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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, we are party to various legal actions which we believe are routine in nature and incidental to the operation of our business. We believe that the outcome of the proceedings will not have a material adverse effect upon our consolidated financial position or results of operations. At September 30, 2019, we had commitments of $9.8 million for re-leasing costs, recurring capital expenditures, and non-recurring building improvements. In addition, as of September 30, 2019, we had committed $23.5 million under construction contracts related to development projects, which is expected to be paid in the next twelve months. We have certain properties that are subject to ground leases which are accounted for as operating leases. At September 30, 2019, minimum future rental payments for the next five years and thereafter are as follows (dollars in millions):
|  | Ground Leases Paid by Realty Income (1) |  |  | Ground Leases Paid by Our Tenants (2) |  |  | Total |
2019 |  | $ | 0.4 |  |  | $ | 3.4 |  |  | $ | 3.8 |
2020 |  | 1.5 |  |  | 13.5 |  |  | 15.0 |
2021 |  | 1.3 |  |  | 13.2 |  |  | 14.5 |
2022 |  | 1.2 |  |  | 13.1 |  |  | 14.3 |
2023 |  | 1.2 |  |  | 13.1 |  |  | 14.3 |
Thereafter |  | 19.9 |  |  | 82.1 |  |  | 102.0 |
Total |  | $ | 25.5 |  |  | $ | 138.4 |  |  | $ | 163.9 |
Present value adjustment for remaining lease payments (3) |  |  |  |  |  | (39.6 | )
Lease liability - operating leases, net |  |  |  |  |  | $ | 124.3 |
(1) | Realty Income currently pays the ground lessors directly for the rent under the ground leases.
(2) | Our tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases. In the event a tenant fails to pay the ground lease rent, we are primarily responsible for the rent payment.
(3) The range of discount rates used to calculate the present value of the lease payments is 3.09% to 5.50%. At September 30, 2019, the weighted average discount rate is 4.29% and the weighted average remaining lease term is 12.5 years. The discount rates are derived using a hypothetical corporate credit curve for the ground leases based on our outstanding senior notes and relevant market data. The discount rates are specific for individual leases primarily based on the lease term.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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