Leases

6 Months Ended

Jun. 30, 2024

14.

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 June 30, 2024, 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 June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease cost	$	4,103	$	3,972	$	8,191	$	7,910
Financing lease cost:
Amortization of leased assets		14		39		28		78
Interest on lease liabilities		3		3		7		8
Total lease cost	$	4,120	$	4,014	$	8,226	$	7,996

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


	For the Six Months Ended June 30,
	2024			2023
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	8,408		$	7,982
Operating cash flows used in financing leases	$	7		$	8
Financing cash flows used in financing leases	$	3		$	97
Non-cash items:
Operating leases obtained	$	2,920		$	2,000
Financing leases obtained	$	170		$	—
Weighted average remaining lease term
Operating leases	6 years			7 years
Financing leases	3 years			1 year
Weighted average discount rate
Operating leases		6.8	%		6.7	%
Financing leases		9.0	%		15.3	%

Annual future minimum lease payments as of June 30, 2024 (in thousands):


Years ending December 31,	Operating Leases			Financing Leases
2024 (period from July 1 to December 31)	$	7,211		$	57
2025		16,699			62
2026		16,267			60
2027		14,702			15
2028		13,062			—
Thereafter		31,192			—
Total future minimum lease payments		99,133			194
Less: Amount representing interest		(19,102	)		(18	)
Present value of net minimum lease payments	$	80,031		$	176
Reported as of June 30, 2024
Accrued liabilities	$	10,560		$	78
Non-current operating lease liabilities		69,471			—
Other non-current liabilities		—			98
Total lease liabilities	$	80,031		$	176