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

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES

6 Months Ended

Jun. 30, 2023

The significant components of operating lease expense are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in thousands)
Operating lease expense	$	76,999	$	71,750	$	142,328	$	135,511
Variable and short-term lease expense	40,963		34,861		72,305		52,893
Sublease income	(2,424)		(1,304)		(4,612)		(2,274)
Net lease expense	$	115,538	$	105,307	$	210,021	$	186,130

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:


	Six Months Ended June 30,
	2023		2022
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities	$	137,924	$	121,953
Lease assets obtained in exchange for lease obligations, net of terminations	$	87,505	$	185,119

As of June 30, 2023, we have additional operating leases that have not yet commenced, with total lease payments of $146.7 million. These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from July 2023 to June 2030 due to certain offices and venues under construction with lease terms ranging from 2 to 30 years.