Annual report pursuant to Section 13 and 15(d)

Leases

v3.20.4
Leases
12 Months Ended
Dec. 31, 2020
Leases  
Leases

Note 13 – Leases

The Company subleases portions of its office and restaurant space where it does not use the entire space for its operations. For the year ended December 31, 2020 and 2019, sublease income was $0.5 million and $0.7 million, respectively, of which $0.5 million was from related party, Bagatelle NY. Refer to Note 9 and Note 10 for details on transactions with this related party.

The components of lease expense for the period were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

 

 

2020

 

2019

 

Lease cost

 

 

 

 

 

 

 

Operating lease cost

 

$

11,613

 

$

8,494

 

Variable lease cost

 

 

2,001

 

 

3,185

 

Short-term lease cost

 

 

479

 

 

446

 

Sublease income

 

 

(493)

 

 

(696)

 

Total lease cost

 

$

13,600

 

$

11,429

 

 

 

 

 

 

 

 

 

Weighted average remaining lease term – operating leases

 

 

12 years

 

 

13 years

 

Weighted average discount rate – operating leases

 

 

8.09

%

 

8.48

%

 

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. Variable lease cost is comprised of percentage rent and common area maintenance, offset by rent concessions received as a result of COVID-19.

 

Supplemental cash flow information related to leases for the period was as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

 

2020

 

2019

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

8,491

 

$

8,368

Right-of-use assets obtained in exchange for operating lease obligations

 

$

4,968

 

$

43,474

 

As of December 31, 2020, maturities of the Company’s operating lease liabilities are as follows (in thousands):

 

 

 

 

 

2021

 

$

13,276

2022

 

 

13,229

2023

 

 

13,531

2024

 

 

12,927

2025

 

 

11,893

Thereafter

 

 

112,867

Total lease payments

 

 

177,723

Less: imputed interest

 

 

(74,337)

Present value of operating lease liabilities

 

$

103,386