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

Leases (Tables)

9 Months Ended

Sep. 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):


	September 30,
	2019
Lease cost
Operating lease cost	$	5,040
Variable lease cost		1,811
Short-term lease cost		273
Sublease income		(582)
Total lease cost	$	6,542

Weighted average remaining lease term – operating leases		14 years
Weighted average discount rate – operating leases		8.22	%

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


	September 30,
	2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	5,212
Right-of-use assets obtained in exchange for operating lease obligations	$	1,076

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


2019, three months remaining	$	1,844
2020		7,088
2021		6,839
2022		6,971
2023		7,117
Thereafter		69,929
Total lease payments		99,788
Less: imputed interest		(42,525)
Present value of operating lease liabilities	$	57,263