cash Equivalents Cash equivalents represent funds temporarily invested in money market instruments with maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements were $ 0.2 million and $ 0.6 million as of December 31, 2023 and 2022 , respectively, and were included in Cash and cash equivalents within the Consolidated Balance Sheets. Allowance for Doubtful Accounts Accounts receivable, net of the allowance for doubtful accounts, represents the Company's estimate of the amount that ultimately will be realized in cash. The Company reviews the adequacy of its allowance for doubtful accounts on an ongoing basis, primarily using a review of specific accounts, as well as historical collection trends and aging of receivables, and records adjustments to the allowance as necessary. Changes in economic conditions or other circumstances could have an impact on the collection of existing accounts receivable balances or future allowance considerations. Transactions affecting the allowance for doubtful accounts during the years ended December 31, 2023, 2022 and 2021 were as follows: (millions) December 31, 2023 December 31, 2022 December 31, 2021 Beginning Balance $ 4.0 $ 3.5 $ 5.1 Provision for credit losses 1.7 0.5 0.8 Write offs and other ( 3.1 ) - ( 2.4 ) Ending Balance $ 2.6 $ 4.0 $ 3.5 Property and Equipment, net Property and equipment includes the Company's equipment, internal-use software, vehicles, leasehold improvements and construction/development in process. Property and equipment are stated at cost, less accumulated depreciation and amortization, whenever applicable. Certain costs incurred in the planning and evaluation stage of internal-use software projects are recorded to expense as incurred. Costs associated with directly obtaining, developing or upgrading internal-use software are capitalized and included as Software in Property and equipment, net, within the Consolidated Balance Sheets. When the internal-use software is ready for its intended use, it is amortized on a straight-line basis over the estimated useful life of the internal-use software, which is typically 3 years . Equipment and vehicles are depreciated on a straight-line basis over the estimated useful lives ranging from 1 to 10 years . Expenditures for major renewals and improvements that extend the useful life of property and equipment, other than internal-use software, are capitalized. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases or the useful lives of the improvements, whichever is shorter. Goodwill Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired. In accordance with the Financial Accounting Standards Board's ("FASB") authoritative accounting guidance on goodwill, the Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances change that could cause goodwill to become impaired. The Company has elected to assess the impairment of goodwill annually on October 1 or at an interim date if there is an event or change in circumstances indicating the carrying value may not be recoverable. The goodwill impairment test is performed at the reporting unit level; the Company's reporting units represent its operating segments, consisting of Commercial and Aviation. Factors that could trigger an impairment review include significant under-performance relative to expected historical or projected future operating results, significant changes in the use of acquired assets or the Company’s business strategy, and significant negative industry or economic trends. The Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines it is more likely than not that the fair value is less than the carrying amount, the Company would need to perform a quantitative assessment. The determination of fair value of a reporting unit utilizes cash flow projections that assume certain future revenue and cost levels, comparable marketplace data, comparable company market valuations, assumed discount rates based upon current market conditions and other valuation factors, all of which involve the use of significant judgment and estimates. The Company also assesses critical areas that may impact its business including economic conditions, market related exposures, competition, changes in service offerings and changes in key personnel. The Company completed a qualitative test of goodwill as of October 1, 2023, and concluded that it is more likely than not that the estimated fair values of each of the Company’s reporting units exceeded the carrying amount of net assets assigned to each reporting unit. Other Intangible Assets, net Other intangible assets represent assets with finite lives that are amortized on a straight-line basis over their estimated useful lives. The Company evaluates other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to their remaining useful lives. In addition, other intangible assets are reviewed for impairment when circumstances change that would indicate the carrying value may not be recoverable. Assumptions and estimates about future values and remaining useful lives of intangible assets are complex and subjective, and can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors, such as changes in the Company’s business strategy and forecasts. Although the Company believes the historical assumptions and estimates are reasonable and appropriate, different assumptions and estimates could materially impact reported financial results. For both goodwill and intangible assets, future events may indicate differences from the Company's judgments and estimates which could, in turn, result in impairment charges. Future events that may result in impairment charges include economic volatility, increases in interest rates, which would impact discount rates, or other factors which could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities, such as increasing labor and benefit costs. Long-Lived Assets The Company evaluates long-lived assets, including ROU assets, leasehold improvements, equipment and construction/development in progress, for impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The Company groups assets at the lowest level for which cash flows are separately identified in order to measure an impairment. Events or circumstances that would result in an impairment review include a significant change in the use of an asset, the planned sale or disposal of an asset, or a projection that demonstrates continuing losses associated with the use of a long-lived asset or asset group. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset or asset group to future undiscounted cash flows expected to be generated by the asset or asset group. If the asset or asset group is determined to be impaired, the impairment recognized is measured by the amount by which the carrying value of the asset or asset group exceeds its fair value. The Company determined impairment testing triggers had occurred for ROU assets associated with certain asset groups during the years ended December 31, 2022 and 2021. See Note 3. Leases for further discussion. The Company determined no impairment testing triggers had occurred for long-lived assets during the year ended December 31, 2023. Assumptions and estimates used to determine cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any future changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets and could result in additional impairment charges. Future events that may result in impairment charges include economic volatility or other factors that could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities, such as increasing labor and benefit costs. Accrued and Other Current Liabilities Components of Accrued and other current liabilities as of December 31, 2023 and 2022 were as follows: (millions) December 31, 2023 December 31, 2022 Accrued rent $ 20.1 $ 21.4 Compensation and payroll withholdings 26.2 29.2 Property, payroll and other taxes 5.1 7.8 Accrued insurance 24.9 24.0 Contract liabilities 17.5 17.4 Contingent consideration 2.8 1.8 Accrued expenses 31.5 36.0 Accrued and other current liabilities $ 128.1 $ 137.6 Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Book overdrafts o f $ 31.0 million and $ 30.9 million were included in Accounts payable within the Consolidated Balance Sheets as of December 31, 2023 and 2022 , respectively. Long-term debt has a carrying value that approximates fair value because the instruments bear interest at variable market rates. Insurance Reserves The Company purchases comprehensive casualty insurance covering certain claims that arise in connection with the Company’s operations. In addition, the Company purchases umbrella/excess liability coverage. Under the various liability and workers' compensation insurance policies, the Company is obligated to pay directly or reimburse the insurance carrier for the deductible / retention amount of each loss covered by the Company’s general / garage, automobile, workers' compensation and garage keepers legal liability policies. As a result, the Company is, effectively self-insured for all claims within the deductible / retention amount of each loss. Any loss over the deductible / retention is the responsibility of the third-party insurer. The expense recognition is based upon the Company's determination of an unfavorable outcome of a claim being deemed as probable and capable of being reasonably estimated. This determination requires the use of judgment in both the estimation of probability and the amount to be recognized as an expense. The Company utilizes historical claims experience and exposures specific to each type of insurance, along with actuarial methods performed quarterly by a third party actuarial adviser in determining the required level of insurance reserves. As of December 31, 2023 and 2022 , the insurance reserve for general, garage, automobile and workers’ compensation liabilities was $ 50.3 million and $ 48.4 million, respectively, of which $ 24.9 million and $ 24.0 million was recorded in Accrued and other current liabilities within the Consolidated Balance Sheets as of December 31, 2023 and 2022 , respectively, and $ 25.4 million and $ 24.4 million was recorded in Other noncurrent liabilities within the Consolidated Balance Sheets as of December 31, 2023 and 2022 , respectively. Future information regarding historical loss experience may require changes to the level of insurance reserves and could result in increased expense in the future. Legal and Other Commitments and Contingencies The Company is subject to litigation in the normal course of its business. The Company uses guidance from internal and external legal counsel on the potential outcome of litigation in determining the need to record liabilities for potential losses and the disclosure for pending legal claims. See Note 16. Legal and Other Commitments and Contingencies for further discussion. Services Revenue The Company's revenues are primarily derived from management type and lease type contracts; whereby the Company provides parking services, parking management, ground transportation services, baggage handling services and other ancillary services to commercial, hospitality, institutional, municipal and aviation clients. Ancillary services include fees associated with using the Company's technology-driven mobility solutions, as well as on-site parking management, facility maintenance, ground transportation services, event logistics, remote airline check-in, security services, municipal meter revenue collection and enforcement services, and scheduling and supervising all service personnel, as well as providing customer service, marketing, accounting and revenue control functions necessary to complete such services. Ancillary services also include payments received for exercising termination rights, consulting development fees, gains on sales of contracts, insurance (general, workers' compensation and health care) and other value-added services. In accordance with the guidance related to revenue recognition, entities are required to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company recognizes gross receipts (net of taxes collected from customers) as revenue from lease type contracts, and management fees for services, as the related services are performed. Ancillary services are primarily included in management type contracts and are recognized as revenue as those services are provided. Reimbursed Management Type Contract Revenue and Expense The Company recognizes both revenues and expenses, in equal amounts, that are directly reimbursed by the Company’s clients for operating expenses incurred under a management type contract. The Company has determined it is the principal in these transactions as the nature of the Company's performance obligations is for the Company to provide the services on behalf of the customer. As the principal to these related transactions, the Company has control of the promised services before they are provided to the customer. Cost of Services The Company recognizes costs for lease type contracts, non-reimbursed costs from management type contracts and reimbursed management type contract expenses as cost of services. Cost of services consists primarily of rent, payroll related costs and other miscellaneous expenses. Stock-Based Compensation Stock-based payments to employees, including grants of restricted stock and performance-based share units, are measured at the grant date, based on the estimated fair value of the award, and the related expense is recognized over the requisite employee service period or performance period (generally the vesting period) for awards expected to vest. The Company also grants stock to its Board of Directors (the “Board”) on an annual basis, which is recorded as expense at the grant date, based on the fair value of the award. The Company accounts for forfeitures of stock-based awards as they occur. See Note 6. Stock-Based Compensation for further discussion. Equity Investment in Unconsolidated Entities The Company has ownership interests in 26 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 20 are consolidated under the VIE or voting interest models and 6 are unconsolidated where the Company’s ownership interests range from 30 - 50 percent and for which there are no indicators of control. The Company accounts for such investments under the equity method of accounting, and the Company’s underlying share of each investee’s equity of $ 12.2 million and $ 11.9 million as of December 31, 2023 and 2022 , respectively, was included in Other noncurrent assets within the Consolidated Balance Sheets. As the operations of these entities are consistent with the Company’s underlying core business operations, the equity in earnings of these investments were included in Services revenue within the Consolidated Statements of Income. The equity earnings in these related investments were $ 2.6 million, $ 4.6 million and $ 1.4 million during the years ended December 31, 2023, 2022 and 2021 , respectively. Noncontrolling Interests Noncontrolling interests represent the noncontrolling holders' percentage share of income (losses) from the subsidiaries in which the Company holds a controlling, but less than 100 percent, ownership interest. The results of these subsidiaries are consolidated and included in the Company’s Consolidated Financial Statements. During the year ended December 31, 2023, the Company recognized a $ 1.0 million liability, which was recorded in Other noncurrent liabilities within the Consolidated Balance Sheets as of December 31, 2023, related to its estimate of additional consideration (“contingent consideration”) due to a former minority partner that held a noncontrolling interest in a joint venture with the Company. The Company purchased the minority partner’s interest in the joint venture in 2020. The contingent consideration is contingent on the performance of certain parking-related operations of the Bradley International Airport. The contingent consideration is not capped and, if any amount is due, would be payable to the former minority partner in April 2025. The $ 1.0 million was determined based on a probability weighting of potential payouts and recorded in Additional paid-in capital within the Consolidated Balance Sheets. In addition, the Company recorded a deferred tax asset of $ 0.3 million related to the contingent consideration during the year ended December 31, 2023, which was also recorded in Additional paid-in capital within the Consolidated Balance Sheets. The Company will continue to evaluate the criteria for making these payments in the future and adjust the liability when deemed necessary. Additionally, during the year ended December 31, 2023, the Company paid a former minority partner $ 2.4 million per the terms of an agreement between the Company and the former minority partner. As of December 31, 2022, the Company entered into an agreement with the former partner to purchase the former minority partner’s entire noncontrolling interest in a joint venture with the Company. Per the terms of the agreement, the Company is required to make additional payments to the former minority partner over a ten-year period, starting in 2023, amounting to a total of $ 4.5 million to be paid to the former minority partner. The $ 2.4 million that was paid during the year ended December 31, 2023 was included in Accrued and other current liabilities within the Consolidated Balance Sheets as of December 31, 2022. As of December 31, 2023 and 2022, the liability for the payment to the former minority partner was $ 1.7 million and $ 4.0 million, respectively, of which $ 0.4 million and $ 2.4 million was recorded in Accrued and other current liabilities within the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively, and $ 1.3 million and $ 1.6 million was recorded in Other noncurrent liabilities within the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively. Income Taxes Deferred income taxes are computed using the asset and liability method, such that deferred tax assets and liabilities are recognized for deductible temporary differences between US GAAP amounts and the tax basis of existing assets and liabilities based on currently enacted tax laws and tax rates in effect for the periods in which these temporary differences are expected to reverse or be settled. Income tax expense (benefit) is the tax payable (receivable) for the period plus the change during the period in deferred income taxes. The Company has certain state net operating loss (“NOL”) carry forwards which expire in 2043. The Company considers a number of factors in its assessment of the recoverability of its NOL carryforwards including their expiration dates and the limitations imposed due to the change in ownership as well as future projections of income. Future changes in the Company's operating performance, along with these considerations, may significantly impact the amount of NOLs ultimately recovered, and the Company’s assessment of their recoverability. The Company recognizes deferred tax liabilities related to taxes on certain foreign earnings that were not considered to be permanently reinvested. In addition, the Company has recognized deferred tax liabilities on nondeductible intangible assets. When evaluating the Company’s tax positions, the Company accounts for uncertainty in income taxes in its Consolidated Financial Statements. The evaluation of a tax position by the Company is a two-step process, the first step being recognition. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon tax examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position and the weight of available evidence. If a tax position does not meet the more-likely-than-not threshold, which is more than 50% likely of being realized, the benefit of that position is not recognized in the Company’s financial statements. The second step is measurement of the tax benefit. The tax position is measured as the largest amount of benefit that is more-likely-than-not of being realized, which is more than 50% likely of being realized upon ultimate resolution with a taxing authority. See Note 13. Income Taxes for further discussion. Recently Issued Accounting Pronouncements Accounting Pronouncements to be Adopted Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. Public companies are required to disclose significant segment expenses and other segment items on an interim and annual basis and provide all disclosures about a reportable segment’s profit or loss and assets in interim periods. Entities are also permitted to disclose more than one measure of a segment’s profit or loss if such measures are used by the chief operating decision maker ("CODM") to allocate resources and assess performance, as long as at least one of those measures is determined in a way that is most consistent with the measurement principles used to measure the corresponding amounts in the Consolidated Financial Statements. These amendments aim to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The guidance is applied retrospectively to all periods presented in the Consolidated Financial Statements, unless doing so is impracticable, and early adoption is permitted. The ASU is effective for fiscal years beginning after 15 December 2023. The Company is currently assessing the impact of adopting the standard on the Company’s financial statement disclosures. Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. These amendments require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. Companies are required to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and provide more details about the reconciling items in some categories if items meet a certain quantitative threshold. The guidance will require all entities to disclose income taxes paid, net of refunds, disaggregated by federal (national), state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a certain quantitative threshold. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the impact of adopting the standard on the Company’s financial statement disclosures. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions 2023 Acquisition On July 25, 2023 , the Company acquired certain assets of Roker Inc. ("Roker"), a United States based provider of fully-integrated parking solutions that simplify permit, violation and enforcement management for organizations and municipalities, for approximately $ 3.1 million. The Company utilized borrowings under its Senior Credit Facility and cash on hand to fund the acquisition. Roker's operations are included in the Commercial segment. The acquisition enhances the Company's position as a global provider of frictionless technology solutions that is not dependent on the Company's legacy parking management related operations. Roker has been accounted for as a business combination, and the assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date. Goodwill was measured as the excess of the consideration over the assets acquired, including other intangible assets, less liabilities assumed. Tax deductible goodwill related to the acquisition was $ 1.0 million. The results of Roker's operations were reflected in the Consolidated Financial Statements from the date of the acquisition. During the year ended December 31, 2023, Roker contributed $ 0.2 million of services revenue and $ 0.4 million of losses before income taxes, primarily due to the amortization related to the acquired other intangible assets. During the year ended December 31, 2023, the Company incurred acquisition-related costs of $ 0.2 million related to Roker. The fair values of the assets acquired and liabilities assumed were as follows: (millions) Other intangible assets $ 2.3 Goodwill 1.0 Accounts payable ( 0.2 ) Net cash paid $ 3.1 As discussed above, during the year ended December 31, 2023, the Company recorded additions to other intangible assets of $ 2.3 million. The other intangible assets acquired were recorded at their fair value on the acquisition date as follows: (millions) Estimated Life Fair Value Proprietary know how 8.0 Years $ 2.1 Customer relationships 5.4 Years 0.2 Fair value of identified intangible assets $ 2.3 The fair values of other intangible assets acquired were determined to be Level 3 under the fair value hierarchy. The fair value for all identifiable intangible assets was based on assumptions that market participants would use in pricing an asset, based on the most advantageous market for the asset. The fair value of the Proprietary know how were determined using the multi-period excess earnings method under the income approach utilizing projected financial information for the technology that was acquired. The fair value of the customer relationships was determined using the distributor method under the income approach. 2022 Acquisitions On October 11, 2022 , the Company acquired K M P Associates Limited ("KMP"), a United Kingdom based software and technology provider serving aviation and commercial parking clients, primarily through its Aeroparker technology, throughout the United States and Europe for approximately $ 13.8 million, less cash acquired of $ 0.9 million, and assumed KMP's debt of $ 0.3 million. Immediately following the acquisition, the Company repaid all of the debt assumed. KMP's operations are included in the Aviation segment. On November 10, 2022 , the Company acquired certain assets of DIVRT, Inc. ("DIVRT"), a developer of innovative software and technology solutions that enables frictionless parking capabilities, for approximately $ 17.6 million. In addition, the Company may be required to pay the former owner of DIVRT a maximum amount of $ 7.0 million in contingent consideration if certain targets related to the number of the Company's locations using the DIVRT technology are met by October 31, 2025. Based on a probability weighting of potential payouts, the Company accrued $ 4.0 million in projected contingent consideration as of the acquisition date, which was determined to be Level 3 under the fair value hierarchy. During the year ended December 31, 2023, the Company determined that the first two targets were met as of October 31, 2023, which was the second milestone date. As a result, the Company paid the former owner $ 2.8 million during the first quarter of 2024. Based on the achievement of the first two targets and the Company’s forecast for future payments, the Company evaluated the estimated contingent consideration and determined no additional accruals were needed. The Company will continue to evaluate the potential payouts in the future and adjust the contingent consideration for any changes in the estimated fair value each reporting period. DIVRT's operations are included in the Commercial segment. See Note 10. Fair Value Measurement for further discussion. During the year ended December 31, 2023, KMP and DIVRT contributed $ 6.3 million of services revenue and losses before income taxes of $ 4.0 million, primarily due to the amortization related to the acquired other intangible assets. During the year ended December 31, 2022, the Company incurred acquisition-related costs of $ 2.6 million related to KMP and DIVRT. The Company finalized its purchase price allocations for KMP and DIVRT during the year ended December 31, 2023. There were no measurement period adjustments recorded during the year ended December 31, 2023. The fair value of the assets acquired and liabilities assumed were as follows: (millions) Cash and cash equivalents $ 0.9 Accounts receivable 0.7 Prepaid expenses and other current assets 0.1 Other intangible assets 21.7 Goodwill 16.3 ROU asset 0.1 Accounts payable ( 0.1 ) Accrued and other current liabilities ( 1.5 ) Deferred income taxes ( 2.5 ) Other long-term borrowings ( 0.3 ) Net assets acquired and liabilities assumed 35.4 Less: cash and cash equivalents acquired 0.9 Less: contingent consideration payable 4.0 Net cash paid $ 30.5 In addition to the acquisitions discussed above, on April 18, 2022, the Company acquired certain other intangible assets for a purchase price of $ 1.8 million. As discussed above, during the year ended December 31, 2022, the Company recorded additions to other intangible assets of $ 23.5 million. The other intangible assets acquired were recorded at their fair value on the acquisition dates as follows: (millions) Estimated Life Fair Value Proprietary know how 7.4 Years $ 17.3 Customer relationships 5.8 Years 3.2 Trade names 13.2 Years 1.8 Covenant not to compete 4.2 Years 1.2 Estimated fair value of identified intangible assets $ 23.5 The fair values of the other intangible assets acquired were determined to be Level 3 under the fair value hierarchy. The fair value for all identifiable intangible assets was based on assumptions that market participants would use in pricing an asset, based on the most advantageous market for the asset. The fair values of the Proprietary know how were determined using the multi-period excess earnings method under the income approach utilizing projected financial information for each technology that was acquired. The fair value of the customer relationships was determined using the distributor method under the income approach. The fair values of the trade names were determined using the relief from royalty savings method under the income approach. The Company considered the return on assets and market comparable methods when estimating an appropriate royalty rate for the trade names. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 3. Leases The Company leases parking facilities, office space, warehouses, vehicles and equipment and determines if an arrangement is a lease at inception. The Company subleases certain real estate to third parties. The Company's sublease portfolio consists of operating leases for space within leased parking facilities. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company's "right-of-use" over an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets include cumulative prepaid or accrued rent, as well as lease incentives, initial direct costs and acquired lease contracts. The short term lease exception has been applied to leases with an initial term of 12 months or less and these leases are not recorded within the Consolidated Balance Sheets. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. Lease expense is recognized on a straight-line basis over the lease term. For leases that include one or more options to renew, the exercise of such renewal options is at the Company's sole discretion or mutual agreement with the landlord. The Company’s lease term may include renewal options that are at the Company’s sole discretion and are reasonably certain to be exercised. Equipment and vehicle leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Variable lease components comprising of payments that are a percentage of parking services revenue based on contractual levels and rental payments adjusted periodically for inflation are not included in the lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. As discussed in Note 1. Significant Accounting Policies and Practices , the Company tests ROU assets when impairment indicators are present. During the year ended December 31, 2022, the Company determined impairment testing triggers had occurred for an ROU asset associated with a certain asset group within the Commercial segment. Therefore, the Company performed an undiscounted cash flow analysis for the ROU asset as of December 31, 2022. Based on the undiscounted cash flow analysis, the Company determined the ROU asset had a net carrying value that exceeded its estimated undiscounted future cash flows and the fair value for the ROU asset. The fair value of the ROU asset measured on a non-recurring basis, which was classified as Level 3 in the fair value hierarchy, was determined based on estimates of future discounted cash flows. The estimated fair value was compared to the net carrying value, and as a result, the ROU asset held and used with a carrying amount of $ 8.4 million was determined to have a fair value of $ 4.7 million, resulting in an impairment charge of $ 3.7 million. The impairment charge of $ 3.7 million during the year ended December 31, 2022 was included in Lease impairment within the Consolidated Statements of Income. Additionally, during the year ended December 31, 2021, the Company recorded impairment charges of $ 3.6 million, of which $ 3.5 million and $ 0.1 million were recorded in the Commercial and Aviation segments, respectively. The impairment charge of $ 3.6 during the year ended December 31, 2021 was included in Lease Impairment within the Consolidated Statements of Income. In April 2020, the FASB provided accounting elections for entities that receive or provide lease-related concessions to mitigate the economic effects of the COVID-19 pandemic ("COVID-19") on lessees. The Company elected not to evaluate whether certain concessions provided by lessors in response to COVID-19, that are within the scope of additional interpretation provided by the FASB in April 2020, were lease modifications and also elected not to apply modification guidance. These concessions were recognized as a reduction of rent expense in the month they occurred and were recorded in Cost of services - lease type contracts within the Consolidated Statements of Income. As a result of COVID-19, the Company was able to negotiate lease concessions with certain landlords. These rent concessions were recorded in accordance with the guidance noted above. Accordingly, the Company recorded $ 4.1 million, $ 6.2 million and $ 16.6 million as a reduction to Cost of services - lease type contracts within the Consolidated Statements of Income during the years ended December 31, 2023, 2022 and 2021, respectively. Costs associated with the right to use the infrastructure on service concession arrangements are recorded as a reduction of revenue in accordance with the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services . See Note 4. Revenue for further discussion on service concession arrangements . The components of ROU assets and lease liabilities and the classification within the Consolidated Balance Sheets as of December 31, 2023 and 2022 were as follows: (millions) Classification 2023 2022 Assets Operating Right-of-use assets $ 179.4 $ 166.9 Finance Property and equipment, net 24.6 24.4 Total leased assets $ 204.0 $ 191.3 Liabilities Current Operating Short-term lease liabilities $ 56.2 $ 60.2 Finance Current portion of long-term borrowings 7.5 7.2 Noncurrent Operating Long-term lease liabilities 158.0 158.5 Finance Long-term borrowings, excluding current portion 16.6 16.0 Total lease liabilities $ 238.3 $ 241.9 The components of lease cost and classification within the Consolidated Statements of Income during the years ended December 31, 2023, 2022 and 2021 were as follows: (millions) Classification 2023 2022 2021 Operating lease (a)(b) Cost of services - lease type contracts $ 60.6 $ 61.6 $ 57.5 Short-term lease (a) Cost of services - lease type contracts 19.9 19.4 15.9 Variable lease Cost of services - lease type contracts 84.7 72.1 36.7 Operating lease cost 165.2 153.1 110.1 Finance lease cost Amortization of leased assets Depreciation and amortization 6.7 5.9 5.7 Interest on lease liabilities Interest expense 1.3 1.0 1.0 Lease Impairment Lease impairment — 3.7 3.6 Net lease cost $ 173.2 $ 163.7 $ 120.4 (a) Included expense related to leases for office space recorded in General and administrative expenses within the Consolidated Statements of Income of $ 3.8 million, $ 4.0 million and $ 4.1 million during the years ended December 31, 2023, 2022 and 2021, respectively. (b) Included rent concessions of $ 4.1 million, $ 6.2 million and $ 16.6 million during the years ended December 31, 2023, 2022 and 2021 , respectively. Sublease income during the years ended December 31, 2023, 2022 and 2021 was $ 2.1 million, $ 1.4 million and $ 1.4 million, respectively. The Company entered into new operating lease arrangements as of December 31, 2023 that commence in future periods. The total amount of ROU assets and lease liabilities related to these arrangements are immaterial. Maturities, lease term and discount rate information of lease liabilities as of December 31, 2023 were as follows: Operating Finance (millions) Leases Leases Total 2024 $ 66.1 $ 8.7 $ 74.8 2025 53.7 6.5 60.2 2026 41.6 5.2 46.8 2027 27.8 3.1 30.9 2028 21.7 1.7 23.4 After 2028 36.0 2.0 38.0 Total lease payments 246.9 27.2 274.1 Less: Imputed interest 32.7 3.1 35.8 Present value of lease liabilities $ 214.2 $ 24.1 $ 238.3 Weighted-average remaining lease term (years) 5.1 4.0 Weighted-average discount rate 5.6 % 5.9 % Future sublease income for the periods shown above was excluded as the amounts are not material. Supplemental cash flow information related to leases during the years ended December 31, 2023, 2022 and 2021 were as follows: (millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows related to operating leases $ 88.7 $ 91.5 $ 96.4 Operating cash outflows related to interest on finance leases 1.3 1.0 1.0 Financing cash outflows related to finance leases 7.8 9.6 7.7 Leased assets obtained in exchange for new operating lease liabilities 69.4 22.2 40.7 Leased assets obtained in exchange for new finance lease liabilities 9.0 10.1 0.4 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 4. Revenue The Company recognizes revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. Contracts with customers and clients The Company accounts for a contract when it has the approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Once a contract is identified, the Company evaluates whether the contract should be accounted for as more than one performance obligation. Substantially all of the Company's revenues come from the following two types of arrangements: Management type and Lease type contracts. Management type contracts Management type contract revenue consists of management fees, including both fixed and performance-based fees, and in some cases e-commerce technology fees, customer convenience fees and monthly subscription fees related to the use of the Company's technology solutions. In exchange for this consideration, the Company may have a bundle of integrated services that comprise one performance obligation and include services such as managing the facility, as well as ancillary services such as accounting, equipment leasing, consulting, insurance and other value-added services. Management type contract revenues do not include gross customer collections at the managed facilities, as these revenues belong to the property owners rather than to the Company. Management type contracts generally provide the Company with management fees regardless of the operating performance of the underlying facilities. Revenue is recognized over time as the Company provides services over the term of the contract. Lease type contracts Lease type contract revenue includes gross receipts (net of local taxes), e-commerce technology fees and customer convenience fees. Performance obligations related to lease type contracts include parking for transient and monthly parkers. Revenue is recognized over time as the Company provides services. Under lease type arrangements, the Company pays the property owner a fixed base rent, percentage rent that is tied to the facility’s financial performance, or a combination of both. The Company operates the parking facility and is responsible for most operating expenses, but typically is not responsible for major maintenance, capital expenditures or real estate taxes. Service concession arrangements Certain expenses (primarily rental expense), as well as depreciation and amortization, related to service concession arrangements for lease type contracts, are recorded as a reduction of Service revenue - lease type contracts. The Company recorded $ 11.1 million, $ 12.0 million and $ 24.4 million of cost concessions related to service concession arrangements (recognized as an increase to revenue) during the years ended December 31, 2023, 2022 and 2021, respectively. Contract modifications and taxes Contracts are often modified to account for changes in contract specifications and requirements. The Company considers contract modifications to exist when the parties to the contract have approved changes to or have new enforceable rights and obligations, which may include changes to the contract consideration due to the Company or creates new performance obligations. The Company assesses whether a contract modification results in either a new separate contract, the termination of the existing contract and the creation of a new contract, or modifies the existing contract. Typically, modifications are accounted for prospectively. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, which are collected by the Company from a customer, are excluded from revenue. Reimbursed management type contract revenue and expense For certain management type contracts, the Company recognizes both revenues and expenses, in equal amounts, that are directly reimbursed from the property owner or client for operating expenses incurred by the Company on behalf of the clients. The Company has determined it is the principal in these transactions, as the nature of its performance obligations is for the Company to provide the services on behalf of the client. As the principal to these related transactions, the Company has control of the promised services before they are transferred to the client. Disaggregation of revenue The Company disaggregates its revenue from contracts with customers by type of arrangement for each of the reportable segments. The Company has concluded that such disaggregation of revenue best depicts the overall economic nature, timing and uncertainty of the Company's revenue and cash flows affected by the economic factors of the respective contractual arrangement. See Note 17. Segment Information for further information on disaggregation of the Company's revenue by segment. Performance obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer or client, and is the unit of account under Topic 606. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company’s contracts have a single performance obligation that is not separately identifiable from other promises in the contract and therefore not distinct, comprising the promise to provide an integrated bundle of monthly services or parking services for transient or monthly parkers. The contract price is generally deemed to be the transaction price. Some management type contracts include performance incentives that are based on variable performance measures. These incentives are constrained at contract inception and recognized once the customer has confirmed that the Company has met the contractually agreed upon performance measures as defined in the contract. The Company’s performance obligations are primarily satisfied over time as the Company provides the related services. For management type contracts, the Company is generally entitled to receive base management fees and, in some cases, an incentive management fee, which is generally based on a measure of the parking facility’s revenue or profitability. There are certain management type contracts where revenue is recognized based on costs incurred to date plus a reasonable margin. The Company has concluded this is a faithful depiction of how control is transferred to the customer. The Company recognizes the base management fees on a monthly basis over the term of the contract. For contracts that include incentive management fees, the Company recognizes incentive management fees on a monthly basis over the term of the contract based on each parking facility’s financial results, as long as the Company does not expect a significant reversal due to projected future performance. For lease type contracts, the Company typically recognizes revenue on a daily basis, as the customers utilize the Company's services and products and the Company has performed its performance obligations. The time between completion of the performance obligation and collection of cash is typically not more than 30 - 60 days. In certain contractual arrangements, such as monthly parker contracts, the payment is typically collected in advance of the Company commencing its performance obligations under the contractual arrangement. As of December 31, 2023 , the Company had $ 199.3 million related to performance obligations that were unsatisfied or partially unsatisfied for which the Company expects to recognize revenue. This amount excludes variable consideration primarily related to contracts where the Company and customer share the gross revenues or operating profit for the location and contracts where transaction prices include performance incentives that are constrained at contract inception. These performance incentives are based on measures that are ascertained exclusively by future performance and therefore cannot be estimated at contract inception by the Company. The Company applies the practical expedient that permits exclusion of information about the remaining performance obligations that have original expected durations of one year or less. The Company expects to recognize the remaining performance obligations as revenue in future periods as follows: Remaining Performance (millions) Obligations 2024 $ 75.4 2025 47.4 2026 34.0 2027 21.0 2028 8.6 2029 and thereafter 12.9 Total $ 199.3 Contract balances The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets and contract liabilities. Accounts receivable represent amounts where the Company has an unconditional right to the consideration and therefore only the passage of time is required for the Company to receive consideration due from the customer or client. Both management and lease type contracts have customers and clients where amounts are billed as work progresses or in advance in accordance with agreed-upon contractual terms. Billing may occur subsequent to or prior to revenue recognition, resulting in contract assets and liabilities. The Company, on occasion, receives advances or deposits from customers and clients before revenue is recognized, resulting in the recognition of contract liabilities. Contract assets and liabilities are reported on a contract-by-contract basis and are included in Accounts receivable, net and Accrued and other current liabilities, respectively, within the Consolidated Balance Sheets. See Note 1. Significant Accounting Policies and Practices for additional discussion on the write-off of accounts receivable. There were no impairment charges recorded on contract assets and liabilities during the years ended December 31, 2023, 2022 and 2021. The following table provides information about accounts receivable, contract assets and contract liabilities with customers and clients as of December 31, 2023 and 2022: (millions) 2023 2022 Accounts receivable $ 181.9 $ 169.9 Contract asset 1.2 1.8 Contract liability ( 17.5 ) ( 17.4 ) Changes in contract assets, which include the recognition of additional consideration due from the client, are offset by reclassifications of contract asset balances to accounts receivable when the Company obtains an unconditional right to consideration, thereby establishing an accounts receivable. The following table provides information about changes to contract assets during the years ended December 31, 2023 and 2022: (millions) 2023 2022 Balance, beginning of year $ 1.8 $ 2.3 Additional contract assets 1.2 1.8 Reclassification to accounts receivable ( 1.8 ) ( 2.3 ) Balance, end of year $ 1.2 $ 1.8 Changes in contract liabilities primarily include additional contract liabilities and reductions of contract liabilities when revenue is recognized. The following table provides information about changes to contract liabilities during the years ended December 31, 2023 and 2022: (millions) 2023 2022 Balance, beginning of year $ ( 17.4 ) $ ( 15.7 ) Acquisitions — ( 1.1 ) Additional contract liabilities ( 17.5 ) ( 16.4 ) Recognition of revenue from contract liabilities 17.4 15.8 Balance, end of year $ ( 17.5 ) $ ( 17.4 ) Cost of contracts, net Cost of contracts, net, represents the cost of obtaining contractual rights associated with providing services for management type contracts. Costs are amortized on a straight-line basis over the estimated life of the contracts, including anticipated renewals and terminations. The amortization period is consistent with the timing of when the Company satisfies the related performance obligations. Estimated lives are based on the contract life. Cost of contracts, net, as of December 31, 2023 and 2022 was as follows: December 31, (millions) 2023 2022 Cost of contracts $ 20.9 $ 23.3 Accumulated amortization ( 18.7 ) ( 20.4 ) Cost of contracts, net $ 2.2 $ 2.9 Cost of contracts expense related to service concession arrangements and certain management type contracts are recorded as a reduction of revenue. Cost of contracts expense during the years ended December 31, 2023, 2022 and 2021, which was included as a reduction to Services revenue – management type contracts within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Cost of contracts expense $ 0.9 $ 1.0 $ 1.0 Weighted average life (years) 7.4 7.1 7.0 |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | 5. Net Income per Common Share Basic net income per common share is computed by dividing net income by the weighted daily average number of shares of common stock outstanding during the period. Diluted net income per common share is based upon the weighted daily average number of shares of common stock outstanding during the period plus all potentially dilutive stock-based awards, including restricted stock and performance share units, using the treasury-stock method. Unvested performance share units are excluded from the computation of weighted average diluted common shares outstanding if the performance targets upon which the issuance of the shares is contingent have not been achieved and the respective performance period has not been completed as of the end of the period. Basic and diluted net income per common share and a reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding during the years ending December 31, 2023, 2022 and 2021 was as follows: Year Ended December 31, (millions, except share and per share data) 2023 2022 2021 Net income attributable to SP Plus Corporation $ 31.1 $ 45.2 $ 31.7 Basic weighted average common shares outstanding 19,670,918 20,809,363 21,166,323 Dilutive impact of share-based awards 110,470 197,705 213,660 Diluted weighted average common shares outstanding 19,781,388 21,007,068 21,379,983 Net income per common share Basic $ 1.58 $ 2.17 $ 1.50 Diluted $ 1.57 $ 2.15 $ 1.48 There were no additional securities that could dilute basic earnings per share in the future that were not included in the computation of diluted net income per common share, other than those disclosed. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation The Company measures stock-based compensation expense at the grant date, based on the estimated fair value of the award based on assumptions, primarily the stock price, as of the grant date. The expense is recognized on a straight-line basis over the requisite employee service period or performance period (generally the vesting period) for awards expected to vest. For stock grants in which there is no requisite service period, the Company immediately recognizes the compensation expense. If an award is later modified, the Company may measure the award based on the estimated fair value at the modification date and recognize expense over the remaining requisite employee service period or performance period. The Company accounts for forfeitures of stock-based awards as they occur. The Company has an amended and restated long-term incentive plan (the "Plan") under which the Company may grant future awards. In March 2021, the Board approved an amendment to the Plan that increased the number of shares of common stock available under the Plan from 3,775,000 to 4,775,000 . The Company's stockholders approved the Plan amendment in May 2021. Forfeited awards under the Plan generally become available for reissuance. As of December 31, 2023 , 832,273 shares remained available for grant under the Plan. Stock Grants Stock-based compensation expense related to vested stock grants were included in General and administrative expenses within the Consolidated Statements of Income. The Company’s vested stock grants to the Board and related expense for the years ended December 31, 2023, 2022 and 2021, was as follows: Year Ended December 31, (millions, except stock grants) 2023 2022 2021 Vested stock grants 18,660 14,635 13,420 Stock-based compensation expense $ 0.6 $ 0.4 $ 0.5 Restricted Stock Units ("RSU's") During the year ended December 31, 2023 , the Company granted 126,931 restricted stock units to certain executives that vest over three years . During the year ended December 31, 2022 , the Company granted 1,057 and 187,574 restricted stock units to certain executives and employees at a weighted average grant-date fair value of $ 31.82 that vest over one and three years , respectively. During the year ended December 31, 2021 , the Company granted 160,843 and 152,659 restricted stock units to certain executives and employees at a weighted average grant-date fair value of $ 34.45 that vested over two and three years , respectively. On October 23, 2023, the Board approved a change in the vesting date for the RSU’s granted in 2021 that were originally expected to vest as of December 31, 2023, to December 1, 2023. The change in the vesting date was considered a Type 1 modification, as the acceleration of the vesting date did not change the expectation that the awards would ultimately vest, and accordingly, the remaining compensation expense related to the awards was recognized and did not result in any additional compensation expense. Nonvested RSU's as of December 31, 2023, and changes during the year ended December 31, 2023 were as follows: Shares Weighted Nonvested as of December 31, 2022 338,448 $ 33.28 Granted 126,931 34.57 Vested ( 167,620 ) 35.00 Forfeited ( 6,972 ) 33.83 Nonvested as of December 31, 2023 290,787 $ 32.89 During the years ended December 31, 2022 and 2021, 188,887 and 5,615 RSU's, respectively, vested at a weighted average grant-date fair value of $ 33.88 and $ 26.71 , respectively. The Company's stock-based compensation expense related to RSU's during the years ended December 31, 2023, 2022 and 2021, which was included in General and administrative expenses within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Stock-based compensation expense $ 5.1 $ 5.7 $ 4.6 Unrecognized stock-based compensation expense related to RSU's and the respective weighted average periods in which the expense will be recognized as of December 31, 2023 was as follows: Year Ended December 31, (millions) 2023 Unrecognized stock-based compensation $ 5.4 Weighted average (years) 1.7 Performance Share Units (“PSU’s”) In September 2014, the Board authorized a performance-based incentive program under the Plan (“Performance-based Incentive Program”), whereby the Company may issue PSU’s to certain individuals that represent shares potentially issuable in the future. The objective of the Performance-Based Incentive Program is to link compensation to business performance, encourage the ownership of the Company’s common stock, retain key employees and reward executives' performance. The Performance-Based Incentive Program provides participants with the opportunity to earn vested common stock if certain performance targets are achieved over the cumulative three-year period starting in the year of grant and the participants satisfy service-based vesting requirements. The stock-based compensation expense associated with PSU’s is recognized on a straight-line basis over the shorter of the vesting period or minimum service period and dependent upon the probable outcome of the number of shares that will ultimately be issued based on the achievement of the performance target defined in the award over the cumulative three-year period. The Company granted awards during the years ended December 31, 2023, 2022 and 2021 of 126,921 , 132,304 and 50,868 , respectively, under the Performance-Based Incentive Program at a weighted average grant-date fair value of $ 34.57 , $ 30.80 and $ 34.97 , respectively. The performance target for the PSU awards is based on the achievement of a certain level of operating income, excluding depreciation and amortization, subject to certain discretionary adjustments by the Board, over three-year performance periods. The ultimate number of shares issued could change depending on the Company's results over the performance period. The maximum amount of shares that could be issued for the PSU awards granted in 2023 ("2023 PSU's") and 2022 ("2022 PSU's") are 253,842 and 258,114 , respectively. The Company is currently recognizing expense for the 2023 PSU's and 2022 PSU's based on an expected payout of 129,459 shares and 196,167 shares, respectively. On October 23, 2023, the Board approved a change in the vesting date for the PSU’s granted in 2021 (“2021 PSU’s”) that were originally expected to vest as of December 31, 2023, to December 1, 2023. In addition, the Board approved the maximum payout for the awards. The Company had been recognizing expense based on the maximum payout before the modification. The changes to the 2021 PSU’s noted above were considered a Type 1 modification, as the fair value of the awards before and after the modification were the same, and accordingly, the remaining compensation expense related to the 2021 PSU’s was recognized and did not result in any additional compensation expense. Nonvested PSU’s as of December 31, 2023, and changes during the year ended December 31, 2023 were as follows: Shares Weighted Nonvested as of December 31, 2022 177,605 $ 31.94 Granted 126,921 34.57 2021 PSU's (1) 47,730 34.97 Vested ( 95,460 ) 34.97 Forfeited ( 5,334 ) 33.48 Nonvested as of December 31, 2023 251,462 $ 32.66 (1) During the year ended December 31, 2023, the Company issued an additional 47,730 shares due to the maximum performance targets being achieved for the 2021 PSU’s. As noted above, the 2021 PSU’s vested on December 1, 2023 . During the years ended December 31, 2022 and 2021, 80,979 and 112,328 PSU’s, respectively, expired at a weighted average grant-date fair value of $ 37.89 and $ 33.28 , respectively, due to the performance targets not being met. The Company's stock-based compensation expense related to PSU’s during the years ended December 31, 2023, 2022 and 2021, which was included in General and administrative expenses within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Stock-based compensation expense $ 4.7 $ 2.9 $ 1.0 Unrecognized stock-based compensation expense related to PSU’s based on current projections and the respective weighted average periods in which the expense will be recognized as of December 31, 2023 was as follows: Year Ended December 31, (millions) 2023 Unrecognized stock-based compensation $ 5.1 Weighted average (years) 1.6 The Company could recognize additional future stock-based compensation of $ 4.2 million and $ 1.9 million for the 2023 PSU's and 2022 PSU's, respectively, if the maximum performance targets are achieved. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | 7. Property and Equipment, net Property and equipment, and the related accumulated depreciation and amortization as of December 31, 2023 and 2022, were as follows: December 31 (millions) Estimated Useful Life 2023 2022 Equipment 1 - 10 Years $ 58.9 $ 54.5 Software 3 Years 74.2 61.0 Vehicles 1 - 10 Years 40.4 39.0 Other 3 Years 1.5 1.3 Shorter of lease term or economic life up to Leasehold improvements 10 years 16.8 16.7 Construction in progress 9.1 6.9 Property and equipment, gross 200.9 179.4 Accumulated depreciation and amortization ( 132.6 ) ( 119.2 ) Property and equipment, net $ 68.3 $ 60.2 Asset additions are recorded at cost, which includes interest on significant projects. Depreciation is recorded on a straight-line basis over the estimated useful lives. For leasehold improvements, depreciation is recorded over the estimated useful life or the terms of the respective leases, whichever is shorter. Property and equipment is reviewed for impairment when conditions indicate an impairment may be present. If the assets are determined to be impaired, they are either written down to their estimated fair value or the useful life is adjusted to the remaining period of the estimated remaining useful life. The Company's depreciation and amortization expense related to property and equipment during the years ended December 31, 2023, 2022 and 2021, which was included in Depreciation and amortization expense within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Depreciation expense and amortization $ 24.1 $ 19.8 $ 16.4 |
Other Intangible Assets, net
Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets, net | 8. Other Intangible Assets, net The components of other intangible assets, net, as of December 31, 2023 and 2022, were as follows: December 31, 2023 2022 Weighted Average Intangible Intangible Intangible Intangible Life Assets, Accumulated Assets, Assets, Accumulated Assets, (millions) (Years) Gross Amortization Net Gross Amortization Net Management contract rights 5.6 $ 81.0 $ ( 58.0 ) $ 23.0 $ 81.0 $ ( 52.9 ) $ 28.1 Proprietary know how 6.1 24.1 ( 6.2 ) 17.9 21.7 ( 2.7 ) 19.0 Customer relationships 7.8 25.1 ( 8.9 ) 16.2 24.8 ( 6.6 ) 18.2 Trade names and trademarks 12.5 3.0 ( 1.2 ) 1.8 2.8 ( 0.7 ) 2.1 Covenant not to compete 3.7 2.9 ( 2.1 ) 0.8 2.9 ( 1.4 ) 1.5 Other intangible assets, net 6.5 $ 136.1 $ ( 76.4 ) $ 59.7 $ 133.2 $ ( 64.3 ) $ 68.9 Amortization expense related to other intangible assets during the years ended December 31, 2023, 2022 and 2021, which was included in Depreciation and amortization within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Amortization expense $ 12.0 $ 9.9 $ 8.7 The expected future amortization of other intangible assets as of December 31, 2023 was as follows: (millions) Intangible asset 2024 $ 11.6 2025 10.5 2026 10.0 2027 6.9 2028 6.6 2029 and thereafter 14.1 Total $ 59.7 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 9. Goodwill The changes in the carrying amounts of goodwill during the years ended December 31, 2023 and 2022 were as follows: (millions) Commercial Aviation Total Net book values as of January 1, 2022 Goodwill $ 377.1 $ 209.0 $ 586.1 Accumulated impairment losses — ( 59.5 ) ( 59.5 ) Total $ 377.1 $ 149.5 $ 526.6 Acquisitions 10.1 6.2 16.3 Foreign currency translation ( 0.2 ) 0.5 0.3 Net book value as of December 31, 2022 Goodwill $ 387.0 $ 215.7 $ 602.7 Accumulated impairment losses — ( 59.5 ) ( 59.5 ) Total $ 387.0 $ 156.2 $ 543.2 Acquisitions 1.0 — 1.0 Foreign currency translation 0.1 0.3 0.4 Net book value as of December 31, 2023 Goodwill $ 388.1 $ 216.0 $ 604.1 Accumulated impairment losses — ( 59.5 ) ( 59.5 ) Total $ 388.1 $ 156.5 $ 544.6 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 10. Fair Value Measurement Fair Value Measurements-Recurring Basis In determining fair value, the Company uses various valuation approaches within the fair value measurement framework. Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. Applicable accounting literature establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The fair value hierarchy is based on observable or unobservable inputs to valuation techniques that are used to measure fair value. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect the Company's pricing based upon its own market assumptions. Applicable accounting literature defines levels within the hierarchy based on the reliability of inputs as follows: • Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3: Inputs that are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. Cash and cash equivalents are financial assets measured at fair value on a recurring basis. See Note 1. Significant Accounting Policies and Practices for further discussion. Contingent consideration liabilities are measured at fair value on a recurring basis using Level 3 inputs under the fair value hierarchy. The Company is subject to contingent consideration arrangements in connection with the acquisition of certain assets of DIRVT, as well as the purchase of a former minority partner’s share in a joint venture with the Company. Liabilities for contingent consideration are measured at fair value each reporting period, with the acquisition-date fair value for DIVRT included as part of the consideration payable for the acquired assets and subsequent changes in fair value recorded in operating expenses within the Consolidated Statements of Income. Subsequent changes in the fair value of the contingent consideration related to the purchase of a former minority partner’s share in a joint venture are recorded in Additional paid-in capital within the Consolidated Balance Sheets. See Note 1. Significant Accounting Policies and Practices and Note 2. Acquisitions for further discussion. C hanges to the contingent consideration during the years ended December 31, 2023 and 2022 were as follows: (millions) 2023 2022 Balance, beginning of year $ 4.1 $ — Acquisitions — 4.0 Additions 1.0 — Changes in fair value 0.4 0.1 Balance, end of year $ 5.5 $ 4.1 Nonrecurring Fair Value Measurements Certain assets are measured at fair value on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges. The purchase price of business acquisitions is primarily allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the excess, if applicable, recorded as goodwill. The Company utilizes Level 3 inputs in the determination of the initial fair value using certain assumptions. Non-financial assets, such as goodwill, other intangible assets, and property and equipment are subsequently measured at fair value when there is an indicator of impairment and recorded at fair value when impairment is recognized. The Company assesses the impairment of intangible assets whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. The fair value of the Company’s goodwill or other intangible assets are not estimated if there is no change in events or circumstances that indicate the carrying amount of the goodwill and intangible assets may not be recoverable. During the years ended December 31, 2022 and 2021, the Company measured certain assets at fair value, which resulted in impairment charges. The fair value of these assets were determined using a discounted cash flow (“DCF”) model, which estimated the present value of net cash flows that the asset or asset group was expected to generate. The key inputs to the DCF model included the Company’s future projections of cash operating income, capital expenditures and current discount rates. During the year ended December 31, 2023, the Company did no t recognize impairment charges. For those assets and asset groups for which impairment was recorded, the fair value as of the measurement date, net book value as of December 31, 2022 and 2021, and the related impairment charges during the years ended December 31, 2022 and 2021, were as follows: Year ended December 31, 2022 As of As of Measurement Date (millions) Measurement Date Impairment Charge Fair Value Measurement (Level 3) Net Book Value of Assets Assessed for Impairment ROU assets December 31, 2022 $ 3.7 $ 4.7 Total of ROU assets impaired $ 3.7 $ 4.7 $ 4.7 Year ended December 31, 2021 As of As of Measurement Date (millions) Measurement Date Impairment Charge Fair Value Measurement (Level 3) Net Book Value of Assets Assessed for Impairment ROU assets March 31, 2021 $ 0.1 $ — ROU assets September 30, 2021 3.5 2.0 Total of ROU assets impaired $ 3.6 $ 2.0 $ 1.9 Financial Instruments Not Measured at Fair Value The fair value of the Senior Credit Facility and other obligations approximates the carrying amount due to variable interest rates and would be classified as Level 2 in the fair value hierarchy. See Note 11. Borrowing Arrangements for further information. |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | 11. Borrowing Arrangements Long-term borrowings, as of December 31, 2023 and 2022, in order of preference, were as follows: Amount Outstanding December 31, (millions) Maturity Date 2023 2022 Senior Credit Facility, net of original discount on borrowings (1) April 21, 2027 $ 328.6 $ 322.3 Other borrowings (2) Various 25.2 24.3 Deferred financing costs ( 1.7 ) ( 2.4 ) Total obligations 352.1 344.2 Less: Current portion of long-term borrowings 16.5 12.4 Long-term borrowings, excluding current portion $ 335.6 $ 331.8 (1) Included discount on borrowings of $0 .9 million and $ 1.3 million as of December 31, 2023 and 2022, respectively. (2) Included finance lease liabilities of $ 24.1 million and $ 23.2 million as of December 31, 2023 and 2022, respectively. See Note 3. Leases for further discussion. T he future maturities of debt, including finance leases, as of December 31, 2023, were as follows: (millions) 2024 $ 17.4 2025 15.7 2026 14.7 2027 303.6 2028 1.6 Thereafter 1.8 Total $ 354.8 Senior Credit Facility On April 21, 2022 (the “Fifth Amendment Effective Date”), the Company entered into a fifth amendment (the “Fifth Amendment”) to the Company’s credit agreement (as amended prior to the Fifth Amendment Effective Date, the “Credit Agreement”; the Credit Agreement, as amended by the Fifth Amendment, the “Amended Credit Agreement”) with Bank of America, N.A. (“Bank of America”), as Administrative Agent, swing-line lender and a letter of credit issuer; certain subsidiaries of the Company, as guarantors; and the lenders party thereto (the “Lenders”), pursuant to which the Lenders have made available to the Company a senior secured credit facility (the “Senior Credit Facility”). The Senior Credit Facility permits aggregate borrowings of $ 600.0 million consisting of (i) a revolving credit facility of up to $ 400.0 million at any time outstanding, which includes a letter of credit facility that is limited to $ 100.0 million at any time outstanding, and (ii) a term loan facility of $ 200.0 million. The maturity date of the Senior Credit Facility is April 21, 2027 . As of December 31, 2023, the Company was in compliance with its debt covenants under the Amended Credit Agreement. As of December 31, 2023, the Company had $ 36.9 million of letters of credit outstanding under the Senior Credit Facility and borrowings against the Senior Credit Facility aggregated to $ 329.5 million. The weighted average interest rate on the Company's Senior Credit Facility was 6.5 % and 5.6 % during the years ended December 31, 2023 and 2022 , respectively. That rate included the letters of credit for both years and interest rate collars during the year ended December 31, 2022. The weighted average interest rate on all outstanding borrowings, not including letters of credit, was 7.0 % and 6.0 % during the years ended December 31, 2023 and 2022, respectively. During the years ended December 31, 2022 and 2021, the Company incurred approximately $ 2.5 million and $ 1.3 million for fees and other customary closing costs in connection with the Fifth Amendment and the fourth amendment to the Credit Agreement, respectively. Interest Rate Collars In May 2019, the Company entered into three-year interest rate collar contracts with an aggregate notional amount of $ 222.3 million. The interest rate collar contracts matured in April 2022. The interest rate collars were used to manage interest rate risk associated with variable interest rate borrowings under the Credit Agreement. The interest rate collars established a range where the Company paid the counterparties if the one-month London Interbank Offered Rate ("LIBOR") fell below the established floor rate, and the counterparties paid the Company if the one-month LIBOR exceeded the established ceiling rate of 2.5 %. The interest rate collars settled monthly through the maturity date. No payments or receipts were exchanged on the interest rate collar contracts unless interest rates rose above or fell below the pre-determined ceiling or floor rates. The notional amount amortized consistently with the term loan portion of the Senior Credit Facility under the Credit Agreement prior to the third amendment to the Credit Agreement (the “Third Amendment”). The fair value of the interest rate collars was a Level 2 fair value measurement, as the fair value was determined based on quoted prices of similar instruments in active markets. On May 6, 2020, concurrent with entering into the Third Amendment, the Company de-designated the interest rate collars. Prior to de-designation, the effective portion of the change in the fair value of the interest rate collars was reported in Accumulated other comprehensive loss. Upon de-designation, the balance in Accumulated other comprehensive loss was being reclassified to Other expense within the Consolidated Statements of Income on a straight-line basis through April 2022, which was over the remaining life for which the interest rate collars had previously been designated as cash flow hedges. Changes in the fair value of the interest rate collars after de-designation were included in Other expense within the Consolidated Statements of Income. During the years ended December 31, 2022 and 2021, $ 0.8 million and $ 2.5 million was paid in interest related to the interest rate collars, respectively. See Note 15. Comprehensive Income for the amount reclassified from Accumulated other comprehensive loss to Other expense within the Consolidated Statements of Income. Subordinated Convertible Debentures The Company acquired Subordinated Convertible Debentures ("Convertible Debentures") as a result of the October 2, 2012 acquisition of Central Parking Corporation. As of October 2, 2012, the convertible debentures were no longer redeemable for shares. The Convertible Debentures mature April 1, 2028 at $ 25 per share. The subordinated debenture holders have the right to redeem the Convertible Debentures for $ 19.18 per share upon acceleration or earlier repayment of the Convertible Debentures. There were no redemptions of Convertible Debentures during the years ended December 31, 2023 and 2022, respectively. The approximate redemption value of the Convertible Debentures outstanding as of December 31, 2023 and December 31, 2022 was $ 1.1 million. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stock Repurchase Program | 12. Stock Repurchase Program In February 2023, the Board authorized the Company to repurchase, on the open market, shares of the Company’s outstanding common stock in an amount not to exceed $ 60.0 million in aggregate. No shares have been repurchased under this program. In May 2022, the Board authorized the Company to repurchase, on the open market, shares of the Company’s outstanding common stock in an amount not to exceed $ 60.0 million in aggregate. During the year ended December 31, 2023 , the Company repurchased 285,700 shares of common stock at an average price of $ 36.53 under this program. As of December 31, 2023, $ 0.2 million remained available for repurchase under this program. As of December 31, 2023 , $ 60.2 million remained available for repurchase under the May 2022 and February 2023 stock repurchase programs. Under the programs, repurchases of the Company's common stock may be made in open market transactions effected through a broker-dealer at prevailing market prices, in block trades or by other means in accordance with Rules 10b-18, to the extent relied upon, and 10b5-1 under the Exchange Act at times and prices considered to be appropriate at the Company's discretion. The stock repurchase programs do not obligate the Company to repurchase any particular amount of common stock, has no fixed termination date, and may be suspended at any time at the Company's discretion. As a condition of the Merger Agreement , beginning on October 4, 2023, the Company is restricted from repurchasing its common stock. Stock repurchase activity under the May 2022 stock repurchase program for the years ended December 31, 2023 and 2022 was as follows: (millions, except for share and per share data) December 31, 2023 December 31, 2022 Total number of shares repurchased 285,700 1,474,300 Average price paid per share $ 36.53 $ 33.47 Total value of common stock repurchased $ 10.4 $ 49.4 The Company recorded $ 0.1 million in Additional paid-in capital within the Consolidated Balance Sheets during the year ended December 31, 2023, related to the excise tax on net repurchases of common stock that was a provision of the Inflation Reduction Act of 2022. The remaining authorized repurchase amount under the May 2022 and February 2023 stock repurchase programs as of December 31, 2023 was as follows: (millions) December 31, 2023 Total authorized repurchase amount $ 120.0 Total value of shares repurchased 59.8 Total remaining authorized repurchase amount $ 60.2 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Earnings before income taxes during the years ended December 31, 2023, 2022 and 2021, was as follows: Year Ended December 31, (millions) 2023 2022 2021 United States $ 47.8 $ 65.1 $ 44.8 Foreign 0.9 0.5 1.0 Total $ 48.7 $ 65.6 $ 45.8 The components of income tax expense (benefit) during the years ended December 31, 2023, 2022 and 2021 were as follows: Year Ended December 31, (millions) 2023 2022 2021 Current U.S. Federal $ 8.2 $ 6.9 $ ( 3.2 ) Foreign 0.8 0.3 0.2 State 3.6 2.7 1.0 Total current 12.6 9.9 ( 2.0 ) Deferred U.S. Federal 1.3 5.1 9.7 Foreign ( 0.5 ) — 0.1 State 0.6 2.5 2.7 Total deferred 1.4 7.6 12.5 Income tax expense $ 14.0 $ 17.5 $ 10.5 Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for U.S. GAAP purposes and the amount used for income tax purposes. The c omponents of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows: December 31, (millions) 2023 2022 Deferred income tax assets NOL carry forwards and tax credits $ 17.7 $ 20.2 Lease liabilities 57.8 59.0 Accrued expenses 16.7 15.7 Accrued compensation 10.3 10.2 Depreciation 27.6 27.6 Other 4.8 0.2 Total deferred income tax assets 134.9 132.9 Valuation allowances ( 6.8 ) ( 9.0 ) Net deferred income tax assets 128.1 123.9 Deferred income tax liabilities ROU assets ( 47.3 ) ( 43.9 ) Depreciation and amortization ( 12.9 ) ( 13.5 ) Goodwill ( 22.3 ) ( 19.3 ) Equity investments in unconsolidated entities ( 4.7 ) ( 5.1 ) Other ( 0.4 ) ( 0.3 ) Total deferred income tax liabilities ( 87.6 ) ( 82.1 ) Total net deferred income tax asset $ 40.5 $ 41.8 Amounts per Consolidated Balance Sheets Deferred income tax assets 42.8 44.4 Deferred income tax liabilities (included in Other noncurrent liabilities) ( 2.3 ) ( 2.6 ) Total net deferred income tax asset $ 40.5 $ 41.8 Changes affecting the valuation allowances on deferred tax assets during the years ended December 31, 2023, 2022 and 2021, were as follows: December 31, (millions) 2023 2022 2021 Beginning Balance $ 9.0 $ 10.9 $ 10.7 Current year (benefit) expense ( 2.2 ) ( 1.9 ) 0.2 Ending Balance $ 6.8 $ 9.0 $ 10.9 The accounting guidance for income taxes requires the Company to assess the realizability of deferred tax assets at each reporting period. These assessments generally consider several factors including the reversal of existing temporary differences, projected future taxable income and potential tax planning strategies. The Company has valuation allowances of $ 6.8 million and $ 9.0 million as of December 31, 2023 and 2022, respectively, primarily related to the Company’s state NOLs, foreign tax credits and state tax credits that the Company believes are not likely to be realized based on its estimates of future foreign and state taxable income, limitations on the uses of its state NOLs and the carryforward life over which the state tax benefit is realized. The Company has $ 17.7 m illion of tax effected state NOLs, foreign tax credits and state tax credits as of December 31, 2023 , which will expire in the years 2024 through 2043 . As noted above, the utilization of NOLs of the Company are limited. A reconciliation of differences between the U.S. Federal statutory income tax rate and the Company's effective income tax rate during the years ended December 31, 2023, 2022 and 2021, was as follows: Year Ended December 31, (percentages) 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % Permanent differences 4.8 % 1.3 % 1.4 % State and local income taxes, net of federal benefit 11.6 % 10.0 % 6.8 % Foreign taxes 0.7 % 0.4 % 0.5 % Federal NOL carryback rate differential — — ( 4.4 )% Noncontrolling interest ( 1.6 )% ( 0.9 )% ( 1.7 )% Recognition of tax credits ( 3.3 )% ( 2.2 )% ( 1.0 )% 33.2 % 29.6 % 22.6 % Change in valuation allowance ( 4.5 )% ( 2.9 )% 0.3 % Effective tax rate 28.7 % 26.7 % 22.9 % Due to the Coronavirus Aid, Relief, and Economic Security Act in 2020, the Company was able to carry back its 2020 U.S. Federal taxable loss to the 2015 and 2016 tax years, which had a higher corporate tax rate. As a result, based on the Company’s initial estimates as of December 31, 2020, the Company recorded an income tax refund receivable of $ 15.4 as of December 31, 2020. During the year ended December 31, 2021, the Company finalized its 2020 U.S. Federal income tax return, which resulted in a $ 5.1 million increase of the income tax refund receivable, of which $ 2.0 million related to the additional benefit recognized due to the ability to carryback the Company’s 2020 U.S. Federal taxable loss to tax years 2015 and 2016. The $ 20.5 million income tax refund was received during the year ended December 31, 2022. Taxes paid were $ 10.2 million, $ 13.8 million and $ 0.8 during the years ended December 31, 2023 , 2022 and 2021, respectively. Taxes refunded were $ 0.2 million, $ 20.9 million and $ 0.3 million during the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, the Company had not identified any uncertain tax positions that would have a material impact on the Company's financial position. The Company would recognize potential interest and penalties related to uncertain tax positions, if any, in income tax expense. The tax years that remain subject to examination for the Company's major tax jurisdictions as of December 31, 2023 and 2022 were as follows: 2020 - 2023 United States - federal income tax 2019 - 2023 United States - state and local income tax 2019 - 2023 Foreign - Canada and Puerto Rico |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | 14. Benefit Plans Deferred Compensation Arrangements The Company offered deferred compensation arrangements for certain key executives. Certain employees are offered supplemental pension arrangements, subject to their continued employment by the Company, in which the employees will receive a defined monthly benefit upon attaining age 65 . As of December 31, 2023 and 2022 , the Company had $ 2.7 million and $ 2.8 million, respectively, recorded in Other noncurrent liabilities within the Consolidated Balance Sheets, representing the present value of the future benefit payments. Expenses related to these plans was $ 0.2 million during the years ended December 31, 2023, 2022 and 2021. In addition, the Company has agreements with certain former executives that provide for aggregate annual payments over periods ranging from 10 years to life, beginning when the executive retires or upon death or disability. Under certain conditions, the amount of the deferred benefits can be reduced. Compensation cost was $ 0.2 during the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023 and 2022 , the Company had $ 1.3 million and $ 1.4 million, respectively, recorded in Other noncurrent liabilities within the Consolidated Balance Sheets, associated with these agreements. Life insurance contracts with a face value of approximately $ 4.1 million as of December 31, 2023 and 2022 , respectively, have been purchased to fund, as necessary, the benefits under the Company's deferred compensation agreements. The cash surrender value of the life insurance contracts was approximately $ 3.4 million and $ 3.3 million as of December 31, 2023 and 2022, respectively, and classified in Other noncurrent assets, net, within the Consolidated Balance Sheets. The plan is a non-qualified plan and not subject to ERISA funding requirements. Defined Contribution Plans The Company sponsors savings and retirement plans whereby the participants may elect to contribute a portion of their compensation to the plans. The plan is a qualified defined contribution plan 401(k). The Company contributes an amount in cash or other property as a Company match equal to 50 % of the first 6 % of contributions as they occur. As a result of COVID-19, during the second quarter of 2020 and through September 30, 2021, the Company suspended the Company match under the plan. The Company reinstituted the Company match during the fourth quarter of 2021. Expenses related to the Company's 401(k) were $ 2.6 million, $ 2.0 million, and $ 0.6 million during the years ended December 31, 2023, 2022 and 2021, respectively. Additionally, the Company offers a non-qualified deferred compensation plan to those employees whose participation in the 401(k) plan is limited by statute or regulation. This plan allows certain employees to defer a portion of their compensation, limited to a maximum of $ 0.1 million per year, to be paid to the participants upon separation of employment or distribution date selected by the employee. To support the non-qualified deferred compensation plan, the Company has elected to purchase Company Owned Life Insurance ("COLI") policies on certain plan participants. The cash surrender value of the COLI policies is designed to provide a source for funding the non-qualified deferred compensation liabilities. As of December 31, 2023 and 2022 , the cash surrender value of the COLI policies was $ 22.5 million and $ 19.2 million, respectively, and classified in Other noncurrent assets, net, within the Consolidated Balance Sheets. The liabilities for the non-qualified deferred compensation plan were $ 24.9 million and $ 19.4 million as of December 31, 2023 and 2022, respectively, and included in Other noncurrent liabilities within the Consolidated Balance Sheets. Multi-Employer Defined Benefit and Contribution Plans The Company contributes to multiemployer defined benefit plans under the terms of collective-bargaining agreements that cover its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If the Company chooses to stop participating in one of its multiemployer plans, it may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The Company's contributions represented more than 5% of total contributions to the Teamsters Local Union No. 727 and Local 272 Labor Management Benefit Funds during the plan years ending October 31, 2023 and August 15, 2023, respectively. The Company does not contribute more than 5% to any other fund. The Company's participation in these plans for the annual periods ended December 31, 2023, 2022 and 2021, is presented in the table below. The "EIN/Pension Plan Number" column provides the Employee Identification Number ("EIN") and the three-digit plan number, if applicable. The zone status was based on information that the Company received from the plan and was certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The "FIP/RP Status Pending/Implementation" column indicates plans for which a Financial Improvement Plan ("FIP") or a Rehabilitation Plan ("RP") is either pending or has been implemented. Finally, the " Expiration Date of Collective Bargaining Agreement " column lists the expiration dates of the agreements to which the plans are subject. Zone Status Pension Protection as of the Expiration EIN/ Zone Status Contributions (millions) Most Date of Pension FIP/FR Recent Collective Plan Pending Surcharge Annual Bargaining Pension Number 2023 2022 2021 Implementation 2023 2022 2021 Imposed Report Agreement Teamsters Local 36-61023973 Green Green Green N/A $ 3.7 $ 3.5 $ 2.9 No 2023 10/31/2026 Local 272 Labor 13-5673836 Green Green Green N/A $ 0.9 $ 0.9 $ 0.9 No 2023 8/15/2026 Net expenses for contributions not reimbursed by clients related to multiemployer defined benefit and defined contribution benefit plans were $ 1.0 million, $ 0.9 million and $ 0.8 million during the years ended December 31, 2023, 2022 and 2021, respectively. The Company currently does not have any intentions to cease participating in these multiemployer pension plans. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | 15. Comprehensive Income The components of other comprehensive income and the income tax benefit allocated to each component during the years ended December 31, 2023, 2022 and 2021, were as follows: 2023 2022 2021 (millions) Before Tax Amount Income Tax Net of Tax Amount Before Tax Amount Income Tax Net of Tax Amount Before Tax Amount Income Tax Net of Tax Amount Translation adjustments $ 0.5 $ — $ 0.5 $ 0.5 $ — $ 0.5 $ ( 0.1 ) $ — $ ( 0.1 ) De-designation of interest rate collars — — — 0.7 0.2 0.5 2.3 0.6 1.7 Other Comprehensive income $ 0.5 $ — $ 0.5 $ 1.2 $ 0.2 $ 1.0 $ 2.2 $ 0.6 $ 1.6 The changes to accumulated other comprehensive loss by component during the years ended December 31, 2023, 2022 and 2021, were as follows: Total Foreign Accumulated Currency Other Translation Interest Rate Comprehensive (millions) Adjustments Collars Loss Balance as of January 1, 2021 $ ( 2.2 ) $ ( 2.2 ) $ ( 4.4 ) Other comprehensive loss before reclassification ( 0.1 ) — ( 0.1 ) Amounts reclassified from accumulated other comprehensive loss — 1.7 1.7 Balance as of December 31, 2021 ( 2.3 ) ( 0.5 ) ( 2.8 ) Other comprehensive income before reclassification 0.5 — 0.5 Amounts reclassified from accumulated other comprehensive loss — 0.5 0.5 Balance as of December 31, 2022 ( 1.8 ) — ( 1.8 ) Other comprehensive income before reclassification 0.5 — 0.5 Balance as of December 31, 2023 $ ( 1.3 ) $ — $ ( 1.3 ) Reclassifications from accumulated other comprehensive loss during the years ended December 31, 2023, 2022 and 2021, were as follows: (millions) 2023 2022 2021 Classification in the Consolidated Statements of Income Interest Rate Collars: Net realized loss $ — $ 0.7 $ 2.3 Other expenses Reclassifications before tax — 0.7 2.3 Income tax benefit — 0.2 0.6 Reclassifications, net of tax $ — $ 0.5 $ 1.7 |
Legal and Other Commitments and
Legal and Other Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Other Commitments and Contingencies | 16. Legal and Other Commitments and Contingencies The Company is subject to claims and litigation in the normal course of its business, including those related to labor and employment, contracts, personal injury and other related matters, some of which allege substantial monetary damages and claims. Some of these actions may be brought as class actions on behalf of a class or purported class of employees. While the outcomes of claims and legal proceedings brought against the Company are subject to uncertainty, the Company believes the final outcome will not have a material adverse effect on its financial position, results of operations or cash flows. The Company accrues a charge when it determines that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. When a loss is probable, the Company records an accrual based on the reasonably estimable loss or range of loss. When no point of loss is more likely than another, the Company records the lowest amount in the estimated range of loss, and if material, discloses the estimated range. The Company does not record liabilities for reasonably possible loss contingencies, but does disclose a range of reasonably possible losses if they are material and the Company is able to estimate such a range. If the Company cannot provide a range of reasonably possible losses, it explains the factors that prevent it from determining such a range. The Company regularly evaluates current information available to determine whether an accrual should be established or adjusted. Estimating the probability that a loss will occur and the amount of a loss or a range of loss involves significant estimation and judgment. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 17. Segment Information Segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the Company's Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s segments are organized in a manner consistent with which discrete financial information is available and evaluated regularly by the CODM in deciding how to allocate resources and assess performance. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by the CODM. The CODM is the Company’s chief executive officer. Each of the operating segments are directly responsible for revenue and expenses related to their operations, including direct segment general and administrative expenses. The CODM assesses the performance of each operating segment using information about operating income (loss) as its primary measure of performance, but does not evaluate segments using discrete asset information. Therefore, assets are not presented at the segment level. There were no material inter-segment transactions during the years ended December 31, 2023, 2022 and 2021, and the Company does not allocate other expense (income), interest expense (income) or income tax expense (benefit) to the operating segments. The accounting policies for segment reporting are the same as for the Company as a whole. The Company’s operating segments are Commercial and Aviation: • Commercial encompasses the Company's services in healthcare facilities, municipalities, including meter revenue collection and enforcement services, government facilities, hotels, commercial real estate, residential communities, retail, colleges and universities, as well as ancillary services such as providing technology-based mobility solutions, shuttle and ground transportation services, valet services, taxi and livery dispatch services and event planning, including shuttle and transportation services. • Aviation encompasses the Company's services in aviation (i.e., airports, airline and certain hospitality clients with baggage and parking services) as well as ancillary services, which includes shuttle and ground transportation services, valet services, baggage handling, baggage repair and replacement, remote air check-in services, wheelchair assist services and other services, as well as providing technology-based mobility solutions. The Other segment includes costs related to the Company's operational support teams and costs related to common and shared infrastructure, including finance, accounting, information technology, human resources, purchasing, legal and corporate development. Revenue, operating income (loss), general and administrative expenses and depreciation and amortization by operating segment during the years ended December 31, 2023, 2022 and 2021 were as follows: Year Ended December 31, (millions) 2023 2022 2021 Services revenue Commercial Management type contracts $ 307.7 $ 276.8 $ 232.5 Lease type contracts 277.8 261.7 206.5 Total Commercial 585.5 538.5 439.0 Aviation Management type contracts 282.3 241.9 153.4 Lease type contracts 15.4 14.0 9.1 Total Aviation 297.7 255.9 162.5 Reimbursed management type contract revenue 899.1 759.1 575.7 Total services revenue $ 1,782.3 $ 1,553.5 $ 1,177.2 Operating income (loss) Commercial $ 135.0 $ 122.0 $ 101.3 Aviation 37.9 33.5 21.8 Other ( 95.4 ) ( 72.6 ) ( 56.6 ) Total operating income $ 77.5 $ 82.9 $ 66.5 General and administrative expenses Commercial $ 36.6 $ 29.3 $ 23.0 Aviation 17.2 12.6 11.8 Other 86.6 67.2 53.4 Total general and administrative expenses $ 140.4 $ 109.1 $ 88.2 Depreciation and amortization Commercial (1) $ 15.1 $ 13.1 $ 13.5 Aviation (2) 12.2 11.2 8.4 Other 8.8 5.4 3.2 Total depreciation and amortization $ 36.1 $ 29.7 $ 25.1 (1) Included depreciation and amortization expenses related to cost of services activities of $ 8.3 million, $ 7.9 million and $ 7.9 million during the years ended December 31, 2023, 2022 and 2021, respectively. (2) Included depreciation and amortization expenses related to cost of services activities of $ 6.1 million, $ 5.8 million and $ 4.6 million during the years ended December 31, 2023, 2022 and 2021 , respectively. |
