Leases and Other

9 Months Ended

Sep. 30, 2020

Note 19. Leases and Other

The balance sheet presentation of our operating and finance leases is as follows:

		September 30,		December 31,
(in thousands)	Classification on the Condensed Consolidated Balance Sheet	2020		2019
Assets:
Operating lease assets	Operating lease right-of-use assets	$	88,394	$	103,314
Finance lease assets	Property and equipment, net		22,786		25,350
Total lease assets		$	111,180	$	128,664

Liabilities:
Current:
Operating lease obligations	Operating lease obligations	$	17,872	$	22,180
Finance lease obligations	Current portion of debt and finance lease obligations		2,895		3,386
Noncurrent:
Operating lease obligations	Long-term operating lease obligations		73,688		82,851
Finance lease obligations	Long-term debt and finance lease obligations		20,123		21,871
Total lease liabilities		$	114,578	$	130,288

The components of lease expense consisted of the following:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2020		2019		2020		2019
Finance lease cost:
Amortization of right-of-use assets	$	926	$	697	$	2,767	$	1,895
Interest on lease liabilities		429		130		1,258		379
Operating lease cost		6,596		6,625		20,235		19,456
Short-term lease cost		123		571		465		1,348
Variable lease cost		1,557		1,478		4,615		4,695
Sublease income⁽¹⁾		—		226		—		—
Total lease cost, net	$	9,631	$	9,727	$	29,340	$	27,773

⁽¹⁾ Sublease income excludes rental income from owned assets, which is recorded in revenue.

Other information related to operating and finance leases are as follows:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(in thousands)	2020			2019		2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,644		$	7,250	$	18,268		$	20,853
Operating cash flows from finance leases	$	839		$	210	$	1,705		$	459
Financing cash flows from finance leases	$	665		$	525	$	2,235		$	1,537
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	(3,059	)	$	49,123	$	1,018		$	62,375
Finance leases	$	126		$	14,893	$	1,894		$	35,844

						September 30,			December 31,
						2020			2019
Weighted-average remaining lease term (years):
Operating leases							8.30			8.17
Finance leases							13.58			14.01
Weighted-average discount rate:
Operating leases							5.89	%		5.77	%
Finance leases							7.91	%		7.73	%

As of September 30, 2020, 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 2020	$	6,188		$	1,458		$	7,646
2021		20,043			4,284			24,327
2022		15,844			3,796			19,640
2023		13,407			3,276			16,683
2024		10,265			2,609			12,874
Thereafter		54,410			23,556			77,966
Total future lease payments		120,157			38,979			159,136
Less: Amount representing interest		(28,597	)		(15,961	)		(44,558	)
Present value of minimum lease payments		91,560			23,018			114,578
Current portion		17,872			2,895			20,767
Long-term portion	$	73,688		$	20,123		$	93,811

As of September 30, 2020, the estimated future minimum rentals under non-cancellable leases, which includes rental income from facilities that we own, are as follows:

(in thousands)
Remainder of 2020	$	431
2021		1,499
2022		1,046
2023		830
2024		612
Thereafter		1,765
Total minimum rents	$	6,183

Leases Not Yet Commenced

As of September 30, 2020, we had executed certain facility and land leases 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 the lease commencement dates to begin between fiscal years 2021 and 2022 with lease terms of 15 to 47 years.