Leases

3 Months Ended

Mar. 31, 2023

10.

Leases

Operating and Financing Leases — We determine whether a contract contains a lease at contract inception. Lease liabilities are calculated using a discount rate based on our incremental borrowing rate at lease commencement. We have operating lease agreements primarily related to cell sites and office space. Certain cell site and office space leases have renewal option terms that have been deemed reasonably certain to be exercised. These renewal options extend a lease by up to 15 years. We recognize operating lease expense on a straight-line basis over the lease term. As of March 31, 2023, there were no significant leases which had not commenced.

The following is a summary of our lease expense included in the Unaudited Condensed Consolidated Statements of Operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Operating lease cost	$	3,938	$	3,546
Financing lease cost:
Amortization of leased assets		39		38
Interest on lease liabilities		5		13
Total lease cost	$	3,982	$	3,597

Other information regarding our leases is as follows (in thousands, except lease terms and discount rates):


	For the Three Months Ended March 31,
	2023			2022
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	3,969		$	3,496
Operating cash flows used in financing leases	$	5		$	13
Financing cash flows used in financing leases	$	57		$	43
Non-cash items:
Operating leases obtained	$	718		$	2,269
Financing leases obtained	$	—		$	—
Weighted average remaining lease term
Operating leases	8 years			9 years
Financing leases	1 year			1 year
Weighted average discount rate
Operating leases		6.7	%		6.9	%
Financing leases		16.6	%		17.9	%

Annual future minimum lease payments as of March 31, 2023 (in thousands):


Years ending December 31,	Operating Leases			Financing Leases
2023 (period from April 1 to December 31)	$	10,877		$	79
2024		15,256			4
2025		14,402			2
2026		14,229			—
2027		13,377			—
Thereafter		42,644			—
Total future minimum lease payments		110,785			85
Less: Amount representing interest		(24,075	)		(4	)
Present value of net minimum lease payments	$	86,710		$	81
Reported as of March 31, 2023
Accrued liabilities	$	9,445		$	76
Non-current operating lease liabilities		77,265			—
Other non-current liabilities		—			5
Total lease liabilities	$	86,710		$	81