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Note 9 - Leases

12 Months Ended

Dec. 31, 2021

NOTE 9. LEASES

We have operating and finance leases primarily for four casino hotel properties, corporate offices, parking ramps, gaming and other equipment. Our leases have remaining lease terms of one year to 55 years, some of which include options to extend the leases for up to 64 years, and some of which include options to terminate the leases within one year. Certain of our lease agreements, including the Master Leases, include provisions for variable lease payments, which represent lease payments that vary due to changes in facts or circumstances occurring after the commencement date other than the passage of time. Such variable lease payments are expensed in the period in which the obligation for these payments is incurred. Variable lease expense recognized in the year ended December 31, 2021 was $20.1 million.

As part of our annual 2021 impairment test, the Company recorded impairment charges of $5.8 million for operating lease right-of-use assets related to our Las Vegas Locals segment.

The components of lease expense were as follows:

	*Year Ended December 31,*
*(In thousands)*	*2021*			*2020*
Operating lease cost	$	125,693		$	156,280
Short-term lease cost		(1,667	)		(275	)

Supplemental cash flow information related to leases was as follows:

	*Year Ended December 31,*
*(In thousands)*	*2021*		*2020*
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	129,053	$	147,560

Right-of-use assets obtained in exchange for lease obligations:
Operating leases		55,673		57,221

Supplemental balance sheet information related to leases was as follows:

	*December 31,*
*(In thousands, except lease term and discount rate)*	*2021*			*2020*
Operating Leases
Operating lease right-of-use assets, including favorable lease rates asset	$	884,241		$	928,814

Current lease liabilities (included in accrued liabilities)	$	84,884		$	90,478
Operating lease liabilities		815,974			848,825
Total operating lease liabilities	$	900,858		$	939,303

Weighted Average Remaining Lease Term
Operating leases (in years)		16.1			17.7

Weighted Average Discount Rate
Operating leases		8.6	%		8.8	%

Maturities of lease liabilities are as follows:

*(In thousands)*	*Operating Leases*
For the period ending December 31,
2022	$	154,314
2023		152,081
2024		121,358
2025		121,434
2026		121,588
Thereafter		1,044,046
Total lease payments		1,714,821
Less imputed interest		(813,963	)
Less current portion (included in accrued liabilities)		(84,884	)
Long-term portion of operating lease liabilities	$	815,974

Future minimum rental income, which is primarily related to retail and restaurant facilities located within our properties are as follows:

*(In thousands)*	*Minimum Rental Income*
*For the Year Ended December 31,*
2022	$	3,070
2023		2,865
2024		2,322
2025		1,373
2026		166
Thereafter		—
Total	$	9,796