Leases

6 Months Ended

Jun. 30, 2020

. Leases

The Company has operating and finance leases for various real estate and equipment. Certain of the Company’s lease agreements include rental payments based on a percentage of sales over specified contractual amounts, rental payments adjusted periodically for inflation and rental payments based on usage. The Company’s leases include options to extend the lease term one month to 60 years. As of June 30, 2020, except for the GLPI Master Lease (see Note 10), the Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

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


		Three Months Ended June 30,						Six Months Ended June 30,
	Classification on the Statement of Operations	2020		2019		2020		2019
Operating lease expense:
Operating lease expense	Operating expense	$	4,432	$	4,273	$	8,880	$	8,325
Short-term and variable lease expense	Operating expense	563		11,251		9,367		23,065
Finance lease expense:
Interest expense on lease liabilities	Interest expense, net	24,886		24,632		49,707		49,235
Amortization of ROU assets	Depreciation and amortization expense	4,069		2,628		8,158		5,139
Total lease expense		$	33,950	$	42,784	$	76,112	$	85,764

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


	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	10,411	$	13,698
Operating cash flows for financing obligation and finance leases	$	44,527	$	43,862