Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases recorded on the balance sheet consist of the following (in thousands):

Leases	Classification on the Balance Sheet	September 30, 2019
ASSETS
Operating lease ROU assets		$	245,344
Finance lease ROU assets	Property and equipment, net(1)	$	646,353
LIABILITIES
Current:
Operating		$	21,963
Finance	Current portion of long-term debt	$	133
Noncurrent:
Operating		$	229,297
Finance	Long-term financing obligation and debt	$	968,138

(1)

Finance lease ROU assets are recorded net of accumulated depreciation of $12.4 million as of September 30, 2019.

Other information related to lease terms and discount rates are as follows:

	September 30, 2019
Weighted Average Remaining Lease Term
Operating leases		34.1 years
Finance leases		34.0 years
Weighted Average Discount Rate
Operating leases(1)		7.2%
Finance leases		10.2%

(1)

Upon adoption of the new lease standard, discount rates used for existing operating leases were established on January 1, 2019.

The components of lease expense are as follows (in thousands):

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Operating lease cost:
Operating lease cost	$	7,674	$	22,729
Short-term and variable lease cost		1,573		5,211
Finance lease cost:
Interest expense on lease liabilities		24,696		73,931
Amortization of ROU assets		2,628		7,766
Total lease cost	$	36,571	$	109,637

Supplemental cash flow information related to leases is as follows (in thousands):

	Nine Months Ended
	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	19,382
Operating cash flows for finance leases	$	65,785

Maturities of lease liabilities are summarized as follows (in thousands):

	Operating Leases			Finance Leases
Year ending December 31,
2019 (excluding the nine months ended September 30, 2019)	$	8,462		$	22,314
2020		19,666			89,246
2021		20,786			90,463
2022		19,784			91,756
2023		19,823			92,990
Thereafter		821,046			3,506,672
Total future minimum lease payments		909,567			3,893,441
Less: amount representing interest		(658,307	)		(3,345,270	)
Present value of future minimum lease payments		251,260			548,171
Less: current lease obligations		(21,963	)		(133	)
Plus: residual values - GLPI		—			420,100
Long-term lease obligations	$	229,297		$	968,138