|6 Months Ended
Jun. 30, 2021
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. Variable lease cost is comprised of percentage rent and common area maintenance, offset by rent concessions received as a result of COVID-19.
The Company has entered into an operating lease for a future STK restaurant in Dallas, Texas that had not commenced as of June 30, 2021. The present value of the aggregate future commitment related to this lease totals $5.2 million. The Company expects this lease, which has an initial lease term of 15 years and two five-year options, 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, 2021, maturities of the Company’s operating lease liabilities are as follows (in thousands):
For the six months remaining in 2021, the Company’s operating lease liabilities does not include future rent abatements that have been or will be negotiated with landlords.