Company: CCO
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001334978-25-000008
Chunk: 113

Company: Clear Channel Outdoor Holdings, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 113
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.Leased AssetsThe Company enters into contracts to use land, buildings, office space, structures, and equipment (e.g., automobiles and copiers), as well as contracts that allow it to display advertising on buses, bus shelters, trains, and other private or municipal assets. Most of the Company’s advertising structures are located on leased land.At inception, arrangements involving the use of property, plant and equipment are evaluated to determine whether they meet the definition a lease under ASC 842. Many of the Company’s airport and transit contracts do not meet this definition due to substantive substitution rights within the contracts.The Company's leases are primarily operating leases, including land leases and contracts for the use of structures. Land leases generally have initial terms up to 20 years, with options to renew or terminate, and rental payments usually escalate at a defined rate. Payments are typically made in advance for periods up to 12 months. Certain of the Company's street furniture contracts also qualify as operating leases.

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Table of ContentsCLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accounting for LeasesOperating leases are reflected on the Consolidated Balance Sheets as “Operating lease right-of-use assets,” with related liabilities included in “Current operating lease liabilities” and “Non-current operating lease liabilities.” Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments. Operating lease ROU assets and liabilities are recognized at lease commencement based on the present value of lease payments over the lease term, and lease expense is recognized on a straight-line basis over the lease term.Finance leases, which are capitalized, are included within “Property, plant and equipment” on the Consolidated Balance Sheets, with related liabilities included in “Current portion of long-term debt” and “Long-term debt.” Maintenance expenditures are charged to operations as incurred.Certain operating lease agreements include rental payments based on a percentage of advertising revenue or inflation adjustments. These payments are classified as variable rent expense, separate from periodic straight-line lease expense. Many of the Company’s leases, particularly those related to advertising structures, include renewal or termination options. The Company does not generally include renewal periods in lease liabilities unless the exercise of such options is considered reasonably certain. Termination options are excluded from lease liabilities if the Company deems it reasonably certain not to exercise them. As a result, the Company uses the lease’s initial stated term for most lease contracts. The