XML 87 R12.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Leases
12 Months Ended
Dec. 31, 2019
Leases  
Leases

NOTE 5 – LEASES

Operating lease commitments:

See Note 1 for further information concerning the Company’s adoption of Accounting Standard Codification 842 - Leases.

The following table summarizes Total lease cost for the year ended December 31, 2019, which was primarily included in “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income (in thousands):

For the Year Ended

    

December 31, 2019

Operating lease cost

$

320,480

Short-term operating lease cost

 

5,899

Variable operating lease cost

 

76,027

Sublease income

 

(4,112)

Total lease cost

$

398,294

The following table summarizes the Net rent expense amounts, prior to the adoption of Accounting Standard Codification 842 – Leases, for the years ended December 31, 2018 and 2017, which were included in “Selling, general and administrative expenses” on the accompanying Consolidated Statements of Income (in thousands):

For the Year Ended

December 31, 

    

2018

    

2017

Minimum operating lease expense

$

305,613

$

289,245

Contingent rents

 

806

 

1,049

Other lease related occupancy costs

 

14,449

 

12,478

Total rent expense

 

320,868

 

302,772

Less: sublease income

 

3,585

 

4,158

Net rent expense

$

317,283

$

298,614

The following table summarizes other lease related information for the year ended December 31, 2019:

    

For the Year Ended

December 31, 2019

Cash paid for amounts included in the measurement of operating lease liabilities:

 

  

Operating cash flows from operating leases (in thousands)

$

318,048

Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands)

$

233,584

Weighted-average remaining lease term - operating leases

 

10.4

Years

Weighted-average discount rate - operating leases

 

4.1

%

The following table identifies the future minimum lease payments under all of the Company’s operating leases for each of the next five years, and in the aggregate thereafter, and reconciles to the present value of the “Operating lease liabilities, less current portion” included in the accompanying Consolidated Balance Sheet as of December 31, 2019 (in thousands):

December 31, 2019

    

Related Parties

    

Non-Related Parties

    

Total

2020

$

4,765

$

311,285

$

316,050

2021

4,347

294,909

299,256

2022

 

3,590

 

271,256

 

274,846

2023

 

3,218

 

240,815

 

244,033

2024

 

1,472

 

211,352

 

212,824

Thereafter

 

2,801

 

1,087,409

 

1,090,210

Total operating lease payments

 

20,193

 

2,417,026

 

2,437,219

Less: present value discount

 

2,049

 

463,812

 

465,861

Total operating lease liabilities

 

18,144

 

1,953,214

 

1,971,358

Less: current portion of operating lease liabilities

 

4,765

 

311,296

 

316,061

Operating lease liabilities, less current portion

$

13,379

$

1,641,918

$

1,655,297

See Note 14 for further information concerning the Company’s related party operating leases.

The future minimum lease payments under the Company’s operating leases, in the table above, do not include potential amounts for percentage rent and other variable operating lease related costs and have not been reduced by expected future minimum sublease income under non-cancelable subleases, which was approximately $18.6 million as of December 31, 2019.  

The present value discount component of the future minimum lease payments under the Company’s operating leases, in the table above, was primarily calculated using the Company’s incremental borrowing rate based on information available at the lease commencement or modification date.  Inputs for the calculation of the Company’s incremental borrowing rate include valuations and yields of U.S. domestic investment grade corporate bonds and the applicable credit spread over comparable U.S. Treasury rates, adjusted to a collateralized basis by estimating the credit spread improvement that would result from an upgrade of one ratings classification. For leases that commenced prior to January 1, 2019, the incremental borrowing rate used was as of January 1, 2019.  When the implicit rate of a lease is available, the implicit rate is used in the calculation and not the Company’s incremental borrowing rate.