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Leases | 9 Months Ended
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Sep. 30, 2021
Leases [Abstract] |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. These agreements include fixed rental payments as well as variable rental payments, such as those based on relevant inflation indices. The accounting lease term includes optional renewal periods that we are reasonably certain to exercise based on our assessment of relevant contractual and economic factors. The related lease payments are discounted at lease commencement using the Company's incremental borrowing rate in order to measure the lease liability and right of use asset. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the observable unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. At September 30, 2021, our operating leases had a weighted average remaining lease term of 20.2 years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of 13.5 years and a weighted average discount rate of 5.2%. During each of the three months ended September 30, 2021 and 2020, we recognized $2.3 million and $2.3 million of operating lease expense, respectively. We recognized $0.1 million and $0.1 million of interest and depreciation expense on finance leases during the three months ended September 30, 2021 and 2020, respectively. Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $1.4 million and $1.2 million of operating lease payments during the three months ended September 30, 2021 and 2020, respectively. We also obtained $2.2 million and $2.4 million of leased assets in exchange for new operating lease liabilities recognized during the three months ended September 30, 2021 and 2020, respectively. The following table summarizes the expected maturity of lease liabilities at September 30, 2021:
(in thousands) |  | Operating Leases |  | Finance Leases |  | Total
2021 |  | $ | 1,487 |  |  | $ | 63 |  |  | $ | 1,550 |
2022 |  | 5,562 |  |  | 175 |  |  | 5,737 |
2023 |  | 5,014 |  |  | 177 |  |  | 5,191 |
2024 |  | 4,661 |  |  | 179 |  |  | 4,840 |
2025 |  | 4,457 |  |  | 181 |  |  | 4,638 |
2026 and thereafter |  | 68,634 |  |  | 1,551 |  |  | 70,185 |
Total lease payments |  | 89,815 |  |  | 2,326 |  |  | 92,141 |
Less: Interest |  | 35,381 |  |  | 654 |  |  | 36,035 |
Present value of lease liabilities |  | $ | 54,434 |  |  | $ | 1,672 |  |  | $ | 56,106 |
We recognized $2.4 million and $2.7 million of operating lease revenue during the three months ended September 30, 2021 and 2020, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at September 30, 2021:
(in thousands) |  | Operating Leases
2021 |  | $ | 3,474 |
2022 |  | 13,749 |
2023 |  | 12,363 |
2024 |  | 11,614 |
2025 |  | 10,659 |
2026 and thereafter |  | 36,957 |
Total |  | $ | 88,816 |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. These agreements include fixed rental payments as well as variable rental payments, such as those based on relevant inflation indices. The accounting lease term includes optional renewal periods that we are reasonably certain to exercise based on our assessment of relevant contractual and economic factors. The related lease payments are discounted at lease commencement using the Company's incremental borrowing rate in order to measure the lease liability and right of use asset. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the observable unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. At September 30, 2021, our operating leases had a weighted average remaining lease term of 20.2 years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of 13.5 years and a weighted average discount rate of 5.2%. During each of the three months ended September 30, 2021 and 2020, we recognized $2.3 million and $2.3 million of operating lease expense, respectively. We recognized $0.1 million and $0.1 million of interest and depreciation expense on finance leases during the three months ended September 30, 2021 and 2020, respectively. Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $1.4 million and $1.2 million of operating lease payments during the three months ended September 30, 2021 and 2020, respectively. We also obtained $2.2 million and $2.4 million of leased assets in exchange for new operating lease liabilities recognized during the three months ended September 30, 2021 and 2020, respectively. The following table summarizes the expected maturity of lease liabilities at September 30, 2021:
(in thousands) |  | Operating Leases |  | Finance Leases |  | Total
2021 |  | $ | 1,487 |  |  | $ | 63 |  |  | $ | 1,550 |
2022 |  | 5,562 |  |  | 175 |  |  | 5,737 |
2023 |  | 5,014 |  |  | 177 |  |  | 5,191 |
2024 |  | 4,661 |  |  | 179 |  |  | 4,840 |
2025 |  | 4,457 |  |  | 181 |  |  | 4,638 |
2026 and thereafter |  | 68,634 |  |  | 1,551 |  |  | 70,185 |
Total lease payments |  | 89,815 |  |  | 2,326 |  |  | 92,141 |
Less: Interest |  | 35,381 |  |  | 654 |  |  | 36,035 |
Present value of lease liabilities |  | $ | 54,434 |  |  | $ | 1,672 |  |  | $ | 56,106 |
We recognized $2.4 million and $2.7 million of operating lease revenue during the three months ended September 30, 2021 and 2020, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at September 30, 2021:
(in thousands) |  | Operating Leases
2021 |  | $ | 3,474 |
2022 |  | 13,749 |
2023 |  | 12,363 |
2024 |  | 11,614 |
2025 |  | 10,659 |
2026 and thereafter |  | 36,957 |
Total |  | $ | 88,816 |
Leases | Leases We lease various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores, and office facilities for use in our business. These agreements include fixed rental payments as well as variable rental payments, such as those based on relevant inflation indices. The accounting lease term includes optional renewal periods that we are reasonably certain to exercise based on our assessment of relevant contractual and economic factors. The related lease payments are discounted at lease commencement using the Company's incremental borrowing rate in order to measure the lease liability and right of use asset. The incremental borrowing rate is determined using a portfolio approach based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the observable unsecured borrowing rate and risk-adjusts that rate to approximate a collateralized rate. At September 30, 2021, our operating leases had a weighted average remaining lease term of 20.2 years and a weighted average discount rate of 4.4%. Our finance leases had a weighted average remaining lease term of 13.5 years and a weighted average discount rate of 5.2%. During each of the three months ended September 30, 2021 and 2020, we recognized $2.3 million and $2.3 million of operating lease expense, respectively. We recognized $0.1 million and $0.1 million of interest and depreciation expense on finance leases during the three months ended September 30, 2021 and 2020, respectively. Operating lease expense is presented in cost of service or selling, general and administrative expense based on the use of the relevant facility. Variable lease payments and short-term lease expense were both immaterial. We remitted $1.4 million and $1.2 million of operating lease payments during the three months ended September 30, 2021 and 2020, respectively. We also obtained $2.2 million and $2.4 million of leased assets in exchange for new operating lease liabilities recognized during the three months ended September 30, 2021 and 2020, respectively. The following table summarizes the expected maturity of lease liabilities at September 30, 2021:
(in thousands) |  | Operating Leases |  | Finance Leases |  | Total
2021 |  | $ | 1,487 |  |  | $ | 63 |  |  | $ | 1,550 |
2022 |  | 5,562 |  |  | 175 |  |  | 5,737 |
2023 |  | 5,014 |  |  | 177 |  |  | 5,191 |
2024 |  | 4,661 |  |  | 179 |  |  | 4,840 |
2025 |  | 4,457 |  |  | 181 |  |  | 4,638 |
2026 and thereafter |  | 68,634 |  |  | 1,551 |  |  | 70,185 |
Total lease payments |  | 89,815 |  |  | 2,326 |  |  | 92,141 |
Less: Interest |  | 35,381 |  |  | 654 |  |  | 36,035 |
Present value of lease liabilities |  | $ | 54,434 |  |  | $ | 1,672 |  |  | $ | 56,106 |
We recognized $2.4 million and $2.7 million of operating lease revenue during the three months ended September 30, 2021 and 2020, respectively, related to the cell site colocation space and dedicated fiber optic strands that we lease to our customers, which is included in Service revenue and other in the consolidated statements of comprehensive income. Substantially all of our lease revenue relates to fixed lease payments. Below is a summary of our minimum rental receipts under the lease agreements in place at September 30, 2021:
(in thousands) |  | Operating Leases
2021 |  | $ | 3,474 |
2022 |  | 13,749 |
2023 |  | 12,363 |
2024 |  | 11,614 |
2025 |  | 10,659 |
2026 and thereafter |  | 36,957 |
Total |  | $ | 88,816 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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