LEASES

6 Months Ended

Jun. 30, 2019

The Company has operating and finance leases for facilities, corporate offices, and certain equipment. The Company recognizes lease expense for these operating leases on a straight-line basis over the lease term. Leases with an initial term of one year or less are not recorded on the balance sheet. The Company's other leases have original lease terms of one to twelve years, some of which include options to extend the lease for up to twenty years, and some of which include options to terminate the leases within one year. The exercise of lease renewal options is at our sole discretion. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Upon adoption of Topic 842, the Company elected the practical expedient to not separate lease and non-lease components for all of its leases as the non-lease components are not significant to the overall lease costs.

Leases



	Classification	June 30, 2019
Assets
Operating lease assets	Operating lease assets	$	371,289
Finance lease assets	Property and equipment, net^(a)	1,167
Total leased assets		$	372,456

Liabilities
Current
Operating	Current portion of operating lease liabilities	$	23,011
Finance	Current portion of long-term debt and finance lease obligations, net	334
Noncurrent
Operating	Operating lease liabilities	356,062
Finance	Long-term debt and finance lease obligations, less current portion and deferred financing costs, net	575
Total lease liabilities		$	379,982

^(a)Finance lease assets are recorded net of accumulated amortization of $1,421 as of June 30, 2019.

Lease Cost



		Three Months Ended		Six Months Ended
	Classification	June 30, 2019		June 30, 2019
Operating lease cost ^(a)	Lease and rent expense	$	15,802	$	31,606
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	76		143
Interest on finance lease liabilities	Interest expense, net	15		26
Short term lease cost	Operating expense	162		303
Net lease cost		$	16,055	$	32,078

^(a)Includes variable lease costs, which are immaterial

Maturity of Lease Liabilities



As of June 30, 2019
	Operating Leases ^(a)			Finance Leases ^(a)			Total

2019	$	58,853		$	375		$	59,228
2020	59,956			247			60,203
2021	61,158			222			61,380
2022	62,383			105			62,488
2023	63,201			39			63,240
After 2023	289,966			—			289,966
Total lease payments	$	595,517		$	988		$	596,505
Less: Interest	(216,444		)	(79		)	(216,523		)
Present value of lease liabilities	$	379,073		$	909		$	379,982

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

The Company's future minimum lease commitments as of December 31, 2018, under Accounting Standards Codification Topic 840, predecessor to Topic 842, are as follows:



As of December 31, 2018
	Operating Leases ^(a)		Finance Leases ^(a)		Total

2018	$	58,291	$	454	$	58,745
2019	59,391		174		59,565
2020	60,575		173		60,748
2021	61,808		127		61,935
2022	63,065		—		63,065
After 2022	321,797		—		321,797
Total lease payments	$	624,927	$	928	$	625,855

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

The measurement of right-of-use assets and lease liabilities requires the Company to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, the Company utilizes an incremental borrowing rate, which represents the rate of interest that it would pay to borrow on a collateralized basis over a similar term.

Lease Term and Discount Rate



		June 30, 2019

Weighted-average remaining lease term (years)
Operating leases		9.53
Finance leases		2.06
Weighted-average discount rate
Operating leases		9.9%
Finance leases		5.5%

Other Information



	Six Months Ended
	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	29,033
Operating cash flows for finance leases	$	26
Financing cash flows for finance leases	$	250
Acquisition of operating leases through adoption of ASC 842	$	389,403

LEASES

Leases



	Classification	June 30, 2019
Assets
Operating lease assets	Operating lease assets	$	371,289
Finance lease assets	Property and equipment, net^(a)	1,167
Total leased assets		$	372,456

Liabilities
Current
Operating	Current portion of operating lease liabilities	$	23,011
Finance	Current portion of long-term debt and finance lease obligations, net	334
Noncurrent
Operating	Operating lease liabilities	356,062
Finance	Long-term debt and finance lease obligations, less current portion and deferred financing costs, net	575
Total lease liabilities		$	379,982

^(a)Finance lease assets are recorded net of accumulated amortization of $1,421 as of June 30, 2019.

Lease Cost



		Three Months Ended		Six Months Ended
	Classification	June 30, 2019		June 30, 2019
Operating lease cost ^(a)	Lease and rent expense	$	15,802	$	31,606
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	76		143
Interest on finance lease liabilities	Interest expense, net	15		26
Short term lease cost	Operating expense	162		303
Net lease cost		$	16,055	$	32,078

^(a)Includes variable lease costs, which are immaterial

Maturity of Lease Liabilities



As of June 30, 2019
	Operating Leases ^(a)			Finance Leases ^(a)			Total

2019	$	58,853		$	375		$	59,228
2020	59,956			247			60,203
2021	61,158			222			61,380
2022	62,383			105			62,488
2023	63,201			39			63,240
After 2023	289,966			—			289,966
Total lease payments	$	595,517		$	988		$	596,505
Less: Interest	(216,444		)	(79		)	(216,523		)
Present value of lease liabilities	$	379,073		$	909		$	379,982

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

The Company's future minimum lease commitments as of December 31, 2018, under Accounting Standards Codification Topic 840, predecessor to Topic 842, are as follows:



As of December 31, 2018
	Operating Leases ^(a)		Finance Leases ^(a)		Total

2018	$	58,291	$	454	$	58,745
2019	59,391		174		59,565
2020	60,575		173		60,748
2021	61,808		127		61,935
2022	63,065		—		63,065
After 2022	321,797		—		321,797
Total lease payments	$	624,927	$	928	$	625,855

