Document Entity Information
Document Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 19, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 000-50796 | ||
Entity Registrant Name | SP PLUS CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 16-1171179 | ||
Entity Address, Address Line One | 200 E. Randolph Street, SuiteĀ 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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 730.2 | ||
Entity Common Stock, Shares Outstanding | 22,997,061 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement to be delivered to stockholders in connection with the Annual Meeting of Stockholders to be held on May 6, 2020 are incorporated by reference into Part III of this Form 10-K. The 2019 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0001059262 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 24.1 | $ 39.9 |
Notes and accounts receivable, net | 162.3 | 150.7 |
Prepaid expenses and other | 24.7 | 17.2 |
Total current assets | 211.1 | 207.8 |
Leasehold improvements, equipment and construction in progress, net | 47.9 | 40.3 |
Right-of-use assets | 431.7 | 0 |
Other assets | ||
Advances and deposits | 4 | 4.2 |
Other intangible assets, net | 152.2 | 166 |
Favorable acquired lease contracts, net | 0 | 17.6 |
Equity investments in unconsolidated entities | 10.2 | 9.8 |
Other assets, net | 21.6 | 17.3 |
Deferred taxes | 10.6 | 14.6 |
Cost of contracts, net | 4.3 | 9.2 |
Goodwill | 586 | 585.5 |
Total other assets | 788.9 | 824.2 |
Total assets | 1,479.6 | 1,072.3 |
Liabilities and stockholders' equity | ||
Accounts payable | 115.3 | 110.1 |
Accrued rent | 18.1 | 23.5 |
Compensation and payroll withholdings | 28.7 | 25.8 |
Property, payroll and other taxes | 6.8 | 9.5 |
Accrued insurance | 19.2 | 19.7 |
Accrued expenses | 48.6 | 45.1 |
Short-term lease liabilities | 115.2 | 0 |
Current portion of long-term obligations under Senior Credit Facility and other long-term borrowings | 17.9 | 13.2 |
Total current liabilities | 369.8 | 246.9 |
Long-term borrowings, excluding current portion | ||
Obligations under Senior Credit Facility | 335.5 | 360.9 |
Other long-term borrowings | 15.6 | 12.6 |
Total long-term obligations under credit facility and other borrowings | 351.1 | 373.5 |
Long-term lease liabilities | 327.7 | 0 |
Unfavorable acquired lease contracts, net | 0 | 24.7 |
Other long-term liabilities | 57.1 | 58.6 |
Total noncurrent liabilities | 735.9 | 456.8 |
Stockholders' equity | ||
Preferred Stock, par value $0.01 per share; 5,000,000 shares authorized as of December 31, 2019 and 2018, 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, 2019 and 2018; 24,591,127 issued and 22,950,360 outstanding as of December 31, 2019 and 23,089,159 issued and 22,783,976 outstanding as of December 31, 2018, respectively | 0 | 0 |
Treasury stock at cost, 1,640,767 and 305,183 shares at December 31, 2019 and 2018, respectively | (55.3) | (7.5) |
Additional paid-in capital | 262.6 | 257.7 |
Accumulated other comprehensive loss | (2.7) | (2.4) |
Retained earnings | 169.5 | 120.7 |
Total SP Plus Corporation stockholders' equity | 374.1 | 368.5 |
Noncontrolling interest | (0.2) | 0.1 |
Total stockholders' equity | 373.9 | 368.6 |
Total liabilities and stockholders' equity | $ 1,479.6 | $ 1,072.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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 |
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) | 24,591,127 | 23,089,159 |
Common stock shares outstanding (in shares) | 22,950,360 | 22,783,976 |
Treasury stock, shares (in shares) | 1,640,767 | 305,183 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Services revenue | $ 1,663.7 | $ 1,468.4 | $ 1,590.5 |
Cost of services | 1,435.6 | 1,284.4 | 1,405.2 |
Gross profit | 228.1 | 184 | 185.3 |
General and administrative expenses | 109 | 91 | 82.9 |
Depreciation and amortization | 29.4 | 17.9 | 21 |
Operating income | 89.7 | 75.1 | 81.4 |
Other expense (income) | |||
Interest expense | 18.9 | 9.6 | 9.2 |
Interest income | (0.3) | (0.4) | (0.6) |
Gain on sale of a business | 0 | 0 | (0.1) |
Equity in (earnings) losses from investment in unconsolidated entity | 0 | (10.1) | 0.7 |
Total other expenses (income) | 18.6 | (0.9) | 9.2 |
Earnings before income taxes | 71.1 | 76 | 72.2 |
Income tax expense | 19.4 | 19.6 | 27.7 |
Net income | 51.7 | 56.4 | 44.5 |
Less: Net income attributable to noncontrolling interest | 2.9 | 3.2 | 3.3 |
Net income attributable to SP Plus Corporation | $ 48.8 | $ 53.2 | $ 41.2 |
Net income per common share | |||
Basic (in dollars per share) | $ 2.21 | $ 2.38 | $ 1.86 |
Diluted (in dollars per share) | $ 2.20 | $ 2.35 | $ 1.83 |
Weighted average shares outstanding | |||
Basic (in shares) | 22,080,025 | 22,394,542 | 22,195,350 |
Diluted (in shares) | 22,208,032 | 22,607,223 | 22,508,288 |
Lease type contracts | |||
Services revenue | $ 408.9 | $ 413.9 | $ 563.1 |
Cost of services | 366.9 | 377.6 | 518.4 |
Gross profit | 42 | 36.3 | 44.7 |
Management type contracts | |||
Services revenue | 526 | 361.5 | 348.2 |
Cost of services | 339.9 | 213.8 | 207.6 |
Gross profit | 186.1 | 147.7 | 140.6 |
Lease And Management Type Contracts | |||
Services revenue | 934.9 | 775.4 | 911.3 |
Cost of services | 706.8 | 591.4 | 726 |
Reimbursed management type contract revenue | |||
Services revenue | 728.8 | 693 | 679.2 |
Cost of services | $ 728.8 | $ 693 | $ 679.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 51.7 | $ 56.4 | $ 44.5 |
Other comprehensive (loss) income | (0.3) | (0.6) | 0.2 |
Comprehensive income | 51.4 | 55.8 | 44.7 |
Less: Comprehensive income attributable to noncontrolling interest | 2.9 | 3.2 | 3.3 |
Comprehensive income attributable to SP Plus Corporation | $ 48.5 | $ 52.6 | $ 41.4 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Noncontrolling Interest |
Beginning balance (deficit) (in shares) at Dec. 31, 2016 | 22,356,586 | ||||||
Beginning balance (deficit) at Dec. 31, 2016 | $ 268.4 | $ 0 | $ 251.2 | $ (1.4) | $ 25.9 | $ (7.5) | $ 0.2 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 44.5 | 41.2 | 3.3 | ||||
Foreign currency translation adjustments | 0.2 | 0.2 | |||||
Issuance of stock grants (in shares) | 27,632 | ||||||
Issuance of stock grants | 0.9 | 0.9 | |||||
Issuance of restricted stock units (in shares) | 61,599 | ||||||
Issuance of restricted stock units | 0 | ||||||
Issuance of performance stock units (in shares) | 96,855 | ||||||
Issuance of performance stock units | 0 | ||||||
Non-cash stock-based compensation related to restricted stock units and performance share units | 2.2 | 2.2 | |||||
Distribution to noncontrolling interest | (3.2) | (3.2) | |||||
Ending balance (deficit) (in shares) at Dec. 31, 2017 | 22,542,672 | ||||||
Ending balance (deficit) at Dec. 31, 2017 | 313.1 | $ 0 | 254.6 | (1.2) | 67 | (7.5) | 0.2 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 56.4 | 53.2 | 3.2 | ||||
Foreign currency translation adjustments | (0.6) | (0.6) | |||||
Issuance of stock grants (in shares) | 20,757 | ||||||
Issuance of stock grants | 0.7 | 0.7 | |||||
Issuance of restricted stock units (in shares) | 161,495 | ||||||
Issuance of restricted stock units | 0 | ||||||
Issuance of performance stock units (in shares) | 59,052 | ||||||
Issuance of performance stock units | 0 | ||||||
Non-cash stock-based compensation related to restricted stock units and performance share units | 2.4 | 2.4 | |||||
Distribution to noncontrolling interest | $ (3.3) | (3.3) | |||||
Ending balance (deficit) (in shares) at Dec. 31, 2018 | 22,783,976 | 22,783,976 | |||||
Ending balance (deficit) at Dec. 31, 2018 | $ 368.6 | $ 0 | 257.7 | (2.4) | 120.7 | (7.5) | 0.1 |
Increase (Decrease) in Stockholders' Equity | |||||||
Cumulative effect adjustment upon adoption of new accounting standard | (0.6) | ||||||
Net income | 51.7 | 48.8 | 2.9 | ||||
Foreign currency translation adjustments | 0.1 | 0.1 | |||||
Effective portion of cash flow hedge | (0.4) | (0.4) | |||||
Issuance of stock grants (in shares) | 14,076 | ||||||
Issuance of stock grants | 0.8 | 0.8 | |||||
Issuance of restricted stock units (in shares) | 90,214 | ||||||
Issuance of restricted stock units | 0 | ||||||
Issuance of performance stock units (in shares) | 62,094 | ||||||
Issuance of performance stock units | 0 | ||||||
Non-cash stock-based compensation related to restricted stock units and performance share units | 4.1 | 4.1 | |||||
Treasury stock | (47.8) | $ (47.9) | |||||
Distribution to noncontrolling interest | $ (3.2) | (3.2) | |||||
Ending balance (deficit) (in shares) at Dec. 31, 2019 | 22,950,360 | 22,950,360 | |||||
Ending balance (deficit) at Dec. 31, 2019 | $ 373.9 | $ 0 | $ 262.6 | $ (2.7) | $ 169.5 | $ (0.2) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net income | $ 51.7 | $ 56.4 | $ 44.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 29.3 | 18.8 | 21.7 |
Net accretion of acquired lease contracts | 0 | (1.1) | (2.2) |
Loss on sale of equipment | 0 | 0 | 0.2 |
Net equity in earnings of unconsolidated entities (net of distributions) | (0.4) | (0.4) | (8.5) |
Gain on sale of equity method investment in unconsolidated entity | 0 | (10.1) | 0 |
Net gain on sale of a business | 0 | 0 | (0.1) |
Amortization of debt issuance costs | 0.5 | 0.7 | 0.7 |
Amortization of original discount on borrowings | 0.4 | 0.5 | 0.5 |
Non-cash stock-based compensation | 4.9 | 3.1 | 3.1 |
Provision for losses on accounts receivable | 1.1 | 1.5 | 0.7 |
Deferred income taxes | 4.2 | 1.3 | 1.8 |
Changes in operating assets and liabilities | |||
Notes and accounts receivable | (12.7) | (16.7) | (2.6) |
Prepaid expenses and other | (6.9) | 0.1 | (1.8) |
Other assets | (4.8) | 2.1 | (2.3) |
Accounts payable | 5.2 | 0.8 | (7.2) |
Accrued liabilities | 3.5 | 13.9 | (3.3) |
Net cash provided by operating activities | 76 | 70.9 | 45.2 |
Investing activities | |||
Purchase of leasehold improvements and equipment | (10.2) | (8.9) | (6.8) |
Proceeds from sale of equipment and contract terminations | 0.3 | 0.2 | 0.8 |
Cash received from sale of a business, net of cash disposed | 0 | 0 | 0.6 |
Proceeds from sale of equity method investee's sale of assets | 0 | 19.3 | 8.4 |
Cost of contracts purchased | (2.6) | (1.1) | (0.7) |
Acquisition of business, net of cash acquired | 0 | (277.9) | 0 |
Net cash (used in) provided by investing activities | (12.5) | (268.4) | 2.3 |
Financing activities | |||
Proceeds from credit facility revolver | 455.6 | 333.5 | 386.6 |
Payments on credit facility revolver | (470.6) | (186.3) | (410.1) |
Proceeds from credit facility term loan | 0 | 225 | 0 |
Payments on credit facility term loan | (11.3) | (150) | (20) |
Payments of debt issuance costs and original discount on borrowings | 0 | (3.2) | 0 |
Payments on other long-term borrowings | (2.3) | (0.5) | (0.5) |
Distribution to noncontrolling interest | (3.2) | (3.3) | (3.2) |
Repurchase of common stock | (47.6) | 0 | 0 |
Net cash (used in) provided by financing activities | (79.4) | 215.2 | (47.2) |
Effect of exchange rate changes on cash and cash equivalents | 0.1 | (0.6) | 0.3 |
(Decrease) increase in cash and cash equivalents | (15.8) | 17.1 | 0.6 |
Cash and cash equivalents at beginning of year | 39.9 | 22.8 | 22.2 |
Cash and cash equivalents at end of year | 24.1 | 39.9 | 22.8 |
Cash paid during the period for | |||
Interest | 17.9 | 8.5 | 8 |
Income taxes, net | $ 15.3 | $ 15.3 | $ 26.5 |
Significant Accounting Policies
Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | Significant Accounting Policies and Practices The Company SP Plus Corporation (the "Company") facilitates the efficient movement of people, vehicles and personal belongings with the goal of enhancing the consumer experience while improving bottom line results for our clients. The Company provides professional parking management, ground transportation, remote baggage check-in and handling, facility maintenance, security, event logistics, and other technology-driven mobility solutions to aviation, commercial, hospitality, healthcare and government clients across North America. The Company typically enters into contractual relationships with property owners or managers as opposed to owning facilities. 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. All significant intercompany profits, transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("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 functional currency of the Company's Canadian operations is the Canadian dollar. Accordingly, assets and liabilities of the Company's foreign operations are translated from foreign currencies into U.S. dollars at the rates in effect on the balance sheet date while income and expenses are translated at the weighted-average exchange rates for the year. Adjustments resulting from the translations of foreign currency financial statements are accumulated and classified as a separate component of stockholders' equity. 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 $0.5 million and $1.7 million as of December 31, 2019 and 2018 , respectively, and are included within 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. Management reviews the adequacy of its allowance for doubtful accounts on an ongoing basis, using historical collection trends, aging of receivables, and a review of specific accounts, and makes adjustments in the allowance as necessary. Changes in economic conditions or other circumstances could have an impact on the collection of existing receivable balances or future allowance considerations. As of December 31, 2019 and 2018 , the Company's allowance for doubtful accounts was $1.9 million and $1.0 million, respectively. Leasehold Improvements, Equipment and Construction in Progress, net Leasehold improvements, equipment, software, vehicles, and other fixed assets are stated at cost less accumulated depreciation and amortization. Equipment is depreciated on the 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 are capitalized. Leasehold improvements are amortized on the straight-line basis over the terms of the respective leases or the service lives of the improvements, whichever is shorter (weighted average remaining life of approximately 4.6 years). Certain costs associated with directly obtaining, developing or upgrading internal-use software are capitalized and amortized over the estimated useful life of software. Cost of Contracts Cost of contracts represents the cost of obtaining contractual rights associated with a managed type or lease-type contract. Cost of parking contracts are amortized over the estimated life of the contracts, including anticipated renewals and terminations. Estimated lives are based on the contract life or anticipated life of the contract. Effective January 1, 2019, cost of contracts associated with leases within the scope of ASU No. 2016-02 Leases (Topic 842) are included in the right-of-use assets balance. Goodwill and Other Intangibles Goodwill represents the excess of 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 indicate 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 its business strategy, and significant negative industry or economic trends. If the Company does not elect to perform a qualitative assessment, it can voluntarily proceed directly to Step 1. In Step 1, the Company performs a quantitative analysis to compare the fair value of the reporting unit to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired, and the Company's is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform Step 2 of t he impairment test in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment when circumstances change that would indicate the carrying value may not be recoverable. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. The Company evaluates the remaining useful life of the other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to the remaining useful life. Assumptions and estimates about future values and remaining useful lives of its intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors, such as changes in its business strategy and internal forecasts. Although management believes the historical assumptions and estimates are reasonable and appropriate, different assumptions and estimates could materially impact reported financial results. See Note 10. Other Intangible Assets, net and Note 11. Goodwill for further discussion. Long-Lived Assets The Company evaluates long-lived assets, primarily including Leasehold improvements, equipment and construction in progress, right-of use-assets and finite-lived intangible assets 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, or the planned sale or disposal of an asset. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset group. If it is determined to be impaired, the impairment recognized is measured by the amount by which the carrying value of the asset exceeds its fair value. The Company's estimates of future cash flows from such assets could be impacted if it underperforms relative to historical or projected future operating results. 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 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 an impairment charge. Financial Instruments The carrying values of cash, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Book overdrafts of $29.3 million and $34.0 million are included within Accounts payable within the Consolidated Balance Sheets as of December 31, 2019 , and 2018 , 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 its 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 its general/garage liability, automobile, workers' compensation and garage keepers legal liability policies. As a result, the Company is, in effect, 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 Company applies the provisions as defined in the guidance related to accounting for contingencies, in determining the timing and amount of expense recognition associated with claims against the Company. 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, as defined in the guidance related to accounting for contingencies. 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 along with actuarial methods performed quarterly by a third party actuarial adviser in determining the required level of insurance reserves. As of December 31, 2019, the insurance reserve for general, garage, automobile and workersā compensation liabilities is recorded in Accrued insurance and Other long-term liabilities in the Consolidated Balance Sheets for short term and long term balances, respectively. Future information regarding historical loss experience may require changes to the level of insurance reserves and could result in increased expense recognition in the future. Legal and Other Commitments and Contingencies The Company is subject to litigation in the normal course of its business. The Company applies the provisions as defined in the guidance related to accounting for contingencies in determining the recognition and measurement of expense recognition associated with legal claims against the Company. Management 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 of pending legal claims. 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 on-site parking management, facility maintenance, ground transportation services, event logistics, remote airline check-in, security services, municipal meter revenue collection and enforcement services, scheduling and supervising all service personnel as well as providing customer service, marketing, and accounting and revenue control functions necessary to complete such services, 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 leased type contracts, and management fees for services, as the related services are provided. Ancillary services are earned from management contract properties 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 for operating expenses incurred under a management type contract. The Company has determined it is the principal in these transactions as the nature of our 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 transferred 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 and payroll related costs. Stock-Based Compensation Stock-based payments to employees including grants of employee stock options, restricted stock units 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 accounts for forfeitures of stock-based awards as they occur. Equity Investment in Unconsolidated Entities The Company has ownership interests in 30 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 25 are consolidated under the VIE or voting interest models and 5 are unconsolidated where the Companyās 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 its underlying share of each investeeās equity is included in Equity investments in unconsolidated entities within the Consolidated Balance Sheets. As the operations of these entities are consistent with the Companyās underlying core business operations, the equity in earnings of these investments are included in Services revenue - lease type contracts within the Consolidated Statements of Income. Included in equity earnings for the year ended December 31, 2017 are earnings of $8.5 million from the Company's proportionate share of the net gain of an equity method investees' sale of assets. The equity earnings in these related investments were $3.2 million, $2.7 million, and $11.3 million for the year ended December 31, 2019 , 2018 and 2017 , respectively. In 2014, the Company entered into an agreement to establish a joint venture with Parkmobile USA, Inc. and contributed all of the assets and liabilities of its proprietary Click and Park parking prepayment business in exchange for a 30% interest in the newly formed legal entity called Parkmobile, LLC (āParkmobileā). On January 3, 2018, the Company sold its entire 30% interest in Parkmobile to Parkmobile USA, Inc. for a gross sale price of $19.0 million and in the first quarter of 2018, the Company recognized a pre-tax gain of $10.1 million , net of closing costs, and included in Equity in (earnings) losses from investment in unconsolidated entity within the Consolidated Statements of Income for the year ended December 31, 2018. The Company historically accounted for its investment in the Parkmobile joint venture using the equity method of accounting, and its underlying share of equity in Parkmobile was included in Equity investments in unconsolidated entities within the Consolidated Balance Sheets. The equity (earnings) losses in the Parkmobile joint venture were historically included in Equity in (earnings) losses from investment in unconsolidated entity within the Consolidated Statements of Income. Noncontrolling Interests Noncontrolling interests represent the noncontrolling holders' percentage share of income or losses from the subsidiaries in which the Company holds a majority, but less than 100 percen t, ownership interest and the results of which are consolidated and included within in our Consolidated Financial Statements. Sale of a Business In August 2015, the Company sold portions of the Companyās security business primarily operating in the Southern California market to a third-party for a gross sales price of $1.8 million , which resulted in a gain on sale of business of $0.5 million , net of legal and other expenses. The assets under the sale agreement met the definition of a business as defined by ASU 805-10-55-4. Cash consideration received during 2015, net of legal and other expenses, was $1.0 million with the remaining consideration for the sale of the business being classified as contingent consideration. Per the sale agreement, the contingent consideration was based on the performance of the business and retention of current customers over an eighteen-month period ending in February 2017. The contingent consideration was valued at fair value as of the date of sale of the business and resulted in the Company recognizing a contingent receivable from the buyer in the amount of $0.5 million . The Company received $0.6 million for the final earn-out consideration from the buyer during 2017, which resulted in the Company recognizing an additional gain on sale of business of $0.1 million for the year ended December 31, 2017. Income Taxes Income tax expense involves management judgment as to the ultimate resolution of any tax issues. Historically, our assessments of the ultimate resolution of tax issues have been reasonably accurate. The current open issues are not dissimilar from historical items. Deferred income taxes are computed using the asset and liability method, such that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between US GAAP amounts and the tax bases 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 is the tax payable for the period plus the change during the period in deferred income taxes. The Company has certain state net operating loss carry forwards which expire in 2036. The Company considers a number of factors in its assessment of the recoverability of its net operating loss carryforwards including their expiration dates, 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 net operating losses ultimately recovered, and its assessment of their recoverability. When evaluating our tax positions, the Company accounts for uncertainty in income taxes in our 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 only 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 our 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. On December 22, 2017, the U.S. Tax Cuts and Jobs Act of 2017 (the ā2017 Tax Actā) was signed into law. The 2017 Tax Act included significant changes to the corporate income tax system in the United States, including a federal corporate rate reduction from 35% to 21% and the transition of United States international taxation from a worldwide tax system to a territorial tax system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act of 2017 (SAB 118), as issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete accounting for certain income tax effects of the 2017 Tax Act. The Company completed its analysis of the income tax effects of the 2017 Tax Act in the fourth quarter of 2018 (within the measurement period not to extend beyond one year) in accordance with SAB 118. Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Topic 842 requires lessees to record most leases on the balance sheet and recognize expense on the income statement. Additionally, the classification criteria and the accounting for sales-type and direct financing leases is modified for lessors. Under Topic 842, all entities are required to recognize "right-of-use" ("ROU") assets and lease liabilities on the balance sheet for all leases classified as either operating or finance leases. Lease classification will determine recognition of lease-related revenue and expense. Since the release of Topic 842, the FASB also issued the following additional ASUs updating the topic: ā¢ In January 2018, the FASB issued ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ā¢ In July 2018, the FASB issued ASU No. 2018-11, Lease (Topic 842): Targeted Improvements ā¢ In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases ā¢ In December 2018, the FASB issued ASU No. 2018-20, Narrow Scope Improvements for Lessors ā¢ In March 2019, the FASB issued ASU No. 2019-01, Codification Improvements Topic 842 and its related ASUs were effective for interim and annual reporting periods beginning after December 15, 2018. The Company adopted the provisions of Topic 842 on January 1, 2019 under the modified retrospective approach and has used the effective date as the initial application date. Therefore, comparative periods have not been recast and continue to be reported under the accounting standards in effect for those prior periods presented. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The standard had a material impact in the Company's Consolidated Balance Sheet, but did not have a material impact in the Company's Consolidated Income Statements and no impact in the Consolidated Statements of Cash Flow. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while the Company's accounting for finance leases remained substantially unchanged. The impact of the standard on the Consolidated Balance Sheet as of December 31, 2019 is as follows: Impact of Changes in Accounting Policies as of December 31, 2019 (millions) As Reported Balances without Adoption of Topic 842 Impact of Adoption Assets Prepaid expenses and other (a) $ 24.7 $ 25.3 $ (0.6 ) Right-of-use assets (b) 431.7 ā 431.7 Favorable acquired lease contracts, net (c) ā 14.1 (14.1 ) Cost of contracts, net (d) 4.3 8.3 (4.0 ) Liabilities Accrued rent (e) $ 18.1 $ 26.8 $ (8.7 ) Short-term lease liabilities (f) 115.2 ā 115.2 Long-term lease liabilities (g) 327.7 ā 327.7 Unfavorable lease contracts, net (h) ā 19.2 (19.2 ) Other long-term liabilities (i) 57.1 61.3 (4.2 ) (a) Represents prepaid rent reclassified to Right-of-use assets (b) Represents capitalization of operating lease assets and reclassification of prepaid and deferred rent, lease incentives, favorable and unfavorable acquired lease contracts, net and cost of contract balances on operating leases (c) Represents favorable acquired lease contracts, net reclassified to Right-of-use assets (d) Represents cost of contract, net reclassified to Right-of-use assets (e) Represents short-term deferred rent reclassified to Right-of-use assets (f) Represents the recognition of short-term operating lease liabilities (g) Represents the recognition of long-term operating lease liabilities (h) Represents unfavorable acquired lease contracts, net reclassified to Right-of-use assets (i) Represents long-term deferred rent reclassified to Right-of-use assets In June 2018, the FASB issued ASU No. 2018-07, CompensationāStock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . Under existing guidance, the accounting for nonemployee share-based payments differs from that applied to employee awards, particularly with regard to the measurement date and the impact of performance conditions. This ASU provides that existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The Company adopted the standard as of January 1, 2019. The standard did not have an impact on the Companyās financial position, results of operations, cash flows or financial statement disclosures. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This Update modifies accounting guidance for hedge accounting by making more hedge strategies eligible for hedge accounting, amending presentation and disclosure requirements, and changing how companies assess ineffectiveness. The intent is to simplify the application of hedge accounting and increase transparency of information about an entityās risk management activities. The Company adopted the standard as of January 1, 2019. The standard did not have an impact on the Companyās financial position, results of operations, cash flows or financial statement disclosures. