Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

v3.22.2.2
Leases (Tables)
9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Schedule of Balance Sheet Information Related to Leases

Balance sheet information related to leases consisted of the following for the periods presented:

 

 

 

 

 

As of

 

 

 

Classification

 

September 30, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Operating

 

Operating lease right of use assets, net

 

$

763,427

 

 

$

718,533

 

Finance

 

Property and equipment, net

 

 

14,571

 

 

 

15,204

 

Total lease assets

 

 

 

$

777,998

 

 

$

733,737

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

Operating

 

Current maturities of operating lease liability

 

$

39,336

 

 

$

37,345

 

Finance

 

Current maturities of finance lease liability

 

 

648

 

 

 

559

 

Long-term

 

 

 

 

 

 

 

 

Operating

 

Operating lease liability

 

 

750,929

 

 

 

717,552

 

Finance

 

Financing lease liability

 

 

14,955

 

 

 

15,359

 

Total lease liabilities

 

 

 

$

805,868

 

 

$

770,815

 

Summary of Components of Total Lease Cost

Components of total lease cost, net, consisted of the following for the periods presented:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease expense(1)

 

$

22,796

 

 

$

20,134

 

 

$

65,653

 

 

$

58,654

 

Finance lease expense

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of lease assets

 

 

250

 

 

 

242

 

 

$

739

 

 

 

727

 

Interest on lease liabilities

 

 

282

 

 

 

290

 

 

$

850

 

 

 

876

 

Short-term lease expense

 

 

7

 

 

 

23

 

 

$

23

 

 

 

42

 

Variable lease expense(2)

 

 

3,103

 

 

 

2,160

 

 

$

10,732

 

 

 

8,648

 

Total

 

$

26,438

 

 

$

22,849

 

 

$

77,997

 

 

$

68,947

 

(1)
Operating lease expense includes an immaterial amount of sublease income and is included in other store operating expenses and general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss).
(2)
Variable lease costs consist of property taxes, property insurance, and common area or other maintenance costs for the Company’s leases of land and buildings and is included in other store operating expenses in the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss).
Summary of Supplemental Information of Leases

The following includes supplemental information for the periods presented:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operating cash flows from operating leases

 

$

22,820

 

 

$

20,490

 

 

$

66,162

 

 

$

59,831

 

Operating cash flows from finance leases

 

$

282

 

 

$

290

 

 

$

850

 

 

$

876

 

Financing cash flows from finance leases

 

$

147

 

 

$

124

 

 

$

421

 

 

$

364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities arising from obtaining ROU assets

 

$

44,471

 

 

$

12,251

 

 

$

72,482

 

 

$

44,271

 

Finance lease liabilities arising from obtaining ROU assets

 

$

-

 

 

$

-

 

 

$

103

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average remaining operating lease term

 

 

14.22

 

 

 

14.55

 

 

 

14.22

 

 

 

14.55

 

Weighted-average remaining finance lease term

 

 

16.57

 

 

 

17.51

 

 

 

16.57

 

 

 

17.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average operating lease discount rate

 

 

7.18

%

 

 

6.45

%

 

 

7.18

%

 

 

6.45

%

Weighted-average finance lease discount rate

 

 

7.33

%

 

 

7.33

%

 

 

7.33

%

 

 

7.33

%

Schedule of Lease Obligation Maturities

As of September 30, 2022, lease obligation maturities were as follows:

 

Fiscal Year Ending:

 

Operating Leases

 

 

Finance Leases

 

2022 (remaining three months)

 

$

23,101

 

 

$

435

 

2023

 

 

92,772

 

 

 

1,755

 

2024

 

 

92,427

 

 

 

1,780

 

2025

 

 

92,217

 

 

 

1,786

 

2026

 

 

91,180

 

 

 

1,792

 

Thereafter

 

 

895,891

 

 

 

22,090

 

Total future minimum obligations

 

$

1,287,588

 

 

$

29,638

 

Less: Present value discount

 

 

(497,323

)

 

 

(14,035

)

Present value of net future minimum lease obligations

 

$

790,265

 

 

$

15,603

 

Less: current portion

 

 

(39,336

)

 

 

(648

)

Long-term obligations

 

$

750,929

 

 

$

14,955