The ONE Group Hospitality, Inc. Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

6 Months Ended

Jun. 30, 2019

The changes due to the adoption of ASC Topic 842 were as follows (in thousands):


			ASC 842
	December 31, 2018		Adjustments		January 1, 2019
Assets
Operating lease right-of-use assets	$	—	$	41,868	$	41,868
Liabilities
Current portion of operating lease liabilities	$	—	$	3,212	$	3,212
Operating lease liability, net of current portion		—		55,679		55,679
Deferred gift card revenue and other		947		(249)		698
Deferred rent and tenant improvement allowances	$	16,774	$	(16,774)	$	—

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


	June 30,
	2019
Lease cost
Operating lease cost	$	3,372
Variable lease cost		1,297
Short-term lease cost		214
Sublease income		(474)
Total lease cost	$	4,409

Weighted average remaining lease term – operating leases		14 years
Weighted average discount rate – operating leases		8.25	%

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


	June 30,
	2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,456
Right-of-use assets obtained in exchange for operating lease obligations	$	281

As of June 30, 2019, maturities of the Company’s operating lease liabilities are as follows (in thousands):


2019, six months remaining	$	3,572
2020		6,731
2021		6,472
2022		6,593
2023		6,727
Thereafter		69,504
Total lease payments		99,599
Less: imputed interest		(42,759)
Present value of operating lease liabilities	$	56,840