Operating Leases (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Right-of-Use Asset and Lease Liability

The following table details the components of the operating lease right of use asset and lease liability recognized upon adoption of ASC 842 on January 1, 2019 (in thousands):



Initial measurement of operating lease right of use asset (present value of the future minimum lease payments)	$	295,063
Accrued straight-line rent liability ⁽¹⁾	(4,237		)
Amounts previously recognized in respect of business combinations:
Favorable lease intangible assets ⁽²⁾	45,596
Unfavorable lease intangible liabilities ⁽³⁾	(17,275		)
Total initial operating lease right of use asset	$	319,147

Lease liability, current	$	(87,608	)
Lease liability, non-current	(207,455		)
Total initial lease liability (present value of the future minimum lease payments)	$	(295,063	)


⁽¹⁾	Included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets as of September 30, 2018 and December 31, 2018.


⁽²⁾	Included in prepaid expenses and other current assets and other assets in the accompanying consolidated balance sheets as of September 30, 2018 and December 31, 2018.

⁽³⁾

Included in accounts payable and accrued liabilities and other liabilities in the accompanying consolidated balance sheets as of September 30, 2018 and December 31, 2018.

Schedule of Lease Expense and Supplemental Cash Flow Information

The following table details supplemental cash flow information related to operating leases for the nine months ended September 30, 2019 (in thousands):



Cash paid for amounts included in the measurement of operating lease liabilities	$	87,509
Leased assets obtained in exchange for new operating lease liabilities	$	43,616

The following table details the components of lease expense included in store operating expenses in the consolidated statements of income during the three and nine months ended September 30, 2019 (in thousands):



	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Operating lease expense	$	31,083	$	93,355
Variable lease expense ⁽¹⁾	2,860		7,114
Total operating lease expense	$	33,943	$	100,469

⁽¹⁾

Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term.

Schedule of Maturity of Lease Liabilities

The following table details the maturity of lease liabilities for all operating leases as of September 30, 2019 (in thousands):



Three months ending December 31, 2019	$	27,322
2020	94,885
2021	74,771
2022	51,458
2023	31,635
Thereafter	25,485
Total	$	305,556
Less amount of lease payments representing interest	(40,971		)
Total present value of lease payments	$	264,585