Document
false--12-31Q3201900010592620000P15Y9M18DP6YP12Y4M24DP5Y50000050000050000000.0010.001500000005000000022783976229487662278397622948766000P3YP4Y000.010.015000000500000000P3MP1YP1YP1YP1Y30518312636420 0001059262 2019-01-01 2019-09-30 0001059262 2019-10-30 0001059262 2019-09-30 0001059262 2018-12-31 0001059262 sp:LeaseAndManagementTypeContractsMember 2018-07-01 2018-09-30 0001059262 2018-01-01 2018-09-30 0001059262 sp:ManagementTypeContractsMember 2018-07-01 2018-09-30 0001059262 sp:LeaseTypeContractsMember 2018-07-01 2018-09-30 0001059262 2018-07-01 2018-09-30 0001059262 sp:ReimbursedManagementTypeContractMember 2018-07-01 2018-09-30 0001059262 sp:ReimbursedManagementTypeContractMember 2019-01-01 2019-09-30 0001059262 2019-07-01 2019-09-30 0001059262 sp:LeaseTypeContractsMember 2019-01-01 2019-09-30 0001059262 sp:ReimbursedManagementTypeContractMember 2018-01-01 2018-09-30 0001059262 sp:LeaseAndManagementTypeContractsMember 2018-01-01 2018-09-30 0001059262 sp:LeaseTypeContractsMember 2018-01-01 2018-09-30 0001059262 sp:ManagementTypeContractsMember 2018-01-01 2018-09-30 0001059262 sp:ReimbursedManagementTypeContractMember 2019-07-01 2019-09-30 0001059262 sp:ManagementTypeContractsMember 2019-07-01 2019-09-30 0001059262 sp:LeaseAndManagementTypeContractsMember 2019-01-01 2019-09-30 0001059262 sp:LeaseAndManagementTypeContractsMember 2019-07-01 2019-09-30 0001059262 sp:LeaseTypeContractsMember 2019-07-01 2019-09-30 0001059262 sp:ManagementTypeContractsMember 2019-01-01 2019-09-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001059262 2019-01-01 2019-03-31 0001059262 2019-04-01 2019-06-30 0001059262 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001059262 us-gaap:NoncontrollingInterestMember 2018-12-31 0001059262 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001059262 us-gaap:CommonStockMember 2018-12-31 0001059262 us-gaap:NoncontrollingInterestMember 2019-07-01 2019-09-30 0001059262 us-gaap:CommonStockMember 2019-06-30 0001059262 us-gaap:CommonStockMember 2019-09-30 0001059262 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001059262 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001059262 us-gaap:NoncontrollingInterestMember 2019-09-30 0001059262 us-gaap:CommonStockMember 2019-03-31 0001059262 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001059262 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001059262 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001059262 us-gaap:TreasuryStockMember 2019-09-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001059262 us-gaap:TreasuryStockMember 2019-07-01 2019-09-30 0001059262 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0001059262 us-gaap:TreasuryStockMember 2019-03-31 0001059262 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001059262 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001059262 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001059262 2019-06-30 0001059262 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001059262 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001059262 us-gaap:RetainedEarningsMember 2019-03-31 0001059262 us-gaap:NoncontrollingInterestMember 2019-03-31 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001059262 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001059262 us-gaap:RetainedEarningsMember 2019-09-30 0001059262 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001059262 us-gaap:TreasuryStockMember 2019-06-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001059262 us-gaap:RetainedEarningsMember 2018-12-31 0001059262 us-gaap:NoncontrollingInterestMember 2019-06-30 0001059262 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001059262 us-gaap:TreasuryStockMember 2018-12-31 0001059262 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0001059262 2019-03-31 0001059262 us-gaap:RetainedEarningsMember 2019-06-30 0001059262 2018-01-01 2018-03-31 0001059262 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001059262 2018-04-01 2018-06-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001059262 us-gaap:RetainedEarningsMember 2018-03-31 0001059262 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001059262 2017-12-31 0001059262 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-03-31 0001059262 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0001059262 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001059262 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001059262 us-gaap:CommonStockMember 2017-12-31 0001059262 us-gaap:NoncontrollingInterestMember 2018-06-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001059262 us-gaap:TreasuryStockMember 2017-12-31 0001059262 us-gaap:TreasuryStockMember 2018-09-30 0001059262 us-gaap:NoncontrollingInterestMember 2017-12-31 0001059262 us-gaap:RetainedEarningsMember 2018-06-30 0001059262 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001059262 us-gaap:TreasuryStockMember 2018-06-30 0001059262 us-gaap:CommonStockMember 2018-06-30 0001059262 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001059262 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001059262 2018-06-30 0001059262 2018-09-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001059262 us-gaap:RetainedEarningsMember 2017-12-31 0001059262 2018-03-31 0001059262 us-gaap:CommonStockMember 2018-09-30 0001059262 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001059262 us-gaap:NoncontrollingInterestMember 2018-07-01 2018-09-30 0001059262 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001059262 us-gaap:TreasuryStockMember 2018-03-31 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001059262 us-gaap:NoncontrollingInterestMember 2018-09-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001059262 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001059262 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0001059262 us-gaap:CommonStockMember 2018-03-31 0001059262 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001059262 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001059262 us-gaap:NoncontrollingInterestMember 2018-03-31 0001059262 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001059262 us-gaap:RetainedEarningsMember 2018-09-30 0001059262 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-01-01 2019-09-30 0001059262 sp:ParkmobileLLCMember 2014-10-01 2014-10-31 0001059262 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember 2019-01-01 2019-09-30 0001059262 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember sp:ParkmobileMember 2018-01-03 0001059262 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember sp:ParkmobileMember 2018-01-01 2018-03-31 0001059262 srt:ScenarioPreviouslyReportedMember 2019-09-30 0001059262 us-gaap:AccountingStandardsUpdate201602Member sp:ImpactofAdoptionIncreaseDecreaseMember 2019-09-30 0001059262 us-gaap:CostOfSalesMember 2019-01-01 2019-09-30 0001059262 us-gaap:CostOfSalesMember 2019-07-01 2019-09-30 0001059262 us-gaap:GeneralAndAdministrativeExpenseMember 2019-07-01 2019-09-30 0001059262 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-09-30 0001059262 srt:RestatementAdjustmentMember sp:BagsMember 2018-11-30 0001059262 sp:BagsMember 2018-11-30 0001059262 srt:ScenarioPreviouslyReportedMember sp:BagsMember 2018-11-30 0001059262 sp:BagsMember us-gaap:TradeNamesMember 2018-11-30 2018-11-30 0001059262 sp:BagsMember us-gaap:TechnologyBasedIntangibleAssetsMember 