Globalstar, Inc.GSAT

Globalstar, Inc. Leases Disclosure

10-KFiled Feb 27, 20262 min read
4. LEASES

As discussed in Note 1: Summary of Significant Accounting Policies, the Company has operating and finance leases for facilities and equipment around the world, including corporate offices, satellite control centers, ground control centers, gateways and certain equipment. Overall, finance leases are not significant to the Company and are not included in the disclosures below.

The following tables disclose the components of the Company’s operating leases (in thousands):
As of December 31,
20252024
Operating leases:
Right-of-use asset, net$66,698 $31,835 
Short-term lease liability (recorded in accrued expenses)7,998 4,251 
Long-term lease liability54,549 26,256 
Total operating lease liabilities$62,547 $30,507 

Lease Cost

The components of lease cost are reflected in the table below (in thousands):
Year Ended December 31,
202520242023
Operating lease cost (1)
$8,385 $6,360 $5,576 
Short-term lease cost859 315 862 
Total lease cost$9,244 $6,675 $6,438 

(1)Includes sublease income.

Weighted-Average Remaining Lease Term and Discount Rate

The following table discloses the weighted-average remaining lease term and discount rate for operating leases:
As of December 31,
20252024
Weighted-average lease term15.7 years8.3 years
Weighted-average discount rate8.3 %8.7 %

Supplemental Cash Flow Information

The below table discloses supplemental cash flow information for operating leases (in thousands):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$8,888 $6,388 $5,853 

Maturity Analysis
The following table reflects undiscounted cash flows on an annual basis for the Company’s lease liabilities as of December 31, 2025 (in thousands):
2026$12,776 
20279,057 
20288,526 
20296,422 
20306,026 
Thereafter67,319 
Total lease payments$110,126 
Imputed interest(47,579)
Discounted lease liability$62,547 
In connection with the Extended MSS Network, the Company will likely enter into additional operating leases in the future, the amount and timing of which are unknown and excluded from the table above.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Feb 25, 2022
2020Mar 4, 2021
2019Feb 28, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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