2023 Q1 Form 10-K Financial Statement

#000094539423000015 Filed on February 28, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $429.2M $455.2M $1.863B
YoY Change 9.0% 8.03% 24.57%
Cost Of Revenue $299.6M $293.6M $1.227B
YoY Change 3.18% 2.3% 21.43%
Gross Profit $129.6M $161.7M $635.7M
YoY Change 25.35% 20.28% 31.11%
Gross Profit Margin 30.21% 35.51% 34.12%
Selling, General & Admin $10.91M $8.661M $44.40M
YoY Change -8.99% -31.26% -16.91%
% of Gross Profit 8.42% 5.36% 6.99%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $100.0M $94.96M $401.1M
YoY Change -3.91% -17.97% -17.46%
% of Gross Profit 77.16% 58.74% 63.1%
Operating Expenses $114.9M $107.6M $458.7M
YoY Change -2.97% -18.62% -17.36%
Operating Profit $14.79M $54.03M $177.0M
YoY Change -198.92% 2411.81% -352.02%
Interest Expense $81.58M -$88.09M $341.8M
YoY Change -11.66% -2.28% -6.54%
% of Operating Profit 551.66% -163.04% 193.14%
Other Income/Expense, Net
YoY Change
Pretax Income $26.39M -$31.75M -$135.4M
YoY Change -122.29% -84.11% -75.13%
Income Tax -$3.780M -$1.757M -$199.0K
% Of Pretax Income -14.32%
Net Earnings $25.95M -$31.41M -$132.4M
YoY Change -121.66% -84.2% -75.69%
Net Earnings / Revenue 6.05% -6.9% -7.11%
Basic Earnings Per Share $0.16 -$0.80
Diluted Earnings Per Share $0.16 -$0.19 -$0.80
COMMON SHARES
Basic Shares Outstanding 165.5M shares 165.5M shares 164.7M shares
Diluted Shares Outstanding 164.9M shares 164.7M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $180.6M $38.37M $38.37M
YoY Change -81.37% -95.94% -95.94%
Cash & Equivalents $180.6M $38.37M $38.37M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $48.68M $35.03M $35.03M
Other Receivables $33.04M $32.25M $32.25M
Total Short-Term Assets $262.3M $105.6M $105.6M
YoY Change -74.83% -89.63% -89.63%
LONG-TERM ASSETS
Property, Plant & Equipment $6.516B $6.591B $6.591B
YoY Change -5.25% -5.09% -7.45%
Goodwill
YoY Change
Intangibles $252.4M
YoY Change -10.9%
Long-Term Investments $108.2M $112.6M $165.7M
YoY Change 74.56% 79.65% 164.28%
Other Assets $16.67M $129.0M $129.0M
YoY Change -96.34% -75.15% -75.15%
Total Long-Term Assets $7.220B $7.383B $7.383B
YoY Change -9.47% -9.24% -9.24%
TOTAL ASSETS
Total Short-Term Assets $262.3M $105.6M $105.6M
Total Long-Term Assets $7.220B $7.383B $7.383B
Total Assets $7.482B $7.488B $7.488B
YoY Change -17.02% -18.19% -18.19%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $390.0M $443.9M $442.9M
YoY Change -10.66% -2.44% 20.07%
Accrued Expenses $177.3M
YoY Change 108.73%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $390.0M $443.9M $442.9M
YoY Change -10.66% -2.44% -2.4%
LONG-TERM LIABILITIES
Long-Term Debt $5.710B $5.656B $5.656B
YoY Change -20.09% -20.82% -20.82%
Other Long-Term Liabilities $958.0K
YoY Change -19.7%
Total Long-Term Liabilities $5.710B $5.656B $5.656B
YoY Change -20.09% -20.82% -20.82%
TOTAL LIABILITIES
Total Short-Term Liabilities $390.0M $443.9M $442.9M
Total Long-Term Liabilities $5.710B $5.656B $5.656B
Total Liabilities $6.100B $6.099B $6.099B
YoY Change -19.55% -19.72% -19.72%
SHAREHOLDERS EQUITY
Retained Earnings $2.529B $2.503B
YoY Change 0.53% -5.02%
Common Stock $1.655M $1.655M
YoY Change 0.24% 0.24%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.382B $1.389B $1.389B
YoY Change
Total Liabilities & Shareholders Equity $7.482B $7.488B $7.488B
YoY Change -17.02% -18.19% -18.19%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $25.95M -$31.41M -$132.4M
YoY Change -121.66% -84.2% -75.69%
Depreciation, Depletion And Amortization $100.0M $94.96M $401.1M
YoY Change -3.91% -17.97% -17.46%
Cash From Operating Activities $12.37M $96.01M $243.1M
YoY Change -203.25% 96.34% 387.19%
INVESTING ACTIVITIES
Capital Expenditures $28.55M $34.86M $106.4M
YoY Change -207.49% -213.4% -203.59%
Acquisitions
YoY Change
Other Investing Activities $142.8M $35.13M $503.7M
YoY Change 118.25% 109.37% 35469.56%
Cash From Investing Activities $114.3M $273.0K $397.3M
YoY Change 193.93% -101.96% -492.12%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $470.0K
YoY Change -40.51%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $23.79M -129.0M -$1.542B
YoY Change -1472.82% 7422.04% -269.98%
NET CHANGE
Cash From Operating Activities $12.37M 96.01M $243.1M
Cash From Investing Activities $114.3M 273.0K $397.3M
Cash From Financing Activities $23.79M -129.0M -$1.542B
Net Change In Cash $150.4M -32.72M -$902.0M
YoY Change 497.98% -198.46% -205.38%
FREE CASH FLOW
Cash From Operating Activities $12.37M $96.01M $243.1M
Capital Expenditures $28.55M $34.86M $106.4M
Free Cash Flow -$16.18M $61.16M $136.7M
YoY Change -210.98% -23.21% -10.43%

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CY2021 us-gaap Oci Equity Method Investment After Tax
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CY2020 us-gaap Oci Equity Method Investment After Tax
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CY2022 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2021 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2020 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2022 us-gaap Comprehensive Income Net Of Tax
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CY2021 us-gaap Comprehensive Income Net Of Tax
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CY2020 us-gaap Comprehensive Income Net Of Tax
