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Leases
 9 Months Ended
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 LeasesFinance LeasesTotal
2021$1,487 $63 $1,550 
20225,562 175 5,737 
20235,014 177 5,191 
20244,661 179 4,840 
20254,457 181 4,638 
2026 and thereafter68,634 1,551 70,185 
Total lease payments89,815 2,326 92,141 
Less: Interest35,381 654 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 
202213,749 
202312,363 
202411,614 
202510,659 
2026 and thereafter36,957 
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 LeasesFinance LeasesTotal
2021$1,487 $63 $1,550 
20225,562 175 5,737 
20235,014 177 5,191 
20244,661 179 4,840 
20254,457 181 4,638 
2026 and thereafter68,634 1,551 70,185 
Total lease payments89,815 2,326 92,141 
Less: Interest35,381 654 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 
202213,749 
202312,363 
202411,614 
202510,659 
2026 and thereafter36,957 
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 LeasesFinance LeasesTotal
2021$1,487 $63 $1,550 
20225,562 175 5,737 
20235,014 177 5,191 
20244,661 179 4,840 
20254,457 181 4,638 
2026 and thereafter68,634 1,551 70,185 
Total lease payments89,815 2,326 92,141 
Less: Interest35,381 654 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 
202213,749 
202312,363 
202411,614 
202510,659 
2026 and thereafter36,957 
Total $88,816