| Leases and Other |
Note 19. Leases and Other
The balance sheet presentation of our operating and finance leases is as follows:
|
|
|
|
|
September 30, |
|
|
(in thousands) |
|
Classification on the Condensed Consolidated Balance Sheet |
|
2019 |
|
|
Assets: |
|
|
|
|
|
|
|
Operating lease assets |
|
Operating lease right-of-use assets |
|
$ |
103,403 |
|
|
Finance lease assets |
|
Property and equipment, net |
|
|
25,257 |
|
|
Total lease assets |
|
|
|
$ |
128,660 |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Current: |
|
|
|
|
|
|
|
Operating lease obligations |
|
Operating lease obligations |
|
$ |
22,526 |
|
|
Finance lease obligations |
|
Current portion of debt and finance lease obligations |
|
|
2,784 |
|
|
Noncurrent: |
|
|
|
|
|
|
|
Operating lease obligations |
|
Long-term operating lease obligations |
|
|
82,630 |
|
|
Finance lease obligations |
|
Long-term debt and finance lease obligations |
|
|
22,546 |
|
|
Total lease liabilities |
|
|
|
$ |
130,486 |
|
The components of lease expense consisted of the following:
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
(in thousands) |
|
September 30, 2019 |
|
|
September 30, 2019 |
|
|
Finance lease cost: |
|
|
|
|
|
|
|
|
|
Amortization of right-of-use assets |
|
$ |
697 |
|
|
$ |
1,895 |
|
|
Interest on lease liabilities |
|
|
130 |
|
|
|
379 |
|
|
Operating lease cost |
|
|
6,625 |
|
|
|
19,456 |
|
|
Short-term lease cost |
|
|
571 |
|
|
|
1,348 |
|
|
Variable lease cost |
|
|
1,478 |
|
|
|
4,695 |
|
|
Sublease income(1) |
|
|
226 |
|
|
|
— |
|
|
Total lease cost, net |
|
$ |
9,727 |
|
|
$ |
27,773 |
|
(1) Sublease income excludes rental income from owned assets, which is recorded in revenue.
Leases Not Yet Commenced
As of September 30, 2019, we had certain facility and land leases that were executed but for which we did not have control of the underlying assets. Accordingly, we did not record the lease liabilities and right-of-use assets on our Condensed Consolidated Balance Sheets. These leases include future planned attractions for Pursuit that are currently in the planning or development phase and that we expect to commence between fiscal years 2019 and 2022 with lease terms of 15 to 20 years.
Other information related to operating and finance leases are as follows:
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
(in thousands) |
|
September 30, 2019 |
|
|
September 30, 2019 |
|
|
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
Operating cash flows from operating leases |
|
$ |
7,250 |
|
|
$ |
20,853 |
|
|
Operating cash flows from finance leases |
|
$ |
210 |
|
|
$ |
459 |
|
|
Financing cash flows from finance leases |
|
$ |
525 |
|
|
$ |
1,537 |
|
|
Right-of-use assets obtained in exchange for lease obligations: |
|
|
|
|
|
|
|
|
|
Operating leases |
|
$ |
49,123 |
|
|
$ |
62,375 |
|
|
Finance leases |
|
$ |
14,893 |
|
|
$ |
35,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
|
2019 |
|
|
Weighted-average remaining lease term (years): |
|
|
|
|
|
|
|
|
|
Operating leases |
|
|
|
|
|
|
8.23 |
|
|
Finance leases |
|
|
|
|
|
|
15.41 |
|
|
Weighted-average discount rate: |
|
|
|
|
|
|
|
|
|
Operating leases |
|
|
|
|
|
|
5.78 |
% |
|
Finance leases |
|
|
|
|
|
|
6.16 |
% |
As of September 30, 2019, the estimated future minimum lease payments under non-cancellable leases, excluding variable leases and variable non-lease components, are as follows:
|
(in thousands) |
|
Operating Leases |
|
|
Finance Leases |
|
|
Total |
|
|
Remainder of 2019 |
|
$ |
7,040 |
|
|
$ |
1,323 |
|
|
$ |
8,363 |
|
|
2020 |
|
|
23,839 |
|
|
|
4,136 |
|
|
|
27,975 |
|
|
2021 |
|
|
17,340 |
|
|
|
3,381 |
|
|
|
20,721 |
|
|
2022 |
|
|
15,102 |
|
|
|
2,920 |
|
|
|
18,022 |
|
|
2023 |
|
|
12,368 |
|
|
|
2,784 |
|
|
|
15,152 |
|
|
Thereafter |
|
|
62,643 |
|
|
|
25,125 |
|
|
|
87,768 |
|
|
Total future lease payments |
|
|
138,332 |
|
|
|
39,669 |
|
|
|
178,001 |
|
|
Less: Amount representing interest |
|
|
(33,176 |
) |
|
|
(14,339 |
) |
|
|
(47,515 |
) |
|
Present value of minimum lease payments |
|
|
105,156 |
|
|
|
25,330 |
|
|
|
130,486 |
|
|
Current portion |
|
|
22,526 |
|
|
|
2,784 |
|
|
|
25,310 |
|
|
Long-term portion |
|
$ |
82,630 |
|
|
$ |
22,546 |
|
|
$ |
105,176 |
|
As of September 30, 2019, the estimated future minimum rentals under non-cancellable leases, which includes rental income from facilities that we own and sublease income from facilities that we lease, are as follows:
|
(in thousands) |
|
|
|
|
|
Remainder of 2019 |
|
$ |
453 |
|
|
2020 |
|
|
2,020 |
|
|
2021 |
|
|
1,716 |
|
|
2022 |
|
|
1,384 |
|
|
2023 |
|
|
1,192 |
|
|
Thereafter |
|
|
5,764 |
|
|
Total minimum sublease rents |
|
$ |
12,529 |
|
As previously disclosed in our 2018 Form 10-K and under the previous lease accounting standard, our future minimum rental payments and related sublease rentals receivable with respect to non-cancelable operating leases with terms in excess of one year would have been as follows as of December 31, 2018:
|
(in thousands) |
|
Rental
Payments |
|
|
Receivable
Under Subleases |
|
|
2019 |
|
$ |
28,671 |
|
|
$ |
2,382 |
|
|
2020 |
|
|
22,919 |
|
|
|
1,582 |
|
|
2021 |
|
|
13,217 |
|
|
|
1,711 |
|
|
2022 |
|
|
8,280 |
|
|
|
1,370 |
|
|
2023 |
|
|
6,201 |
|
|
|
1,270 |
|
|
Thereafter |
|
|
8,305 |
|
|
|
2,798 |
|
|
Total |
|
$ |
87,593 |
|
|
$ |
11,113 |
|
|