|6 Months Ended|
Jun. 30, 2020
Note 10 – Leases
The components of lease expense for the period were as follows (in thousands):
Due to the negative effects of COVID-19, the Company implemented measures to reduce its costs, including negotiations with landlords regarding rent concessions. The Company is in ongoing discussions with landlords regarding rent obligations, including deferrals, abatements, and/or restructuring of rent. As the rent concessions received and currently being contemplated do not result in a significant increase in cash payments, the Company has elected to account for these concessions as a variable lease payment in accordance with ASC Topic 842. The Company’s right-of-use assets and operating lease liabilities have not been remeasured for lease concessions received.
The Company subleases one restaurant space and in 2019 subleased office space where it did not use the entire space for its operations. For the three months ended June 30, 2020 and 2019, sublease income was $0.2 million and $0.3 million, respectively, of which $0.2 million and $0.2 million, respectively, was from a related party, Bagatelle NY. For the six months ended June 30, 2020 and 2019, sublease income was $0.3 million and $0.5 million, respectively, of which $0.3 million and $0.3 million, respectively, was from Bagatelle NY. Refer to Note 7 for details on transactions with Bagatelle NY.
The Company has entered into an operating lease for one future restaurant in Bellevue, Washington that had not commenced as of June 30, 2020. The aggregate future commitment related to this lease totals $4.8 million. The Company expects this lease, which will have a lease term of 11 years, to commence within the next twelve months.
Supplemental cash flow information related to leases for the period was as follows (in thousands):
As of June 30, 2020, maturities of the Company’s operating lease liabilities are as follows (in thousands):
For the six months remaining in 2020, the Company’s operating lease liabilities does not include future rent abatements that have been or will be negotiated with landlords.
No definition available.
The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef