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LEASES

12 Months Ended

Dec. 31, 2022

4. LEASES

The Company has operating and financing leases for towers, land, corporate offices, retail facilities, and data transport capacity. The terms of the leases vary and some include additional renewal options.

Supplemental lease information

The components of lease expense were as follows (in thousands):


	Year ended
	December 31, 2022		December 31, 2021		December 31, 2020
Operating lease cost:
Operating lease cost	$	24,531	$	20,386	$	16,409
Short-term lease cost		2,575		2,402		2,712
Variable lease cost		3,186		3,874		4,059
Total operating lease cost	$	30,292	$	26,662	$	23,180

Finance lease cost:
Amortization of right-of-use asset	$	3,060	$	2,561	$	2,181
Variable costs		838		792		852
Interest costs		381		—		—
Total finance lease cost	$	4,279	$	3,353	$	3,033

During the year ended December 31, 2022 and December 31, 2021, the Company paid $22.6 million and $19.4 million, respectively, related to operating lease liabilities. Also during the years ended December 31, 2022 and December 31, 2021, the Company recorded $7.1 million and $11.8 million, respectively, of lease liabilities arising from ROU assets. In addition, during the year ended December 31, 2022, the Company acquired $1.0 million of operating lease assets and $1.0 million of lease liabilities in acquisitions. During the year ended December 31 2021 the Company acquired $60.4 million of operating lease right of use assets and $46.7 million of lease liabilities in acquisitions. Refer to Note 5.

At December 31, 2022, finance leases with a cost of $26.6 million and accumulated amortization of $13.5 million were included in property, plant and equipment. Additionally, during the year ended December 31, 2022, the Company disposed of finance leases with a net book value of $2.3 million recording a loss for $1.0 million. At December 31, 2022, finance leases had a lease liability of $5.5 million, of which $1.1 million was current. During the year ended December 31, 2022, the Company paid $1.1 million for finance lease liabilities and recorded $0.4 million of additional finance lease liabilities. At December 31, 2021, finance leases with a cost of $30.8 million and accumulated amortization of $12.1 million were included in property, plant and equipment. During the year ended December 31, 2021, the Company paid $2.2 million for finance lease liabilities and recorded $2.9 million of additional finance lease liabilities. At December 31, 2021, finance leases had a lease liability of $6.1 million, of which $0.9 million was current.

The weighted average remaining lease terms and discount rates as of December 31, 2022 and December 31, 2021 are noted in the table below:


	December 31, 2022		December 31, 2021
Weighted-average remaining lease term
Operating leases		12.4 years		11.3 years
Financing leases		9.3 years		9.5 years

Weighted-average discount rate
Operating leases		6.0%		5.4%
Financing leases		6.7%		6.4%

Maturities of lease liabilities as of December 31, 2022 were as follows (in thousands):


	Operating Leases		Financing Leases
2023		19,417		1,403
2024		17,836		1,342
2025		14,805		978
2026		10,505		504
2027		8,096		495
Thereafter		76,452		2,651
Total lease payments		147,111		7,373
Less imputed interest		(53,794)		(1,914)
Total	$	93,317	$	5,459

Maturities of lease liabilities as of December 31, 2021 were as follows (in thousands):


	Operating Leases		Financing Leases
2022	$	20,474	$	1,269
2023		17,941		1,278
2024		16,634		1,169
2025		13,640		975
2026		9,610		484
Thereafter		65,902		3,145
Total lease payments		144,201		8,320
Less imputed interest		(42,333)		(2,268)
Total	$	101,868	$	6,052

As of December 31, 2022, the Company did not have any material operating or finance leases that have not yet commenced.

Lessor Disclosure

The Company is the lessor in agreements to lease the use of its network assets including its cell sites and buildings. For the years ended December 31, 2022, 2021, and 2020 the Company recorded $6.3 million, $4.5 million, and $1.6 million, respectively, of lease income from agreements in which the Company is the lessor. Lease income is classified as Carrier Services revenue in the statement of operations.

The following table presents the maturities of future undiscounted lease payments for the periods indicated:


2023	$	6,222
2024		5,817
2025		5,604
2026		5,247
2027		4,199
Thereafter		9,309
Total future lease payments	$	36,398