Simon Property Group, Inc. Simon Property Group, L.P. Notes to Consolidated Financial Statements (Dollars in thousands, except share, per share, unit and per unit amounts and where indicated as in millions or billions)
10. Commitments and Contingencies
Litigation We are involved from time-to-time in various legal and regulatory proceedings that arise in the ordinary course of our business, including, but not limited to, commercial disputes, environmental matters, and litigation in connection with transactions such as acquisitions and divestitures. We believe that current proceedings will not have a material adverse effect on our financial condition, liquidity or results of operations. We record a liability when a loss is considered probable and the amount can be reasonably estimated. Lease Commitments As of December 31, 2023, we are subject to ground leases that cover all or a portion of 23 of our consolidated properties with termination dates extending through 2090, including periods for which exercising an extension option is reasonably assured. These ground leases generally require us to make fixed annual rental payments, or a fixed annual rental payment plus a percentage rent component based upon the revenues or total sales of the property. In addition, we have several regional office locations that are subject to leases with termination dates ranging from 2024 to 2034. These office leases generally require us to make fixed annual rental payments plus pay our share of common area, real estate, and utility expenses. Some of our ground and office leases include escalation clauses. All of our lease arrangements are classified as operating leases. We incurred ground lease expense and office lease expense, which are included in other expense and home office and regional expense, respectively, as follows: For the Year Ended December 31, 2023 2022 2021 Operating Lease Cost Fixedleasecost................................................ $ 34,112 $ 30,257 $ 32,492 Variable lease cost ............................................. 16,930 17,593 15,454 Subleaseincome............................................... — — (705) Total operating lease cost ...................................... $ 51,042 $ 47,850 $ 47,241
For the Year Ended December 31,
2023
2022
2021
Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases . . . . . . . . . . . . . . . . . . . . $
50,967 $ 47,754 $ 47,824
32.3 years
32.7 years 33.6 years
Weighted-average remaining lease term - operating leases. . . . . . . . . . Weighted-average discount rate - operating leases ................
4.93%
4.87%
4.87%
131
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