Leases

12 Months Ended

Dec. 31, 2019

Leases

Leases

16. Leases

On January 1, 2019, we adopted Topic 842 using the modified retrospective approach on leases with terms extending past January 1, 2019. Results for reporting periods beginning after January 1, 2019, are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 840. As a result, we were not required to adjust our comparative period financial information for the effects of Topic 842 or make new lease disclosures for comparative prior periods before the date of adoption. See Note 2 (u. Leases) for additional information concerning our accounting policies and the election of certain practical expedients under Topic 842.

Upon adoption of Topic 842 on January 1, 2019, we recorded right-of-use assets and corresponding liabilities of $207.4 million and $204.3 million, respectively, with the impact primarily related to our leases of operating rights for theme park and waterpark properties and land. There was not a material impact to our consolidated statements of operations or statements of cash flows as a result of adoption of Topic 842.

We have operating leases for amusement parks, land, vehicles, machinery and certain equipment. Our leases have remaining lease terms of less than one year to 46 years, some of which include an option to extend the underlying leases for up to 20 years, and some of which include an option to terminate the underlying lease within one year. For our noncancelable operating leases with such options to extend, because we may determine it is not reasonably certain we will exercise the option, the options are not considered in determining the lease term, and associated potential option payments are excluded from lease payments. Our leases generally do not include restrictive financial or other covenants. Payments due under the lease contracts include fixed payments and, for certain of our leases, variable payments.

The components of lease cost for the year ended December 31, 2019 are as follows:

	Year Ended
(Amounts in thousands)	December 31, 2019
Operating lease cost	$	24,890
Short-term lease cost		6,925
Variable lease cost		5,979
Total lease cost	$	37,794

Lease costs for the year ended December 31, 2019 included minimum rental payments under operating leases recognized on a straight-line basis over the term of the lease. Rental expense for operating leases during the years ended December 31, 2018 and 2017 was $29.3 million and $16.8 million, respectively.

Other information related to leases for the year ended December 31, 2019 is as follows:

	Year Ended
(Amounts in thousands, except for lease term and discount rate)	December 31, 2019
Cash paid for amounts included in the measurement of lease liability operating cash flows	$	24,140
ROU assets obtained in exchange for lease liabilities		4,808
Weighted-average remaining lease term (in years)		19.48
Weighted-average discount rate		6.90	%

Maturities of noncancelable operating lease liabilities under Topic 842 as of December 31, 2019 are summarized in the table below.

(Amounts in thousands)	As of December 31, 2019
2020	$	23,802
2021		22,654
2022		21,641
2023		21,424
2024		19,289
Thereafter		269,055
Total	$	377,865
Less: present value discount		(179,007)
Lease liability	$	198,858

Future minimum lease payments for the long-term noncancelable operating leases under Topic 840 as of December 31, 2018 are summarized in the table below:

(Amounts in thousands)	As of December 31, 2018
2019	$	23,936
2020		23,266
2021		22,384
2022		21,626
2023		21,563
Thereafter		314,799
Total	$	427,574

We have elected the package of practical expedients for adoption of Topic 842 permitted under the transition guidance within the standard, which among other things allows us to carry forward historical lease classification, indirect costs and the original determination of whether or not a contract contained a lease.

We have elected the practical expedient to not separate a qualifying lease into its lease and non-lease components.