Reduced Lease Liabilities…Positive Impact in Q2 DCM modified certain leases by entering into renewal and/or amending agreements to extend or reduce a lease term and/or increase/reduce the lease payments.
During the three months ended March 31, 2021, DCM reduced the assumed duration of various leased facilities to exclude extension options as management determined that it was no longer considered reasonably certain that they would be exercised.
Lease liabilities at exit of Q1 was $3 million less than at exit Dec 2020.
Along with adding several significant new customers, gains from restructuring activities taken in Q1/21, and continued cost compression measures, it seems certain that Q2 will have a very pleasant cachet when it is released a few weeks hence.