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Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Leases

The Company leases various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores and office facilities for use in our business.

The components of lease costs were as follows:

			Classification						Three Months Ended June 30,												Six Months Ended June 30,
(in thousands)									2024						2023						2024						2023
Finance lease cost
Amortization of leased assets			Depreciation						$	171					$	119					$	290					$	238
Interest on lease liabilities			Interest expense						24						19						43						39
Operating lease cost			Operating expense1						1,104						792						1,840						1,648
Lease cost									$	1,299					$	930					$	2,173					$	1,925

_________________________________________

(1)Operating lease expense is presented in cost of services or selling, general and administrative expense based on the use of the relevant facility.

The following table summarizes the expected maturity of lease liabilities as of June 30, 2024:

(in thousands)						Operating Leases						Finance Leases						Total
2024 (remainder of the year)						$	1,969					$	166					$	2,135
2025						3,523						385						3,908
2026						2,640						314						2,954
2027						1,777						164						1,941
2028						1,487						158						1,645
2029 and thereafter						8,206						1,201						9,407
Total lease payments						19,602						2,388						21,990
Less: Interest						(5,033)						(518)						(5,551)
Present value of lease liabilities						$	14,569					$	1,870					$	16,439

Other information related to operating and finance leases was as follows:

			June 30, 2024						December 31, 2023
Operating leases
Weighted average remaining lease term (years)			8.6						7.1
Weighted average discount rate			5.9		%				5.0		%
Finance leases
Weighted average remaining lease term (years)			9.7						12.3
Weighted average discount rate			5.3		%				5.2		%

			Three Months Ended June 30,												Six Months Ended June 30,
(in thousands)			2024						2023						2024						2023
Cash paid for operating lease liabilities			$	1,053					$	725					$	1,818					$	1,602
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases)			247						194						1,984						1,687

The Company also has arrangements which generate lease revenue through operating lease agreements for the use of spare fiber capacity of its fiber network assets. Contract terms for these arrangements can range from 1 to 40 years and are billed monthly. Lease revenue from these arrangements was $1.7 million and $2.4 million for the three and six months ended June 30, 2024, respectively, and $0.6 million and $1.3 million for the three and six months ended June 30, 2023, respectively. These amounts are presented in service revenue and other in the Company’s unaudited condensed consolidated statements of comprehensive (loss) income. Contractual minimum rental receipts expected under the lease agreements in place as of June 30, 2024 is as follows:

(in thousands)						Operating Leases
2024 (remainder of the year)						$	2,721
2025						4,711
2026						3,945
2027						3,596
2028						3,418
2029 and thereafter						23,606
Total						$	41,997

Leases

Leases

The Company leases various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores and office facilities for use in our business.

The components of lease costs were as follows:

			Classification						Three Months Ended June 30,												Six Months Ended June 30,
(in thousands)									2024						2023						2024						2023
Finance lease cost
Amortization of leased assets			Depreciation						$	171					$	119					$	290					$	238
Interest on lease liabilities			Interest expense						24						19						43						39
Operating lease cost			Operating expense1						1,104						792						1,840						1,648
Lease cost									$	1,299					$	930					$	2,173					$	1,925

_________________________________________

(1)Operating lease expense is presented in cost of services or selling, general and administrative expense based on the use of the relevant facility.

The following table summarizes the expected maturity of lease liabilities as of June 30, 2024:

(in thousands)						Operating Leases						Finance Leases						Total
2024 (remainder of the year)						$	1,969					$	166					$	2,135
2025						3,523						385						3,908
2026						2,640						314						2,954
2027						1,777						164						1,941
2028						1,487						158						1,645
2029 and thereafter						8,206						1,201						9,407
Total lease payments						19,602						2,388						21,990
Less: Interest						(5,033)						(518)						(5,551)
Present value of lease liabilities						$	14,569					$	1,870					$	16,439

Other information related to operating and finance leases was as follows:

			June 30, 2024						December 31, 2023
Operating leases
Weighted average remaining lease term (years)			8.6						7.1
Weighted average discount rate			5.9		%				5.0		%
Finance leases
Weighted average remaining lease term (years)			9.7						12.3
Weighted average discount rate			5.3		%				5.2		%

