Number of leases not yet commenced

  
[Table of Contents](#i1d117440a79147f69db4408bc4f22334_10)Part IV

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IRON MOUNTAIN INCORPORATEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)DECEMBER 31, 2021(In thousands, except share and per share data)2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)The components of the lease expense for the years ended December 31, 2021, 2020 and 2019 are as follows:

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|  |  | YEAR ENDED DECEMBER 31, |
| DESCRIPTION |  | 2021 |  | 2020 |  | 2019 |
| Operating lease cost(1) |  | $ | 545,097  |  |  | $ | 499,464  |  |  | $ | 459,619  |  |
| Financing lease cost: |  |  |  |  |  |  |
| Depreciation of financing lease right-of-use assets |  | $ | 50,970  |  |  | $ | 51,629  |  |  | $ | 59,258  |  |
| Interest expense for financing lease liabilities |  | 19,808  |  |  | 19,942  |  |  | 21,031  |  |

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $111,949, $111,501 and $105,922 for the years ended December 31, 2021, 2020 and 2019, respectively. Weighted average remaining lease terms and discount rates as of December 31, 2021 and 2020 are as follows:

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|  | DECEMBER 31, 2021 |  | DECEMBER 31, 2020 |
|  | OPERATING LEASES |  | FINANCING LEASES |  | OPERATING LEASES |  | FINANCING LEASES |
| Remaining Lease Term | 10.9 years |  | 10.9 years |  | 11.1 years |  | 11.5 years |
| Discount Rate | 6.6  | % |  | 5.9  | % |  | 6.9  | % |  | 5.9  | % |

The estimated minimum future lease payments as of December 31, 2021, are as follows: 

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| YEAR |  | OPERATING LEASES(1) |  | SUBLEASE INCOME |  | FINANCING LEASES(1) |
| 2022 |  | $ | 399,242  |  |  | $ | 5,838  |  |  | $ | 55,115  |  |
| 2023 |  | 380,690  |  |  | 5,208  |  |  | 50,122  |  |
| 2024 |  | 353,617  |  |  | 3,631  |  |  | 41,150  |  |
| 2025 |  | 328,320  |  |  | 1,504  |  |  | 38,600  |  |
| 2026 |  | 296,895  |  |  | 1,075  |  |  | 34,731  |  |
| Thereafter |  | 1,706,142  |  |  | 2,271  |  |  | 235,872  |  |
| Total minimum lease payments |  | 3,464,906  |  |  | $ | 19,527  |  |  | 455,590  |  |
| Less amounts representing interest or imputed interest |  | (1,033,837) |  |  |   |  | (98,861) |  |
| Present value of lease obligations |  | $ | 2,431,069  |  |  |   |  | $ | 356,729  |  |

(1)Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes. At December 31, 2021, we had 14 leases which we have signed but which have not yet commenced and are not included in our lease obligation table above. The total undiscounted minimum lease payments for these leases are approximately $456,700 and have lease terms that range from 10 to 25 years. Each of these leases is expected to commence during 2022. The largest of these leases is for a facility in the United Kingdom that is currently under construction. The exact terms of the lease will be determined upon the completion of building construction, which is expected to occur during late 2022. We expect the rent due in the first year of the lease to be approximately $5,000, and we expect the term of the lease to be approximately 25 years.

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| 79 | IRON MOUNTAIN 2021 FORM 10-K |  |


