Live Nation Entertainment Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES

3 Months Ended

Mar. 31, 2022

The significant components of operating lease expense are as follows:


	Three Months Ended March 31,
			2022		2021
		(in thousands)
Operating lease cost			$	63,761	$	55,299
Variable and short-term lease cost			18,032		9,453
Sublease income			(970)		(2,282)
Net lease cost			$	80,823	$	62,470

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.

Supplemental cash flow information for our operating leases is as follows:


	Three Months Ended March 31,
	2022		2021
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities	$	66,232	$	58,914
Lease assets obtained in exchange for lease obligations, net of terminations	$	157,244	$	6,771

Future maturities of our operating lease liabilities at March 31, 2022 are as follows:


	(in thousands)
April 1 - December 31, 2022	$	166,639
2023	247,013
2024	232,688
2025	216,901
2026	205,071
Thereafter	1,689,663
Total lease payments	2,757,975
Less: Interest	910,315
Present value of lease liabilities	$	1,847,660

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:


	March 31, 2022		December 31, 2021
Weighted average remaining lease term (in years)	13.8		13.2
Weighted average discount rate	5.94	%	6.10	%

As of March 31, 2022, we have additional operating leases that have not yet commenced, with total lease payments of $184.2 million. These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from April 2022 to June 2030, with lease terms ranging from 2 to 27 years.