Cover page
Cover page - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-50796 | |
Entity Registrant Name | SP Plus Corp | |
Entity Central Index Key | 0001059262 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 16-1171179 | |
Entity Address, Address Line One | 200 E. Randolph Street, Suite 7700 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60601-7702 | |
City Area Code | 312 | |
Local Phone Number | 274-2000 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | SP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,086,792 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 18.1 | $ 24.1 |
Notes and accounts receivable, net | 100.3 | 162.3 |
Prepaid expenses and other | 16.1 | 24.7 |
Total current assets | 134.5 | 211.1 |
Leasehold improvements, equipment and construction in progress, net | 48.5 | 47.9 |
Right-of-use assets | 261.8 | 431.7 |
Goodwill | 585.8 | 586 |
Other intangible assets, net | 140.7 | 152.2 |
Equity investments in unconsolidated entities | 10.1 | 10.2 |
Deferred taxes | 43 | 10.6 |
Other assets, net | 31 | 29.9 |
Total noncurrent assets | 1,120.9 | 1,268.5 |
Total assets | 1,255.4 | 1,479.6 |
Liabilities and stockholders’ equity | ||
Accounts payable | 99.1 | 115.3 |
Accrued and other current liabilities | 97.2 | 121.4 |
Short-term lease liabilities | 97.8 | 115.2 |
Current portion of long-term obligations under Senior Credit Facility and other long-term borrowings | 16.2 | 17.9 |
Total current liabilities | 310.3 | 369.8 |
Long-term borrowings, excluding current portion | 350.2 | 351.1 |
Long-term lease liabilities | 266.3 | 327.7 |
Other noncurrent liabilities | 62.9 | 57.1 |
Total noncurrent liabilities | 679.4 | 735.9 |
Total Liabilities | 989.7 | 1,105.7 |
Stockholders’ equity | ||
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized as of June 30, 2020 and December 31, 2019, respectively; no shares issued or outstanding | 0 | 0 |
Common stock, par value $0.001 per share; 50,000,000 shares authorized as of June 30, 2020 and December 31, 2019; 25,056,869 and 23,022,127 shares issued and outstanding as of June 30, 2020 and 24,591,127 issued and 22,950,360 outstanding as of December 31, 2019, respectively | 0 | 0 |
Treasury stock, at cost; 2,034,742 and 1,640,767 shares as of June 30, 2020 and December 31, 2019, respectively | (70.6) | (55.3) |
Additional paid-in capital | 258.9 | 262.6 |
Accumulated other comprehensive loss | (5.6) | (2.7) |
Retained earnings | 84.3 | 169.5 |
Total SP Plus Corporation stockholders’ equity | 267 | 374.1 |
Noncontrolling interest | (1.3) | (0.2) |
Total stockholders’ equity | 265.7 | 373.9 |
Total liabilities and stockholders’ equity | $ 1,255.4 | $ 1,479.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 25,056,869 | 24,591,127 |
Common stock, shares outstanding (in shares) | 23,022,127 | 22,950,360 |
Treasury stock, shares (in shares) | 2,034,742 | 1,640,767 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Services revenue | $ 203.4 | $ 414.2 | $ 613.1 | $ 823.6 |
Cost of services | 216.8 | 352.3 | 656.7 | 708.5 |
Lease impairment | 16.7 | 0 | 94.2 | 0 |
Gross profit | (13.4) | 61.9 | (43.6) | 115.1 |
General and administrative expenses | 22.8 | 27.7 | 43.5 | 54.8 |
Depreciation and amortization | 7.9 | 7.3 | 15.4 | 14.5 |
Impairment of intangible assets | 3.7 | 0 | 3.7 | 0 |
Operating (loss) income | (47.8) | 26.9 | (106.2) | 45.8 |
Other expense (income) | ||||
Interest expense | 5.3 | 4.9 | 9.7 | 9.9 |
Interest income | (0.1) | (0.1) | (0.2) | (0.2) |
Other expenses | 0.2 | 0 | 0.2 | 0 |
Gain on sale of other investments | 0 | 0 | (0.3) | 0 |
Total other expenses | 5.4 | 4.8 | 9.4 | 9.7 |
(Loss) earnings before income taxes | (53.2) | 22.1 | (115.6) | 36.1 |
Income tax (benefit) expense | (13.4) | 5.8 | (30.2) | 8.9 |
Net (loss) income | (39.8) | 16.3 | (85.4) | 27.2 |
Less: Net (loss) income attributable to noncontrolling interest | (0.7) | 1.1 | (0.2) | 1.4 |
Net (loss) income attributable to SP Plus Corporation | $ (39.1) | $ 15.2 | $ (85.2) | $ 25.8 |
Net (loss) income per common share | ||||
Basic (in dollars per share) | $ (1.86) | $ 0.68 | $ (4.05) | $ 1.15 |
Diluted (in dollars per share) | $ (1.86) | $ 0.68 | $ (4.05) | $ 1.14 |
Weighted average shares outstanding | ||||
Basic (in shares) | 20,972,057 | 22,382,139 | 21,062,495 | 22,445,825 |
Diluted (in shares) | 20,972,057 | 22,532,213 | 21,062,495 | 22,600,107 |
Lease Type Contracts | ||||
Services revenue | $ 30.2 | $ 105.2 | $ 111.9 | $ 203 |
Cost of services | 43.1 | 91.8 | 123.3 | 181.5 |
Gross profit | (12.9) | 13.4 | (11.4) | 21.5 |
Management Type Contracts | ||||
Services revenue | 62.8 | 129.9 | 199.9 | 262.8 |
Cost of services | 46.6 | 81.4 | 137.9 | 169.2 |
Lease impairment | 16.7 | 0 | 94.2 | 0 |
Gross profit | 16.2 | 48.5 | 62 | 93.6 |
Lease and Management Type Contracts | ||||
Services revenue | 93 | 235.1 | 311.8 | 465.8 |
Cost of services | 89.7 | 173.2 | 261.2 | 350.7 |
Reimbursed Management Type Contract Revenue | ||||
Services revenue | 110.4 | 179.1 | 301.3 | 357.8 |
Cost of services | $ 110.4 | $ 179.1 | $ 301.3 | $ 357.8 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (39.8) | $ 16.3 | $ (85.4) | $ 27.2 |
Change in fair value of interest rate collars | 0.2 | (0.8) | (2.6) | (0.8) |
Foreign currency translation (loss) gain | (0.1) | (0.1) | (0.3) | 0.1 |
Comprehensive (loss) income | (39.7) | 15.4 | (88.3) | 26.5 |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (0.7) | 1.1 | (0.2) | 1.4 |
Comprehensive (loss) income attributable to SP Plus Corporation | $ (39) | $ 14.3 | $ (88.1) | $ 25.1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2018 | 22,783,976 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 368.6 | $ 0 | $ 257.7 | $ (2.4) | $ 120.7 | $ (7.5) | $ 0.1 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | 10.9 | 10.6 | 0.3 | ||||
Foreign currency translation | 0.2 | 0.2 | |||||
Issuance of restricted stock units (in shares) | 7,518 | ||||||
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 | 0.4 | 0.4 | |||||
Treasury stock | (2.3) | (2.3) | |||||
Distributions to noncontrolling interest | (0.7) | (0.7) | |||||
Ending Balance (in shares) at Mar. 31, 2019 | 22,853,588 | ||||||
Ending Balance at Mar. 31, 2019 | 377 | 258 | (2.2) | 131.3 | (9.8) | (0.3) | |
Beginning balance (in shares) at Dec. 31, 2018 | 22,783,976 | ||||||
Beginning Balance at Dec. 31, 2018 | 368.6 | $ 0 | 257.7 | (2.4) | 120.7 | (7.5) | 0.1 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | 27.2 | ||||||
Foreign currency translation | 0.1 | ||||||
Treasury stock | (13.6) | ||||||
Ending Balance (in shares) at Jun. 30, 2019 | 22,879,409 | ||||||
Ending Balance at Jun. 30, 2019 | 381.9 | 259.5 | (3.1) | 146.5 | (21.1) | 0.1 | |
Beginning balance (in shares) at Mar. 31, 2019 | 22,853,588 | ||||||
Beginning Balance at Mar. 31, 2019 | 377 | 258 | (2.2) | 131.3 | (9.8) | (0.3) | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | 16.3 | 15.2 | 1.1 | ||||
Foreign currency translation | (0.1) | (0.1) | |||||
Change in fair value of interest rate collars | (0.8) | (0.8) | |||||
Issuance of stock grants (in shares) | 14,076 | ||||||
Issuance of stock grants | 0.5 | 0.5 | |||||
Issuance of restricted stock units (in shares) | 11,745 | ||||||
Issuance of restricted stock units | 0 | ||||||
Non-cash stock-based compensation | 1 | 1 | |||||
Treasury stock | (11.3) | (11.3) | |||||
Distributions to noncontrolling interest | (0.7) | (0.7) | |||||
Ending Balance (in shares) at Jun. 30, 2019 | 22,879,409 | ||||||
Ending Balance at Jun. 30, 2019 | $ 381.9 | 259.5 | (3.1) | 146.5 | (21.1) | 0.1 | |
Beginning balance (in shares) at Dec. 31, 2019 | 22,950,360 | 22,950,360 | |||||
Beginning Balance at Dec. 31, 2019 | $ 373.9 | 262.6 | (2.7) | 169.5 | (55.3) | (0.2) | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | (45.6) | (46.1) | 0.5 | ||||
Foreign currency translation | (0.2) | (0.2) | |||||
Change in fair value of interest rate collars | (2.8) | (2.8) | |||||
Issuance of performance stock units (in shares) | 46,701 | ||||||
Issuance of performance stock units | 0 | ||||||
Non-cash stock-based compensation | (2.9) | (2.9) | |||||
Treasury stock | (15.3) | (15.3) | |||||
Distributions to noncontrolling interest | (0.5) | (0.5) | |||||
Ending Balance (in shares) at Mar. 31, 2020 | 22,997,061 | ||||||
Ending Balance at Mar. 31, 2020 | $ 306.6 | 259.7 | (5.7) | 123.4 | (70.6) | (0.2) | |
Beginning balance (in shares) at Dec. 31, 2019 | 22,950,360 | 22,950,360 | |||||
Beginning Balance at Dec. 31, 2019 | $ 373.9 | 262.6 | (2.7) | 169.5 | (55.3) | (0.2) | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | (85.4) | ||||||
Foreign currency translation | (0.3) | ||||||
Treasury stock | $ (15.3) | ||||||
Ending Balance (in shares) at Jun. 30, 2020 | 23,022,127 | 23,022,127 | |||||
Ending Balance at Jun. 30, 2020 | $ 265.7 | 258.9 | (5.6) | 84.3 | (70.6) | (1.3) | |
Beginning balance (in shares) at Mar. 31, 2020 | 22,997,061 | ||||||
Beginning Balance at Mar. 31, 2020 | 306.6 | 259.7 | (5.7) | 123.4 | (70.6) | (0.2) | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net (loss) income | (39.8) | (39.1) | (0.7) | ||||
Foreign currency translation | (0.1) | (0.1) | |||||
Change in fair value of interest rate collars | 0.2 | 0.2 | |||||
Issuance of stock grants (in shares) | 25,066 | ||||||
Issuance of stock grants | 0.5 | 0.5 | |||||
Non-cash stock-based compensation | 0.4 | 0.4 | |||||
Noncontrolling interest buyout | (1.7) | (1.7) | |||||
Distributions to noncontrolling interest | $ (0.4) | (0.4) | |||||
Ending Balance (in shares) at Jun. 30, 2020 | 23,022,127 | 23,022,127 | |||||
Ending Balance at Jun. 30, 2020 | $ 265.7 | $ 258.9 | $ (5.6) | $ 84.3 | $ (70.6) | $ (1.3) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Operating activities | |||||||
Net (loss) income | $ (39.8) | $ (45.6) | $ 16.3 | $ 10.9 | $ (85.4) | $ 27.2 | |
Adjustments to reconcile net (loss) income to net cash provided by operations: | |||||||
Impairment | 97.9 | ||||||
Depreciation and amortization | 15.1 | 15.1 | |||||
Non-cash stock-based compensation | (2) | 1.8 | |||||
Provisions for credit losses on accounts receivable | 5.6 | 0.3 | $ 2.1 | ||||
Deferred income taxes | (31.4) | 1 | |||||
Other | 1.4 | (0.1) | |||||
Changes in operating assets and liabilities | |||||||
Notes and accounts receivable | 56.4 | (11.8) | |||||
Prepaid and other current assets | 8.5 | 3.5 | |||||
Accounts payable | (16.2) | (2.7) | |||||
Accrued liabilities and other | (23.9) | (13) | |||||
Net cash provided by operating activities | 26 | 21.3 | |||||
Investing activities | |||||||
Purchases of leasehold improvements and equipment | (8) | (4.2) | |||||
Proceeds from sale of other investments and equipment | 0.7 | 0.2 | |||||
Cost of contracts purchased | (1.3) | (1.4) | |||||
Net cash used in investing activities | (8.6) | (5.4) | |||||
Financing activities | |||||||
Payments on credit facility revolver | (326.4) | (239.3) | |||||
Proceeds from credit facility revolver | 328.4 | 227.4 | |||||
Payments on credit facility term loan | (5.6) | (5.6) | |||||
Payments on other long-term borrowings | (3.3) | (1) | |||||
Distributions to noncontrolling interest | (0.9) | (1.4) | |||||
Repurchases of common stock | (15.3) | (13.6) | |||||
Net cash used in financing activities | (23.1) | (33.5) | |||||
Effect of exchange rate changes on cash and cash equivalents | (0.3) | ||||||
Decrease in cash and cash equivalents | (6) | (17.6) | |||||
Cash and cash equivalents at beginning of year | $ 24.1 | $ 39.9 | 24.1 | 39.9 | 39.9 | ||
Cash and cash equivalents at end of period | $ 18.1 | $ 22.3 | 18.1 | 22.3 | $ 24.1 | ||
Cash paid (refund received) during the period for | |||||||
Interest | 8.7 | 9.3 | |||||
Income taxes | $ (0.1) | $ 7.9 |
Significant Accounting Policies
Significant Accounting Policies and Practices | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | 1. 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. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the Condensed Consolidated Balance Sheets, Statements of Income, Comprehensive Income, Stockholders' Equity and Cash Flows prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that might be expected for any other interim period or the fiscal year ending December 31, 2020. The financial statements presented in this report should be read in conjunction with the Company’s annual Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K filed on February 20, 2020 with the Securities and Exchange Commission. Cash and Cash Equivalents Cash equivalents represent funds temporarily invested in money market instruments with maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements were $0.2 million and $0.5 million as of June 30, 2020 and December 31, 2019, respectively, and are included within Cash and cash equivalents within the Condensed 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, primarily using a review of specific accounts, as well as historical collection trends and aging of receivables, and makes adjustments to 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 June 30, 2020 and December 31, 2019 the Company's allowance for doubtful accounts was $5.0 million and $1.9 million, respectively. Transactions affecting the allowance for doubtful accounts receivable during the six months ended June 30, 2020 and year ended December 31, 2019 were as follows: (millions) (unaudited) June 30, 2020 December 31, 2019 Beginning Balance $ 1.9 $ 1.0 Provision for credit losses 5.6 2.1 Write offs and other (2.5 ) (1.2 ) Ending Balance $ 5.0 $ 1.9 Equity Investments in Unconsolidated Entities The Company has ownership interests in 29 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 24 are consolidated under the VIE or voting interest models and 5 are unconsolidated where the Company’s ownership interests range from 30-50 percent and for which there are no indicators of control. The Company accounts for such investments under the equity method of accounting, and its underlying share of each investee’s equity is included in Equity investments in unconsolidated entities within the Condensed Consolidated Balance Sheets. As the operations of these entities are consistent with the Company’s underlying core business operations, the equity in earnings of these investments are included in Services revenue - lease type contracts within the Condensed Consolidated Statements of Income. The equity earnings in these related investments were $ 0.2 million and $ million for the three months ended June 30, 2020 and 2019, respectively, and were $ million and $ 1.6 million for the six months ended June 30, 2020 and 2019, respectively. Other Noncurrent Assets Other noncurrent assets consisted of advances and deposits and cost of contracts, net, as of June 30, 2020 and December 31, 2019. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of accrued rent, compensation, payroll withholdings, property, payroll and other taxes, insurance, and other accrued liabilities as of June 30, 2020 and December 31, 2019. 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 percent, ownership interest and the results of which are consolidated and included within the Condensed Consolidated Financial Statements. 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 indicating the carrying value may not be recoverable. The goodwill impairment test is performed at the reporting unit level; the Company's reporting units represent its operating segments, consisting of Commercial and Aviation. Factors that could trigger an impairment review include significant under-performance relative to expected historical or projected future operating results, significant changes in the use of acquired assets or 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. As of January 1, 2020, the Company adopted Accounting Standards Update ("ASU") 2017-04, which eliminated the two step approach from the current goodwill impairment test and allows impairment to be calculated based on the results of the first step. 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 reporting unit, goodwill is not considered impaired, and the Company is not required to perform further testing. Beginning in March 2020, the Company noted that the COVID-19 pandemic and the resulting stay at home orders issued by local governments were impacting certain of the Company's businesses. These factors have significantly impacted the hospitality and travel industries, as well as overall consumer discretionary spending. Due to the impacts of COVID-19, revenues for certain markets in which we operate have dropped significantly and were below revenues assumed in our annual impairment testing. The Company does not know how long the impacts of COVID-19 will impact the results of the Company. As a result of the impact of COVID-19 on the Company's expected future operating cash flows, the Company completed an assessment of goodwill impairment as of June 30, 2020 and concluded that it was more likely than not that the estimated fair values of each of the Company’s reporting units exceeded their carrying amount of net assets assigned to each reporting unit. As a result, goodwill was not impaired. See Note 7. Goodwill in the notes to the Condensed Consolidated Financial Statements for further discussion. 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 other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to their remaining useful lives. Assumptions and estimates about future values and remaining useful lives of 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 the Company's 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. As a result of the impact of COVID-19 on the Company's expected future operating cash flows, the Company determined certain impairment testing triggers had occurred related to the Company’s intangible assets. Accordingly, the Company analyzed undiscounted cash flows for certain intangible assets as of June 30, 2020. Based on that undiscounted cash flow analysis, the Company determined that estimated net carrying values exceeded undiscounted future cash flows for certain intangible assets and therefore as of June 30 , 2020, certain intangible assets were impaired. See Note 6 . Other Intangible Assets , net in the notes to the Condensed Consolidated Financial Statements for further discussion. For both goodwill and intangible assets, future events may indicate differences from our judgments and estimates which could, in turn, result in impairment charges. Future events that may result in impairment charges include extended unfavorable economic impacts of COVID-19, increases in interest rates, which would impact discount rates, or other factors which could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities. Long-Lived Assets The Company evaluates long-lived assets, including right-of-use ("ROU") assets, leasehold improvements, equipment and construction in progress, for impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The Company groups assets at the lowest level for which cash flows are separately identified in order to measure an impairment. Events or circumstances that would result in an impairment review include a significant change in the use of an asset, the planned sale or disposal of an asset, or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset group. 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. As a result of the impact of COVID-19 on the Company's expected future operating cash flows, we determined certain impairment testing triggers had occurred for ROU assets associated with certain operating leases. See Note 2. Leases Assumptions and estimates used to determine cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any future changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets and could result in additional impairment charges. Future events that may result in impairment charges include extended unfavorable economic impacts of COVID-19, or other factors which could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities. Income taxes Deferred tax assets increased $32.4 million to $43.0 million as of June 30, 2020 compared to $10.6 million as of December 31, 2019. The increase in deferred tax assets is due to the decrease in deferred tax liabilities related to the impairment of ROU assets during the six months ended June 30, 2020, as well as an increase in deferred tax assets related to the deferral of FICA taxes resulting from the Coronavirus Aid, Relief, & Economic Security (CARES) Act during the six months ended June 30, 2020. The current tax liability also increased as of June 30, 2020 as compared to December 31, 2019 due to the impairment of ROU assets and the deferral of FICA taxes as a result of the CARES Act. Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements During the six months ended June 30, 2020, the Company adopted the following ASUs with no material impact on the Condensed Consolidated Financial Statements: ASU Topic Method of Adoption 2016-13 Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326) Prospective 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment Prospective 2018-13 Fair Value Measurement (Topic 820) Prospective 2018-15 Intangibles – Goodwill and Other – Internal - Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Prospective 20018-17 Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities Prospective 2018-18 Collaborative Arrangements (Topic 808) Prospective 2018-19 Codification Improvements to Topic 326, Financial Instruments - Credit Losses Prospective 2019-04 Codification Improvements to Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825) Prospective 2019-08 Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), Codification Improvements - Share-Based Consideration Payable to a Customer Prospective 2020-02 Financial Instruments-Credit Losses (Topic 326) And Leases (Topic 842)-Amendments to Sec Paragraphs Pursuant to Sec Staff Accounting Bulletin No. 119 And Update to Sec Section On Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) Prospective 2019-12 Simplifying the Accounting for Income Taxes (Topic 740) Prospective, early adopted Accounting Pronouncements to be Adopted Effects of Reference Rate Reform on Financial Reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Investments - equity securities; Investments-Equity Method and Joint Ventures; Derivatives and Hedging In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 2. Leases The Company leases parking facilities, office space, warehouses, vehicles and equipment and determines if an arrangement is a lease at inception. The Company subleases certain real estate to third parties. The Company's sublease portfolio consists of operating leases for space within our leased parking facilities. The Company accounts for leases in accordance with Topic 842. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company's "right-of-use" over an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. The ROU asset includes cumulative prepaid or accrued rent, as well as lease incentives, initial direct costs and acquired lease contracts. The short term lease exception has been applied to leases with an initial term of 12 months or less and these leases are not recorded on the balance sheet. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. Lease expense is recognized on a straight-line basis over the lease term. For leases that include one or more options to renew, the exercise of such renewal options is at the Company's sole discretion or mutual agreement. Equipment and vehicle leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Variable lease components comprising of payments that are a percentage of parking services revenue based on contractual levels and rental payments adjusted periodically for inflation are not included in the lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Consistent with other long-lived assets or asset groups that are held and used, the Company tests ROU assets when impairment indicators are present as detailed in Note 1. Significant Accounting Policies and Practices As discussed in Note 1. Significant Accounting Policies and Practices In April 2020, the FASB staff provided accounting elections for entities that receive or provide lease-related concessions to mitigate the economic effects of COVID-19 on lessees. The Company elected not to evaluate whether certain concessions provided by lessors in response to the COVID-19 pandemic, that are within the scope of additional interpretation provided by the FASB in April 2020, were lease modifications and has also elected not to apply modification guidance under ASC 842. These concessions will be recognized as a reduction of rent expense in the month they occur and will be recorded within Cost of parking services within the Condensed Consolidated Statements of Income. During the three months ended June 30, 2020, as a result of the ongoing COVID-19 pandemic, the Company was able to negotiate lease concessions with certain landlords. These rent concessions have been recorded in accordance with the guidance noted above. As a result, the Company recorded $8.9 million related to rent concessions as a reduction to cost of services during the three and six months ended June 30, 2020. Service concession arrangements within the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services Revenue The components of ROU assets and lease liabilities and classification on the Condensed Consolidated Balance Sheet as of June 30, 2020 and December 31, 2019 were as follows: (millions) (unaudited) Classification June 30, 2020 December 31, 2019 Assets Operating Right-of-use assets $ 261.8 $ 431.7 Finance Leasehold improvements, equipment and construction in progress, net 22.0 18.6 Total leased assets $ 283.8 $ 450.3 Liabilities Current Operating Short-term lease liabilities $ 97.8 $ 115.2 Finance Current portion of long-term obligations under credit facility and other long-term borrowings 4.1 3.1 Noncurrent Operating Long-term lease liabilities 266.3 327.7 Finance Other long-term borrowings 17.9 15.6 Total lease liabilities $ 386.1 $ 461.6 The components of lease cost and classification in the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended (millions) (unaudited) Classification June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating lease cost (a) Cost of services - lease type contracts $ 25.2 $ 60.1 $ 60.8 $ 118.4 Short-term lease (a) Cost of services - lease type contracts 5.4 9.1 14.2 17.9 Variable Lease Cost of services - lease type contracts 1.9 15.3 9.7 28.4 Operating lease cost 32.5 84.5 84.7 164.7 Finance lease cost Amortization of leased assets Depreciation and amortization 0.8 0.3 1.5 0.8 Interest on lease liabilities Interest expense 0.3 0.2 0.5 0.4 Lease impairment Lease impairment 16.7 — 94.2 — Net lease cost $ 50.3 $ 85.0 $ 180.9 $ 165.9 (a) Operating lease cost included in General and administrative expenses are related to leases for office space amounting to $1.5 million and $3.0 million for the three and six months ended June 30, 2020, respectively Sublease income was $0.4 million during the three months ended June 30, 2020 and 2019, and $0.8 million and $1.1 million during the six months ended June 30, 2020 and 2019, respectively. The Company has not entered into operating lease arrangements as of June 30, 2020 that commence in future periods. Maturities of lease liabilities, lease term, and discount rate information as of June 30, 2020 were as follows: (millions) (unaudited) Operating Leases Liabilities Finance Leases Liabilities Total 2020 $ 62.3 $ 2.5 $ 64.8 2021 95.5 5.0 100.5 2022 77.2 4.5 81.7 2023 54.2 3.6 57.8 2024 37.9 2.4 40.3 After 2024 90.3 6.5 96.8 Total lease payments 417.4 24.5 441.9 Less: Imputed interest 53.3 2.5 55.8 Present value of lease liabilities $ 364.1 $ 22.0 $ 386.1 Weighted-average remaining lease term (years) 5.4 6.2 Weighted-average discount rate 5.0 % 4.6 % Future sublease income for the above periods shown was excluded as the amounts are not material. Supplemental cash flow information related to leases for the six months ended June 30, 2020 and 2019 was as follows: Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 70.8 $ 90.5 Operating cash flows related to interest on finance leases 0.5 0.4 Financing cash flows related to finance leases 1.7 1.0 Leased assets obtained in exchange for new operating liabilities 9.2 29.2 Leased assets obtained in exchange for new finance lease liabilities 4.9 3.6 |
Acquisition, Restructuring and
Acquisition, Restructuring and Integration Costs | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition, Restructuring and Integration Costs | 3. Acquisition, Restructuring and Integration Costs Acquisition, Restructuring and Integration Costs The Company has incurred certain acquisition, restructuring and integration costs that were expensed as incurred, which include: • 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 2020 and 2019 (included within Cost of services and General and administrative expenses within the Condensed Consolidated Statements of Income); • Transaction costs and other acquisition related costs (primarily professional services and advisory services, as well as write-offs of aged receivables incurred prior to acquisition) primarily related to the Bags acquisition incurred during the three and six months ended June 30, 2019 (included within General and administrative expenses within the Consolidated Statements of Income) and; • Consulting costs for integration-related activities related to the Bags acquisition incurred during the three and six months ended June 30, 2019 (included within General and administrative expenses within the Condensed Consolidated Statements of Income). Included in General and administrative expenses are severance costs of $2.4 million and $2.9 million for the three and six months ended June 30, 2020, respectively, reflecting the actions that Company has taken to lessen the impacts of COVID-19 on the business. Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Cost of services $ 0.6 $ — $ 1.0 $ — General and administrative expenses 3.7 0.3 4.2 1.3 The accrual for acquisition, restructuring and integration costs of $2.7 million and $0.1 million is included in Accrued and other current liabilities within the Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019, respectively. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 4. 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. Contracts with customers and clients The Company accounts for a contract when it has the approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Once a contract is identified, the Company evaluates whether the 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 facility’s financial performance, or a combination of both. The Company operates the parking facility and is responsible for most operating expenses, but typically is not responsible for major maintenance, capital expenditures or real estate taxes. Performance obligations related to lease type contracts include parking for transient and monthly parkers. Revenue is recognized over time as the Company provides services. 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 three and six months ended June 30, 2020 and 2019, respectively. Management type contracts Management type contract revenue consists of management fees, including both fixed and performance-based fees. In exchange for this consideration, the Company has a bundle of performance obligations that include services such as managing the facility as well as ancillary services such as accounting, equipment leasing, consulting, insurance and other value-added services. The Company believes that it can generally purchase required insurance for the facility and facility operations 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 risk management efforts and controlling losses. Management type contract revenues do not include gross customer collections at the managed locations as these revenues belong to the property owners rather than 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. Revenue generated from service concession arrangements is accounted for under the guidance of Topics 606 and 853. Certain expenses (primarily rental expense) related to service concession arrangements and depreciation and amortization, have been recorded as a reduction of Service revenue - lease type contracts. 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 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 from the property owner for 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 14. Business Unit Segment Information Performance obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer or client, and is the unit of account under Topic 606. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company's contracts have a single performance obligation that is not separately identifiable from other promises in the contract and therefore not distinct, comprising the promise to provide a bundle of monthly performance obligations or parking services for transient or monthly parkers. The contract price is generally deemed to be the transaction price. Some management type contracts include performance incentives that are based on variable performance measures. These incentives are constrained at contract inception and recognized once the customer has confirmed that the Company has met the contractually agreed upon performance measures as defined in the contract. The Company's performance obligations are primarily satisfied over time as the Company provides the related services. 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 three and six months ended June 30, 2020 and 2019, 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 typically collected in advance of the Company commencing its performance obligations under the contractual arrangement. On June 30, 2020, the Company had $107.4 million related to performance obligations that were unsatisfied or partially unsatisfied for which the Company expects to recognize revenue. This amount excludes variable consideration primarily related to contracts where the Company and customer share the gross revenues or operating profit for the location and contracts where transaction prices include performance incentives that are constrained at contract inception. These performance incentives are based on measures that are ascertained exclusively by future performance and therefore cannot be estimated at contract inception by the Company. The Company applies the practical expedient that permits exclusion of information about the remaining performance obligations that have original expected durations of one year or less. The Company expects to recognize the remaining performance obligations as revenue in future periods as follows: (millions) (unaudited) Remaining Performance Obligations 2020 $ 24.0 2021 35.8 2022 20.4 2023 13.0 2024 7.2 2025 and thereafter 7.0 Total $ 107.4 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 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 Condensed Consolidated Balance Sheets. See Note 1. Significant Accounting Policies and Practices The following table provides information about accounts receivable, contract assets and contract liabilities with customers and clients as of June 30, 2020 (unaudited) and December 31, 2019: (millions) June 30, 2020 December 31, 2019 Accounts receivable $ 93.3 $ 151.3 Contract asset 7.0 11.0 Contract liability (11.3 ) (19.4 ) Changes in contract assets which include recognition of additional consideration due from the customer are offset by reclassifications of contract asset balances to accounts receivable when the Company obtains an unconditional right to consideration, thereby establishing an accounts receivable. The following table provides information about changes to contract asset balances during the six months ended June 30, 2020 and 2019: Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 Balance, beginning of period $ 11.0 $ 11.4 Additional contract assets 7.0 11.8 Reclassification to accounts receivable (11.0 ) (11.4 ) Balance, end of period $ 7.0 $ 11.8 Changes in contract liabilities primarily include additional contract liabilities and reductions of contract liabilities when revenue is recognized. The following table provides information about changes to contract liability balances during the six months ended June 30, 2020 and 2019 : Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 Balance, beginning of period $ (19.4 ) $ (19.1 ) Additional contract liabilities (11.3 ) (14.9 ) Recognition of revenue from contract liabilities 19.4 19.1 Balance, end of period $ (11.3 ) $ (14.9 ) Cost of contracts, net Cost of contracts, net, represents the cost of obtaining contractual rights associated with providing services for management type contracts. Incremental costs incurred to obtain service 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. Amortization expense related to cost of contracts not considered service concession arrangements is included within Depreciation and amortization in the Condensed Consolidated Statements of Income. Amortization expense of cost of contracts related to service concession arrangements within the scope of Topic 853 and certain management type contracts are recorded as a reduction of revenue and were not significant for the three and six months ended June 30, 2020 and 2019, respectively. Amortization expense related to cost of contracts for the three and six months ended June 30, 2020 and 2019 was as follows: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Amortization expense $ 0.3 $ 0.3 $ 0.7 $ 0.6 As of June 30, 2020 and December 31, 2019, cost of contracts net of accumulated amortization included on the Condensed Consolidated Balance Sheets within Other noncurrent assets was $5.4 million and $4.3 million, respectively. No impairment charges were recorded for the three and six months ended June 30, 2020 and 2019, respectively. |
Legal and Other Commitments and
Legal and Other Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal and Other Commitments and Contingencies | 5. Legal and Other Commitments and Contingencies The Company is subject to litigation in the normal course of its business. The outcomes of legal proceedings and claims brought against the Company 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 amounts to resolve claims or alleged violations of regulatory requirements. There are no "normal course" matters that separately or in the aggregate, would, in the opinion of management, have a material adverse effect on its results of operation, 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. During the three and six months ended June 30, 2020, the Company recorded $4.5 million in reserves related to legal matters. |
Other Intangible Assets, net
Other Intangible Assets, net | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets, net | 6. Other Intangible Assets, net The components of other intangible assets, net, at June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 (unaudited) December 31, 2019 (millions) Weighted Average Life (Years) Acquired Intangible Assets, Gross Accumulated Amortization Acquired Intangible Assets, Net Acquired Intangible Assets, Gross Accumulated Amortization Acquired Intangible Assets, Net Covenant not to compete 2.5 $ 2.9 $ (0.8 ) $ 2.1 $ 2.9 $ (0.3 ) $ 2.6 Trade names and trademarks 3.4 5.6 (1.8 ) 3.8 5.6 (1.2 ) 4.4 Proprietary know how 4.2 6.7 (2.8 ) 3.9 10.4 (2.0 ) 8.4 Management contract rights 8.6 81.0 (40.0 ) 41.0 81.0 (37.4 ) 43.6 Customer relationships 13.4 100.4 (10.5 ) 89.9 100.4 (7.2 ) 93.2 Acquired intangible assets, net (1) 11.1 $ 196.6 $ (55.9 ) $ 140.7 $ 200.3 $ (48.1 ) $ 152.2 (1) Intangible assets have estimated remaining lives between one and fourteen years. The table below shows the amortization expense related to intangible assets for the three and six months ended June 30, 2020 and 2019, respectively, and is included in Depreciation and amortization within the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Amortization expense $ 3.9 $ 3.8 $ 7.8 $ 7.6 See Note 1. Significant Accounting Policies and Practices As discussed in Note 1. Significant Accounting Policies and Practices No impairment charges were recorded during the three and six months ended June 30, 2019. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | 7. Goodwill The changes to carrying amount of goodwill for the six months ended June 30, 2020 were as follows: (millions) (unaudited) Commercial Aviation Total Balance as of December 31, 2019 $ 368.9 $ 217.1 $ 586.0 Foreign currency translation (0.2 ) — (0.2 ) Balance as of June 30, 2020 $ 368.7 $ 217.1 $ 585.8 See Note 1. Significant Accounting Policies and Practices |
Borrowing Arrangements
Borrowing Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | 8. Borrowing Arrangements Long-term borrowings as of June 30, 2020 and December 31, 2019, in order of preference, consist of: Amount Outstanding (millions) Maturity Date June 30, 2020 December 31, 2019 (unaudited) Senior Credit Facility, net of original discount on borrowings and deferred financing costs November 30, 2023 $ 341.3 $ 345.9 Other borrowings Various 25.1 23.1 Total obligations under Senior Credit Facility and other borrowings 366.4 369.0 Less: Current portion of obligations under Senior Credit Facility and other borrowings 16.2 17.9 Total long-term obligations under Senior Credit Facility and other borrowings $ 350.2 $ 351.1 Senior Credit Facility On November 30, 2018 (the "Closing Date"), the Company entered into a credit agreement (as amended prior to the Third Amendment Effective Date (as defined below), the “Credit Agreement”) with Bank of America, N.A. (“Bank of America”), 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 “Lenders”), pursuant to which the Lenders made available to the Company a senior secured credit facility (the “Senior Credit Facility”). On May 6, 2020, (the "Third Amendment Effective Date"), the Company entered into the third amendment (the "Third Amendment") to the Credit Agreement (as amended by the Third Amendment, the "Amended Credit Agreement"). Prior to the Third Amendment Effective Date, the Senior Credit Facility permitted aggregate borrowings of $ 550.0 million consisting of (i) a revolving credit facility of up to $ 325.0 million at any time outstanding, which includes a letter of credit facility that is limited to $ 100.0 million at any time outstanding, and (ii) a term loan facility of $ 225.0 million (the entire principal amount of which the Company drew on the Closing Date). Pursuant to the Amended Credit Agreement, the aggregate commitments under the revolving credit facility increased by $ 45.0 million to $ 370.0 million. The increased borrowing capacity will be available until May 5, 2021 , at which time it will revert back to $ 325.0 million. Prior to the Third Amendment Effective Date, borrowings under the Senior Credit Facility bore interest, at the Company’s option, (i) at a rate per annum based on the Company’s 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 “Applicable Margin”) for London Interbank Offered Rate (“LIBOR”) loans, subject to a "floor" on LIBOR of 0.00%, or a comparable or successor rate to LIBOR approved by Bank of America, 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%. Pursuant to the Third Amendment, (a) for the period from the Third Amendment Effective Date until the date on which the Company delivers a compliance certificate for the fiscal quarter ending June 30, 2021, (i) the interest rate applicable to both the term loan and revolving facilities was fixed at LIBOR plus 2.75% per annum and (ii) the per annum rate applicable to unused revolving credit facility commitments was fixed at 0.375%, after which time the interest rate and the per annum rate will be determined as was previously provided in the Credit Agreement on the Closing Date, (b) the LIBOR "floor" was increased to 1.00%, (c) the Company is subject to a one-time liquidity test that required it to have liquidity of at least $50.0 million at June 30, 2020, and (d) certain other negative and financial covenants were amended, which included restrictions on certain Investments, Permitted Acquisitions, Restricted Payments and Prepayments of Subordinated Debt (each as defined in the Amended Credit Agreement and described in the Third Amendment), through the delivery of the compliance certificate for the fiscal quarter ending June 30, 2021. Under the terms of the Credit Agreement, prior to the Third Amendment Effective Date, term loans were subject to scheduled quarterly payments of principal in installments equal to 1.25% of the initial aggregate principal amount of such term loan. In accordance with the Amended Credit Agreement, starting in the second quarter of 2021, the quarterly payments of principal in installments for term loans under the Senior Credit Facility will increase from 1.25% to 1.875% of the initial aggregate principal amount thereof. Prior to the Third Amendment Effective Date, the Company was required to maintain a maximum consolidated total debt to EBITDA ratio of not greater than 4.25:1.0 (with certain step-downs described in, and as calculated in accordance with, the Credit Agreement that were amended under the Third Amendment). In addition, the Company was 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). As of March 31, 2020, the step-down of the maximum total debt to EBITDA ratio required the Company to maintain a maximum ratio of not greater than 4.00:1.0. Under the terms of the Third Amendment, the maximum consolidated debt to EBITDA ratio was waived for the quarter ending June 30, 2020. Starting with the quarter ending September 30, 2020, the Company will be required to maintain a maximum consolidated total debt to EBITDA ratio (as calculated in accordance with the Third Amendment) of not greater than 5.50:1.0 (with certain step-downs described in the Amended Credit Agreement) and as of June 30, 2020 maintain a minimum consolidated fixed coverage ratio of not less than 2.75:1:0 (with certain step-ups described in the Amended Credit Agreement). On June 30, 2020 only, the Company was required to maintain $50.0 million of Minimum Liquidity (as described in the Amended 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 Company’s obligations under the Credit Agreement and such domestic subsidiaries’ guaranty obligations are secured by substantially all of their respective assets. The Senior Credit Facility matures on November 30, 2023. The proceeds from the Senior Credit Facility may be used to finance working capital, capital expenditures and acquisitions, as well as for other general corporate purposes. The Third Amendment did not change the guarantors, collateral, maturity date or permitted uses of proceeds, except as otherwise described above. The Company incurred approximately $1.6 million for fees and other customary closing costs in connection with the Amended Credit Agreement. As of June 30, 2020, the Company was in compliance with its debt covenants under the Credit Agreement. At June 30, 2020, the Company had $52.5 million of letters of credit outstanding under the Senior Credit Facility and borrowings against the Senior Credit Facility aggregated to $366.4 million. The weighted average interest rate on the Company's Senior Credit Facility was 3.5% and 3.8% for the periods ended June 30, 2020 and June 30, 2019, respectively. That rate included all outstanding LIBOR contracts and letters of credit. The weighted average interest rate on all outstanding borrowings, not including letters of credit, was 3.8% and 4.2%, respectively, at June 30, 2020 and June 30, 2019. Interest Rate Collars In May 2019, the Company entered into three-year On May 6, 2020, concurrent with entering into the Third Amendment, the Company de-designated the three-year interest rate collars. Prior to de-designation, the effective portion of the change in the fair value of the collars was reported in Accumulated other comprehensive loss. Upon de-designation, the balance in Accumulated other comprehensive loss is being amortized through April 2022, which is over the remaining life for which the interest rate collars had previously been designated as cash flow hedges. See Note 13. Comprehensive (Loss) Income Subordinated Convertible Debentures The Company acquired Subordinated Convertible Debentures ("Convertible Debentures") as a result of the October 2, 2012 acquisition of Central Parking Corporation. 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 periods ended June 30, 2020 and December 31, 2019, respectively. The approximate redemption value of the Convertible Debentures outstanding at each of June 30, 2020 and December 31, 2019 was $1.1 million. |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stock Repurchase Program | 9. Stock Repurchase Program In May 2016, the Company’s Board of Directors authorized the Company to repurchase, on 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. In July 2019, the Company's Board of Directors authorized the Company 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 393,975 shares of common stock during the six months ended June 30, 2020 at an average price of $38.78 per share. In March 2020, the Company's Board of Director's authorized the Company 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. As of June 30, 2020, no shares had been repurchased under this program. As of June 30, 2020, $50.0 million and $9.4 million remained available for repurchase under the March 2020 and July 2019 stock repurchase programs, respectively. Under the programs, repurchases of the Company's common stock may be made in open market transactions effected through a broker-dealer at prevailing market prices, in block trades, or by other means in accordance with Rules 10b-18, to the extent relied upon, and 10b5-1 under the Exchange Act at times and prices considered to be appropriate at the Company's discretion. The stock repurchase programs do not obligate the Company to repurchase any particular amount of common stock, have no fixed termination date, and may be suspended at any time at the Company's discretion. On March 10, 2020 and continuing through June 30, 2020, in order to improve the Company's liquidity during the COVID-19 pandemic, the Company suspended repurchases under the stock repurchase programs. The table below summarizes stock repurchase activity under the stock repurchase programs during the three and six months ended June 30, 2020 and 2019, respectively: Three Months Ended Six Months Ended (millions, except for share and per share data) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Total number of shares repurchased — 348,974 393,975 421,716 Average price paid per share $ — $ 32.33 $ 38.78 $ 32.33 Total value of shares repurchased $ — $ 11.3 $ 15.3 $ 13.6 The following table summarizes the remaining authorized repurchase amounts in the aggregate under the stock repurchase programs as of June 30, 2020: (millions) (unaudited) June 30, 2020 Total authorized repurchase amount $ 100.0 Total value of shares repurchased 40.6 Total remaining authorized repurchase amount $ 59.4 |
Bradley Agreement
Bradley Agreement | 6 Months Ended |
Jun. 30, 2020 | |
Contractors [Abstract] | |
Bradley Agreement | 10. Bradley Agreement In February 2000, the Company, through a partnership agreement with a minority partner (the “Partnership”), entered into a 25-year agreement (the "Bradley Agreement") with the State of Connecticut (the “State”) that was due to expire on April 6, 2025, under which the Company would operate garage and surface parking spaces at Bradley International Airport (“Bradley”) located in the Hartford, Connecticut metropolitan area. Under the terms of the Bradley Agreement, the parking garage was financed through the issuance of State of Connecticut special facility revenue bonds and provided that the Company deposited, with the trustee for the bondholders, all gross revenues collected from operations of the garage and surface parking. From those gross revenues, the trustee paid debt service on the special facility revenue bonds outstanding, operating and capital maintenance expenses of the garage and surface parking facilities, and specific annual guaranteed minimum payments to the State. All of the cash flows from the parking facilities were pledged to the security of the special facility revenue bonds and were collected and deposited with the bond trustee. Each month the bond trustee made certain required monthly distributions, which were characterized as “Guaranteed Payments.” To the extent the monthly gross receipts generated by the parking facilities were not sufficient for the bond trustee to make the required Guaranteed Payments, the Company was obligated to deliver the deficiency amount to the bond trustee, with such deficiency payments representing interest bearing advances to the bond trustee. On June 30, 2020, the Company and the State agreed to terminate the Bradley Agreement, with an effective date of May 31, 2020 (the “Termination Agreement”). The Company then entered into a management type contract with the Connecticut Airport Authority, effective June 1, 2020 (“Bradley Management Agreement”), under which the Company will provide the same parking services for Bradley. Under the terms of the Bradley Management Agreement, the Company is no longer required to make deficiency payments. In addition, other than the contingent consideration discussed below, the Company has no other ongoing obligations under the Bradley Agreement. The total deficiency repayments (net of payments made) from the State, through May 31, 2020, were not significant. The total deficiency repayments (net of payments made), interest and premium received and recognized under the Bradley Agreement for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Deficiency repayments $ — $ 1.8 $ 0.1 $ 2.4 Interest — 0.5 0.1 0.5 Premium — 0.2 — 0.2 Deficiency payments made under the Bradley Agreement were recorded as an increase in Cost of services - management type contracts and deficiency repayments, interest and premium received under the Bradley Agreement were recorded as reductions to Cost of services - management type contracts. The reimbursement of principal, interest and premium was recognized when received. On June 30, 2020, concurrent with the termination of the Bradley Agreement and effective as of May 31, 2020, the Company entered into an agreement to purchase the minority partners’ share in the Partnership previously established to execute the Bradley Agreement for a total cash consideration of $1.7 million. As of June 30, 2020, the cash consideration was included within Accrued and other current liabilities |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation Stock Grants There were 25,066 and 14,076 stock grants granted during the six months ended June 30, 2020 and 2019, respectively. The Company recognized $0.5 million of stock-based compensation expense related to stock grants for the three and six months ended June 30, 2020 and 2019, respectively. Restricted Stock Units During the six months ended June 30, 2019, 37,235 The table below shows the Company's stock-based compensation expense related to the restricted stock units for the three and six months ended June 30, 2020 and 2019, respectively, and is included in General and administrative expenses within the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Stock-based compensation expense $ 0.3 $ 0.3 $ 0.6 $ 0.5 As of June 30, 2020, there was $1.1 million of unrecognized stock-based compensation costs related to the restricted stock units that are expected to be recognized over a weighted average remaining period of approximately 1.4 years. Performance Share Units During the six months ended June 30, 2020 and 2019, the Company granted 96,056 and 125,232 performance share units to certain executives, respectively. During the six months ended June 30, 2020, 1,468 performance share units vested related to certain participating executives being eligible for retirement. No performance share units vested during the six months ended June 30, 2019. The table below shows the Company's stock-based compensation expense (reduction of expense) related to the Performance-Based Incentive Program for the three and six months ended June 30, 2020 and 2019, respectively, which is included in General and administrative expenses within the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Stock-based compensation expense $ 0.1 $ 0.6 $ (3.1) $ 0.8 As of June 30, 2020, there was $0.1 million of unrecognized compensation expense related to performance share unit awards, which is expected to be recognized over a weighted average period of approximately 0.4 years. |
Net (Loss) Income per Common Sh
Net (Loss) Income per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income per Common Share | 12. Net (Loss) Income per Common Share Basic net (loss) income per share is computed by dividing net (loss) income by the weighted daily average number of shares of common stock outstanding during the period. Diluted net (loss) income per share is based upon the weighted daily average number of shares of common stock outstanding for the period plus dilutive potential common shares, including restricted stock units, using the treasury-stock method. Basic and diluted net (loss) income per common share and a reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding is as follows: Three Months Ended Six Months Ended (millions, except share and per share data) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net (loss) income attributable to SP Plus Corporation $ (39.1 ) $ 15.2 $ (85.2 ) $ 25.8 Basic weighted average common shares outstanding 20,972,057 22,382,139 21,062,495 22,445,825 Dilutive impact of share-based awards — 150,074 — 154,282 Diluted weighted average common shares outstanding 20,972,057 22,532,213 21,062,495 22,600,107 Net (loss) income per common share Basic $ (1.86 ) $ 0.68 $ (4.05 ) $ 1.15 Diluted $ (1.86 ) $ 0.68 $ (4.05 ) $ 1.14 During the three and six months ended June 30, 2020, common stock equivalents arising from 153,442 restricted stock units were considered anti-dilutive. For the three and six months ended June 30, 2020 and 2019, 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 dates. 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. |
Comprehensive (Loss) Income
Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2020 | |
Comprehensive Income Net Of Tax [Abstract] | |
Comprehensive (Loss) Income | 13. Comprehensive (Loss) Income The components of other comprehensive (loss) income and income tax benefit allocated to each component for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (millions) (unaudited) Before Tax Amount Income Tax Net of Tax Amount Before Tax Amount Income Tax Net of Tax Amount Translation adjustments $ (0.1 ) $ — $ (0.1 ) $ (0.3 ) $ — $ (0.3 ) Change in fair value of interest rate collars 0.2 — 0.2 (3.6 ) (1.0 ) (2.6 ) Other Comprehensive (loss) income $ 0.1 $ — $ 0.1 $ (3.9 ) $ (1.0 ) $ (2.9 ) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (millions) (unaudited) Before Tax Amount Income Tax Net of Tax Amount Before Tax Amount Income Tax Net of Tax Amount Translation adjustments $ (0.1 ) $ — $ (0.1 ) $ 0.1 $ — $ 0.1 Change in fair value of interest rate collars (1.1 ) (0.3 ) (0.8 ) (1.1 ) (0.3 ) (0.8 ) Other Comprehensive loss $ (1.2 ) $ (0.3 ) $ (0.9 ) $ (1.0 ) $ (0.3 ) $ (0.7 ) The changes to accumulated other comprehensive loss by component for the six months ended June 30, 2020, were as follows: (millions) (unaudited) Foreign Currency Translation Adjustments Change in Fair Value of Interest Rate Collars Total Accumulated Other Comprehensive Loss Balance as of December 31, 2019 $ (2.3 ) $ (0.4 ) $ (2.7 ) Other comprehensive loss before reclassification (0.3 ) (2.9 ) (3.2 ) Amounts reclassified from accumulated other comprehensive loss — 0.3 0.3 Balance as of June 30, 2020 $ (2.6 ) $ (3.0 ) $ (5.6 ) The changes to accumulated other comprehensive loss by component for the six months ended June 30, 2019, were as follows: (millions) (unaudited) Foreign Currency Translation Adjustments Change in Fair Value of Interest Rate Collars Total Accumulated Other Comprehensive Loss Balance as of December 31, 2018 $ (2.4 ) $ — $ (2.4 ) Other comprehensive income (loss) before reclassification 0.1 (0.8 ) (0.7 ) Balance as of June 30, 2019 $ (2.3 ) $ (0.8 ) $ (3.1 ) Reclassifications from accumulated other comprehensive loss for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended June 30 Six Months Ended June 30 Classification in the Condensed Consolidated Statements of Income Interest Rate Collars: 2020 2019 2020 2019 Net realized loss $ 0.4 $ — $ 0.4 $ — Other expense (income) Reclassifications before tax 0.4 — 0.4 — Income tax benefit 0.1 — 0.1 — Reclassifications, net of tax $ 0.3 $ — $ 0.3 $ — |
Business Unit Segment Informati
Business Unit Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Unit Segment Information | 14. Business Unit Segment Information Segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the Company's Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s segments are organized in a manner consistent with which discrete financial information is available and evaluated regularly by the CODM in deciding how to allocate resources and assess performance. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by the CODM. The CODM is the Company’s chief executive officer. Each of the operating segments are directly responsible for revenue and expenses related to their operations including direct segment 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 gross profit as its primary measure of performance, but does not evaluate segments using discrete asset information. There are no inter-segment transactions and the Company does not allocate other income, interest expense, depreciation and amortization or income taxes to the 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. • 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. • 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 include shuttle and ground transportation services, valet services, baggage handling, baggage repair and replacement, remote air check-in services, wheelchair assist services and other services. • "Other" consists of ancillary revenue that is not specifically attributable to Commercial or Aviation and certain unallocated items, such as and including prior year insurance reserve adjustments and other corporate items. The following is a summary of revenues and gross profit by operating segment for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 Gross Margin % June 30, 2019 Gross Margin % June 30, 2020 Gross Margin % June 30, 2019 Gross Margin % Services Revenue Commercial Lease type contracts $ 28.8 $ 96.9 $ 105.1 $ 187.4 Management type contracts 41.5 60.9 113.5 128.3 Total Commercial 70.3 157.8 218.6 315.7 Aviation Lease type contracts 1.3 8.2 6.5 15.3 Management type contracts 19.8 66.7 82.5 129.9 Total Aviation 21.1 74.9 89.0 145.2 Other Lease type contracts 0.1 0.1 0.3 0.3 Management type contracts 1.5 2.3 3.9 4.6 Total Other 1.6 2.4 4.2 4.9 Reimbursed management type contract revenue 110.4 179.1 301.3 357.8 Total Services Revenue $ 203.4 $ 414.2 $ 613.1 $ 823.6 Gross Profit Commercial Lease type contracts $ (13.8 ) (47.9 )% $ 9.8 10.1 % $ (14.7 ) (14.0 )% $ 14.8 7.9 % Management type contracts 12.2 29.4 % 24.4 40.1 % 37.6 33.1 % 48.8 38.0 % Lease impairment (16.7 ) N/M — N/M (94.2 ) N/M — N/M Total Commercial (18.3 ) 34.2 (71.3 ) 63.6 Aviation Lease type contracts (0.3 ) (23.1 )% 2.5 30.5 % — N/M 4.0 26.1 % Management type contracts 1.8 9.1 % 19.6 29.4 % 16.4 19.9 % 35.3 27.2 % Total Aviation 1.5 22.1 16.4 39.3 Other Lease type contracts 1.2 N/M 1.1 N/M 3.3 N/M 2.7 N/M Management type contracts 2.2 N/M 4.5 N/M 8.0 N/M 9.5 N/M Total Other 3.4 5.6 11.3 12.2 Total gross profit $ (13.4 ) $ 61.9 $ (43.6 ) $ 115.1 N/M - Not Meaningful |
Significant Accounting Polici_2
Significant Accounting Policies and Practices (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the Condensed Consolidated Balance Sheets, Statements of Income, Comprehensive Income, Stockholders' Equity and Cash Flows prepared in conformity with U.S. GAAP have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that might be expected for any other interim period or the fiscal year ending December 31, 2020. The financial statements presented in this report should be read in conjunction with the Company’s annual Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K filed on February 20, 2020 with the Securities and Exchange Commission. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents represent funds temporarily invested in money market instruments with maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements were $0.2 million and $0.5 million as of June 30, 2020 and December 31, 2019, respectively, and are included within Cash and cash equivalents within the Condensed Consolidated Balance Sheets. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Accounts receivable, net of the allowance for doubtful accounts, represents the Company's estimate of the amount that ultimately will be realized in cash. Management reviews the adequacy of its allowance for doubtful accounts on an ongoing basis, primarily using a review of specific accounts, as well as historical collection trends and aging of receivables, and makes adjustments to 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 June 30, 2020 and December 31, 2019 the Company's allowance for doubtful accounts was $5.0 million and $1.9 million, respectively. Transactions affecting the allowance for doubtful accounts receivable during the six months ended June 30, 2020 and year ended December 31, 2019 were as follows: (millions) (unaudited) June 30, 2020 December 31, 2019 Beginning Balance $ 1.9 $ 1.0 Provision for credit losses 5.6 2.1 Write offs and other (2.5 ) (1.2 ) Ending Balance $ 5.0 $ 1.9 |
Equity Investments in Unconsolidated Entities | Equity Investments in Unconsolidated Entities The Company has ownership interests in 29 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 24 are consolidated under the VIE or voting interest models and 5 are unconsolidated where the Company’s ownership interests range from 30-50 percent and for which there are no indicators of control. The Company accounts for such investments under the equity method of accounting, and its underlying share of each investee’s equity is included in Equity investments in unconsolidated entities within the Condensed Consolidated Balance Sheets. As the operations of these entities are consistent with the Company’s underlying core business operations, the equity in earnings of these investments are included in Services revenue - lease type contracts within the Condensed Consolidated Statements of Income. The equity earnings in these related investments were $ 0.2 million and $ million for the three months ended June 30, 2020 and 2019, respectively, and were $ million and $ 1.6 million for the six months ended June 30, 2020 and 2019, respectively. |
Other Noncurrent Assets | Other Noncurrent Assets Other noncurrent assets consisted of advances and deposits and cost of contracts, net, as of June 30, 2020 and December 31, 2019. |
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Accrued and other current liabilities consisted of accrued rent, compensation, payroll withholdings, property, payroll and other taxes, insurance, and other accrued liabilities as of June 30, 2020 and December 31, 2019. |
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 percent, ownership interest and the results of which are consolidated and included within the Condensed Consolidated Financial Statements. |
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 indicating the carrying value may not be recoverable. The goodwill impairment test is performed at the reporting unit level; the Company's reporting units represent its operating segments, consisting of Commercial and Aviation. Factors that could trigger an impairment review include significant under-performance relative to expected historical or projected future operating results, significant changes in the use of acquired assets or 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. As of January 1, 2020, the Company adopted Accounting Standards Update ("ASU") 2017-04, which eliminated the two step approach from the current goodwill impairment test and allows impairment to be calculated based on the results of the first step. 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 reporting unit, goodwill is not considered impaired, and the Company is not required to perform further testing. Beginning in March 2020, the Company noted that the COVID-19 pandemic and the resulting stay at home orders issued by local governments were impacting certain of the Company's businesses. These factors have significantly impacted the hospitality and travel industries, as well as overall consumer discretionary spending. Due to the impacts of COVID-19, revenues for certain markets in which we operate have dropped significantly and were below revenues assumed in our annual impairment testing. The Company does not know how long the impacts of COVID-19 will impact the results of the Company. As a result of the impact of COVID-19 on the Company's expected future operating cash flows, the Company completed an assessment of goodwill impairment as of June 30, 2020 and concluded that it was more likely than not that the estimated fair values of each of the Company’s reporting units exceeded their carrying amount of net assets assigned to each reporting unit. As a result, goodwill was not impaired. See Note 7. Goodwill in the notes to the Condensed Consolidated Financial Statements for further discussion. 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 other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to their remaining useful lives. Assumptions and estimates about future values and remaining useful lives of 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 the Company's 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. As a result of the impact of COVID-19 on the Company's expected future operating cash flows, the Company determined certain impairment testing triggers had occurred related to the Company’s intangible assets. Accordingly, the Company analyzed undiscounted cash flows for certain intangible assets as of June 30, 2020. Based on that undiscounted cash flow analysis, the Company determined that estimated net carrying values exceeded undiscounted future cash flows for certain intangible assets and therefore as of June 30 , 2020, certain intangible assets were impaired. See Note 6 . Other Intangible Assets , net in the notes to the Condensed Consolidated Financial Statements for further discussion. For both goodwill and intangible assets, future events may indicate differences from our judgments and estimates which could, in turn, result in impairment charges. Future events that may result in impairment charges include extended unfavorable economic impacts of COVID-19, increases in interest rates, which would impact discount rates, or other factors which could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities. |
Long-Lived Assets | Long-Lived Assets The Company evaluates long-lived assets, including right-of-use ("ROU") assets, leasehold improvements, equipment and construction in progress, for impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The Company groups assets at the lowest level for which cash flows are separately identified in order to measure an impairment. Events or circumstances that would result in an impairment review include a significant change in the use of an asset, the planned sale or disposal of an asset, or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset group. 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. As a result of the impact of COVID-19 on the Company's expected future operating cash flows, we determined certain impairment testing triggers had occurred for ROU assets associated with certain operating leases. See Note 2. Leases Assumptions and estimates used to determine cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any future changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets and could result in additional impairment charges. Future events that may result in impairment charges include extended unfavorable economic impacts of COVID-19, or other factors which could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities. |
Income Taxes | Income taxes Deferred tax assets increased $32.4 million to $43.0 million as of June 30, 2020 compared to $10.6 million as of December 31, 2019. The increase in deferred tax assets is due to the decrease in deferred tax liabilities related to the impairment of ROU assets during the six months ended June 30, 2020, as well as an increase in deferred tax assets related to the deferral of FICA taxes resulting from the Coronavirus Aid, Relief, & Economic Security (CARES) Act during the six months ended June 30, 2020. The current tax liability also increased as of June 30, 2020 as compared to December 31, 2019 due to the impairment of ROU assets and the deferral of FICA taxes as a result of the CARES Act. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements During the six months ended June 30, 2020, the Company adopted the following ASUs with no material impact on the Condensed Consolidated Financial Statements: ASU Topic Method of Adoption 2016-13 Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326) Prospective 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment Prospective 2018-13 Fair Value Measurement (Topic 820) Prospective 2018-15 Intangibles – Goodwill and Other – Internal - Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Prospective 20018-17 Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities Prospective 2018-18 Collaborative Arrangements (Topic 808) Prospective 2018-19 Codification Improvements to Topic 326, Financial Instruments - Credit Losses Prospective 2019-04 Codification Improvements to Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825) Prospective 2019-08 Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), Codification Improvements - Share-Based Consideration Payable to a Customer Prospective 2020-02 Financial Instruments-Credit Losses (Topic 326) And Leases (Topic 842)-Amendments to Sec Paragraphs Pursuant to Sec Staff Accounting Bulletin No. 119 And Update to Sec Section On Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) Prospective 2019-12 Simplifying the Accounting for Income Taxes (Topic 740) Prospective, early adopted Accounting Pronouncements to be Adopted Effects of Reference Rate Reform on Financial Reporting In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Investments - equity securities; Investments-Equity Method and Joint Ventures; Derivatives and Hedging In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) |
Significant Accounting Polici_3
Significant Accounting Policies and Practices (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Transactions Affecting Allowance for Doubtful Accounts Receivable | Transactions affecting the allowance for doubtful accounts receivable during the six months ended June 30, 2020 and year ended December 31, 2019 were as follows: (millions) (unaudited) June 30, 2020 December 31, 2019 Beginning Balance $ 1.9 $ 1.0 Provision for credit losses 5.6 2.1 Write offs and other (2.5 ) (1.2 ) Ending Balance $ 5.0 $ 1.9 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | During the six months ended June 30, 2020, the Company adopted the following ASUs with no material impact on the Condensed Consolidated Financial Statements: ASU Topic Method of Adoption 2016-13 Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326) Prospective 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment Prospective 2018-13 Fair Value Measurement (Topic 820) Prospective 2018-15 Intangibles – Goodwill and Other – Internal - Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Prospective 20018-17 Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities Prospective 2018-18 Collaborative Arrangements (Topic 808) Prospective 2018-19 Codification Improvements to Topic 326, Financial Instruments - Credit Losses Prospective 2019-04 Codification Improvements to Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 825) Prospective 2019-08 Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), Codification Improvements - Share-Based Consideration Payable to a Customer Prospective 2020-02 Financial Instruments-Credit Losses (Topic 326) And Leases (Topic 842)-Amendments to Sec Paragraphs Pursuant to Sec Staff Accounting Bulletin No. 119 And Update to Sec Section On Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) Prospective 2019-12 Simplifying the Accounting for Income Taxes (Topic 740) Prospective, early adopted |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Components of ROU Assets and Lease Liabilities | The components of ROU assets and lease liabilities and classification on the Condensed Consolidated Balance Sheet as of June 30, 2020 and December 31, 2019 were as follows: (millions) (unaudited) Classification June 30, 2020 December 31, 2019 Assets Operating Right-of-use assets $ 261.8 $ 431.7 Finance Leasehold improvements, equipment and construction in progress, net 22.0 18.6 Total leased assets $ 283.8 $ 450.3 Liabilities Current Operating Short-term lease liabilities $ 97.8 $ 115.2 Finance Current portion of long-term obligations under credit facility and other long-term borrowings 4.1 3.1 Noncurrent Operating Long-term lease liabilities 266.3 327.7 Finance Other long-term borrowings 17.9 15.6 Total lease liabilities $ 386.1 $ 461.6 |
Schedule of Components of Lease Cost | The components of lease cost and classification in the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended (millions) (unaudited) Classification June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating lease cost (a) Cost of services - lease type contracts $ 25.2 $ 60.1 $ 60.8 $ 118.4 Short-term lease (a) Cost of services - lease type contracts 5.4 9.1 14.2 17.9 Variable Lease Cost of services - lease type contracts 1.9 15.3 9.7 28.4 Operating lease cost 32.5 84.5 84.7 164.7 Finance lease cost Amortization of leased assets Depreciation and amortization 0.8 0.3 1.5 0.8 Interest on lease liabilities Interest expense 0.3 0.2 0.5 0.4 Lease impairment Lease impairment 16.7 — 94.2 — Net lease cost $ 50.3 $ 85.0 $ 180.9 $ 165.9 (a) Operating lease cost included in General and administrative expenses are related to leases for office space amounting to $1.5 million and $3.0 million for the three and six months ended June 30, 2020, respectively |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities, lease term, and discount rate information as of June 30, 2020 were as follows: (millions) (unaudited) Operating Leases Liabilities Finance Leases Liabilities Total 2020 $ 62.3 $ 2.5 $ 64.8 2021 95.5 5.0 100.5 2022 77.2 4.5 81.7 2023 54.2 3.6 57.8 2024 37.9 2.4 40.3 After 2024 90.3 6.5 96.8 Total lease payments 417.4 24.5 441.9 Less: Imputed interest 53.3 2.5 55.8 Present value of lease liabilities $ 364.1 $ 22.0 $ 386.1 Weighted-average remaining lease term (years) 5.4 6.2 Weighted-average discount rate 5.0 % 4.6 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the six months ended June 30, 2020 and 2019 was as follows: Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows related to operating leases $ 70.8 $ 90.5 Operating cash flows related to interest on finance leases 0.5 0.4 Financing cash flows related to finance leases 1.7 1.0 Leased assets obtained in exchange for new operating liabilities 9.2 29.2 Leased assets obtained in exchange for new finance lease liabilities 4.9 3.6 |
Acquisition, Restructuring an_2
Acquisition, Restructuring and Integration Costs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Acquisition, Restructuring and Integration Related Costs | The acquisition, restructuring and integration related costs for the three and six months ended June 30, 2020 and 2019 are summarized in the following table: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Cost of services $ 0.6 $ — $ 1.0 $ — General and administrative expenses 3.7 0.3 4.2 1.3 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Remaining Performance Obligations | The Company expects to recognize the remaining performance obligations as revenue in future periods as follows: (millions) (unaudited) Remaining Performance Obligations 2020 $ 24.0 2021 35.8 2022 20.4 2023 13.0 2024 7.2 2025 and thereafter 7.0 Total $ 107.4 |
Schedule of Contract with Customer, Asset and Liability | The following table provides information about accounts receivable, contract assets and contract liabilities with customers and clients as of June 30, 2020 (unaudited) and December 31, 2019: (millions) June 30, 2020 December 31, 2019 Accounts receivable $ 93.3 $ 151.3 Contract asset 7.0 11.0 Contract liability (11.3 ) (19.4 ) Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 Balance, beginning of period $ 11.0 $ 11.4 Additional contract assets 7.0 11.8 Reclassification to accounts receivable (11.0 ) (11.4 ) Balance, end of period $ 7.0 $ 11.8 The following table provides information about changes to contract liability balances during the six months ended June 30, 2020 and 2019 : Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 Balance, beginning of period $ (19.4 ) $ (19.1 ) Additional contract liabilities (11.3 ) (14.9 ) Recognition of revenue from contract liabilities 19.4 19.1 Balance, end of period $ (11.3 ) $ (14.9 ) |
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 and certain management type contracts are recorded as a reduction of revenue and were not significant for the three and six months ended June 30, 2020 and 2019, respectively. Amortization expense related to cost of contracts for the three and six months ended June 30, 2020 and 2019 was as follows: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Amortization expense $ 0.3 $ 0.3 $ 0.7 $ 0.6 |
Other Intangible Assets, net (T
Other Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets, Net | The components of other intangible assets, net, at June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 (unaudited) December 31, 2019 (millions) Weighted Average Life (Years) Acquired Intangible Assets, Gross Accumulated Amortization Acquired Intangible Assets, Net Acquired Intangible Assets, Gross Accumulated Amortization Acquired Intangible Assets, Net Covenant not to compete 2.5 $ 2.9 $ (0.8 ) $ 2.1 $ 2.9 $ (0.3 ) $ 2.6 Trade names and trademarks 3.4 5.6 (1.8 ) 3.8 5.6 (1.2 ) 4.4 Proprietary know how 4.2 6.7 (2.8 ) 3.9 10.4 (2.0 ) 8.4 Management contract rights 8.6 81.0 (40.0 ) 41.0 81.0 (37.4 ) 43.6 Customer relationships 13.4 100.4 (10.5 ) 89.9 100.4 (7.2 ) 93.2 Acquired intangible assets, net (1) 11.1 $ 196.6 $ (55.9 ) $ 140.7 $ 200.3 $ (48.1 ) $ 152.2 (1) Intangible assets have estimated remaining lives between one and fourteen years. |
Summary of Amortization of Intangible Assets | The table below shows the amortization expense related to intangible assets for the three and six months ended June 30, 2020 and 2019, respectively, and is included in Depreciation and amortization within the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Amortization expense $ 3.9 $ 3.8 $ 7.8 $ 7.6 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Amounts for Goodwill and Changes to Carrying Value by Operating Segment | The changes to carrying amount of goodwill for the six months ended June 30, 2020 were as follows: (millions) (unaudited) Commercial Aviation Total Balance as of December 31, 2019 $ 368.9 $ 217.1 $ 586.0 Foreign currency translation (0.2 ) — (0.2 ) Balance as of June 30, 2020 $ 368.7 $ 217.1 $ 585.8 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Borrowings | Long-term borrowings as of June 30, 2020 and December 31, 2019, in order of preference, consist of: Amount Outstanding (millions) Maturity Date June 30, 2020 December 31, 2019 (unaudited) Senior Credit Facility, net of original discount on borrowings and deferred financing costs November 30, 2023 $ 341.3 $ 345.9 Other borrowings Various 25.1 23.1 Total obligations under Senior Credit Facility and other borrowings 366.4 369.0 Less: Current portion of obligations under Senior Credit Facility and other borrowings 16.2 17.9 Total long-term obligations under Senior Credit Facility and other borrowings $ 350.2 $ 351.1 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Summary of Stock Repurchase Activity and Remaining Authorized Repurchase Amounts | The table below summarizes stock repurchase activity under the stock repurchase programs during the three and six months ended June 30, 2020 and 2019, respectively: Three Months Ended Six Months Ended (millions, except for share and per share data) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Total number of shares repurchased — 348,974 393,975 421,716 Average price paid per share $ — $ 32.33 $ 38.78 $ 32.33 Total value of shares repurchased $ — $ 11.3 $ 15.3 $ 13.6 The following table summarizes the remaining authorized repurchase amounts in the aggregate under the stock repurchase programs as of June 30, 2020: (millions) (unaudited) June 30, 2020 Total authorized repurchase amount $ 100.0 Total value of shares repurchased 40.6 Total remaining authorized repurchase amount $ 59.4 |
Bradley Agreement (Tables)
Bradley Agreement (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Contractors [Abstract] | |
Schedule of Deficiency Payments made, Net of Reimbursements | The total deficiency repayments (net of payments made), interest and premium received and recognized under the Bradley Agreement for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Deficiency repayments $ — $ 1.8 $ 0.1 $ 2.4 Interest — 0.5 0.1 0.5 Premium — 0.2 — 0.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | The table below shows the Company's stock-based compensation expense related to the restricted stock units for the three and six months ended June 30, 2020 and 2019, respectively, and is included in General and administrative expenses within the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Stock-based compensation expense $ 0.3 $ 0.3 $ 0.6 $ 0.5 The table below shows the Company's stock-based compensation expense (reduction of expense) related to the Performance-Based Incentive Program for the three and six months ended June 30, 2020 and 2019, respectively, which is included in General and administrative expenses within the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Stock-based compensation expense $ 0.1 $ 0.6 $ (3.1) $ 0.8 |
Net (Loss) Income per Common _2
Net (Loss) Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) Income per Common Share and Reconciliation of Weighted Average Shares | Basic and diluted net (loss) income per common share and a reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding is as follows: Three Months Ended Six Months Ended (millions, except share and per share data) (unaudited) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net (loss) income attributable to SP Plus Corporation $ (39.1 ) $ 15.2 $ (85.2 ) $ 25.8 Basic weighted average common shares outstanding 20,972,057 22,382,139 21,062,495 22,445,825 Dilutive impact of share-based awards — 150,074 — 154,282 Diluted weighted average common shares outstanding 20,972,057 22,532,213 21,062,495 22,600,107 Net (loss) income per common share Basic $ (1.86 ) $ 0.68 $ (4.05 ) $ 1.15 Diluted $ (1.86 ) $ 0.68 $ (4.05 ) $ 1.14 |
Comprehensive (Loss) Income (Ta
Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Comprehensive Income Net Of Tax [Abstract] | |
Components of Other Comprehensive (Loss) Income and Income Tax Benefit Allocated | The components of other comprehensive (loss) income and income tax benefit allocated to each component for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (millions) (unaudited) Before Tax Amount Income Tax Net of Tax Amount Before Tax Amount Income Tax Net of Tax Amount Translation adjustments $ (0.1 ) $ — $ (0.1 ) $ (0.3 ) $ — $ (0.3 ) Change in fair value of interest rate collars 0.2 — 0.2 (3.6 ) (1.0 ) (2.6 ) Other Comprehensive (loss) income $ 0.1 $ — $ 0.1 $ (3.9 ) $ (1.0 ) $ (2.9 ) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (millions) (unaudited) Before Tax Amount Income Tax Net of Tax Amount Before Tax Amount Income Tax Net of Tax Amount Translation adjustments $ (0.1 ) $ — $ (0.1 ) $ 0.1 $ — $ 0.1 Change in fair value of interest rate collars (1.1 ) (0.3 ) (0.8 ) (1.1 ) (0.3 ) (0.8 ) Other Comprehensive loss $ (1.2 ) $ (0.3 ) $ (0.9 ) $ (1.0 ) $ (0.3 ) $ (0.7 ) |
Components of Accumulated Other Comprehensive Loss | The changes to accumulated other comprehensive loss by component for the six months ended June 30, 2020, were as follows: (millions) (unaudited) Foreign Currency Translation Adjustments Change in Fair Value of Interest Rate Collars Total Accumulated Other Comprehensive Loss Balance as of December 31, 2019 $ (2.3 ) $ (0.4 ) $ (2.7 ) Other comprehensive loss before reclassification (0.3 ) (2.9 ) (3.2 ) Amounts reclassified from accumulated other comprehensive loss — 0.3 0.3 Balance as of June 30, 2020 $ (2.6 ) $ (3.0 ) $ (5.6 ) The changes to accumulated other comprehensive loss by component for the six months ended June 30, 2019, were as follows: (millions) (unaudited) Foreign Currency Translation Adjustments Change in Fair Value of Interest Rate Collars Total Accumulated Other Comprehensive Loss Balance as of December 31, 2018 $ (2.4 ) $ — $ (2.4 ) Other comprehensive income (loss) before reclassification 0.1 (0.8 ) (0.7 ) Balance as of June 30, 2019 $ (2.3 ) $ (0.8 ) $ (3.1 ) |
Reclassification from Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended June 30 Six Months Ended June 30 Classification in the Condensed Consolidated Statements of Income Interest Rate Collars: 2020 2019 2020 2019 Net realized loss $ 0.4 $ — $ 0.4 $ — Other expense (income) Reclassifications before tax 0.4 — 0.4 — Income tax benefit 0.1 — 0.1 — Reclassifications, net of tax $ 0.3 $ — $ 0.3 $ — |
Business Unit Segment Informa_2
Business Unit Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Gross Profit by Regions | The following is a summary of revenues and gross profit by operating segment for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended (millions) (unaudited) June 30, 2020 Gross Margin % June 30, 2019 Gross Margin % June 30, 2020 Gross Margin % June 30, 2019 Gross Margin % Services Revenue Commercial Lease type contracts $ 28.8 $ 96.9 $ 105.1 $ 187.4 Management type contracts 41.5 60.9 113.5 128.3 Total Commercial 70.3 157.8 218.6 315.7 Aviation Lease type contracts 1.3 8.2 6.5 15.3 Management type contracts 19.8 66.7 82.5 129.9 Total Aviation 21.1 74.9 89.0 145.2 Other Lease type contracts 0.1 0.1 0.3 0.3 Management type contracts 1.5 2.3 3.9 4.6 Total Other 1.6 2.4 4.2 4.9 Reimbursed management type contract revenue 110.4 179.1 301.3 357.8 Total Services Revenue $ 203.4 $ 414.2 $ 613.1 $ 823.6 Gross Profit Commercial Lease type contracts $ (13.8 ) (47.9 )% $ 9.8 10.1 % $ (14.7 ) (14.0 )% $ 14.8 7.9 % Management type contracts 12.2 29.4 % 24.4 40.1 % 37.6 33.1 % 48.8 38.0 % Lease impairment (16.7 ) N/M — N/M (94.2 ) N/M — N/M Total Commercial (18.3 ) 34.2 (71.3 ) 63.6 Aviation Lease type contracts (0.3 ) (23.1 )% 2.5 30.5 % — N/M 4.0 26.1 % Management type contracts 1.8 9.1 % 19.6 29.4 % 16.4 19.9 % 35.3 27.2 % Total Aviation 1.5 22.1 16.4 39.3 Other Lease type contracts 1.2 N/M 1.1 N/M 3.3 N/M 2.7 N/M Management type contracts 2.2 N/M 4.5 N/M 8.0 N/M 9.5 N/M Total Other 3.4 5.6 11.3 12.2 Total gross profit $ (13.4 ) $ 61.9 $ (43.6 ) $ 115.1 |
Significant Accounting Polici_4
Significant Accounting Policies and Practices (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)partnershipvariable_interest_entityvoting_interest_model_entity | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Significant Accounting Policies and Practices | ||||||
Restricted cash and cash equivalents | $ 0.2 | $ 0.2 | $ 0.5 | |||
Allowance for doubtful accounts | 5 | $ 5 | 1.9 | $ 1 | ||
Number of ownership interest entities | partnership | 29 | |||||
Equity earnings in related investments | 0.2 | $ 0.9 | $ 0.8 | $ 1.6 | ||
Deferred tax assets increased | 32.4 | |||||
Deferred tax assets | $ 43 | $ 43 | $ 10.6 | |||
Minimum | ||||||
Significant Accounting Policies and Practices | ||||||
Ownership interests percentage | 30.00% | 30.00% | ||||
Maximum | ||||||
Significant Accounting Policies and Practices | ||||||
Ownership interests percentage | 50.00% | 50.00% | ||||
Primary Beneficiary | ||||||
Significant Accounting Policies and Practices | ||||||
Number of ownership interest entities | variable_interest_entity | 24 | |||||
Not Primary Beneficiary | ||||||
Significant Accounting Policies and Practices | ||||||
Number of ownership interest entities | voting_interest_model_entity | 5 |
Significant Accounting Polici_5
Significant Accounting Policies and Practices - Schedule of Transactions Affecting Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Beginning Balance | $ 1.9 | $ 1 | $ 1 |
Provision for credit losses | 5.6 | $ 0.3 | 2.1 |
Write offs and other | (2.5) | (1.2) | |
Ending Balance | $ 5 | $ 1.9 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Lessor, Lease, Description [Line Items] | |||||
Right-of-use assets | $ 261.8 | $ 261.8 | $ 431.7 | ||
Lease impairment | 16.7 | $ 0 | 94.2 | $ 0 | |
Rent concessions cares act | 8.9 | 8.9 | |||
Negotiable cost reductions cares act | 18.3 | 18.3 | |||
Sublease income | 0.4 | $ 0.4 | 0.8 | $ 1.1 | |
Commercial | |||||
Lessor, Lease, Description [Line Items] | |||||
Lease impairment | 94.2 | ||||
Level 3 | |||||
Lessor, Lease, Description [Line Items] | |||||
Right-of-use assets | 267.8 | 267.8 | |||
Right-of-use asset, fair value | $ 173.6 | $ 173.6 |
Leases - Schedule of Components
Leases - Schedule of Components of ROU Assets and Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Right-of-use assets | $ 261.8 | $ 431.7 |
Leasehold improvements, equipment and construction in progress, net | 22 | 18.6 |
Total leased assets | 283.8 | 450.3 |
Current | ||
Short-term lease liabilities | 97.8 | 115.2 |
Current portion of long-term obligations under credit facility and other long-term borrowings | 4.1 | 3.1 |
Noncurrent | ||
Long-term lease liabilities | 266.3 | 327.7 |
Other long-term borrowings | 17.9 | 15.6 |
Total lease liabilities | $ 386.1 | $ 461.6 |
Leases - Schedule of Componen_2
Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 25.2 | $ 60.1 | $ 60.8 | $ 118.4 |
Short-term lease | 5.4 | 9.1 | 14.2 | 17.9 |
Variable Lease | 1.9 | 15.3 | 9.7 | 28.4 |
Operating lease cost | 32.5 | 84.5 | 84.7 | 164.7 |
Amortization of leased assets | 0.8 | 0.3 | 1.5 | 0.8 |
Interest on lease liabilities | 0.3 | 0.2 | 0.5 | 0.4 |
Lease impairment | 16.7 | 0 | 94.2 | 0 |
Net lease cost | $ 50.3 | $ 85 | $ 180.9 | $ 165.9 |
Leases - Schedule of Componen_3
Leases - Schedule of Components of Lease Cost (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Lessor, Lease, Description [Line Items] | ||||
Operating lease cost | $ 25.2 | $ 60.1 | $ 60.8 | $ 118.4 |
Office Space | ||||
Lessor, Lease, Description [Line Items] | ||||
Operating lease cost | $ 1.5 | $ 1 | $ 3 | $ 2.3 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Millions | Jun. 30, 2020USD ($) |
Operating Leases Liabilities | |
2020 | $ 62.3 |
2021 | 95.5 |
2022 | 77.2 |
2023 | 54.2 |
2024 | 37.9 |
After 2024 | 90.3 |
Total lease payments | 417.4 |
Less: Imputed interest | 53.3 |
Present value of lease liabilities | $ 364.1 |
Weighted-average remaining lease term (years) | 5 years 4 months 24 days |
Weighted-average discount rate | 5.00% |
Finance Leases Liabilities | |
2020 | $ 2.5 |
2021 | 5 |
2022 | 4.5 |
2023 | 3.6 |
2024 | 2.4 |
After 2024 | 6.5 |
Total lease payments | 24.5 |
Less: Imputed interest | 2.5 |
Present value of lease liabilities | $ 22 |
Weighted-average remaining lease term (years) | 6 years 2 months 12 days |
Weighted-average discount rate | 4.60% |
Total | |
2020 | $ 64.8 |
2021 | 100.5 |
2022 | 81.7 |
2023 | 57.8 |
2024 | 40.3 |
After 2024 | 96.8 |
Total lease payments | 441.9 |
Less: Imputed interest | 55.8 |
Present value of lease liabilities | $ 386.1 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows related to operating leases | $ 70.8 | $ 90.5 |
Operating cash flows related to interest on finance leases | 0.5 | 0.4 |
Financing cash flows related to finance leases | 1.7 | 1 |
Leased assets obtained in exchange for new operating liabilities | 9.2 | 29.2 |
Leased assets obtained in exchange for new finance lease liabilities | $ 4.9 | $ 3.6 |
Acquisition, Restructuring an_3
Acquisition, Restructuring and Integration Costs - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accrued and Other Current Liabilities | |||
Business Acquisition [Line Items] | |||
Accrual for acquisition, restructuring and integration costs | $ 2.7 | $ 2.7 | $ 0.1 |
General and Administrative Expenses | |||
Business Acquisition [Line Items] | |||
Severance costs | $ 2.4 | $ 2.9 |
Acquisition, Restructuring an_4
Acquisition, Restructuring and Integration Costs - Schedule of Acquisition, Restructuring and Integration Related Costs (Details) - Central Merger - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cost of Services | ||||
Business Acquisition [Line Items] | ||||
Acquisition, restructuring, and integration related costs | $ 0.6 | $ 0 | $ 1 | $ 0 |
General and Administrative Expenses | ||||
Business Acquisition [Line Items] | ||||
Acquisition, restructuring, and integration related costs | $ 3.7 | $ 0.3 | $ 4.2 | $ 1.3 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |||||
Performance obligation unsatisfied or partially satisfied | $ 107,400,000 | $ 107,400,000 | |||
Impairment charges | 0 | $ 0 | 0 | $ 0 | |
Contract cost, accumulated amortization | 5,400,000 | 5,400,000 | $ 4,300,000 | ||
Contract cost, accumulated impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue - Schedule of Performan
Revenue - Schedule of Performance Obligations (Details) $ in Millions | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 107.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 24 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 35.8 |
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, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 20.4 |
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, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 13 |
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, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 7.2 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Performance Obligations | $ 7 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Revenue - Schedule of Perform_2
Revenue - Schedule of Performance Obligations (Details 1) $ in Millions | Jun. 30, 2020USD ($) |
Revenue From Contract With Customer [Abstract] | |
Remaining Performance Obligations | $ 107.4 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Asset and Liability (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Revenue From Contract With Customer [Abstract] | ||||
Accounts receivable | $ 93.3 | $ 151.3 | ||
Contract asset | 7 | 11 | $ 11.8 | $ 11.4 |
Contract liability | $ (11.3) | $ (19.4) | $ (14.9) | $ (19.1) |
Revenue - Schedule of Contrac_2
Revenue - Schedule of Contract Asset Balances (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Contract Asset Balances with Customer | ||
Balance, beginning of period | $ 11 | $ 11.4 |
Additional contract assets | 7 | 11.8 |
Reclassification to accounts receivable | (11) | (11.4) |
Balance, end of period | $ 7 | $ 11.8 |
Revenue - Schedule of Contrac_3
Revenue - Schedule of Contract Liability Balances (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Contract Liability Balances with Customer | ||
Balance, beginning of period | $ (19.4) | $ (19.1) |
Additional contract liabilities | (11.3) | (14.9) |
Recognition of revenue from contract liabilities | 19.4 | 19.1 |
Balance, end of period | $ (11.3) | $ (14.9) |
Revenue - Schedule of Amortizat
Revenue - Schedule of Amortization Expense Related to Cost of Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | ||||
Amortization expense | $ 0.3 | $ 0.3 | $ 0.7 | $ 0.6 |
Legal and Other Commitments a_2
Legal and Other Commitments and Contingencies - Narrative (Details) $ in Millions | Jun. 30, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Reserves related to legal matters | $ 4.5 |
Other Intangible Assets, net -
Other Intangible Assets, net - Summary of Intangible Assets, Net (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 11 years 1 month 6 days | |
Acquired Intangible Assets, Gross | $ 196.6 | $ 200.3 |
Accumulated Amortization | (55.9) | (48.1) |
Acquired Intangible Assets, Net | $ 140.7 | 152.2 |
Covenant Not to Compete | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 2 years 6 months | |
Acquired Intangible Assets, Gross | $ 2.9 | 2.9 |
Accumulated Amortization | (0.8) | (0.3) |
Acquired Intangible Assets, Net | $ 2.1 | 2.6 |
Trade Names and Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 3 years 4 months 24 days | |
Acquired Intangible Assets, Gross | $ 5.6 | 5.6 |
Accumulated Amortization | (1.8) | (1.2) |
Acquired Intangible Assets, Net | $ 3.8 | 4.4 |
Proprietary Know How | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 4 years 2 months 12 days | |
Acquired Intangible Assets, Gross | $ 6.7 | 10.4 |
Accumulated Amortization | (2.8) | (2) |
Acquired Intangible Assets, Net | $ 3.9 | 8.4 |
Management Contract Rights | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 8 years 7 months 6 days | |
Acquired Intangible Assets, Gross | $ 81 | 81 |
Accumulated Amortization | (40) | (37.4) |
Acquired Intangible Assets, Net | $ 41 | 43.6 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Life (Years) | 13 years 4 months 24 days | |
Acquired Intangible Assets, Gross | $ 100.4 | 100.4 |
Accumulated Amortization | (10.5) | (7.2) |
Acquired Intangible Assets, Net | $ 89.9 | $ 93.2 |
Other Intangible Assets, net _2
Other Intangible Assets, net - Summary of Intangible Assets, Net (Parenthetical) (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Life (Years) | 11 years 1 month 6 days |
Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Life (Years) | 1 year |
Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Weighted Average Life (Years) | 14 years |
Other Intangible Assets, net _3
Other Intangible Assets, net - Summary of Amortization of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 3.9 | $ 3.8 | $ 7.8 | $ 7.6 |
Other Intangible Assets, net _4
Other Intangible Assets, net - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | |||||
Carrying amount | $ 140,700,000 | $ 140,700,000 | $ 152,200,000 | ||
Impairment charge | 3,700,000 | $ 0 | 3,700,000 | $ 0 | |
Proprietary Know How | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Carrying amount | 3,900,000 | 3,900,000 | $ 8,400,000 | ||
Impairment charges | $ 0 | $ 0 | |||
Proprietary Know How | Aviation | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Impairment charge | 3,700,000 | 3,700,000 | |||
Proprietary Know How | Level 3 | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Carrying amount | 7,600,000 | 7,600,000 | |||
Fair value | $ 3,900,000 | $ 3,900,000 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Changes in carrying amounts of goodwill | |
Beginning balance | $ 586 |
Foreign currency translation | (0.2) |
Ending balance | 585.8 |
Commercial | |
Changes in carrying amounts of goodwill | |
Beginning balance | 368.9 |
Foreign currency translation | (0.2) |
Ending balance | 368.7 |
Aviation | |
Changes in carrying amounts of goodwill | |
Beginning balance | 217.1 |
Foreign currency translation | 0 |
Ending balance | $ 217.1 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Impairment charges | $ 0 | $ 0 | $ 0 | $ 0 |
Borrowing Arrangements - Schedu
Borrowing Arrangements - Schedule of Long-Term Borrowing (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Other borrowings | $ 25.1 | $ 23.1 |
Other borrowings, Maturity Date | Various | |
Total obligations under Senior Credit Facility and other borrowings | $ 366.4 | 369 |
Less: Current portion of obligations under Senior Credit Facility and other borrowings | 16.2 | 17.9 |
Total long-term obligations under Senior Credit Facility and other borrowings | 350.2 | 351.1 |
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 | $ 341.3 | $ 345.9 |
Maturity Date | Nov. 30, 2023 |
Borrowing Arrangements - Narrat
Borrowing Arrangements - Narrative (Details) | May 06, 2020USD ($) | May 31, 2019USD ($) | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Jun. 30, 2019 | Nov. 30, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||
Debt instrument, covenant compliance | As of June 30, 2020, the Company was in compliance with its debt covenants under the Credit Agreement. | ||||||||
Long-term borrowings | $ 366,400,000 | $ 366,400,000 | $ 369,000,000 | ||||||
Redemptions of convertible debentures | 0 | 0 | |||||||
Approximate redemption value of convertible debentures | $ 1,100,000 | 1,100,000 | |||||||
Interest Rate Collars | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate collar, term | 3 years | ||||||||
Notional amount | $ 222,300,000 | ||||||||
Derivative, cap interest rate | 2.50% | 2.50% | |||||||
Senior Credit Facility, Net of Discount | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturity Date | Nov. 30, 2023 | ||||||||
Long-term borrowings | $ 341,300,000 | $ 341,300,000 | $ 345,900,000 | ||||||
Weighted average interest rate | 3.80% | 3.80% | 4.20% | ||||||
Convertible Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price upon stated maturity (in dollars per share) | $ / shares | $ 19.18 | ||||||||
Redemptions stated maturity date | Apr. 1, 2028 | ||||||||
Amended Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 550,000,000 | ||||||||
Percentage principal installments | 1.25% | ||||||||
Amended Credit Agreement | Forecast | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage principal installments | 1.875% | ||||||||
Amended Credit Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 370,000,000 | 325,000,000 | |||||||
Increase to borrowing capacity | $ 45,000,000 | ||||||||
Line of credit facility, expiration date | May 5, 2021 | ||||||||
Liquidity test minimum | $ 50,000,000 | $ 50,000,000 | |||||||
Amended Credit Agreement | Letter of Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 100,000,000 | ||||||||
Amended Credit Agreement | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 225,000,000 | ||||||||
Amended Credit Agreement | Senior Credit Facility, Net of Discount | |||||||||
Debt Instrument [Line Items] | |||||||||
Fees and other closing cost | $ 1,600,000 | ||||||||
Letters of credit outstanding | 52,500,000 | 52,500,000 | |||||||
Long-term borrowings | $ 366,400,000 | $ 366,400,000 | |||||||
Amended Credit Agreement | Senior Credit Facility, Net of Discount | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt to EBITDA ratio that is required to be maintained | 4.25 | ||||||||
Credit agreement total debt to EBITDA ratio that is required to be maintained step down | 4 | ||||||||
Amended Credit Agreement | Senior Credit Facility, Net of Discount | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed charge coverage ratio that is required to be maintained | 2.75 | 3.50 | |||||||
Amended Credit Agreement | Senior Credit Facility, Net of Discount | Forecast | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt to EBITDA ratio that is required to be maintained | 5.50 | ||||||||
Amended Credit Agreement | Senior Credit Facility, Net of Discount | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 0.375% | ||||||||
Amended Credit Agreement | Senior Credit Facility, Net of Discount | LIBOR Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Period of total debt to EBITDA ratio | 12 months | ||||||||
Amended Credit Agreement | Senior Credit Facility, Net of Discount | Base Rate Loans | Federal Funds | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate margin on variable rate basis | 0.50% | ||||||||
Amended Credit Agreement | Senior Credit Facility, Net of Discount | Base Rate Loans | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate margin on variable rate basis | 2.75% | 1.00% | |||||||
Floor interest rate | 1.00% | 0.00% | |||||||
Senior Credit Facility | Senior Credit Facility, Net of Discount | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate | 3.50% | 3.50% | 3.80% |
Stock Repurchase Program - Narr
Stock Repurchase Program - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Jul. 31, 2019 | May 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount authorized by the company's Board of Directors (not to exceed) | $ 100,000,000 | ||||||
Number of shares repurchased | 348,974 | 393,975 | 421,716 | ||||
Average price paid per share (in dollars per share) | $ 32.33 | $ 38.78 | $ 32.33 | ||||
Remaining authorized repurchase amount | $ 59,400,000 | ||||||
May 2016 Stock Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount authorized by the company's Board of Directors (not to exceed) | $ 30,000,000 | ||||||
Number of shares repurchased | 988,767 | ||||||
Average price paid per share (in dollars per share) | $ 30.30 | ||||||
July 2019 Share Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount authorized by the company's Board of Directors (not to exceed) | $ 50,000,000 | ||||||
Number of shares repurchased | 393,975 | ||||||
Average price paid per share (in dollars per share) | $ 38.78 | ||||||
Remaining authorized repurchase amount | $ 9,400,000 | ||||||
March 2020 Stock Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Amount authorized by the company's Board of Directors (not to exceed) | $ 50,000,000 | ||||||
Number of shares repurchased | 0 | ||||||
Remaining authorized repurchase amount | $ 50,000,000 |
Stock Repurchase Program - Summ
Stock Repurchase Program - Summary of Stock Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | |||||
Total number of shares repurchased | 348,974 | 393,975 | 421,716 | ||
Average price paid per share (in dollars per share) | $ 32.33 | $ 38.78 | $ 32.33 | ||
Total value of shares repurchased | $ 15.3 | $ 11.3 | $ 2.3 | $ 15.3 | $ 13.6 |
Stock Repurchase Program - Su_2
Stock Repurchase Program - Summary of Remaining Authorized Repurchase Amounts (Details) | Jun. 30, 2020USD ($) |
Equity [Abstract] | |
Total authorized repurchase amount | $ 100,000,000 |
Total value of shares repurchased | 40,600,000 |
Total remaining authorized repurchase amount | $ 59,400,000 |
Bradley Agreement - Narrative (
Bradley Agreement - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Feb. 29, 2000 | Jun. 30, 2020 | |
Bradley International Airport Parking Facilities Operating Agreement | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Agreement period for operation of parking spaces | 25 years | |
Effective date of agreement termination | May 31, 2020 | |
Cash consideration to minority partners | $ 1.7 | |
Connecticut Airport Authority | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Agreement effective date | Jun. 1, 2020 |
Bradley Agreement - Schedule of
Bradley Agreement - Schedule of Interest and Premium Received and Deficiency Payments (Details) - Bradley International Airport Parking Facilities Operating Agreement - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Loss Contingencies [Line Items] | ||||
Deficiency repayments | $ 0 | $ 1.8 | $ 0.1 | $ 2.4 |
Interest | 0 | 0.5 | 0.1 | 0.5 |
Premium | $ 0 | $ 0.2 | $ 0 | $ 0.2 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options and Grants (Details) - Share-Based Payment Arrangement - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 25,066 | 14,076 | ||
Recognized stock-based compensation expense | $ 0.5 | $ 0.5 | $ 0.5 | $ 0.5 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized (in shares) | 37,235 | |
Vested (in shares) | 7,518 | |
Restricted stock unit granted (in shares) | 0 | |
Unrecognized stock-based compensation costs | $ 1.1 | |
Weighted average remaining recognition period of unrecognized stock-based compensation costs | 1 year 4 months 24 days | |
Long-Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeited (in shares) | 7,978 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Compensation Expense Related to Restricted Stock Unit (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.5 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Share Units (Details) - Performance Share Units - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs related to unvested options (up to) | $ 0.1 | |
Weighted average remaining recognition period of unrecognized stock-based compensation costs | 4 months 24 days | |
Long-Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Forfeited (in shares) | 11,968 | 7,940 |
Reversed (in shares) | 290,272 | |
Executive Management | Long-Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock unit granted (in shares) | 96,056 | 125,232 |
Vested (in shares) | 1,468 | 0 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Compensation Expense Related to Performance Share Units (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 0.1 | $ 0.6 | $ (3.1) | $ 0.8 |
Net (Loss) Income per Common _3
Net (Loss) Income per Common Share - Basic and Diluted Net (Loss) Income per Common Share and Weighted Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to SP Plus Corporation | $ (39.1) | $ 15.2 | $ (85.2) | $ 25.8 |
Basic weighted average common shares outstanding | 20,972,057 | 22,382,139 | 21,062,495 | 22,445,825 |
Dilutive impact of share-based awards | 0 | 150,074 | 0 | 154,282 |
Diluted weighted average common shares outstanding | 20,972,057 | 22,532,213 | 21,062,495 | 22,600,107 |
Net (loss) income per common share | ||||
Basic | $ (1.86) | $ 0.68 | $ (4.05) | $ 1.15 |
Diluted | $ (1.86) | $ 0.68 | $ (4.05) | $ 1.14 |
Net (Loss) Income per Common _4
Net (Loss) Income per Common Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential shares of common stock attributable to stock options excluded from net income per common share calculation (in shares) | 0 | |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential shares of common stock attributable to stock options excluded from net income per common share calculation (in shares) | 153,442 | 153,442 |
Comprehensive (Loss) Income - C
Comprehensive (Loss) Income - Components of Other Comprehensive (Loss) Income and Income Tax Benefit Allocated (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive (loss) income, Before Tax Amount | $ 0.1 | $ (1.2) | $ (3.9) | $ (1) |
Other Comprehensive (loss) income, Income Tax | (0.3) | (1) | (0.3) | |
Other Comprehensive (loss) income, Net of Tax Amount | 0.1 | (0.9) | (2.9) | (0.7) |
Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive (loss) income, Before Tax Amount | (0.1) | (0.1) | (0.3) | 0.1 |
Other Comprehensive (loss) income, Net of Tax Amount | (0.1) | (0.1) | (0.3) | 0.1 |
Change in Fair Value of Interest Rate Collars | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive (loss) income, Before Tax Amount | 0.2 | (1.1) | (3.6) | (1.1) |
Other Comprehensive (loss) income, Income Tax | (0.3) | (1) | (0.3) | |
Other Comprehensive (loss) income, Net of Tax Amount | $ 0.2 | $ (0.8) | $ (2.6) | $ (0.8) |
Comprehensive (Loss) Income -_2
Comprehensive (Loss) Income - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | $ 306.6 | $ 373.9 | $ 368.6 |
Other comprehensive income (loss) before reclassification | (3.2) | (0.7) | |
Amounts reclassified from accumulated other comprehensive loss | 0.3 | ||
Ending Balance | 265.7 | 265.7 | 381.9 |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (2.3) | (2.4) | |
Other comprehensive income (loss) before reclassification | (0.3) | 0.1 | |
Ending Balance | (2.6) | (2.6) | (2.3) |
Change in Fair Value of Interest Rate Collars | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (0.4) | ||
Other comprehensive income (loss) before reclassification | (2.9) | (0.8) | |
Amounts reclassified from accumulated other comprehensive loss | 0.3 | ||
Ending Balance | (3) | (3) | (0.8) |
Total Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax | |||
Beginning Balance | (5.7) | (2.7) | (2.4) |
Ending Balance | $ (5.6) | $ (5.6) | $ (3.1) |
Comprehensive (Loss) Income - R
Comprehensive (Loss) Income - Reclassifications from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other expense (income) | $ (5.4) | $ (4.8) | $ (9.4) | $ (9.7) |
Reclassifications, net of tax | 0.3 | |||
Interest Rate Collars: Net Realized Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassifications, net of tax | 0.3 | |||
Reclassifications from Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassifications before tax | 0.4 | 0.4 | ||
Income tax benefit | 0.1 | 0.1 | ||
Reclassifications, net of tax | 0.3 | 0.3 | ||
Reclassifications from Accumulated Other Comprehensive Loss | Interest Rate Collars: Net Realized Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other expense (income) | $ 0.4 | $ 0.4 |
Business Unit Segment Informa_3
Business Unit Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Unit Segment Informa_4
Business Unit Segment Information - Schedule of Revenues and Gross Profit by Regions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Services Revenue | ||||
Services Revenue | $ 203.4 | $ 414.2 | $ 613.1 | $ 823.6 |
Gross Profit | ||||
Gross profit | (13.4) | 61.9 | (43.6) | 115.1 |
Operating Segments | Commercial | ||||
Services Revenue | ||||
Services Revenue | 70.3 | 157.8 | 218.6 | 315.7 |
Gross Profit | ||||
Gross profit | (18.3) | 34.2 | (71.3) | 63.6 |
Operating Segments | Aviation | ||||
Services Revenue | ||||
Services Revenue | 21.1 | 74.9 | 89 | 145.2 |
Gross Profit | ||||
Gross profit | 1.5 | 22.1 | 16.4 | 39.3 |
Segment Reconciling Items | ||||
Services Revenue | ||||
Services Revenue | 1.6 | 2.4 | 4.2 | 4.9 |
Gross Profit | ||||
Gross profit | 3.4 | 5.6 | 11.3 | 12.2 |
Lease Type Contracts | ||||
Services Revenue | ||||
Services Revenue | 30.2 | 105.2 | 111.9 | 203 |
Gross Profit | ||||
Gross profit | (12.9) | 13.4 | (11.4) | 21.5 |
Lease Type Contracts | Operating Segments | Commercial | ||||
Services Revenue | ||||
Services Revenue | 28.8 | 96.9 | 105.1 | 187.4 |
Gross Profit | ||||
Gross profit | $ (13.8) | $ 9.8 | $ (14.7) | $ 14.8 |
Gross margin percentage | (47.90%) | 10.10% | (14.00%) | 7.90% |
Lease Type Contracts | Operating Segments | Aviation | ||||
Services Revenue | ||||
Services Revenue | $ 1.3 | $ 8.2 | $ 6.5 | $ 15.3 |
Gross Profit | ||||
Gross profit | $ (0.3) | $ 2.5 | $ 4 | |
Gross margin percentage | (23.10%) | 30.50% | 26.10% | |
Lease Type Contracts | Segment Reconciling Items | ||||
Services Revenue | ||||
Services Revenue | $ 0.1 | $ 0.1 | 0.3 | $ 0.3 |
Gross Profit | ||||
Gross profit | 1.2 | 1.1 | 3.3 | 2.7 |
Management Type Contracts | ||||
Services Revenue | ||||
Services Revenue | 62.8 | 129.9 | 199.9 | 262.8 |
Gross Profit | ||||
Gross profit | 16.2 | 48.5 | 62 | 93.6 |
Management Type Contracts | Operating Segments | Commercial | ||||
Services Revenue | ||||
Services Revenue | 41.5 | 60.9 | 113.5 | 128.3 |
Gross Profit | ||||
Gross profit | $ 12.2 | $ 24.4 | $ 37.6 | $ 48.8 |
Gross margin percentage | 29.40% | 40.10% | 33.10% | 38.00% |
Management Type Contracts | Operating Segments | Aviation | ||||
Services Revenue | ||||
Services Revenue | $ 19.8 | $ 66.7 | $ 82.5 | $ 129.9 |
Gross Profit | ||||
Gross profit | $ 1.8 | $ 19.6 | $ 16.4 | $ 35.3 |
Gross margin percentage | 9.10% | 29.40% | 19.90% | 27.20% |
Management Type Contracts | Segment Reconciling Items | ||||
Services Revenue | ||||
Services Revenue | $ 1.5 | $ 2.3 | $ 3.9 | $ 4.6 |
Gross Profit | ||||
Gross profit | 2.2 | 4.5 | 8 | 9.5 |
Reimbursed Management Type Contract Revenue | ||||
Services Revenue | ||||
Services Revenue | 110.4 | $ 179.1 | 301.3 | $ 357.8 |
Lease impairment | Operating Segments | ||||
Gross Profit | ||||
Gross profit | $ (16.7) | $ (94.2) |