Leases

3 Months Ended

Mar. 31, 2021

NOTE 5 – LEASES

The Company has operating leases for facilities and equipment which have remaining terms ranging from 1 to 13 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, 2021:

	March 31, 2021			December 31, 2020
Real estate facilities	$	156,641		$	157,010
Office equipment		1,866			1,864
Other		604			580
		159,111			159,454
Amortization of right-of-use assets		(39,861	)		(32,322	)
Total operating lease right-of-use assets	$	119,250		$	127,132

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

	Three Months Ended
	March 31, 2021		March 31, 2020
Operating lease costs	$	8,793	$	9,326
Short-term lease costs		131		431
Variable lease costs		10		1
Total rent expense	$	8,934	$	9,758

Future minimum lease payments under non-cancellable leases as of March 31, 2021 were as follows:

March 31, 2022	$	32,630
March 31, 2023		33,971
March 30, 2024		20,613
March 30, 2025		15,753
March 30, 2026		13,255
Thereafter		34,066
Total future minimum lease payments		150,288
Less: Interest		(14,856	)
Total operating lease liabilities	$	135,432

Operating lease liabilities - current	$	28,881
Operating lease liabilities - non-current		106,551
Total operating lease liabilities	$	135,432

Other information related to operating leases is as follows:

	March 31, 2021			March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,957		$	9,526
Right-of-use assets obtained in exchange for operating lease liabilities	$	142		$	21,098
Weighted-average remaining lease term - operating leases		5.8			6.0
Weighted-average discount rate - operating leases		3.4	%		3.6	%

At March 31, 2021, the Company had an additional operating lease that had not yet commenced with a potential lease liability of $115.3 million. The operating lease has a term of 18 years and is anticipated to commence on March 1, 2022, when the Company takes possession of the property upon completion of buildouts.