ΗΡΧΣΞΫΞΫΚΣΖ΅

Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
Leases Μύ
Leases

(10)ΜύΜύLeases

Effective January 1, 2019, the Company adopted Accounting Standards Codification Topic 842 (β€œASC 842”) and elected the transition method that allows for a cumulative-effect adjustment in the period of adoption. ΜύASC 842 requires a company to recognize lease assets and lease liabilities arising from operating leases in the statement of financial position. Additionally, the criteria for classifying a lease as a finance lease versus an operating lease are substantially the same as the previous guidance.

We elected certain of the available transition practical expedients, including those that permit us to not reassess (1) whether any expired or existing contracts are leases or contain leases, (2) the lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases as of the effective date. We elected the hindsight practical expedient, which permits entities to use hindsight in determining the lease term and assessing impairment. The most significant impact of ASC 842 was the recognition of right-of-use assets and lease liabilities for operating leases. In addition, the Company elected the practical expedient to account for the lease and non-lease components as a single component and will not recognize right-of-use assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date.

The Company and its subsidiaries lease a baseball stadium and facilities, business offices, satellite transponders and equipment. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate at the commencement date of the lease.

Our leases have remaining lease terms of 1 year to 38 years, some of which may include the option to extend for up to 10 years, and some of which include options to terminate the leases within 1 to 10 years.

Braves Holdings’ baseball stadium was historically accounted for as a financing obligation under the build-to-suit lease guidance. The transition guidance for a build-to-suit lease arrangement requires the lessee to derecognize the assets and liabilities that were recognized solely as a result of a transaction’s build-to-suit designation under the previous accounting guidance, with any difference recorded as an adjustment to equity as of the adoption date. Braves Holdings then applied the general lessee guidance under ASC 842 to the baseball stadium lease, including classifying it as a finance lease, and recorded a right-of-use asset and lease liability on the balance sheet, which has been initially measured at the present value of the remaining lease payments over the lease term.

The following table presents the components of lease expense:

​

​

​

​

​

​

​

​

​

​

Years ended December 31,

​

​

2022

​

2021

​

2020

​

​

amounts in millions

​

Finance lease cost

​

​

​

​

​

​

​

Depreciation of leased assets

$

32

​

35

​

35

​

Interest on lease liabilities

​

5

​

6

​

6

​

Total finance lease cost

​

37

​

41

​

41

​

Operating lease cost

​

89

​

89

​

93

​

Sublease income

​

(3)

​

(4)

​

(2)

​

Total lease cost

$

123

​

126

​

132

​

​

The remaining weighted-average lease terms and the weighted average discount rates were as follows:

​

​

​

​

​

​

​

​

​

​

2022

​

2021

​

2020

​

Weighted-average remaining lease term (years):

​

​

​

​

​

​

​

Finance leases

​

24.4

​

27.7

​

28.3

​

Operating leases

​

8.2

​

8.4

​

9.2

​

Weighted-average discount rate:

​

​

​

​

​

​

​

Finance leases

​

4.5%

​

4.7%

​

4.6%

​

Operating leases

​

5.3%

​

5.2%

​

5.2%

​

​

The following table presents supplemental balance sheet information related to leases:

​

​

​

​

​

​

​

​

December 31,

​

​

2022

​

2021

​

​

amounts in millions

​

Operating leases:

​

​

​

​

​

Operating lease right-of-use assets (1)

$

344

​

403

​

​

​

​

​

​

​

Current operating lease liabilities (2)

$

53

​

54

​

Operating lease liabilities (3)

​

349

​

405

​

Total operating lease liabilities

$

402

​

459

​

​

​

​

​

​

​

Finance Leases:

​

​

​

​

​

Property and equipment, at cost

$

491

​

477

​

Accumulated depreciation

​

(181)

​

(150)

​

Property and equipment, net

$

310

​

327

​

​

​

​

​

​

​

Current finance lease liabilities (2)

$

7

​

5

​

Finance lease liabilities (3)

​

117

​

111

​

Total finance lease liabilities

$

124

​

116

​

(1) Included in Other assets in the consolidated balance sheet
(2) Included in Other current liabilities in the consolidated balance sheet
(3) Included in Other liabilities in the consolidated balance sheet

​

Supplemental cash flow information related to leases was as follows:

​

​

​

​

​

​

​

​

Years ended December 31,

​

​

2022

​

2021

​

​

amounts in millions

​

Cash paid for amounts included in the measurement of lease liabilities:

​

​

​

​

​

Operating cash flows for operating leases

$

86

​

89

​

Financing cash flows for finance leases

$

7

​

5

​

​

​

​

​

​

​

Right-of-use assets obtained in exchange for lease obligations:

​

​

​

​

​

Operating leases

$

17

​

11

​

​

Future minimum payments under noncancelable operating leases and finance leases with initial terms of one year or more at December 31, 2022 consisted of the following:

​

​

​

​

​

​

​

​

Finance leases

​

Operating leases

​

​

amounts in millions

​

2023

$

13

​

73

​

2024

​

12

​

66

​

2025

​

9

​

65

​

2026

​

9

​

62

​

2027

​

9

​

56

​

Thereafter

​

134

​

169

​

Total lease payments

​

186

​

491

​

Less: implied interest

​

62

​

89

​

Present value of lease liabilities

$

124

​

402

​

​