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CY2022 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2021 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2020 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2021 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2020 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2021 us-gaap Earnings Per Share Basic
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CY2020 us-gaap Earnings Per Share Basic
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CY2020 us-gaap Earnings Per Share Diluted
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CY2019Q4 us-gaap Stockholders Equity
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CY2020 us-gaap Net Income Loss
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CY2020 us-gaap Oci Equity Method Investment After Tax
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CY2020 us-gaap Stock Granted During Period Value Sharebased Compensation
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CY2020 svc Stock Repurchased And Forfeitured During Period Value
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CY2020 us-gaap Dividends
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CY2020Q4 us-gaap Stockholders Equity
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CY2021 us-gaap Net Income Loss
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CY2021 us-gaap Oci Equity Method Investment After Tax
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CY2021 us-gaap Stock Granted During Period Value Sharebased Compensation
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CY2021 svc Stock Repurchased And Forfeitured During Period Value
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CY2021 us-gaap Dividends
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CY2021Q4 us-gaap Stockholders Equity
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CY2022 us-gaap Net Income Loss
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CY2022 us-gaap Net Income Loss
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CY2022 us-gaap Oci Equity Method Investment After Tax
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1604000 usd
CY2022 us-gaap Stock Granted During Period Value Sharebased Compensation
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2788000 usd
CY2022 svc Stock Repurchased And Forfeitured During Period Value
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CY2022 us-gaap Dividends
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CY2022Q4 us-gaap Stockholders Equity
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CY2022 us-gaap Net Income Loss
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CY2021 us-gaap Net Income Loss
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CY2020 us-gaap Net Income Loss
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CY2022 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
401108000 usd
CY2021 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
485965000 usd
CY2020 us-gaap Depreciation Depletion And Amortization
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CY2022 us-gaap Amortization Of Financing Costs And Discounts
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19375000 usd
CY2021 us-gaap Amortization Of Financing Costs And Discounts
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21036000 usd
CY2020 us-gaap Amortization Of Financing Costs And Discounts
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CY2022 us-gaap Straight Line Rent
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CY2021 us-gaap Straight Line Rent
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CY2020 us-gaap Straight Line Rent
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CY2022 svc Security Deposits Received Replenished Applied To Payment Shortfalls
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CY2021 svc Security Deposits Received Replenished Applied To Payment Shortfalls
SecurityDepositsReceivedReplenishedAppliedToPaymentShortfalls
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CY2020 svc Security Deposits Received Replenished Applied To Payment Shortfalls
SecurityDepositsReceivedReplenishedAppliedToPaymentShortfalls
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CY2022 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
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CY2021 us-gaap Gains Losses On Extinguishment Of Debt
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CY2020 us-gaap Gains Losses On Extinguishment Of Debt
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CY2022 us-gaap Asset Impairment Charges
AssetImpairmentCharges
10989000 usd
CY2021 us-gaap Asset Impairment Charges
AssetImpairmentCharges
78620000 usd
CY2020 us-gaap Asset Impairment Charges
AssetImpairmentCharges
55756000 usd
CY2022 us-gaap Equity Securities Fv Ni Unrealized Gain Loss
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CY2021 us-gaap Equity Securities Fv Ni Unrealized Gain Loss
EquitySecuritiesFvNiUnrealizedGainLoss
22535000 usd
CY2020 us-gaap Equity Securities Fv Ni Unrealized Gain Loss
EquitySecuritiesFvNiUnrealizedGainLoss
19882000 usd
CY2022 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
2856000 usd
CY2021 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
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CY2020 us-gaap Income Loss From Equity Method Investments
IncomeLossFromEquityMethodInvestments
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CY2022 us-gaap Gain Loss On Sale Of Properties
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47818000 usd
CY2021 us-gaap Gain Loss On Sale Of Properties
GainLossOnSaleOfProperties
11522000 usd
CY2020 us-gaap Gain Loss On Sale Of Properties
GainLossOnSaleOfProperties
2261000 usd
CY2022 us-gaap Gain Loss Related To Litigation Settlement
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0 usd
CY2021 us-gaap Gain Loss Related To Litigation Settlement
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CY2020 us-gaap Gain Loss Related To Litigation Settlement
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62386000 usd
CY2022 us-gaap Deferred Income Taxes And Tax Credits
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CY2021 us-gaap Deferred Income Taxes And Tax Credits
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CY2020 us-gaap Deferred Income Taxes And Tax Credits
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13850000 usd
CY2022 us-gaap Other Noncash Income Expense
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2427000 usd
CY2021 us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
2625000 usd
CY2020 us-gaap Other Noncash Income Expense
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2558000 usd
CY2022 us-gaap Increase Decrease In Due From Related Parties
IncreaseDecreaseInDueFromRelatedParties
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CY2021 us-gaap Increase Decrease In Due From Related Parties
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CY2020 us-gaap Increase Decrease In Due From Related Parties
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CY2022 us-gaap Increase Decrease In Other Operating Assets
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CY2021 us-gaap Increase Decrease In Other Operating Assets
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CY2020 us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
78340000 usd
CY2022 us-gaap Increase Decrease In Other Operating Liabilities
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CY2021 us-gaap Increase Decrease In Other Operating Liabilities
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CY2020 us-gaap Increase Decrease In Other Operating Liabilities
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2296000 usd
CY2022 us-gaap Increase Decrease In Due To Affiliates
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CY2020 svc Property Managers Deposit Of Insurance Proceeds Into Restricted Cash
PropertyManagersDepositOfInsuranceProceedsIntoRestrictedCash
22488000 usd
CY2021 us-gaap Increase Decrease In Due To Affiliates
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CY2020 us-gaap Increase Decrease In Due To Affiliates
IncreaseDecreaseInDueToAffiliates
17910000 usd
CY2022 us-gaap Net Cash Provided By Used In Operating Activities
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243127000 usd
CY2021 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
49904000 usd
CY2020 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
37604000 usd
CY2022 svc Payments To Acquire Real Estate Net Of Deposits
PaymentsToAcquireRealEstateNetOfDeposits
2766000 usd
CY2021 svc Payments To Acquire Real Estate Net Of Deposits
PaymentsToAcquireRealEstateNetOfDeposits
7709000 usd
CY2020 svc Payments To Acquire Real Estate Net Of Deposits
PaymentsToAcquireRealEstateNetOfDeposits
7090000 usd
CY2022 us-gaap Payments For Capital Improvements
PaymentsForCapitalImprovements
103646000 usd
CY2021 us-gaap Payments For Capital Improvements
PaymentsForCapitalImprovements
95017000 usd
CY2020 us-gaap Payments For Capital Improvements
PaymentsForCapitalImprovements
69082000 usd
CY2022 svc Property Managers Purchases With Restricted Cash
PropertyManagersPurchasesWithRestrictedCash
4952000 usd
CY2021 svc Property Managers Purchases With Restricted Cash
PropertyManagersPurchasesWithRestrictedCash
24565000 usd
CY2020 svc Property Managers Purchases With Restricted Cash
PropertyManagersPurchasesWithRestrictedCash
153626000 usd
CY2022 svc Property Managers Deposit Of Insurance Proceeds Into Restricted Cash
PropertyManagersDepositOfInsuranceProceedsIntoRestrictedCash
0 usd
CY2021 svc Property Managers Deposit Of Insurance Proceeds Into Restricted Cash
PropertyManagersDepositOfInsuranceProceedsIntoRestrictedCash
0 usd
CY2022 us-gaap Proceeds From Sale Of Real Estate Heldforinvestment
ProceedsFromSaleOfRealEstateHeldforinvestment
554087000 usd
CY2021 us-gaap Proceeds From Sale Of Real Estate Heldforinvestment
ProceedsFromSaleOfRealEstateHeldforinvestment
51412000 usd
CY2020 us-gaap Proceeds From Sale Of Real Estate Heldforinvestment
ProceedsFromSaleOfRealEstateHeldforinvestment
167542000 usd
CY2022 us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
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0 usd
CY2021 us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
ProceedsFromEquityMethodInvestmentDividendsOrDistributionsReturnOfCapital
12000 usd
CY2020 us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
ProceedsFromEquityMethodInvestmentDividendsOrDistributionsReturnOfCapital
286000 usd
CY2022 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
397253000 usd
CY2021 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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CY2020 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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CY2022 us-gaap Proceeds From Issuance Of Senior Long Term Debt
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0 usd
CY2021 us-gaap Proceeds From Issuance Of Senior Long Term Debt
ProceedsFromIssuanceOfSeniorLongTermDebt
0 usd
CY2020 us-gaap Proceeds From Issuance Of Senior Long Term Debt
ProceedsFromIssuanceOfSeniorLongTermDebt
1250000000 usd
CY2022 us-gaap Repayments Of Senior Debt
RepaymentsOfSeniorDebt
500000000 usd
CY2021 us-gaap Repayments Of Senior Debt
RepaymentsOfSeniorDebt
0 usd
CY2020 us-gaap Repayments Of Senior Debt
RepaymentsOfSeniorDebt
405971000 usd
CY2022 us-gaap Repayments Of Medium Term Notes
RepaymentsOfMediumTermNotes
0 usd
CY2021 us-gaap Repayments Of Medium Term Notes
RepaymentsOfMediumTermNotes
0 usd
CY2020 us-gaap Repayments Of Medium Term Notes
RepaymentsOfMediumTermNotes
400000000 usd
CY2022 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
20000000 usd
CY2021 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
984027000 usd
CY2020 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
1189094000 usd
CY2022 us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
1020000000 usd
CY2021 us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
62451000 usd
CY2020 us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
1487670000 usd
CY2022 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
3864000 usd
CY2021 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
6822000 usd
CY2020 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
26903000 usd
CY2022 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
470000 usd
CY2021 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
790000 usd
CY2020 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
346000 usd
CY2022 us-gaap Payments Of Dividends Common Stock
PaymentsOfDividendsCommonStock
38044000 usd
CY2021 us-gaap Payments Of Dividends Common Stock
PaymentsOfDividendsCommonStock
6596000 usd
CY2020 us-gaap Payments Of Dividends Common Stock
PaymentsOfDividendsCommonStock
93804000 usd
CY2022 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
907368000 usd
CY2020 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
24400000 usd
CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
855962000 usd
CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
10197000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
947418000 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
91456000 usd
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
81259000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
45420000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
947418000 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
91456000 usd
CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
38369000 usd
CY2021Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
944043000 usd
CY2020Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
73332000 usd
CY2022Q4 us-gaap Restricted Cash
RestrictedCash
7051000 usd
CY2021Q4 us-gaap Restricted Cash
RestrictedCash
3375000 usd
CY2020Q4 us-gaap Restricted Cash
RestrictedCash
18124000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
45420000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
947418000 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
91456000 usd
CY2022 us-gaap Interest Paid Net
InterestPaidNet
334264000 usd
CY2021 us-gaap Interest Paid Net
InterestPaidNet
344043000 usd
CY2020 us-gaap Interest Paid Net
InterestPaidNet
281097000 usd
CY2022 us-gaap Income Taxes Paid
IncomeTaxesPaid
1643000 usd
CY2021 us-gaap Income Taxes Paid
IncomeTaxesPaid
3412000 usd
CY2020 us-gaap Income Taxes Paid
IncomeTaxesPaid
2117000 usd
CY2022 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
18704000 usd
CY2021 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
7777000 usd
CY2020 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
5684000 usd
CY2022 us-gaap Noncash Or Part Noncash Acquisition Investments Acquired1
NoncashOrPartNoncashAcquisitionInvestmentsAcquired1
0 usd
CY2021 us-gaap Noncash Or Part Noncash Acquisition Investments Acquired1
NoncashOrPartNoncashAcquisitionInvestmentsAcquired1
0 usd
CY2020 us-gaap Noncash Or Part Noncash Acquisition Investments Acquired1
NoncashOrPartNoncashAcquisitionInvestmentsAcquired1
42000000 usd
CY2022Q4 svc Ownership Percentage Held In Subsidiary
OwnershipPercentageHeldInSubsidiary
1
CY2022 us-gaap Asset Impairment Charges
AssetImpairmentCharges
10989000 usd
CY2021 us-gaap Asset Impairment Charges
AssetImpairmentCharges
78620000 usd
CY2020 us-gaap Asset Impairment Charges
AssetImpairmentCharges
55756000 usd
CY2022Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
252357000 usd
CY2021Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
283241000 usd
CY2022Q4 svc Finite Lived Intangible Liabilities Net
FiniteLivedIntangibleLiabilitiesNet
958000 usd
CY2021Q4 svc Finite Lived Intangible Liabilities Net
FiniteLivedIntangibleLiabilitiesNet
1193000 usd
CY2022 svc Finite Lived Intangible Liabilities Weighted Average Useful Life
FiniteLivedIntangibleLiabilitiesWeightedAverageUsefulLife
P9Y6M
CY2022 svc Finite Lived Intangible Assets Weighted Average Useful Life
FiniteLivedIntangibleAssetsWeightedAverageUsefulLife
P7Y3M18D
CY2022 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
30775000 usd
CY2021 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
41648000 usd
CY2020 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
52264000 usd
CY2022 svc Finite Lived Intangible Liabilities Amortization Expense
FiniteLivedIntangibleLiabilitiesAmortizationExpense
235000 usd
CY2021 svc Finite Lived Intangible Liabilities Amortization Expense
FiniteLivedIntangibleLiabilitiesAmortizationExpense
433000 usd
CY2020 svc Finite Lived Intangible Liabilities Amortization Expense
FiniteLivedIntangibleLiabilitiesAmortizationExpense
2403000 usd
CY2022Q4 us-gaap Debt Issuance Costs Line Of Credit Arrangements Gross
DebtIssuanceCostsLineOfCreditArrangementsGross
6214000 usd
CY2021Q4 us-gaap Debt Issuance Costs Line Of Credit Arrangements Gross
DebtIssuanceCostsLineOfCreditArrangementsGross
14879000 usd
CY2022Q4 us-gaap Accumulated Amortization Of Debt Issuance Costs Line Of Credit Arrangements
AccumulatedAmortizationOfDebtIssuanceCostsLineOfCreditArrangements
3925000 usd
CY2021Q4 us-gaap Accumulated Amortization Of Debt Issuance Costs Line Of Credit Arrangements
AccumulatedAmortizationOfDebtIssuanceCostsLineOfCreditArrangements
8796000 usd
CY2022Q4 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
25545000 usd
CY2021Q4 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
33736000 usd
CY2022Q4 svc Future Amortization Of Debt Issuance Costs Year One
FutureAmortizationOfDebtIssuanceCostsYearOne
9635000 usd
CY2022Q4 svc Future Amortization Of Debt Issuance Costs Year Two
FutureAmortizationOfDebtIssuanceCostsYearTwo
6829000 usd
CY2022Q4 svc Future Amortization Of Debt Issuance Costs Year Three
FutureAmortizationOfDebtIssuanceCostsYearThree
4953000 usd
CY2022Q4 svc Future Amortization Of Debt Issuance Costs Year Four
FutureAmortizationOfDebtIssuanceCostsYearFour
2843000 usd
CY2022Q4 svc Future Amortization Of Debt Issuance Costs Year Five
FutureAmortizationOfDebtIssuanceCostsYearFive
1996000 usd
CY2022Q4 svc Future Amortization Of Debt Issuance Costs After Year Five
FutureAmortizationOfDebtIssuanceCostsAfterYearFive
1578000 usd
CY2022Q4 svc Future Amortization Of Financing Costs
FutureAmortizationOfFinancingCosts
27834000 usd
CY2022 us-gaap Straight Line Rent Adjustments
StraightLineRentAdjustments
7767000 usd
CY2021 us-gaap Straight Line Rent Adjustments
StraightLineRentAdjustments
2621000 usd
CY2020 us-gaap Straight Line Rent Adjustments
StraightLineRentAdjustments
714000 usd
CY2022Q4 svc Straight Line Rent Receivables
StraightLineRentReceivables
32247000 usd
CY2021Q4 svc Straight Line Rent Receivables
StraightLineRentReceivables
26881000 usd
CY2022 us-gaap Use Of Estimates
UseOfEstimates
<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Use of Estimates.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> The preparation of financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in our consolidated financial statements include the allowance for doubtful accounts, purchase price allocations, useful lives of real estate and impairment of long lived assets.</span>
CY2022 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
CY2022 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
164738000 shares
CY2021 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
164566000 shares
CY2020 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
164222000 shares
CY2022 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2021 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2020 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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<div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Note 9. Business and Property Management Agreements with RMR</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We have no employees. The personnel and various services we require to operate our business are provided to us by RMR. We have two agreements with RMR to provide management services to us: (1) a business management agreement, which relates to our business generally, and (2) a property management agreement, which relates to our property level operations of our net lease portfolio, excluding properties leased to TA, the office building component of one of our hotels and major renovation or repositioning activities at our hotels that we may request RMR to manage from time to time. See Note 10 for further information regarding our relationship, agreements and transactions with RMR.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Management Agreements with RMR. </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our management agreements with RMR provide for an annual base management fee, an annual incentive management fee and property management and construction supervision fees, payable in cash, among other terms:</span></div><div style="margin-bottom:6pt;padding-left:54pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Base Management Fee. The annual base management fee payable to RMR by us for each applicable period is equal to the lesser of:</span></div><div style="margin-bottom:6pt;padding-left:72pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">◦</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">the sum of (a) 0.7% of the average aggregate historical cost of our real estate investments up to $250,000, plus (b) 0.5% of the average aggregate historical cost of our real estate investments exceeding $250,000; and</span></div><div style="margin-bottom:6pt;padding-left:72pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">◦</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">the sum of (a) 0.7% of the average closing price per share of our common shares on the stock exchange on which such shares are principally traded, during such period, multiplied by the average number of our common shares outstanding during such period, plus the daily weighted average of the aggregate liquidation preference of each class of our preferred shares outstanding during such period, plus the daily weighted average of the aggregate principal amount of our consolidated indebtedness during such period, or, together, our Average Market Capitalization, up to $250,000, plus (b) 0.5% of our Average Market Capitalization exceeding $250,000.</span></div><div style="margin-bottom:6pt;padding-left:54pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The average aggregate historical cost of our real estate investments includes our consolidated assets invested, directly or indirectly, in equity interests in or loans secured by real estate and personal property owned in connection with such real estate (including acquisition related costs and costs which may be allocated to intangibles or are unallocated), all before reserves for depreciation, amortization, impairment charges or bad debts or other similar non-cash reserves.</span></div><div style="margin-bottom:6pt;padding-left:54pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">Incentive Management Fee</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. The incentive management fee which may be earned by RMR for an annual period is calculated as follows:</span></div><div style="margin-bottom:6pt;padding-left:72pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">◦</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">An amount, subject to a cap based on the value of our common shares outstanding, equal to 12% of the product of:</span></div><div style="margin-bottom:6pt;padding-left:126pt;text-indent:-36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:32.5pt">our equity market capitalization on the last trading day of the year immediately prior to the relevant three year measurement period, and</span></div><div style="margin-bottom:6pt;padding-left:126pt;text-indent:-36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:32.5pt">the amount (expressed as a percentage) by which the total return per share, as defined in the business management agreement and further described below, of our common shareholders (i.e., share price appreciation plus dividends) exceeds the total shareholder return of the applicable market index, or the benchmark return per share, for the relevant measurement period. The MSCI U.S. REIT/Hotel &amp; Resort REIT Index is the benchmark index for periods on and after August 1, 2021, and the SNL U.S. REIT Hotel Index is the benchmark index for periods prior to August 1, 2021.</span></div><div style="margin-bottom:6pt;padding-left:54pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For purposes of the total return per share of our common shareholders, share price appreciation for a measurement period is determined by subtracting (1) the closing price of our common shares on Nasdaq on the last trading day of the year immediately before the first year of the applicable measurement period, or the initial share price, from (2) the average closing price of our common shares on the 10 consecutive trading days having the highest average closing prices during the final 30 trading days in the last year of the measurement period.</span></div><div style="margin-bottom:6pt;padding-left:72pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">◦</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">The calculation of the incentive management fee (including the determinations of our equity market capitalization, initial share price and the total return per share of our common shareholders) is subject to adjustments if we issue or repurchase our common shares, or if our common shares are forfeited, during the measurement period.</span></div><div style="margin-bottom:6pt;padding-left:72pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">◦</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">No incentive management fee is payable by us unless our total return per share during the measurement period is positive.</span></div><div style="margin-bottom:6pt;padding-left:72pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">◦</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">The measurement periods are three year periods ending with the year for which the incentive management fee is being calculated.</span></div><div style="margin-bottom:6pt;padding-left:72pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">◦</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">If our total return per share exceeds 12% per year in any measurement period, the benchmark return per share is adjusted to be the lesser of the total shareholder return of the applicable market index for such measurement period and 12% per year, or the adjusted benchmark return per share. In instances where the adjusted benchmark return per share applies, the incentive management fee will be reduced if our total return per share is between 200 basis points and 500 basis points below the applicable market index in any year, by a low return factor, as defined in the business management agreement, and there will be no incentive management fee paid if, in these instances, our total return per share is more than 500 basis points below the applicable market index in any year, determined on a cumulative basis (i.e., between 200 basis points and 500 basis point per year multiplied by the number of years in the measurement period and below the applicable market index).</span></div><div style="margin-bottom:6pt;padding-left:72pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">◦</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">The incentive management fee is subject to a cap. The cap is equal to the value of the number of our common shares which would, after issuance, represent 1.5% of the number of our common shares then outstanding multiplied by the average closing price of our common shares during the 10 consecutive trading days having the highest average closing prices during the final 30 trading days of the relevant measurement period.</span></div><div style="margin-bottom:6pt;padding-left:72pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">◦</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.46pt">Incentive management fees we paid to RMR for any period may be subject to “clawback” if our financial statements for that period are restated due to material non-compliance with any financial reporting requirements under the securities laws as a result of the bad faith, fraud, willful misconduct or gross negligence of RMR and the amount of the incentive management fee we paid was greater than the amount we would have paid based on the restated financial statements.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Pursuant to our business management agreement with RMR, we recognized net business management fees of $35,495, $42,137 and $36,830 for the years ended December 31, 2022, 2021 and 2020, respectively. The net business management fees we recognized are included in general and administrative expenses in our consolidated statements of comprehensive income (loss) for these periods. The net business management fees we recognized reflect a reduction of $3,585 for the year ended December 31, 2022, and $3,584 for each of the years ended December 31, 2021 and 2020 for the amortization of the liability we recorded in connection with our former investment in RMR Inc.</span></div><div style="margin-bottom:12pt;padding-left:54pt;text-indent:-18pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:13.02pt">Property Management and Construction Supervision Fees. </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The property management fees payable to RMR by us for each applicable period are equal to 3.0% of gross collected rents and the construction supervision fees payable to RMR by us for each applicable period are equal to 5.0% of construction costs for our net lease portfolio, excluding properties leased to TA, and the office building component of one of our hotels that are subject to our property management agreement with RMR. On June 22, 2021, we and RMR amended our property management agreement to, among other things, provide for RMR’s oversight of any major capital projects and repositioning activities at our hotels, including our hotels that are managed by Sonesta, as we may request from time to time. RMR will receive the same fee previously paid to Sonesta for these services, which is equal to 3% of the cost of any such major capital project or repositioning activity.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Pursuant to our property management agreement with RMR, we recognized aggregate property management and construction supervision fees of $6,128, $4,489 and $3,575 for the years ended December 31, 2022, 2021 and 2020, respectively. These amounts are included in other operating expenses or have been capitalized as appropriate in our consolidated financial statements. For the fiscal years ended December 31, 2022, 2021 and 2020, $3,998, $3,674 and $3,283, respectively, of property management fees were recognized as operating expenses in our consolidated statements of comprehensive income (loss) and $2,131, $815 and $292, respectively, were capitalized as building improvements in our consolidated balance sheets and are being depreciated over the estimated useful lives of the related capital assets.</span></div><div style="margin-bottom:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">Expense Reimbursement. </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are generally responsible for all of our operating expenses, including certain expenses incurred or arranged by RMR on our behalf. We are generally not responsible for payment of RMR’s employment, office or administrative expenses incurred to provide management services to us, except for the employment and related expenses of RMR employees assigned to work exclusively or partly at our net lease properties (excluding properties leased to TA) and the office building component of one of our hotels, our share of the wages, benefits and other related costs of RMR’s centralized accounting personnel, our share of RMR’s costs for providing our internal audit function, and as otherwise agreed. Our property level operating expenses are generally incorporated into rents charged to our tenants, including certain payroll and related costs incurred by RMR. We reimbursed RMR $3,258, $2,971 and $2,618 for these expenses and costs for the years ended December 31, 2022, 2021 and 2020, respectively. We included these amounts in other operating expenses and general and administrative expense, as applicable, for these periods.</span></div><div style="margin-bottom:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">Term. </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our management agreements with RMR have terms that end on December 31, 2042, and automatically extend on December 31st of each year for an additional year, so that the terms of our management agreements thereafter end on the 20th anniversary of the date of the extension.</span></div><div style="margin-bottom:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:13.02pt">Termination Rights</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. We have the right to terminate one or both of our management agreements with RMR: (i) at any time on 60 days’ written notice for convenience, (ii) immediately on written notice for cause, as defined therein, (iii) on written notice given within 60 days after the end of an applicable calendar year for a performance reason, as defined therein, and (iv) by written notice during the 12 months following a change of control of RMR, as defined therein. RMR has the right to terminate the management agreements for good reason, as defined therein.</span></div><div style="margin-bottom:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">Termination Fee</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. If we terminate one or both of our management agreements with RMR for convenience, or if RMR terminates one or both of our management agreements for good reason, we have agreed to pay RMR a termination fee in an amount equal to the sum of the present values of the monthly future fees, as defined therein, for the terminated management agreement(s) for the term that was remaining prior to such termination, which, depending on the time of termination would be between 19 and 20 years. If we terminate one or both of our management agreements with RMR for a performance reason, we have agreed to pay RMR the termination fee calculated as described above, but assuming a 10 year term was remaining prior to the termination. We are not required to pay any termination fee if we terminate our management agreements with RMR for cause or as a result of a change of control of RMR.</span></div><div style="margin-bottom:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">Transition Services.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> RMR has agreed to provide certain transition services to us for 120 days following an applicable termination by us or notice of termination by RMR, including cooperating with us and using commercially reasonable efforts to facilitate the orderly transfer of the management and real estate investment services provided under our business management agreement and to facilitate the orderly transfer of the management of the managed properties under our property management agreement, as applicable.</span></div><div style="margin-bottom:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">Vendors. </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Pursuant to our management agreements with RMR, RMR may from time to time negotiate on our behalf with certain third party vendors and suppliers for the procurement of goods and services to us. As part of this arrangement, we may enter agreements with RMR and other companies to which RMR or its subsidiaries provides management services for the purpose of obtaining more favorable terms from such vendors and suppliers.</span></div><div style="margin-bottom:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;padding-left:14.5pt">Investment Opportunities</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. Under our business management agreement with RMR, we acknowledge that RMR may engage in other activities or businesses and act as the manager to any other person or entity (including other REITs) even though such person or entity has investment policies and objectives similar to ours and we are not entitled to preferential treatment in receiving information, recommendations and other services from RMR.</span></div>
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R9.htm Edgar Link pending
report.css Edgar Link pending
Show.js Edgar Link pending
svc-20221231.htm Edgar Link pending
svc-20221231.xsd Edgar Link pending
svc-20221231_def.xml Edgar Link unprocessable
svc-20221231_lab.xml Edgar Link unprocessable
svc-20221231_htm.xml Edgar Link completed
svcletterheadheaderq22020aa.jpg Edgar Link pending