2018-11-30 0001059262 sp:BagsMember us-gaap:CustomerRelationshipsMember 2018-11-30 0001059262 sp:BagsMember us-gaap:TradeNamesMember 2018-11-30 0001059262 sp:BagsMember us-gaap:NoncompeteAgreementsMember 2018-11-30 2018-11-30 0001059262 sp:BagsMember us-gaap:NoncompeteAgreementsMember 2018-11-30 0001059262 sp:BagsMember 2019-07-01 2019-09-30 0001059262 sp:BagsMember 2018-11-30 2018-11-30 0001059262 sp:BagsMember 2019-01-01 2019-09-30 0001059262 srt:MaximumMember sp:BagsMember us-gaap:TechnologyBasedIntangibleAssetsMember 2018-11-30 2018-11-30 0001059262 srt:MinimumMember sp:BagsMember us-gaap:TechnologyBasedIntangibleAssetsMember 2018-11-30 2018-11-30 0001059262 srt:MinimumMember sp:BagsMember us-gaap:CustomerRelationshipsMember 2018-11-30 2018-11-30 0001059262 srt:MaximumMember sp:BagsMember us-gaap:CustomerRelationshipsMember 2018-11-30 2018-11-30 0001059262 sp:CentralMergerMember us-gaap:GeneralAndAdministrativeExpenseMember 2018-07-01 2018-09-30 0001059262 sp:CentralMergerMember us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-09-30 0001059262 sp:CentralMergerMember us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-09-30 0001059262 sp:CentralMergerMember us-gaap:GeneralAndAdministrativeExpenseMember 2019-07-01 2019-09-30 0001059262 sp:CompensationandPayrollWithholdingsMember 2019-09-30 0001059262 sp:AccruedExpensesMember 2018-12-31 0001059262 us-gaap:OtherNoncurrentLiabilitiesMember 2018-12-31 0001059262 sp:CompensationandPayrollWithholdingsMember 2018-12-31 0001059262 2022-01-01 2019-09-30 0001059262 2024-01-01 2019-09-30 0001059262 2019-10-01 2019-09-30 0001059262 2021-01-01 2019-09-30 0001059262 2023-01-01 2019-09-30 0001059262 2020-01-01 2019-09-30 0001059262 srt:MaximumMember 2019-01-01 2019-09-30 0001059262 us-gaap:NoncompeteAgreementsMember 2019-09-30 0001059262 sp:TradeNamesAndTradeMarksMember 2019-09-30 0001059262 us-gaap:DevelopedTechnologyRightsMember 2019-01-01 2019-09-30 0001059262 us-gaap:CustomerRelationshipsMember 2019-09-30 0001059262 us-gaap:DevelopedTechnologyRightsMember 2019-09-30 0001059262 us-gaap:CustomerContractsMember 2019-09-30 0001059262 sp:TradeNamesAndTradeMarksMember 2019-01-01 2019-09-30 0001059262 us-gaap:CustomerContractsMember 2018-12-31 0001059262 sp:TradeNamesAndTradeMarksMember 2018-12-31 0001059262 us-gaap:CustomerContractsMember 2019-01-01 2019-09-30 0001059262 us-gaap:NoncompeteAgreementsMember 2019-01-01 2019-09-30 0001059262 us-gaap:DevelopedTechnologyRightsMember 2018-12-31 0001059262 us-gaap:NoncompeteAgreementsMember 2018-12-31 0001059262 us-gaap:CustomerRelationshipsMember 2018-12-31 0001059262 us-gaap:CustomerRelationshipsMember 2019-01-01 2019-09-30 0001059262 srt:MinimumMember 2019-01-01 2019-09-30 0001059262 sp:SegmentOneMember 2019-01-01 2019-09-30 0001059262 sp:SegmentTwoMember 2018-12-31 0001059262 sp:SegmentOneMember 2018-12-31 0001059262 sp:SegmentTwoMember 2019-01-01 2019-09-30 0001059262 sp:SegmentOneMember 2019-09-30 0001059262 sp:SegmentTwoMember 2019-09-30 0001059262 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:LineOfCreditMember 2019-09-30 0001059262 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:LineOfCreditMember 2018-12-31 0001059262 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SubordinatedDebtObligationsMember 2018-12-31 0001059262 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SubordinatedDebtObligationsMember 2019-09-30 0001059262 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:LineOfCreditMember 2018-12-31 0001059262 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SubordinatedDebtObligationsMember 2018-12-31 0001059262 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:LineOfCreditMember 2019-09-30 0001059262 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SubordinatedDebtObligationsMember 2019-09-30 0001059262 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001059262 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001059262 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001059262 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001059262 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001059262 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001059262 sp:Collar2Member 2019-09-30 0001059262 sp:Collar1Member 2019-09-30 0001059262 sp:Collar3Member 2019-09-30 0001059262 us-gaap:InterestRateContractMember 2019-07-01 2019-09-30 0001059262 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2019-01-01 2019-09-30 0001059262 us-gaap:InterestRateContractMember 2019-01-01 2019-09-30 0001059262 us-gaap:InterestRateContractMember 2019-05-31 0001059262 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2018-01-01 2018-09-30 0001059262 us-gaap:SubordinatedDebtObligationsMember 2019-09-30 0001059262 us-gaap:LineOfCreditMember 2019-09-30 0001059262 us-gaap:SubordinatedDebtObligationsMember 2018-12-31 0001059262 us-gaap:LineOfCreditMember 2018-12-31 0001059262 sp:RestatedCreditAgreementMember 2015-02-20 0001059262 sp:SeniorCreditFacilityMember us-gaap:LineOfCreditMember 2018-12-31 0001059262 sp:RestatedCreditAgreementMember sp:SwinglineLoansMember 2015-02-20 0001059262 sp:BaseRateLoansMember sp:RestatedCreditAgreementMember us-gaap:LineOfCreditMember us-gaap:BaseRateMember 2019-01-01 2019-09-30 0001059262 us-gaap:InterestRateContractMember 2019-09-30 0001059262 srt:MaximumMember sp:RestatedCreditAgreementMember us-gaap:LineOfCreditMember 2019-01-01 2019-09-30 0001059262 sp:RestatedCreditAgreementMember us-gaap:LineOfCreditMember 2019-09-30 0001059262 sp:RestatedCreditAgreementMember us-gaap:LetterOfCreditMember 2015-02-20 0001059262 sp:RestatedCreditAgreementMember 2018-11-30 0001059262 sp:RestatedCreditAgreementMember us-gaap:LineOfCreditMember 2018-11-30 0001059262 us-gaap:ConvertibleSubordinatedDebtMember 2019-01-01 2019-09-30 0001059262 2018-01-01 2018-12-31 0001059262 sp:LIBORLoansMember sp:RestatedCreditAgreementMember us-gaap:LineOfCreditMember 2019-01-01 2019-09-30 0001059262 sp:SeniorCreditFacilityMember us-gaap:LineOfCreditMember 2019-09-30 0001059262 sp:RestatedCreditAgreementMember sp:TermLoanFacilityMember 2015-02-20 0001059262 sp:RestatedCreditAgreementMember 2019-01-01 2019-09-30 0001059262 sp:RestatedCreditAgreementMember sp:TermLoanFacilityMember 2018-11-30 0001059262 sp:RestatedCreditAgreementMember us-gaap:LetterOfCreditMember 2018-11-30 0001059262 srt:MinimumMember sp:RestatedCreditAgreementMember us-gaap:LineOfCreditMember 2019-01-01 2019-09-30 0001059262 sp:RestatedCreditAgreementMember us-gaap:LineOfCreditMember 2015-02-20 0001059262 sp:BaseRateLoansMember sp:RestatedCreditAgreementMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-09-30 0001059262 us-gaap:InterestRateContractMember 2019-05-01 2019-05-31 0001059262 2016-05-31 0001059262 2019-05-01 2019-09-30 0001059262 2019-07-31 0001059262 sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2018-07-01 2018-09-30 0001059262 sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2019-01-01 2019-09-30 0001059262 sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2018-01-01 2018-09-30 0001059262 sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2019-07-01 2019-09-30 0001059262 sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2018-12-31 0001059262 sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2019-09-30 0001059262 srt:MinimumMember us-gaap:MunicipalBondsMember sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2002-12-31 0001059262 srt:MaximumMember srt:ScenarioForecastMember sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2024-01-01 2024-12-31 0001059262 srt:ScenarioForecastMember sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2019-01-01 2019-12-31 0001059262 sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2018-01-01 2018-12-31 0001059262 srt:MaximumMember srt:ScenarioForecastMember us-gaap:MunicipalBondsMember sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2025-12-31 0001059262 srt:MinimumMember sp:BradleyInternationalAirportParkingFacilitiesOperatingAgreementMember 2002-01-01 2002-12-31 0001059262 srt:ExecutiveOfficerMember us-gaap:PerformanceSharesMember 2019-01-01 2019-09-30 0001059262 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-09-30 0001059262 srt:ExecutiveOfficerMember us-gaap:PerformanceSharesMember sp:LongTermIncentivePlanMember 2018-01-01 2018-09-30 0001059262 us-gaap:PerformanceSharesMember 2019-01-01 2019-09-30 0001059262 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-09-30 0001059262 srt:MaximumMember us-gaap:PerformanceSharesMember 2019-09-30 0001059262 srt:ExecutiveOfficerMember us-gaap:PerformanceSharesMember sp:LongTermIncentivePlanMember 2019-07-01 2019-09-30 0001059262 us-gaap:StockCompensationPlanMember 2019-07-01 2019-09-30 0001059262 us-gaap:PerformanceSharesMember sp:LongTermIncentivePlanMember 2019-01-01 2019-09-30 0001059262 us-gaap:StockCompensationPlanMember 2018-01-01 2018-09-30 0001059262 us-gaap:RestrictedStockUnitsRSUMember 2019-09-30 0001059262 us-gaap:RestrictedStockUnitsRSUMember sp:LongTermIncentivePlanMember 2018-01-01 2018-09-30 0001059262 us-gaap:PerformanceSharesMember sp:LongTermIncentivePlanMember 2018-01-01 2018-09-30 0001059262 srt:ExecutiveOfficerMember us-gaap:PerformanceSharesMember sp:LongTermIncentivePlanMember 2019-01-01 2019-09-30 0001059262 us-gaap:RestrictedStockUnitsRSUMember sp:LongTermIncentivePlanMember 2019-01-01 2019-09-30 0001059262 us-gaap:StockCompensationPlanMember 2019-01-01 2019-09-30 0001059262 srt:ExecutiveOfficerMember us-gaap:PerformanceSharesMember sp:LongTermIncentivePlanMember 2018-07-01 2018-09-30 0001059262 us-gaap:RestrictedStockUnitsRSUMember 2019-07-01 2019-09-30 0001059262 us-gaap:RestrictedStockUnitsRSUMember 2018-07-01 2018-09-30 0001059262 us-gaap:PerformanceSharesMember 2019-07-01 2019-09-30 0001059262 us-gaap:PerformanceSharesMember 2018-01-01 2018-09-30 0001059262 us-gaap:PerformanceSharesMember 2018-07-01 2018-09-30 0001059262 us-gaap:StockCompensationPlanMember 2018-07-01 2018-09-30 0001059262 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2018-12-31 0001059262 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-07-01 2019-09-30 0001059262 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-04-01 2019-06-30 0001059262 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-03-31 0001059262 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 0001059262 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-07-01 2019-09-30 0001059262 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-09-30 0001059262 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-04-01 2019-06-30 0001059262 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-09-30 0001059262 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0001059262 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-03-31 0001059262 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-06-30 0001059262 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2019-03-31 0001059262 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-06-30 0001059262 us-gaap:OperatingSegmentsMember sp:LeaseTypeContractsMember sp:SegmentTwoMember 2019-01-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:ManagementTypeContractsMember sp:SegmentTwoMember 2018-01-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:SegmentOneMember 2019-01-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:LeaseTypeContractsMember sp:SegmentTwoMember 2019-07-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:SegmentTwoMember 2018-07-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:SegmentTwoMember 2019-07-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:ManagementTypeContractsMember sp:SegmentTwoMember 2019-01-01 2019-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember sp:LeaseTypeContractsMember 2018-07-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:ManagementTypeContractsMember sp:SegmentOneMember 2018-07-01 2018-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember sp:ManagementTypeContractsMember 2019-07-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:ManagementTypeContractsMember sp:SegmentOneMember 2018-01-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:SegmentTwoMember 2018-01-01 2018-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember 2018-01-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:ManagementTypeContractsMember sp:SegmentOneMember 2019-01-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:LeaseTypeContractsMember sp:SegmentOneMember 2018-07-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:LeaseTypeContractsMember sp:SegmentOneMember 2019-07-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:LeaseTypeContractsMember sp:SegmentTwoMember 2018-01-01 2018-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember sp:ManagementTypeContractsMember 2019-01-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:ManagementTypeContractsMember sp:SegmentOneMember 2019-07-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:LeaseTypeContractsMember sp:SegmentTwoMember 2018-07-01 2018-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember sp:LeaseTypeContractsMember 2019-07-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:LeaseTypeContractsMember sp:SegmentOneMember 2019-01-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:SegmentOneMember 2018-07-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:SegmentOneMember 2019-07-01 2019-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:LeaseTypeContractsMember sp:SegmentOneMember 2018-01-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:ManagementTypeContractsMember sp:SegmentTwoMember 2018-07-01 2018-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember 2019-01-01 2019-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember sp:ManagementTypeContractsMember 2018-07-01 2018-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember 2018-07-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:ManagementTypeContractsMember sp:SegmentTwoMember 2019-07-01 2019-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember sp:LeaseTypeContractsMember 2019-01-01 2019-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember sp:LeaseTypeContractsMember 2018-01-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:SegmentOneMember 2018-01-01 2018-09-30 0001059262 us-gaap:OperatingSegmentsMember sp:SegmentTwoMember 2019-01-01 2019-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember sp:ManagementTypeContractsMember 2018-01-01 2018-09-30 0001059262 us-gaap:MaterialReconcilingItemsMember 2019-07-01 2019-09-30 xbrli:pure iso4217:USD xbrli:shares xbrli:shares sp:voting_interest_model_entity sp:variable_interest_entity sp:partnership iso4217:USD sp:segment sp:parking_space sp:contract
Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q
 
 
 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
September 30, 2019
Or
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                  to                

Commission file number: 000-50796
 
 http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=13173874&doc=11
SP Plus Corporation
(Exact Name of Registrant as Specified in Its Charter)
Delaware
 
16-1171179
(State or Other Jurisdiction of
 
(I.R.S. Employer Identification No.)
Incorporation or Organization)
 
 
 
200 E. Randolph Street, Suite 7700
ChicagoIllinois 60601-7702
(Address of Principal Executive Offices, Including Zip Code)
(312) 274-2000
(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.001 par value per share
SP
The NASDAQ Stock Market LLC
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý  No o
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ý  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one): 
Large Accelerated Filer
 ý
Accelerated Filer
Non-accelerated Filer  
Smaller Reporting Company
 
 
Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No ý

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
Class
Outstanding at October 30, 2019
Common Stock, $0.001 par value per share
22,948,766

Shares
 


Table of Contents

SP PLUS CORPORATION
 
TABLE OF CONTENTS
 
 
 
 
 


1

Table of Contents

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
SP Plus Corporation
Condensed Consolidated Balance Sheets
(millions, except for share and per share data)
September 30, 2019
 
December 31, 2018
 
(unaudited)
 
 

Assets
 

 
 

Cash and cash equivalents
$
29.6

 
$
39.9

Notes and accounts receivable, net
150.0

 
150.7

Prepaid expenses and other
15.7

 
17.2

Total current assets
195.3

 
207.8

Leasehold improvements, equipment and construction in progress, net
43.2

 
40.3

Right-of-use assets
444.5

 

Other assets
 

 
 

Advances and deposits
4.2

 
4.2

Other intangible assets, net
154.6

 
166.0

Favorable acquired lease contracts, net

 
17.6

Equity investments in unconsolidated entities
10.4

 
9.8

Other assets, net
20.3

 
17.3

Deferred taxes
13.1


14.6

Cost of contracts, net
4.5

 
9.2

Goodwill
585.7

 
585.5

Total other assets
792.8

 
824.2

Total assets
$
1,475.8

 
$
1,072.3

Liabilities and stockholders’ equity
 

 
 

Accounts payable
$
102.5

 
$
110.1

Accrued rent
18.2

 
23.5

Compensation and payroll withholdings
24.2

 
25.8

Property, payroll and other taxes
8.7

 
9.5

Accrued insurance
19.0

 
19.7

Accrued expenses
40.0

 
45.1

Short-term lease liabilities
117.1

 

Current portion of long-term obligations under credit facility and other long-term borrowings
14.4

 
13.2

Total current liabilities
344.1

 
246.9

Long-term borrowings, excluding current portion


 


