- How much total interest expense does Sonic expect to recognize over the remaining life of its finance leases that are outstanding on December 31, 2019? (in $ thousands)
Twelve Months Ended December 31, 2019 Other Information (In thousands) Cash paid for amounts included in the measurement of lease liabilities Financing cash flows for finance leases 5,181 Operating cash flows for finance leases 5,097 Operating cash flows for operating leases 69,834 Right-of-use assets obtained in exchange for lease liabilities Finance leases 10,926 Operating leases (1) 22,055 (1) Includes the impact of reclassification of right-of-use assets from operating leases to finance leases due to remeasurement. December 31, 2019 Other Information Weighted-average remaining lease term (in years) Finance Icases 11.8 Operating leases 9.5 Weighted-average discount rate Finance Icases 18.74% Operating leases 6.69 % Undiscounted Lease Cash Flows Under ASC 842 as of December 31, 2019 Finance Operating Receipts from Subleases Year Ending December 31, (In thousands) 2020 $ 6,608 S 64,577 $ (10,795) 2021 6,760 58,093 (8,078) 2022 6,768 51,337 (6,103) 2023 6.829 49,689 (6,103) 2024 6.947 44.012 (5,042) Thereafter 43,787 215,240 (4,270) Total 77,699 S 482,948 (40,391) Less: Present value discount (39,822) (135,465) Lease liabilities 37,877 S 347,48316. Leases The cumulative effect of the adoption of ASC 842, "Leases," on our unaudited consolidated balance sheet as of January 1, 2019 was the recognition of right-of-use assets of approximately $406.9 million (including approximately $18.9 million related to capital leases that was reclassified from property and equipment, net in the accompanying consolidated balance sheet as of December 31, 2018) and related lease liabilities of approximately $419.5 million (including approximately $20.6 million related to capital leases that was reclassified from current maturities of long-term debt and long-term debt in the accompanying consolidated balance sheet as of December 31, 2018). Upon adoption of ASC 842, "Leases," we evaluated right-of-use assets for impairment and determined that approximately $ 10.5 million of impairment was required related to newly recognized right-of-use assets that would have been impaired in previous periods. This impairment of the right-of-use assets as of January 1, 2019 was recorded, net of related income tax effects, as a $7.4 million reduction of beginning retained earnings. The adoption of ASC 842, "Leases," did not have a material effect on our consolidated statements of income or our consolidated statements of cash flows. 31, 2019 was as follows: The effect of the adoption of ASC 842, "Leases," on our unaudited consolidated balance sheet as of January 1, 2019 and our consolidated balance sheet as of December Adoption of ASC 842 as of New As Reported January 1. 2019 Leases Modifications (1) Amortization December 31. 2019 (In thousands) Right-of-Use Assets Finance Leases 18,948 121 18,835 (3,213) 34.691 Operating Leases 387,970 10,081 (15,205) (45,004) 337.842 Total Right-of-Use Assets 406,918 10.202 3.630 (48,217) 372,533 Current Lease Liabilities Finance Leases 728 12 4,513 (3,689) 1,564 Operating Leases 48,104 1.560 (2,650) (3,682) 43,332 Total Current Lease Liabilities 18,832 1,572 1,863 (7,371) S 14,896 Long-Term Lease Liabilities Finance Leases S 19.829 109 17.867 S (1,492) S 36.313 Operating Leases 350,818 8,52 (12,400) (42,788) 304,151 Total Long-Term Lease Liabilities 370,647 8,630 5.467 (44,280) 340.464 (1) Includes the impact of remeasurements related to lease terminations and changes in assumptions around the probability of exercise of extension options. Twelve Months Ended December 31. 2019 Lease Expense (In thousands) Finance lease expense Reduction of right-of-use assets 3,213 Interest on lease liabilities 5.097 Operating lease expense (1) 68,367 Short-term lease expense (1) 1,570 Variable lease expense 2,120 Sublease income (14,207) Total 66,160 (1) Included in operating cash flows in the accompanying consolidated statements of cash flows
