Leases

3 Months Ended

Mar. 31, 2020

NOTE 5 – LEASES

The Company has operating leases for facilities and equipment which have remaining terms ranging from 1 to 14 years. The leases may include options to extend the lease periods for up to 5 years at rates approximating market rates and/or options to terminate the leases within 1 year. The leases may include a residual value guarantee or a responsibility to return the property to its original state of use. A limited number of leases contain provisions that provide for rental increases based on consumer price indices. The change in rent expense resulting from changes in these indices are included within variable rent.

Operating leases consisted of the following at March 31, 2020 and December 31, 2019:

	March 31, 2020			December 31, 2019
Real estate facilities	$	178,227		$	165,752
Office equipment		2,269			1,631
Other		863			892
		181,359			168,275
Amortization of right-of-use assets		(36,015	)		(34,310	)
Total operating lease right-of-use assets	$	145,344		$	133,965

Rent expense is recognized on a straight-line basis over the lease term. Rent expense consists of the following:

	Three Months Ended
	March 31, 2020		March 31, 2019
Operating lease costs	$	9,326	$	8,896
Short-term lease costs		431		681
Variable lease costs		1		4
Total rent expense	$	9,758	$	9,581

Future minimum lease payments under non-cancellable leases as of March 31, 2020 were as follows:

March 31, 2021	$	39,815
March 31, 2022		39,877
March 31, 2023		33,163
March 30, 2024		20,008
March 30, 2025		22,838
Thereafter		193,009
Total future minimum lease payments		348,710
Less: Interest		(186,387	)
Total operating lease liabilities	$	162,323

Operating lease liabilities - current	$	33,333
Operating lease liabilities - non-current		128,990
Total operating lease liabilities	$	162,323

Other information related to operating leases is as follows:

	March 31, 2020			March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,526		$	9,389
Right-of-use assets obtained in exchange for new operating lease liabilities	$	21,098		$	2,159
Weighted-average remaining lease term - operating leases		6.0			5.1
Weighted-average discount rate - operating leases		3.6	%		3.8	%

At March 31, 2020, the Company had additional operating leases that have not yet commenced with a potential lease liability of $129.8 million. Such operating leases are anticipated to commence, where we take possession of the property and commence any required buildout, over the next three years, with lease terms of 5 years to 17 years.