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Leases

6 Months Ended

Jun. 30, 2023

The Company leases 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 June 30,				Six Months Ended June 30,
(in thousands)		2023		2022		2023		2022
Finance lease cost
Amortization of leased assets	Depreciation	$	119	$	119	$	238	$	238
Interest on lease liabilities	Interest expense	19		21		39		42
Operating lease cost	Operating expense1	1,762		2,999		3,605		5,662
Lease cost		$	1,901	$	3,139	$	3,883	$	5,942

_________________________________________

(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 June 30, 2023:


(in thousands)	Operating Leases		Finance Leases		Total
2023	$	2,534	$	55	$	2,589
2024	5,750		178		5,928
2025	5,421		180		5,601
2026	4,601		153		4,754
2027	3,750		155		3,905
2028 and thereafter	64,996		1,359		66,355
Total lease payments	87,052		2,080		89,132
Less: Interest	(34,104)		(565)		(34,669)
Present value of lease liabilities	$	52,948	$	1,515	$	54,463

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


	June 30, 2023		December 31, 2022
Operating leases
Weighted average remaining lease term (years)	19.4		20.0
Weighted average discount rate	4.8	%	4.5	%
Finance leases
Weighted average remaining lease term (years)	12.8		13.9
Weighted average discount rate	5.2	%	5.2	%


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Cash paid for operating lease liabilities	$	1,497	$	1,511	$	3,181	$	3,103
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases)	456		430		1,721		2,070

The Company recognized $4.7 million and $4.4 million of operating lease revenue for the three months ended June 30, 2023 and 2022, respectively, and $9.2 million and $9.8 million of operating lease revenue for the six months ended June 30, 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 comprehensive income (loss). 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 June 30, 2023:


(in thousands)	Operating Leases
2023	$	8,093
2024	15,110
2025	14,006
2026	10,941
2027	9,425
2028 and thereafter	22,794
Total	$	80,369

Leases

The Company leases 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 June 30,				Six Months Ended June 30,
(in thousands)		2023		2022		2023		2022
Finance lease cost
Amortization of leased assets	Depreciation	$	119	$	119	$	238	$	238
Interest on lease liabilities	Interest expense	19		21		39		42
Operating lease cost	Operating expense1	1,762		2,999		3,605		5,662
Lease cost		$	1,901	$	3,139	$	3,883	$	5,942

_________________________________________

(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 June 30, 2023:


(in thousands)	Operating Leases		Finance Leases		Total
2023	$	2,534	$	55	$	2,589
2024	5,750		178		5,928
2025	5,421		180		5,601
2026	4,601		153		4,754
2027	3,750		155		3,905
2028 and thereafter	64,996		1,359		66,355
Total lease payments	87,052		2,080		89,132
Less: Interest	(34,104)		(565)		(34,669)
Present value of lease liabilities	$	52,948	$	1,515	$	54,463

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


	June 30, 2023		December 31, 2022
Operating leases
Weighted average remaining lease term (years)	19.4		20.0
Weighted average discount rate	4.8	%	4.5	%
Finance leases
Weighted average remaining lease term (years)	12.8		13.9
Weighted average discount rate	5.2	%	5.2	%


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Cash paid for operating lease liabilities	$	1,497	$	1,511	$	3,181	$	3,103
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases)	456		430		1,721		2,070

Below is a summary of our minimum rental receipts under the lease agreements in place as of June 30, 2023:


(in thousands)	Operating Leases
2023	$	8,093
2024	15,110
2025	14,006
2026	10,941
2027	9,425
2028 and thereafter	22,794
Total	$	80,369

Leases

The Company leases 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 June 30,				Six Months Ended June 30,
(in thousands)		2023		2022		2023		2022
Finance lease cost
Amortization of leased assets	Depreciation	$	119	$	119	$	238	$	238
Interest on lease liabilities	Interest expense	19		21		39		42
Operating lease cost	Operating expense1	1,762		2,999		3,605		5,662
Lease cost		$	1,901	$	3,139	$	3,883	$	5,942

_________________________________________

(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 June 30, 2023:


(in thousands)	Operating Leases		Finance Leases		Total
2023	$	2,534	$	55	$	2,589
2024	5,750		178		5,928
2025	5,421		180		5,601
2026	4,601		153		4,754
2027	3,750		155		3,905
2028 and thereafter	64,996		1,359		66,355
Total lease payments	87,052		2,080		89,132
Less: Interest	(34,104)		(565)		(34,669)
Present value of lease liabilities	$	52,948	$	1,515	$	54,463

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


	June 30, 2023		December 31, 2022
Operating leases
Weighted average remaining lease term (years)	19.4		20.0
Weighted average discount rate	4.8	%	4.5	%
Finance leases
Weighted average remaining lease term (years)	12.8		13.9
Weighted average discount rate	5.2	%	5.2	%


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Cash paid for operating lease liabilities	$	1,497	$	1,511	$	3,181	$	3,103
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases)	456		430		1,721		2,070

Below is a summary of our minimum rental receipts under the lease agreements in place as of June 30, 2023:


(in thousands)	Operating Leases
2023	$	8,093
2024	15,110
2025	14,006
2026	10,941
2027	9,425
2028 and thereafter	22,794
Total	$	80,369