Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
We lease office space, many of our concert venues, festival sites and certain equipment. We do not recognize an operating lease asset or liability on our consolidated balance sheets for leases with an initial term of twelve months or less, including multi-year festival site leases where the sum of the non-consecutive periods of rental time is less than twelve months. Rent expense for these short-term leases is generally recognized on a straight-line basis over the lease term.
Some of our lease agreements contain annual rental escalation clauses, as well as provisions for us to pay the related utilities and maintenance. We have elected to account for the lease components (i.e., fixed payments including rent, parking and real estate taxes) and nonlease components (i.e., common-area maintenance costs) as a single lease component.
Many of our lease agreements contain renewal options that can extend the lease for additional terms typically ranging from one to ten years. Renewal options at the discretion of the lessor are included in the lease term while renewal options at our discretion are generally not included in the lease term unless they are reasonably certain to be exercised.
In addition to fixed rental payments, many of our leases contain contingent rental payments based on a percentage of revenue, tickets sold or other variables, while others include periodic adjustments to rental payments based on the prevailing inflationary index or market rental rates. Contingent rent obligations are not included in the initial measurement of the right of use asset or lease liability and are recognized as rent expense in the period that the contingency is resolved. Our leases do not contain any material residual value guarantees or restrictive covenants.
We measure our lease assets and liabilities using an incremental borrowing rate which varies from lease to lease depending on geographical location and length of the lease.
The significant components of operating lease expense are as follows:
Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019
(in thousands)
Operating lease cost $ 43,412    $ 139,251   
Variable and short-term lease cost 48,318    96,147   
Sublease income (4,040)   (12,669)  
Net lease cost $ 87,690    $ 222,729   

Supplemental cash flow information for our operating leases is as follows:
Nine Months Ended September 30, 2019
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities $ 146,953   
Lease assets obtained in exchange for lease obligations, net of terminations $ 130,011   

Future maturities of our operating lease liabilities at September 30, 2019 are as follows:
(in thousands)
October 1 - December 31, 2019 $ 37,520   
2020 184,023   
2021 157,624   
2022 151,277   
2023 143,784   
Thereafter 1,134,584   
Total lease payments 1,808,812   
Less: Interest 593,975   
Present value of lease liabilities $ 1,214,837   

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:
September 30, 2019
Weighted average remaining lease term (in years) 13.4
Weighted average discount rate 5.78  %

As of September 30, 2019, we have additional operating leases that have not yet commenced with total lease payments of $298.5 million. These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from October 2019 to May 2021 with lease terms ranging from 1 to 25 years.