Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.1
Leases
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Leases Leases
Lease Cost
Lease cost included in our condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022 consisted of the following:
Three Months Ended
March 31,		 Classification in Condensed
Consolidated Statements of Operations
2023 2022
Lease cost:
Operating lease cost $ 63,785 $ 54,753 Rent
Short-term lease cost 386 356 Rent
Variable lease cost 2,366 855 Rent
Finance lease cost:
Amortization of right-of-use assets 251 355 Depreciation and amortization
Interest on lease liabilities 19 32 Interest expense, net of interest income
Interest on financing obligations 579 — Interest expense, net of interest income
Total lease cost $ 67,386 $ 56,351
Operating and Finance Lease Right-of-Use Assets and Lease-Related Liabilities
Operating and finance lease right-of-use assets and lease-related liabilities were as follows:
March 31, 2023 December 31, 2022 Classification on Condensed
Consolidated Balance Sheets
Lease right-of-use assets:
Operating leases $ 2,135,203 $ 2,116,761 Operating lease right-of-use assets
Finance leases (1)
996 1,083 Other assets
Total lease right-of-use assets $ 2,136,199 $ 2,117,844
Lease liabilities:
Current
Operating leases $ 52,786 $ 51,892 Current maturities of operating lease liabilities
Finance leases 682 796 Accrued expenses and other current liabilities
Non-Current
Operating leases 2,189,470 2,162,424 Operating lease liabilities, net of current portion
Finance leases 336 312 Other liabilities
Financing obligations 21,580 21,557 Other liabilities
Total lease-related liabilities $ 2,264,854 $ 2,236,981
(1)     Finance lease right-of-use assets were reported net of accumulated amortization of $2.0 million and $1.8 million at March 31, 2023 and December 31, 2022, respectively.
Remaining Lease Terms and Discount Rates
The weighted-average remaining lease terms and discount rates associated with our lease-related liabilities at March 31, 2023 were as follows:
March 31, 2023
Weighted-average remaining lease term (1)
Operating leases 17.6 years
Finance leases 2.4 years
Financing obligations 24.4 years
Weighted-average discount rate
Operating leases 8.32%
Finance leases 6.46%
Financing obligations 10.84%
(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 Transaction
During the three months ended March 31, 2023, we entered into and consummated a sale-leaseback transaction with an unrelated third party. Under this transaction, we sold one property with a combined net book value of $26.0 million for $33.0 million, which was reduced by transaction costs of $0.3 million, for net cash proceeds of $32.7 million. The estimated fair value of the property sold was $33.0 million, which resulted in the recognition of a gain of $6.7 million on this transaction. This gain is included in Other operating expense (income) in our condensed consolidated statement of operations.
Supplemental Cash Flow Information
Supplemental cash flow information associated with our operating and finance leases is as follows:
Three Months Ended
March 31,
2023 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 53,662 $ 48,022
Operating cash flows from finance leases 19 32
Operating cash flows from financing obligations 556 —
Financing cash flows from finance leases 244 358
Non-cash information:
Right-of-use assets obtained in exchange for initial lease liabilities:
Operating leases 17,615 67,940
Finance leases 163 —
Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities:
Operating leases 18,869 2,882
Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions — 15,600
Non-cash increase in financing obligations as a result of interest accretion 23 —
Maturities of Operating and Finance Lease Liabilities
The maturities associated with our operating and finance lease liabilities at March 31, 2023 are as follows:
Operating Leases Finance Leases Financing Obligations Total
April 2023 through March 2024 $ 229,155 $ 756 $ 2,243 $ 232,154
April 2024 through March 2025 237,017 245 2,277 239,539
April 2025 through March 2026 240,974 109 2,311 243,394
April 2026 through March 2027 242,177 2 2,346 244,525
April 2027 through March 2028 244,282 — 2,381 246,663
Thereafter 3,240,075 — 54,266 3,294,341
Total lease payments 4,433,680 1,112 65,824 4,500,616
Less: Imputed interest 2,191,424 94 44,244 2,235,762
Present value of lease liabilities $ 2,242,256 $ 1,018 $ 21,580 $ 2,264,854
