Operating Leases (Tables)

12 Months Ended

Dec. 31, 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 sheet as of December 31, 2018.


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

⁽³⁾

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

Schedule of Lease Expense and Supplemental Cash Flow Information

The following table details the components of lease expense included in store operating expenses in the consolidated statements of income during the year ended December 31, 2019 (in thousands):



Operating lease expense ⁽¹⁾	$	124,082
Variable lease expense ⁽²⁾	7,775
Total operating lease expense	$	131,857


⁽¹⁾	Includes $0.8 million of net amortization related to the favorable/unfavorable lease intangible assets/liabilities that were reclassified to the operating lease right of use asset in the accompanying consolidated balance sheets upon adoption of ASC 842 on January 1, 2019.

⁽²⁾

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.

The following table details supplemental cash flow information related to operating leases for the year ended December 31, 2019 (in thousands):



Cash paid for amounts included in the measurement of operating lease liabilities	$	116,448
Leased assets obtained in exchange for new operating lease liabilities	$	71,117

Schedule of Maturity of Lease Liabilities

The following table details the maturity of lease liabilities for all operating leases as of December 31, 2019 (in thousands):



2020	$	105,118
2021	84,541
2022	60,690
2023	40,514
2024	18,760
Thereafter	15,477
Total	$	325,100
Less amount of lease payments representing interest	(45,130		)
Total present value of lease payments	$	279,970