LEASES

12 Months Ended

Dec. 31, 2021

Leases

Leases

NOTE 5 – LEASES

Operating lease commitments:

The following table summarizes Total lease cost for the years ended December 31, 2021, 2020 and 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,
	2021		2020		2019
Operating lease cost	$	351,296	$	336,156	$	320,480
Short-term operating lease cost		7,694		6,131		5,899
Variable operating lease cost		89,065		82,868		76,027
Sublease income		(4,571)		(4,790)		(4,112)
Total lease cost	$	443,484	$	420,365	$	398,294

The following table summarizes other lease related information for the years ended December 31, 2021 and 2020 (in thousands):

		For the Year Ended
		December 31,
		2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities:
	Operating cash flows from operating leases	$	343,749	$	334,994
Right-of-use assets obtained in exchange for new operating lease liabilities			257,830		322,712

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, 2021 (in thousands):

	December 31, 2021
	Related Parties		Non-Related Parties		Total
2022	$	4,682	$	337,051	$	341,733
2023		4,433		317,607		322,040
2024		2,686		287,770		290,456
2025		1,913		249,660		251,573
2026		1,298		212,939		214,237
Thereafter		605		1,049,121		1,049,726
Total operating lease payments		15,617		2,454,148		2,469,765
Less: present value discount		1,150		429,026		430,176
Total operating lease liabilities		14,467		2,025,122		2,039,589
Less: current portion of operating lease liabilities		4,682		333,150		337,832
Operating lease liabilities, less current portion	$	9,785	$	1,691,972	$	1,701,757

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 $14.9 million as of December 31, 2021.  The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating leases was 9.9 years and 3.7%, respectively, as of December 31, 2021.  

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.  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.