LEASES

12 Months Ended

Dec. 31, 2022

Leases

Leases

NOTE 5 – LEASES

Operating lease commitments:

The following table summarizes Total lease cost for the years ended December 31, 2022, 2021 and 2020, 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,
	2022		2021		2020
Operating lease cost	$	367,724	$	351,296	$	336,156
Short-term operating lease cost		11,314		7,694		6,131
Variable operating lease cost		93,940		89,065		82,868
Sublease income		(5,220)		(4,571)		(4,790)
Total lease cost	$	467,758	$	443,484	$	420,365

The following table summarizes other lease related information for the years ended December 31, 2022 and 2021 (in thousands):

		For the Year Ended
		December 31,
		2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities:
	Operating cash flows from operating leases	$	366,866	$	343,749
Right-of-use assets obtained in exchange for new operating lease liabilities			416,615		257,830

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, 2022 (in thousands):

	December 31, 2022
	Related Parties		Non-Related Parties		Total
2023	$	4,779	$	356,996	$	361,775
2024		3,068		339,047		342,115
2025		2,296		301,716		304,012
2026		1,680		265,109		266,789
2027		704		216,950		217,654
Thereafter		1,314		1,006,239		1,007,553
Total operating lease payments		13,841		2,486,057		2,499,898
Less: present value discount		1,087		325,434		326,521
Total operating lease liabilities		12,754		2,160,623		2,173,377
Less: current portion of operating lease liabilities		4,779		361,942		366,721
Operating lease liabilities, less current portion	$	7,975	$	1,798,681	$	1,806,656

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 $13.2 million as of December 31, 2022.  The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating leases was 9.6 years and 4.0%, respectively, as of December 31, 2022.  

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.