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Leases
9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

 


Note 10:  Leases

The Company as a Lessee

 

The Company has operating and finance leases for office space, vehicles, tower facilities, antenna sites, studio and other real estate properties and equipment. The Company’s leases have remaining lease terms of one month to 94 years, some of which may include options to extend the leases from two to 99 years, and some of which may include options to terminate the leases within one year. The depreciable lives of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Lease contracts that the Company has executed but which have not yet commenced as of September 30, 2020 were not material and are excluded.

 

Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):

 

 

 

Balance Sheet Classification

 

September 30, 2020

 

 

December 31, 2019

 

Operating leases

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use assets, net

 

Other noncurrent assets, net

 

$

219,380

 

 

$

235,285

 

   Current lease liabilities

 

Other current liabilities

 

$

34,434

 

 

$

35,043

 

   Noncurrent lease liabilities

 

Other noncurrent liabilities

 

$

171,639

 

 

$

185,722

 

 

 

 

 

 

 

 

 

 

 

 

Finance leases

 

 

 

 

 

 

 

 

 

 

Finance lease right-of-use assets, net of accumulated depreciation of $3,165 as of September 30, 2020 and $2,526 as of December 31, 2019

 

Property, plant and equipment, net

 

$

7,825

 

 

$

8,138

 

   Current lease liabilities

 

Other current liabilities

 

$

1,006

 

 

$

900

 

   Noncurrent lease liabilities

 

Other noncurrent liabilities

 

$

14,417

 

 

$

15,177

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term

 

 

 

 

 

 

 

 

 

 

Operating leases

 

 

 

6.8 years

 

 

7.4 years

 

Finance leases

 

 

 

10.9 years

 

 

11.6 years

 

Weighted Average Discount Rate

 

 

 

 

 

 

 

 

 

 

Operating leases

 

 

 

 

5.1

%

 

 

5.3

%

Finance leases

 

 

 

 

5.7

%

 

 

5.7

%

 

Operating lease expense for the three months ended September 30, 2020 was $11.6 million, of which $6.0 million and $5.6 million were included in Direct operating and Selling, general and administrative expenses, respectively, excluding depreciation and amortization, in the accompanying Condensed Consolidated Statements of Operations. Operating lease expense for the three months ended September 30, 2019 was $5.4 million, of which $3.1 million and $2.3 million are included in Direct operating and Selling, general and administrative expenses, respectively, excluding depreciation and amortization, in the accompanying Condensed Consolidated Statements of Operations.

 

Operating lease expense for the nine months ended September 30, 2020 was $35.6 million, of which $18.3 million and $17.3 million were included in Direct operating and Selling, general and administrative expenses, respectively, excluding depreciation and amortization, in the accompanying Condensed Consolidated Statements of Operations. Operating lease expense for the nine months ended September 30, 2019 was $16.2 million, of which $9.3 million and $7.0 million were included in Direct operating and Selling, general and administrative expenses, respectively, excluding depreciation and amortization, in the accompanying Condensed Consolidated Statements of Operations.

Supplemental cash flow information related to leases was as follows (in thousands):

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

   Operating cash flows from operating leases

 

$

35,455

 

 

$

16,754

 

   Operating cash flows from finance leases

 

 

676

 

 

 

712

 

   Financing cash flows from finance leases

 

 

652

 

 

 

610

 

Future minimum lease payments under non-cancellable leases as of September 30, 2020 were as follows (in thousands):

 

 

 

Operating Leases

 

 

Finance Leases

 

Remainder of 2020

 

$

11,506

 

 

$

467

 

2021

 

 

42,725

 

 

 

1,843

 

2022

 

 

39,858

 

 

 

1,803

 

2023

 

 

36,577

 

 

 

1,818

 

2024

 

 

33,953

 

 

 

1,833

 

Thereafter

 

 

82,990

 

 

 

13,363

 

   Total future minimum lease payments

 

 

247,609

 

 

 

21,127

 

Less: imputed interest

 

 

(41,536

)

 

 

(5,704

)

Total

 

$

206,073

 

 

$

15,423

 

The Company as a Lessor

 

The Company has various arrangements for which it is the lessor for the use of its tower space. These leases meet the criteria for operating lease classification, but the associated lease income is not material. As such, the Company has applied the practical expedient to combine lease and non-lease components in its arrangements as lessor.