Table of Contents The following table reconciles our loss from operations (the most directly comparable financial measure calculated in accordance with GAAP) to our contribution margin for the periods presented: Six Months Ended Year Ended December 31, June 30, (Amounts in thousands) 2016 2017 2018 2018 2019 Loss from operations $(396,274) $(931,834) $(1,690,999) $(677,859) $(1,369,450) (a) Less: Other revenue (1,744) (19,106) (124,415) (49,815) (186,648) Add: (b) Other operating expenses — 1,677 106,788 42,024 81,189 (b) Pre-opening location expenses 115,749 131,324 357,831 156,983 255,133 (b) Sales and marketing expenses 43,428 143,424 378,729 139,889 320,046 (b) Growth and new market development expenses 35,731 109,719 477,273 174,091 369,727 (b) General and administrative expenses 115,346 454,020 357,486 155,257 389,910 (b) Depreciation and amortization 88,952 162,892 313,514 137,418 255,924 Stock-based compensation expense (as included in location operating (c) expenses) 2,032 18,718 22,793 6,420 25,953 Contribution margin including non-cash GAAP straight-line lease cost 3,220 70,834 199,000 84,408 141,784 Add: Non-cash GAAP straight-line lease cost (as included in location operating (d) expenses) 92,723 162,313 268,125 117,178 198,124 Contribution margin excluding non-cash GAAP straight-line lease cost $ 95,943 $ 233,147 $ 467,125 $ 201,586 $ 339,908 As additional supplemental information, the following table also reconciles our membership and service revenue (calculated in accordance with GAAP) to our contribution margin for the periods presented: Six Months Ended Year Ended December 31, June 30, (Amounts in thousands) 2016 2017 2018 2018 2019 (e) Membership and service revenue $ 434,355 $ 866,898 $ 1,697,336 $ 713,956 $ 1,348,772 (b) Less: Location operating expenses (433,167) (814,782) (1,521,129) (635,968) (1,232,941) Add: Stock-based compensation expense (as included in location operating (c) expenses) 2,032 18,718 22,793 6,420 25,953 Contribution margin including non-cash GAAP straight-line lease cost 3,220 70,834 199,000 84,408 141,784 Add: Non-cash GAAP straight-line lease cost (as included in location operating (d) expenses) 92,723 162,313 268,125 117,178 198,124 Contribution margin excluding non-cash GAAP straight-line lease cost $ 95,943 $ 233,147 $ 467,125 $ 201,586 $ 339,908 (a) Relates to other revenue not related to membership and service revenue. (b) As presented on our consolidated statements of operations. (c) Represents the non-cash expense of our equity compensation arrangements for employees whose payroll is included in location operating expenses. (d) See “Why do we adjust for non-cash straight-line lease cost?” below for additional detail about non-cash GAAP straight-line lease cost. In connection with the preparation of interim condensed consolidated financial statements as of and for the six months ended June 30, 2019, we adopted ASC 842, Leases, using the modified retrospective approach, as if such adoption had occurred on January 1, 2019. The results for reporting periods beginning after January 1, 2019 are presented in accordance with ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with ASC 840. Under ASC 840, we previously reported rent expense and tenancy costs including common area maintenance charges and real estate taxes. Tenancy costs are a non-lease component as defined in ASC 842, and in connection with the adoption of ASC 842, we have elected to not separate non-lease components in the determination of our lease obligation. Therefore the costs associated with common area maintenance charges and real estate taxes billed in addition to our base rent, where applicable, have been included as a component of our total operating lease costs in 2019. For comparability purposes, we have presented our base rent, incremental common area maintenance charges and real estate taxes as components of the total operating lease cost for the six months ended June 30, 2018 so they 71