Leases

9 Months Ended

Sep. 30, 2021

During the three months ended September 30, 2021 and 2020, we had operating lease costs of $72,789 and $76,739, respectively, and variable lease costs of $22,514 and $13,494, respectively. During the nine months ended September 30, 2021 and 2020, we had operating lease costs of $218,139 and $235,473, respectively, and variable lease costs of $56,507 and $41,238, respectively. These operating lease costs are recorded in direct advertising expenses (exclusive of depreciation and amortization). For the three months ended September 30, 2021 and 2020, we recorded a loss of $349 and a gain of $76, respectively, in gain on disposition of assets related to the amendment and termination of lease agreements. For the nine months ended September 30, 2021 and 2020, we recorded a loss of $296 and $241, respectively, in gain on disposition of assets related to the amendment and termination of lease agreements. Cash payments of $243,690 and $234,400 were made reducing our operating lease liabilities for the nine months ended September 30, 2021 and 2020, respectively, and are included in cash flows provided by operating activities in the Condensed Consolidated Statements of Cash Flows.

We elected the short-term lease exemption which applies to certain of our vehicle agreements. This election allows the Company to not recognize lease right of use assets ("ROU assets") or lease liabilities for agreements with a term of twelve months or less. We recorded $1,579 and $1,172 in direct advertising expenses (exclusive of depreciation and amortization) for these agreements during the three months ended September 30, 2021 and 2020, respectively. We recorded $4,471 and $3,679 in direct advertising expenses (exclusive of depreciation and amortization) for these agreements during the nine months ended September 30, 2021 and 2020, respectively.

Our operating leases have a weighted-average remaining lease term of 12.0 years. The weighted-average discount rate of our operating leases is 4.6%. Also, during the periods ended September 30, 2021 and 2020, we obtained $25,401 and $25,250, respectively, of leased assets in exchange for new operating lease liabilities, which includes liabilities obtained through acquisitions.

The following is a summary of the maturities of our operating lease liabilities as of September 30, 2021:


2021	$	40,519
2022	208,326
2023	176,861
2024	157,270
2025	131,273
Thereafter	817,054
Total undiscounted operating lease payments	1,531,303
Less: Imputed interest	(378,703)
Total operating lease liabilities	$	1,152,600

During the three months ended September 30, 2021, $713 of amortization expense and $145 of interest expense relating to our financing lease liabilities were recorded in depreciation and amortization and interest expense, respectively, in the Condensed Consolidated Statements of Income and Comprehensive Income. During the nine months ended September 30, 2021, $2,140 of amortization expense and $443 of interest expense relating to our financing lease liabilities were recorded in depreciation and amortization and interest expense, respectively, in the Condensed Consolidated Statements of Income and Comprehensive Income. Cash payments of $998 were made reducing our financing lease liabilities for the nine months ended September 30, 2021 and are included in cash flows used in financing activities in the Condensed Consolidated Statements of Cash Flows. We had no expenses relating to the financing lease liabilities for the nine months ended September 30, 2020. Our financing leases have a weighted-average remaining lease term of 6.2 years and a weighted-average discount rate of 3.5%.