LEASES

12 Months Ended

Dec. 31, 2023

Leasing Guidance

The Company recognizes the assets and liabilities that arise from leases on the commencement date of the lease. The Company recognizes the liability to make lease payments as a lease liability as well as a right-of-use ("ROU") asset representing the right to use the underlying asset for the lease term, on the consolidated balance sheet.

Leasing Transactions

The Company’s leased assets primarily include real estate, broadcasting towers and equipment. The Company’s leases have remaining lease terms of less than 1 year up to 30 years, some of which include one or more options to extend the leases, with renewal terms up to fifteen years and some of which include options to terminate the leases within the next year. Many of the Company’s leases include options to extend the terms of the agreements. Generally, renewal options are excluded when calculating the lease liabilities, as the Company does not consider the exercise of such options to be reasonably certain. Unless a renewal option is considered reasonably assured, the optional terms and related payments are not included within the lease liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company’s operating leases are reflected on the Company’s balance sheet within the Operating lease right-of-use assets line item and the related current and non-current liabilities are included within the Operating lease liabilities and Operating lease liabilities, net of current portion line items, respectively. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from leases. Operating lease ROU assets and liabilities are recognized at commencement date based upon the present value of lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term.

As the rate implicit in the lease is not readily determinable for the Company’s operating leases, the Company generally uses an incremental borrowing rate based upon information available at the commencement date to determine the present value

of future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. In order to measure the operating lease liability and determine the present value of lease payments, the Company estimated what the incremental borrowing rate was for each lease using an applicable treasury rate compatible to the remaining life of the lease and the applicable margin for the Company’s Revolver.

In determining whether a contract is or contains a lease at inception of a contract, the Company considers all relevant facts and circumstances, including whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. This consideration involves judgment with respect to whether the Company has the right to obtain substantially all of the economic benefits from the use of the identified asset and whether the Company has the right to direct the use of the identified asset.

Lease Expense

The table below provides the components of lease expense included within the consolidated statements of operations:


	Year Ended December 31,
Lease Cost	2023		2022
	(amounts in thousands)
Operating lease cost	$	49,872	$	50,379
Variable lease cost	13,467		11,101
Short-term lease cost	—		—
Non-cash impairment of ROU Assets and other costs related to impairment of leases	14,111		3,328
Total lease cost	$	77,450	$	64,808

Supplemental Lease Information

Supplemental cash flow information related to leases is as follows:


	Year Ended December 31,
Description	2023		2022
	(amounts in thousands)

Cash paid for amounts included in measurement of lease liabilities	$	54,614	$	54,487

Lease liabilities arising from obtaining right-of-use assets	$	51,281	$	33,185

Supplemental balance sheet information related to leases is as follows:


	As of December 31,
Description	2023		2022
	(amounts in thousands)
Operating Leases
Operating leases right-of-use assets	$	202,010	$	211,022
Operating lease liabilities (current)	37,631		40,815
Operating lease liabilities (noncurrent)	201,802		196,654
Total operating lease liabilities	$	239,433	$	237,469


	As of December 31
	2023		2022
Operating Leases
Weighted average remaining lease term	6.56 years		7 years
Weighed average discount rate	5.11	%	4.7	%

Maturities

The aggregate maturities of the Company’s lease liabilities as of December 31, 2023, are as follows:



	Operating Lease Maturities
	(amounts in thousands)
For the years ending December 31:
2024	$	53,118
2025	49,808
2026	44,182
2027	37,828
2028	29,029
Thereafter	70,252
Total lease payments	284,217
Less: imputed interest	(44,784)
Total	$	239,433