ACCOUNTING FOR LEASES

6 Months Ended

Jun. 30, 2021

ACCOUNTING FOR LEASES

ACCOUNTING FOR LEASES

NOTE 2. ACCOUNTING FOR LEASES

For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payments over the lease term. Many of the Company’s leases include rental escalation clauses, renewal options and/or termination options that are factored into its determination of lease payments when appropriate. As permitted by ASC 842, the Company elected not to separate non-lease components from their related lease components.

As of June 30, 2021, the Company’s right of use assets consisted of the Parking Lot Lease, the Driveway Lease (as defined and discussed in NOTE 5. RELATED PARTY TRANSACTIONS), as well as certain billboard leases.

Upon adoption of the new lease standard, incremental borrowing rates used for existing leases were established using the rates in effect as of the lease inception or modification date. The weighted-average incremental borrowing rate of the leases presented in the lease liability as of June 30, 2021 was 4.33%.

The weighted-average remaining lease term of the leases presented in the lease liability as of June 30, 2021 was 21.0 years.

Cash paid related to the operating leases presented in the lease liability for each of the six months ended June 30, 2021 and 2020, was $0.7 million.