LEASES

12 Months Ended

Dec. 31, 2024

Leases

Leases

NOTE 7 – LEASES

Operating Lease Commitments:

The following table summarizes Total lease cost for the years ended December 31, 2024, 2023, and 2022, 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,
	2024		2023		2022
Operating lease cost	$	425,481	$	398,537	$	367,724
Short-term operating lease cost		8,206		9,508		11,314
Variable operating lease cost		114,634		99,911		93,940
Sublease income		(4,826)		(4,805)		(5,220)
Total lease cost	$	543,495	$	503,151	$	467,758

The following table summarizes other lease related information for the years ended December 31, 2024 and 2023 (in thousands):

		For the Year Ended
		December 31,
		2024		2023
Cash paid for amounts included in the measurement of operating lease liabilities:
	Operating cash flows from operating leases	$	416,714	$	390,907
Right-of-use assets obtained in exchange for new operating lease liabilities			423,196		387,810

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, 2024 (in thousands):

	December 31, 2024
	Related Parties		Non-Related Parties		Total
2025	$	4,647	$	412,876	$	417,523
2026		3,926		388,759		392,685
2027		2,949		341,518		344,467
2028		2,704		290,244		292,948
2029		641		249,186		249,827
Thereafter		—		1,197,073		1,197,073
Total operating lease payments		14,867		2,879,656		2,894,523
Less: present value discount		1,183		493,422		494,605
Total operating lease liabilities		13,684		2,386,234		2,399,918
Less: current portion of operating lease liabilities		4,647		414,566		419,213
Operating lease liabilities, less current portion	$	9,037	$	1,971,668	$	1,980,705

See Note 17 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 $8.6 million as of December 31, 2024.  The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating leases was 9.2 years and 4.5%, respectively, as of December 31, 2024.  

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.