Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

The table below summarizes our current ground lease arrangements as of June 30, 2020:



Property ⁽¹⁾	Year of Current Expiration	Year of Final Expiration ⁽²⁾
1185 Avenue of the Americas	2043	2043
625 Madison Avenue	2022	2054
420 Lexington Avenue	2050	2080
711 Third Avenue ⁽³⁾	2033	2083
461 Fifth Avenue ⁽⁴⁾	2027	2084
1055 Washington Blvd, Stamford, Connecticut	2090	2090
1080 Amsterdam Avenue ⁽⁵⁾	2111	2111
30 East 40th Street ⁽⁵⁾	2114	2114
126 Nassau Street ⁽⁴⁾	2119	2119
Other	Various	Various


(1)	All leases are classified as operating leases unless otherwise specified.


(2)	Reflects exercise of all available renewal options.


(3)	The Company owns 50% of the fee interest.


(4)	The Company has an option to purchase the ground lease for a fixed price on a specific date. The lease is classified as a financing lease.

(5)

A portion of the lease is classified as a financing lease.

Finance lease, liability, maturity

The following is a schedule of future minimum lease payments as evaluated in accordance with ASC 842 for our financing leases and operating leases with initial terms in excess of one year as of June 30, 2020 (in thousands):



	Financing leases			Operating leases ⁽¹⁾
Remaining 2020	$	3,904		$	14,721
2021	34,885			29,452
2022	5,881			27,148
2023	5,927			24,844
2024	5,999			24,863
2025	6,266			24,962
Thereafter	1,018,013			618,326
Total minimum lease payments	$	1,080,875		$	764,316
Amount representing interest	(906,143		)
Amount discounted using incremental borrowing rate				(403,095		)
Lease liabilities	$	174,732		$	361,221


(1)	As of June 30, 2020, the total minimum sublease rentals to be received in the future under non-cancelable subleases is $1.6 billion.

Schedule of future minimum rental payments for operating leases



	Financing leases			Operating leases ⁽¹⁾
Remaining 2020	$	3,904		$	14,721
2021	34,885			29,452
2022	5,881			27,148
2023	5,927			24,844
2024	5,999			24,863
2025	6,266			24,962
Thereafter	1,018,013			618,326
Total minimum lease payments	$	1,080,875		$	764,316
Amount representing interest	(906,143		)
Amount discounted using incremental borrowing rate				(403,095		)
Lease liabilities	$	174,732		$	361,221


(1)	As of June 30, 2020, the total minimum sublease rentals to be received in the future under non-cancelable subleases is $1.6 billion.

Lease, cost

The following table provides lease cost information for the Company's operating and financing leases for the three and six months ended June 30, 2020 and 2019 (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Operating Lease Costs
Operating lease costs before capitalized operating lease costs	$	8,622		$	8,305		$	16,735		$	16,603
Operating lease costs capitalized	(791		)	(7		)	(1,537		)	(7		)
Operating lease costs, net ⁽¹⁾	7,831			8,298			15,198			16,596

Financing Lease Costs
Interest on financing leases before capitalized interest	2,149			808			3,812			1,612
Interest on financing leases capitalized	(1,043		)	—			(1,790		)	—
Interest on financing leases, net⁽²⁾	1,106			808			2,022			1,612
Amortization of right-of-use assets ⁽³⁾	305			305			610			610
Financing lease costs, net	1,411			1,113			2,632			2,222


(1)	Operating lease costs are calculated on a straight-line basis over the remaining lease terms. This amount is included in operating lease rent in our consolidated statements of operations.


(2)	These amounts are included in interest expense, net of interest income in our consolidated statements of operations.

(3)

These amounts are included in depreciation and amortization in our consolidated statements of operations.