Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.20.2
LEASES
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
LEASES LEASES
The significant components of operating lease expense are as follows:
Three Months Ended
June 30,		 Six Months Ended
June 30,
2020 2019 2020 2019
(in thousands)
Operating lease cost $ 58,427    $ 49,110    $ 120,555    $ 95,839   
Variable and short-term lease cost 20,208    34,064    32,730    47,829   
Sublease income (4,111)   (4,888)   (8,262)   (8,629)  
Net lease cost $ 74,524    $ 78,286    $ 145,023    $ 135,039   

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. In response to the global COVID-19 pandemic, we closed our venues in mid-March and the majority of those venues have remained closed throughout the second quarter. As a result, our variable lease cost has declined during the three months and six months ended June 30, 2020.
Supplemental cash flow information for our operating leases is as follows:
Six Months Ended
June 30,
2020 2019
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities $ 105,067    $ 94,562   
Lease assets obtained in exchange for lease obligations, net of terminations $ 98,052    $ 128,175   

Future maturities of our operating lease liabilities at June 30, 2020 are as follows:
(in thousands)
July 1 - December 31, 2020 $ 92,241   
2021 197,323   
2022 191,701   
2023 188,152   
2024 170,834   
Thereafter 1,501,426   
Total lease payments 2,341,677   
Less: Interest 810,014   
Present value of lease liabilities $ 1,531,663   

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:
June 30,
2020 2019
Weighted average remaining lease term (in years) 14.0 13.5
Weighted average discount rate 6.05  % 5.75  %

As of June 30, 2020, we have additional operating leases that have not yet commenced with total lease payments of $198.7 million. These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from July 2020 to June 2030 with lease terms ranging from 1 to 21 years.
In response to the impacts we are experiencing from the global COVID-19 pandemic, we have amended certain of our lease agreements and are continuing negotiations with certain of our landlords for deferral or abatement of fixed rent payments. These lease concessions are not expected to substantially increase our obligations under the respective lease agreements. Therefore, we have elected to account for these lease concessions as though enforceable rights and obligations for those concessions existed in our lease agreements rather than applying the lease modification guidance as clarified by the FASB.