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as Benchmark Interest Rate for Hedge Accounting Purposes . This Update permits use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes. The Company adopted the standard as of January 1, 2019. The standard did not have an impact on the Companyās financial position, results of operations, cash flows or financial statement disclosures. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU provides guidance that permits companies to reclassify disproportionate tax effects in accumulated other comprehensive income (AOCI) caused by the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") to retained earnings. The FASB refers to these amounts as "stranded tax effects." Companies that elect to reclassify the effects associated with the change in US federal corporate income tax rate must do so for all items within AOCI. The new guidance also required all companies to include certain new disclosures in their financial statements, regardless of whether a company opts to make the reclassification. Companies were allowed to adopt the new guidance using one of two transition methods: (1) retrospective to each period (or periods) in which the income tax effects of the 2017 Tax Act related to items remaining in AOCI are recognized, or (2) at the beginning of the period of adoption. ASU No. 2018-02 was effective for all companies for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted the provisions of ASU 2018-02 in the fourth quarter of 2018. The impact to the Company's financial position, results of operations, cash flow and financial statement disclosures are as follows: ā¢ At the beginning of the twelve months ended December 31, 2018, as allowed by ASU 2018-02, the Company elected to reclassify the "stranded tax effects" from AOCI to retained earnings. As a result, beginning retained earnings includes a $0.6 million adjustment related to the recognition of stranded tax effects previously not recognized as a reduction of expense by the Company as of December 31, 2017. ā¢ There was no significant impact to diluted weighted average shares outstanding for purposes of calculating net income per common share-diluted for the twelve months ended December 31, 2018, as a result of the adoption. Accounting Pronouncements to be Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles ā Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. The new guidance simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unitās carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. ASU No. 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests. The standard is not expected to have an impact on the Companyās financial position, results of operations, cash flows and financial statement disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace todayās āincurred lossā approach with an āexpected lossā model for instruments measured at amortized cost. For |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases parking facilities, office space, warehouses, vehicles and equipment and determines if an arrangement is a lease at inception. The Company rents or subleases certain real estate to third parties. The Company's sublease portfolio consists of operating leases for space within its leased parking facilities. Prior to January 1, 2019, the Company recognized lease expense related to operating leases on a straight-line basis over the terms of the leases and, accordingly, recorded the difference between cash rent payments and recognition of rent expense as a deferred rent liability or prepaid rent. Landlord-funded leasehold improvements were also recorded as deferred rent liabilities and were amortized as a reduction of rent expense over the noncancelable term of the related operating lease. For leases that included one or more options to renew, the exercise of such renewal options is at the Company's sole discretion or mutual agreement. Certain of the Company's lease agreements include variable rent consisting primarily of payments that are a percentage of parking services revenue based on contractual levels and rental payments adjusted periodically for inflation. Upon adoption of Topic 842, 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. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The ROU asset includes cumulative prepaid or accrued rent on adoption date, unamortized lease incentives, unamortized initial direct costs, unamortized favorable acquired lease contracts, net and unfavorable acquired lease contracts, net initially recognized prior to adoption of Topic 842. 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 on the balance sheet. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate 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. Equipment and vehicle leases also include options to purchase the leased property. The depreciable lives 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. Consistent with other long-lived assets or asset groups that are held and used, the Company tests right-of-use assets when impairment indicators are present as detailed in Note 1. Significant Accounting Policies and Practices . Service concession arrangements within the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services , are excluded from the scope of Topic 842. Lease costs associated with these arrangements are recorded as a reduction of revenue. See Note 5. Revenue for further discussion. Upon adoption of Topic 842, favorable and unfavorable acquired lease contracts, net that represented the fair value of acquired lease contracts, arising from the October 2, 2012 acquisition of KCPC Holdings, Inc. the ultimate parent of Central Parking Corporation, are now included in the right-of-use assets balance. See Note 1. Significant Accounting Policies and Practices for the favorable and unfavorable acquired lease contracts, net balance reclassified to right-of-use assets upon adoption of Topic 842. The components of leased assets and liabilities and classification on the Consolidated Balance Sheet as of December 31, 2019 were as follows: (millions) Classification 2019 Assets Operating Right-of-use assets $ 431.7 Finance Leasehold improvements, equipment and construction in progress, net 18.6 Total leased assets $ 450.3 Liabilities Current Operating Short-term lease liabilities $ 115.2 Finance Current portion of long-term obligations under credit facility and other long-term borrowings 3.1 Noncurrent Operating Long-term lease liabilities 327.7 Finance Other long-term borrowings 15.6 Total lease liabilities $ 461.6 The components of lease cost and classification on the Consolidated Statement of Income for the year ended December 31, 2019 were as follows: (millions) Classification 2019 Operating lease (a) Cost of services - lease type contracts $ 150.9 Short-term lease (a) Cost of services - lease type contracts 33.1 Variable lease Cost of services - lease type contracts 58.1 Operating lease cost 242.1 Finance lease cost Amortization of leased assets Depreciation and amortization 2.3 Interest on lease liabilities Interest expense 0.9 Net lease cost $ 245.3 (a) Includes $6.0 million operating lease costs related to leases for office space, classified in General and administrative expenses Sublease income during the year ended December 31, 2019 was $5.5 million . The Company has entered into operating lease arrangements as of December 31, 2019 that commence in future periods. The total amount of right-of-use assets and lease liabilities related to these arrangements are immaterial. Maturities, lease term, and discount rate information of lease liabilities as of December 31, 2019 were as follows: (millions) Operating Finance Total 2020 $ 133.7 $ 4.0 $ 137.7 2021 104.0 4.0 108.0 2022 83.7 3.5 87.2 2023 56.8 2.5 59.3 2024 38.1 1.4 39.5 2025 and thereafter 96.9 6.0 102.9 Total lease payments 513.2 21.4 534.6 Less: Imputed interest 70.3 2.7 73.0 Present value of lease liabilities $ 442.9 $ 18.7 $ 461.6 Weighted-average remaining lease term (years) 5.6 6.9 Weighted-average discount rate 4.9 % 4.9 % Future sublease income for the above periods shown was excluded as the amounts are not material. Supplemental cash flow information related to leases was as follows: (millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows related to operating leases $ 179.0 Operating cash outflows related to finance leases 0.9 Financing cash outflows related to finance leases 2.3 Leased assets obtained in exchange for new operating liabilities 68.6 Leased assets obtained in exchange for new finance lease liabilities 6.8 |
Leases | Leases The Company leases parking facilities, office space, warehouses, vehicles and equipment and determines if an arrangement is a lease at inception. The Company rents or subleases certain real estate to third parties. The Company's sublease portfolio consists of operating leases for space within its leased parking facilities. Prior to January 1, 2019, the Company recognized lease expense related to operating leases on a straight-line basis over the terms of the leases and, accordingly, recorded the difference between cash rent payments and recognition of rent expense as a deferred rent liability or prepaid rent. Landlord-funded leasehold improvements were also recorded as deferred rent liabilities and were amortized as a reduction of rent expense over the noncancelable term of the related operating lease. For leases that included one or more options to renew, the exercise of such renewal options is at the Company's sole discretion or mutual agreement. Certain of the Company's lease agreements include variable rent consisting primarily of payments that are a percentage of parking services revenue based on contractual levels and rental payments adjusted periodically for inflation. Upon adoption of Topic 842, 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. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The ROU asset includes cumulative prepaid or accrued rent on adoption date, unamortized lease incentives, unamortized initial direct costs, unamortized favorable acquired lease contracts, net and unfavorable acquired lease contracts, net initially recognized prior to adoption of Topic 842. 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 on the balance sheet. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate 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. Equipment and vehicle leases also include options to purchase the leased property. The depreciable lives 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. Consistent with other long-lived assets or asset groups that are held and used, the Company tests right-of-use assets when impairment indicators are present as detailed in Note 1. Significant Accounting Policies and Practices . Service concession arrangements within the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services , are excluded from the scope of Topic 842. Lease costs associated with these arrangements are recorded as a reduction of revenue. See Note 5. Revenue for further discussion. Upon adoption of Topic 842, favorable and unfavorable acquired lease contracts, net that represented the fair value of acquired lease contracts, arising from the October 2, 2012 acquisition of KCPC Holdings, Inc. the ultimate parent of Central Parking Corporation, are now included in the right-of-use assets balance. See Note 1. Significant Accounting Policies and Practices for the favorable and unfavorable acquired lease contracts, net balance reclassified to right-of-use assets upon adoption of Topic 842. The components of leased assets and liabilities and classification on the Consolidated Balance Sheet as of December 31, 2019 were as follows: (millions) Classification 2019 Assets Operating Right-of-use assets $ 431.7 Finance Leasehold improvements, equipment and construction in progress, net 18.6 Total leased assets $ 450.3 Liabilities Current Operating Short-term lease liabilities $ 115.2 Finance Current portion of long-term obligations under credit facility and other long-term borrowings 3.1 Noncurrent Operating Long-term lease liabilities 327.7 Finance Other long-term borrowings 15.6 Total lease liabilities $ 461.6 The components of lease cost and classification on the Consolidated Statement of Income for the year ended December 31, 2019 were as follows: (millions) Classification 2019 Operating lease (a) Cost of services - lease type contracts $ 150.9 Short-term lease (a) Cost of services - lease type contracts 33.1 Variable lease Cost of services - lease type contracts 58.1 Operating lease cost 242.1 Finance lease cost Amortization of leased assets Depreciation and amortization 2.3 Interest on lease liabilities Interest expense 0.9 Net lease cost $ 245.3 (a) Includes $6.0 million operating lease costs related to leases for office space, classified in General and administrative expenses Sublease income during the year ended December 31, 2019 was $5.5 million . The Company has entered into operating lease arrangements as of December 31, 2019 that commence in future periods. The total amount of right-of-use assets and lease liabilities related to these arrangements are immaterial. Maturities, lease term, and discount rate information of lease liabilities as of December 31, 2019 were as follows: (millions) Operating Finance Total 2020 $ 133.7 $ 4.0 $ 137.7 2021 104.0 4.0 108.0 2022 83.7 3.5 87.2 2023 56.8 2.5 59.3 2024 38.1 1.4 39.5 2025 and thereafter 96.9 6.0 102.9 Total lease payments 513.2 21.4 534.6 Less: Imputed interest 70.3 2.7 73.0 Present value of lease liabilities $ 442.9 $ 18.7 $ 461.6 Weighted-average remaining lease term (years) 5.6 6.9 Weighted-average discount rate 4.9 % 4.9 % Future sublease income for the above periods shown was excluded as the amounts are not material. Supplemental cash flow information related to leases was as follows: (millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows related to operating leases $ 179.0 Operating cash outflows related to finance leases 0.9 Financing cash outflows related to finance leases 2.3 Leased assets obtained in exchange for new operating liabilities 68.6 Leased assets obtained in exchange for new finance lease liabilities 6.8 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On November 30, 2018, the Company acquired the outstanding shares (the "Acquisition") of ZWB Holdings, Inc. and Rynn's Luggage Corporation, and their subsidiaries and affiliates (collectively, "Bags"). Bags is a leading provider of baggage delivery, remote airline check in, and other related services, primarily to airline, airport and hospitality clients. Subject to the terms and conditions of the Stock Purchase Agreement, as consideration for the Acquisition, SP Plus paid to the seller total consideration of approximately $283.6 million . The consideration was comprised of $275.0 million of contractual cash consideration, $8.1 million related to the net working capital and cash acquired and $0.5 million for certain individual taxes to be paid by the seller (the āCash Considerationā). As described in Note 20. Domestic and Foreign Operations , the Company integrated the Bags' operations into the Aviation segment, effective November 30, 2018. The Acquisition has been accounted for as a business combination, and assets acquired and liabilities assumed were recorded at their estimated fair values. Goodwill as of the date of the Acquisition (the "acquisition date") is measured as the excess of consideration transferred, which is also generally measured at fair value or the net acquisition date fair values of the assets acquired and the liabilities assumed. The results of operations are reflected in the consolidated financial statements of the Company from the acquisition date. The Company incurred certain acquisition and integration costs associated with the transaction that were expensed as incurred and are reflected in the Consolidated Statements of Income. See Note 4. Acquisition, Restructuring and Integration Costs. The fair values of assets acquired and liabilities assumed are as follows: (millions) Initial Measurement Period Adjustments Final Cash and cash equivalents $ 5.9 $ 5.9 Notes and accounts receivable 13.2 13.2 Prepaid expenses and other 2.0 2.0 Advances and deposits 0.2 0.2 Leasehold improvements, equipment and construction in progress, net 1.5 1.5 Other intangible assets, net 118.0 118.0 Goodwill 154.1 0.3 154.4 Accounts payable (6.5 ) (6.5 ) Accrued expenses (4.1 ) (0.3 ) (4.4 ) Other long-term liabilities (0.7 ) (0.7 ) Net assets acquired and liabilities assumed $ 283.6 $ ā $ 283.6 Goodwill amounting to $154.4 million represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The goodwill recognized is attributable primarily to expanded revenue synergies and opportunities in the aviation and hospitality businesses, and other benefits that the Company believes will result from combining its operations with the operations of Bags. The goodwill acquired is deductible for tax purposes. Other Intangibles assets, net acquired consist of the following: (millions) Estimated Life Fair Value Trade name 5.0 Years $ 5.6 Customer relationships 12.4 - 15.8 Years 100.4 Existing technology 5.0 - 6.0 Years 10.4 Non-compete agreement 5.0 Years 1.6 Estimated fair value of identified intangibles $ 118.0 The fair value for all identifiable intangible assets is based on assumptions that market participants would use in pricing an asset, based on the most advantageous market for the asset (i.e., its highest and best use). The fair value of trade names was determined with the relief from royalty savings method, which is a commonly-used variation of the income approach. The Company considered the return on assets and market comparable methods when estimating an appropriate royalty rate for the trade names. The fair value of acquired customer relationships was determined with the excess earnings method, which is a variation of the income approach. This approach calculates the excess of the future cash inflows (i.e., revenue from customers generated from the relationships) over the related cash outflows (i.e., customer servicing expenses) generated over the useful life of the relationship. The fair value of developed or existing technology was determined utilizing the relief from royalty savings method under the income approach with additional consideration given to asset deterioration rates. Unaudited Pro forma financial information The following unaudited pro forma results of operations for the years ended December 31, 2019 and 2018 , assumes the Acquisition was completed on January 1, 2018, and as such Bags pre-acquisition results have been added to the Companyās historical results. The historical consolidated financial information of the Company and the Acquisition have been adjusted to give effect to pro forma events that are (1) directly attributable to the transaction, (2) factually supportable and (3) expected to have a continuing impact on the combined results. The pro forma results contained in the table below include adjustments for (i) amortization of acquired intangibles, (ii) reduced general and administrative expenses related to non-routine transaction expenses, (iii) increased interest expense related to the financing of the Acquisition, and (iv) estimated income tax effect. The unaudited pro forma condensed combined financial information is presented solely for informational purposes and is not necessarily indicative of the combined results of operations or financial position that might have been achieved for the periods or dates indicated, nor is it necessarily indicative of the future results of the combined company. The unaudited pro forma condensed combined financial statements do not give effect to the potential impact of any anticipated benefits from any revenue synergies, cost savings or operating synergies that may result from the Acquisition or to any disynergies and integration related costs. Also, the unaudited pro forma condensed combined financial information does not reflect possible adjustments related to potential restructuring or integration activities that have yet to be determined or transaction or other costs following the combination that are not expected to have a continuing impact on the business of the combined company. Further, one-time transaction-related expenses anticipated to be incurred prior to, or concurrent with, the closing of the transaction are not included in the unaudited pro forma condensed combined statement of income as such transaction costs were determined not to be significant. Additionally, the unaudited pro forma financial information does not reflect the costs that the company has incurred or may incur to integrate Bags. (millions) 2018 Total services revenue $ 1,617.7 Net income attributable to SP Plus Corporation 55.1 Services revenue and net income related to Bags that are included in the Consolidated Statements of Income are $175.2 million and $12.4 million in 2019 and $14.2 million and $1.3 million Acquisition, Restructuring and Integration Costs The Company has incurred certain acquisition, restructuring, and integration costs that were expensed as incurred, which include: ā¢ transaction costs and other acquisition related costs (primarily professional and advisory services) primarily related to the Acquisition (included within General and administrative expenses within the Consolidated Statements of Income); ā¢ costs (primarily severance and relocation costs) related to a series of Company initiated workforce reductions to increase organizational effectiveness and provide cost savings that can be reinvested in the Company's growth initiatives, during 2019, 2018 and 2017 (included within General and administrative expenses within the Consolidated Statements of Income); ā¢ costs related to the selling stockholders' underwritten public offerings of common stock of the Company incurred during the second quarter 2017 (included within General and administrative expenses within the Consolidated Statements of Income); and ā¢ consulting costs for integration-related activities related to the Acquisition (included within General and administrative expenses within the Consolidated Statements of Income); The aggregate costs associated with the acquisition, restructuring, and integration related costs for the years ended December 31, 2019 , 2018 and 2017 are summarized in the following table: Year Ended December 31, (millions) 2019 2018 2017 General and administrative expenses $ 1.3 $ 8.1 $ 1.2 An accrual for acquisition, restructuring and integration costs of $0.1 million (of which, $0.1 million is included in Compensation and payroll withholdings within the Consolidated Balance Sheets) and $3.3 million (of which, $1.0 million is included in Compensation and payroll withholdings, $2.1 million is included in Accrued Expenses, and $0.5 million in Other long-term liabilities within the Consolidated Balance Sheets) as of December 31, 2019 and 2018, respectively. As of December 31, 2019, all accruals for acquisition, restructuring, and integration are short term in nature. |
Acquisition, Restructuring and
Acquisition, Restructuring and Integration Costs | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition, Restructuring and Integration Costs | Acquisition On November 30, 2018, the Company acquired the outstanding shares (the "Acquisition") of ZWB Holdings, Inc. and Rynn's Luggage Corporation, and their subsidiaries and affiliates (collectively, "Bags"). Bags is a leading provider of baggage delivery, remote airline check in, and other related services, primarily to airline, airport and hospitality clients. Subject to the terms and conditions of the Stock Purchase Agreement, as consideration for the Acquisition, SP Plus paid to the seller total consideration of approximately $283.6 million . The consideration was comprised of $275.0 million of contractual cash consideration, $8.1 million related to the net working capital and cash acquired and $0.5 million for certain individual taxes to be paid by the seller (the āCash Considerationā). As described in Note 20. Domestic and Foreign Operations , the Company integrated the Bags' operations into the Aviation segment, effective November 30, 2018. The Acquisition has been accounted for as a business combination, and assets acquired and liabilities assumed were recorded at their estimated fair values. Goodwill as of the date of the Acquisition (the "acquisition date") is measured as the excess of consideration transferred, which is also generally measured at fair value or the net acquisition date fair values of the assets acquired and the liabilities assumed. The results of operations are reflected in the consolidated financial statements of the Company from the acquisition date. The Company incurred certain acquisition and integration costs associated with the transaction that were expensed as incurred and are reflected in the Consolidated Statements of Income. See Note 4. Acquisition, Restructuring and Integration Costs. The fair values of assets acquired and liabilities assumed are as follows: (millions) Initial Measurement Period Adjustments Final Cash and cash equivalents $ 5.9 $ 5.9 Notes and accounts receivable 13.2 13.2 Prepaid expenses and other 2.0 2.0 Advances and deposits 0.2 0.2 Leasehold improvements, equipment and construction in progress, net 1.5 1.5 Other intangible assets, net 118.0 118.0 Goodwill 154.1 0.3 154.4 Accounts payable (6.5 ) (6.5 ) Accrued expenses (4.1 ) (0.3 ) (4.4 ) Other long-term liabilities (0.7 ) (0.7 ) Net assets acquired and liabilities assumed $ 283.6 $ ā $ 283.6 Goodwill amounting to $154.4 million represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The goodwill recognized is attributable primarily to expanded revenue synergies and opportunities in the aviation and hospitality businesses, and other benefits that the Company believes will result from combining its operations with the operations of Bags. The goodwill acquired is deductible for tax purposes. Other Intangibles assets, net acquired consist of the following: (millions) Estimated Life Fair Value Trade name 5.0 Years $ 5.6 Customer relationships 12.4 - 15.8 Years 100.4 Existing technology 5.0 - 6.0 Years 10.4 Non-compete agreement 5.0 Years 1.6 Estimated fair value of identified intangibles $ 118.0 The fair value for all identifiable intangible assets is based on assumptions that market participants would use in pricing an asset, based on the most advantageous market for the asset (i.e., its highest and best use). The fair value of trade names was determined with the relief from royalty savings method, which is a commonly-used variation of the income approach. The Company considered the return on assets and market comparable methods when estimating an appropriate royalty rate for the trade names. The fair value of acquired customer relationships was determined with the excess earnings method, which is a variation of the income approach. This approach calculates the excess of the future cash inflows (i.e., revenue from customers generated from the relationships) over the related cash outflows (i.e., customer servicing expenses) generated over the useful life of the relationship. The fair value of developed or existing technology was determined utilizing the relief from royalty savings method under the income approach with additional consideration given to asset deterioration rates. Unaudited Pro forma financial information The following unaudited pro forma results of operations for the years ended December 31, 2019 and 2018 , assumes the Acquisition was completed on January 1, 2018, and as such Bags pre-acquisition results have been added to the Companyās historical results. The historical consolidated financial information of the Company and the Acquisition have been adjusted to give effect to pro forma events that are (1) directly attributable to the transaction, (2) factually supportable and (3) expected to have a continuing impact on the combined results. The pro forma results contained in the table below include adjustments for (i) amortization of acquired intangibles, (ii) reduced general and administrative expenses related to non-routine transaction expenses, (iii) increased interest expense related to the financing of the Acquisition, and (iv) estimated income tax effect. The unaudited pro forma condensed combined financial information is presented solely for informational purposes and is not necessarily indicative of the combined results of operations or financial position that might have been achieved for the periods or dates indicated, nor is it necessarily indicative of the future results of the combined company. The unaudited pro forma condensed combined financial statements do not give effect to the potential impact of any anticipated benefits from any revenue synergies, cost savings or operating synergies that may result from the Acquisition or to any disynergies and integration related costs. Also, the unaudited pro forma condensed combined financial information does not reflect possible adjustments related to potential restructuring or integration activities that have yet to be determined or transaction or other costs following the combination that are not expected to have a continuing impact on the business of the combined company. Further, one-time transaction-related expenses anticipated to be incurred prior to, or concurrent with, the closing of the transaction are not included in the unaudited pro forma condensed combined statement of income as such transaction costs were determined not to be significant. Additionally, the unaudited pro forma financial information does not reflect the costs that the company has incurred or may incur to integrate Bags. (millions) 2018 Total services revenue $ 1,617.7 Net income attributable to SP Plus Corporation 55.1 Services revenue and net income related to Bags that are included in the Consolidated Statements of Income are $175.2 million and $12.4 million in 2019 and $14.2 million and $1.3 million Acquisition, Restructuring and Integration Costs The Company has incurred certain acquisition, restructuring, and integration costs that were expensed as incurred, which include: ā¢ transaction costs and other acquisition related costs (primarily professional and advisory services) primarily related to the Acquisition (included within General and administrative expenses within the Consolidated Statements of Income); ā¢ costs (primarily severance and relocation costs) related to a series of Company initiated workforce reductions to increase organizational effectiveness and provide cost savings that can be reinvested in the Company's growth initiatives, during 2019, 2018 and 2017 (included within General and administrative expenses within the Consolidated Statements of Income); ā¢ costs related to the selling stockholders' underwritten public offerings of common stock of the Company incurred during the second quarter 2017 (included within General and administrative expenses within the Consolidated Statements of Income); and ā¢ consulting costs for integration-related activities related to the Acquisition (included within General and administrative expenses within the Consolidated Statements of Income); The aggregate costs associated with the acquisition, restructuring, and integration related costs for the years ended December 31, 2019 , 2018 and 2017 are summarized in the following table: Year Ended December 31, (millions) 2019 2018 2017 General and administrative expenses $ 1.3 $ 8.1 $ 1.2 An accrual for acquisition, restructuring and integration costs of $0.1 million (of which, $0.1 million is included in Compensation and payroll withholdings within the Consolidated Balance Sheets) and $3.3 million (of which, $1.0 million is included in Compensation and payroll withholdings, $2.1 million is included in Accrued Expenses, and $0.5 million in Other long-term liabilities within the Consolidated Balance Sheets) as of December 31, 2019 and 2018, respectively. As of December 31, 2019, all accruals for acquisition, restructuring, and integration are short term in nature. