Leases

3 Months Ended

Mar. 31, 2024

4. LEASES

The Company’s leases are considered operating leases and primarily consist of real estate such as office space, broadcasting towers, land and land easements. The operating leases are reflected within the consolidated balance sheet as Operating leases right of use asset with the related liability presented as Operating lease liabilities and Long-term operating lease liabilities. 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.

The following table summarizes the expected future payments related to lease liabilities as of March 31, 2024:


(in thousands)
Remainder of 2024	$	7,871
2025		10,240
2026		8,501
2027		6,717
2028		5,973
2029 and thereafter		29,947
Total minimum payments	$	69,249
Less amounts representing interest		(16,431	)
Less amounts representing tenant improvement allowance		(399	)
Present value of minimum lease payments		52,419
Less current operating lease liabilities		(7,518	)
Long-term operating lease liabilities	$	44,901

The Company’s existing leases have remaining terms of less than one year up to 27 years. The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of March 31, 2024 were 8.6 years and 6.2%, respectively. The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of March 31, 2023 were 8.9 years and 6.2%, respectively.

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


	Three-Month Period Ended March 31,
(in thousands)	2024		2023
Cash paid for amounts included in lease liabilities:

Operating cash flows from operating leases	$	2,856	$	2,138
Non-cash additions to operating lease assets	$	1,607	$	3,433

The following table summarizes the components of lease expense:


	Three-Month Period
	Ended March 31,
(in thousands)	2024		2023
Operating lease cost	$	2,384	$	2,477
Variable lease cost		693		192
Short-term lease cost		279		1,425
Total lease cost	$	3,356	$	4,094

For the three-month period ended March 31, 2024, lease cost of $1.4 million, $1.7 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 March 31, 2023, lease cost of $1.4 million, $2.3 million and $0.4 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively.