Leases |
Leases The Company has operating and finance leases for its facilities and certain equipment. The Company leases its corporate office space from related parties. The Company’s total lease cost was as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2019 | | Three Months Ended September 30, 2020 | | Unrelated Parties | | Related Parties | | Total | | Unrelated Parties | | Related Parties | | Total | Operating lease cost | $ | 68,046 | | | $ | 1,342 | | | $ | 69,388 | | | $ | 69,308 | | | $ | 1,799 | | | $ | 71,107 | | Finance lease cost: | | | | | | | | | | | | Amortization of right-of-use assets | 73 | | | — | | | 73 | | | 147 | | | — | | | 147 | | Interest on lease liabilities | 259 | | | — | | | 259 | | | 255 | | | — | | | 255 | | Short-term lease cost | 592 | | | — | | | 592 | | | — | | | — | | | — | | Variable lease cost | 11,789 | | | 156 | | | 11,945 | | | 12,121 | | | 156 | | | 12,277 | | Sublease income | (2,458) | | | — | | | (2,458) | | | (2,566) | | | — | | | (2,566) | | Total lease cost | $ | 78,301 | | | $ | 1,498 | | | $ | 79,799 | | | $ | 79,265 | | | $ | 1,955 | | | $ | 81,220 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2019 | | Nine Months Ended September 30, 2020 | | Unrelated Parties | | Related Parties | | Total | | Unrelated Parties | | Related Parties | | Total | Operating lease cost | $ | 202,600 | | | $ | 4,026 | | | $ | 206,626 | | | $ | 208,466 | | | $ | 5,319 | | | $ | 213,785 | | Finance lease cost: | | | | | | | | | | | | Amortization of right-of-use assets | 199 | | | — | | | 199 | | | 278 | | | — | | | 278 | | Interest on lease liabilities | 555 | | | — | | | 555 | | | 743 | | | — | | | 743 | | Short-term lease cost | 1,776 | | | — | | | 1,776 | | | — | | | — | | | — | | Variable lease cost | 32,380 | | | 397 | | | 32,777 | | | 36,133 | | | 424 | | | 36,557 | | Sublease income | (7,388) | | | — | | | (7,388) | | | (7,742) | | | — | | | (7,742) | | Total lease cost | $ | 230,122 | | | $ | 4,423 | | | $ | 234,545 | | | $ | 237,878 | | | $ | 5,743 | | | $ | 243,621 | |
Supplemental cash flow information related to leases was as follows (in thousands): | | | | | | | | | | | | | Nine Months Ended September 30, | | 2019 | | 2020 | Cash paid for amounts included in the measurement of lease liabilities: | | | | Operating cash flows for operating leases | $ | 204,909 | | | $ | 205,977 | | Operating cash flows for finance leases | 526 | | | 758 | | Financing cash flows for finance leases | 183 | | | 103 | | Right-of-use assets obtained in exchange for lease liabilities: | | | | Operating leases(1) | $ | 1,202,165 | | | $ | 168,863 | | Finance leases | 9,102 | | | 1,198 | |
_______________________________________________________________________________ (1) Includes the right-of-use assets obtained in exchange for lease liabilities of $1,057.0 million which were recognized upon adoption of ASC Topic 842 at January 1, 2019.
