The Company leases land, warehouse and office space, and equipment, which are classified as either operating or finance leases. The Company’s most significant lease is a long-term land lease with the City of San Diego covering approximately 190 acres, including approximately 17 acres of water in Mission Bay Park, California (the “Premises”). While there are no financial restrictions or covenants imposed by the Premises lease, there are certain operational restrictions in that the Premises must be used as a marine park facility and the Company may not operate another marine park facility within 560 miles of the City of San Diego.

The lease term for the Premises ends in June 2048 and the annual rent under the lease is variable and calculated on the basis of a specified percentage of the Company’s gross income from the Premises, (the “Percentage Rent”), or the minimum yearly rent (the “Minimum Rent”), whichever is greater.

The required annual rent payments for the Premises is adjusted every three years to an amount equal to 80% of the average accounting year rent actually paid for the three previous years, with the annual minimum rent calculated as $10.4 million through each of the years ended December 31, 2020 and 2019.

The annual rent payments may vary from the base rent due to a shift of seasonal performance results. Rent payments related to the Premises for the years ended December 31, 2020, 2019 and 2018 were approximately $0.5 million, $10.5 million and $11.2 million, respectively. The Company’s gross income from the Premises was significantly impacted during the year ended December 31, 2020 due to the temporary park closures, limited reopenings, modified operations and capacity restrictions resulting from the impact of the COVID-19 pandemic and related government restrictions in San Diego. As a result, the Company deferred $1.6 million of the Percentage Rent related to the year ended December 31, 2020, and an additional $8.3 million related to the Minimum Rent for the year ended December 31, 2020. As such, approximately $9.9 million is included in accounts payable and accrued expenses on the accompanying consolidated balance sheet as of December 31, 2020 related to this lease. Operating lease liabilities and long-term operating lease liabilities on the accompanying consolidated balance sheet as of December 31, 2020 and the lease maturities as of December 31, 2020 are not adjusted for these deferred payments. Subsequent to December 31, 2020, the Company remitted the amounts owed for Percentage Rent of approximately $1.6 million.

The tables below present the lease balances and their classification in the accompanying consolidated balance sheets as of December 31, 2020 and 2019:

		December 31,		December 31,
	Classification	2020		2019
Assets:			(In thousands)
Operating leases	Right of use assets - operating	$	136,572	$	141,438
Finance leases	Other assets, net		3,580		3,487
Total lease assets		$	140,152	$	144,925
Liabilities:
Current
Operating leases	Operating lease liabilities	$	3,757	$	3,896
Finance leases	Other accrued liabilities		820		707
Noncurrent
Operating leases	Long-term operating lease liabilities		120,144		124,339
Finance leases	Other liabilities		2,899		2,851
Total lease liabilities		$	127,620	$	131,793

The table below presents the lease costs and their classification in the accompanying consolidated statements of comprehensive (loss) income for the years ended December 31, 2020 and 2019:


	Classification	2020		2019
		(In thousands)
Operating lease cost	Operating expenses	$	13,966	$	14,528
Operating lease cost	Selling, general and administrative expenses		425		445
Finance lease cost
Amortization of leased assets	Depreciation and amortization		844		742
Interest on lease liabilities	Interest expense		176		146
Net lease cost		$	15,411	$	15,861

In addition to the operating lease costs above, short-term rent expense for the years ended December 31, 2020 and 2019 were approximately $2.1 million and $4.2 million, respectively, and variable rent expense for the years ended December 31, 2020 and 2019 were $4.9 million and $5.3 million, respectively. The short-term and variable rent expense amounts are included in operating expenses and selling, general and administrative expenses in the accompanying consolidated statements of comprehensive (loss) income.

The table below presents the Company’s lease maturities as of December 31, 2020:

	Operating leases
Years Ending December 31,	Land lease			Other operating leases			Total operating leases			Finance leases
	(In thousands)
2021	$	10,401		$	3,154		$	13,555		$	939
2022		10,401			2,117			12,518			543
2023		10,401			1,704			12,105			226
2024		10,401			1,559			11,960			206
2025		10,401			1,311			11,712			201
Thereafter		234,031			1,617			235,648			2,392
Total lease payments		286,036			11,462			297,498			4,507
Less: Imputed interest		(171,894	)		(1,703	)		(173,597	)		(788	)
Lease liabilities	$	114,142		$	9,759		$	123,901		$	3,719

The table below presents the weighted average remaining lease terms and applicable discount rates as of December 31, 2020 and 2019:


	2020			2019
Weighted average remaining lease term (years):
Operating leases		25.75			26.19
Finance leases		12.87			14.64
Weighted average discount rate:
Operating leases		8.14	%		8.12	%
Finance leases		3.76	%		3.56	%

The table below presents the cash flows and supplemental information associated with the Company’s leasing activities for the years ended December 31, 2020 and 2019:


	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,938	$	14,513
Operating cash flows from finance leases	$	176	$	146
Financing cash flows from finance leases	$	806	$	692
Right of use assets obtained in exchange for lease liabilities:
Finance leases	$	938	$	1,285
Operating leases	$	-	$	133,297