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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Other information related to leases, components of lease expense and supplemental cash flow information

Supplemental cash flow information related to leases was as follows:



(in thousands)	For the six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	7,657
Operating cash flows from operating leases	$	186,868
Financing cash flows from finance leases	$	2,941

Information related to lease term and discount rate was as follows:



	June 30, 2019
Weighted Average Remaining Lease Term
Operating leases ⁽¹⁾	27.8 years
Finance leases ⁽²⁾	28.8 years
Financing obligations ⁽³⁾	30.9 years

Weighted Average Discount Rate⁽⁴⁾
Operating leases	6.7	%
Finance leases	6.8	%
Financing obligations	8.1	%


(1)	Amount consists principally of (i) land components associated with our Master Leases; (ii) our Meadows Lease; (iii) our Margaritaville Lease; (iv) our Greektown Lease; (v) ground and levee leases with landlords which were not assumed by our REIT landlords; and (vi) building and equipment not associated with our Master Leases.


(2)	Amount consists primarily of the Dayton and Mahoning Valley finance leases.


(3)	Amount consists of the components contained within each of the Master Leases determined to continue to be financing obligations (primarily buildings) at the adoption date of the new lease standard.


(4)	For leases where the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments.

The components of lease expense were as follows:



	Classification
(in thousands)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense		Depreciation and Amortization		Total for the three months ended June 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	90,025	$	—	$	—	$	90,025
Operating lease cost⁽²⁾	146		113		4,346		—		—		4,605
Short-term lease cost	14,226		375		212		—		—		14,813
Variable lease cost⁽²⁾	—		—		260		—		—		260
Total	$	14,372	$	488	$	94,843	$	—	$	—	$	109,703

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	3,830	$	—	$	3,830
Amortization expense ⁽³⁾	—		—		—		—		1,956		1,956
Total	$	—	$	—	$	—	$	3,830	$	1,956	$	5,786

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	98,369	$	—	$	98,369



	Classification
(in thousands)	Gaming Expense		Food, Beverage, Hotel and Other Expense		General and Administrative		Interest Expense		Depreciation and Amortization		Total for the six months ended June 30, 2019
Operating Lease Costs
Rent expense associated with triple net leases classified as operating leases ⁽¹⁾	$	—	$	—	$	174,755	$	—	$	—	$	174,755
Operating lease cost⁽²⁾	283		269		8,443		—		—		8,995
Short-term lease cost	27,162		535		780		—		—		28,477
Variable lease cost⁽²⁾	1,201		2		575		—		—		1,778
Total	$	28,646	$	806	$	184,553	$	—	$	—	$	214,005

Finance Lease Costs
Interest expense ⁽³⁾	$	—	$	—	$	—	$	7,657	$	—	$	7,657
Amortization expense ⁽³⁾	—		—		—		—		3,915		3,915
Total	$	—	$	—	$	—	$	7,657	$	3,915	$	11,572

Financing Obligation Costs
Interest expense ⁽⁴⁾	$	—	$	—	$	—	$	196,041	$	—	$	196,041


(1)	Pertains to the components contained within the Master Leases (primarily land) determined to be operating leases, the Meadows Lease, the Margaritaville Lease, and the Greektown Lease, inclusive of the variable expense associated with Columbus and Toledo for the operating lease components (the land) (see table above).


(2)	Excludes the operating lease costs and variable lease costs pertaining to our triple net leases with our REIT landlords classified as operating leases, discussed in footnote (1) above.


(3)	Primarily pertains to the Dayton and Mahoning Valley finance leases.

(4)

Pertains to the components contained within the Master Leases (primarily buildings) determined to continue to be financing obligations, inclusive of the variable expense associated with Columbus and Toledo for the finance lease components (the buildings) (see table above).

Total monthly variable expenses were as follows:



	For the three months ended June 30,				For the six months ended June 30,
(in thousands)	2019		2018		2019		2018
Variable expenses included in “General and administrative”	$	6,238	$	—	$	13,042	$	—
Variable expenses included in “Interest expense”	5,725		12,543		11,969		24,984
Total variable expenses	$	11,963	$	12,543	$	25,011	$	24,984

Schedule of future minimum lease commitments, operating leases

The following is a maturity analysis of our operating leases, finance leases, and financing obligations as of June 30, 2019:



(in thousands)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2019 (excluding the six months ended June 30, 2019)	$	209,805		$	10,749		$	194,793
2020	408,009			21,481			374,715
2021	387,771			21,474			367,278
2022	384,825			21,362			367,278
2023	381,689			20,497			367,278
Thereafter	8,159,497			403,820			9,637,956
Total lease payments	9,931,596			499,383			11,309,298
Less: Amounts representing interest	(5,490,450		)	(273,694		)	(7,140,249		)
Present value of future lease payments	4,441,146			225,689			4,169,049
Less: Current portion of lease obligations	(123,797		)	(6,214		)	(49,890		)
Long-term portion of lease obligations	$	4,317,349		$	219,475		$	4,119,159

Schedule of future minimum lease commitments, finance leases

The following is a maturity analysis of our operating leases, finance leases, and financing obligations as of June 30, 2019:



(in thousands)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2019 (excluding the six months ended June 30, 2019)	$	209,805		$	10,749		$	194,793
2020	408,009			21,481			374,715
2021	387,771			21,474			367,278
2022	384,825			21,362			367,278
2023	381,689			20,497			367,278
Thereafter	8,159,497			403,820			9,637,956
Total lease payments	9,931,596			499,383			11,309,298
Less: Amounts representing interest	(5,490,450		)	(273,694		)	(7,140,249		)
Present value of future lease payments	4,441,146			225,689			4,169,049
Less: Current portion of lease obligations	(123,797		)	(6,214		)	(49,890		)
Long-term portion of lease obligations	$	4,317,349		$	219,475		$	4,119,159

Schedule of future minimum lease commitments, financing obligations

The following is a maturity analysis of our operating leases, finance leases, and financing obligations as of June 30, 2019:



(in thousands)	Operating Leases			Finance Leases			Financing Obligations
Years ending December 31,
2019 (excluding the six months ended June 30, 2019)	$	209,805		$	10,749		$	194,793
2020	408,009			21,481			374,715
2021	387,771			21,474			367,278
2022	384,825			21,362			367,278
2023	381,689			20,497			367,278
Thereafter	8,159,497			403,820			9,637,956
Total lease payments	9,931,596			499,383			11,309,298
Less: Amounts representing interest	(5,490,450		)	(273,694		)	(7,140,249		)
Present value of future lease payments	4,441,146			225,689			4,169,049
Less: Current portion of lease obligations	(123,797		)	(6,214		)	(49,890		)
Long-term portion of lease obligations	$	4,317,349		$	219,475		$	4,119,159