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

Lease Term and Discount Rate



		June 30, 2019

Weighted-average remaining lease term (years)
Operating leases		9.53
Finance leases		2.06
Weighted-average discount rate
Operating leases		9.9%
Finance leases		5.5%

Other Information



	Six Months Ended
	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	29,033
Operating cash flows for finance leases	$	26
Financing cash flows for finance leases	$	250
Acquisition of operating leases through adoption of ASC 842	$	389,403

LEASES

Leases



	Classification	June 30, 2019
Assets
Operating lease assets	Operating lease assets	$	371,289
Finance lease assets	Property and equipment, net^(a)	1,167
Total leased assets		$	372,456

Liabilities
Current
Operating	Current portion of operating lease liabilities	$	23,011
Finance	Current portion of long-term debt and finance lease obligations, net	334
Noncurrent
Operating	Operating lease liabilities	356,062
Finance	Long-term debt and finance lease obligations, less current portion and deferred financing costs, net	575
Total lease liabilities		$	379,982

^(a)Finance lease assets are recorded net of accumulated amortization of $1,421 as of June 30, 2019.

Lease Cost



		Three Months Ended		Six Months Ended
	Classification	June 30, 2019		June 30, 2019
Operating lease cost ^(a)	Lease and rent expense	$	15,802	$	31,606
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	76		143
Interest on finance lease liabilities	Interest expense, net	15		26
Short term lease cost	Operating expense	162		303
Net lease cost		$	16,055	$	32,078

^(a)Includes variable lease costs, which are immaterial

Maturity of Lease Liabilities



As of June 30, 2019
	Operating Leases ^(a)			Finance Leases ^(a)			Total

2019	$	58,853		$	375		$	59,228
2020	59,956			247			60,203
2021	61,158			222			61,380
2022	62,383			105			62,488
2023	63,201			39			63,240
After 2023	289,966			—			289,966
Total lease payments	$	595,517		$	988		$	596,505
Less: Interest	(216,444		)	(79		)	(216,523		)
Present value of lease liabilities	$	379,073		$	909		$	379,982

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

The Company's future minimum lease commitments as of December 31, 2018, under Accounting Standards Codification Topic 840, predecessor to Topic 842, are as follows:



As of December 31, 2018
	Operating Leases ^(a)		Finance Leases ^(a)		Total

2018	$	58,291	$	454	$	58,745
2019	59,391		174		59,565
2020	60,575		173		60,748
2021	61,808		127		61,935
2022	63,065		—		63,065
After 2022	321,797		—		321,797
Total lease payments	$	624,927	$	928	$	625,855

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

Lease Term and Discount Rate



		June 30, 2019

Weighted-average remaining lease term (years)
Operating leases		9.53
Finance leases		2.06
Weighted-average discount rate
Operating leases		9.9%
Finance leases		5.5%

Other Information



	Six Months Ended
	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	29,033
Operating cash flows for finance leases	$	26
Financing cash flows for finance leases	$	250
Acquisition of operating leases through adoption of ASC 842	$	389,403

LEASES

Leases



	Classification	June 30, 2019
Assets
Operating lease assets	Operating lease assets	$	371,289
Finance lease assets	Property and equipment, net^(a)	1,167
Total leased assets		$	372,456

Liabilities
Current
Operating	Current portion of operating lease liabilities	$	23,011
Finance	Current portion of long-term debt and finance lease obligations, net	334
Noncurrent
Operating	Operating lease liabilities	356,062
Finance	Long-term debt and finance lease obligations, less current portion and deferred financing costs, net	575
Total lease liabilities		$	379,982

^(a)Finance lease assets are recorded net of accumulated amortization of $1,421 as of June 30, 2019.

Lease Cost



		Three Months Ended		Six Months Ended
	Classification	June 30, 2019		June 30, 2019
Operating lease cost ^(a)	Lease and rent expense	$	15,802	$	31,606
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization	76		143
Interest on finance lease liabilities	Interest expense, net	15		26
Short term lease cost	Operating expense	162		303
Net lease cost		$	16,055	$	32,078

^(a)Includes variable lease costs, which are immaterial

Maturity of Lease Liabilities



As of June 30, 2019
	Operating Leases ^(a)			Finance Leases ^(a)			Total

2019	$	58,853		$	375		$	59,228
2020	59,956			247			60,203
2021	61,158			222			61,380
2022	62,383			105			62,488
2023	63,201			39			63,240
After 2023	289,966			—			289,966
Total lease payments	$	595,517		$	988		$	596,505
Less: Interest	(216,444		)	(79		)	(216,523		)
Present value of lease liabilities	$	379,073		$	909		$	379,982

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

The Company's future minimum lease commitments as of December 31, 2018, under Accounting Standards Codification Topic 840, predecessor to Topic 842, are as follows:



As of December 31, 2018
	Operating Leases ^(a)		Finance Leases ^(a)		Total

2018	$	58,291	$	454	$	58,745
2019	59,391		174		59,565
2020	60,575		173		60,748
2021	61,808		127		61,935
2022	63,065		—		63,065
After 2022	321,797		—		321,797
Total lease payments	$	624,927	$	928	$	625,855

^(a) Operating and Finance lease payments exclude option to extend lease terms that are not reasonably certain of being exercised.

Lease Term and Discount Rate



		June 30, 2019

Weighted-average remaining lease term (years)
Operating leases		9.53
Finance leases		2.06
Weighted-average discount rate
Operating leases		9.9%
Finance leases		5.5%

Other Information



	Six Months Ended
	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	29,033
Operating cash flows for finance leases	$	26
Financing cash flows for finance leases	$	250
Acquisition of operating leases through adoption of ASC 842	$	389,403