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company accounts for revenue in accordance with Topics 606 and 853. Topic 606 requires entities 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. See also Note 1. Significant Accounting Policies and Practices for further discussion. The Company adopted Topics 606 and 853 on January 1, 2018, using the modified retrospective method of adoption. Contracts with customers and clients The Company accounts for a contract when it has 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 combined or single 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: Lease type and Management type contracts. Lease type contracts Under lease type arrangements, the Company pays the property owner a fixed base rent or payment, percentage rent or payment that is tied to the facilityās 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. Performance obligations related to lease type contracts include parking for transient and monthly parkers. Revenue is recognized over time as the Company provides services. As noted in Note 1. Significant Accounting Policies and Practices and in accordance with Topic 853, certain expenses, primarily rental expense for the contractual arrangements that meet the definition of service concession arrangements, are recorded as a reduction of revenue for the year ended December 31, 2019 and 2018, respectively. Management type contracts Management type contract revenue consists of management fees, including both fixed, variable and/or performance-based fees. In exchange for this consideration, the Company has a bundle of performance obligations that include services such as managing the facilities and providing certain services to a client. The Company believes that it can generally purchase required insurance for the location at lower rates than clients can obtain on their own because the Company is effectively self-insured for all liability, workers' compensation and health care claims by maintaining a large per-claim deductible. As a result, the Company generates operating income on the insurance provided under its management type contracts by focusing on our risk management efforts and controlling losses. Management type contract revenues do not include gross customer collections at the managed facilities or for providing certain services to a client, as these revenues belong to the clients 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. Service concession arrangements Service concession agreements within the scope of Topic 853 include both lease type and management type contracts. Upon the adoption of Topic 853, revenue generated from service concession arrangements, is accounted for under the guidance of Topics 606 and Topic 853. Certain expenses (primarily rental expense) related to service concession arrangements, previously recorded within Cost of services - lease type contracts and Depreciation and amortization, have been recorded as a reduction of Services revenue - lease type contracts upon adoption of Topic 853. 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 modification either changes the consideration due to the Company or creates new performance obligations or changes the existing scope of the contract and related performance obligations. Most of our contract modifications are for services that are not distinct from the existing contract due to the fact that the Company is providing a bundle of performance obligations that are highly inter-related in the context of the contract, and are therefore accounted for as if they were part of that existing contract. Typically, modifications are accounted for prospectively as part of the existing contract. 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 The Company recognizes both revenues and expenses, in equal amounts, that are directly reimbursed operating expenses incurred under a management type contract. 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 customer. As the principal to these related transactions, the Company has control of the promised services before they are transferred to the customer. Disaggregation of revenue The Company disaggregates its revenue from contracts with customers by type of arrangement for each of our 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 20. Domestic and Foreign Operations 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 in 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 our 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 a bundle of monthly performance obligations or 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. Our performance obligations are primarily satisfied over time as the Company provides the related services. Typically, revenue is recognized over time on a straight-line basis as the Company satisfies the related performance obligation. 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. Performance obligations satisfied at a point in time for the year ended December 31, 2019 and 2018, respectively, were not significant. 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, cash is collected in advance of the Company commencing its performance obligations under the contractual arrangement. As of December 31, 2019 , the Company had $152.9 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 remaining performance obligations as revenue in future periods as follows: (millions) Remaining Performance Obligations 2020 $ 62.8 2021 39.5 2022 21.5 2023 14.2 2024 8.0 2025 and thereafter 6.9 Total $ 152.9 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. Both lease type and management 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 contract liabilities. The Company, on occasion, receives advances or deposits from customers and clients, on both lease and management type contracts, 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 Notes and accounts receivable, net and Accrued expenses, respectively, on the Consolidated Balance Sheet as of December 31, 2019 and 2018. Impairment charges related to accounts receivable for the years ended December 31, 2019 , 2018 and 2017 , were not significant. There were no impairment charges recorded on contract assets and liabilities for the years ended December 31, 2019 , 2018 and 2017 . Information about contract assets and contract liabilities with customers and clients as of December 31, 2019 and 2018 is presented below: (millions) 2019 2018 Accounts receivable $ 151.3 $ 139.3 Contract asset 11.0 11.4 Contract liability 19.4 19.1 Changes in contract assets include recognition of additional consideration due from the customer or client once the Company obtains an unconditional right to the consideration offset by reclassifications of contract asset balances to accounts receivable when the Company obtains an unconditional right to consideration, thereby establishing an accounts receivable. Information about changes to contract asset balances for the year ended December 31, 2019 and 2018 are presented below: (millions) 2019 2018 Balance as of January 1 $ 11.4 $ 12.2 Additional contract assets 11.0 11.4 Reclassification to accounts receivable (11.4 ) (12.2 ) Balance as of December 31 $ 11.0 $ 11.4 Changes in contract liability primarily include additional contract liabilities and liquidation of contract liabilities when revenue is recognized. The entire contract liability balance as of January 1, 2019 was recognized as revenue during the year ended December 31, 2019 and the Company expects the balance as of December 31, 2019 to be recognized as revenue over the next twelve months. Information about changes to contract liability balances for the year ended December 31, 2019 and 2018 are presented below: (millions) 2019 2018 Balance as of January 1 $ (19.1 ) $ (20.5 ) Additional contract liabilities (19.4 ) (19.1 ) Recognition of revenue from contract liabilities 19.1 20.5 Balance as of December 31 $ (19.4 ) $ (19.1 ) Cost of contracts, net Cost of contracts, net represents the cost of obtaining contractual rights associated with providing services for lease or management type contracts. Incremental costs incurred to obtain parking contracts are amortized on a straight line basis over the estimated life of the contracts, including anticipated renewals and terminations. This is consistent with the timing of when the Company satisfies the related performance obligations. Estimated lives are based on the contract life or anticipated lives of the contract. See Note 9. Cost of Contracts, net for amortization expense related to cost of contracts. Amortization expense of cost of contracts related to service concession arrangements within the scope of Topic 853 is recorded as a reduction of revenue and was not significant for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 and 2018 , cost of contracts net of accumulated amortization included on the Consolidated Balance Sheets was $4.3 million and $9.2 million , respectively. No impairment charges were recorded for the year ended December 31, 2019 , 2018 and 2017 Cost of contracts, net, is comprised of the following: December 31, (millions) 2019 2018 Cost of contracts $ 26.0 $ 33.8 Accumulated amortization (21.7 ) (24.6 ) Cost of contracts, net $ 4.3 $ 9.2 The expected future amortization of cost of contracts is as follows: (millions) Cost of 2020 $ 1.2 2021 0.8 2022 0.7 2023 0.6 2024 0.5 2025 and Thereafter 0.5 Total $ 4.3 The table below shows the Company's amortization expense related to costs of contracts for the years ended December 31, 2019 , 2018 and 2017 , and is primarily included in Depreciation and amortization within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Amortization expense $ 1.9 $ 3.0 $ 3.2 Weighted average life (years) 10.0 9.4 9.8 Effective January 1, 2019, cost of contracts associated with leases within the scope of ASU No. 2016-02 Leases (Topic 842) are included in the right-of-use assets balance. See Note 1. Significant Accounting Policies and Practices for the Cost of contract, net balance reclassified to right-of-use assets upon adoption of Topic 842. Additionally, see Note. 2 Leases for further discussion. |
Net Income per Common Share
Net Income per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing Net income attributable to SP Plus Corporation by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is based upon the weighted average number of shares of common stock outstanding at period end, consisting of incremental shares assumed to be issued upon exercise of stock options and the incremental shares assumed to be issued under performance share and restricted stock unit arrangements, using the treasury-stock method. A reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding is as follows: Year Ended December 31, (millions, except share and per share data) 2019 2018 2017 Net income attributable to SP Plus Corporation $ 48.8 $ 53.2 $ 41.2 Basic weighted average common shares outstanding 22,080,025 22,394,542 22,195,350 Dilutive impact of share-based awards 128,007 212,681 312,938 Diluted weighted average common shares outstanding 22,208,032 22,607,223 22,508,288 Net income per common share Basic $ 2.21 $ 2.38 $ 1.86 Diluted $ 2.20 $ 2.35 $ 1.83 For all years presented above, unvested performance share units were excluded from the computation of weighted average diluted common share outstanding because the number of shares ultimately issuable is contingent on the Company's performance goals, which were not achieved as of the reporting date. There are no additional securities that could dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share, other than those disclosed. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock-based compensation expense at the grant date, based on the estimated fair value of the award, and the expense is recognized over the requisite employee service period or performance period (generally the vesting period) for awards expected to vest. 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") that was adopted in conjunction with its initial public offering in 2004. On March 7, 2018, the Board approved an amendment and restatement of the Plan that increased the number of shares of common stock available under the Plan from 2,975,000 to 3,775,000 . Company stockholders approved the Plan amendment and restatement on May 8, 2018. Forfeited and expired options under the Plan become generally available for reissuance. At December 31, 2019 , 746,816 shares remained available for award under the Plan. Stock Grants The following is a summary of Company authorized vested stock grants to certain directors for the year ended December 31, 2019 , 2018 and 2017 . Stock-based compensation expense related to vested stock grants are included in General and administrative expenses within the Consolidated Statements of Income. Year Ended December 31, (millions, except stock grants) 2019 2018 2017 Vested stock grants 14,076 12,736 16,428 Stock-based compensation expense $ 0.5 $ 0.5 $ 0.5 Restricted Stock Units During the year ended December 31, 2019, the Company authorized certain one-time grants of 37,235 restricted stock units to certain executives that vest three years from date of issuance. The restricted stock unit agreements are designed to reward performance over a three-year period. During the year ended December 31, 2018, the Company authorized certain one-time grants of 48,663 and 8,426 restricted stock units to certain executives that vest three years and five years from date of issuance, respectively. The restricted stock unit agreements are designed to reward performance over three or five-year periods. No grants of restricted stock units were authorized during the year ended December 31, 2017. The fair value of restricted stock units is determined using the market value of the Company's common stock on the date of the grant, and compensation expense is recognized over the vesting period. A summary of the status of the restricted stock units as of December 31, 2019 , and changes during the years ended December 31, 2019 , 2018 and 2017 , are presented below: Shares Weighted Nonvested as of December 31, 2016 334,197 $ 19.45 Issued 22,000 18.25 Vested (26,399 ) 18.98 Forfeited (4,537 ) 21.92 Nonvested as of December 31, 2017 325,261 $ 19.37 Issued 57,089 35.28 Vested (173,240 ) 19.67 Forfeited (6,456 ) 21.57 Nonvested as of December 31, 2018 202,654 $ 23.53 Issued 37,235 33.61 Vested (78,469 ) 19.41 Forfeited (7,978 ) 35.35 Nonvested as of December 31, 2019 153,442 $ 27.46 The table below shows the Company's stock-based compensation expense related to the restricted stock units for the years ended December 31, 2019 , 2018 and 2017 , and is included in General and administrative expenses within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Stock-based compensation expense $ 1.1 $ 0.9 $ 0.9 Unrecognized stock-based compensation expense related to the restricted stock units and the respective weighted average periods in which the expense will be recognized for the years ended December 31, 2019 , 2018 and 2017 , is shown in the table below. Year Ended December 31, (millions) 2019 2018 2017 Unrecognized stock-based compensation $ 1.7 $ 1.8 $ 0.9 Weighted average (years) 1.8 years 2.3 years 2.1 years Performance Share Units In September 2014, the Board of Directors authorized a performance-based incentive program under the Plan ("Performance-Based Incentive Program"), whereby the Company issues performance share units to certain executive management 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 ownership of Company stock, retain executive talent, and reward executive performance. The Performance-Based Incentive Program provides participating executives with the opportunity to earn vested common stock if certain performance targets for pre-tax free cash flow are achieved over the cumulative three-year period and recipients satisfy service-based vesting requirements. The stock-based compensation expense associated with unvested performance-based incentives 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 pre-tax free cash flow over the cumulative three-year period. In March 2019, the Board of Directors authorized a performance-based incentive program under the Company's Long-Term Incentive Plan ("2019 Performance-Based Incentive Program"). The 2019 Performance-Based Incentive Program is similar to the 2017 and 2018 Performance-Based Incentive Program, with the exception of the number of shares ultimately to be issued is based on the achievement of free cash flow before cash tax and interest payments over the cumulative three-year period of 2019 through 2021. During 2019, certain participating executives became vested in 3,631 Performance-Based Incentive Program shares based on retirement eligibility. Stock-based compensation related to these shares was not significant and has been recognized in General and administrative expenses. Additionally, participating executives became vested in the Performance-Based Incentive Program shares based on meeting eligibility for vesting at the end of the three-year performance period of 2017 through 2019. As a result, 40,214 shares were vested to these participating executives as of December 31, 2019. In March 2018, the Board of Directors authorized a performance-based incentive program under the Company's Long-Term Incentive Plan ("2018 Performance-Based Incentive Program"). The 2018 Performance-Based Incentive Program is similar to the 2016 and 2017 Performance-Based Incentive Program, with the exception of the number of shares ultimately to be issued is based on the achievement of free cash flow before cash tax and interest payments over the cumulative three-year period of 2018 through 2020. During 2018, certain participating executives became vested in Performance-Based Incentive Program shares based on retirement eligibility and as a result $0.2 million of stock-based compensation related to 15,497 shares were recognized in General and administrative expenses, and which continue to be subject to achieving cumulative pre-tax free cash flow over the respective three-year periods. Additionally, participating executives became vested in the Performance-Based Incentive Program shares based on meeting eligibility for vesting at the end of the three-year performance period of 2016 through 2018. As a result, 51,160 shares were vested to these participating executives as of December 31, 2018. In March 2017, the Board of Directors authorized another performance-based incentive program under the Company's Long-Term Incentive Plan ("2017 Performance-Based Incentive Program"). The 2017 Performance-Based Incentive Program is similar to the 2016 Performance-Based Incentive Program, with the exception of the number of shares ultimately to be issued is based on the achievement of free cash flow before cash tax payments over the cumulative three-year period of 2017 through 2019. During 2017, certain participating executives became vested in Performance-Based Incentive Program shares based on retirement eligibility and as a result $0.2 million of stock-based compensation related to 7,529 shares were recognized in General and administrative expenses, and which continue to be subject to achieving cumulative pre-tax free cash flow over the respective three-year periods. Additionally, participating executives became vested in the Performance-Based Incentive Program shares based on meeting eligibility for vesting at the end of the three-year performance period of 2015 through 2017. As a result, 54,390 shares were vested to these participating executives as of December 31, 2017. A summary of the status of the performance share units as of December 31, 2019 , and changes during the years ended December 31, 2019 , 2018 and 2017 are presented below: Shares Weighted Nonvested as of December 31, 2016 159,477 $ 22.99 Issued (1) 29,494 29.51 Vested (61,919 ) 22.63 Forfeited (11,770 ) 25.86 Nonvested as of December 31, 2017 115,282 28.01 Issued (2) 55,640 36.49 Vested (66,657 ) 25.42 Forfeited (10,572 ) 29.70 Nonvested as of December 31, 2018 93,693 35.92 Issued (3) 173,594 33.80 Vested (43,845 ) 33.15 Forfeited (11,819 ) 35.13 Nonvested as of December 31, 2019 211,623 $ 34.62 (1) Includes a reduction of 59,091 shares of performance adjustments made at a weighted average grant-date fair value of $26.07 . (2) Includes a reduction of 45,075 shares of performance adjustments made at a weighted average grant-date fair value of $35.86 . (3) Includes an increase of 48,632 shares of performance adjustments made at a weighted average grant-date fair value of $36.05 . The table below shows the Company's stock-based compensation expense related to the Performance-Based Incentive Program for the years ended December 31, 2019 , 2018 and 2017 , which is included in General and administrative expenses within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Stock-based compensation expense $ 3.3 $ 1.4 $ 1.3 Future compensation expense for currently outstanding awards under the Performance-Based Incentive Program could reach a maximum of $11.3 million. Stock-based compensation for the Performance-Based Incentive Program is expected to be recognized over a weighted average period of 1.8 years |
Leasehold Improvements, Equipme
Leasehold Improvements, Equipment, Land and Construction in Progress, net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Leasehold Improvements, Equipment, Land and Construction in Progress, net | Leasehold Improvements, Equipment and Construction in Progress, net Leasehold improvements, equipment, and construction in progress and related accumulated depreciation and amortization is as follows: December 31 (millions) Ranges of Estimated Useful Life 2019 2018 Equipment 1 - 10 Years $ 45.2 $ 41.5 Software 2 - 5 Years 39.7 34.7 Vehicles 1 - 10 Years 30.0 23.6 Other 3 Years 0.6 0.6 Leasehold improvements Shorter of lease term or economic life up to 10 years 18.8 17.7 Construction in progress 6.3 4.4 140.6 122.5 Accumulated depreciation and amortization (92.7 ) (82.2 ) Leasehold improvements, equipment and construction in progress, net $ 47.9 $ 40.3 Asset additions are recorded at cost, which includes interest on significant projects. Depreciation is provided in amounts sufficient to relate the cost of depreciable assets to operations over their estimated useful lives or over the terms of the respective leases, whichever is shorter, and depreciated on the straight-line basis. Plant and equipment are reviewed for impairment when conditions indicate an impairment or future impairment; the assets are either written down or the useful life is adjusted to the remaining period of estimated useful life. The table below shows the Company's depreciation and amortization expense related to Leasehold improvements, equipment and construction in progress for the years ended December 31, 2019 , 2018 and 2017 , and is included in Depreciation and amortization expense within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Depreciation expense $ 12.8 $ 9.6 $ 11.3 |
Cost of Contracts, net
Cost of Contracts, net | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Cost of Contracts, net | Revenue The Company accounts for revenue in accordance with Topics 606 and 853. Topic 606 requires entities 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. See also Note 1. Significant Accounting Policies and Practices for further discussion. The Company adopted Topics 606 and 853 on January 1, 2018, using the modified retrospective method of adoption. Contracts with customers and clients The Company accounts for a contract when it has 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 combined or single 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: Lease type and Management type contracts. Lease type contracts Under lease type arrangements, the Company pays the property owner a fixed base rent or payment, percentage rent or payment that is tied to the facilityās 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. Performance obligations related to lease type contracts include parking for transient and monthly parkers. Revenue is recognized over time as the Company provides services. As noted in Note 1. Significant Accounting Policies and Practices and in accordance with Topic 853, certain expenses, primarily rental expense for the contractual arrangements that meet the definition of service concession arrangements, are recorded as a reduction of revenue for the year ended December 31, 2019 and 2018, respectively. Management type contracts Management type contract revenue consists of management fees, including both fixed, variable and/or performance-based fees. In exchange for this consideration, the Company has a bundle of performance obligations that include services such as managing the facilities and providing certain services to a client. The Company believes that it can generally purchase required insurance for the location at lower rates than clients can obtain on their own because the Company is effectively self-insured for all liability, workers' compensation and health care claims by maintaining a large per-claim deductible. As a result, the Company generates operating income on the insurance provided under its management type contracts by focusing on our risk management efforts and controlling losses. Management type contract revenues do not include gross customer collections at the managed facilities or for providing certain services to a client, as these revenues belong to the clients 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. Service concession arrangements Service concession agreements within the scope of Topic 853 include both lease type and management type contracts. Upon the adoption of Topic 853, revenue generated from service concession arrangements, is accounted for under the guidance of Topics 606 and Topic 853. Certain expenses (primarily rental expense) related to service concession arrangements, previously recorded within Cost of services - lease type contracts and Depreciation and amortization, have been recorded as a reduction of Services revenue - lease type contracts upon adoption of Topic 853. 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 modification either changes the consideration due to the Company or creates new performance obligations or changes the existing scope of the contract and related performance obligations. Most of our contract modifications are for services that are not distinct from the existing contract due to the fact that the Company is providing a bundle of performance obligations that are highly inter-related in the context of the contract, and are therefore accounted for as if they were part of that existing contract. Typically, modifications are accounted for prospectively as part of the existing contract. 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 The Company recognizes both revenues and expenses, in equal amounts, that are directly reimbursed operating expenses incurred under a management type contract. 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 customer. As the principal to these related transactions, the Company has control of the promised services before they are transferred to the customer. Disaggregation of revenue The Company disaggregates its revenue from contracts with customers by type of arrangement for each of our 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 20. Domestic and Foreign Operations 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 in 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 our 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 a bundle of monthly performance obligations or 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. Our performance obligations are primarily satisfied over time as the Company provides the related services. Typically, revenue is recognized over time on a straight-line basis as the Company satisfies the related performance obligation. 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. Performance obligations satisfied at a point in time for the year ended December 31, 2019 and 2018, respectively, were not significant. 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, cash is collected in advance of the Company commencing its performance obligations under the contractual arrangement. As of December 31, 2019 , the Company had $152.9 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 remaining performance obligations as revenue in future periods as follows: (millions) Remaining Performance Obligations 2020 $ 62.8 2021 39.5 2022 21.5 2023 14.2 2024 8.0 2025 and thereafter 6.9 Total $ 152.9 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. Both lease type and management 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 contract liabilities. The Company, on occasion, receives advances or deposits from customers and clients, on both lease and management type contracts, 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 Notes and accounts receivable, net and Accrued expenses, respectively, on the Consolidated Balance Sheet as of December 31, 2019 and 2018. Impairment charges related to accounts receivable for the years ended December 31, 2019 , 2018 and 2017 , were not significant. There were no impairment charges recorded on contract assets and liabilities for the years ended December 31, 2019 , 2018 and 2017 . Information about contract assets and contract liabilities with customers and clients as of December 31, 2019 and 2018 is presented below: (millions) 2019 2018 Accounts receivable $ 151.3 $ 139.3 Contract asset 11.0 11.4 Contract liability 19.4 19.1 Changes in contract assets include recognition of additional consideration due from the customer or client once the Company obtains an unconditional right to the consideration offset by reclassifications of contract asset balances to accounts receivable when the Company obtains an unconditional right to consideration, thereby establishing an accounts receivable. Information about changes to contract asset balances for the year ended December 31, 2019 and 2018 are presented below: (millions) 2019 2018 Balance as of January 1 $ 11.4 $ 12.2 Additional contract assets 11.0 11.4 Reclassification to accounts receivable (11.4 ) (12.2 ) Balance as of December 31 $ 11.0 $ 11.4 Changes in contract liability primarily include additional contract liabilities and liquidation of contract liabilities when revenue is recognized. The entire contract liability balance as of January 1, 2019 was recognized as revenue during the year ended December 31, 2019 and the Company expects the balance as of December 31, 2019 to be recognized as revenue over the next twelve months. Information about changes to contract liability balances for the year ended December 31, 2019 and 2018 are presented below: (millions) 2019 2018 Balance as of January 1 $ (19.1 ) $ (20.5 ) Additional contract liabilities (19.4 ) (19.1 ) Recognition of revenue from contract liabilities 19.1 20.5 Balance as of December 31 $ (19.4 ) $ (19.1 ) Cost of contracts, net Cost of contracts, net represents the cost of obtaining contractual rights associated with providing services for lease or management type contracts. Incremental costs incurred to obtain parking contracts are amortized on a straight line basis over the estimated life of the contracts, including anticipated renewals and terminations. This is consistent with the timing of when the Company satisfies the related performance obligations. Estimated lives are based on the contract life or anticipated lives of the contract. See Note 9. Cost of Contracts, net for amortization expense related to cost of contracts. Amortization expense of cost of contracts related to service concession arrangements within the scope of Topic 853 is recorded as a reduction of revenue and was not significant for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 and 2018 , cost of contracts net of accumulated amortization included on the Consolidated Balance Sheets was $4.3 million and $9.2 million , respectively. No impairment charges were recorded for the year ended December 31, 2019 , 2018 and 2017 Cost of contracts, net, is comprised of the following: December 31, (millions) 2019 2018 Cost of contracts $ 26.0 $ 33.8 Accumulated amortization (21.7 ) (24.6 ) Cost of contracts, net $ 4.3 $ 9.2 The expected future amortization of cost of contracts is as follows: (millions) Cost of 2020 $ 1.2 2021 0.8 2022 0.7 2023 0.6 2024 0.5 2025 and Thereafter 0.5 Total $ 4.3 The table below shows the Company's amortization expense related to costs of contracts for the years ended December 31, 2019 , 2018 and 2017 , and is primarily included in Depreciation and amortization within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Amortization expense $ 1.9 $ 3.0 $ 3.2 Weighted average life (years) 10.0 9.4 9.8 Effective January 1, 2019, cost of contracts associated with leases within the scope of ASU No. 2016-02 Leases (Topic 842) are included in the right-of-use assets balance. See Note 1. Significant Accounting Policies and Practices for the Cost of contract, net balance reclassified to right-of-use assets upon adoption of Topic 842. Additionally, see Note. 2 Leases for further discussion. |
Other Intangible Assets, net
Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets, net | Other Intangible Assets, net The following presents a summary of other intangible assets: December 31, 2019 2018 (millions) Weighted Acquired Accumulated Acquired Acquired Accumulated Acquired Covenant not to compete 2.9 $ 2.9 $ (0.3 ) $ 2.6 $ 1.6 $ ā $ 1.6 Trade names and trademarks 3.9 5.6 (1.2 ) 4.4 6.3 (0.7 ) 5.6 Proprietary know how 4.7 10.4 (2.0 ) 8.4 11.0 (0.8 ) 10.2 Management contract rights 9.0 81.0 (37.4 ) 43.6 81.0 (32.2 ) 48.8 Customer relationships 13.9 100.4 (7.2 ) 93.2 100.4 (0.6 ) 99.8 Acquired intangible assets, net (1) 11.5 $ 200.3 $ (48.1 ) $ 152.2 $ 200.3 $ (34.3 ) $ 166.0 (1) Intangible assets have estimated remaining lives between 2 and 14 years. The table below shows the amortization expense related to intangible assets for the years ended December 31, 2019 , 2018 and 2017 , and is included in Depreciation and amortization within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Amortization expense $ 15.1 $ 6.1 $ 7.2 The expected future amortization of intangible assets as of December 31, 2019 is as follows: (millions) Intangible asset 2020 $ 15.7 2021 15.7 2022 15.1 2023 14.9 2024 13.1 2025 and thereafter 77.7 Total $ 152.2 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The amounts for goodwill and changes to carrying value by reportable segment are as follows: (millions) Commercial Aviation Total Balance as of December 31, 2017 $ 369.0 $ 62.7 $ 431.7 Goodwill acquired ā 154.1 154.1 Foreign currency translation (0.3 ) ā (0.3 ) Balance as of December 31, 2018 $ 368.7 $ 216.8 $ 585.5 Purchase price adjustments ā 0.3 0.3 Foreign currency translation 0.2 ā 0.2 Balance as of December 31, 2019 $ 368.9 $ 217.1 $ 586.0 The Company tests goodwill at least annually for impairment (the Company has elected to annually test for potential impairment of goodwill on the first day of the fourth quarter) and tests more frequently if indicators are present or changes in circumstances suggest that impairment may exist. The indicators include, among others, declines in sales, earning or cash flows or the development of a material adverse change in business climate. The Company assesses goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a reporting unit. The reporting units are also its reportable segments of Commercial and Aviation. See Note 1. Significant Accounting Policies and Practices for additional detail on the Company's policy for assessing goodwill for impairment. The Company completed a quantitative test (Step One) of goodwill impairment as of October 1, 2019 and concluded that the estimated fair values of each of the Companyās reporting units exceeded its carrying amount of net assets assigned to each reporting unit and therefore no further testing was required (Step Two). In conducting the October 1, 2019 goodwill impairment quantitative test (Step One), the Company analyzed actual and projected growth trends of the reporting units, gross margin, operating expenses and Earnings Before Interest, Taxes, Depreciation and Amortization (āEBITDAā) (which also includes forecasted five-year income statement and working capital projection, a market-based weighted average cost of capital and terminal values after five years). 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. As part of the October 1, 2019 goodwill assessment, the Company engaged a third-party to evaluate its reporting unitsā fair values. No |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 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 a reporting entity's pricing based upon its own market assumptions. Applicable accounting literature defines levels within the hierarchy based on the reliability of inputs as follows: ā¢ Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. ā¢ 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. ā¢ Level 3: Inputs that are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following table sets forth the Companyās financial assets and liabilities measured at fair value on a recurring basis and the basis of measurement at December 31, 2019 and December 31, 2018 : Fair Value Measurement December 31, 2019 December 31, 2018 (millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 24.1 $ ā $ ā $ 39.9 $ ā $ ā Liabilities Accrued expenses Interest rate collars ā (0.6 ) ā ā ā ā Total $ 24.1 $ (0.6 ) $ ā $ 39.9 $ ā $ ā Interest Rate Collars The Company seeks to minimize risks from interest rate fluctuations through the use of interest rate collar contracts and hedge only exposures in the ordinary course of business. Interest rate collars are used to manage interest rate risk associated with the Company's floating rate debt. Effective May 2019, the Company entered into three zero cost interest rate collar contracts with an aggregate notional amount of $222.3 million with maturity dates of April 2022. The notional amount amortizes consistent with the term loan portion of the Senior Credit Facility. See Note 13. Borrowing Arrangements for additional disclosure on interest rate collar contract transactions . The Company accounts for its derivative instruments at fair value. Derivatives held by the Company are designated as hedges of specific exposures at inception, with an expectation that changes in the fair value will essentially offset the change in the underlying exposure. Discontinuance of hedge accounting is required whenever it is subsequently determined that an underlying transaction is not going to occur, with any gains or losses recognized in the Consolidated Statements of Income at such time, with any subsequent changes in fair value recognized currently in earnings. The fair value of interest rate collars is a Level 2 fair value measurement, based on quoted prices of similar items in active markets. The effective portion of the change in fair value of the interest rate collars is reported in Accumulated other comprehensive income and is recognized as an adjustment to interest expense or other (expense) income, respectively, over the same period the related expenses are recognized in earnings. Gains and losses from cash flow hedging instruments reclassified from Accumulated other comprehensive income to earnings are reported as Cash provided by operating activities on the Consolidated Statements of Cash Flows. The Company did not enter into derivative transactions during the year ended December 31, 2018. See Note 18. Accumulated Other Comprehensive Income (Loss) for the amount of gain (loss) recognized in Other Comprehensive loss on the interest rate collars. No gain (loss) was reclassified from Accumulated Other Comprehensive loss during the year ended December 31, 2019. No gain (loss) was recognized in income on the interest rate collars resulting from hedge ineffectiveness or exclusion from the assessment of hedge effectiveness. The following table presents summarized information about the Company's interest rate collars: Interest Rate Collars December 31, 2019 Interest Rate Parameters (millions) Maturity Date Notional Amount LIBOR Ceiling LIBOR Floor Collar 1 April 2022 $ 74.1 2.5 % 1.2 % Collar 2 April 2022 74.1 2.5 % 1.3 % Collar 3 April 2022 74.1 2.5 % 1.4 % Total $ 222.3 Nonrecurring Fair Value Measurements Certain assets are measured at fair value on a nonrecurring basis; that is, the assets are measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). Non-financial assets such as goodwill, intangible assets, and leasehold improvements, equipment and construction in progress are subsequently measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized. The Company assesses the impairment of intangible assets annually or whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. The fair value of its goodwill and intangible assets is not estimated if there is no change in events or circumstances that indicate the carrying amount of an intangible asset may not be recoverable. 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 recorded as goodwill. The Company utilizes Level 3 inputs in the determination of the initial fair value using certain assumptions, which are further discussed in Note 3. Acquisition . There were no impairment charges for the years ended December 31, 2019 , 2018 and 2017 . Financial Instruments Not Measured at Fair Value The fair value of the Restated Credit Facility and Other obligations approximates the carrying amount due to variable interest rates and would be classified as a Level 2. See Note 13. Borrowing Arrangements |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements Long-term borrowings, in order of preference, consisted of the following: Amount Outstanding December 31, (millions) Maturity Date 2019 2018 Senior Credit Facility, net of original discount on borrowings and deferred financing costs November 30, 2023 $ 345.9 $ 371.2 Other borrowings Various 23.1 15.5 Total obligations under Senior Credit Facility and other borrowings 369.0 386.7 Less: Current portion of obligations under Senior Credit Facility and other borrowings 17.9 13.2 Total long-term obligations under Senior Credit Facility and other borrowings $ 351.1 $ 373.5 Aggregate minimum principal maturities of long-term borrowings for the fiscal years following December 31, 2019 , are as follows: (millions) 2020 $ 18.7 2021 15.5 2022 14.2 2023 317.2 2024 1.1 Thereafter 5.1 Total debt 371.8 Less: Current portion, including debt discount 17.9 Less: Original discount on borrowings 1.2 Less: Deferred financing costs 1.6 Total long-term portion, obligations under credit facility and other borrowings $ 351.1 Senior Credit Facility On November 30, 2018 (the "Closing Date") and in connection with the Acquisition, the Company entered into a credit agreement (the āCredit Agreementā) with Bank of America, N.A. (āBank of Americaā), as Administrative Agent, swing-line lender and a letter of credit issuer; Wells Fargo Bank, N.A., as syndication agent; BMO Harris Bank N.A., JPMorgan Chase Bank, N.A., KeyBank National Association and U.S. Bank National Association, as co-documentation agents; Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, as joint lead arrangers and joint bookrunners; and the lenders party thereto (the āLendersā). Pursuant to the terms, and subject to the conditions, of the Credit Agreement, the Lenders made available to the Company a new senior secured credit facility (the āSenior Credit Facilityā) that permits aggregate borrowings of $550 million consisting of (i) a revolving credit facility of up to $325 million at any time outstanding, which includes a letter of credit facility that is limited to $100 million at any time outstanding, and (ii) a term loan facility of $225 million . The Senior Credit Facility matures on November 30, 2023. The entire amount of the term loan portion of the Senior Credit Facility was drawn by the Company on the Closing Date and is subject to scheduled quarterly amortization of principal in installments equal to 1.25% of the initial aggregate principal amount of such term loan. The Company also borrowed $174.8 million under the revolving credit facility on the Closing Date. The proceeds from these borrowings were used by the Company to pay the purchase price for the Acquisition (See Note 3 . Acquisition ), to pay other costs and expenses related to the Acquisition and the related financing and to repay in full the obligations under the previous credit facility. In addition, proceeds from the Senior Credit Facility may be used to finance working capital, capital expenditures and other acquisitions, payments and general corporate purposes. Borrowings under the Senior Credit Facility bear interest, at the Companyās option, (i) at a rate per annum based on the Companyās consolidated total debt to EBITDA ratio for the 12 -month period ending as of the last day of the immediately preceding fiscal quarter, determined in accordance with the applicable pricing levels set forth in the Credit Agreement (the āApplicable Marginā) for London Interbank Offered Rate (or a comparable or successor rate approved by Bank of America) (āLIBORā) loans, plus the applicable LIBOR rate or (ii) the Applicable Margin for base rate loans plus the highest of (x) the federal funds rate plus 0.5% , (y) the Bank of America prime rate and (z) a daily rate equal to the applicable LIBOR rate plus 1.0% . Under the terms of the Credit Agreement, the Company is required to maintain a maximum consolidated total debt to EBITDA ratio of not greater than 4.00 :1.0 with certain step-downs described in the Credit Agreement. In addition, the Company is required to maintain a minimum consolidated fixed charge coverage ratio of not less than 3.50 :1.0 (with certain step-ups described in the Credit Agreement). Events of default under the Credit Agreement include failure to pay principal or interest when due, failure to comply with the financial and operational covenants, the occurrence of any cross default event, non-compliance with other loan documents, the occurrence of a change of control event, and bankruptcy and other insolvency events. If an event of default occurs and is continuing, the Administrative Agent can, with the consent of the required Lenders, among others (i) terminate the commitments under the Credit Agreement, (ii) accelerate and require the Company to repay all the outstanding amounts owed under the Credit Agreement, and (iii) require the Company to cash collateralize any outstanding letters of credit. Each wholly owned domestic subsidiary of the Company (subject to certain exceptions set forth in the Credit Agreement) has guaranteed all existing and future indebtedness and liabilities of the other guarantors and the Company arising under the Credit Agreement. The Companyās obligations under the Credit Agreement and such domestic subsidiariesā guaranty obligations are secured by substantially all of their respective assets. The Company was in compliance with its debt covenants as of December 31, 2019 . At December 31, 2019, the Company had $50.2 million of letters of credit outstanding under the Senior Credit Facility, and borrowings against the Senior Credit Facility aggregated to $369.0 million . The weighted average interest rate on the Company's Senior Credit Facility and Former Restated Credit Facility was 3.4% and 4.0% for the years ended December 31, 2019 and 2018 , respectively. The rate includes all outstanding LIBOR contracts and letters of credit. The weighted average interest rate on outstanding borrowings, not including letters of credit, was 3.6% and 4.3% , respectively, at December 31, 2019 and December 31, 2018 . In connection with and effective upon the execution and delivery of the Credit Agreement on November 30, 2018, the Company recognized losses on extinguishment of debt relating to debt discount and debt issuance costs on the former credit facility. These losses were not significant. Interest Rate Collars In May 2019, the Company entered into three-year interest rate collar contracts with an aggregate $222.3 million notional amount. Interest rate collars are used to manage interest rate risk associated with variable interest rate borrowings under the Credit Agreement. The collars establish a range where the Company will pay the counterparties if the one-month U.S. dollar LIBOR rate falls below the established floor rate, and the counterparties will pay the Company if the one-month U.S. dollar LIBOR rate exceeds the established ceiling rate of 2.5% . The collars settle monthly through the termination date of April 2022. No payments or receipts are exchanged on the interest rate collar contracts unless interest rates rise above or fall below the pre-determined ceiling or floor rates. The notional amount amortizes consistent with the term loan portion of the Senior Credit Facility. These interest rate collars are classified as cash flow hedges, and the Company calculates the effectiveness of the hedge on a monthly basis. See Note 12. Fair Value Measurement for additional disclosure on interest rate collar contract transactions . As of December 31, 2018, the Company had no ongoing derivative transactions. Subordinated Convertible Debentures The Company acquired Subordinated Convertible Debentures ("Convertible Debentures") as a result of the acquisition of Central. The subordinated debenture holders have the right to redeem the Convertible Debentures for $19.18 per share upon their stated maturity (April 1, 2028) or upon acceleration or earlier repayment of the Convertible Debentures. There were no redemptions of Convertible Debentures during the years ended December 31, 2019 and 2018 , respectively. The approximate redemption value of the Convertible Debentures outstanding at December 31, 2019 and December 31, 2018 was $1.1 million for both years. |
Stock Repurchase Plan
Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stock Repurchase Plan | Stock Repurchase Program In May 2016, the Board of Directors authorized the Company to repurchase in the open market shares of the Company's outstanding common stock in an amount not to exceed $30.0 million . Under this program, the entire authorized amount was applied to repurchase 988,767 shares of common stock at an average price of $30.30 resulting in completion of the program in August 2019. No repurchases were made during the year ended December 31, 2018. In July 2019, the Board of Director's authorized a new program to repurchase, on the open market, shares of the Company's outstanding common stock in an amount not to exceed $50.0 million in aggregate. Under this program the Company repurchased 652,000 shares of common stock through December 31, 2019 , at an average price of $38.88 , resulting in $25.3 million in program-to-date repurchases. As of December 31, 2019, $24.7 million remained available for repurchase under the July 2019 stock repurchase program. Under the program, 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 time and prices considered to be appropriate at our discretion. The stock repurchase program does not obligate the Company to repurchase any particular amount of common stock and has no fixed termination date, and may be suspended at any time at the Company's discretion. The table below summarizes stock repurchase activity under the May 2016 and the July 2019 repurchase programs during the year ended December 31, 2019: (millions, except for share and per share data) December 31, 2019 Total number of stock repurchased 1,335,584 Average price paid per share $ 35.83 Total value of stock repurchased $ 47.9 The following table summarizes the remaining authorized repurchase amounts in the aggregate under the May 2016 and the July 2019 repurchase programs as of December 31, 2019: (millions) December 31, 2019 Total authorized repurchase amount $ 80.0 Total value of stock repurchased 55.3 Total remaining authorized repurchase amount $ 24.7 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Earnings before income taxes includes the following components: Year Ended December 31, (millions) 2019 2018 2017 United States $ 69.7 $ 74.9 $ 70.0 Foreign 1.4 1.1 2.2 Total $ 71.1 $ 76.0 $ 72.2 The components of income tax expense are as follows: Year Ended December 31, (millions) 2019 2018 2017 Current provision U.S. federal $ 9.6 $ 9.9 $ 21.5 Foreign 0.9 1.0 1.0 State 4.7 7.4 3.3 Total current 15.2 18.3 25.8 Deferred provision U.S. federal 2.9 1.3 2.6 Foreign (0.1 ) (0.3 ) 0.6 State 1.4 0.3 (1.3 ) Total deferred 4.2 1.3 1.9 Income tax expense $ 19.4 $ 19.6 $ 27.7 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. Components of the Company's deferred tax assets and liabilities are as follows: December 31, (millions) 2019 2018 Deferred tax assets Net operating loss carry forwards and tax credits $ 20.8 $ 21.6 Lease liability 119.5 ā Accrued expenses 15.0 17.4 Accrued compensation 9.2 7.1 Unfavorable acquired lease contracts ā 6.4 Other 1.4 0.9 Total gross deferred tax assets 165.9 53.4 Valuation allowances (8.3 ) (8.1 ) Total deferred tax assets 157.6 45.3 Deferred tax liabilities Prepaid expenses (0.1 ) (0.1 ) Right of use asset (114.9 ) ā Undistributed foreign earnings ā (0.1 ) Depreciation and amortization (0.7 ) 1.3 Goodwill amortization (26.2 ) (22.3 ) Favorable acquired lease contracts ā (4.6 ) Equity investments in unconsolidated entities (5.1 ) (4.9 ) Total deferred tax liabilities (147.0 ) (30.7 ) Net deferred tax asset $ 10.6 $ 14.6 The accounting guidance for accounting for income taxes requires that the Company 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 totaling $8.3 million and $8.1 million at December 31, 2019 and 2018 , respectively, primarily related to our state Net Operating Loss carryforwards ("NOLs"), foreign tax credits and state tax credits that the Company believes are not likely to be realized based on upon its estimates of future state taxable income, limitations on the uses of its state NOLs, and the carryforward life over which the state tax benefit is realized. As of December 31, 2019 , the Company recognized approximately $5.2 million of Canadian foreign and $6.4 million of Puerto Rico foreign earnings as permanently reinvested to meet working capital requirements in each jurisdiction. The amount of tax that may be payable on the future distribution of such earnings is approximately $0.3 million and $0.6 million of Canadian and Puerto Rico withholding taxes, respectively. No U.S. taxes will be incurred on future distributions of foreign earnings due to the participation exemption under the 2017 Tax Act. Due to the adoption of ASU 2016-09 in 2017, the Company recognized excess tax benefits of $0.5 million and $1.0 million as income tax benefit for the year ended December 31, 2019 and 2018 , respectively, and as a result of the required adoption of ASU 2016-09, the Company's effective tax rate may have increased volatility. The Company has $18.2 million of tax effected state NOLs as of December 31, 2019 , which will expire in the years 2020 through 2039. As noted above, the utilization of NOLs of the Company are limited due to the ownership change in June 2004 and due to the Central Merger. The Company adopted Topic 842 as of January 1, 2019. The Company has recorded deferred taxes to include the associated deferred tax assets and liabilities for the corresponding right of use asset and lease liability accounts. The adjustments represent a change in the deferred tax categories only and the net deferred tax asset as of January 1, 2019 remained $14.6 million . A reconciliation of the Company's reported income tax provision to the amount computed by multiplying earnings before income taxes by statutory United States federal income tax rate is as follows: Year Ended December 31, (millions) 2019 2018 2017 Tax at statutory rate $ 14.9 $ 16.0 $ 25.3 Permanent differences 0.8 0.2 0.3 State taxes, net of federal benefit 4.5 6.3 2.5 Effect of foreign tax rates 0.6 0.6 ā Effect of 2017 Tax Act ā (1.5 ) (1.0 ) Noncontrolling interest (0.6 ) (0.7 ) (1.1 ) Current year adjustment to deferred taxes 0.8 0.4 1.6 Recognition of tax credits (1.8 ) (2.7 ) (1.5 ) Other ā ā 1.1 19.2 18.6 27.2 Change in valuation allowance (1) 0.2 1.0 0.5 Income tax expense $ 19.4 $ 19.6 $ 27.7 Effective tax rate 27.3 % 25.8 % 38.4 % (1) The year ended December 31, 2017 includes $1.2 million of additional income tax expense related to an increase in the valuation allowance as a result of the 2017 Tax Act. Taxes paid were $15.3 million , $15.3 million , and $26.5 million in the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company finalized its accounting for the income tax effects of the 2017 Tax Act during the year ended December 31, 2018 and recorded a tax benefit of $1.5 million for the transition tax on the mandatory deemed repatriation of foreign earnings. The tax benefit is the result of the Company finalizing its analysis of foreign earnings and profits and eligible foreign tax credits to be claimed to offset the tax liability. The 2017 Tax Act also included a provision designed to tax Global Intangible Low Taxed Income (āGILTIā). The Company has elected the period cost method to account for any tax liability subject to GILTI. The GILTI amount recognized during the year ended December 31, 2019 was not significant. As of December 31, 2019 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, 2019 are shown below: 2016 - 2019 United States - federal income tax 2007 - 2019 United States - state and local income tax 2015 - 2019 Foreign - Canada and Puerto Rico |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Deferred Compensation Arrangements The Company offers deferred compensation arrangements for certain key executives. Subject to their continued employment by the Company, certain employees are offered supplemental pension arrangements in which the employees will receive a defined monthly benefit upon attaining age 65 . At December 31, 2019 and 2018 , the Company has accrued $3.6 million and $3.7 million , respectively, representing the present value of the future benefit payments. Expenses related to these plans amounted to $0.2 million , $0.4 million and $ nil in 2019 , 2018 and 2017 , respectively. The Company also has agreements with certain former key executives that provide for aggregate annual payments for periods ranging from 10 years to life, beginning when the executive retires or upon death or disability. Under certain conditions, the amount of deferred benefits can be reduced. Compensation cost for the year ended December 31, 2019 was $0.3 million , $0.2 million and $0.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company has recorded a liability of $2.3 million and $2.4 million associated with these agreements as of December 31, 2019 and 2018 , respectively. Life insurance contracts with a face value of approximately $5.4 million and $6.2 million as of December 31, 2019 and 2018 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 $3.8 million and $3.6 million as of December 31, 2019 and 2018 , respectively, and classified as non-current assets and included in Other assets, net within the Consolidated Balance Sheets. The plan is a non-qualified plan and is 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. Expenses related to the Company's 401(k) match amounted to $2.0 million, $2.1 million, and $2.1 million in 2019 , 2018 and 2017 , respectively. The Company also offers a non-qualified deferred compensation plan to those employees whose participation in its 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 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 liability. As of December 31, 2019 and 2018 , the cash surrender value of the COLI policies was $17.3 million and $13.0 million, respectively, and classified as non-current assets in Other Assets, net within the Consolidated Balance Sheets. The liability for the non-qualified deferred compensation plan is included in Other long-term liabilities on the Consolidated Balance Sheets and was $20.4 million and $15.0 million as of December 31, 2019 and 2018 , respectively. Multi-Employer Defined Benefit and Contribution Plans The Company contributes to a number of 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: ā¢ Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. ā¢ If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. ā¢ 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 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 for the plan year ending February 28, 2019 and November 30, 2019, respectively. The Company does not represent more than five percent to any other fund. The Company's participation in this plan for the annual periods ended December 31, 2019 , 2018 and 2017 , is outlined 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 is based on information that the Company received from the plan and is 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/Implemented" column indicates plans for which a Financial Improvement Plan ("FIP") or a Rehabilitation Plan ("RP") is either pending or has been implemented. The " Expiration Date of Collective Bargaining Agreement " column lists the expiration dates of the agreements to which the plans are subject. EIN/ Pension Protection FIP/FR Contributions (millions) Zone Expiration Pension 2019 2018 2017 2019 2018 2017 Surcharge Teamsters Local Union 727 36-61023973 Green Green Green N/A $ 3.1 $ 3.2 $ 3.4 No 2019 10/31/2021 Local 272 Labor Management 13-5673836 Green Green Green N/A $ 1.3 $ 1.5 $ 1.6 No 2019 3/5/2021 Net expenses for contributions not reimbursed by clients and related to multiemployer defined benefit and defined contribution benefit plans were $2.0 million , $2.1 million and $2.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. In the event that the Company decides to cease participating in these plans, the Company would be assessed a withdrawal liability. The Company currently does not have any intentions to cease participating in these multiemployer pension plans and therefore would not trigger the withdrawal liability. |
Bradley Agreement
Bradley Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Contractors [Abstract] | |
Bradley Agreement | Bradley Agreement The Company entered into a 25 -year agreement with the State of Connecticut ("State") that expires on April 6, 2025, under which it operates the surface parking and 3,500 garage parking spaces at Bradley International Airport ("Bradley") located in the Hartford, Connecticut metropolitan area. The parking garage was financed through the issuance of State special facility revenue bonds and provides that the Company deposits, with the trustee for the bondholders, all gross revenues collected from operations of the surface and garage parking. From these gross revenues, the trustee pays debt service on the special facility revenue bonds outstanding, operating and capital maintenance expense of the surface and garage parking facilities, and specific annual guaranteed minimum payments to the state. Principal and interest on the Bradley special facility revenue bonds increase from approximately $3.6 million in contract year 2002 to approximately $4.5 million in contract year 2025. Annual guaranteed minimum payments to the State increase from approximately $8.3 million contract year 2002 to approximately $13.2 million in contract year 2024. The annual minimum guaranteed payment to the State by the trustee for the twelve months ended December 31, 2019 and 2018 was $12.0 million and $11.8 million, respectively. All of the cash flows from the parking facilities are pledged to the security of the special facility revenue bonds and are collected and deposited with the bond trustee. Each month the bond trustee makes certain required monthly distributions, which are characterized as "Guaranteed Payments." To the extent the monthly gross receipts generated by the parking facilities are not sufficient for the trustee to make the required Guaranteed Payments, the Company is obligated to deliver the deficiency amount to the trustee, with such deficiency payments representing interest bearing advances to the trustee. The Company does not directly guarantee the payment of any principal or interest on any debt obligations of the State of Connecticut or the trustee. The following is the list of Guaranteed Payments: ā¢ Garage and surface operating expenses, ā¢ Principal and interest on the special facility revenue bonds, ā¢ Trustee expenses, ā¢ Major maintenance and capital improvement deposits, and ā¢ State minimum guarantee. To the extent sufficient funds exist, the trustee is then directed to reimburse the Company for deficiency payments up to the amount of the calculated surplus, with the Company having the right to be repaid the principal amount of any and all deficiency payments, together with actual interest and premium, not to exceed 10% of the initial deficiency payment. The Company calculates and records interest and premium income along with deficiency principal repayments as a reduction of cost of services in the period the associated deficiency repayment is received from the trustee. The Company believes these advances to be fully recoverable as the Bradley Agreement places no time restriction on the Company's right to reimbursement. The total deficiency payments, net of repayments received, as of December 31, 2019 , 2018 and 2017 were as follows: December 31, (millions) 2019 2018 2017 Balance at beginning of year $ 3.9 $ 7.8 $ 9.9 Deficiency payments made ā 0.1 0.2 Deficiency repayment received (3.8 ) (4.0 ) (2.3 ) Balance at end of year $ 0.1 $ 3.9 $ 7.8 The total deficiency repayments (net of payments made), interest and premium received and recorded for the years ended December 31, 2019 , 2018 and 2017 were as follows: Year Ended December 31 (millions) 2019 2018 2017 Deficiency repayments $ 3.8 $ 3.9 $ 2.0 Interest 1.0 0.9 0.6 Premium 0.4 0.3 0.2 Deficiency payments made are recorded as an increase in Cost of services-management type contracts and deficiency repayments, interest and premium received are recorded as reductions to cost of services. The reimbursement of principal, interest and premium is recognized when received. There were no amounts of estimated deficiency payments accrued as of December 31, 2019 or 2018 , as the Company concluded that the potential for future deficiency payments did not meet the criteria of both probable and estimable. In addition to the recovery of certain general and administrative expenses incurred, the Bradley Agreement provides for an annual management fee payment, which is based on operating profit tiers. The annual management fee is further apportioned 60% to the Company and 40% to an unaffiliated entity and the annual management fee is paid to the extent funds are available for the trustee to make distribution, and are paid after Guaranteed Payments (as defined in the Bradley Agreement) repayment of all deficiency payments, including interest and premium. Cumulative management fees of approximately $19.7 million and $18.7 million had not been recognized as of December 31, 2019 and 2018 , respectively, and no management fees were recognized as revenue during 2019 , 2018 or 2017 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) is comprised of unrealized gains (losses) on cash flow hedges and foreign currency translation adjustments. The components of changes in accumulated comprehensive income (loss), net of tax, were as follows: (millions) Foreign Effective Portion Total Balance as of December 31, 2016 $ (1.4 ) $ ā $ (1.4 ) Change in other comprehensive income 0.2 ā 0.2 Balance as of December 31, 2017 (1.2 ) ā (1.2 ) Change in other comprehensive loss (0.6 ) ā (0.6 ) Cumulative effect of change in accounting principle (1) (0.6 ) ā (0.6 ) Balance as of December 31, 2018 (2.4 ) ā (2.4 ) Change in other comprehensive income (loss) 0.1 (0.4 ) (0.3 ) Balance as of December 31, 2019 $ (2.3 ) $ (0.4 ) $ (2.7 ) (1) Refer to Note 1, Significant Accounting Policies and Practices for additional information on the Company's adoption of ASU 2018-02. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company is subject to litigation in the normal course of its business. The outcomes of legal proceedings and claims brought against it and other loss contingencies are subject to significant uncertainty. The Company accrues a charge against income when its management 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. In addition, the Company accrues for the authoritative judgments or assertions made against it by government agencies at the time of their rendering regardless of its intent to appeal. In addition, the Company is from time-to-time party to litigation, administrative proceedings and union grievances that arise in the normal course of business, and occasionally pays non-material amounts to resolve claims or alleged violations of regulatory requirements. There are no such "normal course" matters that separately or in the aggregate, would, in the opinion of management, have a material adverse effect on its results of operations, financial condition or cash flows. In determining the appropriate accounting for loss contingencies, the Company considers the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as its ability to reasonably estimate the amount of potential loss. 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 estimating the amount of a potential loss or a range of potential loss involves significant estimation and judgment. |
Domestic and Foreign Operations
Domestic and Foreign Operations | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Domestic and Foreign Operations | Domestic and Foreign Operations Business Unit Segment Information Segment information is presented in accordance with a "management approach," which designates the internal reporting used by the 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 separate financial information is available and evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and assessing the Company's overall 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 president and chief executive officer. The business is managed based on segments administered by executive vice presidents. Each of the operating segments is directly responsible for revenue and expenses related to their operations including direct segment administrative costs. Finance, information technology, human resources, and legal are shared functions that are not allocated back to the two operating segments. The CODM assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest, taxes, and depreciation and amortization, but does not evaluate operating segments using discrete asset information. There are no inter-segment transactions and the Company does not allocate interest and other income, interest expense, depreciation and amortization or taxes to operating segments. The accounting policies for segment reporting are the same as for the Company as a whole. In December 2019, the Company changed its internal reporting segment information reported to the CODM. Certain locations previously reported under Commercial are now included in Other. All prior periods presented have been reclassified to reflect the new internal reporting to the CODM. ā¢ 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 shuttle and ground transportation services, valet services, taxi and livery dispatch services and event planning, including shuttle and transportation services. ā¢ 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. ā¢ "Other" consists of ancillary revenue that is not specifically identifiable to Commercial or Aviation and certain unallocated items, such as and including prior year insurance reserve adjustments and other corporate items. [INTENTIONALLY LEFT BLANK] The following is a summary of revenues and gross profit by operating segment for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, (millions) 2019 Gross Margin Percentage 2018 (1) Gross Margin Percentage 2017 Gross Margin Percentage Services revenue Commercial Lease type contracts (2) $ 377.3 $ 386.2 $ 433.8 Management type contracts 252.9 249.4 248.1 Total Commercial 630.2 635.6 681.9 Aviation Lease type contracts (2) 30.7 27.0 129.3 Management type contracts 263.5 101.2 89.1 Total Aviation 294.2 128.2 218.4 Other Lease type contracts 0.9 0.7 ā Management type contracts 9.6 10.9 11.0 Total Other 10.5 11.6 11.0 Reimbursed management type contract revenue 728.8 693.0 679.2 Total services revenue $ 1,663.7 $ 1,468.4 $ 1,590.5 Gross Profit Commercial Lease type contracts 29.4 7.8 % 25.8 6.6 % 36.4 8.3 % Management type contracts 101.1 40.0 % 98.3 37.8 % 100.1 38.8 % Total Commercial 130.5 124.1 136.5 Aviation Lease type contracts 8.3 27.0 % 7.3 26.3 % 6.7 5.2 % Management type contracts 69.2 26.3 % 31.9 31.5 % 26.2 29.2 % Total Aviation 77.5 39.2 32.9 Other Lease type contracts 4.3 N/M 3.2 N/M 1.6 N/M Management type contracts 15.8 N/M 17.5 N/M 14.3 N/M Total Other 20.1 20.7 15.9 Total gross profit 228.1 184.0 185.3 General and administrative expenses 109.0 91.0 82.9 General and administrative 47.8 % 49.5 % 44.7 % Depreciation and amortization 29.4 17.9 21.0 Operating income 89.7 75.1 81.4 Other expenses (income): Interest expense 18.9 9.6 9.2 Interest income (0.3 ) (0.4 ) (0.6 ) Gain on sale of a business ā ā (0.1 ) Equity in (earnings) losses from ā (10.1 ) 0.7 Total other expenses (income) 18.6 (0.9 ) 9.2 Earnings before income taxes 71.1 76.0 72.2 Income tax expense 19.4 19.6 27.7 Net income 51.7 56.4 44.5 Less: Net income attributable 2.9 3.2 3.3 Net income attributable to SP Plus Corporation $ 48.8 $ 53.2 $ 41.2 (1) On November 30, 2018, we completed the Acquisition. Our consolidated operations for the year ended December 31, 2018 includes Bags operating results for the period of November 30, 2018 through December 31, 2018. Our consolidated results for the year ended December 31, 2017 does not include the operating results of Bags. See Note 3. Acquisition for additional information. (2) Includes reduction of Services revenue - lease type contracts due to the adoption of Topic 853, which required rental expense for the periods after January 1, 2018 be presented as a reduction of Services revenue - lease type contracts for that business (and corresponding contracts) that meet the criteria and definition of a service concession arrangement. See Note 5. Revenue for further discussion regarding the adoption of Topic 853. N/M - Not Meaningful |
Unaudited Quarterly Results
Unaudited Quarterly Results | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Results | Unaudited Quarterly Results The following table sets forth the Company's unaudited quarterly consolidated statement of income data for the years ended December 31, 2019 and December 31, 2018 . The unaudited quarterly information has been prepared on the same basis as the annual financial information and, in management's opinion, includes all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the information for the quarters presented. Historically, the Company's operating results have varied from quarter to quarter and are expected to continue to fluctuate in the future. These fluctuations have been due to a number of factors, including: general economic conditions in its markets; acquisitions; additions of contracts; expiration and termination of contracts; conversion of lease type contracts to management type contracts; conversion of management type contracts to lease type contracts and changes in terms of contracts that are retained and timing of general and administrative expenditures. The operating results for any historical quarter are not necessarily indicative of results for any future period. [INTENTIONALLY LEFT BLANK] 2019 2018 (millions, except for share and per share data) First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter (1) (Unaudited) (Unaudited) Services revenue Lease type contracts $ 97.8 $ 105.2 $ 104.6 $ 101.3 $ 99.5 $ 107.4 $ 104.7 $ 102.3 Management type contracts 132.9 129.9 132.6 130.6 94.4 87.7 82.6 96.8 Reimbursed management type contract revenue 178.7 179.1 181.4 189.6 172.9 167.1 174.8 178.2 Total revenue 409.4 414.2 418.6 421.5 366.8 362.2 362.1 377.3 Cost of services Lease type contracts 89.7 91.8 93.0 92.4 94.6 94.5 94.2 94.3 Management type contracts 87.8 81.4 85.5 85.2 59.9 49.5 48.1 56.3 Reimbursed management type contract expense 178.7 179.1 181.4 189.6 172.9 167.1 174.8 178.2 Total cost of services 356.2 352.3 359.9 367.2 327.4 311.1 317.1 328.8 Gross profit Lease type contracts 8.1 13.4 11.6 8.9 4.9 12.9 10.5 8.0 Management type contracts 45.1 48.5 47.1 45.4 34.5 38.2 34.5 40.5 Total gross profit 53.2 61.9 58.7 54.3 39.4 51.1 45.0 48.5 General and administrative expenses 27.1 27.7 26.0 28.2 22.3 22.3 18.7 27.7 Depreciation and amortization 7.2 7.3 7.3 7.6 4.0 4.5 4.2 5.2 Operating income 18.9 26.9 25.4 18.5 13.1 24.3 22.1 15.6 Other expense (income) Interest expense 5.0 4.9 4.8 4.2 2.1 2.2 2.1 3.2 Interest income (0.1 ) (0.1 ) (0.1 ) ā (0.1 ) (0.1 ) (0.1 ) (0.1 ) Equity in (income) losses from investment in unconsolidated entity ā ā ā ā (10.1 ) ā ā ā Total other expenses (income) 4.9 4.8 4.7 4.2 (8.1 ) 2.1 2.0 3.1 Earnings before income taxes 14.0 22.1 20.7 14.3 21.2 22.2 20.1 12.5 Income tax expense 3.1 5.8 5.7 4.8 5.3 6.0 5.6 2.7 Net income 10.9 16.3 15.0 9.5 15.9 16.2 14.5 9.8 Less: Net income attributable to noncontrolling interest 0.3 1.1 0.8 0.7 0.6 0.9 1.0 0.7 Net income attributable to SP Plus Corporation $ 10.6 $ 15.2 $ 14.2 $ 8.8 $ 15.3 $ 15.3 $ 13.5 $ 9.1 Common stock data Net income per common share (2) Basic $ 0.47 $ 0.68 $ 0.64 $ 0.41 $ 0.69 $ 0.68 $ 0.60 $ 0.40 Diluted $ 0.47 $ 0.68 $ 0.64 $ 0.41 $ 0.68 $ 0.68 $ 0.60 $ 0.40 Weighted average shares outstanding Basic 22,509,050 22,382,139 21,945,129 21,490,882 22,308,694 22,370,923 22,439,884 22,465,834 Diluted 22,667,539 22,532,213 22,038,905 21,600,568 22,557,326 22,644,884 22,626,746 22,607,102 (1) The Company began including Bags operations within its consolidated operating results on November 30, 2018. See also Note 3. Acquisition for additional information. (2) Basic and diluted net income per share are computed independently for each of the quarters presented. As a result, the sum of quarterly basic and diluted net income per share information may not equal annual basic and diluted net income per share. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE IIāVALUATION AND QUALIFYING ACCOUNTS Description Balance at Additions Reductions (1) Balance at (millions) Allowance for doubtful accounts Year ended December 31, 2019 $ 1.0 $ 2.1 $ (1.2 ) $ 1.9 Year ended December 31, 2018 0.7 1.7 (1.4 ) 1.0 Year ended December 31, 2017 0.4 0.7 (0.4 ) 0.7 Deferred tax valuation allowance Year ended December 31, 2019 $ 8.1 $ 0.2 $ ā $ 8.3 Year ended December 31, 2018 7.1 1.0 ā 8.1 Year ended December 31, 2017 6.6 0.5 ā 7.1 (1) Represents uncollectible accounts written off and reversal of provision. |
Significant Accounting Polici_2
Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. All significant intercompany profits, transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("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 functional currency of the Company's Canadian operations is the Canadian dollar. Accordingly, assets and liabilities of the Company's foreign operations are translated from foreign currencies into U.S. dollars at the rates in effect on the balance sheet date while income and expenses are translated at the weighted-average exchange rates for the year. Adjustments resulting from the translations of foreign currency financial statements are accumulated and classified as a separate component of stockholders' equity. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents represent funds temporarily invested in money market instruments with maturities of three months |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts |
Leasehold Improvements, Equipment and Construction in Progress, net | Leasehold Improvements, Equipment and Construction in Progress, net Leasehold improvements, equipment, software, vehicles, and other fixed assets are stated at cost less accumulated depreciation and amortization. Equipment is depreciated on the 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 are capitalized. Leasehold improvements are amortized on the straight-line basis over the terms of the respective leases or the service lives of the improvements, whichever is shorter (weighted average remaining life of approximately 4.6 years). Certain costs associated with directly obtaining, developing or upgrading internal-use software are capitalized and amortized over the estimated useful life of software. |
Cost of Contracts | Cost of Contracts |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill represents the excess of 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 indicate 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 its business strategy, and significant negative industry or economic trends. If the Company does not elect to perform a qualitative assessment, it can voluntarily proceed directly to Step 1. In Step 1, the Company performs a quantitative analysis to compare the fair value of the reporting unit to its carrying value including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired, and the Company's is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform Step 2 of t he impairment test in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment when circumstances change that would indicate the carrying value may not be recoverable. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. The Company evaluates the remaining useful life of the other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to the remaining useful life. Assumptions and estimates about future values and remaining useful lives of its intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors, such as changes in its business strategy and internal forecasts. Although management believes the historical assumptions and estimates are reasonable and appropriate, different assumptions and estimates could materially impact reported financial results. |
Long-Lived Assets | Long-Lived Assets The Company evaluates long-lived assets, primarily including Leasehold improvements, equipment and construction in progress, right-of use-assets and finite-lived intangible assets 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, or the planned sale or disposal of an asset. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset group. If it is determined to be impaired, the impairment recognized is measured by the amount by which the carrying value of the asset exceeds its fair value. The Company's estimates of future cash flows from such assets could be impacted if it underperforms relative to historical or projected future operating results. 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 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 an impairment charge. |
Financial Instruments | Financial Instruments |
Insurance Reserves | Insurance Reserves The Company purchases comprehensive casualty insurance covering certain claims that arise in connection with its 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 its general/garage liability, automobile, workers' compensation and garage keepers legal liability policies. As a result, the Company is, in effect, 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 Company applies the provisions as defined in the guidance related to accounting for contingencies, in determining the timing and amount of expense recognition associated with claims against the Company. 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, as defined in the guidance related to accounting for contingencies. 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 along with actuarial methods performed quarterly by a third party actuarial adviser in determining the required level of insurance reserves. As of December 31, 2019, the insurance reserve for general, garage, automobile and workersā compensation liabilities is recorded in Accrued insurance and Other long-term liabilities in the Consolidated Balance Sheets for short term and long term balances, respectively. Future information regarding historical loss experience may require changes to the level of insurance reserves and could result in increased expense recognition 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 applies the provisions as defined in the guidance related to accounting for contingencies in determining the recognition and measurement of expense recognition associated with legal claims against the Company. Management 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 of pending legal claims. |
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 on-site parking management, facility maintenance, ground transportation services, event logistics, remote airline check-in, security services, municipal meter revenue collection and enforcement services, scheduling and supervising all service personnel as well as providing customer service, marketing, and accounting and revenue control functions necessary to complete such services, 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 leased type contracts, and management fees for services, as the related services are provided. Ancillary services are earned from management contract properties 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 for operating expenses incurred under a management type contract. The Company has determined it is the principal in these transactions as the nature of our 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 transferred 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 and payroll related costs. |
Stock-Based Compensation | Stock-Based Compensation Stock-based payments to employees including grants of employee stock options, restricted stock units 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 accounts for forfeitures of stock-based awards as they occur. |
Equity Investment in Unconsolidated Entities | Equity Investment in Unconsolidated Entities The Company has ownership interests in 30 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 25 are consolidated under the VIE or voting interest models and 5 are unconsolidated where the Companyās ownership interests range from 30 - 50 |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests represent the noncontrolling holders' percentage share of income or losses from the subsidiaries in which the Company holds a majority, but less than 100 percen t, ownership interest and the results of which are consolidated and included within in our Consolidated Financial Statements. |
Income Taxes | Income Taxes Income tax expense involves management judgment as to the ultimate resolution of any tax issues. Historically, our assessments of the ultimate resolution of tax issues have been reasonably accurate. The current open issues are not dissimilar from historical items. Deferred income taxes are computed using the asset and liability method, such that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between US GAAP amounts and the tax bases 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 is the tax payable for the period plus the change during the period in deferred income taxes. The Company has certain state net operating loss carry forwards which expire in 2036. The Company considers a number of factors in its assessment of the recoverability of its net operating loss carryforwards including their expiration dates, 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 net operating losses ultimately recovered, and its assessment of their recoverability. When evaluating our tax positions, the Company accounts for uncertainty in income taxes in our 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 only 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 our 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. On December 22, 2017, the U.S. Tax Cuts and Jobs Act of 2017 (the ā2017 Tax Actā) was signed into law. The 2017 Tax Act included significant changes to the corporate income tax system in the United States, including a federal corporate rate reduction from 35% to 21% and the transition of United States international taxation from a worldwide tax system to a territorial tax system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act of 2017 (SAB 118), as issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete accounting for certain income tax effects of the 2017 Tax Act. The Company completed its analysis of the income tax effects of the 2017 Tax Act in the fourth quarter of 2018 (within the measurement period not to extend beyond one year) in accordance with SAB 118. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Topic 842 requires lessees to record most leases on the balance sheet and recognize expense on the income statement. Additionally, the classification criteria and the accounting for sales-type and direct financing leases is modified for lessors. Under Topic 842, all entities are required to recognize "right-of-use" ("ROU") assets and lease liabilities on the balance sheet for all leases classified as either operating or finance leases. Lease classification will determine recognition of lease-related revenue and expense. Since the release of Topic 842, the FASB also issued the following additional ASUs updating the topic: ā¢ In January 2018, the FASB issued ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ā¢ In July 2018, the FASB issued ASU No. 2018-11, Lease (Topic 842): Targeted Improvements ā¢ In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases ā¢ In December 2018, the FASB issued ASU No. 2018-20, Narrow Scope Improvements for Lessors ā¢ In March 2019, the FASB issued ASU No. 2019-01, Codification Improvements Topic 842 and its related ASUs were effective for interim and annual reporting periods beginning after December 15, 2018. The Company adopted the provisions of Topic 842 on January 1, 2019 under the modified retrospective approach and has used the effective date as the initial application date. Therefore, comparative periods have not been recast and continue to be reported under the accounting standards in effect for those prior periods presented. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The standard had a material impact in the Company's Consolidated Balance Sheet, but did not have a material impact in the Company's Consolidated Income Statements and no impact in the Consolidated Statements of Cash Flow. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while the Company's accounting for finance leases remained substantially unchanged. The impact of the standard on the Consolidated Balance Sheet as of December 31, 2019 is as follows: Impact of Changes in Accounting Policies as of December 31, 2019 (millions) As Reported Balances without Adoption of Topic 842 Impact of Adoption Assets Prepaid expenses and other (a) $ 24.7 $ 25.3 $ (0.6 ) Right-of-use assets (b) 431.7 ā 431.7 Favorable acquired lease contracts, net (c) ā 14.1 (14.1 ) Cost of contracts, net (d) 4.3 8.3 (4.0 ) Liabilities Accrued rent (e) $ 18.1 $ 26.8 $ (8.7 ) Short-term lease liabilities (f) 115.2 ā 115.2 Long-term lease liabilities (g) 327.7 ā 327.7 Unfavorable lease contracts, net (h) ā 19.2 (19.2 ) Other long-term liabilities (i) 57.1 61.3 (4.2 ) (a) Represents prepaid rent reclassified to Right-of-use assets (b) Represents capitalization of operating lease assets and reclassification of prepaid and deferred rent, lease incentives, favorable and unfavorable acquired lease contracts, net and cost of contract balances on operating leases (c) Represents favorable acquired lease contracts, net reclassified to Right-of-use assets (d) Represents cost of contract, net reclassified to Right-of-use assets (e) Represents short-term deferred rent reclassified to Right-of-use assets (f) Represents the recognition of short-term operating lease liabilities (g) Represents the recognition of long-term operating lease liabilities (h) Represents unfavorable acquired lease contracts, net reclassified to Right-of-use assets (i) Represents long-term deferred rent reclassified to Right-of-use assets In June 2018, the FASB issued ASU No. 2018-07, CompensationāStock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . Under existing guidance, the accounting for nonemployee share-based payments differs from that applied to employee awards, particularly with regard to the measurement date and the impact of performance conditions. This ASU provides that existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The Company adopted the standard as of January 1, 2019. The standard did not have an impact on the Companyās financial position, results of operations, cash flows or financial statement disclosures. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This Update modifies accounting guidance for hedge accounting by making more hedge strategies eligible for hedge accounting, amending presentation and disclosure requirements, and changing how companies assess ineffectiveness. The intent is to simplify the application of hedge accounting and increase transparency of information about an entityās risk management activities. The Company adopted the standard as of January 1, 2019. The standard did not have an impact on the Companyās financial position, results of operations, cash flows or financial statement disclosures. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as Benchmark Interest Rate for Hedge Accounting Purposes . This Update permits use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes. The Company adopted the standard as of January 1, 2019. The standard did not have an impact on the Companyās financial position, results of operations, cash flows or financial statement disclosures. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The ASU provides guidance that permits companies to reclassify disproportionate tax effects in accumulated other comprehensive income (AOCI) caused by the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") to retained earnings. The FASB refers to these amounts as "stranded tax effects." Companies that elect to reclassify the effects associated with the change in US federal corporate income tax rate must do so for all items within AOCI. The new guidance also required all companies to include certain new disclosures in their financial statements, regardless of whether a company opts to make the reclassification. Companies were allowed to adopt the new guidance using one of two transition methods: (1) retrospective to each period (or periods) in which the income tax effects of the 2017 Tax Act related to items remaining in AOCI are recognized, or (2) at the beginning of the period of adoption. ASU No. 2018-02 was effective for all companies for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted the provisions of ASU 2018-02 in the fourth quarter of 2018. The impact to the Company's financial position, results of operations, cash flow and financial statement disclosures are as follows: ā¢ At the beginning of the twelve months ended December 31, 2018, as allowed by ASU 2018-02, the Company elected to reclassify the "stranded tax effects" from AOCI to retained earnings. As a result, beginning retained earnings includes a $0.6 million adjustment related to the recognition of stranded tax effects previously not recognized as a reduction of expense by the Company as of December 31, 2017. ā¢ There was no significant impact to diluted weighted average shares outstanding for purposes of calculating net income per common share-diluted for the twelve months ended December 31, 2018, as a result of the adoption. Accounting Pronouncements to be Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles ā Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. The new guidance simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unitās carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. ASU No. 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests. The standard is not expected to have an impact on the Companyās financial position, results of operations, cash flows and financial statement disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace todayās āincurred lossā approach with an āexpected lossā model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. Entities will apply the standardās provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. The standard is not expected to have an impact on the Companyās financial position, results of operations, cash flows and financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles ā Goodwill and Other ā Internal - Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The standard requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification (ASC) 350-40 to determine which implementation costs to capitalize as assets. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. The standard is not expected to have an impact on the Companyās financial position, results of operations, cash flows and financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). This standard modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. The standard is not expected to have an impact on the Companyās financial position, results of operations, cash flows and financial statement disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard is effective for interim and annual reporting periods beginning after December 15, 2020. The Company is currently assessing the impact of adopting the standard on the Company's financial position, results of operations, cash flows and financial statement disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies and Practices (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The impact of the standard on the Consolidated Balance Sheet as of December 31, 2019 is as follows: Impact of Changes in Accounting Policies as of December 31, 2019 (millions) As Reported Balances without Adoption of Topic 842 Impact of Adoption Assets Prepaid expenses and other (a) $ 24.7 $ 25.3 $ (0.6 ) Right-of-use assets (b) 431.7 ā 431.7 Favorable acquired lease contracts, net (c) ā 14.1 (14.1 ) Cost of contracts, net (d) 4.3 8.3 (4.0 ) Liabilities Accrued rent (e) $ 18.1 $ 26.8 $ (8.7 ) Short-term lease liabilities (f) 115.2 ā 115.2 Long-term lease liabilities (g) 327.7 ā 327.7 Unfavorable lease contracts, net (h) ā 19.2 (19.2 ) Other long-term liabilities (i) 57.1 61.3 (4.2 ) (a) Represents prepaid rent reclassified to Right-of-use assets (b) Represents capitalization of operating lease assets and reclassification of prepaid and deferred rent, lease incentives, favorable and unfavorable acquired lease contracts, net and cost of contract balances on operating leases (c) Represents favorable acquired lease contracts, net reclassified to Right-of-use assets (d) Represents cost of contract, net reclassified to Right-of-use assets (e) Represents short-term deferred rent reclassified to Right-of-use assets (f) Represents the recognition of short-term operating lease liabilities (g) Represents the recognition of long-term operating lease liabilities (h) Represents unfavorable acquired lease contracts, net reclassified to Right-of-use assets (i) Represents long-term deferred rent reclassified to Right-of-use assets |
Schedule of Impact of this Change on the Consolidated Balance Sheet | Information about changes to contract liability balances for the year ended December 31, 2019 and 2018 are presented below: (millions) 2019 2018 Balance as of January 1 $ (19.1 ) $ (20.5 ) Additional contract liabilities (19.4 ) (19.1 ) Recognition of revenue from contract liabilities 19.1 20.5 Balance as of December 31 $ (19.4 ) $ (19.1 ) December 31, 2019 and 2018 are presented below: (millions) 2019 2018 Balance as of January 1 $ 11.4 $ 12.2 Additional contract assets 11.0 11.4 Reclassification to accounts receivable (11.4 ) (12.2 ) Balance as of December 31 $ 11.0 $ 11.4 December 31, 2019 and 2018 is presented below: (millions) 2019 2018 Accounts receivable $ 151.3 $ 139.3 Contract asset 11.0 11.4 Contract liability 19.4 19.1 |
Schedule of Impact of this Change to Gross Profit and Depreciation and Amortization | Amortization expense of cost of contracts related to service concession arrangements within the scope of Topic 853 is recorded as a reduction of revenue and was not significant for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Components of Operating and Finance Leased Assets | The components of leased assets and liabilities and classification on the Consolidated Balance Sheet as of December 31, 2019 were as follows: (millions) Classification 2019 Assets Operating Right-of-use assets $ 431.7 Finance Leasehold improvements, equipment and construction in progress, net 18.6 Total leased assets $ 450.3 Liabilities Current Operating Short-term lease liabilities $ 115.2 Finance Current portion of long-term obligations under credit facility and other long-term borrowings 3.1 Noncurrent Operating Long-term lease liabilities 327.7 Finance Other long-term borrowings 15.6 Total lease liabilities $ 461.6 |
Schedule of Components of Lease Cost | The components of lease cost and classification on the Consolidated Statement of Income for the year ended December 31, 2019 were as follows: (millions) Classification 2019 Operating lease (a) Cost of services - lease type contracts $ 150.9 Short-term lease (a) Cost of services - lease type contracts 33.1 Variable lease Cost of services - lease type contracts 58.1 Operating lease cost 242.1 Finance lease cost Amortization of leased assets Depreciation and amortization 2.3 Interest on lease liabilities Interest expense 0.9 Net lease cost $ 245.3 (a) Includes $6.0 million operating lease costs related to leases for office space, classified in General and administrative expenses |
Schedule of Finance Lease Liabilities | Maturities, lease term, and discount rate information of lease liabilities as of December 31, 2019 were as follows: (millions) Operating Finance Total 2020 $ 133.7 $ 4.0 $ 137.7 2021 104.0 4.0 108.0 2022 83.7 3.5 87.2 2023 56.8 2.5 59.3 2024 38.1 1.4 39.5 2025 and thereafter 96.9 6.0 102.9 Total lease payments 513.2 21.4 534.6 Less: Imputed interest 70.3 2.7 73.0 Present value of lease liabilities $ 442.9 $ 18.7 $ 461.6 Weighted-average remaining lease term (years) 5.6 6.9 Weighted-average discount rate 4.9 % 4.9 % |
Schedule of Operating Lease Liabilities | Maturities, lease term, and discount rate information of lease liabilities as of December 31, 2019 were as follows: (millions) Operating Finance Total 2020 $ 133.7 $ 4.0 $ 137.7 2021 104.0 4.0 108.0 2022 83.7 3.5 87.2 2023 56.8 2.5 59.3 2024 38.1 1.4 39.5 2025 and thereafter 96.9 6.0 102.9 Total lease payments 513.2 21.4 534.6 Less: Imputed interest 70.3 2.7 73.0 Present value of lease liabilities $ 442.9 $ 18.7 $ 461.6 Weighted-average remaining lease term (years) 5.6 6.9 Weighted-average discount rate 4.9 % 4.9 % |
Schedule of Lease Term and Discount Rates | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: (millions) 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows related to operating leases $ 179.0 Operating cash outflows related to finance leases 0.9 Financing cash outflows related to finance leases 2.3 Leased assets obtained in exchange for new operating liabilities 68.6 Leased assets obtained in exchange for new finance lease liabilities 6.8 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The fair values of assets acquired and liabilities assumed are as follows: (millions) Initial Measurement Period Adjustments Final Cash and cash equivalents $ 5.9 $ 5.9 Notes and accounts receivable 13.2 13.2 Prepaid expenses and other 2.0 2.0 Advances and deposits 0.2 0.2 Leasehold improvements, equipment and construction in progress, net 1.5 1.5 Other intangible assets, net 118.0 118.0 Goodwill 154.1 0.3 154.4 Accounts payable (6.5 ) (6.5 ) Accrued expenses (4.1 ) (0.3 ) (4.4 ) Other long-term liabilities (0.7 ) (0.7 ) Net assets acquired and liabilities assumed $ 283.6 $ ā $ 283.6 |
Schedule of Other Intangible Assets | Other Intangibles assets, net acquired consist of the following: (millions) Estimated Life Fair Value Trade name 5.0 Years $ 5.6 Customer relationships 12.4 - 15.8 Years 100.4 Existing technology 5.0 - 6.0 Years 10.4 Non-compete agreement 5.0 Years 1.6 Estimated fair value of identified intangibles $ 118.0 |
Schedule of Pro Forma Information | Additionally, the unaudited pro forma financial information does not reflect the costs that the company has incurred or may incur to integrate Bags. (millions) 2018 Total services revenue $ 1,617.7 Net income attributable to SP Plus Corporation 55.1 |
Acquisition, Restructuring an_2
Acquisition, Restructuring and Integration Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of acquisition related costs | Year Ended December 31, (millions) 2019 2018 2017 General and administrative expenses $ 1.3 $ 8.1 $ 1.2 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Remaining Performance Obligation | The Company expects to recognize remaining performance obligations as revenue in future periods as follows: (millions) Remaining Performance Obligations 2020 $ 62.8 2021 39.5 2022 21.5 2023 14.2 2024 8.0 2025 and thereafter 6.9 Total $ 152.9 |
Schedule of Contract with Customer, Asset and Liability | Information about changes to contract liability balances for the year ended December 31, 2019 and 2018 are presented below: (millions) 2019 2018 Balance as of January 1 $ (19.1 ) $ (20.5 ) Additional contract liabilities (19.4 ) (19.1 ) Recognition of revenue from contract liabilities 19.1 20.5 Balance as of December 31 $ (19.4 ) $ (19.1 ) December 31, 2019 and 2018 are presented below: (millions) 2019 2018 Balance as of January 1 $ 11.4 $ 12.2 Additional contract assets 11.0 11.4 Reclassification to accounts receivable (11.4 ) (12.2 ) Balance as of December 31 $ 11.0 $ 11.4 December 31, 2019 and 2018 is presented below: (millions) 2019 2018 Accounts receivable $ 151.3 $ 139.3 Contract asset 11.0 11.4 Contract liability 19.4 19.1 |
Schedule of Amortization Expense Related to Cost of Contracts | Amortization expense of cost of contracts related to service concession arrangements within the scope of Topic 853 is recorded as a reduction of revenue and was not significant for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the weighted average basic common shares outstanding to weighted average diluted common shares outstanding | A reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding is as follows: Year Ended December 31, (millions, except share and per share data) 2019 2018 2017 Net income attributable to SP Plus Corporation $ 48.8 $ 53.2 $ 41.2 Basic weighted average common shares outstanding 22,080,025 22,394,542 22,195,350 Dilutive impact of share-based awards 128,007 212,681 312,938 Diluted weighted average common shares outstanding 22,208,032 22,607,223 22,508,288 Net income per common share Basic $ 2.21 $ 2.38 $ 1.86 Diluted $ 2.20 $ 2.35 $ 1.83 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation arrangements, vested stock grants | The following is a summary of Company authorized vested stock grants to certain directors for the year ended December 31, 2019 , 2018 and 2017 . Stock-based compensation expense related to vested stock grants are included in General and administrative expenses within the Consolidated Statements of Income. Year Ended December 31, (millions, except stock grants) 2019 2018 2017 Vested stock grants 14,076 12,736 16,428 Stock-based compensation expense $ 0.5 $ 0.5 $ 0.5 |
Summary of the status of the restricted stock units and changes during the period | A summary of the status of the restricted stock units as of December 31, 2019 , and changes during the years ended December 31, 2019 , 2018 and 2017 , are presented below: Shares Weighted Nonvested as of December 31, 2016 334,197 $ 19.45 Issued 22,000 18.25 Vested (26,399 ) 18.98 Forfeited (4,537 ) 21.92 Nonvested as of December 31, 2017 325,261 $ 19.37 Issued 57,089 35.28 Vested (173,240 ) 19.67 Forfeited (6,456 ) 21.57 Nonvested as of December 31, 2018 202,654 $ 23.53 Issued 37,235 33.61 Vested (78,469 ) 19.41 Forfeited (7,978 ) 35.35 Nonvested as of December 31, 2019 153,442 $ 27.46 |
Summary of compensation expense related to restricted stock units | The table below shows the Company's stock-based compensation expense related to the restricted stock units for the years ended December 31, 2019 , 2018 and 2017 , and is included in General and administrative expenses within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Stock-based compensation expense $ 1.1 $ 0.9 $ 0.9 The table below shows the Company's stock-based compensation expense related to the Performance-Based Incentive Program for the years ended December 31, 2019 , 2018 and 2017 , which is included in General and administrative expenses within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Stock-based compensation expense $ 3.3 $ 1.4 $ 1.3 |
Summary of unrecognized compensation expense related to share based payment | Unrecognized stock-based compensation expense related to the restricted stock units and the respective weighted average periods in which the expense will be recognized for the years ended December 31, 2019 , 2018 and 2017 , is shown in the table below. Year Ended December 31, (millions) 2019 2018 2017 Unrecognized stock-based compensation $ 1.7 $ 1.8 $ 0.9 Weighted average (years) 1.8 years 2.3 years 2.1 years |
Summary of the status of the performance stock units and changes during the period | A summary of the status of the performance share units as of December 31, 2019 , and changes during the years ended December 31, 2019 , 2018 and 2017 are presented below: Shares Weighted Nonvested as of December 31, 2016 159,477 $ 22.99 Issued (1) 29,494 29.51 Vested (61,919 ) 22.63 Forfeited (11,770 ) 25.86 Nonvested as of December 31, 2017 115,282 28.01 Issued (2) 55,640 36.49 Vested (66,657 ) 25.42 Forfeited (10,572 ) 29.70 Nonvested as of December 31, 2018 93,693 35.92 Issued (3) 173,594 33.80 Vested (43,845 ) 33.15 Forfeited (11,819 ) 35.13 Nonvested as of December 31, 2019 211,623 $ 34.62 (1) Includes a reduction of 59,091 shares of performance adjustments made at a weighted average grant-date fair value of $26.07 . (2) Includes a reduction of 45,075 shares of performance adjustments made at a weighted average grant-date fair value of $35.86 . (3) Includes an increase of 48,632 shares of performance adjustments made at a weighted average grant-date fair value of $36.05 |
Leasehold Improvements, Equip_2
Leasehold Improvements, Equipment, Land and Construction in Progress, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of leasehold improvements, equipment, and construction in progress and related accumulated depreciation and amortization | Leasehold improvements, equipment, and construction in progress and related accumulated depreciation and amortization is as follows: December 31 (millions) Ranges of Estimated Useful Life 2019 2018 Equipment 1 - 10 Years $ 45.2 $ 41.5 Software 2 - 5 Years 39.7 34.7 Vehicles 1 - 10 Years 30.0 23.6 Other 3 Years 0.6 0.6 Leasehold improvements Shorter of lease term or economic life up to 10 years 18.8 17.7 Construction in progress 6.3 4.4 140.6 122.5 Accumulated depreciation and amortization (92.7 ) (82.2 ) Leasehold improvements, equipment and construction in progress, net $ 47.9 $ 40.3 The table below shows the Company's depreciation and amortization expense related to Leasehold improvements, equipment and construction in progress for the years ended December 31, 2019 , 2018 and 2017 , and is included in Depreciation and amortization expense within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Depreciation expense $ 12.8 $ 9.6 $ 11.3 |
Cost of Contracts, net (Tables)
Cost of Contracts, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of contract cost | The table below shows the Company's amortization expense related to costs of contracts for the years ended December 31, 2019 , 2018 and 2017 , and is primarily included in Depreciation and amortization within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Amortization expense $ 1.9 $ 3.0 $ 3.2 Weighted average life (years) 10.0 9.4 9.8 Effective January 1, 2019, cost of contracts associated with leases within the scope of ASU No. 2016-02 Leases (Topic 842) are included in the right-of-use assets balance. See Note 1. Significant Accounting Policies and Practices for the Cost of contract, net balance reclassified to right-of-use assets upon adoption of Topic 842. Additionally, see Note. 2 Leases for further discussion. The expected future amortization of cost of contracts is as follows: (millions) Cost of 2020 $ 1.2 2021 0.8 2022 0.7 2023 0.6 2024 0.5 2025 and Thereafter 0.5 Total $ 4.3 Cost of contracts, net, is comprised of the following: December 31, (millions) 2019 2018 Cost of contracts $ 26.0 $ 33.8 Accumulated amortization (21.7 ) (24.6 ) Cost of contracts, net $ 4.3 $ 9.2 |
Other Intangible Assets, net (T
Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets, net | The table below shows the amortization expense related to intangible assets for the years ended December 31, 2019 , 2018 and 2017 , and is included in Depreciation and amortization within the Consolidated Statements of Income. Year Ended December 31, (millions) 2019 2018 2017 Amortization expense $ 15.1 $ 6.1 $ 7.2 The following presents a summary of other intangible assets: December 31, 2019 2018 (millions) Weighted Acquired Accumulated Acquired Acquired Accumulated Acquired Covenant not to compete 2.9 $ 2.9 $ (0.3 ) $ 2.6 $ 1.6 $ ā $ 1.6 Trade names and trademarks 3.9 5.6 (1.2 ) 4.4 6.3 (0.7 ) 5.6 Proprietary know how 4.7 10.4 (2.0 ) 8.4 11.0 (0.8 ) 10.2 Management contract rights 9.0 81.0 (37.4 ) 43.6 81.0 (32.2 ) 48.8 Customer relationships 13.9 100.4 (7.2 ) 93.2 100.4 (0.6 ) 99.8 Acquired intangible assets, net (1) 11.5 $ 200.3 $ (48.1 ) $ 152.2 $ 200.3 $ (34.3 ) $ 166.0 (1) Intangible assets have estimated remaining lives between 2 and 14 years. |
Schedule of expected future amortization of intangible assets | The expected future amortization of intangible assets as of December 31, 2019 is as follows: (millions) Intangible asset 2020 $ 15.7 2021 15.7 2022 15.1 2023 14.9 2024 13.1 2025 and thereafter 77.7 Total $ 152.2 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of amounts for goodwill and changes to carrying value by operating segment | The amounts for goodwill and changes to carrying value by reportable segment are as follows: (millions) Commercial Aviation Total Balance as of December 31, 2017 $ 369.0 $ 62.7 $ 431.7 Goodwill acquired ā 154.1 154.1 Foreign currency translation (0.3 ) ā (0.3 ) Balance as of December 31, 2018 $ 368.7 $ 216.8 $ 585.5 Purchase price adjustments ā 0.3 0.3 Foreign currency translation 0.2 ā 0.2 Balance as of December 31, 2019 $ 368.9 $ 217.1 $ 586.0 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of companyās financial assets and liabilities measured at fair value on a recurring basis and the basis of measurement | The following table sets forth the Companyās financial assets and liabilities measured at fair value on a recurring basis and the basis of measurement at December 31, 2019 and December 31, 2018 : Fair Value Measurement December 31, 2019 December 31, 2018 (millions) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 24.1 $ ā $ ā $ 39.9 $ ā $ ā Liabilities Accrued expenses Interest rate collars ā (0.6 ) ā ā ā ā Total $ 24.1 $ (0.6 ) $ ā $ 39.9 $ ā $ ā |
Schedule of interest rate collars | The following table presents summarized information about the Company's interest rate collars: Interest Rate Collars December 31, 2019 Interest Rate Parameters (millions) Maturity Date Notional Amount LIBOR Ceiling LIBOR Floor Collar 1 April 2022 $ 74.1 2.5 % 1.2 % Collar 2 April 2022 74.1 2.5 % 1.3 % Collar 3 April 2022 74.1 2.5 % 1.4 % Total $ 222.3 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term borrowings | Long-term borrowings, in order of preference, consisted of the following: Amount Outstanding December 31, (millions) Maturity Date 2019 2018 Senior Credit Facility, net of original discount on borrowings and deferred financing costs November 30, 2023 $ 345.9 $ 371.2 Other borrowings Various 23.1 15.5 Total obligations under Senior Credit Facility and other borrowings 369.0 386.7 Less: Current portion of obligations under Senior Credit Facility and other borrowings 17.9 13.2 Total long-term obligations under Senior Credit Facility and other borrowings $ 351.1 $ 373.5 |
Schedule of aggregate minimum principal maturities of long-term debt | Aggregate minimum principal maturities of long-term borrowings for the fiscal years following December 31, 2019 , are as follows: (millions) 2020 $ 18.7 2021 15.5 2022 14.2 2023 317.2 2024 1.1 Thereafter 5.1 Total debt 371.8 Less: Current portion, including debt discount 17.9 Less: Original discount on borrowings 1.2 Less: Deferred financing costs 1.6 Total long-term portion, obligations under credit facility and other borrowings $ 351.1 |
Stock Repurchase Plan (Tables)
Stock Repurchase Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of treasury stock by class | The table below summarizes stock repurchase activity under the May 2016 and the July 2019 repurchase programs during the year ended December 31, 2019: (millions, except for share and per share data) December 31, 2019 Total number of stock repurchased 1,335,584 Average price paid per share $ 35.83 Total value of stock repurchased $ 47.9 The following table summarizes the remaining authorized repurchase amounts in the aggregate under the May 2016 and the July 2019 repurchase programs as of December 31, 2019: (millions) December 31, 2019 Total authorized repurchase amount $ 80.0 Total value of stock repurchased 55.3 Total remaining authorized repurchase amount $ 24.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components income before income taxes | arnings before income taxes includes the following components: Year Ended December 31, (millions) 2019 2018 2017 United States $ 69.7 $ 74.9 $ 70.0 Foreign 1.4 1.1 2.2 Total $ 71.1 $ 76.0 $ 72.2 |
Schedule of components of income tax expense (benefit) | The components of income tax expense are as follows: Year Ended December 31, (millions) 2019 2018 2017 Current provision U.S. federal $ 9.6 $ 9.9 $ 21.5 Foreign 0.9 1.0 1.0 State 4.7 7.4 3.3 Total current 15.2 18.3 25.8 Deferred provision U.S. federal 2.9 1.3 2.6 Foreign (0.1 ) (0.3 ) 0.6 State 1.4 0.3 (1.3 ) Total deferred 4.2 1.3 1.9 Income tax expense $ 19.4 $ 19.6 $ 27.7 |
Schedule of significant components of the Company's deferred tax assets and liabilities | Components of the Company's deferred tax assets and liabilities are as follows: December 31, (millions) 2019 2018 Deferred tax assets Net operating loss carry forwards and tax credits $ 20.8 $ 21.6 Lease liability 119.5 ā Accrued expenses 15.0 17.4 Accrued compensation 9.2 7.1 Unfavorable acquired lease contracts ā 6.4 Other 1.4 0.9 Total gross deferred tax assets 165.9 53.4 Valuation allowances (8.3 ) (8.1 ) Total deferred tax assets 157.6 45.3 Deferred tax liabilities Prepaid expenses (0.1 ) (0.1 ) Right of use asset (114.9 ) ā Undistributed foreign earnings ā (0.1 ) Depreciation and amortization (0.7 ) 1.3 Goodwill amortization (26.2 ) (22.3 ) Favorable acquired lease contracts ā (4.6 ) Equity investments in unconsolidated entities (5.1 ) (4.9 ) Total deferred tax liabilities (147.0 ) (30.7 ) Net deferred tax asset $ 10.6 $ 14.6 |
Schedule of reconciliation of the Company's reported income tax provision (benefit) to the amount computed by multiplying book income/(loss) before income taxes by the statutory United States federal income tax rate | A reconciliation of the Company's reported income tax provision to the amount computed by multiplying earnings before income taxes by statutory United States federal income tax rate is as follows: Year Ended December 31, (millions) 2019 2018 2017 Tax at statutory rate $ 14.9 $ 16.0 $ 25.3 Permanent differences 0.8 0.2 0.3 State taxes, net of federal benefit 4.5 6.3 2.5 Effect of foreign tax rates 0.6 0.6 ā Effect of 2017 Tax Act ā (1.5 ) (1.0 ) Noncontrolling interest (0.6 ) (0.7 ) (1.1 ) Current year adjustment to deferred taxes 0.8 0.4 1.6 Recognition of tax credits (1.8 ) (2.7 ) (1.5 ) Other ā ā 1.1 19.2 18.6 27.2 Change in valuation allowance (1) 0.2 1.0 0.5 Income tax expense $ 19.4 $ 19.6 $ 27.7 Effective tax rate 27.3 % 25.8 % 38.4 % (1) The year ended December 31, 2017 includes $1.2 million of additional income tax expense related to an increase in the valuation allowance as a result of the 2017 Tax Act. |
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, 2019 are shown below: 2016 - 2019 United States - federal income tax 2007 - 2019 United States - state and local income tax 2015 - 2019 Foreign - Canada and Puerto Rico |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of participation in multiemployer defined benefit pension plans | The " Expiration Date of Collective Bargaining Agreement " column lists the expiration dates of the agreements to which the plans are subject. EIN/ Pension Protection FIP/FR Contributions (millions) Zone Expiration Pension 2019 2018 2017 2019 2018 2017 Surcharge Teamsters Local Union 727 36-61023973 Green Green Green N/A $ 3.1 $ 3.2 $ 3.4 No 2019 10/31/2021 Local 272 Labor Management 13-5673836 Green Green Green N/A $ 1.3 $ 1.5 $ 1.6 No 2019 3/5/2021 |
Bradley Agreement (Tables)
Bradley Agreement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Contractors [Abstract] | |
Schedule of deficiency payments made, net of reimbursements | The total deficiency payments, net of repayments received, as of December 31, 2019 , 2018 and 2017 were as follows: December 31, (millions) 2019 2018 2017 Balance at beginning of year $ 3.9 $ 7.8 $ 9.9 Deficiency payments made ā 0.1 0.2 Deficiency repayment received (3.8 ) (4.0 ) (2.3 ) Balance at end of year $ 0.1 $ 3.9 $ 7.8 The total deficiency repayments (net of payments made), interest and premium received and recorded for the years ended December 31, 2019 , 2018 and 2017 were as follows: Year Ended December 31 (millions) 2019 2018 2017 Deficiency repayments $ 3.8 $ 3.9 $ 2.0 Interest 1.0 0.9 0.6 Premium 0.4 0.3 0.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Components of accumulated other comprehensive income (loss), net of tax | The components of changes in accumulated comprehensive income (loss), net of tax, were as follows: (millions) Foreign Effective Portion Total Balance as of December 31, 2016 $ (1.4 ) $ ā $ (1.4 ) Change in other comprehensive income 0.2 ā 0.2 Balance as of December 31, 2017 (1.2 ) ā (1.2 ) Change in other comprehensive loss (0.6 ) ā (0.6 ) Cumulative effect of change in accounting principle (1) (0.6 ) ā (0.6 ) Balance as of December 31, 2018 (2.4 ) ā (2.4 ) Change in other comprehensive income (loss) 0.1 (0.4 ) (0.3 ) Balance as of December 31, 2019 $ (2.3 ) $ (0.4 ) $ (2.7 ) (1) Refer to Note 1, Significant Accounting Policies and Practices for additional information on the Company's adoption of ASU 2018-02. |
Domestic and Foreign Operatio_2
Domestic and Foreign Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of revenues (excluding reimbursed management contract revenue) and gross profit by operating segment | The following is a summary of revenues and gross profit by operating segment for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, (millions) 2019 Gross Margin Percentage 2018 (1) Gross Margin Percentage 2017 Gross Margin Percentage Services revenue Commercial Lease type contracts (2) $ 377.3 $ 386.2 $ 433.8 Management type contracts 252.9 249.4 248.1 Total Commercial 630.2 635.6 681.9 Aviation Lease type contracts (2) 30.7 27.0 129.3 Management type contracts 263.5 101.2 89.1 Total Aviation 294.2 128.2 218.4 Other Lease type contracts 0.9 0.7 ā Management type contracts 9.6 10.9 11.0 Total Other 10.5 11.6 11.0 Reimbursed management type contract revenue 728.8 693.0 679.2 Total services revenue $ 1,663.7 $ 1,468.4 $ 1,590.5 Gross Profit Commercial Lease type contracts 29.4 7.8 % 25.8 6.6 % 36.4 8.3 % Management type contracts 101.1 40.0 % 98.3 37.8 % 100.1 38.8 % Total Commercial 130.5 124.1 136.5 Aviation Lease type contracts 8.3 27.0 % 7.3 26.3 % 6.7 5.2 % Management type contracts 69.2 26.3 % 31.9 31.5 % 26.2 29.2 % Total Aviation 77.5 39.2 32.9 Other Lease type contracts 4.3 N/M 3.2 N/M 1.6 N/M Management type contracts 15.8 N/M 17.5 N/M 14.3 N/M Total Other 20.1 20.7 15.9 Total gross profit 228.1 184.0 185.3 General and administrative expenses 109.0 91.0 82.9 General and administrative 47.8 % 49.5 % 44.7 % Depreciation and amortization 29.4 17.9 21.0 Operating income 89.7 75.1 81.4 Other expenses (income): Interest expense 18.9 9.6 9.2 Interest income (0.3 ) (0.4 ) (0.6 ) Gain on sale of a business ā ā (0.1 ) Equity in (earnings) losses from ā (10.1 ) 0.7 Total other expenses (income) 18.6 (0.9 ) 9.2 Earnings before income taxes 71.1 76.0 72.2 Income tax expense 19.4 19.6 27.7 Net income 51.7 56.4 44.5 Less: Net income attributable 2.9 3.2 3.3 Net income attributable to SP Plus Corporation $ 48.8 $ 53.2 $ 41.2 (1) On November 30, 2018, we completed the Acquisition. Our consolidated operations for the year ended December 31, 2018 includes Bags operating results for the period of November 30, 2018 through December 31, 2018. Our consolidated results for the year ended December 31, 2017 does not include the operating results of Bags. See Note 3. Acquisition for additional information. (2) Includes reduction of Services revenue - lease type contracts due to the adoption of Topic 853, which required rental expense for the periods after January 1, 2018 be presented as a reduction of Services revenue - lease type contracts for that business (and corresponding contracts) that meet the criteria and definition of a service concession arrangement. See Note 5. Revenue for further discussion regarding the adoption of Topic 853. N/M - Not Meaningful |
Unaudited Quarterly Results (Ta
Unaudited Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly results | 2019 2018 (millions, except for share and per share data) First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter (1) (Unaudited) (Unaudited) Services revenue Lease type contracts $ 97.8 $ 105.2 $ 104.6 $ 101.3 $ 99.5 $ 107.4 $ 104.7 $ 102.3 Management type contracts 132.9 129.9 132.6 130.6 94.4 87.7 82.6 96.8 Reimbursed management type contract revenue 178.7 179.1 181.4 189.6 172.9 167.1 174.8 178.2 Total revenue 409.4 414.2 418.6 421.5 366.8 362.2 362.1 377.3 Cost of services Lease type contracts 89.7 91.8 93.0 92.4 94.6 94.5 94.2 94.3 Management type contracts 87.8 81.4 85.5 85.2 59.9 49.5 48.1 56.3 Reimbursed management type contract expense 178.7 179.1 181.4 189.6 172.9 167.1 174.8 178.2 Total cost of services 356.2 352.3 359.9 367.2 327.4 311.1 317.1 328.8 Gross profit Lease type contracts 8.1 13.4 11.6 8.9 4.9 12.9 10.5 8.0 Management type contracts 45.1 48.5 47.1 45.4 34.5 38.2 34.5 40.5 Total gross profit 53.2 61.9 58.7 54.3 39.4 51.1 45.0 48.5 General and administrative expenses 27.1 27.7 26.0 28.2 22.3 22.3 18.7 27.7 Depreciation and amortization 7.2 7.3 7.3 7.6 4.0 4.5 4.2 5.2 Operating income 18.9 26.9 25.4 18.5 13.1 24.3 22.1 15.6 Other expense (income) Interest expense 5.0 4.9 4.8 4.2 2.1 2.2 2.1 3.2 Interest income (0.1 ) (0.1 ) (0.1 ) ā (0.1 ) (0.1 ) (0.1 ) (0.1 ) Equity in (income) losses from investment in unconsolidated entity ā ā ā ā (10.1 ) ā ā ā Total other expenses (income) 4.9 4.8 4.7 4.2 (8.1 ) 2.1 2.0 3.1 Earnings before income taxes 14.0 22.1 20.7 14.3 21.2 22.2 20.1 12.5 Income tax expense 3.1 5.8 5.7 4.8 5.3 6.0 5.6 2.7 Net income 10.9 16.3 15.0 9.5 15.9 16.2 14.5 9.8 Less: Net income attributable to noncontrolling interest 0.3 1.1 0.8 0.7 0.6 0.9 1.0 0.7 Net income attributable to SP Plus Corporation $ 10.6 $ 15.2 $ 14.2 $ 8.8 $ 15.3 $ 15.3 $ 13.5 $ 9.1 Common stock data Net income per common share (2) Basic $ 0.47 $ 0.68 $ 0.64 $ 0.41 $ 0.69 $ 0.68 $ 0.60 $ 0.40 Diluted $ 0.47 $ 0.68 $ 0.64 $ 0.41 $ 0.68 $ 0.68 $ 0.60 $ 0.40 Weighted average shares outstanding Basic 22,509,050 22,382,139 21,945,129 21,490,882 22,308,694 22,370,923 22,439,884 22,465,834 Diluted 22,667,539 22,532,213 22,038,905 21,600,568 22,557,326 22,644,884 22,626,746 22,607,102 (1) The Company began including Bags operations within its consolidated operating results on November 30, 2018. See also Note 3. Acquisition for additional information. (2) Basic and diluted net income per share are computed independently for each of the quarters presented. As a result, the sum of quarterly basic and diluted net income per share information may not equal annual basic and diluted net income per share. |
Significant Accounting Polici_4
Significant Accounting Policies and Practices - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Aug. 31, 2015USD ($) | Oct. 31, 2014 | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)voting_interest_model_entityvariable_interest_entitypartnership | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Jan. 03, 2018USD ($) | |
Significant Accounting Policies [Line Items] | ||||||||
Cash and cash equivalents restricted to withdrawals | $ 500,000 | $ 1,700,000 | ||||||
Allowance for doubtful accounts | 1,900,000 | 1,000,000 | ||||||
Impairment loss as a result of goodwill | $ 0 | 0 | $ 0 | |||||
Forecasted period for income statement and working capital projections to assess goodwill impairment | 5 years | |||||||
Book overdrafts | $ 29,300,000 | 34,000,000 | ||||||
Gain on sale of equity method Investee | 8,500,000 | |||||||
Equity earnings in related investments | 3,200,000 | 2,700,000 | 11,300,000 | |||||
Cash received from sale of a business, net of cash disposed | 0 | 0 | 600,000 | |||||
Right-of-use assets | $ 431,700,000 | 0 | ||||||
Discontinued Operations, Disposed of by Sale | Parkmobile | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Sale price of business | $ 19,000,000 | |||||||
Gain on sale of business | $ 10,100,000 | |||||||
Discontinued Operations, Disposed of by Sale | Security Business | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Sale price of business | $ 1,800,000 | |||||||
Gain on sale of business | $ 500,000 | |||||||
Cash received from sale of a business, net of cash disposed | $ 1,000,000 | |||||||
Period of cash consideration to be received | 18 months | |||||||
Contingent consideration receivable from sale of business | 600,000 | $ 500,000 | ||||||
Additional earn out consideration | $ 100,000 | |||||||
Minimum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Voting interest ownership percentage (in percentage) | 30.00% | |||||||
Maximum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Voting interest ownership percentage (in percentage) | 50.00% | |||||||
Equipment | Minimum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ranges of estimated useful life | 1 year | |||||||
Equipment | Maximum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ranges of estimated useful life | 10 years | |||||||
Leasehold improvements | Maximum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ranges of estimated useful life | 10 years | |||||||
Leasehold improvements | Average | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ranges of estimated useful life | 4 years 7 months 6 days | |||||||
Partnerships and joint ventures | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Number of ownership interest entities (number of partnerships) | partnership | 30 | |||||||
Variable Interest Entity, Primary Beneficiary | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Number of ownership interest entities (number of partnerships) | variable_interest_entity | 25 | |||||||
Variable Interest Entity, Not Primary Beneficiary | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Number of ownership interest entities (number of partnerships) | voting_interest_model_entity | 5 | |||||||
Accounting Standards Update 2018-02 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Tax Cuts and Jobs Act, reclassification from AOCI to retained earnings, tax effect | $ 600,000 | |||||||
Parkmobile, LLC | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage (in percentage) | 30.00% |
Significant Accounting Polici_5
Significant Accounting Policies and Practices - Schedule of Impact of New Accounting Standard on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Prepaid expenses and other | $ 24.7 | $ 17.2 |
Right-of-use assets | 431.7 | 0 |
Favorable acquired lease contracts, net | 0 | 17.6 |
Cost of contracts, net | 4.3 | 9.2 |
Liabilities [Abstract] | ||
Accrued rent | 18.1 | 23.5 |
Short-term lease liabilities | 115.2 | 0 |
Long-term lease liabilities | 327.7 | 0 |
Unfavorable acquired lease contracts, net | 0 | 24.7 |
Other long-term liabilities | 57.1 | $ 58.6 |
Balances without Adoption of Topic 842 | ||
Assets | ||
Prepaid expenses and other | 25.3 | |
Right-of-use assets | 0 | |
Favorable acquired lease contracts, net | 14.1 | |
Cost of contracts, net | 8.3 | |
Liabilities [Abstract] | ||
Accrued rent | 26.8 | |
Short-term lease liabilities | 0 | |
Long-term lease liabilities | 0 | |
Unfavorable acquired lease contracts, net | 19.2 | |
Other long-term liabilities | 61.3 | |
Impact of Adoption Increase/(Decrease) | Accounting Standards Update 2016-02 | ||
Assets | ||
Prepaid expenses and other | (0.6) | |
Right-of-use assets | 431.7 | |
Favorable acquired lease contracts, net | (14.1) | |
Cost of contracts, net | (4) | |
Liabilities [Abstract] | ||
Accrued rent | (8.7) | |
Short-term lease liabilities | 115.2 | |
Long-term lease liabilities | 327.7 | |
Unfavorable acquired lease contracts, net | (19.2) | |
Other long-term liabilities | $ (4.2) |
Leases - Schedule of Components
Leases - Schedule of Components of Operating and Finance Leased Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Right-of-use assets | $ 431.7 | $ 0 |
Leasehold improvements, equipment and construction in progress, net | 18.6 | |
Total leased assets | 450.3 | |
Current | ||
Short-term lease liabilities | 115.2 | 0 |
Current portion of long-term obligations under credit facility and other long-term borrowings | 3.1 | |
Noncurrent | ||
Long-term lease liabilities | 327.7 | $ 0 |
Other long-term borrowings | 15.6 | |
Total lease liabilities | $ 461.6 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 150.9 |
Short-term lease cost | 33.1 |
Variable lease cost | 58.1 |
Operating lease cost | 242.1 |
Depreciation and amortization | 2.3 |
Interest expense | 0.9 |
Net lease cost | 245.3 |
Sublease income | 5.5 |
General and administrative expenses | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 6 |
Leases - Schedule of Short Term
Leases - Schedule of Short Term and Variable Lease Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Short-term lease cost | $ 33.1 |
Variable lease cost | $ 58.1 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 133.7 |
2021 | 104 |
2022 | 83.7 |
2023 | 56.8 |
2024 | 38.1 |
2025 and thereafter | 96.9 |
Total lease payments | 513.2 |
Less: Imputed interest | 70.3 |
Present value of lease liabilities | $ 442.9 |
Weighted-average remaining lease term (years) | 5 years 7 months 6 days |
Weighted-average discount rate | 4.90% |
Finance Leases | |
2020 | $ 4 |
2021 | 4 |
2022 | 3.5 |
2023 | 2.5 |
2024 | 1.4 |
2025 and thereafter | 6 |
Total lease payments | 21.4 |
Less: Imputed interest | 2.7 |
Present value of lease liabilities | $ 18.7 |
Weighted-average remaining lease term (years) | 6 years 10 months 24 days |
Weighted-average discount rate | 4.90% |
Total | |
2020 | $ 137.7 |
2021 | 108 |
2022 | 87.2 |
2023 | 59.3 |
2024 | 39.5 |
2025 and thereafter | 102.9 |
Total lease payments | 534.6 |
Less: Imputed interest | 73 |
Present value of lease liabilities | $ 461.6 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Term and Discount Rates (Details) | Dec. 31, 2019 |
Weighted-average remaining lease term (years) | |
Operating Leases Liabilities | 5 years 7 months 6 days |
Finance Leases Liabilities | 6 years 10 months 24 days |
Weighted-average discount rate | |
Operating Leases Liabilities | 4.90% |
Finance Leases Liabilities | 4.90% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash outflows related to operating leases | $ 179 |
Operating cash outflows related to finance leases | 0.9 |
Financing cash outflows related to finance leases | 2.3 |
Leased assets obtained in exchange for new operating liabilities | 68.6 |
Leased assets obtained in exchange for new finance lease liabilities | $ 6.8 |
Acquisition - Narrative (Detai
Acquisition - Narrative (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 586 | $ 585.5 | $ 431.7 | |
Bags | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 283.6 | |||
Cash purchase price | 275 | |||
Amount paid at close to preliminary net working capital | 8.1 | |||
Amount of individual taxes to be paid by seller | 0.5 | |||
Goodwill | 154.4 | |||
Revenue since acquisition | 175.2 | 14.2 | ||
Net income since acquisition | $ 12.4 | $ 1.3 | ||
As adjusted November 30, 2018 | Bags | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 0.3 |
Acquisition, Restructuring an_3
Acquisition, Restructuring and Integration Costs - Schedule of Acquisition Related Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Central Merger | General and administrative expenses | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 1.3 | $ 8.1 | $ 1.2 |
Acquisition - Assets Acquired
Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 586 | $ 585.5 | $ 431.7 | |
Bags | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 5.9 | |||
Notes and accounts receivable | 13.2 | |||
Prepaid expenses and other | 2 | |||
Advances and deposits | 0.2 | |||
Leasehold improvements, equipment and construction in progress, net | 1.5 | |||
Other intangible assets, net | 118 | |||
Goodwill | 154.4 | |||
Accounts payable | (6.5) | |||
Accrued expenses | (4.4) | |||
Other long-term liabilities | (0.7) | |||
Net assets acquired and liabilities assumed | 283.6 | |||
Measurement Period Adjustments | Bags | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 5.9 | |||
Notes and accounts receivable | 13.2 | |||
Prepaid expenses and other | 2 | |||
Advances and deposits | 0.2 | |||
Leasehold improvements, equipment and construction in progress, net | 1.5 | |||
Other intangible assets, net | 118 | |||
Goodwill | 154.1 | |||
Accounts payable | (6.5) | |||
Accrued expenses | (4.1) | |||
Other long-term liabilities | (0.7) | |||
Net assets acquired and liabilities assumed | 283.6 | |||
Final | Bags | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 0.3 | |||
Accrued expenses | (0.3) | |||
Net assets acquired and liabilities assumed | $ 0 |
Acquisition, Restructuring an_4
Acquisition, Restructuring and Integration Costs - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Restructuring reserve | $ 0.1 | $ 3.3 |
Compensation and payroll withholdings | ||
Business Acquisition [Line Items] | ||
Restructuring reserve | $ 0.1 | 1 |
Accrued expenses | ||
Business Acquisition [Line Items] | ||
Restructuring reserve | 2.1 | |
Other noncurrent liabilities | ||
Business Acquisition [Line Items] | ||
Restructuring reserve | $ 0.5 |
Acquisition - Intangible Asset
Acquisition - Intangible Assets (Details) - Bags $ in Millions | Nov. 30, 2018USD ($) |
Business Acquisition [Line Items] | |
Fair Value | $ 118 |
Trade name | |
Business Acquisition [Line Items] | |
Estimated life | 5 years |
Fair Value | $ 5.6 |
Customer relationships | |
Business Acquisition [Line Items] | |
Fair Value | 100.4 |
Existing technology | |
Business Acquisition [Line Items] | |
Fair Value | $ 10.4 |
Non-compete agreement | |
Business Acquisition [Line Items] | |
Estimated life | 5 years |
Fair Value | $ 1.6 |
Minimum | Customer relationships | |
Business Acquisition [Line Items] | |
Estimated life | 12 years 4 months 24 days |
Minimum | Existing technology | |
Business Acquisition [Line Items] | |
Estimated life | 5 years |
Maximum | Customer relationships | |
Business Acquisition [Line Items] | |
Estimated life | 15 years 9 months 18 days |
Maximum | Existing technology | |
Business Acquisition [Line Items] | |
Estimated life | 6 years |
Acquisition - Pro Forma Informa
Acquisition - Pro Forma Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Business Combinations [Abstract] | |
Total services revenue | $ 1,617.7 |
Net income attributable to SP Plus Corporation | $ 55.1 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Remaining Performance Obligations | $ 152,900,000 | ||
Contract cost net of accumulated amortization | 4,300,000 | $ 9,200,000 | |
Capitalized cost, impairment | $ 0 | $ 0 | $ 0 |
Revenue - Schedule of Performa
Revenue - Schedule of Performance Obligation (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining Performance Obligations | $ 152.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining Performance Obligations | $ 62.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining Performance Obligations | $ 39.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining Performance Obligations | $ 21.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining Performance Obligations | $ 14.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining Performance Obligations | $ 8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
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 from Contract with Customer [Abstract] | |
Remaining Performance Obligations | $ 6.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Asset and Liability (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable | $ 151.3 | $ 139.3 | |
Contract asset | 11 | 11.4 | $ 12.2 |
Contract liability | $ (19.4) | $ (19.1) | $ (20.5) |
Revenue - Schedule of Contra_2
Revenue - Schedule of Contract Asset Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract Asset Balances with Customer [Roll Forward] | ||
Balance as of January 1 | $ 11.4 | $ 12.2 |
Additional contract assets | 11 | 11.4 |
Reclassification to accounts receivable | 11.4 | 12.2 |
Balance as of December 31 | $ 11 | $ 11.4 |
Revenue - Schedule of Contra_3
Revenue - Schedule of Contract Liability Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract Liability Balances with Customer [Roll Forward] | ||
Balance as of January 1 | $ (19.1) | $ (20.5) |
Additional contract liabilities | (19.4) | (19.1) |
Recognition of revenue from contract liabilities | (19.1) | (20.5) |
Balance as of December 31 | $ (19.4) | $ (19.1) |
Revenue - Schedule of Amortiza
Revenue - Schedule of Amortization Expense Related to Cost of Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Amortization expense related to cost of contract | $ 1.9 | $ 3 | $ 3.2 |
Net Income per Common Share (De
Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to SP Plus Corporation | $ 8.8 | $ 14.2 | $ 15.2 | $ 10.6 | $ 9.1 | $ 13.5 | $ 15.3 | $ 15.3 | $ 48.8 | $ 53.2 | $ 41.2 |
Basic weighted average common shares outstanding (in shares) | 21,490,882 | 21,945,129 | 22,382,139 | 22,509,050 | 22,465,834 | 22,439,884 | 22,370,923 | 22,308,694 | 22,080,025 | 22,394,542 | 22,195,350 |
Dilutive impact of share-based awards (in shares) | 128,007 | 212,681 | 312,938 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 21,600,568 | 22,038,905 | 22,532,213 | 22,667,539 | 22,607,102 | 22,626,746 | 22,644,884 | 22,557,326 | 22,208,032 | 22,607,223 | 22,508,288 |
Net income per common share | |||||||||||
Basic (in dollars per share) | $ 0.41 | $ 0.64 | $ 0.68 | $ 0.47 | $ 0.40 | $ 0.60 | $ 0.68 | $ 0.69 | $ 2.21 | $ 2.38 | $ 1.86 |
Diluted (in dollars per share) | $ 0.41 | $ 0.64 | $ 0.68 | $ 0.47 | $ 0.40 | $ 0.60 | $ 0.68 | $ 0.68 | $ 2.20 | $ 2.35 | $ 1.83 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 |
Stock-Based Compensation - Nar
Stock-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | 20 Months Ended | 36 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Mar. 07, 2018 | Mar. 06, 2018 | |
Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, authorized in period (in shares) | 37,235 | |||||||||
Restricted stock units awarded (in shares) | 37,235 | 57,089 | 22,000 | |||||||
Stock-based compensation expense | $ 1,100,000 | $ 900,000 | $ 900,000 | |||||||
Vested (in shares) | 78,469 | 173,240 | 26,399 | |||||||
Weighted average remaining recognition period of unrecognized stock-based compensation costs (in years) | 1 year 9 months 18 days | 2 years 3 months 18 days | 2 years 1 month 6 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 33.61 | $ 35.28 | $ 18.25 | |||||||
Performance Shares | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock units awarded (in shares) | 173,594 | 55,640 | 29,494 | |||||||
Vesting period | 3 years | 3 years | 3 years | |||||||
Stock-based compensation expense | $ 3,300,000 | $ 1,400,000 | $ 1,300,000 | |||||||
Vested (in shares) | 43,845 | 66,657 | 61,919 | |||||||
Weighted average remaining recognition period of unrecognized stock-based compensation costs (in years) | 1 year 9 months 18 days | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 33.80 | $ 36.49 | $ 29.51 | |||||||
Performance Shares | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Performance Shares | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 5 years | |||||||||
Unrecognized compensation costs related to unvested options | $ 11,300,000 | $ 11,300,000 | ||||||||
Performance Shares Adjustments | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock units awarded (in shares) | 48,632 | 45,075 | 59,091 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 36.05 | $ 35.86 | $ 26.07 | |||||||
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) | 3,775,000 | 2,975,000 | ||||||||
Shares remaining available for awards (in shares) | 746,816 | 746,816 | ||||||||
Long-term incentive plan | Stock Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 0 | 0 | ||||||||
Stock-based compensation expense not recognized by employer | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Executive Officer | Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock units awarded (in shares) | 0 | |||||||||
Vesting period | 3 years | |||||||||
Executive Officer | Performance Shares | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | |||
Stock-based compensation expense | $ 200,000 | $ 200,000 | ||||||||
Shares recognized in period (in shares) | 15,497 | 7,529 | ||||||||
Vested (in shares) | 51,160 | 54,390 | ||||||||
Executive Officer | Long-term incentive plan | Retirement eligibility | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vested (in shares) | 3,631 | |||||||||
Executive Officer | Long-term incentive plan | Performance Shares | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Vested (in shares) | 40,214 | |||||||||
Tranche 1 | Executive Officer | Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock units awarded (in shares) | 48,663 | |||||||||
Vesting period | 3 years | |||||||||
Tranche 1 | Executive Officer | Restricted Stock Units | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Tranche 1 | Executive Officer | Restricted Stock Units | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 5 years | |||||||||
Tranche 2 | Executive Officer | Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted stock units awarded (in shares) | 8,426 | |||||||||
Vesting period | 5 years |
Stock-Based Compensation - Sch
Stock-Based Compensation - Schedule of Vested Stock Grants (Details) - Directors - Stock Options - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested stock grants (in shares) | 14,076 | 12,736 | 16,428 |
Stock-based compensation expense | $ 0.5 | $ 0.5 | $ 0.5 |
Stock-Based Compensation - Res
Stock-Based Compensation - Restricted and Performance Stock Units Rollforward (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units | |||
Shares | |||
Nonvested at the beginning of the period (in shares) | 202,654 | 325,261 | 334,197 |
Issued (in shares) | 37,235 | 57,089 | 22,000 |
Vested (in shares) | (78,469) | (173,240) | (26,399) |
Forfeited (in shares) | (7,978) | (6,456) | (4,537) |
Nonvested at the end of the period (in shares) | 153,442 | 202,654 | 325,261 |
Weighted Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 23.53 | $ 19.37 | $ 19.45 |
Issued (in dollars per share) | 33.61 | 35.28 | 18.25 |
Vested (in dollars per share) | 19.41 | 19.67 | 18.98 |
Forfeited (in dollars per share) | 35.35 | 21.57 | 21.92 |
Nonvested at the end of the period (in dollars per share) | $ 27.46 | $ 23.53 | $ 19.37 |
Performance Shares | |||
Shares | |||
Nonvested at the beginning of the period (in shares) | 93,693 | 115,282 | 159,477 |
Issued (in shares) | 173,594 | 55,640 | 29,494 |
Vested (in shares) | (43,845) | (66,657) | (61,919) |
Forfeited (in shares) | (11,819) | (10,572) | (11,770) |
Nonvested at the end of the period (in shares) | 211,623 | 93,693 | 115,282 |
Weighted Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 35.92 | $ 28.01 | $ 22.99 |
Issued (in dollars per share) | 33.80 | 36.49 | 29.51 |
Vested (in dollars per share) | 33.15 | 25.42 | 22.63 |
Forfeited (in dollars per share) | 35.13 | 29.70 | 25.86 |
Nonvested at the end of the period (in dollars per share) | $ 34.62 | $ 35.92 | $ 28.01 |
Performance Shares Adjustments | |||
Shares | |||
Issued (in shares) | 48,632 | 45,075 | 59,091 |
Weighted Average Grant-Date Fair Value | |||
Issued (in dollars per share) | $ 36.05 | $ 35.86 | $ 26.07 |
Stock-Based Compensation - S_2
Stock-Based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1.1 | $ 0.9 | $ 0.9 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 3.3 | $ 1.4 | $ 1.3 |
Stock-Based Compensation - S_3
Stock-Based Compensation - Schedule of Unrecognized Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average (years) | 1 year 9 months 18 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation | $ 1.7 | $ 1.8 | $ 0.9 |
Weighted average (years) | 1 year 9 months 18 days | 2 years 3 months 18 days | 2 years 1 month 6 days |
Leasehold Improvements, Equip_3
Leasehold Improvements, Equipment, Land and Construction in Progress, net - Schedule of Leasehold Improvements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Leasehold improvements, equipment and construction in progress, gross | $ 140.6 | $ 122.5 |
Accumulated depreciation and amortization | (92.7) | (82.2) |
Leasehold improvements, equipment and construction in progress, net | 47.9 | 40.3 |
Equipment | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Leasehold improvements, equipment and construction in progress, gross | $ 45.2 | 41.5 |
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 | ||
Leasehold improvements, equipment and construction in progress, gross | $ 39.7 | 34.7 |
Software | Minimum | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, net | ||
Ranges of estimated useful life | 2 years | |
Software | Maximum | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, net | ||
Ranges of estimated useful life | 5 years | |
Vehicles | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Leasehold improvements, equipment and construction in progress, gross | $ 30 | 23.6 |
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 | ||
Ranges of estimated useful life | 3 years | |
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Leasehold improvements, equipment and construction in progress, gross | $ 0.6 | 0.6 |
Leasehold improvements | ||
Leasehold Improvements, Equipment, Land and Construction in Progress, Net | ||
Leasehold improvements, equipment and construction in progress, gross | $ 18.8 | 17.7 |
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 | ||
Leasehold improvements, equipment and construction in progress, gross | $ 6.3 | $ 4.4 |
Leasehold Improvements, Equip_4
Leasehold Improvements, Equipment, Land and Construction in Progress, net - Schedule of Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 12.8 | $ 9.6 | $ 11.3 |
Cost of Contracts, net - Summa
Cost of Contracts, net - Summary of Cost of Contracts (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Cost of contracts | $ 26 | $ 33.8 |
Accumulated amortization | (21.7) | (24.6) |
Cost of contracts, net | $ 4.3 | $ 9.2 |
Cost of Contracts, net - Sched
Cost of Contracts, net - Schedule of Future Amortization (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
2020 | $ 1.2 | |
2021 | 0.8 | |
2022 | 0.7 | |
2023 | 0.6 | |
2024 | 0.5 | |
2025 and Thereafter | 0.5 | |
Cost of contracts, net | $ 4.3 | $ 9.2 |
Cost of Contracts, net - Amort
Cost of Contracts, net - Amortization Expense Related Cost of Contracts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Amortization expense | $ 1.9 | $ 3 | $ 3.2 |
Weighted average life (years) | 10 years | 9 years 4 months 24 days | 9 years 9 months 18 days |
Other Intangible Assets, net -
Other Intangible Assets, net - Summary of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 11 years 6 months | |
Acquired Intangible Assets, Gross | $ 200.3 | $ 200.3 |
Accumulated Amortization | (48.1) | (34.3) |
Acquired Intangible Assets, Net | $ 152.2 | 166 |
Covenant not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 2 years 10 months 24 days | |
Acquired Intangible Assets, Gross | $ 2.9 | 1.6 |
Accumulated Amortization | (0.3) | 0 |
Acquired Intangible Assets, Net | $ 2.6 | 1.6 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 3 years 10 months 24 days | |
Acquired Intangible Assets, Gross | $ 5.6 | 6.3 |
Accumulated Amortization | (1.2) | (0.7) |
Acquired Intangible Assets, Net | $ 4.4 | 5.6 |
Proprietary know how | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 4 years 8 months 12 days | |
Acquired Intangible Assets, Gross | $ 10.4 | 11 |
Accumulated Amortization | (2) | (0.8) |
Acquired Intangible Assets, Net | $ 8.4 | 10.2 |
Management contract rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 9 years | |
Acquired Intangible Assets, Gross | $ 81 | 81 |
Accumulated Amortization | (37.4) | (32.2) |
Acquired Intangible Assets, Net | $ 43.6 | 48.8 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 13 years 10 months 24 days | |
Acquired Intangible Assets, Gross | $ 100.4 | 100.4 |
Accumulated Amortization | (7.2) | (0.6) |
Acquired Intangible Assets, Net | $ 93.2 | $ 99.8 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 2 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 14 years |
Other Intangible Assets, net _2
Other Intangible Assets, net - Schedule of Future Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 15.1 | $ 6.1 | $ 7.2 |
Expected future amortization of intangible assets | |||
2020 | 15.7 | ||
2021 | 15.7 | ||
2022 | 15.1 | ||
2023 | 14.9 | ||
2024 | 13.1 | ||
2025 and thereafter | 77.7 | ||
Acquired Intangible Assets, Net | $ 152.2 | $ 166 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment loss as a result of goodwill | $ 0 | $ 0 | $ 0 |
Goodwill [Roll Forward] | |||
Balance at the beginning of the period | 585,500,000 | 431,700,000 | |
Goodwill acquired | 154,100,000 | ||
Purchase price adjustments | 300,000 | ||
Foreign currency translation | 200,000 | (300,000) | |
Balance at the end of the period | 586,000,000 | 585,500,000 | 431,700,000 |
Commercial | |||
Goodwill [Roll Forward] | |||
Balance at the beginning of the period | 368,700,000 | 369,000,000 | |
Goodwill acquired | 0 | ||
Purchase price adjustments | 0 | ||
Foreign currency translation | 200,000 | (300,000) | |
Balance at the end of the period | 368,900,000 | 368,700,000 | 369,000,000 |
Aviation | |||
Goodwill [Roll Forward] | |||
Balance at the beginning of the period | 216,800,000 | 62,700,000 | |
Goodwill acquired | 154,100,000 | ||
Purchase price adjustments | 300,000 | ||
Foreign currency translation | 0 | 0 | |
Balance at the end of the period | $ 217,100,000 | $ 216,800,000 | $ 62,700,000 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Company's Financial Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | $ 24.1 | $ 39.9 |
Liabilities | ||
Interest rate collars | 0 | 0 |
Total | 24.1 | 39.9 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Liabilities | ||
Interest rate collars | (0.6) | 0 |
Total | (0.6) | 0 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Liabilities | ||
Interest rate collars | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | May 31, 2019USD ($)contract | |
Fair Value Measurement | ||||
Notional amount | $ 222,300,000 | |||
Impairment loss as a result of goodwill | 0 | $ 0 | $ 0 | |
Interest rate contract | ||||
Fair Value Measurement | ||||
Interest rate collar contracts | contract | 3 | |||
Notional amount | $ 222,300,000 | |||
Gain (loss) reclassified from accumulated other comprehensive loss | 0 | |||
Impairment charges | $ 0 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Interest Rate Collars (Details) $ in Millions | Dec. 31, 2019USD ($) |
Derivative [Line Items] | |
Notional Amount | $ 222.3 |
Collar 1 | |
Derivative [Line Items] | |
Notional Amount | $ 74.1 |
LIBOR ceiling (in percentage) | 2.50% |
LIBOR Floor (in percentage) | 1.20% |
Collar 2 | |
Derivative [Line Items] | |
Notional Amount | $ 74.1 |
LIBOR ceiling (in percentage) | 2.50% |
LIBOR Floor (in percentage) | 1.30% |
Collar 3 | |
Derivative [Line Items] | |
Notional Amount | $ 74.1 |
LIBOR ceiling (in percentage) | 2.50% |
LIBOR Floor (in percentage) | 1.40% |
Borrowing Arrangements - Long-
Borrowing Arrangements - Long-Term Borrowings Table (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total obligations under Senior Credit Facility and other borrowings | $ 369 | $ 386.7 |
Less: Current portion of obligations under Senior Credit Facility and other borrowings | 17.9 | 13.2 |
Total long-term obligations under Senior Credit Facility and other borrowings | 351.1 | 373.5 |
Senior Credit Facility, net of original discount on borrowings and deferred financing costs | ||
Debt Instrument [Line Items] | ||
Total obligations under Senior Credit Facility and other borrowings | 345.9 | 371.2 |
Other borrowings | ||
Debt Instrument [Line Items] | ||
Total obligations under Senior Credit Facility and other borrowings | $ 23.1 | $ 15.5 |
Borrowing Arrangements - Princ
Borrowing Arrangements - Principal Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Future minimum payments of total long-term debt | ||
2020 | $ 18.7 | |
2021 | 15.5 | |
2022 | 14.2 | |
2023 | 317.2 | |
2024 | 1.1 | |
Thereafter | 5.1 | |
Total debt | 371.8 | |
Less: Current portion of obligations under Senior Credit Facility and other borrowings | 17.9 | $ 13.2 |
Less: Original discount on borrowings | 1.2 | |
Less: Deferred financing costs | 1.6 | |
Total long-term portion, obligations under credit facility and other borrowings | $ 351.1 | $ 373.5 |
Borrowing Arrangements - Addit
Borrowing Arrangements - Additional Information (Details) - USD ($) | Feb. 20, 2015 | May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 |
Debt Instrument [Line Items] | |||||
Notional amount | $ 222,300,000 | ||||
Redemption value of convertible debentures outstanding | 1,100,000 | $ 1,100,000 | |||
Senior Credit Facility, net of original discount on borrowings and deferred financing costs | |||||
Debt Instrument [Line Items] | |||||
Amount of senior credit facility aggregated | $ 369,000,000 | ||||
Weighted average interest rate on senior credit facility (in percentage) | 3.60% | 4.30% | |||
Convertible debentures | |||||
Debt Instrument [Line Items] | |||||
Redemption price (in USD per share) | $ 19.18 | ||||
Debt redemptions | $ 0 | $ 0 | |||
Restated credit agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 550,000,000 | ||||
Percentage of scheduled quarterly amortization (in percentage) | 1.25% | ||||
Restated credit agreement | Senior Credit Facility, net of original discount on borrowings and deferred financing costs | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 174,800,000 | 325,000,000 | |||
Letters of credit outstanding | $ 50,200,000 | ||||
Restated credit agreement | Letter of credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 100,000,000 | ||||
Restated credit agreement | Term loan facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 225,000,000 | ||||
Restated credit agreement | Maximum | Senior Credit Facility, net of original discount on borrowings and deferred financing costs | |||||
Debt Instrument [Line Items] | |||||
Total debt to EBITDA ratio that is required to be maintained (less than) | 4 | ||||
Restated credit agreement | Minimum | Senior Credit Facility, net of original discount on borrowings and deferred financing costs | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio that is required to be maintained | 3.50 | ||||
Restated credit agreement | LIBOR Loans | Senior Credit Facility, net of original discount on borrowings and deferred financing costs | |||||
Debt Instrument [Line Items] | |||||
Period of total debt to EBITDA ratio | 12 months | ||||
Restated credit agreement | Base rate loans | Senior Credit Facility, net of original discount on borrowings and deferred financing costs | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin on variable rate basis (in percentage) | 0.50% | ||||
Restated credit agreement | Base rate loans | Senior Credit Facility, net of original discount on borrowings and deferred financing costs | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin on variable rate basis (in percentage) | 1.00% | ||||
Senior credit facility | Senior Credit Facility, net of original discount on borrowings and deferred financing costs | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate on senior credit facility (in percentage) | 3.40% | 4.00% | |||
Interest rate contract | |||||
Debt Instrument [Line Items] | |||||
Derivative term of contract | 3 years | ||||
Notional amount | $ 222,300,000 | ||||
LIBOR ceiling (in percentage) | 2.50% |
Stock Repurchase Plan - Repurc
Stock Repurchase Plan - Repurchase Activity (Details) - USD ($) | 12 Months Ended | 40 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2019 | May 31, 2016 | |
Equity [Abstract] | ||||
Total number of stock repurchased | 1,335,584 | 0 | 988,767 | |
Total value of shares repurchased | $ 35.83 | $ 30.30 | ||
Total remaining authorized repurchase amount | $ 47,900,000 | |||
Total authorized repurchase amount | $ 80,000,000 | $ 30,000,000 | ||
Total value of stock repurchased | 55,300,000 | |||
Total remaining authorized repurchase amount | $ 24,700,000 |
Stock Repurchase Plan - Narrat
Stock Repurchase Plan - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended | 40 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2019 | Jul. 31, 2019 | May 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Total authorized repurchase amount | $ 80,000,000 | $ 30,000,000 | ||||
Common stock purchased under share repurchase program (in shares) | 1,335,584 | 0 | 988,767 | |||
Average Cost Per Common Stock (in USD per share) | $ 35.83 | $ 30.30 | ||||
Total value of stock repurchased | $ 55,300,000 | $ 55,300,000 | ||||
Total remaining authorized repurchase amount | $ 24,700,000 | 24,700,000 | ||||
July 2019 Share Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Total authorized repurchase amount | $ 50,000,000 | |||||
Common stock purchased under share repurchase program (in shares) | 652,000 | |||||
Average Cost Per Common Stock (in USD per share) | $ 38.88 | |||||
Total value of stock repurchased | $ 25,300,000 | $ 25,300,000 |
Income Taxes - Income Tax Comp
Income Taxes - Income Tax Components (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of income before taxes | |||||||||||
United States | $ 69.7 | $ 74.9 | $ 70 | ||||||||
Foreign | 1.4 | 1.1 | 2.2 | ||||||||
Earnings before income taxes | $ 14.3 | $ 20.7 | $ 22.1 | $ 14 | $ 12.5 | $ 20.1 | $ 22.2 | $ 21.2 | 71.1 | 76 | 72.2 |
Current provision | |||||||||||
U.S. federal | 9.6 | 9.9 | 21.5 | ||||||||
Foreign | 0.9 | 1 | 1 | ||||||||
State | 4.7 | 7.4 | 3.3 | ||||||||
Total current | 15.2 | 18.3 | 25.8 | ||||||||
Deferred provision | |||||||||||
U.S. federal | 2.9 | 1.3 | 2.6 | ||||||||
Foreign | (0.1) | (0.3) | 0.6 | ||||||||
State | 1.4 | 0.3 | (1.3) | ||||||||
Total deferred | 4.2 | 1.3 | 1.9 | ||||||||
Income tax (benefit) expense | $ 4.8 | $ 5.7 | $ 5.8 | $ 3.1 | $ 2.7 | $ 5.6 | $ 6 | $ 5.3 | $ 19.4 | $ 19.6 | $ 27.7 |
Income Taxes - Schedule of Def
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Deferred tax assets | |||
Net operating loss carry forwards and tax credits | $ 20.8 | $ 21.6 | |
Lease liability | 119.5 | 0 | |
Accrued expenses | 15 | 17.4 | |
Accrued compensation | 9.2 | 7.1 | |
Unfavorable acquired lease contracts | 6.4 | ||
Other | 1.4 | 0.9 | |
Total gross deferred tax assets | 165.9 | 53.4 | |
Valuation allowances | (8.3) | (8.1) | |
Total deferred tax assets | 157.6 | 45.3 | |
Deferred tax liabilities | |||
Prepaid expenses | (0.1) | (0.1) | |
Right of use asset | 114.9 | 0 | |
Undistributed foreign earnings | 0 | (0.1) | |
Depreciation and amortization | (0.7) | 1.3 | |
Goodwill amortization | (26.2) | (22.3) | |
Goodwill amortization | (4.6) | ||
Equity investments in unconsolidated entities | (5.1) | (4.9) | |
Total deferred tax liabilities | (147) | (30.7) | |
Net deferred tax asset | $ 10.6 | $ 14.6 | $ 14.6 |
Income Taxes - Additional Info
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Income Taxes | ||||
Current tax benefit for transition tax | $ 1.5 | |||
Valuation allowance | 8.3 | $ 8.1 | ||
Change in valuation allowance | (0.2) | (1) | $ (0.5) | |
Excess tax benefit from tax cuts and jobs act | 0 | (1.5) | (1) | |
Deferred tax assets | 10.6 | 14.6 | $ 14.6 | |
Income taxes, net | 15.3 | 15.3 | $ 26.5 | |
Canada | ||||
Income Taxes | ||||
Foreign subsidiary earnings permanently reinvested to satisfy current working capital requirements | 5.2 | |||
Tax that may be payable on distribution of foreign subsidiary earnings to the United States | 0.3 | |||
Puerto Rico | ||||
Income Taxes | ||||
Foreign subsidiary earnings permanently reinvested to satisfy current working capital requirements | 6.4 | |||
Tax that may be payable on distribution of foreign subsidiary earnings to the United States | 0.6 | |||
State | ||||
Income Taxes | ||||
Operating loss carryforwards, amount | 18.2 | |||
Accounting Standards Update 2016-09 | ||||
Income Taxes | ||||
Excess tax benefit from tax cuts and jobs act | $ (0.5) | $ (1) |
Income Taxes - Effective Tax R
Income Taxes - Effective Tax Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 14.9 | $ 16 | $ 25.3 | ||||||||
Permanent differences | 0.8 | 0.2 | 0.3 | ||||||||
State taxes, net of federal benefit | 4.5 | 6.3 | 2.5 | ||||||||
Effect of foreign tax rates | 0.6 | 0.6 | 0 | ||||||||
Effect of 2017 Tax Act | 0 | (1.5) | (1) | ||||||||
Noncontrolling interest | (0.6) | (0.7) | (1.1) | ||||||||
Current year adjustment to deferred taxes | 0.8 | 0.4 | 1.6 | ||||||||
Recognition of tax credits | (1.8) | (2.7) | (1.5) | ||||||||
Other | 0 | 0 | 1.1 | ||||||||
Income tax expense before change in valuation allowance | 19.2 | 18.6 | 27.2 | ||||||||
Change in valuation allowance | 0.2 | 1 | 0.5 | ||||||||
Income tax (benefit) expense | $ 4.8 | $ 5.7 | $ 5.8 | $ 3.1 | $ 2.7 | $ 5.6 | $ 6 | $ 5.3 | $ 19.4 | $ 19.6 | $ 27.7 |
Effective tax rate | 27.30% | 25.80% | 38.40% | ||||||||
Income tax expense related to increase in valuation allowance | $ 1.2 |
Benefit Plans - Deferred Compe
Benefit Plans - Deferred Compensation Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental pension arrangements for key executives | |||
Benefit Plans | |||
Employee's eligibility age to receive a defined monthly benefit | 65 years | ||
Accrual for present value of future benefit payments | $ 3.6 | $ 3.7 | |
Expenses related to the plan | 0.2 | 0.4 | $ 0 |
Deferred benefits for certain former key executives | Central | |||
Benefit Plans | |||
Accrual for present value of future benefit payments | 2.3 | 2.4 | |
Expenses related to the plan | $ 0.3 | 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 | $ 5.4 | 6.2 | |
Cash surrender value of life insurance contracts | $ 3.8 | $ 3.6 |
Benefit Plans - Savings and Re
Benefit Plans - Savings and Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Benefit Plans | |||
Expenses related to the savings and retirement plan | $ 2 | $ 2.1 | $ 2.1 |
Savings And Retirement 401K Plan | |||
Benefit Plans | |||
Employer match of first tier of employee contributions (in percentage) | 50.00% | ||
First tier percentage of compensation eligible for match by employer | 6.00% |
Benefit Plans - Non-qualified
Benefit Plans - Non-qualified Deferred Compensation Plans (Details) - Non-qualified deferred compensation plan - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Benefit Plans | ||
Maximum annual contribution an employee is permitted to defer | $ 100,000 | |
Cash surrender value of the Company owned life insurance ("COLI") policies | 17,300,000 | $ 13,000,000 |
Deferred compensation liability | $ 20,400,000 | $ 15,000,000 |
Benefit Plans - Multiemployer
Benefit Plans - Multiemployer Defined Benefit Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Multiemployer plans | |||
Expenses for contributions not reimbursed by clients and related to multiemployer defined benefit and defined contribution plans | $ 2 | $ 2.1 | $ 2 |
Multiemployer defined benefit pension plans | Teamsters Local Union 727 | |||
Multiemployer plans | |||
Pension Protection Zone Status | Green | Green | Green |
Contributions | $ 3.1 | $ 3.2 | $ 3.4 |
Multiemployer defined benefit pension plans | Local 272 Labor Management | |||
Multiemployer plans | |||
Pension Protection Zone Status | Green | Green | Green |
Contributions | $ 1.3 | $ 1.5 | $ 1.6 |
Bradley Agreement - Narrative
Bradley Agreement - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)parking_space | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2002USD ($) | |
Compensation | ||||
Management fees | $ 0 | $ 0 | $ 0 | |
Bradley International Airport parking facilities operating agreement | ||||
Agreement | ||||
Agreement period with the State of Connecticut for operation of parking spaces | 25 years | |||
Number of garage parking spaces at Bradley International Airport operated | parking_space | 3,500 | |||
Annual minimum guaranteed payment to the State by the trustee | $ 12,000,000 | 11,800,000 | ||
Maximum premium percentage on initial deficiency payment (not more than) | 10.00% | |||
Estimated accrued deficiency payments | $ 0 | 0 | ||
Compensation | ||||
Management fee apportioned to the entity (in percentage) | 60.00% | |||
Management fee apportioned to an un-affiliated entity (in percentage) | 40.00% | |||
Unrecognized cumulative management fees | $ 19,700,000 | $ 18,700,000 | ||
Bradley International Airport parking facilities operating agreement | Minimum | ||||
Agreement | ||||
Annual minimum guaranteed payment to the State by the trustee | $ 8,300,000 | |||
Bradley International Airport parking facilities operating agreement | Maximum | ||||
Agreement | ||||
Annual minimum guaranteed payment to the State by the trustee | 13,200,000 | |||
Bradley International Airport parking facilities operating agreement | State of Connecticut special facility revenue bonds | Minimum | ||||
Agreement | ||||
Annual principal and interest on revenue bonds | $ 3,600,000 | |||
Bradley International Airport parking facilities operating agreement | State of Connecticut special facility revenue bonds | Maximum | ||||
Agreement | ||||
Annual principal and interest on revenue bonds | $ 4,500,000 |
Bradley Agreement - Schedule of
Bradley Agreement - Schedule of Deficiency Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Deficiency Payments [Roll Forward] | |||
Balance at beginning of year | $ 3.9 | $ 7.8 | $ 9.9 |
Deficiency payments made | 0 | 0.1 | 0.2 |
Deficiency repayment received | (3.8) | (4) | (2.3) |
Balance at end of year | $ 0.1 | $ 3.9 | $ 7.8 |
Bradley Agreement - Schedule _2
Bradley Agreement - Schedule of Interest and Premium Received and Deficiency Payment (Details) - Bradley International Airport parking facilities operating agreement - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Deficiency repayments | $ 3.8 | $ 3.9 | $ 2 |
Interest | 1 | 0.9 | 0.6 |
Premium | $ 0.4 | $ 0.3 | $ 0.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Jan. 01, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance (deficit) | $ 368.6 | $ 313.1 | $ 268.4 | ||
Change in other comprehensive income | (0.3) | (0.6) | 0.2 | ||
Cumulative effect of change in accounting principle | (0.6) | $ 0 | $ 0 | ||
Ending balance (deficit) | 373.9 | 368.6 | 313.1 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance (deficit) | (2.4) | (1.2) | (1.4) | ||
Cumulative effect of change in accounting principle | $ (0.6) | ||||
Ending balance (deficit) | (2.7) | (2.4) | (1.2) | ||
Foreign Currency Translation Adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance (deficit) | (2.4) | (1.2) | (1.4) | ||
Change in other comprehensive income | 0.1 | (0.6) | 0.2 | ||
Cumulative effect of change in accounting principle | (0.6) | ||||
Ending balance (deficit) | (2.3) | (2.4) | (1.2) | ||
Effective Portion of Unrealized Loss on Derivative | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance (deficit) | 0 | 0 | 0 | ||
Change in other comprehensive income | (0.4) | 0 | 0 | ||
Cumulative effect of change in accounting principle | 0 | ||||
Ending balance (deficit) | $ (0.4) | $ 0 | $ 0 |
Domestic and Foreign Operatio_3
Domestic and Foreign Operations (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Business Unit Segment Information | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Services revenue | $ 421.5 | $ 418.6 | $ 414.2 | $ 409.4 | $ 377.3 | $ 362.1 | $ 362.2 | $ 366.8 | $ 1,663.7 | $ 1,468.4 | $ 1,590.5 |
Gross profit | 54.3 | 58.7 | 61.9 | 53.2 | 48.5 | 45 | 51.1 | 39.4 | 228.1 | 184 | 185.3 |
General and administrative expenses | 28.2 | 26 | 27.7 | 27.1 | 27.7 | 18.7 | 22.3 | 22.3 | $ 109 | $ 91 | $ 82.9 |
General and administrative expense percentage of gross profit | 47.80% | 49.50% | 44.70% | ||||||||
Depreciation and amortization | 7.6 | 7.3 | 7.3 | 7.2 | 5.2 | 4.2 | 4.5 | 4 | $ 29.4 | $ 17.9 | $ 21 |
Operating income | 18.5 | 25.4 | 26.9 | 18.9 | 15.6 | 22.1 | 24.3 | 13.1 | 89.7 | 75.1 | 81.4 |
Other expense (income) | |||||||||||
Interest expense | 4.2 | 4.8 | 4.9 | 5 | 3.2 | 2.1 | 2.2 | 2.1 | 18.9 | 9.6 | 9.2 |
Interest income | 0 | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.3) | (0.4) | (0.6) |
Net gain on sale of a business | 0 | 0 | (0.1) | ||||||||
Equity in (earnings) losses from investment in unconsolidated entity | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (10.1) | 0 | (10.1) | 0.7 |
Total other expenses (income) | 4.2 | 4.7 | 4.8 | 4.9 | 3.1 | 2 | 2.1 | (8.1) | 18.6 | (0.9) | 9.2 |
Earnings before income taxes | 14.3 | 20.7 | 22.1 | 14 | 12.5 | 20.1 | 22.2 | 21.2 | 71.1 | 76 | 72.2 |
Income tax expense | 4.8 | 5.7 | 5.8 | 3.1 | 2.7 | 5.6 | 6 | 5.3 | 19.4 | 19.6 | 27.7 |
Net income | 9.5 | 15 | 16.3 | 10.9 | 9.8 | 14.5 | 16.2 | 15.9 | 51.7 | 56.4 | 44.5 |
Less: Net income attributable to noncontrolling interest | 0.7 | 0.8 | 1.1 | 0.3 | 0.7 | 1 | 0.9 | 0.6 | 2.9 | 3.2 | 3.3 |
Net income attributable to SP Plus Corporation | 8.8 | 14.2 | 15.2 | 10.6 | 9.1 | 13.5 | 15.3 | 15.3 | 48.8 | 53.2 | 41.2 |
Operating Segments | Commercial | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | 630.2 | 635.6 | 681.9 | ||||||||
Gross profit | 130.5 | 124.1 | 136.5 | ||||||||
Operating Segments | Aviation | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | 294.2 | 128.2 | 218.4 | ||||||||
Gross profit | 77.5 | 39.2 | 32.9 | ||||||||
Segment Reconciling Items | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | 10.5 | 11.6 | 11 | ||||||||
Gross profit | 20.1 | 20.7 | 15.9 | ||||||||
Lease type contracts | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | 101.3 | 104.6 | 105.2 | 97.8 | 102.3 | 104.7 | 107.4 | 99.5 | 408.9 | 413.9 | 563.1 |
Gross profit | 8.9 | 11.6 | 13.4 | 8.1 | 8 | 10.5 | 12.9 | 4.9 | 42 | 36.3 | 44.7 |
Lease type contracts | Operating Segments | Commercial | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | 377.3 | 386.2 | 433.8 | ||||||||
Gross profit | $ 29.4 | $ 25.8 | $ 36.4 | ||||||||
Gross margin percentage(in percentage) | 7.80% | 6.60% | 8.30% | ||||||||
Lease type contracts | Operating Segments | Aviation | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | $ 30.7 | $ 27 | $ 129.3 | ||||||||
Gross profit | $ 8.3 | $ 7.3 | $ 6.7 | ||||||||
Gross margin percentage(in percentage) | 27.00% | 26.30% | 5.20% | ||||||||
Lease type contracts | Segment Reconciling Items | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | $ 0.9 | $ 0.7 | $ 0 | ||||||||
Gross profit | 4.3 | 3.2 | 1.6 | ||||||||
Management type contracts | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | 130.6 | 132.6 | 129.9 | 132.9 | 96.8 | 82.6 | 87.7 | 94.4 | 526 | 361.5 | 348.2 |
Gross profit | 45.4 | 47.1 | 48.5 | 45.1 | 40.5 | 34.5 | 38.2 | 34.5 | 186.1 | 147.7 | 140.6 |
Management type contracts | Operating Segments | Commercial | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | 252.9 | 249.4 | 248.1 | ||||||||
Gross profit | $ 101.1 | $ 98.3 | $ 100.1 | ||||||||
Gross margin percentage(in percentage) | 40.00% | 37.80% | 38.80% | ||||||||
Management type contracts | Operating Segments | Aviation | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | $ 263.5 | $ 101.2 | $ 89.1 | ||||||||
Gross profit | $ 69.2 | $ 31.9 | $ 26.2 | ||||||||
Gross margin percentage(in percentage) | 26.30% | 31.50% | 29.20% | ||||||||
Management type contracts | Segment Reconciling Items | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | $ 9.6 | $ 10.9 | $ 11 | ||||||||
Gross profit | 15.8 | 17.5 | 14.3 | ||||||||
Reimbursed management type contract revenue | |||||||||||
Business Unit Segment Information | |||||||||||
Services revenue | $ 189.6 | $ 181.4 | $ 179.1 | $ 178.7 | $ 178.2 | $ 174.8 | $ 167.1 | $ 172.9 | $ 728.8 | $ 693 | $ 679.2 |
Unaudited Quarterly Results (De
Unaudited Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenue | $ 421.5 | $ 418.6 | $ 414.2 | $ 409.4 | $ 377.3 | $ 362.1 | $ 362.2 | $ 366.8 | $ 1,663.7 | $ 1,468.4 | $ 1,590.5 |
Cost of services | 367.2 | 359.9 | 352.3 | 356.2 | 328.8 | 317.1 | 311.1 | 327.4 | 1,435.6 | 1,284.4 | 1,405.2 |
Gross profit | 54.3 | 58.7 | 61.9 | 53.2 | 48.5 | 45 | 51.1 | 39.4 | 228.1 | 184 | 185.3 |
General and administrative expenses | 28.2 | 26 | 27.7 | 27.1 | 27.7 | 18.7 | 22.3 | 22.3 | 109 | 91 | 82.9 |
Depreciation and amortization | 7.6 | 7.3 | 7.3 | 7.2 | 5.2 | 4.2 | 4.5 | 4 | 29.4 | 17.9 | 21 |
Operating income | 18.5 | 25.4 | 26.9 | 18.9 | 15.6 | 22.1 | 24.3 | 13.1 | 89.7 | 75.1 | 81.4 |
Other expense (income) | |||||||||||
Interest expense | 4.2 | 4.8 | 4.9 | 5 | 3.2 | 2.1 | 2.2 | 2.1 | 18.9 | 9.6 | 9.2 |
Interest income | 0 | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.1) | (0.3) | (0.4) | (0.6) |
Equity in (income) losses from investment in unconsolidated entity | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (10.1) | 0 | (10.1) | 0.7 |
Total other expenses (income) | 4.2 | 4.7 | 4.8 | 4.9 | 3.1 | 2 | 2.1 | (8.1) | 18.6 | (0.9) | 9.2 |
Earnings before income taxes | 14.3 | 20.7 | 22.1 | 14 | 12.5 | 20.1 | 22.2 | 21.2 | 71.1 | 76 | 72.2 |
Income tax expense | 4.8 | 5.7 | 5.8 | 3.1 | 2.7 | 5.6 | 6 | 5.3 | 19.4 | 19.6 | 27.7 |
Net income | 9.5 | 15 | 16.3 | 10.9 | 9.8 | 14.5 | 16.2 | 15.9 | 51.7 | 56.4 | 44.5 |
Less: Net income attributable to noncontrolling interest | 0.7 | 0.8 | 1.1 | 0.3 | 0.7 | 1 | 0.9 | 0.6 | 2.9 | 3.2 | 3.3 |
Net income attributable to SP Plus Corporation | $ 8.8 | $ 14.2 | $ 15.2 | $ 10.6 | $ 9.1 | $ 13.5 | $ 15.3 | $ 15.3 | $ 48.8 | $ 53.2 | $ 41.2 |
Net income per share | |||||||||||
Basic (in dollars per share) | $ 0.41 | $ 0.64 | $ 0.68 | $ 0.47 | $ 0.40 | $ 0.60 | $ 0.68 | $ 0.69 | $ 2.21 | $ 2.38 | $ 1.86 |
Diluted (in dollars per share) | $ 0.41 | $ 0.64 | $ 0.68 | $ 0.47 | $ 0.40 | $ 0.60 | $ 0.68 | $ 0.68 | $ 2.20 | $ 2.35 | $ 1.83 |
Weighted average shares outstanding | |||||||||||
Basic (in shares) | 21,490,882 | 21,945,129 | 22,382,139 | 22,509,050 | 22,465,834 | 22,439,884 | 22,370,923 | 22,308,694 | 22,080,025 | 22,394,542 | 22,195,350 |
Diluted (in shares) | 21,600,568 | 22,038,905 | 22,532,213 | 22,667,539 | 22,607,102 | 22,626,746 | 22,644,884 | 22,557,326 | 22,208,032 | 22,607,223 | 22,508,288 |
Lease type contracts | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenue | $ 101.3 | $ 104.6 | $ 105.2 | $ 97.8 | $ 102.3 | $ 104.7 | $ 107.4 | $ 99.5 | $ 408.9 | $ 413.9 | $ 563.1 |
Cost of services | 92.4 | 93 | 91.8 | 89.7 | 94.3 | 94.2 | 94.5 | 94.6 | 366.9 | 377.6 | 518.4 |
Gross profit | 8.9 | 11.6 | 13.4 | 8.1 | 8 | 10.5 | 12.9 | 4.9 | 42 | 36.3 | 44.7 |
Management type contracts | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenue | 130.6 | 132.6 | 129.9 | 132.9 | 96.8 | 82.6 | 87.7 | 94.4 | 526 | 361.5 | 348.2 |
Cost of services | 85.2 | 85.5 | 81.4 | 87.8 | 56.3 | 48.1 | 49.5 | 59.9 | 339.9 | 213.8 | 207.6 |
Gross profit | 45.4 | 47.1 | 48.5 | 45.1 | 40.5 | 34.5 | 38.2 | 34.5 | 186.1 | 147.7 | 140.6 |
Reimbursed management type contract revenue | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenue | 189.6 | 181.4 | 179.1 | 178.7 | 178.2 | 174.8 | 167.1 | 172.9 | 728.8 | 693 | 679.2 |
Cost of services | $ 189.6 | $ 181.4 | $ 179.1 | $ 178.7 | $ 178.2 | $ 174.8 | $ 167.1 | $ 172.9 | $ 728.8 | $ 693 | $ 679.2 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
Changes in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 1 | $ 0.7 | $ 0.4 |
Additions Charged to Costs and Expenses | 2.1 | 1.7 | 0.7 |
Reductions | (1.2) | (1.4) | (0.4) |
Balance at End of Year | 1.9 | 1 | 0.7 |
Deferred tax valuation allowance | |||
Changes in valuation and qualifying accounts | |||
Balance at Beginning of Year | 8.1 | 7.1 | 6.6 |
Additions Charged to Costs and Expenses | 0.2 | 1 | 0.5 |
Reductions | 0 | 0 | 0 |
Balance at End of Year | $ 8.3 | $ 8.1 | $ 7.1 |
Uncategorized Items - sp1231201
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 268,400,000 |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 300,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 251,500,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 0 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 22,356,586 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (7,500,000) |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 200,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (300,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 600,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 25,600,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (1,400,000) |