Leases Leases
Lease Cost
Lease cost included in our condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022 consisted of the following:
Three Months Ended
March 31,		 Classification in Condensed
Consolidated Statements of Operations
2023 2022
Lease cost:
Operating lease cost $ 63,785 $ 54,753 Rent
Short-term lease cost 386 356 Rent
Variable lease cost 2,366 855 Rent
Finance lease cost:
Amortization of right-of-use assets 251 355 Depreciation and amortization
Interest on lease liabilities 19 32 Interest expense, net of interest income
Interest on financing obligations 579 — Interest expense, net of interest income
Total lease cost $ 67,386 $ 56,351
Operating and Finance Lease Right-of-Use Assets and Lease-Related Liabilities
Operating and finance lease right-of-use assets and lease-related liabilities were as follows:
March 31, 2023 December 31, 2022 Classification on Condensed
Consolidated Balance Sheets
Lease right-of-use assets:
Operating leases $ 2,135,203 $ 2,116,761 Operating lease right-of-use assets
Finance leases (1)
996 1,083 Other assets
Total lease right-of-use assets $ 2,136,199 $ 2,117,844
Lease liabilities:
Current
Operating leases $ 52,786 $ 51,892 Current maturities of operating lease liabilities
Finance leases 682 796 Accrued expenses and other current liabilities
Non-Current
Operating leases 2,189,470 2,162,424 Operating lease liabilities, net of current portion
Finance leases 336 312 Other liabilities
Financing obligations 21,580 21,557 Other liabilities
Total lease-related liabilities $ 2,264,854 $ 2,236,981
(1)     Finance lease right-of-use assets were reported net of accumulated amortization of $2.0 million and $1.8 million at March 31, 2023 and December 31, 2022, respectively.
Remaining Lease Terms and Discount Rates
The weighted-average remaining lease terms and discount rates associated with our lease-related liabilities at March 31, 2023 were as follows:
March 31, 2023
Weighted-average remaining lease term (1)
Operating leases 17.6 years
Finance leases 2.4 years
Financing obligations 24.4 years
Weighted-average discount rate
Operating leases 8.32%
Finance leases 6.46%
Financing obligations 10.84%
(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 Transaction
During the three months ended March 31, 2023, we entered into and consummated a sale-leaseback transaction with an unrelated third party. Under this transaction, we sold one property with a combined net book value of $26.0 million for $33.0 million, which was reduced by transaction costs of $0.3 million, for net cash proceeds of $32.7 million. The estimated fair value of the property sold was $33.0 million, which resulted in the recognition of a gain of $6.7 million on this transaction. This gain is included in Other operating expense (income) in our condensed consolidated statement of operations.
Supplemental Cash Flow Information
Supplemental cash flow information associated with our operating and finance leases is as follows:
Three Months Ended
March 31,
2023 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 53,662 $ 48,022
Operating cash flows from finance leases 19 32
Operating cash flows from financing obligations 556 —
Financing cash flows from finance leases 244 358
Non-cash information:
Right-of-use assets obtained in exchange for initial lease liabilities:
Operating leases 17,615 67,940
Finance leases 163 —
Right-of-use asset adjustments recognized as a result of the remeasurement of existing lease liabilities:
Operating leases 18,869 2,882
Non-cash increase in operating lease right-of-use assets associated with below-market sale-leaseback transactions — 15,600
Non-cash increase in financing obligations as a result of interest accretion 23 —
Maturities of Operating and Finance Lease Liabilities
The maturities associated with our operating and finance lease liabilities at March 31, 2023 are as follows:
Operating Leases Finance Leases Financing Obligations Total
April 2023 through March 2024 $ 229,155 $ 756 $ 2,243 $ 232,154
April 2024 through March 2025 237,017 245 2,277 239,539
April 2025 through March 2026 240,974 109 2,311 243,394
April 2026 through March 2027 242,177 2 2,346 244,525
April 2027 through March 2028 244,282 — 2,381 246,663
Thereafter 3,240,075 — 54,266 3,294,341
Total lease payments 4,433,680 1,112 65,824 4,500,616
Less: Imputed interest 2,191,424 94 44,244 2,235,762
Present value of lease liabilities $ 2,242,256 $ 1,018 $ 21,580 $ 2,264,854