Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES

v3.25.4
LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Lessee, Operating Leases
The significant components of operating lease expense are as follows:
Year Ended December 31,
2025 2024
(in thousands)
Operating lease cost $ 309,999  $ 264,339 
Variable and short-term lease cost 203,094  182,372 
Sublease income (7,461) (6,006)
Net lease cost $ 505,632  $ 440,705 
Many of our leases contain contingent rent obligations based on revenue, tickets sold or other variables. Contingent rent obligations, including those related to subsequent changes in the prevailing index or market rate after lease inception, 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.
Supplemental cash flow information for our operating leases is as follows:
Year Ended December 31,
2025 2024
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities $ 244,159  $ 249,052 
Lease assets obtained in exchange for lease obligations, net of terminations $ 385,319  $ 249,501 

Future maturities of our operating lease liabilities at December 31, 2025 are as follows:
(in thousands)
2026 $ 286,012 
2027 254,108 
2028 289,268 
2029 268,627 
2030 251,379 
Thereafter 2,407,075 
Total lease payments 3,756,469 
Less: Interest 1,551,731 
Present value of lease liabilities $ 2,204,738 

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:
Year Ended December 31,
2025 2024
Weighted average remaining lease term (in years) 15.1 14.5
Weighted average discount rate 6.33 % 6.24 %
As of December 31, 2025, we have additional operating leases that have not yet commenced with total lease payments of $977.9 million. These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from January 2026 to June 2030 with lease terms ranging from 5 to 39 years.