Annual report pursuant to Section 13 and 15(d)

LEASES

v3.22.4
LEASES
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Lessee, Operating Leases LEASES
The significant components of operating lease expense are as follows:
Year Ended December 31,
2022 2021
(in thousands)
Operating lease cost $ 258,115  $ 241,012 
Variable and short-term lease cost 164,613  92,863 
Sublease income (5,678) (6,014)
Net lease cost $ 417,050  $ 327,861 
Many of our leases contain contingent rent obligations based on revenue, tickets sold or other variables, while others include periodic adjustments to rent obligations based on the prevailing inflationary index or market rental rates. Contingent rent obligations are not included in the initial measurement of the lease asset or liability and are recorded as rent expense in the period that the contingency is resolved. Our variable and short-term lease cost has increased during the year ended December 31, 2022 as compared to the previous year due to the resumption of concert events and festivals in the second half of 2021.
Supplemental cash flow information for our operating leases is as follows:
Year Ended December 31,
2022 2021
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities $ 229,669  $ 189,205 
Lease assets obtained in exchange for lease obligations, net of terminations $ 251,576  $ 251,401 

Future maturities of our operating lease liabilities at December 31, 2022 are as follows:
(in thousands)
2023 $ 252,300 
2024 234,809 
2025 222,470 
2026 212,098 
2027 201,147 
Thereafter 1,555,401 
Total lease payments 2,678,225 
Less: Interest 883,468 
Present value of lease liabilities $ 1,794,757 

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:
Year Ended December 31,
2022 2021
Weighted average remaining lease term (in years) 13.6 13.2
Weighted average discount rate 6.00  % 6.10  %
As of December 31, 2022, we have additional operating leases that have not yet commenced with total lease payments of $210.5 million. These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from February 2023 to June 2030 with lease terms ranging from 2 to 40 years.