Obligations under credit facility
340.6

 
360.9

Other long-term borrowings
15.1

 
12.6

 
355.7

 
373.5

Long-term lease liabilities
338.4

 

Unfavorable acquired lease contracts, net

 
24.7

Other long-term liabilities
59.3

 
58.6

Total noncurrent liabilities
753.4

 
456.8

Stockholders’ equity
 

 
 

Preferred stock, par value $0.01 per share; 5,000,000 shares authorized as of September 30, 2019 and December 31, 2018; no shares issued

 

Common stock, par value $0.001 per share; 50,000,000 shares authorized as of September 30, 2019 and December 31, 2018; 22,948,766 and 22,783,976 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively

 

Treasury stock, at cost; 1,263,642 and 305,183 shares as of September 30, 2019 and December 31, 2018, respectively
(39.8
)

(7.5
)
Additional paid-in capital
260.8

 
257.7

Accumulated other comprehensive loss
(3.3
)
 
(2.4
)
Retained earnings
160.6

 
120.7

Total SP Plus Corporation stockholders’ equity
378.3

 
368.5

Noncontrolling interest

 
0.1

Total stockholders’ equity
378.3

 
368.6

Total liabilities and stockholders’ equity
$
1,475.8

 
$
1,072.3

 
See Notes to Condensed Consolidated Financial Statements.

2

Table of Contents


SP Plus Corporation
Condensed Consolidated Statements of Income 
 
Three Months Ended
 
Nine Months Ended
(millions, except for share and per share data) (unaudited)
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Services revenue
 
 
 
 
 

 
 
Lease type contracts
$
104.6

 
$
104.7

 
$
307.6

 
$
311.6

Management type contracts
132.6

 
82.6

 
395.4

 
264.8


237.2

 
187.3

 
703.0

 
576.4

Reimbursed management type contract revenue
181.4

 
174.8

 
539.2

 
514.8

Total services revenue
418.6

 
362.1

 
1,242.2

 
1,091.2

Cost of services
 
 
 
 
 
 
 
Lease type contracts
93.0

 
94.2

 
274.5

 
283.2

Management type contracts
85.5

 
48.1

 
254.7

 
157.6


178.5

 
142.3

 
529.2

 
440.8

Reimbursed management type contract expense
181.4

 
174.8

 
539.2

 
514.8

Total cost of services
359.9

 
317.1

 
1,068.4

 
955.6

Gross profit
 
 
 
 
 

 
 

Lease type contracts
11.6

 
10.5

 
33.1

 
28.4

Management type contracts
47.1

 
34.5

 
140.7

 
107.2

Total gross profit
58.7

 
45.0

 
173.8

 
135.6

General and administrative expenses
26.0

 
18.7

 
80.8

 
63.3

Depreciation and amortization
7.3

 
4.2

 
21.8

 
12.7

Operating income
25.4

 
22.1

 
71.2

 
59.6

Other expenses (income)
 
 
 
 
 

 
 

Interest expense
4.8

 
2.1

 
14.7

 
6.5

Interest income
(0.1
)
 
(0.1
)
 
(0.3
)
 
(0.3
)
Equity in earnings from investment in unconsolidated entity

 

 

 
(10.1
)
Total other expenses (income)
4.7

 
2.0

 
14.4

 
(3.9
)
Earnings before income taxes
20.7

 
20.1

 
56.8

 
63.5

Income tax expense
5.7

 
5.6

 
14.6

 
16.9

Net income
15.0

 
14.5

 
42.2

 
46.6

Less: Net income attributable to noncontrolling interest
0.8

 
1.0

 
2.2

 
2.5

Net income attributable to SP Plus Corporation
$
14.2

 
$
13.5

 
$
40.0

 
$
44.1

Common stock data
 
 
 
 
 

 
 

Net income per common share
 
 
 
 
 

 
 

Basic
$
0.64

 
$
0.60

 
$
1.79

 
$
1.97

Diluted
$
0.64

 
$
0.60

 
$
1.78

 
$
1.95

Weighted average shares outstanding
 
 
 
 
 
 
 
Basic
21,945,129

 
22,439,884

 
22,277,852

 
22,370,789

Diluted
22,038,905

 
22,626,746

 
22,411,965

 
22,607,274

 
See Notes to Condensed Consolidated Financial Statements.


3

Table of Contents

SP Plus Corporation
Condensed Consolidated Statements of Comprehensive Income
 
Three Months Ended
 
Nine Months Ended
(millions) (unaudited)
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Net income
$
15.0

 
$
14.5

 
$
42.2

 
$
46.6

Other comprehensive income (expense)
(0.2
)
 
0.1

 
(0.9
)
 
(0.4
)
Comprehensive income
14.8

 
14.6

 
41.3

 
46.2

Less: Comprehensive income attributable to noncontrolling interest
0.8

 
1.0

 
2.2

 
2.5

Comprehensive income attributable to SP Plus Corporation
$
14.0

 
$
13.6

 
$
39.1

 
$
43.7

 
See Notes to Condensed Consolidated Financial Statements.


4

Table of Contents

SP Plus Corporation
Condensed Consolidated Statements of Stockholders' Equity

Nine months ended September 30, 2018 (unaudited)
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
(millions, except share and per share data)
Number
of
Shares
 
Par
Value
 
Additional
Paid-In
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Retained Earnings
 
Treasury Stock
 
Noncontrolling
Interest
 
Total
Balance (deficit) at January 1, 2018
22,542,672

 
$

 
$
254.6

 
$
(1.2
)
 
$
67.0

 
$
(7.5
)
 
$
0.2

 
$
313.1

Net income

 

 

 

 
15.3

 

 
0.6

 
15.9

Foreign currency translation

 

 

 
(0.4
)
 

 

 

 
(0.4
)
Issuance of restricted stock units
45,963

 

 

 

 

 

 

 

Issuance of performance stock units
48,174

 

 

 

 

 

 

 

Non-cash stock-based compensation related to restricted stock units and performance share units

 

 
0.6

 

 

