Cash, Cash Equivalents, and Restricted Cash

6 Months Ended

Jun. 30, 2023

Cash, Cash Equivalents, and Restricted Cash [Abstract]

Cash, Cash Equivalents, and Restricted Cash

3.CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

The cash, cash equivalents, and restricted cash balances on the Consolidated Statements of Cash Flows consist of the following:

	As of		As of
	June 30, 2023		December 31, 2022		Included on Balance Sheet
	(in thousands)
Cash and cash equivalents	$	179,169	$	143,708	Cash and cash equivalents
Securitization escrow accounts		66,252		35,820	Restricted cash - current asset
Payment, performance bonds, and other		5,825		6,139	Restricted cash - current asset
Surety bonds and workers compensation		4,263		3,616	Other assets - noncurrent
Total cash, cash equivalents, and restricted cash	$	255,509	$	189,283

Pursuant to the terms of the Tower Securities (see Note 10), the Company is required to establish a securitization escrow account, held by the indenture trustee, into which all rents and other sums due on the towers that secure the Tower Securities are directly deposited by the lessees. These restricted cash amounts are used to fund reserve accounts for the payment of (1) debt service costs, (2) ground rents, real estate and personal property taxes and insurance premiums related to towers, (3) trustee and servicing expenses, and (4) management fees. The restricted cash in the securitization escrow account in excess of required reserve balances is subsequently released to the Borrowers (as defined in Note 10) monthly, provided that the Borrowers are in compliance with their debt service coverage ratio and that no event of default has occurred. All monies held by the indenture trustee are classified as restricted cash on the Company’s Consolidated Balance Sheets.

Payment and performance bonds relate primarily to collateral requirements for tower construction currently in process by the Company. Other restricted cash includes $5.6 million and $6.0 million held in escrow as of June 30, 2023 and December 31, 2022, respectively, related to the Company’s acquisition activities.

Cash is pledged as collateral related to surety bonds issued for the benefit of the Company or its affiliates in the ordinary course of business and primarily related to the Company’s tower removal obligations. As of June 30, 2023 and December 31, 2022, the Company had $41.8 million and $42.3 million in surety and payment and performance bonds, respectively, for which no collateral was required to be posted. The Company periodically evaluates the collateral posted for its bonds to ensure that it meets the minimum requirements. As of June 30, 2023 and December 31, 2022, the Company had pledged $2.4 million and $2.3 million, respectively, as collateral related to its workers’ compensation policy.