The Company’s leases are considered operating leases and primarily consist of real estate such as office space, broadcasting towers, land and land easements. Right of Use (“ROU”) asset and lease liability is recognized as of lease commencement date based

on the present value of the future minimum lease payments over the lease term. As the implicit rate for operating leases is not readily determinable, the future minimum lease payments were discounted using an incremental borrowing rate. Due to the Company’s having a centralized treasury function, the Company applied a portfolio approach to discount its domestic lease obligations using its secured publicly traded U.S. dollar denominated debt instruments interpolating the duration of the debt to the remaining lease term. The incremental borrowing rate for international leases is the interest rate that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

The Company’s operating leases are reflected on the consolidated balance sheet as right-of-use assets with the related liability presented as lease liability, current and lease liability, net of current portion. Lease expense is recognized on a straight-line basis over the lease term.

Generally, lease terms include options to renew or extend the lease. Unless the renewal option is considered reasonably certain, the exercise of any such options has been excluded from the calculation of lease liabilities. In addition, as permitted within the guidance, ROU assets and lease liabilities are not recorded for leases within an initial term of one year or less. The Company’s existing leases have remaining terms of less than one year up to 30 years. Certain of the Company’s lease agreements include rental payments based on changes in the consumer price index (“CPI”). Lease liabilities are not remeasured as a result of changes in the CPI; instead, changes in the CPI are treated as variable lease payments and recognized in the period in which the related obligation was incurred. Lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Certain real estate leases include additional costs such as common area maintenance (non-lease component), as well as property insurance and property taxes. These costs were excluded from future minimum lease payments as they are variable payments. As such, these costs were not part of the calculation of ROU assets and lease liabilities associated with operating leases upon transition.

The following table summarizes the expected future payments related to lease liabilities as of June 30, 2021:


(in thousands)
Remainder of 2021	$	5,014
2022		9,070
2023		7,455
2024		6,407
2025		6,096
2026 and thereafter		15,778
Total minimum payments	$	49,820
Less amounts representing interest		(10,849	)
Present value of minimum lease payments		38,971
Less current operating lease liabilities		(7,524	)
Long-term operating lease liabilities	$	31,447

The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of June 30, 2021 were 9.6 years and 6.3%, respectively. The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of June 30, 2020 were 10.4 years and 6.2%, respectively.

The following table summarizes lease payments and supplemental non-cash disclosures:


	Six-Month Period Ended June 30,
(in thousands)	2021		2020


Operating cash flows from operating leases	$	5,329	$	6,371
Non-cash additions to operating lease assets	$	4,352	$	25

The following table summarizes the components of lease expense:


	Three-Month Period		Three-Month Period		Six-Month Period		Six-Month Period
	Ended June 30,		Ended June 30,		Ended June 30,		Ended June 30,
(in thousands)	2021		2020		2021		2020
Operating lease cost	$	2,051	$	2,369	$	4,204	$	5,042
Variable lease cost		438		35		566		332
Short-term lease cost		330		216		769		434
Total lease cost	$	2,819	$	2,620	$	5,539	$	5,808

For the three-month period ended June 30, 2021, lease cost of $1.4 million, $1.2 million and $0.2 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the six--month period ended June 30, 2021, lease cost of $2.8 million, $2.4 million and $0.3 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively.

For the three-month period ended June 30, 2020, lease cost of $1.4 million, $1.0 million and $0.2 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the six-month periods ended June 30, 2020 lease cost of $3.0 million, $2.4 million and $0.4 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively.