The Company’s leases are considered operating leases and primarily consist of real estate such as office space, broadcasting towers, land and land easements. The operating leases are reflected within the consolidated balance sheet as Operating leases right of use asset with the related liability presented as Operating lease liabilities and Long-term operating lease liabilities. Lease expense is recognized on a straight-line basis over the lease term. Generally, lease terms include options to renew or extend the lease. Unless the renewal option is considered reasonably certain, the exercise of any such options has been excluded from the calculation of lease liabilities.

The following table summarizes the expected future payments related to lease liabilities as of March 31, 2025:


(in thousands)
Remainder of 2025	$	7,809
2026		9,178
2027		7,322
2028		6,572
2029		6,074
Thereafter		24,356
Total minimum payments	$	61,311
Less amounts representing interest		(13,077	)
Present value of minimum lease payments		48,234
Less current operating lease liabilities		(7,631	)
Long-term operating lease liabilities	$	40,603

The Company’s existing leases have remaining terms of less than one year up to 26 years. The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of March 31, 2025 were 8.4 years and 6.3%, respectively. The weighted average remaining lease term and the weighted average discount rate used to calculate the Company’s lease liabilities as of December 31, 2024 were 8.4 years and 6.3%, respectively.

The Company’s corporate headquarters and main operational offices for its audio operations are currently located in Burbank, California. The Company's corporate headquarters and main operational offices for its audio operations were previously located in Santa Monica, California. The Company occupied approximately 38,000 square feet of space in the building housing its previous corporate headquarters under a lease, as amended, that was scheduled to expire on January 31, 2034. The Company's management decided to vacate the facility in February 2025 and cease making further lease payments. As a result, the Company recorded a loss on lease abandonment charges of $16.1 million related to the right of use asset associated with this lease, and $9.1 related to leasehold improvements associated with this lease. As of March 31, 2025, the Company's condensed consolidated balance sheet included $1.6 million of operating lease liabilities and $21.1 million of long-term operating lease liabilities related to this lease. See Note 8.

The following table summarizes lease payments and supplemental non-cash disclosures:


	Three-Month Period Ended March 31,
(in thousands)	2025		2024
Cash paid for amounts included in lease liabilities:

Operating cash flows from operating leases	$	2,435	$	2,856
Non-cash additions to operating lease assets	$	-	$	1,607

The following table summarizes the components of lease expense:


	Three-Month Period
	Ended March 31,
(in thousands)	2025		2024
Operating lease cost	$	2,339	$	2,211
Variable lease cost		101		445
Short-term lease cost		402		233
Total lease cost	$	2,842	$	2,889

For the three-month period ended March 31, 2025, lease cost of $1.4 million, $1.2 million and $0.2 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively. For the three-month period ended March 31, 2024, lease cost of $1.4 million, $1.2 million and $0.3 million, were recorded to direct operating expenses, selling, general and administrative expenses and corporate expenses, respectively.