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

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES

9 Months Ended

Sep. 30, 2023

The significant components of operating lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Operating lease expense	$	63,954	$	60,003	$	206,282	$	195,514
Variable and short-term lease expense	85,148		64,548		157,453		117,441
Sublease income	(1,865)		(1,627)		(6,477)		(3,901)
Net lease expense	$	147,237	$	122,924	$	357,258	$	309,054

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:


	Nine Months Ended September 30,
	2023		2022
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities	$	195,945	$	177,847
Lease assets obtained in exchange for lease obligations, net of terminations	$	148,960	$	289,977

As of September 30, 2023, we have additional operating leases that have not yet commenced, with total lease payments of $122.9 million. These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from October 2023 to June 2030 due to certain offices and venues under construction, with lease terms ranging from 2 to 30 years.