Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

NOTE 9. LEASES

We have operating and finance leases for certain facilities and equipment used in operations. Our leases generally have remaining lease terms of up to 15 years. Some of our operating leases (e.g., for towers and real estate) contain renewal options that may be exercised, and some of our leases include options to terminate the lease within one year.

We have recognized a right-of-use asset for both operating and finance leases and an operating lease liability that represents the present value of our obligation to make payments over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases, which was determined using a portfolio approach based on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate in the currency of the lease, which will be updated on a quarterly basis for measurement of new lease liabilities.

The components of lease expense were as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
Operating lease cost	$	1,412	$	1,368	$	4,169	$	4,072
Finance lease cost:
Amortization of leased assets in    property, plant and equipment	$	59	$	55	$	178	$	149
Interest on lease obligation	47		39		140		120
Total finance lease cost	$	106	$	94	$	318	$	269

The following table provides supplemental cash flows information related to leases:

	Nine months ended
	September 30,
	2023		2022
Cash Flows from Operating Activities
Cash paid for amounts included in lease obligations:
Operating cash flows for operating leases	$	3,496	$	3,507
Supplemental Lease Cash Flow Disclosures
Operating lease right-of-use assets obtained in exchange for new operating lease obligations	1,980		2,775

The following tables set forth supplemental balance sheet information related to leases:

	September 30, 2023		December 31, 2022
Operating Leases
Operating lease right-of-use assets	$	21,001	$	21,814
Accounts payable and accrued liabilities	$	3,538	$	3,547
Operating lease obligation	17,730		18,659
Total operating lease obligation	$	21,268	$	22,206
Finance Leases
Property, plant and equipment, at cost	$	2,962	$	2,770
Accumulated depreciation and amortization	(1,424)		(1,224)
Property, plant and equipment, net	$	1,538	$	1,546
Current portion of long-term debt	$	178	$	170
Long-term debt	1,663		1,647
Total finance lease obligation	$	1,841	$	1,817

	September 30,
	2023		2022
Weighted-Average Remaining Lease Term (years)
Operating leases	7.8		8.1
Finance leases	7.3		7.9
Weighted-Average Discount Rate
Operating leases	4.0	%	3.6	%
Finance leases	8.2	%	7.9	%

The following table provides the expected future minimum maturities of lease obligations:

At September 30, 2023	Operating		Finance
	Leases		Leases
Remainder of 2023	$	1,182	$	82
2024	4,544		326
2025	3,943		332
2026	3,290		325
2027	2,662		323
Thereafter	9,866		1,147
Total lease payments	25,487		2,535
Less: imputed interest	(4,219)		(694)
Total	$	21,268	$	1,841

Leases

NOTE 9. LEASES

We have operating and finance leases for certain facilities and equipment used in operations. Our leases generally have remaining lease terms of up to 15 years. Some of our operating leases (e.g., for towers and real estate) contain renewal options that may be exercised, and some of our leases include options to terminate the lease within one year.

We have recognized a right-of-use asset for both operating and finance leases and an operating lease liability that represents the present value of our obligation to make payments over the lease term. The present value of the lease payments is calculated using the incremental borrowing rate for operating and finance leases, which was determined using a portfolio approach based on the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. We use the unsecured borrowing rate and risk-adjust that rate to approximate a collateralized rate in the currency of the lease, which will be updated on a quarterly basis for measurement of new lease liabilities.

The components of lease expense were as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2023		2022		2023		2022
Operating lease cost	$	1,412	$	1,368	$	4,169	$	4,072
Finance lease cost:
Amortization of leased assets in    property, plant and equipment	$	59	$	55	$	178	$	149
Interest on lease obligation	47		39		140		120
Total finance lease cost	$	106	$	94	$	318	$	269

The following table provides supplemental cash flows information related to leases:

	Nine months ended
	September 30,
	2023		2022
Cash Flows from Operating Activities
Cash paid for amounts included in lease obligations:
Operating cash flows for operating leases	$	3,496	$	3,507
Supplemental Lease Cash Flow Disclosures
Operating lease right-of-use assets obtained in exchange for new operating lease obligations	1,980		2,775

The following tables set forth supplemental balance sheet information related to leases:

	September 30, 2023		December 31, 2022
Operating Leases
Operating lease right-of-use assets	$	21,001	$	21,814
Accounts payable and accrued liabilities	$	3,538	$	3,547
Operating lease obligation	17,730		18,659
Total operating lease obligation	$	21,268	$	22,206
Finance Leases
Property, plant and equipment, at cost	$	2,962	$	2,770
Accumulated depreciation and amortization	(1,424)		(1,224)
Property, plant and equipment, net	$	1,538	$	1,546
Current portion of long-term debt	$	178	$	170
Long-term debt	1,663		1,647
Total finance lease obligation	$	1,841	$	1,817

	September 30,
	2023		2022
Weighted-Average Remaining Lease Term (years)
Operating leases	7.8		8.1
Finance leases	7.3		7.9
Weighted-Average Discount Rate
Operating leases	4.0	%	3.6	%
Finance leases	8.2	%	7.9	%

The following table provides the expected future minimum maturities of lease obligations:

At September 30, 2023	Operating		Finance
	Leases		Leases
Remainder of 2023	$	1,182	$	82
2024	4,544		326
2025	3,943		332
2026	3,290		325
2027	2,662		323
Thereafter	9,866		1,147
Total lease payments	25,487		2,535
Less: imputed interest	(4,219)		(694)
Total	$	21,268	$	1,841