Supplemental balance sheet information related to leases was as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | September 30, 2020 | | Unrelated Parties | | Related Parties | | Total | | Unrelated Parties | | Related Parties | | Total | Operating Leases | | | | | | | | | | | | Operating lease right-of-use assets | $ | 971,382 | | | $ | 32,604 | | | $ | 1,003,986 | | | $ | 974,254 | | | $ | 31,435 | | | $ | 1,005,689 | | | | | | | | | | | | | | Current operating lease liabilities | $ | 202,506 | | | $ | 5,444 | | | $ | 207,950 | | | $ | 209,276 | | | $ | 5,959 | | | $ | 215,235 | | Non-current operating lease liabilities | 826,049 | | | 26,848 | | | 852,897 | | | 827,638 | | | 24,917 | | | 852,555 | | Total operating lease liabilities | $ | 1,028,555 | | | $ | 32,292 | | | $ | 1,060,847 | | | $ | 1,036,914 | | | $ | 30,876 | | | $ | 1,067,790 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | September 30, 2020 | | Unrelated Parties | | Related Parties | | Total | | Unrelated Parties | | Related Parties | | Total | Finance Leases | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Property and equipment, net | $ | 4,965 | | | $ | — | | | $ | 4,965 | | | $ | 5,677 | | | $ | — | | | $ | 5,677 | | | | | | | | | | | | | | Current portion of long-term debt and notes payable | $ | 195 | | | $ | — | | | $ | 195 | | | $ | 518 | | | $ | — | | | $ | 518 | | Long-term debt, net of current portion | 13,088 | | | — | | | 13,088 | | | 13,644 | | | — | | | 13,644 | | Total finance lease liabilities | $ | 13,283 | | | $ | — | | | $ | 13,283 | | | $ | 14,162 | | | $ | — | | | $ | 14,162 | |
The weighted average remaining lease terms and discount rates were as follows: | | | | | | | | | | | | | December 31, 2019 | | September 30, 2020 | Weighted average remaining lease term (in years): | | | | Operating leases | 8.0 | | 7.8 | Finance leases | 34.4 | | 31.4 | Weighted average discount rate: | | | | Operating leases | 5.9 | % | | 5.6 | % | Finance leases | 7.3 | % | | 7.2 | % |
As of September 30, 2020, maturities of lease liabilities were approximately as follows (in thousands): | | | | | | | | | | | | | | | Operating Leases | | Finance Leases | | | 2020 (remainder of year) | $ | 69,597 | | | $ | 289 | | | | 2021 | 258,872 | | | 1,669 | | | | 2022 | 216,986 | | | 1,656 | | | | 2023 | 172,282 | | | 1,523 | | | | 2024 | 136,408 | | | 1,194 | | | | Thereafter | 544,469 | | | 30,223 | | | | Total undiscounted cash flows | 1,398,614 | | | 36,554 | | | | Less: Imputed interest | 330,824 | | | 22,392 | | | | Total discounted lease liabilities | $ | 1,067,790 | | | $ | 14,162 | | | |
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Leases |
Leases The Company has operating and finance leases for its facilities and certain equipment. The Company leases its corporate office space from related parties. The Company’s total lease cost was as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2019 | | Three Months Ended September 30, 2020 | | Unrelated Parties | | Related Parties | | Total | | Unrelated Parties | | Related Parties | | Total | Operating lease cost | $ | 68,046 | | | $ | 1,342 | | | $ | 69,388 | | | $ | 69,308 | | | $ | 1,799 | | | $ | 71,107 | | Finance lease cost: | | | | | | | | | | | | Amortization of right-of-use assets | 73 | | | — | | | 73 | | | 147 | | | — | | | 147 | | Interest on lease liabilities | 259 | | | — | | | 259 | | | 255 | | | — | | | 255 | | Short-term lease cost | 592 | | | — | | | 592 | | | — | | | — | | | — | | Variable lease cost | 11,789 | | | 156 | | | 11,945 | | | 12,121 | | | 156 | | | 12,277 | | Sublease income | (2,458) | | | — | | | (2,458) | | | (2,566) | | | — | | | (2,566) | | Total lease cost | $ | 78,301 | | | $ | 1,498 | | | $ | 79,799 | | | $ | 79,265 | | | $ | 1,955 | | | $ | 81,220 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2019 | | Nine Months Ended September 30, 2020 | | Unrelated Parties | | Related Parties | | Total | | Unrelated Parties | | Related Parties | | Total | Operating lease cost | $ | 202,600 | | | $ | 4,026 | | | $ | 206,626 | | | $ | 208,466 | | | $ | 5,319 | | | $ | 213,785 | | Finance lease cost: | | | | | | | | | | | | Amortization of right-of-use assets | 199 | | | — | | | 199 | | | 278 | | | — | | | 278 | | Interest on lease liabilities | 555 | | | — | | | 555 | | | 743 | | | — | | | 743 | | Short-term lease cost | 1,776 | | | — | | | 1,776 | | | — | | | — | | | — | | Variable lease cost | 32,380 | | | 397 | | | 32,777 | | | 36,133 | | | 424 | | | 36,557 | | Sublease income | (7,388) | | | — | | | (7,388) | | | (7,742) | | | — | | | (7,742) | | Total lease cost | $ | 230,122 | | | $ | 4,423 | | | $ | 234,545 | | | $ | 237,878 | | | $ | 5,743 | | | $ | 243,621 | |
Supplemental cash flow information related to leases was as follows (in thousands): | | | | | | | | | | | | | Nine Months Ended September 30, | | 2019 | | 2020 | Cash paid for amounts included in the measurement of lease liabilities: | | | | Operating cash flows for operating leases | $ | 204,909 | | | $ | 205,977 | | Operating cash flows for finance leases | 526 | | | 758 | | Financing cash flows for finance leases | 183 | | | 103 | | Right-of-use assets obtained in exchange for lease liabilities: | | | | Operating leases(1) | $ | 1,202,165 | | | $ | 168,863 | | Finance leases | 9,102 | | | 1,198 | |
_______________________________________________________________________________ (1) Includes the right-of-use assets obtained in exchange for lease liabilities of $1,057.0 million which were recognized upon adoption of ASC Topic 842 at January 1, 2019.
Supplemental balance sheet information related to leases was as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | September 30, 2020 | | Unrelated Parties | | Related Parties | | Total | | Unrelated Parties | | Related Parties | | Total | Operating Leases | | | | | | | | | | | | Operating lease right-of-use assets | $ | 971,382 | | | $ | 32,604 | | | $ | 1,003,986 | | | $ | 974,254 | | | $ | 31,435 | | | $ | 1,005,689 | | | | | | | | | | | | | | Current operating lease liabilities | $ | 202,506 | | | $ | 5,444 | | | $ | 207,950 | | | $ | 209,276 | | | $ | 5,959 | | | $ | 215,235 | | Non-current operating lease liabilities | 826,049 | | | 26,848 | | | 852,897 | | | 827,638 | | | 24,917 | | | 852,555 | | Total operating lease liabilities | $ | 1,028,555 | | | $ | 32,292 | | | $ | 1,060,847 | | | $ | 1,036,914 | | | $ | 30,876 | | | $ | 1,067,790 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | September 30, 2020 | | Unrelated Parties | | Related Parties | | Total | | Unrelated Parties | | Related Parties | | Total | Finance Leases | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Property and equipment, net | $ | 4,965 | | | $ | — | | | $ | 4,965 | | | $ | 5,677 | | | $ | — | | | $ | 5,677 | | | | | | | | | | | | | | Current portion of long-term debt and notes payable | $ | 195 | | | $ | — | | | $ | 195 | | | $ | 518 | | | $ | — | | | $ | 518 | | Long-term debt, net of current portion | 13,088 | | | — | | | 13,088 | | | 13,644 | | | — | | | 13,644 | | Total finance lease liabilities | $ | 13,283 | | | $ | — | | | $ | 13,283 | | | $ | 14,162 | | | $ | — | | | $ | 14,162 | |
The weighted average remaining lease terms and discount rates were as follows: | | | | | | | | | | | | | December 31, 2019 | | September 30, 2020 | Weighted average remaining lease term (in years): | | | | Operating leases | 8.0 | | 7.8 | Finance leases | 34.4 | | 31.4 | Weighted average discount rate: | | | | Operating leases | 5.9 | % | | 5.6 | % | Finance leases | 7.3 | % | | 7.2 | % |
As of September 30, 2020, maturities of lease liabilities were approximately as follows (in thousands): | | | | | | | | | | | | | | | Operating Leases | | Finance Leases | | | 2020 (remainder of year) | $ | 69,597 | | | $ | 289 | | | | 2021 | 258,872 | | | 1,669 | | | | 2022 | 216,986 | | | 1,656 | | | | 2023 | 172,282 | | | 1,523 | | | | 2024 | 136,408 | | | 1,194 | | | | Thereafter | 544,469 | | | 30,223 | | | | Total undiscounted cash flows | 1,398,614 | | | 36,554 | | | | Less: Imputed interest | 330,824 | | | 22,392 | | | | Total discounted lease liabilities | $ | 1,067,790 | | | $ | 14,162 | | | |
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