			Three Months Ended June 30,												Six Months Ended June 30,
(in thousands)			2024						2023						2024						2023
Cash paid for operating lease liabilities			$	1,053					$	725					$	1,818					$	1,602
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases)			247						194						1,984						1,687

The Company also has arrangements which generate lease revenue through operating lease agreements for the use of spare fiber capacity of its fiber network assets. Contract terms for these arrangements can range from 1 to 40 years and are billed monthly. Lease revenue from these arrangements was $1.7 million and $2.4 million for the three and six months ended June 30, 2024, respectively, and $0.6 million and $1.3 million for the three and six months ended June 30, 2023, respectively. These amounts are presented in service revenue and other in the Company’s unaudited condensed consolidated statements of comprehensive (loss) income. Contractual minimum rental receipts expected under the lease agreements in place as of June 30, 2024 is as follows:

(in thousands)						Operating Leases
2024 (remainder of the year)						$	2,721
2025						4,711
2026						3,945
2027						3,596
2028						3,418
2029 and thereafter						23,606
Total						$	41,997

Leases

Leases

The Company leases various broadband network and telecommunications sites, fiber optic cable routes, warehouses, retail stores and office facilities for use in our business.

The components of lease costs were as follows:

			Classification						Three Months Ended June 30,												Six Months Ended June 30,
(in thousands)									2024						2023						2024						2023
Finance lease cost
Amortization of leased assets			Depreciation						$	171					$	119					$	290					$	238
Interest on lease liabilities			Interest expense						24						19						43						39
Operating lease cost			Operating expense1						1,104						792						1,840						1,648
Lease cost									$	1,299					$	930					$	2,173					$	1,925

_________________________________________

(1)Operating lease expense is presented in cost of services or selling, general and administrative expense based on the use of the relevant facility.

The following table summarizes the expected maturity of lease liabilities as of June 30, 2024:

(in thousands)						Operating Leases						Finance Leases						Total
2024 (remainder of the year)						$	1,969					$	166					$	2,135
2025						3,523						385						3,908
2026						2,640						314						2,954
2027						1,777						164						1,941
2028						1,487						158						1,645
2029 and thereafter						8,206						1,201						9,407
Total lease payments						19,602						2,388						21,990
Less: Interest						(5,033)						(518)						(5,551)
Present value of lease liabilities						$	14,569					$	1,870					$	16,439

Other information related to operating and finance leases was as follows:

			June 30, 2024						December 31, 2023
Operating leases
Weighted average remaining lease term (years)			8.6						7.1
Weighted average discount rate			5.9		%				5.0		%
Finance leases
Weighted average remaining lease term (years)			9.7						12.3
Weighted average discount rate			5.3		%				5.2		%

			Three Months Ended June 30,												Six Months Ended June 30,
(in thousands)			2024						2023						2024						2023
Cash paid for operating lease liabilities			$	1,053					$	725					$	1,818					$	1,602
Operating lease right-of-use assets obtained in exchange for new lease liabilities (includes new leases or modification of existing leases)			247						194						1,984						1,687

The Company also has arrangements which generate lease revenue through operating lease agreements for the use of spare fiber capacity of its fiber network assets. Contract terms for these arrangements can range from 1 to 40 years and are billed monthly. Lease revenue from these arrangements was $1.7 million and $2.4 million for the three and six months ended June 30, 2024, respectively, and $0.6 million and $1.3 million for the three and six months ended June 30, 2023, respectively. These amounts are presented in service revenue and other in the Company’s unaudited condensed consolidated statements of comprehensive (loss) income. Contractual minimum rental receipts expected under the lease agreements in place as of June 30, 2024 is as follows:

(in thousands)						Operating Leases
2024 (remainder of the year)						$	2,721
2025						4,711
2026						3,945
2027						3,596
2028						3,418
2029 and thereafter						23,606
Total						$	41,997

X

- References

No definition available.

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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
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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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
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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- Definition

The entire disclosure for lessor's operating leases.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 30
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-30/tableOfContent

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