Significant Accounting Polici_2
Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and Variable Interest Entities ("VIEs") in which the Company is the primary beneficiary. The Company is the primary beneficiary of a VIE when the Company has the power to direct activities that most significantly affect the economic performance of the VIE. If the Company is not the primary beneficiary in a VIE and has significant influence, the Company accounts for the investment in the VIE as an equity method investment in accordance with applicable accounting principles generally accepted in the United States (“U.S. GAAP”). As of December 31, 2023 and 2022 , assets related to consolidated VIEs were $ 51.4 million and $ 57.1 million, respectively, which were primarily related to right-of-use (“ROU”) assets and property and equipment, net. As of December 31, 2023 and 2022 , liabilities related to consolidated VIEs were $ 43.5 million and $ 50.9 million, respectively, which were primarily related to operating and finance lease liabilities. All intercompany profits, transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current environment. |
Foreign Currency Translation | Foreign Currency Translation The Company has foreign operations in Canada, Puerto Rico, the United Kingdom and India. Assets and liabilities of the Company's foreign operations are translated into U.S. dollars at the rate in effect on the respective balance sheet date, while income and expenses are translated at the average rates during the respective periods. Translation adjustments resulting from the fluctuations in exchange rates are recorded as a separate component of Accumulated other comprehensive loss in Stockholders’ equity within the Consolidated Balance Sheets, while transaction gains and losses are recorded within the Consolidated Statements of Income. Deferred taxes are not recorded on cumulative foreign currency translation adjustments when the Company expects the foreign earnings to be permanently reinvested. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents represent funds temporarily invested in money market instruments with maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements were $ 0.2 million and $ 0.6 million as of December 31, 2023 and 2022 , respectively, and were included in Cash and cash equivalents within the Consolidated Balance Sheets. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Accounts receivable, net of the allowance for doubtful accounts, represents the Company's estimate of the amount that ultimately will be realized in cash. The Company reviews the adequacy of its allowance for doubtful accounts on an ongoing basis, primarily using a review of specific accounts, as well as historical collection trends and aging of receivables, and records adjustments to the allowance as necessary. Changes in economic conditions or other circumstances could have an impact on the collection of existing accounts receivable balances or future allowance considerations. Transactions affecting the allowance for doubtful accounts during the years ended December 31, 2023, 2022 and 2021 were as follows: (millions) December 31, 2023 December 31, 2022 December 31, 2021 Beginning Balance $ 4.0 $ 3.5 $ 5.1 Provision for credit losses 1.7 0.5 0.8 Write offs and other ( 3.1 ) - ( 2.4 ) Ending Balance $ 2.6 $ 4.0 $ 3.5 |
Property and Equipment, net | Property and Equipment, net Property and equipment includes the Company's equipment, internal-use software, vehicles, leasehold improvements and construction/development in process. Property and equipment are stated at cost, less accumulated depreciation and amortization, whenever applicable. Certain costs incurred in the planning and evaluation stage of internal-use software projects are recorded to expense as incurred. Costs associated with directly obtaining, developing or upgrading internal-use software are capitalized and included as Software in Property and equipment, net, within the Consolidated Balance Sheets. When the internal-use software is ready for its intended use, it is amortized on a straight-line basis over the estimated useful life of the internal-use software, which is typically 3 years . Equipment and vehicles are depreciated on a straight-line basis over the estimated useful lives ranging from 1 to 10 years . Expenditures for major renewals and improvements that extend the useful life of property and equipment, other than internal-use software, are capitalized. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases or the useful lives of the improvements, whichever is shorter. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired. In accordance with the Financial Accounting Standards Board's ("FASB") authoritative accounting guidance on goodwill, the Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances change that could cause goodwill to become impaired. The Company has elected to assess the impairment of goodwill annually on October 1 or at an interim date if there is an event or change in circumstances indicating the carrying value may not be recoverable. The goodwill impairment test is performed at the reporting unit level; the Company's reporting units represent its operating segments, consisting of Commercial and Aviation. Factors that could trigger an impairment review include significant under-performance relative to expected historical or projected future operating results, significant changes in the use of acquired assets or the Company’s business strategy, and significant negative industry or economic trends. The Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines it is more likely than not that the fair value is less than the carrying amount, the Company would need to perform a quantitative assessment. The determination of fair value of a reporting unit utilizes cash flow projections that assume certain future revenue and cost levels, comparable marketplace data, comparable company market valuations, assumed discount rates based upon current market conditions and other valuation factors, all of which involve the use of significant judgment and estimates. The Company also assesses critical areas that may impact its business including economic conditions, market related exposures, competition, changes in service offerings and changes in key personnel. The Company completed a qualitative test of goodwill as of October 1, 2023, and concluded that it is more likely than not that the estimated fair values of each of the Company’s reporting units exceeded the carrying amount of net assets assigned to each reporting unit. |
Other Intangible Assets, net | Other Intangible Assets, net Other intangible assets represent assets with finite lives that are amortized on a straight-line basis over their estimated useful lives. The Company evaluates other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to their remaining useful lives. In addition, other intangible assets are reviewed for impairment when circumstances change that would indicate the carrying value may not be recoverable. Assumptions and estimates about future values and remaining useful lives of intangible assets are complex and subjective, and can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors, such as changes in the Company’s business strategy and forecasts. Although the Company believes the historical assumptions and estimates are reasonable and appropriate, different assumptions and estimates could materially impact reported financial results. For both goodwill and intangible assets, future events may indicate differences from the Company's judgments and estimates which could, in turn, result in impairment charges. Future events that may result in impairment charges include economic volatility, increases in interest rates, which would impact discount rates, or other factors which could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities, such as increasing labor and benefit costs. |
Long-Lived Assets | Long-Lived Assets The Company evaluates long-lived assets, including ROU assets, leasehold improvements, equipment and construction/development in progress, for impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The Company groups assets at the lowest level for which cash flows are separately identified in order to measure an impairment. Events or circumstances that would result in an impairment review include a significant change in the use of an asset, the planned sale or disposal of an asset, or a projection that demonstrates continuing losses associated with the use of a long-lived asset or asset group. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset or asset group to future undiscounted cash flows expected to be generated by the asset or asset group. If the asset or asset group is determined to be impaired, the impairment recognized is measured by the amount by which the carrying value of the asset or asset group exceeds its fair value. The Company determined impairment testing triggers had occurred for ROU assets associated with certain asset groups during the years ended December 31, 2022 and 2021. See Note 3. Leases for further discussion. The Company determined no impairment testing triggers had occurred for long-lived assets during the year ended December 31, 2023. Assumptions and estimates used to determine cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any future changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets and could result in additional impairment charges. Future events that may result in impairment charges include economic volatility or other factors that could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities, such as increasing labor and benefit costs. |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Components of Accrued and other current liabilities as of December 31, 2023 and 2022 were as follows: (millions) December 31, 2023 December 31, 2022 Accrued rent $ 20.1 $ 21.4 Compensation and payroll withholdings 26.2 29.2 Property, payroll and other taxes 5.1 7.8 Accrued insurance 24.9 24.0 Contract liabilities 17.5 17.4 Contingent consideration 2.8 1.8 Accrued expenses 31.5 36.0 Accrued and other current liabilities $ 128.1 $ 137.6 |
Financial Instruments | Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Book overdrafts o f $ 31.0 million and $ 30.9 million were included in Accounts payable within the Consolidated Balance Sheets as of December 31, 2023 and 2022 , respectively. Long-term debt has a carrying value that approximates fair value because the instruments bear interest at variable market rates. |
Insurance Reserves | Insurance Reserves The Company purchases comprehensive casualty insurance covering certain claims that arise in connection with the Company’s operations. In addition, the Company purchases umbrella/excess liability coverage. Under the various liability and workers' compensation insurance policies, the Company is obligated to pay directly or reimburse the insurance carrier for the deductible / retention amount of each loss covered by the Company’s general / garage, automobile, workers' compensation and garage keepers legal liability policies. As a result, the Company is, effectively self-insured for all claims within the deductible / retention amount of each loss. Any loss over the deductible / retention is the responsibility of the third-party insurer. The expense recognition is based upon the Company's determination of an unfavorable outcome of a claim being deemed as probable and capable of being reasonably estimated. This determination requires the use of judgment in both the estimation of probability and the amount to be recognized as an expense. The Company utilizes historical claims experience and exposures specific to each type of insurance, along with actuarial methods performed quarterly by a third party actuarial adviser in determining the required level of insurance reserves. As of December 31, 2023 and 2022 , the insurance reserve for general, garage, automobile and workers’ compensation liabilities was $ 50.3 million and $ 48.4 million, respectively, of which $ 24.9 million and $ 24.0 million was recorded in Accrued and other current liabilities within the Consolidated Balance Sheets as of December 31, 2023 and 2022 , respectively, and $ 25.4 million and $ 24.4 million was recorded in Other noncurrent liabilities within the Consolidated Balance Sheets as of December 31, 2023 and 2022 , respectively. Future information regarding historical loss experience may require changes to the level of insurance reserves and could result in increased expense in the future. |
Legal and Other Commitments and Contingencies | Legal and Other Commitments and Contingencies The Company is subject to litigation in the normal course of its business. The Company uses guidance from internal and external legal counsel on the potential outcome of litigation in determining the need to record liabilities for potential losses and the disclosure for pending legal claims. See Note 16. Legal and Other Commitments and Contingencies for further discussion. |
Revenue From Contract With Customer | Services Revenue The Company's revenues are primarily derived from management type and lease type contracts; whereby the Company provides parking services, parking management, ground transportation services, baggage handling services and other ancillary services to commercial, hospitality, institutional, municipal and aviation clients. Ancillary services include fees associated with using the Company's technology-driven mobility solutions, as well as on-site parking management, facility maintenance, ground transportation services, event logistics, remote airline check-in, security services, municipal meter revenue collection and enforcement services, and scheduling and supervising all service personnel, as well as providing customer service, marketing, accounting and revenue control functions necessary to complete such services. Ancillary services also include payments received for exercising termination rights, consulting development fees, gains on sales of contracts, insurance (general, workers' compensation and health care) and other value-added services. In accordance with the guidance related to revenue recognition, entities are required to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company recognizes gross receipts (net of taxes collected from customers) as revenue from lease type contracts, and management fees for services, as the related services are performed. Ancillary services are primarily included in management type contracts and are recognized as revenue as those services are provided. Reimbursed Management Type Contract Revenue and Expense The Company recognizes both revenues and expenses, in equal amounts, that are directly reimbursed by the Company’s clients for operating expenses incurred under a management type contract. The Company has determined it is the principal in these transactions as the nature of the Company's performance obligations is for the Company to provide the services on behalf of the customer. As the principal to these related transactions, the Company has control of the promised services before they are provided to the customer. Cost of Services The Company recognizes costs for lease type contracts, non-reimbursed costs from management type contracts and reimbursed management type contract expenses as cost of services. Cost of services consists primarily of rent, payroll related costs and other miscellaneous expenses. |
Stock-Based Compensation | Stock-Based Compensation Stock-based payments to employees, including grants of restricted stock and performance-based share units, are measured at the grant date, based on the estimated fair value of the award, and the related expense is recognized over the requisite employee service period or performance period (generally the vesting period) for awards expected to vest. The Company also grants stock to its Board of Directors (the “Board”) on an annual basis, which is recorded as expense at the grant date, based on the fair value of the award. The Company accounts for forfeitures of stock-based awards as they occur. See Note 6. Stock-Based Compensation for further discussion. |
Equity Investments in Unconsolidated Entities | Equity Investment in Unconsolidated Entities The Company has ownership interests in 26 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 20 are consolidated under the VIE or voting interest models and 6 are unconsolidated where the Company’s ownership interests range from 30 - 50 percent and for which there are no indicators of control. The Company accounts for such investments under the equity method of accounting, and the Company’s underlying share of each investee’s equity of $ 12.2 million and $ 11.9 million as of December 31, 2023 and 2022 , respectively, was included in Other noncurrent assets within the Consolidated Balance Sheets. As the operations of these entities are consistent with the Company’s underlying core business operations, the equity in earnings of these investments were included in Services revenue within the Consolidated Statements of Income. The equity earnings in these related investments were $ 2.6 million, $ 4.6 million and $ 1.4 million during the years ended December 31, 2023, 2022 and 2021 , respectively. |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represent the noncontrolling holders' percentage share of income (losses) from the subsidiaries in which the Company holds a controlling, but less than 100 percent, ownership interest. The results of these subsidiaries are consolidated and included in the Company’s Consolidated Financial Statements. During the year ended December 31, 2023, the Company recognized a $ 1.0 million liability, which was recorded in Other noncurrent liabilities within the Consolidated Balance Sheets as of December 31, 2023, related to its estimate of additional consideration (“contingent consideration”) due to a former minority partner that held a noncontrolling interest in a joint venture with the Company. The Company purchased the minority partner’s interest in the joint venture in 2020. The contingent consideration is contingent on the performance of certain parking-related operations of the Bradley International Airport. The contingent consideration is not capped and, if any amount is due, would be payable to the former minority partner in April 2025. The $ 1.0 million was determined based on a probability weighting of potential payouts and recorded in Additional paid-in capital within the Consolidated Balance Sheets. In addition, the Company recorded a deferred tax asset of $ 0.3 million related to the contingent consideration during the year ended December 31, 2023, which was also recorded in Additional paid-in capital within the Consolidated Balance Sheets. The Company will continue to evaluate the criteria for making these payments in the future and adjust the liability when deemed necessary. Additionally, during the year ended December 31, 2023, the Company paid a former minority partner $ 2.4 million per the terms of an agreement between the Company and the former minority partner. As of December 31, 2022, the Company entered into an agreement with the former partner to purchase the former minority partner’s entire noncontrolling interest in a joint venture with the Company. Per the terms of the agreement, the Company is required to make additional payments to the former minority partner over a ten-year period, starting in 2023, amounting to a total of $ 4.5 million to be paid to the former minority partner. The $ 2.4 million that was paid during the year ended December 31, 2023 was included in Accrued and other current liabilities within the Consolidated Balance Sheets as of December 31, 2022. As of December 31, 2023 and 2022, the liability for the payment to the former minority partner was $ 1.7 million and $ 4.0 million, respectively, of which $ 0.4 million and $ 2.4 million was recorded in Accrued and other current liabilities within the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively, and $ 1.3 million and $ 1.6 million was recorded in Other noncurrent liabilities within the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively. |
Income Taxes | Income Taxes Deferred income taxes are computed using the asset and liability method, such that deferred tax assets and liabilities are recognized for deductible temporary differences between US GAAP amounts and the tax basis of existing assets and liabilities based on currently enacted tax laws and tax rates in effect for the periods in which these temporary differences are expected to reverse or be settled. Income tax expense (benefit) is the tax payable (receivable) for the period plus the change during the period in deferred income taxes. The Company has certain state net operating loss (“NOL”) carry forwards which expire in 2043. The Company considers a number of factors in its assessment of the recoverability of its NOL carryforwards including their expiration dates and the limitations imposed due to the change in ownership as well as future projections of income. Future changes in the Company's operating performance, along with these considerations, may significantly impact the amount of NOLs ultimately recovered, and the Company’s assessment of their recoverability. The Company recognizes deferred tax liabilities related to taxes on certain foreign earnings that were not considered to be permanently reinvested. In addition, the Company has recognized deferred tax liabilities on nondeductible intangible assets. When evaluating the Company’s tax positions, the Company accounts for uncertainty in income taxes in its Consolidated Financial Statements. The evaluation of a tax position by the Company is a two-step process, the first step being recognition. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon tax examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position and the weight of available evidence. If a tax position does not meet the more-likely-than-not threshold, which is more than 50% likely of being realized, the benefit of that position is not recognized in the Company’s financial statements. The second step is measurement of the tax benefit. The tax position is measured as the largest amount of benefit that is more-likely-than-not of being realized, which is more than 50% likely of being realized upon ultimate resolution with a taxing authority. See Note 13. Income Taxes for further discussion. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Pronouncements to be Adopted Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, Improvements to Reportable Segment Disclosures. Public companies are required to disclose significant segment expenses and other segment items on an interim and annual basis and provide all disclosures about a reportable segment’s profit or loss and assets in interim periods. Entities are also permitted to disclose more than one measure of a segment’s profit or loss if such measures are used by the chief operating decision maker ("CODM") to allocate resources and assess performance, as long as at least one of those measures is determined in a way that is most consistent with the measurement principles used to measure the corresponding amounts in the Consolidated Financial Statements. These amendments aim to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The guidance is applied retrospectively to all periods presented in the Consolidated Financial Statements, unless doing so is impracticable, and early adoption is permitted. The ASU is effective for fiscal years beginning after 15 December 2023. The Company is currently assessing the impact of adopting the standard on the Company’s financial statement disclosures. Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. These amendments require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. Companies are required to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and provide more details about the reconciling items in some categories if items meet a certain quantitative threshold. The guidance will require all entities to disclose income taxes paid, net of refunds, disaggregated by federal (national), state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a certain quantitative threshold. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the impact of adopting the standard on the Company’s financial statement disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies and Practices (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Transactions Affecting Allowance for Doubtful Accounts | Transactions affecting the allowance for doubtful accounts during the years ended December 31, 2023, 2022 and 2021 were as follows: (millions) December 31, 2023 December 31, 2022 December 31, 2021 Beginning Balance $ 4.0 $ 3.5 $ 5.1 Provision for credit losses 1.7 0.5 0.8 Write offs and other ( 3.1 ) - ( 2.4 ) Ending Balance $ 2.6 $ 4.0 $ 3.5 |
Components of Accrued and Other Current Liabilities | Components of Accrued and other current liabilities as of December 31, 2023 and 2022 were as follows: (millions) December 31, 2023 December 31, 2022 Accrued rent $ 20.1 $ 21.4 Compensation and payroll withholdings 26.2 29.2 Property, payroll and other taxes 5.1 7.8 Accrued insurance 24.9 24.0 Contract liabilities 17.5 17.4 Contingent consideration 2.8 1.8 Accrued expenses 31.5 36.0 Accrued and other current liabilities $ 128.1 $ 137.6 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Roker Inc. (Roker) | |
Business Acquisition [Line Items] | |
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The fair values of the assets acquired and liabilities assumed were as follows: (millions) Other intangible assets $ 2.3 Goodwill 1.0 Accounts payable ( 0.2 ) Net cash paid $ 3.1 |
Schedule of Other Assets Acquired were Recorded at their Estimated Fair Value | The other intangible assets acquired were recorded at their fair value on the acquisition date as follows: (millions) Estimated Life Fair Value Proprietary know how 8.0 Years $ 2.1 Customer relationships 5.4 Years 0.2 Fair value of identified intangible assets $ 2.3 |
KMP Associates Limited and Divrt, Inc. | |
Business Acquisition [Line Items] | |
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The fair value of the assets acquired and liabilities assumed were as follows: (millions) Cash and cash equivalents $ 0.9 Accounts receivable 0.7 Prepaid expenses and other current assets 0.1 Other intangible assets 21.7 Goodwill 16.3 ROU asset 0.1 Accounts payable ( 0.1 ) Accrued and other current liabilities ( 1.5 ) Deferred income taxes ( 2.5 ) Other long-term borrowings ( 0.3 ) Net assets acquired and liabilities assumed 35.4 Less: cash and cash equivalents acquired 0.9 Less: contingent consideration payable 4.0 Net cash paid $ 30.5 |
Schedule of Other Assets Acquired were Recorded at their Estimated Fair Value | The other intangible assets acquired were recorded at their fair value on the acquisition dates as follows: (millions) Estimated Life Fair Value Proprietary know how 7.4 Years $ 17.3 Customer relationships 5.8 Years 3.2 Trade names 13.2 Years 1.8 Covenant not to compete 4.2 Years 1.2 Estimated fair value of identified intangible assets $ 23.5 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of ROU Assets and Lease Liabilities | The components of ROU assets and lease liabilities and the classification within the Consolidated Balance Sheets as of December 31, 2023 and 2022 were as follows: (millions) Classification 2023 2022 Assets Operating Right-of-use assets $ 179.4 $ 166.9 Finance Property and equipment, net 24.6 24.4 Total leased assets $ 204.0 $ 191.3 Liabilities Current Operating Short-term lease liabilities $ 56.2 $ 60.2 Finance Current portion of long-term borrowings 7.5 7.2 Noncurrent Operating Long-term lease liabilities 158.0 158.5 Finance Long-term borrowings, excluding current portion 16.6 16.0 Total lease liabilities $ 238.3 $ 241.9 |
Schedule of Components of Lease Cost | The components of lease cost and classification within the Consolidated Statements of Income during the years ended December 31, 2023, 2022 and 2021 were as follows: (millions) Classification 2023 2022 2021 Operating lease (a)(b) Cost of services - lease type contracts $ 60.6 $ 61.6 $ 57.5 Short-term lease (a) Cost of services - lease type contracts 19.9 19.4 15.9 Variable lease Cost of services - lease type contracts 84.7 72.1 36.7 Operating lease cost 165.2 153.1 110.1 Finance lease cost Amortization of leased assets Depreciation and amortization 6.7 5.9 5.7 Interest on lease liabilities Interest expense 1.3 1.0 1.0 Lease Impairment Lease impairment — 3.7 3.6 Net lease cost $ 173.2 $ 163.7 $ 120.4 (a) Included expense related to leases for office space recorded in General and administrative expenses within the Consolidated Statements of Income of $ 3.8 million, $ 4.0 million and $ 4.1 million during the years ended December 31, 2023, 2022 and 2021, respectively. (b) Included rent concessions of $ 4.1 million, $ 6.2 million and $ 16.6 million during the years ended December 31, 2023, 2022 and 2021 , respectively. |
Schedule of Maturities of Lease Liabilities | Maturities, lease term and discount rate information of lease liabilities as of December 31, 2023 were as follows: Operating Finance (millions) Leases Leases Total 2024 $ 66.1 $ 8.7 $ 74.8 2025 53.7 6.5 60.2 2026 41.6 5.2 46.8 2027 27.8 3.1 30.9 2028 21.7 1.7 23.4 After 2028 36.0 2.0 38.0 Total lease payments 246.9 27.2 274.1 Less: Imputed interest 32.7 3.1 35.8 Present value of lease liabilities $ 214.2 $ 24.1 $ 238.3 Weighted-average remaining lease term (years) 5.1 4.0 Weighted-average discount rate 5.6 % 5.9 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases during the years ended December 31, 2023, 2022 and 2021 were as follows: (millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows related to operating leases $ 88.7 $ 91.5 $ 96.4 Operating cash outflows related to interest on finance leases 1.3 1.0 1.0 Financing cash outflows related to finance leases 7.8 9.6 7.7 Leased assets obtained in exchange for new operating lease liabilities 69.4 22.2 40.7 Leased assets obtained in exchange for new finance lease liabilities 9.0 10.1 0.4 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Remaining Performance Obligations | The Company expects to recognize the remaining performance obligations as revenue in future periods as follows: Remaining Performance (millions) Obligations 2024 $ 75.4 2025 47.4 2026 34.0 2027 21.0 2028 8.6 2029 and thereafter 12.9 Total $ 199.3 |
Schedule of Contract with Customer, Asset and Liabilities | The following table provides information about accounts receivable, contract assets and contract liabilities with customers and clients as of December 31, 2023 and 2022: (millions) 2023 2022 Accounts receivable $ 181.9 $ 169.9 Contract asset 1.2 1.8 Contract liability ( 17.5 ) ( 17.4 ) Changes in contract assets, which include the recognition of additional consideration due from the client, are offset by reclassifications of contract asset balances to accounts receivable when the Company obtains an unconditional right to consideration, thereby establishing an accounts receivable. The following table provides information about changes to contract assets during the years ended December 31, 2023 and 2022: (millions) 2023 2022 Balance, beginning of year $ 1.8 $ 2.3 Additional contract assets 1.2 1.8 Reclassification to accounts receivable ( 1.8 ) ( 2.3 ) Balance, end of year $ 1.2 $ 1.8 Changes in contract liabilities primarily include additional contract liabilities and reductions of contract liabilities when revenue is recognized. The following table provides information about changes to contract liabilities during the years ended December 31, 2023 and 2022: (millions) 2023 2022 Balance, beginning of year $ ( 17.4 ) $ ( 15.7 ) Acquisitions — ( 1.1 ) Additional contract liabilities ( 17.5 ) ( 16.4 ) Recognition of revenue from contract liabilities 17.4 15.8 Balance, end of year $ ( 17.5 ) $ ( 17.4 ) |
Schedule of Contract Cost | Cost of contracts, net, as of December 31, 2023 and 2022 was as follows: December 31, (millions) 2023 2022 Cost of contracts $ 20.9 $ 23.3 Accumulated amortization ( 18.7 ) ( 20.4 ) Cost of contracts, net $ 2.2 $ 2.9 |
Schedule of Cost of Contracts Expense | Cost of contracts expense related to service concession arrangements and certain management type contracts are recorded as a reduction of revenue. Cost of contracts expense during the years ended December 31, 2023, 2022 and 2021, which was included as a reduction to Services revenue – management type contracts within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Cost of contracts expense $ 0.9 $ 1.0 $ 1.0 Weighted average life (years) 7.4 7.1 7.0 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income per Common Share and Reconciliation of Weighted Average Shares | Basic and diluted net income per common share and a reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding during the years ending December 31, 2023, 2022 and 2021 was as follows: Year Ended December 31, (millions, except share and per share data) 2023 2022 2021 Net income attributable to SP Plus Corporation $ 31.1 $ 45.2 $ 31.7 Basic weighted average common shares outstanding 19,670,918 20,809,363 21,166,323 Dilutive impact of share-based awards 110,470 197,705 213,660 Diluted weighted average common shares outstanding 19,781,388 21,007,068 21,379,983 Net income per common share Basic $ 1.58 $ 2.17 $ 1.50 Diluted $ 1.57 $ 2.15 $ 1.48 There were no additional securities that could dilute basic earnings per share in the future that were not included in the computation of diluted net income per common share, other than those disclosed. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation Arrangements, Vested Stock Grants | Stock-based compensation expense related to vested stock grants were included in General and administrative expenses within the Consolidated Statements of Income. The Company’s vested stock grants to the Board and related expense for the years ended December 31, 2023, 2022 and 2021, was as follows: Year Ended December 31, (millions, except stock grants) 2023 2022 2021 Vested stock grants 18,660 14,635 13,420 Stock-based compensation expense $ 0.6 $ 0.4 $ 0.5 |
Summary of Nonvested Restricted Stock Units and Changes During the Period | Nonvested RSU's as of December 31, 2023, and changes during the year ended December 31, 2023 were as follows: Shares Weighted Nonvested as of December 31, 2022 338,448 $ 33.28 Granted 126,931 34.57 Vested ( 167,620 ) 35.00 Forfeited ( 6,972 ) 33.83 Nonvested as of December 31, 2023 290,787 $ 32.89 During the years ended December 31, 2022 and 2021, 188,887 and 5,615 RSU's, respectively, vested at a weighted average grant-date fair value of $ 33.88 and $ 26.71 , respectively. |
Schedule of Stock-Based Compensation Expense | The Company's stock-based compensation expense related to RSU's during the years ended December 31, 2023, 2022 and 2021, which was included in General and administrative expenses within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Stock-based compensation expense $ 5.1 $ 5.7 $ 4.6 The Company's stock-based compensation expense related to PSU’s during the years ended December 31, 2023, 2022 and 2021, which was included in General and administrative expenses within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Stock-based compensation expense $ 4.7 $ 2.9 $ 1.0 |
Summary of Unrecognized Compensation Expense Related to Share Based Payment | Unrecognized stock-based compensation expense related to RSU's and the respective weighted average periods in which the expense will be recognized as of December 31, 2023 was as follows: Year Ended December 31, (millions) 2023 Unrecognized stock-based compensation $ 5.4 Weighted average (years) 1.7 |
Summary of Nonvested PSU's and Changes During the Period | Nonvested PSU’s as of December 31, 2023, and changes during the year ended December 31, 2023 were as follows: Shares Weighted Nonvested as of December 31, 2022 177,605 $ 31.94 Granted 126,921 34.57 2021 PSU's (1) 47,730 34.97 Vested ( 95,460 ) 34.97 Forfeited ( 5,334 ) 33.48 Nonvested as of December 31, 2023 251,462 $ 32.66 (1) During the year ended December 31, 2023, the Company issued an additional 47,730 shares due to the maximum performance targets being achieved for the 2021 PSU’s. As noted above, the 2021 PSU’s vested on December 1, 2023 . |
Performance Shares | |
Summary of Unrecognized Compensation Expense Related to Share Based Payment | Unrecognized stock-based compensation expense related to PSU’s based on current projections and the respective weighted average periods in which the expense will be recognized as of December 31, 2023 was as follows: Year Ended December 31, (millions) 2023 Unrecognized stock-based compensation $ 5.1 Weighted average (years) 1.6 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment and Related Accumulated Depreciation and Amortization | Property and equipment, and the related accumulated depreciation and amortization as of December 31, 2023 and 2022, were as follows: December 31 (millions) Estimated Useful Life 2023 2022 Equipment 1 - 10 Years $ 58.9 $ 54.5 Software 3 Years 74.2 61.0 Vehicles 1 - 10 Years 40.4 39.0 Other 3 Years 1.5 1.3 Shorter of lease term or economic life up to Leasehold improvements 10 years 16.8 16.7 Construction in progress 9.1 6.9 Property and equipment, gross 200.9 179.4 Accumulated depreciation and amortization ( 132.6 ) ( 119.2 ) Property and equipment, net $ 68.3 $ 60.2 The Company's depreciation and amortization expense related to property and equipment during the years ended December 31, 2023, 2022 and 2021, which was included in Depreciation and amortization expense within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Depreciation expense and amortization $ 24.1 $ 19.8 $ 16.4 |
Other Intangible Assets, net (T
Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets, Net | The components of other intangible assets, net, as of December 31, 2023 and 2022, were as follows: December 31, 2023 2022 Weighted Average Intangible Intangible Intangible Intangible Life Assets, Accumulated Assets, Assets, Accumulated Assets, (millions) (Years) Gross Amortization Net Gross Amortization Net Management contract rights 5.6 $ 81.0 $ ( 58.0 ) $ 23.0 $ 81.0 $ ( 52.9 ) $ 28.1 Proprietary know how 6.1 24.1 ( 6.2 ) 17.9 21.7 ( 2.7 ) 19.0 Customer relationships 7.8 25.1 ( 8.9 ) 16.2 24.8 ( 6.6 ) 18.2 Trade names and trademarks 12.5 3.0 ( 1.2 ) 1.8 2.8 ( 0.7 ) 2.1 Covenant not to compete 3.7 2.9 ( 2.1 ) 0.8 2.9 ( 1.4 ) 1.5 Other intangible assets, net 6.5 $ 136.1 $ ( 76.4 ) $ 59.7 $ 133.2 $ ( 64.3 ) $ 68.9 |
Summary of Amortization of Other Intangible Assets | Amortization expense related to other intangible assets during the years ended December 31, 2023, 2022 and 2021, which was included in Depreciation and amortization within the Consolidated Statements of Income, was as follows: Year Ended December 31, (millions) 2023 2022 2021 Amortization expense $ 12.0 $ 9.9 $ 8.7 |
Schedule of Expected Future Amortization of Other Intangible Assets | The expected future amortization of other intangible assets as of December 31, 2023 was as follows: (millions) Intangible asset 2024 $ 11.6 2025 10.5 2026 10.0 2027 6.9 2028 6.6 2029 and thereafter 14.1 Total $ 59.7 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amounts of Goodwill | The changes in the carrying amounts of goodwill during the years ended December 31, 2023 and 2022 were as follows: (millions) Commercial Aviation Total Net book values as of January 1, 2022 Goodwill $ 377.1 $ 209.0 $ 586.1 Accumulated impairment losses — ( 59.5 ) ( 59.5 ) Total $ 377.1 $ 149.5 $ 526.6 Acquisitions 10.1 6.2 16.3 Foreign currency translation ( 0.2 ) 0.5 0.3 Net book value as of December 31, 2022 Goodwill $ 387.0 $ 215.7 $ 602.7 Accumulated impairment losses — ( 59.5 ) ( 59.5 ) Total $ 387.0 $ 156.2 $ 543.2 Acquisitions 1.0 — 1.0 Foreign currency translation 0.1 0.3 0.4 Net book value as of December 31, 2023 Goodwill $ 388.1 $ 216.0 $ 604.1 Accumulated impairment losses — ( 59.5 ) ( 59.5 ) Total $ 388.1 $ 156.5 $ 544.6 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Contingent Consideration | hanges to the contingent consideration during the years ended December 31, 2023 and 2022 were as follows: (millions) 2023 2022 Balance, beginning of year $ 4.1 $ — Acquisitions — 4.0 Additions 1.0 — Changes in fair value 0.4 0.1 Balance, end of year $ 5.5 $ 4.1 |
Schedule of Measurement Date, Net Book Value and Related Impairment Charges for Assets | For those assets and asset groups for which impairment was recorded, the fair value as of the measurement date, net book value as of December 31, 2022 and 2021, and the related impairment charges during the years ended December 31, 2022 and 2021, were as follows: Year ended December 31, 2022 As of As of Measurement Date (millions) Measurement Date Impairment Charge Fair Value Measurement (Level 3) Net Book Value of Assets Assessed for Impairment ROU assets December 31, 2022 $ 3.7 $ 4.7 Total of ROU assets impaired $ 3.7 $ 4.7 $ 4.7 Year ended December 31, 2021 As of As of Measurement Date (millions) Measurement Date Impairment Charge Fair Value Measurement (Level 3) Net Book Value of Assets Assessed for Impairment ROU assets March 31, 2021 $ 0.1 $ — ROU assets September 30, 2021 3.5 2.0 Total of ROU assets impaired $ 3.6 $ 2.0 $ 1.9 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Borrowings | Long-term borrowings, as of December 31, 2023 and 2022, in order of preference, were as follows: Amount Outstanding December 31, (millions) Maturity Date 2023 2022 Senior Credit Facility, net of original discount on borrowings (1) April 21, 2027 $ 328.6 $ 322.3 Other borrowings (2) Various 25.2 24.3 Deferred financing costs ( 1.7 ) ( 2.4 ) Total obligations 352.1 344.2 Less: Current portion of long-term borrowings 16.5 12.4 Long-term borrowings, excluding current portion $ 335.6 $ 331.8 (1) Included discount on borrowings of $0 .9 million and $ 1.3 million as of December 31, 2023 and 2022, respectively. (2) Included finance lease liabilities of $ 24.1 million and $ 23.2 million as of December 31, 2023 and 2022, respectively. See Note 3. Leases for further discussion. |
Schedule of Future Maturities of Debt Including Finance Leases | he future maturities of debt, including finance leases, as of December 31, 2023, were as follows: (millions) 2024 $ 17.4 2025 15.7 2026 14.7 2027 303.6 2028 1.6 Thereafter 1.8 Total $ 354.8 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Summary of Share Repurchase Activity and Remaining Authorized Repurchase Amounts | Stock repurchase activity under the May 2022 stock repurchase program for the years ended December 31, 2023 and 2022 was as follows: (millions, except for share and per share data) December 31, 2023 December 31, 2022 Total number of shares repurchased 285,700 1,474,300 Average price paid per share $ 36.53 $ 33.47 Total value of common stock repurchased $ 10.4 $ 49.4 The remaining authorized repurchase amount under the May 2022 and February 2023 stock repurchase programs as of December 31, 2023 was as follows: (millions) December 31, 2023 Total authorized repurchase amount $ 120.0 Total value of shares repurchased 59.8 Total remaining authorized repurchase amount $ 60.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Earnings (Loss) Before Income Taxes | Earnings before income taxes during the years ended December 31, 2023, 2022 and 2021, was as follows: Year Ended December 31, (millions) 2023 2022 2021 United States $ 47.8 $ 65.1 $ 44.8 Foreign 0.9 0.5 1.0 Total $ 48.7 $ 65.6 $ 45.8 |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) during the years ended December 31, 2023, 2022 and 2021 were as follows: Year Ended December 31, (millions) 2023 2022 2021 Current U.S. Federal $ 8.2 $ 6.9 $ ( 3.2 ) Foreign 0.8 0.3 0.2 State 3.6 2.7 1.0 Total current 12.6 9.9 ( 2.0 ) Deferred U.S. Federal 1.3 5.1 9.7 Foreign ( 0.5 ) — 0.1 State 0.6 2.5 2.7 Total deferred 1.4 7.6 12.5 Income tax expense $ 14.0 $ 17.5 $ 10.5 |
Schedule of Components of Company's Deferred Tax Assets and Liabilities | omponents of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows: December 31, (millions) 2023 2022 Deferred income tax assets NOL carry forwards and tax credits $ 17.7 $ 20.2 Lease liabilities 57.8 59.0 Accrued expenses 16.7 15.7 Accrued compensation 10.3 10.2 Depreciation 27.6 27.6 Other 4.8 0.2 Total deferred income tax assets 134.9 132.9 Valuation allowances ( 6.8 ) ( 9.0 ) Net deferred income tax assets 128.1 123.9 Deferred income tax liabilities ROU assets ( 47.3 ) ( 43.9 ) Depreciation and amortization ( 12.9 ) ( 13.5 ) Goodwill ( 22.3 ) ( 19.3 ) Equity investments in unconsolidated entities ( 4.7 ) ( 5.1 ) Other ( 0.4 ) ( 0.3 ) Total deferred income tax liabilities ( 87.6 ) ( 82.1 ) Total net deferred income tax asset $ 40.5 $ 41.8 Amounts per Consolidated Balance Sheets Deferred income tax assets 42.8 44.4 Deferred income tax liabilities (included in Other noncurrent liabilities) ( 2.3 ) ( 2.6 ) Total net deferred income tax asset $ 40.5 $ 41.8 |
Schedule of Changes Affecting the Valuation Allowances on Deferred Tax Assets | Changes affecting the valuation allowances on deferred tax assets during the years ended December 31, 2023, 2022 and 2021, were as follows: December 31, (millions) 2023 2022 2021 Beginning Balance $ 9.0 $ 10.9 $ 10.7 Current year (benefit) expense ( 2.2 ) ( 1.9 ) 0.2 Ending Balance $ 6.8 $ 9.0 $ 10.9 |
Schedule of Reconciliation of Differences Between the U.S. Federal Statutory Income Tax Rate and Effective Income Tax Rate | A reconciliation of differences between the U.S. Federal statutory income tax rate and the Company's effective income tax rate during the years ended December 31, 2023, 2022 and 2021, was as follows: Year Ended December 31, (percentages) 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % Permanent differences 4.8 % 1.3 % 1.4 % State and local income taxes, net of federal benefit 11.6 % 10.0 % 6.8 % Foreign taxes 0.7 % 0.4 % 0.5 % Federal NOL carryback rate differential — — ( 4.4 )% Noncontrolling interest ( 1.6 )% ( 0.9 )% ( 1.7 )% Recognition of tax credits ( 3.3 )% ( 2.2 )% ( 1.0 )% 33.2 % 29.6 % 22.6 % Change in valuation allowance ( 4.5 )% ( 2.9 )% 0.3 % Effective tax rate 28.7 % 26.7 % 22.9 % |
Schedule of Tax Years that Remain Subject to Examination for the Company's Major Tax Jurisdictions | The tax years that remain subject to examination for the Company's major tax jurisdictions as of December 31, 2023 and 2022 were as follows: 2020 - 2023 United States - federal income tax 2019 - 2023 United States - state and local income tax 2019 - 2023 Foreign - Canada and Puerto Rico |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Participation in Multiemployer Defined Benefit Pension Plans | Zone Status Pension Protection as of the Expiration EIN/ Zone Status Contributions (millions) Most Date of Pension FIP/FR Recent Collective Plan Pending Surcharge Annual Bargaining Pension Number 2023 2022 2021 Implementation 2023 2022 2021 Imposed Report Agreement Teamsters Local 36-61023973 Green Green Green N/A $ 3.7 $ 3.5 $ 2.9 No 2023 10/31/2026 Local 272 Labor 13-5673836 Green Green Green N/A $ 0.9 $ 0.9 $ 0.9 No 2023 8/15/2026 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Components of Other Comprehensive Income and Income Tax Benefit Allocated | The components of other comprehensive income and the income tax benefit allocated to each component during the years ended December 31, 2023, 2022 and 2021, were as follows: 2023 2022 2021 (millions) Before Tax Amount Income Tax Net of Tax Amount Before Tax Amount Income Tax Net of Tax Amount Before Tax Amount Income Tax Net of Tax Amount Translation adjustments $ 0.5 $ — $ 0.5 $ 0.5 $ — $ 0.5 $ ( 0.1 ) $ — $ ( 0.1 ) De-designation of interest rate collars — — — 0.7 0.2 0.5 2.3 0.6 1.7 Other Comprehensive income $ 0.5 $ — $ 0.5 $ 1.2 $ 0.2 $ 1.0 $ 2.2 $ 0.6 $ 1.6 |
