Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business.

The components of lease costs were as follows:

	Classification	Three Months Ended March 31,
(in thousands)		2023		2022
Finance lease cost
Amortization of leased asset	Depreciation	$	119	$	119
Interest of lease liabilities	Interest expense	20		21
Operating lease cost	Operating expense1	1,843		2,663
Lease Cost		$	1,982	$	2,803

_________________________________________

(1)Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility.

The following table summarizes the expected maturity of lease liabilities as of March 31, 2023:

(in thousands)	Operating Leases		Finance Leases		Total
2023	$	3,946	$	71	$	4,017
2024	5,613		178		5,791
2025	5,379		180		5,559
2026	4,770		153		4,923
2027	3,992		155		4,147
2028 and thereafter	65,522		1,359		66,881
Total lease payments	89,222		2,096		91,318
Less: Interest	(34,647)		(584)		(35,231)
Present value of lease liabilities	$	54,575	$	1,512	$	56,087

Other information related to operating and finance leases was as follows:

	March 31, 2023		December 31, 2022
Operating leases
Weighted average remaining lease term (years)	19.4		20.0
Weighted average discount rate	4.6	%	4.5	%
Finance leases
Weighted average remaining lease term (years)	13.1		13.9
Weighted average discount rate	5.2	%	5.2	%

	Three Months Ended March 31,
(in thousands)	2023		2022
Cash paid for operating lease liabilities	$	1,684	$	1,592
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases)	1,265		1,640

We recognized $4.5 million and $5.4 million of operating lease revenue for the three months ended March 31, 2023 and 2022, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of operations. Substantially all of our lease revenue relates to fixed lease payments.

Below is a summary of our minimum rental receipts under the lease agreements in place as of March 31, 2023:

(in thousands)	Operating Leases
2023	$	11,549
2024	14,244
2025	13,318
2026	10,275
2027	8,784
2028 and thereafter	22,048
Total	$	80,218

Leases

Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business.

The components of lease costs were as follows:

	Classification	Three Months Ended March 31,
(in thousands)		2023		2022
Finance lease cost
Amortization of leased asset	Depreciation	$	119	$	119
Interest of lease liabilities	Interest expense	20		21
Operating lease cost	Operating expense1	1,843		2,663
Lease Cost		$	1,982	$	2,803

_________________________________________

(1)Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility.

The following table summarizes the expected maturity of lease liabilities as of March 31, 2023:

(in thousands)	Operating Leases		Finance Leases		Total
2023	$	3,946	$	71	$	4,017
2024	5,613		178		5,791
2025	5,379		180		5,559
2026	4,770		153		4,923
2027	3,992		155		4,147
2028 and thereafter	65,522		1,359		66,881
Total lease payments	89,222		2,096		91,318
Less: Interest	(34,647)		(584)		(35,231)
Present value of lease liabilities	$	54,575	$	1,512	$	56,087

Other information related to operating and finance leases was as follows:

	March 31, 2023		December 31, 2022
Operating leases
Weighted average remaining lease term (years)	19.4		20.0
Weighted average discount rate	4.6	%	4.5	%
Finance leases
Weighted average remaining lease term (years)	13.1		13.9
Weighted average discount rate	5.2	%	5.2	%

	Three Months Ended March 31,
(in thousands)	2023		2022
Cash paid for operating lease liabilities	$	1,684	$	1,592
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases)	1,265		1,640

We recognized $4.5 million and $5.4 million of operating lease revenue for the three months ended March 31, 2023 and 2022, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of operations. Substantially all of our lease revenue relates to fixed lease payments.

Below is a summary of our minimum rental receipts under the lease agreements in place as of March 31, 2023:

(in thousands)	Operating Leases
2023	$	11,549
2024	14,244
2025	13,318
2026	10,275
2027	8,784
2028 and thereafter	22,048
Total	$	80,218

Leases

Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business.

The components of lease costs were as follows:

	Classification	Three Months Ended March 31,
(in thousands)		2023		2022
Finance lease cost
Amortization of leased asset	Depreciation	$	119	$	119
Interest of lease liabilities	Interest expense	20		21
Operating lease cost	Operating expense1	1,843		2,663
Lease Cost		$	1,982	$	2,803

_________________________________________

(1)Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility.

The following table summarizes the expected maturity of lease liabilities as of March 31, 2023:

(in thousands)	Operating Leases		Finance Leases		Total
2023	$	3,946	$	71	$	4,017
2024	5,613		178		5,791
2025	5,379		180		5,559
2026	4,770		153		4,923
2027	3,992		155		4,147
2028 and thereafter	65,522		1,359		66,881
Total lease payments	89,222		2,096		91,318
Less: Interest	(34,647)		(584)		(35,231)
Present value of lease liabilities	$	54,575	$	1,512	$	56,087

Other information related to operating and finance leases was as follows:

	March 31, 2023		December 31, 2022
Operating leases
Weighted average remaining lease term (years)	19.4		20.0
Weighted average discount rate	4.6	%	4.5	%
Finance leases
Weighted average remaining lease term (years)	13.1		13.9
Weighted average discount rate	5.2	%	5.2	%

	Three Months Ended March 31,
(in thousands)	2023		2022
Cash paid for operating lease liabilities	$	1,684	$	1,592
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases)	1,265		1,640

We recognized $4.5 million and $5.4 million of operating lease revenue for the three months ended March 31, 2023 and 2022, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the unaudited condensed consolidated statements of operations. Substantially all of our lease revenue relates to fixed lease payments.

Below is a summary of our minimum rental receipts under the lease agreements in place as of March 31, 2023:

(in thousands)	Operating Leases
2023	$	11,549
2024	14,244
2025	13,318
2026	10,275
2027	8,784
2028 and thereafter	22,048
Total	$	80,218