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Note 13 - Leases | 9 Months Ended
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Sep. 30, 2019
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | NOTE 13 . LEASES We enter into operating lease contracts primarily for land and office space. Arrangements are evaluated at inception to determine whether such arrangements contain a lease. Operating leases include land lease contracts and contracts for the use of office space. In accordance with the transition guidance of ASC 842, such arrangements are included in our balance sheet as of January 1, 2019. Right of use assets, which we refer to as “ROU assets,” represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term. Certain of our operating lease agreements include rental payments based on a percentage of revenue and others include rental payments adjusted periodically for inflationary changes. Percentage rent contracts, in which lease expense is calculated as a percentage of advertising revenue, and payments due to changes in inflationary adjustments are included within variable rent expense, which is accounted for separately from periodic straight-line lease expense. Many operating lease contracts expire; however, we may continue to operate the leased assets after the rights and obligations of the lease agreements have expired. Such contracts, once expired, are considered to be leases and future expected payments are included in operating lease liabilities or ROU assets, using a 10 year extension period. Many of our leases entered into in connection with land provide options to extend the terms of the agreements. Generally, renewal periods are included in minimum lease payments when calculating the lease liabilities as, for most leases, we consider exercise of such options to be reasonably certain. As a result, optional terms and payments are included within the lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The implicit rate within our lease agreements is generally not determinable. As such, we use the incremental borrowing rate, which we refer to as "IBR," to determine the present value of lease payments at the commencement of the lease. The IBR, as defined in ASC 842, is "the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment." Operating Lease Cost Operating lease cost for the three and nine months ended September 30, 2019 are as follows:
|  | Three Months |  |  | Nine Months |  |
|  | Ended |  |  | Ended |  |
|  | September 30, 2019 |  |  | September 30, 2019 |  | Statement of Operations Classification
Lease cost |  | $ | 1,490,895 |  |  | $ | 4,432,628 |  | Cost of billboard revenues and general and administrative
Variable and short-term lease cost |  |  | 141,160 |  |  |  | 730,838 |  | Cost of billboard revenues and general and administrative
Total Lease Cost |  | $ | 1,632,055 |  |  | $ | 5,163,466 |  |
Supplemental cash flow information related to operating leases was as follows:
|  | Three Months |  |  | Nine Months |
|  | Ended |  |  | Ended |
|  | September 30, 2019 |  |  | September 30, 2019 |
Cash payments for operating leases |  | $ | 1,471,879 |  |  | $ | 4,407,269 |
New operating lease assets obtained in exchange for operating lease liabilities |  | $ | - |  |  | $ | 1,437,622 |
Operating Lease Assets and Liabilities
|  | September 30, 2019 |  | Balance Sheet Classification
Lease assets |  | $ | 50,251,439 |  | Other Assets: Right of use assets
Current lease liabilities |  | $ | 3,520,592 |  | Current Liabilities: Lease liabilities
Noncurrent lease liabilities |  |  | 45,177,722 |  | Long-term Liabilities: Lease liabilities
Total Lease Liabilities |  | $ | 48,698,314 |  |
Maturity of Operating Lease Liabilities
|  | September 30, 2019 |
2019 |  | $ | 3,999,277 |
2020 |  |  | 5,629,006 |
2021 |  |  | 5,484,871 |
2022 |  |  | 5,200,771 |
2023 |  |  | 4,827,537 |
Thereafter |  |  | 51,481,081 |
Total lease payments |  |  | 76,622,543 |
Less imputed interest |  |  | (27,924,229 | )
Present Value of Lease Liabilities |  | $ | 48,698,314 |
As of September 30, 2019 , our operating leases have a weighted-average remaining lease term of 16.98 years and a weighted-average discount rate of 4.88%. The future minimum obligations under operating leases in effect as of December 31, 2018 having a noncancellable term in excess of one year as determined prior to the adoption of ASC 842 are as follows:
2019 |  | $ | 4,495,984 |
2020 |  |  | 4,148,078 |
2021 |  |  | 3,824,585 |
2022 |  |  | 3,406,397 |
2023 |  |  | 3,287,293 |
Thereafter |  |  | 19,047,366 |
Total |  | $ | 38,209,703 |

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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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