 

 

 
0.6

Distribution to noncontrolling interest

 

 

 

 

 

 
(0.8
)
 
(0.8
)
Balance (deficit) at March 31, 2018
22,636,809

 
$

 
$
255.2

 
$
(1.6
)
 
$
82.2

 
$
(7.5
)
 
$

 
$
328.3

Net income

 

 

 

 
15.3

 

 
0.9

 
16.2

Foreign currency translation

 

 

 
(0.2
)
 

 

 

 
(0.2
)
Issuance of stock grants
20,757

 

 
0.7

 

 

 

 

 
0.7

Non-cash stock-based compensation related to restricted stock units and performance share units

 

 
0.9

 

 

 

 

 
0.9

Distribution to noncontrolling interest

 

 

 

 

 

 
(0.8
)
 
(0.8
)
Balance (deficit) at June 30, 2018
22,657,566

 
$

 
$
256.8

 
$
(1.8
)
 
$
97.6

 
$
(7.5
)
 
$
0.1

 
$
345.2

Net income

 

 

 

 
13.5

 

 
1.0

 
14.5

Foreign currency translation

 

 

 
0.1

 

 

 

 
0.1

Issuance of restricted stock units
71,998















Non-cash stock-based compensation related to restricted stock units and performance share units

 

 
(0.1
)
 

 

 

 

 
(0.1
)
Distribution to noncontrolling interest

 

 

 

 

 

 
(1.0
)
 
(1.0
)
Balance (deficit) at September 30, 2018
22,729,564

 
$

 
$
256.7

 
$
(1.6
)
 
$
111.1

 
$
(7.5
)
 
$

 
$
358.7


Note: Amounts may not foot due to rounding.

See Notes to Condensed Consolidated Financial Statements.


5

Table of Contents

Nine months ended September 30, 2019 (unaudited)
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
(millions, except share and per share data)
Number
of
Shares
 
Par
Value
 
Additional
Paid-In
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Retained Earnings
 
Treasury Stock
 
Noncontrolling
Interest
 
Total
Balance (deficit) at January 1, 2019
22,783,976

 
$

 
$
257.7

 
$
(2.4
)
 
$
120.7

 
$
(7.5
)
 
$
0.1

 
$
368.6

Net income

 

 

 

 
10.6

 

 
0.3

 
10.9

Foreign currency translation

 

 

 
0.2

 

 

 

 
0.2

Issuance of restricted stock units
7,518

 

 

 

 

 

 

 

Issuance of performance stock units
62,094

 

 

 

 

 

 

 

Non-cash stock-based compensation related to restricted stock units and performance share units

 

 
0.4

 

 

 

 

 
0.4

Treasury stock

 

 

 

 

 
(2.3
)
 

 
(2.3
)
Distribution to noncontrolling interest

 

 

 

 

 

 
(0.7
)
 
(0.7
)
Balance (deficit) at March 31, 2019
22,853,588

 
$

 
$
258.0

 
$
(2.2
)
 
$
131.3

 
$
(9.8
)
 
$
(0.3
)
 
$
377.0

Net income

 

 

 

 
15.2

 

 
1.1

 
16.3

Foreign currency translation

 

 

 
(0.1
)
 

 

 

 
(0.1
)
Effective portion of cash flow hedge






(0.8
)







(0.8
)
Issuance of stock grants
14,076

 
 
 
0.5

 

 

 

 

 
0.5

Issuance of restricted stock units
11,745

 

 

 

 

 

 

 

Non-cash stock-based compensation related to restricted stock units and performance share units

 

 
1.0

 

 

 

 

 
1.0

Treasury stock

 

 

 

 

 
(11.3
)
 

 
(11.3
)
Distribution to noncontrolling interest

 

 

 

 

 

 
(0.7
)
 
(0.7
)
Balance (deficit) at June 30, 2019
22,879,409

 
$

 
$
259.5

 
$
(3.1
)
 
$
146.5

 
$
(21.1
)
 
$
0.1

 
$
381.9

Net income

 

 

 

 
14.2

 

 
0.8

 
15.0

Foreign currency translation

 

 

 
(0.1
)
 

 

 

 
(0.1
)
Effective portion of cash flow hedge

 

 

 
(0.1
)
 

 

 

 
(0.1
)
Issuance of restricted stock units
69,357

 

 

 

 

 

 

 

Non-cash stock-based compensation related to restricted stock units and performance share units

 

 
1.3

 

 

 

 

 
1.3

Treasury stock

 

 

 

 

 
(18.7
)
 

 
(18.7
)
Distribution to noncontrolling interest

 

 

 

 

 

 
(1.0
)
 
(1.0
)
Balance (deficit) at September 30, 2019
22,948,766

 
$

 
$
260.8

 
$
(3.3
)
 
$
160.6

 
$
(39.8
)
 
$

 
$
378.3


Note: Amounts may not foot due to rounding.

See Notes to Condensed Consolidated Financial Statements.


6

Table of Contents

SP Plus Corporation
Condensed Consolidated Statements of Cash Flows
 
Nine Months Ended
(millions) (unaudited)
September 30, 2019
 
September 30, 2018
Operating activities
 

 
 

Net income
$
42.2

 
$
46.6

Adjustments to reconcile net income to net cash provided by operations:


 


Depreciation and amortization
21.8

 
13.4

Net amortization of acquired lease contracts

 
(0.5
)
Net equity in earnings of unconsolidated entities (net of distributions)
(0.6
)
 
(0.4
)
Gain on sale of equity method investment in unconsolidated entity

 
(10.1
)
Amortization of debt issuance costs
0.4

 
0.6

Amortization of original discount on borrowings
0.3

 
0.4

Non-cash stock-based compensation
3.1

 
2.1

Provisions for losses on accounts receivable
0.5

 
0.2

Deferred income taxes
1.8

 
0.1

Changes in operating assets and liabilities


 


Notes and accounts receivable
0.2

 
(14.4
)
Prepaid assets
1.9

 
2.1

Right-of-use assets
95.4

 

