Leases and Other

9 Months Ended

Sep. 30, 2019

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