The significant components of operating lease expense are as follows: | | | | | | | | |
| Year Ended December 31, |
| 2025 | 2024 |
| (in thousands) |
| Operating lease cost | $ | 309,999 | | $ | 264,339 | |
| Variable and short-term lease cost | 203,094 | | 182,372 | |
| Sublease income | (7,461) | | (6,006) | |
| Net lease cost | $ | 505,632 | | $ | 440,705 | |
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: | | | | | | | | |
| Year Ended December 31, |
| 2025 | 2024 |
| (in thousands) |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 244,159 | | $ | 249,052 | |
| Lease assets obtained in exchange for lease obligations, net of terminations | $ | 385,319 | | $ | 249,501 | |
Future maturities of our operating lease liabilities at December 31, 2025 are as follows:
| | | | | |
| (in thousands) |
| 2026 | $ | 286,012 | |
| 2027 | 254,108 | |
| 2028 | 289,268 | |
| 2029 | 268,627 | |
| 2030 | 251,379 | |
| Thereafter | 2,407,075 | |
| Total lease payments | 3,756,469 | |
| Less: Interest | 1,551,731 | |
| Present value of lease liabilities | $ | 2,204,738 | |
The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:
| | | | | | | | |
| Year Ended December 31, |
| 2025 | 2024 |
| Weighted average remaining lease term (in years) | 15.1 | 14.5 |
| Weighted average discount rate | 6.33 | % | 6.24 | % |
As of December 31, 2025, we have additional operating leases that have not yet commenced with total lease payments of $977.9 million. These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from January 2026 to June 2030 with lease terms ranging from 5 to 39 years.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.