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Leases (Tables)

9 Months Ended

Sep. 30, 2019

The components of lease cost recorded in the Company’s condensed consolidated statement of operations were as follows:



	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
	(in thousands)
Operating lease cost	$	2,796		$	8,064
Finance lease cost
Amortization of leased assets	12,217			36,645
Interest on lease liabilities	13,093			39,917
Variable lease cost	7,427			20,225
Sublease income	(1,702		)	(4,873		)
Net lease cost	$	33,831		$	99,978

Components of lease in balance sheets

The Company’s leases are included on its condensed consolidated balance sheets as follows:



	As of September 30, 2019		As of December 31, 2018 ^
	(in thousands)
Finance leases
Property and equipment, net	$	449,350	$	640,952
Total finance lease assets	$	449,350	$	640,952

Capital lease obligations, current portion	$	—	$	9,817
Other current liabilities	37,063		5,271
Capital lease obligations, excluding current portion	—		19,658
Construction financing lease obligation, excluding current portion	—		561,892
Long-term finance lease liabilities	541,561		—
Total finance lease liabilities	$	578,624	$	596,638

Operating leases
Operating lease assets	$	60,929	$	—
Total operating lease assets	$	60,929	$	—

Other current liabilities	$	8,199	$	—
Long-term operating lease liabilities	62,978		—
Total operating lease liabilities	$	71,177	$	—
^ As reported in the Company’s 2018 Annual Report on Form 10-K.

Finance lease, liability, maturity

Maturities of the Company’s finance and operating lease liabilities in accordance with ASC 842 as of September 30, 2019 were as follows:



Year	Finance Leases			Operating Leases			Total
	(in thousands)
Remainder of 2019	$	16,172		$	2,299		$	18,471
2020	89,159			11,033			100,192
2021	87,525			9,372			96,897
2022	85,177			8,994			94,171
2023	84,253			8,920			93,173
Thereafter	513,206			47,405			560,611
Total lease payments	875,492			88,023			963,515
Less: amount representing interest	(296,868		)	(16,846		)	(313,714		)
Present value of lease liabilities	$	578,624		$	71,177		$	649,801

Lessee, operating lease, liability, maturity

Maturities of the Company’s finance and operating lease liabilities in accordance with ASC 842 as of September 30, 2019 were as follows:



Year	Finance Leases			Operating Leases			Total
	(in thousands)
Remainder of 2019	$	16,172		$	2,299		$	18,471
2020	89,159			11,033			100,192
2021	87,525			9,372			96,897
2022	85,177			8,994			94,171
2023	84,253			8,920			93,173
Thereafter	513,206			47,405			560,611
Total lease payments	875,492			88,023			963,515
Less: amount representing interest	(296,868		)	(16,846		)	(313,714		)
Present value of lease liabilities	$	578,624		$	71,177		$	649,801

Weighted-average remaining lease terms and discount rates

The weighted-average remaining lease terms and discount rates related to the Company’s leases were as follows:



	As of September 30, 2019
Weighted-average remaining lease term (in years)
Finance leases	10.02
Operating leases	10.41

Weighted-average discount rate
Finance leases	9.11	%
Operating leases	4.01	%

Schedule of future minimum rental payments for operating leases

The following information is disclosed in accordance with ASC 840, Leases (Topic 840) (“ASC 840”), which was applicable until December 31, 2018. As of December 31, 2018, future minimum commitments under the Company’s real estate leases with initial terms of more than one year were as follows:



Year	Fan Pier Leases		San Diego Lease		Other Leases		Total Lease Commitments
	(in thousands)
2019	$	66,540	$	5,324	$	13,207	$	85,071
2020	72,589		9,127		14,270		95,986
2021	72,589		9,127		12,529		94,245
2022	72,589		9,127		12,045		93,761
2023	72,589		9,530		11,952		94,071
Thereafter	389,855		119,864		65,472		575,191
Total minimum lease payments	$	746,751	$	162,099	$	129,475	$	1,038,325

Schedule of future minimum lease payments for capital leases

The following table set forth the Company’s future minimum payments due under capital leases as of December 31, 2018:



Year	(in thousands)
2019	$	10,770
2020	7,282
2021	5,649
2022	3,300
2023	1,974
Thereafter	3,085
Total payments	32,060
Less: amount representing interest	(2,585		)
Present value of payments	$	29,475