XML 28 R19.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Leases | 12 Months Ended
--- | ---
Dec. 31, 2019
Leases [Abstract] |
Leases |
(11) | Leases
The Company leases office space in several markets. Some leases are for the entire building , while others are for certain office space in a building. The Company also rents land beneath a building owned by the Company in Augusta, GA. The Company leases radio towers for the majority of its radio stations. Leases for FM radio stations are generally to install broadcast equipment on a radio tower and in a transmitter building adjacent to the radio tower. Leases for AM radio stations are generally for the entire radio tower array and the adjacent transmitter building. The Company also leases tower space to install translator equipment. Certain rental agreements for office space and radio towers contain non-lease components such as common area maintenance and utilities. The Company elected to apply the practical expedient that permits lessees to make an accounting policy election to account for each separate lease component of an office space and radio tower lease contract and its associated non-lease components as a single lease component. Certain rental agreements for office space and radio towers also include taxes and insurance which are not considered lease components. Consideration for office space and radio tower leases generally includes monthly payments with either a fixed annual increase or a variable annual increase based on a consumer price index. Leases with variable annual increases based on a consumer price index are initially measured using the index at the commencement date. Subsequent changes to variable increases based on a consumer price index will be recognized in the statement of operations in the period of change. The lease term begins at the commencement date and is determined on that date based on the noncancelable term of the lease, together with periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option. When evaluating whether the Company is reasonably certain to exercise an option to extend the lease, the Company is required to assess all relevant factors that create an economic incentive for the Company to exercise the extension . The Company rents certain office equipment, such as copiers, in several markets. Consideration for office equipment leases generally includes fixed monthly payments for the lease term. The lease term begins at the commencement date and is determined on that date based on the noncancelable term of the lease. Office equipment leases generally do not include options to extend the lease. The Company received several vehicles through acquisitions that have completed the original lease term and are now leased on a month to month basis. The vehicles are expected to be acquired or returned to the lessor within twelve months. The Company has made an accounting policy election to not record leases with a term of 12 months or less on its balance sheet. Instead, the Company recognizes lease payments as an expense on a straight-line basis over the lease term. The various discount rates used to calculate lease liabilities and right-of-use assets are based on the Company’s incremental borrowing rate due to the rate implicit in the leases being not readily determinable. The Company’s incremental borrowing rate is the rate of interest that the Company 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. The Company used the current borrowing rate on its credit facility, adjusted for the effects of collateralization, to determine the various rates it would pay to finance similar transactions over similar time periods. The Company leases certain office space and radio towers from related parties. The current lease expiration dates range from December 2020 through December 2038 , and annual rental expense ranges from $11,000 to $0.2 million. Related party right-of-use assets and lease liabilities are included in the amounts reported on the accompanying balance sheet as of December 31, 2019 and future minimum payments for related party leases are included in the tables below. See Note 18 for further information regarding related party leases. The Company elected to apply a package of practical expedients that allows it not to reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases. Certain amounts related to finance leases previously reported in the 2018 financial statements have been reclassified to conform to the 2019 presentation. The following table summarizes lease information as of and for the year ended December 31, 2019:
Lease cost |  |  |  |
Operating lease cost |  | $ | 10,190,243 |
Finance lease cost: |  |  |  |
Amortization of right-of-use assets |  |  | 22,088 |
Interest on lease liabilities |  |  | 11,285 |
Short-term lease cost |  |  | 28,800 |
Total lease cost |  | $ | 10,252,416 |
Other information |  |  |  |
Operating cash flows from operating leases |  | $ | 9,901,889 |
Operating cash flows from finance leases |  |  | 11,285 |
Financing cash flows from finance leases |  |  | 67,492 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  |  | 5,523,800 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  |  | — |
Weighted-average remaining lease term – operating leases |  |  | 6.6 years |
Weighted-average remaining lease term – finance leases |  |  | 26.0 years |
Weighted-average discount rate – operating leases |  |  | 8.5 | %
Weighted-average discount rate – finance leases |  |  | 3.9 | %
As of December 31, 2019, future minimum payments for operating and finance leases for the next five years and thereafter are summarized as follows:
2020 |  | $ | 10,572,301 |
2021 |  |  | 9,445,943 |
2022 |  |  | 8,196,446 |
2023 |  |  | 6,825,678 |
2024 |  |  | 5,587,119 |
Thereafter |  |  | 18,051,059 |
Total lease payments |  |  | 58,678,546 |
Less imputed interest |  |  | (16,461,038 | )
Present value of lease liabilities |  | $ | 42,217,508 |
As of December 31, 2018, future minimum payments for operating and finance leases for the next five years and thereafter were summarized as follows:
2019 |  | $ | 9,800,202 |
2020 |  |  | 9,946,823 |
2021 |  |  | 8,881,584 |
2022 |  |  | 7,662,679 |
2023 |  |  | 6,305,127 |
Thereafter |  |  | 19,974,004 |
Total |  | $ | 62,570,419 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration