jvid视频

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(9) Leases

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In February 2016 and subsequently, the FASB issued new guidance which revises the accounting for leases. Under the new guidance, entities that lease assets are required to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases regardless of whether they are classified as finance or operating leases. 听In addition, new disclosures are required to meet the objective of enabling users of the financial statements to better understand the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted this guidance, which established Accounting Standards Codification Topic 842 (鈥淎SC 842鈥�), on January 1, 2019 and elected the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption. 听Results for reporting periods beginning after January 1, 2019 are presented under the new guidance, while prior period amounts were not adjusted and continue to be reported under the accounting standards in effect for those periods. 听

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The Company elected certain of the available transition practical expedients, including those that听permit it to not reassess听(1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases, and (3) any initial direct costs for any existing leases as of the effective date. 听The Company did not elect the听hindsight听practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. 听The most significant impact of the new guidance was the recognition of ROU assets and lease liabilities for operating leases. 听In addition, the Company elected the practical expedient to account for the lease and non-lease components as a听single lease component听and will not recognize right-of-use assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date. 听

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The Company recognized $287听million of operating lease ROU assets, $51听million of short term operating lease liabilities and $259听million of long term operating lease liabilities on the consolidated balance sheet upon adoption of the new standard. 听The operating lease liabilities were determined based on the present value of the remaining rental payments and the operating lease ROU asset was determined based on the value of the lease liabilities, adjusted primarily for deferred rent, net of prepaid rent of $23听million.

The Company has finance lease agreements with transponder and transmitter network suppliers for the right to transmit its signals in the U.S. and Germany. The Company is also party to a finance lease agreement for data processing hardware and a warehouse. 听The Company also leases data processing equipment, facilities, office space, retail space and land. These leases are classified as operating leases. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate.

Our leases have remaining lease terms of less than听one year听to听15 years听some of which may include the听option听to听extend听for up to听14 years, and some of which include听options听to听terminate听the leases within less than听one year.

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The components of lease cost during the year ended December 31, 2019 were as follows:

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Prior to the adoption of ASC 842, rental expense under lease arrangements amounted to $80 million and $45 million for the years ended December 31, 2018 and 2017, respectively.

The remaining weighted-average lease term and the weighted-average discount rate were as follows:

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Supplemental balance sheet information related to leases was as follows:

Supplemental cash flow information related to leases was as follows:

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Future lease payments under finance leases and operating leases with initial terms of one year or more at December 31, 2019 consisted of the following:

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On October 5, 2018, QVC entered into a lease (鈥淓CDC Lease鈥�) for an East Coast distribution center. The听1.7听million square foot rental building is located in Bethlehem, Pennsylvania and will be leased to QVC for an听initial听term of听15 years. QVC obtained initial access to a portion of the ECDC Lease during March 2019 and obtained access to the remaining portion during September 2019. 听In total, QVC recorded a ROU asset of听$141听million and an operating lease liability of听$131听million relating to the ECDC Lease, with the difference attributable to prepaid rent.听QVC is required to pay an initial base rent of $10听million per year, with payments that began in the third quarter of 2019, and increasing to $14听million per year, as well as all real estate taxes and other building operating costs. QVC also has the听option to extend听the term of the ECDC Lease for up to听two听consecutive terms of听5 years听each and one final term of听4 years.