Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Leases

The Company has entered into various lease agreements both as the lessor and lessee. We determine if an arrangement is or contains a lease at contract inception and determine its classification as an operating or finance lease at lease commencement. The leases have been classified as either operating or finance leases in accordance with ASU 2016-02, Leases (Topic 842) and its related amendments (collectively, known as "ASC 842") and primarily consist of leases for land, tower space, office space, certain office equipment and vehicles. The Company also has sublease arrangements that provide a nominal amount of income. A right-of-use asset and lease liability have been recorded on the balance sheet for all leases except those with an original lease term of twelve months or less. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As a lessor, we reserve the rights to the underlying assets in our agreements and do not expect to derive any amounts at the end of the lease terms. We have elected the practical expedient under ASC 842 to not separate lease and nonlease components for all classes of underlying assets.

The Company's leases typically have lease terms between five to ten years. Most of these leases include one or more renewal options for periods ranging from one to ten years. At lease commencement, the Company assesses whether it is reasonably certain to exercise a renewal option. Options that are reasonably certain of being exercised are factored into the determination of the lease term, and related payments are included in the calculation of the right-of-use asset and lease liability. The Company assumes that certain tower and land leases will be renewed for one additional term.

The Company uses its incremental borrowing rate to calculate the present value of lease payments. The incremental borrowing rate is based on a 1-year LIBOR rate plus an estimated credit spread consistent with our Refinanced Credit Agreement.

The following table presents the Company's total right-of-use assets and lease liabilities as of December 31, 2020 and 2019 (dollars in thousands):

	Balance Sheet Location	December 31, 2020		December 31, 2019
Right-of-Use Assets
Operating	Operating lease right-of-use assets	$	157,568	$	143,436
Finance, net of accumulated amortization of $498 and $352 at December 31, 2020 and 2019, respectively	Other assets	496		380
Total Assets		$	158,064	$	143,816
Lease Liabilities
Current
Operating	Current portion of operating lease liabilities	$	28,121	$	34,462
Finance	Accounts payable and accrued liabilities	250		234
Noncurrent
Operating	Operating lease liabilities	129,273		111,184
Finance	Other liabilities	256		146
Total Liabilities		$	157,900	$	146,026

The following table presents the total lease cost for the years ended December 31, 2020 and 2019 (dollars in thousands):

	Statement of Operations Location	December 31, 2020		December 31, 2019
Operating Lease Cost	Selling, general and administrative expenses; Corporate expenses	$	33,439	$	37,750
Finance Lease Cost
Amortization of right-of-use assets	Depreciation and amortization	348		414
Interest on lease liabilities	Interest expense	40		42
Total Lease Cost		$	33,827	$	38,206

Total lease income related to our lessor arrangements was $2.1 million and $3.0 million for the years ended December 31, 2020 and 2019, respectively.

Other Supplementary Data

The following tables present other supplementary information for the years ended December 31, 2020 and 2019, respectively (dollars in thousands):

	December 31, 2020		December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	34,051	$	22,370
Operating cash flows from finance leases	40		42
Financing cash flows from finance leases	339		414
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	40,506	$	22,922

	December 31, 2020		December 31, 2019
Weighted Average Remaining Lease Term (in years)
Operating leases	8.85		7.99
Finance leases	2.69		2.22
Weighted Average Discount Rate
Operating leases	6.68	%	7.45	%
Finance leases	6.22	%	7.44	%

As of December 31, 2020, future minimum lease payments, as defined under ASC 842, for the following five fiscal years and thereafter were as follows (dollars in thousands):

	Operating Leases		Finance Leases		Total
2021	$	28,106	$	253	$	28,359
2022	27,577		173		27,750
2023	26,045		61		26,106
2024	22,133		44		22,177
2025	18,972		15		18,987
Thereafter	85,883		—		85,883
Total lease payments	$	208,716	$	546	$	209,262
Less: imputed interest	(51,322)		(40)		(51,362)
Total	$	157,394	$	506	$	157,900

Future minimum payments related to the Company's failed sale-leasebacks as of December 31, 2020 were as follows (dollars in thousands):

	Tower Sale		Other		Total
2021	$	13,266	$	1,603	$	14,869
2022	13,664		1,650		15,314
2023	14,074		1,701		15,775
2024	14,496		1,751		16,247
2025	14,931		301		15,232
Thereafter	171,175		—		171,175
	$	241,606	$	7,006	$	248,612

Future minimum payments to be received under the Company's lessor arrangements as of December 31, 2020 were as follows (dollars in thousands):

	Operating Leases
2021	$	271
2022	245
2023	242
2024	160
2025	82
Thereafter	119
Total lease receivables	$	1,119

