RMR GROUP INC.RMR

RMR GROUP INC. Commitments Disclosure

10-KFiled Nov 22, 20192 min read
Commitments
We lease office space under operating leases. These leases generally contain fixed contractual rent changes and certain of the leases provide for operating expense reimbursements. We recognize rental expense on operating leases that contain fixed contractual rent changes on a straight line basis over the terms of the respective leases. As of September 30, 2019, we had 31 leases that expire at various dates through 2030. We incurred rental expense for the fiscal years ended September 30, 2019, 2018 and 2017 of $6,370, $5,364 and $4,933, respectively, including non-cash straight line rent expense of $391, $201 and $250, respectively. Rental expense is included in general and administrative expenses in our consolidated statements of comprehensive income.
The future scheduled minimum lease payments under the terms of these leases as of September 30, 2019 are as follows (per fiscal year ended September 30):
2020
$
5,264

2021
5,215

2022
5,293

2023
4,658

2024
4,212

Thereafter
21,286

 
$
45,928


Some of the foregoing leases are with related parties. As of September 30, 2019, $40,853 of our future scheduled minimum lease payments are for our principal executive offices, which are leased from an affiliate of ABP Trust pursuant to a lease agreement that expires in 2030. For more information about these related party leases, see Note 6, Related Person Transactions.
In connection with the formation of the Open End Fund in 2018, RMR LLC committed to contribute up to $100,000 to the Open End Fund when called by the general partner. For additional information regarding this commitment to the Open End Fund, see Note 6, Related Person Transactions.
Free Sentinel

Want the next RMR GROUP INC. commitments disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment RMR GROUP INC.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2019Nov 22, 2019Showing above
2018Dec 3, 2018
2017Dec 12, 2017
2016Dec 15, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&ELeasesSegmentsDebtNew StandardsPay vs Performance