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LEASES

12 Months Ended

Dec. 31, 2023

NOTE 5 – LEASES

Operating lease commitments:

The following table summarizes Total lease cost for the years ended December 31, 2023, 2022, and 2021, 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,
	2023		2022		2021
Operating lease cost	$	398,537	$	367,724	$	351,296
Short-term operating lease cost		9,508		11,314		7,694
Variable operating lease cost		99,911		93,940		89,065
Sublease income		(4,805)		(5,220)		(4,571)
Total lease cost	$	503,151	$	467,758	$	443,484

The following table summarizes other lease related information for the years ended December 31, 2023 and 2022 (in thousands):


		For the Year Ended
		December 31,
		2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities:
	Operating cash flows from operating leases	$	390,907	$	366,866
Right-of-use assets obtained in exchange for new operating lease liabilities			387,810		416,615

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, 2023 (in thousands):


	December 31, 2023
	Related Parties		Non-Related Parties		Total
2024	$	4,730	$	385,437	$	390,167
2025		3,875		365,942		369,817
2026		3,260		330,350		333,610
2027		2,283		282,689		284,972
2028		2,046		230,380		232,426
Thereafter		47		1,115,755		1,115,802
Total operating lease payments		16,241		2,710,553		2,726,794
Less: present value discount		8,940		446,974		455,914
Total operating lease liabilities		7,301		2,263,579		2,270,880
Less: current portion of operating lease liabilities		4,730		384,806		389,536
Operating lease liabilities, less current portion	$	2,571	$	1,878,773	$	1,881,344

See Note 15 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 $9.6 million as of December 31, 2023. The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating leases was 9.4 years and 4.3%, respectively, as of December 31, 2023.

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.