Leases

Leases

The Company has entered into various lease agreements both as the lessor and lessee. We determine if an arrangement is or contains a lease at contract inception and determine its classification as an operating or finance lease at lease commencement. The leases have been classified as either operating or finance leases in accordance with ASU 2016-02, Leases (Topic 842) and its related amendments (collectively, known as "ASC 842") and primarily consist of leases for land, tower space, office space, certain office equipment and vehicles. The Company also has sublease arrangements that provide a nominal amount of income. A right-of-use asset and lease liability have been recorded on the balance sheet for all leases except those with an original lease term of twelve months or less. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. As a lessor, we reserve the rights to the underlying assets in our agreements and do not expect to derive any amounts at the end of the lease terms. We have elected the practical expedient under ASC 842 to not separate lease and nonlease components for all classes of underlying assets.

The Company's leases typically have lease terms between five to ten years. Most of these leases include one or more renewal options for periods ranging from one to ten years. At lease commencement, the Company assesses whether it is reasonably certain to exercise a renewal option. Options that are reasonably certain of being exercised are factored into the determination of the lease term, and related payments are included in the calculation of the right-of-use asset and lease liability. The Company assumes that certain tower and land leases will be renewed for one additional term.

The Company uses its incremental borrowing rate to calculate the present value of lease payments. The incremental borrowing rate is based on a 1-year LIBOR rate plus an estimated credit spread consistent with our Refinanced Credit Agreement.

The following table presents the Company's total right-of-use assets and lease liabilities as of December 31, 2020 and 2019 (dollars in thousands):

	Balance Sheet Location	December 31, 2020		December 31, 2019
Right-of-Use Assets
Operating	Operating lease right-of-use assets	$	157,568	$	143,436
Finance, net of accumulated amortization of $498 and $352 at December 31, 2020 and 2019, respectively	Other assets	496		380
Total Assets		$	158,064	$	143,816
Lease Liabilities
Current
Operating	Current portion of operating lease liabilities	$	28,121	$	34,462
Finance	Accounts payable and accrued liabilities	250		234
Noncurrent
Operating	Operating lease liabilities	129,273		111,184
Finance	Other liabilities	256		146
Total Liabilities		$	157,900	$	146,026

The following table presents the total lease cost for the years ended December 31, 2020 and 2019 (dollars in thousands):

	Statement of Operations Location	December 31, 2020		December 31, 2019
Operating Lease Cost	Selling, general and administrative expenses; Corporate expenses	$	33,439	$	37,750
Finance Lease Cost
Amortization of right-of-use assets	Depreciation and amortization	348		414
Interest on lease liabilities	Interest expense	40		42
Total Lease Cost		$	33,827	$	38,206

Total lease income related to our lessor arrangements was $2.1 million and $3.0 million for the years ended December 31, 2020 and 2019, respectively.

Other Supplementary Data

The following tables present other supplementary information for the years ended December 31, 2020 and 2019, respectively (dollars in thousands):

	December 31, 2020		December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	34,051	$	22,370
Operating cash flows from finance leases	40		42
Financing cash flows from finance leases	339		414
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	40,506	$	22,922

	December 31, 2020		December 31, 2019
Weighted Average Remaining Lease Term (in years)
Operating leases	8.85		7.99
Finance leases	2.69		2.22
Weighted Average Discount Rate
Operating leases	6.68	%	7.45	%
Finance leases	6.22	%	7.44	%

As of December 31, 2020, future minimum lease payments, as defined under ASC 842, for the following five fiscal years and thereafter were as follows (dollars in thousands):

	Operating Leases		Finance Leases		Total
2021	$	28,106	$	253	$	28,359
2022	27,577		173		27,750
2023	26,045		61		26,106
2024	22,133		44		22,177
2025	18,972		15		18,987
Thereafter	85,883		—		85,883
Total lease payments	$	208,716	$	546	$	209,262
Less: imputed interest	(51,322)		(40)		(51,362)
Total	$	157,394	$	506	$	157,900

Future minimum payments related to the Company's failed sale-leasebacks as of December 31, 2020 were as follows (dollars in thousands):

	Tower Sale		Other		Total
2021	$	13,266	$	1,603	$	14,869
2022	13,664		1,650		15,314
2023	14,074		1,701		15,775
2024	14,496		1,751		16,247
2025	14,931		301		15,232
Thereafter	171,175		—		171,175
	$	241,606	$	7,006	$	248,612

Future minimum payments to be received under the Company's lessor arrangements as of December 31, 2020 were as follows (dollars in thousands):

	Operating Leases
2021	$	271
2022	245
2023	242
2024	160
2025	82
Thereafter	119
Total lease receivables	$	1,119