Other assets
(2.6
)
 
(0.4
)
Accounts payable
(7.6
)
 
(9.2
)
Long-term lease liabilities
(99.0
)
 

Accrued liabilities
(3.0
)
 
5.1

Net cash provided by operating activities
54.8

 
35.6

Investing activities
 

 
 

Purchase of leasehold improvements and equipment
(6.4
)
 
(6.7
)
Proceeds from sale of equipment and contract terminations
0.3

 
0.2

Proceeds from sale of equity method investee's sale of assets

 
19.3

Cost of contracts purchased
(2.1
)
 
(0.8
)
Net cash (used in) provided by investing activities
(8.2
)
 
12.0

Financing activities
 

 
 

Payments on credit facility revolver
(360.3
)
 
(101.6
)
Proceeds from credit facility revolver
347.8

 
104.8

Payments on credit facility term loan
(8.4
)
 
(50.0
)
Payments on other long-term borrowings
(1.6
)
 
(0.3
)
Distribution to noncontrolling interest
(2.4
)
 
(2.6
)
Payments of debt issuance costs and original discount on borrowings

 
(0.1
)
Repurchase of common stock
(32.0
)
 

Net cash used in financing activities
(56.9
)
 
(49.8
)
Effect of exchange rate changes on cash and cash equivalents

 
(0.4
)
Decrease in cash and cash equivalents
(10.3
)
 
(2.6
)
Cash and cash equivalents at beginning of year
39.9

 
22.8

Cash and cash equivalents at end of period
$
29.6

 
$
20.2

Supplemental disclosures
 

 
 

Cash paid during the period for
 

 
 

Interest
$
13.8

 
$
5.5

Income taxes, net
$
11.6

 
$
11.8

    
 
See Notes to Condensed Consolidated Financial Statements.

7

Table of Contents

SP Plus Corporation
Notes to Condensed Consolidated Financial Statements
(unaudited) 

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 nine month periods ended September 30, 2019 are not necessarily indicative of the results that might be expected for any other interim period or the fiscal year ending December 31, 2019. 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 27, 2019.
 
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 was $0.4 million and $1.7 million as of September 30, 2019 and December 31, 2018, respectively, and are included within Cash and cash equivalents within the Condensed Consolidated Balance Sheets.
 
Financial Instruments
 
The carrying values of cash, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Book overdrafts of $26.0 million and $34.0 million are included within Accounts payable within the Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018, respectively. Long-term debt has a carrying value that approximates fair value because these instruments bear interest at variable market rates.
 
Equity Investments in Unconsolidated Entities
 
The Company has ownership interests in 30 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 25 are consolidated under the VIE or voting interest models and 5 are unconsolidated where the 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 $0.8 million and $0.7 million for the three months ended September 30, 2019 and 2018, respectively, and were $2.4 million and $1.9 million for the nine months ended September 30, 2019 and 2018, respectively.
 

8

Table of Contents

In October 2014, the Company entered into an agreement to establish a joint venture with Parkmobile USA, Inc. and contributed all of the assets and liabilities of its proprietary Click and Park parking prepayment business in exchange for a 30% interest in the newly formed legal entity called Parkmobile, LLC (“Parkmobile”). On January 3, 2018, the Company closed a transaction to sell the entire 30% interest in Parkmobile to Parkmobile USA, Inc. for a gross sale price of $19.0 million and in the first quarter of 2018, the Company recognized a pre-tax gain of $10.1 million, net of closing costs, and included in Equity in earnings from investment in unconsolidated entity within the Condensed Consolidated Statements of Income for the nine months ended September 30, 2018. The Company historically accounted for its investment in the Parkmobile joint venture using the equity method of accounting, and its underlying share of equity in Parkmobile was included in Equity investments in unconsolidated entities within the Condensed Consolidated Balance Sheets. The equity losses (earnings) in the Parkmobile joint venture were historically included in Equity in earnings from investment in unconsolidated entity within the Condensed Consolidated Statements of Income.

Noncontrolling Interests
 
Noncontrolling interests represent the noncontrolling holders’ percentage share of income or losses from the subsidiaries in which the Company holds a majority, but less than 100 percent, ownership interest and the results of which are consolidated and included within the Condensed Consolidated Financial Statements.
 
Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Topic 842 requires lessees to record most leases on the balance sheet and recognize expense on the income statement. Additionally, the classification criteria and the accounting for sales-type and direct financing leases is modified for lessors. Under Topic 842, all entities are required to recognize "right-of-use" ("ROU") assets and lease liabilities on the balance sheet for all leases classified as either operating or finance leases. Lease classification will determine recognition of lease-related revenue and expense. Since the release of Topic 842, the FASB also issued the following additional ASUs updating the topic:

In January 2018, the FASB issued ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842
In July 2018, the FASB issued ASU No. 2018-11, Lease (Topic 842): Targeted Improvements
In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases
In December 2018, the FASB issued ASU No. 2018-20, Narrow Scope Improvements for Lessors
In March 2019, the FASB issued ASU No. 2019-01, Codification Improvements
 
Topic 842 and its related ASUs are effective for interim and annual reporting periods beginning after December 15, 2018.

The Company adopted the provisions of Topic 842 on January 1, 2019 under the modified retrospective approach and has used the effective date as the initial application date. Therefore, comparative periods have not been recast and continue to be reported under the accounting standards in effect for those prior periods presented. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. 

The standard had a material impact in our Condensed Consolidated Balance Sheet, but did not have a material impact in the Company's Condensed Consolidated Income Statement and no impact in the Condensed Consolidated Statement of Cash Flow. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while the Company's accounting for finance leases remained substantially unchanged.


