Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2.2
Leases
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases Leases
Lease Cost
Lease cost included in our condensed consolidated statements of operations for the three months ended September 30, 2022 and 2021 consisted of the following:
Three Months Ended
September 30,		 Classification in Condensed
Consolidated Statements of Operations
2022 2021
Lease cost:
Operating lease cost $ 60,761 $ 50,987 Rent
Short-term lease cost 610 281 Rent
Variable lease cost 1,842 1,245 Rent
Finance lease cost:
Amortization of right-of-use assets 336 380 Depreciation and amortization
Interest on lease liabilities 22 42 Interest expense, net of interest income
Total lease cost $ 63,571 $ 52,935
Lease cost included in our condensed consolidated statements of operations for the nine months ended September 30, 2022 and 2021 consisted of the following:
Nine Months Ended
September 30,		 Classification in Condensed
Consolidated Statements of Operations
2022 2021
Lease cost:
Operating lease cost $ 173,670 $ 150,475 Rent
Short-term lease cost 1,485 747 Rent
Variable lease cost 4,011 3,330 Rent
Finance lease cost:
Amortization of right-of-use assets 1,026 1,119 Depreciation and amortization
Interest on lease liabilities 79 140 Interest expense, net of interest income
Total lease cost $ 180,271 $ 155,811
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:
September 30, 2022 December 31, 2021 Classification on Condensed
Consolidated Balance Sheets
Lease right-of-use assets:
Operating leases $ 2,148,828 $ 1,864,528 Operating lease right-of-use assets
Finance leases (1)
1,180 2,073 Other assets
Total lease right-of-use assets $ 2,150,008 $ 1,866,601
Lease liabilities:
Current
Operating leases $ 50,746 $ 46,315 Current maturities of operating lease liabilities
Finance leases 921 1,374 Accrued expenses and other current liabilities
Non-Current
Operating leases 2,206,753 1,909,883 Operating lease liabilities, net of current portion
Finance leases 298 757 Other liabilities
Total lease liabilities $ 2,258,718 $ 1,958,329
(1)     Finance lease right-of-use assets were reported net of accumulated amortization of $2.8 million and $2.4 million at September 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 September 30, 2022 were as follows:
September 30, 2022
Weighted-average remaining lease term (1)
Operating leases 18.0 years
Finance leases 1.4 years
Weighted-average discount rate
Operating leases 8.23%
Finance leases 6.06%
(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 nine months ended September 30, 2022, we entered into and consummated sale-leaseback transactions involving nine properties with two unrelated third parties. Under these transactions, we sold nine properties with a combined net book value of $285.6 million for $375.0 million, which was reduced by transaction costs of $1.5 million, for net cash proceeds of $373.5 million. The estimated fair value of the properties sold was $385.1 million. Accordingly, the aggregate sales price associated with these arrangements was increased by $10.1 million, which resulted in the recognition of a gain of $98.0 million on these transactions. 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:
Nine Months Ended
September 30,
2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 146,366 $ 137,942
Operating cash flows from finance leases 79 140
Financing cash flows from finance leases 1,043 1,133
Non-cash information:
Right-of-use assets obtained in exchange for initial lease liabilities:
Operating leases 316,071 194,021
Finance leases 142 1,150
Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities:
Operating leases 7,366 (5,357)
Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions 10,090 9,500
Maturities of Operating and Finance Lease Liabilities
The maturities associated with our operating and finance lease liabilities at September 30, 2022 are as follows:
Operating Leases Finance Leases Total
October 2022 through September 2023 $ 220,452 $ 964 $ 221,416
October 2023 through September 2024 235,766 262 236,028
October 2024 through September 2025 238,287 43 238,330
October 2025 through September 2026 241,690 2 241,692
October 2026 through September 2027 242,275 1 242,276
Thereafter 3,316,891 — 3,316,891
Total lease payments 4,495,361 1,272 4,496,633
Less: Imputed interest 2,237,862 53 2,237,915
