XML 26 R15.htm IDEA: XBRL DOCUMENT

LEASES

6 Months Ended

Jun. 30, 2022

4. LEASES

Lessee Disclosure

The Company has operating and financing leases for towers, land, corporate offices, retail facilities, and data transport capacity. The lease terms are generally between three and 10 years, some of which include additional renewal options.

Supplemental lease information

The components of lease expense were as follows (in thousands):


	Three months ended				Six months ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Operating lease cost:
Operating lease cost	$	6,194	$	4,248	$	12,337	$	8,473
Short-term lease cost		645		729		1,154		1,137
Variable lease cost		642		1,016		1,446		2,080
Total operating lease cost	$	7,481	$	5,993	$	14,937	$	11,690

Finance lease cost:
Amortization of right-of-use asset	$	782	$	615	$	1,579	$	1,190
Variable costs		210		197		458		392
Interest costs		95		—		197		—
Total finance lease cost	$	1,087	$	812	$	2,234	$	1,582

During the six month periods ended June 30, 2022 and 2021, the Company paid $10.8 million and $7.6 million, respectively, for operating lease liabilities. During the six months ended June 30, 2022 and 2021, the Company recorded $5.1 million and $6.3 million, respectively, of operating lease liabilities arising from ROU assets.

At June 30, 2022, finance leases with a cost of $27.2 million and accumulated amortization of $12.0 million were included in property, plant and equipment. During the three months ended June 30, 2022, the Company paid $0.6 million of financing cash flows and $0.1 million of operating cash flows for finance lease liabilities and recorded $0.2 million of additional finance lease liabilities. Additionally, during the six months ended June 30, 2022, the Company disposed of a finance lease with a net book value of $1.0 million recording a loss for that amount. At June 30, 2022, finance leases had a lease liability of $5.8 million, of which $0.9 million was current.

During the six months ended June 30, 2021, the Company recorded $1.4 million of additional finance lease liabilities. At December 31, 2021, finance leases with a cost of $30.8 million and accumulated amortization of $12.1 million were included in property, plant and equipment.

The weighted average remaining lease terms and discount rates as of June 30, 2022 and December 31, 2021 are noted in the table below:


	June 30, 2022		December 31, 2021
Weighted-average remaining lease term
Operating leases		11.3 years		11.3 years
Financing leases		9.7 years		9.5 years

Weighted-average discount rate
Operating leases		5.4%		5.4%
Financing leases		6.5%		6.4%

Maturities of lease liabilities as of June 30, 2022 were as follows (in thousands):


	Operating Leases		Financing Leases
2022 (excluding the six months ended June 30, 2022)	$	11,451	$	651
2023		18,831		1,307
2024		17,294		1,198
2025		14,461		992
2026		10,349		547
Thereafter		69,233		3,145
Total lease payments		141,619		7,840
Less imputed interest		(41,765)		(2,085)
Total	$	99,854	$	5,755

Maturities of lease liabilities as of December 31, 2021 were as follows (in thousands):


	Operating Leases		Financing Leases
2022	$	20,474	$	1,269
2023		17,941		1,278
2024		16,634		1,169
2025		13,640		975
2026		9,610		484
Thereafter		65,902		3,145
Total lease payments		144,201		8,320
Less imputed interest		(42,333)		(2,268)
Total	$	101,868	$	6,052

As of June 30, 2022, the Company did not have any material operating or finance leases that have not yet commenced.

Lessor Disclosure

The Company is the lessor in agreements to lease the use of its network assets including its cell sites and buildings. For the three and six months ended June 30, 2022 the Company recorded $1.9 million and $2.9 million, respectively, of lease income from agreements in which the Company is the lessor. Lease income is classified as Carrier Services revenue in the statement of operations.

The following table presents the maturities of future undiscounted lease payments for the periods indicated:


2022 (excluding the six months ended June 30, 2022)	$	2,776
2023		5,024
2024		4,633
2025		4,518
2026		4,179
Thereafter		10,758
Total future lease payments	$	31,888