Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2
Leases
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases Leases
Lease Cost
Lease cost included in our condensed consolidated statements of operations for the three months ended June 30, 2022 and 2021 consisted of the following:
Three Months Ended
June 30,		 Classification in Condensed
Consolidated Statements of Operations
2022 2021
Lease cost:
Operating lease cost $ 58,156 $ 50,185 Rent
Short-term lease cost 519 239 Rent
Variable lease cost 1,314 1,098 Rent
Finance lease cost:
Amortization of right-of-use assets 335 375 Depreciation and amortization
Interest on lease liabilities 26 47 Interest expense, net of interest income
Total lease cost $ 60,350 $ 51,944
Lease cost included in our condensed consolidated statements of operations for the six months ended June 30, 2022 and 2021 consisted of the following:
Six Months Ended
June 30,		 Classification in Condensed
Consolidated Statements of Operations
2022 2021
Lease cost:
Operating lease cost $ 112,909 $ 99,488 Rent
Short-term lease cost 875 466 Rent
Variable lease cost 2,169 2,085 Rent
Finance lease cost:
Amortization of right-of-use assets 690 739 Depreciation and amortization
Interest on lease liabilities 57 98 Interest expense, net of interest income
Total lease cost $ 116,700 $ 102,876
Operating and Finance Lease Right-of-Use Assets and Lease Liabilities
Operating and finance lease right-of-use assets and lease liabilities were as follows:
June 30, 2022 December 31, 2021 Classification on Condensed
Consolidated Balance Sheets
Lease right-of-use assets:
Operating leases $ 2,060,368 $ 1,864,528 Operating lease right-of-use assets
Finance leases (1)
1,374 2,073 Other assets
Total lease right-of-use assets $ 2,061,742 $ 1,866,601
Lease liabilities:
Current
Operating leases $ 48,249 $ 46,315 Current maturities of operating lease liabilities
Finance leases 1,051 1,374 Accrued expenses and other current liabilities
Non-Current
Operating leases 2,094,104 1,909,883 Operating lease liabilities, net of current portion
Finance leases 372 757 Other liabilities
Total lease liabilities $ 2,143,776 $ 1,958,329
(1)         Finance lease right-of-use assets were reported net of accumulated amortization of $2.6 million and $2.4 million at June 30, 2022 and December 31, 2021, respectively.
Remaining Lease Terms and Discount Rates
The weighted-average remaining lease terms and discount rates associated with our operating and finance lease liabilities at June 30, 2022 were as follows:
June 30, 2022
Weighted-average remaining lease term (1)
Operating leases 17.8 years
Finance leases 1.7 years
Weighted-average discount rate
Operating leases 7.99%
Finance leases 6.13%
(1)    The weighted-average remaining lease term associated with our operating and finance lease liabilities does not include all of the optional renewal periods available to us under our current lease arrangements. Rather, the weighted-average remaining lease term only includes periods covered by an option to extend a lease if we are reasonably certain to exercise that option.
Sale-Leaseback Transactions
During the six months ended June 30, 2022, we entered into and consummated sale-leaseback transactions involving four properties with an unrelated third party. Under these transactions, we sold four properties with a combined net book value of $150.8 million for $175.0 million, which was reduced by transaction costs of $0.8 million, for net cash proceeds of $174.2 million. The estimated fair value of the properties sold was $201.2 million. Accordingly, the aggregate sales price associated with this arrangement was increased by $26.2 million, which resulted in the recognition of a gain of $49.6 million on this transaction. This gain is included in Other operating (income) expense in our condensed consolidated statements of operations.