Present value of lease liabilities $ 2,257,499 $ 1,219 $ 2,258,718
Leases Leases
Lease Cost
Lease cost included in our condensed consolidated statements of operations for the three months ended September 30, 2022 and 2021 consisted of the following:
Three Months Ended
September 30,		 Classification in Condensed
Consolidated Statements of Operations
2022 2021
Lease cost:
Operating lease cost $ 60,761 $ 50,987 Rent
Short-term lease cost 610 281 Rent
Variable lease cost 1,842 1,245 Rent
Finance lease cost:
Amortization of right-of-use assets 336 380 Depreciation and amortization
Interest on lease liabilities 22 42 Interest expense, net of interest income
Total lease cost $ 63,571 $ 52,935
Lease cost included in our condensed consolidated statements of operations for the nine months ended September 30, 2022 and 2021 consisted of the following:
Nine Months Ended
September 30,		 Classification in Condensed
Consolidated Statements of Operations
2022 2021
Lease cost:
Operating lease cost $ 173,670 $ 150,475 Rent
Short-term lease cost 1,485 747 Rent
Variable lease cost 4,011 3,330 Rent
Finance lease cost:
Amortization of right-of-use assets 1,026 1,119 Depreciation and amortization
Interest on lease liabilities 79 140 Interest expense, net of interest income
Total lease cost $ 180,271 $ 155,811
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:
September 30, 2022 December 31, 2021 Classification on Condensed
Consolidated Balance Sheets
Lease right-of-use assets:
Operating leases $ 2,148,828 $ 1,864,528 Operating lease right-of-use assets
Finance leases (1)
1,180 2,073 Other assets
Total lease right-of-use assets $ 2,150,008 $ 1,866,601
Lease liabilities:
Current
Operating leases $ 50,746 $ 46,315 Current maturities of operating lease liabilities
Finance leases 921 1,374 Accrued expenses and other current liabilities
Non-Current
Operating leases 2,206,753 1,909,883 Operating lease liabilities, net of current portion
Finance leases 298 757 Other liabilities
Total lease liabilities $ 2,258,718 $ 1,958,329
(1)     Finance lease right-of-use assets were reported net of accumulated amortization of $2.8 million and $2.4 million at September 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 September 30, 2022 were as follows:
September 30, 2022
Weighted-average remaining lease term (1)
Operating leases 18.0 years
Finance leases 1.4 years
Weighted-average discount rate
Operating leases 8.23%
Finance leases 6.06%
(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 nine months ended September 30, 2022, we entered into and consummated sale-leaseback transactions involving nine properties with two unrelated third parties. Under these transactions, we sold nine properties with a combined net book value of $285.6 million for $375.0 million, which was reduced by transaction costs of $1.5 million, for net cash proceeds of $373.5 million. The estimated fair value of the properties sold was $385.1 million. Accordingly, the aggregate sales price associated with these arrangements was increased by $10.1 million, which resulted in the recognition of a gain of $98.0 million on these transactions. 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:
Nine Months Ended
September 30,
2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 146,366 $ 137,942
Operating cash flows from finance leases 79 140
Financing cash flows from finance leases 1,043 1,133
Non-cash information:
Right-of-use assets obtained in exchange for initial lease liabilities:
Operating leases 316,071 194,021
Finance leases 142 1,150
Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities:
Operating leases 7,366 (5,357)
Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions 10,090 9,500
Maturities of Operating and Finance Lease Liabilities
The maturities associated with our operating and finance lease liabilities at September 30, 2022 are as follows:
Operating Leases Finance Leases Total
October 2022 through September 2023 $ 220,452 $ 964 $ 221,416
October 2023 through September 2024 235,766 262 236,028
October 2024 through September 2025 238,287 43 238,330
October 2025 through September 2026 241,690 2 241,692
October 2026 through September 2027 242,275 1 242,276
Thereafter 3,316,891 — 3,316,891
Total lease payments 4,495,361 1,272 4,496,633
Less: Imputed interest 2,237,862 53 2,237,915
Present value of lease liabilities $ 2,257,499 $ 1,219 $ 2,258,718