9

Table of Contents

The impact of the standard on the Condensed Consolidated Balance Sheet as of September 30, 2019 is as follows:
 
 
Impact of Changes in Accounting Policies as of September 30, 2019
(millions) (unaudited)
 
As Reported
 
Balances without Adoption of Topic 842
 
Impact of Adoption
Increase/(Decrease)
Assets
 
 
 
 
 
 
Prepaid expenses and other (a)
 
$
15.7

 
$
16.7

 
$
(1.0
)
Right-of-use assets (b)
 
444.5

 

 
444.5

Favorable acquired lease contracts, net (c)
 

 
14.9

 
(14.9
)
Cost of contracts, net (d)
 
4.5

 
8.4

 
(3.9
)
Liabilities
 


 


 


Accrued rent (e)
 
$
18.2

 
$
26.8

 
$
(8.6
)
Short-term lease liabilities (f)
 
117.1

 

 
117.1

Long-term lease liabilities (g)
 
338.4

 

 
338.4

Unfavorable lease contracts, net (h)
 

 
20.2

 
(20.2
)
Other long-term liabilities (i)
 
59.3

 
61.3

 
(2.0
)


(a) Represents prepaid rent reclassified to Right-of-use assets
(b) Represents capitalization of operating lease assets and reclassification of prepaid and deferred rent, lease incentives, favorable
and unfavorable acquired lease contracts, net and cost of contract balances on operating leases
(c) Represents favorable acquired lease contracts, net reclassified to Right-of-use assets
(d) Represents cost of contract, net reclassified to Right-of-use assets
(e) Represents short-term deferred rent reclassified to Right-of-use assets
(f) Represents the recognition of short-term operating lease liabilities
(g) Represents the recognition of long-term operating lease liabilities
(h) Represents unfavorable acquired lease contracts, net reclassified to Right-of-use assets
(i) Represents long-term deferred rent reclassified to Right-of-use assets

In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under existing guidance, the accounting for nonemployee share-based payments differs from that applied to employee awards, particularly with regard to the measurement date and the impact of performance conditions. This ASU provides that existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. ASU No. 2018-07 is effective for all companies for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted the standard as of January 1, 2019. The standard did not have an impact on the Company’s financial position, results of operations, cash flows and financial statement disclosures.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This Update modifies accounting guidance for hedge accounting by making more hedge strategies eligible for hedge accounting, amending presentation and disclosure requirements, and changing how companies assess ineffectiveness. The intent is to simplify the application of hedge accounting and increase transparency of information about an entity’s risk management activities. The amended guidance is effective for annual periods beginning after December 15, 2018. The Company adopted the standard as of January 1, 2019. The standard did not have an impact on the Company’s financial position, results of operations, cash flows and financial statement disclosures.

In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as Benchmark Interest Rate for Hedge Accounting Purposes. This Update permits use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes. This Update is effective for fiscal years beginning after December 15, 2018. The Company adopted the standard as of January 1, 2019. The standard did not have an impact on the Company’s financial position, results of operations, cash flows and financial statement disclosures.


10

Table of Contents

Accounting Pronouncements to be Adopted

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. The new guidance simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. ASU No. 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests. The standard is not expected to have an impact on the Company’s financial position, results of operations, cash flows and financial statement disclosures.
 
In June 2016, the FASB issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326). The standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of adopting this standard on the Company's financial position, results of operations, cash flows and financial statement disclosures.

In August 2018, the FASB issued ASU No. 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. The standard requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification (ASC) 350-40 to determine which implementation costs to capitalize as assets. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. The standard is not expected to have an impact on the Company’s financial position, results of operations, cash flows and financial statement disclosures.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). This standard modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. The standard is not expected to have an impact on the Company’s financial position, results of operations, cash flows and financial statement disclosures.

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 rents or subleases certain real estate to third parties. The Company's sublease portfolio consists of operating leases for space within our leased parking facilities.
Prior to January 1, 2019, the Company recognized lease expense related to operating leases on a straight-line basis over the terms of the leases and, accordingly, recorded the difference between cash rent payments and recognition of rent expense as a deferred rent liability or prepaid rent. Landlord-funded leasehold improvements were also recorded as deferred rent liabilities and were amortized as a reduction of rent expense over the noncancelable term of the related operating lease. For leases that included one or more options to renew, the exercise of such renewal options is at the Company's sole discretion or mutual agreement. Certain of the Company's lease agreements included variable rent consisting primarily of payments that are a percentage of parking services revenue based on contractual levels and rental payments adjusted periodically for inflation.

Upon adoption of Topic 842, ROU assets represent the Company's "right-of-use" over an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The ROU asset includes cumulative prepaid or accrued rent on adoption date, unamortized lease incentives, unamortized initial direct costs, unamortized favorable acquired lease contracts, net and unfavorable acquired lease contracts, net initially recognized prior to adoption of Topic 842. The short term lease exception has been applied to leases with an initial term of 12 months or less and these leases are not recorded on the balance sheet.

Service concession arrangements within the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services, are excluded from the scope of Topic 842. Lease costs associated with these arrangements is recorded as a reduction of revenue. See Note 5. Revenue for further discussion.


11

Table of Contents

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 lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of leased assets and liabilities and classification on the Condensed Consolidated Balance Sheet as of September 30, 2019 were as follows:
(millions) (unaudited)
Classification
September 30, 2019
Assets
 
 
Operating
Right-of-use assets
$
444.5

Finance
Leasehold improvements, equipment and construction in progress, net (a)
17.7

Total leased assets
 
$
462.2

Liabilities
 
 
Current
 
 
Operating
Short-term lease liability
$
117.1

Finance
Current portion of long-term obligations under credit facility and other long-term borrowings
2.8

Noncurrent
 
 
Operating
Long-term lease liability
338.4

Finance
Other long-term borrowings
15.1

Total lease liabilities
 
$
473.4


(a) Finance lease assets are recorded net of accumulated amortization of $2.1 million as of September 30, 2019
The components of lease cost and classification on the Condensed Consolidated Statement of Income for the three and nine months ended September 30, 2019 were as follows:
 

Three Months Ended
 
Nine Months Ended
(millions) (unaudited)
Classification
September 30, 2019
 
September 30, 2019
Operating lease cost (a)
Cost of services - lease type contracts
$
61.4

 
$
177.5