Supplemental Cash Flow Information
Supplemental cash flow information associated with our operating and finance leases is as follows:
Six Months Ended
June 30,
2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 96,174 $ 93,123
Operating cash flows from finance leases 57 98
Financing cash flows from finance leases 697 750
Non-cash information:
Right-of-use assets obtained in exchange for initial lease liabilities:
Operating leases 196,256 66,426
Finance leases — 1,111
Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities:
Operating leases 5,626 (5,605)
Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions 26,240 9,500
Maturities of Operating and Finance Lease Liabilities
The maturities associated with our operating and finance lease liabilities at June 30, 2022 are as follows:
Operating Leases Finance Leases Total
July 2022 through June 2023 $ 202,982 $ 1,102 $ 204,084
July 2023 through June 2024 221,616 364 221,980
July 2024 through June 2025 223,849 16 223,865
July 2025 through June 2026 228,381 — 228,381
July 2026 through June 2027 228,182 — 228,182
Thereafter 3,062,007 — 3,062,007
Total lease payments 4,167,017 1,482 4,168,499
Less: Imputed interest 2,024,664 59 2,024,723
Present value of lease liabilities $ 2,142,353 $ 1,423 $ 2,143,776
Leases Leases
Lease Cost
Lease cost included in our condensed consolidated statements of operations for the three months ended June 30, 2022 and 2021 consisted of the following:
Three Months Ended
June 30,		 Classification in Condensed
Consolidated Statements of Operations
2022 2021
Lease cost:
Operating lease cost $ 58,156 $ 50,185 Rent
Short-term lease cost 519 239 Rent
Variable lease cost 1,314 1,098 Rent
Finance lease cost:
Amortization of right-of-use assets 335 375 Depreciation and amortization
Interest on lease liabilities 26 47 Interest expense, net of interest income
Total lease cost $ 60,350 $ 51,944
Lease cost included in our condensed consolidated statements of operations for the six months ended June 30, 2022 and 2021 consisted of the following:
Six Months Ended
June 30,		 Classification in Condensed
Consolidated Statements of Operations
2022 2021
Lease cost:
Operating lease cost $ 112,909 $ 99,488 Rent
Short-term lease cost 875 466 Rent
Variable lease cost 2,169 2,085 Rent
Finance lease cost:
Amortization of right-of-use assets 690 739 Depreciation and amortization
Interest on lease liabilities 57 98 Interest expense, net of interest income
Total lease cost $ 116,700 $ 102,876
Operating and Finance Lease Right-of-Use Assets and Lease Liabilities
Operating and finance lease right-of-use assets and lease liabilities were as follows:
June 30, 2022 December 31, 2021 Classification on Condensed
Consolidated Balance Sheets
Lease right-of-use assets:
Operating leases $ 2,060,368 $ 1,864,528 Operating lease right-of-use assets
Finance leases (1)
1,374 2,073 Other assets
Total lease right-of-use assets $ 2,061,742 $ 1,866,601
Lease liabilities:
Current
Operating leases $ 48,249 $ 46,315 Current maturities of operating lease liabilities
Finance leases 1,051 1,374 Accrued expenses and other current liabilities
Non-Current
Operating leases 2,094,104 1,909,883 Operating lease liabilities, net of current portion
Finance leases 372 757 Other liabilities
Total lease liabilities $ 2,143,776 $ 1,958,329
(1)         Finance lease right-of-use assets were reported net of accumulated amortization of $2.6 million and $2.4 million at June 30, 2022 and December 31, 2021, respectively.
Remaining Lease Terms and Discount Rates
The weighted-average remaining lease terms and discount rates associated with our operating and finance lease liabilities at June 30, 2022 were as follows:
June 30, 2022
Weighted-average remaining lease term (1)
Operating leases 17.8 years
Finance leases 1.7 years
Weighted-average discount rate
Operating leases 7.99%
Finance leases 6.13%
(1)    The weighted-average remaining lease term associated with our operating and finance lease liabilities does not include all of the optional renewal periods available to us under our current lease arrangements. Rather, the weighted-average remaining lease term only includes periods covered by an option to extend a lease if we are reasonably certain to exercise that option.
Sale-Leaseback Transactions
During the six months ended June 30, 2022, we entered into and consummated sale-leaseback transactions involving four properties with an unrelated third party. Under these transactions, we sold four properties with a combined net book value of $150.8 million for $175.0 million, which was reduced by transaction costs of $0.8 million, for net cash proceeds of $174.2 million. The estimated fair value of the properties sold was $201.2 million. Accordingly, the aggregate sales price associated with this arrangement was increased by $26.2 million, which resulted in the recognition of a gain of $49.6 million on this transaction. This gain is included in Other operating (income) expense in our condensed consolidated statements of operations.
Supplemental Cash Flow Information
Supplemental cash flow information associated with our operating and finance leases is as follows:
Six Months Ended
June 30,
2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 96,174 $ 93,123
Operating cash flows from finance leases 57 98
Financing cash flows from finance leases 697 750
Non-cash information:
Right-of-use assets obtained in exchange for initial lease liabilities:
Operating leases 196,256 66,426
Finance leases — 1,111
Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities:
Operating leases 5,626 (5,605)
Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions 26,240 9,500
Maturities of Operating and Finance Lease Liabilities
The maturities associated with our operating and finance lease liabilities at June 30, 2022 are as follows:
Operating Leases Finance Leases Total
July 2022 through June 2023 $ 202,982 $ 1,102 $ 204,084
July 2023 through June 2024 221,616 364 221,980
July 2024 through June 2025 223,849 16 223,865
July 2025 through June 2026 228,381 — 228,381
July 2026 through June 2027 228,182 — 228,182
Thereafter 3,062,007 — 3,062,007
Total lease payments 4,167,017 1,482 4,168,499
Less: Imputed interest 2,024,664 59 2,024,723
Present value of lease liabilities $ 2,142,353 $ 1,423 $ 2,143,776