Components of Accumulated Other Comprehensive Loss | The changes to accumulated other comprehensive loss by component during the years ended December 31, 2023, 2022 and 2021, were as follows: Total Foreign Accumulated Currency Other Translation Interest Rate Comprehensive (millions) Adjustments Collars Loss Balance as of January 1, 2021 $ ( 2.2 ) $ ( 2.2 ) $ ( 4.4 ) Other comprehensive loss before reclassification ( 0.1 ) — ( 0.1 ) Amounts reclassified from accumulated other comprehensive loss — 1.7 1.7 Balance as of December 31, 2021 ( 2.3 ) ( 0.5 ) ( 2.8 ) Other comprehensive income before reclassification 0.5 — 0.5 Amounts reclassified from accumulated other comprehensive loss — 0.5 0.5 Balance as of December 31, 2022 ( 1.8 ) — ( 1.8 ) Other comprehensive income before reclassification 0.5 — 0.5 Balance as of December 31, 2023 $ ( 1.3 ) $ — $ ( 1.3 ) |
Reclassification from Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss during the years ended December 31, 2023, 2022 and 2021, were as follows: (millions) 2023 2022 2021 Classification in the Consolidated Statements of Income Interest Rate Collars: Net realized loss $ — $ 0.7 $ 2.3 Other expenses Reclassifications before tax — 0.7 2.3 Income tax benefit — 0.2 0.6 Reclassifications, net of tax $ — $ 0.5 $ 1.7 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information by Regions | Revenue, operating income (loss), general and administrative expenses and depreciation and amortization by operating segment during the years ended December 31, 2023, 2022 and 2021 were as follows: Year Ended December 31, (millions) 2023 2022 2021 Services revenue Commercial Management type contracts $ 307.7 $ 276.8 $ 232.5 Lease type contracts 277.8 261.7 206.5 Total Commercial 585.5 538.5 439.0 Aviation Management type contracts 282.3 241.9 153.4 Lease type contracts 15.4 14.0 9.1 Total Aviation 297.7 255.9 162.5 Reimbursed management type contract revenue 899.1 759.1 575.7 Total services revenue $ 1,782.3 $ 1,553.5 $ 1,177.2 Operating income (loss) Commercial $ 135.0 $ 122.0 $ 101.3 Aviation 37.9 33.5 21.8 Other ( 95.4 ) ( 72.6 ) ( 56.6 ) Total operating income $ 77.5 $ 82.9 $ 66.5 General and administrative expenses Commercial $ 36.6 $ 29.3 $ 23.0 Aviation 17.2 12.6 11.8 Other 86.6 67.2 53.4 Total general and administrative expenses $ 140.4 $ 109.1 $ 88.2 Depreciation and amortization Commercial (1) $ 15.1 $ 13.1 $ 13.5 Aviation (2) 12.2 11.2 8.4 Other 8.8 5.4 3.2 Total depreciation and amortization $ 36.1 $ 29.7 $ 25.1 (1) Included depreciation and amortization expenses related to cost of services activities of $ 8.3 million, $ 7.9 million and $ 7.9 million during the years ended December 31, 2023, 2022 and 2021, respectively. (2) Included depreciation and amortization expenses related to cost of services activities of $ 6.1 million, $ 5.8 million and $ 4.6 million during the years ended December 31, 2023, 2022 and 2021 , respectively. |
Significant Accounting Polici_4
Significant Accounting Policies and Practices - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Oct. 04, 2023 USD ($) $ / shares | Dec. 31, 2023 USD ($) Partnership Variable_interest_entity Voting_interest_model_entity | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Significant Accounting Policies and Practices | ||||
Assets related to consolidated VIEs | $ 1,151.9 | $ 1,121.4 | ||
Liabilities related to consolidated VIEs | 901.2 | 895.7 | ||
Restricted cash and cash equivalents | 0.2 | 0.6 | ||
Book overdrafts | 31 | 30.9 | ||
Insurance reserve for general, garage, automobile and workers’ compensation liabilities | $ 50.3 | 48.4 | ||
Number of ownership interest entities | Partnership | 26 | |||
Investments under the equity method of accounting | $ 12.2 | 11.9 | ||
Equity earnings in related investments | 2.6 | 4.6 | $ 1.4 | |
Impairment of long-lived assets | 0 | |||
Contingent cosideration liability | 1 | |||
Deferred tax assets | 40.5 | 41.8 | ||
Payment to former minority partner | $ 2.4 | |||
Former minority partner payments term | 10 years | |||
Additional payment to former minority partner | $ 4.5 | |||
Minority partner payment included in accrued and other current liabilities | 2.4 | |||
Liability for payment of minority partner | 1.7 | 4 | ||
Accrued and Other Current Liabilities | ||||
Significant Accounting Policies and Practices | ||||
Insurance reserve for general, garage, automobile and workers’ compensation liabilities | 24.9 | 24 | ||
Liability for payment of minority partner | 0.4 | 2.4 | ||
Other Noncurrent Liabilities | ||||
Significant Accounting Policies and Practices | ||||
Insurance reserve for general, garage, automobile and workers’ compensation liabilities | 25.4 | 24.4 | ||
Liability for payment of minority partner | 1.3 | 1.6 | ||
Additional Paid-In Capital | ||||
Significant Accounting Policies and Practices | ||||
Probability weighting of potential payouts | 1 | |||
Deferred tax assets | $ 0.3 | |||
Minimum | Unconsolidated Entities | ||||
Significant Accounting Policies and Practices | ||||
Ownership interests percentage | 30% | |||
Maximum | Unconsolidated Entities | ||||
Significant Accounting Policies and Practices | ||||
Ownership interests percentage | 50% | |||
Equipment | Minimum | ||||
Significant Accounting Policies and Practices | ||||
Ranges of estimated useful life | 1 year | |||
Equipment | Maximum | ||||
Significant Accounting Policies and Practices | ||||
Ranges of estimated useful life | 10 years | |||
Internal-use Software | ||||
Significant Accounting Policies and Practices | ||||
Ranges of estimated useful life | 3 years | |||
Merger Agreement [Member] | Metropolis Technologies, Inc. [Member] | ||||
Significant Accounting Policies and Practices | ||||
Total enterprise value | $ 1,500 | |||
Acquistion price of outstanding common stock | $ / shares | $ 54 | |||
Proposed merger related expenses paid | $ 9.7 | |||
Primary Beneficiary | ||||
Significant Accounting Policies and Practices | ||||
Assets related to consolidated VIEs | 51.4 | 57.1 | ||
Liabilities related to consolidated VIEs | $ 43.5 | $ 50.9 | ||
Number of ownership interest entities | Variable_interest_entity | 20 | |||
Not Primary Beneficiary | ||||
Significant Accounting Policies and Practices | ||||
Number of ownership interest entities | Voting_interest_model_entity | 6 |
Significant Accounting Polici_5
Significant Accounting Policies and Practices - Schedule of Transactions Affecting Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Beginning Balance | $ 4 | $ 3.5 | $ 5.1 |
Provision for credit losses | 1.7 | 0.5 | 0.8 |
Write offs and other | (3.1) | (2.4) | |
Ending Balance | $ 2.6 | $ 4 | $ 3.5 |
Significant Accounting Polici_6
Significant Accounting Policies and Practices - Components of Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued And Other Current Liabilities [Abstract] | |||
Accrued rent | $ 20.1 | $ 21.4 | |
Compensation and payroll withholdings | 26.2 | 29.2 | |
Property, payroll and other taxes | 5.1 | 7.8 | |
Accrued insurance | 24.9 | 24 | |
Contract liabilities | 17.5 | 17.4 | $ 15.7 |
Contingent Consideration | 2.8 | 1.8 | |
Accrued expenses | 31.5 | 36 | |
Accrued and other current liabilities | $ 128.1 | $ 137.6 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Jul. 25, 2023 | Nov. 10, 2022 | Oct. 11, 2022 | Apr. 18, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||||||
Cash and cash equivalents | $ 0.9 | |||||||
Business Combination, Cash Aquired | 3.1 | $ 30.5 | $ 0 | |||||
Services revenue | 1,782.3 | 1,553.5 | $ 1,177.2 | |||||
Scenario Forecast | ||||||||
Business Acquisition [Line Items] | ||||||||
Milestone payment | $ 2.8 | |||||||
Other Intangible Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired other intangible assets at purchasing price | $ 1.8 | |||||||
Roker Inc. (Roker) | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, date of acquisition | Jul. 25, 2023 | |||||||
Business Combination, Cash Aquired | $ 3.1 | |||||||
Business acquisition, goodwill, expected tax deductible amount | 1 | |||||||
Acquired other intangible assets at purchasing price | 2.3 | |||||||
Roker Inc. (Roker) | Other Intangible Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired other intangible assets at purchasing price | 2.3 | |||||||
Services revenue | 0.2 | |||||||
Loss before income taxes | 0.4 | |||||||
Acquisition related costs | 0.2 | |||||||
KMP Associates Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, date of acquisition | Oct. 11, 2022 | |||||||
Business acquisition, consideration transferred | $ 13.8 | |||||||
Business combination, assumption of debt | 0.3 | |||||||
Business Combination, Cash Aquired | $ 0.9 | |||||||
Divrt, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, date of acquisition | Nov. 10, 2022 | |||||||
Business acquisition, consideration transferred | $ 17.6 | |||||||
Maximum amount of contingent consideration to former owner | 7 | |||||||
Accrued in projected contingent consideration | $ 4 | |||||||
KMP Associates Limited and Divrt, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash and cash equivalents | 0.9 | |||||||
Acquired other intangible assets at purchasing price | 23.5 | 23.5 | ||||||
KMP Associates Limited and Divrt, Inc. | Other Intangible Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Services revenue | 6.3 | |||||||
Loss before income taxes | $ 4 | |||||||
Acquisition related costs | $ 2.6 |
Acquisitions - Schedule of Esti
Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 0.9 | ||
Goodwill | 544.6 | $ 543.2 | $ 526.6 |
Less: cash and cash equivalents acquired | 0.9 | ||
Roker Inc. (Roker) | |||
Business Acquisition [Line Items] | |||
Other intangible assets | 2.3 | ||
Goodwill | 1 | ||
Accounts payable | (0.2) | ||
Net cash paid | 3.1 | ||
KMP Associates Limited and Divrt, Inc. | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 0.9 | ||
Accounts receivable | 0.7 | ||
Prepaid expenses and other current assets | 0.1 | ||
Other intangible assets | 21.7 | ||
Goodwill | 16.3 | ||
ROU asset | 0.1 | ||
Accounts payable | (0.1) | ||
Accrued and other current liabilities | (1.5) | ||
Deferred tax liability | (2.5) | ||
Other long-term borrowings | (0.3) | ||
Net assets acquired and liabilities assumed | 35.4 | ||
Less: cash and cash equivalents acquired | 0.9 | ||
Less: contingent consideration payable | 4 | ||
Net cash paid | $ 30.5 |
Acquisitions - Schedule of Othe
Acquisitions - Schedule of Other Assets Acquired were Recorded at their Estimated Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Estimated Life | 6 years 6 months | |
Proprietary Know How | ||
Business Acquisition [Line Items] | ||
Estimated Life | 6 years 1 month 6 days | |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Estimated Life | 7 years 9 months 18 days | |
Covenant Not to Compete | ||
Business Acquisition [Line Items] | ||
Estimated Life | 3 years 8 months 12 days | |
Roker Inc. (Roker) | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 2.3 | |
Roker Inc. (Roker) | Proprietary Know How | ||
Business Acquisition [Line Items] | ||
Estimated Life | 8 years | |
Estimated Fair Value | $ 2.1 | |
Roker Inc. (Roker) | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Estimated Life | 5 years 4 months 24 days | |
Estimated Fair Value | $ 0.2 | |
KMP Associates Limited and Divrt, Inc. | ||
Business Acquisition [Line Items] | ||
Estimated Fair Value | $ 23.5 | $ 23.5 |
KMP Associates Limited and Divrt, Inc. | Proprietary Know How | ||
Business Acquisition [Line Items] | ||
Estimated Life | 7 years 4 months 24 days | |
Estimated Fair Value | $ 17.3 | |
KMP Associates Limited and Divrt, Inc. | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Estimated Life | 5 years 9 months 18 days | |
Estimated Fair Value | $ 3.2 | |
KMP Associates Limited and Divrt, Inc. | Trade Names | ||
Business Acquisition [Line Items] | ||
Estimated Life | 13 years 2 months 12 days | |
Estimated Fair Value | $ 1.8 | |
KMP Associates Limited and Divrt, Inc. | Covenant Not to Compete | ||
Business Acquisition [Line Items] | ||
Estimated Life | 4 years 2 months 12 days | |
Estimated Fair Value | $ 1.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessor, Lease, Description [Line Items] | |||
Right-of-use assets | $ 179.4 | $ 166.9 | |
Lease impairment | 3.7 | $ 3.6 | |
Rent concessions cares act | 4.1 | 6.2 | 16.6 |
Sublease income | $ 2.1 | 1.4 | 1.4 |
Lease Impairment | |||
Lessor, Lease, Description [Line Items] | |||
Lease impairment | 3.7 | 3.6 | |
Commercial | |||
Lessor, Lease, Description [Line Items] | |||
Lease impairment | 3.7 | 3.5 | |
Aviation | |||
Lessor, Lease, Description [Line Items] | |||
Lease impairment | $ 0.1 | ||
Level 3 | |||
Lessor, Lease, Description [Line Items] | |||
Right-of-use assets | 8.4 | ||
Right-of-use asset, fair value | $ 4.7 |
Leases - Schedule of Components
Leases - Schedule of Components of ROU Assets and Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Right-of-use assets | $ 179.4 | $ 166.9 |
Leasehold improvements, equipment and construction in progress, net | $ 24.6 | $ 24.4 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Total leased assets | $ 204 | $ 191.3 |
Current | ||
Short-term lease liabilities | 56.2 | 60.2 |
Current portion of long-term borrowings | $ 7.5 | $ 7.2 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term borrowings | Current portion of long-term borrowings |
Noncurrent | ||
Long-term lease liabilities | $ 158 | $ 158.5 |
Long-term borrowings, excluding current portion | $ 16.6 | $ 16 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term borrowings, excluding current portion | Long-term borrowings, excluding current portion |
Total lease liabilities | $ 238.3 | $ 241.9 |
Leases - Schedule of Componen_2
Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessor, Lease, Description [Line Items] | |||
Operating lease cost | $ 60.6 | $ 61.6 | $ 57.5 |
Short-term lease | 19.9 | 19.4 | 15.9 |
Variable lease | 84.7 | 72.1 | 36.7 |
Operating lease cost | 165.2 | 153.1 | 110.1 |
Amortization of leased assets | 6.7 | 5.9 | 5.7 |
Interest on lease liabilities | 1.3 | 1 | 1 |
Lease impairment | 3.7 | 3.6 | |
Net lease cost | $ 173.2 | $ 163.7 | $ 120.4 |
Leases - Schedule of Componen_3
Leases - Schedule of Components of Lease Cost (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessor, Lease, Description [Line Items] | |||
Operating lease cost | $ 60.6 | $ 61.6 | $ 57.5 |
Rent concessions cares act | 4.1 | 6.2 | 16.6 |
Office Space | |||
Lessor, Lease, Description [Line Items] | |||
Operating lease cost | $ 3.8 | $ 4 | $ 4.1 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 66.1 | |
2025 | 53.7 | |
2026 | 41.6 | |
2027 | 27.8 | |
2028 | 21.7 | |
After 2028 | 36 | |
Total lease payments | 246.9 | |
Less: Imputed interest | 32.7 | |
Present value of lease liabilities | $ 214.2 | |
Weighted-average remaining lease term (years) | 5 years 1 month 6 days | |
Weighted-average discount rate | 5.60% | |
Finance Leases | ||
2024 | $ 8.7 | |
2025 | 6.5 | |
2026 | 5.2 | |
2027 | 3.1 | |
2028 | 1.7 | |
After 2028 | 2 | |
Total lease payments | 27.2 | |
Less: Imputed interest | 3.1 | |
Present value of lease liabilities | $ 24.1 | $ 23.2 |
Weighted-average remaining lease term (years) | 4 years | |
Weighted-average discount rate | 5.90% | |
Total | ||
2024 | $ 74.8 | |
2025 | 60.2 | |
2026 | 46.8 | |
2027 | 30.9 | |
2028 | 23.4 | |
After 2028 | 38 | |
Total lease payments | 274.1 | |
Less: Imputed interest | 35.8 | |
Present value of lease liabilities | $ 238.3 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash outflows related to operating leases | $ 88.7 | $ 91.5 | $ 96.4 |
Operating cash outflows related to interest on finance leases | 1.3 | 1 | 1 |
Financing cash outflows related to finance leases | 7.8 | 9.6 | 7.7 |
Leased assets obtained in exchange for new operating lease liabilities | 69.4 | 22.2 | 40.7 |
Leased assets obtained in exchange for new finance lease liabilities | $ 9 | $ 10.1 | $ 0.4 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Negotiable cost reductions cares act | $ 11,100,000 | $ 12,000,000 | $ 24,400,000 |
Performance obligation unsatisfied or partially satisfied | 199,300,000 | ||
Impairment charges | $ 0 | $ 0 | $ 0 |
Revenue - Schedule of Performan
Revenue - Schedule of Performance Obligations (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 199.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 75.4 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 47.4 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 34 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 21 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 8.6 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 12.9 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Revenue - Schedule of Perform_2
Revenue - Schedule of Performance Obligations (Details 1) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 199.3 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Asset and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable | $ 181.9 | $ 169.9 | |
Contract asset | 1.2 | 1.8 | $ 2.3 |
Contract liability | $ (17.5) | $ (17.4) | $ (15.7) |
Revenue - Schedule of Contrac_2
Revenue - Schedule of Contract Asset Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract Asset Balances with Customer | ||
Balance, beginning of year | $ 1.8 | $ 2.3 |
Additional contract assets | 1.2 | 1.8 |
Reclassification to accounts receivable | (1.8) | (2.3) |
Balance, end of year | $ 1.2 | $ 1.8 |
Revenue - Schedule of Contrac_3
Revenue - Schedule of Contract Liabilities Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract Liability Balances with Customer | ||
Balance, beginning of year | $ (17.4) | $ (15.7) |
Acquisitions | (1.1) | |
Additional contract liabilities | (17.5) | (16.4) |
Recognition of revenue from contract liabilities | 17.4 | 15.8 |
Balance, end of year | $ (17.5) | $ (17.4) |
Revenue - Summary of Cost of Co
Revenue - Summary of Cost of Contracts (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Cost of contracts | $ 20.9 | $ 23.3 |
Accumulated amortization | (18.7) | (20.4) |
Cost of contracts, net | $ 2.2 | $ 2.9 |
Revenue - Schedule of Cost of C
Revenue - Schedule of Cost of Contracts Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Cost of contracts expense | $ 0.9 | $ 1 | $ 1 |
Weighted average life (years) | 7 years 4 months 24 days | 7 years 1 month 6 days | 7 years |
Net Income per Common Share - B
Net Income per Common Share - Basic and Diluted Net Income per Common Share and Weighted Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income attributable to SP Plus Corporation | $ 31.1 | $ 45.2 | $ 31.7 |
Basic weighted average common shares outstanding | 19,670,918 | 20,809,363 | 21,166,323 |
Dilutive impact of share-based awards | 110,470 | 197,705 | 213,660 |
Diluted weighted average common shares outstanding | 19,781,388 | 21,007,068 | 21,379,983 |
Net income per common share | |||
Basic | $ 1.58 | $ 2.17 | $ 1.50 |
Diluted | $ 1.57 | $ 2.15 | $ 1.48 |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Potential shares of common stock attributable to stock options excluded from net income per common share calculation (in shares) | 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Mar. 30, 2021 | |
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted awards (in shares) | 126,931 | ||||
Grants in period, weighted average grant date fair value | $ 34.57 | ||||
Vested in period, weighted average grant date fair value | $ 35 | $ 33.88 | $ 26.71 | ||
Vested awards (in shares) | 167,620 | 188,887 | 5,615 | ||
Unrecognized compensation costs related to unvested options | $ 5.4 | ||||
Recognized stock-based compensation expense | $ 5.1 | $ 5.7 | $ 4.6 | ||
Restricted Stock Units | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted awards (in shares) | 126,931 | 1,057 | 160,843 | ||
Vesting period | 3 years | 1 year | 2 years | ||
Grants in period, weighted average grant date fair value | $ 31.82 | $ 34.45 | |||
Restricted Stock Units | Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted awards (in shares) | 126,931 | 187,574 | 152,659 | ||
Vesting period | 3 years | 3 years | 3 years | ||
Grants in period, weighted average grant date fair value | $ 31.82 | $ 34.45 | |||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares of common stock available for awards (in shares) | 253,842 | 258,114 | |||
Maximum number of payout shares of common stock available for awards (in shares) | 129,459 | 196,167 | |||
Granted awards (in shares) | 126,921 | 132,304 | 50,868 | ||
Grants in period, weighted average grant date fair value | $ 34.57 | $ 30.8 | $ 34.97 | ||
Vested in period, weighted average grant date fair value | $ 34.97 | ||||
Vested awards (in shares) | 95,460 | ||||
Unrecognized compensation costs related to unvested options | $ 5.1 | ||||
Recognized stock-based compensation expense | 4.7 | $ 2.9 | $ 1 | ||
Expired (in shares) | (80,979) | (112,328) | |||
Expired weighted average grant-date fair value | $ 37.89 | $ 33.28 | |||
Performance Shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation costs related to unvested options | $ 4.2 | $ 1.9 | |||
Long-term incentive plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares of common stock available for awards (in shares) | 4,775,000 | 3,775,000 | |||
Shares remaining available for grant (in shares) | 832,273 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Vested Stock Grants (Details) - Directors - Stock Options - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested stock grants | 18,660 | 14,635 | 13,420 |
Stock-based compensation expense | $ 0.6 | $ 0.4 | $ 0.5 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted and Performance Stock Units Rollforward (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units | |||
Shares | |||
Nonvested at the beginning of the period (in shares) | 338,448 | ||
Granted (in shares) | 126,931 | ||
Vested (in shares) | (167,620) | (188,887) | (5,615) |
Forfeited (in shares) | (6,972) | ||
Nonvested at the end of the period (in shares) | 290,787 | 338,448 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 33.28 | ||
Grants in period, weighted average grant date fair value | 34.57 | ||
Vested (in dollars per share) | 35 | $ 33.88 | $ 26.71 |
Forfeited (in dollars per share) | 33.83 | ||
Nonvested at the end of the period (in dollars per share) | $ 32.89 | $ 33.28 | |
Performance Shares | |||
Shares | |||
Nonvested at the beginning of the period (in shares) | 177,605 | ||
Granted (in shares) | 126,921 | 132,304 | 50,868 |
Vested (in shares) | (95,460) | ||
Forfeited (in shares) | (5,334) | ||
Expired (in shares) | (80,979) | (112,328) | |
Nonvested at the end of the period (in shares) | 251,462 | 177,605 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 31.94 | ||
Grants in period, weighted average grant date fair value | 34.57 | $ 30.8 | $ 34.97 |
Vested (in dollars per share) | 34.97 | ||
Forfeited (in dollars per share) | 33.48 | ||
Nonvested at the end of the period (in dollars per share) | $ 32.66 | $ 31.94 | |
2021 Performance Share Unit | |||
Shares | |||
Granted (in shares) | 47,730 | ||
Weighted Average Grant-Date Fair Value | |||
Grants in period, weighted average grant date fair value | $ 34.97 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted and Performance Stock Units Rollforward (Parenthetical) (Details) - Performance Shares [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unrecognized compensation costs related to unvested options | $ | $ 5.1 |
Issued an additional maximum performance targets | shares | 47,730 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 5.1 | $ 5.7 | $ 4.6 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4.7 | $ 2.9 | $ 1 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Unrecognized Compensation Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation | $ 5.4 |
Weighted average (years) | 1 year 8 months 12 days |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation | $ 5.1 |
Weighted average (years) | 1 year 7 months 6 days |
Property and Equipment, net - S
Property and Equipment, net - Summary of Property and Equipment and Related Accumulated Depreciation and Amortization (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Property and equipment, gross | $ 200.9 | $ 179.4 |
Accumulated depreciation and amortization | (132.6) | (119.2) |
Property and equipment, net | 68.3 | 60.2 |
Equipment | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Property and equipment, gross | $ 58.9 | 54.5 |
Equipment | Minimum | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Ranges of estimated useful life | 1 year | |
Equipment | Maximum | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Ranges of estimated useful life | 10 years | |
Software | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Property and equipment, gross | $ 74.2 | 61 |
Software | Minimum | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Ranges of estimated useful life | 3 years | |
Vehicles | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Property and equipment, gross | $ 40.4 | 39 |
Vehicles | Minimum | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Ranges of estimated useful life | 1 year | |
Vehicles | Maximum | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Ranges of estimated useful life | 10 years | |
Other | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Property and equipment, gross | $ 1.5 | 1.3 |
Ranges of estimated useful life | 3 years | |
Leasehold improvements | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Property and equipment, gross | $ 16.8 | 16.7 |
Leasehold improvements | Maximum | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Ranges of estimated useful life | 10 years | |
Construction in progress | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Property and equipment, gross | $ 9.1 | $ 6.9 |
Property and Equipment, net -_2
Property and Equipment, net - Schedule of Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense and amortization | $ 36.1 | $ 29.7 | $ 25.1 |
Leasehold Improvements and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Depreciation expense and amortization | $ 24.1 | $ 19.8 | $ 16.4 |
Other Intangible Assets, net -
Other Intangible Assets, net - Components of Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 6 years 6 months | |
Intangible Assets, Gross | $ 136.1 | $ 133.2 |
Accumulated Amortization | (76.4) | (64.3) |
Intangible Assets, Net | $ 59.7 | 68.9 |
Management Contract Rights | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 5 years 7 months 6 days | |
Intangible Assets, Gross | $ 81 | 81 |
Accumulated Amortization | (58) | (52.9) |
Intangible Assets, Net | $ 23 | 28.1 |
Proprietary Know How | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 6 years 1 month 6 days | |
Intangible Assets, Gross | $ 24.1 | 21.7 |
Accumulated Amortization | (6.2) | (2.7) |
Intangible Assets, Net | $ 17.9 | 19 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 7 years 9 months 18 days | |
Intangible Assets, Gross | $ 25.1 | 24.8 |
Accumulated Amortization | (8.9) | (6.6) |
Intangible Assets, Net | $ 16.2 | 18.2 |
Trade Names and Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 12 years 6 months | |
Intangible Assets, Gross | $ 3 | 2.8 |
Accumulated Amortization | (1.2) | (0.7) |
Intangible Assets, Net | $ 1.8 | 2.1 |
Covenant Not to Compete | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 3 years 8 months 12 days | |
Intangible Assets, Gross | $ 2.9 | 2.9 |
Accumulated Amortization | (2.1) | (1.4) |
Intangible Assets, Net | $ 0.8 | $ 1.5 |
Other Intangible Assets, net _2
Other Intangible Assets, net - Summary of Amortization of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 12 | $ 9.9 | $ 8.7 |
Other Intangible Assets, net _3
Other Intangible Assets, net - Schedule of Future Amortization (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Expected future amortization of other intangible assets | ||
2024 | $ 11.6 | |
2025 | 10.5 | |
2026 | 10 | |
2027 | 6.9 | |
2028 | 6.6 | |
2029 and thereafter | 14.1 | |
Intangible Assets, Net | $ 59.7 | $ 68.9 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | |||
Goodwill | $ 604.1 | $ 602.7 | $ 586.1 |
Accumulated impairment losses | (59.5) | (59.5) | (59.5) |
Total | 544.6 | 543.2 | 526.6 |
Acquisitions | 1 | 16.3 | |
Foreign currency translation | 0.4 | 0.3 | |
Commercial | |||
Goodwill [Line Items] | |||
Goodwill | 388.1 | 387 | 377.1 |
Total | 388.1 | 387 | 377.1 |
Acquisitions | 1 | 10.1 | |
Foreign currency translation | 0.1 | (0.2) | |
Aviation | |||
Goodwill [Line Items] | |||
Goodwill | 216 | 215.7 | 209 |
Accumulated impairment losses | (59.5) | (59.5) | (59.5) |
Total | 156.5 | 156.2 | $ 149.5 |
Acquisitions | 6.2 | ||
Foreign currency translation | $ 0.3 | $ 0.5 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Contingent Consideration (Details) - Contingent Consideration - Fair Value, Recurring - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of year | $ 4.1 | |
Acquisitions | $ 4 | |
Additions | 1 | |
Changes in fair value | 0.4 | 0.1 |
Balance, end of year | $ 5.5 | $ 4.1 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Measurement Date, Net Book Value and Related Impairment Charges for Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total of ROU assets impaired | $ 3,700,000 | $ 3,600,000 | |
Total ROU assets, net book value assets assessed for impairment | $ 179,400,000 | 166,900,000 | |
Goodwill, net book value assets assessed for impairment | 544,600,000 | 543,200,000 | 526,600,000 |
Other intangible assets, net book value | 59,700,000 | 68,900,000 | |
Aviation | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total of ROU assets impaired | 100,000 | ||
Goodwill, net book value assets assessed for impairment | 156,500,000 | 156,200,000 | 149,500,000 |
Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total ROU assets, net book value assets assessed for impairment | 8,400,000 | ||
Fair Value, Nonrecurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total of ROU assets impaired | $ 0 | 3,700,000 | 3,600,000 |
Total ROU assets, net book value assets assessed for impairment | 4,700,000 | 1,900,000 | |
Fair Value, Nonrecurring | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total of ROU assets impaired | $ 4,700,000 | $ 2,000,000 | |
Fair Value, Nonrecurring | ROU Assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Measurement Date | Dec. 31, 2022 | Mar. 31, 2021 | |
Total of ROU assets impaired | $ 3,700,000 | $ 100,000 | |
Fair Value, Nonrecurring | ROU Assets | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total of ROU assets impaired | $ 4,700,000 | ||
Fair Value, Nonrecurring | ROU Assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Measurement Date | Sep. 30, 2021 | ||
Total of ROU assets impaired | $ 3,500,000 | ||
Fair Value, Nonrecurring | ROU Assets | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total of ROU assets impaired | $ 2,000,000 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charges | $ 3,700,000 | $ 3,600,000 | |
Fair Value, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charges | $ 0 | $ 3,700,000 | $ 3,600,000 |
Borrowing Arrangements - Schedu
Borrowing Arrangements - Schedule of Long-Term Borrowing (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Other borrowings | $ 25.2 | $ 24.3 |
Deferred financing costs | $ (1.7) | (2.4) |
Other borrowings, Maturity Date | Various | |
Total obligations under Senior Credit Facility and other borrowings | $ 352.1 | 344.2 |
Less: Current portion of long-term borrowings | 16.5 | 12.4 |
Long-term borrowings, excluding current portion | 335.6 | 331.8 |
Senior Credit Facility, Net of Original Discount on Borrowings | ||
Debt Instrument [Line Items] | ||
Total obligations under Senior Credit Facility and other borrowings | $ 328.6 | $ 322.3 |
Maturity Date | Apr. 21, 2027 |
Borrowing Arrangements - Sche_2
Borrowing Arrangements - Schedule of Long-Term Borrowing (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Discount on borrowings | $ 0.9 | $ 1.3 |
Finance lease, liability | $ 24.1 | $ 23.2 |
Borrowing Arrangements - Sche_3
Borrowing Arrangements - Schedule of Future Maturities of Debt, Including Finance Leases (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 17.4 |
2025 | 15.7 |
2026 | 14.7 |
2027 | 303.6 |
2028 | 1.6 |
Thereafter | 1.8 |
Total | $ 354.8 |
Borrowing Arrangements - Narrat
Borrowing Arrangements - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Apr. 21, 2022 | May 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 16, 2021 | Nov. 30, 2018 | |
Debt Instrument [Line Items] | |||||||
Debt instrument, covenant compliance | As of December 31, 2023, the Company was in compliance with its debt covenants under the Amended Credit Agreement. | ||||||
Long-term borrowings | $ 352,100,000 | $ 344,200,000 | |||||
Redemptions of convertible debentures | 0 | 0 | |||||
Approximate redemption value of convertible debentures | $ 1,100,000 | 1,100,000 | |||||
Interest Rate Contract | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate collar, term | 3 years | ||||||
Notional amount | $ 222,300,000 | ||||||
Derivative, cap interest rate | 2.50% | ||||||
Interest paid | $ 800,000 | $ 2,500,000 | |||||
Letter of Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 6.50% | 5.60% | |||||
Senior Credit Facility, Net of Discount | |||||||
Debt Instrument [Line Items] | |||||||
Long-term borrowings | $ 328,600,000 | $ 322,300,000 | |||||
Convertible Subordinated Debt | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price upon stated maturity (in dollars per share) | $ 19.18 | ||||||
Convertible debentures maturity per share | $ 25 | ||||||
Amended Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 600,000,000 | ||||||
Line of credit facility, expiration date | Apr. 21, 2027 | ||||||
Amended Credit Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 400,000,000 | ||||||
Amended Credit Agreement | Letter of Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
Amended Credit Agreement | Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 200,000,000 | ||||||
Amended Credit Agreement | Senior Credit Facility, Net of Discount | |||||||
Debt Instrument [Line Items] | |||||||
Fees and other closing cost | $ 2,500,000 | $ 1,300,000 | |||||
Letters of credit outstanding | $ 36,900,000 | ||||||
Long-term borrowings | $ 329,500,000 | ||||||
Senior Credit Facility | Senior Credit Facility, Net of Discount | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 7% | 6% |
Stock Repurchase Program - Narr
Stock Repurchase Program - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Feb. 28, 2023 | May 31, 2022 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Amount authorized by the company's Board of Directors (not to exceed) | $ 60,000,000 | $ 60,000,000 | ||
Number of shares repurchased | 285,700 | 1,474,300 | ||
Average price paid per share (in dollars per share) | $ 36.53 | $ 33.47 | ||
Remaining authorized repurchase amount | $ 200,000 | |||
Excise tax on net repurchases of common stock | 100,000 | |||
May 2022 and February 2023 Stock Repurchase Programs | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Amount authorized by the company's Board of Directors (not to exceed) | 120,000,000 | |||
Remaining authorized repurchase amount | $ 60,200,000 |
Stock Repurchase Program - Summ
Stock Repurchase Program - Summary of Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
Total number of shares repurchased | 285,700 | 1,474,300 |
Average price paid per share (in dollars per share) | $ 36.53 | $ 33.47 |
Total value of common stock repurchased | $ 10.4 | $ 49.4 |
Stock Repurchase Program - Su_2
Stock Repurchase Program - Summary of Remaining Authorized Repurchase Amounts (Details) - USD ($) | Dec. 31, 2023 | Feb. 28, 2023 | May 31, 2022 |
Equity, Class of Treasury Stock [Line Items] | |||
Total authorized repurchase amount | $ 60,000,000 | $ 60,000,000 | |
Total remaining authorized repurchase amount | $ 200,000 | ||
May 2022 and February 2023 Stock Repurchase Programs | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total authorized repurchase amount | 120,000,000 | ||
Total value of shares repurchased | 59,800,000 | ||
Total remaining authorized repurchase amount | $ 60,200,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Earnings (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of income before taxes | |||
United States | $ 47.8 | $ 65.1 | $ 44.8 |
Foreign | 0.9 | 0.5 | 1 |
Earnings before income taxes | $ 48.7 | $ 65.6 | $ 45.8 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
U.S. Federal | $ 8.2 | $ 6.9 | $ (3.2) |
Foreign | 0.8 | 0.3 | 0.2 |
State | 3.6 | 2.7 | 1 |
Total current | 12.6 | 9.9 | (2) |
Deferred | |||
U.S. Federal | 1.3 | 5.1 | 9.7 |
Foreign | (0.5) | 0.1 | |
State | 0.6 | 2.5 | 2.7 |
Total deferred | 1.4 | 7.6 | 12.5 |
Income tax expense (benefit) | $ 14 | $ 17.5 | $ 10.5 |
Income Taxes - Schedule of Co_3
Income Taxes - Schedule of Components of Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets | ||
NOL carry forwards and tax credits | $ 17.7 | $ 20.2 |
Lease liabilities | 57.8 | 59 |
Accrued expenses | 16.7 | 15.7 |
Accrued compensation | 10.3 | 10.2 |
Depreciation | 27.6 | 27.6 |
Other | 4.8 | 0.2 |
Total deferred income tax assets | 134.9 | 132.9 |
Valuation allowances | (6.8) | (9) |
Net deferred income tax assets | 128.1 | 123.9 |
Deferred income tax liabilities | ||
ROU assets | (47.3) | (43.9) |
Depreciation and amortization | (12.9) | (13.5) |
Goodwill | (22.3) | (19.3) |
Equity investments in unconsolidated entities | (4.7) | (5.1) |
Other | (0.4) | (0.3) |
Total deferred income tax liabilities | (87.6) | (82.1) |
Total net deferred income tax asset | 40.5 | 41.8 |
Amounts per Consolidated Balance Sheets | ||
Deferred income tax assets | 42.8 | 44.4 |
Deferred income tax liabilities (included in Other noncurrent liabilities) | (2.3) | (2.6) |
Total net deferred income tax asset | $ 40.5 | $ 41.8 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes Affecting the Valuation Allowances on Deferred Tax Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation Allowance [Line Items] | |||
Beginning Balance | $ 9 | ||
Ending Balance | 6.8 | $ 9 | |
Valuation Allowance Deferred Tax Assets | |||
Valuation Allowance [Line Items] | |||
Beginning Balance | 9 | 10.9 | $ 10.7 |
Current year (benefit) expense | (2.2) | (1.9) | 0.2 |
Ending Balance | $ 6.8 | $ 9 | $ 10.9 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||||
Valuation allowance | $ 6.8 | $ 9 | ||
Income tax refund receivable related to CARES Act | 20.5 | $ 15.4 | ||
Increase (decrease) in income taxes refund receivable | $ 5.1 | |||
Additional tax benefit related to carryback the federal taxable loss | 2 | |||
Taxes paid | 10.2 | 13.8 | 0.8 | |
Taxes refunded | 0.2 | $ 20.9 | $ 0.3 | |
Foreign and State | ||||
Income Taxes | ||||
Operating loss carryforwards and tax credits | $ 17.7 | |||
Foreign and State | Minimum | ||||
Income Taxes | ||||
Operating loss carryforwards and tax credits, expiration year | 2024 | |||
Foreign and State | Maximum | ||||
Income Taxes | ||||
Operating loss carryforwards and tax credits, expiration year | 2043 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Differences Between the U.S. Federal Statutory Income Tax Rate and Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of income tax provision (benefit) to the amount computed by multiplying book income/(loss) before income taxes by federal income tax rate | |||
Tax at statutory rate | 21% | 21% | 21% |
Permanent differences | 4.80% | 1.30% | 1.40% |
State and local income taxes, net of federal benefit | 11.60% | 10% | 6.80% |
Foreign taxes | 0.70% | 0.40% | 0.50% |
Federal NOL carryback rate differential | 0% | 0% | (4.40%) |
Noncontrolling interest | (1.60%) | (0.90%) | (1.70%) |
Recognition of tax credits | (3.30%) | (2.20%) | (1.00%) |
Income tax expense before change in valuation allowance | 33.20% | 29.60% | 22.60% |
Change in valuation allowance | (4.50%) | (2.90%) | 0.30% |
Effective tax rate | 28.70% | 26.70% | 22.90% |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Years that Remain Subject to Examination for the Company's Major Tax Jurisdictions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
United States - federal income tax | Minimum | ||
Income Taxes | ||
Tax years subject to examination | 2020 | 2020 |
United States - federal income tax | Maximum | ||
Income Taxes | ||
Tax years subject to examination | 2023 | 2023 |
United States - state and local income tax | Minimum | ||
Income Taxes | ||
Tax years subject to examination | 2019 | 2019 |
United States - state and local income tax | Maximum | ||
Income Taxes | ||
Tax years subject to examination | 2023 | 2023 |
Foreign - Canada and Puerto Rico | Minimum | ||
Income Taxes | ||
Tax years subject to examination | 2019 | 2019 |
Foreign - Canada and Puerto Rico | Maximum | ||
Income Taxes | ||
Tax years subject to examination | 2023 | 2023 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Benefit Plans | |||
Employee's eligibility age to receive a defined monthly benefit | 65 years | ||
Accrual for present value of future benefit payments | $ 2.7 | $ 2.8 | |
Expenses related to the plan | 0.2 | 0.2 | $ 0.2 |
Expenses related to the savings and retirement plan | 2.6 | 2 | 0.6 |
Expenses for contributions not reimbursed by clients related to multiemployer defined benefit and defined contribution plans | 1 | 0.9 | 0.8 |
Non-qualified deferred compensation plan | |||
Benefit Plans | |||
Cash surrender value of life insurance contracts | 22.5 | 19.2 | |
Maximum annual contribution an employee is permitted to defer | 0.1 | ||
Deferred compensation liability | 24.9 | 19.4 | |
Deferred benefits for certain former key executives | Central | |||
Benefit Plans | |||
Accrual for present value of future benefit payments | 1.3 | 1.4 | |
Expenses related to the plan | $ 0.2 | 0.2 | $ 0.2 |
Minimum period over which the annual payments will be made when the executives retire or upon death or disability | 10 years | ||
Face value of life insurance contracts | $ 4.1 | 4.1 | |
Cash surrender value of life insurance contracts | $ 3.4 | $ 3.3 | |
Savings and Retirement 401K Plan | |||
Benefit Plans | |||
Employer match of first tier of employee contributions (in percentage) | 50% | ||
First tier percentage of compensation eligible for match by employer | 6% |
Benefit Plans - Multiemployer D
Benefit Plans - Multiemployer Defined Benefit Pension Plans (Details) - Multiemployer Defined Benefit Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Teamsters Local Union 727 | |||
Multiemployer plans | |||
Pension Protection Zone Status | Green | Green | Green |
Contributions | $ 3.7 | $ 3.5 | $ 2.9 |
Local 272 Labor Management | |||
Multiemployer plans | |||
Pension Protection Zone Status | Green | Green | Green |
Contributions | $ 0.9 | $ 0.9 | $ 0.9 |
Comprehensive Income - Componen
Comprehensive Income - Components of Other Comprehensive Income and Income Tax Benefit Allocated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other Comprehensive income before tax amount | $ 0.5 | $ 1.2 | $ 2.2 |
Other comprehensive Income tax amount | 0.2 | 0.6 | |
Other comprehensive Income net of tax amount | 0.5 | 1 | 1.6 |
Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other Comprehensive income before tax amount | 0.5 | 0.5 | (0.1) |
Other comprehensive Income net of tax amount | $ 0.5 | 0.5 | (0.1) |
De-designation of interest rate collars | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other Comprehensive income before tax amount | 0.7 | 2.3 | |
Other comprehensive Income tax amount | 0.2 | 0.6 | |
Other comprehensive Income net of tax amount | $ 0.5 | $ 1.7 |
Comprehensive Income - Compon_2
Comprehensive Income - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | $ 226 | ||
Ending Balance | 250.8 | $ 226 | |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (1.8) | (2.3) | $ (2.2) |
Other comprehensive income (loss) before reclassification | 0.5 | 0.5 | (0.1) |
Ending Balance | (1.3) | (1.8) | (2.3) |
Interest Rate Collars | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (0.5) | (2.2) | |
Amounts reclassified from accumulated other comprehensive loss | 0.5 | 1.7 | |
Ending Balance | (0.5) | ||
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (1.8) | (2.8) | (4.4) |
Other comprehensive income (loss) before reclassification | 0.5 | 0.5 | (0.1) |
Amounts reclassified from accumulated other comprehensive loss | 0.5 | 1.7 | |
Ending Balance | $ (1.3) | $ (1.8) | $ (2.8) |
Comprehensive Income - Reclassi
Comprehensive Income - Reclassifications from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Net realized loss | $ (28.8) | $ (17.3) | $ (20.7) |
Reclassifications from Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclassifications before tax | 0.7 | 2.3 | |
Income tax benefit | 0.2 | 0.6 | |
Reclassifications, net of tax | 0.5 | 1.7 | |
Reclassifications from Accumulated Other Comprehensive Loss | Interest Rate Collars: Net Realized Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Net realized loss | $ 0.7 | $ 2.3 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information by Regions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Services revenue | |||
Services revenue | $ 1,782.3 | $ 1,553.5 | $ 1,177.2 |
Operating income (loss) | |||
Total operating income | 77.5 | 82.9 | 66.5 |
General and administrative expenses | |||
General and administrative expenses | 140.4 | 109.1 | 88.2 |
Depreciation and amortization | |||
Depreciation expense and amortization | 36.1 | 29.7 | 25.1 |
Lease Type Contracts | |||
Services revenue | |||
Services revenue | 293.2 | 275.7 | 215.6 |
Management Type Contracts | |||
Services revenue | |||
Services revenue | 590 | 518.7 | 385.9 |
Reimbursed Management Type Contract Revenue | |||
Services revenue | |||
Services revenue | 899.1 | 759.1 | 575.7 |
Operating Segments | Commercial | |||
Services revenue | |||
Services revenue | 585.5 | 538.5 | 439 |
Operating income (loss) | |||
Total operating income | 135 | 122 | 101.3 |
General and administrative expenses | |||
General and administrative expenses | 36.6 | 29.3 | 23 |
Depreciation and amortization | |||
Depreciation expense and amortization | 15.1 | 13.1 | 13.5 |
Operating Segments | Commercial | Lease Type Contracts | |||
Services revenue | |||
Services revenue | 277.8 | 261.7 | 206.5 |
Operating Segments | Commercial | Management Type Contracts | |||
Services revenue | |||
Services revenue | 307.7 | 276.8 | 232.5 |
Operating Segments | Aviation | |||
Services revenue | |||
Services revenue | 297.7 | 255.9 | 162.5 |
Operating income (loss) | |||
Total operating income | 37.9 | 33.5 | 21.8 |
General and administrative expenses | |||
General and administrative expenses | 17.2 | 12.6 | 11.8 |
Depreciation and amortization | |||
Depreciation expense and amortization | 12.2 | 11.2 | 8.4 |
Operating Segments | Aviation | Lease Type Contracts | |||
Services revenue | |||
Services revenue | 15.4 | 14 | 9.1 |
Operating Segments | Aviation | Management Type Contracts | |||
Services revenue | |||
Services revenue | 282.3 | 241.9 | 153.4 |
Segment Reconciling Items | |||
Operating income (loss) | |||
Total operating income | (95.4) | (72.6) | (56.6) |
General and administrative expenses | |||
General and administrative expenses | 86.6 | 67.2 | 53.4 |
Depreciation and amortization | |||
Depreciation expense and amortization | $ 8.8 | $ 5.4 | $ 3.2 |
Segment Information - Schedul_2
Segment Information - Schedule of Segment Information by Regions (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commercial | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expenses related to cost of services | $ 8.3 | $ 7.9 | $ 7.9 |
Aviation | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expenses related to cost of services | $ 6.1 | $ 5.8 | $ 4.6 |